Higher limits, greater flexibility 

The key change is the increase in threshold values within which contracts can be executed in a ‎simplified manner without the need for formal procurement procedures according to the Public ‎Procurement Act. These are so-called small-scale contracts (VZMR), whose limits are increased as follows:‎ 

• Supplies and services: from the current 2 million CZK to 3 million CZK without VAT‎ 

• Construction work: from the current 6 million CZK to 9 million CZK without VAT‎ 

This amendment reflects the current market price trends and offers public contracting authorities ‎increased flexibility in the awarding of small public contracts. ‎ 

What does this mean in practice?‎ 

Procurers following the Public Procurement Act no longer need to conduct classical procurement ‎procedures for contracts with a presumed value up to the newly established VZMR limits. It is only ‎necessary to adhere to the principles according to Section 6 paragraphs 1 to 3 of the Public ‎Procurement Act, i.e., the principles of transparency, proportionality, equal treatment, and ‎prohibition of discrimination. This can be achieved through direct assignment or a closed invitation ‎involving a selected circle of specific suppliers. Practically, this means a wider range of contracts ‎can be awarded outside formal procurement processes, thereby simplifying and speeding up the ‎entire process.‎ 

The changes are also reflected in the rules of public support providers and will therefore also affect a ‎circle of procurers outside the Public Procurement Act regime. The Ministry of Industry and Trade is ‎currently preparing updates to the Rules for Selecting Suppliers within the OP TAK program, and ‎similar steps can be expected from other providers. For applicants and recipients of support from OP ‎TAK, who are not subject to the Public Procurement Act regime, the new limits will be binding only ‎after these updated program rules take effect. Based on available information, it is expected that in ‎the case of OP TAK, the limits will even be increased beyond the scope of the actual amendment to ‎the Public Procurement Act.‎ 

Recommendations for procurers 

• Monitor updates to the Rules for Selecting Suppliers in various grant programs.‎ 

• Check internal directives and processes – it is advisable to align them with the new legal ‎framework in a timely manner.‎ 

• Take advantage of the amendment to evaluate opportunities for more efficient contract ‎awards within the new limit framework.‎ 

• In case of uncertainties, consult your procedures with public procurement experts to avoid ‎the risk of grant reductions. Do not hesitate to contact specialists from Deloitte – we are ‎happy to assist you not only with setting processes and strategies for awarding contracts in ‎accordance with current legislation and grant provider requirements but also with their ‎actual realization.‎