PUBLIC PROCUREMENT ACT (ZJN-1) · PDF fileNATIONAL ASSEMBLY 1893. Public Procurement Act...

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NATIONAL ASSEMBLY 1893. Public Procurement Act (ZJN-1) Pursuant to Article 107 (1), second indent, and Article 91(1) of the Constitution of the Republic of Slovenia I hereby issue THE ORDER to declare the Public Procurement Act (ZJN-1) which was adopted by the National Assembly of the Republic of Slovenia at its session of 25 April 2000. No. 001-22-71/00 Ljubljana, 5 May 2000. President of the Republic of Slovenia Milan Kuèan, s. DRAFT VERSION ! PUBLIC PROCUREMENT ACT (ZJN-1) 1. GENERAL PROVISIONS 1.1. Subject of Act Article 1 (Subject of Act) (1) This Act lays down the compulsory activities of the contracting entities and tenderers in the award of public supply, works and service contracts. (2) This Act also lays down the compulsory activities of contracting entities and tenderers in The official language of the documents translated herein is Slovene. In case of any doubt or misunderstanding, the Slovene version should therefore be considered final. Page 1 of 71 Law on Public Procurements 9/24/04 http://www.sigov.si/mf/angl/zakon/azjn-1.htm

Transcript of PUBLIC PROCUREMENT ACT (ZJN-1) · PDF fileNATIONAL ASSEMBLY 1893. Public Procurement Act...

NATIONAL ASSEMBLY 1893. Public Procurement Act (ZJN-1)

Pursuant to Article 107 (1), second indent, and Article 91(1) of the Constitution of the Republic of Slovenia I hereby issue

THE ORDER to declare the Public Procurement Act (ZJN-1) which was adopted by the National Assembly of the Republic of Slovenia at its session of 25 April 2000.

No. 001-22-71/00 Ljubljana, 5 May 2000.

President of the Republic of Slovenia

Milan Kuèan, s.

DRAFT VERSION !

PUBLIC PROCUREMENT ACT (ZJN-1)

1. GENERAL PROVISIONS

1.1. Subject of Act

Article 1

(Subject of Act)

(1) This Act lays down the compulsory activities of the contracting entities and tenderers in the award of public supply, works and service contracts.

(2) This Act also lays down the compulsory activities of contracting entities and tenderers in

The official language of the documents translated herein is Slovene. In case of any doubt or misunderstanding, the Slovene version should therefore be

considered final.

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the award of public supply, works and service contracts in water, energy, transport and telecommunications sectors.

(3) This Act regulates the manner of recording statistical data concerning the award of public contracts.

(4) This Act regulates the establishment and competence of the Public Procurement Office.

1.2. Exceptions in awarding contracts

which are not subject to this Act

Article 2

(Exceptions which are not the subject of public contracts)

This Act does not apply to the following contracts:

1. those awarded to an organisation which pursuant to this Act is a contracting entity itself and is founded by a special regulation concerning the provision of services which are the subject of public procurement with an exclusive right to provide such services,

2. those to which other rules on procurement apply and which are awarded:

a) under international agreement covering supplies, works or services or public design contests which are intended for joint implementation or exploitation of a project by the countries or organisations which concluded such agreement; the European Commission shall be notified of the conclusion of such agreement,

b) to undertakings in Slovenia or in third countries in accordance with an agreement on the stationing of troops,

c) pursuant to a special procedure of an international organisation,

3. for ensuring fundamental conditions for life at natural or other disasters in accordance with the regulations on the protection against natural or other disasters,

4. for the purchase of armament, military equipment and special operational technique, or other procurement of confidential nature as prescribed by governmental rules. Contracting entity who performs such procurement shall report to the government concerning these supplies at least once in a year.

1.3. Definition of terms

Article 3

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(Terms Used in this Act)

(1) For the purposes of this Act, the terms shall have the following meaning:

1. A ‘contracting entity’ shall mean:

a) a direct budget user,

b) an indirect budget user,

c) other legal entities founded by a direct or indirect budget user with a specific purpose of meeting needs in the general interest; at least half of their management or supervisory board members are appointed by a direct or indirect budget user,

è) a public undertaking and its affiliated companies in which a direct or indirect budget user or another contracting entity under this Act holds a majority share of the subscribed capital or controls the majority of the votes attached to shares issued by the undertaking, or can appoint more than half of the members of the company’s management or its supervisory board,

d) an affiliated undertaking which is an independent legal entity and is either by virtue of management or in some other way associated with the contracting entities listed under subitems a), b) , c) and è) so that due to the stated links they jointly shape the business policy and act harmoniously with the purpose of achieving common business goals or so that one person has a possibility to direct the other or to exercise substantial influence on the other in decision-making, financing and doing business, or so that the operation of one entity or its business results may substantially influence the operation or business results of the other contracting entity;

2. “public procurement” shall mean the set of acts performed by the contracting entity aimed at the procurement of goods, services or works under this Act;

3. ‘a supply, service or works contract‘ shall mean a pecuniary contract concluded in accordance with the procedure performed under this Act in writing between a contracting entity and a supplier, provider or contractor, having as its subject the procurement of goods, services or works;

4. ‘a tenderer’ shall mean a supplier, provider or contractor who submits a tender and may be a legal or a natural person;

5. ‘a candidate’ shall mean a person who is invited by the contracting entity to submit a tender after his/her qualification has been established;

6. ‘an open procedures’ shall mean the procedures in which all those interested may submit tenders;

7. ‘a restricted procedure’ shall mean a procedure in which only those invited by the contracting entity may submit tenders after their qualification has been established (the candidates);

8. ‘a negotiated procedure’ shall mean a procedure in which contracting entity negotiates with

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suppliers, providers or contractors its choice and terms of the contract;

9. ‘a design contest’ shall mean a procedure used in the award of service contract for physical or urban planning design, or designs in the fields of architecture, engineering or data processing where the design is selected by a previously appointed jury regardless of any award of prize for the selected design;

10. ‘an abnormally low price’ - a price from the tender which is so low that it awakes doubt in contracting entity as to the possibility to perform the contract;

11. ‘an award criterion’ - element used to evaluate, compare or assess tenders;

12. ‘a participation condition’ is an element which shall be entirely fulfilled in the tender in a way as defined in the contract notice and documents and has exclusive nature;

13. ‘qualification requirement’ is a requirement from the contract notice and documents which is important for the performance of contract and shall be entirely fulfilled in the tender; it is a prerequisite for the recognition of tenderer’s capability;

14. ‘qualification procedure’ is the method of performing the first phase of restricted procedure in the award of public contracts in water, energy, telecommunication and transport fields;

15. ‘application to participate’ shall be an application that may be addressed to the contracting entity by any interested person under a qualification procedure;

16. ‘updating award criteria and participation conditions’ - adjustment of award criteria and participation conditions occasionally done by the contracting entity considering the market conditions, development and other circumstances. Contracting entity may update the award criteria and participation conditions only in a qualification procedure;

17. A ‘regular tender’ shall be a tender which is submitted to the contracting entity until the expiration of the deadline as defined in the contract notice and documents;

18. An ‘adequate tender’ shall be a tender which is submitted on time and which is found, after the opening of tenders and based on the review and evaluation, to entirely fulfil all requirements from the contract documents;

19. An ‘appropriate tender’ is a tender which is submitted on time and which is found, after the opening of tenders and based on the review and evaluation, to entirely correspond to all criteria, conditions and technical specifications;

20. An ‘eligible’ tender is a tender which is submitted on time and which is found, after the opening of tenders and based on the review and evaluation, to entirely correspond with the award criteria, participation conditions and the eventual qualification requirements;

21. A ‘discount on the tender price’ shall be the method of determining the tender price which can be offered by the tenderer only when the contract is awarded by lots, and shall not be treated by the contracting entity as an element of additional privilege;

22. A ‘special drawing right’ - calculation unit at the International Monetary Fund. It is applied in

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financial transactions of the International Monetary Fund and as a measure of value. It is composed of a basket of currencies based on the movement of exchange rates (EUR, JPY, GBP, USD), The SDR value shall be calculated on a monthly basis.

(2) On the proposal of the minister of finance, the government determines a list of contracting entities bound to award public contracts under this Act. This list shall be reviewed at least once every year. In the case of ambiguity, the government decides which are the entities this Act applies to.

1.4. Basic principles of public procurement

Article 4

(The principles of cost-effectiveness and efficiency in the use of public funds)

By the execution of the public contract award procedure and by the selection of tender, contracting entity shall ensure that public funds are used in the most cost-effective manner with respect to the purpose and subject of the public procurement.

Article 5

(The principle of ensuring fair competition among tenderers)

(1) Contracting entity may not restrict fair competition among tenderers, and in particular not any likely tenderers by unreasoned use of restricted procedure or with the use of discriminatory award criteria and shall act in accordance with the competition rules.

(2) The contracting entity that prepared the contract documents or its parts shall not participate as tenderer or sub-contractor and shall not co-operate with tenderer in preparing a tender.

(3) Contracting entity shall not ask the tenderer to employ any specific sub-contractors or to perform any other business, for example export of specific goods or services, unless otherwise stipulated by special law or international agreement. In such case, contracting entity shall specify in the contract documents that the contracting entity will have to employ a certain number of domestic sub-contractors, or to include a certain value or quantity of goods and services of the Slovenian origin.

Article 6

(The principle of transparency in the use of public funds)

(1) Funds may only be used within the scope of the contract and the subject of the contract concluded pursuant to the accomplished contract award procedure.

(2) Contract award procedures under this Act shall be public, which shall be ensured through the publication of contract notices in official journals. Any person who has or had expressed interest in the award of contract, shall be entitled to learn details on the contract award procedure in accordance with this Act.

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Article 7

(The principle of equality of tenderers)

(1) Contracting entity shall ensure that there is no discrimination among tenderers in any of elements and phases of contract award.

(2) Contracting entity shall ensure that they do not create circumstances which would mean territorial, material or personal discrimination among tenderers, or discrimination arising from the classification of the business performed by the tenderers.

(3) Determination of the origin of goods or services shall be tolerable in the cases and for the purposes stipulated by a special regulation.

(4) Contracting entity shall not eliminate a tender exclusively because it is based in a country which does not have an agreement on equal treatment of domestic and foreign tenderers.

(5) Where the Republic of Slovenia does not have an agreement stated in the previous paragraph, the contracting entity may award contracts in water, energy, telecommunication and energy sectors to domestic tenderers in accordance with the provisions of this Act.

1.5. Data protection, documenting and recording of the procedure

Article 8

(Confidentiality of data)

(1) Contracting entity shall safeguard as confidential all data on tenderers contained in tenders, which are defined as confidential by the regulation on commercial companies or any other regulation.

(2) The contracting entity may refuse to deliver such information that would mean infringement of the confidentiality of data received in tenders.

(3) Contracting entity shall withhold as a trade secret the names of tenderers and the submitted tenders until the date fixed for the opening of tenders.

Article 9

(Determination of confidentiality)

(1) In the dissemination of technical specifications to tenderers and candidates and the selection of suppliers, providers and contractors in connection with the award of contracts the contracting entity may require the protection of confidential information which it makes available to them.

(2) Anyone who has received information defined as confidential in a specific regulation,

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irrespective of the level of confidentiality, shall respect the confidential nature of such information.

Article 10

(Documentation and the keeping of records)

(1) Contracting entity shall keep records of all phases of the contract award, the conclusion of the contract, the execution of the contract, the manner in which additional works are awarded, the take-over of supplies, works or services, the execution of the obligations of supplier, provider or contractor within the guarantee period, post-guarantee maintenance, and so on.

(2) Contracting entity shall keep documentation on the contract award procedure.

(3) Contracting entity shall keep records on negotiation in the procedures where a contract was awarded through a negotiated procedure.

Article 11

(Storing of the documentation)

Contracting entity shall store documentation in accordance with the regulations governing office operations and with other regulations setting out the storage of specific documents. Contracting entity shall store documents for at least as long as the contractual deadlines for the execution of an individual contract.

1.6. Language

Article 12

(Language used in contract award procedure)

(1) Contracting entity shall draw up the contract and supporting documents and conduct the procedure in the Slovenian language. Tenderers shall submit tenders in the Slovenian language.

(2) Contracting entity may in contract documents allow the use of a foreign language in addition to Slovenian. In such case, a part or the whole contract documents shall be prepared in that foreign language, as well. Contracting entity may allow in their contract documents that tenderers may submit their tenders, in part or in full, also in another language, especially in the part related to technical characteristics, quality and technical documentation. If contracting entity allows tenderers to submit part of tender in a foreign language, it shall specify which part of the tender may be in that foreign language.

(3) If during revision and evaluation of tenders, contracting entity find out that the part of tender which is not submitted in the Slovenian language shall be translated into Slovenian, it may ask the tenderers to do that within a specified time limit.

(4) Contracting entity shall state in which foreign language a tenderer may submit a tender.

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(5) In case of dispute, the contract documents in the Slovenian language, or the tender in the Slovenian language shall be used as reference.

1.7. Currency

Article 13

(Selection of currency)

(1) Values in the contract and supporting documents and the tender shall be stated in Slovenian tolars.

(2) Contracting entity may ask that tenderers state values also in other currencies. In this case, contracting entity shall state that the relevant medium exchange rate of the Bank of Slovenia, applicable on the day of the opening of tenders, is used for conversion into Slovenian tolars.

(3) In the case where tenderers are permitted to submit tenders in another currency beside the Slovenian tolar, contracting entity shall state in the contract documents the currencies in which tenders may be submitted.

1.8. Anti-corruption provisions

Article 14

(Prohibition to offer bribes)

(1) Contracting entity shall reject a tender if the tenderer who submitted it gives or is prepared to give to a current or former employee of the contracting entity a gift in the form of cash or in any non-cash form whatsoever, offer employment or any other thing or favour the value of which could be expressed in money, as an attempt to influence an action or a decision or the course of the contract award procedure.

(2) Contracting entity shall inform the tenderer and the Public Procurement Office of the rejection of the tender and the reasons for it in writing, and shall record it in the documentation related to the contract.

1.9. Conditions to institute a procedure

Article 15

(Fulfilment of conditions to institute a procedure)

(1) Contracting entity may institute a contract award procedure provided it had been planned in

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the procurement plan included in the budget of the Republic of Slovenia, the budget of a local community or in a financial plan. The funds for a particular contract may not exceed the amount set out in the regulation governing the implementation of the budget and public financing. If the duration of contract is for several years, the liabilities which will fall due in the following years shall be agreed in the amounts determined by the regulation on budget execution for each particular year.

2) If contract is of investment type, contracting entity shall prepare an investment programme according to uniformed methodology for the elaboration of investment type programmes and in line with the development programme plan. The programme shall be approved by contracting entity’s superior with a decision in writing.

Article 16

(Provision of funds during temporary financing)

If the budget of the Republic of Slovenia, the budget of the local community or the financial plan of another contracting entity bound by this Act has not yet been approved, contracting entity may institute the procedure but only up to the amount of funds planned in compliance with the rule on temporary financing.

1.10. Procurement procedures

Article 17

(Types of procedure)

(1) Types of procedures for the award of contracts shall include:

1. open procedures,

2. restricted procedures,

3. negotiated procedures.

(2) As a rule, the contracting entity shall select an open procedure.

Article 18

(Award of contracts by open procedure)

An open procedure is a procedure in which all interested may submit tenders prepared in accordance with previously defined requirements of the contracting entity as prescribed in the contract documents.

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Article 19

(Award of contracts by restricted procedure)

(1) A restricted procedure is a procedure in which those candidates invited by the contracting entity to take part on the basis of their previously established qualification may only submit tenders.

(2) Contracting entity may apply a restricted procedure only where the subject of contract are such supplies, services or works which can be performed only by a small number of tenderers with adequate technical, human and financial capacity. Before the publication of contract notice with respect to the first phase of the restricted procedure, contracting entities may request a prior opinion of the Public Procurement Office. The latter shall issue its opinion within seven days after the receipt of the request. Where the Office fails to issue the opinion within seven days, contracting entity may continue the award procedure.

(3) The first phase of the restricted procedure may be applied also in cases where the subject of contract is a permanent procurement of goods, services or works that cannot be planned in advance in terms of quantities and time, and may immediately be purchased or delivered, and are not produced following contracting entity’ specific requests but are subject to market conditions. In the first phase, the contracting entity shall set the contract documents in such a way that the lowest price is the sole criterion in the second phase.

Article 20

(Negotiated Procedure Without Prior Publication, and With Prior Publication)

(1) Contracting entity may award the contract by a negotiated procedure without prior publication, if:

1. contracting entity does not receive any tender in the open or restricted procedure, or all received tenders are inappropriate and under the condition that the initially defined elements of contract documents are not basically changed,

2. for objective reasons or for reasons related with the protection of exclusive rights, the contracts can be performed only by specific suppliers, providers or contractors,

3. emergency occurs, or in the case of unpredictable events that contracting entity was unable to consider and the deadlines prescribed for open and restricted procedures cannot be respected.

In cases under items 2. and 3, contracting entity shall obtain a prior opinion of the Public Procurement Office. The latter shall issue its opinion within seven days after the receipt of the request. Where the Office fails to issue the opinion within seven days, contracting entity may continue the award procedure.

(2) Contracting entity may award the contract by a negotiated procedure with prior publication of contract notice for the open or restricted procedure:

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1. if it receives, in an open or restricted procedure, inadequate or inappropriate tenders, while the contents of the contract documents is not basically modified. Contracting entity shall publish a notice stating that a contract shall be awarded by negotiation save when the negotiations involve all tenderers whose tenders were submitted during the previous open or restricted procedure and complied with the request for recognition of qualification.

2. if in exceptional cases where the nature of contract or contract related risk does not allow contracting entity to previously fix the total price.

(3) During negotiations, contracting entity shall ensure that the contracted price is not higher than the comparable market price and carefully examine the quality of the article which is the subject of contract.

2. COMMON PROVISIONS

2.1. Institution of a Procedure

Article 21

(Decision to Institute a Procedure)

(1) Contracting entity shall institute the contract award procedure by means of a written resolution containing at least the following details:

1. the serial number of the contract for the current year,

2. the subject of the contract ,

3. the value of contract as contracting entity estimate and expects in tenders,

4. the reference to the decision on approving the investment plan in line with uniform methodology, if necessary

5. the approximate dates by which individual phases of contract award procedure must be carried out,

6. a definition of the items for payment in the national budget, the local budget or the financial plan.

(2) The decision may contain other elements as well, if contracting entity estimate that they are required.

(3) Contracting entity shall ensure an expert evaluation of tenders. Upon making a decision to initiate a procedure, contracting entity may appoint an expert commission to evaluate tenders. The number and the composition of this commission shall be determined according to the contract subject and the type of the procedure to award contract .

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Article 22

(Authorising Another Person to Carry out the Procedure)

(1) A contracting entity may authorise another legal or natural person in writing to carry out the contract award procedure; such person shall carry out the procedure on behalf and on the account of the contracting entity.

(2) In awarding a public contract in the water, energy, telecommunication or transport fields, contracting entity may use the list of qualified tenderers of another contracting entity. Such decision shall be grounded in writing.

2.2. Contents of contract documents

Article 23

(Preparation of Contract Documents)

(1) Contracting entity shall draw up contract documents on the basis of which tenderers can prepare high-quality tenders.

(2) The content of contract documents shall be identical to details published in the contract notice.

(3) The compulsory content of the contract documents under open procedure in the second phase of the restricted procedure shall include in particular:

1. an invitation to submit a tender,

2. instructions to tenderers on the elaboration of a tender,

3. a form of tender,

4. a form of establishing qualification, and instructions on the manner of demonstrating the qualification of the tenderers (only in the case of open procedure),

5. forms for a statement of tenderers accepting the terms of the tender,

6. a model contract,

7. the type, technical specifications, quality, quantity and description of the supplies, works and services, the time and the location of delivery of supplies, eventual additional services and the like,

8. technical documents and plans,

9. a pro-forma invoice with instructions how to complete it,

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10. statement of the type of financial guarantee by which tenderers insure the fulfilment of their liability in the contract award procedure, like various forms of pledge of securities and other objects, mortgage, bills, guarantees by private companies or other legal entities with an appropriate standing, bank guarantees, insurance policies and other types of guarantee.

The contract documents shall also include other documents which, in view of the object of the contract, are necessary for the elaboration of a tender.

(4) The contract documents shall, in the first phase of restricted procedure, contain in particular:

1. invitation to tender,

2. instruction to tenderers on the elaboration of tenders,

3. form of tender,

4. form for establishing qualifications and instructions on the way of evidencing them by candidates.

5) Minister of finance lays down in detail the compulsory elements of the contract documents. The act which regulates the execution of budget of the Republic of Slovenia for a particular year, determines the thresholds at which the contracting entity shall request bank guarantees.

2.3. Access to contract documents

Article 24

(Time Limits for Requesting Contracts Documents)

(1) On the day when the contract notice is published, contracting entity shall allow all interested tenderers an insight into contract documents and deliver it on request. Contracting entity may charge only the costs of copying and delivery of contract documents. The latter shall be delivered on requests in person, by post, telefax or electronic mail, if such delivery method is possible. In an open procedure, contracting entity may not restrict the time limit by which tenderers may request the contract documents.

(2) Tenderers shall request the contract documents from the contracting entity as soon as possible after the publication of contract notice. Contracting entity shall send the contract documents within two days following the date on which they are requested by a tenderer.

(3) Tenderers may not assert subsequent increase in price for reasons of incomplete or inadequate contract documents with respect to those parts of contract award which were insufficiently defined in the contract documents but could have been foreseen considering the subject of contract and total contract documentation.

Article 25

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(Amendments to the contract documents)

(1) If, within the time limit fixed for the receipt of tenders, contracting entity amends or supplements the contract documents, it shall immediately send them free of charge to those tenderers which have already purchased them.

(2) After the time limit for receipt of tenders has expired, contracting entity may not amend the contract documents. If contracting entity establish that on the basis of the existing contract documents they can not or will not be able to evaluate the submitted tenders, it shall repeat the publication of contract notice and shall cover the costs incurred by tenderers on request.

(3) If tenderers request any additional information connected with the drawing up of tenders, they shall do so in writing not later than five days before the expiration of the time limit for submission of tenders. Contracting entity shall, in the shortest possible time, send a written reply, and shall simultaneously send the same information to all other tenderers who received the contract documents.

(4) If tender documents or supplementary documents are too extensive, or if a tender can be prepared only after on-site examination of the place where public procurement will be performed, or if contracting entity amends contract documents six days or less before the time limit for submission of tenders, it shall correspondingly postpone the time time limit for submission of tenders.

(5) Contracting entity shall inform in writing all tenderers who received the contract documents on the prolongation of the time limit, and publish notice on the prolonged time limit in the same way as the contract notice was originally published.

2.4. Determining the Contract Value

Article 26

(Determining the Basis)

(1) Respecting the principle of economy, contracting entity shall form the subject of contract into logical units (hereinafter: lots) so that separate contracts can be awarded. Contracting entity may not select a method to determine the contract value so as to avoid the public tender for reasons of lower price.

(2) The contract value shall be determined without the value added tax.

(3) The Government determines the tolar equivalent of amounts in euros as set out in this Act on 31 August every other year by a special act issued on the basis of this law. The calculation of these values shall be based on the average daily values in euros and euros expressed in special drawing rights.

Article 27

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(Determining the contract value)

(1) The basis for calculating the estimated value of the contract shall be:

1. in the case of a sale, rental or lease contracts, where the term is fixed to 12 months or less, the total contract value for the whole duration of contract, or, where the term exceeds 12 months, the total value of contract including the estimated residual value,

2. in the case of the above stated contracts concluded for an indefinite period, or if there is doubt as to the duration of the contract, the monthly value multiplied by 48.

(2) Where a contract is concluded for an indefinite period or where it is necessary to renew the contract after a certain period, the estimated contract value shall be established on the basis of:

1. the actual aggregate value of similar contracts concluded over the previous fiscal year or 12 months, adjusted where possible for anticipated changes in quantity or value over the 12 months following the initial contract,

2. the estimated aggregate value during the 12 months following the first delivery or during the term of the contract, where this is longer than 12 months.

(3) If a proposed quantity of supplies of the same type may lead to contracts being separately awarded at the same time, the estimated value of the total sum of these separate contracts shall be taken as the basis.

Article 28

(Determining the value of service contracts)

(1) In calculating the estimated value of service contracts, contracting entity shall take into account the value of the service and all costs of the service incurred by the tenderer.

(2) Regardless of the previous paragraph, contracting entity shall take into account the following amounts:

1. as regards insurance services: the premium payable,

2. as regards banking and other financial services: the fees, commissions and interest as well as other charges on the service,

3. as regards contracts which involve architectural or industrial design, physical planning and similar: a fee or a commission payable.

(3) Where contracting entity can not establish the estimated value due to a longer duration of contract, contracting entity shall determine the contract value in line with paragraph one of the previous article of this Act.

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Article 29

(Determining the value of works contracts)

(1) Apart from applying provisions of Article 27 above to establish the contract value, the total value of construction shall serve as a basis to calculate the value of works contracts.

(2) The basis for the calculation of the value of works contracts shall include the value of all supplies and services that are necessary to perform the contract.

(3) Contracting entity shall not add to the value of works contract the value of goods and services that are not necessary to perform the contract just in order to avoid the application of the law in question.

Article 30

(Determining the value for lots)

(1) Where a supply, service or works contract is the subject of several lots, and the value of each is the subject of a special contract, the value of all lots shall be taken into account when estimating the contract value.

(2) This Act shall apply also to individual lots the total value of which is greater than the value laid down in Articles 83, 89, 101, 113, and 116 of this Act.

(3) Publication in the Official Journal of the European Communities shall not be obligatory with respect to lots with a total estimated value less than EURO 1,000,000 for works contracts and EURO 80,000 for service contracts provided that the aggregate value of so excluded lots does not exceed 20% of the overall value of all lots.

2.5. General rules concerning the definition

of technical elements in public procurement

Article 31

(Technical specifications)

(1) Technical specifications are an obligatory part of contract documents. Contracting entity shall refer to them in contract documents relating to each individual contract.

(2) Contracting entity shall define technical specifications by referring to laws, technical regulations and standards in force in the Republic of Slovenia or - in the absence of Slovenian technical regulations and standards in the Republic of Slovenia - by referring to European standards or European technical licenses or common technical specifications.

(3) The competent ministry shall establish the existence of technical regulations stated in the

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previous paragraph.

Article 32

(Application of technical specifications)

(1) Contracting entity may not apply or refer to technical specifications stating the supplies, services or works of a specific make, source or manufacture procedure if such statement might favour certain tenderers, or unjustifiably eliminate others.

(2) Contracting entity may not include in the contract documents any provisions, which could have the effect of favouring or eliminating certain tenderers as, stated in the above paragraph unless the subject of the contract justifies such specifications. Contracting entity shall not indicate specific trademarks, patents, types or a specific origin or manufacture.

(3) Where the contracting entity is unable to describe the subject of the contract in the contract documents so as to make the specifications sufficiently intelligible to tenderers, the indication of elements such as trademarks, patents, types or manufacturers must be accompanied by the words “or equivalent”.

Article 33

(Issuing of attestations)

When contracting entity awarding service contracts, demand attestations to verify conformity with the requirements of quality management and quality assurance issued by independent bodies to confirm that these services comply with specific standards, they shall make reference to a quality assurance system under the Slovenian standards series SIST EN ISO 9000, which fulfil the requirements from the Slovenian standards series SIST EN 45000.

Article 34

(The contents of technical specifications or project documentation)

(1) Technical specifications and project documentation as defined in this Act shall mean the technical requirements which are an obligatory part of the contract and supporting documents in which the characteristics of lots of works, material, product, supply or service are laid down. They shall make it possible that works, materials, products, goods or services are described in a way, which is objective and suitable for contracting entity’s purposes.

(2) Technical specifications may include requirements of quality, performance, safety or dimensions, applicable to the material, product, supply or service with respect to quality assurance, terminology, symbols, testing and test methods, packaging, marking and labelling.

(3) In the case of works contracts, technical specifications may also include regulations for the design and costing, test, inspection and acceptance conditions as well as techniques or methods of construction.

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Article 35

(Permission to derogate)

(1) Contracting entity may derogate from the provisions laid down in Article 31 in the following cases:

1. if standards, technical approvals or general technical specifications or project documents do not include any provisions for establishing conformity, or, if there are no technical means to satisfactorily establish the conformity of a good or service with these standards, technical approvals or general technical specifications or project documents,

2. if such use would prejudice the application of mutual recognition type of approval for telecommunications and terminal equipment or as regards standardisation in the field of information technology and telecommunication or other Community instruments in specific areas of goods or services,

3. if the use of standards, technical approvals or general technical specifications would oblige the contracting entity to supplies incompatible with the equipment already in use or would entail disproportionate cost or disproportionate technical difficulty,

4. if the contract concerned is of a genuinely innovative nature for which the use of the existing standards, technical approvals or general technical specifications would not be appropriate.

(2) Contracting entity referring to the previous paragraph shall publish its reasons also in the public tender and in the contract documents.

(3) Contracting entity shall explain its reasons referred to in the previous paragraph at the request of a competent national body, the European Commission or a Member State.

Article 36

(Other ways of defining technical specifications)

In the absence of standards, technical approvals or general technical specifications, technical specifications may be defined in the following manner:

1. in accordance with the technical specifications applicable in the Republic of Slovenia. These technical specifications shall comply with the basic requirements applicable within the European Community for technical harmonisation in accordance with the procedures specifically envisaged for that purpose, and this shall especially be taken into account in the procurement of works materials, information technology, in the field of telecommunications, and other specific fields of services and goods,

2. in accordance with the technical specifications applicable in the Republic of Slovenia with respect to design, calculation methods, execution of works and use of materials,

3. in accordance with other documents, where contracting entity shall apply the following order of preference:

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a) Slovenian SIST standards which are transposed international standards,

b) any other national standards,

c) technical approvals applicable in the Republic of Slovenia.

Article 37

(Standards)

(1) A Slovenian standard is a standard adopted by a competent body in the Republic of Slovenia and available to the public.

(2) A European standard is a standard adopted by a competent body of the European Communities and is available to the public.

(3) A foreign national standard is a standard adopted by a competent foreign national body and is available to the public.

(4) Other standards are standards which may be adopted on a different basis, for example branch standards or company standards.

(5) An international standard is a standard adopted by an international organisation for standards or an international standardisation organisation and is available to the public.

Article 38

(Technical attestation)

(1) Technical attestation is a positive technical assessment of suitability of a product for the intended use.

(2) A European technical attestation is a positive technical assessment of suitability of a product for the intended use based on the fulfilment of basic requirements for the intended works. A body competent to issue technical attestations shall issue a European attestation.

(3) A European attestation shall be used for the procurement of works.

Article 39

(Common technical specifications)

A joint technical specification is a technical specification drawn up in accordance with a procedure recognised by the Republic of Slovenia with a view of its uniform application in all Member States of the European Union. Common technical specifications shall be published in

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the Official Journal of the European Communities.

Article 40

(Statement of essential requirements)

Essential requirements which are not included in the technical norms and standards in force and are relating to safety and other circumstances in the general interest shall be adhered to, and explicitly stated in the tender documents.

2.6. Participation conditions

Article 41

(Obligatory participation conditions)

(1) Contracting entity shall announce in the contract notice and in the contract documents the conditions which must be fulfilled by a tenderer wishing to take part in the procedure.

(2) Contracting entity shall exclude tenderers from the procedure in the following cases:

1. if they are not registered by the competent entity of the state where they are established,

2. if compulsory settlement, bankruptcy or liquidation procedures have been initiated against the tenderer or if the tenderer has suspended his business activities pursuant to a court order or other compulsory order,

3. if tenderer has, during a period of five years prior to the publication of the contract notice, been issued with a legally binding judgement for an infringement connected with his business activities or issued with a court or administrative order prohibiting him from carrying out the activity which is the subject of the contract,

4. if the tenderer has not fulfilled obligations relating to the payment of taxes, social security contributions and other contributions or business obligations in accordance with the regulations of the country in which he is established,

5. if the tenderer does not have a valid permit from the body competent for the activity which is the subject of the contract,

6. if the tenderer does not have the necessary financial or economic standing,

7. if the tenderer does not have sufficient technical capacities,

8. if the tenderer is guilty of misrepresentation in delivering or failing to deliver information that may be required under this paragraph.

(3) In order to fulfil liabilities of tenderers towards subcontractors or suppliers, contracting entity

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may prescribe additional conditions. Tenderers in their tenders shall explicitly confirm the adoption of these conditions.

(4) Tenderers shall state in their tenders whether their tenders refer to the entire contract or only to particular lots. Even if tenderers submit their tenders for all lots, their tenders shall be submitted so that it can be assessed by individual lots. After assessment of tenders by individual lots, and the assessment of tenders for all lots, contracting entity may conclude a contract with one or more tenderers offering the most favourable combination of tenders.

Article 42

(Proof of the fulfilment of participation conditions)

(1) Contracting entity shall require written proof from the tenderer of the fulfilment of the participation conditions laid down in paragraph (2) of the previous article.

(2) Proofs, which tenderers are to submit in their tenders demonstrating their capability to perform the contract, shall include the following documents issued at their request by competent bodies:

1. under Article 41(2) items 1., 2. and 3 above - extract from the judicial or other record,

2. under Article 41(2), item 4 above - a certificate issued by the competent tax authority where the tenderer is established, or a competent authority in the Republic of Slovenia,

3. under Article 41(2) item 5 above - a certificate issued by the competent authority keeping records of the issue of licence to do the business in question,

4. under Article 41(2), item 6 above - a revised balance sheet or extracts from balance sheet, or statements of a tenders’ overall revenue from sale and revenue from goods, works or services to which the contract relates for the last three financial years, opinions and bank statements and other specialised institutions, or proofs which are stated in the call for tender and in the contract and supporting documents. Contracting entity shall state in the contract notice or in contract documents which element under this item it had chosen and which other elements proving financial and economic standing the tenderers need to produce,

5. under Article 41(2), item 7 above - one or more proofs in accordance with the subject of the contract, the quantity and the purpose, such as:

a) a list of the principal supplies, works or services performed in the last three years, with the values, dates and a list of public contracting entities or private entities; where the purchasers or contracting entities are the contracting entities according to this Act, the evidence shall be issued in the form of certificates issued or countersigned by the competent authority, while if purchasers or contracting entities are private undertakings or private individuals, the certificate shall be certified by the purchaser,

b) a description of the tenderer’s technical facilities and appliances, measures for ensuring quality, and the R&D related capacities,

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c) a statement of the key technical personnel and other experts working for the tenderer who will be responsible for the execution of the contract, and the persons responsible for the quality control,

è) samples, a description or photographs of goods, a description of works to be executed or services to be provided by the tenderer. In the case of doubt, contracting entity may request proof of their authenticity,

d) certificates issued by authorised bodies or other quality control organisations attesting conformity to specifications or standards of goods or services with certain required specifications or standards in the contract and supporting documents,

e) where supplies are complex, or the services or works are very demanding, or if in exceptional cases the subject of the contract is intended for special purposes, an examination shall be carried out. The examination shall be carried out by contracting entity’s representatives, or on its behalf, the competent official body of the country in which the tenderer is established. The examination shall focus on the production capabilities of tenderers and, where necessary, also their R&D capabilities, and quality establishing methods.

(3) Tenderers shall ensure that their subcontractors, if they are stated in the tender, also fulfil the participation conditions provided for in the previous article. Their fulfilment of participation conditions shall be recorded in the same way as is required with respect to tenderers.

(4) In the Republic of Slovenia, certificates under paragraph (2), items 1. and 3. above, shall be issued by regular courts, Tax Administration or Chamber, while certificates under paragraph (2), item 2 shall be issued by the Tax Administration of the region where tenderers are based.

(5) If tenderers are based abroad, contracting entity shall verify if documents proving the requested facts are issued by the competent authorities. The list of competent authorities of foreign states issuing the documents that contracting entity may request under this article, and the method of verifying such documents, shall be prepared by the minister of finance.

Article 43

(Professional References)

(1) If contracting entity requests the submission of professional references, it shall specify in the contract notice or in the public tender and in the contract documents which professional recommendations (references) the tenderers must produce.

(2) The extent of the information requested under the preceding paragraph must be confined to the subject of the contract. Contracting entity shall consistently respect the legitimate interests of tenderers and protect their technical or business secrets. Contracting entity may use the information acquired only for the purposes of a specific public tenders.

Article 44

(Supplementary Statement)

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Where the official bodies in the country in which tenderers are established do not issue the certificates required in Article 42(2), or where such certificates do not cover all the cases mentioned in items 1, 2 and 3 of Article 42(2), they may be replaced by their own written declaration legalised before the competent body of the state where such tenderer is established, or by a written declaration given under the criminal and material liability.

2.7. Recognition of qualification

Article 45

(Statement of Qualification)

(1) Before the award of a contract, contracting entity shall check that tenderers fulfil the conditions concerning economic and financial standing as defined in Article 41(2), items 5. and 6.

(2) Contracting entity shall award contracts on the basis of conditions for establishing the capability referring to financial, personnel-related and technical capabilities to perform the contract. Contracting entity may define additional criteria provided they do not constitute any discrimination of tenderers.

Article 46

(Statement of Qualification for Subcontractors)

(1) In establishing the capability to execute a contract, contracting entity may ask tenderers to state in their tenders whether the execution of the contract will be, in part or in full, entrusted to a subcontractor. If it will, tenderers shall name such subcontractor and if a contract is signed, the same subcontractor shall be named in the contract between the contracting entity and the tenderer.

(2) Tenderers shall be liable in full for the execution of a contract awarded to them irrespective of the number of subcontractors.

Article 47

(Submission of a Joint Tender)

(1) Tenders may be submitted by a grouping of tenderers. Contracting entity may not require such a grouping to assume a specific legal form in order to submit a tender.

(2) Contracting entity may, however, require such a grouping of tenderers to submit a legal act on the joint execution of a contract, if they are awarded the contract and provided it is necessary for the successful execution of the contract. The legal act on the joint execution of a contract shall state in detail the responsibility of individual tenderers for the execution of the contract. In any case, tenderers shall have unlimited joint liability to contracting entity.

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(3) Contracting entity may ask legal entities to state, in their tenders or requests for cooperation, the names and adequate professional qualifications of the persons who will be responsible for the execution of the contract.

Article 48

(Selection of Candidates)

(1) In the first phase of the restricted and negotiated procedure, contracting entity shall select those candidates which they will invite in the second phase to submit tenders or to take part in negotiations.

(2) Contracting entity shall select candidates in the first phase on the basis of information submitted by tenderers demonstrating:

- tenderer’s legal status,

- tenderer’s economic standing,

- tenderer’s financial standing,

- tenderer’s technical capability,

- tenderer’s human resource capability.

(3) Tenderers shall demonstrate the fulfilment of the required criteria in the manner set out in Articles 41 and 42 of this Act.

Article 49

(Creating the List of Candidates)

(1) Contracting entity shall create the list of candidates and determine the period with respect to which the qualification is recognised. Such period shall not exceed three years.

(2) If contracting entity select tenderers by the negotiated procedure because they did not receive any regular, adequate or appropriate tenders, and if they did not include in this procedure all tenderers from the unsuccessful open or restricted procedure to whom they had acknowledged capability under Article 48 of this Act, and who had submitted regular tenders, such contracting entity shall publish a contract notice stating that it will award a contract by the negotiating procedure.

2.8. Criteria for Selecting the Best Tender

Article 50

(Definition of Criteria)

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(1) Contracting entity shall publish identical criteria in the contract notice and in the contract documents.

(2) Criteria by which contracting entity select the best tender shall be described and evaluated in the contract documents. Criteria shall not be discriminatory and shall be logically related to the contract contents. They shall promote non-discriminatory classification of tenders.

(3) In the contract documents, contracting entity shall state, describe and evaluate all the criteria, which they intend to apply in the award, in descending order of importance. Contracting entity may not change the criteria after the publication of contract notice or upon invitation to tender in the restricted procedure.

(4) In evaluating the tenders, contracting entity shall apply only those criteria and methods described and quantified in the contract documents. Contracting entity shall not apply any criteria which were not stated in the contract and supporting documents.

Article 51

(Types of Criteria)

(1) The criteria to evaluate a tender may be:

1. the most economically advantageous tender, or

2. the lowest price.

(2) The most economically advantageous tender is a tender incorporating various criteria depending on the subject of the contract:

1. delivery or completion date,

2. running costs,

3. cost-effectiveness,

4. quality,

5. aesthetic and functional characteristics,

6. technical merit,

7. after-sales service and technical assistance,

8. guarantee period,

9. commitments with regard to spare parts,

10. post-guarantee maintenance,

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11. price, and so on.

(3) The lowest price means that the sole criterion is the lowest price given equal fulfilment of all the required criteria described in the contract documents. Where this criterion applies, contracting entity shall not recognise any subsequent increase in prices after the contract has been signed.

Article 52

(Alternative Tenders)

(1) Where the criterion for the award of the contract is the most economically advantageous tender, contracting entity may take into account the alternatives which are submitted by tenderers and meet the minimum specifications required by the contracting entity. The contracting entity shall state in the contract documents the minimum specifications to be respected in the alternative proposals, and specific requirements for their presentation.

(2) Where alternatives are not permitted, contracting entity shall so indicate in the contract notice and in the contract and supporting documents.

(3) Contracting entity may not reject an alternative on the sole ground that it was drawn up on the basis of technical specifications in compliance with European specifications or with the national technical specifications, which were recognised to comply with the essential requirements.

Article 53

(Abnormally Low Price)

(1) If, for a given contract, tendered prices appear abnormally low, contracting entity shall, before the rejection of respective tenders, request in writing details of the constituent elements of the tender which it considers relevant and shall verify them taking account of the explanations received. Contracting entity may set a reasonable reply period not exceeding 20 days for the purpose.

(2) Contracting entity may require an objective explanation with regard to the economy of construction or production method, or technical solutions chosen, or exceptionally favourable conditions available to the tenderer for the execution of the contract, or the originality of the product or the work proposed by the tenderer.

(3) Contracting entity may refuse tenders containing abnormally low prices resulting from the State aid only if they have consulted the tenderer and the tenderer has been unable to show that the aid in question has been notified to the Commission pursuant to Article 93 of the EEC Treaty, or if the Commission approves such refusal. If contracting entity refuse a tender under these circumstances shall inform the Commission thereof.

(4) The Competition Protection Office shall issue the opinion stated in the previous paragraph with respect to the contracts published only in the ‘Uradni list Republike Slovenije’.

Article 54

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(Additional Explanations and Allowed Corrections)

(1) Contracting entity may ask explanations from tenderers to facilitate review, evaluation and comparison of tenders. Contracting entity may not ask, allow or offer any change in the contents including the changes of price and, in particular, any changes that would convert an inadequate tender into an adequate one. Contracting entity only may, in agreement with tenderers, correct calculation errors detected during the examination of tenders after the opening of tenders or may refuse such tender.

(2) In awarding contracts the value of which exceeds SIT 1,000,000,000, tenderers shall submit their tenders and a copy of tender in two separate envelopes. The tender shall be opened in accordance with the provisions of this Act, and the copy shall remain unopened and shall be submitted simultaneously and directly to the National Review Commission. The tenderer shall guarantee authenticity of both copies. If the review request was not submitted, the deposited copy shall be returned to the tenderer immediately after the expiration of the period for submission of the review request. If, however, tenderers submit a request for a review, the deposited copy shall be returned to the tenderers immediately after the finished review procedure.

(3) Contracting entity may request that tenderers submit information on their business connections if these are related to a concrete contract.

2.9. Time limits in the award of contracts

Article 55

(Time Limit to Submit a Tender)

(1) Contracting entity shall publish in the contract notice and in the contract documents the time limit within which tenderers or candidates must submit a tender. The time limit for receipt of tenders fixed in the contract notice shall be the same as the time limit fixed in the contract documents.

(2) Timely submission of tenders shall mean that tenderers submit their tenders within the time limit fixed in the contract notice.

(3) Contracting entity shall fix the date and the time for receipt of tenders in the contract notice and in the contract documents.

(4) After the expiration of time limited period, tenderers may not withdraw or change their tenders. If tenderers withdraw or change their tenders after the expiration of this period, or fail to sign a contract, when their tender was selected, contracting entity is entitled to encash the warranty related to tender.

(5) Tenderers shall present their tenders in person or by mail.

(6) Minister of finance may, by way of executive acts, determine other ways of presenting the tenders. These have to ensure that:

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1. each tender contains all the necessary elements for assessing the tenders

2. confidentiality of tenders is guaranteed until the day of opening of tenders

3. when necessary, tenderers immediately confirm in writing the submitted tender, or they send an original tender

4. all tenders will be opened only after the expiration of the period for the submission of tenders.

Article 56

(Calculation of time limits)

(1) Time limits for submission of tender shall be calculated from the day when the contracting entity sent a request for the publication of notice to the Official Gazette of the Republic of Slovenia. The dispatch date shall be stated in the notice.

(2) If the notice is published in the Official Journal of the European Communities, the time limit for submission of tender shall be calculated from the day when the contracting entity sends a request for the publication of notice to the Official Journal of the European Communities.

(2) Request for publication of notices shall be sent by mail, telefax or by electronic mail. The notice shall be published not later than 12 days following the day when the contracting entity sent a request. Contracting entity shall be able to present a proof of the date of dispatch of notice for publication.

Article 57

(Timely Tenders)

(1) A tender shall be considered to have been submitted in good time if the contracting entity receives it by the date and time fixed in the notice.

(2) Upon receipt of a tender, contracting entity shall mark the date and time of receipt of the tender and, upon a request from the tenderer, present proof of receipt.

(3) Where a tender was submitted after the expiration of the date and time stated in the notice, it shall be considered that the tender was submitted too late. After completion of the procedure for the opening of tenders, contracting entity shall return such tender unopened to the tenderer, with a statement that it was submitted too late.

Article 58

(Fixing the time limit for receipt of tenders )

(1) The time limit for submission of tenders shall be such as to enable tenderers to present appropriate tenders.

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(2) In fixing the time limit for submission of tenders, contracting entity shall provide for an extended time limit, if the preparation of tenders requires a review of voluminous contract documents or lengthy technical specifications, a visit to the site, and so forth.

Article 59

(General Time Limit for the Receipt of Tenders in an Open Procedure)

(1) If contracting entity has published a contract notice in the Official Journal of the European Communities, the time limit for submission of tenders in an open procedure shall not be shorter than 52 days following the date when contracting entity dispatched the contract notice for publication.

(2) If the contract notice is published only in to the Official Gazette of the Republic of Slovenia, the time limit for submission of tenders in an open procedure shall not be shorter than 40 days following the date when contracting entity has dispatched the contract notice for publication.

Article 60

(Reduced Time Limit for Submission of Tenders in an Open Procedure)

(1) The time limit for submission of tenders in an open procedure laid down in paragraph (1) of the previous Article, may be replaced by a time limit sufficiently long to enable appropriate tenders to be drawn up and may not generally be less than 36 days.

(2) The time limit for submission of tenders in an open procedure laid down in paragraph (2) of the previous Article, may be replaced by a time limit sufficiently long to enable appropriate tenders to be drawn up and may not generally be less than 30 days.

(3) In no case may the time limit for submission of tenders be less than 22 days following the date when the request for publication was dispatched, provided that contracting entity sent a prior indicative notice in accordance with Article 67 of this Act, and the contract notice was sent in the form prescribed for the prior indicative notice to the Official Gazette of the Republic of Slovenia, or, where necessary, to the Official Journal of the European Communities and provided the following conditions were also fulfilled:

- that the contracting entity sent an indicative notice at least 52 days and not more than 12 months before the contract notice was dispatched,

- that in the indicative notice, contracting entity published at least as much information as available at that time.

Article 61

(Time Limits for Receipt of Application to Participate in Restricted and Negotiated Procedures)

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(1) The time limit for receipt of an application to participate in a restricted procedure and the procedure which includes negotiations with prior publication, and where the value of contract requires that contracting entity publish the notice also in the Official Journal of the European Communities, may not be less than 37 days from the date when contracting entity had dispatched the notice.

(2) If the publication in the Official Journal of the European Communities is not necessary, the time limit for receipt of application to participate in the restricted procedure and in the negotiated procedure with prior publication shall not exceed 25 days from the date when contracting entity had dispatched the invitation.

Article 62

(General Time Limit for Receipt of Tenders in Restricted Procedures)

The time limit for receipt of tenders in restricted procedures may not be less than 40 days from the date of dispatch of the invitation for publication, if the publication is mandatory in the Official Journal of the European Communities, and not less than 30 days from the date of dispatch of the written invitation, if the publication is not mandatory in the Official Journal of the European Communities.

Article 63

(Determination of General Time Limit for Receipt of Tenders in Restricted Procedures)

(1) The time limit for receipt of tender in restricted procedures laid down in the previous Article may be reduced to 26 days from the date on which the contract notice was dispatched, provided that contracting entity sent an indicative notice in accordance with Article 67 of this Act, and the notice was sent in the form prescribed for indicative notice to the Official Gazette of the Republic of Slovenia or, where necessary, to the Official Journal of the European Communities, and provided that contracting entity sent an indicative notice at least 52 days and no more than 12 months before the contract notice was dispatched for publication, and that in the indicative notice contracting entity published at least as much information as available at that time.

(2) Requests to participate in contract award procedures may be made by mail, telegram, telex, telefax, by electronic mail, or by telephone. If a request is made by telegram, telex, telefax, by electronic mail or by telephone, it shall be confirmed by letter dispatched before the time limit laid down in Article 59.

(2) Where tenders can only be drawn up after a visit to the site or after on-the-spot inspection of the contract documents, contracting entity shall extend accordingly the time limits laid down in paragraph (1) above.

Article 64

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(Conditions for Additional Reduced Time Limits in Restricted Procedure)

(1) In restricted and negotiated procedures with prior publication of a contract notice in cases where urgency renders impracticable the time limits laid down in the previous Article, contracting entity may fix the following time limits:

1. the final time limit for receipt of requests to participate in the contract award procedure may not be shorter than 15 days from the date of dispatch of the notice,

2. the final time limit for receipt of tenders may not be shorter than 10 days from the date of dispatch of the invitation to tender.

(2) Provided it has been requested in good time, additional information relating to the contract documents shall be supplied to candidates by contracting entity not later than four days before the final time limit fixed for receipt of tenders.

(3) Requests for participation and invitations to participate in the contract award procedure shall be sent by the most rapid means of communication possible. When tenderers make requests to participate by telegram, telex, telefax or telephone, they must confirm them by mail dispatched before the expiration of the time limit laid down in paragraph 1 of this Article.

(4) The provisions laid down in paragraphs (1), (2) and (3) above shall not apply to contracts in the water, energy, transport and telecommunications sectors.

2.10. Publication of a contract notice

Article 65

(Manner of Publication)

1. Contracting entity shall publish all contract notices in the Official Gazette of the Republic of Slovenia.

2. Contracting entity shall publish all contract notices and other notices in Official Journal of the European Communities if the contract value exceeds the value defined for the type of contract. Contract notice is published in Slovene language, summary of important elements of contract notice shall be published in official languages of the European Communities with only the Slovene text representing the authentic text. Contract notice shall not be published in the Official Gazette of the Republic of Slovenia before the request for its publication in the Official Journal of the European Communities has been sent.

3. Contracting entity bears the cost of publication of contract notice in the Official Gazette of the Republic of Slovenia, the cost of publication of contract notice in the Official Journal of the European Communities is borne by the Official Journal of the European Communities.

4. Contracting entity may publish contract notices also in other media means but not before they were published in the Official Gazette of the Republic of Slovenia or in the Official Journal of the European Communities, if publication in the Official Journal of the European Communities is also required. Such notices shall contain the same data as

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published in official gazettes. 5. Minister of finance prescribes the uniform forms for the publication of contract notices

and of all other notices obligatory by this act in the Official Gazette of the Republic of Slovenia. These forms shall be used also for the purpose of publication in the Official Journal of the European Communities.

Article 66

(Types of Publication)

(1) Types of publication are as follows:

1. an indicative notice,

2. public invitation of tenders,

3. a contract award notice,

4. public invitation of requests for qualification,

5. periodic indicative notice.

(2) In the restricted procedure for the award of contract, contracting entity shall publish an invitation of tenders only in the first phase in order to establish the qualification of candidates, while in the second phase the qualified candidates are invited to submit tenders.

(3) The invitation of requests for qualification and the periodic indicative notice shall be published only in the case of award of contract in the water, energy, telecommunication and transport sectors.

Article 67

(Indicative Notice)

(1) With respect to contracts exceeding the value of EURO 750,000, contracting entity shall publish, at least once a year, an notice indicating the intention to award a contract.

(2) Contracting entity shall publish such indicative notice also in the Official Journal of the European Communities.

(3) In the case of award of contracts in the water, energy, telecommunication and transport sectors, the indicative notice shall be published within 12 months prior to the date when the contracting entity sends the invitation to take part in a restricted or in a negotiated procedure, whereby the contracting entity shall also observe the time limits fixed for the submission of tenders laid down in this Act.

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Article 68

(Public Invitation of Tenders)

(1) Contracting entity shall publish invitation to tender in the following cases:

1. in the case of award of contract in the open procedure,

2. in the first phase of the restricted procedure,

3. in the case of award of contract in the negotiated procedure after a prior publication,

(2) Public invitation of tenders shall contain information on the contracting entity, the contract subject, participation conditions and award criteria, time and place of collecting of contract documents, time and place of submission of tenders, approximate date of the decision on the award of contract, and reference of a contact person providing additional information. If contracting entity estimates that any other information is also necessary, it shall be included as well.

Article 69

(Contents of an Invitation to Tender in a Restricted Procedure)

The contracting entity shall invite simultaneously and in writing all selected candidates to submit their tenders. The invitation shall include at least the following information:

1. the address from which the contract documents can be requested, and the final date for making such a request, the amount and terms of any sum to be paid for such documents,

2. the final date for receipt of tenders, the address to which they must be sent, and the language in which they are to be drawn up,

3. tenderer’s reference in the field related to the published contract notice,

4. a list of any documents to be annexed to support the statements furnished by the candidates relating to the participation conditions the candidates are to fulfil, or to supplement the information demonstrating financial and economic standing, or technical capability to execute the contract which is the subject of the invitation of tenders,

5. the date of opening the tenders.

Article 70

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(Notice on the Award of Contract)

(1) Contracting entity shall publish the result of the procedure to award a contract, regardless of the type of procedure, not later than 14 days after the concluding of a contract in the Official Gazette of the Republic of Slovenia.

(2) If the contract notice was also published in the Official Journal of the European Communities, the result of the procedure to award a public contract shall be published in the Official Journal as well.

Article 71

(Public Invitation of Requests for Qualification)

(1) Contracting entity may select the best tender on the basis of setting a special restricted procedure system for the selection of tenderers (a qualification procedure). In this case, it shall ensure that various tenderers may at any time request that their qualification in order to participate in the award procedure be established. If the invitation of tenders is carried out by the qualification procedure, tenderers who were selected by prior establishment of qualification or by the negotiated procedure shall be selected from among these candidates in accordance with such method of selection.

(2) In the qualification procedure, contracting entity shall draw up a notice containing the following data:

1. name of contracting entity, address, telephone, telefax and telex numbers and telegraphic address,

2. the purpose of applying the qualification system,

3. the address from which suppliers and contractors may obtain a notice relating to participation in the qualification procedure,

4. the duration of the qualification procedure, where possible.

(3) Contracting entity shall inform applicants of the date of decision on qualification within a reasonable period. Where contracting entity consider that the decision will take longer than six months from the date on which an application to participate was presented, they shall inform applicants, within two months of the date of presentation of the application, of the reasons justifying a longer period and of the date by which applications will be accepted or refused.

(4) The special restricted procedure system may involve different qualification stages. It shall operate on the basis of non-discriminatory criteria and conditions established by the contracting entity in advance. Contracting entity may update the conditions and criteria as required. Where possible, contracting entity shall state the application of European standards as a reference.

(5) The conditions and criteria shall be made available on request to all interested suppliers,

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providers and contractors. Contracting entity shall also communicate the updating of conditions and criteria. Where contracting entity consider that the qualification system of other contracting entity meets the same requirements, it shall communicate the names of such contracting entity to the interested suppliers and contractors.

(6) Contracting entity shall apply the qualification procedure for the award of contracts in the water, energy, telecommunication and transport sectors.

Article 72

(Periodic Indicative Notice)

(1) When a call for competition is made by means of a periodic indicative notice the notice shall refer specifically to the supplies, works or services which will be the subject of the contract to be awarded.

(2) The notice shall indicate that the contract will be awarded by restricted or negotiated procedure without further publication of invitation of tenders and invite interested undertakings to express their interest in writing.

(3) Contracting entity shall invite all candidates to confirm their interest on the basis of detailed information on the contract concerned before initiating the selection of tenderers or participants in negotiations.

2.11. The Opening of Tenders

Article 73

(Public Opening of Tenders in Open Procedures)

(1) Tenders in open procedures and in the second phase of restricted procedure shall be opened in public. Contracting entity may determine, for reasons of protecting the trade, official, military or state secrets, that tenders shall not be opened in public. Such decision shall be made known in the contract notice.

Article 74

(Minutes on the Opening of Tenders)

(1) Contracting entity shall keep records on the opening of tenders containing the following information in particular:

1. tender serial number,

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2. name or code name of tenderer in case of anonymous invitation to tender,

3. the tendered price and any discounts offered by tenderers.

(2) Contracting entity shall, throughout the procedure, take care not to disclose the tenderer’s business secrets.

(3) Minister of finance prescribes in detail the procedure for the opening of tenders in the open, the restricted and the negotiated procedures, and a standard form for keeping records on the opening of tenders.

Article 75

(Delivery of Minutes on the Opening of Tenders)

(1) Following the procedure of opening the tenders, contracting entity shall send, within three days, the records to those tenderers who had submitted their tenders.

2.12. Award of contract

Article 76

(Regular, Adequate and Appropriate Tenders)

(1) Contracting entity selects the most favourable tenderer after having obtained two independent regular, adequate and appropriate tenders from two different tenderers, not associated with each other as regards their capital or management.

(2) In the procedure of awarding a contract, contracting entity shall, after the reviewed and assessed tenders, reject the tenders which are not regular; it may, however, reject also all inadequate and inappropriate tenders.

(2) If contracting entity receives only inadequate or inappropriate tenders, it may continue the procedure of awarding a contract in accordance with Article 20 above.

(4) Contracting entity may require tenderers or candidates, within a time limit of not more than 20 days, additional evidence relating to the fulfilment of the conditions, but only in such cases where the tenderer or candidate was unable to obtain the required documents, because they were not issued under the regulations applying in the country where they are established. In this case, contracting entity shall state which documents or other proofs have to be enclosed.

Article 77

(Rejection of All Tenders)

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(1) Contracting entity shall explain in writing their decision to reject all tenders and, in particular, state exact reasons for the rejection. Contracting entity shall notify the Government or their supervisory body, and the Commission of the European Communities, of the rejection of all tenders. The decision in question shall be forwarded for publishing in the Official Gazette of the Republic of Slovenia and the Official Journal of the European Communities.

(2) If contracting entity reject all tenders, it shall immediately inform tenderers or candidates about such decision and on the reasons of not accepting any tender; or on its decision to initiate a new procedure. Such notice shall be made in writing.

Article 78

(Report on the Award of a Contract)

(1) Contracting entity shall draw up a written report on each contract awarded. The written report shall contain at least the following information:

1. the name and address of the contracting entity,

2. the subject and value of the contract,

3. the names of the candidates or tenderers rejected and the reasons for their rejection

4. the name of the successful tenderer and the reasons for selecting this particular tender and, if the tenderer had stated that the contract will be carried out with the help of subcontractors, the share of the contract to be carried out by subcontractors shall also be stated,

5. for negotiated procedures, the circumstances justifying the use of this procedure.

(2) Based on the report stated in paragraph (1) above, contracting entity shall immediately send tenderers a notice on the award of contract.

Article 79

(Time Limit and Contents of Notice)

(1) On a special request of the tenderer who was not selected, contracting entity shall also send a notice on the award of contract with explanations. Tenderers may ask for the notice with explanations on the award of contract within 8 days of the date of receiving the notice stated in Article 78 (2) above. Time limit to submit a request for revision shall be calculated, pursuant to the law regulating the revision of the procedures to award contracts, from the day of receipt of the notice with explanations.

(2) Contracting entity shall, within 15 days from the receipt of a written request of rejected tenderers or candidates, inform the latter on the reasons for having rejected their tender or

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application. Such notice shall contain the following information:

1. the reasons for the rejection of their tender,

2. the name of tenderers meeting the required selection and award criteria,

3. the relative merits of the selected tender with respect to award criteria fulfilled,

4. the name of the successful tenderer.

(3) Contracting entity may refuse to provide a notice with explanation in full or in part, if the disclosure of such information could be in collision with the rules, or could in some other way be contrary to the public interest, or damaging to business interests of the selected tenderer, if the notice contained the information defined as confidential by another regulation, or if the disclosed information would affect the rules of fair competition among tenderers or other parties in the procedure according to the provisions on data protection in contract award procedures. Contracting entity may not refuse to disclose all data related to the contract award procedure on the request of the Commission responsible for the revision of contract award procedures.

Article 80

(Refusal of Application for Qualification)

(1) Contracting entity shall inform applicants whose qualification was refused of this decision and of the reasons for refusal. The reasons for refusal shall be based exclusively on the qualification criteria.

(2) Contracting entity shall keep a written record of qualified suppliers, providers and contractors. It may be divided into categories according to the type of contract to which the qualification applies.

Article 81

(Exclusion of Candidate from the List of Qualified Tenderers)

Contracting entity may eliminate a candidate from the list of qualified tenderers only for reasons based on criteria laid down in advance. Contracting entity shall notify a supplier or a contractor in writing prior to the intention to bring her/his qualification to an end, stating the reasons which justify the elimination of a tenderer from the list of qualified tenderers.

3. SPECIAL PROVISIONS RELATING TO THE AWARD OF CONTRACTS FOR SUPPLIES, WORKS OR SERVICES AND FOR THE AWARD OF CONTRACTS IN THE WATER,

ENERGY, TRANSPORT AND TELECOMMUNICATIONS SECTORS

3.1. Award of Supply Contracts

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Article 82

(Definition of the Subject of Supply Contracts)

(1) The subject of the supply contract as defined in this chapter shall be purchase, rent and lease of all types of supplies with or without the possibility to purchase, or purchase on the basis of instalments. The minister of finance shall prescribe types of supplies, which are the subject of supply contracts under this chapter.

(2) A supply contract may include a service contract, if the services are linked to the supply, such as assembly, transport, insurance or other services as defined by contracting entity.

Article 83

(Publication of Contract Award)

(1) Contracting entity shall publish a notice for the award of supply contracts also in the Official Journal of the European Communities, if the estimated value of the contract exceeds:

1. 200,000 special drawing rights:

- for supplies procured by users of national or local community budget, including by supply contract concluded by these contracting entities in the field of defence and for which supplies there are no standards or technical regulations, in accordance with the common rules in the technical field of public procurement (Chapter 2.5. of this Act),

2. 130,000 special drawing rights:

- for supplies procured by users of national or local community budget; where the contracting entity is responsible for the field of defence, this shall apply only to supplies for which there are no standards or technical regulations, in accordance with the common rules in the technical field of public procurement (Chapter 2.11. of this Act).

Article 84

(Award of Supply Contracts by Negotiated Procedure

without Prior Publication)

In addition to cases mentioned in Article 20(1) above, contracting entity may award a supply contract by negotiated procedure without prior publication provided it concerns:

1. additional supplies by the original supplier which are intended either as a partial replacement of products, material or installations, or as the extension of the scope of existing products, material or installations where a change of supplier or provider of services would oblige the contracting entity to acquire material having different technical characteristics which would result in incompatibility or disproportionate technical difficulties in operation and maintenance,

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2. the supplies are intended exclusively for the purpose of research and development and the contracting entity does not intend to use such supplies for any commercial purposes whatsoever or recover research and development costs.

Article 85

(Award of Supply Contracts by Negotiated Procedure

with Prior Publication)

Contracting entity may award supply contracts by negotiated procedure with prior publication in accordance with Article 20(2).

3.2. Award of works contracts

Article 86

(Definition of the Subject of Works Contract)

The subject of the works contract shall be:

1. execution of works,

2. design and execution of works linked to the specific activities set out in Annex II to this Act,

3. work that is the outcome of building and civil engineering, taken as a whole, which fulfils all economic and technical requirements of the contracting entity.

Article 87

(Publication of the Works Contracts Notices)

(1) Contracting entity shall publish the notices on works contract also in the Official Journal of the European Communities where the minimum estimated value of the contract is as follows:

1. EURO 5,000,000 of special drawing rights:

- for construction works,

1. EURO 5,000,000:

- for the works awarded pursuant to Article 88(1) of this Act.

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(2) Contracting entity shall make known, immediately after the adoption of the budget, by means of a prior indicative notice the envisaged award of works contract the value of which exceeds EURO 750,000.

Article 88

(Award of Works Contracts in Case of Subsidised Construction)

(1) The provisions of this Act shall also apply to the execution of works for which the investor obtains a subsidy from a direct or indirect budget user and where the share of such subvention exceeds 50%.

(2) The provision laid down in paragraph 1 shall apply to works contracts related to the construction of hospitals, facilities intended for sport, recreation and leisure, schools and university buildings, buildings used for administrative purposes and the construction in the field of civil engineering in accordance with Annex II.

Article 89

(Award of Works Contracts by Negotiated Procedure

without Prior Publication)

In addition to cases stated in Article 20(1) above, contracting entity may award a works contract by negotiated procedure without prior publication:

1. for additional works or services not included in the initially designed project or in the first works contract which, due to unpredictable circumstances, became necessary for the execution of contract provided that the contract be awarded to the initial contractor or supplier:

a) when such additional works or services cannot be separated, in technical or economic terms, from the principal contract without causing insurmountable obstacles for the contracting entity, or:

b) when the works or services are indispensable for further phases of execution, although the contracting entity could have awarded contracts for them separately from the execution of the initial contract, and where the total estimated value shall not exceed 25% of the total amount of the principal contract,

2. for new services or works which are the repetition of similar services and works and are executed by the initial contractor provided that such services or works comply with the initial project which was the subject of the first contract awarded through public invitation of tenders. Contracting entity shall state such possibility already in the first publication of the invitation of tenders. Contracting entity may award contracts under this item only if less than three years have passed since the conclusion of the first contract.

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Article 90

(Award of Works Contracts by Negotiated Procedure

with Prior Publication)

Contracting entity may award works contracts by negotiated procedure with prior publication in the cases referred to in Article 20(2) above, and the works contracts where the works are included or performed exclusively for the purpose of research and development, and are not intended for any commercial purposes of contracting entity or for the reimbursement of research or development costs.

Article 91

(Meeting of Special Conditions for the Award of Works Contracts)

(1) In the contract documents, contracting entity shall state the competent entity, which provides the relevant information concerning the obligations which have to be fulfilled to comply with the provisions on safety at work, employment and working conditions, applicable in the Republic of Slovenia.

(2) In the case referred to in paragraph 1, contracting entity shall request the tenderers or candidates to explicitly state in their tenders that they have taken account of statutory obligations resulting from regulations on safety at work and working conditions. Contracting entity shall take particular notice of the tenderer’s or candidate’s respect for the regulations if an abnormally low tender is based on the failure to respect such regulations.

Article 92

(List of Qualified Contractors)

(1) The Chamber of Commerce and Industry of Slovenia and the Chamber of Small Business of Slovenia (hereinafter: the Chamber) shall draw up on the basis of a public invitation of applications, a list of the interested contractors. In so doing they shall take account of the provisions laid down in this Act relating to the fulfilment of participation criteria under Article 41 (2), items 1., 2., 3. and 5, and the provisions of rules applying to the construction of premises in the Republic of Slovenia. Upon fulfilment of the same participation conditions, contractors from other countries may also be included in the list, provided that the Republic of Slovenia has concluded a specific agreement to this effect. If the Chamber establishes in any way that the qualified contractor no more fulfils the required participation criteria, the Chamber shall invite such contractor in writing, not later than 8 days after having established this fact, to prove again that the required participation criteria are fulfilled.

(2) Contractors who are registered in the above stated list may, for award of each works contract in which they are participating, submit a proof of their registration. This proof shall be valid for one year and shall constitute an official document.

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(3) Notwithstanding the issuing of the certificate referred to in the previous paragraph, contracting entity shall require for each particular works contract that the tenderer or candidate submit a declaration on the regular fulfilment of minimum requirements of the collective agreement and that they regularly and timely fulfil their obligations towards their subcontractors.

(4) Contracting entity may prescribe special conditions related to the fulfilment of obligations of suppliers towards their subcontractors. Tenderers shall explicitly confirm their consent to such conditions to make their tenders appropriate.

3.3. Award of services contracts

Article 93

(Definition of the Subject of Service Contracts)

(1) The subject of service contracts shall be the services stated in Annexes I A and I B, which are composite parts of this Act, as follows:

1. services receiving a direct State subsidy of more than 50% where the contracting entity is not a direct budget user but another contracting entity is,

2. services stated on the list of services in Annex I B,

3. services under item 8 on the list of services in Annex I A,

4. telecommunication services under item 5 in Annex I A.

(2) The subject of service contracts shall include services stated on the list of services I A, other than services defined in items 3 and 4 of the previous paragraph.

Article 94

(Services not Subject to this Act)

This Act shall not apply to:

- services stated in Article 2 above,

- purchase or rent of land, completed premises or other real estate or the related rights, whereas the contracts on financial services (loans) related to rent or purchase which can be concluded in any form whatsoever, upon, before or after signing the purchase or rent contract are subject of this Act,

- purchase, development production or co-production of radio and TV programme, or the

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broadcasting time,

- services of voice telephony, telex, radio telephony, paging and satellite services,

- arbitration and conciliation procedures,

- financial services related to the issuing, sale, purchase or transfer, of securities or other financial instruments and services of the Bank of Slovenia,

- employment contracts,

- research and development services, save when the research results are used exclusively by contracting entity for its own purposes and provided that such services are entirely paid by contracting entity.

Article 95

(Determining the Minimum Value of Services)

(1) Contracting entity shall publish a notice for award of service contract in the Official Journal of the European Communities where the minimum estimated value of the contract is:

1. EURO 200,000 for services:

- under item 1 of paragraph 1 of Article 93,

- under item 2 of paragraph 1 of Article 93,

- under item 3 of paragraph 1 of Article 93,

- under item 4 of paragraph 1 of Article 93,

2. 130,000 special drawing rights:

- services listed in Annex I A, other than the service under item 3 of paragraph 1 of Article 93,

- services procured by budget users and local authorities,

3. 200,000 special drawing rights:

- for all contracting entity other than the contracting entity referred to in the second indent of item 2 of this Article.

Article 96

(Award of Services Contract through a Design Contest)

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(1) Contracting entity shall award services contracts through a design contest in the field of physical and urban planning, architecture, civil engineering, engineering, design and computer science, and may include further production of those composite parts of contract documents for which a design is sought through a contest.

(2) Plan or a design selected by an independent jury after having been put out to competition with or without the award of prizes. The jury evaluating the proposals submitted shall be composed exclusively of natural persons who are not associated with the participants of the contest. Where a particular professional qualification is required from participants in a contest, at least one third of the jury shall have at least the same qualifications and experiences.

(3) The jury shall be autonomous in making decisions. The participation in the contest shall be anonymous and the decision of the jury shall be made solely on the grounds of criteria stated in Article 51 above.

Article 97

(Award of Service Contracts by Negotiated Procedure

without Prior Publication)

In addition to cases stated in Article 20(1) above, contracting entity may award a contract by negotiated procedure without prior publication:

1. for additional works or services not included in the initially awarded project or in the previously awarded contract, due to unpredictable circumstances, became necessary for the execution of contract, provided that the contract be awarded to the initial provider of services or contractor:

a) when such additional works or services cannot be separated, in technical or economic terms, from the principal contract without causing insurmountable obstacles for the contracting entity, or:

b) when the works or services are indispensable for further phases of execution, although the contracting entity could have awarded them separately from the execution of the principal contract, and where the total estimated value shall not exceed 25% of the total amount of the principal contract,

2. for new services or works which are the repetition of similar services or works and are executed by the initial contractor provided that such works or services comply with the initial project which was the subject of the first contract awarded through public invitation of tenders. Contracting entity shall state such possibility already in the first publication of the invitation of tenders. Contracting entity may award contracts under this item only if less than three years have passed since the conclusion of the first contract.

3. where a contract is awarded following a design contest and must be awarded to the

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successful candidate, or to one of the successful candidates. If there are more than one successful candidates, contracting entity shall invite all successful candidates to participate in the negotiations.

Article 98

(Award of Services Contracts by Negotiated Procedure

with Prior Publication of a Contract Notice)

Contracting entity may award a service contract by negotiated procedure with prior publication of a contract notice in the case referred to in Article 20(2), and in case when the nature of the services, particularly the intellectual services and services falling within category 6 of Annex I A, is such that contract specifications cannot be established with sufficient precision to award the contract by selecting the best tender in an open or restricted procedure.

Article 99

(Design Contest as a Composite Part of Another Service)

(1) The subject of a contract under this Act shall include design contests organised as part of a procedure leading to the award of a contract for services as referred to in:

- Annex I B,

- Annex I A, other than services of voice telephony, radiotelephony, paging and satellite services under item 5.

(2) The values stated in Article 95 of this Act shall apply to the publication of contract notices for the services referred to in this Article.

Article 100

(Design Contest as Independent Service)

(1) The subject of a contract under this Act shall include independent design contests including the award of prizes and payments to participants, in the case of services referred to in:

- Annex I B,

- Annex I A, other than services of voice telephony, radiotelephony, paging and satellite services under item 5.

(2) The values stated in Article 95 of this Act shall apply to the publication of contract notices for the services referred to in this Article.

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Article 101

(Application of Common Provisions for Special Types of Services)

Contracts which have as their subject services listed in both Annexes I A and I B shall be awarded in accordance with the provisions laying down the method of selecting the contract award procedures, common rules in the technical field, the rules on advertising, the rules on recognising qualifications, and the participation criteria where the value of the services listed in Annex I A is greater than the value of the services listed in Annex I B. Where the value of the services listed in Annex I A is less than the value of the services listed in Annex I B, contracting entity shall award the contract in accordance with the common rules in the technical procedure and with Article 102.

Notice on the award of a service contract

Article 102

(1) Where contracting entity awards a service contract, it shall send a contract notice for publication in the Official Gazette of the Republic of Slovenia and the Official Journal of the European Communities, if such contract exceeds the values stated in Article 95 of this Act.

(2) Notwithstanding the common provisions on publication, the notice on the award of a service contract shall be published in the following manner:

1. in the case of the publication of a contract notice for services listed in Annex I A, in accordance with the provisions laid down in Articles 31 to 36, Articles 46 to 48 of this Act, and Articles 65 to 72 above, provided that the notice is sent for publication not later than 48 days following the conclusion of the contract,

2. in the case of design contests, in accordance with the provisions laid down in Articles 65 to 72 of this Act, provided that the notice is sent for publication not later than 48 days following the conclusion of the contest.

3.4. Award of contracts in the water,

energy, transport and telecommunications sectors

Subject of the contract

Article 103

Contracts in the water, energy, transport and telecommunications sectors shall encompass the following activities:

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1. supply or operation of fixed networks intended to provide public services connected with the production, transport or distribution of:

- drinking water,

- electricity,

- gas or heat,

or the supply of drinking water, electricity, gas or heat to such networks;

2. the exploitation of a geographical area for the purpose of:

- exploring for or extracting oil, gas, coal or other solid fuels,

- construction, operation and maintenance of airports, maritime or inland ports or other terminal facilities for carriers in the air, sea or inland waterway sectors;

3. the operation of networks providing public services in the field of transport by railway, automated systems, bus or cable. As regards transport services, a network shall be considered to exist if the service is provided under operating conditions, such as maintenance of the roads, availability or frequency of services where these conditions are laid down in specific regulations adopted by a competent entity,

4. maintenance or operation of public telecommunications networks or the provision of one or more public telecommunications services, other than contracts awarded by contracting entity carrying out such activity for procurements intended exclusively to enable it to provide one or more telecommunications services, and provided other organisations are free to offer those services in the same geographical area under substantially equal conditions.

Article 104

(Award of contract where a special or exclusive right is granted)

(1) Where the State or local authority awarded, through a special act, decree or other legal act, a concession for special or exclusive rights to carry out activities stated in the previous Article, the concessionaire shall act as a contracting entity under this Act in the procurements of goods, services and works. Special and exclusive rights under this Act shall not include the rights awarded through a concession contract to a person that is not considered as contracting entity under this Act.

(2) Special or exclusive rights under this Act means that the user of these rights may, for the purpose of constructing the networks or facilities referred to in the previous Article, benefit from the expropriation procedure, or may place network equipment on the public highway, below or above it.

(3) It is considered that the user has special and exclusive rights also in the case referred to in Article 97, item 1, when supplying drinking water, electricity, gas or heat to a network which is

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operated by another concessionaire.

Article 105

(Ensuring Equal Conditions)

The provision of bus transport services to the public shall not be considered under this Act to be an activity within the meaning of Article 103, item 3, where other providers are free to provide those services in the same geographical area under equal conditions.

Article 106

(Definition of Exceptions)

The supply of drinking water, electricity, gas or heat to networks providing a public service through a person who is not a contracting entity under this Act, shall not be considered as an activity within the meaning of Article 103 in the following cases:

a) in the case of drinking water or electricity:

- if the person who is not contracting entity under this Act extracts drinking water or produces energy because its consumption is necessary for doing business other than that referred to in Article 103,

- if the supply to the public network depends only on the own consumption of the person who is not contracting entity under this Act and does not exceed 30% of that person’s total production of drinking water or energy, having regard to the average for the preceding three years, including the current year,

b) in the case of gas or heat:

- the production of gas or heat by the concessionaire is the unavoidable consequence of doing business other than that referred to in Article 103,

- supply to the public network is aimed only at the economic exploitation of such production and does not exceed 20% of the organisation's average annual revenue in the last years including the current year.

Article 107

(Additional Contracts)

The subject of contracts in the water, energy, transport and telecommunications sectors shall also include contracts:

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1. connected with hydraulic engineering projects, irrigation or land drainage, provided that the volume of water intended for the supply of drinking water represents more than 20% of the total volume of water made available by these projects, or irrigation or drainage installations,

2. connected with waste water treatment or purification.

Article 108

(Award of Contract to an Affiliated or Joint Undertaking)

Where contracting entity award public contracts in the water, energy, transport or telecommunication sectors to an affiliated company or joint venture in accordance with Article 109, item 6, they shall send the following information to the EU Commission at its request:

1. the name of the undertaking concerned,

2. the nature and value of the service contracts involved,

3. such proof as the EU Commission deems necessary to prove that the relationship between the undertaking which was awarded the contract, and the contracting entity, complies with the requirements laid down in this Act.

Article 109

(Contracts not Subject to this Act)

In addition to contracts, which are not the subject of this Act under Article 2, this Act shall not apply to the contracts in the water, energy, transport and telecommunications sectors which:

1. the contracting entity responsible for the supply to or operation of public telecommunications networks or the provision of public telecommunications services, awards for the supplies intended exclusively to enable it to provide one or more telecommunications services, and provided others are free to offer those services in the same geographical area under substantially equal conditions,

2. the contracting entity awards for the supply of water,

3. the contracting entity awards for the supply of electricity or fuel to produce energy,

4. the contracting entity awards or organises for a purpose of design contests other than the one provided for in Article 103,

5. for doing business under Article 3 in another state, not member of the EU, provided that such activity does not include the material use of network or geographical area in the EU Member States,

6. for services that a contracting entity awards to a joint undertaking established by several contracting entities for the purpose of doing business in the field of:

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a) supply or operation of permanent networks intended for the provision of public services related to the production, transfer or distribution of drinking water, electricity, gas and heat or the supply of drinking water, electricity, gas or heat to such networks,

b) the exploitation of a geographical area for the supply of airports, maritime or other terminal facilities for carriers in the air, sea or inland transport;

c) the operation of networks providing public services in the field of transport by railway, automated systems, bus or cable. It shall be considered that a transport network exists if the service is provided under operating conditions, such as maintenance of the roads, availability or frequency of services where these conditions are prescribed by the competent entity,

è) supply to or operation of the public telecommunication networks, or the provision of telecommunication services,

7. for the services which the contracting entity award to an affiliated undertaking. The award shall be subject to the condition that, in the last three years, the affiliated or joint undertaking has achieved at least 80% of the average revenue from services in the Republic of Slovenia by providing services for the undertakings to which it is affiliated.

Article 110

(Contracts without Prior Publication)

Contracting entity may award contracts without prior publication of a contract notice in the following cases:

1. in the absence of tenders or acceptable tenders in response to a procedure with a prior publication of the invitation of tenders, provided that the original contract conditions have not been substantially changed,

2. where the contract is concluded exclusively for the purpose of research and development and not for the purpose of ensuring profit or of reimbursement of research and development costs, and insofar as the award of such contract does not determine or restrict the award of subsequent contracts where competition needs to be ensured between tenderers.

3. when, for objective reasons, or for reasons connected with the protection of exclusive rights, the contract may be fulfilled only by a particular supplier, contractors or service provider,

4. for reasons that the contracting entity could not have foreseen and cannot be ascribed to their conduct, preventing them to respect the time limits for the execution of public invitation of tenders,

5. for additional supplies by the original supplier which are intended either as a partial replacement of products, material or installations or as the extension of the existing products, material or installations where a change of supplier or provider would oblige the contracting entity to acquire the material with different technical characteristics which would result in incompatibility or disproportionate technical difficulties in the operation and maintenance,

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6. for supplies quoted and purchased on a commodity market,

7. for additional works or services not included in the project or contract originally awarded but which have, through unforeseen circumstances, become necessary for the execution of the contract, provided that the award is made to the contractor or provider who carried out the original contract:

a) when such additional works or services cannot be technically or economically separated from the original contract without great inconvenience to the contracting entity, or

b) when works or services, although separable from the execution of the original contract, are strictly necessary to its later stages, whereby the total estimated value may not exceed 25% of the amount of the original contract;

8. for new services or works which are repeated similar services or works contracted to the same contractor or provider to which the contracting entity awarded an earlier contract provided that such services or works conform to a basic project for which the original contract was awarded following a public invitation of tenders. As soon as the invitation of tenders is announced the contracting entity must give notice of this possibility. The contracting entity may award a contract pursuant to this item only during the three years following the conclusion of the invitation of tenders,

9. for procurements where goods are procured to avail of a particularly advantageous opportunity during a very short time when the price is considerably lower than the normal market prices,

10. for purchases of goods under particularly advantageous conditions from either a supplier definitively winding up business activities, or from the trustee in bankruptcy provided the other creditors agree, in accordance with the regulations governing compulsory settlement, bankruptcy and liquidation,

11. when a service contract is part of the follow-up of a design contest organised in conformity with this Act and which shall be awarded to one or more of the winners of this contest. In this case, the contracting entity shall invite all parties to take part in negotiations,

12. for services and supplies of the companies employing the disabled, if the activities concerned cover training and employing the disabled under special conditions and in respect to which the Public Procurement Office gives its opinion. Contracting entity may, with a special agreement, award a contract under this item only if tenderers fulfil the participation conditions laid down in Article 41 above, and if contracting entity verify the price and the quality of the subject of contract by collecting several tenders or by analysing costs, or through the comparison of quality and the like. Contracting entity shall carry out verification by the type and subject of contract, which shall be evident in its documentation.

Article 111

(Exceptions Provided by Other Regulations)

(1) The provisions of this chapter shall not apply to contracts awarded to third parties for resale or hire, provided that the contracting entity enjoys no special or exclusive right to resell or hire

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the subject of such contract, and others undertakings are free to sell or hire it under equal conditions.

(2) Contracting entity shall notify the Government of the Republic of Slovenia, which shall notify the EU Commission at its request, of all the categories of products or activities regarded as excluded under paragraph 1 of this Article.

Article 112

(Determining the Minimum Value of Contract)

Contracting entity shall publish a notice for the award of supply, service or works contracts in the water, energy, transport and telecommunications sectors in the Official Journal of the European Communities, if the estimated minimum value of the contract is as follows:

1. where contracting entity are doing business in the field of telecommunications:

a) EURO 600,000 in the case of supply or service contracts,

b) EURO 5,000,000 in the case of works contracts,

2. where contracting entity are doing business in the field of capture, transport or distribution of drinking water or electric energy, supply of airports, urban bus, trolley bus or tramway services or underground railways, and the supply of maritime or other terminals:

a) 400,000 of special drawing rights for the procurement of goods or services listed in Annex I A, other than services stated in Article 93(1), items 3 and 4,

b) EURO 400,000 in the case of service contracts not within the meaning of item 2a above,

c) 5,000,000 of special drawing rights in the case of works contracts,

3. where a contracting entity is carrying out the activity of transporting and distributing gas or heat involving the extraction and refining of petroleum, gas or solid fuel, and railway services:

a) EURO 400,000 in the case of supply or service contracts,

b) EURO 5,000,000 in the case of works contracts.

Article 113

(Determining the Minimum Value for a Design Contest)

Contracting entity shall publish an invitation of tenders within a design contest organised as

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part of a procedure leading to the award of a service contract in the water, energy, transport, and telecommunications sectors in the Official Journal of the European Communities, if the estimated value of the contract is not less than:

1. EURO 600,000, where contracting entity is doing business in the field of telecommunications,

2. where contracting entity is doing business in the field of production, transport or distribution of drinking water or electricity, the supply of airports, urban bus, trolley bus or tramway services, or underground railways and the supply of maritime or other terminals:

a) 400,000 of special drawing rights in the case of supplies or services listed in Annex I A, other than the services under Article 93(1), items 3 and 4,

b) EURO 400,000 in the case of service contracts not within the meaning of item 2a above,

3. EURO 400,000 in the case of supplies or services where a contracting entity is carrying out the activity of transporting and distributing gas or heat involving the extraction and refining of petroleum, gas or solid fuel and railway services.

Article 114

(Prohibition to Restrict Participation)

(1) The right to participate in a design contest may not be restricted by reference to the territory or part of the territory of a particular country, or by the requirement that participants be either legal or natural persons.

(2) Where design contests are restricted to a limited number of participants, contracting entity shall lay down clear and non-discriminatory selection criteria. The number of candidates invited to participate shall be sufficient to ensure genuine competition, that is no less than 5 and no more than 20.

(3) The jury evaluating the tenders submitted shall be composed exclusively of natural persons who are not associated with the participants in the contest. Where a particular professional qualification is required from participants in a contest, at least half of the jury members shall have equal or equivalent qualification.

(4) The jury shall be autonomous in its decisions and opinions. These shall be reached on the basis of tenders submitted anonymously, and solely on the grounds of the criteria indicated in the contest notice and in the contract documents in accordance with Article 51 above.

Article 115

(Indicative Notice)

In accordance with Article 67(3), contracting entity shall, in the case of contracts in the water, energy, transport and telecommunications sectors, make known through an indicative notice at

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least once a year:

1. in the case of works contracts, the essential characteristics of the works contracts which the contracting entity intends to award, the estimated value of which is not less than:

a) EURO 5,000,000, where contracting entity is doing business in the field of telecommunications,

b) EURO 400,000 in the case of service contracts not within the meaning of Article 112, item 2a, where contracting entity is doing business in the field of production, transport or distribution of drinking water or electricity, the supply of airports, urban bus, trolley bus or tramway services or underground railways and the supply of maritime or other terminals,

c) EURO 5,000,000 where a contracting entity is carrying out the activity of transporting and distributing gas or heat involving the extraction and refining of petroleum or gas and railway services,

2. in the case of service contracts: the estimated total value of the service contracts in each category of services listed in Annex I A which the contracting entity intends to award over the following 12 months where such total estimated value is not less than EURO 750,000.

Article 116

(Updating of criteria and conditions)

When contracting entity makes a decision to award contract by qualification procedure, or when it updates selection and award criteria, it shall set such criteria as to avoid discrimination of specific suppliers, providers or contractors, or demand test and proofs matching the available objective facts and proofs.

Article 117

(Production of Certificates)

(1) Contracting entity may ask candidates to produce certificates drawn up by independent bodies for attesting conformity of the supplier, provider or contractor to certain quality assurance standards. The attestations shall refer to quality assurance systems based on the relevant EN 29 000 European standards series certified by bodies conforming to the EN 45 000 European standards series.

(2) Contracting entity shall recognise equivalent certificates from bodies established in other countries where so laid down in an international agreement concluded by the Republic of Slovenia. Contracting entity shall also accept other evidence of equivalent quality assurance measures from service providers who have no access to such certificates or no possibility of

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obtaining them within the relevant time limits.

Article 118

(Joint Tenders)

(1) Suppliers, providers or contractors shall be permitted to submit a joint tender or negotiate as a grouping in accordance with Article 47 above.

(2) If the contracting entity indicates in the contract notice that only a natural person or only a legal person may be a candidate or a tenderer, it cannot refuse candidates or tenderers who are carrying out their activity in accordance with the regulations of the country in which they are based and who are permitted, pursuant to the regulations of their country, to carry out the activity which is the subject of the public contract.

Article 119

(Application of other Criteria and Conditions)

(1) Without prejudice to the provisions laid down in Articles 48, 49 and 50 above, contracting entity may apply other criteria for the evaluation of tenders, provided such criteria are laid down in other valid regulations, which give a certain advantage to tenderers or candidates, and provided such manner of awarding contracts is in conformity with international agreements concluded by the Republic of Slovenia. Application of other criteria shall be published in the invitation of tenders and in the contract documents.

(2) Where the purpose of the award of a supply or works contract is to eliminate regional disparities or to create jobs in less developed areas, this method of awarding contracts to certain tenderers must be in conformity with international agreements concluded by the Republic of Slovenia. The Government may set up strategic interests in defining other selection and award criteria.

Article 120

(Reciprocity)

(1) Where tenderers tender products originating in countries with which the Republic of Slovenia has not concluded an agreement providing its tenderers with equal access to the market of the country in which the goods originate, such tender may be rejected where the proportion of the products originating in such countries exceeds 50% of the total value of the products in the tender.

(2) The origin of goods shall be established in accordance with valid regulations. For this purpose software used in telecommunications networks shall be considered as products.

(3) Contracting entity shall check closely the list of countries representing the origin of those

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goods which may be rejected pursuant to paragraph 1 above.

(4) Producers established in the Republic of Slovenia shall, without delay, inform the ministry of finance and the ministry responsible for international trade where, in the award of a public contract, contracting entities from other countries have:

1. not granted effective access to the market in the manner in which the Republic of Slovenia grants access to tenderers from this country,

2. not granted Slovenian tenderers national treatment or the same competitive opportunities as are available to national tenderers,

3. not granted tenderers from third countries more favourable treatment than tenderers from the Republic of Slovenia.

(5) On receipt of such notice the two ministries shall draw up a report for the Government, which must try to remedy the situation through diplomatic channels.

Article 121

(Restriction of Service Contracts)

(1) On the proposal of the ministry responsible for international trade the Government may temporarily suspend or restrict the award of service contracts to:

1. tenderers established in a country with which the Republic of Slovenia has not concluded an agreement on equal treatment of national and foreign tenderers,

2. tenderers affiliated to the tenderers specified in the preceding indent having their registered office in a country which the Republic of Slovenia has concluded an agreement on equal treatment of national and foreign tenderers but where such tenderer has no direct and effective link with the economy of the Republic of Slovenia,

3. tenderers submitting tenders which include services originating in a country with which the Republic of Slovenia has not concluded an agreement on equal treatment of national and foreign tenderers.

(2) Decisions taken pursuant to the preceding paragraph shall be for a fixed period.

(3) The Government shall communicate its decision to the EU Commission without delay.

Article 122

(Preference in the Award of Contracts)

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(1) Where two or more tenders are equivalent in the light of the award criteria defined in Articles 48, 49 and 50, contracting entity shall give preference to the tenders, which may not be rejected pursuant to Article 121 above. The prices of these tenders shall be considered equivalent if the price difference does not exceed 3%.

(2) However, a tender shall not be given preference pursuant to the preceding paragraph where its acceptance would oblige the contracting entity to acquire material having technical characteristics different from those of existing material, resulting in incompatibility or technical difficulties in operation and maintenance or disproportionate additional costs.

Article 123

(Archiving of Documentation)

(1) In the award of contracts in the water, energy, transport and telecommunications sectors, contracting entity shall provide and store documentation relating to:

1. the qualification and selection of a tenderer and the award of the contract,

2. the reasons why the contracting entity did not apply European standard technical specifications,

3. the use of a procedure without prior publication of a contract notice as set out in Article 111,

4. the award of a service contract, the use of technical specifications and standards and the selection of the award procedure, where they have not applied the provisions of this Act.

(2) Contracting entity shall store such documentation for at least four years from the date on which the contract was concluded. Information must be communicated upon a request from the competent bodies.

(3) Contracting entity doing business in the field of production, transport and distribution of drinking water or electricity, bus transport and other urban and railway transport, airport and seaport activities and terminals shall notify information to tenderers on request. Such notice may be oral, and shall be in writing only on special request.

(4) Contracting entity referred to in the preceding paragraph shall, promptly after the date on which a written request is received, inform any rejected candidate of the reasons for the rejection of his tender and of the advantages of the tender selected as well as the name of the successful tenderer.

3.5. Procedure for the Award of Low-value Contracts

Article 124

(Definition of Low Value)

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(1) The procedure for the award of low-value contracts shall be a procedure in award of contracts the estimated value of which is less than the value defined in the regulation on the implementation of the budget of the Republic of Slovenia.

(2) Every two years, upon preparing the proposed draft Act on the implementation of the budget of the Republic of Slovenia, the Government shall determine the threshold which contracting entity shall carry out the procedures prescribed by this Act.

Article 125

(Preparation of an Internal Regulation)

(1) For the award of low-value contracts contracting entity shall lay down an award procedure in an internal regulation, taking account of the provisions of this Act.

(2) In their internal regulation, contracting entity shall define in particular:

1. the method of execution of the contract with regard to the estimated value, technical and technological requirements and the financial consequences of the contract,

2. the method of drawing up the contract and supporting documents,

3. the persons responsible for collecting tenders by telephone, telefax, etc., and in particular the method of verifying the tendered price,

4. the method of documenting the tenders and archiving the documents,

5. the method of executing the concluded contract and supervision over the execution of contracts concluded pursuant to the provisions laid down in this chapter, in particular within the guarantee period,

6. the method of using order forms and other previously prepared model documents in these procedures, where contracting entity have to prescribe a threshold allowing the previously prepared document to be used for each contract awarded.

(3) Contracting entity shall specify the manner of proving the fulfilment of minimum conditions for tenderers in accordance with the provisions of this Act.

Article 126

(Records on Awarded Contracts)

Contracting entity shall keep separate records of contracts awarded by low-value procedures for the award of supplies, works or services contracts and for the award of such contracts in the water, energy, transport and telecommunications sectors.

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4. STATISTICS

4.1. Keeping Statistics on Public Contracts

Article 127

(Time limit to Communicate Information)

(1) Contracting entity shall collect and keep certain information relating to awarded contracts in accordance with this Act, and in so doing it shall keep separate information for the award of supply, service and works contracts and for the award of contracts in the water, energy, transport and telecommunications sectors.

(2) Contracting entity shall communicate to the Public Procurement Office, by April 30 at the latest, a report on contracts concluded in the previous year.

(3) Public Procurement Office shall prepare an overall report and send it to the Government by 30 July at the latest.

Article 128

(Types of Data)

(1) The report on public contracts awarded shall contain the following information, if the contracting entity is a direct budget user:

1. the estimated total value of concluded contracts,

2. the number and value of awarded contracts and the procedures under which contracts were awarded, the type of supplies, works or services, the name of the contracting party and the registered office address of the contracting party. Where a contract was awarded by negotiated procedure it shall be necessary to state the basis referred to in Article 19, and the number and value of contracts awarded with contracting parties established in the Republic of Slovenia or in other countries.

(2) If contracting entity is not a direct budget user, it shall provide only information indicated under item 2 above.

(3) Contracting entity shall report separately the information on contracts concluded in excess of the value laid down in Article 125 and the values in excess of which a contract notice must be published in the Official Journal of the European Communities.

(4) In the award of contracts under Article 93(1), items 2 and 4, statistics need not be kept where the value of the contract does not exceed EURO 200,000.

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(5) Minister of finance may determine that other information shall also be provided. Minister of finance draws up a standard form used to submit such information.

5. PUBLIC PROCUREMENT OFFICE

Article 129

(Public Procurement Office)

(1) Public Procurement Office is the Government of the Republic of Slovenia Office responsible for such a development of public procurement system, which ensures rationality, efficiency, and transparency of the use of public finance in awarding public contracts and encourages competition and equality of tenderers in the contract award procedures.

(2) Public Procurement Office shall perform the following tasks. It shall:

1. participate in the preparation of rules in the field of public procurement;

2. provide consulting services to contracting entity, tenderers and to both receivers and granters of concession on issues concerning public procurement and concession granting;

3. promote and be responsible for training in the field of public procurement;

4. cooperate with foreign institutions and experts in the field of public procurement;

5. be responsible for the publication and the availability of technical publications;

6. be responsible for model contract and supporting documents for the typical sorts of

contracts;

7. be responsible for the availability of information on public procurement in other states;

8. be responsible for a systematic collection of basic statistical data at contracting entities and maintain bases of important public procurement data;

9. be responsible for the preparation and participate in setting professional criteria for assessing individual types of expenses at public finance beneficiaries;

10. be responsible for the preparation of uniform bases for establishing records of suppliers. Providers or contractors and their financial standing based on data concerning the contracts assumed and implemented;

11. annually submit to the Government the analysis of public procurement situation in the previous year with proposals for its improvement;

12. monitor public procurement tenders and be responsible for the procedure of granting

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concessions;

13. cooperate with other state bodies and local government bodies;

14. monitor the implementation of the provisions of this Act and the relevant implementing regulations;

15. notify the National Review Commission on infringements of contracting entities in implementing the public procurement rules;

(3) Public Procurement Office shall perform the tasks provided for by this Act in cooperation with ministries and government offices, bodies responsible for the supervision of public finance, and with professional and research institutions, or experts in individual fields;

(4) Public Procurement Office shall be headed by a Director who is appointed and dismissed by the Government on the proposal of its Secretary General. Director of Public Procurement Office shall report on the operation of the Office to Government Secretary General. Director of the Office shall have a Deputy who occasionally or permanently supplements the Director in his/her individual rights and duties. Deputy Director shall be appointed by the Government on the proposal of Director of Public Procurement Office.

6. VOIDNESS OF CONTRACTS

Article 130

The following contracts shall be deemed as null and void:

- awarded contrary to awarding procedures and conduct prescribed by this Act, which contracting entity broke up into several minor parts in order to avoid the award of contract pursuant to this Act,

- awarded in order to settle claims and liabilities without carrying out the contract award procedure,

- awarded under other provisions than those prescribed by this Act, or awarded to a tenderer which was not selected as the most favourable,

- awarded by a third person authorised by contracting entities, or by a person that is not a contracting entity under this Act, in order to avoid the application of this Act,

- amendments of the contract contrary to Articles 84, 89 and 97 of this Act,

- awarded contrary to the decision of the National Review Commission,

- not awarded by the award procedure which the contracting entity should have carried out

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under the provisions of this Act.

7. PENAL PROVISIONS

Article 131

(Infringements)

(1) A fine between SIT 100,000 and SIT 1,000,000 shall be imposed on a contracting entity within the meaning of b), c), è) and d) of item 1, Article 3, or a concessionaire for committing the infringement of:

1. awarding a contract without a call for competition, other than in cases permitted by the law, or awarding a contract by a procedure not laid down in the law(Article 2, Articles 18 to 20, Articles 84, 85, 89, 90, and Articles 96 to 98, and Article 111),

2. commencing an award procedure before the relevant conditions have been fulfilled (Articles 15 and 16),

3. adapting the subject of the contract, the tender conditions, the technical specifications or other elements of the call for competition to a specific tenderer or awarding the contract to a tenderer who participated in the drawing up of some or all of the contract and supporting documents (Article 5, Articles 31 to 54),

4. awarding a contract contrary to the principle of equality (Article 7),

5. publishing certain information relating to the contents of a contract notice before the publication of the notice (Articles 5 and 65),

6. failing to protect the information stated in a tender in accordance with the relevant degree of confidentiality (Articles 8 to 10, and Article 79),

7. failing to keep and store documentation relating to a public contract (Article 11),

8. failing to provide information to the Public Procurement Office on rejected tenders due to attempts to offer bribe (Article 14)

9. failing to provide the contract documents to all those who requested them in accordance with the contract notice (Articles 24 and 25),

10. failing to respect the time limits for publication of the notice and receipt of tenders (Articles 55 to 64),

11. failing to publish the contract notice or the result of the award of a contract in the Official Journal of the European Communities, or publishing the contract notice in other media prior to its publication in the Official Journal of the European Communities, where the amount of the contract exceeds the amount requiring such publication, or not publishing at least the information which it must publish in accordance with regulations (Article 65),

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12. failing to respect the valid technical norms, standards and other technical regulations in drawing up the tender documents (Articles 31 to 40),

13. setting up conditions and criteria not in conformity with this Act or changing the conditions and criteria after the publication of the contract notice without informing tenderers of this (Article 25, Articles 41 to 54),

14. failing to provide information on the carried out public procurement procedures to the Public Procurement Office (Article 128),

15. failing to carry out a resolution of the National Review Commission.

16. failing to provide the interested tenderers to submit a request for review (Article 79),

17. failing to provide the review experts to perform their tasks pursuant to the provisions of the Review of Public Procurement Procedures Act.

(2) A fine of SIT 300,000 shall be imposed on the responsible person of a contracting entity referred to in the previous paragraph, and the responsible person of the contracting entity referred to in Article 3, item 1a of this Act for infringements stated in paragraph 1 above,

(3) A fine of SIT 1,000,000 shall be imposed on the concessionaire for acting contrary to the provisions of Article 133(3) and (7) of this Act,

(4) A fine of SIT 300,000 shall be imposed on the responsible person of the concessionaire for infringements stated in the previous paragraph.

8. TRANSITIONAL AND FINAL PROVISIONS

Article 132

(1) On the day this Act comes into force, the Public Procurement Act (Official Gazette of the Republic of Slovenia, Nos. 24/97 and 78/99) and the regulations issued on the basis thereof shall cease to be valid.

(2) Until the issue of executive acts the following shall remain in force unless they collide with this Act:

- the decree on the uniform methodology for the elaboration of investment type of public procurement programmes (Official Gazette of the Republic of Slovenia, Nos. 82/98, 86/98, 43/99, and 79/99),

- the order on the compulsory content of tender documents and tenders (Official Gazette of the Republic of Slovenia, Nos. 33/96, 63/97 and 84/99),

- instructions on the contents of public procurement publication in the Official Gazette of the Republic of Slovenia (Official Gazette of the Republic of Slovenia, No 60/98),

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- instructions on the types of financial insurance with which tenderers insure the fulfilment of their obligations in public procurement procedures (Official Gazette of the Republic of Slovenia, No 73/97, 84/99).

(3) Where public tenders were published before the effective date of this Act, the procedures to award public procurement contracts shall be carried out in accordance with the rules applicable to date.

Award of Concessions

Article 133

(1) The concession granter who is responsible to carry out the concession award procedure shall apply, mutatis mutandis, the provisions of Articles 65 to 71 until the enforcement of a special Act which will regulate in detail the award of concessions, unless this is contrary to the Act which allows the granting of concession. The notice shall state explicitly that the publication refers to the award of concession.

(2) With regard to affiliated undertakings, the rules of Article 3(1), item 1 of this Act shall apply in concession award procedures. A comprehensive list of these undertakings and other commercial entities shall be enclosed with the candidature for the concession. The list shall be updated following any subsequent changes.

(3) Notwithstanding the provisions of the rule governing the award of concession, the works contracts awarded by a concessionaire to a third party are subject to the provisions on the publication of the award of contract pursuant to Article 65 to 71 of this Act, and the provisions regulating the award of works contracts under subparagraph 3.2. of this Act.

(4) In the award of the works contracts, the concession granter may request that the concessionaire awards at least 30% of concession works to third parties who are qualified tenderers. The contract precisely shall state the percentage required. In this case, the concession granter shall submit a list of candidates to the concessionaire. The former may also request that candidates for award of concessions state in their tender the percentage of works they intend to subcontract to third parties.

(5) Commercial undertakings and other tenderers which have formed a joint undertaking in order to obtain a concession contract, or other undertakings or individuals affiliated to them, shall not be regarded as third parties.

(6) For the award of a concession contract, contracting entity shall fix a time limit for the receipt of candidatures for the concession, which may not be less than 52 days from the date of dispatch of the notice of the award of the concession to the Official Gazette.

(7) In works contracts awarded by a concessionaire other than a contracting entity, the time limit for receipt of requests to participate shall not be less than 37 days from the date of dispatch of the notice to the Official Gazette, and the time limit for receipt of tenders shall not be less than 40 days from the date of dispatch of the notice or the invitation to tender.

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(8) The provisions laid down in this Act relating to reduced time limits for the receipt of tenders shall not apply to concession contracts.

(9) Provisions of the Public Procurement Review Act shall apply in the concession award procedures in order to ensure legal protection.

(10) Provisions of this Article shall apply until the enforcement of the Act, which will govern concessions.

Article 134

(1) Minister of finance shall draw up the executive acts stated in Articles 23, 42, 55, 65 and 74 above not later than thirty days after the enforcement of this Act.

(2) Contracting entity shall adopt the regulation stated in Article 126 within two months following the enforcement of this Act. Until then, contracting entity shall award low-value contracts in accordance with the provisions of this Act regardless of the estimated value. Ministries, local communities and other contracting entity controlling other minor contracting entity may prepare a uniform regulation for minor contracting entities for the award of low-value contracts. The budget inspector, the municipal supervisory council, the supervisory board of a public utility, a public fund or a public institution may ask that the controlled contracting entity awards a contract without prejudice to Article 126 above, if they consider that the award of low-value contracts can not achieve economy in handling public assets.

(3) Based on Article 92 of this Act, the Chamber of Commerce and Industry of Slovenia and the Chamber of Small Business of Slovenia shall draw up a list of interested contractors not later than one year after the enforcement of this Act.

Article 135

The Government of the Republic of Slovenia shall adopt an ordinance on the establishment of the Public procurement Office stated in Article 129 of this Act not later than one year after the enforcement of this Act.

Article 136

(1) Provisions of this Act which are binding on the contracting entity, the Republic of Slovenia or its bodies to communicate certain data to the competent bodies of the European Communities, and the provisions related to the obligation of publishing in the Official Journal of the European Communities shall begin to apply on the day of accession of the Republic of Slovenia to the European Union.

(2) Provisions of chapter 2.5 - General rules concerning the definition of technical elements in public procurement - shall apply gradually, following the adoption of technical specifications, technical norms, certificates and standards in the Republic of Slovenia.

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Article 137

(Act Enforcement)

This Act shall enter into force six months following its publication in the Official Gazette of the Republic of Slovenia.

No. 411-01/94-35/26

Ljubljana, 25 April 2000.

President

of the National Assembly

of the Republic of Slovenia

Janez Podobnik, Dr. Med., s.

Annexes to the Public Procurement Act

Annex I A - Services

Category Number

Subject

1. maintenance and repair services

2. land transport services (except the railway transport services which belong to category 18) including armoured cars and courier services, other than postal transport

3. air transport services for passengers and cargo, other than postal transport

4. transport of post by land and air (except the railway transport services which belong to category 18)

5. telecommunications services, except the services of voice telephony, radio telephony, paging and satellite services

6. financial services

(a) insurance services

(b) banking and investment services, except the procurement of financial services related to the issuing, sale, purchase or transfer, of securities or

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Annex I B

other financial instruments and services of the Bank of Slovenia

7. computer and related equipment

8. research and development services, except the procurement of R&D services, when the research results are not used exclusively by contracting entity for their own purposes and provided that such services are entirely paid by contracting entity

9. accounting, auditing and bookkeeping services

10. services in the field of market research and public opinion

11. management consulting, except arbitration, conciliation and related services

12. architectural services; construction services and mixed construction services; urban planning services and landscape architecture services of technical testing and analysis

13. advertising services

14. building cleaning services and real estate management services

15. publishing and printing services on part-time or contractual basis

16. sewage and waste removal services, sanitary services and similar

Category Number Subject

17. hotel and restaurant services

18. rail transport services

19. transportation services by water

20. support and auxiliary transport services

21. legal services

22. recruitment services

23. investigative and security services, other than armoured car protection services

24. educational services and vocational training services

25. health and social services

26. services in the field of recreation, culture and sport

27. other services

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Annex II - Construction Works

Class

Group Subgroup and item

Description

50

BUILDINGS AND CIVIL ENGINEERING

500

General works in the field of buildings and civil engineering (without special specifications) and demolition

500.1

General works in the field of building and civil engineering (without special specifications)

500.2

Demolition

501

Construction of buildings and parts of buildings

501.1

General construction works

501.2

Roofing works

501.3

Building of chimneys, ovens and fireplaces

501.4

Protection against water and damp

501.5

Renovation and maintenance of external walls (refilling contacts between bricks and mortar, cleaning, etc.)

501.6

Erecting and dismantling scaffolding

Other specialised activities connected with construction works (including carpentry)

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501.7

502

Civil engineering: building roads, bridges, railways, etc.

502.1

General works in the field of civil engineering

502.2

Earth removal

502.3

Building of bridges, tunnels and shafts, drilling

502.4

Hydraulic engineering (rivers, canals, harbours, inflows, narrow bays and dams)

502.5

Construction of roads, rails, airports and sports facilities

502.6

Specialised construction works connected with water (irrigation, drainage, water supply, removal of waste water, sewage systems, etc.)

502.7

Other construction works, including specialised activities in other fields of civil engineering

503

Installations

503.1

General industrial works

503.2

Gas and water supply installations and installation of sanitary equipment

503.3

Installation of heating and ventilation appliances (central heating, air conditioning appliances, ventilation)

503.4

Insulation works

503.5

Electric installations

Installation of antennas, lightning conductors, telephones,

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503.6 etc.

504

Finishing works

504.1

General finishing works

504.2

Stucco work

504.3

Interior woodwork, primarily after assembly and/or installation (including laying parquet)

504.4

Painting, glazing and applying wall coverings

504.5

Laying tiles and other floor and wall coverings

504.6

Other finishing works (installation of fireplaces, etc.)

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