Introduction into to public procurement

Introduction to public procurement

Public procurement is a contract based on a contract between the contract owner and one or more suppliers. The business of a public procurement can be the purchase of goods, a work assignment, a work order or service.

The contract owner of a public procurement

If the contract owner decides to call for a tender, he should follow the particular steps of the process of public procurement as established by Act no. 137/2006 Coll. on Public Procurement, as amended.

Act no. 137/2006 Coll. on Public Procurement considers the contract owner of a public procurement a public, a sectoral or a subsidized contract owner. Applications from private companies or natural persons are defined by law as subsidized owners if they assign procurement that is reimbursed by 50% from public sources.

According to law, public entities, such as the Czech Republic, state organizations and other legal and public entities with the purpose of meeting the needs of the public sector, are assigned into the category of public contract owners.

Publication of public procurement

It is necessary to choose the appropriate publication for when the public procurement is assigned. Public procurement must be made public at places accessible to the public. Such places include the portal of the Procurement Bulletin, the web page of the contract owner, and possibly The Official Journal of the EU.

The choice of a supplier

The choice of a supplier of public procurement takes place during the so-called procurement process (legal term used for a tender). Public procurement is assigned through several procurement procedures, which are defined in § 21 of Act no. 137/2006 Coll. on Public Procurement.