ARCHIVESHISTORIQUES
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DOCUMENTS "COM"
COM (79)621
Vol.1979/0210

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)621final
Brussels.31stOctober1979
PROPOSAL FORACOUNCILDIRECTIVE
AMENDING DIRECTIVE 77/62/EECCOORDINATING PROCEDURES
FORTHEAWARDOFPUBLICSUPPLYCONTRACTS
(ProposalbytheCommissiontotheCouncil)
C0M(79)621final

EXPLANATORY MEMORANDUM– i-■ i –i. i i ■■■ ii... ■ i i.i-i
I.GENERAL CONSIDERATIONS
1.Theobjective ofCouncil Directi ve.77/62/EEC of21December 1976
coordinating procedures for the award ofpublic supply contracts
istoensure agreater degree oftransparency ,byintroducing
equal conditions ofcompetition forpublic contracts ©ftheMember
States ,inorder toimprove thefunctioning ofthe common market .
The Directive applies topublic supply contracts ofacertain
value awarded byStates ,public bodies and local authorities and
makes them subject toCommunity procedures designed ,inter alia ,
toensure more extensive advertising and tofixobjective criteria
astoentitlement tocompete for,and the award of,public
contracts .
2.TheCommunity hasstated within the context ofthe GATT Multilateral
Trade Negotiations that itisprepared tonegotiate increased
access topublic contracts atinternational level onthe basis
ofeffective reciprocity .Itisclear from the results ofthe
negotiations that theaimofeliminating all reservations of
contracts tonational suppliers and allpreferential prices in
their favour hasbeen achieved only inpart byreason ofthefact
that ,contrary toDirective 77/62/EEC,only contracting authorities
atcentral orfederal level enter into such acommitment vis-a-vis
countries that aresignatories totheAgreement .Inmatters of
procedure andtransparency ,thearrangements under theMTNAgreement
donotdiffer greatly from those adopted bytheCouncil inthe
Community Directive .

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3.Sinceimplementation oftheMTNAgreementonGovernmentProcurement
wouldnot,assuch,amendCommunitylegislation,whichsolely
governsaccesstopubliccontractswithintheCommunity,a
solutionmustbefoundtodealwiththesituationinwhichthe
contractingauthoritiestowhichboththeDirectiveandtheAgreement
applywouldberequired,withoutmoretoapplybothsetsof
arrangements whichitwouldbedifficult,ifnotimpossible,to
rendercompatible.
4.Inseekinga-suitablesolutiontotheproblemtheCommission's
firstconcernhasbeennottorelinquish,eveninpart,whathas
beenachievedinthisfieldunderCommunitylegislation and,
secondly,toretainthedirectiveasthesoleinstrumentfor
extendingaccesstocontractswithintheCommunity.TheCommission
hasdecided,therefore,inaccordancewiththeorientationsetout
initsreportof8October1979ontheGenevaGATTMTN,
C0M(79)514final,infavourofaligningtheprovisionsof
Directive77/62/EEConthoseoftheMTNAgreementinsofarasthe
latteraremorefavourabletosuppliersintheareacoveredbythe
twoinstruments .
II.ANALYSIS OFTHEARTICLES
Article 1
1.Paragraph 1amendsthedefinitioncontainedinArticle1(a)of
Directive77/62/EECtocovertheslightlywiderrangeofcontracting
authoritiesreferredtointheMTNAgreement (ArticleI,paragraph
1(c)).Thecontractingauthorities havehadtobesubdividedinto
two.categoriesinordertoenablesomeoftheproposedamendments
tobeappliedtothecontractingauthorities referredtointhe
firstindentonly.

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2.Paragraph 2alignsthethresholdofcontractsawardedbythese
contracting authorities referredtointhefirstindentof
paragraph 1onthatoftheMTNAgreement (Article1rparagraph
1(b)),whichisapproximately 160000EUA.Thethresholdfor
theothercontracting authorities referredtointhesecond
indentremainsunchangedat200000EUA.
3.Paragraph 3providesfortheabolitionofanexceptiontothe
Communityproceduresfortheawardofcontractsinrespectof
goodsquotedandpurchased onacommoditymarket,sincesuch
goodsaresubjecttothetenderingprocedures providedforin
theMTNAgreement (ArticleV,paragraph 15).
«
4.Paragraph 4reproduces therequirements containedinparagraph
16ofArticleV.oftheMTNAgreement andensuresagreaterdegree
oftransparency inthecaseofcontracts awardedpursuantto
.Article6(1}ofDirective 77/62/tEC'-yallcontracting authorities .
5.Paragraphs 5,6and8alignthetimelimitsof,theprocedures
fortheawardofcontracts containedinDirective 77/62/EECon
theslightlylongeronescontainedintheMTNAgreement
-(ArticleV,paragraph 10). •
6.Paragraphs 7and9reflectcertainspecialfeaturesofthe
selectiveprocedurelaiddowninArticleV,paragraph 8ofthe
MTNAgreement.Althoughtheincorporation oftheseprovisions
imposeadditionalobligations onthecontracting authorities
referredtointhefirstindentofthefirstparagraphonly,it
hasprovednecessaryinordertoensurenolessfavourable
treatmentforsuppliersfromtheMemberStatesthanthataccorded
tosuppliersfromthirdcountrieswhicharesignatories tothe
MTNAgreement.
7.Paragraph 10reproducesinArticle25aofanewchapterinTitle
IVofDirective 77/62/EECappropriate provisions drawnfrom
paragraphs 2to5ofArticleVIoftheMTNAgreement enabling
suppliersfromMemberStateswhohavenotbeeninvitedoradmitted
totendertoobtainthesameinformation concerning theaward

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ofthe contract ascan beobtained bysuppliers who arenationals
ofathird country which isasignatory totheAgreement .Outof
thesame concern toensure agreater degree oftransparency .
Article 25b which isbased onparagraphs 6to8ofPart VIofthe
Agreement ,introduces newarrangements fortheexchange between
governments ofmore sensitive information .
Article 2
TheCommission expressly reserves the right tosubmit appropriate
proposals tothe Council toamend theDirective inthe light ofthe
results ofthenegotiations referred toinparagraph 6ofArticle IX
oftheMTN Agreement which aredesigned tobroaden and improve it.
Article 3
The final date for implementing the Directive must bethat ofthe
entry into force oftheMTNAgreement .Itwould becontrary tothe
EECTreaty toallow ,asfrom thedate ofentry into force oftheMTN
Agreement ,more favourable treatment tobeaccorded tosuppliers
from third countries than that accorded tosuppliers from Member
States .

COUNCIL DIRECTIVE
amending Council Directive 77/62/EECcoordinating procedures for
the award ofpublic supply contracts
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community
and inparticular Article 100thereof ,
Having regard totheproposal from theCommission ,
Having regard totheopinion oftheEuropean Parliament ,
Having regard totheopinion oftheEconomic andSocial Committee ,
Whereas byDecision of... onthe conclusion oftheMultilateral
Agreements resulting from the1973-79 Trade Negotiations the Council
approved onbehalf ofthe European Economic Community inparticular the
Agreement onGovernment Procurement thepurpose ofwhich istoestablish
aninternational framework ofrights andobligations concerning the
award ofpublic contracts inorder tosecure the liberalization and
expansion ofworld trade ;
Whereas Council Directive 77/62/EEC of21December 1976 coordinated
national procedures relating topublic supply contracts inorder to
introduce equal conditions ofcompetition forsuch contracts inallthe
Member States ;
Whereas asregards theinternational rights and commitments accruing to
theCommunity asaresult oftheacceptance oftheAgreement referred
toabove ,thearrangements tobeapplied totenderers andproducts of
third countries isthat defined bythat Agreement ;

Whereas certain provisions oftheAgreement introduce more favourable
conditions for tenderers than those Laid down inDirective 77/62/EEC
of21December 1976 ;
Whereas theopportunities for access topublic contracts within the
Community available under the EECTreaty toundertakings oftheMember
States must beatleast asfavourable asthe conditions ofaccess to
public contracts within the Community accorded under thearrangements
contained inthe "Agreement ,onGovernment Procurement "toundertakings
ofthird countries which aresignatories totheAgreement ;
Whereas itisnecessary therefore toalign theprovisions ofDirective
77/62/EEC of21December 1976 onthose ofthe Agreement onGovernment
Procurement ; -
Whereas theprovisions ofthis Directive should bereconsidered inthe
light ofthe results ofthenewnegotiations provided for inparagraph
.6ofArticle IXoftheAgreement onGovernment Procurement ;
HAS ADOPTED THIS DIRECTIVE :

ARTICLE1
CouncilDirective 77/62/EECisamendedasfollows:
>
1.Article1(b)shallbereplacedbythefollowing:
"(b)"contractingauthorities "shallbe:
-theentitiesreferredtoinArticleI,paragraph1(c)ofthe
"AgreementonGovernmentProcurement "concludedwithinthe
contextofthemultilateral tradenegotiations ;
-regionalorlocalauthorities andthelegalpersonsgovernedby
publiclawor,inMemberStateswherethelatterareunknown,
bodiescorresponding theretoasspecifiedinAnnexItothis
Directive;"
2.Article5(1)(a)shallbereplacedbythefollowing:
"TheprovisionsofTitlesII,IIIandIVandofArticle6shallapply,
undertheconditionslaiddowninArticle4,topublicsupplycontracts:
-whosevalueisnotlessthanthethresholdappliedunderArticleI,
paragraph1(b)ofthe"AgreementonGovernmentProcurement "concluded
withinthecontextofthemultilateral tradenegotiations,withregard
1tothecontractingauthoritiesreferredtointhefirstindentof
Article1(b);
-whoseestimatedvaluenetofVATisnotlessthan200000European
unitsofaccount,withregardtothecontractingauthoritiesreferred
tointhesecondindentofArticle1(b)."
3.Article6(1)(f)shallbedeleted

_2-
4.Article 6shall besupplemented bythefollowing newparagraph 3:
"Contracting authorities shall draw upareport oneach contract awarded
onthebasis ofprovisions (a)to (e)ofparagraph 1.The report shall
contain thename ofthecontracting authority ,thevalue andnature of
thecontract ,thename ofthesuccessful tenderer ,andshall indicate
thecircumstances referred toinparagraph 1(a)to (e)inwhich the
contract wasawarded .The report shall remain with thecontracting
authority inquestion andshall beavailable totheCommission and,
through it,totheAdvisory Committee forPublic Contracts ."
5.Article 10(1 )shall bereplaced bythe following :
"Inopen procedures ,thetime limit forthe receipt oftenders fixed by
thecontracting authorities shall benot less than 30days from thedate
ofpublication ofthenotice ." -
6.Article 11(1 )shall bereplaced bythe following :
"Inrestricted procedures ,the time limit for the receipt ofrequests
toparticipate fixed bythe contracting authorities shall benot less
than 30days from thedate ofpublication ofthenotice ."
7.Article 11shall besupplemented bythe following paragraph (1)a :
"The contract documents and supporting documents shall besent to
candidates who request them bythe contracting authorities referred to
inthe first indent ofArticle 1(b)orbythe competent departments
within four working days ofreceiving such request ."
8.Article 11(3 )shall bereplaced bythe following :
"Thetime limit forthe receipt oftenders fixed bythecontracting
authorities shall benot less than 30days from thedate ofdispatch
ofthe written invitation ."

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9.Article 19(1 )shall besupplemented bythefollowing newsubparagraph ;
"The contracting authorities referred tointhe first indent ofArticle
1(b )shall authorize anyother candidate who sorequests tosubmit a
tender oncondition that the procedure referred toinArticle 17for
checking suitability canbecompleted within theprescribed time .
Thenumber ofsuch suppliers shall belimited only bytheneed toensure
theeffective operation oftheprocedure forawarding contracts ."
10.Anew Chapter 3entitled "Provision ofinformation andexamination of
complaints "shall beintroduced into Title IVconsisting ofthefollowing
two articles :
"Article 25a _
j
Thecontracting authorities referred tointhe first indent ofArticle 1(b)
shall : -\
-without delay /notify toanycandidate who sorequests the reasons why
hehas notbeen invited orauthorized to ubmit atender ;
-inform unsuccessful tenderers ofthe award ofthe contract .Such .-
information shall benotified without delay inwriting orbynotice and,
inanyevent ,within notmore than seven working days from thedate of
theaward ;
-without delay ,notify toanyunsuccessful tenderer who sorequests
relevant information concerning the reasons forthe rejection ofhis
tender including information concerning the comparative characteristics
/
andadvantages ofthesuccessful tender ,andthename ofthesuccessful
tenderer ; -
-designate adepartment which shall beresponsible for furnishing
additional information tounsuccessful tenderers who consider that
the reasons given fortherejection oftheir tender areunsatisfactory
orwhowish toputother questions concerning theaward ofthe contract ;

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-establish ,without prejudice toArticles 169and170oftheTreaty
and totheCouncil Decision of26July 1971 setting upanAdvisory
Committee for Public Contracts ,asamended byCouncil Decision
77/63/EEC of21December 1976 ,procedures forthe receipt and
examination ofcomplaints relating toany stage oftheprocedure
for the award ofcontracts ."
"Article 25b
With regard tothe contracting authorities referred tointhe first
indent ofArticle 1(b):
-theMember State ofanunsuccessful tenderer may,without prejudice
tothe Council Decision of26July 1971 setting upanAdvisory
Committee forPublic Contracts ,asamended byCouncil Decision
77/63/EEC of21December 1976 ,request anyfurther information
concerning the award ofthe contract which maybenecessary toenable
ittoascertain whether the contract hasbeen awarded justly and fairly .
TheMember State ofthecontracting authority inquestion shall ,to
this end,furnish information onboth thecomparative characteristics
andadvantages ofthe successful tender andthe contract price .This
latter information may bedisclosed bytheMember State ofthe
unsuccessful tenderer provided such right isexercised with discretion .
Where such disclosure would prejudice competition ontheoccasion of
subsequent invitations totender ,such information shall bedisclosed
only following consultation and with the consent oftheMember State
bywhich itwasnotified ;
-available information concerning the award ofacontract shall be
notified toanyother Member State whosorequests ;
-confidential information furnished pursuant tothis Article which would
impede theapplication ofstatutory provisions orwhich would be
contrary inanyother way tothepublic interest orwould prejudice
the legitimate commercial interests ofspecific public orprivate
undertakings ,orwhich could prejudice fair competition between suppliers
shall bedisclosed only with the formal authorization oftheMember
State which furnished it."

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ARTICLE 2
TheCommission shall determine whether this Directive should be -reviewed ,
having regard tothe results ofthefurther negotiations provided for in
paragraph 6ofArticle IXoftheAgreement onGovernment Procurement
concluded within thecontext ofthemultilateral trade negoti ations ,and
shall ,ifnecessary ,submit appropriate proposals totheCouncil .
ARTICLE 3
Member States shal-l adopt themeasures necessary tocomply with this
Directive not later than 1January 1981 and shall forthwith inform the
Commission thereof .
ARTICLE 4
Member States shall ensure that the texts ofthe basic provisions of
domestic law,whether laws ,regulations c,administrative provisions ,
which they adopt inthe field covered bythis Directive ,arecommunicated
tothe Commission .
-ARTICLE 5
This Directive isaddressed toMember States .
Done atBrussels ,
For the Council
The President