February 10, 2005

Standard Contract DocumentsWhat are they? How to use them?

Finnish Institute of Public Management Liisa Lehtomäki

Short term expertSenior Consultant

February 10, 2005

Purchasing process

A.B.

C.

D.

E.

F.G.H.

I.

J.

K.

L.

M.N.

1.VISIONThe principles and goals of

the organisation and its PP sector

2. Steering and monitoring

3. Development

A. Market analysisB. Planning of the purchaseC. Choosing the right method for

the purchase

D. Drafting the Invitation to tender

E. Planning the award criteriaF. Sending procurement notice and

/ or invitation to tenderG. Receival of the tendersH. Qualification of the tenderer,

tender form and the contents of the tender

I. Evaluating the tendersJ. Decision makingK. InformingL. Remedies

M. Contract and/or order

N. Monitoring the contract and delivery

5. Document management

4. Purchase process

5.

February 10, 2005

How to make a good set oftender/contract documents?

Keep in mind The main principles: Non-discrimination, equal treatment, trancparency, proportionality

The scope of the procurement The technical requirements The qualification and evaluation criteria

Needs of the users

February 10, 2005

Tender/contract documents Invitation to tender and Instructions for tenderers

Specific conditions of

contract

Annex 2

Technical specifications

, service description or

works annexes

Annex 3

Tender sheet, Qualification

and evaluation

criteria

Annexes 4 and 5

General conditions of contract or a contract draft

Annex 1

February 10, 2005

Documents prepared

Document

Type Services Works IT

Guideline procurement process

Model for invitation to tender

Contract documents ST and GT ST and GT Contract

SGT and GT

Fidic

General models for all areas done

Supplies/

Goods

February 10, 2005

Standard contract documents

General Conditions of Contract for Goods Specific Conditions of Contract for Goods General Terms and Conditions of Contract for

Services Guidelines on Public Procurement Procedure (works)

February 10, 2005

Standard contract documents

General Terms and Conditions of Information Technology Public Procurement Contract

Specific Conditions of Contract for Information Technology Public Procurement Contract on seven different alternatives

Consulting Services Equipment and Software Maintenance Services Facilities Services Management Procurement of Equipment Standard Software Customised Application Software

February 10, 2005

How to use?

They form a standard basis for all the procurement and competition processes

They should not be altered If there is a need for changes, they should be

introduced by defining the needed change in the specific conditions of contract

February 10, 2005

Benefits

All procurements are based on same standardised conditions of contract

Concepts, definitions and contents are clear to both sides

Need for changes is minimised Negotiations concentrate on main issues Knowledge is widened on both sides There are time savings and cost savings on both

sides Preparation time is shortened

February 10, 2005

Benefits

Better value for money for contracting authorities when

processes are standardised time shedules are optimised number of economic operators are optimised number of procurement competitions are optimised

gathering larger volumes to each competition benefits of volumes are better achieved overlapping and unneeded/excessive work is minimised

February 10, 2005

Organization and steering

Steering level

Agreement level

Ordering level

Vision, Procurment

strategy, steering,

guidelines

B

Frameagreements

Orders

Recalls

Stra-tegy

Order Order

Guide-lines

A

Centralized

investment

procurements

Contract

C Co

February 10, 2005

Product categories for Procurement strategy

Mass products C

Large volume

Poor availability

X

Volume products B

Strategic

products A

Bottleneck

products D

According to P. Kraljic

Area for Framework

agreements

February 10, 2005

Next step needed

Introducing the documents to contracting authorities economic operators or organisations

reprensenting them and acting as their supervisors

Negotiations between all stakeholders Mutual acceptance as a common basis for

public procurement contracts in Lithuania