Effective Negotiation Framework in European Commission Projects

1. Negotiation of Proposals Dr. Evangelos OuzounisDirectorate CDG Information SocietyEuropean Commission

2. Framework for negotiation • is sent – together with invitation for negotiation • is based on • Evaluation Summary Report • Evaluation Report / Implementation Plan - strategic considerations • specifies and includes • required changes arising from the evaluation process • indicative budget and funding/ max. Community contribution • timeframe for negotiation • duration of the project

3. Scope of negotiations • Negotiation covers reaching an agreement on scientific, legal and financial aspects • scientific = - workplan, including objectives & milestones, deliverables - clustering - European Research Area - ... • legal = - contract options - eligibility issues - special clauses • financial = - costs/budget; lfv checking - pre-financing - timing of audit certificates • the collection/verification of administrative/ financial information and clarifying contractual issues

4. Scope of technical negotiations • adapt initial proposal to the recommendations of the evaluation. • finalise the workplan of the project. • for NoE/IP: detailed the workplan for the first 18 months; outline plan for the complete duration of the project • for the other instruments: detailed work plan for the complete duration of the project. • define in detail the work to be carried out by each of the participants. • agree on the list of deliverables (timing, content, efforts). • agree on the milestones, establish reporting periods and the assessment criteria for measuring results and progress against milestones.

5. Scope of financial/legal/admin negotiation • determine the total costs, the total eligible costs, EC Community financial contribution. • establish the pre-financing. • confirm the management capacity of co-ordinator. • remind the consortium of the consortium agreement. • establish the time period by which the accession process needs to be completed. • establish the timing for the required ‘reports’ and “audit certificates”. • identify any special clauses that need to be inserted. • assess the financial viability of the co-ordinator and any other contractor, if necessary. • collect and review the legal status of each contractor.

6. Negotiation conditions • Negotiations should be conducted in respect of the proposal that is submitted • Negotiations should be completed within the given timeframe • Good housekeeping demands (i) each negotiation step recorded properly (ii) clear and timely communication is ensured (iii) proper follow-up in respect of deadlines by the Commission (iv) management is informed of progress/difficulties encountered

7. Role of PO • Role of the Project Officer • single interface with proposers, may lead a negotiation team (leading PO must be statutory agent); • plans and conducts negotiations; • writes up ‘negotiation framework’ • ensures that proper records are kept; • ensures that negotiations are completed in time • In team: ensures appropriate involvement of supporting POs • Supporting POs: to agree to final Annex 1

8. Role of proposal co-ordinator • Proposal co-ordinator • leads negotiation on the proposers’ side; • ensures consortium is informed/in agreement with decisions taken; • ensures proper consortium representation at negotiations meeting(s). at contracting stage • ensures accession of other contractors within contractual timeframe; • will normally become project co-ordinator

9. Scheme of negotiation process invitation 1 draft CPFs/Annex 1 meeting record 6 5 4 3 2 Signature/accession Commission Consortium Agreement technical issues Clarification of how evaluation comments have been taken on board 1st Negotiation meeting Clarification of financial/adminis-trative rules 2nd Negotiation meeting (if necessary) Validation of legal entities + financial checks final signed! CPFs/Annex 1 contract offer

10. Scheme of Negotiation & Selection Decision Specific Commitment Draft Implementation Plan Invitation for negotiation GIR / ISTC Negotiation meeting (s) Final Implementation Plan Additional invitations for negotiation ? Consultation ISTC + Commission Selection Decision Negotiation end Batches Contract signature

11. Internal Procedure • CPFs & Support Documents • Other Contractual Conditions • Description of Work (Annex 1) NEGOTIATIONS NegotiationReport Dossier Director approval ISTC opinion Commission Decision Financial Commitment Payment of Pre-financing Contract signature

12. Background documents • Negotiation Guidance Notes for co-ordinators of <instrument>, including Contract Preparation Forms • Financial Guidelines for Indirect Actions of FP 6 • Model contract and its annexes • Consortium Agreement checklist • Framework Programme Decision, Specific Programme Decision, Rules for Participation