Government Contract Awards: Key Aspects

Government contracts are considered for award when valued at less than €50,000 in the case of works contracts, or €18,000 for other types of contracts.

Contract Award Procedures Explained

Several procedures govern the award of public contracts:

• Open Procedure: All interested contractors may submit a proposal.
• Restricted Procedure: Only employers who request to be selected by the contracting authority may submit proposals.
• Negotiated Procedure: The award goes to the successful bidder chosen by the contracting authority after consulting several candidates. Depending on the amount and specific cases stipulated in this Law, negotiations may occur with or without prior advertising.
• Competitive Dialogue: Used for particularly large infrastructure projects.
• Contests: A procedure for obtaining plans or projects, primarily in the fields of architecture, urban planning, and data processing. Selection follows an invitation and is entrusted to a jury.

General Rules for Public Contracts

• Deadlines and Pricing Rules: Deadlines set by law are established in calendar days unless expressly indicated as working days.
• Pricing: Government contracts include VAT, Canary Islands General Indirect Tax (IGIC), or the Tax on Production, Services, and Imports (IPSI) in territories where these tax figures apply.
• Contract Publication Requirements: All contract award procedures, with the exception of negotiated procedures, will be announced in the Official Gazette. Negotiated procedures are published in the Official Journal of the European Union.

Key Bodies in Public Contracting Law

Several bodies are established by law to oversee government contracts:

• The Advisory Body: The Advisory Board of State Government Contracting, operating under the Ministry of Economy and Finance.
• Contracting and Assistance Bodies:
  • Procurement Officers: A technical assistance body that receives bids and conducts the contractor selection process. Their role concludes with the award proposal.
  • Administrative Contracting Board: Awards certain types of contracts to a limited extent and performs programming and study functions.
  • Other Contracting Bodies: Ministers and Secretaries are the contracting authorities for state administration.

Public Register of Contracts: Transparency

The Public Register of Contracts guarantees the transparency of government actions. It operates under the Advisory Board of Administrative Contracting, Ministry of Economy and Finance, as well as other relevant government bodies.

Criteria for Contract Award Decisions

Contracts are awarded based on specific criteria:

• Lowest Price: (Formerly known as auction)
• Most Economically Advantageous Tender (MEAT): This is the main competition criterion, considering quality, price, technical merit, aesthetic, functional, and environmental aspects.