TRAINING ON BASIC PRAG PROCEDURES FOR LINE

MINISTRIES AND AGENCIES

Roberto Carpano - Monrovia, 19 – 23/11 2018

Cassettaattrezzi2.j

Tableofcontents

A.  TheframeworkofthecourseB.  ResultstobeachievedbytheendofthetrainingC.  Participant’spresentationD.  YourpersonalexperiencesinProcurementandmanagementprocedures

E.  ProcurementwithinPCMF.  WhatisPRAG?G.  PRAGProcurementprinciplesH.  FocusonPRAGon:ProcurementforServices,SupplyandWorksI.  ThethreemanagementmodesJ.  Thetimelimeforservices K.  Thethreemanagementmodes:detailsL.  Stepsinmanagementmode

M.  AwardofthecontractsN.  ModificationofcontractsO.  ContractManagementP.  Whatdidyoulearnandwhatwillyoudotomorrowmorningoncebacktoyouroffice?Q.  Evaluation.

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A. The framework of the course: where are we and who does what? B. Results to be achieved by the end of the training: “participants will have enhanced their knowledgeand skills on EDF procurement and managementprocedures, contributing to better managementandvalueformoneyofEUfundinginLiberiainthefuture”C. ParWcipant’s presentaWon by the three areas of procurements: services, supplies and works

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D. Your personal experiences in Procurement and management procedures Procurement is the selecWon process to buy goods, services, works and grant. •  Which are the key documents, you apply for Procurement? •  At what level are you involved in Procurement? •  Which are the physical outputs produced by your work with

reference to Procurement •  How would you describe a successful procurement process ? •  Describe your procurement experiences with PRAG, the

difficulWes and how you managed it

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E. Procurement in the Project Cycle Management (PCM)

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ImmaginedelPCM

F. What is PRAG? (1)

ThispracticalguideexplainsbothprocurementandgrantawardproceduresapplyingtoEUexternalactionsfinancedfromthegeneralbudgetoftheUnionandtheEuropeanDevelopmentFund(theEDF).It is used by the Commission services responsible for themanagementofprojectsandprogrammesfinancedundertheexternalfinancinginstrumentsandtheEDFinthecontextoftheCotonouAgreement.http://ec.europa.eu/europeaid/prag/document.do?nodeNumber=1.1

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G.PRAGProcurementprinciples(see2.5.1PRAG)

Transparency.Thisobligationconsistsinensuring,forthebenefitofanypotentialtenderer,adegreeofadvertisingsufficienttoenablethemarkettobeopeneduptocompetitionandtheimpartialityofprocurementprocedurestobereviewedEqualtreatmentandnon-discrimination.Meaningthatalltenderersmustbeaffordedequalopportunitieswhenformulatingtheirtenders,whichthereforeimpliesthatthetendersofallcompetitorsmustbesubjecttothesameconditions37.Competition.The estimated value of a contractmay not be established in such away as to avoid thecompetitive tendering procedure or to circumvent the rules which apply to certain procurementproceduresoraboveacertainthreshold,normayacontractbesplitforthatpurpose(apracticeknownas'salami-slicing’)

Proportionality.Measures adopted by the European Commission do not exceed the limits of what isappropriate and necessary in order to attain the objectives pursued and that where there is a choicebetweenseveralappropriatemeasuresrecoursemustbehadtotheleastonerous41.SoundFinancialManagement.Budgetappropriationsmustbeusedinaccordancewiththeprinciplesofeconomy,efficiencyandeffectiveness.

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H.FocusonPRAGon:ProcurementforServices,SupplyandWorks(notGrant)MakeandexampleforaServices,SupplyandWorksprojects

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1.  I. The three Management Modes

2.2.1.DirectmanagementTheEuropeanCommissionisinchargeofallEUbudgetimplementationtasks,whichareperformeddirectlybyitsdepartmentseitheratheadquartersorintheEUdelegationsorthroughEUexecutiveagencies22.2.2.IndirectmanagementUnderindirectmanagementtheEuropeanCommissionentrustsbudgetimplementationto3:

-thirdcountries(ortobodiesdesignatedbythem);-internationalorganisationsandtheirspecializedagencies;-bodiessetupundertheTFEUandtheEuratomTreaty-developmentagenciesofEUMemberStates,orofthirdcountries;-publiclawbodies,includingMemberStatesorganisations.

2.2.3.SharedmanagementTheEuropeanCommissiondelegatesimplementationtaskstotheEUMemberStates9

Whereareyou?

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L.Thetimeline:frompriorinformationtocontractaward

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1. M. The three Management Modes 2.2.2.IndirectmanagementINDIRECTMANAGEMENTWITHEX-ANTECONTROLS:Beforetheprocedureislaunched,thecontractingauthoritymustsubmitthedocuments(tenderdossier,includingrelevantnotices,orcallforproposalfile)totheEuropeanCommissionforapproval.(A.1.1.e)INDIRECTMANAGEMENTWITHEX-POSTCONTROLS:Thecontractingauthoritydrawsupshortlists(restrictedprocedures)andisresponsibleforissuinginvitationstotender,receivingtenders,chairingtheevaluationcommittees,decidingontheresultsoftheproceduresandsigningthecontractswithoutthepriorauthorisationoftheEuropeanCommission.TheECendorsesthefinalaward.

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1.  N.StepsinManagementModes

Understandthesteps:1.  Priorinformationnotice2.  Contractnotice3.  Contractmodificationnotice4.  Cancellationnotice5.  Shortlistnotice6.Tenderdossier,technicalspecificationsandanyotherannexestothetenderdossier(plans,etc.)(forsuppliesandworksonlySupplies,Works7.Award

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N1.PriorInformationnoticeExampleofPriorInformationnoticealreadypublished?“LongTermTechnicalAssistancefortheimplementationoftheVoluntaryPartnershipAgreement(VPA)inLiberia”.(2)Whicharethecrucialissues?Fill three Prior information notices (contract description)relatedtoaservices,supplyandworksnoticeinyourpipelinebyusingthe(3.a5d)format,howtoidentifythe“contractvalue”

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N2.ContractnoticeExampleofContractnoticealreadypublished?“LongTermTechnicalAssistancefortheimplementationoftheVoluntaryPartnershipAgreement(VPA)inLiberia”.(4)Understandrulesrelatedto“Conditionsofparticipation”:Eligibility,Candidature,Shortlistalliance”Fillthree(services,supplyandworks)Contractnoticeslimitedto“Conditionsofparticipation”and“Selectionandawardcriteria”.

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N3.ContractmodificationnoticeN4.Cancellationnotice

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N5.Shortlistnotice(see3.4.2)

CandidatesthatpresentedtheEoIaccordingtoAnnex4.1areshortlistedbytheevaluationcommittee.Theselectionprocedureinvolves:-drawingupalonglist(seetemplateinAnnex5.B4)summarisingalltheapplicationsreceived;-  eliminatingapplicationsthatareinadmissibleduetobeingsubmittedbyineligiblecandidates(see

Section2.3)orbycandidatesfallingintooneofthesituationsdescribedinSections2.6.10.1.onthebasisoftheirdeclarationofhonour;

-  applyingtheselectioncriteriaexactlyaspublished.-  Afterexaminingtheresponsestothecontractnotice,theevaluationcommitteeshortliststhe

serviceprovidersofferingthebestguaranteeofsatisfactoryperformanceofthecontract.-  Theshortlistcomprisesbetweenfourandeightcandidates.-  Ifthenumberofeligiblecandidatesmeetingtheselectioncriteriaisgreaterthaneight,the

additionalcriteriapublishedinthecontractnoticeareappliedinordertoreducethenumbertotheeightbestcandidates.Forfurtherdetails,pleaseseeSection2.6.11(Selectioncriteria).

-  SeeexamplesofShortlistnotice(6)

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N5.Shortlistnotice(see3.4.2)OncetheContractingAuthorityreceivedtheExpressionsofInterest(EoI–Annex4.1),drawashortlistbyapplyingthe5.b4format

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N6.1DraftingandcontentoftheTenderDossier(see2.8)These documents must contain all the provisions and information that candidatesneedtosubmitatender:theprocedurestofollow,thedocumentstoprovide,casesofnon-compliance,awardcriteriaandtheirweightings,etc.Theyspecifywhatisrequiredoftheservice,supplyorworktobepurchasedandtheminimumrequirementswhosenon-complianceentailstherejectionofthetender.Preparing the tender dossier - particularly the technical specifications/terms ofreference-mayrequiretheassistanceofoneormoreexternaltechnicalspecialist(s).

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N6.2DraftingandcontentoftheTenderDossier(see2.8)

Forfee-basedservicecontracts,thesectionsinthetermsofreferenceincludetheallocatedbudgetheadings.Forglobalpriceservicecontracts,thetermsofreferenceshouldclearlyindicateoutput(s)expected.Thecontractormustprovideagivenproduct.Tenderdossieriscomposedof:A.Instructionstotenderers(8.b8b)B.Draftcontractagreementandspecialconditionswithannexes(9.b8cand10.b8d)C.ToRs(11.b8eformatand12forarealexample)(formatforexpertgrid12.b8h)D.OrganisationandMethodologyformat(12.1b8g)<TOBEFILLEDBYTHECANDIDATE.E.BudgetModel(12.2b81.2)

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N6.3DraftingandcontentoftheTenderDossier(see2.8)FollowingtheToRsformat(11.b8e),draftchapters2.1,2.2,2.3.oftheToRsfora project to be jointly identified. Detailed info will be provided on thecontents of the Logical Framework. This is an example of ToRs alreadyprepared.(12)

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N7.Evaluationgrid(see2.8)

(13.B8L)Administrativecompliancegrid(14.B8m1)Evaluationgridfees

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O.Awardofthecontracts(2.9)Tendersareopenedandevaluatedbyanevaluationcommitteeformallyandpromptly appointed by the contracting authority comprising a non-votingchairperson,anon-votingsecretaryandanoddnumberofvotingmembers(theevaluators)85.TheremustbeaminimumofthreeevaluatorsforallproceduresexceptforcallsfortendersforworksaboveEUR5000000,whichrequireaminimumoffiveofthem.AllmembersoftheevaluationcommitteeandanyobserversmustsignaDeclarationofImpartialityandConfidentiality

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P.Modificationofcontracts(2.11)Whenitisallowedtomodifythecontract

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P1.Modificationofcontracts(2.11)Principles:Nochangestothecontractmayaltertheawardconditionsprevailingatthetimethecontractwasawarded.Majorchanges,suchasafundamentalchangetothetermsofreferenceortothetechnical specifications, cannot be made by means of an addendum or anadministrativeorderAcontract,canbemodifiedbymeansofsimpleaddendum,withnoneedtoundertakeanegotiatedprocedure.

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Q.ContractManagement1.Whichareyourexperiencesincontractmanagement?2.ObligationsoftheContractor2.1ReachtheexpectedresultsasdescribedinAnnex12.2Carriedouttheactivities2.3Disbursethebudgetfollowingcontractualprocedures2.4Regularreporting.3.“Symptoms”ofun-performingprojectmanagement3.1Latereportingandlowreportingquality3.2Poorspendingcapacity:highspendingcapacityforHR,andlowspendingcapacityforprojectactivities(14)(15)3.3Relevantnumberofcontractaddendum3.4LimitedcommunicationwiththeContractingAuthority.

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R.Whatdidyoulearnandwhatwillyoudotomorrowmorningoncebacktotheoffice?S.Evaluation

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Andnow...

Thankforyourtimeandattention

Roberto.Carpano@europabook.eu27