A T H E N A 1

EEUROPEAN UROPEAN UUNION NION ATHENAATHENA

20092009

EEUROPEAN UROPEAN UUNION NION ATHENAATHENA

20092009

Council decision 2008/975/CFSP of 18 December 2008 ( OJ 23/12/2008 L 345/96 )

A T H E N A 2

PROCUREMENTPROCUREMENT

AGENDAAGENDA

• General characteristicsGeneral characteristics– FrameworkFramework– Choice of the procedureChoice of the procedure– Time-linesTime-lines– PublicationPublication– DeviationsDeviations

• Procurement stepsProcurement steps

• TaxesTaxes

A T H E N A 3

1. GENERAL CHARACTERISTICS1. GENERAL CHARACTERISTICS

A. FrameworkA. Framework

Reference:Reference: ATHENA Financial Rules 2006 – Part IIATHENA Financial Rules 2006 – Part II(based on EC Directive 2004/18)(based on EC Directive 2004/18)

Applicable except for Berlin + operations (See Part IV)Applicable except for Berlin + operations (See Part IV)

To procure what?To procure what?– Anything eligible as common costs or « Nation Borne Costs »Anything eligible as common costs or « Nation Borne Costs »

→See ATHENA Annexes and Special Committee decisionsSee ATHENA Annexes and Special Committee decisions→No authority to contract outside ATHENA’s scopeNo authority to contract outside ATHENA’s scope→Otherwise: Illegality of the actOtherwise: Illegality of the act

– Ex:No outsourcing of military capabilities before authorization Ex:No outsourcing of military capabilities before authorization granted by Special Committeegranted by Special Committee

A T H E N A 4

Request to procure

New ATHENA procurement procedure

Valid Administrative arrangement

Contract already awarded by a MS, an EU Institution, an International organisation or a

Central Purchasing body

Purchase may be through

Request for derogation to the Special Committee

Nature of the envisaged procurement

Envisaged purchase is eligible for common funding or considered as Nation Borne Cost

Outsourcing of military capabilities

Authorization granted by the Special Committee

Sufficient appropriations are available in the budget

A T H E N A 5

1. GENERAL CHARACTERISTICS1. GENERAL CHARACTERISTICS

Procedure’s choice, Time-lines and DeviationsProcedure’s choice, Time-lines and Deviations

Estimated value

Thresholds

Possible Procedures

Time-lines

Operational Impact

Derogation

Derogation

A T H E N A 6

1. GENERAL CHARACTERISTICS1. GENERAL CHARACTERISTICS

Procedure’s choice, Time-lines and DeviationsProcedure’s choice, Time-lines and Deviations

• { [Min – Max] Value, Possible Procedure(s),{ [Min – Max] Value, Possible Procedure(s), Potential Procedure(s) obtained via a DerogationPotential Procedure(s) obtained via a Derogation } }

• { Type of Procedure, Normal Delays,{ Type of Procedure, Normal Delays, Minimum Time-lines obtained by a DerogationMinimum Time-lines obtained by a Derogation } }

A T H E N A 7

1. GENERAL CHARACTERISTICS1. GENERAL CHARACTERISTICS

B. Procedure’s choiceB. Procedure’s choice

• Applicable procedure determined by: Applicable procedure determined by:

– estimated cost excluding VAT, no splittingestimated cost excluding VAT, no splitting

– thresholdsthresholds

– Lower Threshold:Lower Threshold: 30.000 EUR 30.000 EUR

– Higher Threshold:Higher Threshold: 137.000 EUR for services 137.000 EUR for services

for supplies listed at Annexfor supplies listed at Annex 211.000 EUR for other supplies 211.000 EUR for other supplies5.278.000 EUR for public works5.278.000 EUR for public works

• Deviations: for simpler procedure, if admissible justificationsDeviations: for simpler procedure, if admissible justifications

A T H E N A 8

1. GENERAL CHARACTERISTICS1. GENERAL CHARACTERISTICS

Usual procedures iaw thresholdsUsual procedures iaw thresholds

• X < 5000 euros: payment on invoices possible (Imprest accounts)X < 5000 euros: payment on invoices possible (Imprest accounts)

• (5000 <) X < 30 000 euros (« (5000 <) X < 30 000 euros (« lower thresholdlower threshold »):  »): – negotiated procedurenegotiated procedure with 3, with 3, – but J8 may opt for negotiated procedure with 1, without formal but J8 may opt for negotiated procedure with 1, without formal

derogationderogation

• 30 000 euros < X < « 30 000 euros < X < « higher thresholdhigher threshold » »– negotiated procedurenegotiated procedure with 3, with 3, – but negotiated procedure with 1 possible with formal derogationbut negotiated procedure with 1 possible with formal derogation

• Above the « higher threshold »: Above the « higher threshold »: 137 / 211 keuros for services and goods,137 / 211 keuros for services and goods,5, 278 Meuros for infrastructure works5, 278 Meuros for infrastructure works– tenders, except where formal derogation (tenders, except where formal derogation (Open / Restricted ProceduresOpen / Restricted Procedures))

A T H E N A 9

1. GENERAL CHARACTERISTICS1. GENERAL CHARACTERISTICS

C. Normal DeadlinesC. Normal Deadlines

• Open tenderOpen tender- Without pre-information notice:- Without pre-information notice:

52 days or 40 if electronic means (Internet)52 days or 40 if electronic means (Internet)- - With pre-information notice:With pre-information notice:

22 days if Prior information notice22 days if Prior information notice

• Restricted ProceduresRestricted Procedures- Without pre-information notice- Without pre-information notice

37 days for requests to participate or 30 if Internet37 days for requests to participate or 30 if Internet 40 days to receive tenders or 35 days if Internet40 days to receive tenders or 35 days if Internet

- - With pre-information noticeWith pre-information notice 37 days for requests to participate or 30 if Internet37 days for requests to participate or 30 if Internet

22 days to receive tenders or 17 days if Internet22 days to receive tenders or 17 days if Internet

• Negotiated procedure with publication of a contract noticeNegotiated procedure with publication of a contract notice- Without pre-information notice:- Without pre-information notice:

37 days for requests to participate or 30 days if e-mail37 days for requests to participate or 30 days if e-mail

See « Procurement Guide – Time-lines »See « Procurement Guide – Time-lines »

A T H E N A 10

1. GENERAL CHARACTERISTICS1. GENERAL CHARACTERISTICS

D. PublicationD. Publication

• Above « higher threshold »:Above « higher threshold »:– in the EU Official Journalin the EU Official Journal– Can be done also in theatre (local press, chambers of commerce)Can be done also in theatre (local press, chambers of commerce)

• Below Below « higher threshold »:« higher threshold »:– Appropriate means (local press, …)Appropriate means (local press, …)– Could be done also in the EU Official JournalCould be done also in the EU Official Journal

• What to publish?What to publish? - Prior information notice- Prior information notice- Call for expression for interests- Call for expression for interests- Contract notice- Contract notice- Award notice- Award notice

A T H E N A 11

1. GENERAL CHARACTERISTICS1. GENERAL CHARACTERISTICS

E. DeviationsE. Deviations

• For what:For what:- For any For any simpler proceduresimpler procedure, including single source, including single source- For For shortened deadlinesshortened deadlines

- To receive the applications:To receive the applications: 15 days15 days- To receive the tenders:To receive the tenders: 10 days10 days

- For publication or For publication or geographical scopegeographical scope, …, …

• Above 30 000 eurosAbove 30 000 euros (formal justification needed) (formal justification needed)

• Which authority?Which authority?- 30 000 < X < 137 000 EUR:30 000 < X < 137 000 EUR: J8 J8 - 137 000 < X < 1 M EUR:137 000 < X < 1 M EUR: ATHENA’s administratorATHENA’s administrator- >1 M EUR:>1 M EUR: ATHENA’s Special CommitteeATHENA’s Special Committee

through the through the administratoradministrator

• Requests:Requests: from J8 to administrator by e-mail from J8 to administrator by e-mail

A T H E N A 12

1. GENERAL CHARACTERISTICS1. GENERAL CHARACTERISTICS

Which justifications for derogations?Which justifications for derogations?

(most frequently used)(most frequently used)

• Extreme urgencyExtreme urgency

• When for technical or artistic reasons, the contract may be When for technical or artistic reasons, the contract may be awarded only to one particular operator (ex: public awarded only to one particular operator (ex: public monopolies)monopolies)

• Acquisition or rental of land or existing buildingsAcquisition or rental of land or existing buildings

• Additional supplies, where a change in supplier would create Additional supplies, where a change in supplier would create technical difficulties (incompatibility, problems in technical difficulties (incompatibility, problems in maintenance)maintenance)

• Additional works or services, not exceeding 50% of initial Additional works or services, not exceeding 50% of initial worksworks

• Use of a national contractUse of a national contract, awarded in conformity with EC , awarded in conformity with EC DirectivesDirectives

A T H E N A 13

PROCUREMENTPROCUREMENT

AGENDAAGENDA

• General characteristicsGeneral characteristics– FrameworkFramework– Choice of the procedureChoice of the procedure– Time-linesTime-lines– PublicationPublication– DeviationsDeviations

• Procurement stepsProcurement steps

• TaxesTaxes

A T H E N A 14

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

1. Request1. Request

2. Make a commitment in the budget2. Make a commitment in the budget 3. Draw up technical specifications & administrative requirements3. Draw up technical specifications & administrative requirements 4. Determination of the procedure and impact on the delivery4. Determination of the procedure and impact on the delivery

5. Advertise5. Advertise 6. Select successful candidate6. Select successful candidate 7. Conclude a contract7. Conclude a contract

8. Check delivery8. Check delivery 9. Enter in the inventory9. Enter in the inventory 10. Pay against receipt10. Pay against receipt 11. Write off11. Write off

A T H E N A 15

1.1. To receive a requestTo receive a request– Collaboration between J*Collaboration between J*– Approval of the request by the Authorizing OffrApproval of the request by the Authorizing Offr

2.2. Make a commitment in the budgetMake a commitment in the budget– temptation for every section (J1, J4, J6) to buy and then temptation for every section (J1, J4, J6) to buy and then

bring the bill, especially early in operationbring the bill, especially early in operation– = reservation in the budget= reservation in the budget– should be avoided: should be avoided:

• budget is a limit and must be complied withbudget is a limit and must be complied with• budget must be managed: redeployment of budget must be managed: redeployment of

appropriations during operation are usually necessaryappropriations during operation are usually necessary• therefore, sequence « budget commitment then therefore, sequence « budget commitment then

contract or purchase order » should be complied withcontract or purchase order » should be complied with

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 16

3.3. a.a. Technical specificationsTechnical specifications::– essential, even if takes timeessential, even if takes time

– requirements must be proportionate to needs and duration requirements must be proportionate to needs and duration of operation (principle of economy)of operation (principle of economy)

– requirements must be sufficiently detailedrequirements must be sufficiently detailed

b. Administrative requirementsb. Administrative requirements::– candidates capacity to do the job essential, especially in candidates capacity to do the job essential, especially in

theatretheatre– security requirements security requirements – performance guarantee:performance guarantee:

– compulsory if pre-financing exceeds 150 000 euros or compulsory if pre-financing exceeds 150 000 euros or contact above 137 000 euros (5 to 10% of contract)contact above 137 000 euros (5 to 10% of contract)

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 17

4.4. Determination of the procedureDetermination of the procedure

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

Regulation

Type of Procedure

Delays

Date of delivery

Potential Derogation

A T H E N A 18

5. Advertise5. Advertise

– If above the « higher threshold » If above the « higher threshold » andand no deviation no deviation::

→in the Official Journal of the European Unionin the Official Journal of the European Union

– If below the « higher threshold »If below the « higher threshold » or or with a deviationwith a deviation::

→advertise by any means:advertise by any means:

– local chamber of commerce, confederation of industrylocal chamber of commerce, confederation of industry

– local presslocal press

→can resort to existing listscan resort to existing lists

(provided by Embassy, Commission delegation, etc.) (provided by Embassy, Commission delegation, etc.)

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 19

6. Select the successfull candidate6. Select the successfull candidate

– IfIf aboveabove the « higher threshold » and no deviation: the « higher threshold » and no deviation:→formal tender (double sealed envelopes)formal tender (double sealed envelopes)

– If belowIf below the « higher threshold » or with a deviation: the « higher threshold » or with a deviation:→negotiated procedure: negotiated procedure:

→negotiate price & services, works, suppliesnegotiate price & services, works, supplies

– In any caseIn any case→selection committee:selection committee: – appointed by authorising officer (Operation Commander, appointed by authorising officer (Operation Commander,

by delegation: local J8)by delegation: local J8)– at least 3 persons from 2 different sections of the HQ at least 3 persons from 2 different sections of the HQ

concerned (J8+technical branch concerned)concerned (J8+technical branch concerned)

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 20

6. Select the successfull candidate (6. Select the successfull candidate (continuedcontinued))

Criteria:Criteria:

– either the lowest price either the lowest price – should be the ruleshould be the rule

– or the best-value-for-moneyor the best-value-for-money– taking into account notably the capacity to do the job within taking into account notably the capacity to do the job within

the timeframethe timeframe

– must be specified in the specificationsmust be specified in the specifications– report on procedure, including reasons for selection report on procedure, including reasons for selection

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 21

7. Conclude a contract7. Conclude a contract

– in writing (to avoid doubts and conflicts)in writing (to avoid doubts and conflicts)

– 2 possible forms:2 possible forms:

– either a single document signed by the partieseither a single document signed by the parties

– or a signed commitment from the candidate (offer, or a signed commitment from the candidate (offer, acceptance of the conditions set out by the contracting acceptance of the conditions set out by the contracting authority), signed by the contracting authorityauthority), signed by the contracting authority

• Notify successful candidateNotify successful candidate

• Inform othersInform others

• Enter into accounts (Enter into accounts (legal commitmentlegal commitment))

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 22

8. Check delivery8. Check delivery

- If works or services: If works or services: → performance must be monitored closely & continuouslyperformance must be monitored closely & continuously→ conformity to contract must be assessedconformity to contract must be assessed - If supplies: If supplies: → delivery and conformity to contract must be assessed delivery and conformity to contract must be assessed

- In any case, delivery and acceptance of the works, In any case, delivery and acceptance of the works, services or supplies must be certified (by the technical services or supplies must be certified (by the technical branch concerned) before final payment may be madebranch concerned) before final payment may be made

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 23

9. Enter in the inventory9. Enter in the inventory

– Must be done immediately on acceptanceMust be done immediately on acceptance→Responsible branches must be made awareResponsible branches must be made aware

– All items with a period of use normally greater than one year All items with a period of use normally greater than one year →Not based on the value, but on normal durabilityNot based on the value, but on normal durability

& in accordance with the accounting policy& in accordance with the accounting policy(eg: portable phones should be on the inventory)(eg: portable phones should be on the inventory)

– Should contain: Should contain: – description of itemsdescription of items– location/person responsible location/person responsible – date of acceptancedate of acceptance– purchase costpurchase cost

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 24

10. Pay10. Pay

– Payments may be made:Payments may be made:– on account (upon ordering, before work starts)on account (upon ordering, before work starts)– as interim payments (usually according to progress)as interim payments (usually according to progress)– of the balance due after acceptance.of the balance due after acceptance.

– Payments on account should be kept minimalPayments on account should be kept minimal– Interim payments should be made based on acceptance Interim payments should be made based on acceptance

of partial delivery or progress madeof partial delivery or progress made– Final balance may be paid only after final acceptanceFinal balance may be paid only after final acceptance

– Two signatures required for any payment Two signatures required for any payment (authorizing officer + accounting officer)(authorizing officer + accounting officer)

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 25

11. Write off11. Write off

– Distinct from final destination of equipment, to be decided by Distinct from final destination of equipment, to be decided by Special Committee, at end of operationSpecial Committee, at end of operation

– In every HQ, a write-off committee:In every HQ, a write-off committee:– the head of the J8the head of the J8– the head of the branch responsible for the equipmentthe head of the branch responsible for the equipment– the head of the branch responsible for its maintenancethe head of the branch responsible for its maintenance

– < 30 000 euros: HQ’s commander may decide a write off< 30 000 euros: HQ’s commander may decide a write off– > 30 000 euros:HQ’s commander may decide> 30 000 euros:HQ’s commander may decide

with written assent of Write Off with written assent of Write Off CommitteeCommittee

– In case of loss or destruction: report filed by J8 and write offIn case of loss or destruction: report filed by J8 and write off

2. PROCUREMENT STEPS2. PROCUREMENT STEPS

A T H E N A 26

PROCUREMENTPROCUREMENT

AGENDAAGENDA

• General characteristicsGeneral characteristics– FrameworkFramework– Choice of the procedureChoice of the procedure– Time-linesTime-lines– PublicationPublication– DeviationsDeviations

• Procurement stepsProcurement steps

• TaxesTaxes

A T H E N A 27

3. TAXES3. TAXES

In theatre:In theatre:- SOFA provides exemption from taxes, customs SOFA provides exemption from taxes, customs

duties and customs proceduresduties and customs procedures- Except where taxes for services renderedExcept where taxes for services rendered

In the EU:In the EU:- Decision by Member States = TreatyDecision by Member States = Treaty- RatificationRatification

A T H E N A 28

PROCUREMENTPROCUREMENT

AGENDAAGENDA• General characteristicsGeneral characteristics

– FrameworkFramework

– Choice of the procedureChoice of the procedure

– Time-linesTime-lines

– PublicationPublication

– DeviationsDeviations

• Procurement stepsProcurement steps• TaxesTaxes

In SUMMARYIn SUMMARY

A T H E N A 29

ATHENA Procurement RulesATHENA Procurement Rules

ProceduresDerogation

Contract’s Preparation

Conduct of the Procurement process

Contract’s Execution

Time-lines…

A T H E N A 30

ATHENAATHENA Procurement Rules Procurement Rules

• ATHENA:ATHENA:– ProcedureProcedure

• > « Higher Treshold »:> « Higher Treshold »:– Open or Restricted ProcedureOpen or Restricted Procedure

• < « Higher Threshold »< « Higher Threshold »– Negoctiated ProcedureNegoctiated Procedure

» With or without PublicationWith or without Publication» Consultation of at least 3 candidatesConsultation of at least 3 candidates

– DelaysDelays induced by the Procedure chosen induced by the Procedure chosen– Potential use of DeviationsPotential use of Deviations

• Autority to grant determined by ThresholdsAutority to grant determined by Thresholds• Ex: Procedure, Time-line, Publication, …Ex: Procedure, Time-line, Publication, …

• Contract Preparation and execution:Contract Preparation and execution:– Like in the National organisationsLike in the National organisations– Ex: Correct specifications, contract in writing, reception of the goods Ex: Correct specifications, contract in writing, reception of the goods

before final payment, …before final payment, …

A T H E N A 31

PROCUREMENTPROCUREMENT

• Expected revision of the ATHENA procurement rulesExpected revision of the ATHENA procurement rules– Based on:Based on:

• Lessons identified during EU operationsLessons identified during EU operations

• New directive on “Public contracts in the field of defence and security”New directive on “Public contracts in the field of defence and security”

– Beginning of 2010Beginning of 2010

• Procurement GuideProcurement Guide– Documentary Fiches and templatesDocumentary Fiches and templates

– AvailabilityAvailability• Book, files, …Book, files, …

• www.athena.europa.euwww.athena.europa.eu

EEUROPEAN UROPEAN UUNIONNION

ATHENAATHENA

EEUROPEAN UROPEAN UUNIONNION

ATHENAATHENA

QUESTIONS ?