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Public service contracts

To coordinate procedures for the award of public service contracts in so far as such procurement is not already covered by procedures for the award of public works contracts and public supply contracts.

Council Directive 92/50/EEC of 18 June 1992 relating to the coordination of procedures for the award of public service contracts.

Amended by the following measures:

Council Directive 93/36/EEC of 14 June 1993;
Council Directive 97/52/EC of 13 October 1997.

1. The Directive defines the terms "public service contracts", "contracting authorities", "service provider", "open procedures", "restricted procedures", "negotiated procedures" and "design contests".

2. The Directive applies to public service contracts the estimated value of which is not less than ECU 200 000, net of VAT, including the estimated total remuneration of the service provider. It covers contracts for services and goods or supplies together if the value of the services exceeds that of the goods or the supplies.

The Directive does not apply to:

public contracts governed by certain international agreements or to be awarded under the specific procedure of an international organization;
services which are declared secret or the execution of which must be accompanied by special security measures;
public service contracts awarded on the basis of an exclusive right enjoyed under national provisions compatible with the Treaty.
3. The Directive provides for two-tier application: full application for the "priority" services listed in annex IA, and minimum requirements for the "other" services listed in annex IB.

4. For all services:

contracting authorities must define technical specifications by reference to national standards implementing European standards, to European technical approvals or to common technical specifications, subject to a number of exceptions set out in the Directive;
a notice of the results of the award procedure is to be sent to the Official Publications Office of the European Communities.
5. For "priority" services, listed in Annex IA, the following additional rules also apply:

Choice of award procedures and rules governing design contests: as a general rule, contracting authorities are to follow an open procedure or a restricted procedure. Open procedures are national procedures whereby any interested service provider may submit a tender. Restricted procedures are national procedures whereby only those invited by the contracting authority may submit a tender. By way of exception, contracting authorities may, in certain cases listed in the Directive, follow a negotiated procedure, whereby they consult service providers of their choice and negotiate the terms of a contract with one or more of them. A contracting authority may also decide to organize a design contest. The jury must be composed exclusively of natural persons who are independent of participants in the contest;
Common advertising rules: contracting authorities are to make known the contracts they propose to award, by whatever procedure, by means of a notice. These notices are to be drawn up in accordance with models and are subject to deadlines laid down by the Directive. Urgent cases are also accommodated;
Common rules on participation and the award of contracts: the Directive lays down common rules on participation and provides that contracts are to be awarded on the basis of stated criteria. Various criteria relating to the contract are possible, such as quality, technical merit, aesthetic and functional characteristics, price, etc., or the sole criterion of lowest price may apply;
Criteria for qualitative selection: the contracting authority may exclude any service provider who is bankrupt or being wound up, whose affairs are being administered by the court, who has entered into an arrangement with creditors, etc.
6. The Directive amends Directive 89/665/EEC in that it extends the scope of the latter to cover the services governed by it.

Directive 92/50/EEC: 01.07.1993
Directive 93/36/EEC: 14.06.1994
Directive 97/52/EEC: 13.10.1998
5) DATE OF ENTRY INTO FORCE (if different from the above)
Directive 92/50/EEC: 13.08.1992
Directive 93/36/EEC: 05.07.1993
Directive 97/52/EC: 18.10.1997
Official Journal L 209, 24.07.1992
Official Journal L 199, 09.08.1993
Official Journal L 328, 28.11.1997

On 10 May 1993 the Council adopted Decision 93/323/EEC concerning the conclusion of an Agreement in the form of a Memorandum of Understanding between the European Economic Community and the United States of America on government procurement (Official Journal L 125, 20.05.1993).
This Agreement is designed to open up to tenderers in signatory states supply, works and service contracts awarded by central governments. It also provides for the elimination of discrimination in respect of purchases made by entities in the electrical power sector.

This Directive will be replaced by the directive of the European Parliament and the Council on the coordination of procedures for the award of public supply contracts, public service contracts and public works contracts, the proposal of which was sent to the Council and the Parliament on 12 July 2000 (Doc COM(2000)275 - Not yet published).

Recommendation 96/527/EC - Official Journal L 222, 03.09.1996
Commission Recommendation of 30 July 1996 on the use of the Common Procurement Vocabulary (CPV) for describing the subject matter of public contracts.
It is recommended that contracting authorities and entities use the CPV, a version of which is published in the Supplement to the Official Journal and which will be regularly updated, to describe the nature and scale of their public contracts in the notices they submit to the Office for Official Publications of the European Communities.





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