PUBLIC PROCUREMENT LAW IN LATVIA

1. PUBLIC PROCUREMENT LAWIN LATVIA

2. Legal Bases of thePublic Procurement Law • the Law of 5 July 2001 on Procurement for State or Local Government Needs • Cabinet Regulation No.257, adopted 8 April 2004 “Regulations Regarding Procurement for Needs of Providers of Public Services” • Both Laws are supplemented with secondary legislation

3. Procurement Methods • Open Competition • Restricted Competition • Price Quotation • Negotiated Procedure • Design Contest

4. Thresholds (in LVL)

5. Qualification Criteria: Conditions for Excluding Tenderers • Insolvency • Tax debts • Violations of the professional activities • No registration in cases prescribed by Law • No corresponding certificate or license • Pay-down of wages without tax payment

6. Qualification Criteria: Requirements and DocumentsRegarding the Economic and Financial Standing • The contracting authority shall determine the minimal requirements with respect to the economic and financial standing and may require the tenderer to submit one or more of the following documents: • the annual accounts • a statement regarding the tenderer’s financial turnover • information regarding State social insurance payments from the income of the employer

7. Qualification Criteria: Requirements Regarding Tenderer’s Capabilities • The contracting authority shall determine the minimal requirements with respect to tenderer’s capabilities, inter alia: • experience; • qualification of the staff; • technical capacity; • quality assurance system;

8. Documents Regarding Tenderer’s Capabilities The contracting authority may request the tenderer to present or submit documents (only that are relevant to determined requirements),e.g.: • A list of relevant goods sold, services provided, information regarding works performed; • Information regarding personnel involved; • A description of the measures to ensure the quality; • A statement regarding which parts of the contract the tenderer plans to give to subcontractors. No special requirements for foreign tenderers are stated.

9. Securities • The contracting authority may request a tender security from tenderers. • The competition regulation shall specify what types of tender security are acceptable. • The contracting authority may request to provide in a contracta security for a contract (obligation).

10. Forms of Participation Tenderer – a person or group of persons who have submitted a tender. *** Tenderers may join together in groups irrespective of their type of commercial activity and submit a joint tender.

11. Submitting Variants • If the contract award criteria is the lowest price, the tenderer may submit tender variants unless provided contrary in the competition regulation. • If the contract award criteria is the most economically advantageous tender, the tenderer may submit tender variants only if so provided in the competition regulation.

12. Form of Submitting the Tender A tenderer shall ensure that the information contained in the tender is not accessible until the moment of opening of the tender. *** The contracting authority states in competition regulations requirements with respect to documentation and submission of tenders (usually – sewn together, in closed envelope(s)).

13. Process of the Open Competition (1) • Tender notification • Providing of additional information • Submission of tenders • Opening of tenders • Selection of tenderers • Checking the conformity of tenders with the description of technical specifications and other requirements specified by the regulations

14. Process of the Open Competition (2) • Evaluation of the tenders regarding requirements in accordance with the evaluation criteria • Taking a decision • Notification of a decision • Conclusion of contract

15. Contract award criteria

16. The most economically advantageous tender quality; experience of tenderer; unit costs of one product; price (40%) and other criteria Service contract quality; experience of tenderer; unit costs after completion of building; price and other criteria Works contract price; delivery date; running costs; cost-effectiveness; quality; aesthetic and functional characteristics; technical characteristics; after-sales service and costs; technical assistance Supply contract

17. Procurement Monitoring Bureau • Monitoring procurement procedures and supervision • Colleting and analyzing statistical information • Organizing training for contracting authorities and economic operators • Reviewing complaints • Prohibition the entering into contracts until the rectifying of violations and requesting the termination of the procurement procedure • International co-operation in the area of public procurement • Participation in publishing procurement notices

18. Examining Complaints • Procurement Monitoring Bureau forms a commission • Commission consisting of not less than three members • Members may not be persons who have previously provided consultations or who have an interest in the actual procurement

19. Types of Complaints • Complaint relating to the tenderer documentation – it can be submitted not later than 6 working days before the final date for the submission of tenders. • Complaint relating to the decision made by the contracting authority – it can be submitted only before the contract is signed.

20. Projects planed for the near future Northern crossing of river Daugava in Riga