On November 9th, the Official State Gazette published Law 9/2017, of November 8th, on Public-Sector Contracts. The objectives of this law are to achieve greater transparency in public procurement and better value for money. Against this new backdrop, we spoke with Andersen Tax & Legal.

According to Andersen Tax & Legal, what are the real allowances of the new law?

The new legal text introduces greater transparency and efficiency in public procurement in our country (which, as is well known, represents approximately 20% of the Gross Domestic Product), improving the price-quality ratio of the services required by the public sector, thus redesigning the award criteria and including among them qualitative, environmental, social and innovative aspects linked to the subject matter of the contract and more rigorously regulating abnormally low or reduced bids.

The Public-Sector Contracts Law also reinforces the guiding principles that should govern this legal discipline, such as advertising, equality, non-discrimination and free competition, simplifying administrative procedures and burdens and facilitating access to SMEs.

What are the main changes brought about by Law 9/2017?

Broadly speaking, the subjective scope of application of the rule is broadened to include political parties, trade unions and employers' organisations, as well as the foundations and associations linked to them, provided that certain requirements are met, new types of contract such as service concessions are created and others such as the public-private partnership contract and the public service management contract are abolished, the amount of the smaller contract is reduced, and the regulation of public-private partnerships is extended and improved.

What will it mean for SMEs that want to bid as tenderers?

The new law includes a series of developments to facilitate the access of small and medium sized companies to contracting, which will generate more intense competition for public contracts that will allow SMEs to develop their growth and innovation potential, with the consequent positive effect on the economy.

These innovations include, for example, the division of contracts into lots and the relaxation of solvency requirements, without which making it impossible to ask for experience from new companies.

Now we can only hope that, with the new legislative landscape, the aim of the rule will be achieved, thereby achieving fairer, more efficient, more transparent, better quality, more modern and, ultimately, better for all.

For further information, please contact:

José Vicente Morote Sarrión

jvicente.morote@AndersenTaxLegal.es

Antonio Benítez Ostos

antonio.benitez@AndersenTaxLegal.es