Public Procurement in Sweden – introduction and tips to Lithuanian tenderers Natalie Svensson, Partner at Magnusson Malmö, Sweden Berlin Copenhagen 18.10.2011 November 2013 Gothenburg Helsinki Kaunas Kiev Malmö Minsk Moscow Oslo Riga Stockholm Tallinn Vilnius Warsaw 1 1 Public Procurement in Sweden • Public procurement in Sweden amounts to approximately 90 000 MEuro/year • Public procurement in the EU amounts to approximately 1 000 000 MEuro/year • Knowledge about public procurement generates competion advantages and money 18.10.2011 November 2013 The Baltic Sea Region Law Firm 2 2 Short introduction • Public procurement is governed by the Swedish Public Procurement Act (2007:1091 – LOU), which is largely based on the EU Directive 2004/18/EC concerning public procurement • By complying with the Swedish procurement provisions, contracting authorities meet the obligations prescribed by EU law • A separate law with slightly more flexible rules applies to procurement within the utilities sectors – Act on Procurement within the Water, Energy, Transport and Postal Services Sectors 2007:1092 – LUF) 18.10.2011 November 2013 The Baltic Sea Region Law Firm 3 3 The procurement process can be illustrated as follows: Planning Needs analysis Contract document Procurement process Exclusion of suppliers Publication of contract notice 18.10.2011 November 2013 Qualification of suppliers Fulfillment of contract Award of contract (evaluation of tenders) Standstill Period Award decision The Baltic Sea Region Law Firm Follow up Signing of contract 4 4 Short introduction Fundamental principles for all public procurements 1. The principle of non-discrimination 2. The principle of equal treatment 3. The principle of transparency 4.The principle of proportionality 5. The principle of mutual recognition 18.10.2011 November 2013 The Baltic Sea Region Law Firm 5 5 Generelly about Swedish procurements Consideration of tenders The consideration phase involves various steps: • checking any grounds for excluding a supplier • checking the suitability of a supplier (qualification) • awarding contracts (evaluating tenders) An application or a tender that is received too late may not be included for further checks and evaluation, even if it is not the supplier that has caused the delay. 18.10.2011 November 2013 The Baltic Sea Region Law Firm 6 6 Principles for evaluation of a tender A contracting authority shall state which evaluation principle it is going to use. It may make a selection by stating that it will either accept • the tender that is the most economically advantageous for the authority, or • the tender that has the lowest price 18.10.2011 November 2013 The Baltic Sea Region Law Firm 7 7 Foreign tenderers - challenges • The main rule is that both requests to participate and tenders must be submitted in writing. Required language – Swedish • Swedish contracting authorities generally lacks experience of foreign tenderers • Swedish high standards and special requirements (e.g. employment law) and insurance solutions and other securities such as bank guarantees • The project management must be fluent in Swedish • Ability to show non-discrimination and gender equality clauses within a company • High work environment standards • Requirement for environmental management systems 18.10.2011 November 2013 The Baltic Sea Region Law Firm 8 8 Tips to overcome the difficulties • Cooperate with Swedish companies • Create a cash-flow plan • Make sure that all the qualifications and requirements of the procurement are met • Send the tender on time and in the exact way that is stipulated in the contract documents (request for proposals) – the tender must correspond to the contract documents – no more or less information • Designate a local partner/consultant to solve the language and national procurement law boundaries 18.10.2011 November 2013 The Baltic Sea Region Law Firm 9 9 Tips to tenderers Referring to the ability of another party A candidate or tenderer that cannot personally meet the requirements for financial, technical and professional ability imposed by the contracting authority as a requirement can show that it has access to the resources of another undertaking, thereby achieving the ability in question Joint tenders Groups of suppliers are entitled to apply to be allowed to submit a tender and to submit a tender Subcontractor Cooperation with primary bidders 18.10.2011 November 2013 The Baltic Sea Region Law Firm 10 10 Tips to tenderers Information at the request of a supplier If a candidate or a tenderer requests information about the reasons for the rejection of its application or the rejection of the tender, the contracting authority shall provide this information The contracting authority shall also, at the request of the tenderer that submitted an acceptable tender, provide information about the formulation of the tender selected and the relative advantages of this tender as well as the name of the tenderer that was either awarded the contract or was appointed as party to a framework agreement 18.10.2011 November 2013 The Baltic Sea Region Law Firm 11 11 Final notes Noticeable is that competing for quality is getting more important • We recently assisted a French company to win a 500 MSEK contract in a Swedish municipality. Price was only a minor factor • We continuously help foreign companies to get in touch with Swedish companies in the same industry/business • Nota bene: suppliers may now be excluded from participating in a procurement if the suppliers have been guilty of professional misconduct and the contracting authority can prove this 18.10.2011 November 2013 The Baltic Sea Region Law Firm 12 12 THANK YOU! Natalie Svensson, Partner natalie.svensson@magnussonlaw.com + 46 (0) 70 458 65 44 18.10.2011 November 2013 The Baltic Sea Region Law Firm 13 13