📢 PUBLIC PROCUREMENT TREFF IS BACK!

🔎 NEW! HankeRadar Newsletter by Matteus  Law Firm 📬
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European Parliament and Council Regulation (EU) 2024/1781, also known as the Ecodesign Regulation, is an important step in promoting environmental sustainability and circular economy principles within the European Union. This regulation, which came into effect on July 18, 2024, expands ecodesign requirements to nearly all physical products, including steel, aluminum, textiles, tires, furniture, and chemicals. Currently, the European Commission has not yet issued specific guidelines for procurers regarding this regulation, so it is crucial to remain alert for when the relevant guidelines will be finalized. 🌿

The conference "EU Public Procurement anno 2025 – Are the rules fit for purpose?" took place in Copenhagen on April 23–24, 2025, offering an insightful and future-oriented discussion on the EU public procurement framework. As a participant, I had the opportunity to listen to the views of various experts, policymakers, and practicing specialists, reflecting the widespread need to update the existing rules and make the entire system more effective and goal-oriented.

On May 9th, we met with ITL Estonia members at a morning seminar organized by Advokaadibüroo Matteus and ITL.

Attorney-at-law Kadri Matteus successfully represented Rail Baltic Estonia in the Public Procurement Review Committee in a dispute arising from the “public procurement of the century”. What makes the public procurement special is its estimated cost of almost 1 billion euros and the fact that it is carried out according to the principles of alliance procurement.

Merily Rool wrote an article for the "Successful Estonia" opinion contest. Merily is convinced that a significant portion of both public and private sector resources is wasted unnecessarily. Regular training, well-structured procurement documents, trusting suppliers, and effective procurement tools are key factors that, if developed, could help create an efficient and transparent public procurement system.

At the beginning of April, the partner of the office, Kadri Matteus, trained specialists from the Ministry of Education and Research on how to prepare the technical description in public procurement. The technical description is the part of the procurement documents that outlines the subject of the procurement, or simply put, what the contracting authority wants to purchase.

Merily Rool published an opinion on ERR regarding the issue of local government candidacy rights. If the plan to change the eligibility to run for office passes, then essentially any citizen of Estonia or the European Union aged 18 or older could participate in discussions on local community issues in the city or municipal council. There may be no connection to the area, and therefore it is entirely expected that political tourists will increasingly be used as vote magnets in local elections.

We are delighted to announce that Matteus Law Firm has joined Estonian Association of Information Technology and Telecommunications (officially abbreviated as ITL) as an associate member!

In March, Merily Rool participated as a speaker and moderated the discussion at the exclusive Addenda roundtable "Burning Issues in Public Procurement," alongside the wonderful Erle Eks and Triinu Eismel. The event brought together public procurement professionals to discuss current topics and share experiences. ✏️

At the beginning of March, we continued the Think Tank with our procurement clients. This time, we focused on the most relevant topic: the future of public procurement in Estonia and the EU.

We took a look at the results of the simplification project led by the Ministry of Finance and discussed the pros and cons of the proposed changes that have the greatest impact. Simplification as an objective is great, but in reality, it must also be understood that the more streamlined the regulation is, the more challenging its everyday implementation becomes. The proposal with the greatest impact from the simplification project is to eliminate the national threshold and allow simplified procurements up to the international threshold, as well as raise the public procurement thresholds. The Ministry of Finance is currently working on an implementation plan to move forward with the selected proposals, and by the end of May, we should see which actual legal changes can be expected.

A Chinese proverb says that a journey of a thousand miles begins with the first step. What steps did we take in 2024?

The Estonian Business and Innovation Agency (EIS) now has new standardized procurement documents and contract templates for purchases made by recipients of apartment building renovation subsidies, which accelerate and simplify the procurement process for subsidy recipients.

✨The end of the year is a great time to share the work we've done so far! ✨ We have supported Ragn-Sells Estonia in resolving and managing various disputes related to concession agreements.

ICT tenders, with their unique characteristics, are very exciting. The government has several large competence centers where high-quality ICT tenders are conducted, but other procuring entities are sometimes also forced to dive into the complex world of ICT tenders. Therefore, it’s a good idea to approach an ICT tender with a well-thought-out plan.

In ICT tenders, there are many things that can go wrong, which can have a wide-ranging impact on the quality of national services, etc. When handling ICT tenders, it's always important to start with understanding which problem is being solved. However, we often see that procuring entities start with the question of how to conduct the tender. This starting point is not ideal because it assumes that the procuring entity already knows exactly what and how it needs to achieve. But is that always the case? I dare say that in the ICT field, it may not be, because ICT is creative.

We invite you to our client event on November 14, 2024, from 10:00 to 11:30 – Public Procurement and Collaboration Between Procurers and Suppliers.

The Public Procurement Act allows entrepreneurs to participate in tenders with the help of others, for example, through joint bids or subcontracting. One entrepreneur can "borrow" another company's resources to meet the qualification requirements set in the tender, but this right is neither absolute nor unlimited. It is also possible to collaborate on tenders, but it's important to remember that submitting a joint bid could also be considered prohibited cooperation under competition law.

We will share valuable advice on the permissibility and formalization of cooperation, including when it is advisable to collaborate as joint bidders or subcontractors, and what to consider when borrowing "resources" within group companies.

Location: Advokaadibüroo Matteus Office, Maakri 30, Tallinn (Skyon) or via Teams

Registration link.

On Thursday (October 3rd), we kicked off the new season of the Public Procurement Think Tank with an opening event at our new office in Skyon. We discussed reliance on third-party resources and the associated legal and practical issues.

Several of us shared interesting experiences and insights on how suppliers have approached this reliance. We also tried to collectively find solutions to borderline situations, talking about things as they really are.

The law firm is made up of the people who carry the firm’s values, work towards a common goal, and advise its clients. In short, it's a team. We are now two in the team!

🏆 In the fall, we always count our chickens, and Who's Who Legal released the results for this year's Government 2024 category on Friday. I'm very grateful to my clients and competitors for the recognition once again this year! :) "WWL: Government highlights the top lawyers worldwide for public procurement matters." The entire list provides a great overview of the top public procurement lawyers in Estonia. 👏

Read more: Who’s Who Legal: Government 2024 Rankings

But what exactly are lawyer rankings and recognitions like Who’s Who Legal, Legal500, and Chambers? These are legal ranking agencies that collect feedback from clients and market participants to determine who are the best lawyers and firms in their respective fields. While Legal500 and Chambers focus more on firm rankings (though Legal500 is increasingly rating individual lawyers as well), Who’s Who Legal specializes in evaluating individual lawyers, not firms.

Kadri wrote an opinion piece for ERR on mitigating security risks in public procurement in light of the Ministry of Finance's new guidelines. In summary, she points out that the Public Procurement Act, which regulates the procurement of services essential for vital services, doesn't mention security considerations as something that should take priority over promoting competition. Perhaps it's time to reconsider priorities and reframe national security protection as an important principle, alongside protecting competition and ensuring equal treatment. She is confident that these principles can coexist peacefully without threatening each other.

Read the article here: Kadri Matteus - Mitigating Security Risks in Public Procurement.

A New Business Season Begins – and So Do the Conferences!

On November 6, Addenda will host its annual Public Procurement Conference, where I’ll kick off the day with an overview of the most important rulings from the European Court of Justice over the past year. Every procurement lawyer should stay updated on these cases — and isn’t it nice when someone brings the key takeaways straight to your table? :)

Other topics worth mentioning:

• Mario Sõrm and Kadri Härginen will dive into the nuances of negotiated procedures without prior publication,

• Mart Parind promises a thought-provoking session on suppliers’ evergreen concerns,

• The conference will be moderated by Professor Mari Ann Simovart from the University of Tartu.

There are many more exciting topics on the agenda, so make sure to register for the conference, and see you on November 6!

AS Eesti Post has taken a strategic step by signing a contract with HERE Technologies to implement a dynamic route planning solution.

Elering has, for the first time, announced a public procurement for the acquisition of up to 500 megawatts (MW) of generation and storage capacities from the market, which are necessary for the independent frequency control of the electricity system.

Dear clients and partners – we have moved to a new location!

Starting from July, you can find us in the Skyon building at Maakri 30, 10145 Tallinn.

Stop by for a coffee and a chat – the view’s quite nice too :)

The season finale of the Procurement Think Tank took place on June 6, 2024, at the beautiful Bestwine studio, where we discussed procurement instruments such as framework agreements and dynamic purchasing systems. These tools offer significant time-saving opportunities for procurers, and we all agreed that they could be used more and more intelligently.

We supported the Bank of Estonia in conducting eight important public procurement processes from start to finish, ensuring a smooth and efficient process. The procurements covered various key areas: new IT developments, border crossing statistics evaluation, procurement of travel services, and finding a recruitment partner for the Financial Supervision Authority.

We also improved the working environment at the Bank of Estonia by procuring audio-visual equipment, maintaining ventilation systems, and furnishing meeting rooms. The total value of the contracts exceeds 4.6 million euros.

We assisted the City of Viljandi in signing a contract that ensures year-round maintenance of Viljandi's streets for the years 2024-2028. The maximum contract value exceeds 5 million euros.

Our work covered the entire public procurement process, including drafting the contract in a way that increased competition compared to previous tenders. Our goal was to reach an efficient and smooth agreement. We also completed all necessary procedural actions in the public procurement register.

Just before the start of summer, Kadri and Merily Rool will be discussing Dynamic Procurement Systems (DPS) and how they differ from framework agreements at the spring Public Procurement major event, Public Procurement Treff.

In the presentation, we will explore the theoretical framework of DPS, illustrated with examples from practice both from us and other parts of Europe. What are the advantages and developments of DPS, and what problems could DPS solve for the procurer? Is DPS attractive to suppliers, and have there been any challenges in practice when using DPS?

The Public Procurement Treff will be held for the tenth year, gathering hundreds of the most prominent professionals in the field! The largest procurers in Estonia and the most renowned procurement specialists will be there.

For more information and registration: https://www.addenda.ee/riigihangete-treff2024

In March, we held a Think Tank focused on strategic procurement. During the session, we discussed the six pillars of sustainable public procurement – reliable, environmentally friendly, socially responsible, innovation-supporting, reducing national security risks, and reasonable. Every public procurement should fulfill the first and last pillars, and there is also plenty of room to promote the other values.

Shared knowledge is powerful. I had the great opportunity to train the team at North Estonia Medical Centre (PERH) on how to prepare technical specifications for public procurement.

Can a cottage, house (or even an apartment) located on residential land be rented out for a short term for money?
Yesterday’s Pealtnägija covered a case of one of my clients, where the Lääne-Harju Municipality has taken the position that it is not allowed – for this purpose, the land must also have a business land designation.

Want to win procurement contracts in Estonia as a cross-border tenderer but do not have a good overview of the local system? Then look here to get to know the basics.

On March 20, 2024, we will take a broader look at strategic procurement, including the current challenges of sustainable public procurement across the European Union.

We will be joined by guest speaker Tarmo Kiivit, Partner at AS Helmes, who will share insights on sustainable IT procurement from a business perspective.

Procurement lawyer Merily Rool writes as a guest author on the State Procurement Blog about the possibilities for structuring framework agreements known to us. The focus of this post is on multi-supplier framework agreements, in which the conditions for concluding procurement contracts are fixed using the cascade method. Indeed, cascade method framework agreements have become increasingly common in Estonia, offering several advantages but also having various drawbacks.

Happy reading! 
https://riigihankeblogi.com/2024/02/21/raamleping-kaskaadmeetodil/

On January 30th, another Procurement Think Tank took place, with the focus this time being on amending procurement contracts.

What contracting authority has not at some point wondered whether and how it is possible to amend a procurement contract considering regulatory constraints? Absolutely all of them! Therefore, there are often more questions than answers, and it's good to be able to discuss them together. We discussed recent court decisions and practices regarding amending procurement contracts from the perspective of the participating institutions.

In November 2023, I attended the Estonian Public Procurement Conference and presented an overview of the European Court of Justice and General Court decisions in the field of public procurement from the previous year. The annual conference is a good opportunity to see familiar faces, meet new ones, and stay informed about developments in the field.

While the European Court interprets procurement directives mainly through preliminary rulings (usually recognizable by the letter "C" in the decision), it is also worth keeping an eye on General Court decisions (starting with the letter "T"). Although the General Court resolves procurement disputes involving EU agencies under the financial regulation, the court has found that when the regulation is the same as in the directive, the Court of Justice's decisions on interpreting the directive are taken into account and vice versa.

Here are some key takeaways from this year's decisions made before November 1, 2023:

In October, the first Public Procurement Think Tank was held, targeting clients from the office of procurers, with the following central themes:

• Relying on indicators of another person;
• Integrity of procurement documents - what is actually needed, and how much of the work done by the procurer is useless or duplicative, as the law already ensures it;
• Selection of compliance conditions in the Public Procurement Register.

Model tender documents have been prepared in accordance with the principles of legal design

From the Supreme Court's website, you can now read about the pillars of fair trial in the paradigm of administrative court procedure.

In October, the first Public Procurement Think Tank aimed at our office clients took place, focusing on the following topics:

• Relying on indicators from another person;
• Completeness of tender documents - what is actually needed and how much of the procurer's work is redundant or duplicative because the law already ensures it;
• Selection of compliance conditions in the Public Procurement Register.

On November 9, 2023, at the Public Procurement Conference, I was able to provide an overview of this year's European Court and General Court rulings in the field of public procurement. The annual conference is a great opportunity to see familiar and new faces and to stay updated on developments in the field.

On October 13, 2023, I chaired a panel on fair trial issues in administrative court proceedings at the Judicial Procedure Conference led by the Supreme Court. Our panel delved into the pillars of fair trial and procedural transparency. Participating in the panel were Supreme Court justices Nele Siitam and Julia Laffranque, a judge from the Tallinn Circuit Court and professor of administrative procedure at the University of Tartu, Villem Lapimaa, and Triin Kaurov, partner at the law firm TGS.

Rail Baltica is a project being developed in cooperation between three Baltic countries, and it is important for Estonian entrepreneurs to know which laws will come into force in Latvian public procurement law in 2023 and to learn from the typical mistakes that bidders make in tenders

In the organization of public procurement, there are structural problems that are surmountable but require broader discussion and awareness among all Estonian procurers. Violations of public procurement law are also a reason why structural funds often have to be repaid to the European Union, writes Kadri Matteus in a piece together with Marit Piirisaar.

The European Commission will start scrutinizing bidders in public procurement procedures who have received support from third countries. It is questionable whether the high expected value of the procurement contract required for the regulation to apply is still reasonable, writes Kadri Matteus.

Äripäev writes that Tallinn's plan to find a suitor for the Linnahall is of symbolic importance because it determines whether the area around the future conference center in the city center will be opened up to the sea or if Tallinn's coastline from Paljassaare to Reidi Road will be surrounded by a wall of luxury apartments and hotels.

Construction companies and other businesses that have entered into contracts with the state are often in a situation today where fulfilling contracts made before or even during the crisis has proven difficult. There are problems with both the availability of materials and raw materials, as well as fluctuating prices, which eat away at the planned profits of the entrepreneur. In extreme cases, the entrepreneur may even face bankruptcy if an agreement on changes with the contracting authority cannot be reached.