Luxembourg changes public-procurement rules to support SMEs

The Luxembourg government has unanimously passed a bill to reform public-procurement procedures in a bid to give easier access to small businesses.

The bill also seeks to improve the cost effectiveness of the process and prevent conflicts of interest or corruption.

The bill implements two European directives and relates to rules governing administrative contracts concluded between a public body and a supplier or service provider.

The aim of the reform is to allow public procurement to become an "instrument of political strategy".

With the bill, the government will now be able to grant several contracts to various smaller companies over a single contract to a larger company.

The reform also seeks to improve cost effectiveness by amending 'most economically advantageous' tender criteria.

Under the new definition, public purchasers may demand certain conditions to make sure the work or services fulfil environmental or social criteria.

Public purchasers will no longer be based systematically on the lowest price, and new provisions will be put in place to curb social and environmental dumping practices.

It also requires more transparency in terms of sub-contracting, and some markets may be reserved for specific structures that promote the social integration of disabled employees.

Provisions are also set out to prevent conflicts of interest, favouritism and corruption.