The Swedish competition authority has determined that Arvika Näringslivscentrum engaged in unlawful direct procurement for construction work related to the installation of a cooling system. As a result, the authority has mandated that the center pay a procurement damage fee.

The investigation was initiated following a tip-off regarding the improper procurement practices by Arvika Näringslivscentrum. It was found that on May 7, 2024, the center entered into a contract with a supplier without prior advertising, which is a requirement under public procurement law.

The contract included a total price for the installation, a fixed price, and a price list for additional work. However, the costs for certain tasks were not included in the initial bid, which raised concerns about the legality of the procurement process.

On May 28, 2024, a modification agreement was signed, which included a fixed price and additional work costs. The total value of the original contract exceeded the threshold for direct procurement, leading to the authority's conclusion that the procurement was illegal.

While Arvika Näringslivscentrum acknowledged the authority's assessment, they argued that the violation pertained only to a limited part of the procurement. They claimed that the need for additional work was not known beforehand.

However, the competition authority maintained that an estimation of the costs for additional work should have been included in the total procurement value. Given that a price list for additional work was requested in the initial contract, it was clear that there would be a need for further tasks.

Consequently, Arvika Näringslivscentrum has been ordered to pay a fine of 95,000 kronor for the unlawful direct procurement.