Guidelines for conducting public procurement

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Public Procurement Manual ? April 2007

PUBLIC PROCUREMENT MANUAL

GUIDELINES FOR CONDUCTING PUBLIC PROCUREMENT PROCEDURES

First Edition - April 2007

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Public Procurement Manual ? April 2007

The First Edition of the Public Procurement Manual was published in hard copies and on CDROM, and distributed to selected government institutions and participants to "Train-thetrainers" program on Public Procurement. It is also published on the Public Procurement Agency's website (.al.) and can be downloaded as PDF File, for free, by public officials and economic operators. This publication was made possible with support by the Millennium Challenge Corporation (MCC) and the Millennium Challenge Albania Threshold Agreement with the Government of Albania, administered by USAID. The authors' views expressed in this publication do not necessarily represent the official view of MCC, USAID or the US government. The reproduction, copying, and distribution of this publication is allowed in its entirety or in parts provided that: (a) the material is used by acknowledging the authorship of PPA, MCC, and USAID, (b) the publication serves only for information, non-commercial, non-personal purposes, (c) the text of the publication is not altered.

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Public Procurement Manual ? April 2007

TABLE OF CONTENTS

ACRONYMS ........................................................................................................................................ 4 FOREWORD ........................................................................................................................................ 5 INTRODUCTION ................................................................................................................................ 6 Section I. The National Procurement Legal Framework................................................................. 7 1. Overview of the Public Procurement Law ......................................................................................... 7 2. Terminology/Glossary of Terms ...................................................................................................... 11 Section II. The National Procurement Policy ................................................................................. 15 1. General Principles of Public Procurement........................................................................................ 15 2. Main Elements of the Procurement Cycle........................................................................................ 16 3. Preparation Stage of the Procurement Process ................................................................................ 22 4. Ethics in Public Procurement ........................................................................................................... 27 5. Value for Money .............................................................................................................................. 28 Section III. Public Procurement Methods....................................................................................... 30 1. Open Procedure ................................................................................................30 2. Restricted Procedure .......................................................................................... 32 3. Negotiated Procedures ......................................................................................... 34 4. Request for Proposals Procedure ........................................................................................... 40 5. Consultancy Services Procedure .............................................................................40 6. Design Contest Procedure ....................................................................................49 7. Small Value Purchase Procedure ............................................................................52 Section IV. Contract Administration (to be drafted) ......................................................53 Section V. Standard Tender Documentation & Template Documents ...............................53 1. Standard Tender Documentation ............................................................................53 2. Standard Template Documents & Forms ..................................................................65 Template Document 1 - Contract Notice .....................................................................65 Template Document 2 - Instructions to Tenderers ...........................................................67 Template Document 3 - Tender Form .........................................................................70 Template Document 4 - Price Schedule Form ................................................................71 Template Document 5 - Contract Award Form ...............................................................72 Template Document 6 - Notification to Unsuccessful Tenderers ...........................................75

ACRONYMS

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Public Procurement Manual ? April 2007

CA Contracting Authority CV Curriculum Vitae EO Economic Operator EOI Expressions of Interest IT Invitation to Tender LOI Letter of Invitation PAB Public Announcement Bulletin PAO Public Advocate Office PM Procurement Manual PO Procurement Order PPA Public Procurement Agency PPL Public Procurement Law PPR Public Procurement Regulation REOI Request for Expressions of Interest RFP Request for Proposals SAO Supreme Auditing Office TD Tender Document TOR Terms of Reference TS Technical Specifications VFM Value for Money

FOREWORD

Dear Reader,

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Public Procurement Manual ? April 2007

FOREWORD

Dear Readers, This manual, which was prepared with assistance by the Millennium Challenge Albania Threshold Agreement project, is an important effort to support all parties involved in organizing and participating in public procurement procedures and those who are simply curios to learn about these procedures. Public procurement is a relatively new area in Albania and, usually, the information in this area is obtained through non-professional channels. Therefore, this manual is necessary. The manual serves primarily contracting authorities' officials, economic operators, and the office of the Public Procurement Advocate. But is also serves groups that are not involved on a daily basis in public procurement, but still need to receive professional information in this area. Thus, this manual may be seen also as an opportunity for judges, students, and journalists to be acquainted with public procurement procedures and to assist them in their profession. The manual offers information related to the public procurement legislation, its implementation in practice, issues and cases faced during daily work, as well as solutions or opportunities to find such solutions. Which institutions and actors operate in this field and what is their role in a procurement procedure? You may find the answer to this and other similar questions in the manual. Hoping that this manual will serve to increase the efficiency and transparency in public procurement in Albania, I would like to thank the Public Procurement Agency staff and that of the Millennium Challenge Albania project for their work in preparing this manual. Thank you to you, readers, for using this manual! Sincerely, Klodiana Cankja Director of the Public Procurement Agency

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Public Procurement Manual ? April 2007

INTRODUCTION

Objectives of the Public Procurement Manual

The new Law on Public Procurement of 2006 (No. 9643, dated 20.11.2006) and the Regulations passed based on this Law have provided the Republic of Albania with a more open and transparent public procurement regime, in compliance with the European Union and International Best Practices.

This Manual has been developed as a reference guide to comply with the implementation of the national Procurement Law and Regulations and contains Standards, Procedures and Guidance on all aspects of public procurement. Although the compliance with the advice or guidance found in the Manual is not compulsory, it is strongly recommended to all categories of procurement staff at the state, regional and local levels. Hence, the Manual can only be applied as an additional tool to the Procurement Law and Regulations in force.

The document is primarily intended for public procurement practitioners, providing them with a suitable tool to ensure an efficient and consistent practice of the public procurement procedures. It also should help contracting entities to better and faster grasp procurement procedures in the day-to-day course of their activities.

The Manual will also serve as training material in the context of procurement training activities for strengthening knowledge of staff associated with the public procurement process.

Amendments to the First Edition of the Manual

This First Edition of the Manual is seen as a document that can be further developed and improved following users' utilisation and comments. However, amendments or changes will only be made by the Public Procurement Agency, which aims to publish a Second Edition in 2008.

Content of the Public Procurement Manual

The Manual consists of five Sections, which are succinctly presented below.

Section I provides a short summary of the national Public Procurement Law and Public Procurement Regulations, as well as a glossary of terms used in the field of procurement that are set out by the Law and shall apply to this Procurement Manual.

Section II comprises information on the national procurement policy from the general principals of public procurement to the responsibilities of the different entities involved in procurement. It also introduces the procurement process from the preparation stage to the selection of the pertinent contract type.

Section III describes the different procurement methods for goods, works and services and presents in detail certain phases of each procurement procedure. Each method is summarised in a flowchart to enable users an easy and practical overview of the step-by-step process.

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