The Government has submitted a draft of a new Act on Public Contracts as Parliamentary Bulletin No. 637, which is presently in its second reading in the Chamber of Deputies.

The law proposes that Acts Nos. 137/2006 Coll. on public contracts and 139/2006 Coll. on concession contracts and procedures (the Concession Act) be repealed. According to the explanatory memorandum, this new law should harmonize Czech and EU legislation governing public contracts. It has also been formulated to establish clear anti- corruption rules, guarantee judicious use of  public funds, enable speedy implementation of vital public projects and provide for fair competition among vendors. No less importantly, it should reduce the administrative work associated with the public procurement process while ensuring the process remains sufficiently transparent.

Among other new items, the bill introduces:

  • a simplified below-threshold procedure that should be a truly simple, administratively undemanding and quick procedure which is, at the same time, sufficiently transparent, thus guaranteeing fair competition.
  • a wider range of possible reasons for excluding a vendor from a procurement procedure, e.g. if, in the last 3 years, a procurement procedure participant engaged in serious professional misconduct that undermines its credibility.
  • under a new directive, another type of procurement procedure,
  • i.e. the innovation partnership procedure designed to develop an innovative product, service or building work, which is new to the market.

In compliance with EU legislation, the new law will not apply to all public procurements. Under the new law, services pertaining, inter alia, to legal representation of a client by an attorney and to legal advisory should not be subject to public procurement.

The main part of this law shall enter into force on the first day of the third calendar month after its promulgation.