Procurement Manual for Supplies


This Programme is funded by
the European Union / /
CFCUis the Contracting Authority
of this programme

CIVIL SOCIETY DIALOGUE –

EU-TURKISH CHAMBERS FORUM

EU-TURKEY CHAMBERS PARTNERSHIP GRANT SCHEME PROGRAMME

PROCUREMENT MANUAL FORSUPPLIES

This document has been prepared in Turkish and English. In the event of any contentious issues arising, the English version will be binding.

CFCU-20091/58

Procurement Manual for Supplies

Procurement Procedure Summary for Supplies

Numbers given in parenthesis in this document refer to sections in the Procurement Manual. Detailed information on the subject can be found in the relevant sections and documents referred thereof.

Basic Principles:

  1. Standard documents should be used throughout the whole procurement procedure (6).
  2. All stages of the procurement procedure should be registered, all communications with the tenderers should be in writing.
  3. Decisions made and persons taken these decisions throughout the procurement process should be registered. For direct procurement procedures (€10.000 or less) the registration could be a note to the file made by the project manager or other authorities, if there is one. For a procedure where a tender dossier is prepared, a formal evaluation committee has to be formed (Chairperson, secretary, odd number of voting members – minimum 3) (2.2; 3.2; 4.2)
  4. For circumstances not defined in the Manuals, the final decision is under the responsibility of the Grant Beneficiary with the condition that he or she consults and asks support of the Support Unit (SU). The Grant Beneficiary should always be prepared to submit written justification for each step taken and for each decision made.
  5. All conditions that affect the tender evaluation (required documents, eligibility criteria, evaluation criteria, etc.) should be mentioned in the tender dossier. Criteria that were not declared to tenderers before their submission of the tenders cannot be taken into account during evaluation (7.3/16, 17).
  6. The Grant Beneficiary should complete procurement procedures with minimum possible number of tenders. Supplies that could be purchased from different types of suppliers could be procurred in a single tender under different lots. The procurement procedure to be followed is the total value of the tender (7.2/7; 7.3/7).
  7. The rule of origin applies to all items regardless of their value. However, for items with a unit price less than €5.000 a document (certificate of origin or made in Turkey certificate) may not be requested (7.2/8).
  8. In tender and contracts, prices can be quoted in TRY. However, for the sake of minimising risks that could be incurred by fluctuations in the currency and for ease of reporting, it is strongly advised to use € as currency.

Procurement Process

Contract Value (CV)
CV ≤ €10.000
(2) / €10.000 < CV < €60.000
(3) / €60.000 ≤ CV < €150.000
(4)
(Not Applicable) / €150.000 and more
(5)
(Not Applicable)
Preparation Stage / Prepare Technical Specifications (2.2). / If the items have to be supplied from different suppliers, determine Lots (7.2).
Prepare simplified tender documents (3.2). / If the items have to be supplied from different suppliers, determine Lots (7.2/7; 7.3/7).
Prepare tender dossier (6; 7.4; 7.5). If the tender is made in Turkish, procurement notice should also be prepared in English (4.2 step 8).
Send the tender dossier to PIU for checking / Tender language is English. However, local tenderers may submit their offers in Turkish. Tender forecast should be prepared (in English) and published on CFCU web site with the approval of the PIU/TAT as soon as possible (at least 30 days prior to tender announcement).
Meanwhile, prepare the tender dossier (6; 7.4;7.5;7.6).
If the items have to be supplied from different suppliers, determine Lots (7.2/7; 7.3/7).
Send the tender dossier to CFCU for checking
Announcement Stage / Use an invitation letter and technical specifications attached to it, request proposals from preferably 3 suppliers (2.2). / Use an invitation letter and simplified tender documents attached to it, request proposals from at least 3 suppliers (3.2).
You should have at least 3 eligible offers in order to finalise the tender procedure. / Advertise in a national newspaper (7.1) and make announcement on all relevant web sites (7.2).
Tender dossier could be published to be downloaded from relevant web sites (4.2). / Advertise in a national newspaper (7.1) and make announcement on all relevant web sites (7.2).
Tender dossier could be published electronically in relevant web sites (6).
Send the tender dossier to CFCU to be published in CFCU web site.
Tender Opening / Give reasonable time to tenderers to prepare their offers.
Offers should be delivered in sealed envelopes (2.2). / Give at least 30 days for the submission of the tenders (3.2).
Meanwhile, determine your evaluation committee (4.2, step 6).
Receive offers in sealed envelopes (3.2). / Give at least 30 days for the submission of the tenders.
Meanwhile, determine your evaluation committee.
Receive offers in sealed envelopes.
Provide a receipt to the tenderer.
Tenders must be numbered based on the order of receival (4.2 step 5). / Give at least 60 days for the submission of the tenders.
Meanwhile, determine your evaluation committee.
Receive offers in sealed envelopes.
Provide a receipt to the tenderer.
Tenders must be numbered based on the order of receival (4.2 step 5).
Tender Evaluation / Open envelopes and award the contract to the cheapest compliant offer.
Register your decision.
Prepare a simple contract.
Inform unsuccessful tenders in writing (2.2). / Hold a tender opening session where the tenderers could participate.
Prepare relevant reports and registers.
Prepare a contract.
Inform unsuccessful tenders in writing (3.2). / Hold a tender opening session where the tenderers could participate.
Prepare relevant reports and registers.Send the Evaluation Report to PIU for cheking.
Prepare a contract.
Inform unsuccessful tenders in writing (4.2 steps 6,7).
. / Hold a tender opening session where the tenders could participate.
Prepare relevant reports and registers.
Send the Evaluation Report to CFCU for cheking.
Prepare a contract.
Inform unsuccessful tenders in writing (4.2 steps 6,7).

Table of Contents

1.Introduction

2.Procurement of Supplies for €10.000 or less

2.1.Procurement procedure step-by-step (flow chart)

2.2.Explanation of supplies procurement for €10.000 or less

3.Procurement of supplies between €10.000 and €60.000: Competitive negotiated procedure without publication

3.1.Procurement procedure step-by-step (flow chart)

3.2.Explanation of supplies procurement for between €10.000 and €60.000 by means of the competitive negotiated procedure without publication

4.Procurement of supply contracts between €60.000 and €150.000: open tender procedure published locally

4.1.Procurement procedure step-by-step (flow chart)

4.2.Explanation of supplies procurement between €60.000 and €150.000 by means of an open tender procedure published locally

5.Procurement of supply contracts for €150.000 or more: international open tender procedure

6.Procurement dossier for Supplies

7.Annexes for Supplies

7.1.Standard advertisement for open tender procedures (local and international)

7.2.How to prepare the “Individual Supply Contract Forecast”

7.3.How to prepare the “Supply Procurement Notice”

7.4.How to prepare Draft Special Conditions for Supplies

7.5.Administrative compliance grid

7.6.Technical Evaluation Grid

7.7.Establishment of the Evaluation Committee

7.8.Supply tender opening checklist

7.9.Tender Opening Report

7.10.Tender Evaluation Report

7.11.Tender guarantee form

7.12.Model Performance Guarantee

7.13.Pre-financing guarantee form

7.14.Bank account notification form

7.15.Legal entity file

7.16.Grant of facilities

7.17.Letter to unsuccessful tenderer

7.18.Supply contract award notice

7.19.Provisional / final acceptance certificate

7.20.Addendum to a Supply contract

7.21.Glossary

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Procurement Manual for Supplies

1.Introduction

This procurement manual is a help guide for grant beneficiaries wishing to procure supplies (e.g. equipment, furniture, etc.) under their contract with the CFCU in the framework of the Civil Society Dialogue – EU-Turkish Chambers Forum; EU-Turkey Chambers Partnership Grant Scheme Programme implemented under the coordination of TOBB and Eurochambres.

The procedures described below follow the Practical Guide to contract procedures for EC external actions.[1]

Rules applicable to supply contracts are summarised in the table below:

Value / Procedure / ETCF Grant Scheme
€150.000 or more / International open tender procedure (following publication of a procurement notice) / Not Applicable
Supply contracts between €60.000 and €150.000 / Open tender procedure published locally (nationally) / Not Applicable
Supply contracts under €60.000 but more than €10.000 / Competitive Negotiated procedure without publication
(Simplified Tender Dossier) / The Grant Beneficiary (= the Contracting Authority) invites at least 3 suppliers by officially sending the Tender Dossier. It is advisable to invite more than 3 suppliers because at least 3 compliant offers are required to be received. The least expensive offer among administratively and technically compliant tenders is invited for the signature of the contract.
Supply contracts with a value of €10.000 or less / Direct contract
(single compliant tender) / The Grant Beneficiary consults preferably 3 suppliers, and signs a contract with the supplier giving the least expensive technically compliant offer.

Four different procurement procedures for the procurement of supplies are applicable depending on the amount involved. Each procedure is briefly explained with a flow chart and text in:

-section 2: procurement of supplies with a value of €5.000 or less: the direct negotiated procedure without publication;

-section 3: procurement of supplies between €10.000 and €60.000: the competitive negotiated procedure without publication;

-section 4: procurement of supplies between €60.000 and €150.000: the local open tender procedure, published locally (= national open tender in Turkey);

-section 5: procurement of supplies €150.000 or more: international open tender procedure following publication of a procurement notice and a tender dossier.

Whatever the case may be, the grant beneficiary should contract the tenderer offering best value for money, in other words, the sole award criterion will be the price. The contract will be awarded to the lowest compliant tender. In compliance with the principles of transparency and equal treatment for potential contractors, care being taken to avoid any conflict of interests.

More detailed information, examples and empty templates for supplies procurement documents to be used can be obtained from the Support Unit and the following web sites:

  • The Programme Website:
  • Website of SPO, Ankara, Turkey:
  • Website of CFCU, Ankara, Turkey:
  • An English version of the “Practical Guide to contract procedures for EC external actions” (EU PRAG) is available at the following web-site

Where necessary: individual advice and support will be given to grant beneficiaries within the time available.

2.Procurement of Supplies for €10.000 or less

2.1.Procurement procedure step-by-step (flow chart)

2.2.Explanation of supplies procurement for €10.000 or less

Under the simplified procedures, it is possible to complete the procedure with a single tender / quotation (received from a single tenderer / contractor). However, this is not recommended since the best practice is to obtain competitive proposals in order to receive best value for money.

General rules for good procurement are also valid here. The contractors/suppliers invited to submit proposal should be reputable organisations.

Please find below an explanation of each step of the recommended procurement procedure for supplies with a budget of €10.000 or less - as given graphically in the flow chart above:

Step 1: Check the project proposal in which you have justified the procurement of supplies and stated the technical characteristics of the equipment/materials. A written specification of requirements “Technical Specifications” should be prepared by the Grant Beneficiary. They should describe the characteristics of required materials or goods (such as quality, performance, capacity). No mention of the manufacturer of goods or trade marks should be made in the technical specifications. An exception to this general ban is only allowed when the subject of the item cannot be described otherwise (and in such cases the words “or equivalent” should be added). But you need to describe the supplies’ technical requirements:

  • What do you want?
  • The characteristics (such as quality, performance, capacity) of the goods you want?
  • Whether you want any training for the operators and/or users of the goods?
  • The warranty and post-delivery service requirement, etc.

A written brief administrative requirement should also be prepared by the Grant Beneficiary at least indicating:

  • When do you want the supplies being delivered?
  • Where do you want the supplies being delivered?
  • The quantity of goods you want?

Step 2: Invite reputable supplier(s)/contractor(s) in writing, to offer in line with the Requirements and Technical Specifications prepared in previous Step (1).

Step 3:Obtain proposals in writing. You must allow a reasonable time for the invited suppliers to respond with their offers. To be legally enforceable everything must be in writing so this period will typically be about 2 weeks, although it could be shorter if all the invited suppliers are nearby (and therefore able to deliver quotations by hand), or in case of procurement “off-the-shelf” of standard goods or IT equipment (computers, printers, etc.). It is sufficient to obtain 1 compliant offer out of at least 3 invited prospective suppliers.

Step 4: Evaluate tenders:Every proposal received, even for small value contracts, should be assessed fairly and objectively on the basis of the Requirements and Technical Specifications you wrote beforehand. Each offer will be analysed and classified as “technically compliant” if it meets all the administrative requirements and technical specifications which are the minimum qualifications required. If an offer fails on one of the minimum qualifications required, it will be classified as “non-compliant”. Only the proposals which found to be administratively and technically compliant, will be considered for further step which is an optional official negotiation stage. For supply contracts, the sole award criterion will be the lowest price obtained within compliant offers.

Step 5:Award contract: The contract will be awarded to the lowest price compliant offer. Once you have established a contract with the selected supplier/contractor you should inform the others that they have not been successful on this occasion. Thank them for their interest in your business and for submitting an offer.

Step 6: Manage the contract once it has been signed. For supplies you need to check if delivery will still be on the requested date, especially if other parts of your grant action rely on this. As the Contracting Authority for this supply contract you will have to manage any delays caused by any one of your procurements.

Every step of the procurement process, even for minor items, should be recorded and kept on file for future checks.

3.Procurement of supplies between €10.000 and €60.000: Competitive negotiated procedure without publication

3.1. Procurement procedure step-by-step (flow chart)

3.2. Explanation of supplies procurement for between €10.000 and €60.000 by means of the competitive negotiated procedure without publication

Procurement of supplies between € 10.000 and € 60.000 must be done by means of the competitive negotiated procedure without publication. The Grant Beneficiary (= the Contracting Authority) invites at least 3 suppliers (preferably more than 3). Please find below an explanation of each step of the competitive negotiated procedure for supplies, as shown graphically in the flow chart on the previous page:

Step 1:Check the project proposal in which you have justified the procurement of supplies and stated the technical characteristics of the equipment/materials.

Step 2:A written specification of requirements “Technical Specifications” should be prepared by the Grant Beneficiary. They should describe the characteristics of required equipment/materials (such as quality, performance, capacity). No mention of the manufacturer of goods or trade marks should be made in the technical specifications. An exception to this general ban is only allowed when the subject of the item cannot be described otherwise (and in such cases the words “or equivalent” should be added). But you need to describe the supplies’ requirements:

  • What do you want?
  • The characteristics (such as quality, performance, capacity) of the goods you want?
  • Whether you want any training for the operators and/or users of the goods?
  • The warranty and post-delivery service requirement, etc.

Step 3:Prepare a simplified tender dossier: the dossier you prepare and send out includes the technical specifications and price schedule describing the goods you want delivered and installed. The following topics should be covered in your tender dossier:

  • instructions to invited suppliers
  • When do you want the supplies being delivered?
  • Where do you want the supplies being delivered?
  • The quantity of goods you want?
  • The Rule of Origin!!!
  • eligibility criteria
  • information to be supplied by suppliers
  • evaluation grid
  • draft contract
  • technical specifications
  • financial bid layout / blank price breakdown

The tender dossier may be made in Turkish.

Step 4: Invite minimum 3 reputable supplier(s)/contractor(s) to tender. The candidates are sent a letter of invitation to tender accompanied by a tender dossier. Allow a reasonable time for the candidate suppliers to respond. The candidates must be allowed at least 30 days from the dispatch of the letter of invitation to tender to submit their tenders.

Step 5:Obtain tenders in writing. If you do not receive at least three valid tenders (i.e. arrived on time and respecting the formal submission requirements), the procedure must be cancelled and you must start the procedure again. Therefore, in order not to lose valuable time, it is recommended to invite 4, 5 or more suppliers to make an offer, to ensure that at least 3 compliant offers have been received.

All the offers received must be opened at the same time: normally this is done shortly after the deadline (date and time), as communicated to the tenderers in the tender dossier.

The Tender opening session is a public session (participation is restricted to representatives of the tenderers who submitted a tender, they may be present at the opening session, but not at the evaluation session) and the following will be announced

The tenderers’ names

The tender prices

Any discounts offered

Written notifications of withdrawal

Step 6:Evaluate tenders:every tender (offer/bid) received should be assessed fairly and objectively on the basis of the administrative and technical specifications included in the tender dossier. The offers received should be evaluated by an evaluation committee constituted from 3 or 5 persons, who have the necessary skills to evaluate. Each offer will be analysed and classified as “administratively and technically compliant” if it meets all the administrative requirements and technical specifications which are minimum qualifications required. If an offer fails on one of the minimum qualifications required, it will be classified as “non-compliant”. Only tenders found to be administratively and technically compliant will be considered for further step. For supply contracts, the sole award criterion will be the lowest price obtained within compliant offers.