Abstract

This article discusses the awarding of contracts worth less than PLN 130,000 (excluding VAT), which fall outside the scope of the Public Procurement Law. Despite their exclusion from the formal procurement framework, the substantial volume of these contracts means that they must be scrutinised in light of public expenditure regulations. Under the Public Finance Act, public expenditures must be made with a focus on efficiency and cost-effectiveness, ensuring the optimal allocation of resources and the use of optimal methods and means to achieve the intended objectives. These principles extend to sub-threshold contracts as well. Such contracts must adhere to the principle of ensuring that public funds are expended in accordance with the approved budget and financial plan of the public sector entity. A failure to comply with this requirement may result in liability for violating public finance discipline.
The article also addresses the significance of internal regulations adopted by various public entities for the award of lower-value contracts. While contracting authorities are prohibited from extending the provisions of the Public Procurement Law to these smaller contracts, many entities choose to incorporate some of the law’s principles into their internal policies. This commitment often includes adherence to key principles, notably those ensuring fair competition in the procurement process.