Title: Legislation
Path: /ppwww/en/ppPolicy.html
Printed on: 07 January 2009 - 02:57:34
by: Anonymous
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Paragraph ID: 01 What is public procurement? Origin path: .html What is public procurement?Public procurement is the process of using public funds by certain public body, for the purpose of acquiring external resources, generally from commercial bidders. In order to regulate this process, as the part of public sector reform and in relation to our future EU membership, Macedonia has adopted a modern public procurement law, published in the Official Gazette of the Republic of Macedonia, 19/2004, as well as modifications and amendments of the Law on Public Procurement, published in the Official Gazette of the Republic of Macedonia, 109/2005. The public procurement law regulates all main aspects of government and public bodies purchasing activities and provides them with the tools to be able to achieve “value for money” when procuring goods, services and works. It defines the main methods of public procurement, and steps to be used when applying them. The public procurement law is supported by a set of related secondary legislation (published in Official Gazette of the Republic of Macedonia), defining the phases of the procurement process in more detailed way; the methodology on evaluating qualitative criteria, the procurement plan, the procurement registry, public bid opening, solvency documents, the appointment of experts, the estimating the value of procurement, the compulsory elements of tender documentation, low value procurement, and standard forms that shall be used. All these documents, plus important supporting materials, like the Model Agreement Contract, information about decisions of the Complaint Committee and Standard Tender Documentation can be downloaded from the Public Procurement Bureau web page. | |
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Paragraph ID: 02 Guiding Principles for Procurement Origin path: .html Guiding Principles for ProcurementAccording to the legal and administrative framework for public procurement in line with the general EU legislation as well as the national regulations in Macedonia, these principles should always guide procurement decisions: The principle of non-discrimination, according to which the procurer must not discriminate in terms of citizenship of bidder or in terms of country of origin of goods. The principle of equal treatment is very closely related to non-discrimination, and more specifically it determines that all suppliers must be treated equally; they all must be given the same information at the same time and must be dealt with fairly, honestly and impartially, for the purpose of avoiding conflicts of interest and corruption. The principle of transparency, according to which, the principles of predictability and openness must characterize the procurement process, by practising transparency of rules, opportunities, processes, records and outcomes. The objective of these principles is to increase efficiency and fairness, for the purpose of obtaining best value for limited public funds, controlling the costs of the procurement process for the administration and the bidders. Other important principles are the impartiality of public procurement officers, as well as their accountability in terms of their decisions and actions; keeping strict confidentiality about printed information, bidders whose disclosure would impede on the right of the tenderers to protect its intellectual property rights or its commercial secrets. | |
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Paragraph ID: 0 1. The planning phase Origin path: .html 1. The planning phaseIt has to be stated right away, that the planning process is crucial for the success of the tender. The better a procurement is planned, the easier and more efficient the entire process will be. The planning phase focuses on the following main steps: Defining and analysing the need: the evaluation of any public expenditure is one of crucial tools of modern public financial management, and it normally is a legal procedure in the aspect of internal financial audit. Questions related to the need for certain equipment, its significance compared to its cost, most appropriate solution to the needs, etc., are to be answered in this phase. On this basis, the public procurement planning and strategy shall be developed. Securing financial means is a precondition in the public procurement process in Macedonia. Only if funds have been planned and secured, can the procurement process be started. The procuring entity shall submit the developed annual public procurement plan is to the Public Procurement Bureau. The plan might be published also on the procurer's web page to encourage more competition. Indicative notices for main purchases should be published, too. The format of a public procurement plan is prescribed by secondary legislation. | |
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Paragraph ID: 00 2. Decision on public procurement Origin path: .html 2. Decision on public procurementBefore taking any explicit action the procurer should realize some necessary steps required to start the public procurement process. The decision on public procurement should express what function, object or performance is required to be fulfilled by the purchase of the goods, services or works in question. This description shall be basis for developing more specific criteria. But it will also tell potential bidders whether or not the procurement contract is one that they could bid for. An estimation of the price of procurement has to be made, too, normally on the base of information obtained via a market survey. This is very important, as it serves as the basis for decision on procedure and its details. These steps serve as main inputs to decide on a public procurement procedure, to choose from existing procedures or to realize low value procurement (pursuant the Law they are procurements whose estimated value does not exceed 3000 EUR in denar counter value.) The most frequent decision will be the choice between open and restricted procedure. High quality tender documentation is also essential to achieve value for money. It is the basis to inform potential bidders about the needs and conditions to the tender, and shall be prepared in a way to allow bidders to tender. In order to assist procurers, standard tender documentation is available. | |
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Paragraph ID: 03 3. Invitation to tender Origin path: .html 3. Invitation to tenderThe primary objective for publishing a tender announcement is to maximize competition in procurement that will allow for improvement of their quality. The main rules should be followed: The announcement must be published in the Official Gazette of the Republic of Macedonia and on the Public Procurement Bureau's website. If the procuring entity considers it would improve competition, it may publish the announcement in a daily newspaper as well. In the case of an international tender the announcement has to be published in international media. The contents of announcement, deadlines and other aspects of inviting tenderers are prescribed by the law and the secondary legislation. The procuring entity shall submit tender documentation to all bidders who request it, within three days from making such request by the bidders. Information in the documentation must be identical to the information provided in the announcement. A fee for obtaining tender documentation can only cover the costs of the procuring entity for preparing it. Bidders may ask questions within given deadline. Answers to such questions must be sent to all bidders. If there are modifications or amendments to the tender documentation, the procuring entity must immediately deliver them to all bidders who have obtained the previous documents, and without any charge. If necessary, the deadlines for bid submission can be extended in case of such amendments. | |
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Paragraph ID: 04 4. Bid submission Origin path: .html 4. Bid submissionThe submission of a bid is an offer to supply goods, perform service or execute work to the procurer. The main principles of this phase are the following: The bidder should prepare a complete bid on the grounds of the original tender documentation. The tenderer must use the forms provided in the tender documentation and complete them without any modification. The bid must offer final bid price that cannot be changed later during the process of signing and executing of contract, except in specific cases provided by the law. Tenders may be submitted only by tenderers who requested tender documentation and paid any fee accordingly. Tenderers should submit the original tender in a sealed envelope. The envelope must be properly addressed and should contain all information relating to the announcement as well as number of bid, number and date of issue and a “Do not open” notice in the top left corner, preventing opening prior to set time and date for tender opening. A tender that arrives after the final deadline for tender submission is declared late and rejected. The procurer is responsible for proper storage of received bids. The procurer is authorised to exclude bidders if it has credible proof that the bidder has made an attempt to influence the further course of the public procurement procedure. | |
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Paragraph ID: 05 5. Bid opening Origin path: .html 5. Bid openingProcesses connected with opening of bids are one of important tools to achieve higher transparency of public procurement processes. Bid opening is public and commences on the place and at the time set in the announcement, but not later than one hour after the deadline for the submission of a bid. Representatives of bidders may but need not participate at the public bid opening process. The main principles of this phase are the following: Before the opening of the bid, the President of the Public Procurement Committee checks whether envelopes are damaged or opened and states the total number of received bids. The Committee checks if a sufficient number of bids have been submitted and will then commence to read the bids if at least two bidders have submitted a complete set of documents. When reading the bids, the name of the bidder, the bid price and currency, any possible discount, and any security restrictions must be read publicly. This public reading prevents later changes and manipulations. The Public Procurement Committee takes minutes of the bid opening meeting. The minutes must be signed by all members of the Procurement Committee and a copy of the minutes must be sent to all bidders who request so. | |
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Paragraph ID: 06 6. Evaluation and assessment of bids Origin path: .html 6. Evaluation and assessment of bidsThe evaluation and the assessment of bids is central to the public procurement process. Any conflict of interests must be prevented. The main steps when evaluating and assessing bids are: The criteria and method to select the most favourable bidder are those as announced already in tender documentation and procurer must not be changed during the process. Two criteria to rank bids can be used - lowest price only, or the economically most favourable bid. As a first step, the completeness and validity of the documents provided is checked, in accordance with the criteria listed in the tender documentation. The bidders who submitted incomplete and invalid documentation are excluded from the procedure, informed and their bids are not reviewed. After the evaluation, the committee shall assess the bids and prepare a proposal for selection of the most favourable bidder, if there are at least two acceptable bids received. The decision on the selection of the most favourable bid is submitted by the Public Procurement Committee to the responsible person at the procuring entity. After approval this decision is delivered to all bidders. The procuring entity, immediately after selecting the most favourable bidder, informs each rejected bidder or candidate of the grounds for non-selection of its bid, as well as about the most favourable bid. | |
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Paragraph ID: 07 7. Conclusion of contract Origin path: .html 7. Conclusion of contractConclusion of contract should be simple continuation of the previous phases of procurement. Firstly budget users and spending units must send the Request for obtaining confirmation for provided financial resources and approval for conclusion of the contract to the Ministry of Finance. The information about the final result of tender is provided by sending written notice to the most favourable bidder, notices to other bidders and publishing notice in media that printed invitation. Final contract with selected bidder shall be signed within seven days after the deadline for complaints expires. All performed procedures are recorded in the Public Procurement Registry. Proper contract management is important precondition of successful procurement. A contracting authority should appoint a person to monitor contract implementation. This person shall be responsible for managing the relationship with the contractor including matters like contract amendments and variations, monitoring of delivery, ensuring payments, dealing with any disputes. At the completion of the Contract this person would be responsible for seeing that all things necessary had been completed. The audit of the way of realizing procurement and of its outcomes is realized on the base of existing legislation on control and audit by internal and external bodies. | |
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Paragraph ID: 08 Procurement procedures Origin path: .html Procurement proceduresProcurement covers purchase of goods, services and works. From the point of view of procedure the following types of public procurement procedures are being used: Open invitation for bids, restricted invitation for bids, a negotiated procedure, a design contest or a restricted invitation for consultant services. Procurement of services and works: services are characterized by several important specific features; almost each service has its unique character. Because of this, the procurement of services shall focus more on quality guarantees and not so much on lowest price. Works have complex character and need experienced procurement officials. Normally the first step is acquiring the project. The contract management and execution for works is a long-lasting and complex process. Procurement by restricted invitation: the specific feature of restricted invitation is “pre-qualification”. During this phase the contracting authority selects qualified candidates on the basis of the previously announced criteria. Next steps are almost the same as in an open invitation. Procurement by negotiated procedure: the procurement by negotiated procedure is an exceptional procedure which can be applied only in limited cases, defined by law, and after prior consent by the Public Procurement Bureau that certifies for the formal fulfilment of conditions for its application. Procurement by design contest and restricted invitation for consultant services: the design contest procedure is carried out in cases of the procurement of a project or plan in the field of spatial and urban planning, architecture, civil engineering and data processing. Restricted invitation for consultant services refers to procurement of intellectual services. |