REPORT OF THE SUPERVISING AND MONITORING DEPARTMENT

No. of Report for Supervision and Monitoring 08/2008

Contracting Authority / Inception date of the report / Submission date of the draft report / Submission date of the final report
Municipality Assembly of
Dragash / 22.07.2008 / 14.10.2008 / 14.11.2008

Dear,

Please find attached the Report of Monitoring and Supervision accomplished by the Commission for Supervision and Monitoring of Public Procurement Regulatory Commission of Kosova with given recommendations regarding the elimination of the stated violations of Public Procurement Law in Kosova and procurement rules.

1.1 Legal base of the report for Supervision and Monitoring:

Based on Public Procurement Law of Kosovo No. 02/L-99, amended by regulation Nr.2007/20 Public Procurement Regulatory Commission in accordance with Section 81, 82, 83.1 PPRC has the competence, authority, power and responsibility to observe, monitor and supervise public procurement activities in all Contracting Authorities of Kosovo.
Based on these responsibilities PPRC has authorised the Supervising and Monitoring Commission to control the enforcement of the Public Procurement Law Dispositions and procurement rules in the Procurement Office of “Municipality Assembly of Dragash”.
Monitoring and Supervising Department has monitored and supervised some (8) procurement activities realised during 2006-2007 by the procurement office of“Municipality Assembly of Dragash”.

1.2Scope of monitoring and supervision:

  • Supervision of the enforcement of Public Procurement Law of Kosovo and of the procurement rules;
  • Monitoring of public procurement activities regarding the eventual violations of Public Procurement Law of Kosova and of Public Procurement Rules in Kosova;
  • To give recommendations for advancing the process of public procurement to the contracting Authority; and
  • According to the case to take other measures in agreement with Public Procurement Law in Kosovo regarding the accomplishments of the duties of dispositions of this Law and other legal measures that are the competence and responsibility of Public Procurement Regulatory Commission.

1.3SELECTED PROCUREMENTS FOR MONITORING AND SUPERVISSION IN THE MUNICIPALITY ASSEMBLY OF DRAGASH

Pr. No. / Name of the procurement activity / Proc. no.
1. / Supply with 710m2 wood for primary school of M. A.of Dragash in 2006 / 200-06-16-112
2. / Asphalting the road Bellobrod – Brrut –M.A. of Dragash. / 450-06-23-512
3. / Building the Communities centre in Krushevo village –M.A. of Dragash. / 450-06-36-512
4. / Reparations of the stove MCFM-Dragash / 450-06-53-512
5. / Building the primary school in village Radesha / 450-06-52-512
6. / Supply with fuel (oil and petrol) for the M. A. of Dragash. / 110-06-64-121
7. / Building of the feces canalisation in village Plave –MA of Dragash. / 450-07-09-512
8. / Supply with concrete cubes for the village Brod-MA Dragash / 260-07-10-112
9. / Building of the local office in the village ofBrod-Dragash / 450-07-22-521
10. / Asphalting the road Mejdan- Kapre. / 450-07-31-521

STATEMENTS OF SUPERVISING AND MONITORING COMMISSION (SMC):

1.4Establishment of the Department – Procurement office of MA of Dragash :

From monitoring initiated in the procurement office of Municipality Assembly of Dragash, on22.07.2008and form the discussion with the procurement manager of Municipality Assembly of Dragash has been established the procurement office that has the Procurement Manager and two procurement officers.
Procurement professional certificate:the entire staff consisted of three members were certified – have gained the procurement professional certificate for 2006, also for 2007 has been certified the entire staff of the procurement office by the PPRC.
Under oath declaration: the procurement office staff have signed and submitted to the PPRC under oath declaration, in accordance with section 21.4 of the PPL..

1.5Supervision of the procurement activities ref. No.08/2008

Procurement forecast :section 7
During the control of the procurement activities we can notice that the Contracting Authority for 2006 and 2007 has prepared the Procurement Forecast but have not submitted to the PPA, this is violation of section 7 of the PPL.
Statement of needs and availability of funds: section 8.6
Contracting Authority for no procurement activity for 2006 and 2007 has not prepared the statement of needs and availability of funds and by this has made violation of section 8.5 of the PPL.
Funds commitment: section 8.2 of the PPL.
During the supervision and monitoring of (10) procurement activities it has been noticed that Contracting Authority for one (1) procurement activity has not made funds commitment at all (proc. no.110-06-064-121).
Initiation of the procurement :
During the control of (10) procurement dossiers it has been noticed that Contracting Authority in its documentation for 10 procurement activities has the request for the initiation by the requests units approved by the approving officer in accordance with section 20.1 of the PPL.

1.6Supervision of the tender dossier preparation of the Contracting Authority

Tendering requests :
It has been noticed that CA in all dossiers prepared for the tendering of 10 procurement activities, the tendering requests were clearly determined for 7 procurement activities whereas for 3 procurement activities with the proc. no. 450-06-23-512 ; 450-07-09-512; 450-07-31-521 the tendering requests were not properly modified and were unclear for the EO.
Use of standard forms approved by the PPRC
During the control of the tender dossier of 10 procurement activities it has been noticed that the Contracting Authority during the conduction of the procurement activities for 9 procurement activities has not used all forms approved by the PPRC and published on 01.01.2006 in the PPA’s web site, this represents violation of section95.1 of the PPL.
Technical specification:section 28 of the PPL
Contracting Authority during the compilation of the technical specifications, in the tender dossier with the proc. no. 110-06-64-121it has been noticed that Contracting Authority has not respected section 28 of the PPL, meaning that the technical specification was not made and it was not determined at all the request’s amount of the CA, this represents violation of section 28 of the PPL No.02/L-99.
Clear determination and evaluation criteria: section 50.1 of the PPL
Contracting Authority in 10 procurement activities in all contract notices and in the tender dossiers has clearly determined the evaluation criteria;it has been appointed the responsive tender with the lowest price.
Tender security: section 55 of the PPL
Contracting Authority during the conduction of 7 procurement activities that were the subject of supervision and monitoring it has been noticed that the tender security requests were not requested at all whereas for 3 procurement activity (proc.no. 450-06-52-512; 450-07-09-512; 450-06-23-512) the request for the tender security was requested and was clearly determined in accordance with section 55 of the PPL.

1.7 Supervision of the CA’s procurement process

Procurement publication: section 12 of the PPL
It has been stated that CA has made contract notice for 10 procurement activities that were controlled by the PPRC these procurement activities has published in the information means and their publication was made in accordance with the PPL.
Respecting tendering deadline: section 42.1of the PPL.
For the procurement activities with the proc. no.200-06-16-112 ; 450-07-22-521; PPRC has stated that the tendering deadline has not been respected in accordance with section 42.1 of the PPL, this represents violation of this section.
Tendering procedure :section 30 of the PPL
It has been noticed that during the control of the documents of 10 procurement activities, the Contracting Authority has used open procedure for these procurements since the value of the tenders have exceeded 10.000,00€
Request for the reduction of time limit
The Contracting Authority has requested the reduction of time limit for the tendering of 5 procurement activities (wit the proc. no.450-06-52-512;450-06-53-512; 450-06-36-512;450-07-31-521; 110-06-64-121) for which has obtained the approval,whereas for 5 other procurement activities the reduction of time limit has not been requested meaning that it has been used the normal tendering time limit in accordance with section 42.1 of the PPL.
Notification for the cancellation of the procurement:
It has been stated that 10 conducted procurement activities only for three procurement activities ( with proc. no. 450-06-52-512; 260-07-10-112; 450-06-36-512 ) has been made the cancellation of the procurement.
PPRC has stated that during the analyse of the procurement activities with the proc. no. 450-06-52-512 the Contracting Authority has cancelled the procurement activity and has published again the same one but in the dossier does not exist that this procurement activity has been cancelled and the reasons of this cancellation, this represents violation of section 21 of Public Procurement Regulation.
Request for waive of section:
During the monitoring and supervision of 10 procurement activities we can notice that the Contracting Authority has made the request for waive of section only for two cases(with the proc. no.110-06-64-121; 450-06-53-512 )and these requests were approved by the PPRC.
Notification on extending the tendering deadline:
NA -
The opening commission:
From the controlled documentation it has been noticed that Contracting Authority has prepared the decision for opening commission for 8 procurement activities in accordance with section 28.1 of Public Procurement Regulation.
Whereas for 2 procurement activities (with proc. no. 2600710112;4500623512)does not exist a decision the establishment of the opening commission this represents violation of section 28.1. of Public Procurement Regulation.

1.8 Public opening of the procurement activities in CA: section 56 of the PPL

Contracting Authority has made tender opening of all procurement activities when he used open procedureand Contracting Authority has compiled and took the minutes of the opening in accordance with section 56 of the PPL

1.9. Supervision of the procurement activities evaluation methodology

Decision for the Commission for procurement evaluation:
From the controlled documentation it is noticed that contracting Authority in all procurement activities has the proof about the decision for appointing evaluating commission, this decision was signed by the manager of the procurement office.
Under oath declaration for the evaluating committee members:
It has been noticed that for 10 procurement activities, the members of the evaluating commission have not signed the declaration under oath in accordance with Public procurement Regulation of Kosovo (section 20.2a)therefore this represents violation of this section.

1.10 Evaluating commission of CA:

Consistence and evaluation of the evaluating commission:
Contracting Authority for all procurement activities has appointed the evaluating committee consisted of 3-5 members, it has been noticed that that the qualifications of the committee members were not mentioned at all in 8 cases of the procurement activities, therefore in this case has been made the violation of section20.1 of Public Procurement Regulation of Kosovo.
Commencement and termination date of the evaluation:
In all cases the evaluating committee has evaluated the procurement activities in the sufficient time limits foreseen with the directions of public procurement regulation of Kosovo (section 29.13)

1.11 Statements of Monitoring and Supervising Commission (section 57 of the PPL)

It has been noticed that Contracting Authority from 10 controlled dossiers, at one (1) dossier of the procurement activities (with proc. no.2000616112,)the evaluating Commission has evaluated and awarded the EO that have submitted uncompleted and irresponsive tenders, and has not prepared the evaluation report at all, this represents violation of section 57 of the PPL.

1.12Supervision of notices for the procurement activities evaluation of CA.

Notice of the candidates and eliminated tenderers: section 52.of the PPL
It has been noticed that Contracting Authority during the conduction of 10 procurements, has not informed in writing the EO in none of the cases on the elimination and for the reasons of their elimination, in this case the Economic Operator has made the violation of section 52.1 of the PPL.
Notice for the awarded contract :section 39 of the PPL
Contracting Authority has made contract award notice in the information means for all procurement activities in accordance with section39 of the PPL.
Performance security: section 60 of the PPL
Contracting Authority during the accomplishment of 4 procurements in the tender dossier has requested for security performance of the contract from 10% prior to the contract signature in accordance with section 60 of the PPL
Whereas during the control of these procurement activitieswith proc. no. 4500623512; 4500709512; 450-06-52-512; 450-073-1521;the performance security has not been submitted by the wining EO, this represents violation of section 60.3 of the PPL.

1.13 Contract signature: section 24 of the PPL

From all (10) procurement activities that were analysed it has been noticed that section 24.1 or section 24.2 of LPP has been respected completely and it has been noticed that contract was signed by the procurement officer and EO.

1.14 Stated violations of the PPL:

Stated violations of the PPL
  1. Violation of section 7 of the PPL,Procurement Forecast.
  2. Violation of section 8.6 of the PPL Statement of needs and availability of funds.
  3. Violation of section 28 of the PPL.Technical specifications
  4. Violation of section 42.1 of the PPL No. 2003/17 Tendering time limits.
  5. Violation of section 95 of the PPL. Use of forms approved by the PPRC.
  6. Violation of section 52.1 of PPL No. 2003/17, Notification to eliminated tenderers and candidates.
  7. Violation of section 57 of PPL, Examination, evaluation and comparison of tenders.
  8. Violation of section 60.3 of the PPL. Performance security.
Stated violation of Public Procurement Regulation, part B
  1. Violation of Pubic Procurement Regulation of Kosova, section 20.1 Determination (description) of the professional qualification of the evaluating committee members.
  2. Violation of section 20.2a) of PPR, Declaration under oath for the committee members.
  3. Violation of section 21of the public procurement regulation, publication in the information means for the cancellation of the procurement activities.
  4. Violation of section 28.1.of Public Procurement Regulation, decision for the opening commission.

1.15 Recommendations and suggestions given by the PPRC

Public Procurement Law No.02/L-99
  1. To respect section 7 of the PPL,Procurement Forecast.
  2. To respect section 8.6 of the PPL Statement of needs and availability of funds.
  3. To respect section 28 of the PPL.Technical specifications
  4. To respect section 42.1of the PPL No. 2003/17 Tendering time limits.
  5. To respect section 52.1 of PPL No. 2003/17, Notification to eliminated tenderers and candidates.
  6. To respect section 57 of PPL, Examination, evaluation and comparison of tenders.
  7. To respect section 60.3 of the PPL. Performance security.
  8. To respect section 95 of the PPL. Use of forms approved by the PPRC..
Public Procurement Regulation, part B
  1. To respect section 20.1 of Pubic Procurement Regulation of Kosova, Determination (description) of the professional qualification of the evaluating committee members.
  1. To respect section20.2aof the PPR, Declaration under oath for the committee members.
  2. To respect section21 of public procurement regulation, publication in the information means for the cancellation of the procurement activities.
  3. To respect section28.1. of Public procurement regulation, decision for opening commission.

1.16 Judgements

Supervising and Monitoring Department of Public Procurement Regulatory Commission of Kosova requires from the procurement office in the Municipality Assembly of Dragash fully respect Public Procurement Law of Kosova and Public Procurement Regulation and to eliminate as soon as possible violations stated in this report.
Supervising and Monitoring Department is submitting you the accomplished report for supervision and monitoring and offers you the possibility for comments or suggestions regarding the report prepared by the SMC not later than 30 days from the days of the submission of the draft report.
Supervising and Monitoring Department that the expanded form of expertise of every procurement activity that was the object of the monitoring and supervision can be found in hard- electronic copy in the office of the Supervising and Monitoring Department.
This report will be considered as final report if contracting authority does not submit comments and suggestions with additional proofs within the time limit determined in the draft report.
Whereas according to the stated violations the PPRC requires from the Municipality Assembly of Dragash to take adequate measures.
Supervising and Monitoring Department of the Public Procurement Regulatory Commission of Kosova according to the Public Procurement Law of Kosova has the right to redo the control to state that recommendations and suggestions given by the SMC were fulfilled by the Contracting Authority.

1