The contractor’s explanation of a grossly low price or cost must indicate the specific factors making it possible to offer a low price or cost, supported by evidence. The burden of proving that the price or cost is realistic lies with the contractor. If this obligation is not met, the contracting authority will reject the contractor’s bid.
The approach taken in a Public Procurement Office opinion towards the issue of the form of a non-pecuniary bid bond will mean a lower number of valid bids above EU thresholds, where the bid bonds required are so high that contractors use bank guarantees.
The Public Procurement Law regulates the method of eliminating contractors who do not meet the requirements for such things as integrity (no criminal convictions). The sanction of exclusion from a tender may be imposed on a contractor not for acts committed by the entity, but for acts committed in relation to the activity of a collective entity by natural persons acting on its behalf or in its interest.
There is a general principle that contracting authorities should request explanations when a proposed price, cost, or important components of price or cost seem grossly low and there are doubts about whether the contract can be performed. Art. 90(1) of the Public Procurement Act now no longer defines strict mathematical rules for examining a grossly low price. As a rule, whether explanations are requested from the contractor will depend on how the contracting authority assesses the contractor’s bid.
The European public procurement system is one of the foundations for the functioning of the common market. The principal task of laws in this area is to enable exercise of freedoms guaranteed in international agreements, being in this case unrestricted access to procurement procedures within the EU for contractors based in various member states. To achieve this, EU law not only requires adherence to the principles of a level playing field, fair competition and transparency; it also aims to remove market barriers, including those that are non-discriminatory, but are disproportionate. Regardless of this objective, interpretation and application of public procurement law leads to excessive formalism, rendering procurement procedures unintelligible, and distorting results around which public procurement law revolves.
Compulsory evaluation of the effectiveness of PPP projects, the possibility of obtaining an opinion on the legitimacy of a project carried out under this formula, a PPP test for projects valued at more than PLN 300 million, implementation of PPP projects via a special purpose vehicle owned by a private partner: these are just some of the changes introduced by an act recently signed by the President of Poland.