Procurement Legislation in Europe
Public procurement refers to the process by which public authorities, such as departments of local authorities, purchase work, goods or services from companies that they have selected for this purpose.
The framework for the national legislation on public procurement are formed by the European directives 2014/24/EC and 2014/25/EC. The directives expand the opportunities for adopting environmental considerations in technical specifications selection, award criteria and contract performance clauses for public procurement.
They only apply to public procurement contracts that will probably exceed fixed thresholds as mentioned in the directives. All legal principles like equal treatment, transparency, as well as free movement of goods have to be fulfilled by the procurement procedure.
The directives aim to encourage efficient use of funds and to prevent preferential treatment or corruption in procurement.
Even though the directives have been transposed into national legislation, they only apply to public procurement contracts that exceed following fixed thresholds:
- For public works contracts: 5.225.000 Euro
- For products and services: 209.000 Euro
- For products and services by supreme federal authorities: 135.000 Euro
- For products and services by contracting authorities: 418.000 Euro