Israel is a party to the Agreement on Government Procurement within the WTO framework. According to Israel’s commitments in the agreement, public projects with a government investment of more than SDR 5 million is open only to companies of other parties to the agreement. Foreign companies are forbidden to contract projects involving issues such as national defense, national security and public safety. They are also subject to restrictions of different degrees on travel agency, hotel services, international communications, and radiocommunication services.
The bidding and applicability of contracted projects in Israel are set out in secondary laws and regulations, including the Mandatory Tenders Law (1992), the Mandatory Tenders Regulations (1993), the Mandatory Tenders Regulations (Preference for Israel Products and Mandatory Business Cooperation) (1995), the Mandatory Tenders Regulations (Defense Establishment Contracts) (1993), and the Mandatory Tenders Regulations (Preference for Products from National Priority Areas) (1998). Organizations concerned should set up a public bidding committee to invite tenders, and give explanations for projects that are not open for bidding.