Rules for Procurement of Goods, Services and Works by Energotrans Ltd.
Article 1. Scope of Application
1. These Rules for Procurement of Goods Services and Works by Energotrans Ltd. (hereinafter the “Rules”) shall apply to any procurement other then the purchases described in Sections 2 and 3 of this Article 1.
2. During carrying out procurement activities, use of procurement procedures adopted by World Bank, United Nations, European Bank for Reconstruction and Development (EBRD), Asian Development Bank (ADB), German Reconstruction Credit Institute (KfW), European Investment Bank) and other international financial institutions shall be allowed, provided that such institutions are the parties to the legal arrangements with respect to performance/financing of the relevant procurement.
3. These Rules shall not apply to:
a) purchases of electricity, guaranteed capacity, natural gas and water supply services;
b) purchases related to acquisition of the real property ownership or usership rights;
c) purchases of TV or radio broadcasting time, and procurements related to dissemination of the advertising material via mass media or renting of the space for holding the meetings;
d) purchases of the services provided by LEPL Levan Samkharauli National Forensics Bureau.
Article 2. General Principals of Procurement
The general principles of procurement activities carried out by Energotrans Ltd. are as follows:
a) Substantiate necessity of the purchase
b) Select rational option
c) Ensure publicity and transparency
d) Provide potential Suppliers/Bidders with equal opportunity environment for representation of their capacities and facilitate development of the fair competition
e) Create the public confidence environment
f) Achieve economic effectiveness
Article 3. Definition of Terms
The terms used in these Rules shall have the following meanings:
a) “Purchasing Entity” shall mean Energotrans Ltd.;
b) “Subject of Purchase” shall mean Goods, Services or Construction Works;
c) “Goods” shall mean a property of any type and description (except the real property) being in solid or liquid or gaseous state, including relevant supply services, provided that price of such services shall not exceed the same of the Goods;
d) “Construction Works” (hereinafter the “Works”) shall mean any works related to erection, reconstruction, demolition, improvement or updating of building, structure or other premise (including preparation of the construction site, soil excavation, erection and construction of building and/or structure, installation of equipment, finishing and lining works, construction of utilities related to Works), as well as auxiliary construction activities, e.g. drilling, geodesic surveys, space and aerial photography, seismic exploration and any other similar services envisaged in the purchase Contract, provided that the price payable for such services shall not exceed the price attributable to respective Construction Works);
e) “Services” shall mean any Subject of Purchase other then Goods and Works;
f) “Procurement Plan” shall mean the Annual Procurement Plan as approved by the Purchasing Entity;
g) “Candidate” or “Bidder” shall mean any physical person or legal entity residing in Georgia or foreign state, who submitted the offer in response to Request for Price Quotation, or the bid for participation in the Tender;
h) “Supplier” shall mean any physical person or legal entity residing in Georgia or foreign state, which executed the purchase Contract with the Purchasing Entity;
i) “Request for Price Quotation” or “RPQ” shall mean the method of procurement allowing written or electronic trade for procurement of Goods, Works or Services, with price being the major criterion for decision making. However, the Purchasing Entity may propose other criteria, provided that priority indices of other criteria neither individually nor in aggregate shall exceed the priority index assigned to the price;
j) “Simplified Procurement” shall mean the procurement method assuming possibility for direct selection of the Supplier;
k) “Urgent necessity” shall mean any circumstances that pose a real threat to Purchasing Entity’s operations, which could not be forecasted in advance or/and are not caused by any action of the Purchasing Entity, or/and, may significantly harm the state and/or public interests of Georgia or Purchasing Entity’s property;
l) “Tender Fee” shall mean mandatory amount payable to the account of Energotrans Ltd. for participation in the Tender that remains in possession of the Purchasing Entity;
m) “day”, “week”, “month”, “quarter”, “tear” shall mean calendar day, week, month, quarter, year as appropriate;
n) “Alternative Bid” shall mean with respect to Tender or RFP, the bid with distinctive technical and quality characteristics and/or technically and organizationally different solution submitted by Candidate;
o) “Lot” shall mean the Subject of Purchase allocated to the single procurement;
p) “Tender” shall mean procurement method assuming selection of the Supplier by the Tender Committee of the Purchasing Entity based on evaluation of the bids;
q) “Price Decrement Limit” shall mean reduction of the price in the range of 0.4%-2% of the estimated value of the Subject of Purchase.
Article 4. Rights and Obligations of Purchasing Entity
1. The Purchasing Entity shall be entitled to:
a) select and execute with the Supplier the purchase Contract (hereinafter the “Contract”), subject to compliance with these Rules;
b) disqualify the Candidates in accordance with these Rules;
c) to terminate procurement process at any time prior to execution of the Contract.
2. The Purchasing Entity shall be obliged to:
a) Maintain procurement budget within allocated funds, and carry out procurement activities with due consideration of the Purchasing Entity interests;
b) Ensure confidential treatment of the information provided by Candidates;
c) provide control and supervision over compliance of the Supplier’s performance against the terms and conditions of the Contract.
Article 5. Procurement Planning
1. The Purchasing Entity shall carry out procurement activities defined in these Rules in accordance with the Procurement Plan.
2. The following conditions shall be taken into consideration during drafting/revising the Procurement Plan:
a) Necessity of the purchase;
b) Quantity of Goods and volumes of Services planned for purchase;
c) Proposed dates and venues for carrying out procurement procedures;
d) Estimated price of the Subjects of Purchase.
3. Procurement Plan shall account for the appropriate parameters of the budget/Rehabilitation Plan of the Purchasing Entity.
Article 6. Procurement Methods
1. The methods applicable to procurement of the Subject of Purchase shall include Simplified Procurement, Request for Price Quotation and Tender. The specific procurement method shall be selected based on submitted individual purchase requests.
2. The Simplified Purchase method may apply if:
a) Estimated price of the Subject of Procurement does not exceed GEL 50,000 (fifty thousand);
b) Urgent Necessity occurs as decided by the Purchasing Entity, provided that in such case, within 5 days, the Purchasing Entity shall communicate such decision to its partner, JSC Georgian State Electrosystem;
c) Specific Supplier is exclusively entitled to supply the Goods or render the Services to be procured, and no feasible alternative replacement is available;
d) For avoiding deterioration of the quality of the Subject of Purchase procured by specific Supplier and/or to ensure its further smooth operation, additional supplies shall be procured from the same Supplier, save the cases, when estimated value of the planned procurement exceeds the value of the original supply;
e) The Works/Services to be performed according to decision of the Purchasing Entity shall be procured on part of the the territory of Georgia that is temporarily out of Georgian jurisdiction;
f) The procurement is related to the official entertainment expenses;
g) The procurement is affected by payment of the statutory charges established by normative act of Georgia;
h) Procurement is affected by the Supplier selected based on the procurement procedures carried out by the partner of the Purchasing Entity holding more than 50% of its share (“hereinafter the “Majority Partner”) (in such case the terms and conditions of the Contract (including unit prices) made available to the Purchasing Entity shall not be worse than ones included in the Contract executed between such Supplier and the majority shareholder partner of the Purchasing Entity);
i) One or more motor vehicles and/or computer hardware shall be replaced by/exchanged for one or more new motor vehicles and/or computer hardware having improved specifications; in such case part of the value of a new motor vehicle and/or computer hardware shall be reimbursed by returning motor vehicle and/or computer hardware subject to replacement to the original Supplier or by way of handing over to another individual or legal entity that performs the sale of similar products (Goods);
3. The procurement may be affected without executing the Contract in writing, applying the Simplified Procurement Method in the following cases:
a) Estimated price of a single Subject of Purchase does not exceed GEL 5,000;
b) Goods or Services are purchased from the internet;
c) Purchase is related to the official entertainment expenses;
d) The procurement is affected by payment of the statutory charges established by normative act of Georgia;
e) Use of such method is result of justified decision of the Purchasing Entity.
4. In all cases other the ones prescribed in Section 3 of this Article, the Purchasing Entity shall execute the written Contract.
5. The procurement may be affected by Request for Price Quotation, if:
a) The companies manufacturing the Subject of Purchase or their official dealers are invited for participating in procurement procedures, and the procurement is made from such manufacturing companies and/or their dealers. The persons to be invited shall be determined by the Purchasing Entity;
b) The estimated value of the Subject of Purchase does not exceed GEL 100,000 (one hundred thousand).
c) The companies with world or regional acknowledgement in providing the Services subject to procurement are invited to participate in procurement procedures and the procurement is made immediately from such companies. The persons to be invited shall be determined by the Purchasing Entity.
6. When applying RPQ method, at least three appropriate (selected beforehand) Candidates shall be invited in writing for participation in the price quotation procedures. The invitations may be sent, and the offers of participants in RFQ process may be received electronically (including by e-mail) in Georgian, English and/or other foreign languages. During preparation of the RPQ process, composition of the requested mandatory information, including unit and total prices, delivery dates and locations, country of origin, name of vendor and other specifications, shall be specified on a case by case basis.
7. In all cases other than ones referred to in Sections 2-5 of this Article 6, the Purchasing Entity shall hold the Tender.
8. The Purchasing Entity shall be entitled to notify in writing its Majority Partner about consolidated (aggregated) procurement of the Subject of Purchase according to the procurement method specified in this Article 6, including notification of the required quantities, and execute the Contract with the Supplier selected by relevant procedure under the terms and conditions envisaged for the procurement.
Article 7. Tender Committee
1. Tender shall be conducted by Tender Committee composed of at least 3 (three) members assigned by the head of Purchasing Entity.
2. The Tender Committee shall be chaired by the head of the Purchasing Entity or his/her nominee.
3. A close relative of the head of the Bidder (individual or legal entity), a partner or member in Bidder’s organization registered as non-profitable (non-commercial) legal entity, or person, who has share in the charter capital of the Bidder registered as a legal entity shall not be allowed to take part in selection and evaluation of the bids.
4. Based on respective decision of the Tender Committee, the professionals from relevant fields may be invited to the Tender Committee as experts and consultants with advisory votes.
5. Pursuant to the order of the head of the Procurement Entity, the Tender Committee staff manned by employees of the Procurement Entity, and headed by the Chairperson of the Tender Committee shall be formed in order to support organizational and technical activities of the Tender Committee.
6. The Tender Committee shall take decisions by majority votes of the committee members. A member of the Committee, who disagrees with the Committee decision, shall be entitled to submit his/her own opinion in writing that should be attached to the decision of the Tender Committee. In case of equal distribution of the votes, the Chairperson’s vote shall be casting.
7. The Tender Committee sessions shall be recorded in a form of minutes to be signed by the committee members attending at the session.
8. After receiving finalized specifications and estimated price of the Subject of Purchase, the Tender Committee shall draft Invitation to Tender and bidding documents.
9. Prior to publicizing Invitation to Tender, it and Bidding Documents shall be approved by Tender Committee that shall be reflected in the minutes of Tender Committee session.
10. The persons, who wish to participate in the Tender, prior to submitting qualification data and bids, may familiarize themselves with bidding documents in the Purchasing Entity’ premises.
Article 8. Invitation to Tender
1. When holding the Tender, the Tender Committee, on behalf of the Purchasing Entity, shall place Invitation to Tender prepared in Georgian, English and/or Rusian languages in the periodic printed media widely distributed in Georgia and/or foreign states, as well as shall post it on the website of the Purchasing Entity. The Bids may also be submitted electronically (including e-mail) in Georgian, English and/or Russian languages to the electronic address of the responsible staff member of the Tender Committee, as specified in the Invitation to Tender.
2. The Invitation to Tender shall contain following information:
a) Name and address of the Procurement Entity, including its webpage address;
b) Nature, quantity, quality, and delivery place and form of the Subject of Purchase, as well as other data, which Purchasing Entity may consider appropriate for description of the Subject of Purchase;
c) Desired or required time for supply of the Subject of Purchase
d) The language of the bidding documents, and information about where, when and how these documents may be acquired;
e) List of required qualification documents, and place and deadline for submission of qualification documents and bids, as well as language to be used for preparation of such submittals;
f) Note specifying whether, with respect to the submitted bids, any clarifications, supplements or additional submissions may be made to the qualification documents and the bids without any material changes to its content, provided that such bids are made in compliance with technical requirements set forth in the bidding documents,
g) Tender Fee amount;
h) e-mail address of the responsible officer of the Tender Committee staff;
i) The venue of verbal trade session;
j) In case of two-stage Tender, instructions for preparation and submission of the preliminary bids (including submission deadline) and requirements that will be taken into account during their evaluation;
k) Price Decrement Limit applicable to the verbal trade session;
l) Note whether requirement for furnishing performance security is applicable, and Alternative Bids are allowed;
m) Requirement of the Purchasing Entity with respect to bid security, including security form;
n) Workplace contacts of the Tender Committee staff officers, who are authorized to provide any additional information.
3. Invitation to Tender shall be approved by the Tender Committee.
4. The Tender Committee shall publicize Invitation to Tender no later than 10 days prior to the deadline for receipt of qualification documents and bids.
5. The Tender Committee may amend information indicated in the Invitation to Tender. Such amendments shall be published in the same media that was used for announcing original Invitation to Tender.
6. Amendments to the Invitation to Tender shall be publisized later than 5 days prior to the deadline for submission of the qualification documents and bids.
Article 9. Rules for Payment and Returning of Tender Fee
1. The payers of the Tender Fee are individuals and legal entities of Georgia or foreign states, despite their ownership and legal forms, who wish to participate in the Tender.
2. Whoever wishes to participate in the Tender shall pay the Tender Fee in amount of GEL 500 (five hundred) prior to the deadline for receiving the bidding documents.
3. The Tender Fee shall be credited to the account specified in the Invitation to Tender announced by the Purchasing Entity.
4. The Tender Fee shall be nonrefundable except the following cases:
a) Purchasing Entity decides to cancel Tender procedures;
b) Purchasing Entity fails to timely deliver bidding documents to the Tender Fee payer.
5. In cases referred to above, the Tender Fee shall be refunded based on decision of the Tender Committee.
6. In case the Tender Committee takes decision on refunding of the Tender Fee:
a) such decision shall be voted by majority of the listed members of the Tender Committee;
b) Such decision shall be recorded in the minutes of the Tender Committee session, and the extract from minutes shall be made available to the relevant Bidder directly or by courier post;
c) Based on decision of the Tender Committee (on return of the Tender Fee), the Purchasing Entity shall ensure repayment of the Tender Fee to the payer no later than 30 days after such decision is taken.
7. The payer of the Tender Fee shall be entitled to:
a) receive the bidding documents promptly after amount of the Tender Fee it paid is credited to the account specified in Section 3 of this Article 9;
b) subject to receiving the bidding document, to submit its bid to the Tender Committee according to prescribed rules;
c) appeal decision or action of the Tender Committee related to the receipt of the bidding documents or payment or refund of the Tender Fee in accordance with the rules prescribed by law.
Article 10. Bidding Documents
1. The Tender Committee shall approve the bidding documents prior to publication of the Invitation to Tender.
2. Bidding documents shall be the package of documents including full information about Subject of Purchase, Tender process and main terms and conditions of the Contract, as well as, be prepared in a form approved in accordance with this Rules.
3. The bidding documents shall include the following documents and information:
a) Rules and criteria applicable to preparation, submission and evaluation of the bids, along with priority coefficients of such criteria;
b) The quantity of Goods or Services to be procured, mandatory or desirable deadlines and delivery place;
c) Description of the technical and qualitative data of the Subject of Purchase, including relevant technical requirements;
d) Method for calculation of the bid price;
e) Reference to the exchangeable currency, in which the bid price is to be specified, and if the Bidders are allowed to quote bid price in several currencies, notification that all sums will be converted into local currency, applying the exchange rates set by the National Bank of Georgia;
f) Note, whether submission of Alternative Bids is allowed;
g) Description of the means and procedures available to Bidders for requesting supplementary information on or clarifications of the bidding documents, as well as the names and contact addresses of the Tender Committee staff officers, who are authorized to communicate with Bidders and provide them with information and clarifications about procurement procedures. In case of the two-stage Tender, information whether the Purchasing Entity plans to arrange general Tender meeting and/or invite the Bidders to visit the procurement site, specifying venue and time of the meeting (visit);
h) Requirement on validity period of the bids. When specifying such validity period, duration of the Tender process, expected date for execution of the Contract and possible obstacles to such arrangements shall be taken into account.
i) Requirements of the Purchasing Entity with respect to bid security (guarantee), Contract performance security, and insurance coverage of the Subject of Purchase and individual stages of Contract performance, including amounts and forms of furnished securities, and insurance conditions;
j) Statement about the right of the Purchasing Entity to terminate the Tender and reject all bids at any stage;
k) Any other reasonable requirements, which may have the Purchasing Entity towards the bids.
5. In response to the written request of the Bidders, or under own initiative, the Tender Committee shall clarify and/or specify information related to procurement procedures or Subject of Purchase indicated in the bidding documents that shall be executed in a form of addendum to bidding documents and sent simultaneously to all bidders no later than 3 days prior to expiration of the deadline for submission of qualification documents or bids. In case the Bidder obtains the bidding documents after such deadline, then these documents will be supplemented by the foregoing addendum. However, the Bidder shall no more be entitled to apply to the Tender Committee with request on clarifications regarding procurement procedures and Subject of Purchase described in the bidding documents.
6. After the Bidder pays the Tender Fee, the Tender Committee shall handover the bidding documents to the Bidder upon request.
Article 11. Selection of Bids and Determining Their Technical Compliance
1. After the bids are opened and prices are announced, first of all, the bids shall be sorted out. Such sorting shall aim at determining compliance of the bids and supporting documents with the requirements.
2. In the course of sorting, the Tender Committee shall classify the Bids under the following categories:
a) Bids, which may be deemed acceptable;
b) Bids, which may not be deemed acceptable due to material errors or non-compliance with the bidding documents;
3. Bids shall not be deemed acceptable and accepted for review with respect to technical compliance in the following cases:
a) If requested by the Purchasing Entity, the Bidder fails or refuses to clarify, supplement or confirm the required qualification data;
b) Data and/or appropriate justifying documents submitted by the person participated in procurement procedures are proved to be false.
4. After sorting the Bids, the Tender Committee shall review them in detail for determining their technical compliance. The Tender Committee shall be entitled to engage experts and consultants in such review. The bids and/or experts’ conclusions shall be reviewed at the Tender Committee sessions. If needed, the Tender Committee may invite the Bidder or its representative for receiving clarifications required with respect to its bid.
5. Only Bids passed the sorting process and technically compliant with the technical conditions specified in the bidding documents shall be accepted to evaluation.
Article 12. Rules and Conditions for Verbal Trade
1. The verbal trade session shall be held at the venue specified by Purchasing Entity in Invitation to Tender, while the exact time of verbal trading shall be notified in writing to the Bidders accepted to evaluation no later than second day after completion of the sorting procedure. If only one Bidder is accepted to the evaluation, conduct of verbal trade is not required.
2. After completion of the technical compliance assessment procedure, the Tender Committee must invite to the verbal trade the Bidders, who are accepted to the evaluation.
3. During verbal trade, the Tender Committee will introduce to the Bidders prices and/or unit prices indicated in their bids. Each participant of the trade session shall be entitled to lower the price indicated in its bid three times, provided that each time such reduction shall not be less than the Price Decrement Limit applicable to the appropriate bid.
4. At the verbal trade session, the Bidder shall change their bid prices in preset order. During each round, the first price change proposal shall be made by the Bidder whose original bid price is the highest, and continued by the next highest price Bidder and so on.
5. The lowered bid prices fixed after verbal trade shall be recorded in the minutes of the appropriate Tender Committee session, which shall be signed by attending members of the Tender Committee and participating Bidders. Refusal of the Bidder to sign the minutes shall be deemed as withdrawal of the lowered price fixed by such Bidder during verbal trade session, and in such case the original price of its bid shall remain in effect.
6. Subject to request of the Bidder, the Tender Committee may decide to arrange the verbal trade using electronic communication means (including e-mail) in the timeframe specified for the verbal trade.
7. After fixing the final auction prices, the Bids will be evaluated in accordance with these Rules.
8. Under decision of the Purchasing Entity, the verbal trade method may also be used for procurement of the Subject of Purchase applying the RFQ method.
Article 13. Bid Evaluation Rules
1. After the final prices are determined in result of the verbal trade session, the Tender Committee shall evaluate the bids against criteria specified in the bidding documents, taking into account their priority.
2. In case specification of the bid price in multiple currencies is allowed according to the bidding documents, during review of the Bids, such prices shall be converted into the national currency applying exchange rates set by the National Bank of Georgia.
3. The evaluation criteria may be applicable both to Bidder and its bid.
4. Evaluation of the Bidders aims at comparison of their financial positions, technical capabilities, qualification of the personnel, reputation, experience and other data and features.
5. The following criteria may be used during reviewing the Bids:
a) Bid price;
b) Delivery term of the Subject of Purchase;
c) Quality parameters and functional characteristics of the Subject of Purchase;
d) Payment forms and conditions;
e) The costs and other criteria applicable to operation, maintenance and repair of the Subject of Purchase after its delivery.
6. Each criterion used in the evaluation shall have its numerical weight expressed in a form of coefficient participating in the summarized score (priority value). The arithmetic sum of all criterions shall equal to one.
7. Each member of the Tender Committee shall individually evaluate in writing each bid using the 10-score system. The scores awarded to the Bidder per each criterion shall be multiplied by appropriate priority coefficient, and such products shall be summed to arrive at the total score of the bid. The highest total score given to one of the Bidders by the Tender Committee member shall be deemed as his/her vote given in favour of such Bidder. The members of the Tender Committee shall certify their scores by signature.
8. In case the bids of two or more Bidders are scored equally, the Tender Committee member shall compare such scores against criteria and give the preference to the Bidder, whose has more high priority scores. If the scores are absolutely identical, the Tender Committee member shall independently decide the Bidder whom the preference shall be given to and justify such decision in writing.
9. The Bidder, who is given preference by voting majority of the Tender Committee members shall be deemed as the successful Bidder (or “Winner”). In case the votes of the Tender Committee members are distributed equally, the vote of Chairperson shall be of casting importance.
10. The Tender Committee’s decision on the successful Bidder shall be documented in a form of protocol accompanied with the written evaluations of Commission members. This protocol shall name the persons engaged in review of the bids and the Bidders participated in the Tender, as well as shall include brief descriptions of the submitted bids by evaluation criteria.
11. No later than 5 work days after taking decision, the Tender Committee shall notify the results to all Bidders and invite the winner for executing the Contract.
12. In case the procurement procedures are cancelled, the Purchasing Entity shall not be obliged to provide the persons participating in the procurement with specific evidences or detail information constituting the grounds of such decision, as well as to reimburse the costs related to their participation in the procurement, except the paid service fee.
13. The Bidder shall be entitled to appeal in the court any issues related to conduct of the Tender.
Article 14. Two-Stage Tender
1. The two-stage Tender may be held, subject to decision of the Tender Committee if it finds reasonable to improve and finalize the bidding documents with consideration of the technical proposals of the Bidders submitted at the first stage of the Tender,.
2. At the first stage of two-stage Tender, the Bidders shall submit their technical bids and/or Alternative Bids without specifying the price in sealed envelopes.
3. During the fist stage of two-stage Tender, the Tender Committee shall be entitled to carry out negotiations with Bidders for specifying any conditions given in their preliminary proposals and finalizing requirements for the bidding documents.
4. Following review of preliminary proposals, the Tender Committee shall prepare final revision of the initial bidding documents and make them available to the Bidder after the later pays the Tender Fee to the special account as specified in the Invitation to Tender approved by the Tender Committee that is payable prior to receiving initial bidding documents.
5. After the Tender Fee is paid, the Tender Committee must promptly transfer initial bidding documents to the appropriate Bidder.
6. The Tender Committee shall sort, review and evaluate submitted Bids according to Articles 11, 12 and 13 of these Rules.
Article 15. Rules for Describing Subject of Purchase
1. Description of the Subject of Purchase given in the Invitation to Tender, bidding documents and other documents related to procurement shall be clear and understandable.
2. The textual materials, specifications, plans, drawings, sketches, narratives, etc. used for description of the Subject of Purchase shall fairly reflect technical and qualitative features of the Subject of Purchase following national and international standard indicators, requirements, terminology and notations (if any).
Article 16. Bid Security
1. As a collateral of the Bid, The Purchasing Entity shall be entitled to require furnishing of the security instrument in amount of 3 percent of the bid Price, or in individual cases – in other amounts. In such case, the Bidders participated in the Tender shall furnish to the Purchasing Entity their bid securities in a form of bank guarantee, certified check, letter of credit, etc.
2. In case the security instrument applies, in the bidding documents or Request for Price Quotation, the Purchasing Entity shall indicate specific requirements with respect to amount, form and issuer of the guarantee.
3. The guarantee requirements shall be equally applicable to all Bidders participating in the procurement.
4. The guarantee shall be valid at least for 30 days beyond the validity period of the bid.
5. The guarantee document shall be furnished together with the bid.
6. The Purchasing Entity shall ensure that the guarantee document is returned to the persons participating in the procurement procedures no later than 10 days after effective date of the Contract.
7. In case the Purchasing Entity takes decision on cancellation of the procurement procedures, the guarantee documents shall be returned to relevant Bidders upon request.
8. In case the bid validity period expired prior to completion of bid evaluation, and the Bidder refused to extend such validity period, the guarantee documents shall be returned to such Bidder upon request.
9. The Purchasing Entity shall take decision on drawing the guarantee:
a) if, after opening of the Bid, the Bidder refuses to participate in the procurement procedure (prior to expiration of its bid validity period);
b) if successful Bidder refuses to sign the Contract with the Purchasing Entity;
c) the Bidder is disqualified due to unfair conduct committed during procurement procedures;
d) if successful Bidder was disqualified due to bad faith action committed in course of procurement procedures.
Article 17. Invalid and Unsuccessful Tenders
1. The Tender shall be deemed invalid, if no person submitted any qualification data and/or bid during the specified timeframe.
2. The Tender shall be deemed unsuccessful, if no person submitted qualification data and/or bid compliant with the requirements of the Purchasing Entity.
3. In case of invalid or unsuccessful Tender, the Purchasing Entity shall be entitled to apply other procurement method specified in these Rules.
Article 18. Terms and Conditions of Contract
1. The following issues and conditions are desired for consideration in the Contract to be executed with Supplier:
a) Accurate names and requisites of the parties to the Contract;
b) Description technical parameters, principal features and identification data, quantity and unit and/or total prices of the subject of Contract;
c) Total Contract price (accounting for discounts, taxes, transportation, insurance and other factors);
d) Quality of the Subject of Purchase, as well as compliance with the applicable standards, if required;
e) Delivery dates and place of the Subject of Purchase;
f) Delivery and acceptance conditions for the Subject of Purchase;
g) Payment method and schedule (deadlines);
h) Performance guarantee (in case such instrument is used);
i) Rights and obligations of parties;
j) Liabilities of the parties for breach of the Contract;
k) Force majeure events;
l) Possibility of revising Contract terms, including the prices;
m) Term of the Contract;
n) Rule for resolution of disputes;
o) Conditions for inspection of the Contract performance.
Article 19. Control over Contract Performance
1. The Purchasing Entity shall designate a person or group of persons for exercising control over performance of the Contract.
2. The person (group of persons) carrying out control over performance of the Contract shall have the following functions:
a) Draft the schedule for controlling Contract performance based on results of negotiations carried out with Supplier;
b) Carry out due control and supervision activities to determine compliance of the Subject of Purchase with respect to quantities, quality and delivery dates, as well as arrange for execution of delivery and acceptance certificates;
c) Regulate the financial settlement process with the Supplier in accordance with terms and conditions of the Contract;
d) Prepare periodic documents reflecting progress of the Works carried out under the Contract.
3. The Purchasing Entity shall accept the Subject of Purchase only based on execution of appropriate document (if not otherwise provided in the Contract), save the cases referred to in Section 3 of Article 6 of these Rules.
4. The Purchasing Entity shall be entitled to inspect quality of the Subject of Purchase at any time during performance of the Contract, including quality control of raw materials, supplies and the Works (Services) provided by subcontractors.
5. The Supplier shall, on its own account, provide the Purchasing Entity with necessary personnel, technical means and other working conditions. In the event the Purchasing Entity will engage its own or external personal in inspection works, it will solely pay remuneration to such persons.
6. The Supplier shall be responsible for remedying any and all revealed defects or imperfections, as well as for undertaking the costs for additional inspection in accordance with the Georgian legislation.
7. Prior to executing the documents proving acceptance of the Subject of Purchase, the Purchasing Entity shall carry out final inspection of delivered Goods and/or rendered Services aiming at determining compliance with requirements set forth by the Purchasing Entity, terms and conditions of the Contract, accepted specimens and applicable standards (if not otherwise defined in the Contract). The venue of final inspection shall be defined based on terms and conditions of the Contract. Subject to mutual Contract, the parties may engage independent experts in the final inspection process. The Supplier shall, on its own account, remedy any and all defects and/or imperfections revealed during final inspection (including costs related to returning of the rejected Goods).
8. The results of final inspection shall be notified to the Supplier in writing, including the name of rejected Subject of Purchase and appropriate reasons.
9. Any misunderstandings, which may arise between the Supplier and the person (or group of persons) appointed by the Purchasing Entity shall be resolved by reviewing the subject of misunderstanding between the Supplier and the Purchasing Entity. If such method will fail, then the issue shall be resolved in the court.
10. The rules for compensation of losses due to damages to the Goods during transportation shall be defined according to the applicable legislation and terms and conditions of the Contract.
11. The Contract may be revised in accordance with the rules prescribed by Georgian legislation (if not otherwise specified in the Contract).
12. The payments between the Purchasing Entity and the Supplier shall be affected according to terms and conditions of the Contract.
13. The Contract may envisage advance payment. In case advance payment method is used, the bidding documents shall specify percentage of advance payment in relation to the total price of the Subject of Purchase.
14. In case of advance payment (other then using the letter of credit), the Supplier shall furnish to the Purchasing Entity the security on the advance payment amount in a form and with validity period as specified in the Contract. The Purchasing Entity neither may nor require furnishing of the advance payment security considering the sound business reputation of the Supplier and/or high quality and wide recognition of its Goods, Services and Works.
15. The Purchasing Entity shall be entitled to suspend and/or terminate the Contract, in case it will become aware that qualification documents submitted by Supplier have been falsified, and/or if the Supplier fails to perform or is in a breach of the terms and conditions of the Contract, and/or in other cases envisaged by the Georgian legislation (if not otherwise provided in the Contract).
Article 20. Reporting
1. The Purchasing Entity shall submit quarterly report on the Contracts executed with respect to the procurement to its partner, JSC Georgian State Electrosystem no later then 30th day of the first month of the next quarter.
2. Such quarterly report shall specify applied procurement methods (RPF, Simplified Procurement), Contract number and date, description and estimated value (budget) of the Subject of Purchase, Contract price, residual amount remaining in the budget and conventional saving.
3. Within 10 days after approval by the Purchasing Entity, the Procurement Plan shall be submitted to its partner, JSC Georgian State Electrosystem. In addition, no later than 10 days after the end of each month, the Purchasing Entity shall submit to its partner information on amendments to the Procurement Plan affected during previous month, if any.
Article 21. Contract Performance Security
1. For the purpose of ensuring proper performance of the Contract, and subject to request of the Purchasing Entity, the requirements on provision of the performance security or insurance may apply. Percentage amount of security shall not be less than 2 percent.
2. The Purchasing Entity may not require performance security or insurance considering business reputation of and/or quality and well-known identify of the Goods, Services and Works provided by potential Supplier.
3. Performance guarantee for the Contract may be deemed provided if furnished to the Purchasing Entity in a form of bank guarantee letter, certified check or letter of credit or other relevant security documents on the preset amount.
4. Validity term of the security shall be specified in the Contract. The Purchasing Entity shall promptly return security, in case the Contract is terminated due to the reasons without recourse to the Supplier,
Article 22. Resolution of Disputes
1. Any individual or legal entity interested in participating in the procurement or a Candidate/Bidder may appeal in the court any decisions taken by the Purchasing Entity with respect to procurement.
2. The disputes brought to the court shall be resolved in accordance with the Georgian legislation.
3. In case the Supplier is not the Georgian resident, the subject of dispute arisen between the parties during performance of the Contract may be resolved under the arbitrage proceeding.