T RAINING ON BASIC PRAG PROCEDURES FOR L INE M INISTRIES AND A - - PowerPoint PPT Presentation

TRAINING ON

BASIC PRAG PROCEDURES FOR LINE

MINISTRIES AND AGENCIES

Roberto Carpano - Monrovia, 19 – 23/11 2018

Cassetta attrezzi2.j

Table of contents

A. The framework of the course B. Results to be achieved by the end of the training C. Participant’s presentation D. Your personal experiences in Procurement and management procedures E. Procurement within PCM F. What is PRAG? G. PRAG Procurement principles H. Focus on PRAG on: Procurement for Services, Supply and Works I. The three management modes J. The time lime for services K. The three management modes: details L. Steps in management mode M. Award of the contracts N. Modification of contracts O. Contract Management P. What did you learn and what will you do tomorrow morning once back to your office? Q. Evaluation.

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• A. The frame

mework of the course: where are we and who who do does wha es what? t? B.

• B. R

Res esults t to b

• be a

e ach chieved ed b by t y the en e end of t

• f the t

e training: “participants will have enhanced their knowledge and skills on EDF procurement and management procedures, contributing to better management and value for money of EU funding in Liberia in the future” C.

• C. P

ParWci cipant’s p pres esen entaWon

• n b

by t y the t e three a ee area eas of

• f

procureme ments: services, supplies and works

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D.

• D. Your personal experiences in Procureme

ment an and ma manageme ment procedures

Procurement is the selecWon process to buy goods, services, works and grant.

• Which are the key documents, you apply for Procurement?
• At what level are you involved in Procurement?
• Which are the physical outputs produced by your work with

reference to Procurement

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

difficulWes and how you managed it

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• E. Procureme

ment in the Proje ject Cycle Manageme ment (PCM) (PCM)

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Immagine del PCM

F.

• F. What is PRAG? (1)

This practical guide explains both procurement and grant award procedures applying to EU external actions financed from the general budget of the Union and the European Development Fund (the EDF). It is used by the Commission services responsible for the management of projects and programmes financed under the external financing instruments and the EDF in the context of the Cotonou Agreement. http://ec.europa.eu/europeaid/prag/document.do? nodeNumber=1.1

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• G. PRAG Procurement principles (see 2.5.1 PRAG)
• Transparency. This obligation consists in ensuring, for the benefit of any potential tenderer, a degree of

advertising sufficient to enable the market to be opened up to competition and the impartiality of procurement procedures to be reviewed Equal treatment and non-discrimination. Meaning that all tenderers must be afforded equal opportunities when formulating their tenders, which therefore implies that the tenders of all competitors must be subject to the same conditions37.

• Competition. The estimated value of a contract may not be established in such a way as to avoid the

competitive tendering procedure or to circumvent the rules which apply to certain procurement procedures or above a certain threshold, nor may a contract be split for that purpose (a practice known as 'salami-slicing’)

• Proportionality. Measures adopted by the European Commission do not exceed the limits of what is

appropriate and necessary in order to attain the objectives pursued and that where there is a choice between several appropriate measures recourse must be had to the least onerous41. Sound Financial Management. Budget appropriations must be used in accordance with the principles of economy, efficiency and effectiveness.

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• H. Focus on PRAG on: Procurement for Services, Supply and

Works (not Grant) Make and example for a Services, Supply and Works projects

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1.

• 1. I. The three Manageme

ment Modes

2.2.1. Direct management The European Commission is in charge of all EU budget implementation tasks, which are performed directly by its departments either at headquarters or in the EU delegations or through EU executive agencies2 2.2.2. Indirect management Under indirect management the European Commission entrusts budget implementation to3:

• third countries (or to bodies designated by them);
• international organisations and their specialized agencies;
• bodies set up under the TFEU and the Euratom Treaty
• development agencies of EU Member States, or of third countries;
• public law bodies, including Member States organisations.

2.2.3. Shared management The European Commission delegates implementation tasks to the EU Member States9 Where are you? Long Term TA to the Office of NAO

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• L. The time line: from prior information to contract award

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1.

• 1. M. The three Manageme

ment Modes

2.2.2. Indirect management INDIRECT MANAGEMENT WITH EX-ANTE CONTROLS: Before the procedure is launched, the contracting authority must submit the documents (tender dossier, including relevant notices, or call for proposal file) to the European Commission for approval. (A.1.1.e) INDIRECT MANAGEMENT WITH EX-POST CONTROLS: The contracting authority draws up shortlists (restricted procedures) and is responsible for issuing invitations to tender, receiving tenders, chairing the evaluation committees, deciding on the results of the procedures and signing the contracts without the prior authorisation of the European Commission. The EC endorses the final award.

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• 1. N. Steps in Management Modes

Understand the steps:

• 1. Prior information notice
• 2. Contract notice
• 3. Contract modification notice
• 4. Cancellation notice
• 5. Shortlist notice
• 6. Tender dossier, technical specifications and any other

annexes to the tender dossier (plans, etc.) (for supplies and works only Supplies, Works

• 7. Award

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• N1. Prior Information notice

Example of Prior Information notice already published? “Long Term Technical Assistance for the implementation of the Voluntary Partnership Agreement (VPA) in Liberia”. (2) Which are the crucial issues ? Fill three Prior information notices (contract description) related to a services, supply and works notice in your pipeline by using the (3.a5d) format, how to identify the “contract value”

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• N2. Contract notice

Example of Contract notice already published? “Long Term Technical Assistance for the implementation of the Voluntary Partnership Agreement (VPA) in Liberia”. (4) Understand rules related to “Conditions of participation”: Eligibility, Candidature, Shortlist alliance” Fill three (services, supply and works) Contract notices limited to “Conditions of participation” and “Selection and award criteria”.

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• N3. Contract modification notice
• N4. Cancellation notice

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• N5. Shortlist notice (see 3.4.2)

Candidates that presented the EoI according to Annex 4.1 are shortlisted by the evaluation committee. The selection procedure involves:

• drawing up a long list (see template in Annex 5.B4 ) summarising all the applications received;
• eliminating applications that are inadmissible due to being submitted by ineligible candidates (see

Section 2.3) or by candidates falling into one of the situations described in Sections 2.6.10.1. on the basis of their declaration of honour;

• applying the selection criteria exactly as published.
• After examining the responses to the contract notice, the evaluation committee shortlists the

service providers offering the best guarantee of satisfactory performance of the contract.

• The shortlist comprises between four and eight candidates.
• If the number of eligible candidates meeting the selection criteria is greater than eight, the

additional criteria published in the contract notice are applied in order to reduce the number to the eight best candidates. For further details, please see Section 2.6.11 (Selection criteria).

• See examples of Shortlist notice (6)

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• N5. Shortlist notice (see 3.4.2)

Once the Contracting Authority received the Expressions of Interest (EoI – Annex 4.1), draw a short list by applying the 5.b4 format

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N6.1 Drafting and content of the Tender Dossier (see 2.8)

These documents must contain all the provisions and information that candidates need to submit a tender: the procedures to follow, the documents to provide, cases

• f non-compliance, award criteria and their weightings, etc.

They specify what is required of the service, supply or work to be purchased and the minimum requirements whose non-compliance entails the rejection of the tender. Preparing the tender dossier - particularly the technical specifications/terms of reference - may require the assistance of one or more external technical specialist(s).

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N 6.2 Drafting and content of the Tender Dossier (see 2.8)

For fee-based service contracts, the sections in the terms of reference include the allocated budget headings. For global price service contracts, the terms of reference should clearly indicate output(s)

• expected. The contractor must provide a given product.

Tender dossier is composed of:

• A. Instructions to tenderers (8.b8b)
• B. Draft contract agreement and special conditions with annexes (9.b8c and 10.b8d)
• C. ToRs (11.b8e format and 12 for a real example) (format for expert grid 12.b8h)
• D. Organisation and Methodology format (12.1 b8g) < TO BE FILLED BY THE CANDIDATE.
• E. Budget Model (12.2 b81.2)

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N6.3 Drafting and content of the Tender Dossier (see 2.8)

Following the ToRs format (11.b8e), draft chapters 2.1, 2.2, 2.3. of the ToRs for a project to be jointly identified. Detailed info will be provided on the contents of the Logical Framework. This is an example of ToRs already

• prepared. (12)

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• N7. Evaluation grid (see 2.8)

(13. B8L) Administrative compliance grid (14.B8m1) Evaluation grid fees

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• O. Award of the contracts (2.9)

Tenders are opened and evaluated by an evaluation committee formally and promptly appointed by the contracting authority comprising a non-voting chairperson, a non-voting secretary and an odd number of voting members (the evaluators)85. There must be a minimum of three evaluators for all procedures except for calls for tenders for works above EUR 5 000 000, which require a minimum

• f five of them.

All members of the evaluation committee and any observers must sign a Declaration of Impartiality and Confidentiality

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• P. Modification of contracts (2.11)

When it is allowed to modify the contract

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• P1. Modification of contracts (2.11)

Principles: No changes to the contract may alter the award conditions prevailing at the time the contract was awarded. Major changes, such as a fundamental change to the terms of reference or to the technical specifications, cannot be made by means of an addendum or an administrative order A contract, can be modified by means of simple addendum, with no need to undertake a negotiated procedure.

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• Q. Contract Management
• 1. Which are your experiences in contract management?
• 2. Obligations of the Contractor

2.1 Reach the expected results as described in Annex 1 2.2 Carried out the activities 2.3 Disburse the budget following contractual procedures 2.4 Regular reporting.

• 3. “Symptoms” of un-performing project management

3.1 Late reporting and low reporting quality 3.2 Poor spending capacity: high spending capacity for HR, and low spending capacity for project activities (14) (15) 3.3 Relevant number of contract addendum 3.4 Limited communication with the Contracting Authority. Long Term TA to the Office of NAO

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• R. What did you learn and what will you do tomorrow morning
• nce back to the office?
• S. Evaluation

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And now ...

Thank for your time and attention Roberto.Carpano@europabook.eu

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