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Public procurement in Latvia is governed by several laws and Cabinet of Ministers regulations, including regulations laying down the rules for conducting procurement procedures and design contests.

The laws in force in Latvia are:

  • Public Procurement Law (PPL);
  • Law on the Procurements of Public Service Providers (LPPSP);
  • Law on Procurements in the Field of Defence and Security (LPFDS);
  • Law on Public-Private Partnership (LPPP).

The law applicable in each particular case depends on both the entity conducting the procurement and the subject matter of the procurement.

Public authorities and institutions subordinate to them, local governments and their institutions, as well as state and local-government-owned companies, will generally apply the Public Procurement Law. Contracting entities operating in the water sector (drinking-water supply), energy sector (gas, heat and electricity supply), transport sector (public railways, automated systems, trams, trolleybuses and buses), postal services sector (the universal postal service), or in activities relating to the exploitation of a geographical area (the management of airports or ports) will apply the Law on the Procurements of Public Service Providers. The Law on Procurements in the Field of Defence and Security applies to the procurement of specific works, supplies or services connected with national defence and security interests. When establishing cooperation with a private partner, the relevant public authority or entity may apply the Law on Public-Private Partnership.

Information on procurement conducted in Latvia and its results is published on the website of the Procurement Monitoring Bureau (hereinafter – the PMB) at info.iub.gov.lv.

 

1. Procurement planning and preliminary market consultation

Contracting authorities plan their procurements and publish procurement plans covering a period of at least 12 months. This information can help economic operators monitor forthcoming opportunities and prepare for planned procurements.

Before launching a procurement, contracting authorities carry out market research. As part of that research, a contracting authority may conduct a preliminary market consultation with economic operators in order to understand the market and prepare higher-quality procurement documents.

  • On the PMB website (info.iub.gov.lv): planning notices (prior information notices and notices of preliminary market consultations) and contract (tender) notices;
  • In the Electronic Procurement System (EPS; eis.gov.lv): procurement plans, documents relating to preliminary market consultations, and procurement documents.

A contracting authority may also publish procurement information on other websites, for example on its own website or on a website operated by a private company.

Economic operators may participate in consultations organised by a contracting authority and submit comments on selection criteria, technical specifications and market capabilities.

The contracting authority announces a consultation on the PMB website at info.iub.gov.lv and provides a link to the buyer profile in the EPS, where the detailed selection criteria and technical specifications are published.

A contracting authority may also conduct a consultation with economic operators by publishing information on its own website and specifying the matters to be discussed, the arrangements for participation and the manner in which the consultation will be conducted.

  • A planning notice entitled “Notice of a Preliminary Market Consultation” has been published on the PMB website at info.iub.gov.lv.
  • The “Procedure/procurement” field in the EPS states “Preliminary market consultation”.

* If the contracting authority has published one of the planning notices, such as a “Prior Information Notice”, it is an information notice intended to inform economic operators of a planned procurement. It is not a preliminary market consultation and no comments on the procurement need to be submitted.

 

2. Procurement procedures and procurement documents

Depending on the estimated contract value, contracting authorities may use different procurement methods. For example, they may conduct a price survey for low-value procurements. Once the relevant contract-value threshold is reached, the contracting authority may conduct a procurement under Section 9 of the Public Procurement Law or use an open procedure, restricted procedure, competitive procedure with negotiation, negotiated procedure without prior publication, or another applicable procedure. Procurements for social and other specific services may be conducted under Section 10 of the Public Procurement Law. The procedures laid down in the various procurement laws are broadly similar, although certain details may differ.

Each type of procurement or procurement procedure has its own rules and set of requirements. For example, in an open procedure all conditions and requirements for preparing a tender are set out in the procurement documents, and any interested economic operator may submit a tender. In a two-stage procedure, such as a restricted procedure or a competitive procedure with negotiation, the first stage is the selection of candidates, in which any economic operator may submit a request to participate; but only candidates selected at that stage and invited by the contracting authority may submit a tender.

The most common mistakes include incorrectly completed documents, missing information (for example, evidence of experience, availability of resources or required declarations), failure to comply with time limits (for example, an incorrect validity period for tender security), deviations from the technical requirements, and an unclear price structure (including aggregating costs or entering costs under another item in the financial offer). If an economic operator relies on the capacities of another entity to satisfy the selection criteria or engages a specialist, this must be stated clearly and unambiguously in the tender. Economic operators should also note that the entities whose capacities are relied upon will be checked for grounds for exclusion. If grounds for exclusion are relevant, see Section 5, “Grounds for exclusion”.

A tender, or a request to participate submitted in the first stage of a two-stage procedure, must be prepared in accordance with the procurement documents. The economic operator must provide the information required to demonstrate compliance with the selection criteria, technical specifications, requirements for the financial tender and award criteria. Where tender security is required, the applicable requirements for its preparation and submission must also be observed. Any additional information provided by the contracting authority must likewise be taken into account when preparing the tender.

! The requirements set out in the procurement documents must be followed precisely and satisfied in full.

In public procurement, members of the procurement commission, the person preparing the procurement documents, the secretary and experts must not have a conflict of interest involving an economic operator. Where such a conflict is established and cannot be effectively remedied by other, less intrusive measures, the economic operator may be excluded from the procurement procedure.

For further guidance, see the European Commission’s Guidance on the avoidance and management of conflicts of interest under the Financial Regulation.

While preparing a tender, an economic operator may ask the contracting authority questions about the requirements contained in the procurement documents. Questions should be submitted in good time so that the contracting authority can prepare a reply, send it to the person who asked the question and publish it in the EPS under the relevant procurement. The deadline for providing a reply depends on the type of procurement:

  • for a procurement under Section 9 of the Public Procurement Law (a  “small procurement”), no later than four days before the deadline for the submission of tenders;
  • for an open procedure and other procurement procedures, no later than six days before the deadline for the submission of requests to participate or tenders.

Economic operators should also bear in mind that the contracting authority may need time to prepare a reply, depending on the scope or complexity of the question. A question is submitted in good time if, after receiving it, the contracting authority has sufficient time to prepare a reply.

The contracting authority publishes all questions received and all replies provided in the EPS together with the documents for the relevant procurement.

 

3. Qualification requirements

In a procurement procedure, the contracting authority lays down qualification requirements concerning suitability to pursue the professional activity, economic and financial standing, and technical and professional ability needed to perform the procurement contract. The contracting authority sets the minimum levels of capacity. When submitting a tender or request to participate, the economic operator must demonstrate that it satisfies the requirements set out in the procurement documents.

The procurement documents specify how the qualification requirements must be satisfied and what evidence is required. For example, a professional qualification or education may be demonstrated by a certificate issued by a competent authority or a diploma issued by an educational institution, while previous experience in carrying out particular works may be demonstrated by information on contracts previously performed. With regard to economic and financial standing, an economic operator that is unable, for a valid reason, to provide the documents requested by the contracting authority may prove its economic and financial standing by any other document that the contracting authority considers appropriate.

Participation in public procurement is often challenging for newly established companies because they have not yet accumulated the required experience, including specific experience, or sufficient turnover. Public procurement legislation provides several ways for such companies to satisfy the selection criteria. If a company does not itself have the required capacity, it may rely on the economic and financial standing or the technical and professional ability of other entities.

The requirements may therefore be satisfied by forming a group of economic operators, relying on the capacities of another entity, or engaging a subcontractor.

In such a case, the economic operator must prove that the resources of the other entity on whose capacities it relies will be available to it for the performance of the contract.

Reliance on the resources of another entity cannot be merely declaratory: the resources must genuinely be available and relevant to the performance of the contract. Accordingly, when relying on another entity’s economic and financial standing, the economic operator must already include in its tender evidence that the other entity’s resources will be available throughout contract performance. If joint liability for contract performance is also required, the tender must include evidence demonstrating that such joint liability will apply and enabling the contracting authority to conclude that the entity will bear equal responsibility for performance of the obligations. An economic operator may rely on another entity’s technical and professional ability only where that entity will carry out the works or services for which the relevant ability is required. The tender must contain sufficient information for the contracting authority to establish that the extent of that entity’s involvement corresponds to the capacity on which the economic operator relies.

 

4. Submission and evaluation of tenders

Tenders must be submitted through the e-tendering subsystem of the EPS, in compliance with the applicable deadlines and technical requirements.

The procurement commission evaluates tenders in closed meetings in accordance with the criteria set out in the procurement documents. The evaluation covers compliance with the qualification requirements and technical requirements, assessment of the financial offer, and identification of the most economically advantageous tender. At the final stage of the procedure, the commission verifies that no grounds for exclusion apply to the prospective successful tenderer and carries out the applicable sanctions checks.

The legal framework does not prescribe a minimum or maximum period for evaluating tenders or requests to participate. The contracting authority conducts the evaluation for as long as is necessary to take a reasoned decision.

 

5. Grounds for exclusion

Grounds for exclusion are statutory circumstances that prevent an economic operator from being awarded a procurement contract. In the cases prescribed by law, the contracting authority must verify whether any ground for exclusion applies to an economic operator participating in the procurement.

The grounds for exclusion applicable to an economic operator are governed by the law under which the procurement is conducted. The list of grounds for exclusion is exhaustive: the contracting authority may not extend the statutory grounds and must apply the exclusion rules laid down by law.

  • Section 42 of the Public Procurement Law governs the verification and application of the grounds for exclusion;
  • Section 48 of the Law on the Procurements of Public Service Providers governs the grounds for exclusion;
  • Section 37 of the Law on Public-Private Partnership governs the grounds for exclusion;
  • Section 44 of the Law on Procurements in the Field of Defence and Security governs the grounds for exclusion.

In the cases provided for by law, an economic operator may take self-cleaning measures and submit explanations and evidence to demonstrate its reliability and show that the measures necessary to prevent the recurrence of the same or similar circumstances have been implemented within the undertaking.

In addition, before concluding the contract, the contracting authority verifies whether sanctions apply to the prospective contractor under the Law on International Sanctions and National Sanctions of the Republic of Latvia.

For general information on exclusion grounds applicable in EU public procurement, see the European Commission’s Public tendering rules in the EU or e-Certis. Please note that the applicable exclusion grounds and verification requirements are governed by Latvian law and the procurement documents

Latvijā reģistrētam uzņēmumam pasūtītājs izslēgšanas iemeslus pārbauda EIS e-izziņu sistēmā. Savukārt ārvalstu piegādātāji savas valsts iestādes izsniegtas izziņas iesniedz paši, ievērojot pasūtītāja pieprasījumu. Ārvalstu izziņu derīguma termiņš  ir 6 mēneši no izziņas izsniegšanas brīža, ja izziņā nav norādīts citādāk (skat. Skaidrojuma “Kandidātu un pretendentu izslēgšanas noteikumi” 68. lapu). 

 

6. Review of procurement decisions

  • Which procurements may be challenged before the PMB?

Procurement procedures conducted under the Public Procurement Law, the Law on the Procurements of Public Service Providers, the Law on Procurements in the Field of Defence and Security, and the Law on Public-Private Partnership may be challenged before the PMB.

Procurement procedures include the open procedure, restricted procedure, competitive procedure with negotiation, competitive dialogue, innovation partnership and negotiated procedure without prior publication. For the purposes of review, the term also covers procurements for social and other specific services conducted under the relevant law and design contests.

A decision to award a procurement contract under a framework agreement or a dynamic purchasing system may also be challenged before the PMB. In such a case, however, the contracting authority is not required to observe the statutory standstill period before concluding the procurement contract.

A decision may be challenged before the PMB only until the procurement contract has been concluded.

Procurements conducted under Section 9 of the Public Procurement Law may not be challenged before the PMB. A tenderer that has submitted a tender in such a procurement may appeal the decision to the Administrative District Court in accordance with the Administrative Procedure Law within one month from the date on which the decision was received.

The PMB also does not review procurements by public service providers where the estimated contract value is below the thresholds laid down in the Law on the Procurements of Public Service Providers and the procurement is conducted under internal rules or the Procurement Guidelines for Public Service Providers.

Nor may the PMB review procurements by private recipients of financing conducted under Cabinet Regulation No 104 of 28 February 2017, “Regulations Regarding Procurement Procedure and Procedures for Application Thereof to Projects Financed by a Contracting Authority”.

Economic operators and interested parties that consider that their rights have been infringed or are liable to be infringed may submit an application for review. This includes, for example, economic operators wishing to participate in a procurement procedure but encountering restrictive requirements in the procurement documents, and tenderers that have submitted tenders in the procedure.

A complaint may be submitted to the PMB:

  • concerning requirements laid down in the procurement documents and the contracting authority’s conduct during the procurement procedure;
  • concerning the results of the procurement procedure.

! A deposit is a payment into the PMB’s account required in order to challenge:

  • a decision to award a procurement contract or framework agreement;
  • a decision on the results of the selection of candidates.

For further information, see the guidance “Deposit Payment”

A complaint must be submitted to the PMB in writing in Latvian, or accompanied by a certified translation into Latvian, and must contain the following information required by law:

  • the applicant’s name and address;
  • the name and address of the contracting authority whose procurement is being challenged;
  • the title and identification number of the procurement procedure;
  • the facts on which the complaint is based, identifying the alleged infringement;
  • the legal grounds for the application;
  • the remedy sought by the applicant.

The complaint may be submitted in person (subject to prior arrangements with the PMB’s records office), sent as an electronically signed document to pasts@iub.gov.lv, or submitted through Latvia’s official e-address system. If the results of the procurement procedure are challenged, proof of payment of the deposit must be attached.

See also the Complaints section of the website.

The deadlines for submitting a complaint to the PMB are laid down in Section 68 of the Public Procurement Law, Section 72 of the Law on the Procurements of Public Service Providers, Section 63 of the Law on Procurements in the Field of Defence and Security, and Section 29 of the Law on Public-Private Partnership.

Deadlines for challenging requirements contained in the documents of procurement procedures conducted under the Public Procurement Law and the Law on the Procurements of Public Service Providers

Procedure

Deadline

Open procedure7 days before the deadline for the submission of tenders
Design contest7 days before the deadline for the submission of designs
Two-stage procedures
(restricted procedure, competitive procedure with negotiation, competitive dialogue, innovation partnership; negotiated procedure with a prior call for competition under the Law on the Procurements of Public Service Providers) (first stage)
4 working days before the deadline for the submission of applications
Two-stage procedures
(second stage)
4 working days before the deadline for the submission of tenders
Dynamic purchasing system (DPS) or qualification system
(Law on the Procurements of Public Service Providers) (first stage)
4 working days before the deadline for the submission of applications
Dynamic purchasing system (DPS) or qualification system
(Law on the Procurements of Public Service Providers) (second stage)
4 working days before the deadline for the submission of tenders
Procurement of social and other specific services

 
2 working days before the deadline for the submission of applications (first stage, where the contracting authority conducts the procurement in two stages)
Procurement of social and other specific services2 working days before the deadline for the submission of tenders

A complaint concerning the results of a procurement procedure — a decision to award a procurement contract or framework agreement, terminate the procedure without a result, or discontinue the procedure — the results of the selection of candidates, or admission to a dynamic purchasing system may be submitted within 10 days after the date on which information on the decision was sent to the person concerned, or within 15 days if it was sent by post.

For further information, see  Biežāk uzdotos jautājumus par iepirkumu apstrīdēšanu

 

7. Contract performance, modifications and early termination

  • The contracting authority is responsible for managing the contract and monitoring and controlling its performance. This includes monitoring the quality and timeliness of works and supplies, carrying out inspections, requesting reports, deciding on contract modifications and performing other obligations arising from the contract. The contractor is responsible for carrying out the works or supplying the products in accordance with the terms of the contract.
  • The contracting authority may refuse to accept works or supplies that do not comply with the requirements laid down in the procurement.
  • The contracting authority always decides whether a contract modification is necessary and permissible. Modifications are permitted only in the cases provided for in the contract and by law.
  • Early termination of a procurement contract is possible not only in the cases specified in the contract. A contracting authority may also terminate a procurement contract in the circumstances laid down by law, including those specified in Section 64 of the Public Procurement Law, Section 69 of the Law on the Procurements of Public Service Providers, and Section 65 of the Law on Public-Private Partnership.

The PMB website at info.iub.gov.lv contains information on procurement contracts and framework agreements concluded by contracting authorities, their actual performance, including contract modifications and, where applicable, the reasons for termination, as well as other relevant information.

The Contract Register is one of the sources from which a contracting authority can determine whether another contracting authority has unilaterally withdrawn from a contract because the contractor failed to perform it. Such failure is one of the grounds for exclusion that contracting authorities verify in procurement procedures. Where this ground is established within the applicable three-year exclusion period, the contracting authority conducting each procurement procedure must exclude the tenderer unless the tenderer has successfully demonstrated its reliability in the procedure in which it submitted a tender.

Procurement Guide 7. Conclusion and Performance of a Contract or Framework Agreement” 

 

8. Administrative violations

One of the functions of the Procurement Monitoring Bureau is to examine administrative violation cases and to impose administrative sanctions.

On the basis of an application or other information, the Procurement Monitoring Bureau may initiate administrative violation proceedings or a departmental examination case. Proceedings may be initiated for violations relating to the conclusion of a contract, for example where the applicable law was not applied, an inappropriate procurement procedure was used, or the rules on contract modifications were not observed. Administrative liability is also provided for failure to provide documents and information, as well as failure to comply with the rules on preventing conflicts of interest.

Depending on the seriousness of the violation, a warning or a fine may be imposed on officials of the contracting authority.

For further information on administrative sanctions, see the Frequently Asked Questions section.