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

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Content Overview Commencement Delivery, Installation & Start-up Inspection & Testing Provisional Acceptance Warranty Final Acceptance Synchronization

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Introduction Supply contracts cover –Purchase, –Lease, –Rental or hire purchase, –With or without option to buy, of products (incidentally, including sitting and installation)

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

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Actors of Implementation Period ERA / Endrecipie nt Supply Contractor Developers Manufacturers Sub contractors Suppliers RCP-CID EUD Other 3rd parties EU EU Management and Audit Organisations Works Contractor Supervision Contractor TA Contract or

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Tools (Documentation) PRAG (Practical Guide to contract procedures on EU External Actions) Practical Guideline on IPA Project Implementation Contract IPA Turkey - RCOP Implementation Manual

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Practical Guideline on IPA Project Implementation Chapter 5- Implementation of supply contracts [ OA Article 5.4 ] Chapter 7- Financial management and regulations on tax exemptions [ OA Article 5.5 and 5.6 ] Chapter 8- Monitoring of projects/operations by ERAs [ OA Article 5.8 ] Chapter 9- Horizontal issues (Publicity, Controls, Auditing and Archiving) [OA Article 5.9 and 11]

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Let’s remember

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications To give instructions and guidance to contractors at the tendering stage about the nature of the tender they will need to submit To serve as the contractor's mandate during project implementation TS becomes annex of the eventual contract awarded as a result of the tender Thorough preparation of the TS is crucial for the ultimate success of the project

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications Specifics Must afford equal access for tenderers and not have the effect of creating unjustified obstacles to competitive tendering Clear, non-discriminatory and in proportion to the budget allocated for the project Define the characteristics required of a product with regard to the purpose for which they are intended by the CA

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications Characteristics to be defined –the quality levels; –environmental performance (taking into consideration the latest developments on the matter); –design for all requirements (including accessibility for disabled people, environmental aspects in accordance with the latest developments on the matter);

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY – the levels and procedures of conformity assessment, including environmental aspects; – fitness for use; – safety or dimensions, including, the sales name and user instructions, terminology, symbols, testing and test methods, packaging, marking and labelling (including environmental labelling, e.g. on energy consumption), production procedures and methods Technical Specifications

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Technical Specifications TS should clearly describe –What is required? –How much of every article is required? –Minimum quality standards? –When and where the supplies to be delivered? –Installation, training and after-sales service? –Warranty requirements, etc. The delivered equipment will... SAME..

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Contract Contract text (signatures) Special Conditions Annex I – General Conditions Annex II – Technical Specifications Annex III – Technical Proposal of the Contractor (Answers to Technical Specifications) Supporting documents for Technical Proposal of the Contractor (Catalogues, brochures, data sheets, etc.)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Basic Stages of a Supply Contract Commencement Manufacturing Delivery Installation/calibration Put into Operation/commissioning Training Inspection and Testing Warranty

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Special Stages for a Supply Contract Ancillary services Special design and production Development Customization Assembly at the site

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Financial Milestones for a Supply Contract Pre-financing (40%) Provisional Acceptance (60%) Final Acceptance (Releasing Performance Guarantee)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Commencement Special conditions Article 18, gives the commencement date, the starting date of implementation of a supply contract -When the contract is signed -On a definite and indicated further date -Depending to an other event or condition -Due to an administrative order issued by the OS/CA in a declared period

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Commencement Kick-off meeting (optional) - introduction of the contracting parties and their personnel who will be involved in the contract - reviewing the scope of contract - contract schedule and milestones - any changes of the delivery address(es) - any issues relating to proposed products’ availability by the Contractor - any issues relating to restrictions and special permissions regarding the products - any information or other assistance to be provided by the CA or ERA/End recipient to the Contractor, in accordance with the TS, field/place, current conditions and the time - other issues related with the specifics 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 Commencement Site visit - Physical conditions - Meteorological and geological conditions - Additional structural and infrastructural works - Transport, unloading and storage conditions - Reviewing the layout plan

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Implementation Programme Special Conditions_Article 13 Programme of implementation of the tasks (timetable) - Supply, delivery, unloading, installation, commissioning inspection and testing, and training must be completed within xx calendar days from the commencement date. - The Contractor shall be responsible for unpacking of the goods at Delivery Address and shall be ready for inspection and testing after completion of the delivery of supplies.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY - Inspection and testing shall be completed within xx calendar days after the tendered supplies have been physically delivered, installed and put into operation. - Provisional acceptance shall take place within xx calendar days after the request of Contractor following completion of delivery, installation, putting into operation, training, inspection and testing. - Final acceptance shall take place after formal request of Contractor following expiration of 12 months warranty period. After this Contractor’s warranty expires, the Contractor shall provide one year commercial warranty service as well. Implementation Programme

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Modifications Before the contract signature - Tender Dossier (Instructions to Tenderers) Article 21_Signature of the contract and performance guarantee (Sub Article 21.4) - Contract (Special Conditions) - Article 22_Variations The Contracting Authority reserves the right to vary the quantities specified for the following items at the time of contracting and during the validity of the contract within a range given in below table; The total value of the supplies may not rise or fall as a result of the variation in the quantities by more than 25% of the tender price. The unit prices used in the tender shall be applicable to the quantities procured under the variation. Lot/ Item NoDescriptionOriginal Quantity Maximum Increase Maximum Decrease

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Modifications Within implementation period (Before & after commencement) - Administrative and financial issues - Technical issues - Product end of life - Proof and documentary evidence - Has same or advantageous rule of origin conditions - Has same price of the replaced item and under the condition given in the contract - Same technical specifications and quality or better - Compatible with the overall system

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Delivery, Installation & Start-up Site availability Infrastructure conditions Security Respondent

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Training User / operator training Technician training

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Inspection and Testing Who does? - Inspection and testing team(s) - Provisional Acceptance Committee What is to be checked? - Item exist, not damaged and operational, unused - Has same brand and model with the Contract by also considering any approved modifications - Has same or better technical specifications with the Contract by also considering any approved modifications - Has same or better performance with the Contract by also considering any approved modifications - Includes all the accessories and documents indicated 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 Provisional Acceptance The Provisional Acceptance Committee Established by ERA according to internal procedure There is no restriction in number At least three people are preferable and for complex supplies it may be increased to five Tools for the Provisional Acceptance Committee Inspection and test reports Any approved modifications Contract

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Provisional Acceptance What is to be checked by the Provisional Acceptance Committee Inspection and testing results Validity and verification of supplies in quantities Availability of the supplies in the delivery address Rule of origin of the supplies Visibility rules Over all functioning of the systems (whole system) - Different test scenarios (performance, stress, recovery, reliability, etc.)

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Provisional Acceptance Partial acceptance Conditional acceptance

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Provisional Acceptance What is the importance of Provisional Acceptance ? When the Provisional Acceptance become issued ?

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Warranty During Provisional Acceptance The Contractor shall warrant that the supplies are new, unused, of the most recent models and incorporate all recent improvements in design and materials. After Provisional Acceptance up to Final Acceptance The Contractor shall further warrant that none of the supplies have any defect arising from design, materials or workmanship. This warranty shall remain valid for one year after after provisional acceptance. After Final Acceptance In addition there will be commercial warranty after this Contractor’s warranty expires. The one (1) year commercial warranty documents should be accompanied with the documents for provisional acceptance.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Warranty Article 32 (Special Conditions & General Conditions) The Contractor shall at his own cost replace defective or damaged equipment/parts during the warranty period. The Contractor has to troubleshoot the problem within xx working days of the request, overcome the problem and re-integrate to the system within maximum xx working days from the call of service. If the reparation of broken equipment/part is not possible, Contractor shall replace that equipment/part with another equipment/part. No additional cost will be borne by the Contracting Authority or the Beneficiary. The Contractor shall response at site within xx days during warranty period. The Contractor shall remain fully responsible for all warranty obligations even when some of the equipment is obtained from a third party. In case a preventive maintenance session has to be executed then the Contractor shall inform the Beneficiary at least xx hours in advance of his intervention.

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Final Acceptance The Final Acceptance Committee Established by ERA according to internal procedure similar with the Provisional Acceptance Committee Tools for the Final Acceptance Committee Deficiency list detected during warranty Warranty conditions 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 Final Acceptance What is to be checked by the Final Acceptance Committee Deficiencies detected and actions taken by the Contractor during warranty period Satisfaction of warranty conditions of the Contract Availability of all the supplies in the installation address Functioning of all the supplies Over all functioning of the systems Any conditions set by the Provisional Acceptance Committee

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Synchronization Projects Prerequisite or parallel actions to be taken by other EU or differently financed projects; or by third party actors Components Output(s) of one Contract may be required as input(s) by other Contract Lots Dependencies

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Synchronization Always keep in mind Each Contract is a seperate document Each Contractor is responsible for his Contract Success of the Project is only possible with successful completion of all Contracts This is only possible with careful management and coordination of the Contracts

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Monitor the Contract with TS TS is used to assess and control the performance of the contractor TSR is used to legally enforce contract implementation if something goes wrong

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Main responsibilities of ERAs during Contract Management

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Hosting, organising (if needed) and participating in kick off meeting and any other meetings conducted during implementation period of Supply Contract; Participating in on-the-spot checks and site visits initiated by the CA; Monitoring the projects’ delivery installation, testing, inspection, training.. Ensuring that the Contractor performs the tasks in accordance with the pre-defined deadlines and to the standard of quality required in the TS;

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Notifying the CA about difficulties, deficiencies, on-performance or suspect of irregularity during contract implementation; Issuing (suggesting/approving/rejecting) the contract modification requests (Addendum/Administrative Orders) if needed;

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Acceptance of the equipment delivered; Monitoring testing and inspection Participating in the trainings defiend in the Contract Establishing the provisional and final acceptance committies when required by the CA

This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY Critical... Ensure the synchronisation of Supplies with other components of the Project (services and works)

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