1. A T H E N A 1 E UROPEAN U NION ATHENA ATHENA 2009 2009 E UROPEAN U NION ATHENA ATHENA 2009 2009 Council decision 2008/975/CFSP of 18 December 2008 ( OJ 23/12/2008 L 345/96 )

2. A T H E N A 2PROCUREMENTAGENDA General characteristicsGeneral characteristics –Framework –Choice of the procedure –Time-lines –Publication –Deviations Procurement stepsProcurement steps TaxesTaxes

3. A T H E N A 3 1. GENERAL CHARACTERISTICS A. Framework Reference:ATHENA Financial Rules 2006 – Part II (based on EC Directive 2004/18) Applicable except for Berlin + operations (See Part IV) To procure what? –Anything eligible as common costs or « Nation Borne Costs » See ATHENA Annexes and Special Committee decisionsSee ATHENA Annexes and Special Committee decisions No authority to contract outside ATHENAs scopeNo authority to contract outside ATHENAs scope Otherwise: Illegality of the actOtherwise: Illegality of the act –Ex:No outsourcing of military capabilities before authorization granted by Special Committee

4. A T H E N A 4 Request to procure New ATHENA procurement procedure Valid Administrative arrangement Contract already awarded by a MS, an EU Institution, an International organisation or a Central Purchasing body Purchase may be through Request for derogation to the Special Committee Nature of the envisaged procurement Envisaged purchase is eligible for common funding or considered as Nation Borne Cost Outsourcing of military capabilities Authorization granted by the Special Committee Sufficient appropriations are available in the budget

5. A T H E N A 5 1. GENERAL CHARACTERISTICS Procedures choice, Time-lines and Deviations Estimated value Thresholds Possible Procedures Time-lines Operational Impact Derogation

6. A T H E N A 6 1. GENERAL CHARACTERISTICS Procedures choice, Time-lines and Deviations { [Min – Max] Value, Possible Procedure(s),{ [Min – Max] Value, Possible Procedure(s), Potential Procedure(s) obtained via a Derogation } Potential Procedure(s) obtained via a Derogation } { Type of Procedure, Normal Delays,{ Type of Procedure, Normal Delays, Minimum Time-lines obtained by a Derogation } Minimum Time-lines obtained by a Derogation }

7. A T H E N A 7 1. GENERAL CHARACTERISTICS B. Procedures choice Applicable procedure determined by:Applicable procedure determined by: –estimated cost excluding VAT, no splitting –thresholds –Lower Threshold: 30.000 EUR –Higher Threshold: 137.000 EUR for services for supplies listed at Annex 211.000 EUR for other supplies 5.278.000 EUR for public works for supplies listed at Annex 211.000 EUR for other supplies 5.278.000 EUR for public works Deviations: for simpler procedure, if admissible justificationsDeviations: for simpler procedure, if admissible justifications

8. A T H E N A 8 1. GENERAL CHARACTERISTICS Usual procedures iaw thresholds X < 5000 euros: payment on invoices possible (Imprest accounts)X < 5000 euros: payment on invoices possible (Imprest accounts) (5000 <) X < 30 000 euros (« lower threshold »):(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 »30 000 euros < X < « higher threshold » –negotiated procedure with 3, –but negotiated procedure with 1 possible with formal derogation Above the « higher threshold »:Above the « higher threshold »: 137 / 211 keuros for services and goods, 137 / 211 keuros for services and goods, 5, 278 Meuros for infrastructure works –tenders, except where formal derogation (Open / Restricted Procedures)

9. A T H E N A 9 1. GENERAL CHARACTERISTICS C. Normal Deadlines Open tenderOpen tender - Without pre-information notice: 52 days or 40 if electronic means (Internet) 52 days or 40 if electronic means (Internet) - With pre-information notice: 22 days if Prior information notice 22 days if Prior information notice Restricted ProceduresRestricted Procedures - Without pre-information notice 37 days for requests to participate or 30 if Internet 37 days for requests to participate or 30 if Internet 40 days to receive tenders or 35 days if Internet 40 days to receive tenders or 35 days if Internet - With pre-information notice 37 days for requests to participate or 30 if Internet 37 days for requests to participate or 30 if Internet 22 days to receive tenders or 17 days if Internet 22 days to receive tenders or 17 days if Internet Negotiated procedure with publication of a contract noticeNegotiated procedure with publication of a contract notice - Without pre-information notice: 37 days for requests to participate or 30 days if e-mail 37 days for requests to participate or 30 days if e-mail See « Procurement Guide – Time-lines »

10. A T H E N A 10 1. GENERAL CHARACTERISTICS D. Publication Above « higher threshold »:Above « higher threshold »: –in the EU Official Journal –Can be done also in theatre (local press, chambers of commerce) Below « higher threshold »:Below « higher threshold »: –Appropriate means (local press, …) –Could be done also in the EU Official Journal What to publish?- Prior information noticeWhat to publish?- Prior information notice - Call for expression for interests - Contract notice - Award notice

11. A T H E N A 11 1. GENERAL CHARACTERISTICS E. Deviations For what:For what: -For any simpler procedure, including single source -For shortened deadlines -To receive the applications:15 days -To receive the tenders:10 days -For publication or geographical scope, … Above 30 000 euros (formal justification needed)Above 30 000 euros (formal justification needed) Which authority?Which authority? - 30 000 < X < 137 000 EUR:J8 -137 000 < X < 1 M EUR:ATHENAs administrator - >1 M EUR:ATHENAs Special Committee through the administrator through the administrator Requests: from J8 to administrator by e-mailRequests: from J8 to administrator by e-mail

12. A T H E N A 12 1. GENERAL CHARACTERISTICS Which justifications for derogations? (most frequently used) Extreme urgencyExtreme urgency When for technical or artistic reasons, the contract may be awarded only to one particular operator (ex: public monopolies)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 buildingsAcquisition or rental of land or existing buildings Additional supplies, where a change in supplier would create technical difficulties (incompatibility, problems in maintenance)Additional supplies, where a change in supplier would create technical difficulties (incompatibility, problems in maintenance) Additional works or services, not exceeding 50% of initial worksAdditional works or services, not exceeding 50% of initial works Use of a national contract, awarded in conformity with EC DirectivesUse of a national contract, awarded in conformity with EC Directives

13. A T H E N A 13PROCUREMENTAGENDA General characteristicsGeneral characteristics –Framework –Choice of the procedure –Time-lines –Publication –Deviations Procurement stepsProcurement steps TaxesTaxes

14. A T H E N A 14 2. PROCUREMENT STEPS 1. Request 1. Request 2. Make a commitment in the budget 2. Make a commitment in the budget 3. Draw up technical specifications & administrative requirements 3. Draw up technical specifications & administrative requirements 4. Determination of the procedure and impact on the delivery 4. Determination of the procedure and impact on the delivery 5. Advertise 5. Advertise 6. Select successful candidate 6. Select successful candidate 7. Conclude a contract 7. Conclude a contract 8. Check delivery 8. Check delivery 9. Enter in the inventory 9. Enter in the inventory 10. Pay against receipt 10. Pay against receipt 11. Write off 11. Write off

15. A T H E N A 15 1.To receive a request –Collaboration between J* –Approval of the request by the Authorizing Offr 2.Make a commitment in the budget –temptation for every section (J1, J4, J6) to buy and then bring the bill, especially early in operation –= reservation in the budget –should be avoided: budget is a limit and must be complied withbudget is a limit and must be complied with budget must be managed: redeployment of appropriations during operation are usually necessarybudget must be managed: redeployment of appropriations during operation are usually necessary therefore, sequence « budget commitment then contract or purchase order » should be complied withtherefore, sequence « budget commitment then contract or purchase order » should be complied with 2. PROCUREMENT STEPS

16. A T H E N A 16 3.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 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) 2. PROCUREMENT STEPS

17. A T H E N A 17 4.Determination of the procedure 2. PROCUREMENT STEPS Regulation Type of Procedure Delays Date of delivery Potential Derogation

18. A T H E N A 18 5. Advertise –If above the « higher threshold » and no deviation: in the Official Journal of the European Unionin the Official Journal of the European Union –If below the « higher threshold » or with a deviation: advertise by any means:advertise by any means: –local chamber of commerce, confederation of industry –local press can resort to existing listscan resort to existing lists (provided by Embassy, Commission delegation, etc.) 2. PROCUREMENT STEPS

19. A T H E N A 19 6. Select the successfull candidate –If above the « higher threshold » and no deviation: formal tender (double sealed envelopes)formal tender (double sealed envelopes) –If below the « higher threshold » or with a deviation: negotiated procedure:negotiated procedure: negotiate price & services, works, suppliesnegotiate price & services, works, supplies –In any case selection committee: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) 2. PROCUREMENT STEPS

20. A T H E N A 20 6. 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 2. PROCUREMENT STEPS

21. A T H E N A 21 7. 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 candidateNotify successful candidate Inform othersInform others Enter into accounts (legal commitment)Enter into accounts (legal commitment) 2. PROCUREMENT STEPS

22. A T H E N A 22 8. Check delivery -If works or services: performance must be monitored closely & continuouslyperformance must be monitored closely & continuously conformity to contract must be assessedconformity to contract must be assessed -If supplies: delivery and conformity to contract must be assesseddelivery 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 2. PROCUREMENT STEPS

23. A T H E N A 23 9. Enter in the inventory –Must be done immediately on acceptance Responsible branches must be made awareResponsible 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 durabilityNot based on the value, but on normal durability & in accordance with the accounting policy (eg: portable phones should be on the inventory) –Should contain: –description of items –location/person responsible –date of acceptance –purchase cost 2. PROCUREMENT STEPS

24. A T H E N A 24 10. 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) 2. PROCUREMENT STEPS

25. A T H E N A 25 11. 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: HQs commander may decide a write off –> 30 000 euros:HQs commander may decide with written assent of Write Off Committee –In case of loss or destruction: report filed by J8 and write off 2. PROCUREMENT STEPS

26. A T H E N A 26PROCUREMENTAGENDA General characteristicsGeneral characteristics –Framework –Choice of the procedure –Time-lines –Publication –Deviations Procurement stepsProcurement steps TaxesTaxes

27. A T H E N A 27 3. TAXES 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

28. A T H E N A 28PROCUREMENTAGENDA General characteristicsGeneral characteristics –Framework –Choice of the procedure –Time-lines –Publication –Deviations Procurement stepsProcurement steps TaxesTaxes In SUMMARY

29. A T H E N A 29 ATHENA Procurement Rules Procedures Derogation Contracts Preparation Conduct of the Procurement process Contracts Execution Time-lines …

30. A T H E N A 30 ATHENA Procurement Rules ATHENA:ATHENA: –Procedure > « Higher Treshold »:> « Higher Treshold »: –Open or Restricted Procedure < « Higher Threshold »< « Higher Threshold » –Negoctiated Procedure »With or without Publication »Consultation of at least 3 candidates –Delays induced by the Procedure chosen –Potential use of Deviations Autority to grant determined by ThresholdsAutority to grant determined by Thresholds Ex: Procedure, Time-line, Publication, …Ex: Procedure, Time-line, Publication, … Contract Preparation and execution:Contract Preparation and execution: –Like in the National organisations –Ex: Correct specifications, contract in writing, reception of the goods before final payment, …

31. A T H E N A 31PROCUREMENT Expected revision of the ATHENA procurement rulesExpected revision of the ATHENA procurement rules –Based on: Lessons identified during EU operationsLessons identified during EU operations New directive on Public contracts in the field of defence and securityNew directive on Public contracts in the field of defence and security –Beginning of 2010 Procurement GuideProcurement Guide –Documentary Fiches and templates –Availability Book, files, …Book, files, … www.athena.europa.euwww.athena.europa.euwww.athena.europa.eu

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