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Presentation by Alina Tsaturyan, Armenia (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

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Presentation by Alina Tsaturyan, Armenia(ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

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Presentation by Alina Tsaturyan, Armenia (ENG) Second SIGMA Regional ENP East Conference on Public Procurement, Kyiv 29-30 May 2018

  1. 1. Ways to appeal public procurement General jurisdiction court Հայաստանի Procurement review body of the republic Judicial Each person shall have the right to appeal in the court against the actions (inactivity) and decisions of appeal review body, contracting authority and evaluation commission pertaining the procurement. Out of court Each person shall have the right to appeal against the actions (inactivity) and decisions of the contracting authority and evaluation commission in the review body.
  2. 2. Out of court appeal of public procurement The Republic of Armenia procurement review body (existed up to April 25, 2017) 1. Independent and autonomous body 2. 58 members from various public bodies and NGOs. 3. Work is not paid. 4. Collective examination of case (commission of 2 members and 1 chairman). 5. Rotation principle of case examination commission members and chairman. The Republic of Armenia procurement review body (existed up to 25.04.2017-09.04.2018) 1. Permanent independent autonomous body 2. Up to 3 members 3. One person case examination The Republic of Armenia procurement review body (09.04.2018 – up to date) 1. Body subordinate to the Republic of Armenia ministry 2. Independent body 3. Procurement review body – 2 review bodies 4. One person case examination
  3. 3. The Republic of Armenia Procurement Review Body Functions Review of procurement appeals Review of the grounds to include the participants in the list of participants not entitled to partake to the procurement process Each person has the right to appeal against the actions (inactivity) and decisions of appeal review body, contracting authority and evaluation commission. Based on the information pertaining to the participant not entitled to partake to the procurement process the Republic of Armenia Ministry of Finance launches a procedure in the procurement review body. • Customer Violation cases • The Republic of Armenia Ministry of Finance Note on launching a procedure and grounds to include in the list • Procurement review body of the Republic of Armenia Review of grounds to include in the list and decision making Complainant Review Procurement review body Decision
  4. 4. Case Review Process by the Republic of Armenia Procurement Review Body  Any person has the right to submit appeals to the procurement review body  The appeal shall be lodged against the actions (inactivity) and decisions of the contracting authority and evaluation commission  The appeal shall contain the information envisaged by the Republic of Armenia Law on Procurement  To lodge a complaint, the complainant shall pay to the state budget an appeal fee, otherwise the appeal shall not be admitted  The appeal is reviewed in the sessions  The review of the appeal shall be public and any person has the right to be present at the sessions, except for appeal cases containing state secret  The appeal session shall be live broadcast on the official webpage of the Republic of Armenia Government and procurement  The review of the appeal shall be 20 days, which can be extended for 10 more days by a reasoned decision of the review body  As a result of review examination the procurement review body shall make a decision, which shall be reasoned and justified  The decision of the procurement review body shall enter into force and become binding on the workday following its official posting on the Republic of Armenia procurement official webpage  The decision of the procurement review body can be annulled or changed only by the court  The procurement review body shall have the right to prohibit the contracting authority and evaluation commission to make some actions and make decisions, make adopt respective decisions, including cancelling procurement procedure, except the decision to repeal the contract
  5. 5. Deadlines and restrictions to lodge an appeal If decision to conclude a contract is appealed against If procurement specifications, pre- qualification announcement or invitation requirements appealed against Appeal must be lodged within inactivity deadline envisaged for contract conclusion as a result of procurement process Appeal shall be lodged by the deadline to submit bids Each person has the right to appeal against the actions (inactivity) and decisions of the contracting authority and evaluation commission in the review body before signing a contract.
  6. 6. Review of the grounds to include in the list of non-eligible participants for the procurement process Behavior of procurement process participant Contracting authority The Republic of Armenia Ministry of Finance The republic of Armenia procurement review body List restricting the right to participate The purpose of including a participant in the list of non-eligible participants for the procurement process is to provisionally restrict the participation of the bidders with illegal behavior to the procurement process The person shall be included in the list of non-eligible participants for the procurement process Has violated commitment envisaged by contract or undertaken within procurement process that lead to unilateral contract termination by contracting authority or participation of given participant to the procurement process As a selected bidder refused to sign a contract After opening the bids refused the further participation to the procurement process The participant shall be included in the list of non-eligible participants for procurement process 2 years The grounds to include in the list of non-eligible participants for the procurement process shall be reviewed by procedures and terms envisaged for appeal review.
  7. 7. Judicial review of procurement Procurement, including appeal review relations are not administrative relations and are regulated by the civil legislation of the Republic of Armenia. Each person shall have the right to appeal in the court against the actions (inactivity) and decisions of appeal review body, contracting authority and evaluation commission pertaining the procurement.
  8. 8. Selection of procurement review method Out of court Judicial • Any person can lodge an appeal against the actions (inactivity) and decisions of contracting authority and evaluations commission • Simplified procedures to lodge an appeal • 20 days to review the appeal with maximum 10 days extension • Open review of appeal, live broadcast of sessions • In case of granting the appeal – return of appeal fee • Decision made as a result of appeal can be challenged in the court • Limited scope of powers to make a decision by appeal review results • Appeal can be lodged only by person interested in the process • Case review by overloaded courts • Lack of specialized courts reviewing procurement disputes • Long, even years long periods for case review • Open case review • Possibility to make broad scope of decisions as a result of appeal review by the court
  9. 9. Functional indicators of procurement review out of court system activities Granted Rejected Not reviewd In 2015 54 appeals received In 2016 128 appeals received granted refused not reviewed In 2017 169 appeals received granted rejected not reviewed As by May 18 2018 135 appeals have been submitted to the Republic of Armenia procurement review body
  10. 10. THANK YOU FOR YOUR ATTENTION

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