Public sector · Procurement
How a small town council buys software
A small council that wants an app or a citizen platform finds that the hard part is not choosing a supplier: it is knowing which route it can contract through. Spain’s public sector contracts law sets thresholds that decide whether a file is resolved in weeks or in a year. We are writing this from the other side of the counter, after building and operating SomosTorre.
Almost every conversation we have with a council starts with the price and should start with the procedure. Not because the price does not matter, but because the procedure sets the timeline, and the timeline is usually what decides whether a project happens in this term of office or the next one.
The reference is Spanish Law 9/2017 on public sector contracts. Only one part matters here: the direct-award thresholds, which are the fast route.
The three numbers that set the timeline
| Route | Threshold | What it means in practice |
|---|---|---|
| Direct award, services | Estimated value under €15,000 | Awarded directly, no tender. Weeks, not months |
| Direct award, works | Estimated value under €40,000 | The same route, for works; software rarely qualifies here |
| Tender | Above the threshold | Specifications, submission periods, a contracting board and publication on the PLACSP |
The detail most often missed is the word “under”. The services threshold is an estimated value under €15,000, so a quote of exactly €15,000 falls outside direct award. It is the reason our adaptation for a municipality starts at €14,900 and not at a round number: below the limit, not at it.
Three figures decide the route: our municipal adaptation starts at €14,900, direct award for services requires an estimated value under €15,000, and for works the limit is €40,000.
Estimated value, euros · Spanish Law 9/2017 on public sector contracts, art. 118
Always confirm the current threshold with your own legal or finance office before planning around it. It changes, and the party answerable for the file being properly assembled is the council, not the supplier.
What direct award cannot do
The fast route has limits, and they are worth knowing before designing a project around it. A large contract cannot be split into several small ones to avoid a tender: that is unlawful splitting and is expressly prohibited. Nor is it a route meant to be repeated indefinitely with the same supplier and the same subject matter, year after year.
The practical consequence is useful: direct award works very well for getting something running and finding out whether it gets used. It does not work for sustaining a platform for eight years without going back through procurement. If the project succeeds, at some point there will be a tender, and it is worth knowing that at the start rather than discovering it in year two.
Direct award is for getting something running and finding out whether it gets used. Not for sustaining it for eight years.
What to ask a supplier before signing
These five questions separate a project the council controls from one it cannot leave. None of them are technical.
- Whose name will the code, the data and the app store accounts be in? They should be in the council’s. If the App Store and Google Play accounts are in the supplier’s name, changing supplier means republishing the app and losing the installs and the ratings.
- What happens to the data if we stop working together? There should be an export in an open format and a written deadline.
- What does operation cost, separately from building it? A platform with live data has a permanent monthly cost. A quote that does not mention it has not removed it — it has deferred it.
- Is it ready for electronic invoicing through FACe and for public sector payment terms? It is an administrative question and it saves months.
- Which data sources does it use, and what happens if one goes down? In a citizen platform, most of the value sits in data the council does not own.
Why we are the ones writing this
We built SomosTorre for Torrelavega, a city of about 52,000 people, and we operate it every day. It is catalogued on datos.gob.es, the open data portal of Spain’s Ministerio para la Transformación Digital y de la Función Pública, and Eolas Prints S.L. is listed as a solution provider on the European Commission’s Smart Cities Marketplace.
Adapting that platform to another municipality, with its own data sources and branding, starts at €14,900. A custom platform with web and native apps starts at €30,000. On top of that comes operation, from €450 a month. The prices are published on this site precisely so that a municipal technician can compare without having to ask for a meeting.
Frequently asked questions
Can a Spanish council contract software without a tender?
Yes, through direct award, provided the estimated value of the services contract is under €15,000. Above that figure a tender is required. The threshold is set by Law 9/2017 on public sector contracts and is worth confirming with the council’s own legal or finance office before planning the project.
What is the direct-award limit for services?
An estimated value under €15,000 for services and supplies, and under €40,000 for works. The important word is “under”: a quote of exactly €15,000 falls outside. That is why our adaptation for a municipality starts at €14,900 — below the limit rather than at it.
Can a large project be split into several small contracts?
No. Splitting a contract to avoid a tender is unlawful splitting and is expressly prohibited. Direct award is for getting something running and finding out whether it gets used; it is not a route for sustaining a platform for years with the same supplier and the same subject matter without returning to procurement.
Who owns the code and the app store accounts?
The council, if the contract is written properly. The code, the data and the App Store and Google Play accounts should be in its name. If the accounts are in the supplier’s name, changing supplier forces the app to be republished and the accumulated installs and ratings are lost.
What does a citizen platform cost for a municipality?
Adapting an existing platform to a specific municipality starts at €14,900, below the direct-award threshold for services. A custom platform with web and native apps starts at €30,000. On top of that comes operation, from €450 a month, which is a permanent cost rather than an optional extra.