What is the Procurement Act?

The Procurement Act forms the basis of the procurement process in the Netherlands and ensures that public contracts are awarded in a fair, transparent and non-discriminatory manner. This law is essential for both public institutions that issue tenders and companies that want to bid for these contracts. The rules in the Procurement Act govern how procurement procedures should proceed, from drafting the contract to assessing tenders and the award process.

This article provides an in-depth overview of the Procurement Act, its core principles, and key obligations for both contracting authorities and bidders.

What is the Procurement Act?

The Procurement Act, officially known as the Aanbestedingswet 2012, is the legislation that regulates the procurement process in the Netherlands. The law sets out how government organizations, including ministries, municipalities and other public bodies, should award their contracts. The purpose of this law is to promote fair competition and ensure that contracts are awarded transparently, giving all interested companies an equal opportunity to participate.

1.1 Why is the Procurement Act important?

The Procurement Act contributes to fair market forces and prevents favoritism of specific parties. By keeping procurement open and transparent, government agencies can get the best value for money, while companies are assured of a fair chance.

Core principles of the Procurement Act.

The Procurement Act is built around a number of core principles that contribute to a transparent and fair process. The key principles are transparency, equality, and proportionality.

2.1 Transparency

The principle of transparency requires contracting authorities to clearly communicate their procedures, criteria, and assessment methods. This means that companies must know in advance exactly what requirements will be imposed, how the evaluation will take place, and what information they must provide.

2.2 Equality

Equality means that all bidders should have the same opportunity and no party should be favored. This means that every bidder should have access to the same information and no party should be disadvantaged.

2.3 Proportionality

Proportionality is about matching the requirements and conditions of a tender to the size of the contract. This means that small contracts should not contain unnecessarily complicated requirements that exclude small businesses.

Key components of the Procurement Act

The Procurement Act consists of several sections, each of which regulates a specific aspect of the procurement process. Below we discuss some of the most important parts and their significance for practice.

3.1 Thresholds

The threshold values define the amount above which a contracting authority is obliged to issue a European tender. These values are set at EU level and vary depending on the type of contract, such as supplies, services or works.

3.2 Selection and award criteria

The Procurement Act sets requirements for the selection and award criteria that may be used to evaluate tenders. These may include, for example, experience, financial strength or technical ability of the tenderer.

3.3 Procedures

The law describes various procurement procedures, including the open procedure, the restricted procedure and the negotiated procedure. Each procedure has specific rules and conditions depending on the complexity and type of contract.

Procurement procedures under the Procurement Act.

The Procurement Act has several procedures, each with its own purpose and application. Choosing the right procedure is essential for a successful procurement.

4.1 Public Procedure

The open procedure allows all interested parties to submit a tender. This is the most transparent form, but can be time-consuming with a large number of bidders.

4.2 Non-public procedure

In the restricted procedure, only selected parties can submit tenders. This procedure is useful when the contracting authority wants to limit the number of tenders to the most suitable providers.

4.3 Negotiation procedure

The negotiated procedure is used in exceptional situations where the terms of the contract are not fully defined. This procedure leaves room for negotiations between the contracting authority and tenderers.

EMVI and the Procurement Act

The Procurement Act encourages contracting authorities to opt for the Most Economically Advantageous Tender(EMVI). This award criterion means that tenders are assessed not only on price but also on other aspects such as quality, sustainability and innovation.

5.1 EMVI as an award criterion

The use of EMVI looks at a combination of price and quality. This helps to select not only the cheapest, but especially the most suitable bidder.

5.2 Practical application of EMVI

To apply EMVI effectively, contracting authorities draw up specific evaluation criteria. These can range from technical specifications to sustainability requirements. Bidders can focus on these criteria to improve their scores.

The role of legal protection under the Procurement Act

The Procurement Act provides legal protection to companies that believe they have been disadvantaged in a procurement procedure. This can be done, for example, when a company suspects that the evaluation has been conducted unfairly.

6.1 The standstill period

The standstill period is a mandatory waiting period during which a preliminary award is announced but not yet made final. This gives bidders the opportunity to object.

6.2 Appeals and objections

Bidders can object to the outcome of a tender. This process is regulated by law and can lead to review if errors are found in the process.

Importance of the Procurement Act for businesses

The Procurement Law is important not only for contracting authorities, but also for companies participating in tenders. By properly understanding the rules, companies can increase their chances of success.

7.1 Fair playing field

For businesses, the Procurement Act ensures a level playing field, where every party has an equal opportunity. This makes it possible for smaller companies to compete with larger players.

7.2 Strategy and preparation

The law also provides companies with guidelines to align their strategies with the requirements of contracting authorities. A good understanding of the Procurement Act helps prepare strong bids that meet the requirements of the contract.

Conclusion

The Procurement Act is a fundamental instrument for a transparent and fair procurement process in the Netherlands. It ensures a level playing field, offers legal protection to companies, and encourages a careful, non-discriminatory approach. For companies wishing to participate in tenders, knowledge of the Procurement Act is essential.