1. 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 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 PRAG Procurement Supply Contracts – version November 2010 Advance module – Day III RCP-CIC By: Berk Babila, Managing Director - Ecorys in Turkey berk.babila@ecorys.com.tr Ankara, 31 March 2011

2. 2 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Content 1.The Evaluation Committee 2.Stages in the Evaluation Process 3.Award of Contract 4.Managing the Contract 5.Contract Modifications

3. 3 PRAG Supply Contracts Training 29-31 March 2011 The Evaluation Committee Composition, impartiality and confidentiality, responsibilities, timetable and period of validity minimum 3 for supply tenders Have equal voting rights Evaluator Secretary Chairperson must sign a Declaration of Impartiality & Confidentiality (including non-voting members) should attend all meetings whereby any absence has to be recorded and explained in the evaluation report are appointed and nominated on a personal basis by the Contracting Authority keeping minutes, registering attendance and drafting the Evaluation Report to ensure respect for PRAG procedures, impartiality and transparency of the evaluation Non-voting MembersVoting Members possess the technical and administrative capacities necessary to give an informed opinion on the tenders

4. 4 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders Stages in the evaluation process Receipt and registration of tenders: date and time of receipt must be recorded Preparatory meeting Tender Opening Session Evaluation of the technical offers

5. 5 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (2) Receipt and registration of tenders

6. 6 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (3) Preparatory meeting First meeting of the evaluation committee, to be held prior to the tender opening session TD to be distributed well in advance to the members of the Evaluation Committee Chairperson presents the purpose of the tender, procedures to be followed (including the Evaluation Grid and Selection and Award Criteria)

7. 7 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (4) Tender opening session All the offers received must be opened at the same time in a public session: shortly after the deadline for submission, as communicated in the PN and TD. Formal, public process – however participation is restricted to representatives of the companies which are tendering for the contract Aim is to check that the tenders are complete, that the requisite tender guarantee has been provided and that the tenders are generally in order

8. 8 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (5) Tender opening session (2) The following will be announced in the tender opening session –The registration no. on the envelope –The name of the tenderer –The date and time of receipt –The condition of the outer envelope –The presence of the tender form for a supply contract –The total financial offer and any discounts applicable –The presence of a tender guarantee (if required) –Overall decision regarding suitability of tenders for further evaluation Minutes of this meeting is available to the tenderers on request

9. 9 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (6) Admistrative Compliance

10. 10 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (7) Admistrative Compliance (2)

11. 11 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (8) Evaluating technical offers Obligatory use of the administrative grid and the evaluation grid published in the tender dossier The results are recorded in a YES/NO grid for all elements specified in the tender dossier No scoring method should be used If the tender is divided into lots, the evaluation should be carried out lot-by-lot It may be necessary to communicate in writing with tenderers whose submissions require clarification, offering them the possibility to respond in writing within a reasonable time limit

12. 12 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (9) Evaluating technical offers (2)

13. 13 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (10) Evaluating technical offers (3)

14. 14 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Exercise Evaluation of tenders Evaluation

15. 15 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (9) Other stages Evaluation of financial offers –Check for any arithmetical errors of the technically compliant tenders –The financial evaluation will have to identify the best financial offer (the cheapest technically compliant) for each lot, taking into consideration eventual discounts Choice of Contractor –Award criteria: the sole award criterion is the PRICE; after determining the “administratively and technically compliant” tenders Conclusions of the Evaluation Committee –May recommend to award the contract or to cancel the tender procedure

16. 16 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Evaluation of Tenders (10) Abnormally low tenders Before rejecting such tenders, the CA requests in writing details of the constituent elements of the tender which it considers relevant and verify those constituent elements After this the CA may, in particular, take into consideration explanations relating to: –the economics of the manufacturing process, of the provision of services or of the construction method; –the technical solutions chosen or the exceptionally favourable conditions available to the tenderer; –the originality of the tender The justification for accepting or rejecting an abnormally low offer must be recorded in the Evaluation Report

17. 17 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Exercise Evaluation of tenders Financial evaluation and award of contracts

18. 18 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Cancellation of procurement procedures After cancelling a tender procedure, the CA may decide to launch a new tender procedure to open negotiations with one or more tenderers who participated in the tender procedure and comply with the selection criteria, provided that the original terms of the contract have not been substantially altered not to award the contract In no event shall the Contracting Authority be liable for any damages whatsoever including, without limitation, damages for loss of profits, in any way connected with the cancellation of the tender

19. 19 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Contract Award Notification of award Inform the successful tenderer by the standard notification letter and ask for the documentary evidence to be submitted within 15 days Documentary proof SUB-ARTICLES OF PRAG 2.3.3 √ Prepare contract √ Sign and send contract (30 days) √ Publish Contract Award Notice √ Inform unsuccessful tenderers

20. 20 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Contract Award (2) Parts of the contract Contract Special Conditions General Conditions (Annex I) Technical Specifications (Annex II) including clarifications before the deadline for submission of tenders and minutes of information meeting/site visit Technical Offer (Annex III) including clarifications from the tenderer provided during tender evaluation Budget Breakdown – Financial Offer (Annex IV) Specified forms and other relevant documents (Annex V) Tax and Customs Arrangements (Annex VI)

21. 21 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Manage the contract Kick off meeting Once the contract has been signed the CA needs to ensure that the Supplier is proceeding on time and manufacturing/delivering in accordance with the contract, especially if other parts of the project rely on this The CA will have to manage any delays caused by any one of the procurements

22. 22 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Manage the contract (2) Provisional and Final Acceptance Before the provisional acceptance the inspection and testing takes place at the locations where the equipment is supplied, delivered, installed and put into operation. During the inspection and testing procedure, the quantities, the technical performances, the technical specifications and technical documentation is verified. After supply, delivery, installation, putting into operation, inspection, testing and training, proceed with the provisional acceptance. Finally proceed with the final acceptance upon the expiry date of the warranty period

23. 23 This project is co-financed by the European Union and the Republic of Turkey Manage the contract (3) Provisional and Final Acceptance Provisional: Items have been delivered, installed, tested and found compliant with the Technical Specifications of the supply contract. Final: The Supplier has remedied any defect or damage occurred during the warranty period, as specified in the contract

24. 24 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Modifying Contracts General principles Contract modifications must be formalised through an administrative order (not applicable to grants) or an addendum to the contract in accordance with the provisions of the General Conditions of the contract No modification to the contract may alter the award conditions prevailing at the time the contract was awarded A request for contract modifications should not automatically be accepted by the CA Contracts can only be modified within the execution period of the contract Where the modification of the contract extends activities already under way such cases are considered as negotiated procedures Implementation of activities and final payments to be completed before the expiry of the FA under which the initial contract was financed

25. 25 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Exercise Contract modification

26. 26 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 End of the training Closing Questions and Answers