Tender processes will be simplified next year as a result of new EU rules designed to overhaul public procurement rules, a step that was needed to reduce appeals before the Public Contracts Review Board, according to the Finance Minister.
Edward Scicluna pointed out the government, as a consumer, spent €1.6 billion, one quarter of which passed through the Contracts Department.
“Appeals can be reduced if tender procedures are clearer, if people are available to address questions, among other things.
“This is another area where bureaucracy needs to be reduced,” Prof. Scicluna said.
He therefore welcomed the new rules as well as the efficiency of the contracts review board in handling its case load. More than 57,000 appeals on awarded tenders were processed by the board last year.
The number of hearings adjudicated totalled 134, of which 102 were rejected and 32 were upheld.
The board closed the year with only six pending hearings, largely delayed because documents still need to be received.
Fourteen per cent of the appeals related to local councils, 22 per cent to the health sector and nine per cent to the education sector, according to the 2014 annual report.
The report was presented yesterday to Prof. Scicluna by the board chairman Anthony Cassar.
New EU rules state all tenders above the value of €10,000 could be subject to appeals. The current threshold is €12,000.
Training and a reorganisation of the department had already been carried out so that last year’s rhythm could be maintained, he said.
The new rules will also make it easier for small to medium-sized enterprises to apply for tenders, as the new rules are intended to increase competitiveness.
Large tenders will have to be split into separate lots so smaller enterprises can have a chance to compete.
Current EU public procurement rules will be overhauled and for the first time will set common standards to boost fair competition and ensure best value for money.
They also introduce new award criteria that place more emphasis on environmental considerations, social aspects and innovation.
The Finance Minister also referred to the Commercial Sanctions Board that will start functioning soon.
It will have the power to blacklist companies that are not meeting the right standards from applying for government contracts.
The new board’s first task will be blacklisting those companies that insist on precarious employment practices. They will be blacklisted “for a year or two” or until they implement the necessary changes.