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German Government Procurement Regulations & Practice

German Government Procurement Regulations & Practice. Symposium on Government Procurement Regulations & Practice Taipei World Trade Center; 2011/May/5. German Government Procurement Regulations & Practice. German Ministry of Economics and Technology National & intern. Economic policies

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German Government Procurement Regulations & Practice

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  1. German Government Procurement Regulations & Practice Symposium on Government Procurement Regulations & Practice Taipei World Trade Center; 2011/May/5 Hans-Peter Müller

  2. German Government Procurement Regulations & Practice • German Ministry of Economics and Technology • National & intern. Economic policies • - Technology • EU-matters • Foreign Trade • Energy policies • Industrial policies • - SME – policies Hans-Peter Müller

  3. German Government Procurement Regulations & Practice German Ministry of Economics and Technology - Market & competition regulations - Public Procurement Regulations - elaborating implementing/put in force regulations via constitutional/ parliamentary process - Transferring EU-regulations (directives) into german law Hans-Peter Müller

  4. German Government Procurement Regulations & Practice Procurement Market background Estimated annual volume of public procurement including goods, services & works: EU - level: about 1.500 billions €/annum National level: about 250 billions €/annum Hans-Peter Müller

  5. German Government Procurement Regulations & Practice Procurement Market background About 30.000 contracting authorities perform about 2.4 Million procurement procedures per annum Hans-Peter Müller

  6. German Government Procurement Regulations & Practice German public procurement legal system Above the thresholds (competition law): WTO/GPA GWB (competition law) VgV/SektVO (Ordinances) Below the thresholds (Budget law): Procedural regulations Hans-Peter Müller

  7. German Government Procurement Regulations & Practice German public procurement legal system The thresholds: Construction services/works: 4.845.000 Euros Goods/services: 193.000 Euros (For Federal Ministries: 125.000 Euros) Hans-Peter Müller

  8. German Government Procurement Regulations & Practice German public procurement legal system WTO / GPA EU-Directive 2004/18/EG EU-Directive 2004/17/EG Entities operating in the sectors water, energy, transport & postal services GWB Act against restraints of competition, Part IV Hans-Peter Müller

  9. German Government Procurement Regulations & Practice German public procurement legal system GWB Act against restraints of competition, Part IV Main contents: - Principles of public procurement law - Special regulations/shelter to promote SME - Definitions of the different procedures Hans-Peter Müller

  10. German Government Procurement Regulations & Practice GWB Act against restraints of competition, Part IV Procedural regulations: VgV Award Regulations SektVO Award & procedural regulations for Entities Hans-Peter Müller

  11. German Government Procurement Regulations & Practice Procedural regulations: VgV Principle Award Regulations VOB/A Regulation of construction services/works VOL/A Regulation of public supplies, goods & services VOF Regulation of Professional services Hans-Peter Müller

  12. German Government Procurement Regulations & Practice • Principles of public procurement law • (content of the GPA, the EU-Directives and also of the german procurement law) • Transparency • Competition • more than one bidder • Non discrimination • equal treatment of national and international bidders • no preference of local bidders Hans-Peter Müller

  13. German Government Procurement Regulations & Practice • Principles of public procurement law • Economic operators have to fullfill certain suitability criteria/qualification („knock out“ criteria): • skill • efficiency • reliability • These criteria are checked by the contracting authorities in the first step of the selection phase Hans-Peter Müller

  14. German Government Procurement Regulations & Practice • Additional german principles of public procurement law: • Award to the most economical tender • Importance of life-cycle-costs • Special regulations/shelter for SME • Obligation to subdivide contracts into lots (by quantity or • by special items of the contract) Hans-Peter Müller

  15. German Government Procurement Regulations & Practice • The different procurement procedures • open procedure • restricted procedure • negotiated procedure • competitive dialogue • dynamic purchasing system Hans-Peter Müller

  16. German Government Procurement Regulations & Practice open procedure (one phase procedure) any economic operator may submit a tender Hans-Peter Müller

  17. German Government Procurement Regulations & Practice • restricted procedure • (two phases procedure) • any economic operator may request to participate • those who are invited by the contracting authority • may submit a tender Hans-Peter Müller

  18. German Government Procurement Regulations & Practice • negotiated procedure • (either two steps procedure or one step procedure) • contracting authority consults economic operator(s) • of its choice • and • negotiates the terms of contract Hans-Peter Müller

  19. German Government Procurement Regulations & Practice • competitive dialogue • (more phases procedure) • any economic operator may request to participate • contracting authority conducts a dialogue with the candidates • aimed at • developing suitable alternatives meeting the requirements • and • invites to tender on the basis of the developed alternatives Hans-Peter Müller

  20. German Government Procurement Regulations & Practice • dynamic purchasing system (completely electronic procedure) • make commonly used purchases of goods that are • genarally available on the market • any economic operator which satisfies the selection • criteria may request to participate • economic operator submits an indicative tender • after „last call“ of the contracting authority the participating • operators are requested to submit a final tender Hans-Peter Müller

  21. German Government Procurement Regulations & Practice • Review procedures (only above the thresholds!) • Principle of transparency • Shelter of the economic operators Hans-Peter Müller

  22. German Government Procurement Regulations & Practice • Review procedures (only above the thresholds!) • information of the bidders 15 days before the award • request for review to be adressed to an independant body • automatic suspension of the award • decision within 5 weeks • possibility of apealing the court (decides finally) Hans-Peter Müller

  23. German Government Procurement Regulations & Practice • procurement process • publishing of contracts / contract notice • bidding • checking of formal aspects of requests/tenders • checking of suitability/qualification of the economic operator • checking the adequate price • rating of the tenders • determination of the most economical tender = award Hans-Peter Müller

  24. German Government Procurement Regulations & Practice • Publishing of contracts (electronic) • Supplement of the Official Journal of the EU: • http://ted.europa.eu • http://simap.europa.eu • variety of national german publishing organs (examples): • www.bund.de • www.evergabe.online.de • www.vergabe24.de • www.subreport.de Hans-Peter Müller

  25. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • Market survey – permanent search for procurements • Procurement notices • Prior information notices • Marketing – contact with contracting authorities/entities not • only during a procurement process Hans-Peter Müller

  26. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • cooperation with german economic operators/companies • contact via • chambers of Industry and commerce (www.dihk.de) • chamber of crafts (www.zdh.de) • public procurement counceling agencies (www.abst.de) Hans-Peter Müller

  27. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • be aware of the time limits for tenders: • (must be published in the procurement notice !) • request for participation in a restricted or negotiated procedure • usualy 37 days after publishing to submit the request • at least 10 days to submit the request Hans-Peter Müller

  28. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • be aware of the time limits for tenders: • (must be published in the procurement notice !) • open procedure • usualy 52 days after publishing to submit the tender • at least 15 days to submit the tender Hans-Peter Müller

  29. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • be aware of the time limits for tenders: • (must be published in the procurement notice !) • restricted procedure • usualy 40 days after invitation to tender to submit the tender • at least 15 days after invitation to submit the tender • in case of urgency: at least 10 days Hans-Peter Müller

  30. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • careful consideration of the tender documents ! • bids/tenders have to be submitted according to the • requirments and in particular to the technical specifications Hans-Peter Müller

  31. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • no changes of the tender documents and the contracting • conditions are permitted ! • otherwise: knock out! • exemption: negotiated procedure/competitive dialogue • changes may be made during negotiation/dialogue Hans-Peter Müller

  32. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • Tenders must contain all • information • declarations of qualification • prices/calculation • as requested by the contracting authority Hans-Peter Müller

  33. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • Groupings of contractors have to • name their respective members • nominate one as authorized representative Hans-Peter Müller

  34. German Government Procurement Regulations & Practice Being a successful economic operator in tendering Make use of the possibility to submit alternative tenders if permitted The contracting authority must publish this in the procurement notice ! Hans-Peter Müller

  35. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • Crosscheck all formal aspects of the tender before submitting it ! ! • completeness of all requested information and declarations • calculative correctness • signature • closed envelope • time limit Hans-Peter Müller

  36. German Government Procurement Regulations & Practice • Being a successful economic operator in tendering • Finally: Possibility to request for review ! • proof of possible damage • through infringement • request before the award Hans-Peter Müller

  37. Thank you very much ! Hans-Peter Müller

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