europeaid how can a private entity benefit from eu external action contracts ? riga, 24 september...

EuropeAid

How can a private entity benefit

from EU external action contracts?

Riga, 24 September 2010

Agneta Lindqvist

EuropeAid Cooperation, Unit G7

Resources

Financial and contractual matters and legal affairs

Photos external actions: copyright European Commission

EuropeAidSummary

• 1. Who manages the contracts? Which rules to follow?

• 2. Award procedures and publication requirements

• 3. Evaluation and contract award

• 4. Submission of the application or tender

• 5. Implementation of the EU contracts: payments, reporting, visibility etc.

• 6. Useful tips

EuropeAid

1Who manages the contract?

EuropeAidWho does what?

Multi-annualProgramming

Evaluation

Implementation Formulation

Identification

Financing

DG Development DG External Relations

DG ELARG

Joint responsibility

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Elarg

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Elarg

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Elarg

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Elarg

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Who manages?

executiveagencies

bodies set up byCommunities

"(tradit. agencies) "

bodies with a publicservice mission"(nat. agencies)"

centralisedjointly

with internationalorganisations

shared(MemberStates )

direct indirect

decentralised(Third

Countries)

EuropeAidEC External Actions

Instruments from 2007

Geographical coverage

• Pre-accession: IPA

• Neighbourhood: ENPI

• Development: DCI and EDF

• Industrialised countries: ICI

General coverage

• Thematic programmes (included in DCI)

• Human rights: EIDHR

• Stability: IFS

• Nuclear safety: NSI

• Humanitarian aid and Macro-financial aid

EuropeAidVolume of assistance 2008 Commitments in million €

• ENPI, South 1,165• ENPI, East 570• DCI, Latin America 348• DCI, Asia 840• DCI, 5 thematic programmes 740• EDF 4,890• Budget ACP 327• EIDHR 143• INSC 71• Ifs (part II) 38TOTAL 9.132

Total 7,690

EuropeAidWhat is a procurement contract?

-comparison with a grant

Procurement Grant

Purchase of

services/supplies/

works

Object -Action proposed by a potential beneficiary,

intended to achieve an EU-policy objective; or

-Functioning of a body

Contracting Authority Owner of

results

Grant beneficiary

100% Financial

contribution

Co-financing - % of total eligible costs

Reimbursement of the actual eligible cost

incurred

Tenders Procedure Calls for proposal

PROFIT NO PROFIT ALLOWED

EuropeAidELIGIBILITY – GENERAL PRINCIPLES

1) Thematic programmes (+ ACP)

2) Geographical programmes

1) Member States + European Economic Area + officially recognized candidate countries +

reciprocity cases + Developing countries (Annex 1 DCI Regulation) + international organisations

2) Member States + European Economic Area + officially recognized candidate countries +

reciprocity cases + Countries mentioned in the basic act or covered by the Instruments +

International organisations ----

a) Expert : any nationality b) Rules of origin: follow the eligibility

rules – possible derogationsc) Reciprocity : case by case (Australia;

automatic reciprocity Least Developed Countries)

EuropeAid

2Award procedures and publication requirements

EuropeAidWhere are the procedures described?

Practical Guide to contract procedures for EU External Actions

o Harmonisation of procedures

o Sole working tool

o Coherent application of rules

http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm

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EuropeAid Legal BasesBudget 10th EDF

Council regulationLegal base of programme

Financial Regulation

Comm decisionAIDCO Rules and Procedures

Comm regulationImplementing Rules of

FR

AIDCO decisionPractical Guides

(Contract/Finance/Programme estimates)

Instruction Notes

Cotonou Agreement

Internal Agreement

Council regulationFinancial Regulation

EuropeAidAward procedures & publication requirements - How to award a contract?

• Call for Tenders:

o Open or restricted - International/Localo Competitive Negotiated Procedureo FrameWorkContracto Single tenderso Competitive Dialogue

• Very detailed exceptions where direct award of contract may be allowed.

PRAG 6.3

EuropeAid> 200.000

International restricted

tender

< 200.000 but > 10.000 (BUD)

Rule: Framework contract

Exception: Comp neg proc

> 150.000

Open international tender

< 150.000 but > 60.000

Open local tender

< 60.000 but > 10.000

Comp neg proc

> €5.000.000

1. Open international

tender

2. Int. Res. Proc

<5.000.000 but>300.000

Open local tender

< 300.000 but > 10.000

Comp neg proc

Exceptional procedures: -competitive dialogue -negotiated procedure

WO

RK

SS

ER

VIC

ES

UP

PLY

< 10.000 S

ingle offer€

EuropeAidPublication

• Forecast

• Procurement Noticeo Launch the procedureo Content legally bindingo Deadline for replyo Defines criteria

• Award Notice

EuropeAidCriteria

• Exclusiono Bancruptcy, taxes…(art 93 FR)

• Selectiono Experience, financial capacity…(art 135-7 IR)

• Evaluationo Quality of offer (art 97 FR)

• Awardo Price, best value for money (art 138 IR)

EuropeAidPoint 21- Procurement Notice

1) Economic and financial standing of candidate

The average annual turnover of the candidate must exceed the annualised maximum budget of the contract

2) Professional capacity of candidate

At least 5 permanent staff members currently work in fields related to this contract.

3) Technical capacity of candidate

a) The candidate has worked successfully on at least one project with a budget of at least €500.000 in fields related to this contract in the past three years.

b) The candidate must have experience in …

If more than 8 eligible candidates:

a) Preference will be given to candidates that have managed projects with similar objectives within … sector of xyz country.

b) Highest number of project in 3 a)

EuropeAidService Contracts

International Restricted Procedure

• Publication *

• Shortlist *

• Tender launch

• Tenders received

• Evaluation

• Contract Award *

• Contract Signature *

* EC approval if decentralised ex-ante control

EuropeAidShortlist

• Selection criteria applied

• 4-8 companies will be invited to tender

• Result = Shortlist

• Report approved by Contracting Authority

SERVICES

EuropeAidTender Launch

• Dispatch Tender Dossier

• Unsuccessful candidates informed + publication of shortlist notice

• Deadline for Submission = min. 50 days

• Questions 21 days – Answers 11 days

• Tenders are valid 90 days

SERVICES

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3Evaluation and contract award

EuropeAidEvaluation

Odd number of voting members + secretary + chairperson

Held “in camera” in 5 phases:

o Tender Opening Sessiono Administrative complianceo Technical Evaluationo Financial Evaluationo Conclusion

EuropeAidTender Opening Session

• Not public

• Declarations of impartiality & confidentiality

• Double Envelope System

• Check offers arrive sealed and within deadline

• Tender Opening Report

SERVICES

EuropeAidAdministrative Compliance

• Fill in Administrative Compliance Grido Documentation complete as requiredo Evidence exclusion criteriao Nationality of Sub-Contractors

• May request clarifications

SERVICES

EuropeAidTechnical Evaluation

• Individual Evaluation Grids

• Evaluators give scores and comments

• Calculate average score for each offer

• Interviews if 80 of more

• Calculates technical score only if average >80

• Technical score = average score x 100

• Highest scoring tender = 100 points

highest score

SERVICES

EuropeAidFinancial Evaluation

• Open financial envelopes• Check arithmetical errors• Financial offer within maximum budget• Financial score = lowest fees x 100

• Cheapest offer = 100 points

actual fees

SERVICES

EuropeAidConclusion

Technical Score x 0.80

+

Financial Score x 0.20

Best value for money wins!

SERVICES

EuropeAidContract Award

Committee recommends to

• Award the contract to the best value for money

OR

• Cancel the procedure

Contracting Authority must approve the evaluation report

SERVICES

EuropeAidContract Signature

• Inform successful Tenderer and ask for evidence of selection criteria

• Prepare contract

• Sign and send contract

• Publish Contract Award Notice

• Inform unsuccessful Tenderers

SERVICES

EuropeAidTime Line Service Contract

Forecast 30 days

Procurement Notice 30 days

Shortlist

Tender Launch 50 days

March June

Procedure takes at least 6-7 months

Contract Award

Evaluation

Contract Signature

EuropeAidSupply/Works Contracts

International Open Procedure

• Publication *

• Tenders received

• Evaluation

• Contract Award *

• Contract Signature *

* EC approval if decentralised ex-ante control

EuropeAidTender Opening Session

• Public opening

• 1 envelope system

• Announced: name of tenderer, price, offers arrive sealed, within deadline, guarantee

• Tender Opening Report last step

• Minutes are available upon request

SUPPLY/WORKS

EuropeAidAdministrative Compliance

• Fill in Administrative Compliance Grido Documentation complete as requiredo Nationality of Sub-Contractorso Close checking of origin of goods


SUPPLY/WORKS

EuropeAidTechnical Evaluation

• Individual Evaluation Grids

• Use published evaluation grids

• Check if offers comply with TS: YES/NO


SUPPLY/WORKS

EuropeAidFinancial Evaluation

• Check arithmetical errors

• Financial offer within maximum budget

• Award of contract to the tenderer with lowest price

• Discounts

PRAG 4.3.9.5

SUPPLY/WORKS

EuropeAidContract Award

Committee recommends to

Award the contract to the compliant offer with lowest price

OR

Cancel the procedure

Contracting Authority must approve the evaluation report

SUPPLY/WORKS

EuropeAidContract Signature

• Inform successful Tenderer and ask for evidence of selection criteria and exclusion criteria

• Prepare contract

• Sign and send contract

• Publish Contract Award Notice

• Inform unsuccessful Tenderers

SUPPLY/WORKS

EuropeAidTime Line

Forecast 30 days

Procurement Notice 60 days

March June

Procedure takes at least 6-7 months

Contract Award

Contract Signature

Evaluation

EuropeAidCase study

The EC Delegation in Kenya is going to launch a call for tender for the supply of goods where the overall budget is

€140.000.

• a) Which procedure should they use?

• b) There are not many local suppliers on the market in Kenya. How may this be tackled?

EuropeAidAward procedures & publication requirements - How to award a contract?

• Call for Tenders:

o Open or restricted - International/Localo Competitive Negotiated Procedureo FrameWorkContracto Single tenderso Competitive Dialogue

• Very detailed exceptions where direct award of contract may be allowed.

PRAG 6.3

EuropeAid

4Submission of the application/tender

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EuropeAidSubmission of applications

• Only for international restricted service procedure

• Reply to a Procurement Notice. Candidate demonstrate its capacity.

• Respons period after the publication of the procurement notice

o 30 days

• PN should be clear enough to avoid questions but questions/clarifications are still allowed up to 21 days before submission deadline

• The application must reach the Contracting Authority by the deadline

EuropeAid

EuropeAidSubmission of tenders

• Reply to an invitation to tender

• Respons period depending on type of procedure.

o 30, 50, 60, 90 days

• Questions/clarifications may be made up to 21 days before submission deadline. Response by Contracting Authority, to all tenderers simultaneously, no later than 11 days before the same deadline.

• The tender must reach the Contracting Authority by the deadline

EuropeAidCase study

The deadline for receiving tenders is Monday 15/11 at 16:00

You send your proposal by DHL on Friday 12/11

There is bad weather during the weekend and flight is cancelled. The offer arrives to the Contracting Authority on Monday at 16.10

Should in your opinion the tender be accepted by the Contracting Authority?

EuropeAidContract award - Publication of contractors

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5Implementation of the EC contracts

EuropeAidThe standard contracts

• Contract

• Annexes:

• Special Conditions

• General Conditions

• Terms of Reference / Technical Spec

• Technical Offer from tenderer

• Financial offer

• Expenditure verification report (services)

• Financial guarantee forms

• Various annexes depending on contract

EuropeAidThe standard contracts

• Payments

o Options for payment, pre-financing, financial guarantees

• Reports

o Financial & Technical, expenditure verification (service)

• Visibility

o Communication and Visibility Manual for EU External Actions

http://ec.europa.eu/europeaid/work/visibility/index_en.htm

EuropeAidContract amendments

General Principles

Addendum - major modificationso Extend contract durationo Major budget changeso Additional or complementary serviceso Replacement of key expert

Administrative order - minor modificationso Address or bank accounto Auditoro Within budget heading +/- 15%o Approval of non-key experts

SERVICES


General Principles

Addendum - major modifications

o Budget changeo Additional supplies

Administrative order - minor modificationso Extend contract duration o Address or bank account

SUPPLY


General Principles

Addendum - major modifications

o Additional works - max 50%o Extend contract duration if contractor at fault

Administrative order - minor modificationso Address or bank accounto Additional works - max 15%o Extend contract duration if contractor not at fault

WORKS

EuropeAid

6Useful tips

EuropeAidCommon mistakes

made by candidates, tenderers

What can go wrong?

EuropeAidAdministrative reasons

• Late arrival

• Incomplete documentation

• Not in accordance with templates

• Lack of required translations

• Not signed

• Lack of or copy of Tender Guarantee (Supplies and Works)

• Tenderer/Applicant/partner not eligible

• Financial offer not in separate envelope (Service)

EuropeAidTechnical reasons

Service: • Experts are not available on required dates• Experts do not have the required experience• Copy and paste of Terms of Reference

Supply, Works: • Offer not exactly compliant with Technical Specification • Ineligible origin of supply

EuropeAid My company does not fulfill the selection

criteria….

-Form a consortium (the consortium as a whole must meet the criteria, not each individual company)!

-Try and gain relevant experience as consortium partner or subcontractor!

-An economic operator may rely on the capacities of other entities for a particular contract (undertaking)!

EuropeAidFurther information…

General

http://ec.europa.eu/development/index_en.cfm

http://ec.europa.eu/external_relations/index_en.htm

http://ec.europa.eu/europeaid/index_en.htm

Specific

The Contracting Authority

The Delegation in the beneficiary country

Procedures

http://ec.europa.eu/europeaid/work/index_en.htm

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Thank you for yourattention

europeaid how can a private entity benefit from eu external action contracts ? riga, 24 september...

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