E UROPEAN U NION ATHENA 2009

A T H E N A 1

EEUROPEAN UROPEAN UUNION NION ATHENAATHENA

20092009

EEUROPEAN UROPEAN UUNION NION ATHENAATHENA

20092009

Council decision 2008/975/CFSP of 18 December 2008 ( OJ 23/12/2008 L 345/96 )

A T H E N A 2

PROCUREMENTPROCUREMENT

AGENDAAGENDA

• Cyclus overviewCyclus overview

• General characteristicsGeneral characteristics

• Stages of the procurement proceduresStages of the procurement procedures

• TaxesTaxes

A T H E N A 3


• Procurement GuideProcurement Guide– Documentary Fiches and templatesDocumentary Fiches and templates

– AvailabilityAvailability• By end of MarchBy end of March

• Book, CDs, files, …Book, CDs, files, …

• www.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”Based on “Public contracts in the field of defence and security”

– End of 2009 or 2010End of 2009 or 2010

http://www.athena.europa.eu/

A T H E N A 4

1. PROCUREMENT CYCLUS OVERVIEW1. PROCUREMENT CYCLUS OVERVIEW

1. Request1. Request

2. Make a commitment in the budget 2. Make a commitment in the budget (=reserve appropriations)(=reserve appropriations)

3. Draw up technical specifications (with responsible branch)3. Draw up technical specifications (with responsible branch)Draw up administrative requirements (candidates’capacities)Draw up administrative requirements (candidates’capacities)

4. Advertise4. Advertise 5. Select successful candidate5. Select successful candidate 6. Conclude a contract6. Conclude a contract

7. Check delivery7. Check delivery 8. Enter in the inventory8. Enter in the inventory 9. Pay against receipt9. Pay against receipt10. Write off10. Write off

A T H E N A 5

1.1. To receive a requestTo receive a request– Collaboration between J*Collaboration between J*

– Approval of the request by the Authorizing OffrApproval of the request by the Authorizing Offr

2.2. Make a commitment in the budgetMake a commitment in the budget– temptation for every section (J1, J4, J6) to buy and then temptation for every section (J1, J4, J6) to buy and then

bring the bill, especially early in operationbring the bill, especially early in operation

– should be avoided: 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 budget must be managed: redeployment of appropriations during operation are usually necessaryappropriations during operation are usually necessary

• therefore, sequence « budget commitment then therefore, sequence « budget commitment then contract or purchase order » should be complied withcontract or purchase order » should be complied with


A T H E N A 6

3.3. a.a. Technical specificationsTechnical specifications::– essential, even if takes timeessential, even if takes time

– equirements must be proportionate to needs and duration equirements must be proportionate to needs and duration of operation (principle of economy)of operation (principle of economy)

– requirements must be sufficiently detailedrequirements must be sufficiently detailed

b. Administrative requirementsb. Administrative requirements::– candidates capacity to do the job essential, especially in candidates capacity to do the job essential, especially in

theatretheatre– security requirements security requirements – performance guarantee:performance guarantee:

– compulsory if pre-financing exceeds 150 000 euros or compulsory if pre-financing exceeds 150 000 euros or contact above 137 000 euros (5 to 10% of contract)contact above 137 000 euros (5 to 10% of contract)


A T H E N A 7

4. Advertise4. Advertise

– If above the « higher threshold » If above the « higher threshold » andand no deviation no deviation::

→in the Official Journal of the European Unionin the Official Journal of the European Union

– If below the « higher threshold »If below the « higher threshold » or or with a deviationwith a deviation::

→advertise by any means:advertise by any means:

– local chamber of commerce, confederation of industrylocal chamber of commerce, confederation of industry

– local presslocal press

→can resort to existing listscan resort to existing lists

(provided by Embassy, Commission delegation, etc.) (provided by Embassy, Commission delegation, etc.)


A T H E N A 8

5. Select the successfull candidate5. Select the successfull candidate

– IfIf aboveabove the « higher threshold » and no deviation: the « higher threshold » and no deviation:→formal tender (double sealed envelopes)formal tender (double sealed envelopes)

– If belowIf below the « higher threshold » or with a deviation: the « higher threshold » or with a deviation:→negotiated procedure: negotiated procedure:

→negotiate price & services, works, suppliesnegotiate price & services, works, supplies

– In any caseIn any case→selection committee:selection committee: – appointed by authorising officer (Operation Commander, appointed by authorising officer (Operation Commander,

by delegation: local J8)by delegation: local J8)– at least 3 persons from 2 different sections of the HQ at least 3 persons from 2 different sections of the HQ

concerned (J8+technical branch concerned)concerned (J8+technical branch concerned)


A T H E N A 9

5. Select the successfull candidate (5. Select the successfull candidate (continuedcontinued))

Criteria:Criteria:

– either the lowest price either the lowest price – should be the ruleshould be the rule

– or the best-value-for-moneyor the best-value-for-money– taking into account notably the capacity to do the job within taking into account notably the capacity to do the job within

the timeframethe timeframe

– must be specified in the specificationsmust be specified in the specifications– report on procedure, including reasons for selection report on procedure, including reasons for selection


A T H E N A 10

6. Conclude a contract6. Conclude a contract

– in writing (to avoid doubts and conflicts)in writing (to avoid doubts and conflicts)

– 2 possible forms:2 possible forms:

– either a single document signed by the partieseither a single document signed by the parties

– or a signed commitment from the candidate (offer, or a signed commitment from the candidate (offer, acceptance of the conditions set out by the contracting acceptance of the conditions set out by the contracting authority), signed by the contracting authorityauthority), signed by the contracting authority

• Notify successful candidateNotify successful candidate

• Inform othersInform others

• Enter into accounts (Enter into accounts (legal commitmentlegal commitment))


A T H E N A 11

7. Check delivery7. Check delivery

- If works or services: 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: If supplies: → delivery and conformity to contract must be assessed delivery and conformity to contract must be assessed

- In any case, delivery and acceptance of the works, In any case, delivery and acceptance of the works, services or supplies must be certified (by the technical services or supplies must be certified (by the technical branch concerned) before final payment may be madebranch concerned) before final payment may be made


A T H E N A 12

8. Enter in the inventory8. Enter in the inventory

– Must be done immediately on acceptanceMust 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 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& in accordance with the accounting policy(eg: portable phones should be on the inventory)(eg: portable phones should be on the inventory)

– Should contain: Should contain: – description of itemsdescription of items– location/person responsible location/person responsible – date of acceptancedate of acceptance– purchase costpurchase cost


A T H E N A 13

9. Pay9. Pay

– Payments may be made:Payments may be made:– on account (upon ordering, before work starts)on account (upon ordering, before work starts)– as interim payments (usually according to progress)as interim payments (usually according to progress)– of the balance due after acceptance.of the balance due after acceptance.

– Payments on account should be kept minimalPayments on account should be kept minimal– Interim payments should be made based on acceptance Interim payments should be made based on acceptance

of partial delivery or progress madeof partial delivery or progress made– Final balance may be paid only after final acceptanceFinal balance may be paid only after final acceptance

– Two signatures required for any payment Two signatures required for any payment (authorizing officer + accounting officer)(authorizing officer + accounting officer)


A T H E N A 14

10. Write off10. Write off

– Distinct from final destination of equipment, to be decided by Distinct from final destination of equipment, to be decided by Special Committee, at end of operationSpecial Committee, at end of operation

– In every HQ, a write-off committee:In every HQ, a write-off committee:– the head of the J8the head of the J8– the head of the branch responsible for the equipmentthe head of the branch responsible for the equipment– the head of the branch responsible for its maintenancethe 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 a write off– > 30 000 euros:HQ’s commander may decide> 30 000 euros:HQ’s commander may decide

with written assent of Write Off with written assent of Write Off CommitteeCommittee

– In case of loss or destruction: report filed by J8 and write offIn case of loss or destruction: report filed by J8 and write off


A T H E N A 15


AGENDAAGENDA

• Cyclus overviewCyclus overview• General characteristicsGeneral characteristics

– FrameworkFramework– Choice of the procedureChoice of the procedure– Time-linesTime-lines– PublicationPublication– DeviationsDeviations

• Stages of the procurement proceduresStages of the procurement procedures• TaxesTaxes

A T H E N A 16

2. GENERAL CHARACTERISTICS2. GENERAL CHARACTERISTICS

A. FrameworkA. Framework

Reference:Reference: ATHENA Financial Rules 2006 – Part IIATHENA Financial Rules 2006 – Part II(based on EC Directive 2004/18)(based on EC Directive 2004/18)

Applicable except for Berlin + operations (NATO rules!)Applicable except for Berlin + operations (NATO rules!)

To procure what?To procure what?– Anything eligible as common costs or « Nation Borne Costs »Anything eligible as common costs or « Nation Borne Costs »

→No authority to contract outside ATHENA’s scopeNo authority to contract outside ATHENA’s scope

=> ex: Oursourcing of military capabilities=> ex: Oursourcing of military capabilities (guards, …) (guards, …)→Request by Operation Commander to Special CommitteeRequest by Operation Commander to Special Committee

→No outsourcing of military capabilities before authorization No outsourcing of military capabilities before authorization granted by Special Committeegranted by Special Committee

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

A T H E N A 18


B. Procedure’s choiceB. Procedure’s choice

• Applicable procedure determined by: Applicable procedure determined by:

– estimated cost excluding VAT, no splittingestimated cost excluding VAT, no splitting

– thresholdsthresholds

– Lower Threshold:Lower Threshold: 30.000 EUR 30.000 EUR

– Higher Threshold:Higher Threshold: 137.000 EUR for services 137.000 EUR for services

for supplies listed at Annexfor supplies listed at Annex 211.000 EUR for other supplies 211.000 EUR for other supplies5.278.000 EUR for public works5.278.000 EUR for public works

• Deviations: for simpler procedure, if admissible justificationsDeviations: for simpler procedure, if admissible justifications

A T H E N A 19


Usual procedures iaw thresholdsUsual 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 (« (5000 <) X < 30 000 euros (« lower thresholdlower threshold »): »): – negotiated procedure with 3, negotiated procedure with 3, – but J8 may opt for negotiated procedure with 1, without formal but J8 may opt for negotiated procedure with 1, without formal

derogationderogation

• 30 000 euros < X < « 30 000 euros < X < « higher thresholdhigher threshold » »– negotiated procedure with 3, negotiated procedure with 3, – but negotiated procedure with 1 possible with formal derogationbut 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 works5, 278 Meuros for infrastructure works– tenders, except where formal derogationtenders, except where formal derogation

A T H E N A 20

Thresholds(VAT excluded)

Standard procedures Possible procedures with a specific prior authorization referred to in Part II Art 6

Up to 30.000 EUR A. 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, or A. 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

A T H E N A 21

Thresholds(VAT excluded)

Standard procedures Possible 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

A T H E N A 22


C. Normal DeadlinesC. Normal Deadlines

• Open tenderOpen tender- Without pre-information notice:- Without pre-information notice:

52 days 52 days or 40 if electronic means (Internet)or 40 if electronic means (Internet)- With pre-information notice:- With pre-information notice:

22 days if Prior information notice22 days if Prior information notice

• Restricted ProceduresRestricted Procedures- Without pre-information notice- Without pre-information notice

37 days for requests to participate or 30 if Internet37 days for requests to participate or 30 if Internet 40 days to receive tenders or 35 days if Internet40 days to receive tenders or 35 days if Internet

- With pre-information noticeWith pre-information notice

37 days for requests to participate or 30 if Internet37 days for requests to participate or 30 if Internet 22 days to receive tenders or 17 days if Internet22 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:- Without pre-information notice:

37 days for requests to participate or 30 days if e-mail37 days for requests to participate or 30 days if e-mail

A T H E N A 23

SOP « Time-lines » (Extract)SOP « Time-lines » (Extract)

2. With / Without pre-information noticeorWith a specific prior authorization

Time-limits are subject to the procedure chosen and the potential use of the electronic support

OpenProcedure &CompetitiveDialogue

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 candidatesto tender documents(Internet)

- 5 days (II 10.2)

Minimum time limit 40 days

B. WITH Minimum time limit 22 days

C. With a specific prior authorization

Minimum time limitsin case of urgency

10 days (II 10.3)

A T H E N A 24


D. PublicationD. Publication

• Above « higher threshold »:Above « higher threshold »:– in the EU Official Journalin the EU Official Journal– Can be done also in theatre (local press, chambers of commerce)Can be done also in theatre (local press, chambers of commerce)

• Below Below « higher threshold »:« higher threshold »:– Appropriate means (local press, …)Appropriate means (local press, …)– Could be done also in the EU Official JournalCould be done also in the EU Official Journal

• What to publish?What to publish? - Prior information notice- Prior information notice- Call for expression for interests- Call for expression for interests- Contract notice- Contract notice- Award notice- Award notice

A T H E N A 25


E. DeviationsE. Deviations

• For what:For what:- For any For any simpler proceduresimpler procedure, including single source, including single source- For For shortened deadlinesshortened deadlines

- To receive the applications:To receive the applications: 15 days15 days- To receive the tenders:To receive the tenders: 10 days10 days

- For For publicationpublication or geographical scope, … or geographical scope, …

• Above 30 000 eurosAbove 30 000 euros (formal justification needed) (formal justification needed)

• Which authority?Which authority?- 30 000 < X < 137 000 EUR:30 000 < X < 137 000 EUR: J8 J8 - 137 000 < X < 1 M EUR:137 000 < X < 1 M EUR: ATHENA’s administratorATHENA’s administrator- >1 M EUR:>1 M EUR: ATHENA’s Special CommitteeATHENA’s Special Committee

through the through the administratoradministrator

• Requests:Requests: from J8 to administrator by e-mail from J8 to administrator by e-mail

A T H E N A 26


Which justifications for derogations?Which justifications for derogations?

(most frequently used)(most frequently used)

• Extreme urgencyExtreme urgency

• When for technical or artistic reasons, the contract may be When for technical or artistic reasons, the contract may be awarded only to one particular operator (ex: public awarded only to one particular operator (ex: public monopolies)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 Additional supplies, where a change in supplier would create technical difficulties (incompatibility, problems in technical difficulties (incompatibility, problems in maintenance)maintenance)

• Additional works or services, not exceeding 50% of initial Additional works or services, not exceeding 50% of initial worksworks

• Use of a national contractUse of a national contract, awarded in conformity with EC , awarded in conformity with EC DirectivesDirectives

A T H E N A 27


AGENDAAGENDA



• Stages of the procurement proceduresStages of the procurement procedures– Generic procedural steps and activitiesGeneric procedural steps and activities– Workflow (example)Workflow (example)

• TaxesTaxes

A T H E N A 28

CYCLUS OVERVIEWCYCLUS OVERVIEW

(10 steps)(10 steps)

(from the request to the potential write-off)(from the request to the potential write-off)

GENERIC PROCUREMENT ACTIVITIESGENERIC PROCUREMENT ACTIVITIES

3. STAGES of the PROCUREMENT PROCEDURES3. STAGES of the PROCUREMENT PROCEDURES

A T H E N A 29

• Ex-ante publicity (not mandatory)Ex-ante publicity (not mandatory)– Pre-information noticePre-information notice

– Call for expression of interestCall for expression of interest

• Preparation of the tender documentsPreparation of the tender documents– Tender specificationsTender 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 contractDraft contract

– Invitation to tender or to negotiateInvitation to tender or to negotiate


A T H E N A 30

• Contract noticeContract notice– Scope and contentScope and content

– Arrangements for publicationArrangements 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 participateReceipt of requests to participate

– Selection of candidatesSelection of candidates

– Dispatch of tender documentsDispatch of tender documents

– Receipt of tendersReceipt of tenders


A T H E N A 31

• Opening and evaluation of tendersOpening and evaluation of tenders– Arrangements for opening and evaluating tendersArrangements for opening and evaluating tenders– Opening and evaluationOpening and evaluation– Evaluation report and ranking of tenders/requests to participateEvaluation report and ranking of tenders/requests to participate

• Award of the contract and ex-post informationAward of the contract and ex-post information– Award decisionAward decision– Notification of the award decisionNotification of the award decision– Signature of the contractSignature of the contract– Information for candidates and tenderersInformation for candidates and tenderers– Publication of an award noticePublication of an award notice– Potential request for additional informationPotential request for additional information


A T H E N A 32


AGENDAAGENDA• Cyclus overviewCyclus overview• General characteristicsGeneral characteristics


• Stages of the procurement proceduresStages of the procurement procedures– Generic procedural steps and activitiesGeneric procedural steps and activities– WorkflowWorkflow

• Extract from the Procurement GuideExtract from the Procurement Guide• Example of the “Open procedure”Example of the “Open procedure”

• TaxesTaxes

A T H E N A 33

Contract Notice

Invitation to Tender and Tender Specifications

Pre-Information Notice

Public Opening

Assessment of exclusion and selectioncriteria

Evaluation of award criteria

Award decision

Signed Contract

Award Notice

ContractingAuthority

Tender

Potentialinterestedeconomicoperator




Interestedeconomicoperator



Winning Tenderer

UnsuccessfulEconomic Operator


10–

52

days

48 days AS

AP

Deadline for submission of tenders

Step 1: Ex ante advertisement (not obligatory)

Step 2: Publication and reception of tenders

Step 4: Ex post advertisement

Step 3: Evaluation of candidates and tenders

Contract Notice



Public Opening



Award decision

Signed Contract

Award Notice


Tender








Winning Tenderer



10–

52

days

48 days AS

AP

Deadline for submission of tenders




Contract Notice



Public Opening



Award decision

Signed Contract

Award Notice


Tender




















Winning Tenderer





10–

52

days

48 days AS

AP

Deadline for submission of tendersDeadline for submission of tenders




Step 3: Evaluation of candidates and tenders

A T H E N A 34


AGENDAAGENDA


– FrameworkFramework

– Choice of the procedureChoice of the procedure

– Time-linesTime-lines

– PublicationPublication

– DeviationsDeviations

• Stages of the procurement proceduresStages of the procurement procedures• TaxesTaxes

A T H E N A 35

TAXESTAXES

In theatre:In theatre:- SOFA provides exemption from taxes, customs SOFA provides exemption from taxes, customs

duties and customs proceduresduties and customs procedures- Except where taxes for services renderedExcept where taxes for services rendered

In the EU:In the EU:- Decision by Member States = TreatyDecision by Member States = Treaty- RatificationRatification

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E UROPEAN U NION ATHENA 2009