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PUBLIC PROCUREMENT - Lexnet

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Note on The Danish System http://simap.eu.int/DA/pub/src/d005.html<br />

5. Cross-border Cases<br />

At the end of 1996, the Danish Competition Authority took the initiative to cooperate with<br />

seven other Member States and the Commission for the handling of cross-border cases.<br />

These are cases where a company wishing to participate in procedures for the award of a<br />

public contract in another country encounter obstacles due to non-compliance with the EU<br />

procurement rules. Violations may involve for example illegal use of the accelerated<br />

procedure, obscure award criteria, or the non-observance of the obligation to publish a prior<br />

call for tenders in relation to a contract where this is required etc.<br />

The Danish Competition Authority considers cases submitted by domestic companies<br />

encountering problems in other countries as well as cases filed by foreign companies<br />

encountering problems when partipating in the competition for a public contract in<br />

Denmark.<br />

The case is considered by the Authority which will swiftly examine it and try to obtain the<br />

necessary information as far as possible. When the problem has been identified, the<br />

authority resonsible for procurement matters (the "sister authority") in the country where the<br />

given procurement procedure has been contested will be contacted and the problem<br />

explained. This authority may be able to assist in solving the problem. If, however, the<br />

contract in question has already been awarded at the time where a complaint is received, the<br />

case may have to be submitted to the Commission for further action.<br />

The Danish Competition Authority has considered several cross-border cases. In some<br />

instances the claimant wanted to stop the case before final consideration, either because the<br />

company found an alternative way of obtaining the contract or because of fear of being<br />

blacklisted. Some other cases have been brought before the Commission and upon<br />

examination it was established that the procurement rules had been violated. At the time of<br />

writing, some cases are being considered by the Danish Competition Authority and its<br />

foreign counterpart.<br />

It is important that all companies in the EU receive fair and equal opportunities to<br />

participate in competitions for public contracts in the individual Member States. In practice,<br />

it is difficult to secure a cross border enforcement of the procurement rules. In particular,<br />

factual information about a specific procurement procedure in another country has proved<br />

difficult to obtain. The cooperation in the Pilot Project context may prove a good starting<br />

point for further developments in dealing with cross-border cases. This subject will be<br />

brought up for discussion later.<br />

6. Comparison of the functions of the Complaints Board and the Danish<br />

Competition Authority<br />

(a) The Complaints Board<br />

The Complaints Board is a quasi-judicial administrative body acting very much like a court<br />

of law in many respects. As will appear from the above, developments have shown that the<br />

Complaints Board primarily expresses its opinions on the legality of procurement<br />

procedures at a stage where a binding contract has already been concluded with a supplier.<br />

To sum up, the main function of the Complaints Board is the determination of the<br />

framework for interpretation and application of the EU procurement rules in Denmark.<br />

(b) The Danish Competition Authority<br />

serve as a contact point for the rapid, informal solution of problems encountered in<br />

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