applying for public procurement contracts in poland

Applying for public procurement contracts in Poland

• Legal framework and GPA thresholds• General requirements and stages for

bidding tender• Contract award procedures

Legal framework and GPA thresholds

Legal framework for public procurement in Poland

Act of Public Procurement Law (PPL) adopted on 29th January 2004:

• The PPL is applied to the contract above 30 000 Euro• Procedures are conducted in writing and in Polish language (in

particularly justified cases the contracting authority may agree on the submission in a language commonly used in international trade or in a language of the country in which the contract is awarded)

3English version of PPL: https://www.uzp.gov.pl/__data/assets/pdf_file/0015/30336/Public_Procurement_Law_2015_consolidated.pdf

Information in this document is applicable only to tenders that equal or exceed the GPA and EU thresholds

Goods and services Construction services

Procurement Entities EUR* Zloty* EUR* Zloty*Central Government Entities 135,000 563,612 5,225,000 21,813,853

Sub-Central Government Entities 209,000 872,554 5,225,000 21,813,853

Other Entities 418,000 1,745,108 5,225,000 21,813,853

4

Thresholds for the period 2016-2017

* Thresholds in EUR and Zloty are set for 2 years period and do not change depending on the exchange rate

General requirements and stages for bidding tender

6

To take part in public procurement process supplier should take next steps*

Find relevant public procurement notice

Request and receive specifications

Submit tender and deposit

Prepare necessary documents

General condition of participating in public contract award procedure is to know about the procedures in course. There are two general categories of sources of information on procedures: public and commercial sourcesDetails on slide 8

Specification of Essential Terms of the Contract (SETC) is primary document in tender. In SETC awarding entity clearly and in detail states all data necessary for preparing tenders by suppliersMore about SETC on slides 9-10

In order to confirm compliance with tender requirements, supplier is obliged to provide confirming documents, stated in SETCMore information about criteria and documents on slides 11-23

Documentation prepared by supplier should fully comply with SETC. However, while submitting documents, suppliers make various types of errorsAbout criteria and most common errors on slides 24-28Deposit requirements are stated on slides 30-31

*Steps are applicable for the most common purchasing procedure and can be different for other types

Examination of tenders

Public procurement process results in concluding public contract with selected supplier

7

Select the most advantageous tender

Secure contract performance

Conclude public contract

Awarding entity selects the most advantageous tender based on objective tender evaluation criteria stipulated in SETC. It can be price and other criteriaList of tender evaluation criteria can be found on slide 29

Supplier, whose tender was selected as the most advantageous is required to provide security to cover the claims in respect of non-performance or improper performance of the contractMore about security on slides 30-31

After receiving security of contract performance, awarding entity should conclude public agreement with supplier. Failure to perform public contract by supplier would result in sanctionsMore information about sanctions on slide 32

Examination of tenders

Public procurement notices could be found in electronic form

8

• The “Supplement to the Official Journal of the European Union” dedicated to European public procurement is called the Tenders Electronic Daily (TED)and available online at: http://ted.europa.eu/TED/main/HomePage.do

Commercial internet portals* publishing notices:• http://www.zamowieniepubliczne.pl/ (available in English)• http://www.egospodarka.pl/• http://www.komunikaty.pl/

* Allow search current tenders by key-words, CPV code, date of publishing and deadline for submitting

Find relevant public procurement notice

Specification of Essential Terms of the Contract (SETC) is primary document in tender

9

SETC always includes:

1. Name (company name) and address of the contracting authority

2. Procedure for awarding the contract

3. Description of the subject-matter of contract4. Time limit for contract performance

5. Conditions for participation in the procedure and description of the method used for the evaluation of the fulfilment of those conditions

6. Information concerning declarations and documents to be provided by supplier to confirm the fulfilment of the conditions for participation in the procedure

7. Information on the manner of communication between the contracting authority and suppliers as well as of dispatch of declarations and documents, indication of persons authorised to communicate with the suppliers

8. Deposit requirements9. Time limit during which a supplier must maintain

its tender10. Description of the manner of the tender preparation

11. Date and place of the submission and of the opening of tenders

12. Description of the method of the price calculation

13. Description of criteria which the contracting authority will apply in selecting a tender, specifying also the importance of particular criteria and method of evaluation of tenders

14. Information concerning formalities which should be met following the selection of a tender in order to conclude a public procurement contract

15. Requirements concerning the security on due performance of the contract

16. Provisions of essence to the parties which will be introduced into the concluded public procurement contract, general terms of the contract or model contract, if the contracting authority requires the supplier to conclude a public procurement contract with it on these terms

17. Information on legal protection measures available to a supplier during the contract award procedure


Hints and tips

10

Explanations and amendments to SETC:

Each of the suppliers has the right to address the awarding entity on providing explanations to SETC

Time limit when suppliers can address questions on explanation of SETC expires on the last day of the half of the period of submitting tenders (minimum on the 20th day)

Awarding entity is obliged to provide explanations immediately, however not later than:

• within 6 days prior the closing date of submitting tenders

• within 4 days prior the closing date of submitting tenders – in restricted tendering and negotiated procedure with publication, in case the need arises to award contract

In justified cases the awarding entity can amend SETC prior expiry of the period of submitting tenders

Contracting authority provides SETC:

• On the web-site from the date of publishing notice, for free or

• In a paper form, at the request of supplier, within 5 days (fee for covering printing and delivery costs may be required)


11

Criteria for exclusion of suppliers from contract award procedures (1/2)

Suppliers against whom the winding up procedure has been started or whose bankruptcy has been declared

Suppliers who are in arrears with payment of taxes, charges or social insurance or health insurance premiums

• Natural persons • Registered partnership whose partner • Professional partnership whose

partner or member of the management board

• Limited partnership and limited joint-stock partnership whose general partner

• Legal persons whose active member of the managing body

has/have been validly sentenced for an offence committed in: • connection with a contract award procedure• offence against the rights of people

performing paid work• offence against the environment• for bribery• for an offence against economic turnover or

for any other offence committed with the aim of gaining financial profits• for treasury offence• offence of participation in organized crime

group or in a union aimed at committing an offence or treasury offence


Criteria for exclusion of suppliers from contract award procedures (2/2)

Collective entities, with respect to whom a court has issued a decision prohibiting them from competing for contracts

Suppliers who directly performed actions in connection with the preparation of the conducted procedure

Suppliers who have not provided a tender deposit by the expiry of the time limit for tender submission

Suppliers who provided false information that have impact or might have impact on the outcome of the procedure being conducted

Those who failed to evidence the fulfilment of conditions for participation in the procedure

Suppliers who as part of the same capital group, submitted separate tendersor submitted separate requests to participate in the same contract award procedure

12


To compete for a contract, suppliers should meet several conditions

1. Authorisations to perform specific activities or actions, if such authorisations are required by the law

2. Knowledge and experience3. Appropriate technical potential and personnel capable of performing a

contract4. Economic and financial standing

13

As additional requirement, in the contract notice can be stipulated that only those suppliers may compete for a contract whose employed staff is in over 50% composed of disabled persons

The description of the manner of the fulfilment of conditions is included in the tender notice


Documents and declarations required from suppliers

There has been closed catalogue of documents, which may be required by the awarding entity. Also the form of the documents submitted has been strictly establishedSuch documents are specified in: https://www.uzp.gov.pl/__data/assets/pdf_file/0018/21555/Regulation_item_231.pdf

14

Supplier shall provide all required documents and declarations not later than on the date set for submission of requests to participate in the procedure or the date set for submission of tenders

• Evidence of absence of conviction for natural and legal persons

• Evidence of non-bankruptcy and financial status

• Evidence of compliance with fiscal obligations• Evidence of compliance with social security

obligations

• Proof of the tenderer's identity• Evidence of economic and financial standing• Evidence of technical and/or professional

ability• Evidence of quality assurance

Minimal set of documents, which can be required:


Certificate required to participate in public procurement (1/9)

15

Name Evidence of absence of conviction for natural persons

Mandatory or optional Mandatory above EU thresholds, optional below the thresholds

Frequently requested Frequent (71-99%)

Format of submission Electronic format: xml, Paper format

Time of submission When the offer is submitted

Flexibility of submission Copies of the document are permitted

Template http://ec.europa.eu/markt/ecertis/documentFile?id=112162

Document content details

Identity of the issuing authorityIdentity of the receiving party, including: Address, Unique identifierIssuing date, Issuing placeDocument-specific information: relevant court decisions (if any)

Technical characteristics for electronic documents

Electronically signed, via advanced signature based on a qualified certificate

Technical characteristics for paper documents

Signed, Stamped

Validity period Document validity is not limited, but must have been issued in the last 6 months

Translation requirements

Informal translation

Foreign equivalence Equivalent documents issued by judicial or governmental bodies, if available

Source reference Департамент інформаційно-аналітичного забезпечення МВС, інформаційні підрозділи ГУМВС, УМВС України в областях та місті Києві, інформаційні підрозділи районних управлінь МВС України

Source contacts http://www.npu.gov.ua/uk/publish/article/736798

Documents Оригінал та ксерокопія документа, що посвідчує особу (паспорт громадянина України, паспорт громадянина України для виїзду за кордон, посвідка на проживання тощо)

Time Протягом 30 календарних днів, в разі відсутності необхідності проведення додаткових перевірок –протягом 15 діб

Applicable fee Безкоштовно

Requirements to certificate in Poland Analogue in Ukraine



16

Name Evidence of absence of conviction for legal persons



Format of submission Electronic format: xml, Paper format





Identity of the issuing authorityIdentity of the receiving party, including: Address, Unique identifierIssuing date, Issuing placeDocument-specific information: relevant court decisions (if any)




Signed, Stamped







Analogue in Ukraine is absent

Certificate may be replaced by “Довідка про внесенняюридичної особи до Єдиного державного реєстру осіб, яківчинили корупційні або пов’язані з корупцієюправопорушення ”

Since this register is still not available, a certificate can be issued in free form and signed by company’s authorized person


17

Name Evidence of non-bankruptcy and financial status



Format of submission Paper format



Template -


Document-specific information: Identification data, details and scope of incorporation and representation. details and scope of chosen model of liquidation or bankruptcy


Not applicable (no electronic document is available)


Signed, Stamped




Foreign equivalence Equivalent documents issued by judicial or governmental bodies, if available Declarations under oath or solemn declarations

Source reference Міністерство юстиції УкраїниЄдиний реєстр підприємств, щодоякихпорушено провадження у справі про банкрутство

Source contacts https://kap.minjust.gov.ua/services?product_id=3&is_registry=1&keywords=&usertype=all

Documents Код боржника за ЄДРПОУ (для юридичних осіб)Дата і номер запису в Єдиному державному реєстрі юридичних осіб та фізичних осіб -підприємців про проведення державної реєстрації (для фізичних осіб -підприємців)

Time У день подання електронного запиту через офіційний веб-сайт

Applicable fee Безкоштовно, потрібна реєстрація на порталі електронних послуг Міністерства юстиції України




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Name Evidence of compliance with fiscal obligations

Mandatory or optional

Mandatory above EU thresholds, optional below the EU thresholds




Flexibility of submission

Copies of the document are permitted



Identity of the issuing authority; identity of the receiving party, including address, unique identifier; issuing date; issuing place.Document-specific information: confirms that at a given date no taxes are overdue, or stipulates the type and the amount of the taxes overdue




Signed, Stamped




Foreign equivalence Equivalent documents issued by judicial or governmental bodies, if available Declarations under oath or solemn declarations

Source reference

Орган ДФС за основним місцем обліку

Source contacts

http://sfs.gov.ua/zakonodavstvo/podatkove-zakonodavstvo/nakazi/62931.html

Documents Заява з обов’язковим посиланням на відповідний нормативно-правовий акт та назвою підприємства, до якого Довідку буде подано

Time Строк розгляду заяви– 5 робочих днів. Строк дії довідки – 10 календарних дів

Applicable fee

Безкоштовно




19

Name Evidence of compliance with social security obligations






Template -


Identity of the issuing authorityIdentity of the receiving party, including: Address, Unique identifierIssuing date, Issuing placeDocument-specific information: confirmation whether the economic operator has met the social security obligations at a given date




Signed, Stamped





Source reference Орган ДФС за основним місцем обліку

Source contacts http://kyiv.sfs.gov.ua/okremi-storinki/arhiv1/138334.html

Documents Заява у довільній формі для отримання довідки про відсутність заборгованості зісплати ЄСВ

Time Протягом 15 календарних днів





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Name Proof of the tenderer's identity






Template -


Identification dataDetails and scope of incorporation and representationDetails and scope of chosen model of liquidation or bankruptcy




Signed, Stamped




Foreign equivalence Equivalent documents issued by judicial or governmental bodies, if availableDeclarations under oath or solemn declarations



Source reference Міністерство юстиції України:Єдиний державний реєстр юридичних осіб, фізичних осіб-підприємців та громадських формувань

Source contacts https://usr.minjust.gov.ua/ua/extractedr

Documents Організаційно правова формаНазва юридичної особиП.І.Б. фізичної особи підприємця

Time У день подання електронного запиту через офіційний веб-сайт

Applicable fee 50 UAH


21

Name Evidence of economic and financial standing


Frequently requested Common (41-70%)




Template -

Document content details Balance sheet, Profit and loss statement,Additional information (introduction to the statement and descriptions)Information from a bank wherein the economic operator holds an account confirms: the amount of financial resources held or the economic operator's creditworthiness




Signed

Validity period Document validity is limited to: 3 years and if the activity period is shorter - in this period - in case of financial reportsIn case of information from banks document validity is not limited, but must have been issued in the last 3 months

Translation requirements Informal translation

Foreign equivalence No specific rules exist

Source reference

Копія балансу за останній звітній період(форма Ф-1 «Баланс»)Копія Звіту про фінансові результати за останній звітній період (форма Ф-2 «Звітпро фінансові результати») Довідка про кредити та обороти та відсутність заборгованості

Source contacts -

Documents Заява у довільній формі

Time -





22

Name Evidence of technical and/or professional ability






Template -

Document content details Varies from document to document but can not exceed: List of corresponding works executed in up to the previous 5 years; List of corresponding supplies or services executed in up to the previous 3 years; List of tools and appliances at the tenderer's disposal necessary for executing the contract; Description of the technical equipment and organizational -technical measures applied by the supplier or service provider to ensure the quality and description of the science and research base owned by the economic operator or at its disposal;Statements about the average, annual employment size on the part of economic operator of services or works and size of managerial staff, within the period of past three years prior to the expiry of the time limit for submission of tenders or requests to participate in a procedure, and if the duration of economic activity is shorter – within that period; List of persons and entities which may be involved in executing the contract performance, particular responsible for service provision, quality control, management of works, along with information on theirprofessional qualifications, experience and education necessary to perform a contract, as well as the scope of activities carried out by them and information on the grounds for disposal of those persons; Statements that the personnel involved has appropriate qualifications, if these are required by law


-


Signed

Validity period Document validity is not limited in time

Translation requirements Informal translation

Foreign equivalence No specific rules exist

Requirements to certificate in Poland



23

Name Evidence of quality assurance


Frequently requested Rare (1-15%)




Template No


Identity of the issuing authorityIdentity of the receiving party, including: AddressIssuing dateDocument-specific information: The contracting authority must accept equivalent attestations from other Member States, or generally any other documents proving compliance with equivalent requirements


-


Signed, Stamped

Validity period Validity period is set by accrediting institution



Foreign equivalence Declaration of compliance

Source reference Акредитовані органи з сертифікації продукції

Source contacts http://naau.org.ua/reyestr-akreditovanix-oov/

Documents Документи, які підтверджують якість продукціїТехнічний опис декларованої продукціїКонтрактІнвойсТоварно-транспортна документація

Time Залежить від обраного органу з сертифікації продукції

Applicable fee Залежить від обраного органу з сертифікації продукції



Suppliers shall appoint a plenipotentiary to represent them in the contract award procedure and conclusion of a public procurement contract

24

If a tender submitted by suppliers has been selected, the contracting authority may request prior to the conclusion of a public procurement contracts, an agreement resolving cooperation between those suppliers

Suppliers shall be jointly responsible for the execution of the public contract and provision of security on due performance of the contract

Suppliers may compete for a contract jointly:

Hints and tips


Tender submitted by supplier can be rejected by awarding entity

Rejection criteria are:

• Tender is not in conformity with the Act PPL

• Tender’s content is inconsistent with the SETC

• Tender’s submission is an act of unfair competition

• Tender contains an abnormally low price in relation to the subject-matter of the contract

• Tender was submitted by a supplier excluded from the award procedure or one that was not been invited to tender

• Tender contains computational errors in the calculation of prices

• Within 3 days from the submission of notification, the supplier did not agree to the correction of a error

• Tender is not valid under separate provisions

25


Most common errors made in documents submitted by suppliers (1/2)

Spelling errors and errors in writing, meaning wrong wording, unintentional spelling errors, language error or omitting word

Calculation errors, meaning arithmetic errors:

• errors in project estimate

• errors in calculating gross price

• other errors, meaning inconsistencies between tender and specification of essential term of the contract, not causing significant changes in tender

• other inconsistencies in tender, meaning declaring apart from the period in accordance with the awarding entity’s request other period of performance of contract

26


Most common errors made in documents submitted by suppliers (2/2)

Specific form (in most cases – of closed envelope) has to be kept

Proper addressing and signing applications on participation in procedure or tenders in accordance with guidelines from awarding entity:

• Addressee

• Title of the envelope

• Numbering and signing each written page

27

Formal errors do not result in any sanctions (such as rejection of the offer). The most part of errors made by suppliers can be corrected on motion of awarding entity in course of procedure


Most often errors concern procedure powers of attorney

Not submitting power of attorney together with application on participation in tender

Submitting together with tender a defective power of attorney, meaning:

• in wrong form (i.e. in form of xero-copy – instead of original document or copy certified by notary pubic)

• signed by unauthorised representative of members of the management board or against the rules of representation disclosed in the register of entrepreneurs (i.e. power of attorney signed by one member of the management board when signatures of two members are required);

• lack of signature of any of suppliers applying for awarding public contract in case of applying for contract by consortium

28


Selection of the most advantageous tender is based on tender evaluation criteria stipulated in SETC

29

Tender evaluation criteria are price or price and other criteria

In particular:

• Quality, Functionality and Technical parameters

• Use of best available technologies with regard to the impact on the environment

• Exploitation costs

• After-sales service

• Period of contract performance

Awarding entity specifies the importance of particular criteria and method of evaluation of tenders

Other than the price mandatory tender evaluation criteria: https://www.uzp.gov.pl/__data/assets/pdf_file/0015/21561/Regulation_on20non-_price_mandatory_tender_evaluation_criteria.pdf

Select the most advantageous tender

Deposit and securing contract performance

Prior to the final date for submission of tenders

Not more than 3 % of the contract value

• Cash*• Bank sureties or guarantees of collective

savings-loan fund, however the surety of collective savings-loan fund is always a financial surety

• Bank guarantees• Insurance guarantees

Immediately upon the selection of the best tender or cancellation of the procedure, except for the supplier whose tender has been selected

30

Depositsecures that only suppliers interested in concluding

contract would participate in the procedure

Securityserves to cover the claims in respect of non-performance

or improper performance of the contract

Deadline for payment

Amount

Form of payment

At the latest on the day of signing the contract with the awarding entity

Fixed at 2 to 10% of the price quoted in the tender

• Cash*• Bank sureties or guarantees of collective

savings-loan fund, however the surety of collective savings - loan fund is always a financial surety

• Bank guarantees• Insurance guarantees

Within 30 days of the completion of the contract and acknowledgement by the contracting authority as duly performed

* A deposit paid in cash shall be paid by a bank transfer to a bank account indicated by the contracting authority and shall be kept by the contracting authority in a bank account.

Return of payment

Submit tender and deposit Secure contract performance

Hints and tips

31

With the approval of the contracting authority a security may be provided also:• bills of exchange with the surety of bank or collective savings-loan fund• by establishing a pledge on securities issued by the State Treasury or unit of

territorial self-government• by establishing a registered pledge, in accordance with the principles laid down

in the provisions concerning registered pledges and the pledge register

Reasons for keeping deposit by awarding entity:• Supplier in response to the request of awarding entity does not provide

necessary statements or documents or powers of attorney• Supplier refused to sign the public procurement contract on terms specified

in the tender• Supplier failed to produce the required security on due performance of the

contract• The public procurement contract could not be signed due to a fault on the

part of the supplier

Security and deposit

Submit tender and deposit Secure contract performance

Failure to perform the contract

Failure to perform public contract by supplier would result in sanctions stipulated in the agreement by awarding entity and sanctions resulting from prospective tort responsibility

Supplier who has caused damage by not performing the contract or by its improper performance – will be entered on list of entrepreneurs who cannot participate in public contract award procedures for 3 years

32

Conclude public contract

Contract award procedures

34

The general purchasing procedures are open and restricted tendering

General procedures:

• Open tendering - all interested suppliers may submit their bids

• Restricted tendering - suppliers submit requests to participate in a contract award procedure, but only invited suppliers can bid

Other procedures (only under the circumstances specified in the Public Procurement Law act):

• negotiated procedure with publication

• competitive dialogue

• negotiated procedure without publication

• single source procurement procedure

• request-for-quotations procedure

• electronic bidding procedure*

*The procedure of an electronic bidding has been applied only for contracts of value below the EU threshold

Typical Open tendering process consists of 5 main steps

35

Publication of notice on contract

Submitting tenders by suppliers

Evaluation of tenders

Concluding contract

• 40 days from the date of dispatching the notice via electronic means• 47 days from dispatching the

notice in other way

Tender evaluation criteria are price or price and other criteria. In particular: •Quality, Functionality and Technical parameters•Use of best available technologies with regard to the

impact on the environment•Exploitation costs•After-sales service • Period of contract performance

Invitation for suppliers to submit tenders

Minimum period for placing tenders

• not less than 5 days if information was sent by fax or by E-mail• not less than 10 days if it was

sent in other way

Awarding entity concludes the public contract agreement:

Other than the price mandatory tender evaluation criteria: https://www.uzp.gov.pl/__data/assets/pdf_file/0015/21561/Regulation_on20non-_price_mandatory_tender_evaluation_criteria.pdf

Selecting the most

advantageous tender

• Amount of the deposit - not more than 3 % of the contract value• Deposit shall be

paid prior to the final date for submission of tenders

Deposit

Hints and tips

36

• If the contract value is above EU thresholds

• Information on contract has been included in the initial informational notice

• Such initial informational notice included all information required in the notice

• Such information is available in time of publishing the notice and has been dispatched to the Office for Official Publications of the European Communities or published on the purchaser’s profile for at least 52 days and not more than 12 months prior to the date of dispatching the notice on contract

The minimum period of placing tenders:

• 22 days from the date of dispatching the notice via electronic means

• 29 days from dispatching the notice in other way

• In establishing minimum periods for submitting tenders the hour of submitting tender in the last day of such period is also of certain significance. Therefore breach of the time limit means any delay in submitting tender regardless from the exact number of minutes or hours of such delay

Deadlines

Typical Restricted tendering process consists of 6 main steps

37

Publication of notice on contract

Submitting tenders

Concluding contract

• 30 days from the date of dispatching the notice via electronic means• 37 days from dispatching the

notice in other way

5 to 20 suppliers satisfying the conditions for participation in the procedure

Invitation for suppliers to submit requests to participate in a contract award procedure

Minimum period for placing requests

• not less than 5 days if information was sent by fax or by E-mail• not less than 10 days if it was

sent in other way

Awarding entity concludes the public contract agreement:

Evaluation of the tenders and selecting

the most beneficial

one

Initial verification of partici-

pants

Invitation to submit

tenders and deliver

SETC

• 40 days from the date the invitation to submit tenders is dispatched

Minimum period for placing tenders

Hints and tips (1/2)

38

1. In case of an urgent need:

Minimum periods of competing for participation can be shorter, although they cannot be shorter than:• 10 days from the date of dispatching the notice via electronic means• 15 days from the date of dispatching the notice by fax

Minimum periods of competing for submitting tenders can be shorter, although they cannot be shorter than:• 10 days from the date the invitation to submit tenders is dispatched

2. Declaration and documents

Supplier shall attach to his request to participate in contract award procedure a declaration that he satisfies the conditions for participation in the award procedure, and where the contracting authority requires so, he shall also submit documents confirming the fulfilment of those conditions

Hints and Tips (2/2)

39

• If the contract value is above EU thresholds

• Information on contract has been included in the initial informational notice

• Such initial informational notice included all information required in the notice

• Such information is available in time of publishing the notice and has been dispatched to the Office for Official Publications of the European Communities or published on the purchaser’s profile for at least 52 days and not more than 12 months prior to the date of dispatching the notice on contract

The minimum period of placing tenders:

22 days from the date of dispatching the notice via electronic means