New draft law changes defence and security procurement

TIRANA, August 12 – The Ministry of Defence has opened public consultation on a new draft law on procurement in defence and security. The draft would replace Law No. 36/2020. The initiative takes into account comments from the European Commission and findings from the Support for Improvement in Governance and Management programme. It also seeks closer alignment with European Union Directive 2009/81/EC.

The draft covers military and sensitive equipment, related works, goods and services. Article 4 lists 36 definitions. The current law contains 30. New terms include electronic auctions, civil purchases, contracting entities, sensitive equipment and simplified procurement procedures. The draft narrows exemptions from the law. It removes general exemptions for crisis situations and extreme national security circumstances. It also removes general exemptions for military equipment, weapons, ammunition and war materials.

Meanwhile, the draft introduces 3 monetary thresholds. These include high, low and simplified-procedure thresholds. The Council of Ministers will set their values. Contracts below the low threshold may use the simplified procedure. The draft also introduces electronic auctions. Authorities may use them after the initial evaluation of offers. They will not disclose bidders’ identities during the auction.

In addition, the draft sets new rules for classified information and supply security. Subcontracting may cover up to 30% of the contract value. The draft reforms administrative appeals. The appeal period will last 10 days for procedures above the high threshold and 7 days for procedures below it. The Public Procurement Agency will conduct administrative investigations for up to 3 years after contract signing. Fines will range from ALL 20,000 to ALL 500,000 ALL.

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