As a professional, it`s important to understand the concept of the “concession contract threshold” and how it impacts businesses.
A concession contract is a legal agreement between a public authority and a private company, where the private company is granted the right to operate a service or facility on public property. This can include anything from operating a restaurant in a public park to managing a transportation system in a city.
The concession contract threshold is a financial limit set by the European Union (EU) for public authorities when awarding concession contracts. The threshold is based on the value of the contract and the type of service or facility being offered. According to EU regulations, any concession contract with a value over a certain amount must be awarded through a competitive tender process.
For example, if a public park wanted to award a concession contract for a restaurant, and the value of the contract is above the threshold, they must open up a competitive tender process which allows other companies to submit bids for the contract. This ensures that the selection process is fair and transparent, and that the best company is selected to run the service or facility.
The concession contract threshold varies depending on the service or facility being offered, and is updated by the EU every two years. For example, for concession contracts involving transport services, the threshold is currently set at €5,350,000, while for concession contracts involving social and other specific services, the threshold is set at €750,000.
It`s important for businesses to understand the concession contract threshold, as it can impact their ability to bid on and win contracts. If a contract falls below the threshold, it may be awarded through a simpler process and may be more accessible to smaller businesses.
Overall, the concession contract threshold ensures that public authorities follow fair and transparent processes when awarding concession contracts, and allows for healthy competition in the business world. Businesses should stay informed about changes to the threshold and be prepared to participate in a competitive tender process if necessary.