Ragunda Municipality should have issued a contract notice for staffing services to enable more providers to submit tenders. This was not the case, therefore the Swedish Competition Authority has ruled that the municipality conducted an illegal direct award of contract and must pay SEK 130,000 in procurement fines.
The procurements in question apply to seven separate cases of staffing for welfare services. Procurement rules state that purchases of the same category of service or goods in one financial year should be aggregated. If the value of the contract exceeds the limit for the direct award of contracts, the procurement must then be advertised.
“It is essential that procurements are advertised so several suppliers can submit tenders. This increases the chance that the best tender with the best price wins. Furthermore, following the tender procedure reduces the risk of corruption and unsuitable suppliers being chosen for the task,” explains Rikard Jermsten, Director General of the Swedish Competition Authority.
The Competition Authority has now referred the matter over to the Administrative Court in Härnösand, with a demand that Ragunda Municipality pays SEK 130,000 in procurement fines.
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