direct award

A direct award is when a public authority purchases goods or services without publishing a formal notice for the contract. This is a simplified form of public tendering that can be used when the value of the purchase falls below certain limits.

When can a direct award be used?

The most important rule is that the value must be below the applicable threshold value. For 2024-2026, this means the procurement must be:

• Below NOK 1.3 million for most purchases
• Below NOK 100,000 for particularly small purchases

For example: If a municipality needs to buy new office chairs for NOK 80,000, they can do this as a direct award since the amount is below the threshold value.

Requirements for execution

Although a formal notice is not required, the contracting authority must still:

• Document key decisions and assessments
• Follow fundamental principles of competition and equal treatment
• Contact multiple suppliers to compare prices where possible

A practical example: A school that needs to purchase textbooks for NOK 200,000 should obtain quotes from at least three different publishers to ensure adequate competition.

When should you not use a direct award?

Direct awards should be avoided when:

• The value exceeds the threshold values
• There are many potential suppliers in the market
• The procurement is strategically important
• There is high risk associated with the purchase

Tools like Cobrief can help suppliers assess the content of a direct award using artificial intelligence.

A direct award is essentially a simplified procurement process that can save time and resources for smaller purchases. However, it is important to follow the rules and document the process thoroughly, even though it is less formal than regular tender procedures.