1. A T H E N A 1 E UROPEAN U NION ATHENA ATHENA 2008 2008 E UROPEAN U NION ATHENA ATHENA 2008 2008 Council decision 2007/384/CFSP of 14 May 2007 ( OJ 13/06/2007 L152/14 )

2. A T H E N A 2PROCUREMENT Reference: ATHENA Financial Rules – Part II Applicable except for Berlin + operations (NATO rules!) To procure what? –anything eligible as common costs or « Nation Borne Costs » →No authority to contract outside ATHENA’s scope –Oursourcing of military capabilities (for ex: guards) →Request by Operation Commander to Special Committee →No outsourcing of military capabilities before authorization granted by Special Committee

3. A T H E N A 3PROCUREMENTPROCEDURES Applicable procedure determined by cost of purchase: –estimated cost excluding VAT, no splitting –thresholds Deviations: for simpler procedure, if admissible justifications

4. A T H E N A 4PROCUREMENT Procedures iaw thresholds X < 5000 euros: payment on invoices possible 5000<X<30 000 euros (« lower threshold »): –negotiated procedure with 3, –but J8 may opt for negotiated procedure with 1, without formal derogation 30 000 euros<X<« higher threshold » –negotiated procedure with 3, –but negotiated procedure with 1 possible with formal derogation Above the « higher threshold »: –137 keuros for goods, 211 keuros for services, 5. 278 Meuros for infrastructure works –tenders, except where formal derogation

5. A T H E N A 5PROCUREMENTPublication Above « higher threshold »: in the EU Official Journal Encouraged below this « higher threshold » Can be done also in theatre (local press, chambers of commerce) What to publish?- Prior information notice - Call for expression for interests - Contract notice - Award notice

6. A T H E N A 6PROCUREMENT NORMAL DEADLINES Open tenders - 52 daysOpen tenders - 52 days - or 40 if e-mail and internet - (or 22 if Prior information notice) Restricted Procedures- 37 days for requests to participateRestricted Procedures- 37 days for requests to participate - or 30 days if e-mail + 40 days to receive tenders - or 35 if internet Negotiated procedure with publicationNegotiated procedure with publication - 37 days for requests to participate - or 30 days if e-mail

7. A T H E N A 7PROCUREMENTDEVIATIONS -For any simpler procedure, including single source -For shortened deadlines -Above 30 000 euros -Which authority? -30 000<X<137 000 euros: J8 -137 000<X<1 Meuros: ATHENA’s administrator ->1 Meuros: ATHENA’s Special Committee through the administrator -Requests: from J8 to administrator by e-mail

8. A T H E N A 8PROCUREMENTDEVIATIONS SHORTENED DEADLINES Restricted procedures and negotiated procedures with prior publication To: 15 + 10 days For negotiated procedure without publication: free

9. A T H E N A 9PROCUREMENT Which justifications for derogations? (most frequently used) –Extreme urgency -When for technical or artistic reasons, the contract may be awarded only to one particular operator (ex: public monopolies) -Acquisition or rental of land or existing buildings -Additional supplies, where a change in supplier would create technical difficulties (incompatibility, problems in maintenance) -Additional works or services, not exceeding 50% of initial works -Use of a national contract, awarded in conformity with EC Directives

10. A T H E N A 10PROCUREMENT For every procedure, main steps: 1) Make a commitment in the budget (=reserve appropriations) 2) Draw up technical specifications (with responsible branch) Draw up administrative requirements (candidates’capacities) 3) Advertise 4) Select successful candidate 5) Conclude a contract 6) Check delivery 7) Enter in the inventory 8) Pay against receipt 9) Write off

11. A T H E N A 11PROCUREMENT 1)Make a commitment in the budget –temptation for every section (J1, J4, J6) to buy and then bring the bill, especially early in operation –should be avoided: –budget is a limit and must be complied with –budget must be managed: redeployment of appropriations during operation are usually necessary –therefore, sequence « budget commitment then contract or purchase order » should be complied with

12. A T H E N A 12PROCUREMENT 2) a) Technical specifications: – essential, even if takes time –requirements must be proportionate to needs and duration of operation (principle of economy) –requirements must be sufficiently detailed 2) b) Administrative requirements: –candidates capacity to do the job essential, especially in theatre –security requirements –performance guarantee: –compulsory if pre-financing exceeds 150 000 euros or contact above 137 000 euros (5 to 10% of contract)

13. A T H E N A 13PROCUREMENT 3) Advertise –If above the « higher threshold » and no deviation: →in the Official Journal of the European Union –If below the « higher threshold » or with a deviation: →advertise by any means: –local chamber of commerce, confederation of industry –local press →can resort to existing lists (provided by Embassy, Commission delegation, etc.)

14. A T H E N A 14PROCUREMENT 4) Select the successfull candidate –If above the « higher threshold » and no deviation: →formal tender (double sealed envelopes) –If below the « higher threshold » or with a deviation: →negotiated procedure: →negotiate price & services, works, supplies –In any case →selection committee: –appointed by authorising officer (Operation Commander, by delegation: local J8) –at least 3 persons from 2 different sections of the HQ concerned (J8+technical branch concerned)

15. A T H E N A 15PROCUREMENT 4) Select the successfull candidate (continued) Criteria: –either the lowest price –should be the rule –or the best-value-for-money –taking into account notably the capacity to do the job within the timeframe –must be specified in the specifications –report on procedure, including reasons for selection

16. A T H E N A 16PROCUREMENT 5) Conclude a contract –in writing (to avoid doubts and conflicts) –2 possible forms: –either a single document signed by the parties –or a signed commitment from the candidate (offer, acceptance of the conditions set out by the contracting authority), signed by the contracting authority Notify successful candidate Inform others Enter into accounts (legal commitment)

17. A T H E N A 17PROCUREMENT 6) Check delivery -If works or services: →performance must be monitored closely & continuously →conformity to contract must be assessed -If supplies: →delivery and conformity to contract must be assessed -In any case, delivery and acceptance of the works, services or supplies must be certified (by the technical branch concerned) before final payment may be made

18. A T H E N A 18PROCUREMENT 7) Enter in the inventory –Must be done immediately on acceptance →Responsible branches must be made aware –All items with a period of use normally greater than one year →Not based on the value, but on normal durability (eg: portable phones should be on the inventory) –Should contain: –description of items –location/person responsible –date of acceptance –purchase cost

19. A T H E N A 19PROCUREMENT 8) Pay –Payments may be made: – on account (upon ordering, before work starts) –as interim payments (usually according to progress) –of the balance due after acceptance. –Payments on account should be kept minimal –Interim payments should be made based on acceptance of partial delivery or progress made –Final balance may be paid only after final acceptance –Two signatures required for any payment (authorizing officer + accounting officer)

20. A T H E N A 20PROCUREMENT 9) Write off –Distinct from final destination of equipment, to be decided by Special Committee, at end of operation –In every HQ, a write-off committee: –the head of the J8 –the head of the branch responsible for the equipment –the head of the branch responsible for its maintenance –< 30 000 euros: HQ’s commander may decide a write off –> 30 000 euros:HQ’s commander may decide with written assent of Write Off Committee –In case of loss or destruction: report filed by J8 and write off

21. A T H E N A 21TAXES In theatre: -SOFA provides exemption from taxes, customs duties and customs procedures -Except where taxes for services rendered In the EU: -Decision by Member States = Treaty -Ratification

22. E UROPEAN U NION ATHENA ATHENA E UROPEAN U NION ATHENA ATHENA QUESTIONS ?