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Public procurement and competition – Swedish experience

Public procurement and competition – Swedish experience. Karin Lunning Moscow, 23-25 March 2011. The Swedish Competition Authority. The Swedish Competition Authority is a state authority working in order to safeguard and promote competition and supervise public procurement in Sweden

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Public procurement and competition – Swedish experience

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  1. Public procurementand competition – Swedish experience Karin Lunning Moscow, 23-25 March 2011

  2. The Swedish Competition Authority The Swedish Competition Authority is a state authority working in order to safeguard and promote competition and supervise public procurement in Sweden “Welfare through well-functioning markets”

  3. Effective Competition ”The objective of the Authority is to promote effective competition in the private and the public sector for the benefit of consumers and to promote effective public procurement for the benefit of the society and the market players”

  4. Tasks of the SCA • Applying the competition and the public procurement legislations • Submitting proposals to strengthen competition and effective public procurement • Promoting research

  5. Legal framework • The Swedish Competition Act -special rules on distorsion of competition between public and private actors • The Articles 101 and 102 of the Treaty on the Functioning of the European Union • The Public Procurement Acts

  6. EU Public Procurement Directives • Directive 2004/18/EC – Classic sector • Directive 2004/17/EC – Utilities sectors (water, energy, transport and postal services) • Directive 2007/66/EC – Remedies • Directive 2009/81/EC – Defence and security

  7. Swedish legislation on Public Procurement • Public Procurement Act (2007:1091) • Act on procurement within the water, energy, transport and postal services sectors (2007:1092) • Act implementing the Defence and Security Directive (Summer 2011) • Regulations

  8. Why rules on public procurement? • Free movement of goods, works and services • Opening of the market for competition • Best value for tax payer´s money

  9. Public Procurement Rules • Fundamental principles (equality, non-discrimination, transparency, proportionality, mutual recognition) • Similar rules above and below EU thresholds • Publication of a contract notice • Remedies

  10. Remedies • Court review of a procurement procedure and the effectiveness of a contract • Public Procurement fine • Damages

  11. Public Procurement fine • Application of Swedish Competition Authority • Mandatory application When contract is maintained despite rules being breached (court decision) • Voluntary application Illegal direct award of contract (no court decision required) • May not exceed 10 % of the contract value (max 10 million SEK)

  12. Supervising public procurement • Illegal direct award of contracts Ex. authorities not considering themselves as contracting authorities or incorrect application of exceptions from the legislation/rules on publication • Public Procurement fine • Guiding decisions

  13. Current issues and challenges • E-procurement • Innovations and public procurement • Changes in EU Public Procurement legislation? (Green paper) • A need for simpler rules, adequate information, enhanced transparency and an efficient system

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