EUKN - European Urban Knowledge Network - EC: Low-value contracts must be awarded fairly and transparently

EC: Low-value contracts must be awarded fairly and transparently

26-07-2006

The European Commission has published guidance on how public authorities should award contracts of low monetary value fairly. These contracts are not covered by the EU Directives on public procurement. Nevertheless, the Commission thinks they should comply with the internal market principles of transparency and non-discrimination.

The Commission's guidance contains suggestions on how public authorities should comply with these principles, together with examples of innovative ways to award contracts in a modern, transparent and cost-efficient manner. The guidance also applies to certain services not fully covered by the EU Directives on public procurement.

The detailed rules of the public procurement directives do not apply to certain contracts:

in the case of services or supplies contracts: all those with a value of less than €211,000;
in the case of works contracts: all those with a value of less than €5,278,000.

The total of these contracts account for the vast majority of public contracts in the EU – over 90% in some Member States. For all these contracts, the EC publication offers guidance on how to comply with the principles of transparency and non-discrimination.

Internal Market and Services Commissioner Charlie McCreevy said: " Individually these contracts may be of low value, but together they are worth billions. Restricting them to local bidders means that companies across the EU are missing out on potential opportunities and governments aren't getting value for money. And ultimately it is the taxpayer who loses out. The guidance we have issued today will help to ensure that in future public authorities award low-value contracts fairly and transparently."

Source: Source: EU Press Room

Links
For more information and to download the guidance, please visit the EC website.EU Press Room

back