The Swedish Competition Authority wants a court judgment on the contracting authority responsible for an illegal direct award

The municipality of Karlskrona has, repeatedly, purchased operation of a food service kitchen for a housing facility in the municipality. The first contract, concluded in October 2017, was followed by several contracts. None of the contracts were procured through a procedure with prior publication in accordance with the Swedish Public Procurement Act (LOU).

The Swedish Competition Authority is now petitioning the Administrative Court of Växjö that the municipality be obliged to pay SEK 80,000 as a procurement fine for the contract on operation of the food service kitchen concluded by the municipality in December 2020. According to the Swedish Competition Authority, this was an illegal direct award of contract.

Both municipalities as such and municipal committees, within a municipality, can act as contracting authorities. The circumstances under which a municipality, or a certain committee, is considered being the contracting authority in a specific procurement have previously been tried by the Supreme Administrative Court. However, some uncertainties still remain. In this case, the Swedish Competition Authority holds the view that it is the municipality of Karlskrona that is the contracting authority for the contract on operation of the food service kitchen. The municipality, for its part, claims that the municipal functional support committee is in charge of the procurement.

“When it comes to procurements performed within a municipality, it must be made clear which entity is acting as the contracting authority. For instance, a supplier must be able to hold the right party responsible in a petition for review. This is a matter of transparency and efficiency,” says Rikard Jermsten, Director General of the Swedish Competition Authority.

When a municipality is not transparent regarding which entity is acting as contracting authority, it aggravates the possibilities of effective review of the procurement. Due to this, the Swedish Competition Authority wants the matter tried in court.

Marie Strömberg Lindvall, Communications Officer, +46 (0)76 542 15 92, marie.stromberglindvall@kkv.se
Sophia Anderberg, Legal Counsel, +46 (0)8 700 15 63, sophia.anderberg@kkv.se

Read the application, dnr 743/2021 – the municipality of Karlskrona (in Swedish)

Read the application, dnr 744/2021 – the municipal functional support committee (in Swedish)