IPA Supply Procurement

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

REPUBLIC OF TURKEYMINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY

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Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik YardımTechnical Assistance on Institutional Building for the Implementation of RCOP in Turkey


By: H. Cahit Ekiz, Senior [email protected]

Ankara, 19th October 2012

Special Module for RCOP



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ContentContent

Overview of preparation and procurement stages

Review of supply tender documents

Supply Evaluation

Relations between Procurement and Implementation Stages



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Overview of preparation and procurement stages



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Project concept

OIS Procure-ment

Implementation ClosureNeeds

MoreInformation

Needs, concept development, partner search

Screening/Prioritisation

More mature Project

Projectproposal & approval

1 2 3 4

Contract management & monitoring

5Sign. Oper. Agreement

Tender dossier preparation & procurement

6Contract signature

The project cycle



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Actors of Preperation Period

RC

P-C

IDERA /End recipient

Developers

Manufacturers

Internet

Suppliers

EU

D

Other know-how

EU

EU Management

and Audit Organisations

Works Supervision

TA

Con

sulta

nt

OIS



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Tools (Documentation)

ERA Procurement Guidelines

OIS

PRAG (Practical Guide to contract procedures on EU External Actions)

IPA Turkey - RCOP Implementation Manual



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ERA responsibilities set up from Operational Agreement

Responsibilities related to Technical Preparations of projects and procurement (tender dossiers); (Please see OA Article 5.2)

Responsibilities related to Tendering and Contracting (including attendance at tender evaluations); (Please see OA Article 5.3)

Responsibilities related to Implementation of Service, Works and Supply Contracts (see Chapters 4,5,6); (Please see OA Article 5.4)

Responsibilities related to Financial Management (Payments of contracts) and Tax Exemption Implications (see Chapter 7); (Please see OA Article 5.5 and 5.6)

Responsibilities related to Reporting (see Chapters 4,5 and 6 and 8) ; (Please see OA Article 5.7) Responsibilities related to Monitoring of the operations and Evaluation (Chapter 8), (Please see OA Article

5.8) Responsibilities related to Publicity of the operations, Controls and Auditing (Chapter 9); (Please see OA

Article 5.9 and 11)



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OIS (1)OIS (1) Title of the Operation Operating Structure Organisation Responsible for the Implementation of the Operation Compatibility and Coherence with the Operational Programme Description of the Operation Implementation Arrangements Risks and Assumptions Expected impact of the operation on the target group and multiplier/spill over effects Sustainability Equal opportunity, minorities, and vulnerable groups Links with other IPA Component Measures Requested financing from the European Commission Co-Financing Budget Breakdown Cash flow requirements by source of funding



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OIS (2)OIS (2)

Annex 1: Logical Framework Annex 2: Commitment Letters and / or Letter of Intents Annex 3: Financial Sustainability Analysis (Brief) SUPPORTING DOCUMENTS

Indicative Budget For Service Contract Indicative Budget For Supply Contract Indicative Budget For Works Contract INDICATIVE BUDGET FOR SUPERVISION COMPONENT

Documents regarding land ownership/earmarking



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Procurement Preparation Process

OIS

Works Technical documents

Supervision Technical documents

Supply Technical documents

TA Technical documents



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Supply Technical documents

Technical Supporting Documents Catalogues, brochures, web printouts, datasheets, manuals

Administrative Supporting Documents Origin

Financial Supporting Documents Proforma invoice, web printouts

Market Survey Technical Specifications



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Which is the type of project you are dealing with ?

Industrial Manufacturing ?Agricultural product / food Processing ?Accreditation Laboratory ?Tourism Investment ?Business Development Centre ?



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What is the Product / Item ?

Individual goods ?Lines ?Systems ?Establishment ?



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How to identify the Product / Item in the market?

Requirements ?

Functions ?

Capacity ?

Quality ?

OIS

Title

Budget

Rule of Origin

GLOBAL MARKET

3IDENTICA

L PRODUCT

S



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Individual goods

F?, C?, Q? F?,

C?, Q?

RAW

RAW

RAW

RAW

RAW

RAW

RAW

F?, C?, Q?

F?, C?, Q?F?,

C?, Q? F?,

C?, Q?F?,

C?, Q?

ProcessInput material Output product

Amount ?Amount ?Time ?

Throughput ?



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Lines

F?, C?, Q? F?,

C?, Q?

RAW

RAW

RAW

RAW

RAW

RAW

RAW

F?, C?, Q?

F?, C?, Q?F?,

C?, Q? F?,

C?, Q?F?,

C?, Q?



Throughput ?

Performance ?



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Systems

RAW

RAW

RAW

RAW

RAW

RAW

RAW



Throughput ?

Performance ?S1

S2

Process

Performance ?

Process

S3 Performance ?



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Establishment

RAW

RAW

RAW

RAW

RAW

RAW

RAW



Throughput ?

Performance ?S1

S2

Process

Performance ?

Process

S3 Performance ?



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What is the Type of Product / Item ?

Operational Unit ?Supporting Unit ?Infrastructure Unit ?Secondary Unit ?



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Operational Unit Samples

Process machinery and equipmentAssembly line workflow

connectors ?



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Supporting Unit Samples

Dust collection equipment ?Packaging equipmentTicketing (labelling) equipment



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Infrastructure Unit Samples

Electricty / power ?Air / pressure ?Vapour ?Water / hot water ?Air cleaner ?Refining / treatment ?



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Secondary Unit SamplesFix crane ?Scale ?Vehicles (Mobile crane, forklift, truck)Laboratory equipmentIT, electronic and office equipmentSecurity and control equipmentFurnitureDecoration ?



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What else ?

AutomationProcess control and resource planning (ERP)Administrative and financial softwareManagement and decision support



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Distribution of Products / Items ?Between components

SupplyWorksTA

Between supply lotsOperational lot(s)Supporting lot(s) Infrastructure lot(s) ?Secondary lot(s)



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Resulting supply documentsMarket Survey

3 x Brand & model 3 x Origin 3 x Price

Delivery at site Installation and start-up

Technical Specifications Requirements

Function(s) Capacity Quality



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Secondary specifications of the Products / Items

Infrastructure requirementsPhisical dimensionsWork area requirementsWeight



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Review of supply tender documents



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Procurement Notice6-Description of the contract7-Number and titles of lots8-Eligibility and rules of origin11-Tender guarantee12-Performance guarantee13-Information meeting and/or site visit14-Tender validity15-Period of implementation of tasks



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Procurement Notice

16- Selection criteria Economic and financial capacity

The average annual turnover in the last xxx financial years of the tenderer must exceed the financial proposal of the tenderer.

Professional capacity At least 1 permanent staff currently works for the tenderer in fields related to this

contract.

Technical capacity The tenderer should have completed (provisional or final acceptance must be

certified) at least xxx project relating to delivery of ................................... equipment with a minimum value of the financial proposal of the tenderer for the relevant lot, in the last three years prior to the submission deadline of this application (from xx of Month 2009 to xx of Month 2012).



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Procurement Notice

16- Selection criteria An economic operator may, where appropriate and for a particular contract, rely on the

capacities of other entities, regardless of the legal nature of the links which it has with them. Some examples of when it may not be considered appropriate by the Contracting Authority are when the tender rely in majority on the capacities of other entities or when they rely on key criteria. If the tender rely on other entities it must prove to the Contracting Authority that it will have at its disposal the resources necessary for performance of the contract, for example by producing an undertaking on the part of those entities to place those resources at its disposal. Such entities, for instance the parent company of the economic operator, must respect the same rules of eligibility and notably that of nationality, as the economic operator. Furthermore, the data for this third entity for the relevant selection criterion should be included in the tender in a separate document. Proof of the capacity will also have to be furnished when requested by the Contracting Authority.



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Instructions to Tenderers 2-Timetable 5-Type of contract 11-Content of tenders

Part 1: Technical offer a detailed description of the supplies tendered a training proposal an ancillary services proposal

Part 2: Financial offer A financial offer calculated on a basis of DDP financial proposal for training financial proposal for ancillary services

Part 3: Documentation To be supplied following templates in annex

Tender Form for a Supply Contract Financial identification form Legal entity file

To be supplied on free formats A description of the warranty conditions A description of the organisation of the commercial warranty tendered A statement by the tenderer attesting the origin of the supplies tendered Duly authorised signature



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Instructions to Tenderers 12-Taxes and other charges 20- Evaluation of tenders

Administrative Technical

PN Selection Criteria Technical Proposal

Financial Variant solutions Award criteria

The sole award criterion will be the price 21- Signature of the contract and performance guarantee

documentary proof Performance guarantee modifications



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Modifications

Before the contract signature- Tender Dossier (Instructions to Tenderers)

Article 21_Signature of the contract and performance guarantee (Sub Article 21.4)- Contract (Special Conditions)

- Article 22_VariationsThe Contracting Authority reserves the right to vary the quantities specified for the following items at the time of contracting and during the validity of the contract within a range given in below table;

The total value of the supplies may not rise or fall as a result of the variation in the quantities by more than 25% of the tender price. The unit prices used in the tender shall be applicable to the quantities procured under the variation.

Lot/ Item No

Description Original Quantity

Maximum Increase

Maximum Decrease



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Supply Evaluation



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Evaluation Committee

ChairmanSecretaryEvaluatorsObservers ?



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Opening

PublicReceive date & timeTenderer’s structurePrice & discountTender Guarantee



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PN Selection Criteria

Evaluation Committee all togetherTender Submission Form sectionsClarifications



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Administrative Compliance

Evaluation Committee all togetherPart 3: DocumentationClarifications In practice informal responsibility of Chairman

and Secretary



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Technical Evaluation

Evaluators (& observers)Part 1: Technical ProposalYes / no basesClarificationsFinalisation by a wrap-up session



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Financial Check

Evaluation Committee all togetherPart 2: Financial OfferCross check of financial figuresClarifications (may or may not)



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Relations between Procurement and Implementation Stages



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Basic Stages of a Supply Contract

CommencementDeliveryInstallationPut into OperationTrainingInspection and TestingWarranty



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Special Stages for a Supply Contract

Ancillary servicesSpecial design and productionDevelopmentCustomizationAssembly at the site



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Financial Milestones for a Supply Contract

Pre-financing (60%)Provisional Acceptance (40%)Final Acceptance (Releasing Performance

Guarantee)



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Commencement

Special conditions Article 18, gives the commencement date, the starting date of implementation of a supply contract

- When the contract is signed

- On a definite and indicated further date

- Depending to an other event or condition

- Due to an administrative order issued by the OS/CA in a declared period



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Commencement

Kick-off meeting (optional)- introduction of the contracting parties and their personnel who will be

involved in the contract- reviewing the scope of contract- contract schedule and milestones- any changes of the delivery address(es)- any issues relating to proposed products’ availability by the Contractor- any issues relating to restrictions and special permissions regarding the

products- any information or other assistance to be provided by the CA or ERA/End

recipient to the Contractor, in accordance with the TS, field/place, current conditions and the time

- other issues related with the specifics of the contract



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Commencement

Site visit

- Phisical conditions- Meteorological and geological conditions- Additional structural and infrastructural works

- Transport, unloading and storage conditions- Reviewing the layout plan



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Implementation Programme

Special Conditions_Article 13 Programme of implementation of the tasks (timetable)

- Supply, delivery, unloading, installation, commissioning inspection and testing, and training must be completed within xx calendar days from the commencement date.

- The Contractor shall be responsible for unpacking of the goods at Delivery Address and shall be ready for inspection and testing after completion of the delivery of supplies.

- Inspection and testing shall be completed within xx calendar days after the tendered supplies have been physically delivered, installed and put into operation.

- Provisional acceptance shall take place within xx calendar days after the request of Contractor following completion of delivery, installation, putting into operation, training, inspection and testing.

- Final acceptance shall take place after formal request of Contractor following expiration of 12 months warranty period. After this Contractor’s warranty expires, the Contractor shall provide one year commercial warranty service as well.



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Modifications

Within implementation period (Before & after commencement)- Administrative and financial issues- Technical issues

- Product end of life- Proof and documentary evidence- Has same or advantageous rule of origin conditions- Has same price of the replaced item and under the condition given

in the contract- Same technical specifications and quality or better- Compatible with the overall system



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Delivery, Installation & Start-up

Site availabilityInfrastructure conditionsSecurityRespondent



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Training

User / operator training

Technician training



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Inspection and Testing

Who does? Inspection and testing team(s) Provisional Acceptance Committee

What is to be checked?- Item exist, not damaged and operational, unused- Has same brand and model with the Contract by also considering any approved modifications- Has same or better technical specifications with the Contract by also considering any approved

modifications- Has same or better performance with the Contract by also considering any approved modifications- Includes all the accessories and documents indicated in the Contract



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Provisional Acceptance

The Provisional Acceptance Committee Established by ERA according to internal procedure There is no restriction in number At least three people are preferable and for complex supplies it may be increased to

fiveTools for the Provisional Acceptance Committee

Inspection and test reports Any approved modifications Contract



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What is to be checked by the Provisional Acceptance Committee Inspection and testing results Validity and verification of supplies in quantities Availability of the supplies in the delivery address Rule of origin of the supplies Visibility rules Over all functioning of the systems (whole system)

- Different test scenarios (performance, stress, recovery, reliability, etc.)



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Partial acceptance (General Conditions Article 31.5)

Conditional acceptance



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What is the importance of Provisional Acceptance ?

When the Provisional Acceptance become issued ?



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Warranty

During Provisional Acceptance The Contractor shall warrant that the supplies are new, unused, of the most recent models and

incorporate all recent improvements in design and materials. After Provisional Acceptance up to Final Acceptance

The Contractor shall further warrant that none of the supplies have any defect arising from design, materials or workmanship. This warranty shall remain valid for one year after after provisional acceptance.

After Final Acceptance In addition there will be commercial warranty after this Contractor’s warranty expires. The one

(1) year commercial warranty documents should be accompanied with the documents for provisional acceptance.



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Warranty

Article 32 (Special Conditions & General Conditions) The Contractor shall at his own cost replace defective or damaged equipment/parts during the

warranty period. The Contractor has to troubleshoot the problem within xx working days of the request, overcome the problem and re-integrate to the system within maximum xx working days from the call of service. If the reparation of broken equipment/part is not possible, Contractor shall replace that equipment/part with another equipment/part. No additional cost will be borne by the Contracting Authority or the Beneficiary.

The Contractor shall response at site within xx days during warranty period. The Contractor shall remain fully responsible for all warranty obligations even when some of

the equipment is obtained from a third party. In case a preventive maintenance session has to be executed then the Contractor shall inform

the Beneficiary at least xx hours in advance of his intervention.



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Final Acceptance

The Final Acceptance Committee Established by ERA according to internal procedure similar with the Provisional Acceptance Committee

Tools for the Final Acceptance Committee Deficiency list detected during warranty Warranty conditions of the Contract



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Final Acceptance

What is to be checked by the Final Acceptance Committee Deficiencies detected and actions taken by the Contractor during

warranty period Satisfaction of warranty conditions of the Contract Availability of all the supplies in the installation address Functioning of all the supplies Over all functioning of the systems Any conditions set by the Provisional Acceptance Committee



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Synchronization

Projects Prerequisite or parallel actions to be taken by other EU or differently financed

projects; or by third party actorsComponents

Output(s) of one Contract may be required as input(s) by other ContractLots

Dependencies



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Synchronization

Always keep in mind Each Contract is a seperate document Each Contractor is responsible for his Contract Success of the Project is only possible with successful completion of all

Contracts This is only possible with careful management and coordination of the Contracts



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Closing

Questions & Answers ?

IPA Supply Procurement

Documents

Transcript of IPA Supply Procurement