WHAT IS THE DIRECT PROCUREMENT UNDER THE PUBLIC PROCUREMENT LAW NO 4734? 12 May 2020
Under Article 4 of Public Procurement Law No. 4734 (“Law”), the direct procurement is defined as a procedure whereby the necessities are directly procured from the applicants invited by the contracting authority through negotiating about technical terms and price in certain cases. Accordingly, it is regulated as an exceptional case in the Law that the needs are met by the administration by negotiating with the applicants without any announcement and without receiving any securities.
According to Article 22 of Law, certain cases in which the method of direct procurement may be applied are as follows:
- when it is established that the needs can be met from only a specific real or legal person,
- in case only a specific real or legal person has exclusive rights with regard to the need in question,
- procurement of goods and services which are necessarily supplied from the real or legal person who is the initial supplier, to ensure compatibility and standardization with existing goods, equipment, technology or services by means of contracts to be arranged based on the principal contract and not exceeding three-year period in total,
- procurements not exceeding 97.008,-TL for needs of contracting authorities within the boundaries of metropolitan municipalities and procurements not exceeding 32.316,-TL for needs of other contracting authorities, and purchases with regard to accommodation, trip and subsistance within the scope of representation expenses
- purchase or lease of immovable property according to need of the contracting authority
What are the Conveniences Provided by Direct Procurement Procedure?
As an exception to the tender procedure of the Law, a number of facilities have been envisaged in the implementation of the direct procurement procedure envisaged only in limited cases. Accordingly, in the method of direct procurement; the following steps are not mandatory in principle:
- Receiving tender security and performance bond and making public announcements,
- Establishing a tender commission and making a tender decision,
- Preparation of tender documents and estimated cost determination,
- Preparation of specification and conclusion of a contract
- Receiving written offers and negotiation,
- Searching the economic, financial, professional and technical competencies stipulated by the Law regarding the tender procedure,
However, it is up to the discretion of the administration to make use of these facilities. On the other hand, in the implementation of the direct procurement procedure, the confirmation of whether there is a prohibition from participation in the tenders of the person who is a party to the procurement is not compulsory. The exception to this rule is that it is mandatory to confirm whether it is prohibited from participation in tenders for purchases made within the above-mentioned monetary limits.
What are the Requirements for the Direct Procurement Procedure?
In the direct procurement method, in addition to the aforementioned facilities, a number of requirements to be observed by the administration are envisaged. Accordingly, by the administration;
- A market price research should be done; at least one person must be appointed in writing for market price research.
- A certificate of approval must be obtained from the contracting authority before purchasing from the approved person.
- The procurements that require a certain period of time is required to be concluded with a contract
Finally, in accordance with Articles 53, 54, 55 and 56 of the Law, complaints to the administration and appeals to the Public Procurement Authority can only be made for tenders within the scope of the Law and. Therefore, the complaint and appeal institutions foreseen in the Law shall not be applicable for purchases made through direct procurement method, which is not specified as a tender. However; pursuant to Article 11 of the Administrative Judgment Procedure Law No. 2577, there is no obstacle for the application to the higher authority.
