Procurement category: construction works.

Social impacts targeted: employment of people from disadvantaged background.

Relevant EU legislation/policy/guidance:  Article 70 of Directive 2014/24/EU; ‘Buying social’ guide.

Background

Vranov nad Topľou is a city of approximately 22,500 inhabitants in eastern Slovakia, situated near Košice and Prešov, and between the Topľa River and the Ondava River. The Upper Zemplín Library in Vranov nad Topľou is a contracting authority pursuant to § 7 par. 1 letter d) of Act 343/2015 on Public Procurement and on Amendments to Certain Acts, as amended.

Act No.112/2018 Coll. on the Social Economy and Social Enterprises defines disadvantaged person‘ as ‘a natural person who:

• a) in the previous 6 months has not been in employment other than employment not exceeding in the aggregate 40 days in a calendar year, and if the total monthly salary or remuneration has not exceeded the amount of the subsistence minimum for one adult under a special regulation, where such person:

  1. is less than 26 years of age, has completed their systematic vocational preparation with the appropriate degree of education in full-time study courses less than 2 years and failed to acquire their first employment, lasting at least 6 consecutive months;

  2. is older than 50 years;

  3. is incorporated in the register of job seekers for at least 12 consecutive months;

  4. has completed less than secondary vocational education under a special regulation;

  5. lives as a solitary adult with one or more people dependent on their care or cares for at least one child before the end of compulsory education;

  6. belongs to a national or ethnic minority and needs to develop their language skills, expertise, or gain work experience for the purpose of finding permanent employment; or

  7. is permanently resident in the least developed district;

• b) is a person with disabilities.’

In Slovakia, the Office for Public Procurement is responsible for overseeing the compliance of contracting authorities with the obligations set out in the Public Procurement Act. The Office gives guidance on methodology to the contracting authorities and economic operators involved in the process of public procurement. It also supervises public procurement, adjudicates on complaints by tenderers or candidates, and has the authority to instigate an audit of a public procurement procedure.

Procurement objectives  

The subject of the contract is the reconstruction and modernisation of the multifunctional building of the cultural centre and library in the Municipality of Vranov nad Topľou. The contract has partly been co-financed by a project grant under the Norwegian Financial Mechanism, provided to the contracting authority by the Ministry of Investment, Regional Development and Informatisation of the Slovak Republic. The remaining part has been financed from the contracting authority's own resources.

By means of this public contract, the contracting authority intended to create a facility that not only could serve the general public, but would also provide support to people from disadvantaged groups. The specific goal is to increase their employability, maintain their work habits, and make them acquire new skills and experiences.

Tender requirements

The tender documents included an employment clause in the contract performance conditions.

Contract performance conditions

Employment claue: The successful tenderer had to ensure the creation and maintenance of at least two jobs for disadvantaged persons, according to the definition specified in Section 5 (a) (1) to (7) of Act No.112/2018 Coll. on the Social Economy and Social Enterprises, throughout the entire implementation of the contract.

The contracting authority is entitled to verify the fulfilment of the contractual condition at any time during the effectiveness of the Contract for Work. The successful tenderer shall, upon the request of the contracting authority, submit documents proving the conclusion of an employment relationship for an indefinite period, or at least for the duration of the Contract for Work with the disadvantaged persons defined above. 

Results

The total tender amount was EUR 5 776 384,09 excluding VAT. The duration of the contract was 24 months. Three economic operators submitted a tender.

The Public Procurement Office audited this public contract.

Social impacts

The successful bidder employed 3 people with a disadvantaged background for an indefinite period before signing the contract. One person is younger than 26 years of age and 2 people are older than 50 years of age. They were registered at the labor office and at the same time they also met the condition of permanent residence in the least developed Districts, which Vranov nad Topľou belongs to.

The inclusion in the tender documents of the contract performance condition to employ persons from disadvantaged groups was preceded by a consultation with the District labor office in order to determine the characteristics and number of this group in the records of the office.

Lessons learned

The employment status of these disadvantaged people is checked on an ongoing basis by the contracting authority.

For the contracting authority, cooperation with the District Labour Office has been crucial. Such cooperation has existed for long time to ensure employment of people from a disadvantaged background by means of procurement.

More information

Contact the Public Procurement Office, Department of Education and Socially Responsible Public Procurement.

Tender documents available online.