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PUBLIC PROCUREMENT MARKET

ITS SPECIFICITY

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IT IS PUBLIC NEEDS (SERVICES,SUPPLY,WORKS) FINANCED BY PUBLIC MONEY PUBLIC PROCUREMENTS REPRESENT 16% OF EU GDP CONTRARY TO CONSUMER MARKET AND INDUSTRIAL MARKET - P.P MARKET HAS A MAJOR CHARACTERISTIC:THE REGULATION OF THE PROCUREMENT PROCESS BY LOCAL REGIONAL NATIONAL OR INTERNATIONAL AUTHORITIES -NON DISCRIMINATION AND OPEN COMPETITION ARE PRIME OBJECTIVES THESE OBJECTIVES MAY REDUCE OPPORTUNITIES FOR SUPPLIERS TO DEVELOP LONG TERM CONTRACTUAL RELATIONSHIP WITH PUBLIC AUTHORITIES
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PROCUREMENT POLICY IS NOT ONLY ABOUT IMPOSING CONSTRAINTS ON AWARDING AUTHORITIES. IT IS ALSO ABOUT PROVIDING THE NECESSARY INCENTIVES FOR TO ACTIVELY PURSUE CONTRACT OPPORTUNITIES.

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DRIVING FORCE BEHIND PUBLIC PROCUREMENT: THE NEED FOR GOVERNMENTS TO MAINTAIN AND DEVELOP THE TYPE OF SOCIETY DEMANDED BY CITIZENS. PRIME MOTIVE IS SERVICE TO CITIZEN TWO SETS OF RULES HAVE TO BE FOLLOWED: -RULES OF THE TREATY(for all type of contract) -RULES OF THE PROCUREMENT DIRECTIVES(in the case of contracts of a certain amount)
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BASIC PRINCIPLES AND OBJECTIVES OF P.P.


OBTAIN BEST VALUE FOR MONEY FAIR COMPETITION,NON DISCRIMINATION SOUND FINANCIAL MANAGEMENT(economy,efficiency and effectiveness) ACCOUNTABILITY (record keeping)

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WHY A E.U. LEGISLATION FOR PUBLIC PROCUREMENT ?

TO CREATE A SINGLE MARKET FOR P.P. SO THAT EUROPEANS COMPANIES MAY HAVE ACCESS TO CONTRACTS WITHOUT DISCRIMINATION IN ACCORDANCE WITH THE TREATY WHICH AIMS AT INSTALLING: * FREE MOVEMENT OF GOODS * FREE MOVEMENT OF SERVICES INCREASING THEREFORE COMPETITIVENESS THROUGH BETTER FUNCTIONING OF THE MARKET AND OBTAINING BEST VALUE FOR MONEY
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TO HAVE FAIR , TRANSPARENT AND PREDICTABLE PROCEDURES EQUAL ACCESS TO OPPORTUNITIES,EQUAL TREATMENT AND NON DISCRIMINATION FOR AA EU SUPPLIERS

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TO THAT END THE COMMUNITY HAS DECIDED TO COORDINATE THE PROCUREMENT PROCEDURES FOLLOWED IN DIFFERENT COUNTRIES. E.U. LEGISLATION OFFERS A WIN-WIN SITUATION TO BOTH CONTRACTING AUTHORITIES AND CONTRACTORS

* INCREASED COMPETITION OFFERS THE POSSIBILITY TO C.A. TO HAVE BETTER VALUE FOR MONEY * OPENING OF MARKETS OFFERS CHANCES TO COMPETITIVE CONTRACTORS TO WIN -EITHER CROSS BORDER CONTRACTS -OR HOME MARKET CONTRACTS THROUGH CONSORTIA, JOINT VENTURE, SUBCONTRACTING OR PARTNERSHIP

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P.P. WHICH ARE EXEMPT FROM THESE RULES (i.e whose contract amounts are below the level)MUST STILL RESPECT TREATY PRINCIPLES OF NON DISCRIMINATION ON GROUND OF NATIONALITY,EQUAL TREATMENT,TRANSPARENCY. THESE CONTRACTS WILL BE SUBJECT TO COMPETITION USING PUBLICATION AS APPROPRIATE BUT PUBLICATIONS ARE NOT REQUIREDTO APPEAR IN O.J.EU
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THE SUPPLIER S PERSPECTIVE


HOW TO INCREASE OPPORTUNITIES

AT STRATEGIC STAGE DEFINING YOUR PRODUCT IN THE PUBLIC MARKET HAVING A MARKETING STRATEGY TARGETING YOUR MARKET ASSESSING THE POTENTIAL BARRIERS TO MARKET ENTRY -REGULATORY -TECHNICAL -ECONOMIC -CULTURAL
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ASSESSING REGULARLY CUSTOMER EXPECTATIONS WILL HELP YOU IMPROVE YOUR OVERALL COMPETITIVENESS.A CLEAR PICTURE OF CUSTUMER EXPECTATIONS QUALITY RELATIVE TO PRICE DELIVERY TECHNICAL HELP ALL ROUND CUSTOMER SERVICE WILL ALSO MAKE FOR MORE EFFECTIVE BIDS

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AT BIDDING STAGE

READ CAREFULLY THE REQUIREMENTS STATED IN THE TENDER DOSSIER NOT ONLY TECHNICAL BUT ALSO ADMINISTRATIVE(MANY CASES OF REJECTION OCCUR FOR ADMINISTRATIVE NON COMPLIANCE).OFFERS DO NOT INCLUDE WHAT WAS ASKED FOR. EXPLOIT THE POSSIBILITY OF *CONSORTIA ,JOINT VENTURE OR PARTNERSHIP *SUBCONTRACTING TO LOCAL FIRMS OR BEING SUBCONTRACTOR TO FOREIGN FIRM *ALLOTMENT

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DO NOT LEAVE THE PREPARATION OF YOUR OFFER TO THE LAST MOMENT.LEARNING LOCAL REGULATION(ON CUSTOMS TAXES OR LABOUR)CREATION OF CONSORTIA,JOINT VENTURE,OR SUBCONTRACTING MAY BE TIME CONSUMING. INVOLVE ALL MANAGERS IN WRITING OF BID.BID SUBMITTED BY SALES MANAGER ALONE COULD CONTAIN DISASTROUS ERRORS OR PROMISES

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USE THE LANGUAGE OF THE COUNTRY OF C.A.(IF NOT OTHERWISE STATED) WHEN YOU RESPOND TO TENDER;THE FACT THAT EUR. O.J. PUBLICATIONS ARE TRANSLATED INTO MEMBER STATE LANGUAGES MAY MISLEAD READERS AS TO THE APPROPRIATE LANGUAGE FOR TENDERING. LOCAL PRESENCE HAS MANY ADVANTAGES.IN PARTICULAR SUBTHRESHOLD OPPORTUNITIES,WHICH ARE NOT REQUIRED TO BE ADVERTISED IN THE O.J., CAN OFTEN ONLY BE IDENTIFIED BY HAVING THIS PRESENCE.
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HOW TO BE INFORMED

A P.P. INFORMATION SYSTEM(SIMAP) HAS BEEN LAUNCHED BY THE COMMISSION IN COLLABORATION WITH THE MEMBER STATES HTTP://WWW.SIMAP.EU.INT THIS NEW ELECTRONIC TOOL IMPROVES QUALITY OF INFORMATION ON P.P. AND MAKES P.P. MORE EFFICIENT FOR CONTRACTING AUTHORITIES AND FOR SUPPLIERS:
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SIMAP

EASY ON-LINE ACCESS *TO TENDER OPPORTUNITIES FOR SUPPLIERS *TO STANDARDISED NOTICES FOR C.A. IT PROVIDES *ON-LINE VERSION OF O.J. PUBLICATIONS OF TENDERS: TENDER ELECTRONIC DAILY(T.E.D.) *PROCUREMENT OPPORTUNITIES DATABASES(BY COUNTRY,INTERN ATIONAL AND EUROPEAN INSTITUTIONS)

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*COMMON PROCUREMENT CODE(C.P.V.) *FORMS OF THE O.J. FOR CONTRACT NOTICE,PRIOR INFORMATION AND CONTRACT AWARD *SUPPORT FOR PROBLEM SOLVING THROUGH *THE EUROPEAN PUBLIC NETWORK(PPN) CONTACT POINT *THE SOLVIT CENTER IN YOUR COUNTRY
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THE C.P.V. IS A CODE WHICH *FACILITATES THE PROCESSING OF INVITATION TO TENDER PUBLISHED IN THE O.J. BY MEANS OF A SINGLE CLASSIFICATION SYSTEM TO DESCRIBE THE SUBJECT MATTER OF PUBLIC CONTRACT. *IMPROVES THE TRANSPARENCY. *HELPS THE SUPPLIERS TO IDENTIFY QUICKLY THE OPPORTUNITIES. *HELPS THE C.A. TO BROADEN COMPETITION. *WILL BECOME COMPULSURY WITH THE ADOPTION OF THE REVISED EUROPEAN DIRECTIVES.

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OTHER SOURCES OF INFORMATION


DIRECT LINK TO OFF. JOURNAL OF E.C. TED HTTPP://TED.EUR.OP.EU.INT TAILORED SERVICES EURO INFO CENTERS(EIC) WHICH PROVIDE SPECIALISED INFO AND ADVISORY SERVICES TO HELP COMPANIES TO DEVELOP BUSINESS IN E.U.(FINDING PARTNERS MARKET INFO)
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EUROPEAN ORGANISATION FOR TESTING AND CERTIFICATION(EOTC) HTTPP://WWW.EOTC.BE TRADE ASSOCIATIONS CAN BE VERY HELPFUL.CAN GIVE DEEPER INSIGHT INTO LEGAL ISSUES PERTAINING TO P.P.(CONTRACTS,STANDARDS) WITHIN YOUR SECTOR CEN(HTTPP://CENORM.BE) AND CENELEC(HTTPP://CENELEC.BE)FOR STANDARDS
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COMMON PRACTICE IN P.P.

DIRECTIVES LEAVE TO NAT. AUTH. THE CHOICE OF FORMS AND METHODS TO BE INCLUDED IN NAT. LEGISLATION TO ACHIEVE THE OBJECTIVES THEY FIXE DIRECTIVES DO NOT GIVE CODES OF PROCEDURE.THEY FIXE CERTAIN RULES TO BE APPLIED THE EU LEGISL. DOES NOT REPLACETHE NAT. LEGISL.IT DEFINES THE FRAMEWORK IN WHICH THE NAT. LEGISL.MUST APPLY AND AUTH.MUST OPERATE.IT IS TRANSPOSED IN THE NAT. LEGISL. IT LEAVES ROOM HOWEVER TO DIFFERENT NAT. P.P. PRACTICES/IMPLEMENTATION MEASURES

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STAGES OF PUBLIC PROCUREMENT PROCESS


1.

2. 3.

4.
5. 6. 7. 8. 9.

JUSTIFICATION & PREPARATION OF ACTIONS SUBJECT TO P.P. PLANNING CHOICE OF PROCEDURES ELABORATION OF TENDER DOSSIER INFORMATION/PUBLICATION INVITATION TO TENDER SUBMISSION & OPENING OF OFFERS EVALUATION OF OFFERS AWARD OF CONTRACT IMPLEMENTATION OF CONTRACT MANAGEMENT
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PHASE 1 AIMS AT ASSESSING THE NEEDS AND DEFINING THE BEST SOLUTION TO FULLFIL THESE NEEDS PHASES 2 TO 8 IS THE TENDER PROCEDURE PROPER PHASE 9 AIMS AT MONITORING AND CONTROLING THE CONTRACT PHASE 1 AND/OR PHASE 9 CAN BE OUTSOURCED TO A CONSULTANT/EXPERT WHICH AT THE SAME TIME MUST KNOW WELL THE MARKET AND BE INDEPENDANT
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1) JUSTIFICATION & PREPARATION OF ACTIONS SUBJECT TO P.P.


GENERAL OUTLINE & TECHNICAL DEFINITION(to say if it is part of a
strategy/define time scale)

START ADMIN.&LEGAL CLEARANCE(permit to build or supply)BEFORE LAUNCHING TENDERS INVOLVEMENT OF STAKEHOLDERS TOTAL COST EVALUATION/assessment of the choice of contract(fixed or revisable prices) ECONOMIC & SOCIAL JUSTIFICATION OF THE INVESTMENT
(INCLUDING WHOLE LIFE COST OF INVESTMENT)

ENVIRONMENTAL IMPACT & CHOICE OF TECHNOLOGY PREPARE BUDGET DECISION TO FINANCE THE PROJECT

PROJECT MANAGEMENT ORGANISATION(staff/team)

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ELABORATION OF TECHNICAL SPECIFICATIONS(REQUIRED CHARACTERISTICS OF A PRODUCT OR A SERVICE) IS AN IMPORTANT ELEMENT OF THE PREPARATION TECHNICAL SPEC. CAN BE EITHER FIXED OR MUST MEET A MINIMUM LEVEL OR MAY BE FORMULATED IN TERMS OF PERFORMANCE / FUNCTIONAL REQUIREMENTS TECHNICAL SPEC. MUST BE CLEARLY WRITTEN VARIANTS CAN BE ADMITTED WHEN THE AWARD CRITERION IS THE MOST ECONOMICALLY ADVANTAGEOUS SUB-CONTRACTING CAN BE ADMITTED TENDER CAN BE DIVIDED INTO LOTS
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RECOMMANDATIONS
!!Any advice may be used in the preparation of technical specifications provided that it does not have the effect of precluding competition. !!Any involvment of one potential contractor in the preparation of a tender excludes it automatically from participating to the same tender !! In the case of works contracts or important supply contracts the role of the supervisor must be clearly defined
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!! technical spec. shall not have the effect of creating unjustified obstacles to the opening of p.p. to competition !! technical spec. shall not refer to specific make or service. In exceptional cases such reference shall be accompagnied by the word or equivalent .Idem when reference is made to a specific norm or standard.
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!! Project cannot be fractionned in different tenders.It is not possible to disagregate.It can only be divided into lots !! Mandatory national technical rules can be applied to the extent that they are compatible with community law.

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TECHNICAL BARRIERS ARE A REALITY OF EUROPEAN MARKET DIFFERENCES IN NATIONAL STANDARDS AND THE CONFORMITY CERTIFICATION PROCEDURES ARE A MAJOR OBSTACLE EC P.P. PROCUREMENT LEGISLATION PROMOTES THE USE OF RELEVANT EUROPEAN STANDARDS WHERE THEY EXIST ! !NATIONAL STANDARDS CANNOT BE USED TO DISCRIMINATE AGAINST OTHER EC ORIGIN PRODUCTS
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2) CHOICE OF P.P. PROCEDURES

To award procurement contracts:choice between -OPEN PROCEDURE (OP) -RESTRICTED PROCEDURE (RP) -NEGOTIATED PROCEDURE (NP) -ACCELARATED PROCEDURE as an exception And in the future(new directive) -FRAMEWORK CONTRACT -COMPETITIVE DIALOGUE
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3) ELABORATION OF TENDER DOSSIER


1.
2. 3. 4. 5. 6. 7. 8. 9. 10.

Instructions to Tenderer (content of tender, lots, period of validity, variant solutions,


pre-tender visit)

Special Conditions (amendments to general conditions or ad hoc clauses) General Conditions (include legal and administrative provisions) Technical Specifications (either fixed or must meet a minimum level or meet
performance/functional requirements)

Bill of quantities, price breakdown Bank Guarantee Models (for submission, for advance payments, for performance) Note of General Information (concerning customs, tax and price laws and
regulations)

Procedural Rules on Conciliation and Arbitration of Contracts (usually included in the general conditions) Informations asked to tenderers to assess their qualification Must indicated if it is a fixed non revisable price contract or revisable price contract with price revision formula.

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4) INFORMATION/PUBLICATION
OBLIGATION FOR CONTRACTING AUTHORITIES :
TO INFORM THE WISH TO AWARD PUBLIC CONTRACTS OR FRAMEWORK AGREEMENTS: yearly indicative notices & invitation to tenders TO INFORM RESULTS OF PROCEDURE OF AWARD (48 days after award of contracts or conclusion of a framework agreement)

BEYOND THE THRESHOLDS OF THE E. U. DIRECTIVE ALL TENDERS MUST BE PUBLISHED TO THE EU O.J.:
SERVICES & SUPPLIES CONTRACTS: 162.000 OR 249.000 depending on the type of Public Authority listed in annex to the directive WORKS CONTRACTS: 6.242.000

BELOW THE THRESHOLDS ADEQUATE PUBLICITY MUST BE DONE TO ENSURE FAIR COMPETITION !! DO NOT LAUNCH A TENDER BEFORE THE BUDGET IS SECURED. ! !BEFORE THE ACTUAL TENDER PROCEDURE C.A. MAY ISSUE A PRE-INFORMATION NOTICE.IT IS NOT AN INVITATION 5/16/2013 32 TO CONTRACTORS TO TENDER

5)CONTRACT NOTICE / INVITATION TO TENDER


CONTRACT NOTICE INDICATES .AWARD PROCEDURE CHOOSEN(OP,RP..) .FORM OF CONTRACT (service,supply,works) .LANGUAGE .CRITERIA OF THE AWARD OF CONTRACT .INFORMATIONS REQUESTED CONCERNING SUPPLIERS PERSONAL POSITION

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FOR O.P. PLACE WHERE CONTRACT DOCUMENT MAY BE REQUESTED FINAL DATE FOR RECEIPT OF TENDERS DATE ,TIME ,PLACE OF OPENING VALIDITY PERIOD OF THE BID

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FOR R.P. FINAL DATE FOR RECEIPT TO PARTICIPATE ENVISAGED Nb OR RANGE OF SUPPLIERS WHO WILL BE INVITED TO TENDER FINAL DATE FOR DISPATCH OF INVITATION TO TENDER IN THAT CASE THE INVITATION TO TENDER WILL BE MADE IN WRITING AND SENT SIMULTANEOUSLY TO ALL SELECTED CANDIDATES TOGETHER WIYHBTHE TENDER DOCUMENT
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THREE CATEGORIES OF CRITERIA BIDDER RELATED CRITERIA:FOR SELECTION AND QUALIFICATION. TENDER RELATED CRITERIA: FOR EVALUATION OF OFFERS. AWARD CRITERIA: ONLY TWO -THE LOWEST OFFER -OR THE MOST ECONOMICALLY ADVANTAGEOUS OFFER.(best overall combination of price and quality)

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CRITERIA AND/OR THEIR RELATIVE WEIGHTING CANNOT BE CHANGED AFTER OFFERS HAVE BEEN SUBMITTED IF THEY ARE CHANGED AFTER PUBLICATION AND BEFORE SUBMISSION,DATE OF SUBMISSION MUST BE POSTPONED

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6)SUBMISSION& OPENING OF OFFERS


This applies only for open procedure(OP)and restricted procedure(RP) TIME LIMITS from the date contract notice is sent:(regulation 1182/71/EEC governs time limit calculation) -for OP:52 days to submit an offer -for RP:37 days to submit a request to participate 40 days after invitation to participate is sent to submit an offer OPENING(generally public)
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7) EVALUATION OF OFFERS
MADE BY AN EVALUATION COMMITTEE WHICH ELABORATES AN END OF EVALUATION REPORT WITH A PROPOSAL TO AWARD THE CONTRACT SELECTION OF PARTICIPANTS
PRINCIPAL SELECTION OR QUALIFICATION CRITERIA USED: - SUBJECTIVE TECHNICAL AND/OR PROFESSIONAL CAPACITY ECONOMIC AND FINANCIAL STANDING -OBJECTIVE RESPONSIVENESS TO ADMIN. AND TECHN. REQUIREMENTS PERSONAL SITUATION OF TENDERER,SUCH AS BANKRUPT,CORRUPTION,PROFESSIONAL MISCONDUCT ADMINISTRATIVE DOSSIER UNCOMPLETE CONFLICT OF INTEREST ! ! In the case of RP this selection is made at the pre-qualification level, i.e. before sending the tender dossier. A minimum of 5 candidates invited to submit a tender is required. !! In the case of NP a minimum of 3 candidates invited to negotiate is required !! Only selected participants/bids are evaluated

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AWARD CRITERIA either THE LOWEST PRICE tender administratively and technically compliant or THE MOST ECONOMICALLY ADVANTAGEOUS TENDER ( Based on

evaluation criteria such as quality, price, technical merit, functional characteristics, environmental characteristics, running costs, costeffectiveness, after sales service and technical assistance, delivery date or period of completion).

! ! Relative weighting given to each criteria must be specified in the invitation


to tender notice

! ! Techn. Spec. are selection criteria if they are fixed requirements


are evaluation criteria if they must meet with a min. ! level ! Changing criteria or even a change in relative importance of criteria is not permitted

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WRITTEN REPORT SHALL INCLUDE:
NAMES OF TENDERERS ADMITTED AND REASONS NAMES OF TENDERERS REJECTED AND REASONS NAME OF TENDERER TO WHICH IT IS PROPOSED TO AWARD THE CONTRACT

!! ABNORMALLY LOW TENDER Before rejection, explanations are requested and analysis is made taken into consideration:
ECONOMICS OF PROCESS TECHNICAL SOLUTIONS CHOOSEN EXCEPTIONALLY FAVOURABLE CONDITIONS AVAILABLE ORIGINALITY OF SUPPLIES, SERVICES, WORKS PROPOSED STATE AID

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For Supply and Civil Works Contract the evaluation of the most economically advantageous offer is made through a matrix including the evaluation criteria, their scores & their relative weights
Offer 1 Offer 2

Evaluation criteria ----------------------------------------

A score (1-100) B weight (%) ---------------------------------------------------------Total = 100

(AxB) ---------------Total=

(AxB) ------------------Total =

The contract is awarded to the highest score

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FOR SERVICE CONTRACTS THE EVALUATION OF THE MOST ECONOMICALLY ADVANTAGEOUS OFFER IS MADE BY WEIGHTING QUALITY & COST FOLLOWING A CERTAIN RATIO (FOR EX. 80/20)

SCORES GIVEN TO TECHNICAL OFFER ARE MULTIPLIED BY 0,80 SCORES GIVEN TO FINANCIAL OFFER ARE MULTIPLIED BY 0,20

THE CONTRACT IS AWARDED TO THE OFFER HAVING THE HIGHEST FINAL SCORE ( addition of technical score & financial score)

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HOW TO SCORE TECHNICAL & FINANCIAL OFFERS? TECHNICAL OFFER:
EACH EVALUATOR SCORES IT (up to a maximum of 100 points) TAKING INTO ACCOUNT RELATIVE WEIGHT OF EACH FACTOR BY WHICH THE QUALITY CAN BE ASSESSED (methodology, staff profile) AVERAGE TECHNICAL SCORE IS THEN ATTRIBUTED TO EACH OFFER ONLY TECHNICAL OFFERS HAVING REACHED SCORE > 80 ARE RETAINED THE FINAL TECHNICAL SCORE OF EACH RETAINED OFFER IS DETERMINED AS FOLLOWS: (AVERAGE TECHNICAL SCORE OF THE OFFER / AVERAGE TECHNICAL SCORE OF THE BEST TECHNICAL OFFER) x 100

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FINANCIAL OFFER:
ONLY FINANCIAL OFFER OF THE TECHNICAL OFFERS RETAINED ARE CONSIDERED SCORE OF 100 IS GIVEN TO THE LOWEST FINANCIAL OFFER FINANCIAL SCORE OF OTHER OFFERS IS DETERMINED AS FOLLOWS: (COST OF THE LOWEST OFFER / COST OF THE OFFER) x 100

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8) AWARD OF CONTRACT
THERE ARE ONLY 2 CRITERIA TO AWARD CONTRACTS:
LOWEST PRICE MOST ECONOMICALLY ADVANTAGEOUS TENDER

COMPOSITION OF A CONTRACT:

PART I

PART II
General Conditions (no modifications possible),

+ TECHNICAL ANNEXES

Special Conditions (ad hoc clauses or amendments to general conditions)

Technical Specifications, Tenderer offer (comprising among others modalities of execution and price) Order of precedence of contract documents must be indicated.Minutes of information meetings and site visits are part of the contract document

CONTRACT SENT BY CONTRACTING AUTHORITY TO CONTRACTORS FOR SIGNATURE INFORMATION TO ALL CANDIDATES OF RESULTS OF PROCEDURE OF AWARD 5/16/2013

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9) IMPLEMENTATION OF CONTRACT
A CONTRACT IS A LEGAL COMMITMENT BETWEEN CONTRACTING AUTHORITY (C.A.) & CONTRACTOR . C.A. MUST PROCEED WITH:

CONTINUOUS SUPERVISION OF THE EXECUTION TO ENSURE THAT


CONTRACTOR FULLFILL THE TERMS(LEGAL, ADMIN.&TECNICAL)OF THE CONTRACT

QUALITY CONTROL COST CONTROL MONITORING OF IMPLEMENTATION TIMETABLE (Delays) CHECKING THE BILL OF QUANTITIES DEALING WITH VARIATION ORDERS VERIFICATION OF PAYMENT ORDERS MANAGEMENT OF BANK GUARANTEES PENALTIES CALCULATION (IF NECESSARY) CLAIMS ANALYSIS/ ARBITRATION, CONCILIATION MANAGEMENT ( IF NECESSARY) PROVISIONAL ACCEPTANCE FINAL ACCEPTANCE

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10) MAIN FACTORS OF RISK (I)

UNCOMPLETE PREPARATION OF ACTION


STAKEHOLDERS NOT OR NOT ENOUGH INVOLVED WRONG COST EVALUATION WRONG ENVIRONMENTAL IMPACT ASSESSMENT AND CHOICE OF TECHNOLOGY WEAK OR WRONG ECONOMIC/SOCIAL JUSTIFICATION MISSING TO CONSIDER WHOLE LIFE COST OF INVESTMENT

TENDER DOCUMENT
TECHNICAL SPECIFICATIONS NOT CLEAR ENOUGH DOSSIER UNCOMPLETE OR TOO VAGUE ON ADMINISTRATIVE & LEGAL ISSUES (delays, penalties, bank guarantees)

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10) MAIN FACTORS OF RISK (II)

EVALUATION OF OFFERS
WRONG ASSESSMENT OF TECHNICAL CAPABILITY & ECONOMIC & FINANCIAL STANDING OF CONTRACTOR

IMPLEMENTATION OF CONTRACT
CONTRACTING AUTHORITY DOESNT FULFILL ITS OBLIGATION WEAK SUPERVISION INSUFFICIENT QUALITY CONTROL COST CONTROL TIMETABLE CONTROL

POSSIBLE RISKS ARE:


Cost overuns / Quality not up to Standards / Delays / Breach of contract/ Claims / Arbitration / Termination of contract.
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OPTIONAL MODULE EVALUATION OF TENDERS

A For supply and works contracts 1-Assessment of the tenderers capacity to execute the contract(financial situation as well as technical and professional capacities) 2-Evaluation of technical offers .administrative compliance(yes or no grid) .technical compliance(to assess whether or not the competing tenders meet the minimum technical requirements criteria) 3-Evaluation of financial offers(arithmetical errors ,if any,are corrected.If the tender procedure contains several lots, financial offers are compared for each lot.The financial evaluation will have to identify the best financial offer for each lot) 4-Choice of contractor For works contracts the tender offering best value for money is the least expensive tender classified astechnically compliantduring technical evaluation. For supply contracts the tender offering best value for money is selected using a matrix including evaluation criteria(such as functional characteristics,environmental characteristics,running costs,after sales service and technical assistance,delivery date).The contract is awarded to the tender achieving the lowest score.
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OPTIONAL MODULE EVALUATION OF TENDERS


B For service contracts Technical offers and financial offers must be put in two separate sealed envelopes.The evaluation procedure starts with the evaluation of technical offers. 1-Evaluation of technical offers Each evaluator awards each offer a score out of a maximum 100 points in accordance with the technical evaluation grid.The aggregate final score is the arithmetic average of the individual scores.Any tender falling short of the 80 point threshold is automatically rejected. The committee considers only tenders that have obtained at least 80 points.Of these tenders,the best technical offer is then awarded 100 points.The others receive points calculated by means of the following formula: Points=(initial score of the tender in question / initial score of the best technical offer)x100 2-Evaluation of financial offers Arithmetic errors,if any,are corrected. The lowest financial offer receives 100 points.The others are awarded points by means of the formula: Points=(lowest financial offer /financial offer considered)x100 3-Choice of contractor The tender offering best value for money is selected using an 80/20 weighting distribution between technical quality and price.This is done by multiplying: the scores awarded to the technical offers by 0.80 the scores awarded to the financial offers by 0.20 The resulting technical and financial scores are then added together, and the contract is awarded to the tender achieving the highest score.
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OPTIONAL MODULE EVALUATION OF TENDERS


GENERAL CONSIDERATIONS IN ALL ABOVE CASES A Selection and award criteria should be precise, discriminatory and not prejudicial to fair competition non-

B The chairman of the evaluation committee must check that no member has a potential conflict of interest with any of the tenderers C The entire tender procedure is confidential from the end of the tender opening session to the signature of the contract by both parties.

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OPTIONAL MODULE CONTENT OF A TENDER DOSSIER


A For works and supply contracts 1- Instruction to tenderers 2- Additional notice to tenderers 3-Tender submission form 4-Contract form 5-Special conditions 6-General conditions 7-Technical Specifications 8-Description of tender evaluation system giving the criteria for evaluation and the weight attached to each individual criteria 9-Financial offer(model) price schedule and breakdown,bill of quantities 10-Tender guarantee (form) 11-Performance guarantee (form) 12-Prefinancing payment guarantee (form) The tender must clearly state whether or not the tender must be made fixed,non-revisable price.If not,the tender dossier must lay down the formula for revising prices during the life time of the contract.

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OPTIONAL MODULE CONTENT OF A TENDER DOSSIER


DETAILS OF EACH ABOVE ITEMS (only main issues to be included are mentionned here below.For full information about procedure,standard dossiers,templates, models and forms please consult the following web page:http://europa.eu.int/comm./europeaid/tender/gestion/index en.htm. )
1-Financing,participation,timetable,period of validity of tenders,variant solutions,lots,clarification meeting/site visit,opening of tenders,criteria of selection and award with their weighting,joint venture/consortium,subcontracting 2-General information about the tenderer,financial statement,financial identification form,technical qualifications For works tender dossier:Overview of tenderers personnel,personnel to be employed on the contract,professional experience of key personnel,plant ,workplan and programme,design documents and drawings 5-Period of execution,commencement order, contractors drawings,and any conditions which amplify,supplement or derogate from the general conditions and,when they conflict,override them.

For works tender dossier: Supervisor,variations and modifications,


For supply tender dossier: Inspection and testing,delivery,after sales service,warranty 6-Consult the above mentioned web page for standard text. Includes legal and administrative issues among others obligations of the contracting authority and of the contractor,breach of contract and termination,dispute settlement.This document is kept as it is. 7-To be specified by the contracting authority 3-4-9-10-11-and 12- Consult the above web page for models and forms
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OPTIONAL MODULE CONTENT OF A TENDER DOSSIER


B For service contracts 1-Instructions to tenderers 2-Shortlist of candidates 3-Special conditions 4-General conditions 5-Terms of reference 6-Budget breakdown 7-Tender submission form 8-Contract form 9-Format for a guarantee for pre-financing payments

DETAILS OF EACH ABOVE ITEMS(only main issues to be included are mentioned here below)
1-Selection and award criteria and their weightings,whether interviews of key experts will be held,whether variants are allowed,whether subcontracting is permitted,maximum budget available for the contract 2-Stipulate that candidates cannot form alliances 5-Provisional timetable
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PROCUREMENT PROCESS
INVITATION TO TENDER (Notice) TENDER DOSSIER (Contents of tender dossier,Clarification of tender information,Amendments to tender dossier) INSTRUCTIONS TO TENDERERS (Contents of tender,Lots,Independence of tenderers,Pricing of tenders,Period of validity,Tender guarantee,Variant solutions,Pretender visit,Signing of tenders EXAMINATION OF TENDERS (Opening of tenders,Evaluation of tenders,Annulment of tender procedure) AWARD OF CONTRACT (Notification of award)

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1 GENERAL CONDITIONS FOR CONTRACTS PRELIMINARY PROVISIONS Such as law of the contract Order of precedence of contract documents Sub-contracting OBLIGATIONS OF THE CONTRACTING AUTHORITY Such as -supply of documents -access to site OBLIGATIONS OF THE CONTRACTOR Such as -performance guarantee -insurance -performance programme -detailed breakdown of prices -contractors drawings -staff -patents and licences
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GENERAL CONDITIONS FOR CONTRACTS

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GENERAL PROVISIONS FOR CONTRACTS


COMMENCEMENT AND DELAYS Such as -commencement orders -period of performance -delays in performance -variations -suspension MATERIALS AND WORKMANSHIP Such as -quality of supplies,works and materials -inspection and testing -rejection PAYMENTS Such as -advances -retention sums -revision of prices -interim payments -final statement of account
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GENERAL PROVISIONS FOR CONTRACTS


ACCEPTANCE Such as -delivery -test on completion -provisional acceptance -after sales service -final acceptance BREACH OF CONTRACT AND TERMINATION Such as -breach of contract -termination by the contracting authority -termination by the contractor -force majeure SETTLEMENT OF DISPUTES 2 PROCEDURAL RULES ON CONCILIATION AND ARBITRATION OF CONTRACTS

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