PUBLIC PROCUREMENT LAW IN LATVIA

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PUBLIC PROCUREMENT LAWIN LATVIA
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Legal Bases of thePublic Procurement Law

• the Law of 5 July 2001 on Procurement for State
  or Local Government Needs
• Cabinet Regulation No.257, adopted 8 April 2004
  Regulations Regarding Procurement for Needs of
  Providers of Public Services
• Both Laws are supplemented with secondary
  legislation

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Procurement Methods

• Open Competition
• Restricted Competition
• Price Quotation
• Negotiated Procedure
• Design Contest

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Thresholds (in LVL)

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Qualification Criteria Conditions for Excluding
Tenderers

• Insolvency
• Tax debts
• Violations of the professional activities
• No registration in cases prescribed by Law
• No corresponding certificate or license
• Pay-down of wages without tax payment

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Qualification Criteria Requirements and
Documents Regarding the Economic and Financial
Standing

• The contracting authority shall determine
  the minimal requirements with respect to the
  economic and financial standing and may require
  the tenderer to submit one or more of the
  following documents
• the annual accounts
• a statement regarding the tenderers financial
  turnover
• information regarding State social insurance
  payments from the income of the employer

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Qualification Criteria Requirements Regarding
Tenderers Capabilities

• The contracting authority shall determine the
  minimal requirements with respect to tenderers
  capabilities, inter alia
• experience
• qualification of the staff
• technical capacity
• quality assurance system

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Documents Regarding Tenderers Capabilities

• The contracting authority may request the
  tenderer to present or submit documents (only
  that are relevant to determined
  requirements),e.g.
• A list of relevant goods sold, services provided,
  information regarding works performed
• Information regarding personnel involved
• A description of the measures to ensure the
  quality
• A statement regarding which parts of the contract
  the tenderer plans to give to subcontractors.
• No special requirements for foreign tenderers are
  stated.

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Securities

• The contracting authority may request a tender
  security from tenderers.
• The competition regulation shall specify what
  types of tender security are acceptable.
• The contracting authority may request to provide
  in a contract a security for a contract
  (obligation).

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Forms of Participation

Tenderer a person or group of persons who have
submitted a tender.
Tenderers may join together in
groups irrespective of their type of commercial
activity and submit a joint tender.

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Submitting Variants

• If the contract award criteria is the lowest
  price, the tenderer may submit tender variants
  unless provided contrary in the competition
  regulation.
• If the contract award criteria is the most
  economically advantageous tender, the tenderer
  may submit tender variants only if so provided in
  the competition regulation.

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Form of Submitting the Tender

• A tenderer shall ensure that the information
  contained in the tender is not accessible until
  the moment of opening of the tender.
• The contracting authority states in
  competition regulations requirements with respect
  to documentation and submission of tenders
  (usually sewn together, in closed envelope(s)).
  

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Process of the Open Competition (1)

• Tender notification
• Providing of additional information
• Submission of tenders
• Opening of tenders
• Selection of tenderers
• Checking the conformity of tenders with the
  description of technical specifications and other
  requirements specified by the regulations

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Process of the Open Competition (2)

• Evaluation of the tenders regarding requirements
  in accordance with the evaluation criteria
• Taking a decision
• Notification of a decision
• Conclusion of contract

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Contract award criteria
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The most economically advantageous tender
quality experience of tenderer unit costs of
one product price (?40) and other criteria
Service contract
quality experience of tenderer unit costs after
completion of building price and other criteria
Works contract
price delivery date running costs
cost-effectiveness quality aesthetic and
functional characteristics technical
characteristics after-sales service and costs
technical assistance
Supply contract
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Procurement Monitoring Bureau

• Monitoring procurement procedures and
  supervision
• Colleting and analyzing statistical information
• Organizing training for contracting authorities
  and economic operators
• Reviewing complaints
• Prohibition the entering into contracts until
  the rectifying of violations and requesting the
  termination of the procurement procedure
• International co-operation in the area of public
  procurement
• Participation in publishing procurement notices

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Examining Complaints

• Procurement Monitoring Bureau forms a commission
• Commission consisting of not less than three
  members
• Members may not be persons who have previously
  provided consultations or who have an interest in
  the actual procurement

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Types of Complaints

• Complaint relating to the tenderer documentation
  it can be submitted not later than 6 working
  days before the final date for the submission of
  tenders.
• Complaint relating to the decision made by the
  contracting authority it can be submitted only
  before the contract is signed.

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Projects planed for the near future

• Northern crossing of river Daugava
• in Riga