On an annual basis public authorities in Denmark procure goods and services for approximately 290 billion DKK. A major part of this volume is procured using public framework agreements. The main objective of this thesis is to clarify the status of contracting authorities in framework agreements from a legal and contract-economic perspective. The main focus in the legal part is the question of which legal requirements apply for a contracting authority in order to become a user of a Framework agreement and the consequences of changes in the area of public responsibility. In the economic part the main focus is on: a) how the contracting authorities can obtain the most efficient framework agreement from an economic perspective in relation to the choice between a binding and non-binding framework agreement, and b) the consequence of the contracting authorities’ risk aversion in relation to the allocation of risk in the framework agreement, mainly related to the possible volume in the framework agreement. A contracting authority has to be clearly identified in the tender notice or in related tender documents. It should also be possible to identify the date from which the contracting authority obtained the right to use the specific framework agreements. It is the assessment that the Danish regulation goes beyond what the public procurement directive actually allows, by allowing new contracting authorities to enter a framework agreement when caused by changes in the area of public responsibility. It is, however, the assessment, that the European Court of Justice would allow a new contracting authorities to be part of framework agreement, as long as the transparency principle is not violated. It is found that there are higher costs related to using a non-binding than a binding framework agreement. The allocation of risk by the contracting authorities in the framework agreement has a negative effect in the form of higher prices due to the bidders risk premium, caused by the imperfect information about the actual volume and flue frequency in the framework agreement. In the Integrated part of the thesis an addition to the Public Procurement Directive is proposed, that will allow new contracting authorities in a framework agreement due to changes in the public area of responsibilities.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||105|