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 Cyclus overviewCyclus overview General characteristicsGeneral characteristics Stages of the procurement proceduresStages of the procurement procedures TaxesTaxes

3. A T H E N A 3PROCUREMENT Procurement GuideProcurement Guide –Documentary Fiches and templates –Availability By end of MarchBy end of March Book, CDs, files, …Book, CDs, files, … www.athena.europa.euwww.athena.europa.euwww.athena.europa.eu Expected revision of the ATHENA procurement rulesExpected revision of the ATHENA procurement rules –Based on Public contracts in the field of defence and security –End of 2009 or 2010

4. A T H E N A 4 1. PROCUREMENT CYCLUS OVERVIEW 1. Request 1. Request 2. Make a commitment in the budget 2. Make a commitment in the budget (=reserve appropriations) 3. Draw up technical specifications (with responsible branch) 3. Draw up technical specifications (with responsible branch) Draw up administrative requirements (candidatescapacities) 4. Advertise 4. Advertise 5. Select successful candidate 5. Select successful candidate 6. Conclude a contract 6. Conclude a contract 7. Check delivery 7. Check delivery 8. Enter in the inventory 8. Enter in the inventory 9. Pay against receipt 9. Pay against receipt 10. Write off

5. A T H E N A 5 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 –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 1. PROCUREMENT CYCLUS OVERVIEW

6. A T H E N A 6 3.a. Technical specifications: –essential, even if takes time –equirements 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) 1. PROCUREMENT CYCLUS OVERVIEW

7. A T H E N A 7 4. 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.) 1. PROCUREMENT CYCLUS OVERVIEW

8. A T H E N A 8 5. 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) 1. PROCUREMENT CYCLUS OVERVIEW

9. A T H E N A 9 5. 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 1. PROCUREMENT CYCLUS OVERVIEW

10. A T H E N A 10 6. 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) 1. PROCUREMENT CYCLUS OVERVIEW

11. A T H E N A 11 7. 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 1. PROCUREMENT CYCLUS OVERVIEW

12. A T H E N A 12 8. 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 1. PROCUREMENT CYCLUS OVERVIEW

13. A T H E N A 13 9. 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) 1. PROCUREMENT CYCLUS OVERVIEW

14. A T H E N A 14 10. 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 1. PROCUREMENT CYCLUS OVERVIEW

15. A T H E N A 15PROCUREMENTAGENDA Cyclus overviewCyclus overview General characteristicsGeneral characteristics –Framework –Choice of the procedure –Time-lines –Publication –Deviations Stages of the procurement proceduresStages of the procurement procedures TaxesTaxes

16. A T H E N A 16 2. GENERAL CHARACTERISTICS A. Framework Reference:ATHENA Financial Rules 2006 – Part II (based on EC Directive 2004/18) Applicable except for Berlin + operations (NATO rules!) To procure what? –Anything eligible as common costs or « Nation Borne Costs » No authority to contract outside ATHENAs scopeNo authority to contract outside ATHENAs scope => ex: Oursourcing of military capabilities (guards, …) Request by Operation Commander to Special CommitteeRequest by Operation Commander to Special Committee No outsourcing of military capabilities before authorization granted by Special CommitteeNo outsourcing of military capabilities before authorization granted by Special Committee

17. A T H E N A 17 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

18. A T H E N A 18 2. 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

19. A T H E N A 19 2. 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

20. A T H E N A 20 Thresholds (VAT excluded) Standard proceduresPossible procedures with a specific prior authorization referred to in Part II Art 6 Up to 30.000 EURA. Whenever possible, negotiated procedure with or without prior publication but with the consultation of at least 3 candidates, or B. Where not possible, single source procedure without prior publication - Up to 137.000 EUR for services and supplies listed at Annex I A. Open or restricted tender procedure, orA. Single source procedure (cases referred to in Part II Art 9) - Up to 211 000 euros for other purchases - Up to 5.278.000 EUR for public works B. Negotiated procedure with or without prior publication but with the consultation of at least 3 candidates

21. A T H E N A 21 Thresholds (VAT excluded) Standard proceduresPossible procedures with a specific prior authorization referred to in Part II Art 6 Above the thresholds mentioned above A. Open or restricted tender procedure, or A. Negotiated procedure with prior publication and whenever possible with the consultation of at least 3 candidates (cases referred to in Part II Art 8), or B. Dynamic purchasing system, or B. Negotiated procedure without prior publication and whenever possible with the consultation of at least 3 candidates being consulted, but single source if necessary (cases referred to in Part II Art 9) C. Competitive dialogue Whatever the threshold, if secret, special security measures, protection of essential interests of the EU or its Member States (Special cases referred to in Part II Art 11) Standard procedure, based on estimated value To be determined through prior specific authorization

22. A T H E N A 22 2. 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

23. A T H E N A 23 SOP « Time-lines » (Extract) 2. With / Without pre- information notice or With a specific prior authorization Time-limits are subject to the procedure chosen and the potential use of the electronic support Open Procedure & Competitive Dialogue Tenders A. WITHOUT 1. Ordinary delay 52 days (II 33.3) Pre-information 2. Where notice transmitted to EU Official Journal by electronic means- 7 days (II 10.1) notice 3. Where electronic access by candidates to tender documents (Internet) - 5 days (II 10.2) Minimum time limit40 days B. WITHMinimum time limit22 days C. With a specific prior authorization Minimum time limits in case of urgency 10 days (II 10.3)

24. A T H E N A 24 2. 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

25. A T H E N A 25 2. 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

26. A T H E N A 26 2. 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

27. A T H E N A 27PROCUREMENTAGENDA Cyclus overviewCyclus overview General characteristicsGeneral characteristics –Framework –Choice of the procedure –Time-lines –Publication –Deviations Stages of the procurement proceduresStages of the procurement procedures –Generic procedural steps and activities –Workflow (example) TaxesTaxes

28. A T H E N A 28 CYCLUS OVERVIEW (10 steps) (from the request to the potential write-off) GENERIC PROCUREMENT ACTIVITIES 3. STAGES of the PROCUREMENT PROCEDURES

29. A T H E N A 29 Ex-ante publicity (not mandatory)Ex-ante publicity (not mandatory) –Pre-information notice –Call for expression of interest Preparation of the tender documentsPreparation of the tender documents –Tender specifications Subject of the contract and specificationsSubject of the contract and specifications Eligibility to participate in the tendering procedureEligibility to participate in the tendering procedure Exclusion, selection and award criteriaExclusion, selection and award criteria Terms of the contract including paymentsTerms of the contract including payments Volume of the contract, price and guaranteesVolume of the contract, price and guarantees –Draft contract –Invitation to tender or to negotiate 3. STAGES of the PROCUREMENT PROCEDURES

30. A T H E N A 30 Contract noticeContract notice –Scope and content –Arrangements for publication From the launching of the call for tenders to the deadlineFrom the launching of the call for tenders to the deadline –Receipt of requests to participate –Selection of candidates –Dispatch of tender documents –Receipt of tenders 3. STAGES of the PROCUREMENT PROCEDURES

31. A T H E N A 31 Opening and evaluation of tendersOpening and evaluation of tenders –Arrangements for opening and evaluating tenders –Opening and evaluation –Evaluation report and ranking of tenders/requests to participate Award of the contract and ex-post informationAward of the contract and ex-post information –Award decision –Notification of the award decision –Signature of the contract –Information for candidates and tenderers –Publication of an award notice –Potential request for additional information 3. STAGES of the PROCUREMENT PROCEDURES

32. A T H E N A 32PROCUREMENTAGENDA Cyclus overviewCyclus overview General characteristicsGeneral characteristics –Framework –Choice of the procedure –Time-lines –Publication –Deviations Stages of the procurement proceduresStages of the procurement procedures –Generic procedural steps and activities –Workflow Extract from the Procurement GuideExtract from the Procurement Guide Example of the Open procedureExample of the Open procedure TaxesTaxes

33. A T H E N A 33

34. A T H E N A 34PROCUREMENTAGENDA Cyclus overviewCyclus overview General characteristicsGeneral characteristics –Framework –Choice of the procedure –Time-lines –Publication –Deviations Stages of the procurement proceduresStages of the procurement procedures TaxesTaxes

35. A T H E N A 35TAXES 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

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