Changes in Public Procurement Rules in Slovakia
In June 2024, the National Council of the Slovak Republic approved an amendment to the Public Procurement Act, introducing several significant changes aimed at streamlining administrative processes and reducing their complexity. The amendment took effect on August 1, 2024.
Exemptions for Selected Below-Threshold Contracts
A new exemption has been introduced, under which the provisions of the Public Procurement Act do not apply. This exemption covers below-threshold contracts for the supply of food products where the recipient is a school catering facility, a dedicated facility of a university providing catering services, or a provider of social services (whether a higher territorial unit, municipality, or social service provider) supplying food as part of social service provision.
Increase in the Threshold for Small-Scale Contracts
A major change is the increase in the financial threshold for contracts that do not fall under the Public Procurement Act (so-called small-scale contracts). The financial limit has been raised from EUR 10,000 to EUR 50,000.
This means that for contracts of such small value, regardless of their subject matter, contracting authorities are not required to follow the provisions of the Public Procurement Act. Contracting authorities can effectively select a specific supplier at their discretion.
Unification of Rules for Below-Threshold Contracts
The previous legislation distinguished between three categories of contracts: low-value contracts, below-threshold contracts, and above-threshold contracts.
The term low-value contract has been completely removed. The current Public Procurement Act now recognizes only below-threshold and above-threshold contracts.
However, contracting authorities must still adhere to the principles of efficiency, proportionality, equal treatment, non-discrimination of economic operators, and transparency while properly documenting the entire procurement process.
Awarding Below-Threshold Contracts
For below-threshold contracts (i.e., those with an estimated value of EUR 50,000 or more), two basic procedures apply – selection of the successful bidder without publishing a call for tenders, or selection of the successful bidder with a published call for tenders.
Procedure Without Publishing a Call for Tenders
If a contracting authority opts for this procedure, it must invite at least three economic operators to submit bids. These operators must be authorized to supply the goods, provide the services, or perform the construction works subject to the contract, and they must not be subject to exclusion by the Public Procurement Office. The invitation is sent using a designated electronic platform.
The contracting authority must ensure that the costs incurred for the contract are reasonable. Additionally, the contracting authority must publish a contract report within 10 days of registering the signed contract in the Central Register of Contracts.
This does not preclude the voluntary use of the standard procedure, where the contracting authority may opt to publish a call for tenders via the designated electronic platform for an unspecified group of economic operators.
Procedure With a Published Call for Tenders
The contracting authority may also voluntarily choose to issue a public call for tenders for below-threshold contracts via the designated electronic platform.
The amendment has modified the rules for awarding below-threshold contracts for commonly available goods or services, requiring the use of the simplified procedure for commonly available goods and services, as previously provided in the Public Procurement Act.
A special provision applies to below-threshold contracts for construction works where the estimated contract value is EUR 800,000 or higher. In such cases, the contracting authority must issue a call for tenders to an unspecified group of economic operators (i.e., it must opt for the procedure with a published call for tenders).
Restrictions on Filing Objections
The amendment also introduced restrictions on the ability of bidders or applicants, whose rights or legally protected interests may have been affected during the procurement process, to file objections. Under the Public Procurement Act, objections cannot be filed in the following cases:
(a) Awarding below-threshold contracts for the supply of goods or provision of services, or in below-threshold concession procedures;
(b) Awarding below-threshold contracts for construction works where the estimated contract value is EUR 1,500,000 or lower;
(c) Awarding contracts in the defense and security sector where the estimated contract value is below the financial threshold (specifically EUR 300,000 for contracts concerning the supply of goods or services, and EUR 800,000 for contracts concerning the execution of construction works).
Reduction in Penalty Amounts
A significant change has been made to the penalties for violations of the Public Procurement Act, reducing fines to a range of 0.1% to 5% of the contract value.
This penalty range allows authorities to take into account the specific circumstances of each case and impose sanctions proportionate to the actual breach, its severity, and any mitigating or aggravating factors. The competent authority must consider all relevant circumstances when determining the fine.
Abolition of the Request for Remedy Mechanism
The request for remedy has been entirely removed from the Public Procurement Act without replacement, as it is not required by EU regulations.
However, bidders in public procurement procedures may still submit inquiries to contracting authorities in the form of requests for clarification.