Tips and Tricks for Foreign Bidders in Latvian Public Tenders

The Latvian government is set to increase spending on IT and defence in the coming years. While the Latvian legal framework aligns closely with harmonised EU rules on public procurement, it is known for its meticulous adherence to these rules, offering less flexibility than other EU member states. Here, our public procurement team shares tips and tricks gathered over 20 years of helping foreign bidders succeed in Latvian tenders.

Choose the Optimal Bidder

One of the main pitfalls in planning to bid in a Latvian public tender, which often leads to increased legal costs, is contract modifications. These typically arise from decisions regarding the bidding entities and contract review.

Foreign companies often tender for Latvian work within a consortium. However, these consortia are usually designed to comply with exclusion rules and are not necessarily intended to execute the contract. Under Latvian law, amendments to the composition of the consortium or bidding entities are only permitted due to restructuring or other objective grounds. Therefore, we recommend ensuring that the bidding entity or consortium is the same as the one that will execute the contract if you win the tender. To retain some flexibility during the execution phase, an arrangement with subcontractors is advisable, as they can be replaced.

Review the Procurement Contract

Another common reason foreign bidders seek to modify the procurement contract is that it is incompatible with their business practices, service algorithms, and similar practices. These modifications should be addressed before filing the bid.

Latvian contracting authorities typically include draft contracts in the tender documents and use FIDIC for large construction projects. Review these carefully before bidding, as they often contain non-negotiable terms. For example, Latvian public sector payment schedules can be longer than what foreign companies are accustomed to, sometimes extending to 30-60 days after delivery and invoice approval.

Additionally, check for specific Latvian requirements. Some contracts may include provisions related to Latvian law, such as those concerning the Labour Law, environmental regulations, or IPR that differ from those of other EU member states.

Address Language Requirements Effectively

While an increasing number of tender documents are available in English, executing a procurement contract in Latvian may still be necessary, especially for services. Larger tenders may allow documents in English, particularly technical offers, but this varies by contracting authority.

A frequent requirement in service contracts is delivery of documents and communication with the contracting authority in Latvian. Therefore, verify the language requirements for each tender and budget accordingly.

Raising Objections to Tender Documents and Appealing Awards is Normal

Foreign bidders, especially from Scandinavia, are often reluctant to raise objections to tender rules that are incompatible with industry practices or show favouritism towards a specific producer. However, this is standard practice in Latvia – the Procurement Monitoring Bureau reviews around 500 complaints annually.

A typical Latvian tender starts with the contracting authority consulting with the market about the draft tender documents and publishing the official tender notice later. In case of objections, contracting authorities usually receive them first via clarification requests. We recommend filing a complaint with the Procurement Monitoring Bureau if the contracting authority declines to adjust the tender rules to meet fair competition requirements. This must be done approximately a week before the bid filing deadline.

Moreover, should you find that the winner of a tender is lacking the required experience or simply unable to ensure the required service level, an appeal of the award could lead to review of the bids in approximately 30% of the cases.

Conclusion

Latvia’s public procurement market offers significant opportunities for foreign companies willing to invest time in understanding the local system. Strict adherence to procurement regulations is essential, and with careful planning, your bid is likely to succeed.