By the Decision of the LACA Procurement Commission S

Approved:

By the decision of the LACA Procurement commission’s

meeting of 12.05.2015 (minutes No. 1)

Original copy of the open tender regulation

Chairman of the Procurement Commission

Sandra Vilcāne

______

(19.05.2015)

Latvian Association of Certified Auditors

open tender

"Development of methodological IT-based tool for small and medium sworn auditors’ commercial companies" within the framework of the individual project of the Swiss-Latvian cooperation program "Technical assistance in preparing financial statements" No. CH03"

procurement identification No. LZRA2015/1/K

Regulation

Riga

2015

1.GENERAL INFORMATION

1.1.Type, name, identification number of procurement procedure.

"Development of methodological IT-based tool for small and medium sworn auditors’ commercial companies" within the framework of the individual project of the Swiss-Latvian cooperation program "Technical assistance in preparing financial statements" No. CH03" No. LZRA2015/1/K (hereinafter referred to as the Procurement).

1.2.The Client’s name, address and other requisites.

Latvian Association of Certified Auditors

Legal and postal address: Brīvībasgatve 224, liters 5, Riga, LV-1039

Tax payer’s reg. No. LV40008009351

Internet:

(hereinafter referred to as the Client)

The Client’s contact person:

Deputy Executive Director AneteBiseniece

Address: Brīvībasgatve 224, liters 5, Riga, LV-1039

Tel.: 67223338
Fax: 67223339
E-mail:

1.3.The Applicant

1.3.1.The Applicant is a person registered in line with the procedure prescribed in the regulatory enactments of the Republic of Latvia (or entitled to provide services in line with regulatory enactments of the member state of the European Union, where it was established) who has submitted a proposal to provide services in line with requirements stipulated by the Client in open tender regulation (hereinafter referred to as the Regulation).

1.3.2.The Applicant covers all expenses related to preparing and submitting aproposal. The Client is not held responsible for these expenses irrespective of the tender result.

1.4.Procurement subject.

1.4.1.Development of methodological IT-based tool for small and medium sworn auditors’ commercial companies and implementation in line with the technical specification (Appendix 1).

1.4.2.CPV code: 72268000-1[1], 72261000-2[2], 72263000-6[3], 79632000-3[4].

1.4.3.The Procurement subject is not divided in parts.

1.5.Contract term and place

1.5.1.Contract maturity: 30 September 2015 and until full completion of mutual liabilities. The above term can be extended, if the implementation period for the individual project of the Swiss-Latvian cooperation program "Technical assistance in preparing financial statements" CH03 is extended.

1.5.2.The place of contract execution is the Republic of Latvia.

1.6.Additional explanations on the tender Regulation

1.6.1.The Client shall ensure free and direct electronic access to the Regulation and other procurement procedure documents at the Client’s website ( The suppliers can familiarise with the Regulation and other procurement procedure documents at the Client’s premises previously announcing their visit via phone to the contact person provided in Clause 1.2 of the Regulation.

1.6.2.The Supplier can request a printed version of the Regulation. Upon the Supplier’s request, the Client issues the Regulation within 3 (three) working days after receipt of a request.

1.6.3.Information exchange as regards the Regulation is performed in writing. Written information request on the Regulation has to be submitted to the Client at the address provided in Clause 1.2 of the Regulation.

1.6.4.The information requests and questions must contain a reference: To the open tender "Development of methodological IT-based tool for small and medium sworn auditors’ commercial companies" within the framework of the individual project of the Swiss-Latvian cooperation program "Technical assistance in preparing financial statements" No. CH03" LZRA2015/1/K.

1.6.5.The Procurement Commission replies to the Suppliers’ questions within 5 (five) days but not later than 6 (six) days before the proposal submission deadline.

1.7.Address, time and procedure of submitting proposal

1.7.1.Application is submitted until 29.06.2015 at 10.00 a.m., at the chancellery of the LACA on Brīvībasgatve 224, liters 5, Riga, LV-1039, during the Client’s working hours: from Monday to Friday 10.00 a.m. –16.00 p.m., or sending it to the address provided in this clause as a registered mail. Suppliers, who send their proposals via post, have to ensure their delivery at the address until the proposal submission deadline.

1.7.2.Proposals delivered to the Client later than at the term provided in Clause 1.7.1 of the Regulation will be sent back unopened (to the given address) or returned to the submitter.

1.7.3.The Applicants, prior to submission deadline, can amend or cancel the submitted proposal in writing.

1.7.4.Proposals will be opened on 29 June 2015 at 10.00 a.m. , at the chancellery of the LACA on Brīvībasgatve 224, liters 5, Riga, LV-1039.

1.8.Requirements for the format and submission of proposal

1.8.1.Proposal along with the original copy of proposal security (copy is bound in the proposal) is submitted in a closed, sealed envelope / package that includes a reference:

1.8.2.All materials included in the proposal are enumerated, bound and sealed in one volume to ensure that pages cannot be separated from the application without damaging the seal on the band. Pages of theproposal have to be enumerated in succession. The total number of pages has to be indicated on the back side of the proposal and approved by a signature of person entitled to represent the Applicant (in line with the entries with the Commercial Register) or the person authorised to represent the Applicant. Documents included in the proposal have to be arranged in line with the order prescribed in Clause 1.8.6 of the Regulation. The proposal has to include a contents page. The title page of the proposal has to include a reference:

1.8.3.Application to the open tender "Development of methodological IT-based tool for small and medium sworn auditors’ commercial companies" within the framework of the individual project of the Swiss-Latvian cooperation program "Technical assistance in preparing financial statements" No. CH03"LZRA2015/1/K.

1.8.3.1.The Applicant’s company name, address, telephone number, e-mail address.

1.8.4.Binding is considered an appropriate way to fix the documents.

1.8.5.All documents included in the proposal have to be in Latvian or English, or if the original copies are in other foreign languages a certified translation to Latvian has to be attached in line with the procedure stipulated in the regulatory enactments. Words and numbers cannot include insertions or corrections. The Applicant is held liable for losses incurred as a result of incorrect translations in line with the procedure stipulated in the regulatory enactments.

1.8.6.The proposal documents have to be formatted in line with the procedure stipulated in the regulatory enactments. Otherwise the Procurement commission is entitled to believe that the included document has not been submitted.

1.8.7.The proposal consists of the following parts:

1.8.7.1.Application for participation at the open tender, the Applicant’s selection documents and copy of the proposal’s guarantee;

1.8.7.2.technical proposal;

1.8.7.3.financial proposal;

1.8.8.Documents included in the proposal are signed by a person entitled to represent the Applicant (in line with the entries with the Commercial Register) or authorised person.

1.8.9.The submitted proposals are stored in line with the requirements of the Public Procurement Law.

1.9.Validity of proposals

1.9.1.The submitted proposals are valid for an indefinite period of time.

1.10.Contract guarantee

1.10.1.Fifteen (15) days after conclusion of the contract, the winner of the tender submits the contract guarantee in the amount of 10% (ten per cent) of the total contractual fee to the Client.

1.10.2.The Client is entitled to use the contract guarantee to compensate losses incurred by the Client due to the Contractor’s failure to fulfil its liabilities or to withhold the contractual penalty.

1.10.3.The contract guarantee is guarantee registered with the Financial and Capital Market Commission and issued by a bank (or a bank registered with an equivalent credit institution in the residing country of the Applicant); the guarantee’s contents complies with the attached sample of the contract guarantee (Appendix 9) or has been approved by the Client.

1.10.4.The contract guarantee has to be valid until the Software is commissioned.

2.REQUIREMENTS FOR APPLICANTS

2.1.Requirements for the Applicant to participate at the Procurement.

2.1.1.The provisions of exclusion listed in Section 39 of the Public Procurement Law do not apply to the Applicant (and to subcontractor provided by the Applicant the value of supplies and services provided of whom amounts at least to 20% of the total procurement contract fee, to member of personal partnership, if the Applicant is a partnership, and to entity indicated by the Applicant to whose capabilities the Applicant relies on, in order to verify that its qualification complies with the requirements prescribed in the Regulation) (the text of acknowledgement is provided in the application – Appendix 2).

2.1.2.The Applicant and entities on whose capabilities the Applicant relies on, are registered in line with procedure stipulated in the regulatory enactments of the Republic of Latvia or entities are entitled to provide services in line with the regulatory enactments of the member state of the European Union, where the Applicant or entities are registered.

2.1.3.The Applicant has provided only true information for assessment of its qualification and has provided all required information.

2.2.Minimum requirements for the Applicant’s financial capability

2.2.1.The Applicant’s average turnover in the last 3 (three) years (in 2012, 2013, 2014) exceeds the proposed contractual fee at least 3 (three) times, without VAT. The necessary turnover for companies established later is calculated for the period companies have operated. According to Section 41 (3) the Supplier can rely on other contractor, for example, subcontractor, if it is necessary for the fulfilment of contract regardless of the legal nature of the mutual relations. In this case the Supplier proves to the Client that the Supplier will have the necessary resources by submitting a verification issued by these contractors or an agreement on cooperation to fulfil the respective contract.

2.3.Minimum requirements for the Applicant’s professional capability

2.3.1.The Applicant is a producer of the goods (software) provided in the technical specification or the Applicant has a verification provided by a producer or its representative on the rights of the Applicant to perform supply, installation, maintenance and support of the goods and related trainings in the Republic of Latvia. If the verification was issued by the producer’s representation office or other authorised person, a document acknowledging rights for the representation office or authorised person to issue such verifications on behalf of the producer has to be submitted.

2.3.2.In the past 3 (three) years (2012, 2013, 2014) as of the date of the proposal submission the Applicant (according to Clause 1.7.1 of the Regulation) has implemented similar solutions of the Information and communication technologies (ICT) and at least Level 2 (in 8x5 mode) user support. The Applicant has to submit a reference letter issued by its client.

2.3.3.The Applicant has to provide involvement of at least the following specialists in implementation of the project:

2.3.3.1.Project Manager

2.3.3.1.1.Practical management experience in at least 3 completed projects in the sphere of the IS development and / or implementation acting as a project manager;

2.3.3.2.Experts of audit methodology - two

2.3.3.2.1.Qualification of a certified auditor (certificate)

2.3.3.2.2.at least 3-year experience in development of organising account documents and conducting of financial audit as a certified auditor.

3.APPLICANT’S SELECTION DOCUMENTS

3.1.Application (Appendix 2) on participation at the procurement procedure. Application is signed in line with procedure stipulated in Clause 1.8.7. If the Applicant is a group of persons, application is signed by all members of the group and the authorised representative has to be provided, who will represent interests of the group, as well as the scope of responsibility of each person.

3.2.Registration certificate of the Applicant and entities on whose capabilities the Applicant relies on verifying that the Applicant is registered in line with procedure stipulated in the regulatory enactments of the Republic of Latvia or the Applicant is entitled to provide services in line with the regulatory enactments of the member state of the European Union, where the Applicant is registered.

3.3.The Applicants acknowledgement on its compliance with requirements stipulated in Clause 2.2.1 for the economic and financial position. If the Procurement commission during assessment of proposals requires additional information in order to verify the Applicant’s compliance with the said requirements, the Procurement commission will request profit and loss statement for the past 3 (three) years signed by the Applicant or other documentation.

3.4.Description of the Applicant’s last three years that includes information that would allot the Procurement commission to assess the Applicant’s compliance with the requirements of the Applicant’s experience (technical and professional capabilities) stipulated in the Regulation (form provided in Appendix 3).

3.5.The Applicant’s client’s reference that verifies the Applicant’s compliance with the requirements of Clause 2.3.2. The reference letter has to include contact information and information to the extent that would allow the Client to verify that the Applicant complies with the said requirement.

3.6.The Applicant acknowledges compliance with Clause 2.3.3 (specialists involved in fulfilment of the contract) by submitting:

3.6.1.CV of the proposed specialist (Appendix 4) that would clearly indicate the required information. The Procurement commission is entitled to check the said information, if it is necessary during evaluation stage;

3.6.2.copies verifying education of the proposed specialist.

3.7.The Applicant and entities on whose capabilities the Applicant relies on, has to sign the acknowledgement provided in Clause 2.2.1 and submit a copy of the registration certificate (Clause 3.2).

3.8.If the Applicant involves a subcontractor in fulfilment of the contract, the Applicant submits a document verifying participation of subcontractor in fulfilment of the contract, as well as indicates the part transferred to subcontractor.

3.9.If the Applicant, due to objective reasons and during fulfilment of the contract, has to change staff that has been involved in fulfilment of the contract, on whom it has provided information to the client and whose qualification the Client has evaluated, or subcontractor to whose capabilities the respective Applicant has relied on to verify compliance of its qualification with the requirements of the Regulation, after the conclusion of the contract it is possible only with a written consent provided by the Client. The Client agrees with the change of the said staff and subcontractor if any of the following conditions apply:

1) the staff or subcontractor provided by the Applicant do not comply with the requirements stipulated in the Regulation that refer to the Applicant’s staff or subcontractor;

2) the subcontractor is changed on whose capabilities the Applicant has relied on within the framework of the procurement procedure in order to verify the compliance of its qualification with the requirements stipulated in the contract and procurement procedure documents and the proposed subcontractor does not have at least the same qualification as such to which the respective Applicant has referred to during the procurement procedure when verifying its compliance with the requirements stipulated in the procurement procedure;

3) the proposed subcontractor complies with the provisions of exclusion listed in Section 39 (1) of the Public Procurement Law.

3.10.The Applicant is responsible for the verity of the submitted information. If the Procurement commission, when inspecting the information, detects that the information is not true, the Applicant is expelled from further participation in the open tender.

4.TECHNICAL PROPOSAL

4.1.The Technical proposal has to be signed by the head or authorised person (original copy of power of attorney has to be attached) of the Applicant.

4.2.The Technical proposal has to be prepared in a way that the Client can evaluate its compliance with the requirements of the Regulation and Technical specification. When preparing the Technical proposal, the Applicant has to consider that the Technical proposal has to demonstrate the Applicant’s understanding of the scope, specifics, deadlines of services related to the Supply, as well as staffing and technical resources necessary to provide services.

4.3.The Technical proposal has to be prepared as detailed as possible in order to ensure that the Procurement commission can verify the Applicant’s understanding and capabilities to perform the Supply and the related services and to evaluated the proposal on the basis of the respective proposal selection criterion.

4.4.The Applicant prepares the Technical proposal in line with the requirements of the Technical specification (Appendix 1).

4.5.The Technical proposal has to include at least the following sections:

4.5.1.description of future process reflecting the Applicant’s understanding of the Client’s needs and showing the Client’s benefits obtained from the Project’s implementation.

4.5.2.description of the product (solution) to be supplied in line with the requirements of the Technical specification.

4.5.3.description of the methodology applied during implementation of the solution that contains at least the following elements: description of the project organisation, description of the solution implementation.

4.5.4.guarantee provision and proposal of support services that has to include description of the scope of guarantee and support services, as well as implementation procedure of these services.

5.FINANCIAL PROPOSAL

5.1.The Financial proposal has to be prepared in line with the form provided in Appendix 5.

5.2.The fee proposed in the Financial proposal has to be provided in EUR, providing VAT separately.

5.3.The fees in the Financial proposal has to be indicated with at least two digits after comma. If, as a result of multiplying, there are three digits after comma, the third digit has to be rounded off as follows: if in the range from 1 to 4, it is rounded down, if in the range from 5 to 9, it is rounded up.

5.4.The fee provided in the Financial proposal includes all direct and indirect expenses related to the Supply and provision of the related services in line with the scope provided in the Applicant’s Technical proposal.

6.PROPOSAL EVALUATION

6.1.Only those proposals are compared and evaluated that are submitted in line with the procedure and term stipulated in the Regulation.

6.2.The Procurement commission performs inspection of the formatting of the proposals, selection of Applicants (in line with the provisions of exclusion and prescribed qualification requirements), inspection of compliance of the Technical proposals and selection of the proposal on the basis of the selected proposal selection criterion – economicallymost reliable proposal (hereinafter referred to as the proposal evaluation) in a closed meeting.