• Save
Framework agreements in EU Public Procurement
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share

Framework agreements in EU Public Procurement

  • 1,104 views
Uploaded on

EU public procurement training in Lovech, TAIEX project. Framework agreements.

EU public procurement training in Lovech, TAIEX project. Framework agreements.

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
1,104
On Slideshare
1,104
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
0
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Framework agreements Application of framework contracts. Benefits for the supplier and the contracting authority November 9, 2009. Lovech, Bulgaria ANDRIUS ŠIAUDINIS, M. A. JUR. PPP ASSOCIATION - LITHUANIAPublic Private Partnership Association - Lithuania
  • 2. Framework agreementsIs it a new thing?Legal frameworkGeneral rulesBenefits and risksModels of the framework agreementsCase study of the centralized purchasing under the framework agreements
  • 3. Is it a new thing?The “old” procurement regime had no provisions on framework agreementsThe “grey” area gave a chance for uncertaintyIt was used in practice!Much uncertainty in regard to agreements with more than one supplierDifferent practices in the EU MS
  • 4. Is it a new thing?
  • 5. Legal framework (EU level)Legal documents:Directive 2004/18/EC “Classic Directive”Directive 2004/17/EC “Utilities Directive”Explanatory documents:“Explanatory note – framework agreements – classic directive”, Commission European, Directorate General Internal Market and Services
  • 6. Legal framework (EU level)Directive 2004/18/EC: “an agreement between one or more contracting authorities and one or more economic operators, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantity envisaged”Directive 2004/17/EC: “an agreement between one or more contracting entities referred to in Article 2(2) and one or more economic operators, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular with regard to price and, where appropriate, the quantities envisaged”
  • 7. Legal framework (national level)Bulgarian Public Procurement Law: Article 93a. (1) A “framework agreement” shall be an agreement concluded between one or more contracting authority and one or more potential suppliers, contractors or service providers of public procurement contracts, whereof the purpose is to pre-establish the terms, governing the contracts which the parties intend to conclude during a given period not longer than four years, including with regard to the prices and, where possible, the quantity envisaged.
  • 8. Basic general rules Setting up of a framework agreement must not hinder or distort competition Framework agreement may be used only by original parties Maximum duration is 4 years (exceptional cases allow longer term) “Call offs” may extend beyond the life of the framework The establishment of the framework agreement follows the normal procurement procedures (e.g. open or restricted procedure)
  • 9. BenefitsBenefits for contracting authority: Time saving tool (just one procedure) Greater quantity (better price) Bigger contracts and share of risks (security of supply) Flexibility (adaptation to markets technical and financial evolution): possibility to buy products as the need appears and possibility to re- open competition in order to award orders or contractsBenefits for the supplier: No need to prepare numerous proposals Reacting to the market changes (renewed proposal)
  • 10. RisksProblems: bigger contracts some centralisation risk of captive contracts more complicated for contracting authorities reduced access of SMEs
  • 11. Models
  • 12. Single Supplier Framework AgreementWhen all terms are established: Conclusion of the framework agreement follows the normal procedures Parties MUST stick to the terms of the original agreement The proposal for winning the framework agreement cannot be changedWhen not all terms are established: Conclusion of the framework agreement follows the normal procedures Parties CAN agree the concrete terms for the special “order” following the rules described in the framework agreement Possibility to make necessary supplements to the initial proposal after consultation in writing
  • 13. Multiple Framework AgreementWhen all terms are established (without reopening competition): All terms are fixed No need or possibility to reopen competition The award procedure must be described in the agreement and follow general principles (i.e. cascade model)When not all terms are established (reopening competition): The suppliers are notified of the additional conditions Reopening competition must be done in writing Suppliers send new offer Award takes place according to the award criteria stated in the framework agreement
  • 14. Lithuanian case study Framework agreements in centralized purchasing Central Project Management Agency, Lithuania www.cpo.lt Purchased products under the multiple framework agreements with reopening competition: Computer and office equipment Stationery and office supplies Fuel in filling stations Mobile telecommunication services
  • 15. Lithuanian case studyFramework agreement (FA)for computers: Open procedure FA signed with 12 suppliers E-catalogue E-ordering Reopening mini competition Lowest renewed price wins
  • 16. Useful linkshttp://ec.europa.eu/internal_market/publicprocure ment/docs/explan-notes/classic-dir- framework_en.pdfwww.ogc.gov.uk/documents/guide_framework_agr eements.pdfhttp://ec.europa.eu/internal_market/publicprocure ment
  • 17. Questions? ?
  • 18. Public Private Partnership Association - Lithuania A. Gostauto 40a, Vilnius, Lithuania T +370 5 2100 000 F +370 5 2784 389 3p@3p.lt www.3p.lt