tag:blogger.com,1999:blog-6406430766424642773.post453182027741131622..comments2023-09-28T12:28:57.598+03:00Comments on Grahnlaw: EU procurement: Threshold amounts for public contractsRalf Grahn http://www.blogger.com/profile/02156293782163802007noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6406430766424642773.post-6860168181710711232009-03-24T12:26:00.000+02:002009-03-24T12:26:00.000+02:00Nowtas and Grahnlaw - very interested to read your...Nowtas and Grahnlaw - very interested to read your exchange as same issue has just arisen. I agree that threshold in sterling is set for 2 years at the amount publised in OJEU. However this appears to be contradicted by EU guidance on ERDF Interreg IV which says:<BR/><BR/>"the sterling equivalent is also indicated but based on an assumed average rate. This is only set as a guide and the exchange rate prevalent at the date on which the tender is advertised should be used to calculate the correct sterling equivalent.."<BR/><BR/>The UK Public Contract Regulations 2006 are very clear though (8)(6) that the value in pounds sterling is calcuated by reference to the rate from time being applied for these purposes and published from time to time in the OJEU.<BR/><BR/>It seems upto the Commission to publish rates more frequently if exhange rates are wildly fluctuating.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6406430766424642773.post-4284551201550830572009-01-29T12:13:00.000+02:002009-01-29T12:13:00.000+02:00Nowtas, On the contrary, the question is fascinati...Nowtas, <BR/><BR/>On the contrary, the question is fascinating. <BR/><BR/>There are many, more or less relevant issues. Here are some of the thoughts I had as a result of reading your comment. <BR/><BR/>Legal rules are often fairly rough and ready, because some order is better than none. The thresholds belong to this group (as do speed limits and many other limits or amounts). <BR/><BR/>The EU thresholds are an imperfect expression of the Special Drawing Rights (SDRs) referred to in the WTO GPA, but it is much more user friendly to express the thresholds in euros (and revise them every two years).<BR/><BR/>The values in other currencies is a consequence of there being member states which have not yet qualified for the common currency and the UK which has opted out. <BR/><BR/>But procurement procedures and execution of for instance building contracts are lengthy affairs. Wouldn't continuous tinkering with the thresholds cause more disturbances than joy? <BR/><BR/>(The really important issues have to do with how the parties protect themselves against currency risks.) <BR/><BR/>Nothing prevents a contracting authority from publishing tender notices even if the presumed contract value is below the threshold.Ralf Grahn https://www.blogger.com/profile/02156293782163802007noreply@blogger.comtag:blogger.com,1999:blog-6406430766424642773.post-69664653249515115332009-01-29T11:24:00.000+02:002009-01-29T11:24:00.000+02:00GrahnlawThe GBP versions of the thresholds remain ...Grahnlaw<BR/><BR/>The GBP versions of the thresholds remain the same for the two years, despite exchange rate changes – I have checked. I still think this should not be the case when the value in exchange has fallen so much, but the fact remains that what would be the cost of such a procurement within the UK would still be the same corresponding level of value, so the exchange rate changes do not impact on the “familiar” cost. <BR/><BR/>Of course, this all leads to very different price offers from prospective suppliers working under the Euro, and this in turn suggests the competiveness has changed. This is precisely what the EU regulations should be preventing, but cannot if the UK does not trade in Euros and the exchange rate is not reapplied during the two years between reviews of thresholds. <BR/><BR/>Despite the change, I suppose it could be argued that the majority of tendering activities that would have been required a year ago would still be required now – and international offers for services, for example, would still be over the threshold.<BR/><BR/>I do find this an interesting issue, which must make me quite disturbingly boring.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6406430766424642773.post-65297986815460390422009-01-27T18:34:00.000+02:002009-01-27T18:34:00.000+02:00Nowtas, The exchange rates have been fluctuating a...Nowtas, <BR/><BR/>The exchange rates have been fluctuating a lot lately, but I imagine that the British thresholds in pounds have not changed after the beginning of 2008. <BR/><BR/>As far as I remember, the procurement thresholds are set for two years.Ralf Grahn https://www.blogger.com/profile/02156293782163802007noreply@blogger.comtag:blogger.com,1999:blog-6406430766424642773.post-10410831848678642682009-01-27T16:34:00.000+02:002009-01-27T16:34:00.000+02:00Interesting one this - in the UK we obviously have...Interesting one this - in the UK we obviously have the thresholds as being in pounds, at the exchange rate against the Euro. What happens when these change as significantly as has been the case during the last year? I believe the threshold would be the current excahnge rate calculation, not that from 01/01/08. However, it would appear no-one recalculates it here, so the thresholds as GBP remain the same in the UK.Anonymousnoreply@blogger.com