Www.athena.europa.eu E UROPEAN U NION ATHENA ATHENA 2009 2009 E UROPEAN U NION ATHENA ATHENA 2009 2009 Council decision 2008/975/CFSP of 18 December 2008

www.athena.europa.eu

EEUROPEAN UROPEAN UUNION NION ATHENAATHENA

20092009

EEUROPEAN UROPEAN UUNION NION ATHENAATHENA

20092009

Council decision 2008/975/CFSP of 18 December 2008 ( OJ 23/12/2008 L 345/96 )


AGENDAAGENDA

• General characteristicsGeneral characteristics– FrameworkFramework– Standard proceduresStandard procedures– DeviationsDeviations

• TaxesTaxes

• Procurement stepsProcurement steps


FRAMEWORKFRAMEWORK

Reference:Reference: ATHENA Financial Rules 2009 – Part IIATHENA Financial Rules 2009 – Part II(based on EC Directive 2004/18)(based on EC Directive 2004/18)

(inspired by:(inspired by: - Lessons Identified during previous EU Ops- Lessons Identified during previous EU Ops- - Public contracts in the field of defence & Public contracts in the field of defence &

security)security)

Applicable except for « Berlin + » operations (See Part IV)Applicable except for « Berlin + » operations (See Part IV)

To procure what?To procure what?– Anything eligible as common costs or « Nation Borne Costs »Anything eligible as common costs or « Nation Borne Costs »

→See ATHENA Annexes and Special Committee decisionsSee ATHENA Annexes and Special Committee decisions

→No authority to contract outside ATHENA’s scopeNo authority to contract outside ATHENA’s scope→Otherwise: Illegality of the actOtherwise: Illegality of the act

– Ex: No outsourcing of military capabilities before authorization granted by Ex: No outsourcing of military capabilities before authorization granted by Special CommitteeSpecial Committee


Request to procure

Eligible for Common funding or Nation Borne Costs

Autorisation to be grantedBy the Special Committee

Appropriations available in the budget

ATHENAProcurement rules

StandardProcedures

Case-by-caseDeviations

PermanentDeviations


AGENDAAGENDA

• General characteristicsGeneral characteristics– FrameworkFramework– Standard proceduresStandard procedures

• Choice of the procedureChoice of the procedure• Time-linesTime-lines• PublicationPublication

– DeviationsDeviations• Permanent deviationsPermanent deviations• Case-by-case deviationsCase-by-case deviations

• TaxesTaxes• Procurement stepsProcurement steps


STANDARD PROCEDURE – Procedure’s choiceSTANDARD PROCEDURE – Procedure’s choice

• Applicable procedure determined by:Applicable procedure determined by:

– estimated cost excluding VAT, no splittingestimated cost excluding VAT, no splitting

– thresholdsthresholds

– Lower Threshold:Lower Threshold: 30.000 30.000 €€

– Higher Threshold:Higher Threshold: 133.000 133.000 €€ for services and supplies for services and supplies

5.000.000 5.000.000 €€ for infrastructure works for infrastructure works

• Deviations:Deviations:– for simpler procedure, if admissible justificationsfor simpler procedure, if admissible justifications


UsualUsual procedures iaw Thresholds procedures iaw Thresholds

• X < 5.000 X < 5.000 €€– Payment against simple invoicePayment against simple invoice

• 5.000 5.000 €€ < X < 30 000 < X < 30 000 €€ (« (« lower thresholdlower threshold »): »): – negotiated procedurenegotiated procedure with 3, with 3, – but J8 may opt for negotiated procedure with 1 candidate,but J8 may opt for negotiated procedure with 1 candidate,

withoutwithout formal derogation formal derogation

• 30 000 30 000 €€ < X < 133.000 < X < 133.000 €€ oror 5 M 5 M € (€ (« « higher thresholdhigher threshold ») »)– negotiated procedurenegotiated procedure with 3, with 3, – but negotiated procedure with 1 possible but negotiated procedure with 1 possible withwith formal derogation formal derogation

• Above the « higher threshold »:Above the « higher threshold »: – Open or restricted tendersOpen or restricted tenders (except where case-by-case deviation) (except where case-by-case deviation)– Until FOC: Until FOC: Negotiated procedureNegotiated procedure with publication and 3 candidates with publication and 3 candidates

consulted (permanent deviation)consulted (permanent deviation)


STANDARD PROCEDURE – DeadlinesSTANDARD PROCEDURE – Deadlines

• Open tender proceduresOpen tender procedures– 5252 days or days or 4040 if electronic means (Internet: notice + access) if electronic means (Internet: notice + access)

• Restricted ProceduresRestricted Procedures– 3737 days for requests to participate or days for requests to participate or 1010 if extreme urgency if extreme urgency– 4040 days to receive tenders or days to receive tenders or 1010 days if extreme urgency days if extreme urgency

• Negotiated procedure with publication of a contract noticeNegotiated procedure with publication of a contract notice– 3737 days for requests to participate or days for requests to participate or 1010 days if extreme urgency days if extreme urgency– NoNo fixed negotiation time fixed negotiation time

• Negotiated procedure without publicationNegotiated procedure without publication– NoNo limit limit


STANDARD PROCEDURE – PublicationSTANDARD PROCEDURE – Publication

• Above « higher threshold » :Above « higher threshold » :– in the EU Official Journalin the EU Official Journal– on the ATHENA Websiteon the ATHENA Website

– Can be done also:Can be done also:• in theatre (local press, chambers of commerce)in theatre (local press, chambers of commerce)• EDA Third Party Logistic Support platformEDA Third Party Logistic Support platform

• Below Below « higher threshold » :« higher threshold » :– Appropriate means (local press, …)Appropriate means (local press, …)– Could be done also in the EU Official JournalCould be done also in the EU Official Journal

• What to publish ?What to publish ?– Prior information noticePrior information notice– Call for expression for interestsCall for expression for interests– Contract noticeContract notice– Award noticeAward notice


AGENDAAGENDA


• Permanent deviationsPermanent deviations regardless of the amountregardless of the amount

• Case-by-case deviationsCase-by-case deviations– For what ?For what ?

– Granted by whom ?Granted by whom ?

• TaxesTaxes



Permanent DEVIATIONSPermanent DEVIATIONS

• To use Contracts already awarded byTo use Contracts already awarded by– Member StateMember State– EU InstitutionEU Institution– International organisationInternational organisation

• To make recourse to a Central Purchasing bodyTo make recourse to a Central Purchasing body

• To use the negotiated procedureTo use the negotiated procedureRegardless of the amountRegardless of the amount

– Air and Maritime transport servicesAir and Maritime transport services– Transport services in theatreTransport services in theatre– Building and pieces of landBuilding and pieces of land– Choice of a bankChoice of a bank

• To use the negotiated procedureTo use the negotiated procedureRegardless of the amountRegardless of the amountRegardless of the type of requirementRegardless of the type of requirement

→ Until the Forces reaches its Full Operational CapabilityUntil the Forces reaches its Full Operational Capability


Case-by-Case DEVIATIONSCase-by-Case DEVIATIONS

• For what ?For what ? - For any For any simpler proceduresimpler procedure, including single source, including single source- From the rules on From the rules on geographical scopegeographical scope, …, …

• Which authority may grant such specific deviation ?Which authority may grant such specific deviation ?– X < 30 000 X < 30 000 €€ : : J8 (NO formal J8 (NO formal

justification)justification)– 30 000 30 000 €€ < X < 133 000 < X < 133 000 €€ : : J8J8– 133 000 133 000 €€ < X < 1 M < X < 1 M €€ : : ATHENA’s administratorATHENA’s administrator– X > 1 M X > 1 M €€ : : ATHENA’s Special ATHENA’s Special

CommitteeCommittee

through the administratorthrough the administrator

• How to forward such request ?How to forward such request ?– from J8 to administrator by e-mailfrom J8 to administrator by e-mail


Case-by-Case DEVIATIONS – Case-by-Case DEVIATIONS – UsualUsual justifications justifications

• Extreme urgencyExtreme urgency

• When for technical or artistic reasons, the contract may be When for technical or artistic reasons, the contract may be awarded only to one particular operator (ex: public awarded only to one particular operator (ex: public monopolies)monopolies)

• Additional supplies, where a change in supplier would create Additional supplies, where a change in supplier would create technical difficulties (incompatibility, maintenance problems)technical difficulties (incompatibility, maintenance problems)

• Additional works or services, not exceeding 50% of initial Additional works or services, not exceeding 50% of initial worksworks


AGENDAAGENDA


• Permanent deviationsPermanent deviations

• Case-by-case deviationsCase-by-case deviations

• TaxesTaxes



TAXESTAXES

• In EU:In EU: ATHENA’s Privileges and ATHENA’s Privileges and ImmunitiesImmunities

• In theatre:In theatre: SOFASOFA- Exemption from taxes and customs dutiesExemption from taxes and customs duties

- NO exemption from fees for services requested and renderedNO exemption from fees for services requested and rendered

Negotiate with authorities what those services areNegotiate with authorities what those services are


PROCUREMENT STEPSPROCUREMENT STEPS

1. Request1. Request

2. Make a commitment in the budget2. Make a commitment in the budget 3. Draw up technical specifications & administrative requirements3. Draw up technical specifications & administrative requirements 4. Determination of the procedure and impact on the delivery4. Determination of the procedure and impact on the delivery

5. Advertise5. Advertise 6. Select successful candidate6. Select successful candidate 7. Conclude a contract7. Conclude a contract

8. Check delivery8. Check delivery 9. Enter in the inventory9. Enter in the inventory 10. Pay against receipt10. Pay against receipt 11. Write off11. Write off


1.1. To receive a requestTo receive a request– Collaboration between J*Collaboration between J*

– Approval of the request by the Authorizing OffrApproval of the request by the Authorizing Offr

2.2. Make a commitment in the budgetMake a commitment in the budget– temptation for every section (J1, J4, J6) to buy and then bring the temptation for every section (J1, J4, J6) to buy and then bring the

bill, especially early in operationbill, especially early in operation

– = reservation in the budget= reservation in the budget

– should be avoided: should be avoided:

• budget is a limit and must be complied withbudget is a limit and must be complied with

• budget must be managed: redeployment of appropriations during budget must be managed: redeployment of appropriations during operation are usually necessaryoperation are usually necessary

• therefore, sequence « budget commitment then contract or therefore, sequence « budget commitment then contract or purchase order » should be complied withpurchase order » should be complied with



3.3. a.a. Technical specificationsTechnical specifications::

– essential, even if takes timeessential, even if takes time

– requirements must be proportionate to needs and duration of requirements must be proportionate to needs and duration of operation (principle of economy)operation (principle of economy)

– requirements must be sufficiently detailedrequirements must be sufficiently detailed

b. Administrative requirementsb. Administrative requirements::– candidates capacity to do the job essential, especially in theatrecandidates capacity to do the job essential, especially in theatre– security requirements security requirements – performance guarantee:performance guarantee:

– compulsory if pre-financing exceeds 133 000 euroscompulsory if pre-financing exceeds 133 000 euros– For all contact above 133 000 eurosFor all contact above 133 000 euros

5 to 10% of contract5 to 10% of contract



4.4. Determination of the procedureDetermination of the procedure


Regulation

Type of Procedure

Delays

Date of delivery

Potential case-by-caseDerogation


5. Advertise5. Advertise

– If above the « higher threshold » : If above the « higher threshold » :

→ in the Official Journal of the European Unionin the Official Journal of the European Union

– If below the « higher threshold » :If below the « higher threshold » :

→ advertise by any means:advertise by any means:

– local chamber of commerce, confederation of industrylocal chamber of commerce, confederation of industry

– local presslocal press

→ can resort to existing listscan resort to existing lists

(provided by Embassy, Commission delegation, etc.) (provided by Embassy, Commission delegation, etc.)



6. Select the successfull candidate6. Select the successfull candidate

– IfIf aboveabove the « higher threshold » and no deviation: the « higher threshold » and no deviation:→ formal tender (double sealed envelopes)formal tender (double sealed envelopes)

– If belowIf below the « higher threshold » or with a deviation: the « higher threshold » or with a deviation:→ negotiated procedure: negotiated procedure:

→negotiate price & services, works, suppliesnegotiate price & services, works, supplies

– In any caseIn any case→ selection committee:selection committee: – appointed by authorising officer (Operation Commander, by appointed by authorising officer (Operation Commander, by

delegation: local J8)delegation: local J8)– at least 3 persons from 2 different sections of the HQ concerned at least 3 persons from 2 different sections of the HQ concerned

(J8+technical branch concerned)(J8+technical branch concerned)



6. Select the successfull candidate (6. Select the successfull candidate (continuedcontinued))

Criteria:Criteria:

– either the lowest price either the lowest price – should be the ruleshould be the rule

– or the best-value-for-moneyor the best-value-for-money– taking into account notably the capacity to do the job within the timeframetaking into account notably the capacity to do the job within the timeframe

– must be specified in the specificationsmust be specified in the specifications

– report on procedure, including reasons for selectionreport on procedure, including reasons for selection



7. Conclude a contract7. Conclude a contract

– in writing (to avoid doubts and conflicts)in writing (to avoid doubts and conflicts)

– 2 possible forms:2 possible forms:

– either a single document signed by the partieseither a single document signed by the parties

– or a signed commitment from the candidate (offer, acceptance of the or a signed commitment from the candidate (offer, acceptance of the conditions set out by the contracting authority), signed by the conditions set out by the contracting authority), signed by the contracting authoritycontracting authority

• Notify successful candidateNotify successful candidate

• Inform othersInform others

• Enter into accounts (Enter into accounts (legal commitmentlegal commitment))



8.8. Check deliveryCheck delivery

- If works or services: If works or services: → performance must be monitored closely & continuouslyperformance must be monitored closely & continuously→ conformity to contract must be assessedconformity to contract must be assessed - If supplies: If supplies: → delivery and conformity to contract must be assessed delivery and conformity to contract must be assessed

- In any case, delivery and acceptance of the works, services or In any case, delivery and acceptance of the works, services or supplies must be certified (by the technical branch concerned) supplies must be certified (by the technical branch concerned) before final payment may be madebefore final payment may be made



9. Enter in the inventory9. Enter in the inventory

– Must be done immediately on acceptanceMust be done immediately on acceptance→ Responsible branches must be made awareResponsible branches must be made aware

– All items with a period of use normally greater than one year All items with a period of use normally greater than one year → Not based on the value, but on normal durabilityNot based on the value, but on normal durability

& in accordance with the accounting policy& in accordance with the accounting policy(eg: portable phones should be on the inventory)(eg: portable phones should be on the inventory)

– Should contain: Should contain: – description of itemsdescription of items– location/person responsible location/person responsible – date of acceptancedate of acceptance– (price)(price)



10. Pay10. Pay

– Payments may be made:Payments may be made:– on account (upon ordering, before work starts)on account (upon ordering, before work starts)– as interim payments (usually according to progress)as interim payments (usually according to progress)– of the balance due after acceptance.of the balance due after acceptance.

– Payments on account should be kept minimalPayments on account should be kept minimal– Interim payments should be made based on acceptance of partial delivery Interim payments should be made based on acceptance of partial delivery

or progress madeor progress made– Final balance may be paid only after final acceptanceFinal balance may be paid only after final acceptance

– Two signatures required for any payment Two signatures required for any payment (authorizing officer + accounting officer)(authorizing officer + accounting officer)



11. Write off11. Write off

– Distinct from final destination of equipment, to be decided by Special Distinct from final destination of equipment, to be decided by Special Committee, at end of operationCommittee, at end of operation

– In every HQ, a write-off committee:In every HQ, a write-off committee:– the head of the J8the head of the J8– the head of the branch responsible for the equipmentthe head of the branch responsible for the equipment– the head of the branch responsible for its maintenancethe head of the branch responsible for its maintenance

– < 30 000 euros: HQ’s commander may decide a write off< 30 000 euros: HQ’s commander may decide a write off– > 30 000 euros: HQ’s commander may decide> 30 000 euros: HQ’s commander may decide

with written assent of Write Off with written assent of Write Off CommitteeCommittee

– In case of loss or destruction: report filed by J8 and write offIn case of loss or destruction: report filed by J8 and write off



AGENDA - SummaryAGENDA - Summary

• General characteristicsGeneral characteristics

– FrameworkFramework– Standard proceduresStandard procedures– DeviationsDeviations

• TaxesTaxes



AGENDAAGENDA

• General characteristicsGeneral characteristics– FrameworkFramework

• Anything eligible as Common FundingAnything eligible as Common Fundingoror

• Listed as Nation Borne CostsListed as Nation Borne Costs


AGENDAAGENDA

• General characteristicsGeneral characteristics– FrameworkFramework

– Standard proceduresStandard procedures• Potential procedures are based on ThresholdsPotential procedures are based on Thresholds

– > « Higher threshold »: usually Open or Restricted procedure> « Higher threshold »: usually Open or Restricted procedure– < « Higher threshold »: usually Negotiated procedure< « Higher threshold »: usually Negotiated procedure– Higher Threshold:Higher Threshold: 133.000 133.000 €€ for services and for services and

suppliessupplies 5 M 5 M € for € for

Infrastructure worksInfrastructure works• DeadlinesDeadlines

– Min 10 days for the restricted and negotiated proceduresMin 10 days for the restricted and negotiated procedures• Publication requirementsPublication requirements• Requests for derogation are possibleRequests for derogation are possible


AGENDAAGENDA


– Deviations – 2 TypesDeviations – 2 Types• Case-by-case basis for the Standard proceduresCase-by-case basis for the Standard procedures

• Permanent basis for a effective managementPermanent basis for a effective management


AGENDAAGENDA


– Deviations on a Case-by-case basisDeviations on a Case-by-case basis• For any simpler procedureFor any simpler procedure• Autorities who may grant such deviation:Autorities who may grant such deviation:

– X < 133.000 X < 133.000 €:€: J8J8– X < 1 M €:X < 1 M €: AdministratorAdministrator– X > 1 M €:X > 1 M €: Special CommitteeSpecial Committee

– 2 types of « Thresholds »2 types of « Thresholds »• Thresholds for the choice of the procedureThresholds for the choice of the procedure• Thresholds for the determination of the authority who may grant Thresholds for the determination of the authority who may grant

such deviationsuch deviation


AGENDAAGENDA

• General characteristicsGeneral characteristics– Framework & Standard proceduresFramework & Standard procedures– Case-by-case DeviationsCase-by-case Deviations

– Permanent DeviationsPermanent Deviations• To use contracts already awarded byTo use contracts already awarded by

– MS, EU Institutions and International organisationsMS, EU Institutions and International organisations• To make recourse to a Central Purchasing bodyTo make recourse to a Central Purchasing body• To use the negotiated procedure To use the negotiated procedure regardless of the valueregardless of the value

– During the whole operationDuring the whole operation::

» Air, maritime and in-theatre transport servicesAir, maritime and in-theatre transport services» Building and pieces of landBuilding and pieces of land» Choice of a bankChoice of a bank

– Until the Forces reaches the FOCUntil the Forces reaches the FOC::

» All requirementsAll requirements


AGENDAAGENDA

• General characteristicsGeneral characteristics– FrameworkFramework– Standard proceduresStandard procedures– Case-by-case DeviationsCase-by-case Deviations– Permanent DeviationsPermanent Deviations

• TaxesTaxes– In theatre:In theatre: Exemption from taxes and custom duties, Exemption from taxes and custom duties,

exceptexcept the fees for services requested and the fees for services requested and renderedrendered

– In EU:In EU: ATHENA’s Privileges and ImmunitiesATHENA’s Privileges and Immunities

• Procurement stepsProcurement steps– Like in the National organisationsLike in the National organisations


PROCUREMENTPROCUREMENT

Procurement GuideProcurement Guide– Documentary Fiches and templatesDocumentary Fiches and templates– To be reviewed in the beginning of 2010To be reviewed in the beginning of 2010– AvailabilityAvailability

• Book, files, …Book, files, …

• www.athena.europa.euwww.athena.europa.eu

http://www.athena.europa.eu/







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Www.athena.europa.eu E UROPEAN U NION ATHENA ATHENA 2009 2009 E UROPEAN U NION ATHENA ATHENA 2009 2009 Council decision 2008/975/CFSP of 18 December 2008