Procedure for placing public contracts

How are contractors selected by the administration ?

When selecting companies for the award of contracts, the Ministry of Defence must comply with the procedures for the award of contracts and "framework agreements" of the Public Procurement Contracts Code (PPCC). The contracting authority can appeal for the "framework agreement" which is not a public contract. That’s a new tool that will increase the flexibility for awarding contracts. It allows to divide the publicity stage and the competition stage.

The procedures used are :
  Call for bid, which is the most formalised call for competition,

  Negotiated procedures, enabling the administration to discuss freely with companies of its choice,

  Competitive dialog, which makes it possible for the administration to freely dialog with the candidates before the submission of the final tender,

  Dynamic acquisition system which is a procedure wholly electronic for the supplies,

  Concourses.

The administration can also award a contract following an adapted procedure (if the amount is below euros 135.000 VAT).

The processes associated with these procedures are essentially the following :

  The call for bids is open (any candidate may submit a tender) or restricted (only those companies whose applications have been selected may submit tenders),

  The negotiated contract procedure is either accompanied by a call for competition (with or without prior publicity) or not (case of a specific manufacturer able to provide the service).

What do you need to know about the procedure for the award of a contract ?

Before participating to a call for bids, companies must know the main features of the procedures involved, so that they may have a clear idea of their commitment.

These features are essentially the following :
  There cannot be negotiation with companies under the procedure of calls for bids. Except the case of equivalent bids where a decision is made on the basis of new tenders, the administration may only hold discussions with bidders for the purpose of precising or completing their tenders. Furthermore, no adjustment of the contract by agreement with the successful bidder is possible, unless the modifications related to minor points do not question the fairness of the initial competition,
  Under the negotiated contract procedure it is possible to hold discussions with a number of manufacturers and establish the rights and obligations of the contracting participants, as discussions with the companies proceed.

What are the obligations of the administration ?

The formality of a call for bid procedure places the following obligations for the government :
  Publication of a notice of call for competition,
  Minimum deadlines for the call for competition have to be complied with,
  Candidatures opened by the contracting authority (PA) and tenders opened by a tenders board,
  Tender documents have to be forwarded or made available to bidders,
  Tender intangibility must be complied with,
  Companies must be informed if their applications or bids have been rejected,
  The tender most economically advantageous, must be selected on the basis of pre-established criteria.

The resort to negotiated tender procedures is limited to a specific set of cases. The contracting administration must therefore justify clearly and in detail to the supervisory authorities the use of this procedure.

Recommendation to companies wishing to tender

The key points to be noted are essentially:
  In general terms, the announcement of the call for bids containing mandatory information should be read carefully. All necessary supporting documentation should be completed with care. Conditions laid down by the administration in the regulations governing calls for bid must be complied with,

  For a call for bids (open or restricted), deadlines for receipt of applications and tenders must be complied with. Contractual conditions (CCAP or CCTP) included in the tender documents issued by the administration must not be modified (by addition or deletion),

  For an open call for bids, the double cover procedure (separation of professional and financial guarantees from the tender proper) must be followed,

  For a negotiated contract procedure with competition, the tender commitment date must be noted with care. Remember that if these important points are taken into account, and the list given here is not exhaustive, it will be easier for companies to participate in calls for bids.

Important aspects of acceptance

What is it ?

Acceptance is an essential stage in the life of a contract. Acceptance corresponds to the decision taken by the public authority, on completion of all verification procedures, confirming full compliance of the service provided by the contractor with the technical specifications of the contract.

What are its consequences ? The consequences of the acceptance decision are important. The decision :
  Confirms the transfer of of the services ownership,
  Establishes the start date for warranty periods,
  Initiates the procedure for payment of the outstanding balance.

What are the other options the public entitiy can formulate after verification ?

On completion of the verification procedures, the public authority has the following options if the services fail to meet contractual requirements:
  Acceptance with price reduction,
  Postponement of acceptance,
  Rejection.

Read more:

  Public procurement contracts code, LEGIFRANCE site

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