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Public procurement irregularities in projects co-financed by ERDF

and CF

Willebrord Sluijters

European Commission, DG Regional Policy« Train the Trainers » seminar

17 June 2010

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Public procurement irregularities in projects co-financed by ERDF and CF

Basic distinction:

- tenders/contracts/issues subject to the public procurement directives

- tenders/contracts/issues not subject to the public procurement directives

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Public procurement irregularities in projects co-financed by ERDF and CF

Basic rules:

- free movement of goods and services

- equal treatment

- transparency

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Public procurement irregularities in projects co-financed by ERDF and CF

Tenders/contracts/issues covered by the directives (1)

Most frequent irregularities:

- non- or incorrect transposition, leading to application of non-compliant national provisions

- additional works awarded directly in circumstances not covered by the directives

- use of exceptional procedures (direct award, negotiated procedure) in non-exceptional circumstances

- use of formulas to automatically exclude bids without possibility of recourse/appeal

- mix up of selection and award criteria

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Public procurement irregularities in projects co-financed by ERDF and CF

Tenders/contracts/issues covered by the directives (2)

Most frequent irregularities:

- inadequate publication of tender information

- non transparent procedures for evaluating bids

- discriminatory or dissuasive selection criteria, including the regional or national preference or excessively detailed technical specifications

- imprecisely stated selection criteria and unduly formalistic application of criteria

- excessively short deadlines for submission of tenders

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Public procurement irregularities in projects co-financed by ERDF and CF

Tenders/contracts/issues not covered by the directives

Most frequent irregularities:- modification of the essential terms of a contract after

its award (physical, financial object)- non-respect of minimal publication requirements in

case of cross-border interest- non transparent procedures for evaluating bids- discriminatory or dissuasive selection criteria,

including the regional or national preference or excessively detailed technical specifications

- imprecisely stated selection criteria and unduly formalistic application of criteria

- excessively short deadlines for submission of tenders

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Public procurement irregularities in projects co-financed by ERDF and CF

Preventive action (1):

• Check your legislation on compatibility

• Apply the proper tendering procedure as foreseen by the directives: exceptional procedures only in exceptional cases

• Where possible use standardised tender documents and electronic tendering

• Lay down transparent tender evaluation procedures

• Ensure the presence of a help desk service for awarding authorities

• Implement pre-contracting checks

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Public procurement irregularities in projects co-financed by ERDF and CF

Preventive action (2):

• Rigourous follow up of the implementation of contracts: alarm bells in your management system!

• Define milestones and penalties in contracts; keep contractors to the contractual terms and apply penalties if necessary

• Regular on-site inspections and quality checks during implementation

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Public procurement irregularities in projects co-financed by ERDF and CF

GOOD LUCK !