1. February 10, 2005 Standard Contract Documents What are they? How to use them? Finnish Institute of Public Management Liisa Lehtomäki Short term expert Senior Consultant

2. February 10, 2005 Purchasing process A. B. C. D. E. F. G. H. I. J. K. L. M. N. 1.VISION The principles and goals of the organisation and its PP sector 2. Steering and monitoring 3. Development A.Market analysis B.Planning of the purchase C.Choosing the right method for the purchase D.Drafting the Invitation to tender E.Planning the award criteria F.Sending procurement notice and / or invitation to tender G.Receival of the tenders H.Qualification of the tenderer, tender form and the contents of the tender I.Evaluating the tenders J.Decision making K.Informing L.Remedies M.Contract and/or order N.Monitoring the contract and delivery 5. Document management 4. Purchase process 5.

3. February 10, 2005 How to make a good set of tender/contract documents?  Keep in mind  The main principles:  Non-discrimination, equal treatment, trancparency, proportionality  The scope of the procurement  The technical requirements  The qualification and evaluation criteria  Needs of the users

4. February 10, 2005 Tender/contract documents Invitation to tender and Instructions for tenderers Specific conditions of contract Annex 2 Technical specifications, service description or works annexes Annex 3 Tender sheet, Qualification and evaluation criteria Annexes 4 and 5 General conditions of contract or a contract draft Annex 1

5. February 10, 2005 Documents prepared Document Type ServicesWorks IT Guideline procurement process Model for invitation to tender Contract documents ST and GT Contract SGT and GT Fidic General models for all areas done Supplies/ Goods

6. February 10, 2005 Standard contract documents  General Conditions of Contract for Goods  Specific Conditions of Contract for Goods  General Terms and Conditions of Contract for Services  Guidelines on Public Procurement Procedure (works)

7. February 10, 2005 Standard contract documents  General Terms and Conditions of Information Technology Public Procurement Contract  Specific Conditions of Contract for Information Technology Public Procurement Contract on seven different alternatives  Consulting Services  Equipment and Software  Maintenance Services  Facilities Services Management  Procurement of Equipment  Standard Software  Customised Application Software

8. February 10, 2005 How to use?  They form a standard basis for all the procurement and competition processes  They should not be altered  If there is a need for changes, they should be introduced by defining the needed change in the specific conditions of contract

9. February 10, 2005 Benefits  All procurements are based on same standardised conditions of contract  Concepts, definitions and contents are clear to both sides  Need for changes is minimised  Negotiations concentrate on main issues  Knowledge is widened on both sides  There are time savings and cost savings on both sides  Preparation time is shortened

10. February 10, 2005 Benefits  Better value for money for contracting authorities when  processes are standardised  time shedules are optimised  number of economic operators are optimised  number of procurement competitions are optimised gathering larger volumes to each competition  benefits of volumes are better achieved  overlapping and unneeded/excessive work is minimised

11. February 10, 2005 Organization and steering Steering level Agreement level Ordering level Vision, Procurment strategy, steering, guidelines B Frame agreements Orders Recalls Stra- tegy Order Guide- lines A Centralized investment procurements Contract C Co

12. February 10, 2005 Product categories for Procurement strategy Mass products C Large volume Poor availability X Volume products B Strategic products A Bottleneck products D According to P. Kraljic Area for Framework agreements

13. February 10, 2005 Next step needed  Introducing the documents to  contracting authorities  economic operators or organisations reprensenting them and acting as their supervisors  Negotiations between all stakeholders  Mutual acceptance as a common basis for public procurement contracts in Lithuania