1. 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 PRAG Supply Contracts Training 29-31 March 2011 PRAG Procurement Supply Contracts – version November 2010 Advance module – Day II RCP-CIC By: Berk Babila, Managing Director - Ecorys in Turkey berk.babila@ecorys.com.tr Ankara, 30 March 2011

2. 2 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Content 1.Contract Forecast Notices 2.Procurement Notices 3.Parts of Tender Dossier for a Supply Contract

3. 3 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Contract Forecast Notices Setting out the specific characteristics of the tender procedure For international open tender only  € 150 000 Publicity – to ensure the widest possible participation in competitive tendering and the requisite transparency Must give a brief indication of the subject and content of the tender concerned (Annex C1) Do not bind the CA to finance the contracts proposed ‘Prospective suppliers’ are not expected to submit tenders 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 Procurement Notice

4. 4 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Contract Forecast Notices (2) Checklist Conformity –Tender foreseen by OP and OIS? –Budget in line with OP and OIS? –Conditionality (if any) fulfilled? FN –Type of procedure? –Programme? –Financing? –CA? –Contract description short and clear and in line with OIS? –Intended time of publication? Realistic? Procurement Plan? –Legal Basis?

5. 5 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Exercise Contract Forecast Notice Preparing a Contract Forecast Notice

6. 6 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Procurement Notices Setting the framework For local (  € 60 000 but < € 150 000) and international (  € 150 000) open tenders At least 15 days before the intended date of publication, to allow for translations Must provide would-be suppliers with the information they need to determine their capacity to fulfil the contract in question Minimum deadline for submitting the tenders is 60 days from the publication in the OJ of the EU (30 days for local open tenders) If there will be any amendment to information in the PN, the CA sends a corrigendum with the changes to EC for publication EC will publish in 7 days after the request; the CA may extend the submission deadline, if necessary

7. 7 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Procurement Notices (2) Checklist Conformity –Tender is covered by OP and OIS? –Realistic timing? –Beneficiaries, objectives, scope, budget? –Conditionality (if any) fulfilled? –Suspension clause?

8. 8 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Procurement Notices (3) Checklist Procurement Notice –Ref. no., procedure, programme, financing, CA and contract reference/description in line with FN? –Tender divided into lots? Division (or non-division) logical and acceptable? –Min. 30 days between the FN and PN (only applicable for IOT) –Provisions in point 10 in-line with the no. of lots? Variant solutions allowed? –Tender Guarantee set at between 1% and 2% of the financial offer? –Performance Guarantee up to 10% of the contract value? –Maximum delivery period acceptable? –Any other selection criteria in point 16, apart from “compliance with formal, administrative and technical requirements”? If yes is it properly justified and acceptable? Does it hamper competition? –Legal basis in point 21 correct?

9. 9 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Selection Criteria General principles Clear and non-discriminatory regardless of the contract value and the type of procedure 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 (Annex B3) –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 (what type of documentary evidence required?) The selection criteria should be adapted to the nature, cost and complexity of the contract

10. 10 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Selection Criteria (2) AVOID! 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

11. 11 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Selection Criteria (3) Checklist 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 Examples of financial criteria for legal persons –the average annual turnover of the tenderer must exceed the annualised maximum budget of the contract; and –the averages of cash and cash equivalents at the beginning and end of year are positive

12. 12 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Selection Criteria (4) Checklist (2) Professional capacity of candidate –has sufficient ongoing staff resources and expertise to be able to handle the proposed contract Examples of professional criteria for legal persons –has a professional certificate appropriate to this contract, such as ; –at least staff currently work for the applicant in fields related to this contract; and –at least 20% of all staff working for the candidate this year in fields related to his contract are permanent.

13. 13 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Selection Criteria (5) Checklist (3) Technical capacity of candidate –has sufficient expertise and experience to be able to handle the proposed contract Example of technical criterion for legal persons –the candidate has worked successfully on at least project with a budget EUR in which were implemented during the following period: (This means that the project that the tenderer refers to could have been started/implemented/completed at any time during the indicated period but it does not necessarily have to be started and completed during that period, nor implemented during the entire period)

14. 14 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Exercise Selection Criteria Determining the selection criteria (Article 16 of the PN) and preparing the Procurement Notice

15. 15 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Documents Drafting the contents of the tender dossier 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 procedures to follow, the documents to provide, cases of non-compliance, award criteria, etc. representatives of the final beneficiaries should participate in the tender preparation at an early stage 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

16. 16 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts Content (in accordance with Annex C4) Letter of Invitation with –A. Instructions to Tenderers –B. Draft Contract and Special Conditions including annexes [Draft Contract, Special Conditions, General Conditions (I), Technical Specifications (II), Technical Offer (to be tailored to the specific project) (III), Budget Breakdown (Model Financial Offer) (IV), Forms (V), Tax and Customs Arrangements (VI)] –C. Further information [admistrative compliance grid, evaluation grid] –D. Tender Form for a Supply Contract

17. 17 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (2) A. Instructions to tenderers 1.Supplies to be provided 2.Timetable 3.Participation 4.Origin 5.Type of contract 6.Currency 7.Lots 8.Period of validity 9.Language of offers 10.Submission of tenders 11.Content of tenders 12.Pricing 13.Additional information before the deadline for submission of tenders 14.Clarification meeting / site visit 15.Alteration or withdrawal of tenders 16.Costs of preparing tenders 17.Ownership of tenders 18.Joint venture or consortium 19.Opening of tenders 20.Evaluation of tenders 21.Signature of the contract and performance guarantee 22.Tender Guarantee 23.Ethics clauses 24.Cancellation of the tender procedure 25.Appeals

18. 18 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (3) B. Draft Contract 1.Subject 2.Origin 3.Price 4.Order of precedence of contract documents

19. 19 PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (4) 2.Law applicable 4.Communications 6.Subcontracting 7.Supply of documents 8.Assistance with local regulations 9.Contractor's obligations 10.Origin 11.Performance guarantee 12.Insurance 13.Programme of implementation of the tasks (timetable) 14.Contractor's drawings 15.Tender prices B. Draft Contract: Special Conditions 16.Tax and customs arrangements 17.Patents and licences 18.Commencement order 19.Period of Implementation of the tasks 22.Variations 24.Quality of supplies 25.Inspection and testing 26.Methods of payment 28.Delayed payments 29.Delivery 31.Provisional acceptance 32.Warranty 33.After-sales service 40.Settlement of disputes

20. 20 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (5) B. Draft Contract and Special Conditions, including Annexes I. General Conditions II. Technical Specifications III. Technical Offer IV. Budget Breakdown/Model Financial Offer V. Forms (Performance/Pre-Financing Guarantee)

21. 21 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (6) B. Annex I – General Conditions Preliminary Provisions Obligations of the Contracting Authority Obligations of the Contractor Commencement of implementation of the tasks and delays Materials and workmanship Payments Acceptance and maintenance Breach of contract and termination Dispute Settlement Ethics Clauses

22. 22 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (7) B. Annex II/III – Technical Specifications/Technical Offer

23. 23 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (8) B. Annex IV – Budget Breakdown / Model Financial Offer

24. 24 PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (9) B. Annex V – Forms Model Performance Guarantee Pre-financing Guarantee Form Tender Guarantee Form Financial Identification Form Legal Entity File

25. 25 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (10) B. Annex VI – Tax and Customs Arrangements The contract is, exempt from all taxes and duties, pursuant to the provisions of Articles set out in the FA signed between Turkey and the EC in 2008, extract of Article 25 & 26 –value added tax (VAT) –special consumption tax (SCT) –motor vehicle tax –customs and import duties and levies and/or taxes of equivalent effect –However the contract is subject to stamp tax!

26. 26 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (11) C. Further information – Administrative Compliance Grid (to be tailored to the specific project)

27. 27 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (12) C. Further information – Evaluation Grid

28. 28 This project is co-financed by the European Union and the Republic of Turkey PRAG Supply Contracts Training 29-31 March 2011 Tender Dossier for Supply Contracts (13) D. Tender Form for a Supply Contract Submitted by Contact person Economic and financial capacity Staff resources Fields of specialisation Experience Tenderer’s declaration(s)