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.

In a tender procedure, the procurement is advertised publicly so that companies can submit tenders on equal terms. The procurement documents set out, among other things, what is being purchased, the requirements that apply and how tenders will be evaluated.

When assessing whether a procurement must be tendered, the first step is to determine whether the goods or services are covered by a central framework agreement managed by Fjársýslan. If such an agreement is in place, the procurement must be carried out in accordance with its terms.

If no central framework agreement applies, the estimated value of the procurement must be calculated and compared with the applicable procurement thresholds.

The estimated value must be based on the total value of the contract over its entire term, including any extension options and other options specified in the contract. A procurement may not be divided into smaller contracts for the purpose of avoiding a tender procedure. Where the procurement of similar goods, services or works is divided into several contracts, the combined value of those contracts must be taken into account.

If the total estimated value exceeds the applicable procurement thresholds, the contract must be tendered in accordance with public procurement legislation.

Steps for assessing whether a procurement must be tendered