What is Act No. 199 / 1994 Coll.?

Act No. 199 / 1994 Coll., on Public Procurement — Public procurement law.

When it became Act No. 199 / 1994 Coll. effectiveness?

Act No. 199 / 1994 Coll. became effective 01.01.1995.

Is Act No. 199 / 1994 Coll. still valid?

Yes, Act No. 199 / 1994 Coll. is still valid and effective.

How many times was it Act No. 199 / 1994 Coll. amended?

Act No. 199 / 1994 Coll. has 14 time versions of the text.

Act No. 199 / 1994 Coll. - Public procurement law

199

THE LAW

of 28 September 1994

on public procurement

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

GENERAL PROVISIONS

§ 1

Subject matter

(1) The law governs

(a) a binding procedure for contracting authorities to conclude contracts for their implementation (hereinafter referred to as "award");

(b) commercial public tender (1) for public contracts and the way in which contracts are concluded to implement them, on the basis of the results of the tender;

(c) the method of monitoring compliance with this law.

(2) This law does not apply to:

(a) the provision of special-purpose research and development support under the special legislation2) except where the only user of research and development results is the Czech Republic or the local self-governing body;

(b) purchase, storage and sale of agricultural products and foodstuffs organised by the State Agricultural Intervention Fund, 4)

(c) purchase of art historical or collection items carried out at public auctions under special regulations and purchase of library funds as a whole, 4b)

(d) the performance of a contract to be awarded in its entirety by a legal person set up for that purpose by the contracting ministry, another administrative authority or a local authority,

(e) public service obligations and other similar obligations involving public funds, 4c)

(f) active employment policy instruments governed by specific regulations, 4d)

(g) purchase, maintenance and restoration of Czech property abroad,

h) contracts of representative offices of the Czech Republic abroad,

(i) contracts relating to visits to official representatives of other States and governments in the Czech Republic;

(j) purchases of State tangible reserves held on commodity exchanges,

(k) purchases of assets and services of a strategic character approved by the Government of the Czech Republic, related to the integration and membership of the Czech Republic in the North Atlantic Alliance,

(l) contracts relating to the provision of foreign development and humanitarian assistance by the Government of the Czech Republic in cases of default risk;

(m) contracts for goods and services the State of which is the supplier of which is the Czech Prison Service,

(n) the purchase of prices for which the selection at their value cannot be made by specific legislation or decision of the price authority;

o) the acquisition of an expert or State Institute for the purpose of legal proceedings or administrative proceedings, 4e)

(p) contracts for the settlement of foreign claims registered in the state financial assets of the Czech Republic and resulting from decisions of the public authorities in respect of loans granted, loans, financial deposits or in the execution of mutual settlement relations, unless the government decides otherwise,

(r) contracts for the purchase of water where the contracting authorities are manufacturers, transporters or distributors of drinking water;

(s) contracts for the purchase of energy or fuels for the production of energy, where the contracting entities are producers, transporters or distributors of electricity or heat, gas transporters or distributors or companies performing exploration or extraction of oil, gas, coal or other fuels;

(t) contracts governed by other procedural rules and awarded on the basis of specific procedures of international organisations;

(u) contracts for the provision of financial services related to the issuance, sale, purchase or other transfer of securities and other financial instruments of the Czech Republic and services of the Central Bank;

(v) contracts awarded according to the accredited procedures of the individual programmes of assistance of the European Communities in the Czech Republic.

§ 2

Terms

For the purposes of this Act:

(a) a contract of sale concluded between the contracting authority and the successful tenderer whose object is the supply, execution of works or the provision of services;

(b) by the contracting authority:

1. the Ministry, another administrative office, a local authority, in the case of the city and capital of Prague, also the municipal district and the municipal part, 4c) and the budgetary and contribution organisations established by them, the Government of the Czech Republic, the Supreme Audit Office, courts, prosecutors, state funds, the National Property Fund of the Czech Republic, the Land Fund of the Czech Republic, Czech Railways, Czech Television, Czech Radio, as well as legal persons established by a special law, which, in accordance with the budgetary rules, operates with state budget, state funds, contributions from international organisations or budgets of local authorities,

2. the manufacturer, transporter or distributor of drinking water, electricity, gas or heat supplied to public networks, the public transport network operator and the public service provider in the field of rail, tramway, trolleybus or bus transport and cableway services, the operator of sewage networks and waste water treatment plants, provided that they provide services to the public;

3. an oil, gas, coal or other fuel company;

4. airport and port operator,

5. health insurance, 4f); or

6. a legal or natural person who, in order to cover a contract which is a contract referred to in point (a), uses the means of the State budget, the State funds, contributions from international organisations or the budgets of the local authorities;

(c) by a candidate for a contract, a domestic or foreign person or, where appropriate, more than one of those persons jointly who:

1. Requires procurement or qualification documentation; or

2. participate in pre-qualification proceedings (§ 21); or

3. take part in the negotiations at first instance in a two-stage tender; or

4. Is invited by the contracting authority to submit a tender in ways other than commercial procurement; or

5. the performance of the contract is considered,

(d) a tenderer for a contract (hereinafter referred to as "tenderer") by a domestic or foreign person or, where appropriate, by several of those persons jointly submitted by:

1. a tender in accordance with the conditions of competition awarded by the contracting authority for the tendering procedure; or

2. a preliminary tender in a two-stage tender; or

3. offer on the basis of a call by the contracting authority in other ways of awarding the contract;

(e) domestic

1. a legal person having its registered office or a natural person residing in the Czech Republic,

2. a legal person with a registered office or natural person residing outside the Czech Republic, authorised to do business in the Czech Republic in accordance with specific regulations, 5)

(f) a foreign person is a legal person having its registered office and a natural person residing outside the Czech Republic;

(g) a tender for the conclusion of a contract, supported by the documents required in the award of a contract;

(h) the tender price the tenderer proposes for the performance of the contract in his tender;

(i) two-stage competitive tendering where the contracting authority:

1. By announcing the conditions of competition for the first stage, it calls for the submission of preliminary tenders by an uncertain tenderer; and

2. at the second stage, calls for tenders only for tenderers who have fulfilled the conditions of the first stage;

(j) a preliminary tender for the method of performance of the contract, supported by the documents required by the contracting authority in the conditions of competition in the first instance or in the procurement documents; the draft contract and the tender price are not included in the preliminary tender;

(k) documents relating to the award of a contract, a set of documents the acquisition of which is required by this law and tenders from all tenderers;

(l) a set of machines or equipment constituting a separate functional unit, such a set of movable goods which fulfil a comprehensive technical and economic function determined by the contracting authority or project documentation and requires assembly;

(m) a specialised contract for which only a limited number of candidates with the relevant business authorisation may be awarded to contracting entities, but not more than seven;

(n) the central address of the place where the information specified by this Act is published in the publicly available information system (Internet);

(o) by the administrator of the central address, the person organising, in return for payment, the publication of the information provided by this law or the information provided voluntarily by the contracting authority.

§ 2a

Qualification of tenderers

(1) Candidates are required to demonstrate in tenders the qualification assumptions (§ 2b) for the performance of the contract. In the award, the contracting authority may require the fulfilment of additional conditions for performance of the contract (Section 2f).

(2) The contracting authority shall establish the qualifications of tenderers

(a) in pre-qualification proceedings (§ 21),

(b) when assessing tenders (Sections 29, 34 and 49),

(c) when assessing tenders (§ 35),

(d) before the conclusion of the contract (Sections 38 (4) and 49).

(3) The requirements for the demonstration of additional assumptions for the performance of a contract shall be defined by the contracting authority in the award or in the qualification documentation, including the required method of performance. Candidates may request information from the contracting authority to demonstrate additional assumptions not later than seven days before the end of the competitive period; the information must be provided to all tenderers.

(4) In determining the requirements for the demonstration of the qualification of tenderers, the contracting authority shall indicate in the terms of the award how it requires the demonstration of the qualification if it submits a tender jointly to several persons.

(5) In the case of tenders anticipating the performance of a contract with the assistance of other persons, the tenderer making the tender shall demonstrate compliance with the qualification criteria if his business authorisation covers the full scope of the contract. Otherwise, these other persons demonstrate that the qualifying condition under Paragraph 2b (1) (a) is fulfilled.

§ 2b

Qualification assumptions

(1) The eligibility criteria for performance of the contract are met by the tenderer,

(a) which has a relevant business authorisation, (5a) where specific provisions are laid down;

(b) the assets of which have not been declared bankrupt or against which bankruptcy or settlement proceedings have not been opened, or the application for a declaration of bankruptcy has not been rejected because of a lack of bankruptcy or is not in liquidation;

(c) which does not include tax arrears in the tax register, 5b)

(d) who has not been convicted of a criminal offence the nature of which relates to the subject of the applicant's business or to an economic offence 5c) or an offence against property, 5d)

(e) which has not been disciplined in the last three years under special rules governing the pursuit of professional activities, 5e) where that activity relates to the subject of a contract;

(f) who does not have a outstanding premium on insurance premiums and periodic penalty payments on public health insurance (5f) or insurance premiums and social security and contribution to state employment policy (5g)

(g) which is not excluded from participation in public procurement pursuant to § 63.

(2) The condition referred to in paragraph 1 (d) applies to persons acting as a statutory body or all members of a statutory body. For the organisational units of the enterprise (5h) incorporated in the commercial register, compliance with that condition also applies to the management of the organisational component of the enterprise (5i) submitting the offer.

(3) The conditions referred to in paragraph 1 (d) and (e) shall also apply to the responsible representative of the tenderer established under a specific legislation. 5j)

§ 2c

Demonstration of qualification assumptions

(1) The applicant shall demonstrate compliance with the qualification requirements set out in § 2b (1) (a) with the evidence of the business authorisation, including the extract from the commercial register, and with the honorary declaration of compliance with the qualifications set out in § 2b (1) (b), (c), (d), (e) and (f).

(2) The candidate with whom the contract is to be concluded will demonstrate the qualification assumptions as follows:

(a) in accordance with Article 2b (1) (a), an extract from the Commercial Register, if registered, not more than 90 days old;

(b) pursuant to Article 2b (1) (d), an extract from the Register of Penalties not more than six months old;

(c) in accordance with Paragraph 2b (1) (f), by confirmation of the competent authority not more than six months old.

(3) The documents entitled to business and the documents referred to in paragraph 2 may also be presented in a copy with a certificate of authenticity.

§ 2d

Changes in qualification

The applicant shall report within 14 days to the contracting authority any changes that have occurred following the submission of his tender and which affect the information required by the contracting authority to demonstrate the qualification.

§ 2e

Consequences of non-compliance with qualification assumptions

If the tenderer fails to demonstrate one of the qualification assumptions or fails to fulfil an obligation under Paragraph 2d, the contracting authority must exclude him from participating in the further negotiation of the contract. The decision on exclusion shall be notified without delay by the contracting authority to the excluded tenderer.

§ 2f

Other conditions for performance of the contract

(1) Other conditions for performance of the contract are, for example:

(a) technical and material equipment for the performance of the contract;

(b) the number of employees of professional professions responsible for the performance of the contract;

(c) an overview of the significant contracts executed by the tenderer in recent years, indicating the client or, where appropriate, the buyer, place and time of execution.

(2) The facts referred to in paragraph 1 shall be confidential and may be used by the contracting authority only for the purpose of evaluating the results of the award of the contract for which they have been documented.

(3) The contracting authority may require the tenderer to make a solemn declaration that the proposed solution to the contract contained in the tender does not benefit from the protection provided for in the specific legislation3) or that it is the holder of these rights.

§ 2g

Variant solution

The variant solution in the tender is admissible unless otherwise specified by the contracting authority.

§ 2h

Procurement documents

(1) The specification is a summary of the data and information necessary for the processing of the tender. It shall be provided by the contracting authority on request to candidates for contracts. The procurement documents shall include the technical terms and conditions of the contract determining the quality and technical characteristics of the subject-matter of the contract. The procurement documents shall include a clear definition of the quantity and type of work, supplies or services required. The contracting authority shall be responsible for the completeness and accuracy of the information contained in the procurement documents.

(2) Where the required technical conditions contain requirements or references to individual business names, specific business names, specific product, performance or commercial materials that apply to a particular undertaking or organisational unit for the characteristics, patents and utility designs, the contracting authority shall allow the use of similar solutions.

(3) The procurement documents for public works contracts shall be set out in the scope of the project documentation necessary for the construction procedure, extended by the statement of premises, a list of works and supplies with a detailed description of the required standards which clearly define the items used.

§ 3

Public procurement procedures

(1) In order to conclude a contract, the contracting authority declares a tender for the most appropriate tender, unless otherwise provided for in this law. In a commercial tender, the contracting authority shall proceed under the Commercial Code, unless otherwise provided for in this Law.

(2) The contracting authority is obliged to declare a commercial tender if the amount of the future cash obligation of the contract excluding value added tax, if it is for real estate, except rent, or a set of machines or equipment forming a separate functional unit exceeds CZK 30 million and in other cases CZK 7,5 million.

(3) Contracting entities referred to in § 2 (b) (2), (3) and (4) are required to declare a commercial tender if the amount of the future liability of the contract, excluding value added tax, if the property, with the exception of rental, or a set of machines or equipment forming a separate functional unit exceeds CZK 50 million and in other cases CZK 12 million.

(4) The conclusion of a contract by a means other than a commercial tender pursuant to paragraph 1 shall be admissible only if the conditions laid down in Part Three of this Act are fulfilled.

ČÁST DRUHÁ

COMMERCIAL PUBLIC COMPETITION

HLAVA I

CERTAIN PROVISIONS ON COMPETITION CONDITIONS

§ 4

Announcement of a commercial tender

(1) The procuring entity shall declare a tender, its conditions and, where appropriate, amendments and cancellations by publication in the Commercial Journal6) and at the central address.

(2) Before the publication of a commercial tender referred to in paragraph 1, the conditions of the competition shall not be published otherwise and shall not be disclosed to any person of their content.

§ 5

Content of the conditions of the competition

(1) The conditions of competition must include:

(a) the definition of performance of the contract;

(b) the time and place of performance of the contract;

(c) requirements for demonstrating the qualification assumptions of tenderers (§ 2b);

(d) how tenders are evaluated (Section 6);

(e) requirements for a uniform way of processing the offer price, including payment terms;

(f) the time limit for competition (§ 7) and the place for opening bid envelopes;

(g) the time limit (§ 8),

(h) the place of submission of tenders and the time during which tenders may be submitted in person (Section 9);

(i) the name, registered office, telephone, telex or fax of the contracting authority, where appropriate;

(j) a notice of the time of the inspection of the place of performance of the contract or of the time when the documents may be consulted, where the examination is envisaged, or where such documentation is not part of the procurement documents;

(k) the requirement to provide a security, including its amount (§ 23);

(l) the conditions under which the offer price may be exceeded.

(2) The contracting authority may define other conditions of competition which it declares at the same time as those laid down in paragraph 1, in particular:

(a) special conditions for the performance of the contract (Section 10);

(b) advantage for domestic persons (§ 11);

(c) restriction of competition to domestic persons;

(d) the address and the time limit within which the tender documents may be requested, if the tender documentation is necessary for the processing of the tender (§ 2h) or, where applicable, the amount of remuneration for its provision, if the payment is required by the contracting authority (§ 64c),

(e) requirements for the demonstration of additional assumptions (§ 2f) or, where appropriate, for pre-qualification procedures (§ 21);

(f) address and deadline for obtaining qualification documentation (§ 15);

(g) the requirements for the division of the contract for partial performance;

(h) minimum requirements for possible variant solutions or exclusion of alternative solutions;

(i) the conditions for the execution of a contract linked to compensating transactions, in respect of contracts for defence and security purposes.

(3) If the contracting authority decides to assess the economic suitability of the tenders (Section 6), it will set out the different criteria in the conditions of competition. It will do so in descending order according to the degree of importance it attaches to them.

§ 6

Method of evaluation of tenders

(1) The evaluation of tenders shall be carried out according to the amount of the bid price or the economic suitability of the tenders in accordance with the criteria laid down in the conditions of competition.

(2) In assessing the economic suitability of the tender, the contracting authority shall take into account in particular the nature of the contract:

(a) the time of performance of the contract;

(b) the technical, quality, aesthetic and functional characteristics of the contract;

(c) operating costs and maintenance requirements;

(d) ecological parameters, in particular the choice of the best available technology and measures to gradually reduce emissions, (7) the level of loading of land, (8) the prevention of pollution or environmental damage, (9)

(e) the amount of the offer price;

(f) the value of the compensating transaction for contracts for which such a condition has been established [Paragraph 5 (2) (i)].

(3) The contracting authority shall take into account all variants submitted by the tenderer, unless the contracting authority has excluded the possibility of a variant solution.

§ 7

Competition period

(1) Competition period means the period within which tenders may be submitted. When setting the time limit, account shall be taken of the need to examine the place of execution of the contract or to consult other documents for the processing of the tender. The competition period shall not be less than 36 calendar days.

(2) The competition period shall begin on the day of the publication of the commercial tender in the Trade Journal and end on the day and hour of the opening of the tenders. The conditions of the competition shall be defined by setting the relevant date and time for opening the envelopes with tenders.

(3) The time between the examination of the site or the possibility of viewing the documentation referred to in Article 5 (1) (j) and the opening date of the envelopes must not be less than 21 days.

§ 8

Time limit

(1) The time limit is the period for which tenderers are bound by their tenders. The contracting authority shall determine it in the conditions of competition by the number of calendar days.

(2) The tendering period laid down in the terms of the competition shall be extended to all tenderers placed in the first to third order until the conclusion of the contract (§ 40). The procurement period shall not exceed 90 calendar days without extension; its operation shall begin on the day on which the tenders are opened and end on the date of dispatch of the notification of the selection of the most appropriate tender, provided that no objections or proposal to review the decision of the contracting authority are submitted. The procurement period shall be extended by 90 days for contracts in which foreign aid programmes are financially involved under existing international agreements.

§ 9

Method of submission of tenders

(1) Tenders shall be submitted in writing in person or by registered mail, in sealed envelopes bearing the name of the contract and bearing the stamp and, where appropriate, the signature of the tenderer, if the natural person or his statutory representative is a legal person.

(2) Tenders must be delivered by the contracting authority before the end of the competitive period. The contracting authority shall not open late tenders and return them to the tenderer without delay. Each tenderer may submit only one tender; in breach of these obligations, the contracting authority shall exclude the tenderer concerned from the competition. No person may participate in the same competition as the tenderer more than once.

(3) When assessing tenders according to the economic suitability of the tender, the contracting authority may provide that the tender shall be divided into separate envelopes. This envelope shall bear the inscription "Tender price," sealed and stamped by the tenderer.

(4) Samples and samples of goods offered must be marked as part of the offer.

§ 10

Specific conditions for the performance of the contract

Specific conditions for the execution of a public contract are, in particular, requirements for addressing environmental problems, employment and the use of local resources and raw materials in a particular region.

§ 11

Advantage of certain tenderers in a commercial tender

(1) None of the tenderers may benefit from the commercial tender against the other tenderers with the exceptions referred to in paragraphs 2 and 3.

(2) In the case of a commercial tender with foreign participation (§ 65), the contracting authority may, under the conditions of the competition, provide for an advantage for domestic prices up to a maximum of 10% from the lowest foreign bid price. Where an offer is submitted jointly by a domestic and foreign person, their offer shall be considered as an offer by a foreign person.

Citation	Act No. 199 / 1994 Coll., on Public Procurement
Regulation Type	Law
Author	-
Collection	Code of Laws

Date of Promulgation	07.11.1994
Effective from	01.01.1995
Effective until	-
Status	Valid

Act No. 199 / 1994 Coll.

Public procurement law

Contents