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EC Public Sector Directive versus Utilities Directive

The Public Sector Directive, on the other hand, applies to public service contracts and those pertaining to contracts on behalf of State, regional or local authorities and other bodies governed by public law entities.3 There are several ways in which the two Directives are similar in terms of the revised requirements and procedures that have been spelled out under the Directives. Simplified contract notices are required under both and have been laid out under Annex VII A of the Public Sector Directive and Annex XIIID of the Utilities Directive4. In the case of the Public Sector Directive, there is a simplified contract notice which is to be used in a dynamic purchasing system. One of the requirements is that the subject of the contract is to be set out, including the quantity of the contract and the time for which it is to be awarded. As pointed out by Dittmer5 where negotiated contracts are concerned, it is the Utilities Directive that must be considered to be the pioneering Directive as compared to the Public Sector Directive, since it is based upon a previous Directive that included the possibility of using a negotiated procedure with a prior call for competition. This was made possible through the use of framework purchasing agreements, whereby the parties draw up the terms and conditions on which purchases will be made, but the precise quantity of the goods to be delivered is left flexible.6 The rationale provided for the use of such framework contracts in purchasing agreements is that the parties can negotiate terms and conditions before placing specific orders. But with the existence of a framework contract, the parties can avoid the time, expense and delays involved in entering into negotiations more frequently.