Financial Management Authority
Procurement and sale
Table of contents
Financial Management Authority contracts
Financial Management Authority agreements are central agreements for the public-sector procurement of goods and services. They are negotiated on behalf of multiple buyers to secure more favorable terms.
The agreements cover central government Part A institutions. In some cases, state-owned enterprises, municipalities, and other public-sector entities may also participate through a separate agreement.
The agreements are divided into framework agreements and dynamic purchasing systems (DPSs).
Part A Institutions
Central government Part A institutions must purchase under Financial Management Authority agreements when an agreement covers the goods or services being purchased.
Part A institutions are primarily funded through tax revenue. When a relevant agreement is in place, they cannot choose whether to use the Financial Management Authority’s agreements. They must comply with the terms and requirements of the applicable agreement.
Approximately 160 government institutions fall within Part A.
Other Entities
Other public-sector entities may also be parties to Financial Management Authority agreements, including:
state-owned enterprises
municipalities
institutions that have entered into a specific participation agreement
These entities are covered by central agreements through a specific agreement or subscription.
Public-sector entities can check whether they are parties to the Financial Management Authority’s framework agreements or dynamic purchasing systems by downloading the list of buyers.
The list identifies the entities authorized to purchase under the Financial Management Authority’s agreements.
Download the list of buyers (.csv):
Types of Financial Management Authority Agreements
central framework agreements
central dynamic purchasing systems (DPS)
Under a central framework agreement, specific terms are agreed with one or more suppliers. Purchases are then made in accordance with the agreement’s terms, for example through direct purchasing or a mini-competition.
Under a central dynamic purchasing system, qualified suppliers may join throughout the system’s period of operation. Individual purchases are then made through restricted tenders among the suppliers admitted to the relevant category.
Through the Financial Management Authority’s agreements, goods and services are purchased on behalf of multiple entities at the same time. This collective purchasing power helps secure the best possible terms.
Purchasing under a framework agreement
Through agreements administered by the Financial Management Authority, goods or services are procured on behalf of multiple buyers at the same time. This makes it possible to secure the best terms by leveraging their combined purchasing power.
Establishment of a Dynamic Purchasing System (DPS)
The Financial Management Authority’s general procurement process, which is divided into four stages, is used to establish a dynamic purchasing system.
The buyer conducts a procurement analysis and prepares plans.
The buyer and the Financial Management Authority jointly prepare the tender documents.
Tendering – Dynamic Purchasing System
The period from the publication of the tender notice until the suppliers’ bids have been evaluated.
Dynamic purchasing system established – Suppliers are admitted to the system, which is then formally established.
When preparing and drafting the tender documents, several aspects relating specifically to the dynamic purchasing system must be considered.
Selection criteria
Before the system is put out to tender, the buyer must specify in the tender documents the criteria or rules that will be used to select qualified participants.
Buyers are identified at the outset of each dynamic purchasing system (DPS), when the system is put out to tender.
This ensures clarity as to who may use the system.
Buyers may be identified individually or by reference to a category of public entities. This makes it easier to determine whether an entity falls within or outside the scope of the dynamic purchasing system.
Buyers may also be identified in the terms of the system or by reference to another specified location, such as a website.
Buyers may not apply to join the system once it is operational.
Suppliers may apply for admission to a DPS at any time during the system’s lifetime.
Applications are assessed against the qualification and selection requirements set out in the tender documents. If a supplier meets these requirements, it is admitted to the system and may participate in tenders conducted under it.
There is no limit to the number of suppliers that may be admitted to the system.
How do I participate in a dynamic purchasing system?
For a central dynamic purchasing system (DPS), suppliers can follow these steps:
Go to www.utbodsvefur.is.
Find the dynamic purchasing systems currently open.
Select the system you wish to join.
Download the tender documents that must be submitted.
Submit a request to participate in accordance with the terms of the dynamic purchasing system.
The Financial Management Authority will notify the supplier whether its application for admission has been approved.
Once admitted, the supplier will receive notifications of restricted tenders conducted under the system.
Under public procurement legislation, there is no specified maximum duration for a dynamic purchasing system (DPS), unlike the general four-year limit for framework agreements.
However, the system must be temporary, and the buyer must specify its duration in the contract notice.
Dynamic Purchasing System for Individual Buyers
A dynamic purchasing system (DPS) may be established for one or more specified buyers. The system is suitable for recurring purchases of goods, services or works that are generally available on the market.
To establish a dynamic purchasing system for individual buyers, public entities must submit a service request to the Financial Management Authority and follow the guidance on establishing a dynamic purchasing system.
Purchases under a dynamic purchasing system are conducted through restricted tendering procedures among qualified suppliers admitted to the system or the relevant category.
Central Dynamic Purchasing System
A central dynamic purchasing system is established by a central purchasing body, such as the Financial Management Authority, on behalf of specified buyers. Buyers may include Part A government entities, state-owned enterprises, municipalities and other public institutions.
The system’s buyers are identified when it is advertised and generally cannot apply to join after it becomes operational. However, new suppliers may apply for admission throughout the system’s lifetime, provided they meet its qualification requirements.
Purchases under a central dynamic purchasing system are conducted through restricted tendering procedures among qualified suppliers admitted to the system or the relevant category.