BASIC PRAG TRAINING PROCUREMENT UNIT May 2019 Trainer

BASIC PRAG TRAINING PROCUREMENT UNIT May 2019 Trainer Bengi SARISALTIKOĞLU

AGENDA LEGAL FRAMEWORK MANAGEMENT MODES BASIC PROCUREMENT PRINCIPLES TYPES OF CONTRACT PROCUREMENT PROCEDURES PROCUREMENT PLANNING (TIME-SCHEDULE) PUBLICATION OF TENDERS PREPARATION OF TENDER DOCUMENTS (WORKSSERVICES– SUPPLIES) OPENING of TENDERS KEY ISSUES TENDER EVALUATION AND CONTRACT AWARD

TRAINING OBJECTIVES To provide basic appreciation of: basic PRAG procurement rules the various modes of procurement management which contract type to apply which procurement procedure to apply time planning of procurement procedures publication of tenders basic structure of tender dossiers principles of tender evaluation and contract award

WHAT IS “PRAG” ? “the Practical Guide to Contract Procedures for EU External Actions” Latest update published in August 2018 Consists of: the Guide itself separate Annexes (templates) for procurement of Works / Services / Supplies / Grants

PRAG – LEGAL FRAMEWORK PRAG defines the contracting procedures applying to all EU external aid contracts financed from the EU general budget (Budget) and the 11th European Development Fund (EDF) PRAG incorporates all legal requirements of EU Financial Regulations and relevant basic acts. PRAG incorporates the relevant provisions of the legal texts ruling the Budget PRAG provides all users with all the information necessary to manage procurement from the very first steps to the award of contracts. PRAG defines the procedures to be used for all “Management Modes”

MANAGEMENT MODES There are three different management modes: direct management, indirect management, shared management. The choice of management mode is an essential element of the financing decision and it is reflected in the corresponding documents.

DIRECT MANAGEMENT Indirect management: the European Commission (or the EU executive agencies) is the contracting authority and takes decisions on behalf and for the account of the partner countries. INDIRECT MANAGEMENT Under indirect management the European Commission entrusts budget implementation to: - third countries - international organizations - bodies set up under the Treaty on the Functioning of the European Union and the Euratom Treaty; - development agencies of EU Member States, or of third countries; - public law bodies, including Member States organizations.

INDIRECT MANAGEMENT WITH EX ANTE CONTROLS Decisions are taken by the partner country, acting as contracting authority, in line with the requirements set out in this practical guide and subject to the prior approval of the European Commission. The contracts are signed by the contracting authority of the partner country and endorsed by the European Commission. INDIRECT MANAGEMENT WITH EX POST CONTROLS Subject to the positive outcome of a prior ex ante pillar assessment the European Commission may decide to rely on the rules and procedures of the third country entities' and to limit its control to ex post controls.

SHARED MANAGEMENT This mode is rarely used in the implementation of external actions, but there are a few cases such as joint operational programmes on cross-border cooperation implemented by a joint managing authority (for instance under the European Neighborhood Instrument (ENI) or the Instrument for Preaccession Assistance (IPA II).

PARTIES INVOLVED EUD ( Ex-ante approval & Observer) CA (Contracting Authority & Employer & Final Beneficiary) Ministries (Operational Structures) – some are CAs End Recepient(s) Contractor(s)

GENERAL RESPONSIBILITIES OF THE CONTRACTING AUTHORITY submit procurement notices and award notices to the EUD for publication (except PIN) submit tender dossiers to the EUD for approval Following approval, the CA is responsible for issuing invitations to tender, receiving tenders, chairing tender Evaluation Committees The CA submits the Tender Evaluation Report to the EUD for approval of the award decision The CA issues the Award Notification to the successful tenderer Following receipt and approval of the required proofs, the CA issues the Contract Award proposal to the EUD for endorsement Following the EUD’s endorsement, the CA signs and awards the Contract

BASIC PROCUREMENT PRINCIPLES Requesting information only once As provided for by Article 128 FR, information already available at European Union institutions, the management authorities and other bodies and entities implementing the European Union budget, must be used to the extent possible to avoid asking persons and entities receiving European Union funds for the same information more than once. Non-retroactivity Contracts take effect from the date of signature of the last signatory. All contracts must show the true dates on which the contracting parties signed them. Awarding principles All contract awards must respect the principles of transparency, proportionality, equal treatment and non-discrimination

RECORD KEEPING Unsuccessful proposals have to be kept for 3 years from the submission deadline of the call unsuccessful tenders have to be kept for 5 years from the submission deadline of the tender. Contractual and financial documents have to be kept for a minimum of 7 years from payment of the balance and up to the prescription date of any dispute about the law governing the contract. During and after this period, the contracting authority will treat personal data in conformity with its privacy policy. Financial guarantees (originals) must be kept in a safe place where they are protected against the risk of loss or theft up to the end of their validity period or the end of the contractual obligations.

TYPES OF CONTRACT WORKS CONTRACTS The outcome of building or civil engineering works that fulfil an economic or technical function. Works contracts cover either the execution, or both the execution and design, of works. SERVICES CONTRACTS The provision of external know-how, studies or technical assistance, provision of services to supervise the construction of a works contract to support EU cooperation policy. SUPPLIES CONTRACTS Covers the purchase, leasing, rental or hire purchase of products May also include incidental “works” for installation of the supplies and “services” for training etc.

TYPES OF SERVICE CONTRACT Global Price A lump sum contract where specified output(s) is/are set out, in the form of clearly defined deliverables like a report or drawings. Fee-based Where the output is unpredictable or specified output is impossible to quantify in advance, fee-based contracts are more appropriate, as it is economically more advantageous to pay the services on the basis of time actually worked. Fee-based contracts may also include activities paid on the basis of lump sums.

Which procurement procedure to apply?

PROCUREMENT PROCEDURES “INTERNATIONAL OPEN” – Works 5,000,000 and Supplies 300,000 The tender is given maximum publicity by publication of a Procurement Notice in the Official Journal of the European Union, the EuropeAid website and any other appropriate media. All interested economic operators may submit a tender. Any natural or legal person wishing to participate may request the tender dossier (possible payment required). Submitted tenders are examined and evaluated in accordance with the selection criteria specified in the Procurement Notice and Tender Documents. No negotiation is allowed

PROCUREMENT PROCEDURES “RESTRICTED PROCEDURE” – Services 300,000 (exceptionally – Prequalification for Works tenders) Two stages: STAGE 1 – SHORT-LISTING OF APPLICANTS The tender is given maximum publicity by publication of a Contract Notice in the Official Journal of the European Union, the EuropeAid website and any other appropriate media. The Contract Notice must define clear and unambiguous financial and technical selection criteria. Evaluation Committee establishes a “short-list” of qualified applicants (minimum 4 – maximum 8). List of shortlisted applicants published on the Europe Aid website.

PROCUREMENT PROCEDURES “RESTRICTED PROCEDURE” – Services 300,000 (exceptionally – Prequalification for Works tenders) STAGE 2 – TENDER Tender dossier issued to Short-listed applicants. Tenders must be submitted by the same service provider or consortium which was short-listed. Submitted tenders are evaluated in accordance with the criteria identified in the Tender Dossier

PROCUREMENT PROCEDURES “LOCAL OPEN PROCEDURE” – Works ( 300,000 to 5,000,000) and Supplies ( 100,000 to 300,000) the tender is given local publicity by publication of a Contract Notice in the Official Journal of Beneficiary country and the EuropeAid website. same as for International Open Tenders

PROCUREMENT PROCEDURES “SIMPLIFIED PROCEDURE” Works ( 20,000 to to 300,000), Supplies ( 20,000 100,000), Services (to 300,000) No publicity is required. The Contracting Authority draws up a list of at least three contractors / suppliers / consultants. Candidates are sent a letter of invitation to tender and the tender dossier, including selection and award criteria. A minimum of one qualifying offer is required. If the procedure fails following two successive attempts, the CA may conclude aprior contract by negotiation (subject to EC approval). Other procedures are as Open per International and Local procurement. Under the simplified procedure, the contracting authority invites at least three candidates of its choice to submit tenders. The evaluation (including the use of an evaluation committee) and the the award of the contract follow rules of the open procedure.

SINGLE TENDER (up-to EUR 20.000) The tenders of 2.500 and less can be awarded on the basis on an invoice, without prior acceptance. For the tenders higher than 2.500 and up-to 20.000 a single tender procedure must apply with providing a format of negotiation report. There are two possible scenarios to be applied with: 1. If one tenderer invited: The tender should be carried out under the template for Negotiation report for single tenders, annex A10b. The assessment procedure serves only for confirming the administrative and technical compliance of the tender to the requirements, set out in the Instruction to tenderers. Eligibility rules and selection criteria must be duly complied with. Documentary evidence for exclusion criteria and selection criteria should be submitted.

2. If more tenderers invited: The respective PRAG tender dossier for Competitive negotiated procedure simplified tender dossier – b8o is to be used. The Contracting Authority has to evaluate all tenders according to the “best value for money” award criterion, by establishing best pricequality ratio, and weighing technical quality against price on an 80/20 basis. This evaluation must also be documented in the Negotiation Report for single tenders, annex A10b.

PROCUREMENT PLANNING SEQUENCE and TIMING Procurement procedures usually take longer than planned. Minimum periods defined in PRAG must be respected. No short-cuts permitted. Build-in “safety margins” to cover the following: Possibility of having to issue corrigendum to Tender Dossiers. Long evaluation due to excessive requests for clarification. Holiday periods (summer / religious holidays etc.) Delays in Ex-ante control. The time schedules should be regarded as an absolute minimum

PROCUREMENT PLANNING SEQUENCE and TIMING (Works Contract with a value of EUR 5 000 000 or more)

PROCUREMENT PLANNING SEQUENCE and TIMING (Service Contract with a value of EUR 300 000 or more)

PROCUREMENT PLANNING SEQUENCE and TIMING (Supply Contract with a value of EUR 300 000 or more)

WORKS CONTRACT PRIOR INFORMATION NOTICE Construction of Çerkezköy - Kapıkule Section of Halkalı - Kapıkule Railway Line Location - Turkey 1. Publication reference EuropeAid/139362/IH/WKS/TR 2. Procedure Open 3. Programme title Multi-annual country Action Programme for Turkey on Transport 2014/031-877 4. Financing IPA budget item 22.02 03 02 of the General Budget of the EU and National Contribution. 5. Contracting Authority Ministry of Transport, Maritime Affairs and Communications, Directorate General for Foreign Relations and European Union Affairs, Department for European Union Investments, Ankara, Republic of Turkey 6. Description of the contract The contract will cover the construction of a new railway line consists of double track line with a maximum operational 7. Indicative titles of lots speed ofnumber 200 and Km/h complete with One lot only telecommunication, signaling and electrification 8. Scheduled publication date of the contract systems between Çerkezköy notice and Kapıkule Section of Halkalı - Kapıkule st 1 quarter of 2018 Railway 9. Line Project. The existing electrified single line will Other information N/A be realigned at the stations of Çerkezköy and Edirne in order to connect to the new line. 15 January 2016 d1 priorinfo en.do c Page 1 of 2

10. Legal basis1 Regulation (EU) N 236/2014 of the European Parliament and of the Council of 11 March 2014 laying down common rules and procedures for the implementation of the Union's instruments for financing external action and Regulation (EU) No 231/2014 of the European Parliament and of the Council of 11 March 2014 establishing an Instrument for Pre-accession Assistance (IPA II) (OJ L 77, p.11-26). The conclusion of the tender and the award of any contract is subject to the availability of funds and the adoption by the European Commission of the relevant financing decision. The contracting authority reserves the right to cancel the tendering procedure at any time. Notes: There must be an interval of at least 30 calendar days between the publication of this prior information notice and the publication of the corresponding contract notice. No applications or requests for further information should be sent at this stage. 1 Please state any specificity that might have an impact on rules on participation (such as geographic or thematic or long/short term). 15 January 2016 d1 priorinfo en.do c Page 2 of 2

PROCUREMENT PUBLICATION CONTRACT NOTICE Required for all Procedures (except simplified / FWC / single tender) Provides detailed information for interested parties to submit a tender Minimum period of 30 days from publication of ontract Forecast Main information to be included Type of Procedure (Open / Restricted) Programme (IPA) Financing Contracting Authority (CFCU) Description of Contract (Maximum 10 lines)

BASIC PROCUREMENT PRINCIPLES Applicable to all procurement procedures ELIGIBILITY CRITERIA The Rule of Nationality Participation is open on equal termsoftoand all natural persons who are nationals legal personsState established in: a Member of the European Union a Member State of the European Economic Area; (EU Member States plus Iceland, Liechtenstein and Norway) an official candidate country or potential candidate that is a beneficiary of the Instrument for Pre-Accession Assistance a country that is directly beneficiary of the aid implemented corresponding basic act through the For the purposes of verifying compliance with the nationality rule, the tender dossier requires tenderers to state the country of which they are nationals or they are established by that presenting documents required under country'sthe law. Experts: unlessand/or otherwisethe foreseen in the basic act Financing Agreements, engaged by eligible tenderers mayexperts be of any nationality.

BASIC PROCUREMENT PRINCIPLES ELIGIBILITY CRITERIA (continued) RULES OF ORIGIN All goods (supplies and materials) purchased under a contract financed under an EU instrument must originate from the EU or from eligible country The term “origin” is defined in the relevant EU legislation on rules of origin for custom purposes. Where there is only one country of production, the origin of the finished product is easily established. In cases where more than one country is involved in the production of goods, the country of origin is regarded as the country in which the goods have undergone their last economically justified substantial transformation.

BASIC PROCUREMENT PRINCIPLES ELIGIBILITY CRITERIA (continued) RULES OF ORIGIN (continued) Rules of origin do not apply to; Equipment used by a works contractor for executing the works Machinery used for testing and installing the supplied goods Proof of origin In cases where the provision of a Certificate of Origin is not possible (before presenting the commercial invoice), the tenderer can submit its own declaration Original Certificates of Origin must be submitted before provisional acceptance

BASIC PROCUREMENT PRINCIPLES ELIGIBILITY CRITERIA (continued) GROUNDS FOR EXCLUSION Tenderers or applicants will be excluded from participation in procurement procedures if: they are bankrupt or being wound up they have been convicted of an offence concerning their professional conduct by a judgement against which no appeal is possible they have been guilty of serious professional misconduct proven by any means which the Contracting Authority can justify they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes they have been the subject of a judgement (against which no appeal is possible) for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the EU's financial interests Candidates, tenderers and applicants must sign a declaration that they do not fall into any of the above categories

BASIC PROCUREMENT PRINCIPLES Applicable to all procurement procedures ELIGIBILITY CRITERIA (continued) ADMINISTRATIVE & FINANCIAL PENALTIES If any candidates, tenderers, applicants and contractors have made false declarations, or have made substantial errors or committed irregularities and fraud, then: they may be excluded from all contracts and grants financed by the EU for a maximum of five years the period may be extended to 10 years in the event of a repeated offence within five years. they may also be subject to financial penalties representing 2% to 10% of the total estimated contract value

PROCUREMENT PUBLICATION CONTRACT NOTICE (continued) Eligibility and rules of origin Number of Tenders (tenderers may only submit ONE tender) Tender Guarantee (1% - 2% of contract budget – optional for Local Open procedure) Performance Guarantee required from successful tenderer (normally 10%) Tender validity (90 days after tender submission deadline) Selection Criteria (same as defined in Instructions to Tenderers) Award Criteria (normally “Price”) Details of how to obtain Tender Dossier Tender submission deadline Language of procedure

TENDER DOCUMENTS - WORKS A works tender dossier consists of 5 Volumes Volume 1 Section 1: letter of invitation to tenderers instructions to tenderers Section 2: tender form Section 3: tender guarrantee Section 4: technical offer questionnaire technical offer form bank account notification form legal entity file Section 5: aministrative compliance grid evaluation grid

Volume 2 draft contract ( general conditions, special conditions) pre-financing guarantee performance guarantee retention guarantee tax and customs arrangements Volume 3 technical specifications Volume 4 financial interpretative note financial offer lump sum contracts financial offer unit price contracts Volume 5 design drawings tender opening checklist, tender opening report, evaluation report,

TENDER DOCUMENTS - WORKS FIDIC Red or Yellow Book ? RED BOOK (Building & Engineering Works designed by Employer) YELLOW BOOK (Plant & Design-Build - for electrical and mechanical and for building and engineering works designed by the contractor) RED BOOK YELLOW BOOK Design of the Works Well defined – designed by the Employer Designed by the Contractor based on Employer’s Requirements Time schedule Longer design period Shorter tender submission period Shorter design period (concept only) Longer tender submission period Risks Employer’s design risk – lower tender prices Contractor’s design risk – higher tender prices Disputes Reduced potential Increased potential due to unforeseeable obstructions

TENDER DOCUMENTS - SERVICES Standart Tender Dossier Draft contract: Budget Letter of invitation to tender Instructions to tenderers Draft contract: Special conditions Draft contract: General conditions (Annex I) Draft contract: Terms of reference Fee-based (Annex II) Draft contract: Terms of reference Global (Annex II) Draft contract: Organisation & methodology (Annex III) Draft contract: List and CVs of key experts (Annex IV) Budget for a global-price contract Budget breakdown for a fee-based contract Draft contract: Forms and other relevant documents Bank account notification form, Financial guarantee template Legal entity file, Expenditure verification Administrative compliance grid, Evaluation grid Tender submission form

TENDER DOCUMENTS - SUPPLIES Substantially the same as for WORKS, except Rules of Origin – Tenderer to submit statement that all supplies comply with rules of origin Definition of Lots Tenderers may submit offer for any or all Lots Discounts can be offered in case of being awarded more than one Lot Award Decision Financial comparison should take into account best overall price, including discounts

TENDER DOCUMENTS - SUPPLIES Letter of invitation to tender Instructions to tenderers Draft contract Draft contract : special conditions – general conditions Technical specifications (Annex II) & technical offer (Annex III) Financial offer (Annex IV) Performance guarantee (Annex V) Pre-financing guarantee (Annex V) Administrative compliance grid Evaluation grid Tender submission form Tax and customs arrangements (Annex V) Tender guarantee

TENDER DOCUMENTS – SUPPLIES (continued) Bank account notification form Legal entity file Tender opening checklist Tender opening report Evaluation report Notification letter to tenderers Letter to unsuccessful tenderers Contract award notice for international calls Contract award notice for other procedures Contractor assessment form Provisional and final acceptance Addendum to contract Budget modification

OPENING OF TENDERS Works and Supplies Tenders opened in public session Chairperson announces: Tenderers' names Tender prices Any discount offered Notifications of alteration and withdrawal Presence of the requisite tender guarantee (if required) Minutes of Tender Opening Meeting to be issued to all renderers Services Tenders opened in private session

KEY ISSUES SELECTION CRITERIA Selection criteria must be defined in all Contract Notices They cannot be subsequently amended - unless a corrigendum is issued (delays) Criteria must be clear and non-discriminatory criteria Criteria should be designed to ensure that successful candidates have adequate financial, economic, technical and professional capacity to implement the requirements of the contract Economic and financial criteria should be limited to the previous 3 financial years Professional and technical criteria should be limited to: Service and supply contracts – projects completed in the past three years Works contracts - projects completed in the past five year

SELECTION CRITERIA (continued) Criteria must be specific – unambiguous “PASS/FAIL” It must be possible to verify compliance with the criteria (documentary evidence) For Joint Ventures / Consortia Services and Supplies – criteria apply to the combined capacity of all Partners Works capacity may be split between Partners, but the Lead Partner should be capable of satisfying at least 50% (for example) A Joint Venture Agreement must be submitted committing all Partners to their respective contribution Documentary Evidence Services – evidence to be provided with tender Supplies – only the successful tenderer to provide evidence before Award of Contract Works – in accordance with the specific Instructions to Tenderers

KEY ISSUES CANCELLATION Before Contract signature, the CA may cancel the procurement procedure (Prior approval) Justifiable circumstances no qualitatively or financially worthwhile or no valid response at all fundamentally altered the economic or technical data of the project exceptional circumstances or force majeure all technically compliant tenders exceed the available financial resources irregularities the award is not in compliance with sound financial management all tenderers must be notified in writing of the reasons for cancellation cancellation notice must be published (standard format) launch a new tender procedure; or open negotiations with one or more tenderers that participated in the original tender procedure and which complied with the selection criteria (the original terms of the contract cannot be altered or not to award the contract

KEY ISSUES ETHICS CLAUSE Extract from PRAG – “Any attempt by a candidate, applicant or tenderer to obtain confidential information, enter into unlawful agreements with competitors or influence the committee or the Contracting Authority during the process of examining, clarifying, evaluating and comparing tenders and applications will lead to the rejection of its candidacy, proposal or tender.” Specific issues All tenderers must formally declare that they are not affected by any potential conflict of interest Civil servants or other officials of the public administration of the beneficiary country must not be engaged as experts, unless the prior approval of the European Commission has been obtained. a contractor and its staff or any other company with which the contractor is linked may not supply other services, carry out works or supply equipment for the project. The contractor must at all time act impartially and as a faithful adviser in accordance with the code of conduct of its profession

KEY ISSUES ETHICS CLAUSE Specific issues (continued) The contractor must at all time act impartially and as a faithful adviser in accordance with the code of conduct of its profession For the duration of the contract, the contractor and its staff must respect human rights and undertake not to offend the political, cultural and religious norms of the beneficiary state The contractor is must maintain professional secrecy entire duration of the contract and afterfor itsthe completion Remedial action The Commission reserves the right to suspend or cancel project financing if corrupt practices of any kind are discovered and if the Contracting Authority fails to take all appropriate measures to remedy the situation Failure to comply with one or more of the ethics clauses may result in the exclusion of the tenderer or contractor from other EU contracts and in penalties. The individual or company/entity must be informed of the fact in writing Where fraud, corruption or other irregularities concerning EU funds is suspected, the anti fraud(i.e. office of the European Commission OLAF) should be duly informed.

EVALUATION OF TENDERS Composition of Evaluation Committee Appointed by the Contracting Authority Chairperson (non-voting) Secretary (non-voting) Odd number of voting members (minimum of three for all procedures except for works tenders above 5,000,000 which requires a minimum of five) Possible authorised “observers” (non-voting) Voting members must have a reasonable command of the language of the tender Voting members must possess the technical and administrative capacities necessary to give an informed opinion on the tenders

EVALUATION OF TENDERS Confidentiality & Impartiality All Committee members and observers to sign Declaration of Confidentiality & Impartiality Apart from the tender opening session (Works and Supplies), all meetings of the Evaluation Committee are held in private Tender documents not to leave the Committee meeting room No informal communication between Committee members and renderers or their representatives

EVALUATION OF TENDERS First stage – Administrative compliance Ensure that all the documentation defined in the Instructions to Tenderers has been submitted Rules of origin / nationality have been respected Language of documents Documents correctly signed (if applicable) JV / Consortia Agreements submitted (if applicable) Subcontracting statement acceptable Only administratively compliant tenders should be considered for the second evaluation stage

EVALUATION OF TENDERS Second stage – Financial / Technical compliance Determine whether tenderers satisfy the selection criteria defined in the Instructions to Tenderers Financial Annual turnover Audited Financial Statements (Works) access to credit lines Previous relevant experience in contracts of a similar size / nature Documentary evidence Key Experts Works – proposed key personnel satisfy minimum experience requirements

EVALUATION OF TENDERS Second stage – Financial / Technical compliance (continued) Technical Compliance – Works and Supplies (“yes/no”) Compliance with technical specifications Ancillary services (if applicable) Nationality of sub-contractors Other technical requirements Technical Compliance – Services (points according to Evaluation Grid) Quality of Organisation and Methodology Key Experts (proven skills / general experience / specific experience) Only offers scoring more than 80% should proceed to the Financial Evaluation stage

EVALUATION OF TENDERS Third stage – Financial Offers Works Mathematical correction of Bill of Quantities Query any apparent “weighting” or “loading” of rates Services Mathematical correction of Budget Breakdown (fee-based contracts) Total Contract Value is less than the Contract Budget Supplies Mathematical correction of Financial Offer (if applicable) spare parts and consumables have been included)

EVALUATION OF TENDERS Requests for Clarification At any stage, the Committee may ask tenderers to clarify details of their tenders Requests should be issued in writing with a (reasonable) deadline for responses Tenderers are not allowed to introduce any alterations to the substance of their tenders Examples of clarification requests Minor documents in the wrong language Minor documents missing (Services) Full evidence regarding Key Experts CVs not included (Services) Further details of Key Experts’ specific experience (Works) inconsistent unit rates – breakdown required (Supplies) additional technical properties of offered equipment

EVALUATION OF TENDERS Conclusion of Evaluation Each Committee member should prepare an independent Evaluation Grid The Committee should discuss any major discrepancies in assessment and adjust as necessary (guidance from the Chairperson) The Committee should reach a unanimous decision Evaluation Report (Report to be prepared in strict accordance with PRAG templates) Summary of clarification requests and responses (administrative issues) Reasons for rejecting any tender for administrative non-compliance Summary of clarification requests and responses (technical issues) Reasons for rejecting any tender for technical non-compliance Summary of compliant tenders and financial offers Recommendation of Contract Award

CONTRACT AWARD PROCEDURE Following the ex-ante endorsement of the Evaluation Report: CA notifies successful tenderer of its intention to award the Contract Tenderer to provide necessary proofs defined in Instructions to Tenderers Proof documents examined and approved Prepare Contract Dossier Standard Explanatory Note All tender evaluation documents Three originals of proposed Contract EC Delegation endorses Contract Dossier and returns to CA Contract signed by CA and sent to successful tenderer Tenderer to sign and return within 30 days

CONTRACT AWARD PROCEDURE SERVICES Basically the same as for Works & Supplies, except: Following the ex-ante endorsement of the Evaluation Report: The successful tenderer is informed of the CA s intention to award the Contract The tenderer must then provide: The necessary documentary proofs, and Confirmation that Key Experts are available (if not, then the tenderer must propose equivalent alternatives) If the tenderer fails to satisfy the above requirements, then the Contract may be awarded to the second-best tenderer . or the tender may be cancelled

OTHER ISSUES VISIBILITY All contractors for services, supplies, works or grant beneficiaries must take the necessary measures to ensure the visibility of the EU financing or co-financing Visibility rules are defined on the EuropeAid website at: The rules relate to: written and visual identity of the EU (e.g. flag, key message, definitions) requirements and guidelines on communication activities and tools (e.g. press releases, websites, publications, films) the obligation to submit a communication plan for the approval of the Contracting Authority

OTHER ISSUES The term 'conflict of interest' is used with different meanings in different contexts. Four cases can be distinguished: (1) conflict of interest for the contracting authority (2) grave professional misconduct (3) involvement in drafting tender specifications and distortion of competition (4) professional conflicting interests. ORIGIN OF GOODS In principle, goods must originate from an eligible country. Subject to derogation (granted on a case by case basis), all goods to be delivered under a supply contract fall under the rules of origin, as do materials, goods and components to be incorporated or to form part of the permanent works under a works contract.

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