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Contract Award Procedures The different types of tenders 1 Contract Award Procedures The different types of tenders 1

Services WHAT: WHO: the provision of services e. g. technical assistance, studies, training or Services WHAT: WHO: the provision of services e. g. technical assistance, studies, training or designs Contracting Authority & Consultant Supplies WHAT: the purchase, leasing, rental or hire purchase of products including their design, manufacture, delivery, assembly or commissioning of goods together with any related tasks e. g. installation, maintenance, repairs, training and after-sales service WHO: Contracting Authority & Supplier Works WHAT: WHO: the execution of works, or both design and execution of works; a work is the outcome of building or civil engineering works. - Contracting Authority & Contractor - Contracting Authority & Supervising Engineer (separate services contract, will be detailed later during the course) 2

Selection of Contracts Type - Works against Supplies q q q In some cases, Selection of Contracts Type - Works against Supplies q q q In some cases, there are Supplies requiring a considerable amount of Works for their installation. In certain conditions, especially where the related Works are of a significant amount, it may be far easier to control the contract implementation through a Works contract. When selecting any of the previous types of contract, attention should be paid to: § the actual existing conditions. § the sought conditions after the contract implementation. § the potential contract implementation course – always allow for flexibility § the contract management capacities of Contracting Authority /Beneficiary. § previous experiences – capitalise knowledge. 3

Work Contracts WHAT: A contract concluded between the Contracting Authority and a Contractor for Work Contracts WHAT: A contract concluded between the Contracting Authority and a Contractor for execution of works or both design and execution of works WHO: Contracting Authority Contractor WORKS CONTRACTS Budget ≤ € 5, 000 Single tender Budget € 300, 000 Competitive Negotiated procedure € 300, 000 ≤ Budget € 5 MEuro Local open tender procedure € 5 MEuro ≤ Budget International open/restricted tender procedure 4

Works Contracts q Single Tenders q Competitive Negotiated Procedure q Local Open Tender Procedure Works Contracts q Single Tenders q Competitive Negotiated Procedure q Local Open Tender Procedure q International Restricted Tender Procedure q Negotiated Procedure 5

Contract Size (2. 5) q The procurement thresholds must be respected and projects must Contract Size (2. 5) q The procurement thresholds must be respected and projects must not be split artificially to circumvent these thresholds. 6

Single Tender for Works € 5 000 q q q one offer sufficient procedure Single Tender for Works € 5 000 q q q one offer sufficient procedure not covered in the PRAG (the identified Contractor must submit a brief technical proposal and a financial offer) can be sent and received by fax and the evaluation can be carried out in an informal manner, providing the confidentiality of the proceedings and the impartiality of the evaluators are respected 7

Competitive Negotiated Procedure (5. 6) for Works € 5 000 < but < € Competitive Negotiated Procedure (5. 6) for Works € 5 000 < but < € 300 000 q q q no publication of Procurement Notice, only local advertisement the CA draws up a list of at least 3 potential bidders of its choice. Make sure invited bidders will be interested in submitting a tender! the potential bidders are sent a letter of Invitation to Tender, accompanied by a Tender Dossier 8

Competitive Negotiated Procedure (5. 6) q q The chosen candidates are given at least Competitive Negotiated Procedure (5. 6) q q The chosen candidates are given at least 30 days to submit their Tender Evaluation of tenders follows the same procedure as for an international restricted or open tender At least three technically compliant tenders MUST be received (or the procedure must be cancelled) It is recommended that MORE than three potential candidates are identified and then first approached to ascertain their interest in submitting a bid 9

Local Open Tender (5. 5) n for Works € 300 000 ≤ but < Local Open Tender (5. 5) n for Works € 300 000 ≤ but < € 5 000 10

Local Open Tender (5. 5) q the Procurement Notice is published only in the Local Open Tender (5. 5) q the Procurement Notice is published only in the beneficiary country q European Commission publishes the references of such tender procedures (dossier number, country, Contracting Authority and type of contract) on the Internet with the address from which firms can obtain further information q the Procurement Notice for a local tender must, at a minimum, be published in the Official Journal of the beneficiary country or any equivalent media, under its responsibility q local open tender procedure must provide other eligible contractors with the same opportunities as local firms q in this procedure, there must be a minimum of 60 days between the date of publication of the Procurement Notice and the 11 deadline tenders submission

Restricted Procedure (5. 2. 1. 2) q q In exceptional cases, justified by special Restricted Procedure (5. 2. 1. 2) q q In exceptional cases, justified by special characteristics of certain projects However, providing the Financing Memorandum timeframe allows it, in the case of large contracts, this procedure may save huge efforts of both Tenderers and Contracting Authority 12

Negotiated Procedure (5. 2. 1. 3) Only possible in the following cases: q In Negotiated Procedure (5. 2. 1. 3) Only possible in the following cases: q In case of extreme urgency due to unforeseen events q For additional works not included in the initial contract which have, through unforeseen circumstances, become necessary for carrying out the works and which have been awarded to the contractor already carrying out the work: n where works cannot be separated from the main contract without serious inconvenience to the Beneficiary; n where works, although separable from the performance of the original contract, are strictly necessary to its completion; n where the aggregate value of additional works do not exceed 50% of the value of the main contract q In case of unsuccessful tender procedure, i. e. no qualitatively and/or financially worthwhile tender has been received. Contracting Authority will cancel the tender and negotiate with one or more Tenderers, from among those that took part in the invitation to tender 13