Kalix Municipality has performed an illegal direct award of the operation of a golf course. This is the conclusion of the Swedish Competition Authority, which is now presenting a claim for the municipality to be ordered to pay a procurement fine of SEK 400,000.
Kalix Municipality awarded a concession for the operation of a golf course without first opening the procurement for competition through an open call.
“As with the purchasing of other goods and services, concessions shall be advertised and opened for competition before any contract is awarded,” says Rikard Jermsten, Director General of the Swedish Competition Authority.
The total value of the concession is estimated to SEK 5,900,000. This exceeds the threshold for when contracts can be awarded without preceding advertisement. The Competition Authority therefore concludes that it is a case of an illegal direct award.
The Competition Authority is now turning to the Administrative Court in Luleå, petitioning for Kalix Municipality to be ordered to pay a procurement fine of SEK 400,000.
A concession is a contract between a procuring authority and a concession holder, such as the supplier of services. The supplier that holds the concession is entitled to compensation, fully or partially from their customers instead of from the procuring authority. The procurement of concessions is regulated by the Act on Procurement of Concessions (LUK).
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