Legislative framework of in-house procurement

Anatolijs Krivins,U Berkis,L Vilka

doi:10.1051/shsconf/20196801026

Abstract

The article “Legislative Framework of In-house Procurement” examines the importance of the concept of the in-house transactions in Public Procurement. The purpose of the work is to analyse the Legislative Framework from the perspective of the principle of free competition. The study of free competition is based on works and the main ideas of the following authors: Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Robert Malthus, John Stuart Mill, John Maynard Keynes, Friedrich August von Hayek and Milton Friedman. Having done the analysis of the EU directives and regulations concerning In-house Procurement (Directive 2014/24/EU; Directive 2014/25/EU; Directive 2013/34/EU; Case C-107/98, Case C-26/03, Case C-84/03, Case C-295/05, Case C-480/06, Case C-324/07, Case C-573/07, Case C-196/08, Case C182/11 and C183/11), as well as normative regulations of several countries, the author made a conclusion, that In-house Procurement contains considerable threats to the principle of free competition in Public Procurement. In-house Procurement contains considerable threats to the principle of free competition in Public Procurement. The data obtained confirm this hypothesis. The results obtained allow us to develop recommendations for the Legislative Framework of In-house Procurement. The results of the research can be used by procurement theoreticians and practitioners.

Highlights

The aim of this research is to analyse the Legislative Framework from the perspective of the principle of free competition.The main pillar of the in-house doctrine is the Treaty on the Functioning of the European Union [1] – Article 345
The Polish Constitutional Tribunal pointed out that the possibility of introducing in-house contracts envisaged by EU law does not prevent the national legislator from putting in place tendering procedures in order to select economic operators to perform specified public tasks [3]
There is considerable legal uncertainty as to how far contracts concluded between entities in the public sector should be covered by public procurement rules

Summary

Introduction

The aim of this research is to analyse the Legislative Framework from the perspective of the principle of free competition.The main pillar of the in-house doctrine is the Treaty on the Functioning of the European Union [1] – Article 345 Based on the admissibility of the application of the in-house exception, national courts of the EU member countries emphasize rather wide exception limits. The Polish Constitutional Tribunal pointed out that the possibility of introducing in-house contracts envisaged by EU law does not prevent the national legislator from putting in place tendering procedures in order to select economic operators to perform specified public tasks [3]. The task of research is to analyze the concept of the in-house transactions in Public Procurement. The object of research is a Legislative Framework of In-house Procurement

Objectives

Results

Conclusion