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COVID-19 – Exceptional Measures for Public Procurement and Expenditure Authorization
Decree-Law No. 10-A/2020 of March 13 and Law No. 1-A/2020 of March 20 approved exceptional and temporary public procurement and expenditure authorization measures in response to the epidemiological situation caused by the SARS -CoV-2 coronavirus and COVID-19 disease. They are:
I. Rules applicable to the conclusion of public works contracts, contracts for the lease or purchase of movable assets and the purchase of services, regardless of the nature of the contracting entity, provided that they are part of the corporate public sector, administrative public sector or, with the necessary adaptations, local authorities, whose purpose is related to the prevention, containment, mitigation and treatment of epidemiological infection by COVID-19, as well as to the restoration of normality following the same (AND THESE ONLY):
1. Exceptional public procurement regime
- The substantive criterion for the choice of the direct adjustment procedure as laid down in Article 24(1)(c) of the PPC shall apply (“matter of extreme urgency“), without the need to justify the non-adoption of the prior consultation procedure as laid down in Article 27a of the PPC.
- The limit of application of the “simplified private treaty” (Articles 128 and 129 of the PPC) is increased from € 5,000.00 to € 20,000.00.
- The limitations provided for in Article 113(2) to (5) of the PPC on entities invited to submit a proposal in the procedures for prior consultation or private treaty shall not apply.
- The Awards of Tender are communicated by the contracting authorities to the members of the Government responsible for the area of finance and the respective sector and published on the public procurement portal.
- The publication, on the public contracts portal, of the conclusion of any contracts following a private treaty, as provided for in Article 127 of the PPC, although mandatory, is not a condition for the effectiveness of the respective contract, which may produce all its effects immediately after the award of tender.
- Advance payments of the price, waiving the assumptions provided for in Article 292 of the PPC, shall be allowed, if it is a question of ensuring that the economic operator makes the goods and services available, and the acts and contracts arising therefrom may produce all their effects immediately.
- The exception for centralised procurement of goods or services covered by a framework agreement for entities covered by the National Public Procurement System is exempt from prior authorisation.
- Without prejudice to the concomitant and successive supervision regimes provided for in Law 98/97 of 26 August, these contracts shall be exempt from prior inspection by the Court of Auditors, and shall be remitted to the Court of Auditors, for information, no later than 30 days after their execution.
2. Exceptional expenditure commitment regime
- The following are considered tacitly approved:
– The requests for authorization from the financial and sectorial supervisor, when required by law, in the absence of a decision, after 24 hours after the referral, by electronic means, to the respective public entity with competence to authorize them;
– Multi-annual expenses resulting from the acquisition of goods and services whose list shall be approved by order of the Government members responsible for the area of finance and the respective sector of activity, if, after submission of the request for authorization through an ordinance of extension of charges to the Government member responsible for the area of finance, it is not rejected within three days, with the normal publication procedures being incumbent upon the Government member responsible for the sector;
– In duly justified cases, when it is necessary to release funds in order to comply with the objectives established in Decree-Law No. 10-A/2020, of March 13, after three days since the submission of the respective request.
- Budgetary changes that involve reinforcement, in exchange for other actual expenditure items, are authorised by the member of the Government responsible for the respective sector area.
3. Exceptional administrative authorisation regimes
- The decision to retain the services whose purpose is to carry out studies, opinions, projects and consulting services, as well as any specialized work, does not require the administrative authorizations provided by law, and is the responsibility of the Government member responsible for the sector area.
II. Rules applicable to the conclusion of any contracts entered into by bodies, agencies, services and other entities, including the corporate public sector, the Ministry of Health, DGRSP, INMLCF, I.P., HFAR, LMPQF and IASFA, I.P:
- Without prejudice to the concomitant and successive supervision regimes provided for in Law 98/97 of 26 August, these contracts shall be exempt from prior inspection by the Court of Auditors, and shall be remitted to the Court of Auditors, for information, no later than 30 days after their execution.
Jane Kirkby, lawyer and partner at BAS
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