Economic and market impact
Legal Regulations
We conduct procedures for awarding contracts for public and non-public supplies, services and works as an employer in accordance with the provisions of the Act of September 11, 2019 – Public Procurement Law (hereinafter: PPL or the Act) and its secondary legislation, as well as the Procurement Procedures at PSE S.A. (hereinafter: Procurement Procedure).
Conditions of participation in the procedure
Contractors meeting the following conditions may compete for the PSE contracts:
Additionally, the contractor may not be subject to exclusion from the procurement process.
- holding powers to perform specific activity or operation if the provisions of law impose an obligation to hold them;
- having expertise and experience;
- having appropriate technical potential and persons capable of performing the contract;
- required economic and financial standing.
Additionally, the contractor may not be subject to exclusion from the procurement process.
Contract award procedures
The procedures are governed by the Public Procurement Law and the PSE Procurement Procedures. In order to maintain the transparency of contract awarding activities, we prepare and conduct procedures for the award of public and non-public contracts in accordance with the basic principles of:
- fair competition,
- impartiality and objectivity,
- equal treatment of contractors,
- transparency.
These principles are fundamental to public and non-public procurement and follow from the provisions of the Public Procurement Law and the Procurement Procedures.
As an employer, we comply with the above-mentioned principles both in the preparatory phase and in the conduct of procurement procedures - in the preparation of the terms of reference for the contract and in the appointment of the tender committee. Activities associated with the preparation and conduct of the procurement procedure are performed by persons who ensure impartiality and objectivity.
As an employer, we comply with the above-mentioned principles both in the preparatory phase and in the conduct of procurement procedures - in the preparation of the terms of reference for the contract and in the appointment of the tender committee. Activities associated with the preparation and conduct of the procurement procedure are performed by persons who ensure impartiality and objectivity.
Fair competition principle
The principle of fair competition is the most important principle of conducting and awarding tender procedures. It allows any interested party equal access to procurement information and to the procurement itself. The fair competition principle applies to, among others, the description of the conditions of participation in the procedures, the manner of submitting declarations, requests, notifications and information.
Sometimes individual tendering procedures impose a minimum number of potential contractors, so as to guarantee the principle of fair competition. This principle should also be kept in mind when preparing the description of the subject of the contract. The subject of the contract cannot be described in a way that might hinder fair competition, i.e. the subject of the contract should be described in an unambiguous and exhaustive manner, using sufficiently precise and intelligible terms, taking into account all requirements and circumstances that may affect tender preparation.
Sometimes individual tendering procedures impose a minimum number of potential contractors, so as to guarantee the principle of fair competition. This principle should also be kept in mind when preparing the description of the subject of the contract. The subject of the contract cannot be described in a way that might hinder fair competition, i.e. the subject of the contract should be described in an unambiguous and exhaustive manner, using sufficiently precise and intelligible terms, taking into account all requirements and circumstances that may affect tender preparation.
Conducting a procedure in a manner that ensures fair competition requires adherence to the following rules:
- admitting multiple contractors to participate in the procedure,
- setting requirements that guarantee access to the contract only to reliable contractors,
- defining the terms and conditions of the contract in a way that allows contractors to prepare a competitive bid.
The principle of fair competition must also be complied with by contractors. Submitting a bid that constitutes an act of unfair competition is a ground for rejecting the bid.
Principle of equality
The principle of equality, also known as the principle of equal treatment of bidders, dictates that all contractors should be treated on an equal footing with identical criteria. An employer may not apply requirements that prefer a particular contractor. Compliance with the principle of equal treatment consists primarily in applying the same measure to all contractors, i.e. setting the same requirements, the same verification of their fulfillment and consistency in their enforcement.
When preparing the procedure, the employer defines in the terms of reference its requirements relating to the subject of the contract (objective), the manner of its performance (contractual) and the person of the contractor (subjective). The employer should also specify the manner in which contractors will be required to confirm compliance with these requirements.
When preparing the procedure, the employer defines in the terms of reference its requirements relating to the subject of the contract (objective), the manner of its performance (contractual) and the person of the contractor (subjective). The employer should also specify the manner in which contractors will be required to confirm compliance with these requirements.
Conducting the procedure in a manner that guarantees equal treatment of contractors requires adherence to the following rules:
- defining requirements in a manner that is the same for all contractors interested in being awarded with the contract,
- specifying the method of confirming that the requirements are the same for all,
- making decisions specified in the terms and conditions of the contract in accordance with the results of the evaluation resulting from the comparison of information and documents submitted by the contractor with those required.
The principle of equality applies at each stage of the procedure, both in setting the conditions for participation in the procedure and in evaluating submitted bids and selecting the most advantageous bid. It means prohibiting discrimination against contractors due to the contractor's legal status, the contractor's location, or the contractor's characteristics.
Principle of transparency
One of the requirements for implementing the principle of transparency is openness of the procedure, understood as access to related information on equal terms for all interested participants in the procedure, as well as conducting the procedure with maximum impartiality and objectivity.
Contracts awarded
High standards and consistent guidelines for contractors' collaboration with local communities, which we care about every day, are important to us. All activities performed by PSE's contractors are carried out as activities of our organization and affect the perception of the company's image as an investor. When working with contractors and suppliers, we are committed to building lasting relationships and partnerships. When working with a wide range of suppliers, it is important to ensure that social responsibility standards are met.
In 2020 PSE awarded 421 contracts for the implementation of investment tasks, supply of goods and purchase of services to 320 contractors for a total amount of PLN 863,461,540. As much as 99.56 percent of the contract value was awarded to Polish contractors, 0.36 percent to contractors from European Union states and the remaining 0.08 percent to contractors from outside the European Union.
PSE's main groups of suppliers are: investment, modernization and maintenance contractors for network assets, suppliers of instruments and equipment, and companies providing services.
Our procurement policy is implemented in accordance with the Act of September 11, 2019 – the Public Procurement Law together with secondary legislation issued to the Act, Directive 2014/25/EU of the European Parliament and of the Council of February 26, 2014 on procurement by entities operating in the water, energy, transport and postal services sectors, Directive 2009/81/EC of the European Parliament and of the Council of July 13, 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defense and security, and Commission Interpretative Communication on the Community law applicable to contract awards not or not fully subject to the provisions of the Public Procurement Directives (2006/C 179/02).
Our procurement policy is implemented in accordance with the Act of September 11, 2019 – the Public Procurement Law together with secondary legislation issued to the Act, Directive 2014/25/EU of the European Parliament and of the Council of February 26, 2014 on procurement by entities operating in the water, energy, transport and postal services sectors, Directive 2009/81/EC of the European Parliament and of the Council of July 13, 2009 on the coordination of procedures for the award of certain works contracts, supply contracts and service contracts by contracting authorities or entities in the fields of defense and security, and Commission Interpretative Communication on the Community law applicable to contract awards not or not fully subject to the provisions of the Public Procurement Directives (2006/C 179/02).
Key figures
| Completed contract award procedures | |||
|---|---|---|---|
| 2020 | 2019 | 2018 | |
| Number of contracts | 421 | 481 | 448 |
| Value of contracts (in PLN thousand) | 863 462 | 1 953 755 | 2 320 040 |
In 2020, contracts were signed for much lower values in transmission services and investments (civil works) for supplies.
Number of contractors, subcontractors, and suppliers with whom cooperation has been conducted for several years (2016-2020)
| In-house indicator Number of contractors, subcontractors, and suppliers with whom cooperation has been conducted for several years (2016-2020) | |||
|---|---|---|---|
| Period of cooperation | Number of contractors | ||
| 1 year | 692 | ||
| 2 years | 209 | ||
| 3 years | 66 | ||
| 4 years | 40 | ||
| 5 years | 28 | ||
Cooperation with contractors and subcontractors
Investment processes for the construction, expansion and modernization of network assets are handled by our Central Investment Unit (hereafter: "CIU"). It is responsible for the entire process - from listing the project in the investment portfolio, through the contract award procedure, to the moment of completion.
Procurement processes for CIU are handled by the Department of Public and Non-Public Contracts (hereinafter: WZ). The department takes the lead role in conducting and awarding CIU investment contracts. In addition to activities related to the conduct of contract award procedures, the Department performs advisory and support functions for internal customers on all issues related to the conduct of procedures - both public and non-public.
In 2020, WZ prepared our organization for the amendment to the Public Procurement Law of September 11, 2019 (hereinafter: PPL or the Act) becoming applicable. This amendment was the largest amendment to the PPL since 2004. The degree of the changes made it necessary for entities involved in contract award procedures to familiarize themselves with the changes and to train persons responsible for public contracts on the changes made.
Procurement processes for CIU are handled by the Department of Public and Non-Public Contracts (hereinafter: WZ). The department takes the lead role in conducting and awarding CIU investment contracts. In addition to activities related to the conduct of contract award procedures, the Department performs advisory and support functions for internal customers on all issues related to the conduct of procedures - both public and non-public.
In 2020, WZ prepared our organization for the amendment to the Public Procurement Law of September 11, 2019 (hereinafter: PPL or the Act) becoming applicable. This amendment was the largest amendment to the PPL since 2004. The degree of the changes made it necessary for entities involved in contract award procedures to familiarize themselves with the changes and to train persons responsible for public contracts on the changes made.
The amendment to the Public Procurement Law of September 11, 2019 became applicable on January 1, 2021. The amended Act is clearer and broader than the previous one - it contains 623 articles compared to the previous 227. The Act organizes, clarifies, and introduces, among other things:
Separate rules for national and EU contracts.
The new PPL clearly distinguishes between procedures for so-called EU contracts (i.e. contracts with a value above the EU thresholds) and so-called national contracts - with lower values.
Mandatory digitization of national contracts.
In addition to the current full digitalization for EU contracts, the legislator has introduced similar amendments in national procedures. This means that from January 1, 2021, bids must be submitted electronically in all procedures. Bids submitted as hardcopy will result in mandatory rejection of the bid.
Changing the rules for counting the time limit for inquiries to the Terms of Reference.
The time limit for submitting inquiries to the Terms of Reference was toughened and now the employer is obliged to provide explanations immediately, no later than 4 (national contracts) or 6 (EU contracts) days before the time limit for submission of bids, provided that the request for clarification of the contents of the Terms of Reference was received by the employer no later than 7 or 14 days respectively before the closing date for submission of bids.
Binding period of the offer.
In the event that a bid is not selected within the binding period, the employer may call on the contractors once to extend the binding of the bid, with a possible extension of the security deposit. If a bid is not selected within this period, the employer calls upon the highest-rated contractor to agree to the selection of its bid under pain of rejection.
New bid opening rules.
The legislator has changed the rules for opening bids. Currently, the employer has the ability to open bids even on the day after the closing date for their submission (previously, such action would have resulted in cancellation of the tender). In the event of a failure of the computer system by means of which the employer conducts the procedure, the opening of bids will be possible after the failure has ceased. The new regulation does not provide for public and open opening of bids, but only require the employer to make the information available on the website, and only to the extent of the contractor's data and the bidding price.
A broader obligation to submit declarations of impartiality.
Under the new provisions of the Public Procurement Law, a declaration of impartiality is required not only from persons responsible on the side of the employer for performing actions in the procedure, but also from persons awarding public contracts on behalf of the employer, including persons concluding a public contract.
Revised grounds for bid rejection.
The new Act modifies the catalog of grounds for bid rejection. It indicates that the following bids are subject to rejection:
- submitted after the specified closing date (thus far, this was not implied by the provisions of the Act);
- where the contractor has not consented in writing to the selection of its bid after the binding period has expired;
- which have not been prepared or submitted in accordance with the technical and organizational requirements using electronic means of communication specified by the employer;
- which have been submitted by contractors which were subject to exclusion or contractors which failed to prove that they met the conditions for participation or failed to submit the required documents (until now this was the ground for excluding the contractor).
Contents of a public contract agreement.
The legislator amended a number of provisions intended to balance the position of the parties to contracts and define the rules for shaping the relationship between them. The new provisions include, among other things:
- introduction of a catalog of prohibited clauses concerning, for example, the prohibition on establishing the contractor's liability for delay;
- the ability of the employer to limit the scope of the contract without indicating a minimum value or size of the parties' performance;
- indication of mandatory provisions in the contracts, rules for determining the term of contract performance;
- introduction of principles for valorization of the contractor's remuneration;
- introduction of principles for evaluation of the contract performance;
- introduction of the obligation to use advance payments or partial payments for contracts lasting more than 12 months.
Lowering the good performance bond.
The new act fundamentally limits the threshold for the amount of the bond that an employer can demand to 5 percent of the price. A 10% bond is allowed only if it is justified by the subject of the contract or by the risk described in the documentation related to the contract performance.
Due to the amendment of the Public Procurement Law, the internal regulations of our organization have been changed, including the Contract Awarding Procedure at PSE and the Specific Conditions for Contract Awarding at CIU. They have been aligned with the existing legal status. Fully electronic contract handling has also been introduced. Contract awarding procedures at PSE are conducted on the Procurement Platform, which is a comprehensive tool that supports the procedure for awarding non-public and public contracts in accordance with the guidelines of the amended Act. The application supports the handling of procedures in all statutory and non-statutory modes and electronic communication with contractors in terms of publishing contract notices, collecting bids, sending the Single European Procurement Document and other information exchanged during the contract award process.
Due to the amendment of the Public Procurement Law, the internal regulations of our organization have been changed, including the Contract Awarding Procedure at PSE and the Specific Conditions for Contract Awarding at CIU. They have been aligned with the existing legal status. Fully electronic contract handling has also been introduced. Contract awarding procedures at PSE are conducted on the Procurement Platform, which is a comprehensive tool that supports the procedure for awarding non-public and public contracts in accordance with the guidelines of the amended Act. The application supports the handling of procedures in all statutory and non-statutory modes and electronic communication with contractors in terms of publishing contract notices, collecting bids, sending the Single European Procurement Document and other information exchanged during the contract award process.