PUBLIC PROCUREMENT LAW IN LATVIA Legal Bases

PUBLIC PROCUREMENT LAW IN LATVIA

Legal Bases of the Public Procurement Law • the Law of 5 July 2001 on Procurement for State or Local Government Needs • Cabinet Regulation No. 257, adopted 8 April 2004 “Regulations Regarding Procurement for Needs of Providers of Public Services” Both Laws are supplemented with secondary legislation

Procurement Methods • Open Competition • Restricted Competition • Price Quotation • Negotiated Procedure • Design Contest

Thresholds (in LVL) • Type of Contract Procurement Method Price Quotation Negotiated Procedure Supplies Restricted Competition >10 000 1000 -10000 1000 -50000 1000 Services Works Open Competition >10 000 >50 000 EU thresholds: > 80 000 lats for supply and service contracts, >2 800 000 lats for works contracts

Qualification Criteria: Conditions for Excluding Tenderers • Insolvency • Tax debts • Violations of the professional activities • No registration in cases prescribed by Law • No corresponding certificate or license • Pay-down of wages without tax payment

Qualification Criteria: Requirements and Documents Regarding the Economic and Financial Standing The contracting authority shall determine the minimal requirements with respect to the economic and financial standing and may require the tenderer to submit one or more of the following documents: • the annual accounts • a statement regarding the tenderer’s financial turnover • information regarding State social insurance payments from the income of the employer

Qualification Criteria: Requirements Regarding Tenderer’s Capabilities The contracting authority shall determine the minimal requirements with respect to tenderer’s capabilities, inter alia: - experience; - qualification of the staff; - technical capacity; - quality assurance system;

Documents Regarding Tenderer’s Capabilities • • The contracting authority may request the tenderer to present or submit documents (only that are relevant to determined requirements), e. g. : A list of relevant goods sold, services provided, information regarding works performed; Information regarding personnel involved; A description of the measures to ensure the quality; A statement regarding which parts of the contract the tenderer plans to give to subcontractors. No special requirements foreign tenderers are stated.

Securities • The contracting authority may request a tender security from tenderers. • The competition regulation shall specify what types of tender security are acceptable. • The contracting authority may request to provide in a contract a security for a contract (obligation).

Forms of Participation Tenderer – a person or group of persons who have submitted a tender. *** Tenderers may join together in groups irrespective of their type of commercial activity and submit a joint tender.

Submitting Variants • If the contract award criteria is the lowest price, the tenderer may submit tender variants unless provided contrary in the competition regulation. • If the contract award criteria is the most economically advantageous tender, the tenderer may submit tender variants only if so provided in the competition regulation.

Form of Submitting the Tender A tenderer shall ensure that the information contained in the tender is not accessible until the moment of opening of the tender. *** The contracting authority states in competition regulations requirements with respect to documentation and submission of tenders (usually – sewn together, in closed envelope(s)).

Process of the Open Competition (1) • • • Tender notification Providing of additional information Submission of tenders Opening of tenders Selection of tenderers Checking the conformity of tenders with the description of technical specifications and other requirements specified by the regulations

Process of the Open Competition (2) • Evaluation of the tenders regarding requirements in accordance with the evaluation criteria • Taking a decision • Notification of a decision • Conclusion of contract

Contract award criteria The lowest price The most economically advantageous tender Price quotation Conjoint design and works competition Open or restricted competition Negotiated procedure

The most economically advantageous tender Service contract quality; experience of tenderer; unit costs of one product; price ( 40%) and other criteria Works contract quality; experience of tenderer; unit costs after completion of building; price and other criteria Supply contract price; delivery date; running costs; costeffectiveness; quality; aesthetic and functional characteristics; technical characteristics; after-sales service and costs; technical assistance

Procurement Monitoring Bureau • Monitoring procurement procedures and supervision • Colleting and analyzing statistical information • Organizing training for contracting authorities and economic operators • Reviewing complaints • Prohibition the entering into contracts until the rectifying of violations and requesting the termination of the procurement procedure • International co-operation in the area of public procurement • Participation in publishing procurement notices

Examining Complaints • Procurement Monitoring Bureau forms a commission • Commission consisting of not less than three members • Members may not be persons who have previously provided consultations or who have an interest in the actual procurement

Types of Complaints • Complaint relating to the tenderer documentation – it can be submitted not later than 6 working days before the final date for the submission of tenders. • Complaint relating to the decision made by the contracting authority – it can be submitted only before the contract is signed.

Projects planed for the near future Northern crossing of river Daugava in Riga