Before even coming into force, the amendments to the Law on Public Procurement as prepared by the Cabinet Oresharski, will need to be changed again as it is clear that the country will need to write new rules for public tenders. The reason is that on 15 January, the European Parliament approved a directive which regulates the extremely sensitive issue of government spending. The document has been prepared yet since 2011 and should now provide easier access for small and medium companies in the bidding for contracts, as well as introduce more stringent provisions on subcontracting.
The new legislation actually reviews the current EU rules on public procurement. For the first time EU is establishing common standards for contracts by introducing new criteria for the awarding, which put more emphasis on environmental protection, social aspects and innovation. The new rules send a strong message to the citizens who have the right to monitor if public money is used effectively, said rapporteur on procurement Marc Tarabella.
One of the major reforms of the Directive relates to cutting red tape for applicants. Now most companies, especially SMEs, point out as the biggest problem the administrative difficulties stemming from the need for a significant number of certificates or other documents relating to the exclusion criteria and selection. To avoid this, EU proposes the introduction of a standard single European contract documentation which will declare all data for the company. The original documents proving the whole information will be required only from the successful candidate.
The new rules will encourage also the division of orders into separate lots to facilitate the participation of smaller firms. Such a separation could be made on the basis of quantitative parameters, such as the size of individual orders, to bring the procedure into line with the capacity of small and medium enterprises, or on the basis of quality parameters – according to the sector and area of specialization, where the content of individual items should be linked more closely with the specialized sectors of activity, the motives of the Directive read. In the event that the contracting authority has decided that it is appropriate to divide the contract into lots, it will need to specify the key considerations in the individual report or in the documentation for the tender.
Now in Bulgaria often the opposite is done and different activities in the implementation of a project are combined into one large contract. On the one hand, this saves time and effort, but on the other – the winners are always the same, and the quality is questionable due to the objective impossibility same company to prepare a quality project and then realize it, along with all the associated activities.
European Directive introduces also new criteria how to define the most economically advantageous bid. This is expected to put more emphasis on quality, environmental concerns, social aspects and innovation, while at the same time take into account the cost and life cycle of the product or service. The new criteria will put an end to the dictatorship of the lowest price and quality will become a major issue, said Marc Tarabella.
In this area, the Bulgarian practice has so far been completely in the opposite spectrum. In its wishing to put little money to achieve greater results in the last five or six years the country’s governments have signed hundreds of contracts at unrealistically low prices. Most of them eventually have to be annexed (done only in the dark) and some of the objects constructed or goods purchased appear to be of too bad quality. To combat social dumping and to ensure that workers’ rights are protected, the new law includes rules for subcontracting and more stringent provisions for abnormally low tender offers.
The BANKER
