Tender for public sector contracts in Northern Ireland

The way in which Northern Ireland public sector contracts, over certain values, are awarded is governed by EU-wide rules.

EU regulations

In general terms, public sector organisations must tender contracts for products or services over £111,676 and for works over £4,322,012. However, there are higher thresholds for some government bodies.

Set procedures

Contracts over the thresholds can only be awarded by using one of four set procedures.

The four different set procedures

Open procedure

With the open procedure, a contract is advertised and all interested parties are asked to return tenders by a set date. District councils often use this procedure.

Restricted procedure

The restricted procedure is a two-stage process. At the first stage the contract is advertised in the Official Journal of the European Communities (OJEC) and interested suppliers are asked to express an interest in the contract. The public sector body then shortlists successful parties to submit tenders.

Competitive dialogue procedure

The competitive dialogue procedure allows the buying organisation to enter negotiation with bidders following advertising their requirements in the OJEC and carrying out a selection process. Buyers use this procedure to define the details of their requirements.

Negotiated procedure

The negotiated procedure is also a two-stage process but can only be used in very limited circumstances. At the second stage the public sector body can enter contract negotiations with one or more suppliers.

Special rules

There are also a number of special rules for EU public sector procurement. These cover areas such as centralised purchasing bodies, electronic systems for regularly purchased items and special contract rules for businesses where more than half of the workforce comprises people with disabilities.