For grant agreements under A-control mechanisms, the partner must comply with stricter procurement rules. The Commission does not request Contracting Authorities to follow a given procedure for the award of procurement contracts worth less than € 60.000, (Paragraph 3.6 of Annex IV), while the award of contracts for a value higher than € 60.000 shall be ruled by the provisions of Annex IV, further explained in the Humanitarian Aid Guidelines for Procurement. In both cases the procedure applied has to comply with the Mandatory Principles.
The estimated value of a contract may not be determined with a view to evading the requirements laid down in the following rules, nor may a procurement procedure be split up for that purpose.
Even if the Commission does not request Contracting Authorities to follow a given procedure for the award of procurement contracts worth less than €60.000, the procedure applied has to comply in any case with the principles of Transparency; Proportionality and Equal treatment and the criterion of Best Value for Money in the award of procurement contracts (Paragraph 2.3 of Annex IV). The requirement to check the exclusion criteria can be relaxed and the procurement documents can be shortened or simplified provided they include all the relevant elements necessary for Tenderer or Candidates to submit a bid. The award criteria, which shall be weighted, must always be indicated.
As for use of electronic means, tender documents and negotiations of terms and conditions can be sent by e-mail in all cases.
It is recommended, wherever possible, to have either a clear purchase order or a written contract for each financial engagement. These need not be long or complicated document but just a statement of main elements of the procurement contract. It is good practice that financial engagements of less significant amounts (below € 2.000) are done just on the basis of an invoice.
It is also suggested to appoint an evaluation committee only for contracts above € 2.000. The internal procedures of the Partner should clearly establish a system of empowerment for the signature award of contracts having due regard to their amount and a supervisory mechanism in order to ensure a robust internal control of the transactions. All award decisions have to be reasoned and supported by an appropriately documented procedure.
In this context one bid would seems reasonable for contracts under € 10,000 while two or three bids would seem more appropriate for contracts above € 10,000. In any case, the evaluation of proportionality must be determined by the Contracting Authority in light of its resources, the context of the procurement and its value. The Contracting authority must also retain the relevant documentation (whatever its form) proving that the application of the best value of money and absence of conflict of interests has been ensured.
In order to assess the compliance of the procedure used by the Contracting Authority with the Mandatory Principles, in particular the principles of Proportionality and Transparency, DG ECHO would recommend that for procurement under € 60,000 Contracting Authorities consider using the negotiated procedure which while not being too burdensome administratively still has the potential of securing good terms and conditions. This negotiated procedure may be based on one or more bids depending on the level of urgency, the market and the value of the contract. For example, if the Contracting Authority is particularly keen to secure the best value for money possible it should surely consider requesting two or more offers where feasible, on the other hand where the market is known to be limited it may not be worth while spending too much time trying to find several bids for a contract under € 60,000.
| Amount | Form | Documents |
|---|---|---|
| € 0,01 up to € 2.000 | Single Bid Negotiated Procedure | Invoice |
| € 2.001 up to € 10.000 | Single Bid Negotiated Procedure | Written contract; procurement process fully documented; evaluation committee |
| € 10.001 up to € 60.000 | Minimum of three quotes/offers (simplified Negotiated Procedure) | Written contract; procurement process fully documented; evaluation committee |
In accordance with article 3.6 of Annex IV, Contracting Authorities awarding procurement contracts with a value of more than € 60.000 in the Framework of Actions under the A control mechanism, have to apply procurement procedures stated in Humanitarian Aid Guidelines for Procurement. The choice of the applicable procurement procedure is based on the total value and on the type of the contract.
| Supply and Service contracts | Works Contracts | |
|---|---|---|
| Negotiated procedure (minimum of three candidates) | € 60.001 up to € 150.000 | € 60.001 up to 300.000 |
| Open Tender with local publication (minimum 21 days publication) | € 150.001 up to € 300.000 | € 300.001 up to € 3.000.000 |
| Open Tender with international publication (minimum 30 days publication) | More than € 300.000 | More than € 3.000.000 |
References and useful links