The Court clarified in the public procurement case that a tender with a negative value shall not, in its own right, be considered as illegal
Attorney-at-law of Vilnius law firm SPES succeeded in convincing the court that the Central Procurement Organisation implemented legal and transparent public procurement procedures, which resulted in contract being awarded to the supplier offering a negative price for telecommunication services.
The court hearing the case held that tenders containing negative (minus) value shall not, in their own right, be regarded as abnormally low tenders. It is up to the contracting authority to decide whether, in light of the specific nature of the services being procured, the offered price looks as abnormally low and whether a justification thereof shall be required. The fact of a negative tender value itself does not prove that the supplier will be unable to perform a public procurement contract.
In the dispute at hand the court also clarified the meaning of a preliminary agreement in public procurement to the effect that a preliminary agreement in public procurement is not a type of procurement, but rather a separate procurement procedure, an organisational instrument, allowing to minimise the administrative burden of procuring entities. According to the court, a supplier which is a party to a preliminary agreement, at the point of execution thereof only becomes entitled to compete for the right and obligation to perform an order placed by the procuring entity under a preliminary agreement once a renewed competitive procedure among the suppliers is launched, but no exclusive rights to perform orders placed by a contracting authority are provided during the validity of a preliminary agreement.
Reorganisation process successfully finalised
The reorganisation process of two clients of the law firm SPES, two private limited liability companies, has been successfully finalised. As a result of the reorganisation, one legal entity was merged with the other company, the latter taking over all rights and obligations of the legal entity under reorganisation. Lawyers of the law firm were involved in drafting the terms and conditions of the reorganisation, resolutions by managing bodies, as well as other documents necessary in the process of reorganisation, and provided legal advice throughout the reorganisation process. The reorganised company is successfully continuing its business.
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