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The Public Procurement Office (hereinafter referred to as the VPN) regularly provides recommendations to procurers, taking into account frequently asked questions, problems in practice, difficulties encountered by procurers and suppliers in the performance of procurements and concluded contracts during the quarantine and post-quarantine period. All VPN messages related to the management of the COVID-19 threat can be found on the VPN website, in the dedicated section "Methodological Assistance" on "Coronavirus (COVID-19)" .
By repeating and supplementing the information notices already published, the VPN provides the following advice. It should be noted that many of the tips provided are relevant not only during a global pandemic, but also in preparation for purchases under normal conditions. A number of these pieces of advice were also provided at an exchange event organized by the Central Project Management Agency (CPMA) , which was also attended by a representative of the VPN.
Procurement planning and preparation for execution
Review and update its internal procurement procedures, taking into account issues encountered in the institutions practice. It is still not uncommon for public procurement procedures to require that the minutes or other document of the public procurement commission be physically signed by all members of the public procurement commission, leading to "live" meetings of the commission. The VPN has repeatedly stated that the meetings of the commission may be organized by all available means, the decisions of the members of the public procurement commission shall be recorded, minutes shall be drawn up and agreed by e-mail or other means available to procurers and signed either by electronic signatures or within a reasonable time.
As often as possible, procure using the offer of the Central Contracting Authoritys catalog. This catalog is constantly updated, new groups of goods, services and works appear in it, therefore it is necessary that procurers always know relevant information about what they can quickly and easily purchase using the procurement procedures already performed by the CPO: https://2007.cpo.lt / catalog / , https://katalogas.cpo.lt/
Carry out a market test (again) before each purchase. Due to the impact and consequences of COVID-19, the results of the previous market investigation may no longer correspond to the real market situation, which may lead to erroneous purchasing decisions. Procurers are also encouraged to make more active use of market consultations and to obtain advice from market participants and other information that will help them to better assess the opportunities of potential suppliers to participate in the procurement, find out realistic deadlines for supply of goods, services or works, and so on.
Regularly review procurement plans, assess the potential need for additional goods, services or works in the future and start procuring as early as possible. The Ministry of Health also noted that medical institutions and municipal administrations should have a reserve of at least one month (measures) .
Evaluate the possibility of concluding preliminary contracts. It is recalled that procurers may benefit not only from standard public sales contracts, but also from more flexible framework contracts, on the basis of which basic contracts would be awarded according to a later identified or revised need (for example, knowing the exact quantities of specific measures). Such framework contracts may also be awarded (recommended) to several suppliers, thus ensuring that if, for some reason, one supplier is unable to offer the required goods or services at that time, the contracting authority will be able to obtain them from other suppliers with which the main contract has been concluded. preliminary contract.
Start planned purchases immediately, if possible - start them earlier. One of the most common problems in public procurement is that procurement starts too late, without considering that procurement procedures may take longer than planned. Having started the procurement earlier, the Contractor could set longer than usual deadlines for the submission of tenders in the procurement documents. Longer deadlines would allow suppliers currently in difficulty to find new producers, suppliers or partners to deliver those goods. If the procurement is started earlier and the contract is concluded, it would be possible to set longer terms for the delivery of goods (provision of services, performance of works) in the procurement documents that correspond to the real possibilities of the suppliers. It is recommended that:
the time limit for the submission of tenders in the case of purchases of goods and services carried out by means of a low-value survey shall be at least 14 days, and in the case of purchases of works - 20 days;
the deadline for submission of tenders in the procurement of simplified (except for low value) goods and services would be at least 20 days, in the case of work procurement - at least 30 days.
Procurement execution, procurement document requirements
Do not require suppliers to sign procurement documents with an electronic signature due to the limited ability of suppliers to order, withdraw or renew expired electronic signature certificates or to use technical and software tools for electronic signature formation at a remote workplace. For more information, see the information notice published by the VPN: On the use of electronic signatures .
Indicate in the publicly available procurement documents, where possible, the maximum tender price or maximum acceptable prices acceptable to the contracting authority, especially if the contractors budget is extremely limited. This would allow suppliers to save their own time and that of the procurer - tenders would be submitted by suppliers who could offer the procurement object at the specified price, and those who could not - would allocate time and capacity for other procurements.
Do not require a bid security. In the case of international procurement of works, the validity of the tender is mandatory, but in the case of other procurements, the procurers may not require it, thus reducing the administrative burden and the costs of preparing the tender incurred by the suppliers.
Divide the procurement into lots so that suppliers can bid for one, several or all of the lots. The division into parts is primarily beneficial in that it provides wider opportunities for small and medium-sized enterprises, companies specializing in a narrow field or the supply of certain goods to participate in procurement. In addition, the conclusion of contracts with more different suppliers reduces the risk of disruption of the supply of goods - in the event of a disruption of one supplier, the procuring entity will receive other goods under contracts with other suppliers.
Give suppliers sufficient time to provide the requested explanations, supporting documents, justifications. It is recommended to set a deadline of at least 5 working days. It is also recommended to take into account requests from suppliers to extend the deadlines for clarification of documents if suppliers have difficulties in submitting documents on time due to teleworking by other institutions.
If meetings with suppliers (explanation of procurement documents, site inspection, product testing or demonstrations, etc.) are planned during the implementation of the procedures, provide for the possibility to organize them by means of distance communication.
Do not act formally, answer questions and claims submitted by suppliers, albeit belatedly, if it appears that they may affect the further course of public procurement. This reduces the risk that only in accordance with the established procedures and without resolving the uncertainties, without considering possible shortcomings, it may be necessary to terminate the procurement and re-execute the procedures (which requires additional resources of the Contractor - finances, time, human resources).
Supplier qualification requirements
The situation could affect the financial performance of suppliers facing the consequences of COVID-19, which is unlikely to be as good for some time as before the pandemic. This needs to be taken into account when setting qualification requirements related to financial and economic capacity, not only this year but also in the coming years.
However, if significant advance payments (advances) are expected to be made to the supplier during the performance of the contract, it is recommended to establish a qualification requirement related to the suppliers financial and economic capacity when assessing the suppliers average annual operating income. This would avoid potentially risky situations where the advance paid to the supplier under the contract is higher than the suppliers average annual income. Publicly available information about suppliers should also be checked before they are invited to participate in a non-negotiated contract.
In order to facilitate access to the public procurement "market" for suppliers who have not yet participated in procurement or performed certain activities, there should be no qualification requirement to have similar experience in procurement of ordinary, everyday goods (to have fulfilled a contract in the relevant field). It should be noted that electronics (computers, televisions, telephones), household equipment (refrigerators, vacuum cleaners), standard furniture, bedding, electrical goods, building materials, household chemicals, various food products (provided that the supplier has the right to sell them) , stationery, personal care products and other goods that only need to be delivered can also be successfully supplied by suppliers without relevant experience, and similar experience should not be required.
It does not require that the general procurement document submitted kvazisubtiekejai. Quasi-subcontractors (ie persons whom the supplier intends to employ) must be made public when submitting a tender, but they are not identical to subcontractors. In case of winning, they will be employed by the supplier (will be “contained” by the supplier), therefore the grounds for their exclusion (criminal record, debts to SMEs, Sodra, etc.) do not have to be checked. More about this in the FAQ prepared by VPT: When filling in the proposal form, should it be necessary to publish the specialists who will be hired in case of winning?
The provisions of the procurement documents and contracts relate to deadlines.
Set reasonable and reasonable deadlines for fulfilling contractual obligations. Procurers must take into account that, due to the global market situation, the production and supply of goods may take longer than before the pandemic. It is important to note that excessively short deadlines can lead to lower purchasing interest of suppliers, less competition and higher bid prices. With longer deadlines for the fulfillment of contractual obligations, procurers should be less likely to address issues related to the application of contract security measures (fines, interest on arrears) to suppliers, amendment and termination of the contract. As mentioned above, procurers should start procurement earlier than planned at the beginning of the year, as well as carefully keep stock balances available and order goods not when there are several units left and there is an urgent need for them, and as soon as possible, leaving suppliers a reasonable time to deliver the goods. It is recommended that these termsnot be shorter than :
for computer, network, communication equipment, household appliances, various electronics - 30 calendar days.
for stationery, household chemical goods, construction materials, electrical installation goods, printer cartridges - 14 calendar days from the date of placing the order.
for passenger cars - 90 calendar days
for medical equipment - 60 calendar days
for heavy vehicles, buses - 180 calendar days.
for standard furniture - 30 calendar days.
It should be noted that before announcing the purchase, the actual time of delivery of the goods must be clarified by the procurer. Depending on the complexity of the object of purchase, the specificity of the purchased goods, additional requirements (eg for assembly), the quantities of purchased goods - it may be necessary to set longer terms than indicated above.
It is also important to note that longer deadlines should be set for other obligations related to the performance of the contract, e.g. setting a reasonable and proportionate term for the replacement of the defective product, warranty repair.
The terms in the contracts are defined not by a specific date (eg " delivery of the goods by 1 December ") but by a specific deadline after a certain event (eg " delivery of the goods no later than 60 calendar days from the date of entry into force of the contract "), or "To deliver the goods no later than within 7 calendar days from the date of placing the written order "). Procurers often have a specific date for fulfilling the suppliers obligationsrelates to its available funds and the need to spend them over a period of time (e.g. before the end of the year), but this is not true. In practice, it is observed that the procurer finds the funds necessary for the purchase of goods later (eg next year), but engages in long-lasting and costly disputes with suppliers over sanctions, termination of contracts, inclusion of suppliers in the list of unreliable suppliers and the like. In addition, it takes time and repetitive procurement procedures.
Decide on a case-by-case basis on the most appropriate estimated duration of the contract. During this period, it may not be economically viable for suppliers and procurers to enter into fixed rate or fixed price long-term contracts (eg for 2 or 3 years).
Provisions of procurement documents and contracts are related to payment terms, pricing.
Provide for the possibility of direct payment with subcontractors. The Law on Public Procurement (hereinafter referred to as the Public Procurement Act) establishes the obligation for procurers, if the nature of the procurement contract allows, to establish the possibility and procedure of direct settlement with subcontractors. For more information, see the information notice published by the VPN: On direct payments to subcontractors .
Set shorter payment deadlines for suppliers than required by the Law on Prevention of Late Payments in Commercial Transactions, thus ensuring the movement of funds throughout the supply chain. After receiving the payment faster, suppliers can pay for the goods to their suppliers, manufacturers, partners, pay salaries to their employees, have working capital to continue the work already started and carry out new work. It is recommended to set a maximum payment period of 10 calendar days in the contracts.
Evaluate the possibility of providing for advance (advance) payments. An advance payment is considered to be one of the conditions that may determine the suppliers self-determination and interest in participating in the procurement. However, it is also important to ensure the protection of the contractors interests - if a significant advance is to be paid, it is recommended to require the supplier to provide an advance payment guarantee guaranteeing direct damages to the customer if the advance granted under the signed contract is not used for its intended purpose. Where the contract provides for interim payments, its amount should not exceed the amount of the first possible payment under the contract.
Provide for the possibility to pay for the goods after each delivery or when a certain amount is formed, if the goods are delivered in parts (lots). Provide clear pricing in the procurement documents and the contract, if possible - indicate the prices of additional services (connection, installation, training) separately. In case the supplier could deliver the goods earlier, but for some reason the deadlines for providing additional services would have to be postponed, clear contract pricing would allow the contracting authority to pay the supplier immediately for the delivered goods and for additional services when they are provided.
In the procurement documents and the contract, determine the size of the minimum order basket (the amount or the minimum number of units to be delivered at one time) and / or separate the delivery price of the ordered goods. This enables the supplier to self-assess the delivery costs of the goods and reduces the risk that the supplier will refuse to perform the contract on the grounds of disproportionate costs. In practice, there are cases when the procurer orders the goods frequently and only a few units, despite the fact that such execution of orders may be unprofitable for the supplier.
Other contractual provisions
If the nature of the contract so permits, the contract shall provide for the possibility for the supplier to perform some or all of his obligations at a distance. This possibility may be relevant, for example, for consulting, training activities or organizing contractual meetings (meetings) with the procurers representatives. It should be noted that such a possibility may be relevant not only during quarantine, but also subject to certain restrictions related to the number of participants in the planned events. It should be noted that for some or all of the services provided remotely, these services may be cheaper than for services provided locally.
Taking into account the specifics of a particular procurement and the potential risks, identify ways to ensure the fulfillment of obligations that would not create a disproportionate administrative and financial burden on suppliers. It should be reminded that a bank guarantor, a guarantee from an insurance company - are not the only ways to ensure the performance of the contract. Execution of the contract may be ensured in other ways provided for in the Civil Code of the Republic of Lithuania, for example, by providing for interest and penalties in the contract.
Formulate the provisions of the contract amendment in a clear, precise and unambiguous manner in advance in the procurement documents and describe them in detail and clearly. An abstract description of the terms of the contract modification (eg " The parties may agree to modify the contract due to unforeseen circumstances ") prevents the contracting authority from making proper use of the possibility to modify the contract in the future. Possibilities to change the contract that could be considered when preparing the procurement documents:
provision of all or part of services at a distance. For example, a lecturer could give a lecture remotely rather than in an auditorium;
suspension of the performance of the contract. For example, without the need to provide catering services or food to the school, performance of the contract would be suspended. If at the time of suspension the contract has 6 months left until the end of the contract, the date of termination of the contract is postponed so that the same 6 months remain from the renewal for the performance of the contract and the suppliers contractual obligations;
the possibility of refusing the goods, services or works provided for in the contract but no longer required by the contracting authority, if these have not yet been ordered or commenced;
the possibility of extending the deadlines for fulfilling contractual obligations due to the fact that the supplier is unable to deliver the goods within the set deadlines due to restricted flights, closed borders;
the possibility of changing the contractual dates of events if they are unable to take place due to established quarantine conditions, such as restrictions on crowds;
the possibility to exchange the contract goods for the same or better, in accordance with the requirements of the procurement documents and the contract, without increasing the prices specified in the contract.
the procedure for changing the suppliers specialists (experts) if the specialist is unable to perform his or her functions due to illness, compulsory (self-) isolation or other reasonable reasons.
Please note that the above information is for guidance only. The final decision rests with the procurers themselves, as they are best acquainted with all the circumstances and possibilities surrounding their procurement. |
