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 Service Contracts Technical and economic support in the course of cooperation policy involves recourse to outside know- how on the basis of service contracts, most of them for studies or technical assistance Studies (global price): Identification and preparation of projects, feasibility studies, economic and market studies, technical studies, evaluations and audits Technical Assistance (fee based): to play an advisory role, to manage or supervise a project, to provide the experts specified in the contract

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Contract Prior Information Notice Must give a brief indication of the subject, content and value of the contracts concerned (Annex B1) Do not bind the CA to finance the contracts proposed ‘Would-be service providers’ are not expected to submit application forms at this stage Published on the OJ of the EU, on the EuropeAid website and in any other appropriate media At least 30 days before the publication of the Contract Notice

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Contract Notices For all service contracts > €200,000 At least 15 days before the intended date of publication, to allow for translations Must set the criteria for determining the capacity to fulfill the contract in question Minimum deadline for submitting the applications is 30 days from the publication in the OJ of the EU

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Selection criteria The selection criteria must be: clearly formulated, without any ambiguity easy to verify on the basis of the information submitted using the standard application form devised to allow a clear YES/NO assessment to be made as to whether or not the candidate satisfies a particular selection criterion possible to prove by the tenderer The selection criteria should be adapted to the nature, cost and complexity of the contract

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Selection criteria Verification of the eligibility of tenderers or candidates Verification of the financial and economic capacities of tenderers or candidates Verification of the technical and professional capacities of tenderers, candidates and their managerial staff

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Selection criteria Request of annual turnover, no. of staff, no. of previous projects beyond the amount of the contract Use of words; “sufficient”, “major”, “relevant” Requesting information dating back more than 3 years (regulated by Imp. Reg of Fin. Reg.). Only exception for works contracts Limiting technical experience to EU projects

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Selection criteria Economic and financial capacity of candidate will not be economically dependent on the CA in the event that the contract is awarded to it; and has sufficient financial stability to handle the proposed contract Professional capacity of candidate has sufficient ongoing staff resources and expertise to be able to handle the proposed contract is not a so-called 'body shop', ie, a candidate with no real expertise in fields related to the contract but which simply identifies and proposes experts to fit the project description Technical capacity of candidate has sufficient expertise and experience to be able to handle the proposed contract

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Tender Documents TD must be carefully drafted for: the proper execution of the contract the sound functioning of the procurement procedure must contain all the provisions and information that tenderers need to present their tenders: the CA is responsible for drawing up these documents Given the technical complexity of many contracts, the preparation of the tender dossier may require the assistance of one or more external technical specialist(s) – declaration of objectivity and confidentiality

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Tender Dossier Content Letter of invitation with A. Instructions to tenderers B. Draft Contract Agreement and Special Conditions with annexes I. General Conditions for service contracts II. Terms of Reference (Fee-based/Global) III. Organisation and Methodology IV. Key experts (list of experts + model for CV) V. Budget/Budget Breakdown VI. Forms and other relevant documents (financial identification, pre-financing guarantee form, legal entity file) C. Other information (shortlist notice, administrative compliance grid, evaluation grid) D. Tender submission form Format of the Declaration Referred to in Point 3 of the TSF Statement of exclusivity and availability

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Terms of Reference 11

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY What is Terms of Reference? What is it stand for in a service contract? What do you expect from a TOR?

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 13 What is TOR A key document, which describes the terms and conditions of a task to be performed. A document that sets out the working relationship between the parties and communicates the mode for undertaking the assignment. A document that sets out the responsibilities of the parties and the expected deliverables of the assignment. (including standard reports)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY W questions? ToRs provide clearly detailed parameters for: why and for whom the project is being done what is intended to be accomplished how it will be accomplished who will be involved and when milestones will be reached and project be completed

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 15 Objectives of a TOR To ensure: That ambiguities during the preparation of proposals, contract negotiation and execution of services are cleared out That a specific task is carried out as outlined in the OIS That the consultants, undertaking the task, will focus on the major issues and the most serious likely impacts of the task That the task is undertaken within the time-frame planned and the budget allocated That risks of unnecessary extra work, delays and additional expenses are reduced

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR and Other Key Documents ToR has to be in compliance with OIS Objectives Assumptions Pre-conditions Risks ToR has to be in compliance with FM -commencement date and period of execution ToR has to be in compliance with PRAG – template ToR has to be in compliance with State Aid Provisions ToR becomes the Contract

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 17 Procedures of ToR Preparation The SRER submits ToR and budget estimate to the OS OS revises ToR in accordance with Checklists and submits to EUD EUD gives ex-ante approval after verification During project implementation it is SRER responsibility to closely monitor the performance of the contractor’s experts and assure a qualitative and timely implementation of the project along with ToR At the end of the project a final assessment of the contractor’s performance will need to be carried out to check respect of ToR OS is in charge for contractual issues incl. payments and approval of expenses with ToR

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 18 Cont.. Drafting the TOR requires expertise with the type of assignment and the needed resources as well as familiarity with the project background, and knowledge of the terrain, country, etc. If the needed qualifications to produce the TOR are not available within Beneficiary, a specialized independent consultant could be hired Consultants employed to prepare TOR should not be allowed to present themselves as consultants in the resulting assignments

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Types of ToR Depending specificity of contract Depending on size of contract/procedure

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 20 Service Contracts by Type of Work Technical assistance to provide the experts specified in the contract, to manage or supervise a project. Studies studies for identification and preparation of projects, feasibility studies, economic and market studies, technical studies, evaluations and audits. Mixed (exceptional cases)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 21 Technical Assistance Contracts Technical assistance contracts are used where a service provider plays an advisory role Technical assistance contracts often specify the means, the contractor is responsible for performing the tasks entrusted to it in the Terms of Reference and ensuring the quality of the services provided Payment for these contracts is dictated by the resources and services actually provided - fee-based

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Study Contracts Have a clear and easy way? to describe output/result the contractor must provide a given product, the technical and operational means, by which it achieves the specified outcome are irrelevant. These are, therefore, lump-sum - global-price-contracts and the contractor will be paid only if the specified outcome is achieved

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Service Contracts Implementation Cycle 1. OIS 2. Tendering 3. Contracting 4. Implementation 5. Evaluation ToR is essential for all stages of service contract implementation.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY TOR is for... The basic principles of procurement are: to obtain the desired quality of service at the best possible price to ensure equal treatment To ensure non–discrimination

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR is for..(consultant) Based on ToR, tenderer prepares Organisation and Methodology and Budget Quality of ToR influences the ability of the tenderer to submit a cost-efficient and effective offer Example: If ToR is unclear, tenderer takes additional risk, and charges for that (puts more manğdays than required for each task) If ToR includes high requirements – you may get a professor lecturing on PCM basics If expert input is overestimated you will get experts playing chess in the office or surfing Internet (boring, but well paid)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR is for..(CA/SRER) The quality of ToR influences quality of the consultants that you get: You will get bad consultants if: You put no or low requirements on the delivery for a lot of money You put extremely high requirements for little money bad consultants do not care about quality; good consultants care and will not tender if can not ensure proper quality due to lack of resources; If ToR are poor and unclear you may need to cancel the tender and to repeat it with corrections

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Time Management of ToR Between preparation of ToR and the launching of tender there should be reasonably short time (in theory) In practice more than a year could elapse ToR in a tender dossier must reflect the situation at the time of project start-up to avoid considerable effort to having re- design the project during the inception period

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR in Contract Any change of ToR modifies the Contract Distinguish between: Acceptable changes Small or big changes of ToR during the implementation Forbidden changes:

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR in Contract Acceptable changes: Additions, omissions, substitutions Changes in quality, quantity Changes in specified sequence Method of performance of the services Timing Major changes in ToR require an Addendum Small changes - administrative order

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR in Contract Small changes amendment that does not affect the basic purpose of the contract and the financial impact is limited to a transfer within the Fees involving a variation of less than 15% of the original amount for the relevant line in the Budget breakdown Major changes Extension of the contract Change of ToR that requires variation in fees budget Change in incidentals budget

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ToR in Contract Forbidden changes: Fundamental alteration of the Terms of Reference/ (change of purpose, major changes in results) cannot be made by Addendum! (important rule) the Addendum must not alter the competition conditions prevailing at the time when the contract was awarded. Retroactive changes

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY SRER duties ToR is used to assess and control the performance of the contractor (inputs, delivery, outputs, time, etc.) ToR is used to legally enforce contract implementation if something goes wrong Level of details important, especially in Global price contracts

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY SRER duties Clear definition of the purpose of the proposed task and expected output for the assignment It should be kept up-to-date during implementation results and activities may change as the project progresses Project objective and purpose should not change

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY How SRER approaches to ToR Before preparing the TOR the purpose must be clear The project purpose plus the assumptions in the same row of the logframe matrix should lead to the overall objective What outputs are required must also be clear! Remember, purpose should be achieved by the end of the project! Overall objective – why the project is important? Specific objective – why the project is needed? Check with the operation identification sheet!!!

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY How SRER approaches to ToR The single central objective of the project in terms of sustainable benefits to be delivered to the project's beneficiaries Derived from the core problem that the project is trying to address The near-term impact and the immediate result of producing Outputs By definition, project Purpose is outside of the direct control of the project implementation team

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY SRER check... Overall objectives Do the overall objectives explain why the project is important for society / sectoral development? Are the overall objectives inline with those elaborated in the OIS? Specific objective Is there only one specific objective? Is it in line with the OIS? Does the specific objective express a direct benefit for the target group? Are SMART indicators identified? Do these enable measuring the achievement of the specific objective?

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Do not forget.. Objectives of the Consultant's assignment is : To carry out certain services under a Programme/Component/Project The contractual objectives of assigning a Consultant will often be narrower and should therefore be clearly formulated in the Terms of Reference as e.g.: advice and support (technical assistance) to the implementing agency management of a component or sub-component, study, master plan, survey, investigation detailed engineering design, preparation of tender documents and assistance in tendering and award review (of a study, a design or an investigation) contract administration and construction supervision, take-over and commissioning training and upgrading of staff, etc.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY RESULTS Immediate benefits for the ERA Often outputs are stated here to better define the workload of Consultant Expressed as a change Compliant with project purpose and contributing to overall objective Do not forget..

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY ASSUMPTIONS and RISKS External factors beyond the control of the Consultant but important for the implementation of the project define the environment and sustainability issues summarise factors which the project cannot, or chooses not to control are factors which the project does not address, but should monitor Assumptions and risks should be aligned with the OIS Consultant should address risks in their methodology Do not forget..

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Budgeting ToRs Fees: cost for hiring the expert plus administrative expenditures for executing the contract and profit Incidental expenditures: other direct cost for the contract (reimbursable) Provision for expenditure verification

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Fees for.. Cost for experts: Cost for hiring the staff (salary, fees, insurance, leave) Travel from the place of residence of the expert to the base of operation(s) Per diems / accommodation in the base of operation If the base of operation is Ankara - any travel of key expert and non-key experts to Ankara is included within the fee rates Per diems for Ankara are also included within the fee rates (for all experts) If the experts travel from base of operation (Ankara) to other cities within Turkey or Europe for specific missions, the travel and per diem expenses for these missions are included within incidental expenditure

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Office-related costs: Office Rent Purchase or rental of office equipment Communications – fax, telecommunications, mail, courier etc. Consumables – not related to direct actions of Contract Secretarial services – for experts work – office managers, secretaries, interpreters, etc. Fees also cover

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Incidental covers Cover non-fee direct cost related to the Activities: Travel / per diems within the target region outside base of operation Publications Direct costs related to training – premises, equipment, accommodation, interpretation, training materials, food or per diems for participants Study tours, etc. Translations of documents, etc. Organisation of information campaigns Setting up of a database Development of MIS, etc.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Expenditure Verification Relates to the fees of the auditor who has been charged with the expenditure verification of the contract A budget heading with the introduction of detailed expenditure verification report A very detailed report – sufficient budget should be allocated (1-1.5% of the incidental budget)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Experts Key experts (Team Leader, Key Expert II, III and IV) Non key experts (Senior, Junior Experts) Short term – experts working less than 6 consecutive months of the contract Long term – experts working more than 6 consecutive months of the contract Support staff and backstopping (project assistant, secretary, driver, etc.)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Experts Identify: Qualifications and skills: professional technical skills, team management skills, communication skills, and/or language skills as appropriate General professional experience: as appropriate Specific professional experience: as appropriate Differentiate between minimum requirement and preferred requirement, if applicable, for GPE and SPE Be sure such experts exist in the market! Do not give the profile of the ‘ideal expert’

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Experts Profiles should be non-discriminatory Participation in tendering procedures shall be open on equal terms to all eligible persons No discriminatory requirements for sex, age, nationality The ToRs may not require an expert defined as local expert (defined as an expert with permanent residence in the concerned country). The nationality or place of residence may not be considered as a criterion.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Experts CVs for experts other than the key experts are not examined prior to the signature of the contract They should not be included in tenders During the technical evaluation, the only aspect is considered for the non-key experts is whether the number of working days are sufficient for the requirements of the ToR to be achieved

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 49