French Government Publishes Decree on Exemption Threshold for Prior Advertising and Competition for Public Works Contracts
December 30, 2024
On December 30, 2024, the French Ministry of Economy, Finance, and Recovery published a decree establishing a new threshold for the exemption of prior advertising and competitive bidding for public works contracts. The decree aims to simplify and streamline the procurement process for smaller contracts.
Key Provisions
- The exemption threshold has been raised from €221,000 (excluding VAT) to €400,000 (excluding VAT) for public works contracts.
- Contracts below this threshold can now be awarded without the need for prior publication of a notice or a competitive bidding process.
- This exemption applies to all public works contracts, regardless of the contracting authority (state, local authorities, or public institutions).
Benefits of the New Threshold
The government believes that the new threshold will:
- Reduce administrative burdens for public authorities and businesses in carrying out public works projects.
- Facilitate access to public contracts for smaller companies and entrepreneurs.
- Encourage innovation and local sourcing by allowing contractors to more easily participate in small-scale projects.
Exceptions to the Exemption
The exemption does not apply to the following types of contracts:
- Contracts for architectural, engineering, or urban planning services.
- Contracts for the supply of equipment or materials.
- Contracts subject to the European public procurement directive.
- Contracts awarded by certain specific public authorities, such as the State or the European Union.
Additional Measures
In addition to the new exemption threshold, the decree also includes provisions to promote fairness and transparency in the procurement process. These measures include:
- Strengthening the role of the contracting authority’s procurement department in the award of contracts.
- Requiring contractors to declare any conflicts of interest.
- Providing a mechanism for contractors to challenge the award of contracts.
Implementation
The new decree will enter into force on January 1, 2025. It is expected to have a significant impact on the procurement of public works projects in France.
Publication du décret relatif au seuil de dispense de publicité et de mise en concurrence préalables pour les marchés de travaux
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