Public procurement | Information

Public procurement refers to the process by which governments and public sector institutions acquire goods, services, and construction works. In Malta and across the EU, procurement is regulated to ensure transparency, competition, and efficient use of public funds. Contracting authorities must comply with EU directives and local legislation regarding thresholds, procedures, and documentation.

A contracting authority is any public body that is obliged to conduct procurement procedures under the law. This includes ministries, municipalities, regional councils, public institutions, and in some cases, private entities using majority EU or government funds. Contracting authorities can be ‘classical’ (general public bodies) or ‘sectoral’ (operating in water, energy, transport, or postal services).

An economic operator or bidder is any individual or legal entity that submits a tender in a procurement procedure. This may include companies, partnerships, or branches of foreign businesses operating in Malta. All bidders must comply with eligibility, technical, and financial requirements set out in the call for tenders.

A subcontractor is a party engaged by the main contractor (bidder) to fulfill part of the procurement contract. Subcontractors must be disclosed during the tender process and are subject to similar compliance rules as the main contractor.

View official CPV code list

Common Procurement Vocabulary (CPV) codes are used to classify the subject of procurement contracts. They create a standardized reference system across the EU to make tenders easier to find and compare.

Source: SIMAP – CPV codes

Procurement rules require the aggregation of similar purchases when estimating the contract value. If multiple purchases serve the same purpose, are expected within 12 months, and could be awarded to the same supplier, they must be treated as one procurement to avoid artificial contract splitting.

An electronic auction is a repetitive process using electronic means to allow tenderers to submit new, more competitive offers after an initial evaluation. It is used to obtain better pricing or value for specific parts of a bid.

Procurement procedures are classified based on contract value. If the estimated value exceeds EU thresholds, the procedure falls under the ‘EU regime’ and must comply with European directives. If it only exceeds national thresholds, the ‘national regime’ applies. Malta’s procurement thresholds are aligned with EU law but may differ in implementation.

Refers to public entities under the direct supervision of Maltese local councils, such as municipal offices, regional authorities, or administrative units that manage local services with public funds.

A legal or administrative decision granting one or a limited number of operators the right to carry out a specific activity or provide a particular service. Exclusive rights must be respected in procurement procedures and can justify restricted competition under certain conditions.

Includes all preparatory steps required to launch a procurement process: market research, defining estimated value, drafting contract notices and tender documentation. Proper preparation ensures transparency and efficiency.