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What Is Extended In-House Provision (Utvidet egenregi, Norway)?
This is a Norwegian procurement term. Purchases from a separate legal entity controlled by the buyer, which, under certain conditions, is exempt from the procurement rules.
When is extended in-house provision permitted?
When the buyer controls the entity in the same way as its own departments, the entity does the great majority of its activity for its owners, and there is no private ownership of the kind the rules prohibit.
What does 'the great majority' mean in practice?
A high share of turnover, measured over a period set in the regulations. The exact percentage should be checked against the current wording before relying on it.
Why does it matter to suppliers?
Work moved to a controlled entity leaves the competitive market entirely. If the conditions are not met, the arrangement is an unlawful direct award and can be challenged.
