WRITTEN QUESTION E-1453/99

by Christa Klaß (PPE-DE) to the Commission

(1 September 1999)

Subject: Commission supply contracts in the area of internal logistics

The Commission is making efforts to cut costs for the provision of materials in the internal sector, essentially through the centralised selection of a number of large suppliers and by concluding long-term contracts.

Is the Commission aware that this results in small, and medium-sized enterprises being excluded from the award of contents and new firms having little prospect of being considered for future contracts.

What criteria does the Commission use for the award of contracts for the internal provision of materials, and how does this guarantee free competition?

What mechanisms in the award procedure guarantee that small and medium-sized forms which make the greatest contribution to the creation of jobs are not at a disadvantage compared with large suppliers? What action is the Commission taking to ensure that other firms will also be considered if materials are subsequently required?

Answer given by Mr Liikanen on behalf of the Commission

(8 December 1999)

Under Article 56 of the Financial Regulation(1), the Commission has to comply with the directives on public contracts when concluding contracts for which the amount involved is equal to or greater than the threshold provided for by those directives. Contracts below those thresholds have to be concluded by the Commission after an invitation to tender has been issued (Article 58(1) of the Financial Regulation), applying selection and award criteria mldr laid down by analogy with those provided for in the directives (Article 58(3)). Below certain thresholds or under certain circumstances contracts may be made by private treaty or against invoice (Articles 59 and 60). Application of these provisions and the principle of non-discrimination between tenderers (as set out in Article 62) is checked by the Advisory Committee on Procurements and Contracts (in the case of contracts exceeding the amount specified in the implementing measures for the Financial Regulation, currently EUR 46 000) and by the Commission's financial controller.

The provisions of the above-mentioned directives include rules on combination, designed to prevent an artificial fragmentation of contracts.

The Commission does not set out to conclude contracts with tenderers of a particular size, but it is required to apply the selection criteria (assessment of the financial and technical capacity of applicants) laid down in the public contract directives to ensure security of supplies to the Commission. Applicants are thus all treated equally and have to supply the requisite documents even if they are large well-known companies or are already or have in the past been Commission contractors.

The criterion for the award of Commission contracts is in the majority of cases that of the most economically advantageous bid within the meaning of the directives, assessed by reference to price and quality. The weighting of the various factors on which quality is assessed is also indicated in the notice of invitation to tender or in the contract specifications.

Notices are published in the S series of the Official Journal for all contracts worth EUR 50 000 or more (notice of invitation to tender or call for expressions of interest) to ensure better competition. To that end notices may also be published in the specialist press.

To encourage the widest possible participation in its contracts, particularly by small and medium-sized enterprises, the Commission may encourage consortia and authorise subcontracting. Furthermore, contract specifications are supplied free of charge in the language requested by the applicant or that of the country of establishment, so applicants have no need to incur translation costs. Tenders can, of course, be drawn up in any of the eleven official Community languages. Finally, the Commission endeavours to divide contracts into the smallest lots compatible with sound management and cost-benefit principles.

(1) OJ L 356, 31.12.1977.