PUBLIC CONTRACTS g S.L.174.04 1
SUBSIDIARY LEGISLATION 174.04
PUBLIC CONTRACTS REGULATIONS
( )*
LEGAL NOTICE 299 of 2003.
ARRANGEMENT OF REGULATIONS
*Not yet in force.
Regulations
Part I General Provisions 1 - 16
Part II  Rules governing public contracts whose value does not exceed
Lm20,000 17 - 20
Part III  Rules governing public contracts whose value exceeds
Lm20,000 but does not exceed the thresholds 21 - 22
Part IV Rules common to public contracts whose value exceeds
Lm20,000 23 - 32
Part V  Rules governing public contracts whose value equals or
exceeds the threshold 33 - 49
Part VI Types of Contract 50 - 71
Section A - Public services contract 50 - 59
Section B - Public supply contract 60 - 64
Section C - Public works contract 65 - 71
Part VII Public utilities contracts 72 - 97
Part VIII Variation orders 98
Part IX Contracts Committees 99
Part X Functions of the Contracts Committees 100
Part XI Procurement Committees 101
Part XII Separate packages in tender offer 102
Part XIII Procedure for the submission of appeals 103
Part XIV Public Contracts Appeals Board 104
SCHEDULES
Schedule 1 Complete list of Contracting Authorities
Schedule 2 Contracting Authorities falling within the competence of the Department of
Contracts
Schedule 3 List of Contracting Authorities who shall administer their own public
procurement in accordance with the provisions of these regulations
Schedule 4 List of Contracting Authorities for the supply of water
Schedule 5 List of Contracting Authorities for the supply of energy
Schedule 6 List of Contracting Authorities for the supply of fuels for the production of
energy
Schedule 7 Public works contracts activities
Schedule 8A Services within the meaning of regulation 52(1)
Schedule 8B Services within the meaning of regulation 52(2)
Schedule 9 Thresholds
Schedule 10 Model contract notices
Schedule 11 List of products in the field of defence
2 g S.L.174.04 PUBLIC CONTRACTS
PART I
General Provisions
Citation and 
coming into force .
1. The title of these regulations is the Public Contracts
Regulations, and they shall come into force on such date as the
Minister responsible for Finance may by notice in the Gazette
appoint and different dates may be so appointed for different
provisions and different purposes of these regulations.
Interpretation. 2. For the purposes of these regulations, unless the context
otherwise requires -
''affiliated undertaking'' means any undertaking over which an
undertaking awarded a works concession may exercise, directly or
indirectly, a dominant influence or which may exercise a dominant
influence over the concessionnaire or which, in common with the
concessionnaire, is subject to the dominant influence of another
undertaking by virtue of ownership, financial participation or the
rules which govern it. A dominant influence on the part of an
undertaking shall be presumed when, directly or indirectly in
relation to another undertaking, it:
( a ) holds the major part of the undertaking’s subscribed
capital, or
( b ) controls the majority of the votes attaching to shares
issued by the undertakings, or
( c ) can appoint more than half of the members of the
undertaking’s administrative, managerial or
supervisory body:
Provided that for the purposes of Part VII -
( a ) an ''affiliated undertaking'' means any undertaking the
annual accounts of which are consolidated with those
of the contracting entity in accordance with the
requirements of the seventh Council Directive 83/349/
EEC of 13 June 1983, based on Article 54(3)(g) of the
EEC Treaty on consolidated accounts or, in the case of
entities not subject to that Directive, any undertaking
over which the contracting entity may exercise,
directly or indirectly, a dominant influence, or which
may exercise a dominant influence over the
contracting entity or which, in common with the
contracting entity, is subject to the dominant influence
of another undertaking by virtue of ownership,
financial participation, or the rules which govern it;
( b ) a ''relevant affiliated undertaking'' is one which has as
one of its activities the provision of services and which
provides those services principally to one or more of
its affiliated undertakings: without prejudice to the
determination of whether services are principally
provided to affiliated undertakings in other cases, in
the case of an undertaking which has been in existence
for thirty-six months or more, it shall be taken to be so
if, for the preceeding thirty-six months, 80% or more
of the average turnover of -
PUBLIC CONTRACTS g S.L.174.04 3
(i) the undertaking, or
(ii) it and of any affiliated undertaking
in respect of the provision of services of the type or
similar to those to be provided under the contract
within Member States was derived from the provision
of those services to affiliated undertakings.
''Appeals Board'' means the Board defined in regulation 30;
''body governed by public law'' means any body:
( a ) established for the specific purpose of meeting needs
in the general interest, not having an industrial or
commercial character; and
( b ) having legal personality; and
( c ) financed, for the most part, by the State, or regional or
local authorities, or other bodies governed by public
law; or subject to management supervision by those
bodies, or having an administrative, managerial or
supervisory board, more than half of whose members
are appointed by the State, regional or local authorities
or by other bodies governed by public law.
''call for tenders'' means a contest for the award of a public
contract made pursuant to a formal notice or a EU notice;
''candidate'' means any natural or legal person, including a public
body, who seeks an invitation to participate in a restricted or
negotiated procedure, a public works concession, a design contest
or a qualification system;
''the Commission'' means the Commission of the European
Union;
''concessionaire'' means a person entrusted with a public works
concession.
''contracting authority'' means the State, regional or local
authorities, bodies governed by public law, associations formed by
one or several of such authorities or bodies governed by public law.
''contracting entity'' means a contracting authority, public
undertaking or other person referred to in regulation 73(1) and
73(2);
''Contracts Committees'' means the General Contracts Committee
and, or the Special Contracts Committee;
''Departmental Adjudication Boards'' means boards or
committees appointed by contracting authorities with the purpose
of evaluating tenders received and for making recommendations
thereon.
''departmental tender'' means tenders issued by contracting
authorities pursuant to Part II;
''design contest'' means those procedures which enable the
contracting authority to acquire, mainly in the fields of area
planning, architecture and civil engineering, or data processing, a
plan or design selected by a body after being put out to competition
4 g S.L.174.04 PUBLIC CONTRACTS
with or without the award of prizes;
''direct contracts'' means contracts awarded without recourse to a
prior call for competition;
''Director'' means the Head of the Department of Contracts;
''EU notice'' means a notice to be published in the Official
Journal of the European Union as well as in the Gazette;
''framework agreement'' means an agreement between one of the
contracting authorities and one or more tenderers, the purpose of
which is to establish the terms, in particular with regard to the
prices and, where appropriate, the quantity envisaged, governing
the contracts to be awarded during a given period;
''General Contracts Committee'' means the committee defined in
regulation 8.
''Member State'' means a member state of the European
Communities as described in the term ''Commission'' herein;
''Minister'' means the Minister responsible for Finance;
''negotiated procedures'' means those procedures whereby
contracting authorities consult tenderers of their choice and
negotiate the terms of a contract with one or more of them;
''non-compliant tender'' means a tender which does not conform
to the terms and conditions specified in the notice or EU notice to
tender or in the tender documents themselves;
''notice'' means a notice published in the Gazette;
''open procedures'' means those procedures whereby any
interested undertaking may submit a tender;
''periodic indicative notice'' means the EU prior information
notice referred to in regulation 44;
''public contract'' means any contract concluded in writing for
pecuniary interest being a public services contract, public supply
contract, public works contract or public utilities contract, as
defined in this regulation;
''public service concession contract'' means a public services
contract except for the fact that the consideration for the services to
be provided consists solely of the right to exploit the provision of
the service to the public or in this right together with payment;
''public services contract'' means a contract concluded in writing
for pecuniary interest between a service provider and a contracting
authority to the exclusion of -
( a ) public supply contracts;
( b ) public utilities contracts;
( c ) public works contracts;
( d ) contracts for the acquisition or rental, by whatever
financial means, of land, existing buildings, or other
immovable property or concerning rights thereon. For
the avoidance of doubt and for the purposes of the
regulations, financial service contracts concluded at
PUBLIC CONTRACTS g S.L.174.04 5
the same time as, before or after the contract of
acquisition or rental in whatever form, of the property
herein referred to, shall also be deemed a public
services contract;
( e ) contracts for the acquisition, development, production
or co-production of programme material by
broadcasters and contracts for broadcasting time;
( f ) contracts for voice telephony, telex, radiotelephony,
paging and satellite services;
( g ) contracts for arbitration and conciliation services;
( h ) contracts for financial services in connection with the
issue, sale, purchase or transfer of securities or other
financial instruments, and central bank services;
( i ) employment contracts;
( j ) research and development service contracts other than
those where the benefits accrue exclusively to the
contracting authority for its use in the conduct of its
own affairs, on condition that the service provided is
wholly remunerated by the contracting authority;
( k ) public service concession contracts;
''public supply contract'' means a contract concluded in writing
for pecuniary interest involving the purchase, lease, rental or hire
purchase, with or without option to buy, of products between a
supplier and a contracting authority. The delivery of such products
may in addition include sitting and installation operations;
Cap. 399.
''public telecommunication services'' and ''public
telecommunication networks'' referred to in Part VII shall be
construed and interpreted by reference to the relevant provisions of
the Telecommunications (Regulation) Act, including but not
limited to the meaning assigned therein to the terms ''commercial
activities connected with telecommunications'', ''electro-magnetic
system'', ''public telecommunications system'', ''public
telecommunications service'', ''telecommunications'' and
telephony'';
''public undertaking'' means any undertaking over which the
contracting authority may exercise directly or indirectly a dominant
influence by virtue of their ownership of it, their financial
participation therein, or the rules which govern it. A dominant
influence on the part of the contracting authority shall be presumed
when these authorities, directly or indirectly, in relation to an
undertaking -
( a ) hold the majority of the undertakings subscribed
capital, or
( b ) control the majority of the votes attaching to shares
issued by the undertaking, or
( c ) can appoint more than half of the members of the
undertakings administrative, managerial or
supervisory body.
''public utilities contract'' means a contract awarded in terms of
6 g S.L.174.04 PUBLIC CONTRACTS
Part VII or excluded from these regulations by virtue of regulation
76;
''public works concession'' means a public works contract, except
for the fact that the consideration for the works to be carried out
consists either solely in the right to exploit the construction, or in
this right together with payment;
''public works contract'' means a contract for pecuniary interest
in writing between a contractor and a contracting authority, which
has as its object either the execution, or both the execution and the
design, of works related to one of the activities referred to in
Schedule 7, or a work as defined in this regulation, or the execution
by whatever means, of a work corresponding to the requirements
specified by the contracting authority;
''relevant state'' means a state with which the European Union has
entered into an agreement on public procurement including in
particular the Agreement on the European Economic Area, Europe
Agreements, bilateral agreements and, where it applies, the
Government Procurement Agreement of the World Trade
Organisation;
''restricted procedures'' means those procedures whereby only
those candidates invited by the contracting authorities may submit
tenders;
''Special Contracts Committee'' means the committee defined in
regulation 9;
''technical specifications'' has the meaning assigned to it pursuant
to regulation 42;
''tenderer'' means any legal or natural person, including a public
body, who submits a tender under an open procedure or who in a
restricted or negotiated procedure, the procedure for the award of a
public works concession or a design contest and submits a tender,
offer or design as appropriate;
''third country'' means a state not being a member of the
European Union;
''thresholds'' means the amounts listed in Schedule 9 and
determined in accordance with regulation 11;
''undertaking'' means a supplier, contractor or service-provider
who offers products, works or services and who is resident in a
Member State or a relevant state;
''work'' means the outcome of building or civil engineering works
taken as a whole that is sufficient of itself to fulfil an economic and
technical function;
''working days'' means working days in Malta.
Scope. 3. (1) These regulations shall provide for the regulation of
public contracts awarded by contracting authorities listed in
Schedule 1 and categorised in Schedule 2 and Schedule 3.
(2) The Minister may by regulations amend Schedule 1 to
ensure that all contracting authorities in Malta are listed therein.
PUBLIC CONTRACTS g S.L.174.04 7
(3) The Minister shall have the power to amend Schedules 2
and 3 as he may deem necessary from time to time.
(4) The Minister shall have the power to amend Schedule 11 as
he may deem necessary from time to time.
Non-
discrimination and 
confidentiality.
4. (1) Contracting authorities shall ensure that there is no
discrimination between undertakings, and that all undertakings are
treated equally in all calls for tenders whatever their estimated
value.
(2) Contracting authorities shall ensure that there is no
discrimination between undertakings claiming injury in the context
of a procedure for the award of a contract as a result of the
distinction made by this regulation between national rules
implementing Community law and other national rules.
(3) The provision of regulation 31(2) shall apply to all
contracting authorities irrespective of the value of the contract.
(4) Contracting authorities shall respect fully the confidential
nature of any information furnished by candidates and tenderers.
(5) In the context of provision of technical specifications to
interested candidates and tenderers, of qualification of candidates
and selection of tenderers and of award of contracts, contracting
authorities may impose requirements with a view to protecting the
confidential nature of information which they make available.
Director of 
Contracts.
5. (1) There shall be a Director of Contracts who shall be
responsible for the running of the Department of Contracts and
generally for the administration of the procurement procedures as
laid down in these regulations.
(2) Unless otherwise provided for in these regulations, it shall
be the function of the Director of Contracts -
( a ) to establish and, or to approve the general conditions
of tender documents;
( b ) to authorise deviations from standard conditions in
accordance with the regulations set out herein and
which may be included in tender documents;
( c ) to ensure that tender conditions and specifications do
not give an undue advantage or disadvantage to any
particular tenderer and any person having or having
had an interest in obtaining a particular public
contract;
( d ) to order that a tendering period of any call for tenders
referred to in these regulations be extended if he
considers such an extension justified by the
circumstances of the case;
( e ) to vet and approve (with or without modification)
tender documents before the same are issued and
published;
( f ) to ensure that these regulations are observed by all
parties involved;
8 g S.L.174.04 PUBLIC CONTRACTS
( g ) to establish and regulate the procedure to be followed
during meetings of the Contracts Committee and
Departmental Adjudication Boards, and during the
issue and publication of calls for tenders, receipt of
offers, opening of bids, adjudication of tenders and
award of contracts in accordance with the rules herein
set out;
( h ) to obtain information from the authorities listed in
Schedule 1 to which these regulations apply on the
award of contracts whose value is less than Lm 20,000
including but not limited to variation orders, penalties
(imposed or remitted) and generally as he may deem
necessary in order to enable him to ensure conformity
with these regulations;
( i ) to approve, where appropriate, as provided in Part
VIII, variations which affect the original values of
contracts by more than 5  per centum ;
( j ) to approve extensions in the duration of contracts
awarded by him if he considers that circumstances so
warrant in the public interest;
( k ) to identify and implement appropriate means to enable
him to monitor the proper execution of contracts
awarded by him and, on the advice of the General
Contracts Committee, to impose or remit, as
appropriate, penalties and damages due on such
contracts;
( l ) to institute and to defend any judicial or arbitral
proceedings that may be necessary in relation to any
contract awarded by him;
( m ) (i) to issue calls for tenders and to award period
contracts for the provision of equipment, stores,
works or services which are of a common use
nature for contracting authorities listed under
Schedule 2; and
(ii) to periodically notify Heads of Departments of
the prices and conditions applicable for, and the
procedure to be followed in, the procurement of
such equipment, stores, works or services:
Provided that Heads of Departments shall obtain
such equipment, stores, works or services directly
from the contractor in accordance with such conditions
and procedures notified by the Director as provided
herein;
(n) to make regulations to award tenders in the name and
on behalf of the Government of Malta in relation to
contracting authorities listed in Schedule: 2
Provided that, the authorities listed in Schedule 2
shall -
(i) draw up the tender documents;
(ii) effect payment of the awarded tender; and
PUBLIC CONTRACTS g S.L.174.04 9
(iii) shall monitor the implementation of the tender.
Remedies - 
Competence of the 
Department of 
Contracts.
6. (1) The Department of Contracts shall be responsible for
the provision of pre-contractual remedies to candidates and
tenderers and any person having or having had an interest in
obtaining a particular public contract in relation to all public
contracts whatever their value. Such remedies shall be provided by
the Director of Contracts or by any other official within the
Department of Contracts duly authorised by the Director.
(2) In terms of this regulation the Director shall:
( a ) take, at the earliest opportunity, interim measures with
the aim of correcting an alleged infringement or
preventing further damage to the interests concerned,
including measures to suspend or to ensure the
suspension of the procedure for the award of a public
contract or the implementation of any decision taken
by the contracting authority:
Provided that in the exercise of these powers the
Director may take into account the probable
consequences of the measures for all interests likely to
be harmed, as well as the public interest, and may
decide not to grant such measures where their negative
consequences could exceed their benefits:
Provided further that a decision not to grant
interim measures shall not prejudice any other claim of
the person seeking these measures:
Provided further that in relation to contracting
authorities who have their public procurement
regulated under Part VII may order that a sum, by way
of penalty, be paid pursuant to this subregulation,
which sum shall be set at a level high enough to
dissuade the contracting entity from committing or
persisting in an infringement;
( b ) either set aside or ensure the setting aside of decisions
taken unlawfully, including the removal of
discriminatory technical, economic or financial
specifications in the invitation to tender, the contract
documents or in any other document relating to the
contract award procedure;
( c ) take at the earliest opportunity, measures other than
those provided for in paragraphs ( a ) and ( b ) with the
aim of correcting any identified infringement and
preventing injury to the interests concerned and to
report to the Minister on cases where a contracting
authority fails to correct any infringement in response
to his instructions;
( d ) in the event of a cancellation of a call for tenders the
Director shall have the authority to order a refund of
the cost incurred by any tenderer and any person
having or having had an interest in obtaining a
particular public contract in acquiring a copy of the
tender documents or, if the tender is to be re-issued, to
10 g S.L.174.04 PUBLIC CONTRACTS
ensure that such a tenderer and any person having or
having had an interest in obtaining a particular public
contract obtains the new tender document free of
charge.
(3) The decisions of the Director in terms of subregulation (2)
shall be rendered in writing in the Gazette and shall indicate the
reasons upon which such decision was taken.
Cap. 12.
(4) Any interested person who feels aggrieved by a decision
taken by the Director of Contracts in terms of this regulation 6 may,
on a point of law, appeal to the Court of Appeal (Inferior
Jurisdiction) as constituted in accordance with article 41(6) of the
Code of Organization and Civil Procedure by means of an
application filed in the registry of that court within thirty working
days from the date on which that decision has been made public.
Discretion to refer.
Cap. 249.
7. (1) Without prejudice to the provisions of the
Interpretation Act and to any order or direction given by the
Minister -
( a ) the Director may, at his discretion, accept or reject the
recommendations of the majority of the members of
the General Contracts Committee for the acceptance or
rejection of any tender;
( b ) where -
(i) the Director disagrees with any recommendation
of the majority of the members of the General
Contracts Committee; or
(ii) any recommendation of the General Contracts
Committee differs from that submitted by the
Department or other body for whom the
procurement is to be made,
the Director may refer the matter for the decision of
the Minister:
Provided that the Director shall always refer any
matter in which he disagrees with the majority of the
members of a Special Contracts Committee for the
decision of the Minister;
Cap. 249.
( c ) the Director may, at his discretion, refer any matter for
the decision of the Minister provided that any decision
taken by the Minister under the Interpretation Act or
after any referral to him by the Director and which has
a direct influence on the award of any contract by the
Director to any particular tenderer shall not deprive in
any way the right of any candidate or tenderer and any
person having or having had an interest in obtaining a
particular public contract to have recourse to the
appeals procedures provided for in these regulations.
(2) Any matter referred for the decision of the Minister shall be
so referred in writing and the decision of the Minister shall likewise
be communicated in writing.
PUBLIC CONTRACTS g S.L.174.04 11
General Contracts 
Committee.
8. (1) There shall be a General Contracts Committee whose
members shall be appointed by the Prime Minister on such terms
and conditions as may be specified in their letter of appointment.
(2) The members of the General Contracts Committee shall be
appointed for a fixed term of not more than three years and may be
re-appointed.
(3) Any member of the General Contracts Committee may
during his tenure of office be removed by the Prime Minister where
he is satisfied that there has been a clear case of misbehaviour by
the member or inability of a member to perform his functions or
where such circumstances exist that would disqualify such a
member from remaining a member of the Contracts Committee.
(4) The provisions of Part IX shall apply to the General
Contracts Committee.
Special Contracts 
Committee.
9. (1) Where the Prime Minister determines that the
adjudication of tenders for the award of any particular contract
requires special expertise, skills or other specialist knowledge, he
may appoint a Special Contracts Committee for the award of that
public contract.
(2) The members of the Special Contracts Committee shall be
appointed for the duration of the adjudication process of the
particular call for tenders, until the tender is awarded or else until
the Director of Contracts declares that the award of the public
contract is withdrawn.
(3) Subject to the provisions of this regulation, regulation 8
shall apply to members of a Special Contracts Committee as it
appliues to members of the General Contracts Committee.
(4) The provisions of Part IX shall apply to the Special
Contracts Committee.
Contracts 
Committee.
10. (1) The meetings of the Committees shall be called by the
Chairman who shall preside over such meetings. Any three
members of the Contracts Committee shall constitute a quorum at a
meeting thereof.
(2) Decisions shall be taken by a simple majority of the votes
of the members present and voting. The Chairman shall in the event
of an equality of votes, have a casting vote.
(3) The meetings of the Contracts Committees shall be open to
the public during the opening of bids. The list of tenders received,
together with the respective prices (except offers submitted as per
regulation 29) shall be given publicity by the Director immediately
after their opening and scheduling.
(4) The Contracts Committees established in terms of these
regulations shall regulate their own proceedings, unless otherwise
provided for herein. The Chairman of any committee established by
virtue of these regulations shall have a casting vote.
(5) The Contracts Committees shall have the function to assist
the Director in the execution of his duties in accordance with these
regulations. In the discharge of their functions, the Contracts
12 g S.L.174.04 PUBLIC CONTRACTS
Committees shall be regulated by the provisions of these
regulations generally and in particular by the provisions of Part X.
Thresholds. 11. The Minister shall, from time to time by regulations,
determine the thresholds applicable under these regulations. Such
thresholds shall be equal to, and categorised in the same fashion as
the thresholds established pursuant to the relevant European Union
Directives as published from time to time in the Official Journal of
the European Union.
Requirement of 
approval before 
issue and 
publication of 
tender.
12. Where a contracting authority intends to issue a call for
tenders leading to the award of a public contract, the estimated
value of which falls within the provisions of regulation 14( b ) and
( c ), then the contracting authority shall prior to its issue and
publication send to the Director a copy of the tender document
including all other relevant and supporting documentation.
Annual report. 13. (1) The Director of Contracts shall, by not later than six
months after the end of each Malta Government financial year,
make and transmit to the Minister a report dealing generally with
the performance of the General Contracts Committee, the Special
Contracts Committee and the public contracts Appeals Board
during the financial year being reported upon. The report shall, in
particular, provide details regarding appeals submitted by
candidates and tenderers and any person having or having had an
interest in obtaining a particular public contract in terms of these
regulations and the decisions arrived at by the General Contracts
Committee and the public contracts Appeals Board as the case may
be.
(2) The Minister shall lay a copy of every such Annual report
on the table of the House of Representatives at the earliest
opportunity.
Applicability. 14. Without prejudice to the applicability of the other
provisions of these regulations, public contracts -
( a ) the estimated value of which does not exceed Lm
20,000, shall be subject to Part II;
( b ) the estimated value of which exceeds Lm 20,000 but
which does not exceed the thresholds, shall be subject
to Parts III and IV;
( c ) the estimated value of which equals or exceeds the
thresholds, shall be subject to Parts IV, V, VI A, VI B,
VI C and VII as may be applicable.
In calculating the estimated values of public contracts the
contracting authority shall use the provisions laid down in
regulation 15.
Rules for 
calculating 
applicable 
estimated value.
15. (1) In calculating the estimated value, the contracting
authority shall consider the estimated value of remuneration due to
the successful tenderer.
(2) Contracting authorities shall not establish an estimated
value of a public contract with the intention of avoiding the
application, in part or in whole, of these regulations.
PUBLIC CONTRACTS g S.L.174.04 13
(3) Contracting authorities shall not adopt any mechanism, the
purpose of which is to circumvent the application, in part or in
whole, of these regulations.
(4) When the content of a tender is subdivided into several lots,
each one the subject of a contract, the value of each lot must be
taken into account for the purpose of calculating the estimated
value of the public contract and thus the applicability of these
regulations:
Provided that in the case of a public services or a works
contract, contracting authorities may depart from the principles laid
down in this subregulation in respect of any lot which has an
estimated value, net of VAT, of less than the threshold stated in
Schedule 9 and provided that the total value of such lots does not
exceed 20 percent of the total value of all the lots.
(5) ( a ) Where a public supplies contract or a public services
contract is a regular contract, a series of contracts, or a
contract which is to be renewed within a given time,
the estimated value of the public contract shall be
established on the basis of:
(i) either the actual aggregate value of similar
contracts concluded over the previous fiscal year
or twelve months, adjusted where possible, for
anticipated changes in quantity or value over the
twelve months following the initial contract;
(ii) or the estimated aggregate value during the
twelve months following the first delivery or
during the term of the contract, where this is in
excess of twelve months.
( b ) If a proposed procurement of supplies or services of
the same type may lead to contracts being awarded at
the same time in separate parts, the estimated value of
the total sum of these parts must be taken as the basis
for the calculation of the estimated value.
(6) Where a public services contract does not specify a total
price, the basis for calculating the estimated value of the public
contract value shall be:
( a ) in the case of fixed-term public contracts, where their
term is forty-eight months or less, by the total contract
value for its duration;
( b ) in the case of public contracts of indefinite duration, or
with a term of more than forty-eight months, by the
monthly instalment multiplied by forty-eight.
(7) Where a public contract is for the lease, rental or hire
purchase of products, the basis for calculating the estimated value
of the public contract shall be:
( a ) in the case of fixed term contracts, where their term is
twelve months or less, the total contract value for its
duration, or, where the term exceeds twelve months,
its total value including the estimated residual value;
14 g S.L.174.04 PUBLIC CONTRACTS
( b ) in the case of contracts for an indefinite period or in
cases where there is doubt as to the duration of the
contracts, the monthly value multiplied by forty-eight.
(8) Where a proposed procurement provides for option clauses,
the basis for calculating the estimated value of the public contract
shall be the highest permitted total including use of the option
clauses.
(9) For the purposes of calculating the estimated value of a
contract for financial services, the following amounts shall be taken
into account:
( a ) as regards insurance services, the premium payable;
( b ) as regards banking and other financial services, the
fees, commissions, interest and other types of
remuneration;
( c ) as regards contracts which involve design, of the fee or
commission payable.
(10) For the purposes of calculating the estimated value of a
public works contract, the contracting authority shall take into
account not only the value of the works but also the estimated value
of the supplies needed to carry out the works made available to the
contractor by the contracting authorities.
(11) For the purposes of calculating the estimated value of a
contract including both supplies and services, account shall be
taken of the total value of the supplies and services, regardless of
their respective values. The calculation shall include the value of
sitting and installation operations.
(12) The basis of calculating the value of a framework
agreement shall be the estimated maximum value of all the
contracts envisaged for the period in question.
Non-applicability. 16. (1) These regulations shall not apply to:
( a ) public contracts governed by different procedural rules
and awarded in pursuance of an international
agreement concluded between Malta and one or more
third countries for the joint implementation or
exploitation of a project by the signatory states:
Provided that the international agreement has
been concluded in conformity with the Treaty
establishing the European Community and has been
notified to the Commission;
( b ) public contracts governed by different procedural rules
and awarded pursuant to the particular procedure of an
international organisation;
( c ) public contracts which are declared secret or the
execution of which must be accompanied by special
security measures in accordance with the laws,
regulations or administrative provisions in force from
time to time in Malta or when the protection of Malta’s
security so requires;
PUBLIC CONTRACTS g S.L.174.04 15
( d ) undertakings in a Member State or a third country in
pursuance of an international agreement relating to the
stationing of troops.
(2) Contracting authorities shall not be obliged to supply
information, the disclosure of which is deemed contrary to the
essential interests of Malta’s security.
PART II
Rules governing public contracts whose value
does not exceed Lm 20,000
Applicability.
exceed Lm 20,000 only the relevant provisions of Part I and the
whole of Part II shall apply.
Scope.
exceed Lm 20,000, shall be regulated and administered by the
contracting authority, which shall nevertheless ensure that all the
applicable provisions contained in Part I and Part II are complied
with.
Procurement 
procedures for 
contracting 
authorities.
19. (1) Except where the Minister otherwise directs or
approves the procedure for the procurement of equipment, stores,
works or services by the contracting authorities listed in Schedule 2
shall be as follows:
( a ) where the estimated value does not exceed Lm 1,000,
the equipment, stores, works or services may be
procured departmentally either after obtaining
quotations or direct from the open market at the
discretion of the Head of Department taking into
consideration the amount involved, the urgency
attached to the procurement and restrictions of choice
and availability;
( b ) where the estimated value exceeds Lm 1,000 but does
not exceed Lm 2,500, the equipment, stores, works or
services may be procured departmentally after a call
for tenders, or after obtaining quotations, or direct
from the open market, taking into consideration the
amount involved, the urgency attached to the
procurement and restrictions of choice and
availability, and shall be approved by the Minister
responsible for that Department; or by such member of
the Department as may be authorised by that Minister;
( c ) purchases of the same or closely similar material in
different lots under paragraphs ( a ) and ( b ) during a
period of six months shall not exceed a total value of
Lm 10,000;
( d ) where the estimated value exceeds Lm 2,500 but not
Lm 20,000, the equipment, stores, works or services
may be procured after a departmental call for tenders.
The tenders shall be opened in public by three senior
officers of the said department and the prices quoted
shall also be made public. The provisions of regulation
16 g S.L.174.04 PUBLIC CONTRACTS
25 shall apply for the adjudication of the tenders
submitted:
Provided that the Minister may by regulations
allow limits higher than Lm 20,000 up to the
thresholds, in the case of particular departments, and
may authorise, as and when he deems appropriate, the
setting up of procurement committees as provided for
in these regulations:
Provided further that the Minister may allow that
variations and the imposition or remission of penalties
in respect of such contracts be approved by the
Minister charged with responsibility for that
department, who may delegate his authority in writing
to the Parliamentary Secretary, the Permanent
Secretary or the Head of Department.
(2) Every six months the Head of Department shall publish in
the Gazette a full list of all departmental contracts awarded by him
and a list of all cases involving variations which exceed the original
contract values by more than 5  per centum . In such cases details
should include the nature of the contracts, the original contract
values and the final contract values.
(3) In all cases in which the authorities listed in Schedule 2
wish to adopt the restricted procedure in order to carry out their
procurement under this regulation, the prior consent of the Director
of Contracts shall be required.
(4) Without prejudice to subregulation (1)( d ) direct contracts
valued in excess of Lm 2,500 may, in exceptional cases, be placed
by any contracting authority listed in Schedule 2 after such an
authority obtains the prior written approval of the Minister who
may delegate his authority in writing to the Permanent Secretary or
any other senior official in his Ministry.
(5) The financial limits referred to in this regulation may be
varied by order of the Minister published in a legal notice.
(6) Contracting authorities operating in terms of an enabling
law shall follow the procedures stipulated in that law in the award
of direct contracts.
Right of recourse. 20. (1) Where the estimated value of the public contract
exceeds Lm 5,000 but not Lm 20,000 and is issued by a Local
Council or by an authority listed in Schedule 2, any interested
undertaking shall have a right to make a complaint to the General
Contracts Committee in accordance with the procedure laid down
in these regulations.
(2) The contracting authority shall be obliged to issue a notice
and affix an advertisement, in a prominent place at its premises,
indicating the awarded public contract, the financial aspect of the
award and the name of the successful tenderer.
(3) Any interested undertaking who may be aggrieved by the
award shall, within three working days from the publication of the
notice, file a letter of objection, together with a deposit of Lm 100,
PUBLIC CONTRACTS g S.L.174.04 17
with the contracting authority, clearly setting forth any reason for
his complaint.
(4) After the expiry of the period allowed for the submission of
a complaint, the contracting authority shall deliver the letter of
complaint, the deposit receipt and all documents relating to the
public contract in question to the Director of Contracts.
(5) The Director of Contracts shall refer the case to the General
Contracts Committee which shall examine the matter in a fair and
equitable manner and determine the complaint by upholding or
rejecting it.
(6) In its deliberation the Committee shall have the authority to
obtain in any manner it deems appropriate, any other information
not already provided by the contracting authority. The General
Contracts Committee’s decision shall be final and binding on the
contracting authority and the interested undertaking who shall not
be afforded any further recourse.
(7) Tender documents issued in terms of this Part shall include
a clause informing tenderers that the award of the contract is
subject to the right of recourse as provided for in this regulation, a
copy of which should be reproduced in the documents.
(8) The Minister shall have the authority to order by legal
notice, that recourse as provided in this regulation be made
available also by authorities listed in Schedule 3 and to prescribe
the procedure by which such recourse is to be granted.
PART III
Rules governing public contracts whose value
exceeds Lm 20,000 but does not exceed the thresholds
Applicability.
contracts where the estimated value exceeds Lm20,000 but does not
exceed the thresholds.
Except where the Minister otherwise directs or approves,
the procedure for the award of a public contract shall be that as
stipulated in Parts I and IV.
Regulation.
Lm 20,000 but does not exceed the thresholds, shall be subject to
the regulatory and other functions of the Department and Director
of Contracts:
Provided that public contracts required by a contracting
authority listed in Schedule 2 shall be issued, administered and
determined by the Department of Contracts, which for the purposes
of these regulations shall act on behalf of the contracting authority;
and public contracts required by those contracting authorities listed
in Schedule 3 shall be issued, administered and determined by the
contracting authorities therein listed subject to the provisions set
out in these regulations including but not limited to the right of
appeal.
18 g S.L.174.04 PUBLIC CONTRACTS
PART IV
Rules common to public contracts whose value exceeds Lm 20,000
Applicability. 23. This Part shall apply to all public contracts whose value is
in excess of Lm 20,000.
Award procedures. 24. (1) Subject to the other provisions of these regulations,
procurement of services, supplies and works shall be made by
public contract after a call for tenders in accordance with these
regulations.
(2) Subject to the other provisions of these regulations, in
awarding a public contract, a contracting authority shall apply the
open, negotiated or restricted procedures as defined in these
regulations.
(3) In all cases in which the authorities listed in Schedule 2
wish to adopt the restricted or negotiated procedure in order to
carry out their procurement, the prior consent of the Director of
Contracts shall be required.
(4) In all cases in which the authorities listed in Schedule 3
wish to adopt the restricted or negotiated procedure in order to
carry out their procurement prior approval from the Minister
responsible for that authority, or from a senior official in that
Ministry duly delegated in writing by his Minister to grant such
approval, shall be required.
(5) In restricted and negotiated procedures with a call for
competition the contracting authorities shall, on the basis of
information given relating to the candidate’s personal position as
well as of the information and formalities necessary for the
purposes of regulation 45, select the candidates whom they will
invite to submit a tender or to negotiate.
Award criteria. 25. (1) Contracting authorities shall determine the award of
public contracts on the following criteria:
( a ) the most economically advantageous offer; or
( b ) the lowest price offered compliant with the tender
specifications.
(2) Where the award is made to the most economically
advantageous offer, various criteria relating to the contract,
including but not limited to, price, delivery date, delivery period or
period of completion, running costs, cost-effectiveness, quality,
aesthetic and functional characteristics, technical merit,
profitability, after-sales service and technical assistance shall be
taken into consideration.
(3) Where the contract is to be awarded on the basis of the most
economically advantageous offer, the contracting authority shall, in
the contract documents or in the EU contract notice, list, where
possible in descending order of importance, all the criteria it
intends to apply in the determination of the award.
PUBLIC CONTRACTS g S.L.174.04 19
Special 
considerations 
relating to rules 
governing award 
criteria.
26. (1) A contracting authority shall be entitled to reject
tenders which appear to be abnormally low in relation to the
activity to be carried out, but it shall request tenderers to submit in
writing, details of the constituent elements of the tender which it
considers relevant and shall verify those constituent elements
taking account of the explanations received.
(2) The contracting authority may take into consideration the
tenderer’s explanations relating to the economics of the
manufacturing process, or, to the technical solutions proposed, or,
to the exceptionally favourable conditions available to it, or, to the
originality of the tenderer’s proposal.
(3) If the documents relating to a public contract provide for its
award at the lowest price tendered, the contracting authority shall
communicate to the Director, any reasons for the rejection of
tenders which it considers to be too low.
(4) Unless such specifications are justified by the subject of the
contract, it shall not be lawful to introduce into tender
specifications clauses which mention goods of a specific make or
source or of a particular purpose and which therefore favour or
eliminate certain potential tenderers. In particular the introduction
of trade marks, patents, types or of a specific origin or production
shall be prohibited. However, if such indication is accompanied by
the words ''or equivalent'' it shall be authorized in cases where the
contracting authorities are unable to give a description of the
subject of the contract using specifications which are sufficiently
precise and fully intelligible to all parties concerned.
(5) Tenders shall be submitted in writing. However, when
authorised by the contracting authority, tenders may be submitted
by any means provided -
( a ) that each tender contains all the information necessary
for its evaluation;
( b ) that the confidentiality of tenders is maintained
pending their evaluation;
( c ) that, where necessary, for reasons of legal proof, such
tenders are confirmed as soon as possible in writing or
by dispatch of a certified copy;
( d ) that tenders are opened after the time limit for their
submission has expired.
Sub-contracting.
ask the tenderer to indicate in his tender any share of the contract
which he intends to sub-contract to third parties and such indication
shall be without prejudice to the tenderer’s liability.
Joint and group 
tendering.
28. (1) Tenders may be submitted by groups of tenderers.
These groups shall not be required to assume a specific legal form
in order to submit the tender. The selected group may be required
to do so when it has been awarded the contract, to the extent that
this change is necessary for the satisfactory performance of the
contract.
(2) Legal persons may be required to indicate in the tender or
in a request for participation, in the case of design contests, the
20 g S.L.174.04 PUBLIC CONTRACTS
names and relevant professional qualifications of the individuals
responsible for the performance of the service.
Separate packages. 29. Where in accordance with a call for tenders an offer
consists of separate packages, the procedure set out in Part XII
shall be followed.
Appeals Board. 30. (1) There shall be established a public contracts Appeals
Board to be known as the Appeals Board which shall be regulated
in terms of Part XIV.
(2) It shall be the function of the Board to hear and determine
complaints submitted by any person having or having had an
interest in obtaining a particular public supply , public service or
public works contract and who has been or risks being harmed by
an alleged infringement by those authorities listed in Schedule 1
and whose value exceeds Lm 20,000, in accordance with the
procedures laid down in Parts XII and XIII.
(3) Every contracting authority listed in Schedule 1 shall
indicate in its tender documents that the award of the contract is
subject to the appeals procedure as set forth in these regulations.
The document shall include a copy of Parts XII or XIII, as the case
may be, for the guidance of tenderers.
Statistical and 
other reports.
31. (1) Contracting authorities listed in Schedule 3 shall, by
not later than April of each year, send to the Director a report in
relation to each public contract awarded by it during the previous
calendar year. This report shall include:
( a ) the value, estimated if necessary, of the consideration
payable under the contract;
( b ) whether the open, negotiated or restricted procedure
was used;
( c ) if the restricted procedure was used, pursuant to which
procedures was it used;
( d ) the principal category of service, supply, work to be
carried out; and
( e ) the nationality of the person to whom the contract was
awarded.
(2) A contracting authority shall send to the Director a report
containing such information as the Director may from time to time
require in respect of any particular public contract irrespective of
its value.
Official lists. 32. (1) Undertakings registered in the official lists of their
country may, for each contract, submit to the contracting authority
a certificate of registration issued by the competent authority. This
certificate shall state the reference which enabled them to be
registered in the list and the classification given in this list.
(2) Certified registration in official lists of undertakings by the
competent bodies in EU Member States shall constitute a
presumption of suitability corresponding to the undertaking’s
classification.
PUBLIC CONTRACTS g S.L.174.04 21
(3) Information which can be deduced from registration in
official lists may not be questioned. However, with regard to the
payment of social security contributions, an additional certificate
may be required of any registered undertaking whenever a contract
is offered.
(4) The contracting authorities shall apply the above provisions
only in favour of undertakings established in the Member State
holding the official list.
(5) When undertakings from other Member States are being
registered in an official list, no proof or statement can be required
in addition to those required of national undertakings.
PART V
Rules governing public contracts whose estimated value 
equals or exceeds the threshold
Applicability.
threshold or is in excess thereof shall be governed by Part I, Part IV
and this Part and shall be awarded using the open procedure, the
restricted procedure or in the exceptional cases foreseen in
regulations 54, 55, 61, 62, 67 and 68, the negotiated procedure:
Provided that public contracts required by those contracting
authorities listed in Schedule 2 shall be issued, administered and
determined by the Department of Contracts, which for the purposes
of these regulations shall act on their behalf; and public contracts
required by those contracting authorities listed in Schedule 3 shall
be issued, administered and determined by the contracting
authorities therein listed subject to the provisions set out in these
regulations.
Number of 
tenderers.
34. (1) Where the contracting authorities award a contract by
restricted procedure, they may prescribe the range within which the
number of tenderers which they intend to invite will fall. In this
case the range shall be indicated in the EU contract notice. The
range shall be determined in the light of the nature of the tender.
The range must number at least five and may be up to twenty. In
any event, the number of candidates invited to tender shall be
sufficient to ensure genuine competition.
(2) Where the contracting authorities award a contract by
negotiated procedure with a call for competition the number of
candidates admitted to negotiate may not be less than three
provided that there is a sufficient number of suitable candidates.
Negotiated 
procedures.
35. (1) Contracting authorities may award a public contract by
negotiated procedure, with prior publication of a EU contract
notice in the cases mentioned in regulations 54, 61 and 67 of these
regulations.
(2) Contracting authorities may award a public contract by
negotiated procedure, without prior publication of a EU contract
notice in the cases mentioned in regulations 55, 62, 68 and 83.
(3) The authorities listed in Schedule 2 shall require the
22 g S.L.174.04 PUBLIC CONTRACTS
consent of the Director of Contracts if they wish to adopt the
negotiated or restricted procedures in order to carry out their
procurement under this regulation.
(4) The authorities listed in Schedule 3 which wish to adopt the
restricted or negotiated procedures in order to carry out their
procurement under this regulation, shall require the prior consent
from the Minister responsible for that authority, or from an official
in that Ministry duly delegated in writing by his Minister.
Time limits for 
receipt of tenders 
in open 
procedures.
36. (1) Where a public contract is to be awarded by open
procedures, the contracting authority shall fix the time limit for the
receipt of tenders at not less than fifty-two days from the date of
dispatch of the EU contract notice.
(2) The time limit for the receipt of tenders laid down in
subregulation (1) may be reduced to thirty-six days where the
contracting authority has published the EU prior information
notice, drafted in accordance with the model in Schedule 10 and
incorporating as much of the information required for a EU
contract notice as was available at that time and provided that the
EU prior information notice was dispatched to the Office for
Official Publications not less than fifty-two days and not more than
one year before dispatch of the EU contract notice.
(3) The contract documents and supporting documentation, if
any, must be sent to the tenderers by the contracting authority or
competent department within six days from the date of receipt of
their application to tender:
Provided that tenderers agree to make good the costs of
such dispatch:
Provided further that where tenderers have a presence in
Malta all documents shall, at the option of each tenderer, either be
collected by the tenderers from the place indicated in the EU
contract notice or shall be dispatched to them provided that the
tenderers agree to make good the costs of such dispatch.
(4) Additional information relating to the contract documents
must be sent to the tenderers by the contracting authority not later
than six days before the final date fixed for receipt of tenders.
(5) Where the contract documents, supporting documentation
or additional information are too voluminous to be sent within the
time limits laid down in subregulations (3) and (4), or where
tenders can only be made after a site visit, or following an onsite
inspection of the documents, the time limits laid down in
subregulations (1) and (2) shall be extended by such time as may be
considered appropriate by the Director of Contracts or the
contracting authority administering the call for tenders.
Time limits for 
receipt of 
applications to 
participate in 
tenders in 
restricted and 
negotiated 
procedures.
37. (1) Where a public contract is to be awarded by restricted
procedures or negotiated procedures with a call for competition, the
contracting authority shall fix the time limit for the receipt of
requests to participate in the tender at not less than thirty-seven
days from the date of dispatch of the EU contract notice to this
effect.
PUBLIC CONTRACTS g S.L.174.04 23
(2) In the restricted procedure the contracting authority shall
following a selection process, simultaneously and in writing, invite
the selected tenderers to submit their tenders.
(3) The invitation to tender shall be sent to the selected
tenderers accompanied by the contract documents and supporting
documents. It shall include at least the following information:
( a ) where appropriate, the address of the service from
which the contract documents and supporting
documents can be requested and the final date for
making such a request;
( b ) the amount and terms of any sum due in respect of
such documents;
( c ) the final date for receipt of tenders, the address to
which they must be sent and the language or languages
in which they must be drawn up;
( d ) reference to the EU contract notice published;
( e ) indication of any documents to be scheduled which
supplement the information referred to in regulations
46 and 47;
( f ) the criteria for the award of the contract, if these are
not given in the EU contract notice;
( g ) any other special condition for participation in the
contract.
(4) Where a public contract is to be awarded by restricted
procedures, the contracting authority shall fix the time limit for the
receipt of tenders at not less than forty days from the date of
dispatch of the written invitation.
(5) The time limit for the receipt of tenders laid down in sub-
regulation (4) may be reduced to twenty-six days where the
contracting authorities have drafted and published the EU prior
information notice, in accordance with the model found in
Schedule 10 incorporating as much of the information required for
a EU contract notice as was available at that time and provided that
the EU prior information notice was dispatched to the Office for
Official Publications not less than fifty-two days and not more than
one year before dispatch of the EU contract notice.
(6) Requests to participate in procedures for the award of
contracts may be made by letter, electronic mail, telegram, telex or
fax.
(7) Where a request to participate is made by electronic mail,
telegram, telex or fax it must additionally be confirmed by letter,
dispatched before the end of the period laid down in subregulation
(1).
(8) Insofar as it has been requested in good time, additional
information relating to the contract documents must be sent to the
tenderers by the contracting authorities, not later than six days
before the final date fixed for receipt of tenders.
(9) Where the contract documents, supporting documentation
24 g S.L.174.04 PUBLIC CONTRACTS
or additional information are too voluminous to be sent within the
time limits laid down in subregulations (4) and (5), or where
tenders can only be made after a site visit, or following an onsite
inspection of the documents, the time limits laid down in
subregulations (4) and (5) shall be extended by such time as may be
deemed appropriate:
Provided that tenderers agree to make good the costs of
such dispatch:
Provided further that where tenderers have a presence in
Malta all documents shall, at the option of each tenderer, either be
collected by the tenderers from the place indicated in the EU
contract notice or shall be dispatched to them provided that the
tenderers agree to make good the costs of such dispatch.
Time limits in 
cases of urgency.
38. (1) Where the time limits laid down in regulation 37 are
rendered impractical due to urgency, the contracting authority is
permitted to apply the following time limits:
( a ) a time limit for receipt of requests to participate which
shall be not less than fifteen days from the date of
dispatch of the EU contract notice;
( b ) a time limit for the receipt of tenders which shall be
not less than ten days from the date of the invitation to
tender.
(2) Insofar as it has been requested in good time, additional
information relating to the contract documents must be sent to the
tenderers by the contracting authorities, not later than four days
before the final date fixed for receipt of tenders.
(3) Requests for participation in contracts and invitations to
tender must be made by the most rapid means of communication
possible. Where a request to participate is made by telegram, fax or
electronic mail, it must be additionally confirmed by letter,
dispatched before the end of the period laid down in subregulation
(1).
Time limit for a 
public works 
concession 
contract.
39. Where a contracting authority intends to award a public
works concession contract, the contracting authority shall fix the
time limit for the receipt of applications for the concession at not
less than fifty-two days from the date of dispatch of the EU works
concession notice.
Application of 
Council Regulation 
1182/71.
40. The calculation of the time limits under this Part shall be
made in accordance with Council regulation (EEC, Euratom) No
1182/71 of 3 June 1971 determining the rules applicable to periods,
dates and time limits.
Information. 41. (1) The contracting authority shall promptly inform
candidates and tenderers of its decisions on the award of contracts
and shall do so in writing if requested.
(2) Where a contracting authority decides either to abandon or
recommence an award procedure in respect of which a EU contract
notice has been published, or for which there has been an invitation
to tender, it shall without delay inform the Director and the Office
for Official Publications of the European Communities as well as
PUBLIC CONTRACTS g S.L.174.04 25
any undertaking who submitted an offer or who applied to be
included amongst the persons to be selected to tender for or to
negotiate the contract, of the reasons for its decision.
(3) The contracting authority shall, within fifteen days of the
date on which the request is received, inform any eliminated
candidate or tenderer of the reasons for rejection of its application
or tender and any tenderer who has submitted a compliant tender of
the characteristics and relative advantages of the tender selected as
well as the name of the successful tenderer. A contracting authority
may decide to withhold certain information on the contract award,
referred to in the preceding subregulation, where release of such
information would impede law enforcement or otherwise be
contrary to the public interest or would prejudice the legitimate
commercial interests of particular undertakings, public or private,
or might prejudice fair competition between undertakings.
(4) For each contract awarded, the contracting authority shall
draw up a written report which shall include at least the following:
( a ) the name and address of the contracting authority, the
subject and value of the contract;
( b ) the names of the tenderers admitted to participate or
tender and the reasons for their selection;
( c ) the names of the candidates or tenderers rejected from
participating or tendering and the reasons for their
rejection;
( d ) the name of the successful tenderer and the reasons for
his tender having been selected and, if known, any
share of the contract the successful tenderer may
intend to subcontract to a third party;
( e ) if the contracting authority has used negotiated
procedures, the circumstances which justify the use of
these procedures.
(5) The provisions of regulation 31 shall apply  mutatis
mutandis  to this Part.
Technical 
specifications.
42. (1) Contracting authorities may lay down technical
specifications for public contracts provided that these shall be
included in the contract documents.
Cap. 419.
(2) Without prejudice to the legally binding technical rules in
Malta, and insofar as these are compatible with Community law,
the technical specifications shall be defined by the contracting
authorities by reference to the Malta Standards Authority Act.
(3) A contracting authority may depart from subregulation (2)
if:
( a ) the European specifications do not include any
provision for establishing conformity, or, if technical
means do not exist for establishing satisfactorily the
conformity of a product to the European
specifications; or
( b ) use of the European specifications would oblige the
contracting authority to acquire products or materials
26 g S.L.174.04 PUBLIC CONTRACTS
incompatible with equipment already in use or would
entail disproportionate costs or disproportionate
technical difficulties, but only as part of a clearly
defined and recorded strategy with a view to change-
over, within a given period, to European
specifications; or
( c ) the project concerned is of a genuinely innovative
nature for which use of existing European
specifications would not be appropriate.
(4) Contracting authorities invoking subregulation (3) shall
record, wherever possible, the reasons for doing so in the EU
contract notice published in the Official Journal of the European
Union or in the contract documents and in all cases shall record
these reasons in their internal documentation and shall supply such
information on request to Member States and to the Commission.
(5) In the absence of European specifications, the technical
specifications shall be defined:
( a ) by reference to the national technical specifications in
Malta recognized as requirements listed in the
Community directives on technical harmonization, in
accordance with the procedures laid down in those
directives, and in particular in accordance with the
procedures laid down in Council Directive 89/106/
EEC of 21 December 1988 on the approximation of
laws, regulations and administrative provisions of the
Member States relating to construction products;
( b ) by reference to national technical specifications in
Malta relating to design and method of calculation and
execution of works and use of materials;
( c ) by reference to other documents in the following order
of preference:
(i) Malta standards implementing international
standards;
(ii) other national standards and national technical
approvals of Malta;
(iii) any other standard.
(6) Unless such specifications are justified by the subject of the
contract, contracting authorities shall not introduce into the
contractual clauses relating to a given contract technical
specifications which mention products of a specific make or source
or of a particular process and which therefore favour or eliminate
certain undertakings. In particular, the indication of trade marks,
patents, types, or of a specific origin or production shall be
prohibited. However, if such indication is accompanied by the
words ''or equivalent'', it shall be authorized in cases where the
Contracting Authorities are unable to give a description of the
subject of the contract using specifications which are sufficiently
precise and intelligible to all parties concerned.
(7) For the purposes of this regulation the following terms
mean:
PUBLIC CONTRACTS g S.L.174.04 27
( a ) ''technical specifications'': the totality of the technical
prescriptions contained in particular in the tender
documents, defining the characteristics required of a
work, material, product or supply, which permits a
work, a material, a product or a supply to be described
in a manner such that it fulfils the use for which it is
intended by the contracting authority. These technical
prescriptions shall include levels of quality,
performance, safety or dimensions, including the
requirements applicable to the material, the product or
to the supply as regards quality assurance,
terminology, symbols, testing and test methods,
packaging, marking or labelling. They shall also
include rules relating to design and costing, the test,
inspection and acceptances for works and methods or
techniques of construction and all other technical
conditions which the contracting authority is in a
position to prescribe, under general or specific
regulations, in relation to the finished works and to the
materials or parts which they involve;
( b ) ''standard'': a technical specification approved by a
recognized standardizing body for repeated and
continuous application, compliance with which is in
principle not compulsory;
( c ) ''European standard'': a standard approved by the
European Committee for Standardization (CEN) or by
the European Committee for Electrotechnical
Standardization (Cenelec) as ''European standards
(EN)'' or ''Harmonization documents (HD)'' according
to the common rules of these organizations;
( d ) ''European technical approval'': a favourable technical
assessment of the fitness for use of a product, based on
fulfilment of the essential requirements for building
works, by means of the inherent characteristics of the
product and the defined conditions of application and
use. The European agreement shall be issued by an
approval body designated for this purpose by the
Member State;
( e ) ''common technical specification'': a technical
specification laid down in accordance with a procedure
recognized by the Member States to ensure uniform
application in all Member States which has been
published in the Official Journal of the European
Union;
( f ) ''essential requirements'': requirements regarding
safety, health and certain other aspects in the general
interest, that the construction works must meet;
( g ) ''European specifications'': Malta standards
implementing European standards, European technical
approvals or common technical specifications.
Variants.
28 g S.L.174.04 PUBLIC CONTRACTS
of the most economically advantageous tender, contracting
authorities may take account of variants which are submitted by a
tenderer and meet the minimum specifications required by the
contracting authorities.
(2) The contracting authorities shall state in the contract
documents the minimum specifications to be respected by the
variants and any specific requirements for their presentation. They
shall indicate in the tender EU contract notice if variants are not
permitted.
(3) Contracting authorities may not reject the submission of a
variant on the sole grounds that it has been drawn up with technical
specifications defined by reference to national standards
transposing European standards, to European technical approvals
or to common technical specifications referred to in regulation 42,
or by reference to national technical specifications referred to in
regulation 42.
EU notices. 44. (1) Contracting authorities shall make known, as soon as
possible, after the beginning of their budgetary year, by means of a
EU prior information notice, the total procurement which they
envisage awarding during the following twelve months where the
total estimated value of each type of products, or category of
services or public works contract is equal to or above the threshold
value indicated in Schedule 9:
Provided that in the case of public works contracts the
essential characteristics of the works contracts shall also be given.
(2) Where a contracting authority intends to award a public
contract by open, restricted or by negotiated procedure with a call
for competition such authority shall make known its intention by
means of a EU contract notice.
(3) Where a contracting authority intends to carry out a design
contest, such authority shall make known its intention by means of
a EU design contest notice.
(4) Where a contracting authority intends to award a public
works concession, such authority shall make known its intention by
means of a EU works concession notice.
(5) Where a contracting authority has awarded a public
contract, a public works concession or has held a design contest,
such contracting authority shall make the result known by means of
a EU award notice:
Provided that in the case of public contracts for services
listed in Schedule 8B, the EU award notice shall also indicate
whether the contracting authority agrees on its publication.
Certain information relating to the award of the contract
may not be published where release of such information would
impede law enforcement or otherwise be contrary to the public
interest, or would prejudice the legitimate commercial interests of
particular enterprises, public or private, or fair competition
between undertakings.
(6) For the purposes of this Part the EU notices shall be drawn
PUBLIC CONTRACTS g S.L.174.04 29
up substantially in accordance with the models set out in Schedule
10 and shall specify the information requested in those models.
(7) The EU notices referred to in subregulation (5) shall be sent
at the latest forty-eight days after the award of the contract in
question.
(8) The contracting authorities shall send the EU notices as
rapidly as possible and by the most appropriate channels to the
Office for Official Publications of the European Communities.
(9) In the case of the accelerated procedure referred to in
regulation 38, the EU contract notice shall be sent by telex,
telegram or telefax.
(10) The EU notices referred to in subregulations (1) and (3)
shall be published in full in the Official Journal of the European
Union and in the TED data bank in the official languages of the
Communities, the text in the original language alone being
authentic.
(11) The Office for Official Publications of the European
Communities shall publish the EU notices not later than twelve
days after their dispatch. In the case of the accelerated procedure
referred to in regulation 38, this period shall be reduced to five
days.
(12) Notices shall not be published in the Gazette or in the press
of Malta before the date of dispatch of the EU notices to the Office
for Official Publications of the European Communities. They shall
state the date of dispatch of the EU notice and shall not contain
information other than that to be published in the Official Journal
of the European Union.
(13) The contracting authorities must be able to supply proof of
the date of dispatch.
(14) The length of the EU notice shall not be greater than one
page of the Journal, or approximately six hundred and fifty words.
(15) Contracting authorities may arrange for the publication in
the Official Journal of the European Union of EU notices
announcing public contracts which are not subject to the
publication requirement laid down in this regulation.
Qualitative 
selection criteria.
45. (1) Any candidate or tenderer may be excluded from
participating in a public contract if the candidate or tenderer:
( a ) is bankrupt or is being wound up, or whose affairs are
being administered by the court, who has entered into
an arrangement with creditors or who has suspended
business activities or who is in any analogous situation
arising from a similar procedure under national laws
and regulations;
( b ) is the subject of proceedings for a declaration of
bankruptcy, for an order for compulsory winding up or
administration by the court or for an arrangement with
creditors or of any other similar proceedings under
national laws or regulations;
30 g S.L.174.04 PUBLIC CONTRACTS
( c ) has been convicted of an offence concerning his
professional conduct by a judgement which has the
force of  res judicata ;
( d ) has been declared guilty of grave professional
misconduct proven by any means which the
contracting authorities can justify;
( e ) has not fulfilled obligations relating to the payment of
social security contributions in accordance with the
legal provisions of Malta or the country in which he is
resident;
( f ) has not fulfilled obligations relating to the payment of
taxes in accordance with the legal provisions of Malta
or the country in which he is resident;
( g ) is guilty of serious misrepresentation in supplying the
information required under these regulations.
(2) Where the contracting authority requires proof from the
candidate or tenderer that none of the cases quoted in subregulation
(1)( a ), ( b ), ( c ), ( e ) and ( f ) applies to him, it shall accept as
sufficient evidence, relevant certification issued by a competent
judicial or administrative body.
(3) Where the certification referred to in subregulation (2) is
not available, it may be replaced by a declaration on oath or by a
solemn declaration made by the person concerned before a judicial
authority, a notary public or a Commissioner for Oaths in Malta or
before a judicial or administrative authority, a notary or a
competent professional or trade body, in that person’s country of
residence.
Evidence of 
financial and 
economic standing.
46. (1) The contracting authority may require evidence of
candidates’ or tenderers’ financial and economic standing. This
may be furnished inter alia, by one or more of the following:
( a ) appropriate statements from bankers;
( b ) presentation of the undertaking’s balance-sheets or
extracts therefrom, where publication of the balance
sheets is required under company law in the country in
which the undertaking is resident;
( c ) a statement of the undertaking’s turnover and its
turnover in respect of the products, works or services
to which the contract relates for the three previous
financial years.
(2) A contracting authority shall specify in the EU notice or in
the invitation to tender, which references mentioned in
subregulation (1) have been chosen as well as any others it deems
fit.
(3) In the event that a candidate or tenderer is, for any valid
reason, unable to provide the references requested by a contracting
authority, its economic and financial standing may be substantiated
by any other document which the contracting authority considers
appropriate.
PUBLIC CONTRACTS g S.L.174.04 31
Evidence of 
technical capacity.
47. (1) The ability of candidates and tenderers to perform
services may be evaluated in particular with regard to their skills,
efficiency, experience and reliability.
(2) Where the contracting authority requires evidence of the
candidates’ or tenderers’ technical capacity this may, as a general
rule, be furnished by one or more of the following means according
to the nature, quantity and purpose of the products, works or
services to be supplied:
( a ) the candidate’s or tenderer’s educational and
professional qualifications and, or those of the
candidate’s or tenderer’s managerial staff and, in
particular, those of the person or persons responsible
for providing the products, works or services;
( b ) a list of the principal products, works or services
provided in the past three years, with the sums, dates
and recipients, public or private, of the products,
works or services provided:
Provided that -
(i) where the above are provided to contracting
authorities, the evidence of the items in
paragraph ( b ) are to be in the form of certificates
issued or countersigned by the competent
authority,
(ii) where the above are provided to private
purchasers, the delivery is to be certified by the
purchaser or, failing this, simply declared by the
candidate or tenderer to have been effected;
( c ) an indication of the technicians or technical bodies
involved, whether or not belonging directly to the
candidate or tenderer, especially those responsible for
quality control;
( d ) a statement of the candidate’s or tenderer’s average
annual manpower and the number of managerial staff
for the last three years;
( e ) a statement of the tool, plant or technical equipment
available to the candidate or tenderer for carrying out
the services;
( f ) a description of the candidate’s or tenderer’s measures
for ensuring quality;
( g ) where the products, works or services to be provided
are complex or are required for a special purpose, an
inspection on the technical capacities, study and
research facilities and quality control measures of the
candidate or tenderer, may be carried out by the
contracting authority, or if so authorised, by a
competent official body of the State in which the
candidate or tenderer has its principal place of
business, management or control;
( h ) an indication of the proportion of the public contract
which the candidate or tenderer may intend to sub-
32 g S.L.174.04 PUBLIC CONTRACTS
contract;
( i ) samples, description and, or photographs of the
products to be supplied, the authenticity of which must
be certified if the contracting authority so requests;
( j ) certificates drawn up by official quality control
institutes or agencies of recognized competence
attesting conformity to certain specifications or
standards of products clearly identified by references
to specifications or standards.
(3) In so far as candidates for a public contract or tenderers
have to possess a particular authorization or to be members of a
particular organization in their home country in order to be able to
perform the service concerned, the contracting authority may
require them to prove that they hold such authorization or
membership.
(4) Any candidate or tenderer may be requested to prove his
enrolment, as prescribed in his country of establishment, in one of
the professional or trade registers or to provide a declaration or
certificate as described in subregulation (9).
(5) The contracting authority shall specify, in the EU notice or
in the invitation to tender, which references it wishes to receive.
(6) The extent of the information referred to in regulation 46
and in subregulations (1), (2) and (3) of this regulation must be
confined to the subject matter of the public contract.
(7) The contracting authority shall take into consideration the
legitimate interests of candidates and tenderers as regards the
protection of their technical or trade secrets.
(8) The Department of Contracts shall designate the authorities
and bodies competent to issue the documents, certificates or
declarations referred to in this regulation and shall forthwith inform
the Commission and other member States thereof.
(9) A list of the relevant professional and trade registers and
authorities from which the relevant declarations or certificates may
be obtained shall be kept by the Department of Contracts and shall
be made available to the public.
Supplemental 
information.
48. Contracting authorities may invite the candidates or
tenderers to supplement or clarify the certificates and documents
submitted in terms of regulations 46 and 47.
Report to 
Commission.
49. (1) The Director of Contracts shall prepare and forward to
the Commission a statistical report on the contracts awarded by
contracting authorities listed in Schedule 1 during the preceding
year, not later than the 31st October of each year.
(2) The statistical report shall detail at least:
( a ) the estimated overall value of contracts awarded below
the thresholds by each contracting authority or
category of contracting authorities, and
( b ) the number and value of contracts awarded above the
thresholds by each contracting authority or category of
PUBLIC CONTRACTS g S.L.174.04 33
contracting authorities, subdivided as far as possible
by procedure, category of product or service, and the
nationality of the tenderer to whom the contract has
been awarded and, in the case of negotiated
procedures, subdivided in accordance with regulations
55, 62, 68 and 83 the number and value of contracts
awarded to each Member State and to non-Member
State countries.
PART VI
Types of Contract
Section A
Public services contracts
Scope.
design contests, where the estimated value of the contract or the
design contest at the dispatch of the EU contract notice or
equivalent time if such a notice is not required is equal to or
exceeds the threshold value, shall be awarded in terms of these
regulations, save for Parts II, III, VI B, VI C and VII which shall
not apply thereto.
(2) This Part shall also apply to public service contracts, the
estimated value of which is equal to or exceeds the threshold value,
issued in connection with a subsidised public works contract in
terms of regulation 65(2), by an authority not being a contracting
authority, where fifty percent or more of the value of the public
service contract is subsidised directly by a contracting authority.
(3) This Part shall also apply to public contracts intended to
cover both works listed in Schedule 7 and services listed in
Schedules 8A and 8B, if the value of the services in question
exceeds that of the works covered by the contract.
(4) This Part shall also apply to public service contracts
awarded by contracting authorities in the field of defence, except
for contracts to which the provisions of Article 296 of the EC
Treaty apply.
Application.
contracts awarded to a contracting authority on the basis of an
exclusive right it enjoys pursuant to a law, regulation or
administrative provision compatible with the EC Treaty.
(2) Where contracting authorities require the production of
certificates drawn up by independent bodies for attesting
conformity of the service with certain quality assurance standards,
they shall refer to quality assurance systems based on the relevant
EN 29 000 European Standards series certified by bodies
conforming to the EN 45 000 European Standards series. They shall
recognize equivalent certificates from bodies established in other
Member States. They shall also accept other evidence of equivalent
quality assurance measures from service providers who have no
access to such certificates, or no possibility of obtaining them
within the relevant time limits.
34 g S.L.174.04 PUBLIC CONTRACTS
Two-tier 
application.
52 . (1) Where a public service contract is to be awarded in
respect of a service classified under Schedule 8A, the contracting
authority shall apply all the relevant provisions of these regulations
applicable to public contracts whose estimated value is equal to or
exceeds the threshold.
(2) A contracting authority shall observe the provisions of
regulation 42 in awarding a public service contract in respect of a
service classified under Schedule 8B of these regulations. It shall
dispatch a EU award notice to the Office for Official Publications
and it shall indicate in the EU notice whether or not it intends it to
be published.
(3) Where a public service contract is to be awarded in respect
of services classified under Schedule 8A and services classified
under Schedule 8B it shall be classified as being for services
classified under Schedule 8A if the estimated value of the services
classified under Schedule 8A exceeds the estimated value of the
services classified under Schedule 8B.
Design contests. 53. (1) This regulation shall apply to design contests
organized as part of a procedure leading to the award of a service
contract whose estimated value is not less than Lm 100,000 or such
other threshold stated pursuant to regulation 11.
(2) This regulation shall apply to all design contests where the
total amount of contest prizes and payments to participants is not
less than the threshold stated pursuant to regulation 11.
(3) The rules for the organisation of a design contest shall be in
conformity with the requirements of this regulation and shall be
communicated to those interested in participating in the contest.
(4) The admission of participants to design contests shall not
be limited on the grounds that they would have been required to be
either natural or legal persons.
(5) Where design contests are restricted to a limited number of
participants, the contracting authority shall lay down clear and non-
discriminatory selection criteria. In any event, the number of
participants shall be sufficient to ensure genuine competition.
(6) An adjudicating panel to determine the design contest shall
be appointed by the contracting authority or the Director of
Contracts, as the case may be, and it shall be composed exclusively
of at least three natural persons who are independent of the
participants in the contest. Where a particular professional
qualification is required from participants in a contest, at least a
third of its members must have the same qualification or its
equivalent.
(7) ( a ) Projects submitted to the adjudication panel shall be
anonymous.
( b ) The adjudicating panel shall be autonomous in its
decisions and opinions which shall be taken solely on
the grounds of the criteria set out pursuant to
regulation 53.
( c ) The decisions and opinions shall be reasoned and
PUBLIC CONTRACTS g S.L.174.04 35
rendered in writing.
(8) Three members of the panel shall constitute a quorum but
decisions shall be taken on a majority basis.
With prior 
publication of a EU 
contract notice.
54. Pursuant to regulation 35(1), a contracting authority may
award public service contracts by negotiated procedure, with prior
publication of a EU contract notice:
( a ) in the event of tenders in response to an open or
restricted procedure which are irregular or
unacceptable for reasons which are consistent with
these regulations, insofar as the original terms of the
contract are not substantially altered. In such cases a
contracting authority may refrain from publishing a
EU contract notice where it includes in the negotiated
procedure all the tenderers who satisfy the criteria of
regulations 42 and 45 to 48 and who during the
preceding open or restricted procedure have submitted
tenders in accordance with the formal requirements of
the tendering procedure;
( b ) in exceptional cases, when the nature of the services or
the risks involved do not permit prior overall pricing;
( c ) when the nature of the services to be procured, in
particular in the case of intellectual services and
services falling within category 6 of Schedule 8A, is
such that contract specifications cannot be established
with sufficient precision to permit the award of the
contract by selecting the best tender according to the
rules governing open or restricted procedures.
Without prior 
publication of a 
contract EU notice.
55. A contracting authority may award public service contracts
by negotiated procedure without prior publication of a EU contract
notice:
( a ) in the absence of tenders or appropriate tenders in
response to an open or restricted procedure provided
that the original terms of the contract are not
substantially altered and that a report is communicated
to the Commission at its request;
( b ) when, for technical or artistic reasons, or for reasons
connected with the protection of exclusive rights, the
services may be provided only by a particular service
provider;
( c ) where the contract concerned is awarded subsequent to
a design contest and must be awarded to one or more
successful tenderers in which case they shall be invited
to participate in the negotiations;
( d ) in so far as is strictly necessary, when the time-limits
for open, restricted or negotiated procedures referred
to in regulations 36 to 38 cannot be respected for
reasons of extreme urgency occasioned by
unforeseeable events. The circumstances invoked to
justify urgency must not be attributable to the
contracting authority;
36 g S.L.174.04 PUBLIC CONTRACTS
( e ) in so far as is strictly necessary, for additional services
not included in the project initially considered or in the
contract first concluded but which have, through
unforeseen circumstances, become necessary for the
performance of the service described therein, on
condition that the award is made to the service
provider carrying out such service:
(i) when such additional services cannot be
technically or economically separated from the
main contract without great inconvenience to the
contracting authority, or
(ii) when such additional services, although
separable from the performance of the original
contract, are strictly necessary for its
completion:
Provided that the aggregate estimated value of
contracts awarded for additional services may not
exceed fifty percent of the amount of the principal
contract;
( f ) in so far as is strictly necessary, for new services
consisting in the repetition of similar services
entrusted to the tenderer to which the same contracting
authority awarded an earlier contract, provided that
such services conform to a basic project for which a
contract was originally awarded in accordance with the
procedures referred to in regulations 36 and 38;
Provided that where a contracting authority intends to
award a series of tenders for the same project, EU notice must
initially be given that the negotiate procedure might be adopted,
and the total estimated cost of subsequent services shall be taken
into consideration by the contracting authority when they apply the
provisions of regulation 15. This procedure may be applied solely
during the three years following the conclusion of the original
contract.
Information. 56. (1) The contracting authority may state in the contract
documents, or be obliged by the Director of Contracts to do so, the
authority or authorities from which a tenderer may obtain the
appropriate information on the obligations relating to the
employment protection provisions and the working conditions
which are in force in Malta, or the region or locality in which the
services are to be performed and which shall be applicable to the
performance of the contract.
(2) A contracting authority which supplies the information
referred to in subregulation (1) shall request the tenderers to
indicate that they have taken account, when drawing up their
tender, the obligations relating to employment protection
provisions and the working conditions which are in force in the
place where the work or the service is to be carried out or
performed. This shall be without prejudice to the application of
regulation 26.
PUBLIC CONTRACTS g S.L.174.04 37
Rejection of 
variants.
57. Contracting authorities which have admitted variants
pursuant to regulation 43 may not reject a variant on the sole
grounds that it would lead, if successful, to a supply contract rather
than a public service contract within the meaning of this regulation.
Entitlement to 
carry out a service 
activity.
58. Candidates or tenderers who, under the law of the Member
State in which they are established, are entitled to carry out the
relevant service activity, shall not be rejected solely on the grounds
that, under the law of Malta they would have been required to be
either natural or legal persons.
Third countries.
contracting authorities, contracting authorities shall apply
conditions as favourable as those which they grant to third
countries in implementation of the Agreement on government
procurement, concluded in the framework of the Uruguay Round
multilateral negotiations, hereinafter referred to as ''the
Agreement''.
Section B
Public supply contracts
Scope.
the contract is equal to or exceeds the threshold value, shall be
awarded in terms of these regulations, save for Parts II, III, VI A,
VI C and VII which shall not apply thereto.
(2) When a contracting authority within the meaning of
regulation 2 grants to a body other than a contracting authority,
regardless of its legal status, special or exclusive rights to engage
in a public service activity, the instrument granting this right shall
stipulate that the body in question must observe the principle of
non-discrimination by nationality when awarding public supply
contracts to third parties.
(3) This Part shall also apply to public supply contracts
awarded by contracting authorities in the field of defence, except
for contracts to which the provisions of Article 296 of the EC
Treaty, apply.
(4) This Part shall apply to public supply contracts for which
the estimated value equals or exceeds the threshold concerned at
the dispatch of the EU contract notice for publication.
With prior 
publication of a EU 
contract notice.
61. A contracting authority may award public supply contracts,
by negotiated procedure with prior publication of a EU contract
notice, in the event of tenders in response to an open or restricted
procedure which are irregular or unacceptable for reasons which
are consistent with these regulations and in so far as the original
terms of the contract are not substantially altered. The contracting
authority shall in these cases publish a EU contract notice, unless
they include in such negotiated procedures all the undertakings
satisfying the criteria of regulations 42 and 45 to 48 which, during
the prior open or restricted procedure, have submitted tenders in
accordance with the formal requirements of the tendering
procedure.
Without prior 
publication of a EU 
contract notice.
62. A contracting authority may award its public supply
contracts by negotiated procedure without prior publication of a EU
38 g S.L.174.04 PUBLIC CONTRACTS
contract notice, in the following cases:
( a ) in the event that no tenders or appropriate tenders are
received in response to an open or restricted procedure
insofar as the original terms of the contract are not
substantially altered and that a report is communicated
to the Commission at its request;
( b ) when the products involved are manufactured only for
the purpose of research, experiment, study or
development but not for the purposes of establishing
commercial viability or for the recovery of research
and development costs;
( c ) when, for technical or artistic reasons, or for reasons
connected with protection of exclusive rights, the
products supplied may be manufactured or delivered
only by a particular supplier;
( d ) in so far as is strictly necessary when the time-limits
for open, restricted or negotiated procedures referred
to in regulations 36 to 38 cannot be respected for
reasons of extreme urgency occasioned by events
unforeseeable by the contracting authority provided
that the circumstances invoked to justify urgency must
not be attributable to the contracting authority;
( e ) in respect of additional deliveries by the original
supplier which are intended either as a partial
replacement of normal supplies or installations or as
the extension of existing supplies or installations
where a change of supplier would oblige the
contracting authority to acquire material having
different technical characteristics which would result
in incompatibility or disproportionate technical
difficulties in operation and maintenance. The length
of such contracts as well as that of recurrent contracts
may, as a general rule, not exceed three years.
Rejection of 
variants.
63. Contracting authorities which have admitted variants
pursuant to regulation 43 may not reject a variant on the sole
grounds that it would lead, if successful, to a service contract rather
than a public supply contract within the meaning of this regulation.
Third countries. 64. For the purposes of the award of public contracts by the
contracting authorities referred to in Schedule 1, the Department of
Contracts shall ensure that contracting authorities shall apply in
their relations conditions as favourable as those which they grant to
third countries in implementation of the WTO Agreement, in
particular those in regulations V and VI of that Agreement, on the
restricted procedure, information and review.
Section C
Public works contracts
Scope. 65. (1) Public works contracts and public works concessions
where the estimated value of the contract or concession at the
dispatch of the EU contract notice for publication is equal to or
exceeds the threshold value, shall be awarded in terms of these
PUBLIC CONTRACTS g S.L.174.04 39
regulations, save for Parts II, III, VI A, VI B and VII which shall
not apply thereto.
(2) This Part shall also apply to public works contracts issued
by an authority not being a contracting authority where those
contracts involve civil engineering activities or building work for
hospitals, facilities intended for sports, recreation and leisure,
school and university buildings or buildings used for administrative
purposes, the estimated value of which is equal to or exceeds the
threshold value, but where fifty percent or more of the value of the
public works contract is subsidised by a contracting authority.
Public works 
concession.
66. (1) Where a contracting authority concludes a public
works concession, the rules as described in regulation 44(4) to (8)
and in regulation 39 shall apply to that contract when its value is
not less than the estimated threshold:
Provided that in works contracts awarded by a works
concessionnaire other than a contracting authority, the time limit
for the receipt of requests to participate, fixed by the
concessionnaire, shall be not less than fifty-two days from the date
of dispatch of the EU notice.
(2) The contracting authority may:
( a ) either require the concessionaire to award contracts
representing a minimum of thirty percent of the total
value of the work for which the public works
concession contract is to be awarded to third parties,
and at the same time permitting tenderers the option to
increase this percentage. The minimum percentage
shall be specified in the public works concession
contract;
( b ) or request the tenderers for public works concession
contracts to specify in their tenders the percentage, if
any, of the total value of the work that they intend to
assign to third parties.
(3) When the concessionaire is itself a contracting authority it
shall comply with the provisions of these regulations in the case of
works to be carried out by third parties.
(4) A concessionaire other than a contracting authority shall
apply the EU notice rules listed in regulation 44(4), (6) to (8) and
in regulation 39, in respect of its works contracts with a value equal
to or in excess of the threshold. An EU notice is not, however,
required where public works contracts meet the circumstances
referred to in regulation 68. Undertakings that have formed a group
in order to obtain the public works concession contract, or
affiliated undertakings, shall not be regarded as third parties. A
comprehensive list of these undertakings shall be enclosed with the
application for the public works concession. This list shall be
brought up to date following any subsequent changes in the
relationship between the undertakings.
With prior 
publication.
67. A contracting authority may award its public works
contracts by negotiated procedure, with prior publication of a EU
40 g S.L.174.04 PUBLIC CONTRACTS
contract notice:
( a ) in the event of tenders in response to an open or
restricted procedure which are irregular or
unacceptable for reasons consistent with these
regulations, in so far as the original terms of the
contract are not substantially altered. In such cases a
contracting authority may refrain from publishing a
EU contract notice where it includes in the negotiated
procedure all the tenderers who satisfy the criteria of
regulations 42 and 45 to 48 and who during the
preceding open or restricted procedure have submitted
tenders in accordance with the formal requirements of
the tendering procedure;
( b ) when the works involved are carried out only for the
purpose of research, experiment or development but
not for the purposes of establishing commercial
viability or for the recovery of research and
development costs;
( c ) in exceptional cases, when the nature of the works or
the risks attaching thereto do not permit prior overall
pricing.
Without prior 
publication.
68. A contracting authority may award its public works
contracts by negotiated procedure without prior publication of a EU
contract notice:
( a ) in the event that no tenders or appropriate tenders are
received in response to an open or restricted procedure
in so far as the original terms of the contract are not
substantially altered and provided that a report is
communicated to the Commission at its request;
( b ) when, for technical or artistic reasons or for reasons
connected with the protection of exclusive rights, the
works may only be carried out by a particular
contractor;
( c ) when the time-limits for open, restricted or negotiated
procedures referred to in regulations 36 to 38 cannot
be respected for reasons of extreme urgency
occasioned by unforeseeable events. The
circumstances invoked to justify urgency must not be
attributable to the contracting authority;
( d ) for additional works not included in the project
initially considered or in the contract first concluded
but which have, through unforeseen circumstances,
become necessary for the carrying out of the work
described therein, on condition that the award is made
to the contractor carrying out such work:
(i) when such works cannot be technically or
economically separated from the main contract
without great inconvenience to the contracting
authority, or
(ii) when such works, although separable from the
PUBLIC CONTRACTS g S.L.174.04 41
execution of the original contract, are strictly
necessary to its completion:
Provided that the aggregate amount of contracts
awarded for additional works may not exceed fifty
percent of the amount of the main contract;
( e ) for new works consisting in the repetition of similar
works entrusted to the tenderer to which the same
contracting authority awarded an earlier contract,
provided that such works conform to a basic project
for which a contract was originally awarded in
accordance with the procedures referred to in
regulations 36 and 37:
Provided that where a contracting authority intends to
award a series of contracts for the same project, EU notice must
initially be given that the negotiated procedure might be adopted,
and the total estimated cost of subsequent works shall be taken into
consideration by the contracting authority when they apply the
provisions of regulation 15. This procedure may be applied solely
during the three years following the conclusion of the original
contract.
Design and 
construction of 
public housing 
contracts.
69. In the case of contracts relating to the design and
construction of a public housing scheme whose size and
complexity, and the estimated duration of the work involved,
require that planning be based from the outset on close
collaboration within a team comprising representatives of the
contracting authority, experts and the contractor to be responsible
for carrying out the works, a special award procedure may be
adopted for selecting the contractor most suitable for integration
into the team.
In particular, a contracting authority shall include in the EU
contract notice as accurate as possible a description of the works to
be carried out so as to enable interested contractors to form a valid
idea of the project.
Further, a contracting authority shall, in accordance with
regulations 42 and 45 to 48, set out in such a EU contract notice the
personal, technical and financial conditions to be fulfilled by
tenderers.
Where such procedure is adopted, a contracting authority
shall apply the common EU notice rules relating to restricted
procedures and to the criteria for qualitative selection as provided
in regulations 37, 42 and 45 to 48.
Information.
documents, or be obliged by the Director of Contracts to do so, the
authority or authorities from which a tenderer may obtain the
appropriate information on the obligations relating to the
employment protection provisions and the working conditions
which are in force in Malta, or the region or locality in which the
services are to be performed and which shall be applicable to the
performance of the contract.
42 g S.L.174.04 PUBLIC CONTRACTS
(2) A contracting authority which supplies the information
referred to in subregulation (1) shall request the tenderers to
indicate that they have taken account, when drawing up their
tender, of the obligations relating to employment protection
provisions and the working conditions which are in force in the
place where the work or the service is to be carried out or
performed. This shall be without prejudice to the application of
regulation 26 concerning abnormally low tenders.
Third countries. 71. For the purposes of the award of public contracts by
contracting authorities, the Department of Contracts shall ensure
that contracting authorities shall apply in their relations conditions
as favourable as those which they grant to third countries in
implementation of the Agreement on government procurement,
concluded in the framework of the Uruguay Round multilateral
negotiations, hereinafter referred to as ''the Agreement''. Member
States shall to this end consult each other within the Advisory
Committee for public contracts on the measures to be taken
pursuant to the Agreement.
PART VII
Public utilities contracts
Scope. 72. Where the estimated value of a public utilities contract is
equal to or exceeds the threshold value, the contract shall be
awarded in terms of these regulations, save for Parts II, III, IV, VI
A, VI B, VI C, regulations 35 to 42 of Part V which shall not apply
thereto. For this purpose, any reference to a contracting authority or
Authorities in the applicable regulations of this regulation shall be
construed as a reference to a contracting entity or entities:
Provided that the value of supplies or services which are
not necessary for the execution of a particular works contract may
not be added to that of the works contract with the result of
avoiding application of this regulation to the procurement of those
supplies or services.
Applicability. 73. (1) This Part applies exclusively to contracting authorities
and public undertakings which exercise one, or a combination of,
the activities referred to in regulation 75.
(2) This Part shall also apply to entities which although not
contracting authorities and public undertakings, exercise one, or a
combination of, the activities referred to in regulation 75 and
operate on the basis of special or exclusive rights granted by a
competent governmental body or authority.
(3) An entity other than a contracting authority or public
undertaking shall be considered to enjoy special or exclusive rights
in particular where:
( a ) for the purpose of constructing the networks or the
facilities referred to in regulation 75, it may take
advantage of a procedure for the expropriation or use
of property or may place network equipment on, under
or over public property;
PUBLIC CONTRACTS g S.L.174.04 43
( b ) in the case of regulation 75(1)( a ), the entity which
supplies with drinking water, electricity, gas or heat, a
network which itself is operated by an entity enjoying
special or exclusive rights granted by a competent
governmental body or authority.
(4) For the purposes of this Part ''special or exclusive rights''
shall mean rights deriving from authorisations granted by a
competent governmental body or authority, by law, regulation or
administrative action, having as a result the reservation for one or
more entities the exploitation of an activity defined in regulation
75.
Exempted 
activities.
74. (1) The Minister may provide that exploitation of
geographical areas for the purpose of exploring for or extracting
oil, gas, coal or other solid fuels shall not be considered to be an
activity defined in regulation 73(3)( b ) and that entities shall not be
considered as operating under special or exclusive rights within the
meaning of regulation 73(3)( b ) by virtue of carrying on one or
more of these activities, provided that all the following conditions
are satisfied with respect to the relevant national provisions
concerning such activities:
( a ) at the time when authorization to exploit such a
geographical area is requested, other entities shall be
free to seek authorization for that purpose under the
same conditions as the contracting entities;
( b ) the technical and financial capacity of entities to
engage in particular activities shall be established
prior to any evaluation of the merits of competing
applications for authorization;
( c ) authorization to engage in those activities shall be
granted on the basis of objective criteria concerning
the way in which it is intended to carry out
exploitation or extraction, which shall be established
and published prior to the requests and applied in a
non-discriminatory manner;
( d ) all conditions and requirements concerning the
carrying out or termination of the activity, including
provisions on operating obligations, royalties, and
participation in the capital or revenue of the entities,
shall be established and made available prior to the
requests for authorization being made and then applied
in a non-discriminatory manner; every change
concerning these conditions and requirements shall be
applied to all the entities concerned, or else
amendments must be made in a non-discriminatory
manner; however, operating obligations need not be
established until immediately before the authorization
is granted; and
( e ) entities shall not be required by any law, regulation,
administrative requirement, agreement or
understanding to provide information on their intended
or actual sources of procurement, except at the request
44 g S.L.174.04 PUBLIC CONTRACTS
of national authorities with a view to the objectives
mentioned in Article 30 of the EC Treaty.
(2) In the application of subregulation (1) it shall be ensured,
through the conditions of the authorization or other appropriate
measures, that any contracting entity:
( a ) observes the principles of non-discrimination and
competitive procurement in respect of the award of
supplies, works and service contracts, in particular as
regards the information which the contracting entity
makes available to undertakings concerning its
procurement intentions;
( b ) communicates to the Commission and the Department
of Contracts, under conditions to be defined by the
Commission information relating to the award of
contracts.
(3) As regards individual concessions or authorizations granted
before the date of the coming into force of this regulation,
subregulation (1)( a ), ( b ) and ( c ) shall not apply, provided that at
that date other entities are free to seek authorization for the
exploitation of geographical areas for the purpose of exploring for
or extracting oil, gas, coal or other solid fuels, on a non-
discriminatory basis and in the light of objective criteria.
Subregulation (1)( d ) shall not apply as regards conditions or
requirements established, applied or amended before the date
referred to above.
(4) The Commission shall be informed by the Department of
Contracts in the event that subregulation (1) is sought to be applied.
In so doing, it shall inform the Commission of any law, regulation
or administrative provision, agreement or understanding relating to
compliance with the conditions referred to in subregulations (1)
and (2). The Commission shall take a decision and shall publish its
decision, giving its reasons, in the Official Journal of the European
Union.
Activities. 75. (1) This Part shall apply to an entity which exercises one
of, or a combination of, the following activities:
( a ) the provision or operation of fixed networks intended
to provide a service to the public in connection with
the production, transport or distribution of:
(i) drinking water; or
(ii) electricity; or
(iii) gas or heat; or
(iv) the supply of drinking water, electricity, gas or
heat to such networks; or
( b ) the exploitation of a geographical area for the purpose
of:
(i) exploring for or extracting oil, gas, coal or other
solid fuels, or
(ii) the provision of airport, maritime or inland port
or other terminal facilities to carriers by air, sea
PUBLIC CONTRACTS g S.L.174.04 45
or inland waterway; or
( c ) the operation of networks providing a service to the
public in the field of transport by land;
For the purposes of this paragraph a transport
services network exists where the service is provided
under conditions laid down by a competent
governmental body or authority, such as conditions on
the routes to be served, the capacity to be made
available or the frequency of the service;
( d ) the provision or operation of public
telecommunications networks or the provision of one
or more public telecommunications services.
(2) The provision of bus transport services to the public shall
not be considered to be an activity for the purposes of this
regulation where the same services are provided by other entities
either in general or in a particular geographical area, under the
same condition as those of the contracting entity.
(3) The supply of drinking water, electricity, gas or heat to
networks which provide a service to the public by a contracting
entity shall be considered as a relevant activity where:
( a ) in the case of drinking water or electricity:
(i) the production of drinking water or electricity by
the entity concerned takes place because its
consumption is necessary for carrying out an
activity other than that referred to in
subregulation (1), and
(ii) when the supply to the public network depends
only on the entity’s own consumption and has
not exceeded thirty percent of the entity’s total
production of drinking water or energy, having
regard to the average for the preceding three
years, including the current year; 
( b ) in the case of gas or heat:
(i) the production of gas or heat by the entity
concerned is the unavoidable consequence of
carrying on an activity other than that referred to
in subregulation (1); and
(ii) the supply to the public network is aimed only at
the economic exploitation of such production
and amounts to not more than 20 per cent of the
entity’s turnover having regard to the average
for the preceding three years, including the
current year.
Non-applicability.
( a ) public contracts which contracting entities listed in
Schedule 4 award for the purchase of water;
( b ) public contracts which contracting entities listed in
Schedules 5 and 6 award for the supply of energy or of
fuels for the production of energy;
46 g S.L.174.04 PUBLIC CONTRACTS
( c ) public contracts or design contests which the
contracting entities award or organise for purposes
other than the pursuit of their activities as described in
regulation 75(1);
( d ) public contracts awarded for purposes of resale or hire
to third parties, provided that the contracting entity
enjoys no special or exclusive right to sell or hire the
subject of the contracts, and other entities are free to
sell or hire it under the same conditions as the
contracting entity: provided that the contracting
entities shall notify the Commission at its request of
any activities they regard as excluded under this
subregulation;
( e ) public contracts, which a contracting entity exercising
activities described in regulation 75(1)( d ) award, for
purchases intended exclusively to enable them to
provide one or more telecommunications services
where other entities are free to offer the same services
in the same geographical area and under substantially
the same conditions; provided that the contracting
entities shall notify the Commission at its request of
any activities they regard as excluded under this
subregulation;
( f ) public service contracts, which a contracting entity
awards to an affiliated undertaking;
( g ) public service contracts, which are awarded by a joint
venture formed by a number of contracting entities for
the purpose of carrying out a relevant activity within
the meaning of regulation 75, to one of the contracting
entities or to an affiliated undertaking: provided that at
least 80% of the average turnover of that undertaking
with respect to services arising within the Community
for the preceding three years derives from the
provision of such services to undertakings with which
it is affiliated.
(2) Where more than one undertaking affiliated with the
contracting entity provides the same service or similar services, the
total turnover deriving from the provision of services by those
undertakings shall be taken into account.
Framework 
agreements.
77. (1) A contracting entity may regard a framework
agreement as a public contract.
(2) Awards of contracts issued under a framework agreement
may be made pursuant to regulation 84.
(3) A contracting entity may not use framework agreements in
order to hinder, limit or distort competition.
Two-tier 
application.
78. Public contracts which have as their object services listed
in Schedules 8A and 8B shall be awarded in accordance with the
provisions of regulation 52.
Contracts or design 
contests.
79. (1) This Part shall not apply to contracts or design
PUBLIC CONTRACTS g S.L.174.04 47
contests which the contracting entities award or organize for the
pursuit of their activities as described in regulation 75 in a non-
Member State country, in conditions not involving the physical use
of a network or geographical area within the Community:
Provided that the contracting entities shall notify the
Commission at its request of any activities they regard as excluded
under this subregulation.
(2) This Part shall apply to contracts or design contests
awarded or organised by the entities which exercise an activity
referred to in regulation 75(1)( a )(i) and which:
( a ) are connected with hydraulic engineering projects,
irrigation or land drainage, provided that the volume
of water intended for the supply of drinking water
represents more than 20 per cent of the total volume of
water made available by these projects or irrigation or
drainage installations, or
( b ) are connected with the disposal or treatment of
sewage.
(3) In the award of design contests under this Part, regulation
53 shall apply  mutatis mutandis .
Technical 
specifications.
80. (1) Contracting entities shall include the technical
specifications in the general documents or the contract documents
relating to each contract.
(2) The technical specifications shall be defined by reference to
European specifications, as defined in regulation 42, where these
exist.
(3) In the absence of European specifications, the technical
specifications should as far as possible be defined by reference to
other standards having currency within the Community.
(4) Contracting entities shall define such further requirements
as are necessary to complete European specifications or other
standards. In so doing, they shall prefer specifications which
indicate performance requirements rather than design or
description characteristics, unless the contracting entity has
objective reasons for considering that such specifications are
inadequate for the purposes of the contract.
(5) Technical specifications which mention goods of a specific
make or source or of a particular process, and which have the effect
of favouring or eliminating certain undertakings, shall not be used
unless such specifications are indispensable for the subject of the
contract. In particular, the indication of trade marks, patents, types,
of specific origin or production shall be prohibited; however, such
an indication accompanied by the words ''or equivalent'' shall be
authorized where the subject of the contract cannot otherwise be
described by specifications which are sufficiently precise and fully
intelligible to all concerned.
(6) Contracting entities may derogate from subregulation (2) if:
( a ) it is technically impossible to establish satisfactorily
48 g S.L.174.04 PUBLIC CONTRACTS
that a product conforms to the European
specifications;
( b ) the application of subregulation (2) would prejudice
the application of Council Directive 86/361/EEC of 24
July 1986 on the initial stage of the mutual recognition
of type approval for telecommunications terminal
equipment, or of Council Decision 87/95/EEC of 22
December 1986 on standardization in the field of
information technology and telecommunications;
( c ) in the context of adapting existing practice to take
account of European specifications, use of those
specifications would oblige the contracting entity to
acquire supplies incompatible with equipment already
in use or would entail disproportionate cost or
disproportionate technical difficulty. Contracting
entities which have recourse to this derogation shall do
so only as part of clearly-defined and recorded strategy
with a view to a changeover to European
specifications;
( d ) the relevant European specification is inappropriate
for the particular application or does not take account
of technical developments which have come about
since its adoption. Contracting entities which have
recourse to this derogation shall inform the appropriate
standardizing organization, or any other body
empowered to review the European specification, of
the reasons why they consider the European
specification to be inappropriate and shall request its
revision;
( e ) the project is of a genuinely innovative nature for
which use of European specifications would not be
appropriate.
(7) EU notices published pursuant to regulation 82(1)( a ) or
regulation 82(2)( a ) shall indicate any recourse to the derogations
referred to in subregulation (6).
(8) This regulation shall be without prejudice to compulsory
technical rules in Malta in so far as these are compatible with
Community Law.
Availability of 
technical 
specifications.
81. (1) Contracting entities shall make available on request to
suppliers, contractors or service providers interested in obtaining a
contract the technical specifications regularly referred to in their
supply, works or service contracts or the technical specifications
which they intend to apply to contracts covered by EU prior
information notices within the meaning of regulation 44.
(2) Where such technical specifications are based on
documents available to interested suppliers, contractors or service
providers, a reference to those documents shall be sufficient.
Call for 
competition.
82. (1) In the case of supplies, works or service contracts, the
call for competition may be made:
PUBLIC CONTRACTS g S.L.174.04 49
( a ) by means of a EU contract notice drawn up in
accordance with Schedule 10 ''Utilities''; or
( b ) by means of a EU periodic indicative notice drawn up
in accordance with Schedule 10 ''Utilities'', provided
the periodic indicative notice, issued in terms of
regulation 82A, was published not more than twelve
months prior to dispatch of the invitation to confrim
interest in accordance with subregulation (2)( c ); or
( c ) by means of a EU notice on the existence of a
qualification system drawn up in accordance with
Schedule 10 ''Utilities''.
(2) When a call for competition is made by means of a periodic
indicative EU notice:
( a ) the EU notice must refer specifically to the supplies,
works or services which will be the subject of the
contract to be awarded;
( b ) the EU notice must indicate that the contract will be
awarded by restricted or negotiated procedure without
further publication of a EU notice of a call for
competition and invite interested undertakings to
express their interest in writing;
( c ) contracting entities shall subsequently invite all
candidates to confirm their interest on the basis of
detailed information on the contract concerned before
beginning the selection of tenderers or participants in
negotiations, provided the deadline of requests to
participate shall in general be at least five weeks from
the date of dispatch of the invitation and shall in any
case not be less than twenty-two days from that date
and not less than fifteen days if the invitation is sent
by telex, facsimile or electronic means.
(3) When a call for competition is made by means of a EU
notice on the existence of a qualification system, tenderers in a
restricted procedure or participants in a negotiated procedure with a
call for competition shall be selected from the qualified candidates
in accordance with such a system.
(4) In the case of design contests, the call for competition shall
be made by means of a EU notice drawn up in accordance with
Schedule 10 ''Utilities''.
(5) The EU notices referred to in this regulation shall be
dispatched to the Official Journal of the European Union.
(6) Regulation 44(1), 44(2), 44(3), and 44(10) to 44(15) shall
not apply hereto.
Prior indicative 
notice.
82A. (1) Contracting entities shall make known, at least once a
year, by means of a periodic indicative notice:
( a ) in the case of supply contracts, the total of the
contracts for each product area of which the estimated
value, is equal to or greater than EURO 750,000, and
which they intend to award over the following twelve
50 g S.L.174.04 PUBLIC CONTRACTS
months;
( b ) in the case of works contracts, the essential
characteristics of the works contracts which the
contracting entities intend to award and which fall
within the preview of Schedule 9, regulation 4( a )(ii),
4( b )(iii) and 4( c )(ii);
( c ) in the case of service contracts, the estimated total
value of the service contracts in each of the categories
of services listed in Schedule 8 A which they intend to
award over the following twelve months, where such
estimated total value is equal to or greater than EURO
750,000.
(2) The notice shall be drawn up in accordance with Schedule
10 and published in the Official Journal of the European
Communities and the Gazette.
Procedure. 83. Contracting entities shall award their contracts under this
Part through either open, restricted or negotiated procedure with a
call for competition provided a call for competition has been made
by means of an EU notice.
Without prior call 
for competition.
84. Contracting entities may use the negotiated procedure
without prior call for competition in the following cases:
( a ) in the absence of the receipt of tenders or of compliant
tenders in response to a procedure with a prior call for
competition, provided that the original contract
conditions have not been substantially changed;
( b ) when the products involved are manufactured only for
the purpose of research, experiment, study or
development but not for the purposes of establishing
commercial viability or for the recovery of research
and development costs and in so far as the award of
such contract does not prejudice the competitive award
of subsequent contracts which have in particular these
purposes;
( c ) when, for technical or artistic reasons or for reasons
connected with protection of exclusive rights, the
contract may be executed only by a particular supplier,
contractor or service provider;
( d ) insofar as is strictly necessary, when the time-limits
for open, restricted or negotiated procedures referred
to in regulations 36 to 38 cannot be respected for
reasons of urgency occasioned by unforeseeable
events. The circumstances invoked to justify urgency
must not be attributable to the contracting entity;
( e ) in the case of supply contracts for additional deliveries
by the original supplier which are intended either as a
partial replacement of normal supplies or installations
or as the extension of existing supplies or installations,
where a change of supplier would oblige the
contracting entity to acquire material having different
technical characteristics which would result in
PUBLIC CONTRACTS g S.L.174.04 51
incompatibility or disproportionate technical
difficulties in operation and maintenance;
( f ) for additional works or services not included in the
project initially awarded or in the contract first
concluded but which have, through unforeseen
circumstances, become necessary for the execution of
the contract, on condition that the award is made to the
contractor or service provider executing the original
contract:
(i) when such additional works or services cannot
be technically or economically separated from
the main contract without great inconvenience to
the contracting entity;
(ii) or when such additional works or services,
although separable from the execution of the
original contract, are strictly necessary to its
completion;
( g ) for new works consisting in the repetition of similar
works entrusted to the tenderer to which the same
contracting entity awarded an earlier contract,
provided that such works conform to a basic project
for which a contract was originally awarded in
accordance with the procedures referred to in
regulation 83:
Provided that where a contracting entity intends to
award a series of contracts for the same project, EU
notice must initially be given that the negotiated
procedure might be adopted, and the total estimated
cost of subsequent works shall be taken into
consideration by the contracting entity when they
apply the provisions of regulation 15. This procedure
may be applied solely during the three years following
the conclusion of the original contract;
( h ) for supplies quoted and purchased on a commodity
market;
( i ) for contracts to be awarded on the basis of a
framework agreement, provided that the conditions
referred to in regulation 77 are fulfilled;
( j ) for bargain purchases, where it is possible to procure
supplies taking advantage of a particularly
advantageous opportunity available for a very short
space of time at a price considerably lower than
normal market prices;
( k ) for purchases of goods under particularly
advantageous conditions from either a supplier
definitively winding up his business activities or
liquidator of a bankruptcy, an arrangement with
creditors or a similar procedure;
( l ) where the contract concerned is awarded subsequent to
a design contest and must be awarded to one or more
successful tenderers, in which case they shall be
52 g S.L.174.04 PUBLIC CONTRACTS
invited to participate in the negotiations.
Call for 
competition.
84A. (1) In open procedures the time limit for the receipt of
tenders shall be fixed by contracting entities at not less than fifty-
two days from the date of dispatch of the notice. This time limit
may be shortened to thirty-six days where contracting entities have
published a periodic indicative notice.
(2) In restricted procedures and in negotiated procedures with a
prior call for competition, the following arrangements shall apply:
( a ) the time limit for receipt of requests to participate, in
response to an EU notice or in response to a Notice on
the Existence of a Qualification System from a
contracting entity, shall, as a general rule, be at least
five weeks from the date of dispatch of the notice or
invitation and shall in any case not be less than not
later than twenty-two days after their dispatch or
within fifteen days in response to a request by the
contracting entity and provided that the notice has
been sent to the office by electronic mail, telex or
telefax;
( b ) the time limit for receipt of tenders may be fixed by
mutual agreement between the contracting entity and
the selected candidates, provided that all tenderers are
given equal time to prepare and submit tenders;
( c ) where it is not possible to reach agreement on the time
limit for the receipt of tenders, the contracting entity
shall fix a time limit which shall, as a general rule, be
at least three weeks and shall in any case not be less
than ten days from the date of the invitation to tender;
the time allowed shall be sufficiently long to take
account in particular of the factors mentioned in
regulation 84B(3).
Supply of 
documents.
84B. (1) Provided that they have been requested in good time,
the contract documents and supporting documents must be sent to
the suppliers, contractors or service providers by the contracting
entities as a general rule within six days of receipt of the
application.
(2) Provided that it has been requested in good time, additional
information relating to the contract documents shall be supplied by
the contracting entities not later than six days before the final date
fixed for receipt of tenders.
(3) Where tenders require the examination of voluminous
documentation such as lengthy technical specifications, a visit to
the site or an on-the-spot inspection of the documents supporting
the contract documents, this shall be taken into account when the
appropriate time limits are fixed.
(4) Contracting entities shall invite the selected candidates
simultaneously and in writing. The letter of invitation shall be
accompanied by the contract documents and supporting documents.
It shall include at least the following information:
( a ) the address from which any additional documents can
PUBLIC CONTRACTS g S.L.174.04 53
be requested, the final date for such requests and the
amount and methods of payment of any sum to be paid
for such documents;
( b ) the final date for receipt of tenders, the address to
which they must be sent and the language or languages
in which they must be drawn up;
( c ) a reference to any tender notice published;
( d ) an indication of any document to be annexed;
( e ) the criteria for the award of the contract if these are
not given in the notice;
( f ) any other special condition for participation in the
contract.
(5) Requests for participation in contracts and invitations to
tender must be made by the most rapid means of communication
possible. When requests to participate are made by telegram, telex,
telephone or any electronic means, they must be confirmed by letter
dispatched before the expiry of the time limit referred to in
regulation 84A(1) or of the time limit set by contracting entities
pursuant to regulation 84A(2).
Information.
documents, or be obliged by the Director of Contracts to do so, the
authority or authorities from which a tenderer may obtain the
appropriate information on the obligations relating to the
employment protection provisions and the working conditions
which are in force in Malta, or the region or locality in which the
services are to be performed and which shall be applicable to the
performance of the contract.
(2) A contracting entity which supplies the information
referred to in subregulation (1) shall request the tenderers to
indicate that they have taken account, when drawing up their
tender, of the obligations relating to employment protection
provisions and the working conditions which are in force in the
place where the work or the service is to be carried out or
performed. This shall be without prejudice to the application of
regulation 89(5) and (6) concerning the examination of abnormally
low tenders.
Qualification 
criteria.
86. (1) In the determination of an award, a contracting entity
may establish and operate a system of objective qualification of
candidates together with the criteria laid down in regulation 45 to
48.
(2) The criteria and rules for qualification shall be made
available on request to interested candidates. The updating of these
criteria and rules shall be communicated to the interested
candidates. Where a contracting entity considers that the
qualification system of certain third entities or bodies meets its
requirements, it shall communicate to interested candidates the
names of such third entities or bodies.
(3) A contracting entity shall inform candidates of their
decision as to qualification within a reasonable period. If the
54 g S.L.174.04 PUBLIC CONTRACTS
decision will take longer than six months from the presentation of
an application, the contracting entity shall inform the candidate,
within two months of the application, of the reasons justifying a
longer period and of the date by which its application will be
accepted or refused.
(4) In reaching their decision as to qualification or when the
criteria and rules are being updated, a contracting entity may not:
( a ) impose conditions of an administrative, technical or
financial nature on some suppliers, contractors or
service providers which are not imposed on others,
( b ) require tests or proof which duplicate objective
evidence already available.
(5) Candidates whose qualification is refused shall be informed
of this decision together with the reasons for refusal within fifteen
days from the date of the decision. The reasons, where applicable
according to this regulation, must be based on the criteria for
qualification referred to in subregulation (1).
(6) A written record of qualified candidates shall be kept and it
may be divided into categories, according to the type of contract for
which the qualification is valid.
(7) A contracting entity may remove the qualification of an
candidate, only for reasons based on the criteria referred to in
subregulation (2). The intention to bring qualification to an end
must be notified in writing to the candidate beforehand, together
with the reason or reasons justifying the proposed action.
(8) The qualification system shall be the subject of an EU
notice. Where the system is of a duration greater than three years,
the EU notice shall be published annually.
Certificates. 87. (1) Should contracting entities require the production of
certificates drawn up by independent bodies for attesting
conformity of the service provider to certain quality assurance
standards, they shall refer to quality assurance systems based on the
relevant EN 29 000 European standards series certified by bodies
conforming to the EN 45000 European standards series.
(2) Contracting entities shall recognize equivalent certificates
from bodies established in other Member States. They shall also
accept other evidence of equivalent quality assurance measures
from service providers who have no access to such certificates or
no possibility of obtaining them within the relevant time limits.
Groupings of 
tenderers.
88. (1) Groupings of suppliers, contractors or service
providers shall be permitted to tender or negotiate.
(2) The conversion of such groupings into a specific legal form
shall not be required in order to submit a tender or to negotiate, but
the grouping selected may be required so to convert itself once it
has been awarded the contract where such conversion is necessary
for the proper performance of the contract.
(3) Candidates or tenderers who, under the law of the Member
State in which they are established, are entitled to carry out the
PUBLIC CONTRACTS g S.L.174.04 55
relevant service activity shall not be rejected on the sole ground
that under the law of the Member State in which the contract is
awarded they would have been required to be either a natural or a
legal person.
(4) However, legal persons may be required to indicate, in the
tender or the request for participation, the names and relevant
professional qualifications of the staff to be responsible for the
performance of the service.
Award criteria.
administrative provisions on the remuneration of certain services,
the criteria on which the contracting entities shall base the award of
contracts shall be:
( a ) the most economically advantageous tender, involving
various criteria depending on the contract in question,
such as delivery or completion date, running costs,
cost-effectiveness, quality, aesthetic and functional
characteristics, technical merit, after-sales service and
technical assistance, commitments with regard to spare
parts, security of supplies and price; or
( b ) the lowest price only.
(2) In the case referred to in subregulation (1)( a ), contracting
entities shall state in the contract documents or in the EU contract
notice all the criteria which they intend to apply to the award,
where possible in descending order of importance.
(3) Where the criterion for the award of the contract is that of
the most economically advantageous tender, contracting entities
may take account of variants which are submitted by a tenderer and
meet the minimum specifications required by the contracting
entities. Contracting entities shall state in the contract documents
the minimum specifications to be respected by the variants and
specific requirements for their presentation. Where variants are not
permitted, they shall so indicate in the contract documents.
(4) Contracting entities may not reject the presentation of a
variant on the sole ground that it was drawn up on the basis of
technical specifications defined with reference to European
specifications or to national technical specifications recognized as
complying with the essential requirements within the meaning of
Directive 89/106/EEC.
(5) If, for a given contract, tenders appear abnormally low in
relation to the provision of services, the contracting entity shall,
before it may reject those tenders, request in writing details of the
constituent elements of the tender which it considers relevant and
shall verify those constituent elements taking account of the
explanations received. It may set a reasonable period within which
to reply. The contracting entity may take into consideration
explanations which are justified on objective grounds relating to
the economy of the construction or production method, or the
technical solutions chosen, or the exceptionally favourable
conditions available to the tenderer for the execution of the
contract, or the originality of the product or the work proposed by
56 g S.L.174.04 PUBLIC CONTRACTS
the tenderer.
(6) Contracting entities may reject tenders which are
abnormally low owing to the receipt of State aid only if they have
consulted the tenderer and if the tenderer has been unable to show
that the aid in question has been notified to the Commission
pursuant to Article 88(3) of the EEC Treaty or has received the
Commission’s approval. Contracting entities which reject a tender
under these circumstances shall inform the Commission thereof.
Third countries. 90. (1) This regulation shall apply to tenders comprising
products originating in third countries with which the Community
has not concluded, multilaterally or bilaterally, an agreement
ensuring comparable and effective access for community
undertakings to the markets of those third countries. It shall be
without prejudice to the obligations of the Community or its
Member States in respect of third countries.
(2) Any tender made for the award of a supply contract may be
rejected where the proportion of the products originating in third
countries, as determined in accordance with Council regulation
(EEC) No 802/68 of 27 June 1968 on the common definition of the
concept of the origin of goods, exceeds 50% of the total value of
the products constituting the tender.
For the purposes of this regulation, software used in
telecommunications network equipment shall be considered as
products.
(3) Subject to subregulation (4), where two or more tenders are
equivalent in the light of the award criteria defined in regulation
89, preference shall be given to the tenders which may not be
rejected pursuant to subregulation (2). The prices of these tenders
shall be considered equivalent for the purposes of this regulation, if
the price difference does not exceed three per cent.
(4) However, a tender shall not be preferred to another
pursuant to subregulation (3) where its acceptance would oblige the
contracting entity to acquire material having technical
characteristics different from those of existing material, resulting
in incompatibility or technical difficulties in operation and
maintenance or disproportionate costs.
(5) For the purpose of this regulation, those third countries to
which the benefit of the provisions of this regulation has been
extended by a Council Decision in accordance with subregulation
(1) shall not be taken into account for determining the proportion
referred to in subregulation (2) of products originating in third
countries.
(6) The Commission shall submit an annual report to the
Council on progress made in multilateral or bilateral negotiations
regarding access for community undertakings to the markets of
third countries in the fields covered by this Part, on any result
which such negotiations may have achieved and on the
implementation in practice of all the agreements which have been
concluded.
PUBLIC CONTRACTS g S.L.174.04 57
Information to 
Commission.
91. The Department of Contracts shall inform the Commission
of any general difficulties encountered, in law or in fact, by Malta
undertakings in securing the award of service contracts in third
countries.
Information to be 
kept.
92. (1) Contracting entities shall keep appropriate information
on each contract which shall be sufficient to permit them at a later
date to justify decisions taken in connection with:
( a ) the qualification and selection of contractors, suppliers
or service providers and award of contracts;
( b ) recourse to derogations from the use of European
specifications in accordance with regulation 80;
( c ) use of procedures without prior call for competition in
accordance with regulation 84;
( d ) the non-application of the relevant provisions of this
regulation in accordance with regulation 74, 76 and
79.
(2) The information shall be kept for at least four years from
the date of award of the contract so that the contracting entity will
be able, during that period, to provide the necessary information to
the Commission if the latter so requests.
Statistical report.
information from the entities concerned, shall ensure, that the
Commission receives each year a statistical report concerning the
total value of the contracts awarded below the thresholds which
would, if they were not below those thresholds, be covered by this
regulation, broken down by Member State and each of the
following categories:
( a ) production, transport or distribution of drinking water;
( b ) production, transport or distribution of electricity;
( c ) transport or distribution of gas or heat;
( d ) exploration for and extraction of oil or gas;
( e ) exploration for and extraction of coal or other solid
fuels;
( f ) railway services;
( g ) urban railway, tramway, trolleybus or bus services;
( h ) airport facilities;
( i ) maritime or inland port or other terminal facilities;
( j ) operation of telecommunications networks or
provision of telecommunications services.
Attestation system.
attestation system hereunder.
(2) Contracting entities may have their contract award
procedures and practices which fall within the scope of this Part
examined periodically with a view to obtaining an attestation that,
at that time, those procedures and practices are in conformity with
Community law concerning the award of contracts and the national
58 g S.L.174.04 PUBLIC CONTRACTS
rules implementing the law.
(3) Attestors shall report to the contracting entity, in writing,
on the results of their examination. They shall satisfy themselves,
before delivering to the contracting entity the attestation that any
irregularities identified in the contracting entity’s award procedures
and practices have been corrected and measures have been taken to
ensure that those irregularities are not repeated.
(4) Contracting entities having obtained that attestation may
include the following statement in the EU notice published in the
Official Journal of the European Union:
''The Contracting Entity has obtained an attestation in
accordance with Council Directive 92/13/EEC that, on
(date), its contract award procedures and practices
were in conformity with Community law and the
national rules implementing that law.''.
(5) Attestors shall be independent of the contracting entities
and must be completely objective in carrying out their duties. They
shall offer appropriate guarantees of relevant professional
qualifications and experience.
(6) The Department of Contracts shall identify any persons,
professions or institutions whose staff, called upon to act as
attestors, they regard as fulfilling the requirements of subregulation
(5). For these purposes, the Department of Contracts may require
professional qualifications, at least at the level of a higher
education diploma within the meaning of Directive 89/48/EEC(8),
which they regard as relevant, or provide that particular
examinations of professional competence organized or recognized
by the State offer such guarantees.
Conciliation. 95. (1) Any person having or having had an interest in
obtaining a particular contract falling within the scope of this Part
and who, in relation to the procedure for the award of that contract,
considers that he has been or risks being harmed by an alleged
infringement of Community law in the field of procurement or
national rules implementing that law may request the application of
the conciliation procedure provided for in regulations 96 and 97.
(2) The request referred to in subregulation (1) shall be
addressed in writing to the Commission.
Application of 
Community Law.
96.  (1) Where the Commission considers, on the basis of the
request referred to in regulation 95, that the dispute concerns the
correct application of Community law, it shall ask the contracting
entity to state whether it is willing to take part in the conciliation
procedure applying subregulations (2) to (7). If the contracting
entity declines to take part, the Commission shall inform the person
who made the request that the procedure cannot be initiated.
(2) The Commission shall propose, as quickly as possible, a
conciliator drawn from a list of independent persons accredited for
this purpose. This list shall be drawn up by the Commission,
following consultation of the Advisory Committee for public
contracts or, in the case of contracting entities the activities of
PUBLIC CONTRACTS g S.L.174.04 59
which are defined in regulation 75(1)( d ), following consultation of
the Advisory Committee on Telecommunications Procurement.
Each party to the conciliation procedure shall declare
whether it accepts the conciliator, and shall designate an additional
conciliator. The conciliators may invite not more than two other
persons as experts to advise them in their work. The parties to the
conciliation procedure and the Commission may reject any expert
invited by the conciliators.
(3) The conciliators shall give the person requesting the
application of the conciliation procedure, the contracting entity and
any other candidate or tenderer and any person having or having
had an interest in obtaining the particular public contract
participating in the relevant contract award procedure the
opportunity to make representations on the matter either orally or
in writing.
(4) The conciliators shall endeavour as quickly as possible to
reach an agreement between the parties which is in accordance with
Community Law.
(5) The conciliators shall report to the Commission on their
findings and on any result achieved.
(6) The person requesting the application of the conciliation
procedure and the contracting entity shall have the right to
terminate the procedure at any time.
(7) Unless the parties decide otherwise, the person requesting
the application of the conciliation procedure and the contracting
entity shall be responsible for their own costs. In addition, they
shall each bear half of the costs of the procedure, excluding the
costs of intervening parties.
Judicial review.
procedure, an interested person within the meaning of regulation
95, other than the person requesting the conciliation procedure, is
pursuing judicial review proceedings or other proceedings for
review within the meaning of this regulation, the contracting entity
shall inform the conciliators. The conciliators shall inform that
person that a request has been made to apply the conciliation
procedure and shall invite that person to indicate within a given
time limit whether he agrees to participate in that procedure. If that
person refuses to participate, the conciliators may decide, acting if
necessary by a majority, to terminate the conciliation procedure if
they consider that the participation of this person is necessary to
resolve the dispute. They shall notify their decision to the
Commission and give the reasons for it.
(2) Action taken pursuant to this regulation and regulation 93
shall be without prejudice to:
( a ) any action that the Commission or any Member State
might take pursuant to Articles 226 or 227 of the
Treaty or pursuant to any other remedy provided under
this regulation;
( b ) the rights of the persons requesting the conciliation
60 g S.L.174.04 PUBLIC CONTRACTS
procedure, of the contracting entity or of any other
person.
PART VIII
Variation Orders
Contracts awarded 
by authorities 
listed in Schedule 
2.
98. (1) ( a ) Without prejudice to the provisions of Parts IV, V,
VI A, VI B and VI C, in all cases where variation
orders individually or in their totality exceed by
more than five per centum the awarded contract
value, the prior approval of the Director is to be
sought before a commitment is made by the
contracting authority with the contractor.
( b ) When requesting such an approval, the contracting
authority shall present a document specifying the
background to the cause of such a variation, the
effect on the total cost of the tender and any effect
on the recurrent expenditure that will ensue.
( c ) When granting or refusing such a request for
variation, the Director shall specify his view as to
whether such a variation could have been avoided
and the procedure to be followed in future by the
contracting authority to avoid a recurrence.
( d ) The Director is to keep a full record of variation
requests, including the name of the contractor
involved and details of the documents specified in
paragraphs ( b ) and ( c ).
Contracts awarded 
by authorities 
listed in Schedule 
3.
(2) Approval for variations, having a financial effect as
indicated in subregulation (1)( a ) on contracts awarded by
contracting authorities listed in Schedule 3, shall require the prior
approval of the Minister responsible for that authority who may
delegate his authority in writing to the Parliamentary Secretary, the
Permanent Secretary or the Head of the authority concerned:
Provided that a list of all variations catered for under this
Part is to be published in the Gazette every six months by the
Director and by Heads of contracting authorities.
PART IX
Contracts Committees
Contracts 
Committees.
99. (1) The Contracts Committees, referred to in regulations 8
and 9, shall be composed of the Director of Contracts, who shall be
ex officio  Chairman, together with not less than four and not more
than ten other members who appear to the Prime Minister to have
the relevant qualifications or experience.
(2) The Prime Minister shall also appoint persons from among
the staff at the Department of Contracts to act as secretaries of
these committees as may be directed by the Director. The
secretaries shall not be members of these committees and may not
vote thereat.
PUBLIC CONTRACTS g S.L.174.04 61
(3) During the Chairman’s absence or inability to act as
Chairman, or during any vacancy in the office of the Chairman, the
Prime Minister may appoint an officer from among the most senior
of officers at the Department of Contracts to act as the Chairman of
the Committees, to exercise all powers and perform all the
functions of the Chairman.
(4) A person shall be disqualified from being appointed to and
from remaining a member of a Committee if he:
( a ) is a member of the House of Representatives; or
( b ) has such a financial or other interest as is likely to
prejudice the discharge of his functions as a member
of the Contracts Committees.
(5) A member of either of these committees may resign his
office by letter addressed to the Prime Minister.
(6) A member of either committee who has any direct or
indirect interest in any contract dealt with by such committee shall
disclose the nature of his interest at the first meeting of that
committee after the relevant facts have come to his knowledge;
such disclosure shall be recorded in the minutes of that meeting of
the committee and the member having an interest as aforesaid shall
withdraw from any meetings at which such contract is discussed.
(7) The provisions of regulation 104(9) shall apply  mutatis
mutandis  to the Contract Committees.
PART X
Functions of the Contracts Committees
Functions of the 
Contracts 
Committees.
100. The Contracts Committees shall:
( a ) advise on all matters relating to public contracts, as
well as on public procurement of materials, works and
services either on their own initiative or on specific
issues relating to its functions which may from time to
time be referred to it for its advice;
( b ) evaluate reports and recommendations submitted by
contracting authorities and make definite
recommendations for the award of contracts ensuring
that the best value for money at the lowest possible
cost is attained. In this regard, due consideration shall
be given to -
(i) the final cost including financing costs to the
contracting authority, and
(ii) the impact of each offer on the recurrent
expenditure of a contracting authority;
( c ) report any irregularities that may be brought to its
notice or that may be detected in the tendering process
and make recommendations thereon to the Minister
charged with responsibility for the contracting
authority concerned;
( d ) deal with matters which, according to the contract,
62 g S.L.174.04 PUBLIC CONTRACTS
have to be referred to the Contracts Committee, and
hear and determine disputes between contracting
authorities as the case may be, and contractors, arising
out of public contracts; and
( e ) formally investigate complaints concerning public
contracts and procurements and make
recommendations thereon:
Provided that such complaints are not the subject
of a separate inquiry or investigation by the Director in
the exercise of his functions or else have to be heard
and determined by the Appeals Board.
PART XI
Procurement Committees
Procurement 
Committees.
101. (1) The Minister may authorise the setting up of
committees, to be known as Procurement Committees, in respect of
tenders whose estimated value exceeds Lm 20,000.
(2) Each Procurement Committee shall be composed of the
head of the department, or, in his absence, an officer appointed by
the Minister from among the most senior of officials at the
contracting authority effecting the purchase. This nominee shall be,
ex officio , Chairman of the Committee together with not less than
four other members appointed by the Minister, none of whom shall
be performing duties at or be members of the staff of the
department effecting the purchase.
(3) The provisions of regulations 8, 10(2), 10(3), 10(4), 13, 95
and 96 shall apply  mutatis mutandis  to the setting up and the
functions of each Procurement Committee, its Chairman and its
members.
PART XII
Separate packages in tender offer
Separate packages 
in tender offer.
102. (1) Contracting authorities listed in Schedule 1 shall
ensure that for all tenders with an estimated value of over
Lm250,000 or, at the discretion of the Director of Contracts, on
tenders of a lower estimated value, the tender conditions stipulate
that tenders shall only qualify for consideration if they are
submitted in separate packages as follows:
( a ) Package One: an original and valid tender bond (Bid
Bond), duly executed in the form, for the amount and
for the validity period stipulated in the official tender
document;
( b ) Package Two: technical specifications including
supportive literature, details, designs, samples and any
other matter as requested in the tender documents; and
( c ) Package Three: completed price schedules and, or bills
of quantities, form of tender, payment terms or other
financial arrangements; any covering letter which may
provide other pertinent details of a commercial nature.
PUBLIC CONTRACTS g S.L.174.04 63
(2) In the process of adjudicating the tender, the packages for
all tenderers shall be opened in public and in the sequence
enumerated in the immediately preceding sub-regulation. When at
any stage, any tenderer fails to comply with the tendering
procedural requirements and, or with the specifications, the
remaining packages in his tender offer are to be discarded
unopened:
Provided that the Director of Contracts or, with his
authorization, any contracting authority, shall have the right to seek
clarifications on points of a technical nature to enable a proper
evaluation of any tender, which, however, would at that stage have
already been declared to be basically compliant.
(3) Any decision leading to the discarding of any tender during
any stage of the process is to be given publicity at the office of the
contracting authority or at the Department of Contracts as the case
may be and the affected tenderer is to be informed of the decision
within two working days of its publication.
(4) A complaint by the affected tenderer and any person having
or having had an interest in obtaining a particular public contract
must reach the Department of Contracts or the contracting authority
involved, as the case may be, within four working days from the
date of notification of the decision and such complaint shall be
accompanied by a deposit of 0.5% of the estimated tender value,
which deposit shall only be refundable if the Appeals Board finds
in the tenderer’s or other person having or having had an interest in
obtaining a particular public contract’s favour:
Provided that the deposit shall in no case be less than
Lm250 or more than Lm 25,000.
(5) The review is to be effected by the public contracts Appeals
Board before the next stage of the adjudication process is
commenced.
(6) The procedure to be followed by the Board when carrying
out the review shall consist in a complete and detailed re-
examination of the reasons brought forward by the adjudication
board of any department or contracting authority for the discarding
of any particular tender.
(7) In fulfilling this obligation the Chairman of the Appeals
Board shall have the right to put appropriate questions to the Head
of any department or contracting authority as well as the members
of the respective adjudication boards and to have recourse to all
pertinent documentation.
(8) The Chairman of the Appeals Board shall also have the
right to seek expert advice from outside the department or
contracting authority involved.
(9) The decision of the Board shall be final and binding on all
parties and the award procedure shall proceed in accordance with
its decision.
(10) Any tenderer or any other person having or having had an
interest in obtaining a particular public contract whose complaint
under this Part is not upheld shall not have the right to have
64 g S.L.174.04 PUBLIC CONTRACTS
recourse to the procedure for appeals as provided for in Part XIII:
Provided that the right of appeal under Part XIII shall be
available to those tenderers whose offer reaches the final stage of
the award procedure, that is, the opening and the publication of the
financial proposals.
PART XIII
Procedure for the submission of appeals
Procedure for the 
submission of 
appeals.
103. (1) Any tenderer who feels aggrieved by a proposed
award of a contract and any person having or having had an interest
in obtaining a particular public supply, public service or public
works contract and who has been or risks being harmed by an
alleged infringement may, within fourteen working days of the
publication of the decision, file a notice of objection at the
Department of Contracts or the contracting authority involved as
the case may be. Such a notice of objection shall only be valid if
accompanied by a deposit equivalent to one per centum of the
estimated tender value, provided that in no case shall the deposit be
less than Lm 200 or more than Lm 25,000. The Head of a
contracting authority shall immediately notify the Director that an
objection had been filed with his authority thereby immediately
suspending the award procedure.
(2) The procedure to be followed in submitting and
determining complaints as well as the conditions under which such
complaints may be filed shall be the following:
( a ) Any decision by the General Contracts Committee (or
a Special Contracts Committee) and by a contracting
authority, shall be made public at the Department of
Contracts or at the office of the contracting authority
prior to the award of the contract.
( b ) The notice of objection duly filed in accordance with
subregulation (1) shall be made public by not later
than the next working day following its filing.
( c ) Within three working days of the expiry of the
fourteen-day period allowed for the filing of a notice
of objection, any other tenderer and any person having
or having had an interest involved in the call for
tenders may register an interest in the proceedings.
The registration of interest shall only be valid if
accompanied by a deposit amounting to the deposit
paid under subregulation (1). The tenderer who had
been indicated in the adjudication decision of the
Director or the contracting authority as the one to
whom the contract was to be awarded, shall be deemed
to have registered an interest but does not need to pay
a deposit.
( d ) The names of the tenderers or other person having or
having had an interest in obtaining a particular public
contract who register an interest shall be made public
on the first working day after the lapse of the time
PUBLIC CONTRACTS g S.L.174.04 65
limit specified in paragraph ( c ).
( e ) (i) Within three working days after the publication
of the list of persons who register an interest, the
tenderer filing the notice of objection shall send
a reasoned letter of objection explaining the
objection.
(ii) The letter of objection and any accompanying
documentation shall be submitted in a number of
copies that equals the number of tenderers with a
registered interest, plus three.
(iii) The letter of objection shall be made public and
shall be circulated to all persons with a
registered interest.
( f ) (i) Within five working days from the publication
of the letter of objection, any tenderer who had
registered an interest may send a reasoned reply
to the letter of objection.
(ii) The reply and any accompanying documentation
shall be submitted in a number of copies that
equals the number of tenderers with a registered
interest, plus three.
(iii) The reply shall be made public and shall be
circulated to all tenderers with a registered
interest and to all tenderers who have filed an
objection.
( g ) Within ten working days of the publication of the
replies the Director or the Head of the contracting
authority shall prepare a report (the Analysis Report)
analysing the letter of objection and the replies
thereto. This report shall be circulated to the persons
who file an objection and who have a registered
interest. After the preparatory process is duly
completed, the Head of the contracting authority shall
forward to the Director of Contracts all documentation
pertaining to the call for tenders in question including
files, tenders submitted, copies of deposit receipts, any
motivated letter, analysis report, etc.
( h ) The Director shall forward all the documentation
related to any appeal case to the Chairman of the
Appeals Board who shall then proceed as stipulated in
Part XIV.
( i ) The Director or the Head of the contracting authority
shall publish a copy of the decision of the Appeals
Board at his department or at the premises of the
relevant contracting authority, as the case may be.
Copies of the decision shall be forwarded to the
complaining tenderer, any persons who had registered
or had an implied interest and, by the Director only, to
the contracting authority concerned when this is one
listed in Schedule 2.
(3) Complaints in terms of this Part may only be submitted in
66 g S.L.174.04 PUBLIC CONTRACTS
respect of public contracts awarded by Authorities listed in
Schedule 1 whose value exceeds Lm 20,000.
PART XIV
Public Contracts Appeals Board
Appeals Board. 104. (1) The Public Contracts Appeals Board shall be
composed of a Chairman and two members who shall be appointed
by the Prime Minister for a period of up to three years with the
possibility of re-appointment.
(2) The Prime Minister may appoint a substitute as Chairman
and substitute members of the Appeals Board, in which case the
members shall serve in accordance with such distribution of duties,
including provisions for inability of members to serve and other
circumstances, as the Prime Minister may establish.
(3) A member of the Appeals Board may not be removed
during the period covered by his appointment except for proved
misbehaviour or proved inability to perform his function.
Cap. 12. (4) The provisions of articles 733 to 739 of the Code of
Organization and Civil Procedure shall apply to the Chairman and
to the other members of the Appeals Board with respect to
complaints before it in the same manner as they apply to judges
with respect to a case brought before a court.
(5) A person shall be disqualified from being appointed or
continuing to be a member of the Appeals Board if he is a member
of the House of Representatives or if he has a financial or other
interest as is likely to prejudice the discharge of his functions as a
member of the Appeals Board.
(6) The members of the Appeals Board shall receive such
remuneration as the Prime Minister may determine.
(7) The members of the Appeals Board shall not be held
personally liable for any act or omission done in good faith in the
course of the exercise of their functions as members of the said
Board.
(8) The Appeals Board shall be provided by the Director of
Contracts with administrative and secretarial services.
(9) The Appeals Board shall be empowered to call witnesses, to
administer oaths and to engage any government official or non-
governmental expert to assist it in its investigations.
(10) The sessions of the Appeals Board during which the
complaint is heard shall be held in public and both the complainant
and any interested party shall have the right to attend and to be
accompanied by any person, professional or otherwise, who they
consider suitable to defend their interests.
(11) ( a ) The Chairman shall have the power to determine the
procedure for the hearing of all complaints lodged with
the Appeals Board and shall ensure that during the
public hearing all interested parties are given the
opportunity to make their case.
PUBLIC CONTRACTS g S.L.174.04 67
( b ) The Appeals Board shall have the power to take such
interim measures as it shall deem fit.
(12) Any member of the Appeals Board who may have a direct
or indirect interest in any contract which becomes the subject of a
complaint in terms of regulation 77 shall inform the Director of
Contracts in writing of such interest in which case the member shall
be precluded from further participation in the hearing of the
complaint.
(13) The Chairman shall appoint the public hearing at the
earliest possible date after the referral to him of the Analysis
Report and the relative documentation by the Director of Contracts
as stipulated in regulation 103(2)( h ).
(14) The decision of the Appeals Board shall be final insofar as
the award of the contract involved is concerned and the Director of
Contracts or the Head of a contracting authority shall have the
authority to proceed with the award of the contract as soon as the
decision of the Board is published and notified to the interested
parties.
(15) Decisions of the Appeals Board shall preferably be taken on
the basis of unanimity. However, majority decisions shall be final
and binding with regard to the award of the contract. The Chairman
and the other two members shall have one vote each.
(16) Decisions of the Appeals Board shall be submitted by the
Chairman to the Director of Contracts in writing within ten
working days after the holding of the public session. Should the
Appeals Board be unable, for valid reasons, to meet this time-limit,
the Director of Contracts shall extend the period in question if such
extension is considered warranted by the circumstances of the case.
(17) All decisions taken by the Appeals Board shall be rendered
in writing. It shall contain all the facts and reasons on which the
Appeals Board’s decision is taken. All decisions shall be concluded
with definite recommendations which shall be binding on the
Director of Contracts or the Head of the contracting authority and
all the tenderers involved.
(18) The Appeals Board shall recommend on whether any
deposit submitted by a tenderer in terms of regulation 103 should
be refunded, in whole or in part, or not, giving written reasons for
such a recommendation. The Board’s recommendation shall be
final and binding.
(19) Any bidder submitting a complaint and who shall not be
satisfied with the final decision taken by the Appeals Board shall
refer the matter to the First Hall of the Civil Court. Such recourse
shall not however delay the Director of Contracts or the Head of a
contracting authority from implementing the Appeals Board’s final
decision.
68 g S.L.174.04 PUBLIC CONTRACTS
SCHEDULE 1
Complete List of Contracting Authorities
OFFICE OF THE PRESIDENT
OFFICE OF THE HOUSE OF 
REPRESENTATIVES
OFFICE OF THE PRIME 
MINISTER
Permanent Secretary’s Office / Department of Corporate
Services
Cabinet Office
Management and Personnel Office
Staff Development Organisation
Oil Exploration
Internal Audit and Investigations Directorate
Planning and Priorities Co-ordination Directorate
Armed Forces of Malta
Information
Electoral Office
Public Service Commission
MALTA COUNCIL FOR ECONOMIC AND SOCIAL
DEVELOPMENT
BROADCASTING AUTHORITY
SOCIAL POLICY Permanent Secretary’s Office / Department of Corporate
Services
Women in Society
Social Security
Family Welfare
Elderly and Community Services
Industrial and Employment Relations
OCCUPATIONAL HEALTH AND SAFETY AUTHORITY
HOUSlNG AUTHORITY
FOUNDATION FOR SOCIAL WELFARE SERVICES
SEDQA
APPO GG
NATIONAL COMMISSION FOR DISABLED PERSONS
CO-OPERATIVES BOARD
EDUCATION Permanent Secretary’s Office / Department of Corporate
Services
Education Division / Department of Finance and
Administration
Libraries and Archives
JUNIOR COLLEGE
MALTA COLLEGE OF ARTS, SCIENCE AND
TECHNOLOGY FOUNDATION
UNIVERSITY OF MALTA
PUBLIC CONTRACTS g S.L.174.04 69
MALTA CENTRE FOR RESTORATION
FOUNDATION FOR INTERNATIONAL STUDIES
FOUNDATION FOR TOMORROW’S SCHOOLS
FOUNDATION FOR EDUCATIONAL SERVICES
MALTA COUNClL FOR SCIENCE & TECHNOLOGY
EMPLOYMENT AND TRAINING CORPORATION
FINANCE AND ECONOMIC 
AFFAIRS
Permanent Secretary’s Office / Department of Corporate
Services
Treasury Department
Inland Revenue Dept.
Capital Transfer Duty
VAT Division
Lotteries Department
Contracts Department
Economic Policy Division
Commerce Division
Consumer and Competition Division
CENTRAL BANK OF MALTA
MALTA FINANCIAL SERVICES AUTHORITY
MALTA STOCK EXCHANGE
LOTTERIES AND GAMING AUTHORITY
MALTA DEVELOPMENT CORPORATION
IPSE LTD
MALTA EXTERNAL TRADE CORPORATION LTD
MALTA STANDARDS AUTHORITY
MALTA STATISTICS AUTHORITY
MALTA ENTERPRISE
TOURISM Ministry
INSTITUTE OF TOURISM STUDIES
MALTA TOURISM ALTTHORITY
TRANSPORT AND 
COMMUNICATIONS
Permanent Secretary’s Office / Department of Corporate
Services
Wireless Telegraphy
Civil Aviation
MALTA TRANSPORT AUTHORITY
MALTA COMMUNICATIONS AUTHORITY
MALTA MARITIME AUTHORITY
JUSTICE AND HOME 
AFFAIRS
Permanent Secretary’s Office
Citizen and Expatriate Affairs
Notary to Govt
Police Department
Civil Protection
70 g S.L.174.04 PUBLIC CONTRACTS
Correctional Services
Government Property Division
Joint Office
Registration
Land registry
Public Registry
Civil Registration
Attorney General
Judicial
Local Councils Department
MALTA ARBITRATION CENTRE
LOCAL COUNCILS
RESOURCES AND 
INFRASTRUCTURE
Permanent Secretary’s Office / Department of Corporate
Services
Works Division / Finance and Administration
Operating Units
Construction and Maintenance
Manufacturing and Services
Building and Engineering
Drainage
Waste Management
Building Construction
MALTA RESOURCES AUTHORITY
BUILDING INDUSTRY CONSULTATIVE COUNCIL
WASTE SERVICES LTD
GOZO Permanent Secretary’s Office / Department of Corporate
Services
Customer Services
Projects and Development
HEALTH Permanent Secretary’s Office / Department of Corporate
Services
Health Division / Finance and Administration
FOUNDATION FOR MEDICAL SERVICES
ZAMMIT CLAPP HOSPITAL
INFORMATION 
TECHNOLOGY AND 
INVESTMENTS
Permanent Secretary’s Office / Department of Corporate
Services
WATER SERVICES CORPORATION
ENEMALTA CORPORATION
MALTA NATIONAL LABORATORY
MGI/MIMCOL
MALTA INTERNATIONAL AIRPORT PLC
MALTAPOST PLC
PUBLIC CONTRACTS g S.L.174.04 71
GOZO CHANNEL CO LTD
DATA PROTECTION
MITTS
FOREIGN AFFAIRS Permanent Secretary’s Office / Department of Corporate
Services
RURAL AFFAIRS AND THE 
ENVIRONMENT
Permanent Secretary’s Office / Department of Corporate
Services
Agriculture
Veterinary Services
Fisheries and Aquaculture
MALTA ENVIRONMENT AND PLANNING
AUTHORITY
YOUTH AND THE ARTS Permanent Secretary’s Office / Department of Corporate
Services
Museums
Youth and Sport
Culture and the Arts
HERITAGE MALTA
MALTA COUNCIL FOR CULTURE AND THE ARTS
FOUNDATION FOR THE CENTRE OF CREATIVITY
NATIONAL ORCHESTRA LTD
MANOEL THEATRE
MEDITERRANEAN CONFERENCE CENTRE
And shall include all other Contracting Authorities and Contracting Entities as may be
established in Malta from time to time.
72 g S.L.174.04 PUBLIC CONTRACTS
SCHEDULE 2
Contracting Authorities falling within the competence of
the Department of Contracts
OFFICE OF THE PRIME 
MlNISTER
Permanent Secretary’s Office / Department of Corporate
Services
Cabinet Office
Management and Personnel Office
Staff Development Organisation
Oil Exploration
Internal Audit and Investigations Directorate
Planning and Priorities Co-ordination Directorate
Armed Forces of Malta
Information
Electoral Office
Public Service Commission
MALTA COUNCIL FOR ECONOMIC AND SOCIAL
DEVELOPMENT
BROADCASTING AUTHORITY
SOCIAL POLICY Permanent Secretary’s Office / Department of Corporate
Services
Women in Society
Social Security
Family Welfare
Elderly and Community Services
Industrial and Employment Relations
OCCUPATIONAL HEALTH AND SAFETY AUTHORITY
HOUSING AUTHORITY
FOUNDATION FOR SOCIAL WELFARE SERVICES
SEDQA
APPO GG
NATIONAL COMMISSION FOR DISABLED PERSONS
CO-OPERATIVES BOARD
EDUCATION Permanent Secretary’s Office / Department of Corporate
Services
Education Division / Department of Finance and
Administration
Libraries and Archives
JUNIOR COLLEGE
MALTA COLLEGE OF ARTS, SCIENCE AND
TECHNOLOGY FOUNDATION
UNIVERSITY OF MALTA
MALTA CENTRE FOR RESTORATION
FOUNDATION FOR INTERNATIONAL STUDIES
FOUNDATION FOR TOMORROW’S SCHOOLS
FOUNDATION FOR EDUCATIONAL SERVICES
PUBLIC CONTRACTS g S.L.174.04 73
MALTA COUNCIL FOR SCIENCE & TECHNOLOGY
EMPLOYMENT AND TRAINING CORPORATION
FINANCE AND ECONOMIC 
AFFAIRS
Permanent Secretary’s Office / Department of Corporate
Services
Treasury Department
Inland Revenue Dept.
Capital Transfer Duty
Customs Department
VAT Division
Lotteries Department
Contracts Department
Economic Policy Division
Commerce Division
Consumer and Competition Division
LOTTERIES AND GAMING AUTHORITY
MALTA DEVELOPMENT CORPORATION
IPSE LTD
MALTA STANDARDS AUTHORITY
MALTA STATISTICS AUTHORITY
MALTA ENTERPRISE
TOURISM Ministry
INSTITUTE OF TOURISM STUDIES
TRANSPORT AND 
COMMUNICATIONS
Permanent Secretary’s Office / Department of Corporate
Services
Wireless Telegraphy
Civil Aviation
MALTA TRANSPORT AUTHORITY
MALTA COMMUNICATIONS AUTHORITY
MALTA MARITIME AUTHORITY
JUSTICE AND HOME 
AFFAIRS
Permanent Secretary’s Office
Citizen and Expatriate Affairs
Notary to Govt
Police Department
Civil Protection
Correctional Services
Government Property Division
Joint Office
Registration
Land registry
Public Registry
Civil Registration
Attorney General
74 g S.L.174.04 PUBLIC CONTRACTS
Judicial
Local Councils Department
MALTA ARBITRATION CENTRE
RESOURCES AND 
INFRASTRUCTURE
Permanent Secretary’s Office / Department of Corporate
Services
Works Division / Finance and Administration
Operating Units
Construction and Maintenance
Manufacturing and Services
Building and Engineering
Drainage
Waste Management
Building Construction
MALTA RESOURCES AUTHORITY
BUILDING INDUSTRY CONSULTATIVE COUNCIL
WASTE SERVICES LTD
GOZO Permanent Secretary’s Office / Department of Corporate
Services
Customer Services
Projects and Development
HEALTH Permanent Secretary’s Office / Department of Corporate
Services
Health Division / Finance and Administration
FOUNDATION FOR MEDICAL SERVICES
ZAMMIT CLAPP HOSPITAL
INFORMATION 
TECHNOLOGY AND 
INVESTMENTS
Permanent Secretary’s Office / Department of Corporate
Services
WATER SERVICES CORPORATION
ENEMALTA CORPORATION
MALTA NATIONAL LABORATORY
DATA PROTECTION
MITTS
FOREIGN AFFAIRS Permanent Secretary’s Office / Department of Corporate
Services
RURAL AFFAIRS AND THE 
ENVIRONMENT
Permanent Secretary’s Office / Department of Corporate
Services
Agriculture
Veterinary Services
Fisheries and Aquaculture
MALTA ENVIRONMENT AND PLANNING
AUTHORITY
PUBLIC CONTRACTS g S.L.174.04 75
SCHEDULE 3
List of Contracting Authorities who shall administer their own public procurement
in accordance with the provisions of these Regulations
SCHEDULE 4
List of Contracting Autlzorities for the Supply of Water
1. Water Services Corporation
2. Water Desalination Services
YOUTH AND THE ARTS Permanent Secretary’s Office / Department of Corporate
Services
Museums
Youth and Sport
Culture and the Arts
HERITAGE MALTA
MALTA COUNCIL FOR CULTURE AND THE ARTS
FOUNDATION FOR THE CENTRE OF CREATIVITY
NATIONAL ORCHESTRA LTD
MINISTRY OF EDUCATION
MINISTRY OF FINANCE 
AND ECONOMIC AFFAIRS
CENTRAL BANK OF MALTA
MALTA FINANCIAL SERVICES AUTHORITY
MALTA STOCK EXCHANGE
MALTA EXTERNAL TRADE CORPORATION LTD
MGI/MIMCOL
MINISTRY OF TOURISM MALTA TOURISM AUTHORITY
MINISTRY OF JUSTICE AND 
HOME AFFAIRS
LOCAL COUNCILS
MINISTRY FOR 
INFORMATION 
TECHNOLOGY AND 
INVESTMENTS
MALTA INTERNATIONAL AIRPORT PLC
MALTAPOST PLC
GOZO CHANNEL CO LTD
MINISTRY FOR YOUTH AND 
THE ARTS
MANOEL THEATRE
MEDITERRANEAN CONFERENCE CENTRE
76 g S.L.174.04 PUBLIC CONTRACTS
SCHEDULE 5
List of Contracting Authorities for the Supply of Energy
1. Enemalta Corporation
SCHEDULE 6
List of Contracting Authorities for the Supply of Fuels for the Production of Energy
1. Oil Exploration Division Office of the Prime Minister
SCHEDULE 7
Public Works Contracts Activities
1. General building and civil engineering work (without any particular
specification) and demolition work
2. General building and civil engineering work (without any particular
specification)
3. Demolition work
4. Construction of flats, office blocks, hospitals and other buildings, both
residential and non-residential
5. General Building Contractors
6. Roofing
7. Construction of chimneys, kilns and furnaces
8. Waterproofing and damp-proofing
9. Restoration and maintenance of outside walls, repainting, cleaning, etc.
10. Erection and dismantlement of scaffolding
11. Other specialised activities relating to construction work (including
carpentry)
12. Civil engineering: construction of roads, bridges, etc.
13. General civil engineering works
14. Earth-moving (navyying)
15. Construction of bridges, tunnels and shafts, drilling
16. Hydraulic engineering, harbours
17. Road building including specialised construction of airports and runways
18. Specialised construction work relating to water (i.e. to irrigation, land
drainage, water supply, sewage disposal, sewerage, etc.)
19. Specialised activities in other areas of civil engineering
20. Installation (fittings and fixtures)
PUBLIC CONTRACTS g S.L.174.04 77
21. General installation work
22. Gas fitting and plumbing, and the installation of sanitary equipment
23. Installation of heating and ventilating apparatus (central heating, air
conditioning, ventilation)
24. Sound and heat insulation, insulation against vibration
25. Electrical fittings
26. Installation of aerials, lightning conductors, telephones, etc.
27. Building completion work
28. General building completion work
29. Plastering
30. Joinery, primarily engaged in on the site assembly and/or installation
(including the laying of parquet flooring)
31. Painting, glazing, paper hanging
32. Tiling and otherwise covering floors and walls
33. Other building completion work (putting in fireplaces).
SCHEDULE 8A
Services within the meaning of regulation 52(1)
CPA 
Reference No
Subject CPC 
Reference No
1. Maintenance and Repair Services
17.40.90 Repair services of tarpaulins and camping equipment 88690.1
17.52.90 Repair services of nets and ropework 88690.2
28.21.90 Repair and maintenance services of tanks, reservoirs
and containers of metal
88610.1
28.22.90 Repair and maintenance services of central heating
boilers
88610.2
28.30.91 Installation services of steam generators, except
central heating hot water boilers, including related
pipe system
88610.3
28.30.92 Repair and maintenance services of steam generators,
except central heating hot water boilers
88610.4
29.11.91 Installation services of engines and turbines, except
aircraft, vehicle and cycle engines
88620.1
29.11.92 Repair and maintenance services of engines and
turbines, except aircraft, vehicle and cycle engines
88620.2
29.12.91 Installation services of pumps and compressors 88620.3
29.12.92 Repair and maintenance services of pumps and
compressors
88620.4
29.13.90 Repair and maintenance services of taps and valves 88620.5
78 g S.L.174.04 PUBLIC CONTRACTS
29.21.91 Installation services of furnaces and furnace burners 88620.6
29.22.91 Installation services of lifting and handling
equipment, except of lifts and escalators
88620.8
29.21.92 Repair and maintenance services of furnaces and
furnace burners
88620.7
29.22.92 Repair and maintenance services of lifting and
handling equipment
88620.9a
29.23.91 Installation services of non-domestic cooling and
ventilation equipment
88620.9b
29.23.92 Repair and maintenance services of non-domestic
cooling and ventilation equipment
88620.9c
29.24.91 Installation services of other general purpose
machinery n.e.c.
88620.9d
29.24.92 Repair and maintenance services of other general
purpose machinery n.e.c.
88620.9e
29.32.91 Installation services of agricultural and forestry
machinery 
88620.9f
29.32.92 Repair and maintenance services of agricultural and
forestry machinery
88620.9g
29.40.91 Installation services of machine-tools 88620.9h
29.40.92 Repair and maintenance services of machine-tools 88620.9i
29.51.91 Installation services of machinery for metallurgy 88620.9j
29.51.92 Repair and maintenance services of machinery for
metallurgy
88620.9k
29.52.91 Installation services of machinery for mining,
quarrying and construction
88620.9l
29.52.92 Repair and maintenance services of machinery for
mining, quarrying and construction
88620.9m
29.53.91 Installation services of machinery for food, beverage
and tobacco processing
88620.9n
29.53.92 Repair and maintenance services of machinery for
food, beverage and tobacco processing
88620.9o
29.54.91 Installation serviccs of machinery for textile, apparel
and leather production
88620.9p
29.54.92 Repair and maintenance services of machinery for
textile, apparel and leather production
88620.9q
29.55.91 Installation services of machinery for paper and
paperboard production
88620.9r
29.55.92 Repair and maintenance services of machinery for
paper and paperboard production
88620.9s
29.56.91 Installation services of other special purpose
machinery n.e.c.
88620.9t
29.56.92 Repair and maintenance services of other special
purpose machinery n.e.c.
88620.9u
CPA 
Reference No
Subject CPC 
Reference No
PUBLIC CONTRACTS g S.L.174.04 79
29.60.91 Installation services of weapons and weapons
systems
88620.9v
29.60.92 Repair and maintenance services of weapons and
weapons systems
88620.9w
30.01.90 Installation services of office machinery 88630.1
30.02.90 Installation services of computers and other
information processing cquipment
88630.2
31.10.91 Installation services of electric motors, generators
and transformers
88640.1
31.10.92 Repair, maintenance and rewinding services of
electric motors, generators and transformers
88640.2
31.20.91 Installation services of electricity distribution and
control apparatus
88640.3
31.20.92 Repair and maintenance services of electricity
distribution and control apparatus
88640.4
31.62.91 Installation services of other electrical equipment
n.e.c., except electrical signalling equipment for
motorways, roads and airports
88640.5
31.62.92 Repair and maintenance services of other electrical
equipment n.e.c.
88640.6
32.20.91 Installation services of television and radio
transmitters
88650.1
32.20.92 Repair and maintenance services of television and
radio transmitters
88650.2
32.30.91 Installation services of professional radio, television,
sound and video equipment
88650.3
32.30.92 Repair and maintenance services of professional
radio, television, sound and video equipment
88650.4
33.10.91 Installation services of medical and surgical
equipment and apparatus
88660.1
33.10.92 Repair and maintenance services of medical and
surgical equipment and apparatus
88660.2
33.20.91 Installation services of instruments and apparatus for
measuring, checking, testing, navigating and other
purposes
88660.3
33.20.92 Repair and maintenance services of instruments and
apparatus for measuring, checking, testing,
navigating
88660.4
33.40.90 Repair and maintenance services of professional
photographic, cinematographic and optical
instruments
88660.5
33.50.91 Installation services of industrial time measure
instruments and apparatus
88660.6
33.50.92 Repair and maintenance services of industrial time
measure instruments and apparatus
88660.7
CPA 
Reference No
Subject CPC 
Reference No
80 g S.L.174.04 PUBLIC CONTRACTS
35.11.91 Repair and maintenance services of ships and floating
platforms and structures
88680.1
35.11.92 Reconditioning of ships 88680.2
35.11.93 Demolition of ships 88680.3
35.12.90 Repair and maintenance services of pleasure and
sporting boats
88680.4
35.20.91 Repair and maintenance services of railway and
tramway locomotives and rolling stock
88680.5
35.20.92 Reconditioning of railway and tramway locomotives
and rolling stock
88680.6
35.30.91 Repair and maintenance services of aircraft and
aircraft engines
88680.7
35.30.92 Reconditioning of aircraft 88680.8
36.30.90 Repair and maintenance services of musical
instruments
88690.3
50.2 Maintenance and repair services of motor vehicles 611d
611e
611f
50.40.40 Maintenance and repair services of motorcycles 61220
52.7 Repair services of personal and household goods 633a 633b
633c 633d
2. Land transportation services, (1)  including
armoured car services and courier services,
except transport of mail
60.21.2 Urban and suburban regular passenger transportation,
other than by railways
712a
60.21.3 Inter-urban passenger transportation, other than by
railways
712b
60.21.4 Other scheduled passenger land transportation 712c
60.22 Taxi services and rental services of passenger cars
with operator
712d
60.23 Other land passenger transportation services 712e
60.24.1 Freight transportation services by road, specialized
vehicles
712f
60.24.22 Transportation of other freight 71239.3
60.24.3 Rental services of commercial freight vehicles with
operator
712h
64.12 Courier services other than national post services 751b
74.60.14 Armoured car services 87304
3. Air transport services of passengers and
freight, except transport of mail
62.10.10 Scheduled passenger transportation services by air 73110
62.10.22 Transportation of containerized freight, scheduled 73220.1
62.10.23 Transportation of other freight by air, scheduled 73290.1
CPA 
Reference No
Subject CPC 
Reference No
PUBLIC CONTRACTS g S.L.174.04 81
62.20.10 Non-scheduled passenger transportation services by
air
73120
62.20.20
(part)
Non-scheduled freight transportation services by air 73210.1
73290.2
62.20.30 Rental services of aircrafts with crew 73400
62.30.10 Space transportation services 73300
4. Transport of mail by land and air
60.24.21 Mail transportation 71235
62.10.21 Mail transportation by air, scheduled 73210.1
62.20.20
(part)
Non-scheduled freight transportation services by air 73210.1
73290.2
5. Telecommunications services (2)
64.20.1 Data and message transmitting services 752a
64.20.2 Other telecommunications services 752b
6. Financial services:
(a) insurance services
(b) banking and investment services (3)
66 Insurance and pension funding services, except
compulsory social security services
812a
812b
812c
67.2 Services auxiliary to insurance and pension funding 814
65 Financial intermediation services, except insurance
and pension funding services
811a 811d
811b 811e
811c
67.1 Services auxiliary to financial intermediation, except
to insurance and pension funding
813a
813b
813c
7. Computer and related services
72.10.10 Hardware consultancy services 84100
72.20.2 Programming services of packaged software products 841b
72.20.3 Software consultancy and other supply services 842a
72.3 Data processing services 842b
843
72.4 Database services 844
72.5 Maintenance and repair services of office, accounting
and computing machinery
845
72.6 Other computer-related services 849
8. R&D services (4)
73 Research and development services 851
852
9. Accounting, auditing and book-keeping
services
74.12.1 Accounting and auditing services 862a
74.12.2 Book-keeping services, except tax returns 862b
CPA 
Reference No
Subject CPC 
Reference No
82 g S.L.174.04 PUBLIC CONTRACTS
10. Market research and public opinion polling
services
74.13 Market research and public opinion polling services 864
11. Management consultant services (5)  and
related services
74.14 Business and management consultancy services 865, 866a
74.15 Management holdings services 866b
12. Architectural services; engineering services
and integrated engineering services; urban
planning and landscape architectural
services; related scientific and technical
consulting services; technical testing and
analysis services
74.20.2 Architectural services 867a
74.20.3 Engineering services 867b
74.20.4 Integrated engineering services for turnkey projects 867c
74.20.5 Urban planning and landscape architectural services 867d
74.20.6 Project management services related to construction
and civil engineering works
- -
74.20.7 Engineering-related scientific and technical
consulting services
867e
74.3 Technical testing and analysis services 867f
13. Advertising Services
74.4 Advertising services 871
14. Building-cleaning services and property
management services
70.3 Real estate agency services on a fee or contract basis 822a
822b
74.7 Industrial cleaning services 874
15. Publishing and printing services on a fee or
contract basis
22.21 Newspaper printing services 884h
22.22.3 Printing services, other than printing of newspaper 884i
22.23 Bookbinding and finishing services 884j
22.24.1 Composition and plate-making services 884k
22.25 Other services related to printing 884l
22.3 Reproduction services of recorded media 884m
884n
884o
16. Sewage and refuse disposal services;
sanitation and similar services
90 Sewage and Refuse disposal services, sanitation and
similar services
940a
940b
940c
CPA 
Reference No
Subject CPC 
Reference No
PUBLIC CONTRACTS g S.L.174.04 83
(1) Except for rail transport services covered by Category 18.
(2) Except voice telephony, telex, radiotelephony, paging and satellite services.
(3) Except contracts for financial services in connection with the issue, sale, purchase or transfer of
securities or other financial instruments, and central bank services.
(4) Except research and development service contracts other than those where the benefits accrue
exclusively to the contracting authority for its use in the conduct of its own affairs on condition
that the service provided is wholly remunerated by the contracting authority.
(5) Except arbitration and conciliation services.
SCHEDULE 8B
Services within the meaning of regulation 52(2)
CPA 
Reference No
Subject CPC 
Reference No
17. Hotel and restaurant services
55 Hotel and restaurant services 64
18. Rail transport services
60.1 Railway transportation services 711a
711b
711c
60.21.1 Urban and suburban passenger railway transportation 711d
19. Water transport services
61 Water transport services 72
20. Supporting and auxiliary transport services
63 Supporting and auxiliary transport services; travel
agency services
74
21. Legal Services
74.11 Legal services 861
22. Personnel placement and supply services
74.5 Labour recruitment and provision of personnel
services
872
23. Investigation and security services except
armoured car services
74.60.11 Investigation services 87301
74.60.12 Security consultation services 87302
74.60.13 Alarm monitoring services 87303
74.60.15 Guard services 87305
74.60.16 Other security services 87309
24. Education and vocational education services
80 Education services 92
25. Health and social services
85 Health and social work services 93
26. Recreational, cultural and sporting services
84 g S.L.174.04 PUBLIC CONTRACTS
SCHEDULE 9
Values of thresholds pursuant to regulation 11
1. The values of the thresholds applicable to Public Supplies contracts are as
follows:
Euro 200 000: threshold above which public supply contracts are subject to Part
VI B without prejudice to the application of the threshold set out for supply contracts
subject to the WTO Agreement (recital 10, Dir 93/36/EEC).
Euro 750 000: threshold above which the contracting authorities shall make
known, by means of an indicative notice to be published as soon as possible after the
beginning of the budgetary year, the total procurement by product area which they
envisage awarding during the subsequent twelve months as stipulated in regulation
44.
SDR 130 000: applicable to contracts awarded by contracting authorities,
including contracts awarded by contracting authorities in the field of defence in so
far as the products included in Schedule 11 are concerned so long as such
contracting authorities are dealing with products covered by Schedule 11.
SDR 200 000: applicable to contracts awarded by contracting authorities including
contracts awarded by contracting authorities in the field of defence in so far as the
products not included in Schedule 11 are concerned. But does not apply in so far as
central government authorities are concerned.
2. The values of the thresholds applicable for Public Works contracts are as
follows:
92.11.3 Motion picture and video tape production and related
services
961a
92.12 Motion picture or video tape distribution services 961b
92.13 Motion picture projection services 961c
92.2 Radio and television services 961d
92.31.2 Artistic and literary creation and interpretation
services
961e
92.32.1 Arts facilities operation services 961f
92.33.1 Fair and amusement park services 961g
92.34 Other entertainment services 961h
92.4 News agency services 962
92.5 Library, archives, museums and other cultural
services
963a
963b
963c
92.6 Sporting services 964a
964b
92.7 Other recreational services 964c
964d
27. Other services
CPA 
Reference No
Subject CPC 
Reference No
PUBLIC CONTRACTS g S.L.174.04 85
Euro 1 000 000: This threshold is applicable to works lots in terms of regulation
15(4).
Euro 5 000 000: Threshold pursuant to regulation 65(2). This provision concerns
only those contracts covered by Class 50, Group 502, of the general industrial
classification of economic activities within the European Communities (NACE)
nomenclature and contracts relating to the building works for hospitals, facilities
intended for sports, recreation and leisure, school and university buildings and
buildings used for administrative purposes:
- threshold above which a notice is required when contracting authorities
intend to conclude a public works concession contract in terms of
regulation 66(1);
- threshold above which a notice is required when a concessionaire other
than a contracting authority intends to award a contract to a third party
pursuant to regulation 66(4);
- threshold above which the contracting authorities shall make known, by
means of an indicative notice to be published as soon as possible afler
the beginning of the budgetary year, the essential characteristics of the
works contracts which they intend to award.
SDR 5 000 000: threshold applicable to Part VI C.
3. The values of the thresholds applicable for Public Service contracts are as
follows:
Euro 80 000: threshold applicable in terms of the proviso to regulation 15(4) to
Lots provisions.
Euro 750 000: threshold above which contracting authorities shall make known,
by means of an indicative notice to be published as soon as possible after the
beginning of their budgetary year, the intended total procurement in each of the
service categories listed in Schedule 8 A and in respect of which they envisage
awarding contracts during the subsequent twelve months.
Euro 200 000: Threshold above which a contracting authority subsidises directly
by more than 50% a service contract awarded by an entity other than itself in
connection with a works contract. Regulation 50(2) refers.
In relation to public service contracts concerning the services referred to in
Schedule 8 A (with the exception of the services in category 8 and the
telecommunications services in category 5 under CPC references 7524, 7525 and
7526):
(i) awarded by the Central Government authorities where the estimated
value net of VAT is not less than the equivalent of 130 000 SDR;
(ii) awarded by the contracting authorities other than those referred to in
sub-paragraph (i) where the estimated value net of VAT is not less than
the equivalent in 200 000 SDRs.
Euro 200 000: In relation to public service contracts concerning the services
referred to in Schedule 8 B, the services in category 8 in Schedule 8 A and the
telecommunications services in category 5 of Schedule 8 A under CPC references
7524, 7525 and 7526, awarded by the contracting authorities.
Threshold for design contest fulfilling conditions of regulation 53 shall be:
( a ) in relation to public service contracts concerning the services referred to
in Schedule 8 A with the exception of the services in category 8 and the
telecommunications services in category 5 under CPC references 7524,
86 g S.L.174.04 PUBLIC CONTRACTS
7525 and 7526:
(i) awarded by Central Government Authorities where the estimated
value net of VAT is not less than the equivalent of 130 000 SDR;
(ii) awarded by the contracting authorities other than those referred to
in sub-paragraph (i) where the estimated value net of VAT is not
less than the equivalent in 200 000 SDRs.
( b ) Euro 200 000: In relation to public service contracts concerning the
services referred to in Schedule 8 B, the services in category 8 in
Schedule 8 A and the telecommunications services in category 8 of
Annex I A under CPC references 7524, 7525 and 7526, awarded by the
contracting authorities.
4. The values of the thresholds applicable for supplies, service and for works
contracts by entities in the Utilities sector are as follows:
( a ) (i) ECU 600 000 in the case of supply and service contracts contracts
awarded by contracting entities carrying out activities in the
telecommunications sector provided that the estimated value, net
of value added tax (VAT), .
(ii) ECU 5 000 000 in the case of works contracts awarded by
contracting entities carrying out activities in the
telecommunications sector, provided that the estimated value, net
of value added tax (VAT), .
( b ) (i) ECU of 400 000 special drawing rights (SDR) for supply
contracts and for the service contracts listed in Schedule 8A,
except for the R&D services mentioned in Category 8 and
Category 5 telecommunications services, the CPC reference
numbers of which are 7524, 7525 and 7526 for contracts awarded
by contracting entities carrying out activities entities in the
sectors covering the production, transport or distribution of
drinkingwater; in the sectors covering the production, transport or
distribution of electricity; in the field of urban railway, tramway,
trolleybus or bus services; in the field of airport facilities; in the
field of maritime or inland port or other terminal facilities;
(ii) ECU 400 000 in the case of service contracts other than those
mentioned in (i) awarded by contracting entities carrying out
activities entities in the sectors covering the production, transport
or distribution of drinkingwater; in the sectors covering the
production, transport or distribution of electricity; in the field of
urban railway, tramway, trolleybus or bus services; in the field of
airport facilities; in the field of maritime or inland port or other
terminal facilities;
(iii) the equivalent in ECU of 5 000 000 SDR for works contracts
awarded by contracting entities carrying out activities entities in
the sectors covering the production, transport or distribution of
drinking water; in the sectors covering the production, transport
or distribution of electricity; in the filed of urban railway,
tramway, trolleybus or bus services; in the field of airport
facilities; in the field of maritime or inland port or other terminal
facilities.
( c ) (i) ECU 400 000 in the case of supply and service contracts for
contracts awarded by contracting entities carrying out activities in
the sectors covering the transport or distribution of gas or heat; in
PUBLIC CONTRACTS g S.L.174.04 87
the sectors covering the exploration for and extraction of oil or
gas; in the sectors covering the exploration for and extraction of
coal or other solid fuels; and in the field of railway services;
(ii) ECU 5 000 000 in the case of works contracts for contracts
awarded by contracting entities carrying out activities in the
sectors covering the transport or distribution of gas or heat; in the
sectors covering the exploration for and extraction of oil or gas;
in the sectors covering the exploration for and extraction of coal
or other solid fuels; and in the field of railway services.
( d ) Euro 1 000 000: threshold under which contracting entities, in the case
of works contracts, are allowed to derogate from regulation 15(4)
paragraph 1 provided that the total value of such lots does not exceed
20% of the total value of all the lots.
Design Contests: The thresholds relating to design contests in the utilities sector
are as defined in Article 23 of Directive 93/38/EEC as follows:
1. This Article shall apply to design contests organized as part of a procedure
leading to the award of a service contract the estimated value net of VAT for which
is not less than the value referred to in Article 14(1).
2. This Article shall apply to all design contests where the total amount of
contest prizes and payments to participants is not less than Euro 400 000 for design
contests organized by entities exercising an activity referred to in Article 2(2)(a), (b)
and (c) and Euro 600 000 for design contests organized by entities exercising an
activity referred to in Article 2(2)(d).
3. The rules for the organization of a design contest shall be in conformity with
the requirements of this Article and shall be communicated to those interested in
participating in the contest.
4. The admission of participants to design contests shall not be limited:
- by reference to the territory or part of the territory of a Member State;
- on the grounds that, under the law of the Member State in which the
contest is organized, they would have been required to be either natural
or legal persons.
5. Where design contests are restricted to a limited number of participants, the
contracting authorities shall lay down clear and non-discriminatory selection
criteria. In any event, the number of candidates invited to participate shall be
sufficient to ensure genuine competition.
6. The jury shall be composed exclusively of natural persons who are
independent of participants in the contest. Where a particular professional
qualification is required from participants in a contest at least a third of its members
must have the same qualification or its equivalent.
The jury shall be autonomous in its decision or opinions. These shall be
reached on the basis of projects submitted anonymously and solely on the grounds of
the criteria indicated in the notice provided for in Annex XVII.
88 g S.L.174.04 PUBLIC CONTRACTS
SCHEDULE 10
Model Contract Notices
Full adoption of Directive 2001/78/EC of 13th September 2001
SCHEDULE 11
List of Products in the Field of Defence
This list of products in the Field of Defence shall be that list as established by the
list covered in Armex II of EC Directive 93/36/EEC.
