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6. Public Procurement

The regulation of public procurements mainly aims at establishing rules to be complied with in the process of spending public funds. Bulgarian legislation is compliant with the general principle or EU law: transparency, equality, avoidance of discrimination and free and loyal competition.

 

There are three types of procurement - supply of goods, provision of services and carrying out of public works. The main criteria used to determine a contractor of a public procurement are: lowest cost and most economically advantageous offer; and different procedures depending on the subject of the contract are used.

 

Bulgarian legislation allows participation in the award of public contracts all Bulgarian and foreign persons without discrimination based on nationality. When selecting a private partner the principles of transparency and equal treatment are applied in full compliance of EU directives governing the award of public contracts.

 

With regard to compliance and correct application of these principles and to ensure the effectiveness of the procurement, the Minister of Economy and Energy has established a Public Procurement Agency. One of the functions of the Agency is to maintain a public register of electronic procurement, which contains all decisions for opening, modification and termination of procurement procedures; notices subject to entry into the register, information about awarded and executed contracts, information concerning the appeal procedures and other information which the contracting authorities have a duty to provide to the Public Procurement Agency under the provisions of the Public Procurement Act.

 

In addition, in accordance with EU requirements, public procurement procedures above certain value thresholds are published on the TED (Tenders Electronic Daily) database - the annex to the EU Official Journal, where EU calls for tender are published.

 

Contracting authorities

Contracting authorities under art. 7, items 1 to 4 incl. of the Public Procurement Act ("PPA")

  • The bodies of State power, the President of the Republic of Bulgaria, the Ombudsman of the Republic of Bulgaria, the Bulgarian National Bank, as well as other institutions of State;
  • The diplomatic missions and the consular posts of the Republic of Bulgaria abroad, as well as the permanent missions of the Republic of Bulgaria to the international organizations;
  • The bodies governed by public law;
  • Associations of the abovementioned bodies

Contracting authorities under art. 7, items 5 and 6 of the PPA

 

  • The public undertakings and any combinations thereof, as well as merchants and other persons which are not public undertakings, where carrying out one or several of the activities relating to natural gas, heat or electricity; potable water; transport services in the field of transport by railway, tramway, trolley bus or bus, as well as of automated transport systems or cableway; universal postal services; exploitation of a geographical area.

 

Mechanisms for award of public procurement

Procedures under the PPA

  • Open procedure;
  • Restricted procedure;
  • Competitive dialogue;
  • Negotiated procedures (with or without a prior public announcement).

Award through public call for tenders

 

  • The contracting authority publishes a call for tenders available to an unlimited number of potential candidates; the contracting authority may award the contract even if only one valid tender is submitted.

Free award

 

  • This is not a public procurement award procedure within the meaning of the PPA;
  • The contracting authority may award the contract to the preferred contractor without carrying out a procedure or publishing a public call; it is not mandatory to execute the contract in writing.

 

Value thresholds determining the applicable procurement award mechanism

Applicability of the PPA procedures

  • For construction contracts exceeding BGN 264 000
  • For supplies, services and design contests contracts exceeding BGN 60 000

Applicability of the award through public call for tenders

  • For construction contracts between BGN 60 000 and BGN 264 000
  • For supplies and services contracts between BGN 20 000 and BGN 66 000

Applicability of the free award of public

  • For construction contracts below BGN 60 000
  • For supplies and services contracts below BGN 20 000
  • For design contest contracts below BGN 66 000

 

Required documents for participation

In the PPA procedures

  • Registration document (for legal persons), copy of ID (for natural persons) or  agreement for setting up a joint venture (which is not a legal person);
  • Participation guarantee document;
  • Financial standing references (bank statements, financial reports, turnover for the past few years, etc.);
  • References for the participant's technical capacity (contracts for award of similar or identical services, description of the technical facilities available, etc.)
  • Declarations for the lack of exclusion criteria set out in art. 47 of the PPA;
  • Information on the sub-contractors (if any);
  • Other.

In the award through public call

  • Data on the participant;
  • Declarations for the lack of exclusion criteria set out in art. 47 of the PPA.

In the free award

  • The PPA does not lay down any specific requirements in this regard.