New rules for defense and security tenders - More transparency and competition. Electronic auctions, strong bid control
More controlled procurement and more transparency in the field of defense and security. This is the goal of the new draft law on defense and security procurement that is expected to replace the current 2020 law and bring new rules for how the state purchases equipment, goods and services for defense and security.
One of the main changes is related to transparency and competition. The draft law requires that procedures be conducted with equal treatment and without discrimination for economic operators, while also aiming for better use of public funds.
For the first time, electronic auctions are also more clearly regulated in this framework. In cases where specifications can be accurately determined, companies can compete electronically by submitting new prices or values. The use of auctions must be announced in the contract notice.
Another element is the control of very low bids. When a bid appears abnormally low, it cannot be rejected outright. The company should be asked to explain how the price was arrived at and if the explanations are not convincing, then the bid can be rejected.
Particular importance is also given to security of supply. Contracts may include requirements to ensure continuity of supply, maintenance and modernization of equipment, and to meet additional needs in the event of a crisis. If these requirements are not met, the operator may be disqualified or the contract may be terminated.
Subcontracting also gets new rules. Winning companies must act transparently and treat companies participating as subcontractors equally and non-discriminatoryly.
In cases where a contract is awarded without prior publication, a transparency notice may be published and a period of at least 10 days must be observed before the conclusion of the contract.
Company complaints continue to be reviewed by the Public Procurement Commission, as a specialized body separate from the authority conducting the tender.
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