Eligibility rules for contracts

✔ Only eligible contractors or tenderers are allowed to participate in procurement procedures
✔ Candidates or tenderers must not be subject to conflict of interest and are not guilty of misrepresentation in supplying the information required (or fail to supply this information)
✔ Grounds for exclusion in participation in procurement procedures are clearly mentioned in Annex IV.

When awarded Grant contracts, organisations must guarantee compliance with certain fundamental principles and best practices, in accordance with the principles of transparency and fair competition for potential contractors and taking precautions to avoid conflicts of interest. One of the main steps of the award procedure is the verification of the tenderers, by establishing the eligibility criteria. To this end, the organisation shall establish clear selection and award criteria and standard rules for the composition of the evaluation committee.

The most important criteria to be respected are about rules of nationality and of origin .

:!: The rule of nationality does not apply to experts proposed under service tenders financed by the grant.

It is important to note that grounds for exclusion in participation in procurement are clearly mentioned in Annex IV. Candidates or tenderers will be excluded from taking part of a procurement procedure if:

  1. they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;
  2. they have been convicted of an offence concerning their professional conduct by a judgment which has the force of res judicata;
  3. they have been guilty of grave professional misconduct proven by any means which the Beneficiary can justify;
  4. they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the Beneficiary or those of the country where the contract is to be performed;
  5. they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities' financial interests;
  6. they are currently subject to an administrative penalty referred to in section 2.3.5 of the Practical Guide to contract procedures for EC external actions.

Candidates or tenderers must certify that they are not in one of the above situation. Moreover, contracts may not be awarded to candidates or tenderers which, during the procurement procedure:

  • Are subject to a conflict of interest
  • Are guilty of misrepresentation in supplying the information required by the Beneficiary(ies) as a condition of participation in the contract procedure in the contract procedure, or fail to supply this information.

Resources and useful links:
PRAG website
Contract-award procedures (Annex IV)