Advantage for local bidders and goods at public tenders no longer in effect

The Stabilization and Association Agreement (SAA) envisaged that Serbia would gradually abolish each advantage given to local companies when it comes to prices over the next five years. As the SAA came into effect on September 1, 2013, the advantages given to local bidders at tenders are no longer in effect as of September 1, 2018.

The advantage given to local bidders and goods at tenders is defined in Article 86, Paragraphs 1-4 of the Law on Public Procurement Procedures, but since the Constitution proscribes that ratified international agreements are an integral part of Serbia’s law and that they are implemented directly, the advantage given by the Law on Public Procurement Procedures to local bidders and bidders from the countries within the CEFTA 2006 agreement compared to foreign bidders from EU countries is canceled, as announced on website of the Public Procurement Office.

The announcement also says that the advantage given to local bidders in public procurement procedures for works and services that offer goods of local origin is still in effect compared to bidders not from EU states, but not compared to bidders from the CEFTA countries.

When asked what the practical implications of the abolition of these advantages are, Jagoda Ratinac, the director of the consulting company Tenderi from Kragujevac, says that this will have almost no impact on local bidders and goods, as these advantages never had any true effect in practice.

– In practice, these advantages are applied very rarely, which is not surprising given that there is only one bid at most public procurement procedures – Ratinac told eKapija.

B.P.

Tenderi d.o.o. Kragujevac

Tenderi doo Kragujevac

Stabilization and Association Agreement

SAA

CEFTA

Jagoda Ratinac

public procurement procedure

tenders

public procurement procedure advantages

local bidders

local goods

Law on Public Procurement Procedures