When is an invitation to tender needed?

Public institutions must submit tenders in cooperation with the Government Procurement Office if:

• The aim is to purchase or award a public contract.

• The contract or the purchase is over.

In the first step of the procurement process, the procurement is analysed. It is then determined whether the amount will exceed the threshold or not.

Part A institutions are obliged to conduct tenders in cooperation with Ríkiskaup.

• If there is no purchase.

Municipalities

Municipalities are also encouraged to use the cost-effective contracts of the Government Procurement Service, along with expertise.

Auction

Public procurement involves the allocation of public funds that the taxpayer wants to spend wisely, in a pragmatic and transparent manner. Public procurement often has to be carried out through a procedure whereby interested companies are given the opportunity to submit written and binding tenders.

The offer must be made by means of a procedure, for example, it must be stated what to buy, what requirements are made and how the selection between the offers will be made. Interested sellers will thus receive the same information at the same time.

High-quality procurement

Government procurement ensures that public funds are properly managed. They follow certain processes with carefully prepared documents and tenders.

The procurement process is reviewed by more than the buyer and is therefore transparent, legal, practical and equal. The whole process is also documented from beginning to end.

Objectives of public procurement:

• Open up to competition among companies.

• Prevention of corruption.

• Promote growth in Europe and cross-border procurement.

• Increase the value of purchases, get higher quality and/or lower prices.

• Stimulate innovation.

• Promote the development of sustainable solutions.