Enhancing the Effectiveness of the EU Public Procurement Framework: Case

Description: I. Public procurement legislation in the EU ......................................... 19 1 Treaty provisions relevant to public procurement ................................... 19 1.1 Article 34 TFEU on free movement of goods ................................... 20 1.2 Prohibition of measures interfering with the free market .............. 21 1.3 Article 34 TFEU on specification requirements and standards ..... 22 1.4 De minimis rule under Article 34 TFEU .......................................... 23 1.4.1 Introduction of the Dundalk case ........................................ 24 1.4.2 Case discussion and commentary remarks ......................... 25 1.4.3 Introduction of the UNIX case ............................................. 27 1.4.4 Case discussion and commentary remarks ......................... 28 1.5 Conclusions on the main cases ........................................................... 29 1.6 Articles 49 and 56 TFEU on the right of establishment and right to provide services ..................................................................... 30 2 The EU public procurement Directive 2014/24/EU ................................ 31 2.1 The principle of equal treatment ........................................................ 34 2.2 The principle of non-discrimination ................................................. 37 2.3 The principle of transparency ............................................................. 39 2.4 The principle of proportionality ......................................................... 40 2.5 The principle of mutual recognition .................................................. 42 2.6 Conclusion of the fundamental principles ........................................ 43 3 Low-value contracts outside the scope of Directive 2014/24/EU ......... 44 3.1 The TFEU principles applicable to low-value contracts .................. 45 3.2 The counter arguments of General Advocate Sharpston ................ 46 3.3 Transparency obligation ..................................................................... 47 3.4 Interpretation of the further case law ................................................ 48 3.5 Conclusions ........................................................................................... 50 10 Contents II. The development of public procurement law in Lithuania ..... 53 1 The development of public procurement worldwide .............................. 54 2 GPA ................................................................................................................ 54 3 The development of public procurement in Europe ............................... 56 4 The development of public procurement in Lithuania ........................... 59 4.1 First Lithuanian public procurement law .......................................... 62 4.2 PHARE assistance programme ........................................................... 64 4.3 Pre-accession of Lithuania to the European Union ......................... 66 4.4 Lithuanian accession to the EU .......................................................... 68 5 Conclusion .................................................................................................... 69 III. Implementation of the EU public procurement rules in 1 Introduction ................................................................................................. 71 2 The EU Public Procurement Reform ........................................................ 71 3 Transposition of the Directive 2014/24/EU into national systems ....... 72 4 New legal framework of public procurement in Lithuania .................... 75 4.1 Primary legislation of public procurement ....................................... 76 4.2 Secondary legislation of public procurement ................................... 77 4.3 Public Procurement Office .................................................................. 80 4.4 Definitions of public procurement ..................................................... 81 4.5 Thresholds ............................................................................................. 84 4.6 Simplified procurement procedures .................................................. 87 4.7 Conclusions ........................................................................................... 90 5 New legal framework of public procurement in Germany .................... 90 5.1 Act against restraints on competition (GWB) .................................. 92 5.2 Regulation on the award of public contracts (VgV) ........................ 93 5.3 Regulation on the award of works contracts (VOB/A) ................... 94 5.4 Regulation on the award of contracts below the EU thresholds (UVgO) ............................................................................... 95 Contents 11 5.4.1 Scope of UVgO ....................................................................... 96 5.4.2 Procedures below the thresholds .......................................... 96 5.5 Thresholds ............................................................................................. 97 5.6 E-procurement ...................................................................................... 99 5.7 Conclusions ......................................................................................... 100 6 Public procurement procedures in Lithuanian and German legal frameworks ................................................................................................. 102 6.1 Open procedure .................................................................................. 103 6.1.1 New provisions ..................................................................... 104 6.1.2 Provisions in German law ................................................... 106 6.1.3 Provisions in Lithuanian law ............................................... 108 7 Restricted procedure ................................................................................. 110 7.1 Provisions in Germany ...................................................................... 113 7.2 Provisions in Lithuania ...................................................................... 114 8 Competitive procedure with negotiation and competitive dialogue ...... 115 8.1 Provisions in Germany ...................................................................... 118 8.2 Provisions in Lithuania ...................................................................... 119 9 Negotiated procedure without publication ............................................ 121 10 Innovation partnership ............................................................................. 123 10.1 Provisions in Germany ...................................................................... 124 10.2 Provisions in Lithuania ...................................................................... 125 11 Conclusions ................................................................................................ 125 IV. Key weaknesses of the EU procurement framework ............... 129 1 Wider application of competitive procedure with negotiation ............ 129 2 Administrative burden reduction opportunities ................................... 131 3 Better participation opportunities for SMEs in public procurement ............................................................................................... 132 4 The criteria of the most economically advantageous tender ................ 135 5 Promoting innovation in public procurement ....................................... 137 6 Pre-commercial procurement .................................................................. 141 12 Contents 7 The need for professionalism among public contracting authorities staff ........................................................................................... 143 8 Conclusions ................................................................................................ 145 V. Enforcement of the EU public procurement rules in 1 EU provisions ............................................................................................. 147 2 Evolution of legal regulation of public procurement disputes in Lithuania ..................................................................................................... 149 3 The system of remedies for suppliers in the Republic of Lithuania .... 159 3.1 Judicial disputes in public procurement following the legislation of the Republic of Lithuania ........................................... 160 3.2 Litigation efficiency and volumes ..................................................... 161 3.3 Pre-litigation procedures in public procurement ........................... 165 3.4 Different and mandatory time limits of pre-litigation procedures ........................................................................................... 166 4 Problem of the claim "on the same subject matter" .............................. 168 5 Discretion of the public contracting authority as a factor for dispute ......................................................................................................... 170 6 Information exchange between the supplier and the public contracting authority during pre-litigation procedures ....................... 174 7 Review of the decision by the same entity .............................................. 178 8 Conclusions and suggestions .................................................................... 179 VI. Enforcement of the EU public procurement rules in German 1 History ......................................................................................................... 183 2 Remedies system above the thresholds ................................................... 184 2.1 Obligation to submit a claim to the public contracting authority .............................................................................................. 185 2.2 First instance review .......................................................................... 186 Contents 13 2.2.1 Competence of the Public Procurement Tribunal ........... 186 2.2.2 Identification of facts and decision of Public Procurement Tribunal ......................................................... 189 2.3 Second instance review ...................................................................... 190 2.4 Contracts that have already been concluded .................................. 191 2.5 Preliminary ruling procedure pursuant to Article 267 TFEU ...... 191 2.6 Secondary legal protection ................................................................ 192 2.7 Civil claims .......................................................................................... 192 2.8 Costs ..................................................................................................... 192 2.9 Statistics of the review procedures ................................................... 193 2.10 Enforcement of decisions .................................................................. 194 3 Public procurement protection below the thresholds ........................... 194 3.1 Administrative law ............................................................................. 195 3.2 Civil law ............................................................................................... 196 3.3 Jurisdiction of ordinary courts ......................................................... 198 3.4 Interim legal protection ..................................................................... 199 3.5 Submission of a protective letter ...................................................... 200 3.6 Disadvantages of legal protection below the thresholds ............... 201 3.7 Damages under § 181 GWB .............................................................. 202 3.8 Damages under other provisions ..................................................... 203 3.9 Conclusions ......................................................................................... 204 VII. Advantages and disadvantages of remedies systems in 1 Pre-litigation proceedings ......................................................................... 207 2 Judicial proceedings ................................................................................... 210 3 Investigation of public procurement value which is below the EU threshold ..................................................................................................... 211 4 Compensation for damages in public procurement disputes .............. 212 5 Proposals for revision of German remedies system .............................. 214 14 Contents Final conclusions .............................................................................................. 217 List of figures ...................................................................................................... 221 Bibliography ....................................................................................................... 223

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