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

What is Terms of Reference? What is it stand for in a service contract? What do you expect from a TOR? 2 This project is co-financed by the European Union and the Republic of Turkey

3 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 out the responsibilities of the parties and the expected deliverables of the assignment. (incl standard reports)

This project is co-financed by the European Union and the Republic of Turkey 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 5 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 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 7 Procedures of ToR Preperation The SRER submits ToR and budget estimate to the OS OSrevises 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 8 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 Beneficiery, 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 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 10 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 11 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 Study Contracts Have a clear and easy 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 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 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 ToR is for..(consultant) Based on ToR, tenderer prepares Organisation and Methodology and Budget Quality of ToR influences the 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 ToR is for..(Contracting Authority) 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 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 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 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 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 exceeding 15% Change in incidentals budget

This project is co-financed by the European Union and the Republic of Turkey 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 Monitor the Contract with ToR 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 detailness important, especially in Global price contracts

This project is co-financed by the European Union and the Republic of Turkey Questions and Discussions.. 23