New report on the role of intermediaries in public procurement

It is not unusual for intermediaries to be used when contracting authorities and entities perform purchases. Both the appropriateness and the legality of using intermediaries has been the subject of discussion for a long time. The National Agency for Public Procurement and the Swedish Competition Authority have now both come together to produce a report – ‘Intermediaries in Public Procurement’ – in order to raise awareness of both the opportunities and the risks involved when intermediaries are used in public procurement.

“It is good that we now have a clear set of guidelines and advice for how contracting authorities and entities can use intermediaries without transgressing the rules. We want to make it easier for more organisations to do things correctly”, says the Director-General of the Swedish Competition Authority Dan Sjöblom.

The report defines two types of intermediary in public procurement: an intermediary who takes responsibility and signs contracts with suppliers, and a broker who negotiates contact before an agreement is reached between a supplier and the contracting authority or entity. Depending on which type of intermediary is used, the contracting authority or entity has different obligations.

“We want to provide support and advice to those contracting authorities and entities that are considering using intermediaries in the procurement process. This is an issue that affects many organisations and we hope that this report will answer some important questions”, says the Director-General of the National Agency for Public Procurement Inger Ek.

One feature of the report is that it establishes the fact that procurement rules apply in full even if an intermediary is engaged – intermediaries may not be used as a way of circumventing the procurement rules.

Read the report: Intermediaries in Public Procurement (in Swedish)