Public contracts - Czech Republic
Public contracts in the Czech Republic are regulated under the Public Procurement Act and the Act on Concession Agreements and Concession Procedures (hereinafter the Concession Act)
The strategic document for electronic public procurement is
Types of public procurement
The contracting authority invites an unrestricted number of applicants to submit tenders for the public contract. An open procedure is an unrestricted selection procedure, where tenders may be submitted by anyone who wishes to submit a tender.
The contracting authority for the public contract invites an unrestricted number of suppliers to submit an application to join a restricted procedure. This type of procedure is a restricted public procurement procedure. A tender may be submitted only by those persons invited by the contracting authority, on the basis of their applications, to join the restricted procedure.
Negotiation procedure with publication
The contracting authority invites an unrestricted number of suppliers to lodge an application to join the procedure. The invited bidders submit a tender on the basis of which the contracting authority goes on to negotiate specific contractual terms with the bidders.
Negotiation procedure without publication
The simplest and least formal method of placing a public contract. The contracting authority directly invites one or more suppliers to negotiations. The interested parties do not submit a tender, but instead the contracting authority negotiates with them directly.
Under a competitive dialogue announcement, the contracting authority invites an unlimited number of applicants to submit a request to participate in the procedure and to demonstrate their qualifications. After assessing the qualifications of the applicants the contracting authority invites these applicants to participate in the competitive dialogue with the aim of finding one or more suitable solutions to fulfilling the public contract.
After deciding on a solution the contracting authority invites all of the interested parties originally invited to submit tenders, on the understanding that the tenders must follow the solution chosen by the contracting authority.
Simplified below threshold procedure
In a simplified below threshold procedure the contracting authority invites at least five interested parties to submit tenders to fulfil a below threshold public contract.
Tendering procedure: a step-by-step guide
The process of tendering procedures varies greatly between the individual types of public contract.
Types of public procurement
Depending on what is to be supplied, public tenders are divided into:
- public contracts for supplies - the subject of which is the ordering of items,
- public contracts for building work - the subject of which is the performance of building work or the construction of buildings,
- public contracts for services covering any public contract which is not a public contract for supplies or a public contract for building work.
Depending on the expected value, public tenders are divided into:
- above threshold public contracts (the expected value is at least equal to the financial limit stipulated by a specific implementing rule),
- below threshold public contracts (the expected value is at least CZK 2,000,000 or, in the case of building work, CZK 6,000,000),
- small scale public contracts (the expected value is less than CZK 2,000,000 or CZK 6,000,000).
The "expected value" of a public contract is understood to mean the size of the financial commitment expected by the contracting authority in relation to the fulfilment of the contract. When setting the expected value, the price exclusive of value added tax is always decisive.
This value influences the form of procurement - the procedure is either open or takes place without publication and is open only to a few selected applicants. Orders over a certain limit must be published in the Commercial Gazette or at the Central Address.
National public procurement authorities
The Office for the Protection of Competition is the state supervisory body for the publication of public contracts.
The submission of tenders is governed by the following rules:
- A supplier may submit onlyone tender.
- A supplier who hassubmitted a tender in a procurement procedure may not at the same time be a subcontractor for another supplier in the same procurement procedure.
- A supplier whohas not submitted a tender in a procurement procedure, however, may be a subcontractor to more than one bidder in one and the same procurement procedure.
- A"joint tender" is understood to mean a tender submitted jointly by a number of suppliers. In such a case the suppliers submitting the joint tender shall be considered as a single tenderer.
Preliminary notifications and regular preliminary notifications: A public contracting authority uses a preliminary notification to publish an above threshold public contract which it intends to order in the following 12 months and in respect of which it intends to shorten the time period for submitting tenders.
Framework agreements : In a notification or invitation to commence a procuerment procedure the contracting authority must state whether it intends to conclude a framework agreement with one or more of the tenderers.
If the contracting authority intends to conclude a framework agreement with more than one tenderer, the number of tenderers may not less than 3. The contracting authority may state in the notification or invitation to commence a procurement procedure the maximum number of tenderers with whom the framework agreement may be concluded.
Dynamic purchasing system : For the purposes of public contracts for purchasing ordinary, generally available goods, services or building work, the contracting authority may introduce a dynamic purchasing system in an open procedure.
When introducing a dynamic purchasing system and including the suppliers in the dynamic purchasing system, the contracting authority proceeds in accordance with the rules for open procedures up to the point of placing the public contracts in the dynamic purchasing system.
Electronic auctions: The contracting authority may, in an open procedure, restricted procedure, negotiated procedure with publication or simplified below threshold procedure make use of electronic auctions as a way of assessing bids.
Electronic auctions may not be used in the case of public contracts for building work or for services the subject of which involves intellectual property rights.
Information is available on the following websites concerning the right of refusal:
Public procurement information system
The Ministry for Regional Development carries out its legal duties through the public procurement information system.
Publication of notices: this subsystem covers the contracting authority's duty to publish.
The Ministry for Regional Development administers a list of approved suppliers who have met basic qualification criteria and have paid an administrative fee. A supplier may use an excerpt from the list of approved suppliers in a public procurement procedure. The contracting authority is obliged to accept such an excerpt from the list, provided it is not more than 3 months old.
Administration of the list of systems of certified suppliers: this allows suppliers to replace the required qualification with a certificate issued by an accredited body.
Statistical outputs on public procurement: contain public procurement statistics.
The Register of Concession Agreements: contains information on signed concession agreements that commenced after 1 July 2006 and were placed in compliance with the Act on Concessions.
Questions about the Public Procurement Act and the Concession Act can be asked in an info forum, where they will be answered by the Ministry for Regional Development.
The following governmental and non-governmental institutions and web portals offer further information and useful services regarding the placing of public contracts and concessions.
Check also the legislation on this topic in: