WRITTEN QUESTION E-1431/99

by Gary Titley (PSE) to the Commission

(1 September 1999)

Subject: Contracts awarded by the Commission to external consultants

Would the Commission indicate the nature and effectiveness of the internal control procedures it uses to verify that tenders for studies are awarded in an entirely objective manner, particularly when a restricted tender procedure is used?

Would the Commission comment on the appropriateness of using a restricted tender process for awarding studies whose conclusions are likely to influence significantly new legislative proposals?

Answer given by Ms Schreyer on behalf of the Commission

(28 October 1999)

When awarding public contracts for studies in particular, the Commission applies the general principles of equal treatment and transparency set out in the EC Treaty, irrespective of the award procedure or contract size. It must also abide by the Community Directives on public procurement (Council Directive 93/0036/EEC of 14 June 1993 coordinating procedures for the award of public supply contracts(1), Council Directive 93/0037/EEC of 14 June 1993 concerning the coordination of procedures for the award of public works contracts(2) and Council Directive 92/0050/EEC of 18 June 1992 relating to the coordination of procedures for the award of public service contracts(3)), by the agreements on public procurement concluded in the context of the World Trade Organisation and the European Economic Area and by the rules applying in individual sectors, as laid down in various legislative instruments. These various principles and rules are also incorporated in detail in the Financial Regulation(4).

One important aspect of compliance with the principles of equal treatment and transparency concerns the publicity given to contracts. The public procurement Directives provide for contracts over a certain threshold to be publicised via a single medium (the Official Journal of the European Communities), but the Commission is also encouraged to publish contract notices elsewhere, in particular on the Internet.

These different legal rules set a number of thresholds which must be observed. Contracts with an estimated value of less than 13 200 may be concluded by private treaty. If the value is between 13 200

and 49 999, at least three tenders must be considered before a contractor is chosen. If the value is between 50 000 and 133 914, the contractor is chosen after an invitation to tender following a selection procedure which is generally based on an initial call for expressions of interest. The public procurement Directives must be applied in the case of contracts worth over 133 914, since all study contracts are covered by Annex IA to the service contracts Directive (except certain contracts in category 8 (research and development)).

Prime responsibility for conducting award procedures objectively and in accordance with the rules rests with the authorising officers in the various Directorates-General. As part of the SEM 2000 (Sound and efficient management) exercise, the financial units in each Directorate-General were given a more substantial role with a view, among other things, to improving the Commission's contractual practices.

All contracts worth over 46 000 and not related to external aid are referred to the Commission's Advisory Committee on Purchases and Contracts, which checks that the relevant principles and rules have been followed.

Financial Control carries out selective ex ante checks on budgetary commitments relating to contracts, which cover, among other things, compliance with the rules on the award of contracts. Award procedures are also subjected to scrutiny by way of internal audits carried out by Financial Control.

The Secretariat-General is responsible for general coordination of all studies proposed by Commission departments, the aim being to avoid duplication and improve transparency between Directorates-General. When a contractual commitment is made, the study is entered in the ADAM database, which includes all studies undertaken by the Commission and is accessible to the public.

Finally, once a study has been completed, a factsheet must be drawn up containing the following information: subject, title, brief summary, evaluation and publication references (if any). The study, together with the factsheet and final payment order, is then placed in the historical archives of the Secretariat-General, which endorses the payment order and submits it to the Financial Controller for his approval before payment.

As regards the choice of the restricted procedure, the public procurement Directives impose no limits on cases where it may be applied, thereby putting it on a par with the open procedure. A restricted procedure can be a judicious choice from the point of view of both the need to attract tenders of a high standard and administrative efficiency. Nevertheless, it is crucial that candidates are chosen on the basis of objective criteria. The Honourable Member is asked to notify the Commission, whenever he sees fit, of any case where use of a so-called restricted procedure has led to unfair competition.

(1) OJ L 199, 9.8.1993.

(2) OJ L 199, 9.8.1993.

(3) OJ L 209, 24.7.1992.

(4) OJ L 356, 31.12.1977.