PROCUREMENT PLAN
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
ACTIVITIES
Regional School of Public Administration
(Phase 1)
International Training Centre of the
International Labour Organization
ReSPA
Italy, Turin, 19- 23 November 2007
George Jadoun
International Labour Organization
PROCUREMENT PLAN
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
ACTIVITIES
DESCRIPTION OF REQUIREMENTS
Regional School of Public Administration
(Phase 1)
MARKET RESEARCH
PROCUREMENT STRATEGY
ReSPA
PREPARATION OF BIDDING DOCUMENTS
CONDUCTING THE
PROCUREMENT PROCESS
SLIDE NO. 2
PROCUREMENT PLAN
TIMETABLE
A Joint Initiative of the ACTION JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC RESPONS.
European Union and the OECD, User Draws Up Name
principally financed by the EU
Specification
Market Research “
& Check Spec.
Complete “
Specification
Prepare Tender “
Regional School of Public Administration
(Phase 1)
Documents
Agree Evaluation “
Criteria
Prepare Contract “
Documents
DecideProcure. “
ReSPA
Strategy
Legal Publication “
OJEC)
(e.g.
Receive Express. “
Interest
Pre-Qualification “
IssueITTs “
Receive Bids “
Evaluate Bids “
Award Contract “
Commence Deliveries “
SLIDE NO. 3
FIRST CONSIDERATION
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
IS FINANCIAL AUTORITHY GRANTED?
Regional School of Public Administration
(Phase 1)
IS THE SPECIFICATION CLEAR?
IS IT A PERFORMANCE SPECIFICATION?
ReSPA
WHO IS THE CUSTOMER?
WHERE AND WHEN IS THE REQUIREMENT
TO BE DELIVERED?
SLIDE NO. 4
FIRST CONSIDERATION (cont.)
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
HAVE WE GOT STOCK OR
CALL-OFF CONTRACT?
Regional School of Public Administration
(Phase 1)
LEGAL REQUIREMENTS?
ReSPA
PROCUREMENT PROCEDURE?
POTENTIAL SUPPLIERS?
TIME CONSTRAINTS?
SLIDE NO. 5
SOURCES OF
A Joint Initiative of the
European Union and the OECD,
INFORMATION
principally financed by the EU
PROCUREMENT OFFICE’S
DATABASE OF SUPPLIERS
Regional School of Public Administration
(Phase 1)
Business/trade periodicals and journals
Trade associations and professional
organizations
ReSPA
Business/trade directories
Suppliers’ catalogues and sales promotions
Trade fairs and exhibitions
Other procurement units
SLIDE NO. 6
PACKAGING
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
TOO MANY SMALL PACKAGES INCREASE
ADMINISTRATIVE AND MANAGEMENT
Regional School of Public Administration
(Phase 1)
WORK
CONSOLIDATE SIMILAR PRODUCTS
ReSPA
INTO ONE PACKAGE
SMALLER LOTS ENCOURAGE
LOCAL SUPPLIERS TO BID
SLIDE NO. 7
DEFINITION
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
A SPECIFICATION IS :
A STATEMENT OF NEEDS
Regional School of Public Administration
(Phase 1)
TO BE SATISFIED BY THE PROCUREMENT
OF EXTERNAL RESOURCES
ReSPA
IT DEFINES :
WHAT THE PURCHASER WISHES TO BUY
WHAT THE SUPPLIER IS EXPECTED TO
PROVIDE
SLIDE NO. 8
TYPES OF
A Joint Initiative of the
European Union and the OECD,
SPECIFICATIONS
principally financed by the EU
Regional School of Public Administration
(Phase 1)
ReSPA
SLIDE NO. 9
PERFORMANCE AND
A Joint Initiative of the
European Union and the OECD,
FUNCTIONAL
principally financed by the EU
SPECIFICATIONS
BENEFITS
Regional School of Public Administration
(Phase 1)
ENCOURAGE ALTERNATIVE SOLUTIONS
ReSPA
DISCOURAGE BIAS
REDUCE RESOURCES AND EFFORT
FOCUS ON RESULTS
SLIDE NO. 10
CHARACTERISTICS OF
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
A GOOD SPECIFICATIONS
A GOOD SPECIFICATION SHOULD:
Regional School of Public Administration
(Phase 1)
State the requirements clearly, concisely,
logically and unambiguously
Contain enough information for potential
ReSPA
suppliers to decide and cost the goods or
services
State acceptance criteria for goods and
services
SLIDE NO. 11
CHARACTERISTICS OF
A Joint Initiative of the
European Union and the OECD,
A GOOD SPECIFICATIONS (cont.)
principally financed by the EU
A GOOD SPECIFICATION SHOULD:
Regional School of Public Administration
(Phase 1)
Provide equal opportunities to
all potential suppliers
ReSPA
Use internationally recognized standards
Comply with legal obligations
SLIDE NO. 12
CHARACTERISTICS OF
A Joint Initiative of the
A GOOD SPECIFICATIONS (cont.)
European Union and the OECD,
principally financed by the EU
A GOOD SPECIFICATION DOES NOT:
Regional School of Public Administration
(Phase 1)
Over-specify requirements
ReSPA
Contain features that
directly or indirectly discriminate
SLIDE NO. 13
INFORMATION NOT
REQUIRED IN THE
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU SPECIFICATION
Technical evaluation criteria
Reference to price
Regional School of Public Administration
(Phase 1)
Costing schedules
ReSPA
Contract management requirements
Delivery address(es)
Legal or contractual matters
Delivery schedules
SLIDE NO. 14
INFORMATION NOT REQUIRED
A Joint Initiative of the
IN THE SPECIFICATION (cont.)
European Union and the OECD,
principally financed by the EU
Payment schedules
Regional School of Public Administration
(Phase 1)
Documents for bidders to complete
A statement on acceptability of
partial or alternative offers
ReSPA
A statement of compliance
Contact names and telephone numbers
General security aspects
SLIDE NO. 15
ROLE OF
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
PROCUREMENT OFFICER
DURING DEVELOPMENT OF THE SPECIFICATION,
THE ROLE OF THE PROCUREMENT OFFICER IS TO:
Regional School of Public Administration
(Phase 1)
Provide expertise in procurement law and practice
Advise on the most appropriate type of specification
and on legal or other constraints
ReSPA
Provide access to existing specifications
Assist with market research
Development contractual clauses
to complement the specification
Advise on improvements to the specification
SLIDE NO. 16
STEPS IN DEVELOPING
A Joint Initiative of the
European Union and the OECD,
SPECIFICATIONS
principally financed by the EU
PLANNING AND ANALYSIS
– The foundation of a good specification
Regional School of Public Administration
DEFINING THE REQUIREMENT
(Phase 1)
– In terms of function and performance
VALUE MANAGEMENT
– The optimum way of using materials,
ReSPA
designs, equipment, etc. to meet a functional
requirement
PERFORMANCE STANDARDS
– Criteria to assess compliance of offers
– Should be developed in parallel with the
specifications
SLIDE NO. 17
SPECIFYING
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
NAMED PRODUCTS
ALWAYS NOMINATE ALTERNATIVES,
Regional School of Public Administration
(Phase 1)
OR USE THE TERM
“… OR EQUIVALENT”
ReSPA
RISKS:
You only get what you ask for
… which may not be what you need
SLIDE NO. 18
THE STRUCTURE OF
A Joint Initiative of the
European Union and the OECD,
THE SPECIFICATION
principally financed by the EU
VARIETY OF STRUCTURES:
– the structure must fit the need
Regional School of Public Administration
(Phase 1)
READING SPECIFICATIONS (they should):
– be written in simple, clear language
– not use jargon
ReSPA
– define terms, symbols and acronyms
– recognize that non-specialists may need to
understand it
– use a logical structure
– be concise while keeping the meaning clear
– use an attractive format
to encourage readers
SLIDE NO. 19
THE STRUCTURE OF
A Joint Initiative of the
European Union and the OECD,
THE SPECIFICATION (cont.)
principally financed by the EU
FUNCTIONAL, PERFORMANCE AND TECHNICAL
CHARACTERISTICS SHOULD BE LISTED
SEPARATELY
Regional School of Public Administration
(Phase 1)
INFORMATION FOR INTERNAL USE:
– originating department of agency
– a brie title
ReSPA
– a short description of the functional
performance or other characteristics of the
goods or services
– who has approved the specification
– the date of approval
– the issue or revision number and date
SLIDE NO. 20
THE STRUCTURE OF
A Joint Initiative of the
European Union and the OECD,
THE SPECIFICATION (cont.)
principally financed by the EU
TITLES SIMPLE AND CLEAR
LIST OF CONTENTS:
– for longer, more complex specifications
Regional School of Public Administration
(Phase 1)
INTRODUCTION SETS THE SCENE
BACKGROUND INFORMATION
ReSPA
GLOSSARY
SCOPE OF THE REQUIREMENT
– brief description
– application, purpose of function
– training requirements, if any
– documentation requirements
SLIDE NO. 21
THE DETAILED
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
REQUIREMENTS
CLEAR AND BRIEF TITLE
Regional School of Public Administration
(Phase 1)
PROVIDE NECESSARY INFORMATION
ONLY INCLUDE ESSENTIAL ASPECTS
ReSPA
PERFORMANCE AND FUNCTIONAL
CHARACTERISTICS
MAINTENANCE REQUIREMENTS
PACKAGING REQUIREMENTS
SLIDE NO. 22
THE DETAILED
A Joint Initiative of the
European Union and the OECD,
REQUIREMENTS (cont.)
principally financed by the EU
QUALITY REQUIREMENTS
Regional School of Public Administration
(Phase 1)
STANDARDS:
– international standards
– defence standards
ReSPA
– product and service standards
HEALTH, SAFETY,
ENVIRONMENTAL AND ERGONOMIC ISSUES
SLIDE NO. 23
QUALIFICATION OF
TENDERERS
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
MINIMUM REQUIREMENTS
POTENTIAL SUPPLIERS MUST BE:
Regional School of Public Administration
(Phase 1)
TECHNICALLY SOUND
MANAGERIALLY COMPETENT
ReSPA
ADEQUATELY RESOURCED
FINANCIALLY STABLE
RELIABLE
SLIDE NO. 24
TECHNICAL
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
COMPETENCE
TECHNICAL
BACKGROUND AND EXPERIENCE
Regional School of Public Administration
(Phase 1)
ORGANIZATION OF
TECHNICAL ACTIVITIES
ReSPA
QUALITY ASSURANCE AND
CONTROL STANDARDS
FAMILIARITY WITH
INDUSTRY STANDARDS
SLIDE NO. 25
TECHNICAL
A Joint Initiative of the
European Union and the OECD,
COMPETENCE (cont.)
principally financed by the EU
AVAILABILITY OF
Regional School of Public Administration
(Phase 1)
TESTING EQUIPMENT AND
PROCEDURES
ADEQUACY OF
ReSPA
POST-CONTRACT SERVICE
RECORD ON INNOVATION AND
QUALITY IMPROVEMENT
SLIDE NO. 26
MANAGERIAL
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
COMPETENCE
ORGANIZATION OF THE COMPANY
Regional School of Public Administration
(Phase 1)
OVERALL CORPORATE STRUCTURE
KEY MANAGEMENT POLICIES
ReSPA
SAFETY POLICY AND RECORDS
MAXIM SIZE AND
COMPLEXITY OF CONTRACT
SLIDE NO. 27
ADEQUACY OF
A Joint Initiative of the
European Union and the OECD,
RESOURCES
principally financed by the EU
STATE OF WORKSHOPS AND EQUIPMENT
SKILL LEVELS OF PERSONNEL
Regional School of Public Administration
(Phase 1)
ADEQUACY OF STORAGE PACKAGING AND
DISTRIBUTION
PRODUCTION PLANNING AND CONTROL
ReSPA
SYSTEMS
INFORMATION ON SUB-CONTRACTED
WORK
AMOUNT OF WORK IN HAND COMPARED
TO AVAILABILITY OF RESOURCES
SLIDE NO. 28
FINANCIAL STABILITY
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
ANNUAL FINANCIAL REPORTS FOR THE
COMPANY
AVAILABILITY OF BANKERS’ REFERENCES
Regional School of Public Administration
(Phase 1)
INDEPENDENT REFERENCES E.G.
COMMERCIAL SEARCH COMPANIES
ReSPA
PARENT COMPANY PREPARED TO
FORMALLY UNDERWRITE THE
PERFORMANCE
COMPANY PREPARED TO FURNISH
PERFORMANCE BONDS
SLIDE NO. 29
A Joint Initiative of the
RELIABILITY
European Union and the OECD,
principally financed by the EU
“TRACK RECORD” ON
PREVIOUS CONTRACTS
Regional School of Public Administration
(Phase 1)
DELIVERY AND
QUALITY PERFORMANCE
ReSPA
REFERENCES
SLIDE NO. 30
A Joint Initiative of the
ENTHUSIASM
European Union and the OECD,
principally financed by the EU
QUALITATIVE ASSESSMENT OF:
EXPRESSED INTEREST OF
Regional School of Public Administration
(Phase 1)
SUPPLIERS’ SENIOR STAFF
SPEED OF RESPONSES TO
ReSPA
REQUESTS FOR INFORMATION
CO-OPERATION WITH
APPRAISAL PROCEDURES
SLIDE NO. 31
A Joint Initiative of the
PRE-QUALIFICATION
European Union and the OECD,
principally financed by the EU
BENEFITS
Regional School of Public Administration
(Phase 1)
Contracting authority knows that
sufficient number of qualified tenders
exists
ReSPA
Unqualified tenders be spared
the effort and expense of bidding
Manageable number of bids
SLIDE NO. 32
A Joint Initiative of the
EC DIRECTIVES
European Union and the OECD,
principally financed by the EU
PERMISSIBLE CRITERIA
Regional School of Public Administration
(Phase 1)
Financial and economic standing
Technical capability
ReSPA
Ability
NO OTHER CRITERIA ARE ALLOWED
SLIDE NO. 33
EC DIRECTIVES (cont.)
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
DISQUALIFICATION CRITERIA
Bankruptcy
Regional School of Public Administration
(Phase 1)
Criminal conviction
Professional misconduct
ReSPA
Failed pay tax or social security
Misrepresentation
Not licensed
Not registered
SLIDE NO. 34
FORMAL TENDERING
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
PROCEDURE
ENSURE FAIRNESS
Regional School of Public Administration
(Phase 1)
ENSURE CONFIDENTIALITY
PREVENT COLLUSION
ReSPA
PROVIDE AUDIT TRAIL
PROVIDE INTEGRITY
SLIDE NO. 35
A Joint Initiative of the
TENDER DOCUMENTS
European Union and the OECD,
principally financed by the EU
INFORM TENDERERS ABOUT :
Regional School of Public Administration
(Phase 1)
The rules of the tendering process
The specification
ReSPA
Evaluation criteria
Conditions of contract
SLIDE NO. 36
TENDER RETURN DATE
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
PERIOD ALLOWED FOR TENDERS
DEPENDS ON:
Regional School of Public Administration
(Phase 1)
Regulatory (e.g. EU) obligations
Complexity
ReSPA
Urgency
Reasonable time for suppliers to
formulate bids
SLIDE NO. 37
INVITATION TO TENDER
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU PACKAGE
COVERING LETTER
Regional School of Public Administration
(Phase 1)
INSTRUCTIONS TO TENDERS
ReSPA
SPECIFICATION
TERMS AND CONDITIONS
SLIDE NO. 38
INSTRUCTIONS
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
TO TENDERERS
SHOULD:
Regional School of Public Administration
(Phase 1)
Cover general issues
Prescribe language and currency
ReSPA
Detail where and when
tenders are to be submitted
Give information on timescales
Give any other relevant information
SLIDE NO. 39
INSTRUCTIONS
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
TO TENDERERS (cont.)
TENDERERS WILL WANT TO KNOW:
Regional School of Public Administration
(Phase 1)
If partial or alternative bids
are acceptable
Whether samples are required
ReSPA
What technical information to provide
Information about
pre-qualification requirements
SLIDE NO. 40
TENDERING ISSUES TO
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
BE CONSIDERED
TIMETABLE
Regional School of Public Administration
(Phase 1)
VALIDITY PERIOD
EXTENSION OF VALIDITY PERIOD
ReSPA
SUPPLIERS REQUESTING
EXTENSION OF TENDER RETURN DATE
(normally denied but may be considered
in exceptional cases)
SLIDE NO. 41
TENDERING ISSUES TO BE
A Joint Initiative of the
European Union and the OECD,
CONSIDERED (cont.)
principally financed by the EU
COMMUNICATIONS WITH TENDERERS
Regional School of Public Administration
(Phase 1)
(all tenderers should receive clarifications
on substance given to one)
ReSPA
KEEPING STRICT CONFIDENTIALITY
REQUESTS AS TO PROGRESS
SLIDE NO. 42
CHECKLIST OF IMPORTANT
CONTRACT TERMS AND CONDITIONS
A Joint Initiative of the PLANT/WORKS GOODS SERVICES
European Union and the OECD,
principally financed by the EU - Employer’s - Product guarantees - Designated
representative and warranties personnel
- Occupancy of site - Passing of title and - Time when service
- Time for start and risk will be provided
completion of work - Pricing mechanisms - Emergency
- Damages in case of - Method of price response time and
delays review conditions
- Extension of time - Rights to audit - Accounting for work
Progress payments Payment terms done
Regional School of Public Administration
(Phase 1)
- -
- Retention period and - Cancellation and - Proof of spares
amount payment of related used
- Final payment certificate costs - Guarantees
- Changes to contract - Damages - Damage to
- Interpretation of - Scheduling equipment,
drawings arrangements facilities
- Extra work - Applicable - Injury to personnel
- Performance and INCOTERM - Security
ReSPA
payment bonds - Time for acceptance - Duration of contract
- Authority of project - Quantity and - Training
engineer/ project variations - Travelling time and
manager - Rejections expenses
- Acceptance - Duration of contract - Call out procedures
- Specific guarantees - Tooling (if - Period and method
- Training/Manuals applicable) of notice for
- Spare parts - Packaging termination
- Warranties - Freight costs - Variation of service
- Exclusions - Intellectual Property - Contract monitoring
- Nominated site Rights - Lead-in costs
management - Use of buyer’s tools - Rights to audit
- Legislation requirements - Currency rates
- Ownership of design - Discount/rebate
- Passing of title and risk agreement
- Buyer’s rights - Spares support
- Provision of site services - Invoicing/delivery
- SLIDE variation formula
Price NO. 43 requirements
- Incentives
CHECKLIST OF IMPORTANT CONTRACT
TERMS AND CONDITIONS (cont.)
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
Regional School of Public Administration
(Phase 1)
ALL CONTRACTS
- Definitions - Sub-contracting - Insurance
- Remedies in case of - Inspection - Arbitration
default - Jurisdiction - Force majeure
- Law Dispute resolution
ReSPA
- - Terms of payment
- Confidentiality
- Liquidated damages
SLIDE NO. 44
RECEIPT AND OPENING
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
OF TENDERS
TENDER RECEIPT
(unopened and securely stored)
Regional School of Public Administration
(Phase 1)
ACCIDENTAL OPENING (resealing, explanation
and endorsement by tender board member)
TENDER OPENING (integrity of procedures)
ReSPA
MEMBERSHIP OF TENDER BOARD
(minimum two, preferably not involving
procurement officer)
THE DUTIES OF TENDER BOARD
– Document verification
– Certificate of opening
SLIDE NO. 45
RECEIPT AND OPENING OF
A Joint Initiative of the
European Union and the OECD,
TENDERS (cont.)
principally financed by the EU
RELEASE OF TENDERS
TREATMENT OF LATE TENDERS
Regional School of Public Administration
(Phase 1)
INCOMPLETE TENDERS
AMENDMENT OF TENDERS
ReSPA
– Acceptable if amendments arrive before
due dates and meet
all other requirements of receipts
– No amendments after tender opening
REASONS FOR NON-PARTICIPATION
SLIDE NO. 46
TENDER OPENING CERTIFICATE
A Joint Initiative of the Tender Number:
European Union and the OECD,
principally financed by the EU
CERTIFICATE OF OPENING
This is to certify that tenders for _________________________________ were opened in our presence at
Regional School of Public Administration
(Phase 1)
______ am/pm on ___________. We certify that the ______ (insert number of tenders opened)
tenders from the firms against whose names TENDER is noted in the “Remarks” column in the
list below (and overleaf, if necessary) were received in the proper time, opened in our presence
and marked appropriately by us on ........................ 19 ..........
We also certify that no other tenders were opened.
Signatures of opening officers ....................................................
....................................................
ReSPA
NAME OF COMPANY AMOUNT REMARKS
SLIDE NO. 47
EXAMINATION OF
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
TENDERS: PURPOSE
TO CHECK THAT TENDER:
Meet eligibility requirements and
Regional School of Public Administration
(Phase 1)
have been properly signed
Are accompanied by securities,
if required
ReSPA
Have no material errors in the computation
Are complete are substantially responsive
to tender documents
Are otherwise generally in order
SLIDE NO. 48
EXAMINATION OF
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
TENDERS: PROCESS
PERFORMING CHECKS OF TENDERS
Regional School of Public Administration
(Phase 1)
RESPONSIVENESS OF TENDERS
ReSPA
BID CLARIFICATION
SLIDE NO. 49
EXAMINATION OF TENDERS:
A Joint Initiative of the
European Union and the OECD,
PROCESS (cont.)
principally financed by the EU
BID CONDITIONING
Regional School of Public Administration
(Phase 1)
– Designed to ensure
bids are fully responsive
– Treatment of:
ReSPA
• Minor changes
• Substantial changes
• EU view of bid conditioning
• Abnormally low offers
SLIDE NO. 50
ABNORMALLY LOW
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
OFFERS
SEEK EXPLANATIONS
Regional School of Public Administration
(Phase 1)
GIVE CONSIDERATION TO
EXPLANATIONS WHICH ARE JUSTIFIED
ON OBJECTIVE GROUNDS:
ReSPA
– Economy of method
– Particular technical solutions
– Originality
– Favorable trading conditions
SLIDE NO. 51
EVALUATION OF
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
TENDERS
SYSTEMATIC, THROUGH AND
Regional School of Public Administration
(Phase 1)
FAIR - AND SEEN TO BE FAIR
KEY RULE:
ReSPA
– Evaluation is only of
specified factors against
specified criteria
SLIDE NO. 52
EVALUATION OF TENDERS
A Joint Initiative of the
(cont.)
European Union and the OECD,
principally financed by the EU
FACTORS TO BE ASSESSED
– Price
– Capability of tenderer
Regional School of Public Administration
(Phase 1)
– Technical ability
– Quality standards
– Financial Aspects
ReSPA
EVALUATION DOCUMENTATION
– Evaluation Process
– Evaluation Matrices
– Evaluation Report
SLIDE NO. 53
EVALUATION MATRICES
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
VALUABLE AIDS TO MAKE
THE RIGHT DECISION
Regional School of Public Administration
(Phase 1)
ENSURE ALL ISSUES
ARE ADDRESSED
ReSPA
PROVIDE CLEAR AUDIT TRAIL
USEFUL BASIS FOR DEBRIEFING
SLIDE NO. 54
SIMPLE EVALUATION
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
MATRIX
CONDITION TENDER 1 TENDER 2
Deviation Price/ Deviation Price/
Regional School of Public Administration
(Phase 1)
Adjustment Adjustment
Tender Price
Commercial
ReSPA
Payment Schedule +/- +/-
Delivery Time +/- +/-
Technical
Spare parts + +
Adjusted tender
price
SLIDE NO. 55
TENDER EVALUATION
A Joint Initiative of the
European Union and the OECD,
REPORT
principally financed by the EU
Contracting authority
Tender information
Regional School of Public Administration
(Phase 1)
Tendering process
Tender opening
ReSPA
Examination of tenders
Evaluation of
substantially-responsive tenders
Post-qualification
Decision/recommendation for award
SLIDE NO. 56
POST-QUALIFICATION OF
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
Regional School of Public Administration
(Phase 1)
TENDERERS
A. POST-QUALIFICATION PROCEDURES
(if no pre-qualification)
ReSPA
B. POST-QUALIFICATION PROCEDURES
(if pre-qualification took place)
SLIDE NO. 57
CONTRACT AWARD
A Joint Initiative of the
European Union and the OECD,
PROCEDURES
principally financed by the EU
Notifying the tenderer that
the tender has been accepted
Preparing the contract agreement and
Regional School of Public Administration
(Phase 1)
submitting it to tenderer for signing
Checking that all effectiveness conditions
have been met within the time period
ReSPA
allowed
Informing other tenderers about
the outcome of the tendering process
Where appropriate,
releasing the tender securities
SLIDE NO. 58
REJECTION OF
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
ALL TENDERS
ACCEPTABLE IF:
Regional School of Public Administration
(Phase 1)
The price of the most advantageous
tender substantially exceeds
the cost estimate
ReSPA
All tenders are non-responsive
A lack if competition
SLIDE NO. 59
REJECTION OF
A Joint Initiative of the
European Union and the OECD,
ALL TENDERS (cont.)
principally financed by the EU
BEFORE RE-TENDERING,
IT MAY BE NECESSARY TO REVISE:
Regional School of Public Administration
(Phase 1)
Scope
Specifications
ReSPA
Packaging
Contract conditions
SLIDE NO. 60
TRADE TERMS
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
INCOTERMS - 2000
– Set of international rules for
interpretation of trade terms used in
Regional School of Public Administration
(Phase 1)
foreign trade
– Based on use of “electronic data
interchange” (EDI)
ReSPA
COST
– Cost of goods
– Freight
– Transport insurance
SLIDE NO. 61
TRADE TERMS (cont’d)
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
DELIVERY TO NAMED PORT/PLACE
– Deliver goods into custody of freight
agent, carrier or owner
Regional School of Public Administration
(Phase 1)
TRANSPORT METHODS
– Rail
– Road
ReSPA
– Sea
– Air
– Inland waterway
– Multi-modal (combination)
– Unnamed
SLIDE NO. 62
A Joint Initiative of the
TRADE TERMS (cont’d)
European Union and the OECD,
principally financed by the EU
RISK
Regional School of Public Administration
(Phase 1)
– Transfer of legal responsibility from
seller to purchaser at named point
Damage or loss
ReSPA
Delivery period
SLIDE NO. 63
INCOTERMS / SHIPPING
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
MOVEMENT OF GOODS -
COUNTRIES
Regional School of Public Administration
(Phase 1)
– Commercial transactions - risky
Lost, damaged, non-delivery
ReSPA
BOTH BUYER / SELLER WANT SUCCESS
– Contract:
INCOTERMS defines costs,
risks, transfer of title, documents
SLIDE NO. 64
INCOTERMS / SHIPPING
(cont’d)
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
INCOTERMS ACCEPTED
WORLD-WIDE
Regional School of Public Administration
(Phase 1)
REVISED IN 1990 TO
TAKE INTO CONSIDERATION
CHANGES IN TRANSPORTATION AND
ReSPA
COMMUNICATIONS SINCE LAST ISSUE
LAST REVISION IN 2000 MAINLY TO
CHANGE IN SOME INSTANCES THE
TERMINOLOGY FOR CONSISTENCY AND
EASE OF UNDERSTANDING
SLIDE NO. 65
INCOTERMS 2000
A Joint Initiative of the
European Union and the OECD,
Groups “E” & “F”
principally financed by the EU
GROUP E EXW Ex Works (.. named
departure place)
Regional School of Public Administration
(Phase 1)
GROUP F FCA Free Carrier (.. named
Main Carriage place)
ReSPA
Unpaid FAS Free Alongside Ship (..
named port of shipment)
FOB Free on Board (.. named
port of shipment)
SLIDE NO. 66
INCOTERMS 2000
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
Group “C”
CFR Cost and Freight (.. named
port of destination)
Regional School of Public Administration
(Phase 1)
CIF Cost, Insurance and Freight
GROUP C (.. named port of
Main Carriage destination)
ReSPA
Paid CPT Carriage Paid to (.. named
place of destination)
CIP Carriage and Insurance to
(.. named place of
destination)
SLIDE NO. 67
INCOTERMS 2000
A Joint Initiative of the
European Union and the OECD,
principally financed by the EU
Group “D”
DAF Delivered at Frontier
(.. named place)
Regional School of Public Administration
(Phase 1)
DES Delivered ex Ship (.. named
port of destination)
GROUP D DEQ Delivered Ex Quay (.. named
ARRIVAL port of destination)
ReSPA
DDU Delivered Duty Unpaid
(.. named place of
destination)
DDP Delivery Duty Paid (.. named
place of destination)
SLIDE NO. 68
CIF
A Joint Initiative of the
European Union and the OECD,
Cost, Insurance, Freight
principally financed by the EU
SELLER’S BUYER’S
PRIMARY DUTIES PRIMARY DUTIES
- contract for carriage, pay - accept delivery of
Regional School of Public Administration
(Phase 1)
freight goods upon shipment,
- deliver goods on board when documents
- obtain export license required are tendered
- contract for insurance to buyer and are
ReSPA
- furnish buyer invoice, deemed to “represent
clear bill of lading, the goods”
certificate of insurance - pay unloading cost
- pay loading costs when they are not
included in the freight
- pay unloading costs that
are included in the freight
SLIDE NO. 69
CIF
A Joint Initiative of the
Cost, Insurance, Freight (cont’d)
European Union and the OECD,
principally financed by the EU
REQUIRED DOCUMENTS
– Commercial invoice
Regional School of Public Administration
(Phase 1)
– Bill of lading
– Export licence
ReSPA
– Insurance policy
OPTIONAL DOCUMENTS
– Certificate of origin
– Other documents needed for import
clearance
SLIDE NO. 70
SELLERS OBLIGATION IN
A Joint Initiative of the
FOB AND CIF TERMS
European Union and the OECD,
FOB
principally financed by the EU
CIF
Cost Cost
– Obtain export – Obtain
Regional School of Public Administration
(Phase 1)
licence export licence
– Pay export taxes – Pay export taxes
– Deliver – Deliver goods
goods on
ReSPA
on board vessel
board vessel – Make shipping
arrangements
– Pay ocean freight
– Obtain marine insurance
on FPA terms for
CIF plus 10%
SLIDE NO. 71
SELLERS OBLIGATION IN
A Joint Initiative of the
FOB AND CIF TERMS (cont’d)
European Union and the OECD,
principally financed by the EU
FOB CIF
RISK RISK
– Until goods pass – Until goods pass
Regional School of Public Administration
(Phase 1)
rail rail
DOCUMENTATION DOCUMENTATION
– Commercial invoice – Export licence
ReSPA
– Clean receipt – Certificate of origin
– export license – Inspection
– Certificate of origin certificate
– Inspection – Insurance certificate
certificate – Clean bill of lading
SLIDE NO. 72
DOCUMENTS USED
A Joint Initiative of the
European Union and the OECD,
IN DOCUMENTARY CREDITS
principally financed by the EU
TRANSPORT DOCUMENTS
– BUYER SELECTS TYPE REQUIRED
Regional School of Public Administration
(Phase 1)
Marine/ocean bill of lading
Non-negotiable sea waybill
Charter party bill of lading
ReSPA
Multi-modal transport
document
Air transport document
Road, rail or inland waterway
transport documents
SLIDE NO. 73
DOCUMENTS USED
A Joint Initiative of the
IN DOCUMENTARY
CREDITS (cont’d)
European Union and the OECD,
principally financed by the EU
INSURANCE DOCUMENTS
Regional School of Public Administration
(Phase 1)
– TYPE OF INSURANCE COVER
– ALL RISKS INSURANCE COVER
ReSPA
OTHER DOCUMENTS
– EXPORT LICENSE
– INSPECTION CERTIFICATE
– CERTIFICATE OF ORIGIN
SLIDE NO. 74