riigihankeseadust

Riigihankeseadus, commonly referred to as the Public Procurement Act, is Estonia's central legal framework for the procurement of goods, services, and works using public funds. It aims to ensure transparency, non-discrimination, equal treatment, and value for money, while fostering competition and innovation in line with European Union procurement directives.

The act applies to contracting authorities such as state agencies, local governments, and other public bodies that procure public sector purchases within Estonia. It covers procurements of goods, services, and construction above applicable thresholds and through various procurement procedures. Some procurements are exempt, including low-value purchases, purely internal arrangements, or cases involving sensitive security considerations.

Procurement procedures prescribed by the act include open procedures, restricted procedures, competitive dialogue, and negotiated procedures with or without prior publication. Notices and tender documents are typically published and circulated through official electronic procurement channels. Award criteria may combine price with qualitative and sustainability factors, and tenders must be evaluated in a fair and transparent manner to ensure the most economically advantageous outcome.

Documentation and remedies are integral parts of the process. Tender documentation must clearly specify requirements, terms, and evaluation criteria, and bidders can be excluded for specified reasons. Decisions on awards are subject to review, with administrative courts and, where applicable, dedicated procurement review mechanisms available for remedies. A standstill period is commonly observed before contract signing to allow challenges to be raised.

Relation to EU law and modernization: The Riigihange seadus transposes EU procurement directives and is periodically amended to reflect changes in EU rules, digital procurement practices, and policy priorities. It underpins Estonia’s public sector purchasing and the country’s e-procurement ecosystem.