In Algeria, the process of obtaining a government contract as a startup has been significantly streamlined and facilitated by a recent legislative update. This change is outlined in the new Act, which serves to establish the general regulations for public procurement. Let’s delve into the key aspects of this Act and the reasons why startups now have an improved chance of securing government contracts.
Definition and Scope of Public Contracts (Article 2, Article 9)
The Act defines public contracts as written agreements between a public purchaser, termed the “contracting service,” and one or more economic operators referred to as “co-contracting partners.” These contracts aim to fulfill the needs of the contracting service in various areas such as works, supplies, services, and studies. The Act emphasizes that these contracts are subject to specific conditions set forth by the law and existing regulations.
Access and Fairness (Article 5)
One of the cornerstones of the Act is the principles of freedom of access to public procurement, equal treatment of candidates, and transparency of procedures. This implies that startups, as well as established companies, have an equal chance to participate in the bidding process and secure government contracts. The Act ensures a level playing field, preventing any discrimination based on size or origin.
Specific Cases for Direct Negotiation (Article 41)
The Act outlines instances where direct negotiation can be used, which is a significant benefit for startups. These cases include scenarios where a particular operation can only be undertaken by a single economic operator due to factors like monopolistic situations, technical considerations, or urgent needs. For instance, if a startup has a unique technological solution that is crucial to address an imminent danger to public order, the contracting service can engage in direct negotiation with the startup to swiftly implement the solution.
Promoting National Production and Priority Projects (Article 41)
Startups involved in national production efforts or priority projects of national importance may benefit from direct negotiation. This signifies that the government is actively promoting startups contributing to the local economy or projects with strategic significance, thereby providing a favorable environment for startups to flourish. For example, a startup specializing in renewable energy solutions might be directly engaged to support a national initiative aimed at reducing carbon emissions.
Emergency Situations and Urgent Needs (Article 41)
In cases of emergencies such as imminent danger to investments, public order, or health crises, the contracting service can expedite the award of contracts through direct negotiation. This flexibility accommodates urgent requirements, enabling startups to contribute their innovative solutions promptly. For instance, if a startup has developed a technology that can address a sudden health crisis, the government can directly negotiate with the startup to ensure swift deployment of the solution.
Encouraging Startup Initiatives (Article 41)
Startups engaged in labeled initiatives, such as those aligned with the promotion of startups and digital innovation, are incentivized by the Act. This implies that the government acknowledges the potential of startups to drive innovation and economic growth, thereby facilitating their engagement in government projects. As an illustration, if a startup is working on an innovative digital solution that aligns with national innovation goals, the government can promote this startup’s participation through direct negotiation.
read also Tunisian Fashion Startup Dabchy Begins International Expansion Journey With Egypt
Collaboration and Coordination (Article 35)
Startups can collaborate with each other or established companies to collectively bid for government contracts. Grouping of orders or the use of central purchasing bodies can enhance startups’ chances of successfully bidding for contracts, pooling their resources and expertise. For instance, a consortium of startups specializing in different aspects of a project, combined with an established company’s expertise, can present a comprehensive solution to the government’s needs.
Specificity and Flexibility (Article 41)
The Act recognizes the uniqueness of startups and their specialized offerings. This understanding allows startups to engage in projects that require specific technical skills or artistic considerations, potentially paving the way for innovative solutions to be implemented in public projects. For example, if a startup has a patented technology that aligns with a government project’s technical requirements, the startup can be engaged directly to contribute its expertise.
Accountability and Training (Article 8)
The Act mandates that civil servants and public agents involved in procurement undergo training and continuous development. This guarantees that startups interacting with government entities are dealing with well-trained professionals who understand their needs and can provide necessary guidance. This training ensures that startups receive informed assistance during the procurement process, enhancing their chances of successful engagement.
Emphasis on Public Interest and Sustainability (Article 7)
Public contracts awarded to startups should serve the general interest and align with environmental considerations and sustainable development objectives. This demonstrates a commitment to utilizing startups’ innovative capabilities to address societal and environmental challenges. As an example, if a startup has a solution that can contribute to water conservation or waste reduction, the government can directly negotiate with the startup to integrate the solution into public projects.
In conclusion, the recent amendments to Algeria’s public procurement laws have significantly improved the landscape for startups aiming to secure government contracts. The Act’s provisions emphasize fairness, flexibility, and the integration of startups’ innovative solutions in various sectors, fostering an environment where startups can play a pivotal role in contributing to the nation’s progress.
contract startup Algeria contract startup Algeria contract startup Algeria
Download the new law at: https://afrikanheroes.gumroad.com/l/Algeriaprocurementlaw
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard