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10 September 2010
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State Aid and Public Procurement: A Practical Guide





Public Procurement




The EC Competition Team steers clients through the maze of rules, regulations and remedies in the area of public procurement so as to allow them to meet their commercial objectives without being unduly hindered.  This involves a mixture of audit and compliance, risk management, commercial, dispute resolution and sometimes litigious work, but all with a common theme. 

 

Public procurement rules are so-called "single market" measures, taking the form of a series of EC Directives subsequently implemented at national level by different instruments in the separate EU Member States, such as the Public Contracts Regulations 2006 and the Utilities Contracts Regulations 2006 in the UK.  Their effect is that contracts for works, supplies and services over a certain value let by the public sector (and utilities in water, post, energy and transport offering a fundamental service to the public), must be advertised in the Official Journal of the European Union (OJEU).  The purpose is to enable potential contractors from all 27 European Union Member States to have an equal chance to bid for the work following a fair and equitable contest which achieves the best value for money. 

 

Three general features may be identified:

 

  • The OJEU notice.  This sets out in standard format the subject of the contract, the tendering authority, the award procedures etc.
  • The banning of discriminatory technical standards which prejudice against non-local suppliers.
  • Contracts may only be awarded following objective and transparent criteria for selection.

Breach of the rules carries genuine risk (including to funding streams such as ERDF).  In any event, many public authorities have their own internal rules which apply irrespective of European Union inspired obligations, and need to be seen to be beyond reproach in their spending of public money.  In addition to the possibilities of injunction at national court level, plus awards for damages and contract set-aside, further procedures exist for disheartened contractors to complain to the European Commission. 

 

If satisfied that a breach has occurred, the Commission may complain to the Member State concerned, which ultimately may result in litigation before the European Courts.
 






Key Contacts

Jonathan Branton

Jonathan Branton
Partner


Fitzgibbon_Mark

Mark Fitzgibbon
Partner

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