Public Procurement Law in Romania 2024 | EU Regulations & Insights

Did you know that Romania’s public procurement market is huge, making up 15% of its GDP?

This fact shows how important it is to know the details of public procurement law in Romania.

With Romania following EU rules, it’s key for businesses and public groups to understand government contracts and public tenders well.

Romania’s public procurement laws are strong, based on Laws no. 98/2016, 99/2016, and 100/2016.

These laws follow EU rules, making sure Romania meets European standards.

They also fit Romania’s legal and economic needs.

The National Agency for Public Procurement (ANAP) is very important.

It watches over tenders and keeps the procurement process fair.

Romania’s move to the Electronic Public Procurement System (SEAP) has made government contracts more open and efficient.

For companies wanting to work on public contracts in Romania, knowing the laws and EU rules is vital.

The system has its rules for who can bid and how bids are judged. It offers chances for both local and international companies.

Key Takeaways

• Romania’s public procurement market represents 15% of its GDP;
• Core legislation includes Laws 98/2016, 99/2016, and 100/2016;
• EU directives have been transposed into Romanian law;
• ANAP oversees procurement processes;
• SEAP facilitates electronic procurement;
• Understanding legal frameworks is crucial for business success;
• Compliance with EU regulations is mandatory.

Public Procurement Law in Romania: Legislative Framework

Romania’s public procurement system is based on a strong legal framework. It follows European Union standards.

The procurement laws in Romania ensure transparency and fairness in public tenders.

Core Legislative Acts and Their Scope

The legal framework for public tenders in Romania is based on three key laws from 2016:

• Law No. 98/2016 on Public Procurement;
• Law No. 99/2016 on Sectoral Procurement;
• Law No. 100/2016 on Works and Services Concessions.

These laws make up the public procurement code.

They guide various contracts and procurement procedures.

EU Directives Implementation

Romania’s procurement laws closely follow EU directives.

The 2016 laws brought new EU rules into Romanian law.

This makes it easier for companies from other countries to participate in public tenders.

Secondary and Tertiary Legislation

Secondary laws, like Government Emergency Ordinance (GEO) 45/2018, support the main laws.

This ordinance made big changes to improve how Romania uses EU funds.

It changed rules for publishing tender notices and for choosing the lowest price for big contracts.

This detailed legal structure gives a solid base for public procurement in Romania.

It promotes fair competition and the efficient use of public funds.

Fundamental Principles of Romanian Public Procurement

Romanian public procurement is based on six key principles.

These principles are crucial for fair and effective procurement.

Let’s look at how they shape procurement in Romania.

Non-discrimination ensures all economic operators have equal chances.

Equal treatment means applying the same rules to all participants.

Transparency requires open communication of procurement information.

Proportionality balances requirements with contract objectives.

Accountability holds parties responsible for their actions.

These principles guide the interpretation of laws and fill gaps where regulations are silent.

They create a framework for awarding contracts fairly and efficiently.

Romania’s commitment to these principles aligns with EU standards. It fosters a competitive and transparent procurement environment. This approach benefits both contracting authorities and economic operators.

Key Institutions and Regulatory Bodies

Romania’s public procurement system has several key bodies to ensure it’s transparent and efficient.

These groups are vital for overseeing and resolving disputes in procurement.

National Agency for Public Procurement (ANAP)

ANAP is the main authority for public procurement oversight in Romania.

It creates policies, checks for compliance, and helps contracting authorities.

ANAP also runs the electronic procurement system and does checks before procedures start.

National Council for Solving Complaints (CNSC)

The CNSC is an independent body for handling complaints in public procurement.

It offers a quick way to solve issues outside of court, ensuring fair and clear procurement.

Our team of specialized lawyers in Romania often help clients at the CNSC with procurement disputes.

Court of Accounts of Romania

The Court of Accounts Romania is the top audit body.

It audits public entities, including their procurement, to make sure they follow the law and use funds wisely.

Together, these bodies ensure Romania’s public procurement system is fair and transparent.

They make sure public funds are used correctly.

Types of Public Procurement Contracts

Romanian public procurement law covers many contracts.

These include government tenders for public contracts, utilities, works, and services.

Each type has its own rules and needs.

Government Emergency Ordinance no. 34/2006 governs these contracts.

It sets out how to award them.

This ensures fair competition and clear spending.

Utilities contracts deal with vital services like water and energy.

They have special rules because they’re so important.

Works concession contracts involve building and running public projects.

Service concession contracts let private companies offer public services.

Recently, changes have been made to public procurement.

Government Emergency Ordinance 47/2022 lets for price changes due to market shifts.

This affects areas like construction and energy.

The goal is to keep things fair in long-term projects.

It’s key for businesses to understand these contract types.

Each one has its own rules and chances.

Knowing the differences helps companies succeed in Romania’s public procurement world.

Electronic Public Procurement System (SEAP)

Romania’s e-procurement system, SEAP, changes public procurement.

It makes the process easier and more open.

SEAP is the main place for electronic tenders in Romania, linking buyers with sellers.

Platform Features and Functionality

SEAP has many features for easy procurement.

It lets users submit tenders online, get updates in real time, and share documents safely.

It also helps with evaluating bids and managing contracts, covering all public procurement needs.

Registration and Usage Requirements

To use SEAP, both buyers and sellers must sign up.

They need to fill out an online form and get a digital certificate.

This certificate lasts two years and lets users sign documents online, keeping everything secure and real.

Digital Documentation Management

SEAP is great at managing digital documents.

Users can upload, store, and share documents related to procurement safely.

It keeps a detailed archive of past tenders and contracts.

This makes finding old documents easy and cuts down on paperwork, making the process more efficient.

Contracting Authorities and Their Obligations

Contracting authorities in Romania are key in public procurement.

They include central and local authorities, public institutions, and utilities sector entities.

Their main job is to ensure fair and open purchasing.

Public bodies must follow strict rules in procurement.

They need to be transparent, fair, and follow set procedures.

Romanian law sets these rules to ensure public spending is fair.

Purchasing entities do more than just buy things.

They must estimate tender values, excluding VAT.

This change makes the procurement process clearer.

• Publish Notices of Intent, Participation, and Award.
• Treat foreign and domestic bidders equally.
• Use specific award criteria for environmentally impactful products.
• Allow flexibility in guarantee instrument selection.

Recent changes have made procurement rules stricter.

Contracting authorities must now post contract completion dates online.

They also have to send tender opening minutes to all bidders, making the process more open.

These thresholds help decide the right procurement method.

For purchases under certain amounts, direct procurement is allowed with a Grounding Note.

Procurement Procedures and Methods

Romanian public procurement law outlines various tender procedures.

The choice of procurement method depends on contract complexity, value, and market conditions.

Let’s explore the main types used in Romania.

Open Procedure

The open procedure is the most common in Romania.

It lets any interested supplier bid.

This method is used for about 75% of all contracts, promoting competition and transparency.

Restricted Procedure

In a restricted procedure, suppliers first submit qualification documents.

Only those meeting specific criteria are invited to bid.

This two-stage process helps narrow down potential contractors for complex projects.

Competitive Dialogue

Competitive dialogue is used for complex contracts.

It involves discussions with selected suppliers to develop suitable solutions before the final bidding stage.

In Romania, this method is applied in 16% of procurement cases.

Understanding these procurement methods is crucial for suppliers looking to participate in Romanian public tenders.

Each procedure has its own rules and timelines, so familiarize yourself with the specifics before bidding.

Qualification Criteria and Technical Specifications

In Romania, the rules for suppliers are key in public buying.

The country sets clear rules to make sure everyone has a fair chance.

These rules help pick the best contractors for the job.

When it comes to what’s needed, the details matter a lot.

Authorities must clearly state what they need.

This helps bidders know what to offer.

Foreign companies can join in without a local office.

This follows EU rules and brings in more competition.

To take part, you need a special digital signature and to register with SICAP.

Getting your digital certificate for SICAP is free and lasts two years.

Everyone must meet the minimum requirements.

You can’t bid if there’s a conflict of interest or if you’ve acted unprofessionally.

These rules keep the process fair and honest.

Bid Evaluation and Award Criteria

Romania’s public procurement law sets out several bid evaluation criteria.

These criteria help ensure fair competition and good value in government purchases.

Most Economically Advantageous Tender (MEAT)

The MEAT approach looks at more than just price.

It considers quality, technical merit, and environmental aspects.

This method is best for complex projects where value is more important than cost.

Lowest Price Criterion

For simple purchases, the lowest price criterion is often used.

In 2019, 70% of Romanian procurement contracts followed this method.

It’s fast and clear but might not always get the best long-term value.

Quality-Price Ratio Assessment

This method balances cost with quality.

It’s great for services or goods where performance matters a lot.

The quality-price ratio allows for a detailed evaluation of bids.

• Lowest price;
• Lowest cost;
• Best price-quality ratio;
• Best cost-quality ratio.

Contracting authorities must clearly state the chosen criteria in the tender documentation.

This makes it clear to bidders how their offers will be judged.

It promotes fair competition in the procurement process.

Green Public Procurement Requirements

Romania is now focusing on green procurement to meet EU standards.

The country wants to buy more eco-friendly products and include environmental rules in tenders.

This move shows Romania’s strong commitment to protecting the environment.

In 2013, the Ecopolis Sustainable Policies Center and the Ministry of Environment and Climate Change worked together.

They have created the Green Public Procurement Law in Romania.

A detailed study on green procurement in Romania followed in 2014, preparing the ground for future steps.

The Romanian government has big plans for buying eco-friendly products.

Right now, 20% of all public spending is on green products, worth over 20 billion lei.

This number is likely to rise as more places start buying sustainably.

Romania has made a guide to help with green procurement.

It lists the minimum standards for protecting the environment in different products and services.

This guide is a big help for those who want to include green criteria in their tenders.

Even though Romania has made good progress, there’s more to do.

The European Commission wanted 50% of public spending to be green by 2010.

But Romania and others didn’t reach this goal.

To help, Ecopolis and others held eight debates across the country.

They talked about the Green Public Procurement Law and the need for a long-term plan for green public procurement.

Remedies and Review Procedures

Romania’s public procurement system has strong review procedures and remedies.

Law no. 101/2016 guides these processes, ensuring fairness and transparency.

This law follows EU standards, giving several ways to address concerns in public procurement decisions.

Administrative Appeals

The National Council for Solving Complaints (CNSC) deals with administrative appeals in Romania.

It offers a faster and cheaper first review compared to courts.

The CNSC’s decisions can be appealed in higher courts.

Judicial Review Options

If not happy with the CNSC’s decision, parties can appeal in court.

Romanian courts carefully check procurement disputes, ensuring fairness.

This system allows for a detailed review of procurement decisions.

Suspension of Procurement Procedures

Procurement procedures can be paused during the review.

This helps protect everyone’s interests, stopping unfair contract awards while the appeal is considered.

These review procedures make sure appeals in Romania are handled well and fairly.

They offer several levels of scrutiny, keeping public contracts honest and building trust in the procurement process.

Public-Private Partnerships Framework

Romania’s PPP laws have changed to support stronger partnerships between public and private sectors.

The new rules let the public sector contribute more, making funding more flexible.

This means the Romanian government can help more with funding for local PPP projects.

Now, public-private partnerships in Romania have a more flexible setup.

The old rule that public partners could only contribute up to 25% of the costs is gone.

This change lets public bodies contribute as much as needed to make projects work.

The modernization of Timisoara Municipal Hospital is a great example of this new way of working.

This EUR 120 million PPP project shows how big private sector help can be with the right laws.

It shows Romania’s dedication to using public-private partnerships for big infrastructure upgrades.

The updated PPP rules in Romania match EU rules, showing the country’s effort to follow European standards.

This started in 2006 and is changing how concession contracts and partnerships work in Romania.

Anti-corruption Measures in Public Procurement

Romania has put in place strong anti-corruption measures in public procurement.

These steps aim to make bidding processes transparent and fair.

They also work to stop conflicts of interest and ensure public contracts are followed.

Conflict of Interest Prevention

The National Anti-Corruption Strategy (NAS) in Romania is focused on cutting down fraud and corruption in public buying.

It wants to match the EU’s standards and put in place preventive steps in more than 80% of public places.

Transparency Mechanisms

Romania has started several important projects to make bidding more open:

• Public talks with 90 groups from civil society, public bodies, and businesses.
• Regular meetings with top and local government officials.
• The NAS Technical Secretariat keeps an eye on anti-corruption work.

Compliance Requirements

Following public contracts is key to fighting corruption.

Romania has put a lot of money into this effort:

• Each public institution gets about 900,000 RON yearly for NAS work.
• 70.9 million EUR from POCA funds is used for integrity, ethics, and fighting corruption.

Special Sector Procurement Rules

Romania has special rules for public buying in different sectors.

The defense sector has its own rules, thanks to Government Emergency Ordinance no. 114/2011.

The rules for utilities and transportation also differ from the usual ones.

In 2022, Romania updated its rules for buying in special sectors.

Government Emergency Ordinance no. 26/2022 and Government Decision no. 375/2022 made big changes.

These updates help speed up projects that need to be done by 2026.

The new rules make buying easier in special sectors.

Now, candidates have 7 days to respond, with a 3-day extra time if needed.

Suppliers and subcontractors can get paid directly.

These changes aim to make things more efficient without losing fairness and openness in Romania’s public buying system.