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Public tenders

  1. Public tenders
    1. Submitters of public tenders
    2. Division of public tenders
    3. Phases of public tenders
    4. Types of public tenders
  2. Participation of a foreign supplier in public tenders

Public tenders

Public tenders are of big economic importance for companies. In the Czech Republic, they are governed by Enactment No. 137/2006 Coll. on Public Tenders, which replaced the previous enactment from 2004. The enactment from 2004 no longer reflected the regulations of the European Union, No. 2004/17/EC and No. 2004/18/EC, and thus it had to be amended, and a new enactment was approved in 2006.

A typical attribute that differentiates public tenders from other commercial contracts is the obligation of the submitter to submit it in a tender procedure according to the Enactment on Public Tenders. Also, in other aspects, the submitter must proceed according to legal regulations; it must mainly observe rules regarding the equal treatment of competitors and transparency, and they have to avoid demonstration of discrimination.

Submitters of public tenders

Public submitter:

  • Czech Republic;
  • national allowance organization;
  • regional autonomous authority (municipality, region) or allowance organization where is the position of submitter executed by the regional autonomous authority;
  • other legal entity, if it fulfills three basic conditions required by law.

Grant-aided submitter:

  • any physical entity or legal entity that submits a public tender and more than 50% of the tender is paid by a public submitter, if:
    • it regards explicitly limited public tenders for construction works in the min. magnitude of 146,447,000 CZK (above-limit public tender);
    • it regards tenders for services specified as above-limit in terms of tax by law.

Sector submitter:

  • A sector submitter is a person who executes any activity stated in § 4 of Enactment on Public Tenders and that executes such an activity based on special or sole right or if the public submitter can directly or indirectly use a dominant influence in regards to such a person.

Central submitter:

  • A case when submitters acquire goods and services by means of the central submitter that is responsible for the entire process of the tender procedure. Central submitters don’t have to undergo the tender procedure.

Division of public tenders

Public tenders can be divided according to their subject and also according to assumed price. *According to subject, public tenders are divided into: *

  • public tenders for supply;
  • public tenders for construction works;
  • public tenders for services.

According to assumed price, public tenders are divided into:

  • above-limit public tenders;
  • under-limit public tenders;
  • public tenders of small extent.

The procedure in the area of public tenders ensures competition among individual submitters. It is a formalized process for the selection of the most suitable supplier. Initiation and development of the procedure can occur only according to instructions determined by law. The procedure is initiated by publication of notice regarding initiation of the tender procedure.

Phases of public tenders

  • publication of tenders (including criteria for evaluation of tenders);
  • envelope submission;
  • envelope opening;
  • evaluation of tenders;
  • publication of results.

Types of public tenders

The Enactment on Public Tenders differentiates between and governs the following types of public tenders:

  • open procedure;
  • restricted procedure;
  • negotiated procedure with publication;
  • negotiated procedure without publication;
  • competitive dialogue;
  • simplified under-limit procedure.

Individual types of public tenders depend on the type of submitter (public, grant-aided, sector) and whether conditions of use given by enactment are fulfilled.

Participation of a foreign supplier in public tenders

Foreign companies can participate in public tenders according to Enactment No. 137/2006 Coll. on Public Tenders.

A foreign supplier demonstrates fulfillment of qualification requests in a manner effective in the country of their residence, place of registered office or residency in the extent determined by the Enactment on Public Tenders and submitted by the public tender.

If, according to legal regulations effective in the country of residence, place of registered office or residency of the foreign supplier, a particular document is not issued, such a foreign supplier is obliged to demonstrate fulfillment of such a part of the qualification by means of a statutory declaration.

If an obligation whose fulfillment should be demonstrated in the framework of the qualification is not determined in country of residence, place of registered office or residency of the foreign supplier, the foreign supplier is obliged to execute a statutory declaration regarding this fact. Documents demonstrating fulfillment of the qualification are submitted by the foreign supplier in original language and adds their certified translation in Czech language.

Basic qualification assumptions are fulfilled by the foreign supplier who was not lawfully convicted for criminal act executed in the interest of criminal confederacy, criminal act regarding participation in criminal confederacy, legalization of profits from criminal activity, participation, acceptance of a bribe, bribery, indirect bribery, fraud, credit fraud including cases of preparation of participating in such a criminal act or obliteration of conviction for execution of such a criminal act; in the case of a legal entity, this assumption has to be fulfilled by a statutory organization or each member of the statutory organization, and, if a legal entity is a statutory organization or member of the statutory organization of the supplier, such an assumption has to be fulfilled by the statutory organization or each member of the statutory organization of such a legal entity; if an offer or request is submitted by a foreign legal entity by means of its organizational unit, assumption according to this paragraph must be fulfilled by stated entities and also by the manager of such an organizational unit; this basic qualification assumption has to be fulfilled by a supplier in relation to the territory of the Czech Republic and in relation to their country of residence, place of registered office or residency.

The foreign supplier fulfills the qualification assumptions if they were not lawfully convicted for criminal act related to subject of enterprise according to special legal regulations or in the case of obliteration of conviction for execution of such a criminal act; in the case of a legal entity, this assumption has to be fulfilled by a statutory organization or each member of the statutory organization, and, if a legal entity is a statutory organization or a member of the statutory organization of the supplier, such an assumption has to be fulfilled by the statutory organization or each member of the statutory organization of such a legal entity; if an offer or request is submitted by a foreign legal entity by means of its organizational unit, the assumption according to this paragraph must be fulfilled by the stated entities and also by the manager of such an organizational unit; this basic qualification assumption has to be fulfilled by a supplier in relation to the territory of the Czech Republic and in relation to their country of residence, place of registered office or residency.



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