The negotiated procedure without prior publication (PPP) is a way of awarding public contracts in which there is no prior publication of the contract. The client solicits bids from a limited number of entrepreneurs and can negotiate the terms of the contract with them. OPZB is allowed only in certain exceptional situations, which are defined in Article 42 of the Public Procurement Law. This knowledge item provides an overview of the OPZB, its conditions of application and method of implementation.
What is the negotiated procedure without prior publication (OPZB)
The OPZB is a procurement award procedure in which the procurer solicits bids from its chosen entrepreneurs and may negotiate the terms of the contract with one or more of them2. There is no prior advertising of the contract, so competition is limited. The OPZB can only be used in well-defined strictly defined cases, listed in Article 42 of the Public Procurement Law.
When can the OPZB be used?
The OPZB can be used in the following situations:
- The estimated value of the contract is below the European threshold (for federal procurers) or 750,000 euros (for works).
- There is unforeseeable compelling urgency arising from events beyond the control of the procurer.
- No or no suitable requests for participation or bids were received in an open or restricted procedure, provided that the original terms of the contract are not materially altered.
- Only one particular contractor may be awarded, for example, for technical or artistic reasons, or for the protection of exclusive rights.
- This is a repeat contract for works or services, which consists of the repetition of similar works or services, provided this was stated in the original notice and the repetitions occur within a period of three years from the conclusion of the original contract.
- It involves a purchase on particularly favorable terms from a company that is permanently ceasing its commercial activities, or from receivers or liquidators of a bankruptcy or similar proceeding
- It is a supply contract that relates to research, experimentation, study or development, or is purchased directly on a commodity market, or is for the partial renewal or expansion of existing supplies or facilities.
- This is a contract for services that follows a contest and must be awarded to the winner or one of the winners of the contest, provided that the contest was announced and the award criteria were not changed.
How does the OPZB proceed?
- The contracting authority invites its chosen entrepreneurs to submit bids. No minimum number of entrepreneurs is required, but the contracting authority must ensure a sufficient level of competition and respect the principle of equal treatment.
- The contracting authority may negotiate with one or more of the bidders on the terms of the contract, except for the minimum requirements and award criteria. Negotiations may take place at different stages, provided this is stated in the contract documents. The contracting authority must ensure the equal treatment of tenderers and must not provide information that may distort competition.
- The contracting authority awards the contract to the tenderer offering the best value for money, based on the award criteria set out in the contract documents. The contracting authority notifies the tenderers concerned of the award decision and provides them with the necessary information on the characteristics and benefits of the successful tender.
As a company, can you spontaneously submit an offer for an OPZB?
The OPZB is a procedure in which the client chooses which entrepreneurs to invite to submit bids. There is no prior advertising of the contract, so the client does not have to take into account any spontaneous offers from other entrepreneurs. Moreover, the client can negotiate the terms of the contract with the invited entrepreneurs, which may make the spontaneous offers irrelevant. So there is no point in submitting a spontaneous bid for an OPZB if you are not invited by the client, because you have no chance of getting the contract.
As a company, how can I be invited to submit a bid for an OPZB?
There is no straightforward answer to the question of how, as a company, you can be invited to bid for an OPZB. After all, the PPP is a procedure in which the client chooses which entrepreneurs to invite, without prior publication of the contract. However, the principal must ensure a sufficient degree of competition and respect the principle of equal treatment.
One possible way to increase your chances of being invited to an OPZB is to make your company known to potential clients. For example, you can promote your services or products through your website, social media, networking events, trade shows, etc. You can also contact clients that interest you and inform them about your offerings and expertise. You can also submit references or testimonials from previous assignments you have completed.
Keep in mind, however, that the principal is not obliged to take your spontaneous candidacy into account. The principal has complete freedom to decide whom to invite to an OPZB, as long as it complies with public procurement legislation. So there is no point in submitting a bid for an OPZB if you have not been invited by the client, because you have no chance of getting the contract.
TenderWolf can help you make your company known to the relevant clients who often work with negotiated contracts in your domain. Contact us to get more info on this.
