Annex IV

✔ It is an annex of the Grant Contract that sets out rules and procedures to be observed when procurement is required in the implementation of an action
✔ Key general principles in procurement: transparency, fair competition, equal treatment, proportionality and non-discrimination. Avoidance of conflict of interests throughout the entire procurement procedure is to be sought too

The implementation of EU financed projects normally requires the procurement of goods and services by the Grant beneficiaries. Contracts signed for the procurement must be awarded to the tender offering best value for money (i.e. the tender offering the best price-quality ratio), or, in case of work or supply contracts not involving after-sale service, to the tender offering the lower price.

When the Beneficiary concludes the contract in order to implement the Action s/he shall respect the contract-award procedures and rules set out in Annex IV of the Grant Contract (see also annexes of the Grant contract). Annex IV, on the basis of the relevant articles of the Financial Regulations , establishes the rules and procedures that partners are required to observe when awarding supply, works and service contracts.

Please note that the types of procurement procedures are diversified according to:

  • Type of contract:
    • service: e.g. technical studies and publications;
    • supply: e.g. equipment and materials
    • work:: e.g. infrastructure and other engineering works
  • The value of the procurement contracts within each category (service, supply, work).

Moreover, in general, contracts must be signed in accordance with procurement rules and procedures:

  1. Ensuring sufficient transparency, fair competition and adequate ex-ante publicity
  2. Ensuring equal treatment, proportionality and non-discrimination
  3. Avoiding conflicts of interests throughout the entire procurement procedure.

:!: In any case, remember that contracts must not be split artificially to circumvent procurement thresholds! The European Commission will carry out ex-post checks on Beneficiary(ies) compliance with these rules. Failure to comply with these rules would render the related expenditure ineligible for EU/EDF funding.

Annex IV is divided in sections.

  • Section 1: General principles
  • Section 2: Eligibility for Contracts
  • Section 3: Common procurement rules
  • Section 4: Specific rules for Service contracts
  • Section 5: Specific rules for Supply contracts
  • Section 6: Specific rules for Works contracts
  • Section 7: Use of negotiated procedure
  • Section 8: Special Cases

Resources and useful links:
PRAG website
PRAG annex - E3h3_Contract Award Procedures (Annex IV)