Strengthening transparency in small-scale public procurement (CZ0048)

Brief Description of the Commitment

The commitment is aimed at strengthening the transparency of small-scale public procurement by amending the Public Procurement Act by adding additional elements of transparency and updating the methodology for small-scale procurement. The update of the methodology should contribute to the unification of the practice of public contracting authorities on this issue. Similarly, the methodological guidance for public procurement co-financed by EU subsidies should be updated.

1. What problem does the commitment aim to address?

Around 450 billion CZK is spent annually in small-scale public procurement without general rules for basic transparency of this public expenditure. There is thus a systemic risk of corruption, of inefficiency and of restriction of competition. The proposal to increase the limits for small-scale public procurement may increase this risk even further.

2. What are the causes of the problem?

For small-scale public procurement, there are no general basic transparency rules that would make it possible to determine, at least retrospectively, what has been awarded to whom and how. Similarly, there are no uniform binding rules on how to implement in practice the principles contained in Article 6 of the Public Procurement Act. Practice thus varies widely, ranging from the use of an overly formalized procedure similar to sub-limit contracts on the one hand, to the completely free award of contracts "off the cuff", which can pose a high corruption risk.

Commitment Description

1. What has been done so far to solve the problem? The Ministry of Regional Development issued a recommendatory methodology without much impact in practice. Page 31 (total 36)

2. What solution are you proposing?

The solution is built on 3 pillars: 1) Introduction of basic elements of transparency in the Public Procurement Act for public contracts above CZK 1,000,000, i.e. at least ex post publication of the method of supplier selection. 2) Issuance of an updated version of the recommended methodology for small-scale public procurement. 3) Modification of the methodological guidelines for public procurement from EU subsidies for them to be in line with the central recommending methodology (for the public procurement subsidized from EU funds the methodology will de facto become binding).

3. What results do we want to achieve by implementing this commitment?

Strengthening the transparency of small-scale public procurement and enhancing the legal certainty of contracting authorities regarding the procedure considered to be in line with the principles of Section 6 of the Public Procurement Act. Increased competition in the small-scale public procurement.

1. How will the commitment promote transparency? How will it help improve citizens’ access to information and data? How will it make the Government more transparent to citizens?
Strengthening transparency is a key objective of the commitment. Specifically, transparency of small-scale public procurement above CZK 1 000 000 will be strengthened. This financial threshold is already contained in the Public Procurement Act, where it is the financial level above which even the smallest municipalities are obliged to meet the minimum legal requirements, which also imply the obligation to set up a contracting authority profile. It can also be added that from CZK 500,000 onwards, the recipients of subsidies are subject to the obligations of the methodological guidelines for the subsidized public procurement, i.e. the level from which the recipients of subsidies are obliged to compete and fulfil other obligations arising from the methodological guidelines.

2. How will the commitment help foster accountability? How will it help public agencies become more accountable to the public? How will it facilitate citizens’ ability to learn how the implementation is progressing? How will it support transparent monitoring and evaluation systems?

There will be increased accountability of contracting authorities, whose small-scale public procurement will comply with minimum standards for justifying the selection of a supplier in addition to the existing obligations. A significant number of contracting authorities already comply with these minimum data standards. Thus, the harmonization of obligations will only lead to a harmonization of public procurement practice.

3. How will the commitment improve citizen participation in defining, implementing, and monitoring solutions?

Anti-corruption civil society organizations will be involved in the development of rules for small-scale public procurement. Strengthening transparency will also allow citizens to form their own opinion on the efficiency of public spending by contracting authorities

Milestones | Expected Outputs | Expected Completion Date

Amendment to Act No. 134/2016 Coll., on Public Procurement, as amended | Act No. 134/2016 Coll., on Public Procurement, strengthening the transparency elements for public procurement above CZK 500,000. | 12/2026

Update of the methodology for small-scale public procurement | Updated methodology published on the portal of the Ministry of Regional Development | 12/2025

Modification of the methodological guidelines for public procurement co- financed by EU subsidies according to the updated methodology | Updated methodological guidelines for public procurement from EU subsidies | 12/2025