Financial Management Authority
How do I procure service and goods?
Public entities must conduct a tender procedure for the purchase of goods, services or works when the estimated value of the contract exceeds the applicable procurement thresholds under public procurement legislation.
Determine whether the goods or services are covered by a central framework agreement or DPS managed by The Financial Management Authority.
You can view all of the Financial Management Authority’s central agreements by clicking here.
If a framework agreement or DPS applies, follow its terms and conditions.
If no framework agreement or DPS applies, calculate the estimated value of the procurement.
If the estimated value is below the procurement thresholds, follow the rules applicable to procurements below the thresholds.
If the estimated value exceeds the procurement thresholds, the procurement must be tendered.
Information about the Financial Management Authority’s procurement process can be viewed by clicking here.
You can submit a work request to the procurement division by clicking here.
When the estimated value of a procurement is below the applicable thresholds, simpler rules apply than for procurements above the thresholds. Contracting authorities must nevertheless ensure value for money, competition, equal treatment, and transparency throughout the procurement process.
As a general rule, quotations or pricing information should be obtained from as many suppliers as market conditions reasonably allow. The objective is to ensure the efficient use of public funds and to provide suppliers with a fair opportunity to compete for public contracts.
When preparing a procurement, contracting authorities must also ensure that technical specifications are objective, clear, and compliant with the provisions of the Public Procurement Act. Technical specifications must not restrict competition beyond what is necessary.
Further information can be found in Article 24 of the Public Procurement Act, which governs procurements below the thresholds, and Article 49 of the Act, which governs technical specifications.
For procurements above the applicable threshold values, contracting authorities are generally required to conduct a public tender procedure. If the contracting authority is a party to a central framework agreement administered by Fjársýslan and the agreement covers the relevant goods or services, the procurement shall be carried out in accordance with the terms of that agreement. Otherwise, the procurement shall be tendered in accordance with the Public Procurement Act.
State entities within Parts A1 and A2 of the State Treasury are required to conduct their procurements through Fjársýslan in accordance with the Regulation on the Organisation of State Procurement. Fjársýslan manages tender procedures in cooperation with the contracting authority and provides advice on the preparation and execution of procurements.
Municipalities and other public entities may either manage their own procurements or seek assistance from parties providing procurement services. They may also request assistance from Fjársýslan in relation to procurement procedures.
The Financial Management Authority handles the execution of tenders in consultation with the buyer and provides advice on the preparation and implementation of procurement.
State entities falling within Parts A1 and A2 of the State Treasury are required to conduct their procurements through Fjársýslan in accordance with the Regulation on the Procurement Arrangements of the State. Fjársýslan manages tender procedures in cooperation with the contracting authority and provides advice on the preparation and implementation of procurements.
Where a framework agreement managed by Fjársýslan is in place, procurements are carried out in accordance with its terms, either through direct call-offs or mini-competitions, as applicable. In such cases, contracting authorities may carry out the procurement under the framework agreement without the involvement of Fjársýslan.
Municipalities and other public entities may conduct their own procurement activities or engage other providers of procurement services. They may seek assistance from private-sector service providers and may also request procurement support from Fjársýslan.