Transcript Slide 1

EuropeAid
How can a private entity
benefit
from EU external action
contracts?
Riga, 24 September 2010
Agneta Lindqvist
EuropeAid Cooperation, Unit G7
Resources
Financial and contractual matters and legal affairs
Photos external actions: copyright European Commission
Summary
EuropeAid
• 1. Who manages the contracts? Which rules to follow?
• 2. Award procedures and publication requirements
• 3. Evaluation and contract award
• 4. Submission of the application or tender
• 5. Implementation of the EU contracts: payments, reporting,
visibility etc.
• 6. Useful tips
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Who manages the contract?
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Who does what?
DG Development
DG External Relations
DG ELARG
Multi-annual
Programming
Joint responsibility
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Elarg
Evaluation
Identification
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Elarg
Elarg
Formulation
Implementation
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Elarg
Financing
Who manages?
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centralised
direct
executive
agencies
shared
(Member
States )
decentralised
(Third
Countries)
indirect
bodies set up by
Communities
"(tradit. agencies) "
bodies with a public
service mission
"(nat. agencies)"
jointly
with international
organisations
EC External Actions
Instruments from 2007
Geographical coverage
• Pre-accession: IPA
• Neighbourhood: ENPI
• Development: DCI and EDF
• Industrialised countries: ICI
General coverage
• Thematic programmes (included in DCI)
• Human rights: EIDHR
• Stability: IFS
• Nuclear safety: NSI
• Humanitarian aid and Macro-financial aid
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Volume of assistance 2008
Commitments in million €
• ENPI, South
• ENPI, East
• DCI, Latin America
• DCI, Asia
• DCI, 5 thematic programmes
• EDF
• Budget ACP
• EIDHR
• INSC
• Ifs (part II)
TOTAL
1,165
570
348
840
740
4,890
327
143
71
38
9.132
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What is a procurement contract?
-comparison with a grant
Procurement
Purchase of
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Grant
Object
-Action proposed by a potential beneficiary,
services/supplies/
intended to achieve an EU-policy objective; or
works
-Functioning of a body
Contracting Authority
Owner of
Grant beneficiary
results
100%
Financial
Co-financing - % of total eligible costs
contribution
Reimbursement of the actual eligible cost
incurred
Tenders
PROFIT
Procedure
Calls for proposal
NO PROFIT ALLOWED
ELIGIBILITY – GENERAL PRINCIPLES
1) Thematic programmes (+
ACP)
2) Geographical programmes
a) Expert : any nationality
b) Rules of origin: follow the eligibility
rules – possible derogations
c) Reciprocity : case by case (Australia;
automatic reciprocity Least Developed
Countries)
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1) Member States + European Economic Area +
officially recognized candidate countries +
reciprocity cases + Developing countries (Annex
1 DCI Regulation) + international organisations
2) Member States + European Economic Area +
officially recognized candidate countries +
reciprocity cases + Countries mentioned in the
basic act or covered by the Instruments +
International organisations
----
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Award procedures and
publication requirements
Where are the procedures described?
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Practical Guide to contract procedures for EU
External Actions
o
Harmonisation of procedures
o
Sole working tool
o
Coherent application of rules
http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm
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Budget
Legal Bases
10th EDF
Council regulation
Legal base of programme
Financial Regulation
Cotonou Agreement
Comm regulation
Implementing Rules of
FR
Internal Agreement
Comm decision
AIDCO Rules and Procedures
Council regulation
Financial Regulation
AIDCO decision
Practical Guides
(Contract/Finance/Programme
estimates)
Instruction Notes
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Award procedures & publication requirements How to award a contract?
• Call for Tenders:
o
o
o
o
o
Open or restricted - International/Local
Competitive Negotiated Procedure
FrameWorkContract
Single tenders
Competitive Dialogue
• Very detailed exceptions where direct award
of contract may be allowed.
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SERVICE
> 150.000
< 150.000 but > 60.000
< 60.000 but > 10.000
Open international tender
Open local tender
Comp neg proc
> €5.000.000
1. Open international
<5.000.000 but>300.000
< 300.000 but > 10.000
tender
Open local tender
Comp neg proc
< 200.000 but > 10.000 (BUD)
International restricted
Rule: Framework contract
tender
Exception: Comp neg proc
2. Int. Res. Proc
Exceptional procedures: -competitive dialogue
-negotiated procedure
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< 10.000 Single offer
WORKS
> 200.000
SUPPLY
€
Publication
• Forecast
• Procurement Notice
o Launch the procedure
o Content legally binding
o Deadline for reply
o Defines criteria
• Award Notice
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Criteria
• Exclusion
o Bancruptcy, taxes…(art 93 FR)
• Selection
o Experience, financial capacity…(art 135-7 IR)
• Evaluation
o Quality of offer (art 97 FR)
• Award
o Price, best value for money (art 138 IR)
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Point 21- Procurement Notice
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1) Economic and financial standing of candidate
The average annual turnover of the candidate must exceed the
annualised maximum budget of the contract
2) Professional capacity of candidate
At least 5 permanent staff members currently work in fields related
to this contract.
3) Technical capacity of candidate
a) The candidate has worked successfully on at least one project with
a budget of at least €500.000 in fields related to this contract in
the past three years.
b) The candidate must have experience in …
If more than 8 eligible candidates:
a) Preference will be given to candidates that have managed
projects with similar objectives within … sector of xyz country.
b) Highest number of project in 3 a)
Service Contracts
International Restricted Procedure
• Publication *
• Shortlist *
• Tender launch
• Tenders received
• Evaluation
• Contract Award *
• Contract Signature *
* EC approval if decentralised ex-ante control
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Shortlist
• Selection criteria applied
• 4-8 companies will be invited to tender
• Result = Shortlist
• Report approved by Contracting Authority
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Tender Launch
• Dispatch Tender Dossier
• Unsuccessful candidates informed +
publication of shortlist notice
• Deadline for Submission = min. 50 days
• Questions 21 days – Answers 11 days
• Tenders are valid 90 days
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Evaluation and contract
award
Evaluation
Odd number of voting members + secretary + chairperson
Held “in camera” in 5 phases:
o
o
o
o
o
Tender Opening Session
Administrative compliance
Technical Evaluation
Financial Evaluation
Conclusion
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Tender Opening Session
• Not public
• Declarations of impartiality & confidentiality
• Double Envelope System
• Check offers arrive sealed and within deadline
• Tender Opening Report
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Administrative Compliance
• Fill in Administrative Compliance Grid
o Documentation complete as required
o Evidence exclusion criteria
o Nationality of Sub-Contractors
• May request clarifications
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Technical Evaluation
• Individual Evaluation Grids
• Evaluators give scores and comments
• Calculate average score for each offer
• Interviews if 80 of more
• Calculates technical score only if average >80
• Technical score = average score
highest score
• Highest scoring tender =
100 points
x 100
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Financial Evaluation
•
•
•
•
Open financial envelopes
Check arithmetical errors
Financial offer within maximum budget
Financial score = lowest fees x 100
actual fees
• Cheapest offer = 100 points
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Conclusion
Technical Score x 0.80
+
Financial Score x 0.20
Best value for money wins!
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Contract Award
Committee recommends to
• Award the contract to the best value for money
OR
• Cancel the procedure
Contracting Authority must approve the evaluation report
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Contract Signature
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• Inform successful Tenderer and ask for evidence of selection
criteria
• Prepare contract
• Sign and send contract
• Publish Contract Award Notice
• Inform unsuccessful Tenderers
Time Line Service Contract
Procedure takes at least 6-7 months
Contract Signature
Contract Award
Tender Launch 50 days
Procurement
Notice 30 days
Forecast 30 days
Evaluation
Shortlist
March
June
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Supply/Works Contracts
International Open Procedure
• Publication *
• Tenders received
• Evaluation
• Contract Award *
• Contract Signature *
* EC approval if decentralised ex-ante control
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Tender Opening Session
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• Public opening
• 1 envelope system
• Announced: name of tenderer, price, offers arrive sealed, within
deadline, guarantee
• Tender Opening Report last step
• Minutes are available upon request
Administrative Compliance
• Fill in Administrative Compliance Grid
o Documentation complete as required
o Nationality of Sub-Contractors
o Close checking of origin of goods
• May request clarifications
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Technical Evaluation
• Individual Evaluation Grids
• Use published evaluation grids
• Check if offers comply with TS: YES/NO
• May request clarifications
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Financial Evaluation
• Check arithmetical errors
• Financial offer within maximum budget
• Award of contract to the tenderer with lowest price
• Discounts
PRAG 4.3.9.5
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Contract Award
Committee recommends to
Award the contract to the compliant offer with lowest price
OR
Cancel the procedure
Contracting Authority must approve the evaluation report
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Contract Signature
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• Inform successful Tenderer and ask for evidence of selection
criteria and exclusion criteria
• Prepare contract
• Sign and send contract
• Publish Contract Award Notice
• Inform unsuccessful Tenderers
Time Line
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Procedure takes at least 6-7 months
Contract Signature
Contract Award
Procurement
Notice 60 days
Forecast 30 days
Evaluation
March
June
Case study
The EC Delegation in Kenya is going to launch a call for
tender for the supply of goods where the overall budget is
€140.000.
• a) Which procedure should they use?
• b) There are not many local
suppliers on the market
in Kenya. How may this be
tackled?
EuropeAid
Award procedures & publication requirements How to award a contract?
• Call for Tenders:
o
o
o
o
o
Open or restricted - International/Local
Competitive Negotiated Procedure
FrameWorkContract
Single tenders
Competitive Dialogue
• Very detailed exceptions where direct award
of contract may be allowed.
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Submission of the
application/tender
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Submission of applications
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• Only for international restricted service procedure
• Reply to a Procurement Notice. Candidate demonstrate its
capacity.
• Respons period after the publication of the procurement
notice
o
30 days
• PN should be clear enough to avoid questions but
questions/clarifications are still allowed up to 21 days before
submission deadline
• The application must reach the Contracting Authority by the
deadline
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Submission of tenders
• Reply to an invitation to tender
• Respons period depending on type of procedure.
o
30, 50, 60, 90 days
• Questions/clarifications may be made up to 21 days before
submission deadline. Response by Contracting Authority, to
all tenderers simultaneously, no later than 11 days before
the same deadline.
• The tender must reach the Contracting Authority by the
deadline
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Case study
The deadline for receiving tenders is Monday 15/11 at 16:00
You send your proposal by DHL on Friday 12/11
There is bad weather during the weekend and flight is
cancelled. The offer arrives to the Contracting Authority on
Monday at 16.10
Should in your opinion the tender be accepted by the
Contracting Authority?
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Contract award - Publication of contractors
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Implementation of the EC
contracts
The standard contracts
• Contract
• Annexes:
• Special Conditions
• General Conditions
• Terms of Reference / Technical Spec
• Technical Offer from tenderer
• Financial offer
• Expenditure verification report (services)
• Financial guarantee forms
• Various annexes depending on contract
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The standard contracts
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• Payments
o
Options for payment, pre-financing, financial guarantees
• Reports
o
Financial & Technical, expenditure verification (service)
• Visibility
o
Communication and Visibility Manual for EU External
Actions
http://ec.europa.eu/europeaid/work/visibility/index_en.htm
Contract amendments
General Principles
Addendum - major modifications
o
Extend contract duration
o
Major budget changes
o
Additional or complementary services
o
Replacement of key expert
Administrative order - minor modifications
o
Address or bank account
o
Auditor
o
Within budget heading +/- 15%
o
Approval of non-key experts
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Contract amendments
General Principles
Addendum - major modifications
o
o
Budget change
Additional supplies
Administrative order - minor modifications
o
Extend contract duration
o
Address or bank account
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Contract amendments
General Principles
Addendum - major modifications
o
o
Additional works - max 50%
Extend contract duration if contractor at fault
Administrative order - minor modifications
o
Address or bank account
o
Additional works - max 15%
o
Extend contract duration if contractor not at fault
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Useful tips
Common mistakes
made by candidates, tenderers
What can go wrong?
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Administrative reasons
• Late arrival
• Incomplete documentation
• Not in accordance with templates
• Lack of required translations
• Not signed
• Lack of or copy of Tender Guarantee (Supplies and
Works)
• Tenderer/Applicant/partner not eligible
• Financial offer not in separate envelope (Service)
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Technical reasons
Service:
• Experts are not available on required dates
• Experts do not have the required experience
• Copy and paste of Terms of Reference
Supply, Works:
• Offer not exactly compliant with Technical Specification
• Ineligible origin of supply
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My company does not fulfill the selection
criteria….
-Form
a consortium (the consortium as a whole must meet
the criteria, not each individual company)!
-Try and gain relevant experience as consortium partner or
subcontractor!
-An economic operator may rely on the capacities of other
entities for a particular contract (undertaking)!
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Further information…
General
http://ec.europa.eu/development/index_en.cfm
http://ec.europa.eu/external_relations/index_en.htm
http://ec.europa.eu/europeaid/index_en.htm
Specific
The Contracting Authority
The Delegation in the beneficiary country
Procedures
http://ec.europa.eu/europeaid/work/index_en.htm
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Thank you for your
attention
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