Östra Göinge Municipality made an illegal direct award of contract when a new building was constructed at the municipality’s bathing facility Trollabadet. The Swedish Competition Authority has now brought an action in court, demanding that the municipality be ordered to pay SEK 375,000 by way of a fine/procurement claim.
The procurement in question was for construction work at the municipal bathing facility Trollabadet and included the construction of a new building for changing rooms and a kiosk. The contract was awarded on the basis of one of the municipality’s frame agreements.
The frame agreement stipulates that purchases in excess of SEK 5,000,000 must be advertised separately so that more companies have the opportunity to submit tenders. This was not the case and therefore the purchase was an illegal direct award of contract.
”Contracting authorities must ensure that their frame agreements are adhered to,” says Karin Lunning, Deputy Director-General at the Swedish Competition Authority.
”It is important to have control over one’s purchase organisation so everyone knows the rules that apply for their operations. Otherwise there is a great risk of regulations being breached.”
The Swedish Competition Authority is now referring the matter to the Administrative Court in Malmö with the demand that Östra Göinge Municipality be ordered to pay SEK 375,000 by way of a fine/procurement claim.
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