GOVERNMENT OF MONTENEGRO

Public Procurement Administration

Public procurement legislative experiences and needs&plans for development of the legislative

framework in short and medium term

Presenter: Sandra Škatarić, Head of Department for professional development, training and international cooperation in

public procurement field

M O N T E N E G R O

PPL (“OG of MNE”, no. 42/11) overview

Law on Public Procurement (“Official Gazette of Montenegro”, no 42/11)

Rulebook on the methodology of expressing sub-criteria in the corresponding number of points, method of evaluation and comparison of bids

Rulebook on Manner of Keeping and Content of Records on Violation of Anti-Corruption Rules

Rulebook on the records of public procurement procedures

Regulation on the Forms in Public Procurement Procedure

Other implementing Acts:

http://www.ujn.gov.me

Characteristics of the PPL (“OG of MNE”, no. 42/11)

– New Public Procurement Act since 2011;

– Consolidated regulation of the procedures for the award of contracts by authorities in the public sector and utilities entities in the water, energy, transport,mining, telecomunications and postal sectors;

– Sublimated provisions on the procurement of goods, works amd services;

– Provisions regulate all aspects of the procurement process, from definition of subject matter to contract award;

– Emphasis on transparent and efficient use of budget &other funds;

– Regulation establishes an effective and rapid remedies system;

– Simulation on free market competition.

3 Thresholds / 9 Procurement procedures

Value Scale I Value Scale II

Value Scale III

Contract value ≤ 5.000 € (Services / Supplies / Works)

Contract value 5.000 – 25.000 € (Services / Supplies) 5.000 – 50.000 € (Works)

Contract value ≥ 25.000 € (Services / Supplies) ≥ 50.000 € (Works)

9) Direct assignment

8 ) Shopping Method

1) open procedure; 2) restricted procedure; 3) negotiated procedure with prior publication of a contract notice; 4) negotiated procedure without prior publication of a contract notice 5) framework agreement; 6) consulting services; 7) contest;

Principles and Time limits

• Cost effective and efficient use of public funds;

• Ensuring competition among the bidders;

• Transparency;

• Equality of bidders.

Time limits:

• Open procedure 37-22 days;

• Restricted procedure (I stage 37 days, II stage 22);

• Negotiated procedure 22 days.

Process of the public procurement procedure

1. Initiation of procedure Conditions: Decision on initiating the procedure -Allocated funds Appointment of commission for the opening and evaluation of

bids -Plan 2. Invitation for public tender - Estimated value of public procurement - Conditions - Criteria for selection of the most favourable bid 3. Public opening of bids -Minutes 4. Review, assessment and evaluation of bids -Rejecting invalid bids -Minutes -Report on public procurement procedure 5. Decision on selection of the most favorable bid Decision on cancellation of public procurement procedure 6. Public Procurement Contract

Exemptions from the law (Art. 3 PPL)

1. International rules;

2. Confidential procurement;

3. Defense of Montenegro;

4. Services of public interest;

5. State of emergency;

6. Broadcasting program material;

7. Arbitration;

8. Financial services;

9. Labour relations and employment;

10. Election material;

11. Concession and privatization of the economy, sale and renting ;

Public procurement records and reporting

Records of contracting authorities:

-conducted procedures -concluded contracts

Reporting:

Contracting authorities shall submit to Public Procurement Administration not later than 29th Feb reports on:

-conducted procedures

-public procurement contracts concluded in the previous year

Public Procurement Administration

Annual report:

-submits to the Government (31/05)

-publishes on the Public Procurement Portal

MORE: www.ujn.gov.me

Assesment of alignment

• Partially harmonised;

• New law brought progress;

• PPL needs to be further harmonised with respect to special regime for Utilities sector;

• EU funded Project : “Enhancing the public procurement system in Montenegro”.

Further harmonization

• Introduction of more flexible procedures: (shorter deadlines, qualifications systems, less rigid negotiated procedure);

• Development of centralized purchasing techniques;

• Utilization of electronic procurement tools: Electronic auctions , dynamic purchasing systems.

THANK YOU FOR ATTENTION!