Entering the New Year, Serbia has taken a step closer to the European Union and green regulations. As of January 1, 2024, the implementation of amendments to the Public Procurement Law has begun, aiming to eliminate inefficiencies of the old law and align Serbian regulations with EU environmental standards. The European Commission and Serbian non-governmental organizations played a significant role in influencing the adoption of this law.
The key changes address the following:
Environmental Protection
Introducing the principle of environmental protection as a mandatory component when determining technical specifications and criteria for selecting economic entities to whom contracts will be awarded. This shift prioritizes service quality and sustainability over price, aligning with the Green Agenda for the Western Balkans. The primary goal is to achieve cost-effective use of public funds while minimizing environmental impact.
Composition of the Public Procurement Commission
Changes in the composition of the procurement commission are introduced, specifying that when the estimated value of public procurement exceeds 3,000,000 dinars, the commission must include a procurement official. This official, in addition to having a higher education degree, is required to obtain a certificate for public procurement officials.
Registration on the Public Procurement Portal
New guidelines for the registration of economic entities on the Public Procurement Portal include additional requirements. During registration, basic information about the economic entity is provided, including details of portal users such as name, surname, unique personal identification number for citizens, or personal identification number for foreign economic entities. The registration process now also requires uploading a scanned, extracted, or photographed identification document (identity card or passport) for user account verification. Additionally, a confirmation or authorization for the user for working on the Public Procurement Portal on behalf of the registered economic entity is necessary.
Publication of Data on the Public Procurement Portal
The establishment of a database includes information about all contracts concluded after public procurement procedures, including any amendments to those contracts. The database also contains information regarding contracts/orders concluded in accordance with Article 27 of the Public Procurement Law, which specifies thresholds beyond which the provisions of this law do not apply. The aim of this initiative is to increase transparency in public procurement procedures. The Public Procurement Office will regulate the manner and types of data published on the portal, ensuring that relevant information is accessible to interested parties, thereby contributing to transparency and efficiency in procurement processes.
Additionally, the new amendments introduce the authority of the Competition Commission to access the database of the public procurement portal, which is of particular significance considering that the Commission frequently conducts proceedings against bidders participating in public procurement.
Changes in Contract Award Criteria
Significant changes are introduced concerning the award of contracts for services such as the development of computer programs, architectural, engineering, translation, and advisory services. According to the new regulations, the price cannot be used as a criterion for awarding contracts in these cases. These changes are in line with European Union directives regulating public procurement, with the main goal of improving the procurement of high-quality services, especially those dependent on the qualifications of individuals engaged in service delivery.
Oversight, Offenses, and Protection of Bidder’s Rights
Oversight of contract execution is emphasized, with the Ministry responsible for finance not only overseeing the execution of contracts but is also issuing sublegal acts to regulate the oversight process. Offenses in public procurement fall under the jurisdiction of all state bodies responsible for controlling the legality of public spending. They initiate misdemeanor proceedings when, within their competencies, they detect a violation of the public procurement law. The statute of limitations for initiating and conducting misdemeanor proceedings is three years from the date of the offense.
Legal Protection
Requests for the protection of rights are submitted electronically through the Public Procurement Portal simultaneously to both the contracting authority and the Republic Commission. The date of submission via the portal is considered the date of receipt.
Moreover, the amendments explicitly empower state bodies responsible for controlling the legality of public spending to submit requests for initiating misdemeanor proceedings when, within their competencies, they find a violation of the public procurement law.
In summary, these legislative changes mark a significant step toward aligning Serbia’s public procurement practices with EU standards and fostering a more environmentally conscious and transparent procurement process.