Seminar for Beneficiaries
20-21 February 2012
Narva, Estonia
Procurement rules
Beneficiary Seminar
Joint Technical Secretariat
What is procurement?
Procurement is the timely acquisition of goods, works, and
services, which respects the following condition in
accordance with the Article 1 and 2 of Annex IV to the
Grant Contract:
- the objectives of organisation are concerned;
- fairness, integrity and transparency through competition;
- economy and effectiveness;
- best value for money;
- avoid any conflicts of interest.
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ATTENTION!
Project Beneficiaries and partners form Estonia and Latvia,
as well as Russian Federation public entities, should
follow their NATIONAL PROCUREMENT PROCEDURES
and additionally follow the rules of nationality and origin
set out in Article 2 of Annex IV to the Grant Contract.
Russian Beneficiaries and partners that are not public
entities must respect Article 1 to 7 of Annex IV to the
Grant Contract. It is recommended to use PRAG
(chapters 2 to 5 and templates) as a model of “best
international practice” (Article 3 of Annex IV).
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Good procurement principles 1
Strict rules should be followed in each procurement
procedure in order to acquire best price-quality ratio.
- No discrimination – against product, services,
suppliers, contractors or service providers on grounds of
nationality, as long as the rules of origin and nationality
are respected.
- Fair competition – all tenderers must be given the same
information and the same opportunities to come up with
winning bids.
- Clear specification – tenderers cannot complete
effectively unless they know precisely the requirements
of the purchaser.
Good procurement principles 2
- Effective publicity (announcement) – particularly important
for publicly funded procurement where, typically the purchasers
are not experts in the field. This is where use of the internet is
increasingly important. For publications in the national or
regional press the EU guidelines on visibility should be
followed.
- Adequate timescales – bidders are given sufficient time to
respond to advertisements expressing an interest in the
purchaser’s requirement, to respond to invitations to participate
in the bidding and to prepare and submit their offers.
(PRAG: 60 days for Supplies and 90 days for Works in
international tenders, 30 for Supplies and 60 for Works in local
tenders)
Good procurement principles 3
- Use of relevant objective criteria – it is crucial that the criteria
used for the elimination of unsuitable candidates, the selection
of participants in contract award procedures and the award of
contracts on the basis of the offer(s) economically most
advantageous to the purchaser are both objective and relevant
to the requirement.
- Adequate records - it is essential to be able to justify
decisions later on if there are any challenges or doubts about
the decisions that were made.
General rules of procurement
Every procurement procedure should follow two
selection criteria:
- the eligibility check of the tenderer or candidate to
take part in the procure needs to be carried out in
order to identify possible grounds for exclusion in
advance;
- criteria for assessing its financial,
technical and professional capacity.
economic,
Basic steps in procurement
- Development of Procurement Plan;
- Development of technical specification or Terms of Reference (if
nessesary);
- The Call Forwarding / Publication/ Request for offers;
- Receiving tenders from potential suppliers/ service providers/
contractors;
- Making the decision on the offers;
- Notification of the decision to the responsible bodies and possible
contractors;
- Document issued by the responsible authority/authorities confirming
that procurement documentation is in compliance with the
requirements set in the national legislation (if applicable);
- Contract procedure with the winner of the procurement.
Types of contracts
Service contracts:
- Studies: identification and preparation of projects, feasibility studies,
economic and market studies, technical studies, evaluations and audits
- Technical assistance: advisory role, to manage or supervise a project, or
to provide the experts specified in the contract
Supply contracts:
- Purchase, leasing, rental or hire
equipment
(with or without option to buy) of
- A contract for the supply of equipment and, incidentally, for installation
Works contract:
- The execution, or both the execution and design, of works
- Outcome of building or civil engineering works
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Mixed contracts
Mixed (hybrid) contracts (PRAG Article 2.4.9):
-
Contract between the Beneficiary or partner and a service
provider, supplier or construction firm covering two or more of
the following: works, supplies and services.
-
Beneficiary or partner determines the procurement procedure to
be used depending on which of the components (works,
supplies or services) prevails. This assessment must be made
on the basis of:
-
the value, and
-
the strategic importance of each component relative to the
contract as a whole.
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Thresholds for procedures- overview
≥ € 200,000
International
restricted
tender
procedure
< € 200,000 but > € 10,000
Competitive negotiated
procedure
SUPPLIES
≥ € 150,000
International
open tender
procedure
< € 150,000
but
≥ € 60,000
Local open
tender
procedure
< € 60,000
but > €
10,000
Competitive
negotiated
procedure
WORKS
≥ € 5,000,000
International
open tender
procedure
< € 5,000,000
but
≥ € 300,000
Local open
tender
procedure
< € 300,000
but>
€ 10,000
Competitive
negotiated
procedure
SERVICES
≤ € 10,000
Single tender
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Rules of Nationality and Origin
ALL Beneficiaries and partners have to follow rules of nationality
and origin include in Article 2 of Annex IV of the Grant Contract
„Procurement by grant Beneficiaries in the context of European
Union external actions”, even though they can follow national
procurement rules as provided for under Article 8.2 of Annex IV.
Project partners from Russia should follow the rules set in the
Article 4.8 of the Agreement between the Government of Russian
Federation and the European Community on financing and
implementing the Cross Border Cooperation programme "Estonia Latvia - Russia".
Nationality and Origin Rules eligible countries
Annex
. IV: award of procurement contracts is open to all natural and
legal persons of EU Member States and :
- ENPI countries: Algeria, Armenia, Azerbaijan, Belarus, Egypt,
Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco,
Palestinian Authority of the West Bank and Gaza Strip, Russian
Federation, Syria, Tunisia, Ukraine
- IPA countries (pre-accession): Croatia, The former Yugoslav
Republic of Macedonia, Turkey, Albania, Bosnia, Montenegro,
Serbia, including Kosovo
- EEA Member States: Iceland, Liechtenstein, Norway
- International Organisations
Rules
Nationality
Rules of
of Nationality
- Tenderers must state, in the tender, the country of which they are
nationals by presenting the usual proof of nationality under their
national legislation.
- This rule does not apply to experts proposed by service providers
taking part in tender procedures or service contracts financed by the
grant.
-
All countries mentioned in previous slide are acceptable,
REGARDLESS OF THE PROGRAMME ELIGIBLE AREA!
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Rules of Origin
ENPI Regulation 1638/2006 art. 21.6: ALL supplies and materials
purchased under contracts financed shall originate in a EU Member State
or ENPI, IPA, EEA country (previous slide)
- Includes the materials to be used for the construction
- Does not apply to Contractor’s equipment to be used during the
construction
- Contractors must present proof of origin no later than when the first
invoice is presented, for equipment and vehicles of a unit cost on purchase
of more than € 5 000.
- The certificate of origin must be made out by the competent authorities of
the country of origin of the supplies (Chamber of commerce…) and must
comply with the rules laid down by the relevant EC legislation (see next
slide).
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Rules of origin, customs
The term ‘origin’ is the ‘economic’ nationality of goods in international
trade and is defined in the relevant EC legislation on rules of origin for
customs purposes (Customs Code, Council Regulation 2913/1992):
- Goods originating in a country shall be those wholly obtained
or produced in that country (Article 23)
- Goods whose production involved more than one country shall
be deemed to originate in the country where they underwent
their last, substantial, economically justified processing or
working in an undertaking equipped for that purpose and
resulting in the manufacture of a new product or representing
an important stage of manufacture (Article 24)
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Nationality and origin, exceptions
Exceptions may be justified by:
- Unavailability of products and services in the markets of the
countries concerned
- For reasons of extreme urgency
- If the eligibility rule were to make the realisation of a project, a
programme or an action impossible or exceedingly difficult
- NOT applicable just because a product of ineligible origin
is cheaper than the EU or local product!
- By derogation only (request to JTS/JMA)
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Important
-
Follow national procurement procedures rules (consult with the
national office of Procurement)
-
If national rules not for you, follow PRAG, as a model of “best
international practise” (Article 3 of Annex IV)
-
Follow the rules of nationality and origin
-
The contract must be awarded to the most economically
advantageous tender in accordance with the principles of
transparency, fair competition for potential contactors, and taking
care of avoiding any conflict of interest.
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Programmas
nākotne..
Thanks
for attention!
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