Bid to update Union procurement rules

Date: 16/03/2000

By Peter Chapman

SINGLE Market Commissioner Frits Bolkestein is set to unveil long-awaited proposals to revise out-of-date rules aimed at ensuring fair play in the EU's multi-billion-euro public-procurement market.

The move reflects concern that many of the existing regulations are too strict and should no longer be applied to sectors now open to full competition.

A spokesman for the Dutch Commissioner said the proposals, due to be published by May, would deliver on the promises the institution made to change the current rules in its 1998 public procurement action plan.

They will include the introduction of "more flexible" procedures throughout the bidding process for public contracts, which account for a massive 11% of the EU's annual income, allowing more scope for technical discussions between public bodies and their potential suppliers which are currently virtually outlawed.

The Commission says this is a particular problem in sectors such as information technology, where customers may know what they need but might not know what the best technical solution is in advance.

Bolkestein also plans to respond to calls for certain sectors to be excluded from existing tough legislation covering the water, energy, transport and telecoms industries to reflect the fact there is now much greater competition in these sectors.

These rules were originally drawn up to ensure that firms such as gas suppliers or telecoms operators which were granted a monopoly or special status by governments followed certain advertising and procedural requirements when they awarded contracts.

The Commission, which excluded some telecoms sectors from these rules last year, argues that these safeguards are no longer required in cases where firms are "operating under real competitive conditions".

The procurement plan is the linchpin of a raft of new measures targeting public contracts. Bolkestein is also expected to unveil an 'interpretative communication' underlining the EU executive's approach to the growing practice of laying down environmental requirements in tender notices.

This will state that public authorities are free to include environmental criteria in their tenders to help them choose between candidates, provided they test the bidding companies' "economic, financial and technical capacity". It will also set out the Commission's view on how far authorities should be allowed to refer to specific environmental standards such as the EU eco-label system in tenders.

New guidelines to govern the award of 'concession' contracts between governments and local authorities and private-sector firms have already been finalised. These aim to ensure fair and transparent bidding for concessions in cases where companies take on the risk of supplying services such as bridges or motorways provided they can charge a fee for use.

Single Market Commissioner Frits Bolkestein is set to unveil long-awaited proposals to revise out-of-date rules aimed at ensuring fair play in the EU's multi-billion-euro public procurement market.