📋 Tender Overview
Since 2018 competition in the procurement of road construction works of Latvian State Roads has doubled. Competition is increasing from year to year if in 2018 there were on average 2.11 bidders per procurement then in 2022 they were already 4.07 bidders. Competition is also increasing in bridge construction procurement and has almost doubled since 2018 from 1.77 bidders to 2.78 bidders in 2022. The bridge construction market in Latvia is small and there are fewer bridge construction companies in general than road construction companies moreover foreign companies also participate in road and bridge construction procurements therefore the number of bidders in bridge construction procurements is smaller than in road construction procurements.Along with significant competition in recent years there has been a decrease in prices in LVC procurements. Last year thanks to timely procurements and competition in them savings of almost 24 million euros had formed in procurements carried out by February 11 therefore it was possible to carry out a review of contract prices for already concluded contracts as well as to conclude contracts with higher costs after February 24.Effective planning timely procurement and competition in procurement were prerequisites for us to be able to solve this years crisis with the sharp increase in road construction costs after February 24. Without the economy that had developed at the beginning of the year as a result of procurements we could hardly cope with this challenge faster and more efficiently than other public sector customers and the performance of the 2022 road construction season would be much smaller emphasizes Mrti Lazdovskis Chairman of the Board of LVC.The opposite trend has been observed in the last three years in procurement for the design of construction works where the number of bidders is decreasing. This may be explained by the fact that only a few companies specialize in the design of road construction works and their capacity is limited while the volume of orders for road design over the past three years has been significantly higher taking into account also the activities of RailBaltic therefore the capacity of the industry has been exhausted. In 2019 LVC had 4.43 bidders in road design procurements compared to 3.04 last year.The LVC procurement system has undergone a number of improvements in recent years which helps to plan and organize the procurement process more efficiently. In 2019 an audit of Ernst Young was carried out with the aim of evaluating the state-funded procurement process carried out by LVC. The audit concluded that the processes comply with the regulatory framework and received recommendations - to develop guidelines for state-funded procurements and the rules of procedure of the procurement commission. With the introduction of audit recommendations guidelines for conducting state-funded procurements were approved in 2020. They describe in detail the principles of procurement and the actions to be taken by procurement commissions in their work covers the entire process related to procurement and excludes subjective evaluation to the maximum. Guidelines have been developed for each part of the procurement processFor procurement planning and the subject of the contractFor the determination of the estimated contract priceSelection of the procurement procedureGeneral principles for the development of procurement regulations definition of uniform requirements maintenance of guidelinesDefinition of procurement requirementsQualification of applicantsTechnical offerFinancial offerContractContract specificationsRequirements for guarantees to be lodgedEvaluation of tendersIn 2020 the rules of procedure of the LVC Procurement Commission were also approved as well as the internal structure of the company was changed as a result of which the Procurement Department has come under the direct authority of the Chairman of the Board of the LVC until then it was under the management of the Director of the Construction Department.As it is known on Tuesday January 31 at the Riga Technical University RTU conference center at Zundas street 8 VSIA Latvian State Roads LVC organized a conference Capital investments in the state road network procurement and competition. A recording of the conference is available on the LVC Facebook account.
