About the legislation

The rules on procurement are found in four legal acts: the Act on Public Procurement, the Act on Public Procurement in the Utilities Sectors, the Defence and Security Procurement Act and the Act on Public Procurement of Concessions. Which act you should observe depends on the object of the purchase or the industry for which the purchase is made.

Each year, the public sector makes purchases for an estimated SEK 634 billion. To ensure that tax monies are used in the best way possible, and to safeguard competition on the market, authorities must observe certain rules when performing procurements.

The Act on Public Procurement

The Act on Public Procurement (LOU) applies to purchases of public works, goods and services.

The Act on Public Procurement in the Utilities Sectors

The Act on Public Procurement in the Utilities Sectors (LUF) applies to contracting entities in the fields of water, energy, transport and postal services.

The Defence and Security Procurement Act

The Defence and Security Procurement Act (LUFS) applies to defence and security procurements that encompass military equipment, among other things.

The Act on Public Procurement of Concessions

The Act on Public Procurement of Concessions (LUK) applies to any procurement of services or works with the award of a so-called concession. There are service concessions and works concessions. A service concession is a contract covering the performance of a service and where the remuneration is a right to use the object of the contract itself. A works concession is a right to use a building.

Which legal act should I use?

It can sometimes be hard to know which legal act applies. What determines the legal act you should use is the main type of operations encompassed by the contract.

In some cases a contracting authority, such as a municipality, performs several different types of operations. Among the things that determines the legal act under which the procurement should be performed is if the contract encompasses only operations in one of the utilities areas or if the contract encompasses both such operations and operations not covered by LUF. If it is not possible to determine which operations are encompassed, the provisions in Chapter 2 Sections 23–24 in LUF provide some guidance.

Whether or not LUFS should be applied instead of LOU or LUF depends on if the object of the contract is any of the particular types of goods, services or public works covered by LUFS.

The question of when LUK should be applied instead of one of the other acts should be assessed in accordance with the provisions in Chapter 2 LUK, and is usually not difficult to determine. This act only applies when the contract being awarded is a service or works concession.

Legal references for choosing between LOU, LUF, LUFS and LUK:

Chapter 2 Sections 3–12 LOU and Chapter 3 Sections 1–3 LOU
Chapter 2 Sections 10–19 and 25 LUF and Chapter 3 Sections 1–3 LUF
Chapter 1 Sections 4–6 LUFS
Chapter 2 Sections 3–20 LUK and Chapter 3 Sections 1–3 LUK

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