PUBLIC PROCUREMENT LAW TITLE I GENERAL PROVISIONS … · Only the official Polish text of the Act...

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Note: The English translation of the Act below has been provided by the Public Procurement Office for information purposes only. Only the official Polish text of the Act should be considered authentic. ACT of 29 January 2004 PUBLIC PROCUREMENT LAW TITLE I GENERAL PROVISIONS Chapter 1 Scope of application Chapter 2 Principles of award of contracts Chapter 3 Contract notices TITLE II AWARD PROCEEDINGS Chapter 1 Awarding Entity and Contractors Chapter 2 Preparation of a procedure Chapter 3 Procedures for awarding public contracts Section 1 Open tendering Section 2 Restricted tendering Section 3 Negotiated procedure with publication Section 4 Negotiated procedure without publication Section 5 Single-source procurement Section 6 Request-for-quotations Section 7 Electronic auction Chapter 4 Selection of the best tender Chapter 5 Record of proceedings TITLE III SPECIFIC PROVISIONS Chapter 1 Design contest Chapter 2 Award and execution of concessions Chapter 3 Sectorial contracts Chapter 4 Award procedures under special rules TITLE IV PUBLIC PROCUREMENT CONTRACTS * TITLE V PRESIDENT OF THE PUBLIC PROCUREMENT OFFICE (PPO) Chapter 1 Scope of activities Chapter 2 Council for Public Procurement Chapter 3 Checking of award of contracts Chapter 4 Arbitrators Chapter 5 Observers TITLE VI LAW ENFORCEMENT MEASURES Chapter 1 Common rules Chapter 2 Protests Chapter 3 Appeals Chapter 4 Complaints to court TITLE VII LIABILITY FOR INFRINGEMENT OF PROVISIONS OF THIS ACT TITLE VIII AMENDMENTS TO THE PROVISIONS IN FORCE TITLE IX INTERIM AND FINAL PROVISIONS ACT of 29 January 2004 PUBLIC PROCUREMENT LAW

Transcript of PUBLIC PROCUREMENT LAW TITLE I GENERAL PROVISIONS … · Only the official Polish text of the Act...

Page 1: PUBLIC PROCUREMENT LAW TITLE I GENERAL PROVISIONS … · Only the official Polish text of the Act should be considered authentic. ACT of 29 January 2004 PUBLIC PROCUREMENT LAW TITLE

Note: The English translation of the Act below has been provided by the Public Procurement Office forinformation purposes only. Only the official Polish text of the Act should be considered authentic.

ACT of 29 January 2004

PUBLIC PROCUREMENT LAW

TITLE I GENERAL PROVISIONS Chapter 1 Scope of applicationChapter 2 Principles of award of contractsChapter 3 Contract notices

TITLE II AWARD PROCEEDINGS Chapter 1 Awarding Entity and ContractorsChapter 2 Preparation of a procedureChapter 3 Procedures for awarding public contracts

Section 1 Open tenderingSection 2 Restricted tenderingSection 3 Negotiated procedure with publicationSection 4 Negotiated procedure without publicationSection 5 Single-source procurementSection 6 Request-for-quotationsSection 7 Electronic auction

Chapter 4 Selection of the best tenderChapter 5 Record of proceedings

TITLE III SPECIFIC PROVISIONSChapter 1 Design contestChapter 2 Award and execution of concessionsChapter 3 Sectorial contractsChapter 4 Award procedures under special rulesTITLE IV PUBLIC PROCUREMENT CONTRACTS *

TITLE V PRESIDENT OF THE PUBLIC PROCUREMENT OFFICE (PPO)Chapter 1 Scope of activitiesChapter 2 Council for Public ProcurementChapter 3 Checking of award of contractsChapter 4 ArbitratorsChapter 5 Observers

TITLE VI LAW ENFORCEMENT MEASURESChapter 1 Common rulesChapter 2 ProtestsChapter 3 AppealsChapter 4 Complaints to court

TITLE VII LIABILITY FOR INFRINGEMENT OF PROVISIONS OF THIS ACTTITLE VIII AMENDMENTS TO THE PROVISIONS IN FORCETITLE IX INTERIM AND FINAL PROVISIONS

ACT of 29 January 2004PUBLIC PROCUREMENT LAW

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Title IGeneral ProvisionsChapter1Scope of applicationArticle 1.

This Act specifies the rules and procedures for awarding public contracts, law enforcement measures,checking of the award of public contracts and the competent authorities with respect to matters addressed inthis Act.

Article 2.

For the purpose of this Act:

1) price - shall mean price within the meaning of Article 3 paragraph 1 item 1 of the Act of 5 July 2001 onPrices (Dz. U. of 2002 No 97 item 1050 and of 2003 No 137 item 1302); 2) supplies - shall mean the acquiring of things, rights and other possessions, in particular on the basis ofcontracts for purchase, supply, rental or lease; 3) head of the awarding entity - shall mean a person or body, who - in accordance with the provisions,statute or agreement in force - is entitled to manage the awarding entity, with the exclusion of theplenipotentiaries established by the awarding entity; 4) works concessions - shall mean those works contracts, where the consideration for their executionconsists either in the right to exploit the work or in this right together with payment; 5) the best (most advantageous) tender - shall mean either the tender providing the most advantageousbalance of price and other criteria relating to the object of the contract or the tender with the lowest price; inthe case of public contracts within the scope of creative or research activities where the object of thecontract cannot be established in advance in an univocal and comprehensive way, the best tender shall meanthe tender providing the most advantageous balance of price and other criteria relating to the object of thecontract; 6) tender for lot - shall mean a tender providing, in accordance with the content of the specification ofessential terms of the contract, for the performance of a part of the contract (lot);7) (tender) variant - shallmean a tender providing, in accordance with the terms of specified in the specification of essential terms ofthe contract, for a method of the performance of the contract other than that specified by the awardingentity; 8) works - shall mean the execution or the design and execution of works within the meaning of the Act of 7July 1994 Construction Law (Dz.U. of 2003 No 207, item 2016), as well as the execution of works withinthe meaning of the Act of 7 July 1994 Construction Law by a third party, in accordance with therequirements specified by the awarding entity; 9) public funds - shall mean public funds within the meaning of provisions on public finances; 10) services - shall mean any services not having as their object works or supplies; 11) contractors - shall mean natural persons, legal persons or organisational units not having legalpersonality, who compete for the award of a contract, have submitted their tenders or concluded a publicprocurement contract; 12) awarding entities - shall mean natural persons, legal persons or organisational units not having legalpersonality, obliged to apply this Act; 13) public contracts - shall mean contracts for pecuniary interest concluded between an awarding entity anda contractor, having as their object services, supplies or works;

Article 3.

1. This Act shall apply to public contracts, hereinafter referred to as "contracts" awarded by:

1) the public finance sector units within the meaning of provisions on public finances; 2) state organisational units not having legal personality, other than those specified in item 1; 3) legal persons, other than those specified in item 1, established for the specific purpose of meeting needsin the general interest, not having industrial or commercial character, if the entities referred to in theseprovisions and in items 1 and 2, separately or jointly, directly or indirectly through another entity:

a) finance them in more than 50%, b) have more than half of shares or stocks, or

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c) supervise their managerial board, or d) have the right to appoint more than half of the members of their supervisory or managerial board;

4) entities, other than those specified in items 1-3, exercising one of the activities referred to in Article 122,if such an activity is exercised on the basis of special or exclusive rights, or if the entities referred to initems 1-3, separately or jointly, directly or indirectly through another entity, have a dominant influence overthem, in particular:

a) finance them more in than 50%, or b) have more than half of shares or stocks, or c) supervise their managerial board, or d) have the right to appoint more than half of the members of their supervisory or managerial board;

5) entities, other than those specified in items 1 and 2, if more than 50% of the value of the contractawarded by them is financed out of public funds or by the entities referred to in items 1-3, 6) entities, other than those specified in items 1 and 2, if the contract awarded by them is financed with theparticipation of funds, the allocation of which is dependant on the use of the contract award procedureprovided for in this Act, 7) entities, who have been granted the works concession, hereinafter referred to as "concession", by theentities referred to in items 1-3, insofar as they award contracts for the purpose of the execution of thatconcession.

2. Special or exclusive rights within the meaning of paragraph 1 item 4 shall be rights granted by a law,regulation or administrative decision, consisting in the reservation for one or more entities of theexploitation of a specific activity.

Article 4.

This Act shall not apply to:

1) contracts awarded pursuant to:

a) the procedure of an international organisation or international financial institution, if the contract is to befinanced with the participation of funds, the allocation of which is dependant on the application ofprocedural rules other than those provided for in this Act, b) agreements concluded between the government of the Republic of Poland and governments of memberstates of the North Atlantic Treaty Organisation concerning the stationing of troops, if these agreementsprovide for contract award procedures other than those provided for in this Act, c) an international agreement, concluded by the Republic of Poland, concerning the implementation orexecution of a project by the parties to that agreement, if that agreement provides for contract awardprocedures other than those provided for in this Act;

2) contracts of the National Bank of Poland related to:

a) the exercise of tasks concerning the implementation of the financial policy, in particular contracts forfinancial services in connection with the issue, sale, purchase or transfer of securities or other financialinstruments, b) the trading of securities issued by the National Bank of Poland, c) the management of internal and external debt, d) the issue of currency and the administering of that currency, e) accumulation of foreign exchange reserves and management of those reserves, f) accumulation of gold and precious metals, g) the operation of bank accounts and conduct of bank financial settlements;

3) contracts where the object of the contract includes:

a) arbitration or conciliation services, b) services of the National Bank of Poland, c) satellite telecommunication services, d) voice telephony, telex or radiotelephony services, e) research and development services other than services for its use in the conduct of its own affairs andwholly remunerated by the awarding entity and where the benefits accrue exclusively to the awarding entity,

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f) armaments within the meaning of the Act of 29 November 2000 on external trade in goods, technologiesand services of strategic significance for state security and for keeping international peace and security andamending certain other acts (Journal of Law, Dz.U. of 2000 No 119 item 1250, of 2001 No 154 item 1789and of 2002 No 41 item 365, No 77 item 676 and No 89 item 804), g) preparation, production or co-production of films, radio or television broadcasts by public radio andtelevision entities, h) purchase of broadcasting time, i) purchase of ownership or other rights to real properties, j) financial services related to the issue, trade or transfer of securities;

4) employment contracts;

5) contracts which are declared state secret according to the provisions on protection of confidentialinformation or when the basic interests of the State's security so requires. 6) contracts for services rendered to another awarding entity, referred to in Article 3 paragraph 1 items 1and 2, who by means of an act or administrative decision has been vested with the exclusive right to renderthose services; 7) allocation of subsidies from public funds, if these subsidies are allocated pursuant to acts; 8) contracts and contests where their value does not exceed the equivalent in PLN of EUR 6 000.

Article 5.

1. In contract award procedures where the object of the contract includes:

1) security services, except for services related to the convoying of money and valuables; 2) social services; 3) hotel services; 4) restaurant services; 5) railway transport; 6) sea transport and inland navigation; 7) legal services; 8) personnel consulting services; 9) training services; 10) health services; 11) culture services; 12) sports and entertainment services; 13) detective services

- the awarding entity may not to apply the provisions of this Act concerning: notices of envisaged contracts,time limits, the deposit, the prohibition to determine criteria for evaluation of tenders on the basis of thecontractor's qualitative characteristics and conditions for the choice of the negotiated procedure withpublication, negotiated procedure without publication and request-for-quotations other than thoseconcerning the contract value, and for contracts referred to in items 3 - 13 also of the single-sourceprocurement procedure, and the requirement to obtain in these cases the consent of the President of thePublic Procurement Office, hereinafter referred to as "President of the Office".

3. If the contract includes at the same time services referred to in paragraph 1 and other services, supplies orworks, provisions relating to the object of the contract with the largest share in the given contract in termsof value shall be applicable to the award of the contract.

4. The awarding entity may not combine other contracts with services referred to in paragraph 1 with theintention of avoiding the application of contract award procedures specified in this Act.

Article 6.

1. If a contract includes simultaneously the provision of supplies and services, or works and services, theaward of the contract shall be regulated by provisions relating to the object of the contract with the largestshare in the given contract in terms of value.

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2. If a contract includes simultaneously the provision of supplies and services consisting in the sitting orinstallation of the supplied article or other good, provisions relating to supplies shall apply to the award ofsuch a contract.

3. If a contract includes simultaneously works and supplies necessary for their execution, provisions relatingto public works shall apply to the award of such a contract.

Chapter 2

Principles of award of contracts

Article 7.

1. Awarding entities shall prepare and conduct contract award procedures in a manner ensuring faircompetition and equal treatment of contractors.

2. Actions connected with the preparation and conduct of contract award procedures shall be performed bypersons ensuring impartiality and objectivity.

3. Contracts shall be awarded only to contractors chosen in accordance with the provisions of this Act.

Article 8.

1. Contract award procedures shall be public.

2. The awarding entity may limit the access to information connected with the award procedure only underthe circumstances specified in this Act.

Article 9.

1. Contract award procedures shall be conducted in writing, subject to the exceptions specified in this Act.

2. Contract award procedures shall be conducted in Polish.

3. In particularly justified cases the awarding entity may agree on the submission of a request to participatein contract award procedures, statements, tenders and other documents also in a language commonly used ininternational trade or in a language of the country in which the contract is awarded.

Article 10.

1. The primary procedures for awarding contracts are unlimited tendering and restricted tendering.

2. Awarding entities may award contracts by negotiated procedure with publication, negotiated procedurewithout publication, single-source procurement procedure, request-for-quotations procedure or byelectronic auction procedure only under the circumstances specified in this Act.

Chapter 3

Contract notices

Article 11.

1. Notices referred to in this Act, dispatched to the President of the Office and to the Office for OfficialPublications of the European Communities, shall be published in the Public Procurement Bulletin and in theOfficial Journal of the European Union respectively.

2. Notices dispatched to the President of the Office shall be published in the Public Procurement Bulletinwithin 10 days of their delivery to the Public Procurement Office, hereinafter referred to as the "Office".

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3. The President of the Procurement Office shall call upon parties to correct the contents of a noticepublished in the Public Procurement Bulletin if it fails to comply with the requirements laid down in theprovisions of the Act concerning notices or in the provisions of a regulation issued pursuant to paragraph 6thereof.

4. The President of the Office shall forthwith, on his own initiative or upon request of the awarding entity,correct, by means of an announcement published in the Public Procurement Bulletin, any errors in thenotice published in the Public Procurement Bulletin consisting in the nonconformity of that notice with thenotice submitted for publication by the awarding entity.

5. Upon request of the awarding entity, the President of the Procurement Office may in justified casespublish in the Public Procurement Bulletin a notice the publication of which is not mandatory due to thevalue of the contract.

6. The Prime Minister shall specify, by a regulation, the patterns of notices dispatched to the President ofthe Office and to the Office for Official Publications of the European Communities, taking intoconsideration the type of the notice and place of its publication and the value of the contract or contest.

Article 12.

1. Notices shall be sent to the President of the Office in writing, by fax or by electronic means using theform available on the website of the Office.

2. Notices shall be sent to the Office for Official Publications of the European Communities in writing, byfax or by electronic means of communication.

3. The awarding entity shall be required to prove the date on which the notice was sent to the President ofthe Office and the Office for Official Publications of the European Communities, and in particular tomaintain a proof of its dispatch.

Article 13.

1. The awarding entity, immediately following the approval or adoption of a financial plan according to theprovisions, statue or agreement that the awarding entity is obliged to follow and in the case of awardingentities who do not prepare financial plans - once a year, shall submit to the Office for Official Publicationsof the European Communities a prior information notice about procurements envisaged for the following 12months, the value of which:

1) for works - exceeds the expressed in PLN equivalent of EUR 5 000 000;

2) for supplies - calculated for the given group as specified in the Regulation 2195/2002 of the EuropeanParliament and the Council of 5 November 2002 concerning the Common Procurement Vocabulary (OJECL 340 of 16 December 2002, p. 1) hereinafter referred to as the "Common Procurement Vocabulary",exceeds the expressed in PLN equivalent of EUR 750 000;

3) for services - calculated for the given CPC category as specified in Annex 3 to the Common ProcurementVocabulary, exceeds the expressed in PLN equivalent of EUR 750 000.

2. The notice, referred to in paragraph 1, shall be dispatched to the President of the Office immediately afterits dispatch to the Office for Official Publications of the European Communities.

Title II

Award procedures

Chapter 1

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Awarding Entity and Contractors

Article 14.

Provisions of the Act of 23 April 1964 - the Civil Code (Journal of Law, Dz.U. of 1964 No 16 item 93 withfurther amendments) shall apply to actions undertaken by the awarding entity and contractors in the contractaward procedure, unless provisions of this Act provide otherwise.

Article 15.

1. Contract award procedures shall be prepared and conducted by the awarding entity.

2. The awarding entity may entrust the preparation or the conduct of award procedures to his ownorganisational unit or to a third party.

3. The entities referred to in paragraph 2 shall act as plenipotentiaries of the awarding entity.

Article 16.

1. Awarding entities may conduct a procedure and award a contract jointly by appointing from amongthemselves the awarding entity entitled to conduct an award procedure and award the contract on theirbehalf.

2. The Prime Minister may appoint, by a regulation, from among the subordinated organisational units thecompetent organisational unit with respect to the conduct of an award procedure and the award of contractson behalf of these bodies and units.

3. The Minister in charge of a section of the government administration may appoint by a regulation fromamong the subordinated organisational units a competent organisational unit with respect to the conduct ofan award procedure and the award of contracts on behalf of these units.

4. A unit of territorial self-government executive body may appoint by a regulation from among thesubordinated local government organisational units the competent organisational unit with respect to theconduct of an award procedure and the award of contracts on behalf of these units.

5. Provisions relating to the awarding entity shall apply respectively to the awarding entities referred to inparagraph 1.

Article 17.

1. Persons performing actions in connection with the conduct of award procedures shall be subject toexclusion, if:

1) they are competing for a contract;

2) they are relatives by marriage, blood or affinity in direct line or relatives by blood or affinity in indirectline up to the second degree, or relatives by adoption or guardianship or tutelage with the contractor, hislegal deputy or members of managing or supervisory bodies of contractors competing for a contract;

3) during the three years prior to the date of the start of the contract award procedure they remained in arelationship of employment or service with the contractor or were members of managing or supervisorybodies of contractors competing for a contract;

4) remain in such legal or actual relationship with the contractor, which may raise justified doubts as to theirimpartiality;

5) have been legally sentenced for an offence committed in connection with contract award procedures,bribery, offence against economic turnover or any other offence committed with the aim of gaining financial

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profit,

2. Persons performing actions in connection with a contract award procedure shall provide a writtenstatement, under the pain of penal liability for making false statements, about the absence or existence of thecircumstances referred to in paragraph 1.

3. Actions in connection with the contract award procedure undertaken by a person subject to exclusionafter they became aware of the circumstances referred to in paragraph 1 shall be repeated, except for theopening of tenders and other factual actions having no influence on the outcome of the procedure.

Article 18.

1. The head of the awarding entity shall be the person responsible for the preparation and conduct of thecontract award procedure.

2. Other persons shall be also responsible for the preparation and conduct of the contract award procedureto the extent to which they have been entrusted with actions related to the conduct and preparation of thecontract award procedure. The head of the awarding entity may entrust the performance of actions reservedfor him, which are specified in this Chapter, to the employees of the awarding entity.

3. Where the preparation and conduct of the contract award procedure is reserved under separate provisionsto a body other than the head of the awarding entity, the provisions relating to the head of the awardingentity shall apply to that body respectively.

Article 19.

1. The head of the awarding entity shall appoint a tender committee for the conduct of an award procedure,hereinafter referred to as the "tender committee", where the contract value exceeds the equivalent expressedin PLN of EUR 60 000.

2. Where the contract value does not exceed the expressed in PLN equivalent of EUR 60 000 head of theawarding entity may appoint a tender committee. The provisions of this Chapter shall apply accordingly.

3. Tender committee may be of a permanent character or be appointed for a particular procedure.

Article 20.

1. The tender committee is a team ancillary to the head of the awarding entity appointed to evaluate thefulfilment of the conditions for participation by contractors in a contract award procedure and to examineand evaluate tenders.

2. The head of the awarding entity may also entrust the tender committee with actions related to the conductand preparation of a contract award procedure other than those specified in paragraph 1. The provisions ofthis Chapter shall apply accordingly.

3. The tender committee shall, in particular, submit to the head of the awarding entity proposals to exclude acontractor, reject a tender and to select the most advantageous tender, and also, to the extent referred to inparagraph 1, shall make a request to cancel the contract award procedure.

Article 21.

1. Members of the tender committee shall be appointed and recalled by the head of the awarding entity.

2. The tender committee shall be composed of at least 3 persons.

3. The head of the awarding entity shall specify the organisation, composition, working procedure andscope of duties of members of the tender committee to ensure its efficient operation, individualisation ofresponsibility of its members for performed actions and transparency of its work.

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4. If the performance of specific actions in connection with the preparation and conduct of a contract awardprocedure requires special knowledge, the head of the awarding entity may at his own initiative or uponrequest of the tender committee appoint experts. The provisions of Article 17 shall apply accordingly.

Article 22.

1. Eligible to compete for a contract shall be contractors who:

1) are authorised to perform specific activities or actions, if such authorisations are required by the law;

2) have the necessary knowledge, experience and technical capacity and have also persons able to performthe contract;

3) are in a financial and economic situation ensuring the performance of the contract;

4) are not liable to exclusion from the award procedure.

2. The awarding entity shall not specify conditions for participation in the contract award procedure in amanner restricting fair competition.

Article 23.

1. Contractors may compete for a contract jointly.

2. In the event referred to in paragraph 1, contractors shall appoint a plenipotentiary to represent them in thecontract award procedure or in the procedure and conclusion of a public procurement contract.

3. The provisions relating to contractors shall apply respectively to the contractors referred to in paragraph1.

Article 24.

1. Excluded from contract award procedures shall be:

1) contractors who during the past 3 years prior to the start of the procedure caused damage by failing toperform a contract or by performing a contract improperly and the damage has not been voluntarilyremedied by the date of the start of the procedure, unless non-performance or improper performance wasthe result of circumstances beyond the contractor's responsibility;

2) contractors against whom bankruptcy proceedings have been commenced or whose bankruptcy has beendeclared;

3) contractors who are in arrears with payment of taxes, charges or social insurance or health insurancepremiums, with the exception of cases where they have been legally exempted, their outstanding paymentshave been deferred or divided into instalments or the execution of a decision of a competent authority hasbeen stopped in its entirety;

4) natural persons, who have been validly sentenced for an offence committed in connection with a contractaward procedure, for bribery, for an offence against economic trade or for any other offence committed withthe aim of gaining financial profits;

5) registered partnerships whose partner has been validly sentenced for an offence committed in connectionwith a contract award procedure, for bribery, for an offence against economic trade or for any other offencecommitted with the aim of gaining financial profits;

6) professional partnerships whose partner or member of the management board has been validly sentencedfor an offence committed in connection with a contract award procedure, for bribery, for an offence against

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economic trade or for any other offence committed with the aim of gaining financial profits;

7) limited partnerships and limited joint-stock partnerships whose general partner has been validlysentenced for an offence committed in connection with a contract award procedure, for bribery, for anoffence against economic trade or for any other offence committed with the aim of gaining financial profits;

8) legal persons whose active member of the managing body has been validly sentenced for an offencecommitted in connection with a contract award procedure, for bribery or any other offence committed withthe aim of gaining financial profits;

9) collective entities, with respect to whom a court has issued a decision prohibiting them from competingfor contracts under the provisions concerning the liability of collective entities for tort under the liability topenalty;

10) contractors who fail to comply with the conditions for participation in an award procedure referred to inArticle 22 paragraph 1 items 1-3.

2. Excluded from contract award procedures shall also be:

1) contractors who performed actions in connection with the preparation of the conducted procedure orwhile preparing a tender used persons performing those actions, with the exception of the authors of localplans of spatial development, if the object of the contract consist of design works resulting from local plansof spatial development prepared by those authors;

2) contractors who provided false information having impact on the outcome of the procedure beingconducted;

3) contractors who have not submitted a statement about the fulfilment of the conditions for participation inthe procedure or documents confirming the fulfilment of those conditions;

4) contractors who have not provided a tender deposit, including the one for the extended period duringwhich they must maintain their tenders or have not agreed to the extension of the period during which theymust maintain their tenders.

3. The awarding entity shall forthwith notify the contractor about exclusion from the award procedureproviding factual and legal grounds.

4. The tender of an excluded contractor shall be considered rejected.

Article 25.

In contract award procedures the awarding entity may request from contractors only documents necessary toconduct a procedure, specified in the notice, specification of essential terms of the contract or invitation tosubmit tenders.

Article 26.

1. Where the value of the contract exceeds the expressed in PLN equivalent of EUR 60 000, the awardingentity shall request from the contractors documents proving that they satisfy the conditions for participationin the procedure.

2. Where the value of the contract does not exceed the expressed in PLN equivalent of EUR 60 000, theawarding entity may request from the contractors documents proving that they satisfy the conditions forparticipation in the procedure.

3. The awarding entity shall call upon contractors to supplement, within a specified time limit, thedocuments submitted to confirm compliance with conditions for participation in the procedure where failureto do so would result in the cancellation of the procedure.

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4. The Prime Minister shall specify by a regulation the types of documents which the awarding entity mayrequire from contractor to confirm compliance with conditions for participation in a contract awardprocedure, taking into consideration cases where instead of a document confirming compliance with theseconditions the contractor may provide with the awarding entity with a declaration made before a competentauthority and cases where the contractor may prove his lack of criminal record by means of informationfrom the National Criminal Register.

Article 27.

1. In contract award procedures where the contract value exceeds the expressed in PLN equivalent of EUR60 000, statements, requests, notifications and other information supplied by the awarding authority andcontractors shall be made in writing.

2. Statements, requests, notifications and information communicated by telex, fax or electronic means bedeemed as delivered within the time limit if their content was received by the addressee prior to theexpiration of the time limit and was immediately confirmed in writing.

Article 28.

1. In contract award procedures where the contract value does not exceed the expressed in PLN equivalentof EUR 60 000, statements, requests, notifications and other information shall be delivered by the awardingentity and contractors, according to the choice of the awarding entity, in writing, by fax or by electronicmeans.

2. Where the awarding entity or contractor deliver the information referred to in paragraph 1 by fax or byelectronic means, each of the parties shall upon request of the other forthwith acknowledge their receipt inthe same manner.

3. The chosen method of delivering information and documents by electronic means shall not restrictcompetition.

Chapter 2

Preparation of a procedure

Article 29.

1. The object of the contract should be described in an unequivocal and exhaustive manner by means ofsufficiently precise and comprehensive wording, taking into consideration all requirements andcircumstances which could influence the preparation of a tender.

2. The object of the contract shall not be described in a manner which could restrict fair competition.

3. The object of the contract shall not be described by reference to trade marks, patents or origin unless thisis justified by the nature of the object of the contract or where the awarding authority cannot otherwisedescribe the object of the contract with sufficient precision, provided that the references are accompaniedby the words "or equivalent" or other words of similar meaning.

Article 30.

1. The awarding entity shall describe the object of contract using technical and qualitative characteristics,observing Polish Norms transposing European harmonised norms.

2. In the absence of Polish Norms transposing European harmonised norms, the following norms shall betaken into consideration:

1) European technical approvals;

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2) common technical specifications; 3) Polish Norms transposing European norms; 4) norms of EU Member States transposing European harmonised norms; 5) Polish Norms implementing international norms; 6) Polish Norms; 7) Polish technical approvals. 3. The awarding entity may depart from describing the object of contract using Polish norms transposingEuropean harmonised norms, European technical approvals or common technical specifications if:

1) they do not include any requirements concerning assurance of conformity with the essentialrequirements;

2) their application would oblige the awarding entity to use products that are incompatible with theequipment already in use, or

3) their application would be inappropriate due to the innovative nature of the object of contract.

4. Names and codes specified in the Common Procurement Vocabulary shall be used to describe the objectof the contract.

Article 31.

1. The awarding entity shall describe the object of a public works contract using design documentation andtechnical specification of the execution and acceptance of works.

2. Where the object of contract involves the design and execution of works within the meaning of the Act of7 July 1994 - Construction Law, the awarding entity shall describe the object of the contract using afunctional and utility programme.

3. The functional and utility programme shall include the description of the works where the designation ofthe finished works, as well as the technical, economic, architectural, material and functional requirements tobe complied with, are indicated.

4. The competent Minister in the field of construction, spatial development and housing shall specify by aregulation the detailed scope and form of:

1) design documentation, 2) technical specification of the execution and acceptance of works, 3) functional and utility programme - having regard to the type of works, as well as the names and codes of the Common ProcurementVocabulary.

Article 32.

1. The value of the contract shall be determined on the basis of the total estimated remuneration of thecontractor, excluding the tax on goods and services, determined by the awarding entity with due diligence.

2. The awarding entity may not split up a contract into lots or understate its value with the intention ofavoiding the application of this Act.

3. Where the awarding entity envisages the award of supplementary contracts referred to in Article 67paragraph 1 item 6 and 7, supplementary contracts shall be considered in the calculation of the value of thecontract.

4. If the awarding entity allows for the possibility of submitting tenders for lots or awards the contract inlots, where each of those lots constitutes the object of a separate procedure, the value of the contract shallbe the aggregate value of all those lots.

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5. Where a separate, financially independent organisational unit of the awarding entity awards a contract inconnection with its own activities, the value of the awarded contract shall be calculated separately from thevalue of contracts awarded by other financially independent organisational units of that awarding entity.

Article 33.

1. The value of public works contract shall be determined on the basis of:

1) investor's cost calculation, made at the stage of preparation of the design documentation, or on the basisof the envisaged cost of works specified in the functional and utility programme - where the object of thecontract involves works within the meaning of the Act of 7 July 1994 Construction Law;

2) envisaged cost of design work and the envisaged cost of works specified in the functional-utility program- where the object of the contract involves the design and execution of works within the meaning of the Actof 7 July 1994 Construction Law;

2. In calculating the value of a public works contract, the contract value must include also the value ofsupplies needed to carry out the works, which the awarding entity makes available to the contractor.

3. The competent Minister in the field of construction, spatial development and housing shall specify by aregulation:

1) methods and basis for preparing investor's cost calculations; 2) methods and basis for calculation of envisaged costs of design work and envisaged costs of worksspecified in the functional and utility programme; - taking into consideration technical, technological andorganisational data which influence the contract value.

Article 34.

1. The basis for determining the value of a contract for services and supplies delivered periodically shall be,according to the choice of the awarding entity:

1) the aggregate value of contracts for services of the same category or supplies of the same group specifiedin the Common Procurement Vocabulary, awarded during the previous 12 months or during the precedingbudgetary year, taking account of the quantitative changes in the contracted supplies or services and of theforecasted annual average price increase index for consumer goods and services for a given year, or 2) the aggregate value of contracts the awarding entity intends to award over the 12 months following thefirst service or supply, or during the execution of a public procurement contract, if its duration exceeds 12months.

2. The choice of the basis for calculating the value of contracts for recurring services or supplies shall notbe made with the aim of avoiding the application of the provisions of this Act.

3. Where the contract, referred to in paragraph 1, is awarded for an indefinite duration, the basis forcalculating the contract value shall be the value determined in accordance with paragraph 1, taking accountof the 48 month time period for the performance of the contract.

4. Where the contract covers banking services or other financial services, the value of the contract shall bebanking fees, charges, interests and other similar services.

5. Where the contract for services or supplies provides for option clauses, the basis for calculating thecontract value shall be the biggest possible scope of that contract inclusive of the option clauses.

Article 35.

1. The contract value shall be calculated not earlier than 3 months prior to the date of the start of a contractaward procedure where the object of the contract covers supplies or services and not earlier than 6 monthsprior to the date of the start of a contract award procedure in the case of works.

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2. If the circumstances having influence on the calculation of the contract have changed after thatcalculation was made, the awarding entity shall make a change in the calculation prior to the start of theaward procedure.

3. At least once every two years the Prime Minister shall specify, by a regulation, the average exchange rateof PLN with reference to EUR constituting the basis for recalculating the value of contracts, taking intoaccount the average exchange rate announced by the National Bank of Poland within the previous 24months.

Article 36.

1. The specification of essential terms of the contract shall include at least:

1) name (company name) and address of the awarding entity; 2) procedure for awarding the contract; 3) description of the object of contract; 4) description of lots, where the awarding entity allows tenders for lots; 5) information concerning envisaged supplementary contracts referred to in Article 69 paragraph 1 items 6and 7; 6) description of the manner of presenting variants and minimum conditions which the variants must satisfywhere the awarding entity allows variants; 7) contract execution date; 8) description of the conditions for participation in the procedure and the description of the method used forthe evaluation of the fulfilment of those conditions; 9) information concerning declarations and documents to be supplied by contractors to confirm thefulfilment of the conditions for participation in the procedure; 10) information on the manner of communication between the awarding entity and contractors as well as ofdelivery of declarations and documents, including the awarding entity's e-mail or website, where theawarding entity admits electronic communication; 11) persons authorised to communicate with contractors; 12) deposit requirements; 13) time limit during which a contractor must maintain his tender; 14) description of how to prepare tenders; 15) date and place of submission and opening of tenders; 16) description of price calculation; 17) information concerning foreign currencies in which settlements between the awarding entity andcontractors can be made; 18) description of criteria which the awarding entity will apply in selecting a tender, specifying also theimportance of particular criteria and method of evaluation of tenders; 19) information concerning formalities which should be arranged following the selection of a tender inorder to conclude a public procurement contract; 20) requirements concerning the security on due performance of the contract; 21) provisions of essence to the parties which will be introduced into the concluded public procurementcontract, general terms of the contract or model contract, if the awarding entity requires from contractors toconclude a public procurement contract with him on these terms; 22) information on law enforcement measures available to a contractor during the contract award procedure.

2. In contract award procedures where the value of the contract does not exceed the expressed in PLNequivalent of EUR 60 000, specification of essential terms of the contract may not include information,referred to in paragraph 1 items 12, 17, 19 and 20.

3. The awarding entity shall request the contractors to indicate in their tenders the share of the contract theyintend to sub-contract.

4. The awarding entity may indicate in the specification of essential terms of the contract, the share of thecontract which shall not be sub-contracted.

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Article 37.

Specification of essential terms of the contract shall be made available free-of-charge, subject to Article 42paragraph 2.

Article 38.

1. The contractor may request the awarding entity to explain the contents of the specification of the essentialterms of the contract. The awarding entity shall be obliged to provide explanations forthwith, unless therequest for explanation of the contents of the specification was received by the awarding entity less than 6days prior to the deadline for submission of tenders.

2. The awarding entity shall communicate the contents of the explanation simultaneously to all contractorswho received the specification of essential terms of the contract without disclosing the source of the query.

3. The awarding entity may call a meeting of all contractors to explain any doubts concerning thespecification of essential terms of the contract; in such a case the awarding entity shall prepare theinformation covering all the queries concerning the specification of essential terms of the contract asked atthe meeting and answers thereto, without disclosing the sources of these queries. The information from themeeting shall be delivered immediately to the contractors who received the specification of essential termsof the contract.

4. In particularly justified cases the awarding entity may, at any time prior to the deadline for the submissionof tenders, modify the specification of essential terms of the contract. Any modification made in this mannershall be immediately communicated to all the contractors.

5. The modification of the specification of essential terms of the contract shall not apply to the criteria forevaluation of tenders, subject to Article 58.

6. The awarding entity shall extend the time limit for submission of tenders to allow contractors to includechanges in their tenders resulting from the modification of the specification of the essential terms of thecontract in their tenders, taking into account the length of period necessary to include these changes.

7. Where the value of a contract for works exceeds expressed in PLN equivalent of 5 000 000 EUR, and inthe case of supplies or services - 130 000 EUR, the period necessary to include changes in the tenders shallbe at least 7 days.

Chapter 3

Procedures for awarding public contracts

Section 1Open tendering

Article 39.

Open tendering means contract award procedures in which, following a public contract notice, all interestedcontractors may submit their tenders.

Article 40.

1. In open tendering the awarding entity commences an award procedure by placing the contract notice in aplace accessible to the public in its seat and on its website, if has its own website.

2. Where the value of the contract exceeds the expressed in PLN equivalent of EUR 60 000, the awardingentity shall dispatch a contract notice to the President of the PPO.

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3. Where the value of a contract for works exceeds the expressed in PLN equivalent of EUR 5 000 000, andin the case of supplies or services - EUR 130 000, the awarding entity shall dispatch a contract notice to theOffice for Official Publications of the European Communities. Immediately after its dispatch to the Officefor Official Publications of the European Communities the awarding entity shall dispatch the contract noticealso to the President of the PPO.

4. Where the value of a contract for works exceeds the expressed in PLN equivalent of EUR 10 000 000,and in the case of supplies or services - EUR 5 000 000, the awarding entity shall place a contract notice ina national daily or periodical.

5. The awarding entity may also publish a contract notice in any other manner.

6. The contract notice placed or published, as appropriate, in a place accessible to the public in the seat ofthe awarding entities, on websites referred to in paragraph 1, in a national daily or periodical or in any othermanner:

1) shall not be placed or published prior to the date of its dispatch to the President of the PPO, and in thecase referred to in paragraph 3, to the Office for Official Publications of the European Communitiesrespectively;

2) shall not contain information other than that dispatched to the President of the PPO, and in the casereferred to in paragraph 3, to the Office for Official Publications of the European Communities;

3) shall contain information concerning the date of its dispatch to the President of the PPO, and in the casereferred to in paragraph 3, to the Office for Official Publications of the European Communities.

Article 41.

The contract referred to in Article 40 paragraph 1 shall contain at least:

1) name (company name) and address of the awarding entity; 2) type of the contract award procedure; 3) manner of obtaining the specification of essential terms of the contract, as well as the price of thespecification where it is made available on condition of payment; 4) description of the object of the contract providing information concerning the possibility of submittingtenders for lots; 5) information concerning the possibility of submitting variants; 6) contract execution date; 7) description of the conditions for participation in the award procedure as well as description of howcompliance with these conditions is evaluated; 8) information concerning the deposit; 9) criteria for evaluation of tenders and their significance; 10) place and time limit for submission of tenders; 11) time limit during which a contractor must maintain his tender.

Article 42.

1. The awarding entity shall dispatch the specification of essential terms of the contract to the contractor notlater than within 5 days from the date of the submission of request for its dispatch.

2. The price asked for the specification of essential terms of the contract shall cover only the cost of its printand dispatch.

Article 43.

1. Where the value of the contract does not exceed the expressed in PLN equivalent of EUR 60 000, theawarding entity shall fix the time limit for submission of tenders taking into consideration the time neededto prepare and submit a tender, however, this time limit shall not be less than 15 days from the date of the

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publication of the notice.

2. Where the value of the contract exceeds the expressed in PLN equivalent of EUR 60 000, the time limitfor submission of tenders shall be not less than 52 days from the date of dispatch of the notice to thePresident of the PPO.

3. Where the value of the contract for works exceeds the expressed in PLN equivalent of EUR 5 000 000,and for supplies and services - EUR 130 000, the time limit for submission of tenders shall be not less than52 days from the date of dispatch of the notice to the Office for Official Publications of the EuropeanCommunities.

4. In the cases referred to in paragraphs 2 and 3 the awarding entity may fix a time limit for submission oftenders which shall not be less than 37 days, where the information concerning this contract was given in aprior information notice about procurement envisaged for the next 12 months dispatched at least 52 daysprior to the date of dispatch of the contract notice to: 1) the President of the PPO; 2) the Office for Official Publications of the European Communities.

Article 44.

The contractor shall attach to his tender a declaration that he satisfies the conditions for participation in theaward procedure, and where the awarding entity requires so, he shall also submit documents confirming thefulfilment of those conditions.

Article 45.

1. The awarding entity shall require the contractors to pay a deposit where the value of the contract exceedsthe expressed in PLN equivalent of EUR 60 000.

2. Where the value of the contract is less than the expressed in PLN equivalent of EUR 60 000, theawarding entity may require the contractors to pay a deposit.

3. The deposit shall be paid prior to the final date for submission of tenders.

4. The awarding entity shall define the amount of the deposit within the limit of 0.5 to 3 % of the contractvalue.

5. Where the awarding entity admits tenders for lots, they shall specify the amount of a deposit for each lot.The provisions of paragraph 4 shall apply accordingly.

6. The deposit may be paid in one or several of the following forms: 1) cash; 2) bank sureties; 3) bank guarantees; 4) insurance guarantees; 5) sureties given by entities, referred to in Article 6 paragraph 3 item 4 letter b of the Act of 9 November2000 on the establishment of the Polish Agency for Entrepreneurship Development (Dz.U. No 109 item1158 and of 2002 No 25 item 253, No 66 item 596 and No 216 item 1824).

7. A deposit paid in cash shall be paid by a bank transfer to a bank account indicated by the awarding entity.

8. A deposit paid in cash shall be kept by the awarding entity in a bank account.

Article 46.

1. The awarding entity shall return a deposit forthwith, if: 1) the time limit during which the contractor must maintain his tender has expired;

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2) the public procurement contract has been concluded and the security on due performance of this contracthas been provided; 3) the awarding entity cancelled the contract award procedure and any protests have been ultimatelyresolved or the time limit for the submission thereof has expired.

2. The awarding entity shall forthwith return the deposit upon request of the contractor: 1) who withdrew his tender prior to the expiry of the time limit for submission of tenders; 2) who was excluded from the procedure; 3) whose tender was rejected.

3. Submission of a request to return the deposit by a contractor whose tender was rejected or who wasexcluded from the procedure shall be equivalent to a waiver by the contractor of the right to lodge a protest.

4. If the deposit was paid in cash, the awarding entity shall return it together with interest resulting from thebank account agreement where it was kept, less the cost of bank charges for maintaining the account andcommission for the transfer of money to the bank account indicated by the contractor.

5. The awarding entity shall retain the deposit together with interest, if the contractor whose tender has beenselected:

1) refused to sign the public procurement contract on the terms specified in the tender; 2) failed to produce the required security on due performance of the contract; 3) the public procurement contract could not be signed due to a fault on the part of the contractor.

Section 2

Restricted tendering

Article 47.

Restricted tendering means contract award procedures in which, following a public contract notice,contractors submit requests to participate in a contract award procedure, and tenders may be submitted bycontractors invited to submit their tenders.

Article 48.

1. Article 40 shall apply to the start of a restricted procedure.

2. The contract notice referred to in Article 47 shall include at least the following: 1) name (company name) and address of the awarding entity; 2) type of contract award procedure; 3) description of the object of the contract providing information concerning the possibility of submittingtenders for lots; 4) information concerning the possibility of submitting variants; 5) contract execution date; 6) description of the conditions for participation in the award procedure, including the relative importanceattached to each of those conditions and description of manner of evaluation of the fulfilment of thoseconditions; 7) information about declarations and documents to be delivered by contractors to prove the fulfilment ofthe conditions for participation in the award procedure; 8) number of contractors to be invited to submit their tenders; 9) information on a deposit; 10) criteria for evaluation of tenders and their relative weightings; 11) place and time limit for submitting requests to participate in the award procedure.

Article 49.

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1. Where the contract value does not exceed the equivalent in PLN of EUR 60 000, the awarding entityshall fix a time limit for submission of requests to participate in tendering in the contract notice, taking intoconsideration the time necessary to prepare and submit the required documents, however, the time limitshall not be less than 15 days from the date of the publication of the notice.

2. Where the contract value exceeds the equivalent in PLN of EUR 60 000, the time limit for submission ofrequests to participate in tendering shall not be less than 37 days from the date of dispatch of the contractnotice to the President of the PPO.

3. Where the contract value exceeds the equivalent in PLN of EUR 5 000 000 for works, and of EUR 130000 for supplies and services - the time limit for submission of requests to participate in tendering shall notbe less than 37 days from the date of dispatch to the Office for Official Publications of the EuropeanCommunities of the contract notice.

4. In the event of an extreme urgency for the award of a contract the awarding entity may, in the casesreferred to in paragraphs 2 and 3, fix a shorter time limit for the submission of requests to participate in thetender, however, not less than 15 days. In such cases the notice shall be dispatched to the President of thePPO by a fax or by means of a form available on the website of the PPO, and to the Office for OfficialPublications of the European Communities - by fax or electronic means.

Article 50.

The contractor shall attach to his request to participate in tendering a declaration that he satisfies theconditions for participation in the award procedure, and where the awarding entity requires so, he shall alsosubmit documents confirming the fulfilment of those conditions.

Article 51.

1. The awarding entity shall invite tenders from contractors satisfying the conditions for participation in theprocedure in such a number, as specified in the contract notice, which shall ensure competition and shall notbe less than 5 and not more than 20.

2. Where the number of contractors satisfying the conditions for participation in the procedure exceeds thenumber specified in the contract notice, the awarding entity shall invite tenders from those contractors whosatisfy the most the conditions for participation in the procedure.

3. Where the number of contractors satisfying the conditions for participation in the procedure is less thanspecified in the contract notice, the awarding entity shall invite all contractors satisfying those conditions tosubmit tenders.

4. The awarding entity shall dispatch to the contractor the specification of essential terms of the contracttogether with the invitation to tender and shall indicate the date and place of publication of the contractnotice referred to in Article 47. The provisions of Article 36 paragraph 1 items 8 and 9 shall not apply.

Article 52.

1. Where the contract value does nor exceed the equivalent in PLN of EUR 60 000, the awarding entityshall fix a time limit for submission of tenders taking into consideration the time necessary to prepare andsubmit a tender, however, this shall not be less than 7 days from the date of dispatch of the invitation totender.

2. Where the contract value exceeds the equivalent in PLN of EUR 60 000, the time limit for submission oftenders shall not be less than 40 days from the date of dispatch of the invitation to tender.

3. In the cases referred to in paragraph 2 the awarding entity may fix a time limit for submission of tenderswhich shall not be less than 26 days, if the information about this contract was included in a priorinformation notice about procurements envisaged for 12 months, dispatched at least 52 days prior to thedate of the dispatch of the contract notice to:

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1) President of the PPO; 2) Office for Official Publications of the European Communities - where the contract value exceeds theequivalent in PLN of EUR 130 000 for supplies and services, and of EUR 5 000 000 for works.

4. In the event of an extreme urgency for the award of a contract the awarding entity may, in the casesreferred to in paragraph 2, fix a shorter time limit for submission of tenders, which shall not, however, beless than 10 days.

Article 53.

The provisions of Article 45 and 46 shall apply to restricted tendering.

Section 3

Negotiated procedure with publication

Article 54.

Negotiated procedure with publication means contract award procedures in which, following a publicnotice, the awarding entity shall negotiate the terms of the public contract with contractors of his choice andshall subsequently invite them to submit their tenders.

Article 55.

1. The awarding entities may award their contracts by negotiated procedure with publication, if at least oneof the circumstances below has occurred: 1) during the prior award procedure under open or restricted tendering no tenders have been submitted orall the tenders have been rejected and the original terms of the contract are not substantially altered; 2) in exceptional circumstances, where the object of the contract is works or services, the nature of which orthe risks attaching to them do not permit prior pricing; 3) the specific characteristics of the services to be procured cannot be established in advance in such a wayso as to enable the choice of the best tender; 4) the object of the contract is works carried out purely for the purpose of research, experiment ordevelopment, and not to provide profits or to recover research and development costs incurred; 5) the contract value does not exceed the equivalent in PLN of EUR 60 000.

2. Where the contract value exceeds the equivalent in PLN of EUR 10 000 000 for works and of EUR 5 000000 for supplies and services, the use of the negotiat

Article 56.

1. Article 40 shall apply as appropriate to the start of negotiated procedure with publication.

2. The contract notice referred to in Article 54 shall include at least:

1) name (company name) and address of the awarding entity; 2) indication of a contract award procedure and legal basis thereof; 3) description of the object of the contract, including information about the possibility ofsubmitting tender for lots; 4) information concerning the possibility of submitting variants; 5) contract completion date; 6) description of the conditions for participation in the procedure, including their weightings, anddescription of the manner of evaluating compliance with these conditions; 7) information about declarations and documents which shall be delivered by contractors toconfirm the fulfilment of the conditions for participation in the procedure; 8) number of contractors who will be invited to negotiate; 9) information concerning a deposit; 10) criteria for evaluation of offers and their weightings; 11) place and time limit for submitting requests to participate in the procedure.

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3. Article 49 and 50 shall apply as appropriate to the submission of requests to participate in the negotiatedprocedure with publication.

Article 57.

1. The awarding entity shall invite to negotiate contractors who satisfy the conditions for participation in theprocedure in a number specified in the contract notice, which shall ensure competition and shall not be lessthan 5. Where the contract value exceeds the equivalent in PLN of EUR 10 000 000 for works, and of EUR5 000 000 for supplies and services, this number shall not be less than 7. 2. Where the number of contractors who satisfy the conditions for participation in the procedure exceeds thenumber specified in the contract notice, the awarding entity shall invite tenders from those contractors whosatisfy to more extent the conditions for participation in the procedure. 3. Where the number of contractors who satisfy the conditions for participation in the procedure is less thanthat specified in the contract notice, the awarding entity shall invite tenders from all contractors satisfyingthose conditions. 4. The awarding entity shall dispatch to the contractor the specification of essential terms of the contracttogether with the invitation to tender. The provisions of Article 36 paragraph 1 items 5, 8 , 9, 13 and 15shall not apply. 5. All requirements, explanations and information, as well as documents related to the negotiations shall bedelivered to contractors on equal terms. 6. Conducted negotiations shall be confidential. No party shall disclose technical and commercialinformation connected with the negotiations without the consent of the other.

Article 58.

The awarding entity may prior to the invitation to tender modify the technical and qualitative requirementsrelating to the object of the contract defined in the specification of essential terms of the contract, as well aschange the criteria for evaluation of tenders and their weightings.

Article 59.

1. The awarding entity shall invite to submit tenders contractors who participated in the negotiations. 2. In the invitation to tender the awarding entity shall inform the contractors about:

1) date and place of publication of the contract notice referred to in Article 54; 2) any changes in the specification of essential terms of the contract, 2) place and time limit for submission of tenders and for the opening of tenders; 3) payment of deposit; 4) time limit during which a contractor must maintain his tender.

3. The awarding entity shall fix a time-limit for submission of tenders taking account of the time necessaryto submit a tender, which shall not, however, be less than 10 days from the date of the dispatch of theinvitation to submit tenders.

Article 60.

The provisions of Article 45 and 46 shall apply to negotiations with publication.

Section 4Negotiated procedure without publication Article 61.

Negotiated procedure without publication means contract award procedures in which the awarding entitynegotiates the terms of the contract with contractors of his choice and subsequently invites them to submittheir tenders.

Article 62.

1. The awarding entities may award their contracts by negotiated procedure without publication, if at least

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one of the following circumstances has occurred:

1) during the prior award procedure under open or restricted tendering no tenders have beensubmitted or all the tenders have been rejected and the original terms of the contract are notsubstantially altered; 2) the contest referred to in Article 99 has been held, the prize of which consisted in the invitationof at least two authors of the selected contest projects to participate in negotiations withoutpublication; 3) the object of the contract is products manufactured purely for the purpose of research,experiment or development, and not to provide profits or to recover research or development costsincurred; 4) due to a previously unforeseeable extreme urgency for the award of a contract not resulting fromthe events brought about by the awarding entity, the time limits provided for open tendering,restricted tendering or negotiations with publication may not be observed.

2. Where the contract value exceeds the equivalent in PLN of EUR 60 000, the use of the negotiatedprocedure without publication requires prior consent of the President of the PPO by administrative decision.

3. Where the contract value exceeds the equivalent in PLN of EUR 5 000 000 for works and of EUR 130000 for supplies and services, the use of the negotiated procedure without publication on the basis ofparagraph 1 item 1 requires also prior dispatch of information about the cancellation of the procedure to theEuropean Commission.

Article 63.

1. The awarding entity shall commence a negotiated procedure without publication dispatching theinvitation to negotiate to contractors of his choice. 2. The invitation to negotiate without publication shall include at least:

1) name (company name) and address of the awarding entity; 2) description of the object of the contract including information concerning the possibility ofsubmitting tender for lots; 3) information concerning the possibility of submitting variants; 4) contract completion date; 5) description of conditions for participation in the procedure and the manner of evaluatingcompliance with these conditions; 6) indication of a contract award procedure and legal basis thereof; 7) criteria for evaluation of tenders and their weightings; 8) place and time limit for negotiations with the awarding entity.

3. The awarding entity shall invite to negotiate a sufficient number of contractors to ensure competition,which shall not be less than 5, and where the contract value exceeds the equivalent in PLN of EUR 10 000000 for works and of EUR 5 000 000 for supplies and services, this number shall not be less than 7, unlessdue to a very specialist nature of the contract there are less contractors capable of performing the contract,however the number shall not be less than 2. 4. In the case referred to in Article 62 paragraph 1 item 1 the awarding entity shall invite to negotiate atleast those contractors who submitted tenders under open or restricted tendering. The provisions ofparagraph 3 shall apply.

Article 64.

1. The awarding entity shall fix a time limit for submission of tenders taking account of the time necessaryto prepare and submit a tender. 2. When inviting to tender the awarding entity may require contractors to provide a deposit. The provisionsof Article 45 paragraphs 3-8 and Article 46 shall apply accordingly. 3. The awarding entity shall dispatch the specification of the essential terms of the contract together with theinvitation to tender. The provisions of Article 36 paragraph 1 item 5 shall not apply.

Article 65.

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The provisions of Article 57 paragraph 5 and 6, Article 58 and Article 59 paragraph 1 and 2 shall apply asappropriate to negotiations without publication.

Section 5Single-source procurementArticle 66.

Single-source procurement means contract award procedures in which the awarding entity awards a contractafter having negotiated with only one contractor.

Article 67.

1. The awarding entities may award their contracts by single-source procurement procedure only if at leastone of the following circumstances has occurred:

1) supplies, services or works may be provided by only one contractor: a) for technical reasons of objective character;b) for reasons connected with protection ofexclusive rights, resulting from separate provisions; c) in the case of the award of contracts in the field of creative and artistic activities;

2) the contest referred to in Article 99, in which the prize consisted in the invitation for the authorof the selected contest project to negotiate under the single-source procurement procedure; 3) due to an exceptional situation, not resulting from events brought about by the awarding entity,there is a need for prompt execution of the contract, and the time limits provided for otherprocedures may not be observed; 4) during successive award procedures of which at least one was conducted under open orrestricted tendering no tenders have been submitted or all the tenders have been rejected and theoriginal terms of the contract have not been substantially altered; 5) where a hitherto contractor of services or works is awarded additional contracts not included inthe main contract, which in total do not exceed 20% of the value of that contract, are necessary forits proper performance and their execution became necessary as a result of unforeseeablecircumstances, if :

a) for technical or economic reasons the separation of an additional contract from themain contract would require incomparably high costs to be incurred, b) the completion of the main contract is conditional upon the performance of theadditional contract;

6) in the case of the award, within 3 years of the award of the main contract, to the hithertocontractor of services or works, of supplementary contracts constituting not more than 20% of themain contract value and involving the repetition of the same type of contracts, if the main contractwas awarded under the open or restricted tendering procedure and the supplementary contract wasprovided for in the specification of essential terms of the contract for the main contract andconcerns the object of the contract described therein; 7) in the case of the award, within 3 years of the award of the main contract, to the hithertocontractor of supplies, of supplementary contracts constituting not more than 20% of the maincontract value and involving the expansion of supplies, if the change of contractor would make itnecessary to purchase items of different technical parameters, what would result in technicalincompatibility or disproportionately serious technical difficulties in use and care, if the maincontract was awarded under the open or restricted tendering procedure and the supplementarycontract was provided for in the specification of essential terms of the contract for the maincontract and concerns the object of the contract described therein.

2. Where the contract value exceeds the equivalent in PLN of EUR 60 000, the use of single-sourceprocurement procedure requires prior consent of the President of the PPO by administrative decision. 3. The provisions of paragraph 2 shall not apply to contracts, where the object is:

1) supply of water via a water and sewage network system or disposal of sewage to this system; 2) supply of electricity from a power network; 3) supply of natural gas from the mains; 4) supply of heat from the heat network; 5) general postal services within the meaning of the Act of 12 June 2003- Postal Law (Dz.U. of2003 No 130 item 1188),

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6) railway transportation services.

4. In the case of contracts referred to in paragraph 3 the provisions of Article 19-21, 24, 26 paragraph 1 - 3and Article 68 shall not apply.

Article 68.

The contractor shall, at the latest upon the conclusion of a procurement contract, submit a declaration of thefulfilment of the conditions for participation in the procedure, and where the contract value exceeds theequivalent in PLN of EUR 60 000 also documents providing proof that these conditions have been met.

Section 6Request-for-quotationsArticle 69.

Request-for-quotations means contract award procedures in which the awarding entity sends a request-for-quotations to contractors of his choice and invites them to submit tenders.

Article 70.

The awarding entity may award a contract under the request-for-quotations procedure, if the object of thecontract are generally available supplies or services of fixed quality standards, while the contract value doesnot exceed the equivalent in PLN of EUR 60 000.

Article 71.

1. The awarding entity shall commence a request-for-quotations procedure by inviting such a number ofcontractors, providing supplies or services being the object of the contract within the framework of theirconducted business activities, which ensures competition and the choice of the best tender, not less than 5.

2.The awarding entity shall dispatch the specification of the essential terms of the contract together with theinvitation to tender. The provisions of Article 36 paragraph 1 items 5, 6, 12 and 20 shall not apply.

Article 72.

1. Each of the contractors may propose only one price and shall not change it. Prices shall not benegotiable. 2. The awarding entity shall award a contract to the contractor who offered the lowest price.

Article 73.

The provisions of Article 44 and Article 64 paragraph 1 shall apply accordingly to the request-for-quotations.

Section 7Electronic auctionArticle 74.

1. Electronic auction means contract award procedures in which using a form available on the websiteallowing to enter the necessary data on-line, contractors shall submit successive more advantageous tenders(bid increments), subject to automatic classification.

2. The awarding entity may award a contract under the electronic auction procedure, where the object of thecontract includes generally available supplies of fixed quality standards and the contract value does notexceed the equivalent in PLN of EUR 60 000.

Article 75.

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1. The awarding entity shall commence an electronic auction procedure by placing a notice on its websiteand on the site where the auction is to be conducted. 2. Notice about the electronic auction shall contain at least :

1) name (company name) and address of the awarding entity; 2) indication of a contract award procedure; 3) description of the object of the contract; 4) requirements concerning registration and identification of contractors, including technicalrequirements of IT equipment; 5) manner of proceeding during electronic auction, and in particular the minimum bid increment; 6) information about the number of stages of the electronic auction and their duration; 7) time-limit for the submission of requests to participate in the electronic auction; 8) the opening date of the electronic auction and the date and terms of its closing; 9) description of the conditions for participation in the procedure and description of the manner ofevaluating compliance with these conditions; 10) information on declarations and documents to be provided by the contractors to confirmcompliance with the conditions for participation in the procedure; 11) time limit during which a contractor must maintain his tender; 12) contract completion date; 13) requirement concerning security on due performance of the contract; 14) provisions essential to the parties to be incorporated into the contents of the concludedprocurement contract or general terms of the procurement contract, or standard contract, if theawarding entity shall require from the contractors to conclude a procurement contract on suchterms; 15) website address where the electronic auction is to be conducted.

Article 76.

1. The awarding entity shall fix a time limit for the submission of requests to participate in the electronicauction, which shall not be less than 15 days from the date of the notice. 2. The awarding entity shall allow all contractors complying with the conditions for participation in theprocedure to participate in the electronic auction and shall invite them to tender, specifying in the invitationthe time limit during which the contractor with the lowest price must maintain his tender. 3. The awarding entity may require the contractors to pay a deposit within a time limit specified by him, notlater, however, than prior to the expiry of the opening date of the electronic auction. The provisions ofArticle 45 and 46 shall apply as appropriate. 4. The awarding entity shall open the electronic auction within the time limit specified in the notice, whichhowever shall not be less than 5 days as from the date on which the invitation to tender was transmitted tocontractors.

Article 77.

From the moment of opening till the closing of the electronic auction the awarding entity and contractorsshall transmit requests, declarations and other information by electronic means of communication.

Article 78.

1. Tenders shall be submitted, under the pain of nullity, in electronic form with a secure electronic signatureverifiable using a valid qualified certificate. 2. Tenders submitted by contractors shall be subject to automatic classification based on price. 3. A contractor must maintain his tender submitted in the course of the auction until another contractorsubmits better tender.

Article 79.

1. The electronic auction may be a one-stage or multi-stage procedure. 2. The awarding entities may, if they had made an appropriate reservation in the notice, following the end ofeach stage of the electronic auction, not qualify to the next stage those contractors who have failed to

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submit new (bid increments), informing them of the fact forthwith. 3. During each stage of the electronic auction the awarding entity shall transmit, on a current basis, to allcontractors information about the position of their tenders, the number of contractors participating in eachstage of the auction, as well as their quotations, however, information allowing identification of contractorsshall not be disclosed until the closing of the electronic auction.

Article 80.

1. The awarding entity shall close an electronic auction:

1) within the time limit specified in the notice; 2) if no new bid increments are submitted by the period specified in the notice, or 3) following the end of the last stage specified in the notice.

2. Directly following the closing of the electronic auction the awarding entity shall provide the name(company name) and address of the contractor whose tender has been chosen at the website addressindicated in the notice. 3. The awarding entity shall award the contract to the contractor who offered the lowest price.

Article 81.

1. The provisions of Articles 36-38, Articles 82-92 shall not apply to the electronic auction.

Chapter 4Selection of the best tenderArticle 82.

1. A contractor may submit one tender. 2. The tender shall, under the pain of nullity, be submitted in writing or if the awarding entity agrees, inelectronic form with a secure electronic signature verifiable using a valid qualified certificate. 3. The contents of the tender should correspond to the contents of the specification of essential terms of thecontract.

Article 83.

1. The awarding entity may permit the possibility of submitting variants, where the price is not the onlyaward criterion. 2. The awarding entity may permit the possibility of submitting tenders for lots, where the object of thecontract is divisable. 3. In the case, referred to in paragraph 2, the contractor may submit tenders for one or more lots, unless theawarding entity specified the maximum number of lots for which one contractor may submit his tenders.

Article 84.

1. A contractor may change or withdraw his tender prior to the expiry of the time limit for submission oftenders. 2. Tenders submitted after the expiry of the time limit for submission of tenders shall be returned withoutopening after the expiry of the time limit for lodging protests.

Article 85.

1. A contractor must maintain his tender until the expiry of the time limit specified in the specification ofessential terms of the contract, however not longer than:

1) 30 days - if the contract value does not exceed the expressed in PLN equivalent of EUR 60 000; 2) 90 days - if the contract value exceeds the equivalent in PLN of EUR 10 000 000 for works, andof EUR 5 000 000 for supplies and; 3) 60 days - if the contract value is different than that specified in items 1 and 2

2. In justified cases, at least 7 days prior to the expiry of the time limit during which the contractor must

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maintain his tender, the awarding entity may once request the contractors to give their consent to extend thistime limit by an indicated period, which however shall not be longer than 30 days. 3. Refusal to give consent, referred to in paragraph 2, shall not result in the forfeiture of the deposit. 4. Contractor's consent to extend the period of maintenance of his tender shall be admissible only withsimultaneous extension of the period of validity of the deposit or, if not possible, with contribution of a newdeposit for the extended period of maintaining the tender. 5. The period, during which a contractor must maintain his tender, shall commence with the expiry of thetime limit for submission of tenders.

Article 86.

1. The contents of tenders shall not be disclosed prior to the opening of tenders. 2. The opening of tenders shall be public and shall take place directly following the expiry of the time limitfor their submission, however, the final date for the submission of tenders shall be the date on which theyare opened. 3. Directly prior to the opening of tenders the awarding entity shall state the amount they intend to allocateto finance the contract. 4. During the opening of tenders the names (company names) and addresses of contractors shall be given aswell as information included in the tenders concerning the price, time limit for the completion of thecontract, period of guarantee and terms of payment. 5. The information, referred to in paragraph 3 and 4, shall be communicated to contractors who were absentduring the opening of tenders upon their request.

Article 87.

1. During examination and evaluation of tenders the awarding entity may require the contractors to provideexplanations concerning the contents of submitted tenders. Negotiations between the awarding entity andthe contractor concerning the submitted tender and, subject to paragraph 2, any changes in the contentsthereof shall not be admissible. 2. The awarding entity shall correct the text of the tender in terms of any obvious misprints andcomputational errors made in the calculation of prices, notifying forthwith all contractors who submittedtheir tenders.

Article 88

1. The awarding entity shall correct computational errors in the calculation of prices in the followingmanner:

1) in the case of multiplication of unit prices and numbers of measurement units: a) where the calculated price does not correspond to the product of unit price timesnumber of measurement units, it shall be assumed that the number of measurement unitsand the unit price have been given correctly, b) where there is a discrepancy between the unit price given in words and the one given innumbers, it shall be assumed that the number of measurement units and the unit pricewhich matches the provided price calculation have been given correctly;

2) in the case of addition of prices for individual lots: a) if the calculated price does not correspond to the total sum of prices for individual lotsit shall be assumed that prices for individual lots have been given correctly, b) where there is a discrepancy between the amount for an individual lot given in wordsand the one given in numbers, it shall be assumed that the correct entry was that whichmatches the provided price calculation, c) if neither the price for the lot given in numbers nor that given in words corresponds tothe calculated price, it shall be assumed that the prices given in words have been givencorrectly;

3) in the case of a tender with a price for the whole object of the contract or lot (lump sum price): a) it shall be assumed that the provided lump sum amount was correct regardless of themethod of calculation, b) where there is a discrepancy between the lump sum amount given in numbers and thatgiven in words, it shall be assumed that the lump sum given in words has been given

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correctly, c) where the calculated price does not correspond to the sum of all lump sums, it shall beassumed that the individual lump sums have been given correctly.

Article 89

1. The awarding entity shall reject a tender, if:

1) it is not in conformity with this Act; 2) its contents do not correspond to the contents of the specification of essential terms of thecontract ;3) its submission is an act of unfair competition within the meaning of the provisions concerningthe combating of unfair competition; 4) contains an abnormally low price; 5) has been submitted by a contractor excluded from the award procedure or one that was not beeninvited to tender 6) contains computational errors in the calculation of prices, which cannot be corrected underArticle 88 or miscalculations of the price; 7) the contractor did not agree to the correction of a computational error in the calculation of theprice within 7 days from the delivery of notification; 8) is not valid under separate provisions.

2. The awarding entity shall simultaneously notify all contractors about rejected tenders, providing factualand legal grounds.

Article 90.

1. In order to determine whether the submitted tender contains an abnormally low price with regard to theobject of the contract the awarding entity shall request the contractor to provide explanations within a fixedtime limit.

2. In evaluating explanations the awarding entity shall take into consideration any explanation which isjustified on objective grounds, and in particular, the economy of a performance method, technical solutionschosen, exceptionally favourable conditions available to the contractor for the performance of the contract,originality of the contractor's project and impact of the public aid provided under separate provisions. 3. The awarding entity shall reject a tender submitted by a contractor who failed to provide explanations orwhere the performed assessment of explanations confirms that the submitted offer contains an abnormallylow price with regard to the object of the contract. 4. Where price is the only criterion for the choice of a tender and the contract value exceeds the equivalentin PLN of EUR 5 000 000 for works and of EUR 130 000 for supplies and services, the awarding entityshall notify the President of the PPO and the European Commission about the rejection of tenders, whichaccording to the awarding entity contain an abnormally low price.

Article 91.

1. The awarding entity shall select the best tender on the basis of tender evaluation criteria laid down in thespecification of essential terms of the contract. 2. Tender evaluation criteria shall be price or price and other criteria pertaining to the object of the contract,in particular quality, functionality, technical parameters, use of the best available technologies with regardto environmental impact, exploitation costs, repair services, impact of the execution of the contract on thelabour market in the site of the execution of the contract and contract execution date. 3. Tender evaluation criteria shall not pertain to the characteristics of the contractor, and in particular to itseconomic, technical or financial credibility. 4. Where the best tender cannot be selected as two or more tenders represent the same balance of price andother tender evaluation criteria, the awarding entity shall choose from among those tenders the one with alower price. 5. Where the price is the only award criterion in a contract award procedure and it is impossible to select thebest tender as tenders with the same price have been submitted, the awarding entity shall call upon thecontractors to submit additional tenders within a specified period. 6. When submitting additional tenders contractors shall not submit tenders with higher prices than those

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submitted previously.

Article 92.

The awarding entity shall immediately inform contractors who competed for the award of a contract abouthis choice of tender and where the contract value exceeds the equivalent in PLN of EUR 60 000 - also thePresident of the PPO using the form on the [official] website of the PPO, giving the name (company name)and address of the successful contractor and the price of the tender.

Article 93.

1. The awarding entity shall cancel a contract award procedure, if:

1) subject to items 2 and 3, no tender has been submitted or no request to participate in theprocedure from a non-excludable contractor has been received; 2) less than two non-rejectable tenders have been submitted in the request-for-quotationsprocedure; 3) less than two contractors have submitted their tenders in the electronic auction procedure; 4) the price of the best tender exceeds the amount which the awarding entity can allocate to financethe contract; 5) in the cases referred to in Article 91 paragraph 5 additional tenders with the same price havebeen submitted; 6) a material change in the circumstances has occurred which causes the conduct of the procedureor the execution of the contract to be no longer in the public interest and which could not havebeen foreseen earlier; 7) the award procedure is encumbered with a defect which prevents the conclusion of a validpublic procurement contract.

2. If the awarding entity allows the possibility of submitting tenders for lots, the provisions of paragraph 1shall apply as appropriate to the cancellation of the procedure for the award of lots. 3. The awarding entity shall notify simultaneously all contractors who competed for the award of thecontract providing factual and legal grounds of the cancellation of the procedure. 4. In the event of the cancellation of a contract award procedure due to the fault of the awarding entity,contractors who submitted non-rejectable tenders shall be entitled to claim reimbursement of the justifiedcosts of participation in the procedure, and in particular, the costs incurred for the preparation of theirtenders.

Article 94.

1. The awarding entity shall conclude a public procurement contract within not less than 7 days from theday on which the tender was chosen, however, not later than prior to the expiry of the time limit duringwhich a contractor must maintain his tender. 2. If the contractor, whose tender has been chosen, attempts to avoid signing the public procurementcontract or fails to provide the required security on due performance of the contract, the awarding entityshall choose the best tender from the remaining tenders without their reassessment, unless there areconditions referred to in Article 93 paragraph 1.

Article 95.

1. Where the contract value exceeds the expressed in PLN equivalent of EUR 60 000, the awarding entityshall, immediately following the conclusion of a public procurement contract, dispatch the contract awardnotice to the President of the PPO. 2. Where the value of a contract for works exceeds the expressed in PLN of EUR 5 000 000, and forsupplies or services - of EUR 130 000, the awarding entity shall, immediately following the conclusion of apublic procurement contract, dispatch the contract award notice to the Office for Official Publications of theEuropean Communities. Immediately following the dispatch of the contract award notice to the Office forOfficial Publications of the European Communities the awarding entity shall dispatch it also to the Presidentof the PPO.

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Chapter 5Record of proceedingsArticle 96.

1. In the course of the conduct of an award procedure the awarding entity shall prepare a written record ofthe contract award procedure, hereinafter referred to as the "record", which shall include at least:

1) description of the object of the contract; 2) information on the contract award procedure; 3) information on contractors; 4) price and other essential elements of the tender; 5) indication of the selected tender.

2. Tenders, opinions of experts, declarations, information from the meeting referred to in Article 38paragraph 3, notifications, requests, other documents and information submitted by the awarding entity andcontractors and the public procurement contract, shall constitute annexes to the record. 3. The record together with the annexes attached thereto shall be open to the public. The annexes to therecord shall be made available after the best tender is chosen or after the cancellation of the procedure,however, tenders shall be available from the moment of their opening. 4. Information, which is regarded as confidential proprietary information, within the meaning of theprovisions concerning the combating of unfair competition, shall not be disclosed if not later than within thetime limit for the submission of tenders a contractor made a reservation as to their non-disclosure. Thecontractor may not stipulate that the information referred to in Article 86 paragraph 4 should not bedisclosed. 4. The Prime Minister shall specify by a regulation:

1) standard record form and the scope of additional information to be included in the record,having regard to the contract value, contract award procedure and aiming to ensure the possibilityof submitting comments on the contents of the record by persons performing actions in connectionwith the conduct of a contract award procedure; 2) manner and form in which the record together with its annexes is to be made available to thepersons concerned, having regard to the requirement to ensure the public nature of awardprocedures.

Article 97.

1. The awarding entity shall keep the record together with its annexes for a period of 4 years from theclosing date of the contract award procedure in a manner which shall guarantee its inviolability. 2. The awarding entity shall return to contractors whose tenders were not chosen, upon their request, anyplans, designs, drawings, models, samples, patterns, computer applications and similar materials submittedby them.

Article 98.

1. The awarding entity shall prepare an annual report about the conducted contract award procedureshereinafter referred to as the "report". 2. The awarding entity shall submit the report to the President of the PPO by 1 March of each yearfollowing the year to which the report refers. 3. The report concerning contracts awarded pursuant to Article 136 paragraph 1 shall be submitted via theminister competent for foreign affairs. 4. The Prime Minister shall specify by a regulation the scope of information included in the report and itsstandard form, having regard to the value of the awarded contract, the contract award procedure and themethod of executing contracts whose value exceeds the expressed in PLN equivalent of EUR 10 000 000for works and of 5 000 000 for supplies or services.

Title IIISpecific provisionsChapter 1Design contestArticle 99.

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A design contest is a public promise, in which by means of a public notice the awarding entity promises aprize for the execution and transfer of rights to the design selected by the contest jury, in particular in thefields of spatial planning, town planning, architecture and civil engineering and data processing.

Article 100.

1. The prize of a design contest may be:

1) in money or in kind; 2) an invitation to negotiate under the negotiated procedure without publication for at least 2authors of selected designs, or 3) an invitation to negotiate under the single-source-procurement procedure for the author of theselected design.

2. In the cases referred to in paragraph 1 items 2 and 3 the object of the contract shall be the comprehensivedevelopment of a design. 3. The value of a design contest shall be the value of prizes. 4. The value of a design contest, in which the prize consists in the invitation to participate in the contractaward procedure, shall be the value of the contract and additional prizes where the awarding entity providedfor such prizes. 5. The provisions of Article 35 shall apply as appropriate for the purposes of calculation of the designcontest value.

Article 101.

1. Design contests shall be organised by awarding entities. The provisions of Article 18 paragraph 1 shallapply as appropriate. 2. The head of the awarding entity shall appoint a contest jury and set forth the rules concerning itsorganisation, composition and working procedure. 3. The contest jury shall be composed of at least 3 persons appointed and recalled by the head of theawarding entity. 4. Article 17 shall apply as appropriate to members of the contest jury. 5. The contest jury shall be composed exclusively of persons having professional qualifications permittingthe evaluation of submitted designs, and where specific provisions require from participants in the contestparticular professional authorisations to execute the design, at least a third of its members, including itschairman, shall have those required authorisations.

Article 102.

1. The contest jury is a supporting team of the head of the awarding entity appointed to evaluate complianceof participants in the contest with the requirements laid down in the Rules of Procedures of the contest, toevaluate the designs and to choose the best design. 2. The contest jury shall in particular prepare reasoned opinions about the designs, justification of thecontest's result, and also, to the extent referred to in paragraph 1, lodge a request to cancel the contest. 3. The contest jury shall be independent within the scope of issues referred to in paragraphs 1 and 2. 4. The head of the awarding entity may entrust the contest jury with actions related to the preparation andconduct of the contest other than those specified in paragraph 1.

Article 103.

The contest jury shall be supervised by the head of the awarding entity or person authorised thereby, andshall in particular:

1) cancel the contest; 2) approve the results of the contest.

Article 104.

1. The awarding entity shall place the design contest notice in a publicly available place at its seat and on its

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website, if it has its own website. 2. Where the value of the design contest exceeds the expressed in PLN equivalent of EUR 60 000, theawarding entity shall send the contest notice to the President of the PPO. 3. Where the value of the design contest exceeds the expressed in PLN equivalent of EUR 130 000, theawarding entity shall also send the design contest notice to the Office for Official Publications of theEuropean Communities. Immediately following the dispatch of the notice to the Office for OfficialPublications of the European Communities the awarding entity shall also dispatch it to the President of thePPO. 4. The provisions of Article 40 paragraph 5 and 6 and Article 48 paragraph 2 shall apply as appropriate.

Article 105.

1. The awarding entities shall conduct the design contest on the basis of the Rules of Procedure for thedesign contest established by them. 2. The Rules of Procedure for the design contest shall in particular specify:

1) name and surname or company name as well as the address and place of residence (seat) of theawarding entity; 2) form of design contest; 3) detailed description of the design contest object; 4) the maximum envisaged cost of projects to be executed on the basis of the design; 5) in the cases referred to in Article 100 paragraph 1 items 2 and 3 the scope of the detailedpreparation of a design contest constituting the object of the contract to be awarded under thenegotiated procedure without publication or single-source procurement procedure; 6) requirements to be met by the participants in the design contest, and where the prize is aninvitation for at least 2 authors of selected designs to negotiate under the negotiated procedurewithout publication or an invitation for the author of the chosen design to negotiate under thesingle-source-procurement procedure, the provisions of Article 22 shall apply as appropriate; 7) information concerning declarations and documents to be supplied by the participants in thedesign contest to prove their compliance with the requirements they shall meet; 8) means of communication between the awarding entity and participants in the design contest aswell as of delivery of declarations and documents; 9) place and time limit for submission of requests to participate in the design contest; 10) scope of the subject matter and form of preparation as well as mode of presentation of adesign; 11) place and time limit for submission of designs by the participants admitted to participate in thedesign contest; 12) criteria for evaluation of designs together with their weightings; 13) composition of the contest jury; 14) type and value of prizes; 15) date of release (payment) of the prize, and in the cases referred to in Article 100 paragraph 1items 2 and 3 - the date of invitation to negotiate under the negotiated procedure withoutpublication or single-source-procurement procedure 16) provisions concerning the transfer of financial copyrights, and in the cases referred to inArticle 100 paragraph 1 items 2 and 3 - also essential provisions to be incorporated into the publicprocurement contract; 17) manner of public announcement of the results of the design contest; 18) manner of providing explanations concerning the Rules of Procedure for the design contest; 19) information on law enforcement measures available to the participants in the design contest.

3. The awarding entity shall deliver the Rules of Procedure for the contest to participants in the contest notlater than within 5 days from the date of the receipt of the request therefore. 4. The provisions of Article 27 - 28 shall apply as appropriate to communication between the awardingentity and the participants.

Article 106.

1. The design contest may be organised as a one-stage or a two-stage procedure. 2. In a two-stage design contest, the first stage involves the selection of study projects complying with the

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requirements set forth in the Rules of Procedure for the design contest. At the second stage the contest juryshall evaluate designs based on the study projects selected at the first stage applying the criteria laid downin the Rules of Procedure for the design contest.

Article 107.

1. Participants in the design contest may be natural persons, legal persons and organisational units nothaving legal personality. 2. Where specific provisions require from participants in the design contest particular professionalauthorisations to execute a design, the participants may be only natural persons having the requiredauthorisations or legal persons using natural persons having the required authorisations. 3. Participants may take part in the design contest jointly. The provisions relating to a participant in a designcontest shall apply respectively to participants taking part jointly.

Article 108.

The awarding entity shall fix a time limit for submission of requests to participate in the design contest withregard to the time period necessary to submit the required documents. However, this time limit shall not beless than 21 days from the date of dispatch of the design contest notice to:

1) the President of the PPO; 2) the Office for Official Publications of the European Communities - where the value of thedesign contest exceeds the expressed in PLN equivalent of EUR 130 000.

Article 109.

1. The awarding entity shall allow participants satisfying the requirements laid down in the Rules ofProcedure for the design contest to participate in the design contest and invite them to submit their designs. 2. Participants who fail to meet the requirements laid down in the Rules of Procedure for the design contestshall be subject to exclusion.

Article 110.

1. Subject to paragraph 2, participants in the design contest shall submit their designs together withinformation on the envisaged aggregate cost of execution of the object of a design. 2. Participants in the design contest shall submit their designs without information referred to in paragraph1, if it is not possible to define the costs taking into account the specific nature of the object of the design.

Article 111.

The awarding entity shall ensure that until the contest jury selects the winner of the design contest it will notbe possible to identify the authors of submitted designs.

Article 112.

1. The contest jury shall evaluate designs according to the criteria laid down in the Rules of Procedure forthe design contest. 2. The contest jury shall resolve the design contest by selecting one or more winning designs. 3. Having selected the winning design or designs the jury shall identify the authors of all submitted designs.

Article 113.

The awarding entity shall, immediately following the resolution of the design contest, notify participantsthereof, giving the name and surname or company name and address and place of residence (seat) of thesuccessful author of the selected design or authors of selected designs.

Article 114.

The awarding entity shall cancel the design contest, where no request to participate in the design contest or

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no design has been submitted, and in the case referred to in Article 100 paragraph 1 item 2 - at least twodesigns.

Article 115.

According to the time limit specified in the rules of the design contest, which shall not however be less than15 days from the date of the final resolution of the design contest, the awarding entity shall release (pay out)the prize, and in the cases referred to in Article 100 paragraph 1 items 2 and 3 - respectively invites tonegotiate under the negotiated procedure without publication or single-source-procurement procedure.

Article 116.

1. Where the value of the design contest exceeds the expressed in PLN equivalent of EUR 60 000, theawarding entity shall, immediately following the resolution of the design contest, dispatch the notice aboutits results to the President of the PPO. 2. Where the value of the design contest exceeds the expressed in PLN equivalent of EUR 130 000, theawarding entity shall, immediately following the resolution of the design contest, dispatch the notice aboutits results to the Office for Official Publications of the European Communities. Immediately following thedispatch of the notice to the Office for Official Publications of the European Communities the awardingentity shall also dispatch it to the President of the PPO.

Article 117.

1. The awarding entity shall keep the documentation of the design contest for a period of 4 years from thedate of its final resolution, in a manner guaranteeing its inviolability. 2. The awarding entity shall return designs, which have not been selected, to the participants of the designcontest upon their request.

Chapter 2Award and execution of concessionsArticle 118.

1. Contractors who meet the conditions for participation in a procedure laid down by the awarding entitymay participate in the concession award procedure. 2. Concessions shall be awarded under the respective provisions on open tendering, restricted tendering ornegotiated procedure with publication. The provisions of Article 55 shall not apply. 3. Where the value of a contract exceeds the expressed in PLN equivalent of EUR 60 000, the time limit forsubmission of requests to participate in the procedure shall not be less than 52 days from the date ofdispatch of the notice to the President of the PPO. 4. Where the value of the contract exceeds the expressed in PLN equivalent of EUR 5 000 000, the timelimit for submission of requests to participate in the procedure shall not be less than 52 days from the dateof dispatch of the notice to the Office for Official Publications of the European Communities.

Article 119.

The provisions of Article 91 paragraph 3 shall not apply to the evaluation of tenders in concession awardprocedures.

Article 120.

1. In the specification of essential terms of the contract the awarding entity may require the entity to whomthe concession has been granted (concessionaire) to subcontract at least 30% of the total value of the worksbeing the object of the concession to other entities. 2. Agreements concluded by contractors for the purpose of competing jointly for the award of contracts andagreements between contractors and undertakings being dependant on or dominated by them within themeaning of the Act of 21 August 1997 - Law on Public Trading in Securities (Dz. U. of 2002 No 49 item447 with further amendments) shall not be considered subcontracting within the meaning of paragraph 1. 3. Contractors shall enclose to their tenders a list of the undertakings referred to in paragraph 2.

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Article 121.

1. The concessionaire, who is himself an awarding entity within the meaning of Article 3 paragraph 1 items1-3 and 5, shall apply the provisions of this Act when awarding contracts resulting from the execution of theconcession. 2. When awarding contracts resulting from the execution of the concession the concessionaire, who is notan awarding entity within the meaning of Article 3 paragraph 1 items 1-3 and 5, shall:

1) apply the provisions of this Act concerning notices, except for the prior information notice; 2) fix the time limits for submission of requests to participate in procedure in accordance withArticle 49 paragraphs 1-3 and fix the time limits for submission of tenders, referred to in Article 52paragraphs 1 and 2; 3) conduct the procedure in compliance with the rules referred to in Article 7 paragraph 1.

3. The provisions of paragraph 2 shall not apply to the award of contracts to undertakings being dependanton or dominated by the contractor within the meaning of the Act of 21 August 1997 - Law on PublicTrading in Securities and to the entities with whom the concessionaire has concluded an agreement tocompete jointly for the award of a concession.

Chapter 3Sectorial contractsArticle 122

1. The provisions of this Chapter shall apply to contracts awarded by the awarding entities referred to inArticle 3 paragraph 1 items 3 and 4, hereinafter referred to as "sectorial contracts", subject to Article 3paragraph 1 items 5 and 6, if the contract is awarded for the purposes of performing one of the followingtypes of activities:

1) exploring, prospecting for or extracting gas, oil and its natural derivatives, brown coal, hard coaland other solid fuels; 2) the management of airports, maritime or inland ports and their provision to air, sea and inlandcarriers; 3) the creation of fixed networks intended to provide public services connected with theproduction, transport or distribution of electricity, gas or heat or supply of electricity, gas or heat tosuch networks or management of such networks; 4) the creation of fixed networks intended to provide public services connected with the productionor distribution of drinking water or supply of drinking water to such networks or management ofsuch networks; 5) the operation of networks providing public services in the field of transport by railway,tramway, trolley bus, cable or automatic systems; 6) the operation of networks providing public services in the field of transport by bus; 7) the provision or operation of public telecommunications networks or provision of one or moretelecommunications services by means of such a network.

2. The awarding entities referred to in paragraph 1 item 4 shall apply the provisions of this chapter to theaward of contracts related to sewage systems and purification of sewage systems and the activities related tocollection of drinking water.

Article 123.

1. This Act shall apply to the award of sectorial contracts, where the contract value exceeds the expressed inPLN equivalent of EUR 400 000 for supplies or services and of EUR 5 000 000 for works, subject toparagraph 2. 2. This Act shall apply to the award of sectorial contracts referred to in Article 122 paragraph 1 item 7,where the contract value exceeds the expressed in PLN equivalent of EUR 600 000 for supplies or servicesand of EUR 5 000 000 for works.

Article 124.

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1. The awarding entity may conclude a framework agreement following the conduct of a procedure andapplying respective provisions on restricted tendering or negotiated procedure with publication. 2. Framework agreement shall be an agreement concluded between the awarding entity and one or morecontractors for the purpose of establishing the terms of contracts to be awarded within a given period, inparticular with reference to the prices and expected quantities. 3. Where the awarding entity admits a framework agreement with more than one contractor, they shallspecify in the notice the maximum number of contractors with whom they will conclude the frameworkagreement.

Article 125.

1. Where the awarding entity concluded an agreement with only one contractor, they may award a contractwhose object is covered by the framework agreement, under the single-source-procurement procedure. Theprovisions of Article 67 paragraph 2 shall not apply. 2. Where the awarding entity concluded an agreement with more than one contractor, the contract shall beawarded under the negotiated procedure without publication. The awarding entities shall invite to negotiateall contractors with whom they concluded the framework agreement. The provisions of Article 62 paragraph2 shall not apply.

Article 126.

1. The framework agreement shall be concluded for a period not exceeding 3 years. However, with regardto the object of the contract or to the special interest of the awarding entity this agreement may beconcluded for a period of up to 5 years. 2. The awarding entity shall not use the framework agreement for the purpose of restricting competition.

Article 127.

1. Sectorial contracts may be awarded by open procedure, restricted tendering procedure and negotiatedprocedure with publication. The provisions of Article 55 shall not apply. 2. Sectorial contracts may be awarded under the negotiated procedure without publication, where:

1) one of the circumstances provided in Article 62 paragraph 1 occurs; 2) in previously conducted award procedure under the negotiated procedure with publications notenders have been submitted or all the tenders have been rejected and the original terms of thecontract have not been substantially altered;

3. Sectorial contracts may be awarded by single-source-procurement procedure, where:

1) one of the circumstances provided in Article 67 paragraph 1 occurs; 2) it is possible to award a contract on exceptionally advantageous terms in connection with theliquidation of another entity, enforcement or bankruptcy proceedings; 3) it is possible to award a contract, at a significantly lower price than the regular market prices inconnection with a short period of exceptionally advantageous conditions; 4) the contract is executed at a commodities exchange within the meaning of the provisions oncommodities exchange.

4. The provisions of Article 67 paragraph 2 shall not apply to the sectorial contracts awarded pursuant toparagraph 3 items 2-4 and Article 67 paragraph 1 item 3.

Article 128.

1. The awarding entity shall, at least once a year, dispatch to the Office for Official Publications of theEuropean Communities a prior indicative notice about sectorial contracts envisaged for the following 12months the value of which:

1) for works - exceeds the expressed in PLN equivalent of EUR 5 000 000; 2) for supplies - calculated for the given group as specified in the Common ProcurementVocabulary, subject to Article 123, exceeds the expressed in PLN equivalent of EUR 750 000; 3) for services - calculated for the given CPC category as specified in Annex 3 to the Common

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Procurement Vocabulary, subject to Article 123, exceeds the expressed in PLN equivalent of EUR750 000.

2. The notice, referred to in paragraph 1, shall be dispatched to the President of the PPO immediately afterits dispatch to the Office for Official Publications of the European Communities. 3. The provisions of Article 12 paragraph 3 and Article 43 paragraph 4 shall apply accordingly to the noticereferred to in paragraph 1. 4. The prior indicative notice about envisaged sectorial contracts may contain a call for competition for asectorial contract. In this case the awarding entity, when awarding a contract under restricted tendering ornegotiated procedure with publication, may:

1) depart from the publication of a contract notice; 2) reduce the time limit for submission of tenders to 37 days.

5. In restricted tendering or negotiated procedure with publication the awarding entity may fix the time limitfor submission of tenders which is not less than 10 days, taking into consideration the time needed for thepreparation and submission of tenders. 6. In restricted tendering or negotiated procedure with publication the awarding entity may, with the consentof all contractors who submitted requests to participate in the procedure, fix any time limit for submissionof tenders.

Article 129.

1. This Act shall not apply to sectorial contracts for services awarded to:

1) entities with whom the awarding entities prepare the annual consolidated financial reports withinthe meaning of the provisions on accountancy; 2) entities in which the awarding entities hold over half of the shares or interests, control themanaging body or are entitled to appoint over half of the members of their supervisory ormanagement bodies; 3) entities which hold over half of the awarding entities shares or interests, control its managingbody or are entitled to appoint over half of the members of their supervisory or managementbodies; 4) entities who together with the awarding entity are subject to the influence of another entity asspecified in item 3, - if at least 80% of the average income of these entities over the preceding 3 years came fromservices rendered to the awarding entity or entities referred to in items 1 - 4.

2. This Act shall not apply to sectorial contracts for services provided by an entity established by theawarding entities for the purposes of joint exercising of the activity, referred to in Article 122 paragraph 1,to one of these awarding entities or to the entities referred to in paragraph 1, if within the 3 preceding yearsat least 80% of average income of these entities, coming from the provision of services in the MemberStates of the European Union, came from the provision of services for the awarding entity or for entitiesreferred to in paragraph 1. 3. Where from among the entities referred to in paragraph 1, more than one renders the same or similarservices to a sectorial awarding entity, the aggregate income of all these entities shall be taken intoconsideration.

Article 130.

1. The awarding entities conducting activities referred to in Article 122 paragraph 1 item 3, shall also notapply this Act to the award of contracts for:

1) services consisting in the transfer of electrical energy, heat and gas fuels; 2) supply of electrical energy, heat and gas fuels; 3) supply of fuels for the purpose of generating energy.

2. The awarding entity exercising activities referred to in Article 122 paragraph 1 item 4, shall not applythis Act to the award of contracts for the supply of water. 3. The awarding entity exercising activities referred to in Article 122 paragraph 1 item 6, shall not applythis Act if regular transportation services on the same geographical area and on the same terms are rendered

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by another carrier. 4. The awarding entities exercising activities referred to in Article 122 paragraph 1 item 7, shall not applythis Act if the same services on the same geographical area and on the same terms are also rendered byanother operator.

Article 131.

1. When awarding a sectorial contract the head of the awarding entity may depart from the appointment of atender committee. 2. Departing from the appointment of a tender committee, the head of the awarding entity shall specify themanner of conducting award procedures which ensures the efficiency of the award of a contract,individualisation of responsibility for performed actions and transparency of procedure, as well as properapplication of Article 178 paragraph 1.

Article 132.

1. The awarding entity may:

1) request the submission of documents other than specified in a regulation issued under Article 26paragraph 5, proving contractor's compliance with conditions for participation in the procedure,where this is necessary to evaluate whether the contractors meet these conditions; 2) in the case of a supply contract, reject a tender, where the share of goods originating in theMember States of the European Union or in countries with whom the European Union concludedagreements on equal treatment of entrepreneurs, is less than 50%.

2. For the purposes of examining and evaluating tenders the awarding entity recalculates the price of a non-rejectable tender pursuant to paragraph 1 item 2, subtracting 3% of the tender price from the price stated inthe tender. 3. The awarding entity may not apply the provisions concerning deposits and security on due performanceof the contract.

Article 133.

1. Contractors competing for a sectorial contract, who believe that their legal interest has been prejudiced ormay be prejudiced as a result of the infringement by the awarding entity of the provisions of this Act or ofthe law of the European Union relating to public procurement may lodge a request to the EuropeanCommission to apply the conciliation procedure consisting in the examination of the request by arbitersaccredited with the European Commission. 2. The request to apply the conciliation procedure shall be submitted in writing to the EuropeanCommission through the President of the PPO. The President of the PPO shall forthwith send the request toapply the conciliation procedure to the European Commission.

Article 134.

1. The awarding entities may subject their contract award procedures to periodical checks for the purpose ofobtaining a certificate confirming that at a given period of time these procedures complied with this Act andwith the law of the European Union relating to public procurement. 2. The President of the PPO shall determine and disseminate the rules for carrying out checks and shallmaintain a list of entities authorised to carry out checks, referred to in paragraph 1, observing therequirements laid down in the norm PN EN 45503. 3. The entity carrying out a check shall not be in a legal or actual relationship with the awarding entity so asto raise reasonable doubts as to its impartiality. 4. The entity carrying out a check shall, following its completion, present the awarding entity with a writtenreport of check findings. 5. Before issuing a certificate the entity carrying out a check shall make sure that all irregularities foundduring the check have been remedied and that all actions precluding any future irregularities have beenundertaken. 6. The awarding entities, who obtained the certificate referred to in paragraph 1, may include in the noticespublished in the Official Journal of the European Union and in the Public Procurement Bulletin information

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in the following wording: "The awarding entity has obtained an attestation pursuant to Council Directive92/13/EEC confirming that on (date) his procedures and practises related to the award of contracts werein conformity with Community law and with provisions implementing this law". 7. The awarding entities, who obtained the certificate referred to in paragraph 1, shall not be required toapply the provisions of Article 40 paragraph 4, Article 167 paragraphs 2 and 3, Article 177 and 177 for aperiod of 3 years of its issuance.

Article 135.

1. The Council of Ministers shall specify, by a regulation:

1) odies competent to acknowledge that entities exercising activities referred to in Article 124operate on a competitive market or that they do not exercise an activity on the basis of special orexclusive rights; 2) way of proceeding before bodies referred to in item 1, - taking into consideration the possibility of requesting the European Commission for exemptionfrom the application of the public procurement provisions by these entities.

2. Entities, which according to the published decision of the European Commission operate on acompetitive market or do not operate on the basis of special or exclusive rights, shall not apply theprovisions of this Act.

Chapter 4Award procedures under special rulesArticle 136.

1. Special rules may apply to the conduct of procedures for the award of contracts awarded by the foreignestablishments within the meaning of the provisions on foreign service if in the host country, non being aMember of the European Union, in which the contract is to be awarded and executed, particular economicconditions justifying awarding the contract in accordance with the provisions of this Chapter. 2. Special rules may apply to the conduct of procedures for the award of contracts aimed to prevent thedirect effects of natural calamities or technical failures having the features of a natural disaster within themeaning of the provisions on state of natural disaster.

Article 137.

1. In contract award procedures conducted according to special rules referred to in Article 136 paragraph 1:

1) the awarding entity may depart from the obligation to describe the object of the contract in away as specified in Article 29 paragraph 3; 2) the provisions of this Act relating to the obligation to publish notices shall not be applicable andthe awarding entity shall invite contractors to participate in the procedure by sending them thespecification of essential terms of the contract; 3) notwithstanding the statutory prerequisites for the choice of contract award procedure theawarding entity may nonetheless award a contract; 4) the provisions concerning the approval of the choice of contract award procedure by thePresident of the PPO shall not be applicable; 5) the provisions Article 167 paragraphs 2 and 3 and Article 177 and 178 shall not be applicable; 6) the results of the protest shall not be subject to appeal procedures;

2. The decision to commence an award procedure under special rules shall be taken by the Ministercompetent for foreign affairs on the basis of a written request of the awarding entity, which shall include:

1) the description of the object of the contract and its value; 2) information about reasons for describing the object of the contract in a different way thanspecified in Articles 29 paragraph 3; 3) reasons for the award of a contract under special rules; 4) indication of the contract award procedure providing reasons for having selected this procedure.

Article 138.

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1. In procedures referred to in Article 136 paragraph 2, conducted under special rules, the awarding entitymay award a contract by the single-source-procurement procedure under Article 67 paragraph 1 item 3without applying the provisions concerning:

1) the obligation to request the contractors to produce documents confirming compliance with theconditions for participation in the procedure; 2) the requirement to have the choice of the contract award procedure approved by the President ofthe PPO.

2. The decision to commence an award procedure under special rules shall be taken by the awarding entityand shall be communicated forthwith to the President of the PPO. 3. In the notice referred to in paragraph 2, the awarding entity shall provide the following information:

1) circumstances justifying the start of a procedure under special rules; 2) the value and object of the contract.

Title IVPublic procurement contractsArticle 139.

1. Public procurement contracts, hereinafter referred to as "procurement contracts" shall be regulated by theprovisions of the Act of 23 April 1964 - Civil Code, unless the provisions of this Act provide otherwise. 2. A procurement contract shall, under the pain of nullity, require a written form, unless separate provisionsprovide for a special form. 3. Procurement contracts shall be open and shall be made accessible pursuant to rules laid down in theprovisions concerning public information.

Article 140.

1. The scope of contractor's performance resulting from the procurement contract shall be identical with thecommitment undertaken in the tender. 2. A procurement contract shall be invalid in its part exceeding the described object of contract contained inthe specification of essential terms of the contract.

Article 141.

The contractors, referred to in Article 23 paragraph 1, shall be jointly responsible for the execution of thepublic contract and provision of security on due performance of the contract.

Article 142.

1. A procurement contract shall be concluded for a determinate duration. 2. The conclusion of a public contract for a period longer than 3 years, whose object consists in periodicalor continuous services shall require the consent of the President of the PPO expressed by an administrativedecision issued prior to the start of a contract award procedure. 3. Giving his consent, referred to in paragraph 2, the President of the PPO shall take into consideration, inparticular:

1) the scope of envisaged outlays and the period necessary for repayment or return; 2) awarding entity's paying capacity; 3) whether the completion of the contract in the period requested by the awarding entity shall resultin savings on the cost the contract's execution as compared to the three-year period.

4. The consent, referred to in paragraph 2, shall not be required in the case of procurement contracts for:

1) credits and loans; 2) a bank account, if the period of procurement contract does not exceed 5 years; 3) insurance, if the period of procurement contract does not exceed 5 years; 4) issue of securities, for the period of issue servicing; 5) concession.

Article 143.

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1. Procurement contracts for indeterminate duration may be concluded for the contracts for supplies of:

1) water via the water and sewage network or disposal of sewage to such a network; 2) electrical energy from the power network; 3) gas from the gas grid; 4) heat from the heat distribution network may be concluded for an indefinite duration.

2. Article 142 paragraph 2 shall not be applicable.

Article 144.

1. No amendments to the provisions of the concluded procurement shall be permitted where taking theminto account would require a change in the content of the tender which was the basis for the choice of thecontractor, unless the necessity to introduce such modifications results from circumstances, which could nothave been foreseen at the time of concluding the procurement contract or where these modifications benefitthe awarding entity. 2. Any modification of the procurement contract made in violation of the provision in paragraph 1 aboveshall be null and void.

Article 145.

1. In the event of a material change of circumstances which causes that the execution of the procurementcontract is no longer in the public interest, and which could not have been foreseen at the time ofconcluding the contract, the awarding entities may renounce a contract within a period of 30 days from thedate on which they became aware of these circumstances. 2. In the case referred to in paragraph 1, the contractor may demand remuneration due for the performedpart of the procurement contract.

Article 146.

1. Without prejudice to separate provisions, a procurement contract shall be null and void if:

1) the awarding entity has failed to fulfil the obligation to send contract notice to the President ofthe PPO or to the Office for Official Publications of the European Communities; 2) the awarding entity awarded a contract without obtaining the required administrative decisionand in particular concluded a procurement contract without the required consent prior to the finalresult of a protest; 3) the awarding entity concluded a procurement contract prior to the end of the check referred to inArticle 167; 4) the awarding entity concluded a procurement contract prior to the expiry of the time limit forinitiating the check referred to in Article 167; 5) the awarding entity selected the tender in blatant infringement of this Act; 6) there was an infringement of the provisions of this Act in the award procedure which influencedthe results of the procedure.

2. The President of the PPO may apply to the court for a decision of invalidity of :

1) the procurement contract referred to in paragraph 1;2) part of the procurement contract, referredto in Article 140 paragraph 2; 3) modifications of the procurement contract made in violation of Article 144 paragraph 1.

Article 147.

1. The awarding entity may request the contractor to provide security on due performance of the contract,hereinafter referred to as "security". 2. Security shall serve to cover claims in respect of non-performance or improper performance of a contract.If a contractor is at the same time a guarantor, this security shall also serve to cover claims in respect ofquality guarantee. 3. The awarding entity shall require the contractor to provide security, if :

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1) the contract value exceeds the expressed in PLN equivalent of EUR 60 000 for works; 2) the contract value exceeds the expressed in PLN equivalent of EUR 5 000 000 for supplies andservices; 3) a procurement contract is to be concluded for a period longer than 3 years, except forprocurement contracts, referred to in Article 142 paragraph 4 and Article 143.

4. In exceptional situations, in particular where the request to security could prevent the award of a contractor result in a significant increase in the price of tenders, the awarding entity may with the consent of thePresident of the PPO expressed by a administrative decision waive the demand for a security.

Article 148

1. The security may be provided at the contractor's choice in one or several of the following forms:

1) cash; 2) bank suretyship; 3) bank guarantees; 4) insurance guarantees; 5) sureties granted by entities, referred to in Article 6 paragraph 3 item 4 letter b of the Act of 9November 2000 on the establishment of the Polish Agency for the Development ofEntrepreneurship (Polskiej Agencji Rozwoju Przedsiębiorczości).

2. With the approval of the awarding entity a security may be provided also:

1) in bills of exchange with bank suretyship; 2) by establishing a pledge on securities issued by the State Treasury or unit of territorial self-government; 3) by establishing a registered pledge, in accordance with the principles laid down in the provisionsconcerning registered pledges and the pledge register.

3. A contractor shall remit security to be provided in cash by bank transfer to a bank account indicated bythe awarding entity. 4. In the event of a deposit made in cash a contractor may agree to count the amount of the deposit towardsthe security. 5. In the event of a cash security the awarding entity shall keep it on a bank account bearing interest. Theawarding entity shall return security provided in cash together with interest resulting from the bank accountagreement on which it has been kept less the cost of its operation and bank commission for transfer of fundsto the contractor's bank account.

Article 149.

1. In the course of the execution of a procurement contract the contractor may change the form of securityto one or several of those referred to in Article 148 paragraph 1. 2. With the approval of the awarding entity the contractor may change the form of the security to one orseveral of those referred to in Article 148 paragraph 2. 3. The change of the form of security shall be made preserving its continuity and without decreasing itsamount.

Article 150.

1. The amount of the security shall be determined on a percentage-wise basis in relation to the aggregateprice quoted in the tender or the maximum nominal value of the awarding entity's commitment under thecontract, if unit price or unit prices have been quoted in the tender. 2. A security shall be fixed at 2 to 10% of the price quoted in the tender or the maximum nominal value ofthe awarding entity's commitment under the contract. 3. If the time for the completion of the contract exceeds one year, the security, with the consent of theawarding entity, may be established by deductions from dues for the already performed part of supplies,services or works 4. In the case, referred to in paragraph 3, a contractor shall be required to contribute at least 30% of thesecurity amount on the date of the contract.

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5. The awarding entity shall pay the amounts deducted to the bank account on the same day on which itpays invoices. 6. In the case, referred to in paragraph 3, payment of the full amount of the security shall be done not laterthan by the end of the first half of the period for which the contract was concluded.

Article 151.

1. The awarding entity shall return the security within 30 days of the completion of the contract andacknowledgement by the awarding entity as duly performed. 2. The amount retained to secure claims for warranty for defect or guarantee of quality shall not exceed30% of the amount of the security. 3. The amount referred to in paragraph 2, shall be returned not later than on the 15th day following theexpiry of the period of warranty for defect or quality guarantee.

Title VPresident of the Public Procurement Office (PPO)Chapter 1Scope of activitiesArticle 152.

1. President of the PPO is a central government body competent for matters concerning public contracts. 2. President of the PPO shall be subordinate to the Prime Minister. 3. President of the PPO shall be assisted in his work by the Office. 4. The organisation of the PPO shall be defined by a statute issued by the Prime Minister by means of anorder.

Article 153.

1. President of the PPO shall be appointed by the Prime Minister from among the candidates selected byopen competition. 2. President of the PPO may only be a person who fulfils the following requirements:

1) is a Polish citizen;2) has higher education;3) has knowledge concerning the functioning of public procurement system;4) enjoys irreproachable reputation;5) enjoys all public rights;6) has not been convicted of an offence committed intentionally.

3. The President's term of office shall be 5 years. He may be re-elected only once. The President shallremain in office until the appointment of his successor. 4. The President's term of office shall expire upon his death or dismissal. 5. The Prime Minister shall dismiss the President of the PPO in the event:

1) of a resignation; 2) loss of the ability to fulfil the responsibilities entrusted to him due to an illness lasting at least 6months or any other long-term impediment preventing him from fulfilling his functions asPresident; 3) conviction by a valid judgement of an offence, referred to in paragraph 2 item 6; 4) suspension referred to in paragraph 6, if it lasts more than 6 months; 5) blatant infringement of this Act

6. The Prime Minister having obtained the opinion of a minister competent with respect to the matters ofpublic administration and the Council for Public Procurement may suspend the President of the PPO in hisduties in the event of him being charged with the offence referred to in paragraph 2, entrusting his duties tothe Vice President of the PPO. 7. The period of suspension, referred to in paragraph 6, shall last until the end of criminal proceedings. 8. The President of the PPO shall retain the right to remuneration during the period of suspension. 9. Member of the competition board may only be a person who guarantees impartiality in fulfilling hisactivities in public interest.

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10. The Prime Minister shall specify by means of regulation rules of conducting of the competition referredto in paragraph 1, rules concerning the appointment of the competition board together with requirementsconcerning its members, taking into account the ensuring of open character of the competition, objectiveselection of the candidates and transparency of the proceedings of the competition board.

Article 154.

The President of the PPO:

1) prepares drafts of normative acts on public contracts;2) takes decisions on individual issues stipulated in this Act;3) issues the Public Procurement Bulletin (Biuletyn Zamówień Publicznych) where noticesstipulated in this Act are published;4) keeps and publicises in the Public Procurement Bulletin a list of arbitrators examining appealsagainst dismissal or rejection of protest lodged in contract award procedures;5) keeps and publishes in the Public Procurement Bulletin a list of organisations authorised tosubmit law enforcement measures;6) ensures the functioning of the system of law enforcement measures;7) prepares training programmes, organises and encourages training in the field of publicprocurement;8) prepares and disseminates standard criteria for assessment of the substance of the training; 9) at the request of entities conducting training evaluates conformity with criteria, referred to initem 8 and disseminates its results; 10) disseminates standard forms of public procurement contracts, regulations and other documentsused in awarding public contracts;11) watches over observance of the public procurement system rules and in particular carries outchecks of the contract award process within the scope stipulated in this Act;12) disseminates the principles of professional ethics of persons performing tasks within the publicprocurement system;13) seeks to ensure uniform application of legislation on public contracts by, in particular,interpreting it taking into consideration the judgements of the courts and the ConstitutionalTribunal; 14) maintains international co-operation on issues relating to public contracts;15) analyses the functioning of the system of public contracts; 16) prepares and submits to the (Polish) Council of Ministers and to the European Commissionannual reports on the functioning of the system of public contracts.

Article 155.

1. The President of the PPO shall perform the tasks provided for in this Act with the assistance of no morethan two Vice Presidents. 2. The Vice Presidents of the PPO shall be appointed and recalled by the Prime Minister on request of thePresident of the PPO. The provisions of Article 153 paragraph 2 shall apply accordingly.

Article 156.

1. Special funds of the PPO shall be established, hereinafter referred to as "special funds". 2. Special funds shall be created from the following sources:

1) registration fees paid by appellants; 2) payments made by persons participating in appeal procedures resulting from the differencebetween the registration fee and costs awarded by the arbitration panels deciding on appeals; 3) interest on the funds referred to in items 1 and 2.

3. The special funds are used to finance:

1) arbitrators' fees; 2) reimbursement of expenses to arbitrators; 3) reimbursement of the registration fee; 4) expenses of the PPO incurred in connection with appeals procedures;

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5) expenses in connection with training of arbitrators.

4. Additionally, the special funds originating from the sources referred to in paragraph 2 item 3 may be usedto finance the cost of court proceedings adjudged from the President of the PPO in connection with theexercise of his rights under this Act and also other costs of the functioning of the checking system and thesystem of law enforcement measures.

Chapter 2Council for Public ProcurementArticle 157.

1. The Council for Public Procurement shall hereby be established, hereinafter referred to as the "Council",which is an advisory and consultative body of the President of the PPO. 2. The Council shall in particular:

1) express its opinions on particularly important matters of the public contracts system presented toit by the President of the PPO; 2) give its opinion on normative acts concerning public contracts; 3) give its opinion on the annual reports of the President of the PPO concerning the functioning ofthe public contracts system; 4) establish the principles of professional ethics of persons performing tasks specified in this Actwithin the public contracts system.

Article 158.

1. The Council shall be composed of 10 to 15 members appointed by the Prime Minister from among thecandidates presented by the President of the PPO. 2. Parliamentary groups, national self-government organisations and national entrepreneurs organisationsshall be in particular entitled to offer candidates. 3. The Prime Minister shall appoint members of the Council from among persons who:

1) are Polish citizens; 2) enjoy all public rights; 3) have not been convicted of an offence committed in connection with a contract awardprocedure, bribery or any other offence committed in order to gain a financial benefit; 4) have the knowledge and authority giving a guarantee of proper performance of the Council'stasks.

4. The Prime Minister shall appoint from among the persons referred to in paragraph 1, the Chairman of theCouncil. The Council shall appoint the Vice Chairman of the Council from among its members. 5. Members of the Council are entitled to remuneration for participation in Council's works. 6. The operation of the Council shall be regulated by the rules of procedure adopted by the Council.

Article 159.

1. The term of office of the Council shall expire together with the term of office of the President of the PPO.

2. Membership in the Council shall expire in the event of expiry of the term of office of the Council, deathof its member, his dismissal or resignation. 3. The Prime Minister shall recall a member of the Council if he ceased to satisfy one of the conditionsreferred to in Article 160 paragraph 2 items 1 - 3, and on request of the President of the PPO in the eventof:

1) the failure to fulfil the obligations of the Council's member; 2) loss of authority guaranteeing proper performance of the Council's tasks; 3) illness preventing him from carrying out the functions of a member of the Council.

Article 160.

1. The PPO provides assistance to the proceedings of the Council. 2. The Prime Minister shall specify, by a regulation, the amount of remuneration of the Chairman, Vice

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Chairman and other members of the Council, taking into consideration performed functions and the scopeof duties of the Chairman, Vice Chairman and other members of the Council.

Chapter 3Contract award checkingArticle 161.

1. The President of the PPO shall check the award of contracts. 2. The objective of checks is to verify the conformity of contract award procedures with this Act. 3. The check shall take place in the seat of the PPO.

Article 162.

1. Excluded form participation in the checks shall be employees of the PPO who:

1) participated in the procedure being checked or actions directly connected with their preparationon the part of the awarding entity or a contractor; 2) are relatives by marriage, blood or affinity in direct line or are relatives by blood or affinity inindirect line up to the second degree, or relatives by adoption or guardianship with the personappearing on the part of the awarding entity or a contractor in the procedure being checked, hislegal agent or members of managing or supervisory bodies of legal persons competing for thecontract being checked; 3) during the three years prior to the date of the start of the award procedure being checkedremained in a relationship of employment or service with the contractor or if the persons weremembers of managing or supervisory bodies of legal persons competing for the contract beingchecked; 4) remain in such legal or actual relationship with the person appearing on the part of the awardingentity or contractor in the procedure being checked, which may raise justified doubts as to theirimpartiality.

2. The employee of the PPO shall inform the President of the PPO about reasons of his exclusion from theparticipation in a check. 3. The President of the PPO shall decide on the exclusion of the employee by means of a decision.

Article 163.

1. The check shall be commenced by the submission of a request to the awarding entity to deliver a copy ofthe documentation relating to the contract award procedure certified for the conformity with the original,subject to Article 167 paragraph 3. 2. Facts are established on the basis of collected evidence. 3. Documents and explanations, referred to in Article 164 paragraph 2, and also expert opinions shall, inparticular, constitute evidence. 4. The evidence shall be enclosed as an annex to the check report, referred to in Article 165.

Article 164.

1. The President of the PPO may request from the head of the awarding entity to forthwith submit copies ofthe documents relating to the contract award procedure certified for the conformity with the original. 2. The President of the PPO may request from the head of the awarding entity and his employees to providewritten explanations of matters relating to the object of a check within the time limit laid down by him. 3. Where determining or evaluation of the factual state of affairs or performance of any other checkingactions requires special knowledge the President of the PPO may consult experts.

Article 165.

1. Following the check a check report is prepared. 2. The check report shall in particular include:

1) the name (company name) and address of the awarding entity; 2) date of commencement and end of a check;

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3) names of persons performing the check; 4) indication of the contract award procedure, which were the object of the check; 5) information on findings of infringement and names of persons responsible; 6) list of annexes.

Article 166.

1. Following the check the President of the PPO shall send to the awarding entity information concerning itsfindings. 2. Information on the results of the check shall constitute an annex to the check report and the reportreferred to in Article 96.

Article 167.

1. The President of the PPO may carry out a check of awarded contract prior to the conclusion of aprocurement contract (ex-ante check). 2. The President of the PPO shall carry out an ex-ante check, where the contract value:

1) for works - exceeds the expressed in PLN equivalent of EUR 10 000 000, 2) for supplies and services - exceeds the expressed in PLN equivalent of EUR 5 000 000.

3. In the case of procedures referred to in paragraph 2, the awarding entity shall submit to the President ofthe PPO for ex-ante check copies of the documentation of the contract award procedure certified by thehead of the awarding entity for the conformity with the original, immediately after selecting the best tender,and if the protest concerning the selection of the best tender has been lodged - after its final resolution butprior to the conclusion of a contract.

Article 168.

1. The ex-ante check shall be commenced not later than within 7 days of the date on which the informationon the selection of the best tender was communicated to the President of the PPO subject, however, toArticle 167 paragraph 3 2. .In the case of the lodge of a protest after the start of an ex-ante check, the President of the PPO shallsuspend its execution until the final resolution of the protest. 3. In the case of the start of ex-ante check, no procurement contract shall be concluded until its completion. 4. The start of ex-ante check shall suspend the term during which a contractor must maintain his tender,until its completion. 5. The awarding entity shall forthwith notify participants in the procedure about the suspension of the termduring which contractors must maintain their tenders. 6. In the case of the expiration of the validity of a deposit during the check, the provisions of Article 24paragraph 2 item 4 shall not apply.

Article 169.

1. The end of an ex-ante check shall be the delivery of the information on the ex-ante check to the awardingentity. 2. The information on the ex-ante check shall include:

1) description of the contract award procedure, which was the object of the check; 2) information on confirmation of infringement or lack of infringement; 3) post-checking recommendations.

3. Information concerning the results of the ex-ante check shall be submitted not later than within 14 days ofthe date on which the requested documents and explanations have been submitted. 4. In post-checking recommendations the President of the PPO may indicate the obligation to perform acertain action or repeat some action which has been performed infringing the provisions of this Act. 5. The head of the awarding entity shall forthwith notify the President of the PPO and the contractor, whosetender has been considered as the most advantageous about having carried out the post-checkingrecommendations. 6. A contractor may refuse to sign a public contract in the case of non-performance of the post-checking

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recommendations by the awarding entity. Article 46 paragraph 5 item 1 shall not apply.

Article 170.

1. The President of the PPO may carry out a check of the awarded contract within 3 years of its award (ex-post check). 2. Following the end of the ex-post check the President of the PPO shall send the entity subject to checkinginformation about the results of the ex-post check, which shall include:

1) description of the object of the contract, which was the object of the check; 2) information on confirmation of infringement or lack of infringement.

Article 171.

In the event of disclosed infringement of the provisions of this Act and implementing regulations issued onthe basis thereof the President of the PPO may:

1) notify the competent agent for public finance discipline of the violation of public financediscipline; 2) impose a financial penalty referred to in Title VII; 3) apply to the court for the statement of invalidity of the procurement contract in whole or in part.

Chapter 4ArbitratorsArticle 172.

1. The President of the PPO shall maintain and publish in the Public Procurement Bulletin the list ofarbitrators who examine appeals against dismissal or rejection of protests lodged in contract awardprocedures. 2. The following personal data of arbitrators shall be advertised:

1) name; 2) education; 3) profession; 4) degree or academic title.

3. The President of the PPO shall additionally collect and process the following personal data concerningarbitrators:

1) date and place of birth; 2) parents' names and mother's maiden name; 3) place of residence and address for correspondence; 4) data concerning education and professional career; 5) NIP number /taxpayer identification number/; 6) bank account number; 7) information concerning criminal record.

Article 173.

1. A person who satisfies the following conditions shall be eligible to become an arbitrator:

1) is a Polish citizen; 2) has higher education; 3) has full legal capacity to enter into legal transactions; 4) enjoys all public rights; 5) has not been validly convicted of offences committed intentionally; 6) during the past 5 years has not been stricken off the list of arbitrators for flagrant violation ofduty as an arbitrator.

2. The President of the PPO shall enter on the list of arbitrators persons satisfying the conditions referred toin paragraph 1, who passed the exam on the knowledge of rules governing the award of contracts before anexamination board appointed by the President of the PPO with the best results. Persons are entered on thelist of arbitrators by an administrative decision.

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3. An arbitrator shall submit to the President of the PPO by 31 March of each year a statement on:

1) currently pending penal procedures against him together with information about the object ofthese procedures; 2) his financial standing as of 31 December of the previous year.

4. An arbitrator shall submit the statement referred to in paragraph 3 item 2 on the form, which is specifiedin the provisions on restriction of performing economic activities by persons performing public functions. 5. An arbitrator's term of office shall be 6 years from the day on which his name was entered on the list ofarbitrators. 6. An arbitrator may be deleted from the list before the expiry of his term of office only in the followingcircumstances:

1) loss of Polish citizenship; 2) loss or restriction of capacity to enter into legal transactions; 3) loss of the enjoyment of all public rights; 4) valid conviction for an offence committed intentionally; 5) flagrant violation or persistent violation of the duties of an arbitrator; 6) refusal to take an oath; 7) failure to submit the statement referred to in paragraph 3; 8) submission by the arbitrator of a request to be deleted from the list.

7. Flagrant violation of the duties of an arbitrator referred to in paragraph 6 item 5, shall be regarded apartial performance of arbitrator's functions, acting as an attorney-in-fact in appeal procedures concerningpublic contracts, failure to submit a request for exclusion from the procedure in the case of thecircumstances preventing the arbitrator from performing his duties. 8. Arbitrators are deleted from the list by the President of the PPO by an administrative decision. 9. An arbitrator shall be suspended in his rights and duties where he is charged with having committed anoffence of bribery or any other offence committed in order to obtain financial benefit. 10. Information concerning persons entered on list of arbitrators, expiration of the term of office of anarbitrator or suspension in the rights and duties thereof shall be published by the President of the PPO in thePublic Procurement Bulletin.

Article 174.

1. Arbitrators shall be recruited to the list by the President of the PPO once every three years. 2. Recruitment notice shall be published in the Public Procurement Bulletin. 3. The notice shall in particular include:

1) information about the maximum number of persons who will be entered on the list of arbitratorsin the given recruitment proceedings; 2) time limit for receiving applications from candidates, which shall not be less than 30 days fromthe date the notice appeared in the Public Procurement Bulletin; 3) a list of documents which should be submitted together with the candidate's application, 4) the date of the examination referred to in Article 173 paragraph 2, and information about theminimum number of points needed to pass the examination.

4. Authorised to propose candidates for arbitrators shall be:

1) the President of the PPO; 2) ministers, heads of central government authorities and voivods; 3) organisations authorised to propose law enforcement measures; 4) national self government organisations; 5) regional clearing chambers; 6) regional chamber of advocates; 7) regional chamber of legal advisors.

Article 175.

1. Prior to undertaking their responsibilities arbitrators are obliged to take an oath before the President ofthe PPO by repeating the following words: "I hereby solemnly swear to diligently fulfil the duties of anarbitrator, to take impartial decisions, in accordance with the provisions of law, abide by the rules of ethics

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relating to arbitrators and to act being guided by the principles of dignity and honesty". Arbitrator confirmsthe taking of the oath by subscribing their signatures thereto. 2. Arbitrators shall be bound to act in line with the rules of ethics relating to arbitrators and in particular tofulfil their function with dignity and utmost diligence in an impartial manner. When examining an appealthe arbitrator represents neither the participants in the procedure nor the President of the PPO. 3. A person entered on the list of arbitrators shall not act as an attorney-in-fact in appeal proceduresconcerning public contracts. 4. An arbitrator shall be subject to legal protection provided for public officials. 5. An employer shall be bound to exempt an arbitrator from his duties for the time necessary for him tofulfil his function, including the function of an observer, without the right to remuneration for that period. 6. Arbitrators are entitled to remuneration for activities performed.

Article 176.

The Council of Ministers shall define, by a regulation, the procedure and conditions regulating entries onthe list of arbitrators, including the manner of appointing the examination board and conducting theexamination - taking into consideration the need to ensure objective verification of candidate's knowledgeand the fact that documents containing information subject to personal data protection and in particular theinformation from the National Register of Criminal Records may be required to confirm a candidate'scompliance with the conditions referred to in Article 173 paragraph 1.

Chapter 5ObserverArticle 177.

1. Award procedures, where the contract value:

1) for works - exceeds the expressed in PLN equivalent of EUR 10 000 000, 2) for supplies and services - exceeds the expressed in PLN equivalent of EUR 5 000 000 - shall besubject to mandatory checking consisting in the participation of an independent observer.

2. The awarding entity shall inform the President of the PPO about the start of the award procedure referredto in paragraph 1 within 3 days from its start. 3. Observers shall be appointed by the President of the PPO from among the persons entered on the list ofarbitrators. 4. An observer shall not be a person who remains in a legal or actual relationship with the awarding entitywhich can raise reasonable doubts as to his impartiality. 5. An arbitrator shall not be appointed to decide on an appeal lodged in the procedure in which heparticipated as an observer.

Article 178.

1. Observer shall be present during the work of the tender committee from the moment of the opening of thetenders. 2. Observer shall make an information note concerning the work of the tender committee and shall present itto the head of the awarding entity and the President of the PPO. 3. The note referred to in paragraph 2, shall constitute an annex to the report. 4. Remuneration for the actions of an observer shall be covered by the President of the PPO. 5. The Prime Minister, shall define by a regulation:

1) the rules governing the activities of an observer, 2) amount of remuneration for the activities of an observer. - taking into consideration the need toensure impartiality and efficiency in awarding contracts.

Title VILaw enforcement measures Chapter 1Common rules Article 179.

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1. Contractors and participants in the competition, as well as other persons whose legal interest in obtaininga contract has been or might have been prejudiced as a result of the infringement by the awarding entity ofthe provisions of this Act shall be entitled to law enforcement measures specified in this Title. 2. Prior to the final date for submission of tenders in the case of an infringement by the awarding entity ofthe provisions of this Act entitled to law enforcement measures are also organisations of contractors enteredon the list of organisations authorised to lodge law enforcement measures maintained by the President of thePPO. 3. Organisations of contractors, referred to in paragraph 2, should be understood as entities operating underthe provisions concerning:

1) commercial chambers; 2) crafts; 3) professional self-government of certain entrepreneurs; 4) employers' organisations; 5) professional self-governments of architects, civil engineers and town planners.

4. The President of the PPO shall enter on the list, reject to make the entry or strike off the list, referred toin paragraph 2, by means of administrative decision. 5. The list of organisations referred to in paragraph 2 shall be subject to advertisement in the PublicProcurement Bulletin.

Chapter 2Protests Article 180.

1. A written protest may be lodged to the awarding entity against acts performed by the awarding entity inthe course of procedure and in the event of a failure by the awarding entity to act it is bound to performunder this Act. 2. A protest shall be lodged within 7 days from the date on which the contractor may have or became awareof the circumstances constituting the basis thereof, subject to paragraph 3. The protest shall be deemed aslodged when delivered to the awarding entity in a manner allowing it to become familiarised with itscontents. These provisions shall apply to participants in the competition and the organisations referred to inArticle 179 paragraph 2 accordingly. 3. A protest referring to the provisions of the specification of essential terms of the contract shall be lodgednot later than 3 days before the final date for submission of tenders. 4. The lodging of a protest shall be admissible only before the conclusion of a contract. 5. The awarding entity shall reject any protests lodged after the final date or by an unauthorised entity. 6. A protest should indicate action or failure to act of the awarding entity under protest and should alsoinclude a demand, brief description of charges as well as factual and legal circumstances providing groundsfor the protest.

Article 181.

1. In the event of a protest lodged after the final date for submission of tenders, the period during which thecontractor must maintain his tender shall be suspended until the final resolution of the protest. 2. The awarding entity shall forthwith notify contractors who submitted their tenders about the suspensionof the period during which the contractors must maintain their tenders, calling upon them, under the pain ofexclusion from the procedure, to extend the validity of their deposits or to submit new deposits for anextended period. 3. The awarding entity shall forthwith notify contractors participating in the award procedure about theprotest, its content and charges. 4. Contractors participating in the award procedure, who join the protest within 2 days of receiving thenotice referred to in paragraph 3 shall also become participants in the protest procedure. 5. A contractor who did not join the protest shall not subsequently lodge a protest invoking the samecircumstances.

Article 182.

1. The awarding entity shall not conclude a contract until the final resolution of the protest.

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2. The protest shall be regarded as finally resolved:

1) where no appeal has been lodged - upon the expiration of the final date for the lodging ofappeals; 2) where an appeal was lodged:

a) on the date of the delivery of the decision ending the appeal procedure or the verdict ofthe arbitration panel, or b) on the date of the issue of the judgement or a decision ending the procedure in the caseby the Warsaw Regional Court, referred to in art. 195 paragraph 1, or upon the expiry ofthe final date for lodging complaints, if the contract value for works exceeds the expressedin PLN equivalent of EUR 10 000 000 and of EUR 5 000 000 for supplies and services.

3. At the request of the awarding entity the President of the PPO may, by means of administrative decision,express consent for conclusion of the contract prior to the final resolution of the protest, if, due to social oreconomic considerations which could not have been foreseen beforehand and which did not result from anyfault on the part of the awarding entity, there is an urgent need to award the contract.

Article 183.

1. The awarding entity shall resolve the protest not later than within 5 days from its lodging. Failure toresolve the protest within this time limit shall be regarded as its dismissal. 2. The awarding entity shall send the resolution of the protest together with reasons and advice on themanner and the time limit for lodging appeals to the entity which lodged the protest and contractors whojoined the protest. 3. In the case when the protest is admitted, the awarding entity shall repeat the action subject to protest orperform the illegally omitted action. 4. The awarding entity shall forthwith notify all contractors of any repetition or performance.

Chapter 3Appeals Article 184.

1. The appeal shall be available against a dismissal or rejection of a protest. 2. The appeal shall be lodged to the President of the PPO within 5 days of the date of delivery of theresolution of the protest or the expiry of the final date for the resolution of the protest, at the same timeinforming the awarding entity about lodging the appeal. The appeal delivered at the Polish post office shallbe regarded as submitted to the President of the PPO. 3. Appeal procedures shall be regulated by appropriate provisions of the [Polish] Code of Civil Procedureon the court of arbitration, unless this Act provides otherwise.

Article 185.

1. The appeal shall only be examined if the registration fee has been paid. The proof of payment should beattached to the appeal. 2. The amount of the registration fee may not exceed the costs of the procedure. 3. Where the registration fee has not been paid the President of the PPO shall return the appeal. ThePresident of the PPO decides about the return of the appeal by issuing a decision.

Article 186.

1. The appeal shall be examined by a panel of three arbitrators appointed by the President of the PPO fromthe list referred to in Article 172 paragraph 1. 2. The President of the PPO shall appoint arbitrators by public computer drawing. The chairman of thearbitration panel shall be drawn from persons with education in law. 3. Arbitrator shall notify the President of the PPO about circumstances preventing him from performing hisduties and in particular reasons for his disqualification. In the event of circumstances preventing thearbitrator from performing his duties the President of the PPO shall appoint another arbitrator. 4. The parties and arbitrators may request the disqualification of an arbitrator for reasons specified inArticle 703 § 1 of the Code of Civil Procedure. The President of the PPO decides about the disqualification

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or rejection to disqualify an arbitrator by issuing a decision. Decisions about disqualification or rejection todisqualify shall not be subject to appeal procedures.

Article 187.

1. The arbitration panel shall examine the appeal within 15 days from its lodging. 2. The arbitration panel shall examine the appeal at an open session, unless the appeal is subject torejection, subject to paragraph 3. 3. The arbitration panel rejects the appeal at a closed session, if it finds that:

1) the provisions of this Act are not applicable to the case; 2) the appeal was not preceded by a protest; 3) the protest or appeal has been lodged by an unauthorised entity; 4) the protest or appeal has been lodged in violation of the time limits specified in this Act; 5) the appellant bases his appeal on the same circumstances which were the object of a decision ofan arbitration panel concerning another appeal lodged by the same appellant in the sameprocedure; 6) the procedures shall be based on the rules referred to in Article 136 paragraph 1.

4. Should the arbitration panel consider this necessary, it may permit the parties, witnesses or experts toparticipate in the closed session. 5. If no grounds for rejection are found, the chairman of the arbitration panel closes the session and opens ahearing.

Article 188.

1. The parties are bound to adduce evidence in support of facts they derive legal consequences from. Theparties may present evidence in support of their arguments or against the arguments of the opposing partyall throughout the hearing. 2. The arbitration panel may admit evidence not adduced by the party. 3. Documents, depositions of witnesses, expert opinions and depositions of the parties shall in particular beregarded as evidence. 4. Facts of general knowledge shall not require the support of evidence. Evidence shall not be required inthe case of facts admitted in the course of the procedure by the opposing party, if the arbitration panelconsiders that this admission raises no doubts as to its conformity with the actual state of affairs. 5. The arbitration panel shall refuse to examine the evidence if facts on which they are based have alreadybeen confirmed by other evidence or if they have been adduced only for the purpose of causing delay. 6. The arbitration panel shall evaluate the reliability and importance of the evidence in accordance withtheir own belief and on the basis of thorough examination of the collected material.

Article 189.

1. An appellant may withdraw his appeal. In the case of withdrawal the arbitration panel shall discontinuethe appeal procedure. 2. If the appeal was withdrawn before the opening of the hearing, the appellant shall be reimbursed for halfof the registration fee.

Article 190.

1. The chairman of the arbitration panel shall close the hearing if in his opinion the case has beensufficiently clarified. 2. The arbitration panel bases its judgement on the state of affairs determined in the course of theprocedure. 3. The chairman of the arbitration panel shall reopen a session or a hearing if new circumstances material tothe resolution of the appeal have been disclosed thereafter. 4. A judgement may only be issued by the arbitration panel before which the procedure was conducted.

Article 191.

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1. The arbitration panel issues a judgement on the dismissal or admission of an appeal. In all other cases thearbitration panel issues decisions. 2. In examining an appeal, the arbitration panel may order the awarding entity to perform or repeat theperformance of an action or cancel it. 3. The arbitration panel cannot decide on charges which have not been included in the protest.Circumstances resulting in the cancellation of the contract award procedure shall be considered by thearbitration panel ex-officio. 4. The arbitration panel cannot order parties to conclude a contract. 5. In the judgement and in the decision ending the appeal procedure the arbitration panel settles the issue ofthe costs of the appeal procedure. 6. The parties shall bear the costs of the procedure appropriately to the results thereof.

Article 192.

1. The arbitration panel shall prepare ex-officio reasons to the judgement and the final decision ending theappeal procedure. 2. The reasons, referred to in paragraph 1, shall contain the indication of the factual grounds of the decisionincluding established facts, which the panel recognised as proven, evidence on which it based its decisionand reasons for which it found other evidence unreliable and devoid of probative value as well as indicationof the legal grounds of the judgement quoting also the provisions of the law. 3. Immediately after drafting of the judgement or the decision ending the appeal procedure the chairman ofthe arbitration panel announces its decision. Decisions are announced at open sessions. Non-attendance ofthe parties shall not prevent the decision from being announced. 4. If the case is complex the arbitration panel may defer the announcement of the judgement or the decisionending the appeal procedure for no more than 5 days. In the decision to defer the announcement the panelfixes the date of the announcement. Deferred decisions may be subsequently announced by the chairman ofthe arbitration panel alone. 5. Transcripts of the judgement or the final decision ending the appeal procedure together with the reasonsshall be delivered to the parties forthwith.

Article 193.

The Prime Minister shall define by means of regulation:

1) the rules of procedure concerning the examination of appeals, taking into consideration the needto ensure efficient organisation of the session and the hearing, fast progress of appeal proceduresand the public nature of hearings, 2) the amount of remuneration for actions performed by arbitrators, taking into consideration thefact that the amount constituting the basis for determining the remuneration for actions ofarbitrators examining appeals lodged during the contract award procedure should be the baseamount determined in the budget act for the given year, pursuant to Article 9 paragraph 1 item 2 ofthe Act of 23 December 1999 on the remuneration in the state-budget sector and on amendingcertain acts (Dz. U. No 110 item 1255, of 2000 No. 19 item 239, of 2001 No 85 item 924, No 100item 1080 and No 154 item 1784 and 1799 and also of 2002 No 74 item 676) for the employees ofthe state-budget sector referred to in Article 5 item 1 letter b) of this Act, 3) the amount and detailed rules for collecting appeal registration fees and detailed rules forallocating costs in the appeal procedures, taking into consideration the fact that the amount of theregistration fee should not exceed the costs of the procedure, and grounds for the reimbursement ofthe party for the required costs of necessary vindication of rights or necessary defence.

Chapter 4Complaints to courtArticle 194.

1. The complaint to the court may be lodged against the judgement or the final decision of the arbitrationpanel ending the appeal procedure. 2. Appropriate provisions of the Code of Civil Procedure concerning appeals shall apply accordingly toprocedures pending as a result of a lodged complaint, unless the provisions of this Chapter provideotherwise.

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Article 195.

1. Complaints shall be lodged to the regional court competent for the seat or place of residence of theawarding entity. 2. Complaints are lodged through the President of the PPO within 7 days of the delivery of the arbitrationpanel decision, sending at the same time its copy to the opposing party of the complaint. 3. The President of the PPO shall deliver the complaint together with the files of the appeal procedure to thecompetent court within not more than 7 days from the date of its receipt. 4. Within not more than 21 days of the issuance of the decision the complaint may be lodged also byPresident of the PPO. The provisions of the Code of Civil Procedure on prosecutor shall apply respectivelyto actions taken by the President of the PPO.

Article 196.

1. The complaint should satisfy the requirements provided for a pleading and should contain the indicationof the decision complained against, description of charges with a brief substantiation, adduced evidence, aswell as a request to change the decision in whole or in part. 2. Where the contract value for works exceeds the expressed in PLN equivalent of EUR 10 000 000, and forsupplies and services of EUR 5 000 000 the awarding entity may in the complaint or in the response to thecomplaint request the prohibition on concluding the contract to be revoked before the final decision on theprotest. The court shall forthwith examine the request to revoke the prohibition on concluding the contractbefore the final decision on the protest, not later however, than within 7 days of the date on which it wassubmitted. 3. The court may revoke the prohibition on concluding the contract before the final decision on the protestwhere permitted by the current state of the award procedure and the awarding entity shall make plausiblethat the decision of the arbitration panel complained against constitutes a flagrant infringement of theprovisions concerning appeal procedures.

Article 197.

1. The court shall, at closed session, reject a complaint which has been lodged after the final date or isinadmissible for other reasons, as well as a complaint, the defects of which have not been remedied by theparty within the specified time limit. 2. Where the party failed to perform any legal action within the specified time limit not because of its ownfault, the court shall reinstate the said time limit upon its request. A decision on this matter may be issued atclosed session. 3. The pleading with the request to reinstate the time limit should be submitted to the court within 7 daysfrom the end of the cause of the default.

Article 198.

1. The court shall examine the complaint forthwith, however not later than within 3 months from the date ofits receipt by the court. 2. The court shall dismiss the complaint if it considers it unjustified. If the complaint is admitted the courtshall reverse the decision complained against and decide on the merit of the case. 3. If the appeal is rejected or there are grounds to discontinue the procedure, the court shall cancel thejudgement and reject the appeal or discontinue the procedure. 4. Cassation shall not be available in the case of the judgement.

Title VIILiability for infringement of provisions of this ActArticle 199.

The provisions of this Title are not applicable to the awarding entities mentioned in Article 3 paragraph 1items 1, 5 and 6.

Article 200.

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The awarding entity who:

1) awards a contract: a) infringing upon the provisions of this Act laying down the prerequisites for the application of theindividual contract award procedures, b) without the required notice;

2) cancels the contract award procedure infringing upon the provisions of this Act laying down theprerequisites for cancellation; 3) performs acts provided for in this Act without the required consent of the President of the PPO; 4) modifies the concluded contract infringing upon the provisions of this Act ; - shall be subject to a financial penalty.

Article 201.

1. The amount of the financial penalty, referred to in Article 200, shall be determined depending on thecontract value. 2. Where the contract value:

1) does not exceed the expressed in PLN equivalent of EUR 60 000 - the financial penalty shall bePLN 3 000; 2) exceeds the expressed in PLN equivalent of EUR 60 000 but is less than EUR 5 000 000 forservices and supplies and EUR 10 000 000 for works - the financial penalty shall be PLN 30 000; 3) exceeds the expressed in PLN equivalent of EUR 5 000 000 for services and supplies and EUR10 000 000 for works - the financial penalty shall be PLN 150 000.

Article 202.

1. The financial penalty shall be imposed by the President of the PPO by means of an administrativedecision. 2. The decision to impose a financial penalty cannot be issued with the clause of immediate enforceability.

Article 203.

1. The financial penalty constitutes the revenue of the state budget. 2. Financial penalties shall be subject to collection under the provisions concerning execution proceedingsin administration with regard to the execution of duties of pecuniary nature.

Title VIIIAmendments to the provisions in forceArticle 204.

In the Act of 5 July 1996 on profession of nurses and midwives (Dz.U. of 2001 No 57, item 602 and No 89,item 969 and of 2003 No 109, item 1029), paragraph 3 of Article 10w shall be read as follows: "3. The selection of the organiser carrying out specialised education financed from public funds shall bemade by the minister competent for health matters with the application of the provisions concerning publiccontracts."

Article 205.

In the Act of 21 August 1997 on real estate management (Dz.U. of 2000 No 46, item 543 with furtheramendments)1 , paragraph 2 of Article 189 shall be read as follows: "2. The administrator or entrepreneur, referred to in paragraph 1, shall be appointed under the provisionsconcerning public contracts."

Article 206.

In the Act of 4 September 1997 on division of competencies in government administration (Dz.U. No 159,item 1548, No 162, item 1568 and No 190, item 1864) the following amendments shall be introduced:

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1) paragraph 2 of Article 6 shall be read as follows: "2. The Minister competent for public administration shall supervise the President of the HighMining Authority and, on the basis of the law compliance criteria, the activities of regional auditchambers."; 2) in item 12 paragraph 1 of Article 33a the full stop shall be replaced by the comma and item 13 isadded to be read as follows: "13) The Public Procurement Office."

Article 207.

In the Act of 13 October 1998 on the social security system (Dz.U. No 137, item 887 with furtheramendments)2 the following amendments shall be introduced:

1) Article 64 paragraph 2 shall be read as follows: "2. The entity governing the FRD funds should be chosen under the negotiated procedure withpublication or negotiated procedure without publication. The provisions concerning publiccontracts shall apply accordingly."; 2) Article 68 paragraph 2 shall be read as follows: "2. Within the framework of the project specified in paragraph 1 item 1 letter f) the Company shallaward contracts whose value do not exceed the expressed in PLN equivalent of EUR 60 000 foradditional opinions of the consultant physician or psychologist and the results of hospitalobservations - in accordance with the requirements of medical decisions with the exclusion of theprovisions concerning public contracts.".

Article 208.

In the Act of 26 November 1998 on public finances (Dz.U. of 2003 No 15 item 148, No 45 item 391, No 65item 594 and No 96 item 874) the following amendments shall be introduced:

1) Article 28 paragraph 4 shall be read as follows: "4. Units of the public finances sector shall purchase supplies, services and works in accordancewith the rules laid down in the provisions concerning public contracts."; 2) Article 44 shall be read as follows : "Article 44. The provisions referred to in Article 28 paragraph 4 shall not apply to the taking outloans and credits by the State Treasury, issue of treasury securities and other transactions directlyconnected with the management of the public debt of the state, "; 3) item 5 in Article 92 item 5 shall be read as follows : "5) assignment of tasks should be done on the basis of the selection of the most advantageoustender, taking into consideration the provisions concerning public contracts, and in relation to non-profit entities by the procedure of the open choice of the best tender within the meaning of theprovisions concerning public contracts with the appropriate application of Article 25 and Article71,"; 4) item 12 in paragraph 1 of Article 138 paragraph 1 item 12 shall be read as follows: "12) violation of the principle, form or procedure of public contract award, laid down in theprovisions referred to in Article 28 paragraph 4,".

Article 209.

In the Act of 10 September 1999 on certain compensatory contracts concluded in relation with supplycontracts for the purposes of state defence and security (Dz.U. No 80, item 903 with further amendments),Article 9 paragraph 1a shall be read as follows:"1a. If the submitted offset tender does not fulfil the requirements specified in the Act or in the specificationof essential terms of the contract, the minister competent for economic matters may require it to besupplemented within a specified time limit and scope. If the offer is not supplemented within the specifiedtime limit, the minister competent for economic matters shall inform the person conducting the awardprocedure about the circumstances referred to in Article 24 paragraph 1, item 10 and paragraph 2, item 3and 4 of the Act of 29 January 2004 - Public Procurement Law (Dz. U. No 19, item 177) and shall transferthe relevant documentation.

Article 210.

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In the Act of 7 October 1999 on the support of restructuring process of the industrial defence potential andtechnological modernisation of Poland's Armed Forces (Dz.U. No. 83, item 932 with further amendments)3item 4 in Article 16 shall be read as follows:"4) the provisions of Article 23 paragraph 1 item 3 of the Act of 29 January 2004 - Public Procurement Law( Dz. U., No 19, item 177)

Article 211.

In the Act of 21 January 2000 on amendments to certain acts relating to the functioning of the publicadministration (Dz.U. No 12, item 136 with further amendments)4 the following amendments shall beintroduced:

1) paragraph 2 in Article 67 paragraph 2 shall be read as follows : "2. The agreement referred to in paragraph 1 shall not be subject to the provisions of Articles 33and 34 of the Act on government administration in the voivodship and provisions on publiccontracts."; 2) Article 68 shall be deleted.

Article 212.

In the Act of 15 December 2000 on housing co-operatives (Dz.U. of 2001 No 4 item 27, No 57 item 601and No 154 item 1802 and of 2002 No 240 item 2058) paragraph 6 of Article 41 shall be read as follows :"6. In the selection of the contractor, referred to in paragraph 1, the co-operative shall apply the provisionsconcerning public contracts."

Article 213.

In the Act of 11 January 2001 on the control of potato starch market (Dz.U. No 11 item 83) paragraph 2 ofArticle 16 paragraph 2 shall be read as follows:

"2. The provisions concerning public contracts shall not apply to tenders for export of subsidised starch."

Article 214.

In the Act of 25 May 2001 on the restructuring, technological modernisation and financing of Poland'sArmed Forces in the years 2001-2006 (Dz.U. No 76 item 804, No 85 item 925 and No 154 item 1802, aswell as of 2002 No 205 item 1731) item 1 in paragraph 2 of Article 5 shall be read as follows: "1) may be concluded long-term contracts, which shall not be subject to the provisions of Article 29paragraph 6 of the Act of 26 November 1998 on public finances (Dz.U. of 2003 No 15 item 148, No 45item 391, No 65 item 594 and No 96 item 874) and Article 144 of the Act of 29 January 2004 - PublicProcurement Law (Dz.U. No 19,item 177)."

Article 215.

In the Act of 27 April 2001 - Natural Environment Protection Law (Dz.U. No 62 item 627 with furtheramendments)5 paragraph 2 of Article 213 paragraph 2 shall be read as follows: "2. The assignment, referred to in paragraph 1, shall be awarded under the provisions concerning publiccontracts, for a period of 5 to 8 years."

Article 216.

In the Act of 5 December 2002 on subsidising interest on fixed interest rate housing loans (Dz.U. No 230item 1922) paragraph 2 of Article 11 paragraph 2 shall be read as follows: "2. The selection of banks shall not be subject to the provisions concerning public contracts.".

Article 217.

In the Act of 23 January 2003 on general health insurance in the National Health Fund [Narodowy FunduszZdrowia] (Dz.U. No 45 item 391, No 73 item 660 and No 96 item 874) paragraph 2 of Article 76 paragraph

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2 shall be read as follows:"2. Article 29 and 30 of the Act of 29 January 2004 - Public Procurement Law (Dz.U No 19,item 177.)shall apply respectively to the conclusion of contracts for health services."

Article 218.

In the Act of 12 June 2003 on time limits for payments in trade transactions (Dz.U. No 139, item 1323) thefollowing amendments shall be introduced:

1) item 3 shall be read as follows: "3) entities referred to in art. 3 of the Act of 29 January 2004 - Public Procurement Law (Dz. U.No 19,item 177); 2) item 4 shall be deleted.

Article 219.

In the Act of 9 July 2003 on Military Intelligence Services (Dz.U. No 139, item 1326 and No 179, item1750) paragraph 2 of Article 12 shall be read as follows: "2. The costs of realisation of MIS activities within the scope of which the provisions on public finances,accountability and public contracts cannot be applicable with regard to the exclusion of their open charactershall be financed from the MIS operational fund created for this purpose."

Title IXInterim and final provisionsArticle 220.

1. The hitherto existing provisions shall apply to contract award procedures commenced prior to the date ofentry into force of this Act as well as to appeal and check procedures thereto. 2. The hitherto existingprovisions shall apply to public procurement contracts concluded prior to the date of entry into force of thisAct.

Article 221.

1. The Prime Minister shall announce the competition referred to in Article 153 paragraph 1 within 6months from the date of entry into force of this Act. 2. Until the President of the PPO is selected by competition, the duties of the President of the PPO shall befulfilled by the President appointed under the existing provisions.

Article 222.

The Prime Minister shall appoint the Council referred to in Article 157 paragraph 1 within 6 months fromthe date of entry into force of this Act.

Article 223.

1. For the period of 6 months from the date of entry into force of this Act appeals shall be examined byarbitrators entered on the list of arbitrators maintained by the President of the PPO prior to the date of entryinto force of this Act.2. The list of arbitrators referred to in paragraph 1, shall lose binding force within 6 months from the date ofentry into force of this Act.

Article 224.

The President of the PPO shall enter on the list of arbitrators, for the first term of their office, personsreferred to in Article 173 paragraph 2. However, the term of office of persons who passed the examinationwith the number of points lower than obtained by half the limit of persons who are to be entered on the listof arbitrators shall be 3 years.

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Article 225.

The Act of 10 June 1994 on public contracts (Dz.U. of 2002 No. 72, item 664, No. 113, item 984 and No.197, item 1661 and of 2003 No. 2, item 16) shall no longer apply.

Article 226.

The hitherto existing implementing provisions issued under Article 12, Article 14a paragraph 6 item 1,Article 22 paragraph 9, Article 25 paragraph 3, Article 35 paragraph 3 item 1, Article 86a paragraph 2 andArticle 92 paragraph 1 item 3 of the Act of 10 June 1994 on public contracts shall be applicable until thenew implementing provisions issued under Article 11 paragraph 6, Article 26 paragraph 4, Article 33paragraph 3, Article 96 paragraph 5, Article 152 paragraph 4 and Article 193 of this Act are issued,however no longer than during 9 months from the date of the entry into force of this Act.

Article 227.

This Act shall enter into force after 21 days following the date of its publishing, except:

1) Article 13 concerning the dispatch of the prior information notice to the Office for OfficialPublications of the European Communities; 2) Article 30 paragraph 2 item 4 and paragraph 4, Article 31 paragraph 4, Article 34 paragraph 1item 1, Article 40 paragraph 3, Article 43 paragraph 3 and paragraph 4 item 2, Article 49paragraph 3; 3) Article 49 paragraph 4 concerning the dispatch of the contract notice to the Office for OfficialPublications of the European Communities; 4) Article 52 paragraph 3 item 2, Article 62 paragraph 3, Article 90 paragraph 4, Article 92concerning the obligation to inform the President of the PPO about the selected tender, Article 95paragraph 2, Article 104 paragraph 3, Article 108 item 2, Article 116 paragraph 2, Article 118paragraph 4; 5) Article 128 concerning the dispatch of the periodical information notice to the Office forOfficial Publications of the European Communities; 6) Article 132 paragraph 1 item 2 and paragraph 2, Article 133, Article 134, Article 135; 7) Article 146 paragraph 1 item 1 concerning non-compliance with the requirement to dispatch ofthe contract notice to the Office for Official Publications of the European Communities; 8) Article 154 item 16 concerning the submission of the annual report on the functioning of thepublic procurement system to the European Commission; 9). Article 167, Article 168, Article 1698, Article 177, Article 178 - which shall enter into force on1 May 2004.