ABSTRACT
The main objective behind the EC Utilities Directive and the Regulations is the removal of nationalistic procurement practices which discriminate against other European suppliers or contractors. Achievement of this objective is through transparent and fair procurement practices which place all suppliers and contractors, whenever possible, on an equal footing when competing for all contracts having estimated values in excess of specified thresholds. Current (22 December 1993) thresholds are £3.75 million for works and £299k for supplies (the respective figures for 1 January 1993 were £3.5m and £283k). (The threshold sum for professional and consultancy services, maintenance and repair is ECU 400 000 (£280 000), but this limit was not operative until 1 July 1994.)
The effect of the legislation is to require all contracts having an estimated value above the stipulated threshold to be advertised in the Official Journal (OJ) of the EC. The may be through the mechanism of a Periodic Indicative Notice (PIN), Notice of the Existence of a Qualified List, or a Call for Competition. Tendering for work (or supplies) may be through the Open, Restricted or Negotiated procedures, and in the case of the latter two the tenderers must be selected on the basis of objective criteria. Post-tender negotiation should be prohibited. In open and restricted procedures there should be no negotiation with candidates or tenderers on
fundamental aspects or variations and, in particular, on prices, but discussions would be allowed in order to clarify or supplement information. Actual specifications must relate to European standards, where they exist. Contracts must be awarded on the basis of either the lowest price or the most economically advantageous tender. If a contract is awarded on the basis of the 'most economically advantageous tender' then the criteria for the award must be stated in either the contract notice or the tender documents. These criteria may include price, technical merit, operating costs, response times, compliance with national standards and laws, the proposed programme for execution and completion and the technical support (back-up) offered. When an award is made above the threshold that applies at the time, it must be published in the Official Journal of the EC. Appropriate contracts publications and releases should be consulted for further information on this subject.
