The Latvian competition authority, known as KP, has issued guidelines for public procurement related to sound, lighting, and stage equipment as municipalities prepare for various entertainment and cultural events this summer. The authority has received numerous complaints regarding potential competition restrictions in these procurements, including conflicts of interest, biased evaluation criteria favoring certain companies, and practices surrounding the cancellation of procurement processes.

According to Article 14.1 of the Competition Law, public entities are prohibited from hindering, restricting, or distorting competition, which is referred to as the obligation to maintain competition neutrality. This means that public procurement processes must be thoughtful, fair, transparent, and designed to encourage participation from a wide range of bidders. Ensuring competition in procurement allows for the acquisition of the highest quality services at the most economically advantageous prices.

To assist procurement officials in avoiding competition restrictions and violations of competition law, KP has compiled case studies and developed recommendations for those organizing procurements for stage equipment. Key recommendations include conducting thorough market research before announcing a procurement, preventing conflicts of interest by preparing technical specifications independently, and ensuring objectivity in the evaluation of bids.

KP also highlights the importance of assessing the validity of low bids and ensuring that quality criteria are aligned with fair competition principles. The authority warns that overly restrictive criteria can discourage bidders, particularly if local market participants are favored. Additionally, KP emphasizes the need to minimize bureaucratic burdens and ensure that procurement processes are not unduly complicated.

Finally, KP stresses that inaction by procurement officials in response to signs of competition law violations can be interpreted as facilitating or supporting cartels, as well as breaching competition neutrality. The authority encourages procurement officials to familiarize themselves with its self-assessment tool for public procurement.