Below-Threshold & Small-Scale Tenders: Thresholds, Award Procedures, and E-Procurement Tools in Practice

Czech public authorities issue tens of thousands of contracts every year, the vast majority of which fall below the EU above-threshold limits. For small and medium-sized enterprises, below-threshold contracts and small-scale contracts (VZMR — zakázky malého rozsahu) are the most accessible entry points into the Czech public procurement market. Yet many suppliers either dismiss these segments as "too small" or lose their way due to differing rules and information scattered across dozens of electronic systems.

This guide clearly explains the legal framework, current financial thresholds, mandatory contracting authority procedures, and practical tips on how to find contracts in time and submit a competitive bid.

1. Definitions and Thresholds 2024–2026

Act No. 134/2016 Coll., on Public Procurement (the PPA) divides public contracts into three categories based on their estimated value. The specific financial thresholds are set by Government Regulation No. 172/2016 Coll., which is updated regularly in line with EU regulations (revisions generally occur every two years). The values below are valid for 2024–2025; they must be verified against the current wording of the Government Regulation at the next revision.

Threshold Comparison Table

Update note: Above-threshold and below-threshold values are directly tied to EU directives and are amended by Government Regulation. Always verify the current wording of Gov. Reg. 172/2016 Coll. at eur-lex.europa.eu{target="_blank"} or in the Czech Public Procurement Journal (VVZ) at vestnikverejnychzakazek.cz{target="_blank"}.

Key principle: a contracting authority is required to estimate the anticipated contract value before initiating a procedure and to select the appropriate procedure accordingly. Intentional splitting of a contract to keep its value below a threshold is prohibited (§ 18(3) PPA).

2. Small-Scale Contracts (VZMR)

Legal Basis and Contracting Authority Obligations

Small-scale contracts are governed by § 27 of the PPA. The Act does not require the use of a formal award procedure for these contracts. However, the contracting authority must comply with the principles of transparency, proportionality, equal treatment, and non-discrimination (§ 6 PPA). In practice, this means that even for VZMR contracts, a demonstrable selection process must exist.

Each contracting authority sets out the specific conditions in its own internal directive on the award of small-scale contracts. These directives are usually publicly available on the contracting authority's profile or official notice board. They may, for example, stipulate:

• an obligation to invite at least three suppliers for contracts above CZK 500,000,
• the form of the invitation (e-mail, internal system),
• the deadline for submitting bids (typically 7–15 days),
• document archiving requirements.

When Must the Contracting Authority Publish the Contract?

Despite the more relaxed award rules, there is a statutory obligation to publish any contract with a performance value exceeding CZK 50,000 excluding VAT in the Contract Register (Registr smluv) under Act No. 340/2015 Coll., on the Register of Contracts. Without publication, the contract is void unless the contracting authority remedies this within the statutory period. For suppliers, the Contract Register at smlouvy.gov.cz{target="_blank"} is a practical intelligence tool: it allows you to retrospectively identify which suppliers a contracting authority repeatedly awards contracts to and at what prices.

Risks for Suppliers

The more permissive VZMR rules do not mean they are risk-free:

• The contracting authority may cancel the procurement without giving reasons, provided no contract has yet been signed.
• A bid submitted after the internal deadline is typically rejected automatically.
• The absence of a written contract (or purchase order) for amounts above CZK 50,000 exposes the supplier to the risk of non-payment.
• Performance rendered before the contract is published in the Contract Register may create legal complications for the contracting authority, which can in turn affect invoice payment timelines.

3. Below-Threshold Award Procedures

For contracts exceeding the VZMR thresholds but falling short of the above-threshold values, the PPA sets out two main procedures.

Simplified Below-Threshold Procedure (§ 53 PPA)

The simplified below-threshold procedure is the most common approach for contracts in the below-threshold band. The contracting authority publishes an invitation to submit bids on its contracting authority profile and simultaneously invites at least five suppliers. The deadline for submitting bids must not be shorter than 15 days from the date of publication of the invitation (§ 53(3) PPA).

Key characteristics:

• Mandatory publication of the invitation on the contracting authority's profile (not necessarily in the VVZ, though practice varies).
• Bids are evaluated against pre-determined award criteria.
• The winning bidder must demonstrate basic eligibility (§ 74 PPA) and professional suitability (§ 77 PPA).
• The outcome (award notice) is published on the contracting authority's profile.

Below-Threshold Open Procedure

An alternative is the open procedure in the below-threshold regime, whereby the contracting authority publishes a contract notice directly in the Czech Public Procurement Journal (VVZ). The bid submission deadline is generally a minimum of 30 days. This procedure is chosen by contracting authorities wishing to reach the widest possible pool of candidates or where required by internal regulations.

Qualification Requirements in Below-Threshold Procedures

Qualification requirements for below-threshold contracts are less stringent than for above-threshold contracts. Under § 56 PPA, the contracting authority may require:

• an extract from the Commercial Register or a trade licence,
• proof of liability insurance,
• a list of reference contracts completed in the past five years,
• quality certificates (ISO, etc.) only where this is proportionate to the subject matter of the contract.

Excessive qualification requirements that would exclude smaller suppliers without a substantive justification are contrary to the principle of proportionality.

4. Electronic Tools for Below-Threshold Contracts

The Czech Republic has several certified electronic tools for public procurement. For suppliers, it is essential to know which system a particular contracting authority uses.

Overview of the Main Platforms

NIPEZ (National Infrastructure for Electronic Public Procurement) oversees the certification of these tools. The current list of certified electronic tools is available at nipez.cz{target="_blank"}.

How to Register and Submit a Bid

The process varies from tool to tool, but generally involves the following steps:

1. Create a supplier account (a data mailbox or a qualified electronic signature is mandatory in NEN).
2. Search for a specific contract using its VVZ reference number or CPV code.
3. Download the procurement documents and review all conditions.
4. Compile the bid in the required format (PDF, ZIP archive with a specific structure).
5. Sign the bid with an electronic signature and upload it to the system before the deadline expires.

Common Technical Errors

• Uploading a bid in an unsupported format (e.g. an editable DOCX file instead of PDF/A).
• The electronic signature has expired or was not issued by an accredited certification authority.
• The bid is uploaded just minutes past the deadline (the system will reject it automatically).
• Registration in the system is completed just before the deadline, while account activation takes 24–48 hours.
• Omitting a mandatory attachment (commercial register extract, insurance certificate) results in the entire bid being disqualified.

5. How to Monitor VZMR and Below-Threshold Contracts

Why Monitoring VZMR Is More Challenging

Small-scale contracts are not legally required to be published in the Czech Public Procurement Journal (VVZ). Contracting authorities publish them on their own contracting authority profiles, official notice boards, internal portals, or send them directly to invited suppliers. This disperses opportunities across hundreds of different sources, making manual monitoring practically unworkable.

CPV Codes as the Foundation for Filtering

CPV codes (Common Procurement Vocabulary) are eight-digit numerical identifiers for the subject matter of a contract, mandatory for all formal procedures. For VZMR contracts, contracting authorities include them on a voluntary basis. Examples:

• 72000000-5 – IT services
• 45000000-7 – Construction works
• 79000000-4 – Business services
• 33000000-0 – Medical devices

Setting up alerts for relevant CPV codes significantly reduces the time needed to identify new opportunities. A detailed overview of CPV codes is maintained at simap.europa.eu{target="_blank"}.

NUTS Regions for Geographic Targeting

NUTS (Nomenclature of Territorial Units for Statistics) codes enable contracts to be filtered by region. The Czech Republic is divided into NUTS 2 regions (e.g. CZ02 Central Bohemia, CZ08 Moravian-Silesian Region) and NUTS 3 regions corresponding to the individual administrative regions (kraje). For regionally focused companies, geographic filtering is just as important as sector-based filtering.

The Role of Monitoring Tools

Aggregators such as mrickwood.cz Contract Monitor automatically collect data from the VVZ, contracting authority profiles, and other public sources, and alert users to new contracts matching their configured filters (CPV code, NUTS region, keywords, financial range). This directly addresses the core pain point for suppliers focused on the VZMR and below-threshold segment, where manually searching across dozens of platforms is not economically sustainable.

6. Most Common Supplier Mistakes

Knowledge of the rules is a prerequisite for success, but experience shows that the same mistakes recur regardless of a company's track record.

Underestimating VZMR as a "minor" contract. A contract worth CZK 1,900,000 is still subject to contractual and registration obligations. A supplier who does not insist on a written contract or does not prompt the contracting authority to publish it in the Contract Register risks complications when enforcing payment.

Missing the deadline. Deadlines in electronic systems are hard cutoffs. Unlike paper submissions, there is no option to deliver a bid "at the last minute" in person. Recommendation: upload the bid at least 24 hours before the deadline.

Incorrect or incomplete qualification. Suppliers frequently submit a commercial register extract that is more than three months old (§ 77(5) PPA), or overlook a specific certificate listed in the procurement documents.

Ignoring the contracting authority's internal directives. For VZMR contracts, the procurement documentation is often brief but references an internal regulation available on the contracting authority's website. Failing to include a mandatory attachment required by the internal directive leads to bid disqualification with no opportunity to supplement the bid.

Not monitoring contracting authority profiles. Below-threshold procedures are initiated by publication on the contracting authority's profile, not necessarily in the national VVZ. A supplier who monitors only the VVZ misses a large share of opportunities.

Confusing estimated value with contract award price. The estimated contract value determines the applicable procedure, not the final price. Bid prices can be substantially lower, which some suppliers incorrectly interpret as a breach of rules.

7. Practical Checklist for Systematic Bid Submission

The following action plan will help a company build a repeatable process from opportunity identification to contract signature.

Preparation (One-Time)

• Identify relevant CPV codes for your sector (minimum 3–5 primary codes).
• Prepare a standard set of qualification documents: commercial register extract, insurance certificate, references from the past 5 years, trade licence.
• Register on NEN (nen.nipez.cz{target="_blank"}), TenderArena, and at least three E-ZAK instances relevant to your target region.
• Obtain or renew a qualified electronic signature.
• Set up contract monitoring by CPV codes and NUTS regions (in-house or via mrickwood.cz).
• Study the internal directives of key target contracting authorities (regional authorities, large municipalities, state-funded organisations).

For Each Contract

• Verify the estimated value and the applicable procedure (VZMR / below-threshold / above-threshold).
• Read the procurement documents in full, including all annexes and internal references.
• Note in your calendar: bid submission deadline, deadline for submitting questions, evaluation date.
• Compile the bid in accordance with the required structure and format.
• Check the validity of all qualification documents (commercial register extract must not be older than 3 months).
• Upload the bid to the system at least 24 hours before the deadline expires.
• Archive confirmation of submission (screenshot or system-generated e-mail confirmation).

After Contract Award

• Monitor the publication of the result on the contracting authority's profile.
• In the event of an unsuccessful bid, request access to the evaluation report (§ 217 PPA) and analyse the strengths and weaknesses of your offer.
• If you won, verify that the contract has been published in the Contract Register within 30 days of signing (§ 5(2) of Act No. 340/2015 Coll., on the Register of Contracts).
• Update your reference list with the new contract for use in future qualification submissions.

A systematic approach, supported by the right monitoring tools and well-prepared documentation, is a decisive competitive advantage in a segment where many rivals still rely on ad-hoc searches or personal contacts. Below-threshold contracts and VZMR offer a steady flow of opportunities with lower administrative burden than above-threshold procedures, and for SMEs they represent a logical starting point for building a reputation in the Czech public procurement market.