Are you a bidder whose intention is to participate in a public contract under the Czech law? Read this article about the basic conditions in order to be able to submit an offer in the procurement procedure realized by the Czech contracting authority.
Czech public procurement law allows participation of foreign bidders. However, it is necessary for these foreign entities to meet certain specific conditions in order to be able to participate in the procurement process, or to be successful and enter into a contract with the contracting authority. Below we list some areas in which the participation of a foreign bidder is different from the participation of Czech bidders and therefore it is necessary to prepare for them.
Tender language and translation
The contracting authority is obliged to determine the language of the procurement procedure, which is then also binding for the method of creating bids. In the Czech Republic, the most common languages used in procurement procedures are Czech and Slovak.
For this reason, it is therefore necessary for foreign bidders to submit their bid also in a Czech language translation. It can be a simple translation, however, if the contracting authority has doubts about the translation, it can request the submission of an officially certified translation of the document by an translator registered in the list of translators in the Czech Republic.
Origin of the required documents
As part of the tender conditions, the contracting authority sets the requirements for the submission of specific documents that the bidders must submit in order to meet the tender qualifications. In the case of foreign bidders, similar documents are submitted according to the legal order of the country of the bidder’s seat. However, the issuance of some documents must be requested directly from the Czech authorities (specifically, a confirmation of debt-free status from the tax office and the social security administration). The Public Procurement Act or contracting authorities also sometimes allow documents to be replaced by an affidavit.
Qualification obtained abroad
In the event that the tender qualification was obtained abroad, documents issued in accordance with the legal system of the country in which it was obtained shall be proven, to the extent required by the contracting authority. If these documents are not issued according to the legal order of the country in which they were obtained, they can be replaced by a written sworn statement.
Registration on the contracting authority’s profile
Foreign bidders, like other bidders, must register in the relevant electronic tool, which represents the electronic profile of the contracting authority. Through the contracting authority’s profile, the bidder can submit an encrypted bid. Registration usually takes several working days and should therefore be started well in advance of the deadline for submission of bids.
List of Approved Economic Operators
If a foreign supplier participates in Czech procurement procedures more often, it can be entered in the List of Approved Economic Operatorsmaintained by the Ministry for Regional Development. The List of Approved Economic Operators significantly simplifies proving tender qualifications in the public procurement process. It is then sufficient for the bidder to submit only an extract from the List of Approved Economic Operators, which is valid for one year with the option of renewing it for another year.
List of beneficial owners
The Public Procurement Act also requires the identification of the beneficial owners of the selected bidder. The bidder is then invited to submit an extract from a foreign register similar to the register of beneficial owners or, if there is no such register, to communicate the identification data of all persons who are its beneficial owners, and to submit documents that show the relationship of all persons who are beneficial owners.
A foreign supplier that is a joint stock company
The contracting authority has to ask the selected bidder based abroad, which is a joint-stock company or has a legal form similar to a joint-stock company, to submit a written sworn statement within a reasonable period of time as to which persons are the owners of shares, the aggregate nominal value of which exceeds 10% of the share capital of the contracting party procedure, indicating the source from which the data on the size of the shareholders’ share is based.
Conclusion
The participation of a foreign bidder in the public procurement procedure brings certain specifics in the Czech Republic. Our law firm, which specializes in representing foreign bidders in Czech procurement procedures on the basis of a power of attorney, will therefore guide the foreign bidder through the procurement procedure and assist until its successful conclusion. We provide translations of documents, contact with Czech authorities and issuance of Czech documents for foreign bidders, communication with Czech contracting authorities, preparation of bids from foreign bidders, registration on the profiles of contracting authorities and other specific actions related to the participation of a foreign entity in Czech public tenders.
