SECRETARIATOFTHEPACIFICREGIONALENVIRONMENTPROGRAMME

Procurement Manual Approved April 2010

 Section 1 2 3 Objectives Overview Procurementprinciples 3.1 Valueformoney 3.2 Transparency 3.3 Impartiality 3.4 Clarity 4 Procurementprocedures 4.1 Plan 4.2 Approachthemarket 4.3 Evaluate 4.4 Selectpreferredsupplier 4.5 Awardacontract AppendixA AppendixB AppendixC Procurementtypes Requestfortendertemplate Tenderevaluationtemplate Contents


Objectives Overview Principles Procedures Appendices

Objectives

Introduction

This manual was developed by the Secretariat of the Pacific Regional Environment Programme (SPREP), to state the expectations and set the procedures governing staff whentheyareprocuringgoodsandservicesonbehalfofSPREP.Whileitwasprepared in response to a recommendation of the October 2009 European Commission institutionalassessmentofSPREP,theSecretariatrecognisesthatensuringadisciplined approach to procurement is an important factor in strengthening its institutional processes.

Objectivesoftheplan To state the standards and expectations that apply to SPREP staff involvedinprocurementprocesses;

Principles:

Procedures: To establish userfriendly steps to be followed to ensure the principles areupheld; Outcomes: Good procurement practices will ensure SPREP is using its public funds efficiently and effectively to get value for money, and build the confidenceofourmembercountriesandterritories,donorsandpartners.


Objectives Overview Principles Procedures Appendices

Overview

Context

SPREPistheprimaryintergovernmentalorganisationinthePacificwithresponsibility forenvironmentalissues,basedinSamoa.ItsroleinassistingPacificislandcountries managetheirenvironmentandmeetenvironmentalchallengesandopportunitiesis guidedbystrategicplanningdocumentswhichoutlinepriorityenvironmentalissuesand theSecretariatsroleinaddressingthem. SPREPsannualbudgetvariesfromyeartoyear,sinceitcomprisescorefunding contributedbyits25membercountriesandterritories,extrabudgetarycontributions fromsomemembers,andprojectspecificfundingfromdonorsandpartner organisations.Itsrelationshipswithpotentialsuppliersinthelocalandinternational marketaregovernedby:
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SPREPFinancialRegulationssetrulesonfinancialmanagementandstate officersresponsibilities; SPREPRiskManagementPlan(underpreparation); Specificrequirementsofdonorsandpartnersprescribedinprojectcontracts; Whererelevant,decisionsoftheannualSPREPMeetingofmembercountries andterritories;and ThisProcurementManual.

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Whatisprocurement? Procurement is the process of buying goods or services, e.g. equipment, maintenance services or professional consultancies. This begins when SPREP identifies a need and decidesonitsprocurementrequirement.Itcontinuesthroughapproachingthemarket, evaluating alternative solutions, awarding contracts, paying for the goods or services andmanagingsuppliercontracts. AllSPREPprocurementactivitiesshouldbeconductedinaccordancewiththese guidelines,withthefollowingexceptions:
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Individualtravelpurchases:theprocurementprincipleswillbeputintoeffectby anannualtenderprocesstoidentifyasingletravelagenttosupplytravel servicesthroughouttheyeartoSPREP. Donordirectedprocurements:whereSPREPhasaprocurementroleundera contractwithadonor,whichrequirescertainprocurementprocedurestobe followed,SPREPfollowsthoseproceduresinpreferencetoitsown.

Projectfundingthatspecifiesapreferredsupplier:whereSPREPisobligedbya fundingcontracttoprocureservicesfromaspecificsupplier,noadditional procurementprocessisrequired.

ThekeystepsSPREPstaffshouldtaketomeetbestpracticestandards,andthe documentationrequiredateachstep,aredescribedinthefollowingdiagram,with referencetotherelevantsectionbelow.

Plantheprocurement(4.1.) Specifications Value

Decidewhichprocesstouse(4.1) Requestdocument:see templateatAppendixB

Approachthemarket(4.2)

Evaluatesubmissions(4.3)

Evaluationreport:see templateatAppendixC

Selectpreferredsupplier(4.4) Notifyunsuccessfultenderers

Concludeprocurement Writtencontract

Whoisaccountableforprocurement?

TheDirectorandDeputyDirectorareaccountabletothe25SPREPmembercountries Managecontract andterritories,throughtheSPREPMeeting,fortheperformanceoftheSecretariat.This includesaccountabilityforprocurementdecisions.WhiletheDirectormaydelegatehis financialauthoritytootherstaff,heremainsaccountableforalldecisions. ProgrammeManagers,theFinanceManagerandotherseniorstaffareaccountableto theSPREPDirectorforboththeiractionsandperformanceandthoseofstaffwhoreport tothem.Thisincludesensuringstaffareawareofprocurementguidelines,andputting inplacecontrolstoensurecompliance.


Objectives Overview Principles Procedures Appendices

Principles:valueformoney,transparency,impartiality,clarity 3.1 Valueformoney TheguidingprincipleoftheprocurementprocessisthatSPREPmustgetvaluefor money.Eachprocurementprocessmustevaluatethecostsandbenefitsoftheavailable options,sothatSPREPobtainsthemaximumbenefitfromthegoodsandserviceswe acquireovertheirwholelives,withintheresourcesavailabletous.Thebestvaluefor moneyoptionisnotalwaysthecheapest. Toachievevalueformoney,SPREPrequiresstaffinvolvedinaprocurementprocessto encouragecompetitionbetweenpotentialsuppliers,followtheprocedures,applythe criteriaandmakejudgments,withaviewto:
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Economy: effort;

SPREPwilluseitsresourcescarefully,tosavemoney,timeor

Efficiency: SPREPwillselectoptionsthatdeliverthesamelevelofservice, outputsandimpactsatlesscostofmoney,timeoreffort; Effectiveness:SPREPwillselectoptionsthatdeliverabetterserviceorhigher qualityoutputsandimpacts,andminimiserisks. 3.2 Transparency

SPREPstaffinvolvedinprocurementprocessesmustcomplywiththeprincipleof transparency.Eachprocurementprocessmustbeopenanddocumented.Transparency willensureallpotentialsuppliershaveaccesstotherelevantinformation,andwill enableSPREPsdecisionstostanduptoscrutiny.Therefore,SPREPrequiresstaffto: o Publishinformation:i.e.tenderingprocedurestobefollowed,conditionsfor participationandallrelevantdecisions; o ControlcontactsbetweenSPREPstaffandcandidatesuppliersduringthe process; o Documentdecisionstepsandoutcomes,andconcludewithawrittencontract containingalltermsandconditions. 3.3 Impartiality Procurementproceduresmusttreatpotentialsuppliersfairlyandinanon discriminatorymanner.Allcandidatesshouldhaveequalaccess,receiveequal treatmentwithcommonrulesanddeadlines.SPREPstaffinvolvedinprocurement
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processesmustbehaveethically,beimpartialandavoidactualandperceivedconflicts ofinterest. Potentialsuppliersshouldbedealtwithinanondiscriminatorymanner.SPREPstaffwill answerenquiriesaboutaprocurementpromptly,butinawaythatensuresnopotential suppliergainsanunfairadvantage. 3.4 Clarity The standards and duties relating to a procurement process must be clear, to ensure certaintyandtoavoidconfusion: o Thresholds:theprocurementvaluewillpredeterminewhichprocurement proceduretouse; o Criteria:standardsforevaluatingtendersandawardingcontractswillbe articulatedbeforetendersarereceivedandthecriteriaandanyweightingmade availabletopotentialsuppliers; o Responsibilities:thedutiesofbudgetholdersandevaluatingcommitteeswillbe clearlydocumented.


Objectives Overview Principles Procedures Appendices

4.1 Plan Ittakescarefulplanningtomakeaprocurementprocesssuccessful.BeforeSPREP approachespotentialsuppliersforvalueformoneygoodsorservices,youneedtoknow whatsortofgoodsorservicesoroutcomesyourequire,andyouneedtohavedecided howyouwillapproachthemarkettoobtainquotesorotherproposals.

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Specifications:Specifyinadvancetheperformanceandtechnicalorfunctional requirementsofthegoodsorservicesyourequire.Thespecificationsshouldonly refertoaparticulartrademark,producerorsupplierunlessthereisnootherway todescribeitprecisely,andthenthespecificationshouldstatethatitoran equivalentisrequired. Procurementvalue:Estimatethemaximumanticipatedvalueofacontract, basedonthespecificationsandresearchincludingoptions,extensions, renewalsorothermechanismsthatmaybeexecutedoverthelifeofthe contract.Thiswillguidethedecisionsonwhichprocurementprocesstouse,and thenatureofselectioncriteria. Whichprocess:Determinetheprocesstobeused(describedinAppendixA).The minimumprocessisdeterminedbytheprocurementvalue.Thethresholdsare:

Procurementvalue SAT108001+ (US$40001+) Minimumprocess Opentender:publishedinternationalinvitationtotender (4personevaluationcommittee:SPREP+externalrepresentation)

SAT15001108000 Selecttender:approachatleast3potentialsuppliers,wherepossible fromanestablishedmultiuselist,fordetailedtenderdocumentation (US$550140000) (methods,personnel,costsetc) (3personevaluationcommittee) SAT270115000 (US$10015500) Directsource,3competitivequotesforpricesfromknownsuppliers (individualofficersevaluationsubmittedtotheofficerwithdelegated financialauthority) Directsource/overthecounterpurchase,noquotesrequired (unlessthereslikelytobeadisparitybetweensuppliers)

<SAT2700 (US$1000)

Conditions:Specifyinadvanceanyconditionsthatpotentialsuppliersmustmeet inordertoparticipateinaprocurementprocess.Thepotentialsuppliermay havetodemonstrateminimumlegal,technicalorfinancialcapacities,for instancerelevantexperienceinthetechnicalfield. 4.2 Approachthemarket

Whethertheprocurementprocessinvolvesdirectlyapproachingpotentialsuppliers,or apublicinvitationtoallpotentialsuppliers,therearecommonelements.
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Requestdocumentation:Providetopotentialsuppliers,onrequest,allthe informationaboutSPREPsrequirementsthatisnecessarytoenablethemto prepareresponsive,tailoredsubmissions.UsethetemplateatAppendixB. Generallythisshouldinclude:

Description:thenature,scopeandquantityofthegoodsorservicestobeprocured, includinganytechnicalspecificationsorotherinstructions; Conditionsforparticipation:anyfinancialguarantees,informationordocumentsthat potentialsuppliersmustsubmit; Submissionguidelines:anyminimumcontentandformatrequirements; Evaluationcriteria:factorstobeconsideredinassessingsubmissions;andanyother relevanttermsorconditions.

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Deadlines:Givepotentialsupplierssufficienttimetoprepareandlodgea submission,e.g.25days,unlessitisurgent.Returnlatesubmissionsunopened tothesender,unlessthesubmissionislateasaconsequenceofSPREPs mishandling. Responsibilitiesandevaluationcommittee:Makealldecisionsonwhichstaff willparticipateintheprocurementprocess,includingtheevaluationcommittee whererequired,beforeapproachingthemarket.Generallythecommittee shouldincludetheseniorofficerresponsibleforthesubjectarea,andanofficer fromadifferentprogrammeorareawherepossible.Thesestaffmustthen controlanddocumenttheircontactswithpotentialsuppliers,andrecogniseand addressanyactualorperceivedconflictsofinterest. 4.3 Evaluate

SPREPsFinancialRegulationsrequirestaffinvolvedinaprocurementprocesstoreceive, open,andtreatallquotesandtendersinawaythatguaranteesfairnessand impartiality,andprotectstheconfidentialityoftheinformationprovidedbypotential suppliers.Theevaluationprocesswilldeterminewhichproposalwouldbestmeet SPREPsneedsandachievevalueformoney.

Alltendersorquotesreceivedwithinthedeadlineneedtobeevaluated,bythe individualorcommitteeassignedwiththetask,againstthesamecriteria.Somecriteria aregeneral,whileothersshouldbedevelopedspecificallyfortheparticular procurement.UsethetemplateatAppendixCtosummarisetheconclusions.

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Specificevaluationcriteria:Alltendersorquotesreceivedwithinthedeadline needtobeevaluatedagainsttheconditions,criteriaandweightingindicatedin theinformationthatwasavailabletopotentialsuppliers.

Conditions: onlythosepotentialsuppliersthatsatisfytheconditionssetas prerequisitesforparticipationqualifyforfurtherassessmentanythatfail todosomustbeeliminated; Criteria:

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tendersorquotesaretobeassessedagainsttheevaluationcriteria providedintherequestdocumentation;

Generalevaluationcriteria:Alltendersorquotesthatwerereceivedwithinthe deadlineandthatsatisfytheconditionsandotherspecificcriteriashouldthenbe evaluatedonthebasisoftheirrelativevalueformoney. thevalueformoneyevaluationshouldconsider: costsdirectandindirectbenefitsandcostsoverthewholeprocurement cycle; qualityandfitnessforpurpose; environmentalconsiderations; convenienceandtimeliness; therelativerisks,includingtheperformancehistoryoftheprospective suppliers; theflexibilitytoadapttopossiblechangeoverthelifecycleofthegoodsor service; favourabilityofproposedcontractterms(forexample,contractextension options). 4.4 Selectpreferredsupplier a) b) c) d) e) f) g)

Criteria:

Theindividualorcommitteeresponsibleforassessingthequotesortendersneedsto submit,tothedesignatedstaffmemberwiththedelegatedfinancialauthority,its recommendationonthepreferredsupplier.Itsreportshouldjustifyitsreasonsfor concludingthatthesupplier: a) b) satisfiestheconditionsforparticipation; isfullycapableofundertakingthecontract;and

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c)

submittedaproposalthatwillprovidethebestvalueformoney,in accordancewiththespecificcriteriaintherequestdocumentandthe generalvalueformoneycriteria.

The staff member with the delegated financial authority needs to approve the recommendationforittotakeeffect. 4.5 Awardacontract InconsultationwiththeEnvironmentalLegalAdviserandtheFinanceManager,a contractwillbedrawnupandnegotiatedwiththepreferredsupplier.Oncethecontract isawarded,SPREPmust:
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informallpotentialsupplierswhosesubmissionswereevaluatedofthedecision; onrequest,provideanunsuccessfultendererwiththereasonsitwas unsuccessful; continuetokeepunsuccessfulsubmissionsconfidential(thesuccessful submissionisnotusuallykeptconfidential);and inthecaseofselectoropentenders,theresultsshouldbepublishedonthe SPREPwebsite,including: a) b) c) d) adescriptionofthegoodsorservicesprocured; thenameandaddressofthesuccessfulsupplier; thevalueofthesuccessfultender;and thedatethecontractwasawarded.

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Objectives

Overview

Principles

Procedures

Appendices

AppendixA:Procurementtypes Procurementtype Description opentender Approachtheinternationalmarketthroughanopenrequestfor tender:

suppliersrespondandbidfortheworkbysubmittinga tender; evaluateallresponsesreceivedwithinthedeadlineagainst statedconditionsandcriteria; negotiateacontractwiththepreferredsupplier.

selecttender: shortlist

Inviteanumberofshortlistedpotentialsupplierstosubmit tenders: (a) publishanopenrequestforexpressionsofinterest:

supplierssubmitexpressionsofinterest; evaluateallsubmissionsreceivedwithinthedeadline againststatedconditionsandcriteria; developashortlist; responsesassessedasinanopentender.

(b) invitetheshortlistedpotentialsupplierstosubmittenders:

selecttender: multiuselist

Invitetendersfromanumberofprequalifiedpotentialsuppliers, fromalistthatSPREPintendstouseinmorethanone procurementprocess: (a) fromanexistingmultiuselistofsuppliersofaparticular service:

setconditionsforparticipationandpublishanopenrequest forexpressionsofinterest; interestedsuppliersrequestinclusion; supplierswhomeettheconditionsforparticipationare includedonthelist;then whenaserviceisrequired,invitelistedsuppliersto participateincompetitivetenderprocesses.

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Procurementtype Description (b) fromalistoflicensedsuppliers:

foraservicethatrequiresaspeciallicence;or foraserviceforwhichasuppliermustcomplywithan essentiallegalrequirement:

directsource

Directlyapproachoneormorepotentialsupplierswiththe specifications,torequestquotes: (a) whentheprocurementvalueisbelowapredetermined threshold;or (b) theprocurementvalueisabovethethresholdforanopenor selectivetenderprocess,but:

nosuitablesubmissionswerereceivedinresponsetoa tenderprocess; thereisnocompetitionfortheparticularservicedueto technicalreasons; itisacaseofextremeurgencybeyondSPREPscontrol; itisanunsolicitedandhighlyadvantageousshortterm valueformoneyopportunity; additionalservicesarerequiredfromtheoriginalsupplierto replacepartsorserviceequipment,orwherechanging supplierwouldlosecompatibilitywithexistingequipment orservices.

Thisprocurementmethoddoesnotinvolvetheproceduralrulesof opentenderingandselecttendering,butitmayincludea competitiveprocess,forexampleobtainingmultiplequotes. overthecounter purchase Directpurchaseofgoodsorservicesfromasupplier,wherethe procurementvalueisbelowathresholdrequiringacompetitive process.

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AppendixB:Requestfortendertemplate

Request for Tenders

Secretariat of the Pacific Regional Environment Programme

SPREP

File: Date: To: Contact: Subject:

PROE

Insertfileno./name 24May,2010 Interestedsuppliers Insertcontactdetailsofthestaffmemberwhocanbecontactedforfurther information

Programme rgional ocanien de l'environnement

Requestfortenders:Inserttitle

1. Background

1.1. ThePacificRegionalEnvironmentProgramme(SPREP)isanintergovernmental organisationchargedwithpromotingcooperationamongPacificislands countriesandterritoriestoprotectandimprovetheirenvironmentandensure sustainabledevelopment. 1.2. Formoreinformation,see:www.sprep.org.

2. Specifications: statement of requirement

2.1. SPREPwouldliketocallfortendersfromqualifiedandexperienceddesigners/ economists/gardenmaintenancecompanies/etc.whocanoffertheirservices toprovideaseriesoftrainingworkshops/regularmaintenanceservices/ expertassistancetoSPREPindevelopingaregionalstrategyon/etc. 2.2. Thesuccessfulapplicantwillneedtoprovide[insertthenature,scopeand quantityofthegoodsorservices]byinsertdate. 2.3. Describeanytechnicalspecificationsorotherinstructions,e.g.listthetermsof referenceforaconsultancy.

3. Conditions: information for applicants

3.1. Tobeconsideredforthistender,interestedsuppliersmustmeetthefollowing conditions:listanyconditions,e.g.financialguarantees,informationor documentsthatpotentialsuppliersmustsubmit.

AppendixB:Requestfortendertemplate

4. Submission guidelines

4.1. Tenderdocumentationshoulddemonstratethattheinterestedsupplier satisfiestheconditionsstatedaboveandiscapableofmeetingthe specificationsandtimeframes,andprovidesupportingexamplestoaddress theevaluationcriteria.Describeanyadditionalminimumcontentandformat requirements. 4.2. Tenderdocumentationshouldoutlinetheinterestedsupplierscomplete proposal:methods,personnel(andtheirskillsets/curriculavitae),timeframes andcosts.

5. Evaluation criteria

5.1. SPREPwillselectapreferredsupplieronthebasisofSPREPsevaluationofthe extenttowhichtheirtenderdocumentationdemonstratesthattheyofferthe bestvalueformoney,andthattheysatisfythefollowingcriteria. 5.2. e.g.Expertisein[indicateanyweightingappliedtocriteria] 5.3. e.g.Demonstratedexperiencein 5.4. e.g.Familiaritywith/comprehensiveunderstandingof 5.5. Describeanyotherfactorstobeconsideredinassessingsubmissions.

6. Deadline

6.1. Theduedateforsubmissionofthetenderis:givepotentialsupplierssufficient timetoprepareandlodgeasubmission,e.g.25days,unlessitisurgent. 6.2. Latesubmissionswillbereturnedunopenedtothesender. 6.3 PleasesendalltendersclearlymarkedTENDER:TitleofTenderto: mail: SPREP

Attention:Contactperson POBox240 Apia,SAMOA Email: Contactpersonsemailaddress. Fax: 68520231 Person:SubmitbyhandinthetendersboxatSPREPreception,Vailima,Samoa.

AppendixC:Tenderevaluationtemplate

Tender Evaluation
Secretariat of the Pacific Regional Environment Programme

SPREP

PROE

File: Date: To: From: Subject:

Insertfileno./name 24May,2010 Insertpersonwithdelegatedfinancialauthority(e.g.DeputyDirector) Staffmember

TenderEvaluationandRecommendation:Inserttitle

Programme rgional ocanien de l'environnement

1. Requirement / Terms of reference

1.1. Brieflyoutlinetherequirementortheconsultancytermsofreference.
2. Recommendation

2.1. TheevaluationcommitteerecommendsthatSPREPawardsthecontractto: supplierX. 2.2. ThisrecommendationisonthebasisthattheinformationsupplierXtendered demonstratedthattheysatisfiedtheconditions,arefullycapableof undertakingthecontract,andwillprovidethebestvalueformoney.Further informationisprovidedinthecommitteesevaluationbelow.

3. Conditions and evaluation criteria

3.1. TheconditionsthatwerestatedinSPREPsadvertisement/statementof requirementwere:[insertanyconditions]. 3.2. Thespecificevaluationcriteriawere:[insertcriteria,e.g.theconsultant expertiserequired,andgiveeachcriterionanumberforreferenceinthetable ofevaluationsbelow]. 3.3. Thegeneralcriteriaevaluatedtherelativevalueformoneyrepresentedbythe proposals,i.e.[deleteanynotrelevant]: a) costsdirectandindirectbenefits/costsoverthewholeprocurementcycle; b) qualityandfitnessforpurpose; c) environmentalconsiderations; d) convenienceandtimeliness;

AppendixC:Tenderevaluationtemplate e) therelativerisks,includingtheperformancehistoryofthesuppliers; f) theflexibilitytoadapttochangeoverthelifecycleofthegoodsorservice; g) favourabilityofproposedcontractterms(e.g.contractextensionoptions).

4. Budget

4.1. Statethebudgetallowedforthisactivity.

5. Recommendation and evaluation

5.1. Theevaluationcommitteememberswere:[givenamesandjobtitles]. 5.2. SPREPreceivedproposalsfrom[X]potentialsupplierswithinthedeadline.Of these: [X]mettheconditionssetasprerequisitesforparticipationandwere evaluatedagainstthecriteria; Theevaluationcommitteescoredeachoftheseproposalsoutof[X]for eachcriterion[noteifanycriteriawereweightedmoreheavilythan otherse,g,20pointsforcosts;10pointsforexperience].Scoresagainst thecriteriarangedfrom[X]to[X]outofapossible[XX]; Insummary,ourevaluationswere:
Quality of tender Specificcriteria (1) (2) (3) (4) Total score

Valueformoney Prospectivesupplier V W X Y Z $quote Score

Comments

Weconcludedthat[X]oftheproposalswerecompetitive:[supplierX, supplierYandsupplierZ],andagreedtorecommendawardingthe contractto[supplierX]. [Optional:ThestrengthsofsupplierXwere:A,B,C.] [Optional:ThestrengthsofsupplierYwere:A,B,C.] [Optional:ThestrengthsofsupplierZwere:A,B,C.]

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AppendixC:Tenderevaluationtemplate

5.3. Signedby: [Name] Chairpersonoftheevaluationcommittee