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P UBLIC PROCUREMENT SYSTEM IN POLAND

P UBLIC PROCUREMENT SYSTEM IN POLAND. Rome, 13 December 2004. CONTENTS. PUBLIC PROCUREMENT MARKET IN POLAND HISTORICAL BACKGROUND CURRENT LEGAL FRAMEWORK CONTRACT AWARD PROCEDURES PUBLICATION OF NOTICES REVIEW PROCEDURES PUBLIC PROCUREMENT OFFICE.

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P UBLIC PROCUREMENT SYSTEM IN POLAND

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  1. PUBLIC PROCUREMENT SYSTEM IN POLAND Rome, 13 December2004 Public Procurement Office, Poland

  2. CONTENTS • PUBLIC PROCUREMENT MARKETIN POLAND • HISTORICAL BACKGROUND • CURRENT LEGAL FRAMEWORK • CONTRACT AWARD PROCEDURES • PUBLICATION OF NOTICES • REVIEW PROCEDURES • PUBLIC PROCUREMENT OFFICE Public Procurement Office, Poland

  3. PUBLIC PROCUREMENT MARKET IN POLAND (1) SIZE OF MARKET - full information about awarded contracts available only above threshold of 60 000 Euro (source Bulletin of Public Procurement) - PPO estimates expenditure on public procurement in 2003 at least 11 billion EUR (over 5% of GDP) - OECD estimates – 9.7 % GDP (2002) Public Procurement Office, Poland

  4. PUBLIC PROCUREMENT MARKET IN POLAND (2) Value of public procurement market in Poland in billions of Polish Zloty (contract notices in open procedure of value above EUR 30 000) Public Procurement Office, Poland

  5. PUBLIC PROCUREMENT MARKET IN POLAND (3)- according to the value of contractsawarded in particular type of procurement Public Procurement Office, Poland

  6. PUBLIC PROCUREMENT MARKET IN POLAND (4)Award procedures according to type of procurement(number of contract notices of value above EUR 30 000) • Source: Report on the functioning of public procurement system in 2003 Public Procurement Office, Poland

  7. PUBLIC PROCUREMENT MARKET IN POLAND (5)Who purchases most frequently?(contract notices of value above EUR 30 000) Source: Report on the functioning of public procurement system in 2003 Public Procurement Office, Poland

  8. PUBLIC PROCUREMENT MARKET IN POLAND (6) • Number of active enterprises in Poland - over 1.750.000. • Procuring entities - 4.050 units in state administration and about 51.000 entities in local government. • 20% of entrepreneurs participate in public procurement market (estimate based on surveys) • 1.69% of Polish procurements announced in OJ awarded to contractors from other EU Member States Public Procurement Office, Poland

  9. PUBLIC PROCUREMENT MARKET IN POLAND (7)Procurement notices from New Member States published in OJ EU(based on TED from 01.05 to 23.09.2004 - total number 3864) Public Procurement Office, Poland

  10. HISTORICAL BACKGROUND • No separate procurement regulation before 1989 • Act on Public Procurement adopted on 10 June 1994 – initially based on the UNICITRAL Model Law • Public Procurement Law adopted on 29 January 2004 – in force from 2nd March 2004 – adjustment to EU procurement directives Public Procurement Office, Poland

  11. CURRENT LEGAL FRAMEWORK (1) PUBLIC PROCUREMENT LAW One single act regulating all aspects of publicprocurement: - from the start of a procedure till the signing of a contract - covers also review procedures - covers also the utilities sectors It does not regulate matters related to: - planning and financing of public contracts(subject to finance law) - performance of contracts (subject to civil law) Public Procurement Office, Poland

  12. CURRENT LEGAL FRAMEWORK (2) COVERAGE OF THE PUBLIC PROCUREMENT LAW: Procurement of public services, goods and works • Entities obliged to apply the PPL • Values of thresholds - 6 000 Euro - the PPL does not apply to public contracts below this threshold - 60 000 Euro - application of the rules laid down byEU directives - over 5 000 000 Euro for services and supplies and over 10 000 000 Euro for public works - strengthened monitoring and control rules - „strictprocedure” Public Procurement Office, Poland

  13. CURRENT LEGAL FRAMEWORK (3) IMPLEMENTING REGULATIONS Currently 14 implementing regulations in force: • issued by competent ministers on the basis of the PPL(majority by Prime Minister – others by Minister of Infrastructure) • regulate in detail matters such as: • standard forms of notices for publication, • documents which may be demanded from bidders, • proceedings of tendering committees. Public Procurement Office, Poland

  14. CONTRACT AWARD PROCEDURES (1) The Polish Public Procurement Law provides for 7 different procedures for the award of public contracts: • open tendering • restricted tendering • negotiations with publication • negotiations without publication • single source procurement • request for quotations • electronic auction Public Procurement Office, Poland

  15. CONTRACT AWARD PROCEDURES (2) • Only one eligible tender submitted required for valid procedure of awarding a contract. • OPEN TENDERING and RESTRICTED TENDERINGTwo primary procedures for the award of public contracts - possibility of equal application. • OPEN TENDERING -all bidders may submit a tender. Public Procurement Office, Poland

  16. CONTRACT AWARD PROCEDURES (3) RESTRICTED TENDERING • only suppliers or contractors qualified by the awarding entity after the selection phase may submit tenders, • selection criteria set up by the implementing regulation issued on 7th of April 2004: a). personal situation of the candidate orbidder b). suitability to pursue the professional activity c). economic and financial standing d). technical and/or professional ability to perform a contract Public Procurement Office, Poland

  17. CONTRACT AWARD PROCEDURES (4) NEGOTIATIONS WITH PUBLICATION • contract award procedure in which, following a public notice, the awarding entity shall negotiate the terms of the public contract with contractors (at least 5, if available) and shall subsequently invite them to submit their tenders • if the contract value exceeds 10 000 000 Euro for works and 5 000 000 Euro for supplies and services, prior consent of the Chairman of the PPO, by administrative decision, is required Public Procurement Office, Poland

  18. CONTRACT AWARD PROCEDURES (5) • Procedures where application require prior consent of the Chairman of the PPO by administrative decision if the contract value exceeds 60 000 Euro NEGOTIATIONS WITHOUT PUBLICATION • contract award procedures in which the awarding entity negotiates the terms of the contract with contractors of its choice (at least 5, if available) and subsequently invites them to submit their tenders SINGLE-SOURCE PROCUREMENT • contract award procedures in which the awarding entity awards a contract after having negotiated with only one contractor Public Procurement Office, Poland

  19. CONTRACT AWARD PROCEDURES (6) REQUEST-FOR-QUOTATIONS • the procuring entity addresses a request for quotations for readily available goods or services with established quality standards, • the contract value does not exceed 60 000 Euro, • contracts are awarded to the suppliers offering the lowest price. Public Procurement Office, Poland

  20. CONTRACT AWARD PROCEDURES (7) ELECTRONIC AUCTION • contract award procedure in which, using a form available on the website allowing to enter the necessary data on-line, contractors shall submit successive more advantageous tenders (bid increments), subject to automatic classification, • forreadily available goodswith established quality standards, • the contract value does not exceed 60 000 Euro. Public Procurement Office, Poland

  21. CONTRACT AWARD PROCEDURES (8) STRICT PROCEDURE additional requirements if the contract value exceeds • 10 000 000 Euro for works • 5 000 000 Euro for goods or services: • contract notice in a national daily or periodical, • obligatory participation of the independent observer during the works of the tender committee, • obligatory ex-ante check by the Chairman of the PPO. Public Procurement Office, Poland

  22. CONTRACT AWARD PROCEDURES (9) STRICT PROCEDURE • from the entry into force of PPL over 150 „strict procedures” was started, • average value of contract ca. 35 mln Euro, • biggest value of contract this year – 1.7 billion Euro, • the predominant among award procedures of highest value is electro – energy sector. Public Procurement Office, Poland

  23. PUBLICATION OF NOTICES (1) The following notices are mandatory: • contract notices and contract award notices of value above 60 000 Euro are published in the Bulletin of Public Procurement, • contract notices of value above 130 000 Euro for goods and services and 5 000 000 Euro for works are also published in the Official Journal of the European Union, • prior information notices about procurements planned for a given year of value above 750 000 Euro for goods and services and 5 000 000 Euro for works are published in the Bulletin of Public Procurement and in OJ of the European Union. Public Procurement Office, Poland

  24. PUBLICATION OF NOTICES (2) BULLETIN OF PUBLIC PROCUREMENT • an official governmental gazette • prepared by the Public Procurement Office (a separate unit within the Office dealing with matters related to the Bulletin) • published both in paper and electronic form • e-version available free of charge on the PPO website (www.uzp.gov.pl) • notices for publication may be sent by post, fax or on-line (currently over 55% of all notices for publication is sent electronically) • apart from the Bulletin mandatory notices must be placed at the premises of contracting entities and on the internet site of the awarding entity, • notices may not be released prior to their publication in the Bulletin of Public Procurement. Public Procurement Office, Poland

  25. PUBLICATION OF NOTICES (3)Number of contract notices in 2000-2004- above EUR 30 000 threshold for 2000 – 2003- above EUR 60 000 threshold for 2004 *Data for period from 2 March till 8 October Public Procurement Office, Poland

  26. REVIEW PROCEDURES (1) • suppliers and contractors wishing to contest a decision of the awarding entity are entitled to use consecutively the following review measures: - protest - appeal - complaint • the right to apply review measures - anyone whose legal interest has been or might have been infringed • the provisions on review measures apply if the value of a contract exceeds the threshold of 6000 Euro Public Procurement Office, Poland

  27. REVIEW PROCEDURES (2) PROTESTS - supplier or contractor may lodge a protest against a decision of the awarding entity - protest shall be submitted directly to the awarding entity APPEALS - supplier or contractor may then lodge an appeal to the Chairman of PPO - appeals are examined by arbitration panels consisting of three arbiters appointed by Chairman of the PPO COMPLAINTS - interested suppliers or contractors may lodge a complaint to the regional court competent for the place of residence of the awarding entity Public Procurement Office, Poland

  28. PUBLIC PROCUREMENT OFFICE (1) ORGANISATION AND STRUCTURE: • created on 1 January 1995 following the adoption of the Act on public procurement. • a separate body within public administration • the Chairman of the Office appointed by the Prime Minister • currently PPO employs over 100 people working in 7 divisions Public Procurement Office, Poland

  29. PUBLIC PROCUREMENT OFFICE (2) The key functions of the PPO are: • to prepare drafts of legislation on public procurement, • to issue the Bulletin of Public Procurement, • to take administrative decisions concerning the application of the PPL by awarding entities, • to arrange and organise review proceedings, • to inspire training programs and events in the field of public procurement. Public Procurement Office, Poland

  30. PUBLIC PROCUREMENT OFFICE (3) The PPO does not: • award contracts for other public entities, • qualify candidates and evaluate tenders, • approve and invalidate conducted procedures, • examine protests and appeals lodged by bidders (which is a competence of Arbitration Panels) Public Procurement Office, Poland

  31. Source of useful information on public procurement in Poland:www.uzp.gov.pl- website of the Public Procurement Office

  32. DEPOSIT - the awarding entity shall require the contractors to pay a deposit where the value of the contract exceeds 60 000 Euro, - the awarding entity may require the contractors to pay a deposit where the value of the contract is less than 60 000 Euro Public Procurement Office, Poland

  33. VARIANTS/LOTS - the awarding entitymay permit the possibility of submitting variants, when the contract is awarded to the most economically advantegous tender - the awarding entity may also permit the possibility of submitting tenders for lots, where the object of the contract is divisable - in this case the contractor may submit tenders for one or more lots, unless the awarding entity specified the maximum number of lots for which one contractor may submit his tenders. Public Procurement Office, Poland

  34. SUBMISSION OF TENDERS - tender is submitted, under the pain of nullity, in writing or if the awarding entity agrees, in electronic form with a secure electronic signature verifiable using a valid qualified certificate, - in the case of electronic auction, tender is submitted, under the pain of nullity, in electronic form with a secure electronic signature verifiable using a valid qualified certificate Public Procurement Office, Poland

  35. DOCUMENTS TO SUBMIT Documents confirming that: • bankruptcy proceedings have not commenced or bankruptcy has not been declared, • prohibitition to participate in the public procurement procedure has not been issued, • no arrears with payment of taxes, charges or social insurance or health insurance premiums, with the exception of cases where they have been legally exempted, • natural person or partner or member of the management board of the legal personhas not been validly sentenced for an offence committed in connection with a contract award procedure, for bribery, for an offence against economic trade or for any other offence committed with the aim of gaining financial profits. Public Procurement Office, Poland

  36. PRINCIPLES OF CONDUCTING PUBLIC PROCUREMENT PROCEDURES • transparency of tendering procedures, • fostering competition, • economic use of public means, • equal treatment of participants, • clear requirements for participation, • clear contract award criteria, • open tendering and restricted tendering – primary procedures for awarding contracts Public Procurement Office, Poland

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