EuropeAid Version November 2010 Summary of the main changes

EuropeAid Summary of main changes to the PRAG Chapter 1, Introduction Introduction o clarification of the scope of the PRAG o revised eligibility rules for EDF Chapter 2, Basic rules 2.2. Management modes: o Elaboration of the texts concerning indirect centralised management and joint management o Mention of possibility to use country procedures in decentralised management The rule of nationality and origin: o Modified rules for EDF + clarification of origin, notably for works contracts

EuropeAid Summary of main changes to the PRAG Exceptions to the rule of nationality and origin o In case of derogations, open to all countries Grounds for exclusion, administrative and financial penalites o Reminder that before deciding on excluding a party, in principle the concerned party has the right to be heard (contradictory procedure) Visibility o Summary of key elements of the visibility guidelines provided

EuropeAid Summary of main changes to the PRAG Other essential points o Clarification of conflict of interest, non-retroactivity and record keeping; explanations of joint procurement with a Member State and ex-post publication of beneficiaries Restricted procedure o Precisions concerning the general rule that the tender should be submitted by the same shortlisted candidate Competitive negotiated procedure o Clarification that the evaluation follow the same procedure as for restricted procedures

EuropeAid Summary of main changes to the PRAG Competitive dialogue o Clarification concerning the use and conduct of this procedure Negotiated procedure o Clarification concerning the use and conduct of this procedure and the single tender procedure Selection and award criteria o Advice on the drafting of selection criteria and the evidence to be provided; examples of criteria which may pose problems

EuropeAid Summary of main changes to the PRAG Procedure with ”suspensive clause” o Precisions concerning its use Cancellation of procurement procedures o Addition of ”compliance with sound financial management”; precision that negotiations may only be conducted with entities complying with the selection criteria Ethics clauses o Text clarified and that the European Commission (OLAF) must be informed in case of suspicion of fraud, corruption and other irregularities which involve EU- funds

EuropeAid Summary of main changes to the PRAG Appeals o Clarifications on appeals; reduction of respons time in case of appeals to 45 days 2.6 Terms of reference and Technical specifications o Clarification concerning the structure of the budget in service contracts; reminder that these documents are confidential until made available simultaneously to tenderers 2.8 The evaluation committee o Independent experts under service contracts may only participate as observers or assessors in decentralised (ex-ante) management

EuropeAid Summary of main changes to the PRAG Impartiality and confidentialiy o Clarifications on access to documents in other management modes than centralised Responsibilities of the evaluation committee o Further examples provided of situations which should normally not lead to the rejection of the tender or proposal Publicising the award of the contract o Clarifications concerning requests for further information

EuropeAid Summary of main changes to the PRAG Chapter 3, Service contracts Publication of procurement notices o Precision that clarifications are possible also in the procurement notice phase Additional information during the procedure o Clarifications concerning information meetings Notifying the successful tenderer o Tenderer to reconfirm availability of key experts Provision and replacement of experts o Reminder about the possibility of administrative and financial penalties

EuropeAid Summary of main changes to the PRAG Framework contracts o Section redrafted (FWC BENEF 2009) Chapter 4, Supply contracts Publication of procurement notices o Precisions concerning the publication of corrigenda Additional information during the procedure o Precisions concerning clarifications and corrigenda 4.4 Local open tender o Reminder about the possibility of exceptionally reducing submission deadlines

EuropeAid Summary of main changes to the PRAG 4.6 Modifying supply contracts o Precisions concerning the variation clause Chapter 5, Works contracts Publication of procurement notices o Precisions concerning the publication of corrigenda o Reminder about the possibility of exceptionally reducing submission deadlines Additional information during the procedure o Precisions concerning clarifications and corrigenda Evaluation of offers o Clarification of the rule of origin for purchased goods and materials to be incorporated in permanent works

EuropeAid Summary of main changes to the PRAG 5.5 Local tender o Reminder that references of local tenders must be published on the EuropeAid website; reminder about the possibility of exceptionally reducing submission deadlines 5.6 Competitive negotiated procedure o Reminder of the preferential rules for ACP-countries Chapter 6, Grants Definition o New approach to co-financing: non-reclaimable taxes where the applicable regulation excludes financing of such, may be considered as co-financing by the grant beneficiary

EuropeAid Summary of main changes to the PRAG Open or restricted calls for proposals o Restricted procedure should be used by default (exceptions foreseen for use of open procedure) Grants awarded without call for proposals o Completion of a ”negotiation report” mandatory; precisions on what constitutes a basic act Publicity o Precisions on the organisation of information sessions Additional information before the deadline for submission of proposals o Reminder that no prior opinion can be given concerning the eligibility of a proposal

EuropeAid Summary of main changes to the PRAG Use of assessors o Clarification on the recruitment of assessors Opening and administrative checks o Merger with the step of evaluating the concept note; clarification on the elements that are checked Evaluation of the concept note o Removal of the possibility not to undertake the concept note evaluation; modification of criteria which are assessed; only one minimum threshold: 30 of the overall score Verification of eligibility o Clarification of supporting documents and reminder of the discretionary powers of the evaluation committee in case some documents are missing

EuropeAid Summary of main changes to the PRAG Conclusions of the evaluation committee o Reminder that the committee may identify elements which need to be modified prior to contract signature (subject to the principles of equal treatment etc.) Characteristics of the standard grant contract o New approach on co-financing. In addition to specifying a max amount and a max % of eligible costs, a percentage of the total accepted costs may be used (non-reclaimable taxes may be accepted as co- financing) 6.9 Grants to international organisations and national bodies o Section redrafted

EuropeAid Summary of main changes to the PRAG Chapter 7, Relations with international organisations, Member States, Beneficiary countries and other donors: delegated cooperation and cofinancing o Chapter has been removed from the PRAG

EuropeAid Summary of main changes to the PRAG ANNEXES General annexes A1_glossary: definitions added (ancillary services, taxes etc) A2_eligibility: new rules for EDF, updated OECD DAC list, Iceland reflected as candidate country A8_notifletter: for services: availability of key experts to be reconfirmed A9_coverletter: reminder that financial guarantees are subject to the approval of the Contracting Authority A10a_negotreport: revised negotiation report to be used for direct award of procurement contracts and grants A10b_negotreport: new template to be used in case of single tender awards

EuropeAid Summary of main changes to the PRAG - Annexes Services annexes B4_longlist: clarification of use of table when more than 8 candidates fulfill the selection criteria B7_letternotshort: reminder of appeal possibilities B8_general conditions: art 9 deleted ”without giving notice”; article 17 added that the Consultant should be heard before ordering a replacement of staff; article 20 clarified the non- retroactivity rule for amendments; article 24 only travel time while on mission may be considered as working days; article 25 clarified the scope of verification by EU bodies; article 28 introduced the possibility for the Contracting Authority to require a change of auditors; article 30 clarifications concerning financial guarantees; article 35 clarification on suspensions; article 36 clarifications on termination by the Contracting Authority

EuropeAid Summary of main changes to the PRAG ANNEXES Services annexes B8_torfee: summary table for reports B8_contract: clarified instruction text on tax and customs arrangement; data protection clause revised B8_itt: clarified that, in all cases, individual visits by tenderers cannot be organised; experts may participate in other tender procedures but must notify if successful; clarified that cancellation may take place if award is not in compliance with sound financial management; data protection clause revised

EuropeAid Summary of main changes to the PRAG ANNEXES Services annexes B8_tenderform: expert must state which other tender procedures he/she is tendring for in parallell and must accept first offer given chronologically B8_expver: clarification of audit of per diems B13_letterunsucc: clarification that resons must be given for administrative non-compliance; reminder of the appeal possibilities B16_addendum: clarification that the addendum forms an internal part of the contract

EuropeAid Summary of main changes to the PRAG ANNEXES Supplies annexes C2_procnotice: revised eligiblity rules for EDF; clarification of the drafting of selection criteria C4_generalcond: article 6 addition of situations of underperformance of subcontractors, article 9 precision on administrative orders and clarification of the obligations of the contractor, article 11 included a provision that performance guarantees are subject to the contracting authority’s approval, article 22 clarification that any variation must respect the procurement thresholds laid down in the PRAG, article 26 precisions regarding the pre-financing guarantee, article 36 clarifications concerning suspension and termination by the contracting authority

EuropeAid Summary of main changes to the PRAG ANNEXES Supplies annexes C4_contract: revision of the rules of origin for EDF; revision of the data protection clause C4_itt: introduced ”unloading” as an option for supplies to be delivered; revised eligiblity rules for EDF; clarification of delivery address of tenders and opening hours, reminded that in all cases, individual site visits cannot be organised; cancellation may occur where the award is not in compliance with sound financial management; revised data protection clauses.

EuropeAid Summary of main changes to the PRAG ANNEXES Works annexes D2_procnotice: revision of the rules of origin for EDF D4_generalconditions: article 7 addition of situations of underperformance of subcontractors, article 12 clarification of the obligations of the contractor, article 38 clarifications concerning suspension, article 40 clarification of rules of origin for goods, article 44 included the final statement of accounts, article 64 clarifications concerning termination by the contracting authority, article 71 clarifications concering the scope of audits by EU bodies

EuropeAid Summary of main changes to the PRAG ANNEXES Works annexes D4_contract: revision of the data protection clause D4_finoffer 4.1: clarification of terminology (lump sums contracts and price schedule for unit price contracts etc) D4_finoffer 4.2: new template for lump sum contracts D4_finoffer 4.3 new template for unit price contracts

EuropeAid Summary of main changes to the PRAG ANNEXES Works annexes D4_itt: revised eligibility rules and rules of origin for EDF; clarification on the drafting of selection criteria; data protection clause revised D4_specialconditions: revised eligibility rules and rules of origin for EDF; D8_letterunsuccessful: reminder of appeal possibilities D11_addendum: reminder that the addendum forms an integral part of the contract

EuropeAid Summary of main changes to the PRAG ANNEXES Grants annexes E3_a guidelines: new approach on co-financing (non- reclaimable taxes may be considered as beneficiary’s co- financing: introduction of a second percentage which refers to total accepted costs); definition of subgrantees; clarification of eligible and ineligible costs (notably concerning taxes), reminder that indirect costs may not include costs under other headings and that the beneficiary may be asked to justify the costs before the percentage is agreed in the contract; clarification and PADOR and the derogation procedure; precision of language to be used in case more than 1 is foreseen; Opening- and administrative check step merged with the concept note evaluation step;

EuropeAid Summary of main changes to the PRAG ANNEXES Grants annexes E3_a guidelines (cont.): modification of the evaluation procedure and grids for the concept note and the full proposal, clarification that updated indicative timetables shall be published on the website; new template for transfer of assets (when applicable) E3_b application form: adaptation to the new approach on cofinancing; revised data protection clause; instructions for the completion of the proposal redrafted in line with the new evaluation grids; clarification of the checklists; clarification of the assessment grids

EuropeAid Summary of main changes to the PRAG ANNEXES Grants annexes E3_c budget: new worksheets for justification of costs and use of contingencies; adaptation to the new approach on co- financing E3_h 1 specialconditions: adaptation to the new approach on co-financing; clarification on payments for option 2; revised data protection clause

EuropeAid Summary of main changes to the PRAG ANNEXES Grants annexes E3_h 2 generalconditions: article 1 clarification of conclusion of contracts and sub-granting; article 6 inclusion of some key elements of the communication plan; article 7 clarification of ownership and use of results; article 14 clarification of costs; article 15 clarification of the 70% rule and interests on pre-financing; article 16 clarification of the scope of audits by EU-bodies; article 18 clarification concerning recoveries. E3_h 7 financial report: inclusion of heading “Ineligible costs” in final report.

EuropeAid Summary of main changes to the PRAG ANNEXES Grant annexes E3_h 8 expendverif: clarification of IFAC Code of ethics; Clarification of auditor signature (who signs, date and address. E3_h10 transfassets: new template for obligation of transfer of assets (Article 7 GC). E5_a conceptevalgrid: new grids for evaluation of concept notes.

EuropeAid Summary of main changes to the PRAG ANNEXES Grant annexes E5_b_propevalgrid: new approach to co-financing in the identification data table; new grids for evaluation of full proposals. E6_a_opening+conceptevalrep: Opening and administrative check step merged with the concept note evaluation step; new criteria for full proposal evaluation E6_b_applicevalrep: Opening and administrative check step merged with the full proposal evaluation step in restricted calls; clarification of administrative check of full proposal in open proposals.

EuropeAid Summary of main changes to the PRAG ANNEXES Grant annexes E6_c_finalevalrep: Step 3 of the procedure instead of 4 (Opening and administrative check step merged with the concept note evaluation). E8_note_delegation_evaluation: Opening and administrative check step merged with the concept note evaluation. E9_a_letter_step_1: New template for (positive and negative) letters to applicants after Step 1 (Opening and administrative check step merged with the concept note evaluation).

EuropeAid Summary of main changes to the PRAG ANNEXES Grant annexes E9_b_letter_step_2: New template for (positive /negative / reserve list) letters to applicants after Step 2 (Full proposal evaluation). E9_c_letter_step 3: New template for (positive/negative/reserve list) letters to applicants after Step 3 (verification of eligibility). e11_publication: clarification publication is yearly.