2. 11 /Module I.3/ Management of public procurement /Module I.3/ а. Procuring entity b. Evaluation committee & Rights and Duties c. Procurement Planning and Reporting

3. 22 Management of public procurement 1. Policy and coordination: State administrative body for budgetary issues - an unit responsible for procurement matters State administrative body for budgetary issues - an unit responsible for procurement matters (MoF, Procurement Policy Department) 2. Executive system: Procuring entity - Evaluation committee 3. Independent control: Executing, supplying private companies - Participants in bidding, CSOs M.I.3.a. Procuring entity

4. 33 Procuring entity - Purchaser A procuring entity shall organize procurement of goods, works and services financed by resources approved in a given year according to the procedures set forth in the law. Procuring entities which are responsible for procuring financed by State budget are defined by the law M.I.3.a. Procuring entity

5. 44 A procuring entity is responsible for planning and organizing procurement, awarding a contract, for executing and reporting contract management, and supervising an evaluation committee’s activities; An official who is responsible for representing a procuring entity is a general manager behalf of the state administrative body for budgetary issues who is responsible for supplying goods according to the contract. An official who represents a procuring entity may delegate his/her rights given with the law to a relevant official. Delegating his/her rights shall not be grounds for releasing her/him from them;

6. 5 For the purpose of promoting competition, the procuring entity may organize procurement of certain goods, works and services in packages; This decision shall be made by the state administrative body for budgetary issues, he or she shall appoint a procuring entity; A procuring entity must establish an evaluation committee when it is executing procurement of goods, works and services with cost estimates of more than the comparison thresholds; Majority of an evaluation committee shall be specialized in procurement fields;

7. 6 Working unit for assisting a procuring entity Ad hoc For organizing procurement activities For making professional conclusion and recommendations CHAIRMAN OF THE PROCURING ENTITY If GOODS, SERVICES are worth more than MNT 30 million, WORKS are worth more than MNT 50 million a procuring entity shall appoint an evaluation committee;If GOODS, SERVICES are worth more than MNT 30 million, WORKS are worth more than MNT 50 million a procuring entity shall appoint an evaluation committee; A procuring entity is fully responsible for procurement activities, or makes a decision on awarding a contract;A procuring entity is fully responsible for procurement activities, or makes a decision on awarding a contract; EVALUATION COMMITTEE M.I.3.b. Evaluation committee & Rights and Duties Duties, obligations and ethics of a procuring entity - evaluation committee

8. 7 TYPES OF DECISION PROCURING ENTITY EVALUATION COMMITTEE EVALUATION CONCLUSION /RECOMMENDATION ON AWARDING A CONTRACT / DECISION TO AWARD A CONTRACT WINNING BIDDER SIGNING A CONTRACT M.I.3.b. Evaluation committee & Rights and Duties

9. 8 Rights and duties of an evaluation committee (EC) Selection of methods for bidding /in case of direct contracting, the rationale for selection of method shall be notified to MoF/ Selection of methods for bidding /in case of direct contracting, the rationale for selection of method shall be notified to MoF/ Preparing bidding documents Preparing bidding documents Advertising or sending an invitation Advertising or sending an invitation Receiving and opening bids Receiving and opening bids Conducting evaluation and making conclusion for awarding a contract Conducting evaluation and making conclusion for awarding a contract M.I.3.b. Evaluation committee & Rights and Duties

10. 9 “47.4. In order to ensure the transparency of public procurement, the bid evaluation committee shall consist of minimum two members representing the professional associations in relevant field, the private sector, or non government organization; and, at local area, an appointed citizen by the respective People’s Representative Khural, and the official by the respective Governor’s Office.” M.I.3.b. Evaluation committee & Rights and Duties New amendment, 9 June, 2011

11. 10 Requirements for evaluation committee Shall have more than 3 members. Evaluation committee elects a chairman and secretary. Shall have more than 3 members. Evaluation committee elects a chairman and secretary. Specialized in procurement fields /majority of evaluation committee/ Specialized in procurement fields /majority of evaluation committee/ Specialized in given goods, works and services Specialized in given goods, works and services A member shall not have conflict of interests with bidders A member shall not have conflict of interests with bidders A member has not violated public official’s duties for at least 1 year A member has not violated public official’s duties for at least 1 year Revised clause 47.4, PPLM Revised clause 47.4, PPLM M.I.3.b. Evaluation committee & Rights and Duties

12. 11 Planning public procurement A procuring entity shall submit an annual procurement plan with budget proposal of the given year to the portfolio governor. Once the state budget has been approved, the procurement plan will be entered into a force. The portfolio governor shall approve a procuring entity’s procurement plan and supervise its implementation. The Ministry of Finance shall supervise a portfolio governor’s procurement plan and its implementation, and appraise. M.I.3.c. Procurement Planning and Reporting

13. 12 Based on the procurement principles, a procurement plan shall be developed and observed for each project or measure and by every procurement level Based on the procurement principles, a procurement plan shall be developed and observed for each project or measure and by every procurement level. A procuring entity shall advertise its procurement plan in public media within 30 days of budget approval by relevant body. M.I.3.c. Procurement Planning and Reporting

14. 13 Reporting procurement activities A procuring entity shall report on procurement activities performed for a given budget year to the portfolio governor before December 1 st of every year. The portfolio governor shall submit the consolidated report to the Ministry of Finance before January 15 th of the next year. The ministry of Finance shall submit the state consolidated report of public procurement to the Government of Mongolia in the first quarter of the next year. The government shall include outcomes of the public procurement in the annual budget performance’s report. A procuring entity shall file each procurement in separate folder and preserve it. M.I.3.c. Procurement Planning and Reporting

15. 14 Procurement file includes the following documents information: 1. A procurement plan, its performance, if necessary, comments; 2. Grounds for selecting other methods than open bidding; 3. Brief description of goods, works and services procured and bidding documents; 4. All official documents, sent and received, related to the procurement \clarifications, approval of the MOF, etc.; M.I.3.c. Procurement Planning and Reporting Filing requirements

16. 15... 5. Bids and price proposals of bidders; 6. Minutes during opening, evaluation conclusion; 7. Reasons and grounds for bidding failure or rejecting all bids; 8. Name of a bidder who has been awarded a contract, contract volume and a signed contract; 9. Other information related to a given procurement entity has considered important M.I.3.c. Procurement Planning and Reporting

17. 16 A procuring entity and bidders shall correspond in writing. A procuring entity and bidders shall correspond in writing. If they have communicated by phone, it shall be secured by an official documents. If they have communicated by phone, it shall be secured by an official documents. Clarification, request and compliant expressed in not writing shall not be received. Clarification, request and compliant expressed in not writing shall not be received. There is not a regulation for using electronic devices (email, etc) using them are not permitted.There is not a regulation for using electronic devices (email, etc) using them are not permitted. M.I.3.c. Procurement Planning and Reporting Correspondence

18. 17 /Module I.4/ Supervision and Coordination /Module I.4/ а. Review body b. Complaint mechanism c. Accountability

19. 18 Policy, Regulation State Inspection agency BIDDERS State auditing Policy, SBDs, methodological advice and training THE MINISTRY OF FINANCE /PCD/ holds ‘INSPECTION POWER’ Supervision, analysis and evaluation The court M.I.4.а. Review body COMMUNITY/P UBLIC

20. 19 General rights and duties of PCD General rights and duties of PCD -In addition to Inspectorate (revised on 9 June, 2012): -Improving legislation on public procurement -Improving a procuring entity’s procurement management capacity -Making public procurement transparent to public -Providing and supervising the execution of the legislation on public procurement M.I.4.а. Review body

21. 20 A procuring entity /Evaluation committee/ Bidders Submit Clarification and/or Bid 1. File complaints and/or requests MOF/PPCD/ 3. File a compliant The Court 2. File a complaint Bidder’s rights and duties M.I.4.b. Complaint mechanism

22. 21

23. 22 Hierarchy of filing complaints COURT The state administrative body for budgetary issues(INSPECTORS) A PROCURING ENTITY M.I.4.b. Complaint mechanism

24. 23 A procuring entity’s decision If a procuring entity has not accepted a complaint, the grounds for it If a procuring entity has accepted a complaint, remedy measures shall be indicated. M.I.4.b. Complaint mechanism

25. 24 MOF’s decisions Terminate or change, partially or wholly, activities done and decision made by a procuring entity violating the lawTerminate or change, partially or wholly, activities done and decision made by a procuring entity violating the law Indicate what provisions shall be used in a given issueIndicate what provisions shall be used in a given issue Demand that a procuring entity organize bidding after eliminating violationsDemand that a procuring entity organize bidding after eliminating violations May suspend the implementation of a procuring entity’s decision and/or action until it reviews and settle a complaintMay suspend the implementation of a procuring entity’s decision and/or action until it reviews and settle a complaint M.I.4.b. Complaint mechanism

26. 25 LEVELS FOR FILING A COMPLAINT C O M P L A I N T A procuring entity Court MOF 1. Before awarding a contract 3. If a claimant did not accept a MOF’s entity’s decision /if a contract was made/ 2. If a claimant did not accept a procuring entity’s decision /Before making a contract / Decision Decision M.I.4.b. Complaint mechanism

27. 26 Review before going far… Tendering Losing Bidders shall be notified about REASONS of non- responsiveness of their Bids. 5 working day It gives the opportunity to both of PE and Losing bidders to be clear and acceptable on the decision of Contract award. Contracting M.I.4.b. Complaint mechanism

28. 27 Responsibilities imposed on violators of legislation- procuring entity The court or authorized state professional inspector shall impose a fine of ‘financial penalties’ on a violator of procedures set forth in the law if the criminal law is not applicable to it.The court or authorized state professional inspector shall impose a fine of ‘financial penalties’ on a violator of procedures set forth in the law if the criminal law is not applicable to it. A general manager, executive director or an evaluation committee member of a procuring entity who repeated violations shall be dismissed from their positions.A general manager, executive director or an evaluation committee member of a procuring entity who repeated violations shall be dismissed from their positions. M.I.4.c. M.I.4.b. Accountability/Sanctions-administrative and criminal/

29. 28 Responsibilities imposed on violators of legislation- bidders If the court or authorized organization proved that bidders or legal entities: - Non performance of contractual obligations, -Submitted fraud information, -Got involved in fraud and corruption actions the decisions shall be sent to the state administrative body for budgetary issues, and violators shall be blacklisted, and whose rights will be limited in public procurement. M.I.4.b. Accountability