Qualification Requirements for Suppliers and Some Problematic Aspects of Their Determination

Eglė Sakalauskaitė

Abstract


The research carried out by the author of the article in 2011, showed that in cases of simplified procurement procedures most claims, which are received by purchasing organization from the contestants, are related to the qualification requirements for suppliers and their evaluation. A considerable part of claims received from the contestants of international procurements are also related to the qualification requirements of suppliers and their evaluation. Failing to analyse claims properly, many issues both for courts and purchasing organizations arise.
This article is intended to analyse the problematic aspects of the determination of qualification requirements for suppliers and of the qualification of procurement conditions.
The attention is focused on the description of suppliers‘ qualification and the discussion of some problematic aspects of requirements determination.
Article 32 of Law on Public Procurement provides that the purchasing organization has to find out whether the supplier is competent, reliable and able to meet the purchase conditions, therefore, it has the right to determine minimal qualification requirements (the right to engage in a relevant activity in financial, economic and technical capacity) for candidates or participants in the notification on purchase and other purchase documents or requirements for the candidates or participants to submit the information indicated in purchase documents as well as documents proving qualification. It is impossible to determine the requirements which would be surplus for purchasing organization seeking to ascertain whether the supplier is reliable and able to meet the conditions of prospective purchase. Therefore, Article 32 of Law on Public Procurement consolidates the concept of „minimal qualification requirements for suppliers“, which implies the obligation for purchasing organizations to consider the above mentioned balance between objectives and measures. It is essential that the qualification requirements did not limit competition artificially and did not contradict basic principles of public procurement. It is also important that both the requirements which are proportionate to purchase object and those which are important for the implementation of specific purchase contract were substantiated. Thus relevant qualification requirements (e.g. certain turnover, value of executed contracts etc.) have to be correlated to the object of purchase and be proportional to it. For instance, it is disproportionate to require the turnover which is bigger than the object of purchase several times or it implements the contract of purchase that exceeds the price of the object of purchase. Without ensuring a certain balance between objectives and measures during the evaluation of suppliers’ qualification some potential participants may be unreasonably eliminated and thus the compliance with the basic principles of public procurement is not ensured and the objective is not reached.
In determining the requirements, the purchasing organization has to evaluate objectively the situation in the market as well as to determine the requirements which would ensure honest competition, provide an opportunity for purchasing organization to reach the desired result and allow the rational use of procurement funds. All restrictions in participation in public procurement should satisfy the criteria of such restriction expediency and validity.

Keywords


public procurement; supplier’s qualification; qualification selection; supplier; conditions of procurement

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"Societal studies" ISSN online 2029-2244 / ISSN print 2029-2236