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OJEU tendering

OJEU tendering

According to EU legislation, all contracts from the public sector which are valued above a certain threshold must be published in the Official Journal of the European Union – OJEU for short, formerly known as OJEC.

Who does it cover?

The legislation covers organizations and projects receiving public money and states that they must advertise a tender in the OJEU.

Further, some privately funded/managed projects will also be covered by this legislation if in receipt of more than 50% funding from public funds.

The threshold for utility contracts is set at €443,000 (£363,424) as of 1st Jan 2018. This figure relates to the total value of the contract (not the annual value) and so if projected spend under an electricity contract were (say) €250,000/annum and a 2-year supply agreement were signed, then the total value of the contract would be €500,000.

Key factor – timing

Another key factor is timing as there is a requirement to allow at least 52 days between sending a tender to OJEU and the closing date. As such it is vital that work on re-negotiation of a supply contract is commenced well in advance of the actual renewal date.

Further details can be found here.