Tales from the National Appeal Chamber: Proper self-cleaning by contractors
The “self-cleaning” procedure set forth in Art. 24(8) of the Public Procurement Law allows a bidder to seek the award of a public contract despite the existence of grounds for exclusion. But what evidence of self-cleaning should a contractor present for the effort to be effective? In the recent ruling of 31 July 2020 (case no. KIO 1248/20), the National Appeal Chamber held that contractors are not only required to show the personnel, organisational and technical measures they have taken to remedy past irregularities, but must also show that these measures will prevent similar violations in the future.
Tales from the National Appeal Chamber: The contracting authority must not abuse a summons seeking clarification of an abnormally low price
Can a summons for clarification of an abnormally low price be used with the aim of obtaining information from the contractor to verify whether the tender complies with the terms of reference for the procurement? What duties must the contracting authority observe, and when can it summon a contractor to provide an explanation? These issues were addressed in a ruling by Poland’s National Appeal Chamber of 16 June 2020 (case nos. KIO 709/20 and 715/20). The chamber considered the specific purpose of the summons for clarification.
Modification of contracts and contractual penalties in public contracts under Shield 4.0
As a result of the pandemic, many planned and existing contracts have been paralysed. The uncertain situation forces the parties to cease performing contracts or at least poses barriers to performance. In this situation, can they change the contract? Will they have to pay contractual penalties and damages? The situation now looks somewhat different than it did at the start of the pandemic.
Tales from the National Appeal Chamber: Does the contractor suffer the consequences of an error in the documentation by the contracting authority?
In procurements, minor errors often creep into the terms of reference or the forms for bids. Can these errors exert negative consequences on contractors? An important statement on this issue was made by the National Appeal Chamber (KIO) in its ruling of 13 March 2020 (KIO 423/20). The chamber stressed that if there are differences between the description of the subject of the contract and the offer form, the description of the subject matter will control, and contractors cannot be penalised for errors committed by the contracting authority in its own documentation.
Tales from the National Appeal Chamber: A contractor does not have to submit documents issued by the contracting authority
The number of declarations and documents submitted by contractors during the contract award procedure forced the Parliament to introduce mechanisms to cut red tape. One of the key provisions in this aspect is Art. 26(6) of the Public Procurement Law, the purpose and practical application of which was explained by the National Appeal Chamber in its ruling of 13 March 2020 (KIO 439/20).
Public contracts connected with COVID-19 not subject to the rigours of the Public Procurement Law
The pandemic requires immediate response and rapid launch of solutions for combating the coronavirus and its socio-economic impacts. Thus the Anti-Crisis Act includes provisions allowing contracts for fighting the pandemic to be awarded without following lengthy formal procedures.
Modification of contracts and contractual penalties in public contracts in the face of the pandemic
As a result of the pandemic, many planned and existing contracts have been paralysed. The uncertain situation forces the parties to cease performing contracts or at least poses barriers to performance. In this situation, can they change the contract? Will they have to pay contractual penalties and damages? The Anti-Crisis Act comes to their aid.
Digitalisation against the crisis
Public procurement is one of the biggest driving forces of the economy. Contract performance during the epidemic may be impeded, but ongoing public procurement proceedings should not be stopped just because people are currently working mainly at home.
Despite the pandemic, the National Appeal Chamber can (and must) function
In Poland, the National Appeal Chamber upholds the effectiveness of the rules guaranteeing transparent and non-discriminatory access to public procurement contracts within the EU. Member states are required to ensure contractors the consideration of review procedures concerning the award of public contracts, as is clear from the Remedies Directive.
Coronavirus: A new reality in public procurement
The coronavirus pandemic is already affecting contractors carrying out public projects and other contracts under the public procurement regime. With the dynamic development of the situation, there is a risk that negative consequences will go even further. The current situation affects not only the performance of contracts but also ongoing and future public procurement procedures.
European Commission tightens the use of CPV codes
A numbering system known as Common Procurement Vocabulary (CPV) codes has been in force across the EU since 2008. The system was designed to identify the subject matter of public contracts in various member states and thus encourage contractors from throughout the EU to bid in tenders of interest to them. For years the CPV codes fulfilled this role, but recently it was noted that contracting authorities were increasingly assigning erroneous CPV codes to contracts. Thus the European Commission decided to tighten the CPV code system. Contract announcements assigning erroneous codes will no longer be published on the TED platform (Tenders Electronic Daily supplement to the Official Journal of the EU).
EU Procurement Law 2020 thresholds lowered
EU thresholds and the average EU exchange rate for conversion of EUR thresholds into PLN will be lower from 1 January 2020, which means that some current contracts in Poland will exceed the EU thresholds.
