Types of contracts

✔ The applicable standard procurement procedures depend on what is procured (services, supplies and works) and on its contract value
✔ The thresholds given are based on the maximum budget for the contract in question (including any co-financing)
✔ Contracts must not be split artificially to circumvent the procurement thresholds

The arrangements for competitive tendering and publicising contracts for works, supplies and services depend on the contract value, as follows:

Services

Value of the contractProcedure to be followed
≥€ 300,000International restricted tender procedure
<€ 300,000 but >€ 60,000Competitive negotiated procedure
≤€ 60,000Beneficiary's procedures

Supplies

Value of the contractProcedure to be followed
≥€ 300,000International open tender procedure
<€ 300,000 but ≥€ 100,000Local open tender procedure
<€ 100,000 but >€ 60,000Competitive negotiated procedure
≤€ 60,000Beneficiary's procedures

Works

Value of the contractProcedure to be followed
≥€ 5,000,000International open tender procedure
<€ 5,000,000 but ≥€ 300,000Local open tender procedure
<€ 300,000 but >€ 60,000Competitive negotiated procedure
≤€ 60,000Beneficiary's procedures

Beneficiary may apply the procedures they established, while respecting the rules and general principles for procurement (see also section "general principles")

Mixed contracts

In the case of mixed contracts covering a combination of works, supplies or services, the Contracting Authority determines the procurement procedure to be used (with the agreement of the European Commission). This will depend on which of the components (works, supplies or services) prevails in terms of values and operational significance.

General rules for contracts

The thresholds given in the tables above are based on the maximum budget for the contract in question (including any co-financing). Where contracts are subdivided in lots, the value of each lot shall be taken into account when calculating the overall threshold.
No contract may be split simply to evade compliance with the rules established in Annex IV. If there is any doubt about how to estimate the value of the contract, the Grant beneficiary must consult the European Commission or the EU Delegation on the matter before embarking on the procurement procedure.

Whatever the procedure used, the Grant beneficiary must ensure that conditions are such as to allow fair competition. Wherever there is an obvious and significant disparity between the prices proposed and the services offered by a tenderer, or a significant disparity in the prices proposed by the various tenderers (especially in cases in which publicly-owned companies, non-profit associations or non-governmental organisations are taking part in a tender procedure alongside private companies), the Grant beneficiary must carry out checks and request any additional information necessary. It must keep such additional information confidential.

Resources and useful links:

PRAG website
Contract-award procedures (Annex IV)
PRAG website: Service contracts
PRAG website: Supply contracts
PRAG website: Work contracts


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