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Legal Alerts

30/06/2020

State Supply Office to Fulfill Various Needs of Public Bodies

Legal Alerts
Compliance
General

Recent Development

The Presidential Decree No. 2645 on the Fulfillment of the Needs of Public Bodies by the Directorate General of the State Supply Office (“Decision”) was published in the Official Gazette No. 31151 on June 10, 2020.

What Does the Decision Say?

The Decision concerns state institutions and organizations listed in tables I, II and III on the appendix of the Law No. 5018 on Public Finance Management and Control. According to the Decision, the Ministry of Treasury and Finance (“Ministry”) will identify and announce certain goods and services from among those listed in the articles of association of the Directorate General of the State Supply Office (“DMO”). State institutions and organizations will be obliged to procure the announced goods and services through the DMO as of the date stated in the announcement.

The DMO’s articles of association lists goods and services such as drugs, medical devices, vehicles, construction equipment, electricity, and fuel products. According to the Decision, the goods and services the Ministry will identify and announce from those listed in the articles of association must be procured through the DMO. It is unclear which goods and services will be subject to obligatory procurement through the DMO, since the Ministry has not issued an announcement.

The DMO carries out their procuring activities within the frame of its articles of association and the Law No. 4734 on Public Tenders (“PTL”). As clearly stated in the DMO’s articles of association, the DMO could supply goods and services as per Article 3/g of the PTL without initiating a public tender procedure if the value of the procurement is less than TRY 14,877,509 (approximately USD 2,170,000) for the year 2020.

Conclusion

Per the Decision, the Ministry will identify and announce the goods and services that must be procured through the DMO. The Decision will affect the supply processes of many public institutions and organizations. Consequently, we recommend that all concerned parties monitor the Ministry’s announcements regularly.

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