this project is co-financed by the european union and the republic of turkey

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Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım

Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey

This project is co-financed by the European Union and the Republic of Turkey

Advanced Training PRAG Services 15-17 March 2011

PRAG Procurement Service Contracts – version November 2010Advance module – Day III

RCP-CICBy: Berk Babila, Managing Director - Ecorys in [email protected]

Ankara, 17 March 2011

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• Tender Documents• Service tender dossier• Evaluation of tenders• Contract award• Manage the contract• Modifying contracts

Content

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Tender Documents

Drafting the contents of the tender dossier

• TD must be carefully drafted for:• the proper execution of the contract • the sound functioning of the procurement procedure

• must contain all the provisions and information that tenderers need to present their tenders:

• the procedures to follow, the documents to provide, cases of non-compliance, award criteria and their weightings, stipulations regarding subcontracting, etc.

• representatives of the final beneficiaries should participate in the tender preparation at an early stage.

• the CA is responsible for drawing up these documents• Given the technical complexity of many contracts, the preparation of the tender dossier

may require the assistance of one or more external technical specialist(s) – declaration of objectivity and confidentiality

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Tender Dossier for Service

Content (in accordance with Annex B8)

Letter of Invitation with • A. Instructions to tenderers• B. Draft Contract Agreement and Special Conditions

with annexes• C. Other information (shortlist notice, admistrative

compliance grid, evaluation grid)• D. Tender submission form

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A. Instructions to tenderers – setting the timetableDATE TIME

Site visit (if any) < Date / Not applicable > < Time / Not applicable >

Information meeting (if any) < Date / Not applicable > < Time / Not applicable >

Deadline for request for any clarifications from the CA < Date 21 days before deadline for tenders >

< Time >

Last date on which clarifications are issued by the CA < Date 11 days before deadline for tenders >

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Deadline for submission of tenders < Date > < Time >

Interviews (if any) < Date / Not applicable > * -

Completion date for evaluation of technical offers < Date > * -

Notification of award to the selected tenderer < Date at most 90 days after deadline for tenders > *

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Contract signature < Date at most 150 days after deadline for tenders > *

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Commencement date < Date > * -

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Setting the timetable

Plan the tendering

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Tender Dossier for Service (3)

A. Instructions to tenderers – content of tenders Technical Offer

• Tender submission form including• Signed statements of exclusivity and availability • Signed declaration from each legal entity• A completed financial identification form• Legal entity file and the supporting documents• Duly authorised signature

• Organisation and methodology• Key experts• Documentary evidence for key experts• Documentary evidence for company(ies) – PRAG 2.3.3

Financial Offer

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B. Draft Contract: Special Conditions

I. General Conditions for service contracts II. Terms of Reference (Fee-based/Global)III. Organisation and Methodology (provide template)IV. Key experts (incl. template – list of experts + model for CV)V. Budget/Budget Breakdown (include selected template)VI. Forms and other relevant documents

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III. Organisation and Methodology Rationale

• Comments on ToR• Explanation of Assumptions and Risks

Strategy• Outline of the approach for contract implementation• List of activities• Related inputs and outputs• Description of input from each consortium member• Description of support facilities (back-stopping)• Description of sub-contracting (if any)

Timetable of activities• Timing, sequence and duration• Identification and timing of major milestones• Expected no. of working days (fee-based contracts)

Communications Plan Logframe

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IV. List and CVs of Key Experts

• Standard summary table for key experts• Template / model CV

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V. Budget

• Budget for a Global Price Contract• Budget breakdown for a Fee-Based Contract

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VI. Forms and other relevant documents

• Financial Identification• Pre-Financing guarantee form• Legal Entity File (Individual/Private

Companies/Public Bodies)

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C. Other information

• Shortlist Notice• Administrative Compliance Grid• Evaluation Grid

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D. Tender submission form

• Service Tender Submission Form• Format of the Declaration Referred to in

Point 3 of the Tender Submission Form• Statement of exclusivity and availability

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Evaluation of tenders

The evaluation committee

minimum 3 for service & supply

tenders andminimum 5 for works tenders

Have equal voting rights

Evaluator

Evaluator

Evaluator

Secretary

Chairperson

must sign a Declaration of Impartiality & Confidentiality

(including non-voting members)

should attend all meetings whereby any absence has to be recorded and

explained in the evaluation reportare appointed and nominated on a personal basis by the Contracting

Authority

keeping minutes, registering

attendance and drafting the

Evaluation Report

to ensure respect for PRAG

procedures, impartiality and

transparency of the evaluation

Non-voting MembersVoting Members

possess the technical and administrative

capacities necessary to give

an informed opinion on the tenders

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Evaluation of tenders (2)

Stages in the evaluation process Receipt and registration of tenders: Date and time of

reception must be recorded (outer envelopes numbered in order of receipt)

Tender Opening session• Part 1. Preparatory Phase (1st meeting of the evaluation• committee)• Part 2. Compliance with formal submission requirements • (summary of tenders received – annex B10)

Evaluation of offers • Part 1. Administrative Compliance – annex B8• Part 2. Technical compliance

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Summary of tenders received – annex B10• Tenderer name• When received• Received by (initials)• No. of packages• Received in time (yes/no)• Tender package(s) duly sealed (yes/no)• Financial offer in seperate envelope (yes/no)• Tender submission form included (yes/no)• Tenderer’s declaration(s) included (yes/no)• All other elements supllied (yes/no)• Overall decision (accept/reject)

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Administrative compliance – annex B8• Tenderer name• Tender submission form duly completed (yes/no)• Proof of exclusion criteria (yes/no)• Tenderer’s declaration signed (yes/no)• Language as required• O&M exists• Key experts (List+CVs+Proof docs)• Key experts present in only one tender as key experts• Key experts’ statement exclusivity and availability signed• Sub-contracting statement acceptable (yes/no/not applicable)• Nationality of sub-contractors eligible (yes/no)• Overall decision (accept/reject)

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Exercise

Tender opening session

• Summary of tenders received/administrative compliance

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Evaluating technical offers• Each (voting) member awards each offer a score out of a max. 100 points in accordance with the technical evaluation grid.• Tenders be scored for a given criterion one after another• For an expert the scores should be given in comparison to the requirements

stated in the ToR. (Only diplomas and experience with documented proofs will be taken into account)

• Each (voting) member of the Committee completes an evaluation grid (annex B12) to record his/her assessment of each technical offer in order to establish a general appreciation of strengths and weaknesses of the individual technical offers

• On completion of the technical evaluation, the points awarded by each member are compared at the Committee's session. Besides the numerical score, a member must explain the reasons for his/her choice and defend his/her scores before the Committee

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Exercise

Tender evaluation

• Evaluation of methodology

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Interviews

• Interviews should be standard practice wheneverthe expert proposed has no relevant experience on EU projects in the same language area, as evidenced by the CV.

• The preferred method of conducting the interviews shall be by telephone (or equivalent). Exceptionally and only if duly justified, as it entails considerable costs both for tenderers and the CA, the method may be an interview in person

• Tenderers must be given at least 10 days' advance notice of the date and time of the interview

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Finalising the technical evaluation

• Once the Committee has established each technical offer’s average score (the mathematical average of the final scores awarded by each voting member), any tender falling short of the 80-point threshold is automatically rejected.

• Out of the tenders reaching the 80-point threshold, the best technical offer is awarded 100 points. (The technical scores of the others = (final score of the technical offer in question/final score of the best technical offer) x 100)

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Evaluating financial offers Upon completion of the technical evaluation, the envelopes

containing the financial offers (for the tenderers scored above 80) are opened.

• Financial offers are checked for arithmetical errors.• When evaluating financial offers, the evaluation committee

compares only the fees between the different financial offers. The tender with the lowest total fees receives 100 points.

(The financial score of the others = (lowest total fees / total fees of the tender being considered) x 100)

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Recommending the award of the contract

Conclusion of the Evaluation Committee: The best value for money is established by weighing technical quality against price on a 80/20 basis. This is done by multiplying:

• The scores awarded to the technical offers by 0,80• The scores awarded to the financial offers by 0,20

The resulting, weighted technical and financial scores are then added together and the contract is awarded to the tender achieving the highest overall score

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Exercise

Tender evaluation

• Evaluation of CV and checking documentary proofs

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Notification of award – annex A8• CA notifies the successful tenderer, checks

the availability of the key experts and asks forthe evidence documents to be submitted within 15 calender days

• After checking the eligibility of proofs the CA sends the contract to the consultant for signature

• Once the contract is signed the CA informs the unsuccesful tenderers.

• Thanks them for their interest and for submitting a tender

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Contract award (2)

Parts of the contract

• Special Conditions• General Conditions (annex I)• Terms of Reference (annex II)• Organisation and Methodology (annex III)• Key Experts (annex IV)• Budget/Budget Breakdown (annex V)• Forms and other relevant documents (annex VI)• Report of factual findings and terms of reference for an

expenditure verification (annex VII)

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Manage the contract

Kick off meeting

• Introduction of the project personnel and responsibilities

• Re-introduction of the project team• Overview of project and immediate priorities• Agreement on Inception Report and allocation of the Non-

key experts• Administrative issues – office set-up, labour permit, VAT,

reporting formats, visibility, etc.

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Manage the contract (2)

Inception report

• Key document – in terms of detailing organisation and methodology

• Presents all the strategic decisions taken with consensus by all the related parties

• Details indicators updated work plan and strategy

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Manage the contract (3)

Regular project monitoring

• Monthly managers’ meetings• Delivery and assessment of outputs• Progress reports and requests for

payments• Use of incidentals

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Modifying Contracts

Why and when? if the circumstances affecting project implementation have

changed since the initial contract was signed

Distinguish between;• Acceptable changes• Forbidden changes

Contracts can only be modified within the execution period of the contract

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Modifying Contracts (2)

Changes in the contract Acceptable changes

• Additions, ommissions, substitutions• Changes in quality, quantity• Changes in specified sequence• Method of performance of services• Timing

Forbidden changes• Fundamental alteration of the ToR (change of purpose, major changes in

results) cannot be made by Addendum!• Important rule: the addendum must not alter the competition conditions

prevailing at the time when the contract was awarded

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Modifying Contracts (3)

Changes in the contract (2)

Small changes (by means of an administrative order)• amendment that does not affect the basic purpose of the contract • the financial impact is limited to a transfer within the Fees involving a

variation of less than 15% of the original amount for the relevant line in the budget breakdown

Major changes (by means of an addendum)• extension of the contract• change of ToR that requires variation in fees budget exceeding 15%• change in incidentals budget

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End of Day III

Closing

• Questions and Answers