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Public procurement will be restricted by competition

Suppliers in the markets of energy, water, transportation and postal services will not be afraid of losing public procurement tenders if they prove their exclusivity, Logos Press reports.
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Public procurement will be restricted by competition

The government approved the procedure for determining the competitive nature of economic activities in these sectors, adding to the work of the Competition Council and line ministries. The antimonopoly agency will determine, at the applicant’s request, whether or not there is a competitive environment in which the applicant operates. Once it has officially concluded that it has no competitors in that part of the market, the applicant will be able to claim special treatment from the sectoral procurement authority and become a sole supplier.

After receiving the opinion of the Competition Council, the procuring authority may apply to the line ministry for a procedure to determine whether a certain activity is directly subject to competition. The central authority will pass the decision through the Government. Only then is the procuring entity authorized to enter into sectoral procurement contracts using its own internal procedures, even if it is a competitive market with unrestricted access.

The procedure is lengthy but effective when it comes to “public interest” and “public suppliers”, especially in the context of centralized procurement. The aim is to establish detailed rules similar to the European rules on notification and evaluation procedures for activities carried out by entities in the above-mentioned sectors with unrestricted access, so that they can be exempted from sectoral procurement rules.


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