Örebro University is required to pay procurement fines

In April 2017, Örebro University purchased consultancy services for development and management work without complying with procurement regulations. According to the Public Procurement Act, LOU, the procurement should have been announced so that several potential vendors would have the opportunity to offer a bid. This did not take place, and thereby, the university made an illegal direct award of contract, according to the Swedish Competition Authority.

Before the decision was reached, the university’s procurement coordinator had informed that it was probably not the exception from the announcement requirement.  The fact that the university did not take this into consideration upon the decision is, according to the Swedish Competition Authority, a difficult and complicating factor.

”Failure to listen to your own experts in procurement is serious and opens the door to violations of the procurement regulations.  When the contract, in addition, is awarded without announcement and competition, we do not know if the best choice has been made, with the most advantageous price as the winner,” says Rikard Jermsten, Director General of the Swedish Competition Authority.

The Swedish Competition Authority is now taking the matter to the Administrative Court in Karlstad, and is filing a case that Örebro University pay 150 000 SEK procurement fines.

“It is important that all publicly controlled entities comply with the procurement rules. This applies to both state and municipal authorities. This increases the opportunities for good public purchases, while reducing the risk of corruption,” says Rikard Jermsten.

Read the decision, dnr 262/2018 (in Swedish)