OVERVIEW OF THE PUBLIC PROCUREMENT MARKET IN SERBIA – by Slavica Jokovic

According to the statistical data provided in the report of the Public Procurement Office, total value of concluded contracts in the first half of 2016 was about 1,1 billion EUR or 8,0% of GDP and the number of awarded contracts was 55.823.

As the effect of implementing the new Law on Public Procurement, positive trends can be noted in relation to the use of competitive procedures. Namely, the share of open procedures in the structure of awarded contracts showed a significant upward trend, whereas the share of negotiated procedures without invitation to bid showed a notable downward trend.

In the first half of 2016 when compared to the first half of 2015, the share of open procedures has increased from 89% to 93%.  In the same period, the share of low-value public procurement procedures has increased from 10% to 12%.

According  to the Law on Public Procurement, there is an advantage of 5% for domestic bidders and  goods. It means that:

“Where applying the criterion of economically most advantageous bid, and in situation with bids submitted by domestic and foreign bidders which provide services or perform works, contracting authority must select the bid of most advantageous domestic bidder, provided that the difference in the final sum of weighted points between most advantageous bid of the foreign bidder and most advantageous bid of the domestic bidder is not higher than 5 in favor of the bid of foreign bidder.”

Where applying the criterion of economically most advantageous bid, and in situation with bids of bidders offering goods of domestic origin, and bids of bidders offering goods of foreign origin, as most advantageous bid contracting authority must select the bid of bidder offering goods of domestic origin, provided that the difference in the final sum of weighted points between most advantageous bid of the bidder offering goods of foreign origin and most advantageous bid of the bidder offering goods of domestic origin is not higher than 5 in favor of bid of the bidder offering goods of foreign origin.

Where applying the criterion of lowest offered price, and in situation with bids of bidders providing goods of domestic origin and bids of bidders providing goods of foreign origin, contracting authority must select the bid of bidder providing goods of domestic origin, provided than its price offered is not more than 5% higher compared to the lowest price offered by bidder providing goods of foreign origin.

Definition of domestic bidder, pursuant to the Law on Public Procurement article 86 stipulates that it means:

  • resident legal person, in terms of the law governing income taxes of legal persons or
  • resident natural person, in terms of the law governing income taxes of citizens.

According to the Law on Public Procurement article 86, advantage for domestic bidders and goods, granted in public procurement procedures in which take part bidders from signatory states of the Central Europe Free Trade Agreement (CEFTA 2006) shall be applied in accordance with the provisions of that agreement.

Furthermore, advantage for domestic bidders and goods, granted in public procurement procedures in which take part bidders from signatory states of the Stabilization and Association Agreement between the European Communities and their Member States, on one side, and the Republic of Serbia, on the other side, shall be applied in accordance with the provisions of that agreement.

 

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