EUROPEAN UNION

1
EUROPEAN UNION ATHENA
2007
Council decision 2007/384/CFSP of 14 May 2007
( OJ 13/06/2007 L152/14 )
2
PROCUREMENT

• Reference ATHENA Financial Rules Part II
• Applicable except for Berlin operations (NATO
  rules!)
• To procure what?
• anything eligible as common costs or  Nation
  Borne Costs 
• No authority to contract outside ATHENAs scope
• Oursourcing of military capabilities (for ex
  guards)
• Request by Operation Commander to Special
  Committee
• No outsourcing of military capabilities before
  authorization granted by Special Committee

3
PROCUREMENT

• PROCEDURES
• Main procedure
• negotiated procedure
• with at least 3 potential suppliers being
  consulted
• Applicable procedure determined by cost of
  purchase
• estimated cost excluding VAT, no splitting
• thresholds
• Derogations procedure, admissible justifications

4
PROCUREMENT

• Procedures iaw thresholds
• X lt 5000 euros payment on invoices possible
• 5000ltXlt30 000 euros ( lower threshold )
• negotiated procedure with 3,
• but J8 may opt for negotiated procedure with 1,
  without formal derogation
• 30 000 eurosltXlt higher threshold 
• negotiated procedure with 3,
• but negotiated procedure with 1 possible with
  formal derogation
• Above the  higher threshold 
• 137 keuros for goods, 211 keuros for services, 5.
  278 Meuros for works
• tenders, except where formal derogation

5
PROCUREMENT

• DEROGATIONS
• For any simpler procedure, including single
  source
• Above 30 000 euros
• Which authority?
• 30 000ltXlt137 000 euros J8
• 137 000ltXlt1 Meuros ATHENAs administrator
• gt1 Meuros ATHENAs Special Committee
• through the administrator
• Requests from J8 to administrator by e-mail

6
PROCUREMENT

• Which justifications for derogations?
• (most frequently used)
• Extreme urgency
• When for technical or artistic reasons, the
  contract may be awarded only to one particular
  operator (ex public monopolies)
• Acquisition or rental of land or existing
  buildings
• Additional supplies, where a change in supplier
  would create technical difficulties
  (incompatibility, problems in maintenance)
• Additional works or services, not exceeding 50
  of initial works
• Use of a national contract, awarded in conformity
  with EC Directives

7
PROCUREMENT

• For every procedure, main steps
• 1) Make a commitment in the budget
• (reserve appropriations)
• 2) Draw up technical specifications (with
  responsible branch)
• Draw up administrative requirements
  (candidatescapacities)
• 3) Advertise
• 4) Select successful candidate
• 5) Conclude a contract
• 6) Check delivery
• 7) Enter in the inventory
• 8) Pay against receipt
• 9) Write off

8
PROCUREMENT

• Make a commitment in the budget
• temptation for every section (J1, J4, J6) to buy
  and then bring the bill, especially early in
  operation
• should be avoided
• budget is a limit and must be complied with
• budget must be managed redeployment of
  appropriations during operation are usually
  necessary
• therefore, sequence  budget commitment then
  contract or purchase order  should be complied
  with

9
PROCUREMENT

• 2) a) Technical specifications
• essential, even if takes time
• requirements must be proportionate to needs and
  duration of operation (principle of economy)
• requirements must be sufficiently detailed
• 2) b) Administrative requirements
• candidates capacity to do the job essential,
  especially in theatre
• security requirements
• performance guarantee
• compulsory if pre-financing exceeds 150 000 euros
  or contact above 137 000 euros (5 to 10 of
  contract)

10
PROCUREMENT

• 3) Advertise
• If above the  higher threshold  and no
  derogation
• in the Official Journal of the European Union
• If below the  higher threshold  or with a
  derogation
• advertise by any means
• local chamber of commerce, confederation of
  industry
• local press
• can resort to existing lists (provided by
  Embassy, Commission delegation, etc.)

11
PROCUREMENT

• 4) Select the successfull candidate
• If above the  higher threshold  and no
  derogation
• formal tender (double sealed envelopes)
• If below the  higher threshold  or with a
  derogation
• negotiated procedure
• negotiate price services, works, supplies
• In any case
• selection committee
• appointed by authorising officer (Operation
  Commander, by delegation local J8)
• at least 3 persons from 2 different sections of
  the HQ concerned (J8technical branch concerned)

12
PROCUREMENT

• 4) Select the successfull candidate (continued)
• Criteria
• either the lowest price
• should be the rule
• or the best-value-for-money
• taking into account notably the capacity to do
  the job within the timeframe
• must be specified in the specifications
• report on procedure, including reasons for
  selection

13
PROCUREMENT

• 5) Conclude a contract
• in writing (to avoid doubts and conflicts)
• 2 possible forms
• either a single document signed by the parties
• or a signed commitment from the candidate (offer,
  acceptance of the conditions set out by the
  contracting authority), signed by the
  contracting authority
• Notify successful candidate
• Inform others
• Enter into accounts (legal commitment)

14
PROCUREMENT

• 6) Check delivery
• If works or services
• performance must be monitored closely
  continuously
• conformity to contract must be assessed
• If supplies
• delivery and conformity to contract must be
  assessed
• In any case, delivery and acceptance of the
  works, services or supplies must be certified (by
  the technical branch concerned) before final
  payment may be made

15
PROCUREMENT

• 7) Enter in the inventory
• Must be done immediately on acceptance
• Responsible branches must be made aware
• All items with a period of use normally greater
  than one year
• Not based on the value, but on normal durability
• (eg portable phones should be on the inventory)
• Should contain
• description of items
• location/person responsible
• date of acceptance
• purchase cost
• Foreseen in the new accounting software

16
PROCUREMENT

• 8) Pay
• Payments may be made
• on account (upon ordering, before work starts)
• as interim payments (usually according to
  progress)
• of the balance due after acceptance.
• Payments on account should be kept minimal
• Interim payments should be made based on
  acceptance of partial delivery or progress made
• Final balance may be paid only after final
  acceptance
• Two signatures required for any payment
• (authorizing officer accounting officer)

17
PROCUREMENT

• 9) Write off
• Distinct from final destination of equipment, to
  be decided by Special Committee, at end of
  operation
• In every HQ, a write-off committee
• the head of the J8
• the head of the branch responsible for the
  equipment
• the head of the branch responsible for its
  maintenance
• lt 30 000 euros HQs commander may decide a write
  off
• gt 30 000 eurosHQs commander may decide
• with written assent of Write Off Committee
• In case of loss or destruction report filed by
  J8 and write off

18
EUROPEAN UNION ATHENA
QUESTIONS ?