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Czech Republic

Public contracts

Updated 09/2012

Legal requirements

The placing of public contracts and concession procedures is regulated in the Czech Republic by Act No 137/2006 on public procurement and Act No 139/2006 on concession agreements and concession procedures (the 'Concessions Act'):

The strategic document on the introduction of electronic public procurement is:

Types of public procurement

Open procedure

The contracting authority invites an unlimited number of bidders to tender. Open tenders may always be used without fulfilling other legal conditions. They are used both by public and sectoral contracting authorities. An open procedure is an unrestricted selection procedure, where tenders may be submitted by anyone who wishes to submit a tender.

Restricted procedure

The contracting authority invites an unrestricted number of suppliers to submit an application to join a restricted procedure for a public contract. This type of procedure is a restricted public procurement procedure. Restricted procedures operate in two rounds. Interested parties submit an application together with proof of qualification. A sectoral or public contracting authority may restrict the circle of bidders in the case of public procurement for the areas of defence or security, based on specified criteria. A tender may be submitted only by persons who have demonstrated their qualifications and have been 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 apply in a negotiation procedure with publication. Notification is published to all suppliers. Interested parties submit an application together with proof of qualification. Sectoral and public contracting authorities are entitled to restrict the number of bidders for public tenders in the defence and security areas. The invited bidders submit bids that are then negotiated. The aim of the negotiations on conditions of individual contracts is to achieve the performance of public contracts under the most advanageous conditions possible. The contracting authority may gradually reduce the number of bidders with whom it is negotiating.

Negotiation procedure without publication

The contracting authority directly invites one or more suppliers to negotiations. This type of procurement procedure may be used only in cases strictly defined by law. The contracting authority invites one specific supplier if it is the only supplier capable of fulfilling the public contract (exclusive rights, artistic reasons, supplementary performance, action bids, acquisition of supplies from liquidation). The contracting authority invites one or more suppliers (extremely urgent situation, supplies for research and development, unsuccessful previous standard procurement procedure, fulfilment following design competition). The contracting authority must be able to demonstrate fulfilment of the preconditions for this type of procedure, but also the financial advantages of the process within the framework of a negotiation procedure without publication.

In this type of procedure it is also possible to compete on the commodity exchange. Sectoral bodies award contracts in negotiation procedures without publication on the basis of a framework contract. Public contracting authorities in the area of defence or security have special authorisation.

Negotiation procedures without publication enable contracting authorities to proceed in the simplest and least formal way.

Competitive dialogue

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 for fulfilling the public contract. The contracting authority assesses the proposed solutions and decides which ones are suitable. The contracting authority invites all of the interested parties originally invited to submit tenders, on the understanding that the tenders must implement the solution chosen by the contracting authority.

Simplified below-threshold procedure

In the simplified below-threshold procedure a public contracting authority invites at least five tenderers to submit bids for a below-threshold public contract and publishes the invitation on its profile. Bids may be submitted by an unrestricted number of suppliers. Anyone who has filed a solemn declaration of fulfilment of the qualifications shall be considered a qualified supplier. Documents proving the qualifications are submitted by the chosen bidder before the contract is signed.

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 (expected value reaches the lower financial limit set by Government Regulation No 77/2008 pursuant to the European Commission communication),
  • below-threshold public contracts (the expected value is at least CZK 1,000,000 or, in the case of building work, CZK 6,000,000),
  • small-scale public contracts (the expected value is less than CZK 1,000,000 or CZK 3,000,000).

The "expected value" of a public contract is understood to mean the size of the financial commitment for fulfilment of the contract expected by the contracting authority.

When setting the expected value, the price exclusive of value added tax is always decisive.

Basic information on below-threshold or above-threshold public contracts and concession procedures is published on a mandatory in accordance with the Public Procurement Act and the Concessions Act in the Public Procurement Gazeette. The contracting authority is also obliged to publish on its profile, the web address of which is published in the Public Procurement Gazette, at least the text of the procurement documentation, whether in open, restricted or simplified below-threshold procedures or below-threshold procedures with publication. After completion of the procurement procedure the contracting authority publishes a written report on its profile and, in the case of a public contracting authority, also the contract concluded including any amendments, the sum actually paid for performance of the public contract and a list of the supplier's subcontractors.

National public procurement authorities

The Office for the Protection of Competition is the state supervisory authority for monitoring contracting authorities in the placing of public contracts, including the publication of public contracts.

The Ministry for Regional Development of the Czech Republic produces the method guidelines for the process of placing public contracts and participates in drafting related legislation.

 

Administrative procedures

Submitting tenders

The submission of tenders is governed by the following rules:

A supplier may submit only one tender. A supplier who has submitted 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 who has 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.

Special procedures

Preliminary notices and regular preliminary notices: Sectoral contracting authorities may publish information in the form of a regular preliminary notice on the above-threshold public contracts it intends to place in the next 12 months and in the case of which it intends to shorten the time period for placing bids. A sectoral contracting authority may commence a restricted procedure or a negotiation procedure with publication by publishing a regular preliminary notice.

Public contracting authority must publish preliminary notices in the Public Procurement Gazette, and these must include an explanation of the need for the public contract. A public contracting authority may commence a bidding procedure no sooner than 1 month after publishing the preliminary notice. This obligation applies both to below-threshold and above-threshold public contracts, with the exception of simplified below-threshold procedures and some other specified cases.

Framework contracts: A contracting authority may conclude a framework contract with one or more (at least three) bidders. The subject of the contract is the repeat provision of similar supplies, services or construction work. In the case of a framework contract with one bidder the contracting authority invites the bidder to perform on the basis of an order and in the case of a framework contract with more than one bidder, the contracting authority invites the bidders to submit bids for partial performance.

Notices on the conclusion of partial contracts based on a framework contract are published in the Public Procurement Gazette either individually or collectively for the previous quarter.

Dynamic purchasing system: For the purposes of placing public contracts for purchasing ordinary, generally available goods, services or building work, a contracting authority may introduce a dynamic purchasing system in an open procedure. The contracting authority invites an unrestricted number of suppliers to submit preliminary bids and thereby to participate in the dynamic purchasing system. Suppliers may link up even during the course of a dynamic purchasing system. The contracting authority invites suppliers through a call to submit bids for a partial public contract.

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 make use of electronic auctions in an open procedure, restricted procedure, negotiated procedure with publication or simplified below-threshold procedure 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:

Resources

Public procurement information system

The Ministry of Regional Development is the public procurement information system administrator. The information system includes the Public Procurement Gazette, the List of Qualified Suppliers, the List of Certified Supplier Systems, the Register of Concession Agreements, Register of Persons Prohibited from Performing Public Contracts, Register of Persons Prohibited from Performing Concession Agreements.

The contracting authority's legal obligation to publish a notice is secured through the Public Procurement Gazette, operated by an established concessionary.

The Ministry of Regional Development administers the list of qualified suppliers, which lists the suppliers that have demonstrated fulfilment of he basic and professional qualification requirements to the Ministry of Regional Development. Using the link below, you can obtain an exract from the list of qualified suppliers which can be used in a procurement procedure. A contracting authority is obliged to accept such an excerpt from the list, provided it is not more than 3 months old.

Suppliers may obtain an excerpt from the list at any CzechPoint contact point.

Administering the list certified supplier systems: 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 Concessions Act can be asked in an info-forum, where they will be answered by the Ministry of Regional Development.

The Register of persons prohibited from performing public contracts lists the legal persons or natural persons/entrepreneurs that have infringed the Public Procurement Act in the area of demonstrating fulfilment of the qualification requirements in a procurement procedure or in an entry in the list of qualified suppliers or a certified supplier system. Entries are made on the basis of a final decision of the Office for the Protection of Economic Competition concerning the misdemeanour.

The Public Procurement Information System includes the Register of Persons Prohibited from Performing Concession Agreements which lists the legal persons and natural persons/entrepreneurs that infringed the Concessions Act in the area of demonstrating fulfilment of the qulification requirements in a concession procedure. Entries are made on the basis of a final decision of the Office for the Protection of Economic Competition concerning the misdemeanour.

Further information and useful services regarding the placing of public contracts and concessions can be obtained from the following governmental and non-governmental institutions and web portals.

Help & advice

Help & advice

The Public Procurement Network (PPN) includes a guidebook for entrepreneurs who, as a result of discriminatory practices in public procurement, have been prevented from participating in public tenders in foreign markets. A fast and informal system has been set up for resolving these problems. The system comprises a network of government offices for public procurement in 30 European countries. The aim is to clarify misunderstandings and suspicions of an infringement of the rules on public procurement in the early phases of a procurement procedure.

E-mail a business organisation near you

The EU runs a network (Enterprise Europe Network) of local business organisations in most European countries that may be able to help you.

Choose your country and town and enter your enquiry below.

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