Control procedures in the area of public procurement in the process of ensuring the financial security of European Union funds

Abstract

The system of public procurement, as well as the supervision and control of the applicable procedures, is set out in the Act of 11 September 2019. Public Procurement Law (hereinafter the Public Procurement Law).

A beneficiary (unit of the public finance sector, private entity) implementing a project co-financed from EU funds uses public funding and is therefore obliged to observe the principles of fair competition and equal treatment of contractors. If it obtains the status of a contracting authority, it is obliged to apply the Public Procurement Law. The obligations of a private entity that does not have the status of a contracting authority within the meaning of the Public Procurement Law are set out in the Guidelines on the eligibility of expenditure under the European Regional Development Fund, the European Social Fund and the Cohesion Fund for 2021-2027.

These obligations depend on the value of the contract to be awarded. The provisions of the Public Procurement Law specify that a simplified market research procedure applies to public contracts co-financed from EU funds in the amount of PLN 20,000 to 50,000 net. In the case of expenditures from PLN 20 thousand net to PLN 50 thousand net inclusive, i.e. without the value added tax (VAT), beneficiaries are obliged to carry out market research and publish an enquiry on their website or another generally available website intended for publishing enquiries.

The aim of the market inquiry is to confirm that a given service, supply or construction work was provided at a price not higher than the market price. In order to document that this condition is met, the beneficiary should present a printout of the request for quotation made in the aforementioned manner together with the tenders received or a confirmation that the request for quotation was sent to at least three potential contractors, provided that there are at least three potential contractors for the given contract on the market, together with the tenders received. In the case of contracts to which the market inquiry procedure applies, it is not required to conclude a written agreement with the contractor. It is sufficient to confirm that the expenditure was incurred on the basis of an invoice, bill or other accounting document of equivalent probative value. In the case of public procurement above PLN 50,000 net, the principle of competitiveness shall apply. In the case of expenditure whose value exceeds PLN 50,000 net, beneficiaries who are not obliged to apply the provisions of the Public Procurement Law must carry out the procedure in accordance with the principle of competitiveness.