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Unlock insights into EC service contracts with detailed examples of tender processes, evaluation criteria, contract structures, payment schedules, and contractual obligations.
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EC Cooperation with Third CountriesTypology of EC Service Contractsprepared by Mauro Napodanomauronapodano@tin.itDevelopment Strategies The author accepts sole responsibility for this presentation. Its content does not necessarily reflect the views of the EC which funded the project and of the Ministry of Foreign Affairs who organised the seminar.
The web-page of the EuropeAid Cooperation Office is where to obtain information on tenders http://ec.europa.eu/europeaid/index_en.htm
Searching database for tenders http://ec.europa.eu/europeaid/cgi/frame12.pl
Example of results from a search on EC forecast/open tenders in Ukraine
Short-listed companies receive the following tender dossier • Instructions to tenderers, including terms of reference • Shortlist of candidates • Draft contract and annexes • Tender submission form Award criteria contained in the dossier should be paid special attention; experience of experts and methodology/approach proposed are key criteria
Example of award criteria in evaluation grid (service contract) The division of scores between the two major categories and within each category varies according to the requirements of the specific tender procedure
Structure of Terms of Reference (ToRs) - see example in hands-out • Country and Sector Background • Description of the assignment • Project partner • Overall and specific objectives • Requested services • Expected results • Requirements • Personnel – 3 categories of experts based on years of working experience (over 20, 10, 5) • Qualifications and skills • Allocation of working days • Location and Duration • Duration • Project phases (inception, implementation) • Location • Reporting • Content, language, format and number of reports • Relation to other EC projects in the field
For all the contractual aspects of a EC contract go to http://ec.europa.eu/comm/europeaid/tender/practical_guide_august2006/annexes_services_en.htm
What to look up in the Contract Specific Conditions • Notes The structure is complex and made of several annexes to be carefully considered 1 • Contract Structure 2 For decentralised projects it could be denominated in local currency. In this case it would be advisable to hedge against foreign exchange risks • Contract value 3 • Payment Schedule It is based on the cash flow forecast presented by the consultant in the bid 4 • Law of the contract For decentralised projects it is that of the beneficiary country: need to know local legal framework 5 In general the project is tax and custom duty free; there can be some derogations though, e.g. a complex local system of ‚pay first and get reimbursed later‘ • Tax and Custom 6 For decentralised projects it could be referred to the local jurisdiction. In this case it would be advisable to look for an arbitration body • Dispute Settlement 7 • Payment Schedule These are derogations from the Contract general Conditions
What to look up in the Contract General Conditions (among other things) • Notes Allowed but needs to be communicated to the Contracting Authority for written approval 1 • Subcontracting • Obligations of consultant 2 If the Consultant is a consortium, all members are legally bound to fulfill the contractual terms • Indemnity insurance policy 3 It is mandatory, including coverage of employees‘ sickness and accidental death; costs need to be embedded in the project • Intellectual proprieties All reports and data, including software developed with project finances, are exclusive propriety of the Contracting Authorities; they cannot be used by consultant in other projects without consent 4 Allowed under specific circumstance but needs in any case to be communicated to the Contracting Authority for written approval 5 • Replacement of personnel 6 Any amendment of the contract must be set out in writing in an addendum, to be concluded on the same terms as the original contract • Contract amendments 7 • Financial guarantee The Consultant should provide a bank guarantee covering the full amount of the advance payment 8 • Audit certificate An independent auditor , paid by the Consultant, should examine the project‘s accounts and certify their correctness before the final payment is authorised.