ENI East Regional Conference Public Procurement PP in Armenia English

1. PUBLIC PROCUREMENT
Armenia
24-25 April 2014
Paris

2. Session 2:
Public Procurement policy
Public procurement was introduced in Armenia in 2000.
Goal:
► create single rules for
procurement,
► have competitive, transparent,
open procurement free of
discrimination,
► expand the range of
participants,
► promote competition among
participants.

3. ORGANIZATIONAL STRUCTURE
POLICY DEVELOPMENT
Government of Armenia
Ministry of Finance
(Department of Internal Financial Control and Public Procurement Methodology)
Management
IMPLEMENTATION
Non-profit government organization «Center for Procurement Support and Administration
ARMEPS ; training, statistics, and analysis
- Free training
- Support
-Administration
Training
- Training
(paid)
PURCHASERS
- Government
- Local government
-Businesses with over 50% of
government-owned shares
- Utility monopolies
BIDDERS
local and international
PROCUREMENT
- In paper format (prior to
2012)
- E-procurement (since
2012)
MONITORING AND ANALYSIS
- Control Chamber
- State Commission for Economic Competition Protection
- Civil society organizations
- Council for Procurement Complaints

4. Public procurement compatibility with management of public
finance, trade and industry development
25 % of budget
allocations are spent
in PP
Some 5000 business
entities took part in PP
in 2013
► Public procurement has a large share of government
spendings in the Republic of Armenia.
► Armenia has a single contract payment system
supported by the Treasury e-system.
► The Government’s goal and policy is to expand the range
of participants and promote SMEs

5. Session 4:
Public Procurement reform
 The Parliament of Armenia has
adopted three laws to regulate
public procurement
 The third law of 22 December
2010 introduced a number of
amendments.
 The new law and Government
regulation comply with
UNCITRAL, WTO GPA, and EU
Public Procurement Directive.
Armenia has other auxiliary legal
acts, i.e. Law on Electronic
Documents and Electronic
Signature, Law on Electronic
Communications, and others)
► The first law was
completely
centralized
► The second law
(2005 – 2010)
introduced elements
of decentralization
In 2005-2010, the <<Procurement
Agency>> ran only competitive
procurements on behalf of CAs.

6. New Law took effect on 1 January 2011
Key legislative changes
► Procurement decentralization,
► Introduction of e-procurement,
► <<Procurement Agency>> was renamed Non-Profit Government
Organization “Center for Procurement Support”,
► Concessions,
► Appellate Council

7. After legislation was changed
► 4000 CAs that organize
procurement procedures
independently,
► Open procedures since 1
January 2012,framework
contracts since 1 January 2014,
central executive agencies, local
governments and public entities
conduct electronic procurement.

8. <<Procurement Agency>> was renamed Non-
Profit Government Organization “Center for
Procurement Support”
Before reform
► Procurement Agency
organized centralized
procurement
procedures,
► signed contracts on
behalf of purchasers.
After reform
► Provides procurement
support

9. Accession to WTO GPA
► Armenia applied for GPA membership in
September 2009.
► Six negotiation rounds were conducted in Geneva
in 2010. On 7 December 2010, Armenia
became GPA 42nd member.
► Other GPA members are Canada, 27 EU Member-
States, Hong Kong (China), Island, Israel, Japan,
Korea, Lichtenstein, Netherlands, Norway,
Singapore, Switzerland, Taipei, and USA.

10. Accession to GPA
► GPA membership provides real benefits in terms of
access to other markets to purchase goods, works,
and services, and to increase competition and
transparency in the GPA Member-States’ internal
markets.
► Political and legal commitment of good governance

11. Session 6:
Key functions of
public procurement
Key PP functions are distributed
between Ministry of Finance (the
Authorized Agency) and Center for
Procurement Support
Control Chamber of Armenia, State
Commission for Economic
competition Protection, civil society
organizations, Council for
Procurement Complaints (appellate
council)

12. Main functions
Authorized Agency
►coordination and legislation development,
►methodological guidance for procurement
procedures and support to the parties,
►coordination of cooperation with
procurement systems of international
organizations, foreign nations, public
agencies and municipalities of Armenia,
►permanent training and evaluation of
procurement coordinators qualifications.

13. Функции
<<Центр по содействию закупкам>>
полномочия и функции определяются договором заключеным с уполномоченным органом
государственная некоммерческая организация «центр по содействию закупкам»; обслуживание и
содержание ARMEPS ; обучение, статистика и Анализ
- Бесплатное
Обучение
- Поддержка
-Содержание
- Обучение
- Обучение
(Платное)
ЗАКАЗЧИК / ПОКУПАТЕЛЬ
- Государственные органы
- Местные органы власти
- Предприятия с более, чем 50%
долей государственной
собственности
- Монополия на предприятия
коммунального хозяйства
УЧАСТНИКИ ТОРГОВ
Местные и иностранные
ЗАКУПКИ
- В бумажной форме (до
2012 года)
- Электронные Закупки
(с 2012 года)
МОНИТОРИНГ-АНАЛИЗ
- Контрольная Палата Армении
- Государственная Комиссия по Защите Экономической Конкуренции
- Организации Гражданского Общества
- Совет по Рассмотрению Жалоб по вопросам Закупок

14. FUNCTIONS: Center for Procurement Support
Its competences and functions are established in the Agreement with the Authorized Agency
POLICY DEVELOPMENT
Government of Armenia
Ministry of Finance
(Department of Internal Financial Control and Public Procurement Methodology)
Management
IMPLEMENTATION
Non-profit government organization «Center for Procurement Support and Administration
ARMEPS ; training, statistics, and analysis
- Free training
- Support
-Administration
Training
- Training
(paid)
PURCHASERS
- Government
- Local government
-Businesses with over 50% of
government-owned shares
- Utility monopolies
BIDDERS
local and international
PROCUREMENT
- In paper format (prior to
2012)
- E-procurement (since
2012)
MONITORING AND ANALYSIS
- Control Chamber
- State Commission for Economic Competition Protection
- Civil society organizations
- Council for Procurement Complaints

15. Session 7:
Remedies, who can launch complaints
Center for Procurement Support is the Appellate Commission Secretariat
Center for Procurement Support
► Hot Line receives any calls
from participants
► complaints are studies
meticulously
► anonymous calls are accepted
and acted upon properly
► earlier a participants could
withdraw a complaint and the
case was considered closed,
while now every complaint is
processed until a decision is
made

16. Decision to award contract
(inaction period)
► Before signing a contract, Customer
announces the decision to award
contract
► Announcement offers an inaction
period when complaints can be filed
► The parties may appeal the Customer’s
decision with the appellate commission

17. The inaction period is 10 days for procurements above 50
million drams and 5 days for procurements below 50
million drams
A contract signed before the inaction period expires is
considered void
Inaction period is not applied if only one bidder is present

18. 2011
2012
2013
0
10
20
30
40
50
AxisTitle
Chart Title
нерассмотренные
жалобы
6 10 10
неудовлетворенные
жалобы
5 11 20
удовлетворенные
жалобы
15 17 19
2011 2012 2013
Complaints
dismissed
not supported
supported

19. Session 8:
Current practice to process compaints
► New law established an appellate commission
► Every public customer may only have one
commission member
► 73 commission members have been
registered.
1. government agencies,
2. local authorities,
3. Central Bank representative,
4. NGOs:
2 commission members represent NGOs. Ways to
engage more NGOs are studied.

20. Legal testing
►Appellate commission members are tested
for knowledge of legislation before member
lists are published.
►Commission members are elected for 5
years with a possible extension by another 5
years.

21. Black list
► Organizations cannot participate in
PP procedures if they have been
entered into the list of entities that
have no right to participate in PP
procedures, the so-called black list.
► The black list is published by the
Authorized Agency.
► The Authorized Agency uses its
information to launch a relevant
formal procedure at the appellate
commission.
► An organization may stay on the
black list between six months and
three years, depending on the
gravity of the violations.

22. Session 9:
Plans and priorities for public procurement
development in the coming years
► transition to e-procurement is planned,
► consistent improvement and enhancement of
the appellate council’s role,
► steps to increase the number of submitted
complaints,
► legislative amendments are planned to comply
with the reviewed GPA,
► improve qualifications and professional skills
of procurement experts,
► introduce procurement curricula and guides in
university courses,
► increase awareness of procurement
participants to better understand their rights.
Changes for the
better