The Swedish Competition Authority proposes measures to promote quality-based competition in public procurement

“Our assessment is that a register in line with our proposal, combined with other measures such as rating systems and strengthened contract management, would improve the conditions for quality-based competition,” says Marie Östman, Director General of the Swedish Competition Authority.

The Swedish Competition Authority proposes that the Government commissions an inquiry to develop proposals for a register of contracts in which suppliers have shown significant or persistent deficiencies, and where this has led to early termination of the contract or resulted in damages or comparable sanctions. Such an inquiry should also consider which authority should be responsible for the register and whether additional exclusion grounds should be included.

The Swedish Competition Authority also emphasises the importance of strengthened and more structured contract management by procuring organisations. A survey conducted by the Swedish Competition Authority within the scope of its analysis shows that only one in nine procurers fully agrees that deficiencies in contract delivery and complaints about insufficient quality are always reported to the supplier.

“Systematic contract management, together with other measures, will help ensure that suppliers who do not deliver to the agreed standard of quality will no longer retain the trust required to continue doing business with the public sector,” says Marie Östman.

In light of this, the Swedish Competition Authority considers that the Government should examine measures to increase the control of contract management by procuring organisations. Procuring organisations also need support in their contract management work, for instance through the dissemination of best practice.

The Swedish Competition Authority has also examined the feasibility of introducing a rating system for suppliers in public contracts and considers that the conditions may exist to use such systems within specific and limited areas. Introducing a comprehensive national rating system would, however, entail several legal challenges in relation to the current regulatory framework, and the Swedish Competition Authority considers that such a system should not be introduced.

Using rating systems within limited areas may be possible within the framework of current legislation. Many of the challenges associated with a national system could be better managed in such targeted systems. To clarify certain related legal aspects connected to such systems, further examination may be justified. However, the Swedish Competition Authority considers that further examination is not necessary for procuring organisations to initiate, for example, pilot projects with limited rating systems.

The report Metoder för att beakta kvalitet i offentliga kontrakt (Methods for Considering Quality in Public Contracts) has been submitted to the Government. The report is the Swedish Competition Authority’s final account of its assignment to propose measures aimed at counteracting crime and unfair competition, and to improve quality-based competition in public procurement.

Stefan Jönsson, Project Manager, +46 08-700 15 95, stefan.jonsson@kkv.se
Marie Strömberg Lindvall, Press Officer, +46 08-700 15 92, marie.stromberglindvall@kkv.se

Read the report (in Swedish)