This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 1 Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey Trainer: Aslı Gülgör Procurement of Contract Management Non Key Expert

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Supply Contracts 2

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Introduction Supply contracts cover –Purchase, –Lease, –Rental or hire purchase, –With or without option to buy, of products (incidentally, including sitting and installation)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Basic Rules Eligibility – the rule on nationality Participation in the procurement and grant procedures is open on equal terms to all natural and legal persons of the EU member states and the countries covered by the regulation under which the contract is financed

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Eligible Countries Member States of the European Community: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom Member States of the European Economic Area: Liechtenstein, Norway Candidate Countries: Croatia, Former Yugoslav Republic of Macedonia, Montenegro, Turkey Potential Candidate Countries: Albania, Bosnia and Herzegovina, Iceland, Kosovo under UNSCR nº 1244, Serbia, ENPI Countries: Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, Jordan, Lebanon, Libya, Moldova, Morocco, Palestinian Authority of the West Bank and Gaza Strip, Russian Federation, Syria, Tunisia, Ukraine Participation is also open to: Developing countries specified by the OECD DAC (thematic programmes) International organisations Beneficiary countries that have reciprocal access to External Aid A third country (with a derogation endorsed by the EC) Basic Rules

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Rule of Origin All supplies and equipment purchased must originate in the EU or in an eligible country as defined above in the nationality rules In its tender, a tenderer must state the origin of supplies

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Origin How to establish origin? Origin: Country where the goods have undergone their last, economically justified, substantial transformation Evidence: Certificate of Origin To be presented either: When bringing Equipment to the beneficiary country When the first invoice is presented (pre-financing) When Provisional Acceptance takes place (if not, breach of contract)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 8 Exceptions from Rule of Origin Decided on case-by-case basis by the EC before the procedure is launched ◦ May extend eligibility to natural and legal persons from a country not eligible ◦ May allow the purchase of goods and materials originating from a non-eligible country (Price will not be accepted as justification) Any derogation must be foreseen at PN stage

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Remember procedures.. The basic principle governing the award of contracts is competitive tendering. The purpose is two folds, to ensure the transparency of operations to obtain the desired quality supplies at the lowest price. There are several different procurement procedures, each allowing a different degree of competition.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Supply thresholds Thresholds based on maximum budget (including any co-financing) Supplies Equipment and Materials ≥ € International open tender procedure ≥ € but < € Local open tender procedure > € but < € Competitive negotiated procedure ≤ € Single tender

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Procedures applied regardless of thresholds Dynamic Purchasing System Competitive Dialogue Negotiated Procedure

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Single Tender ≤ € in exceptional and duly justified cases where the factual or legal circumstances defined in Articles 242, 244 and 246 of the Implementing Rules of the Financial Regulation are met one offer sufficient the identified provider must submit a brief technical proposal and a financial offer can be sent and received by fax the CA must prepare a report (Annex A10b) explaining the manner in which the participant(s) in the negotiations were identified and the price was established, and the grounds for the award decision

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Competitive Negotiated Procedure > € but < € CA invites candidates of its choice to submit tenders No publication of procurement notice/local advertisement Bidders are sent a Letter of Invitation to Tender accompanied by a Tender Dossier Potential bidders are given at least 30 days to submit their technical and financial offers in separate envelopes If following consultation of the tenderers, the CA receives only one tender that is administratively and technically valid, the contract may be awarded provided that the award criteria are met Award criterion: Price –cheapest compliant offer –The contract is awarded by conducting selection procedure (verification of the eligibility) and procurement procedure (comparison of tenders )

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 14 Local Open Tender  € but < € no publication of Contract Forecast required publication of Procurement Notice –standard local advert published only in the Beneficiary Country –the EC only publishes the references of such tender opportunities A local open tender procedure must provide other eligible suppliers/contractors with the same opportunities as local firms Deadline for Submission of Tenders –minimum of 30 days between the date of publication of the PN and the deadline for receipt of tenders Submission of tenders –Single envelope system Award criterion: price –cheapest compliant offer –The contract is awarded by conducting selection procedure

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY International Open Tender  € Publication of a Contract Forecast followed by a Procurement Notice –minimum of 30 days between the date of publication of the CF and PN Deadline for submission of tenders –minimum of 60 days after publication of PN Additional info –clarification meeting / site visit may be foreseen –clarification questions 21 days before deadline for submission of tenders –CA must reply at least 11 days before the deadline for submission of tenders Submission of tenders –Single envelope system Award criterion: price –cheapest compliant offer –The contract is awarded by conducting selection procedure

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY How to prepare a Technical Specification? 16

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Market Survey Market survey is one of the preliminary steps of the preparation of the technical specifications. The identified bodies need to be analyzed in order to verify whether they are eligible and whether they would have access and interest to participate in an EC-funded tender. Itemized unit price for each product in supply tender dossier must be clear. A budget must be estimated based on list-prices or official prices for the products. In case of special design of a supply detailed cost estimate analysis for the supply is provided

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications To give instructions and guidance to contractors at the tendering stage about the nature of the tender they will need to submit To serve as the contractor's mandate during project implementation TS becomes annex of the eventual contract awarded as a result of the tender Thorough preparation of the TS is crucial for the ultimate success of the project

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications Objectivity and Confidentiality Strict objectivity and confidentiality must be maintained during the preparation of TS –Each beneficiary’s representative (ERA) or technical specialist must sign a Declaration of Objectivity and Confidentiality –All information or documents must be held in confidence and used only for the purposes of preparing the TS and not disclosed to any third party –All contributions to preparing TS must be objective and fully respect the principles of fair competition and impartiality, do not favour any one product, manufacturer or service provider

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications Specifics Must afford equal access for tenderers and not have the effect of creating unjustified obstacles to competitive tendering Clear, non-discriminatory and in proportion to the budget allocated for the project Define the characteristics required of a product with regard to the purpose for which they are intended by the CA

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications Characteristics to be defined –the quality levels; –environmental performance (taking into consideration the latest developments on the matter); –design for all requirements (including accessibility for disabled people, environmental aspects in accordance with the latest developments on the matter); –the levels and procedures of conformity assessment, including environmental aspects; –fitness for use; –safety or dimensions, including, the sales name and user instructions, terminology, symbols, testing and test methods, packaging, marking and labelling (including environmental labelling, e.g. on energy consumption), production procedures and methods

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications TS should clearly describe –What is required? –How much of every article is required? –Minimum quality standards? –When and where the supplies to be delivered? –Installation, training and after-sales service? –Warranty requirements, etc. Ensure clarity and conciseness in drafting the TS Do not point to particular brands and types; avoid being too specific and therefore limiting competition However, where products cannot be described in a sufficiently clear manner, they may be named as long as they are followed by the words "or equivalent"

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY TS by LOTs At the tendering stage, supplies to be procured can be in one lot or divided into lots in a logical manner and in a systematic arrangement such that the supplies in each lot must exist in common sector in the market for a sound tendering Tenderers may submit an offer for only one lot, more than one lot or all lots. However tenderers must offer all the items under that lot. An offer submitted by the tenderer for a part of the lot is rejected For each lot, a separate technical specification is developed and a separate contract is concluded

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications General Requirements –maximum delivery period –warranty –after-sales service –maintenance and support (before and after provisional acceptance) –the need to provide all accessories necessary for proper operation –documentation –training –acceptance procedure –recommended consumables –delivery address –background information –equipment layout –spare parts

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications Documentation sufficiently open to admit equipment from different producers? Are there any certification requirements? If yes, can they hamper competition? Documentation coherent, understandable and sufficiently specific to produce tender? Market study included? Are any warranty conditions included? If yes, are they standard?

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Questions and answers 26