PUBLIC PROCUREMENT LAW
IN LATVIA
Legal Bases of the
Public Procurement Law
• the Law of 5 July 2001 on Procurement for
State or Local Government Needs
•Cabinet Regulation No.257, adopted 8 April
2004 “Regulations Regarding Procurement
for Needs of Providers of Public Services”
Both Laws are supplemented with secondary
legislation
Procurement Methods
• Open Competition
• Restricted Competition
• Price Quotation
• Negotiated Procedure
• Design Contest
Thresholds (in LVL)
•
Type of
Contract
Procurement Method
Price
Quotation
Negotiated
Procedure
Supplies
Restricted
Competition
>10 000
1000 -10000
1000
>10 000
Services
Works
Open
Competition
1000 -50000
1000
>50 000
EU thresholds: > 80 000 lats for supply and service contracts,
>2 800 000 lats for works contracts
Qualification Criteria:
Conditions for Excluding Tenderers
• Insolvency
• Tax debts
• Violations of the professional activities
• No registration in cases prescribed by Law
• No corresponding certificate or license
• Pay-down of wages without tax payment
Qualification Criteria: Requirements and Documents
Regarding the Economic and Financial Standing
The contracting authority shall determine the minimal
requirements with respect to the economic and
financial standing and may require the tenderer to
submit one or more of the following documents:
•
the annual accounts
•
a statement regarding the tenderer’s financial turnover
•
information regarding State social insurance payments
from the income of the employer
Qualification Criteria: Requirements Regarding
Tenderer’s Capabilities
The contracting authority shall determine the minimal
requirements with respect to tenderer’s capabilities,
inter alia:
- experience;
- qualification of the staff;
- technical capacity;
- quality assurance system;
Documents Regarding
Tenderer’s Capabilities
•
•
•
•
The contracting authority may request the tenderer to
present or submit documents (only that are relevant to
determined requirements),e.g.:
A list of relevant goods sold, services provided,
information regarding works performed;
Information regarding personnel involved;
A description of the measures to ensure the quality;
A statement regarding which parts of the contract the
tenderer plans to give to subcontractors.
No special requirements for foreign tenderers are stated.
Securities
• The contracting authority may request a tender
security from tenderers.
• The competition regulation shall specify what
types of tender security are acceptable.
• The contracting authority may request to provide
in a contract a security for a contract
(obligation).
Forms of Participation
Tenderer – a person or group of persons who
have submitted a tender.
***
Tenderers may join together in groups
irrespective of their type of commercial activity
and submit a joint tender.
Submitting Variants
• If the contract award criteria is the lowest price, the
tenderer may submit tender variants unless provided
contrary in the competition regulation.
• If the contract award criteria is the most economically
advantageous tender, the tenderer may submit tender
variants only if so provided in the competition regulation.
Form of Submitting the Tender
A tenderer shall ensure that the information
contained in the tender is not accessible until
the moment of opening of the tender.
***
The contracting authority states in
competition regulations requirements with
respect to documentation and submission of
tenders (usually – sewn together, in closed
envelope(s)).
Process of the Open Competition (1)
•
•
•
•
•
•
Tender notification
Providing of additional information
Submission of tenders
Opening of tenders
Selection of tenderers
Checking the conformity of tenders with the
description of technical specifications and
other requirements specified by the
regulations
Process of the Open Competition (2)
• Evaluation of the tenders regarding
requirements
in accordance with the
evaluation criteria
•Taking a decision
•Notification of a decision
•Conclusion of contract
Contract award criteria
The lowest price
The most economically
advantageous tender
Price quotation
Conjoint design and works
competition
Open or restricted competition
Negotiated procedure
The most economically
advantageous tender
Service
contract
quality; experience of tenderer; unit costs
of one product; price (40%) and other
criteria
Works
contract
quality; experience of tenderer; unit costs
after completion of building; price and
other criteria
Supply
contract
price; delivery date; running costs; costeffectiveness; quality; aesthetic and
functional characteristics; technical
characteristics; after-sales service and
costs; technical assistance
Procurement Monitoring Bureau
• Monitoring procurement procedures and supervision
• Colleting and analyzing statistical information
• Organizing training for contracting authorities and
economic operators
• Reviewing complaints
• Prohibition the entering into contracts until the
rectifying of violations and requesting the termination of
the procurement procedure
• International co-operation in the area of public
procurement
• Participation in publishing procurement notices
Examining Complaints
• Procurement Monitoring Bureau forms a
commission
•Commission consisting of not less than three
members
•Members may not be persons who have
previously provided consultations or who have
an interest in the actual procurement
Types of Complaints
• Complaint relating to the tenderer
documentation – it can be submitted not later
than 6 working days before the final date for the
submission of tenders.
•Complaint relating to the decision made by
the contracting authority – it can be submitted
only before the contract is signed.
Projects planed for the near future
Northern crossing of river Daugava
in Riga