The Regional Secretary for Tourism and Transport presented today at a press conference, held in Ponta Delgada, the new legal document on Public Procurement. It is based on three general principles: transparency and streamlining of procedures, suitability to the regional reality and the economic stimulus it can provide to small and medium companies.
The Azores are the first region of the country to review this legal document, which aims to increase transparency in the relation between public and private entities and, simultaneously, promote economic revitalisation of the sectors of construction and services.
"Taking advantage of this amendment, the Government of the Azores, while searching constantly to enhance transparency, rigour and the dynamics of the regional business community, has assumed this legislative change as a priority. Indeed, it was the first region in the country to do so; neither Mainland Portugal nor Madeira have done so," said Vítor Fraga.
According to him, the new document focuses its attention on partnerships for innovation "in order to flesh out the political options towards the consolidation and revitalisation of the regional business sector and the concept of sustainability as a reference and distinctive feature in the competitive world."
The Regional Secretary stressed that the preparation of this new legislation was based on the "stabilised experience of the application of the Public Procurement Code in the Region in conjunction with the regional legislation. The regional legal framework embodies the principles and options of the new Community Directive on public procurement that are likely to benefit the economic development of the Azores," addressing important factors such as the geographic dispersion of the islands and the imbalances in population distribution.
"In a Region like ours, an archipelago formed by several islands, where the size and the medium or small-sized business organisation strongly affect competition between economic operators, it is necessary to define rules that reflect regional particularities and specificities," said Vítor Fraga.
As for the main changes to tender procurement procedures in the Region, the government official highlighted the reduction in the authorised amount for extra works in contract works, from 25% to 20%, as opposed to the national orientation towards a 40% reduction.
There is also the possibility to exclude proposals due to previous unsatisfactory performances and, for this time in the regional legal framework, projects and the respective authorisation will be subject to regulations in the context of relations with regional public authorities.
"The goal is to improve procedures and reduce the occurrence of situations that are likely to raise costs in the construction phase," said the Regional Secretary.
The new legal document also provides the option to divide the amount of the contract work into shares. This measure is intended to stimulate competition in the procurement process and create the conditions to promote the participation of the small and medium companies that make up the vast majority of the regional business fabric.
Moreover, it defends the introduction of labelling as a criterion of eligibility in procurement procedures, through the principles of social and environmental sustainability.
In regard to the new legislative solutions, the government official noted that the contracting entity will have the possibility to make direct payment to subcontractors.
The social sector was another reality addressed in the new document. In this context, the Regional Secretary emphasised the importance of "social and professional integration of people with disabilities or in situation of disadvantage."
The government official pointed out the lack of collateral in contracts whose base price is less than 200 thousand Euros. This is especially relevant in the proposal for the legal document due to its concern with the reality of the Azores. It aims to respond to past experiences as well as to ensure the signing of the contract and the compliance with its terms.