There is a new version of the law,
REPUBLIC OF LITHUANIA
LAW
ON
PUBLIC PROCUREMENT
Chapter I
GENERAL PROVISIONS
Article 1. The Objective of this Law
1. This Law shall regulate the procedure for the
procuring of goods, works and services with the funds of the
State Budget, municipal budgets, the budget of the State
Social Insurance Fund and other resources of the state
funds, funds received in the name of government institutions
as charity or any other support, when the donor thereof does
not specify the purpose for which it should be applied, as
well as foreign loans received in the name of the State or
guaranteed by the State, if the agreements concerning their
utilisation does not provide for any other conditions, out
of the funds of enterprises, institutions and organisations
financed out of the State or municipal budgets and state
funds, received from their business activities or from the
appropriation or conveyance of their assets.
2. The procedure for public procurement established
hereby shall apply to public procurement the value of which
exceeds 25 000 litas. Public procurement the value of which
is less than 25 000 litas shall be carried out according to
the common commercial practice, by concluding a purchase-
sale contract with the supplier (contractor) whose price and
conditions are most acceptable.
3. The requirements of this Law shall not apply to:
1) procurement which is carried out for the purposes of
security and defence, if they are associated with state
secrets;
4. The Government may, for the reasons that are important
to the State from economic or social points of view, pass
the decision that while carrying out procurements of certain
goods, works, or services preference should be given to
goods, works and services that are being produced, executed
or provided by enterprises which are registered in the
Republic of Lithuania. Such decisions must be passed in
compliance with the obligations established by international
agreements of the Republic of Lithuania.
Article 2. Definitions
As used in this Law:
1. Public Procurement (hereinafter referred to as
procurement ) means procurement of goods, works or services
when they are paid for on demand or by installments with the
funds specified in paragraph 1 of Article 1, as well as
lease of goods carried out with such funds.
2. The Procuring Organisation means public authorities,
an enterprise, institution or organisation carrying out
procurement with the funds specified in paragraph 1 of
Article 1.
3. Goods means real property, raw materials, manufactured
articles, equipment and other articles of any form, as well
as services relating to the supply of goods, if the value of
these services does not exceed the value of the goods
themselves.
4. Works means any works associated with the
construction, reconstruction, removal, demolition, repairs
or renovation of buildings, structures and facilities,
including construction services relative thereto, if their
value does not exceed the value of the construction itself.
6. Supplier (contractor) means potential or actual party
to the procurement contract concluded with procuring
organisation.
7. Procurement documents means the documents of the
procuring organisation presented to the suppliers
(contractors): invitation to participate in prequalification
procedures, tender documents , invitation to tender, request
for quotations for goods, works or services, explanations,
amendments of and supplements to these documents.
8. Procurement Contract means purchase, sale contract,
contract agreement or lease, awarded by the procuring
organisation to the supplier (contractor) by procurement
procedures prescribed by this Law.
Article 3. International Obligations of the State,
Relating to Procurement
If international agreements of the Republic of Lithuania
provide otherwise than this Law, the provisions of
international agreements shall apply.
Article 4. Subordinate Legislation
Subordinate legislation relating to the implementation of
this Law and compliance with its provisions shall be issued
by the Government of the Republic of Lithuania or Public
Procurement Agency under the Government of the Republic of
Lithuania (hereinafter referred to as Public Procurement
Agency).
Article 5. Qualification of Suppliers (Contractors)
1. The procuring organisation must ascertain whether the
supplier (contractor) is competent, reliable and capable to
fulfill procurement conditions. For this purpose, at certain
procurement process stages it shall have the right to demand
that the supplier (contractor) submit or confirm the
documents or other information presented earlier, evidencing
its legal status, financial position, technical and
management competence, the experience in performing similar
procurement contract, its supply with labour resources and
other data evidencing its qualification.
2. The procuring organisation may verify in advance the
qualification of suppliers (contractors). In this case it
shall propose that suppliers (contractors) submit the data
certifying the qualification prior to sending their tenders
or offers.
3. Qualification requirements of the procuring
organisation, the criteria and procedure for their
evaluation shall be laid down in the prequalification
documents of suppliers (contractors) or in the documents of
procurement tenders or the documents of the procurement
carried out in any other manner.
4. The same requirements must be applied to all suppliers
(contractors), they may not infringe the rights of suppliers
(contractors) to protect their intellectual property or a
commercial secret.
5. The procuring organisation may not permit a supplier
(contractor) to participate in procurement procedures, if it
finds out that the data submitted by the supplier
(contractor) pertaining to its qualification are incorrect.
It may also disqualify a supplier (contractor) if the data
concerning its qualification as presented by it are in
general inaccurate or incomplete. However, if at the request
of the procuring organisation, the supplier (contractor)
eliminates the shortcomings without delay, it shall be
permitted to further participate in the procurement
procedures.
6. Information relating to the suppliers (contractors)
position shall be evaluated in accordance with the criteria
and procedures laid down in the prequalification documents
of suppliers (contractors), procurement tenders or
procurement carried out by any other procedure. The
procuring organisation shall pass a decision concerning the
qualifications of each supplier (contractor) and shall
inform in writing each of them about the results of this
verification. The right to further participate in the
procurement procedures shall be given only to those
suppliers (contractors) whose qualifications satisfy the
requirements applicable by the procuring organisation.
Article 6. The Participation of Contractors (Suppliers)
1. All citizens of the Republic of Lithuania and foreign
suppliers (contractors) may participate in procurement
procedures, with the exception of cases when the procuring
organisation may limit the participation of foreign
countries ( or some of them) pursuant to this or other laws
of the Republic of Lithuania.
2. The procuring organisation shall have the right to
carry out procurements only from enterprises registered in
the Republic of Lithuania - the manufacturers of goods,
performers of works, and service providers, if the value of
goods and services does not exceed 150 000 litas and the
value of works - 500 000 litas, as well as in cases
specified in paragraph 4 of Article 1.
3. The procuring organisation, after having announced in
its first invitation that suppliers (contractors) from all
countries may participate in the procurement procedures, may
not change this clause later. If pursuant to paragraph 1
hereof the participation of certain suppliers (contractors)
is limited, this must be indicated in the invitation to
participate in the procurement procedures.
Article 7. Communication of Notices
1. Notices of the procuring organisation and the
suppliers (contractors) while participating in the
procedures regulated by this Law must be communicated in
such a manner so that their contents be recorded.
2. The procuring organisation must ensure that in
procurement procedures documents, decisions or other notices
be communicated without discrimination to the suppliers
(contractors).
Article 8. The Legalisation of Documents Submitted by
Suppliers (Contractors)
The procuring organisation shall have the right to
request that foreign suppliers (contractors) submit
legalized documents certifying the information given
relating to their qualifications. The documents shall be
legalized in accordance with the procedure established by
the laws and Government decrees.
Article 9. Report on Procurement Procedures
1. The procuring organisation shall, not later than
within 10 days from the completion of procurement
procedures, draw up a report on procurement procedures. The
report must contain the following information:
3) information relating to the qualifications of
suppliers (contractors) which participated in procurement
procedures;
6) the reasons of rejection of tenders or offers if
pursuant to Article 10 of this Law all tenders or offers
have been rejected;
2. The information referred to in subparagraphs 1 and 2
of paragraph 1 hereof after the acceptance of a tender,
offer or a price or after the completion of procurement
procedures according to the results of which procurement
contracts have not been awarded, shall be provided to anyone
who requests such information.
3. The information referred to in subparagraphs 3-7 of
paragraph 1 hereof , after the tender, offer or price has
been accepted, or after the completion of procurement
procedures on the basis of the results of which procurement
contracts have been not awarded, shall be furnished to the
suppliers (contractors) who participated in the procurement
procedures and who request such information.
4. The procuring organisation shall have no right to
release information relating to procurement procedures where
the release of information would impede law enforcement or
otherwise be contrary to the interests of the State, or
would prejudice the legitimate commercial interests of the
contracting parties or might prejudice fair competition.
5. Procurement documents, their amendments, explanations
and supporting documents, tenders and offers as well as
other documents relating to the procurement procedures shall
be kept for 5 years.
Article 10. Rejection of All Tenders and Offers
1. If it is provided for in the procurement documents,
the procuring organisation may, at any moment prior to the
acceptance, reject all tenders and offers. In such case the
procuring organisation shall inform any tenderer or supplier
(contractor) who has submitted offers and who so request of
the reasons of rejection.
2. In such case the procuring organisation, having
satisfied the requirements referred to in paragraph 1 hereof
shall not be liable to the suppliers (contractors) who have
submitted tenders, offers or prices.
3. Notices stating that all tenders and offers have been
rejected shall be sent to all suppliers (contractors) who
have submitted tenders or offers not later than within 7
days from the completion of tenders.
Article 11. Coming into Effect of the Procurement
Contract
2. Where tendering procedures are applied, the moment of
the conclusion of the procurement contract shall be
established by Article 30 of this Law.
3. Where other procurement procedures are applied,
procurement contract shall be deemed concluded after it is
signed or signed and confirmed. When the procurement
contract must be signed or signed and confirmed, the
procuring organisation must indicate this in its notice
inviting to submit offers or in its request for quotations.
4. If, pursuant to laws, the contract must be certified
by a notary, it shall be deemed concluded from the moment of
its notarization. The provision shall also apply to those
contracts which are concluded by applying tendering
procedures.
Article 12. Prohibited Actions of Suppliers (Contractors)
The procuring organisation, after the approval by the
Public Procurement Agency, shall reject a tender , offer or
offered price, if it has been established that the supplier
(contractor) has directly or indirectly offered or agreed to
repay an employee of the procuring organisation or tried in
any other way to exert influence so that more favourable
procurement procedures be applied in his respect. Such
rejection of tender, offer or offered price and the reasons
of rejection shall be recorded in the report on procurement
procedures, and the supplier (contractor) shall be
immediately informed of this.
Article 13. Prohibition to Split up Procurements
The procuring organisation shall be prohibited to split
up the amount of the procurement with the intention of
avoiding the application of the procurement procedure
established by this Law.
Article 14. Description of Goods, Works, or Services
1. Technical or qualitative characteristics of goods,
works or services indicated in the procuring documents, the
requirements applicable to their packaging, marking,
labeling, testing as well as terminology and symbols must
not prevent any domestic or foreign suppliers (contractors)
from the participation in the procurement procedures.
The descriptions of goods, works or services may not
specify the trademarks, patents, models or origin of goods,
performers of works or providers of services.
2. In the descriptions of goods, works or services,
including procurement documents, specifications, schemes,
drawings and sketches, international trade standards,
marking and terminology shall be applied.
Article 15. The Language of Documents
The procuring organisation shall draw up procurement
documents in the state language. When foreign suppliers
(contractors) are invited to participate in procurement
procedures, these documents shall be drawn up in one of the
languages used in international trade.
Chapter II
MANAGEMENT OF PROCUREMENT ACTIVITIES
Article 16. Management of Procurement
1. Public Procurement Agency shall coordinate the
activities of procurement, supervise whether procurement
activities are carried out in conformity with this Law and
subordinate legislation.
2. The Agency shall fulfill the following main functions:
1) pursuant to this and other laws and subordinated
legislation, shall prepare standard procurement documents,
directions, and other documents regulating procurement
activities;
2) shall supervise how the laws and subordinate
legislation are being complied with while carrying out
procurement activities;
3) shall, in accordance with the procedure established by
the Government, gather information relating to procurement
activities and furnish it to government (municipal)
institutions and the public;
4) shall analyse and evaluate the operation of
procurement system and prepare recommendations concerning
its improvement;
7) provide consultations and instructions to procuring
organisations and suppliers (contractors) on issues of
procurement;
8) fulfill the functions provided for in Articles 4, 12,
17, 37 and 38.
Chapter III
METHODS OF PROCUREMENT AND THEIR APPLICATION
Article 17. Methods of Procurement
Public procurement shall be carried out by applying the
following methods;
1. Open tenders shall be applied for the procurement of
goods and services the value of which exceeds 150 000 litas
and for the works the value of which exceeds 500 000 litas.
The procurement of such value may be carried out by applying
other methods referred to in paragraphs 2-6 of Article 17
may be carried out only with the approval of the Government.
2. The method of procurement of goods and services the
value of which does not exceed 150 000 litas and the works
which does not exceed 500 000 litas shall be chosen by the
procuring organisation itself in conformity with the
requirements of this Law.
Chapter IV
OPEN TENDERS
Article 19. Invitation for Tenders or Prequalification
Selection
1. Invitation for tenders or prequalification selection
where the participation of foreign suppliers (contracts) is
not prohibited , shall be published in the language which is
usually used in international trade, in a popular
international newspaper or specialised publication or in a
specialised international journal, as well as in the state
language in the specialised publication or in a daily of the
Republic of Lithuania.
2. When the procuring organisation decides that due to
small value of goods, works and services only domestic
suppliers (contractors) will be interested in submitting
tenders, invitation for tenders or prequalification
selection shall be published in the state language in a
specialised Lithuanian publication or a daily paper.
Article 20. The Contents of the Invitation for Tenders
and Prequalification
Selection
The notice of the invitation to tender and
prequalification selection shall include the following
information:
2) the nature, quantity, short qualitative
characteristics of the goods to be supplied, the place and
time of their delivery;
2. The notice of the invitation to participate in
prequalification selection shall include the information
referred to subparagraph 1, 4, 6 of paragraph 1 of this
Article, as well as, if available, information indicated in
paragraph 8 and the following information:
4) address and final date for the submission of requests
for the participation in prequalification selection.
Article 21. Submission of Tender Documents
The procuring organisation shall provide documents to the
suppliers (contractors) in the manner provided for in the
invitation to tender. In cases where suppliers (contractors)
are selected by prequalification procedure, tender documents
shall be provided only to those suppliers (contractors)
which satisfy the requirements of the procuring
organisation. The procuring organisation may charge a
payment for tender documents in the amount of costs of their
drawing up and provision to the suppliers (contractors).
Article 22. The Contents of Tender Documents
The tender documents shall consist of the following
documents and information:
2) information concerning the criteria and procedures for
the evaluation of the qualification of the suppliers
(contractors);
3) requirements for the documents or other information
that must be submitted by the suppliers (contractors) in
order to proof their qualification;
4) names of goods, works or services to be procured and
their technical and qualitative characteristics, as well as
relevant specifications, schemes, drawings, and projects,
the quantity of goods, the nature of the services to be
supplied, the desirable or requested time limit for the
supply of goods or provision of services;
5) criteria (with the exception of prices) on the basis
of which the procuring organisation shall select the most
suitable tender; their order of importance;
6) terms and conditions of the contract that the
procuring organisation is offering as well as the model form
of the contract, if available;
7) indication whether variants are permitted as to the
characteristics of goods, works or services, the terms and
conditions of the procurement contract or whether other
requirements may be applied, and indication of how variants
shall be appraised and compared;
8) if suppliers (contractors) can tender for a part of
goods, works or services concerned - the description of this
part or parts relative to which a tender may be submitted;
9) indication of how the price indicated in a tender must
be calculated and expressed. It shall be indicated whether,
in addition to the value of the goods and services,
transportation, insurance costs, customs duties, excise
duties, taxes and other elements of price are included in
the price;
11) requirements of the procuring organisation applicable
to the tender and the guarantor of the fulfilment of
procurement contract and to the form of guarantees presented
therefor;
12) final date and place for the submission of tenders
and the manner in which the tender must be submitted;
13) manner in which the suppliers (contractors) may
request explanations of tender documents, obtain information
of whether the procuring organisation intends to hold
meeting with suppliers (contractors);
17) currency in which tenders will be valued and
compared, and the rate at which the value of tender will be
converted into that currency;
18) names and addresses of officers and employees (one or
several) of the procuring organisation, who are authorised
to maintain direct contacts with suppliers (contractors) and
to receive from them (not the broker) notices pertaining to
procurement procedures;
19) if when selecting the most suitable tender, price
preferences shall be applied in respect of domestic goods,
contractors or service providers - the amount of these
preferences;
1. The supplier (contractor) may request the procuring
organisation to give explanations of tender documents. The
procuring organisation shall respond to every request of the
supplier (contractor) to explain tender documents which is
received no later than 15 days before the expiry of the time
period for the submission of tenders. The procuring
organisation must respond to the received request within the
time period which would enable the supplier (contractor) to
submit his tender by the fixed date, but no later than
within 5 days. The procuring organisation, responding to the
supplier (contractor), shall at the same time send
explanations to all suppliers (contractors) whom it had
furnished with tender documents, without indicating,
however, from whom it received a request for an explanation.
2. Prior to the expiry of the time period set for the
submission of tenders, the procuring organisation may, on
its own initiative or in response to any supplier's
(contractor's) request for an explanation, revise or
supplement the tender documents. All suppliers (contractors)
to whom the procuring organisation has sent tender documents
shall be forthwith notified of the supplement or revision.
3. If the procuring organisation holds a meeting with the
suppliers (contractors) it must draw up a record where all
questions regarding the explanation of tender documents that
are raised during the meeting shall be registered (without
specifying from whom they came) and answers given to them
shall be registered. The records shall be immediately
presented to all suppliers (contractors) taking part in the
procurement procedures.
Article 24. The Submission of Tender
1. The procuring organisation shall fix the date and the
hour which shall be considered the deadline for the
submission of tender. The time period for the submission of
tender may not be shorter than 30 days from the presentation
of tender documents.
2. If, pursuant to Article 23 of this Law, the procuring
organisation approves or supplements the tender documents or
if it holds a meeting with the suppliers (contractors),
then, prior to the expiry of the time period for the
submission of tender, it shall postpone, in case of
necessity, the deadline for the time period within which the
suppliers (contractors), preparing their tenders, would be
able to take into account said revisions, supplements or
records of meetings.
3. Prior to the expiry of the time period for the
submission of tender, the procuring organisation may
postpone the deadline provided than one or more suppliers
(contractors) are unable to submit their tenders within the
fixed time period because of the circumstances that are
beyond their control.
4. Notification of any postponement of the deadline for
the submission of tender must be immediately sent to all
suppliers (contractors) to whom tender documents were
presented.
5. The tender shall be submitted in compliance with the
following requirements:
1) in written form, signed by the supplier (contractor)
or the person authorised by him, in a sealed and stamped
envelope;
2) without infringing the supplier's (contractor's) right
to submit the tender in compliance with the form specified
in sub-paragraph 1 of this paragraph, other requirements
ensuring the authenticity, reliability and confidentiality
of the tender may also be established as an alternative in
the tender documents relative to the submission of the
tender.
6. At the supplier's (contractor's) request, the
procuring organisation shall present a confirmation of the
receipt of the tender and shall indicate the date and hour
of the receipt.
7. In the event that the tender is received after the
deadline, an unopened envelope with the tender shall be
returned to the supplier (contractor) who sent it.
Article 25. Period of Validity of the Tenders, Alteration
and Withdrawal thereof
2. Prior to the expiry of the tender validity period, the
procuring organisation may request that the suppliers
(contractors) prolong their validity until the specified
date. The supplier (contractor) may reject the request
without forfeiting the right to the tender guarantee.
3. The suppliers (contractors) who agree to prolong the
time period of validity of their tenders and notify the
procuring organisation thereof in writing, shall extend the
time period of tender guarantee or present new guarantees of
tender validity. If the supplier (contractor) fails to
respond to the request of the procuring organisation to
prolong the time period of validity of tenders or fails to
prolong them or does not present new tender guarantees, he
shall be deemed to have rejected the request to prolong the
term of validity of his tender.
4. Prior to the expiry of the time period for the
submission of tenders, the supplier (contractor) may alter
or withdraw his tender without forfeiting his right to his
tender guarantee, unless the tender documents provide
otherwise. Such alteration or notice of the tender
withdrawal shall be recognised as valid if the procuring
organisation receives it prior to the expiry of the time
period for the submission of tenders.
Article 26. Tender Guarantees
1. The procuring organisation may demand that the
suppliers (contractors) who submit the tenders should also
present guarantees of the tender validity.
2. The tender documents may provide for the type of the
guarantor and the endorsing party, if any, as well as
stating what form and terms and conditions of tender
guarantees are acceptable to the procuring organisation. The
procuring organisation may not reject a tender guarantee on
the grounds of it being presented by a guarantor who is not
from the Republic of Lithuania, should such tender guarantee
and guarantor meet, in all other aspects, the requirements
set forth in the tender documents (except when such tender
guarantee is not in compliance with the laws of the Republic
of Lithuania or foreign state).
3. Before submitting his tender, the supplier
(contractor) may request that the procuring organisation
confirm the acceptability of the proposed tender guarantor
or the proposed endorsing party. In such event the procuring
organisation must reply immediately. Confirmation of
acceptability of the proposed guarantor or any proposed
endorsing party shall not deprive the procuring organisation
of the right to reject the tender guarantee on the grounds
of the guarantor or the endorsing party having become
insolvent or because of loss of confidence in them for some
other reasons.
4. The procuring organisation shall state in the tender
documents all the requirements applicable to the guarantor
as well as specifying the required method, amount and other
basic conditions of tender guarantee. Said requirements may
only be related with:
1) withdrawal of the tender or alteration thereof upon
the expiry of the time period set for the submission of
tenders or prior to the expiry if this is provided for in
the tender documents;
2) the supplier's (contractor's) failure to sign the
procurement contract if the purchasing organisation demands
to sign it;
5. The procuring organisation may not demand that the
guarantor pay the amount of the tender guarantee and shall
immediately return or ensure that the supplier (contractor)
be returned the tender guarantee document in the event of
occurrence of any of the following facts:
2) coming into effect of the procurement contract and the
contract performance guarantee, if requested in tender
documents;
6. In certain cases the Government may establish
mandatory guarantees for tenders and for the performance of
the procurement contract as well as determining the amount
of the guarantees.
Article 27. Opening of the Envelopes with Tenders
1. The envelopes containing tenders shall be opened at
the place specified in the tender documents, on the stated
day and at the fixed hour. The date must coincide with the
deadline for the submission of tenders. Upon changing the
deadline, the date of opening envelopes with tenders must be
changed accordingly. The envelopes shall be opened by an
authorised representative of the procuring organisation. All
the envelopes with tenders received prior to the expiry of
the time period for their submission must be opened at the
fixed time. The procuring organisation shall allow all
suppliers (contractors) who submitted their tenders or their
representatives to participate in the envelope opening
procedure.
2. The name of the supplier who submitted the tender, his
address and the price indicated in the tender shall be
announced to the suppliers (contractors) or their
representatives taking part in the procedure of opening
envelopes with tenders. The information shall also be
furnished to those suppliers (contractors) who have
submitted their tenders but are not present at the envelope
opening procedure, if they so desire, and shall be
immediately recorded in the report on procurement procedures
drawn up pursuant to Article 9 of this Law.
Article 28. Consideration, Evaluation and Comparison of
Tenders
1. The procuring organisation may request that the
suppliers (contractors) explain their tenders. It may not,
however, request, propose or permit to change the essence of
the tender: to change the price or make any other
alterations that would convert a tender which does not meet
formal requirements into that complying with formal
requirements. A tender which meets all the requirements
stated in the tender documents or a tender whose departure
from the characteristics, terms and conditions and other
requirements laid down in the tender documents is
insignificant, whereas the mistakes or inaccuracies may be
eliminated without changing the essence of the tender shall
be considered as a tender complying with all the formal
requirements.
2. The procuring organisation may correct in the tender
only calculation mistakes noticed during the consideration
of the tender. The procuring organisation shall notify the
supplier (contractor) who submitted the tender of such
corrections.
3. The procuring organisation shall not accept the tender
submitted by the supplier (contractor) if:
2) the supplier (contractor) who submitted the tender
refuses to recognise the correction of any arithmetic
mistake pursuant to paragraph 2 hereof;
3) the submitted tender is not in compliance with the
formal requirements specified in paragraph 1 hereof;
4. The procuring organisation shall, complying with the
requirements specified herein and with the procedures
indicated in the tender documents, evaluate and compare only
those tenders which meet the requirements laid down in the
tender documents and shall determine the successful tender.
Only those evaluation criteria which are specified in the
tender documents may be applied in the process of evaluation
and comparison.
5. The following tender shall be deemed the successful
tender:
1) the tender offering the lowest price, taking into
account the preferential changes determined in accordance
with the procedure laid down in paragraph 6 hereof, or
6. The Government shall determine the scope of
preferential changes applicable, for the benefit of domestic
suppliers (contractors), to specific types of goods, works
or services as well as the procedure of application of said
changes. The preferential changes applicable to goods and
services may not exceed 15%, and to works - 20%.
7. Information related to the consideration, explanation,
evaluation and comparison of tenders, with the exception of
that specified in Article 9 of this Law, may be accessible
only to those persons who officially take part in the
consideration, evaluation and comparison of tenders or in
reaching the decision.
8. In case less than 3 tenders are submitted by the
expiry of the time period for the submission of tenders, the
tendering shall be considered not to have been held and the
tendering procedures shall be terminated.
Article 29. Prohibition of Negotiations with the
Suppliers (Contractors)
The procuring organisation may not conduct any
negotiations with the supplier (contractor) concerning the
contents of the submitted tender.
Article 30. Acceptance of the Tender and Award of the
Procurement Contract
1. The tender recognised as the successful tender under
Article 28 of this Law shall be accepted. The supplier
(contractor) who sent the tender shall be immediately
dispatched a notice concerning the acceptance of the tender.
2. The procurement contract shall be deemed to have been
awarded from the moment the supplier (contractor) receives a
notice concerning the acceptance of his tender.
3. If the procuring organisation has indicated in the
tender documents that the procurement contract will have to
be signed or signed and confirmed, the procurement contract
shall be deemed to have been awarded from the moment it is
signed by the procuring organisation and the supplier
(contractor) or from the moment the contract is confirmed.
4. If the supplier (contractor) whose tender is accepted
fails, at the procuring organisation's request, to sign the
procurement contract or to offer guarantees of its
performance, the procuring organisation shall select the
successful tender from the remaining valid tenders in
accordance with the procedure established by law.
5. Upon the coming into force of the procurement
contract, other suppliers (contractors) who submitted their
tenders shall be dispatched notices about the award of the
procurement contract. The notice will state to whom the
contract is awarded and the price of the contract.
Chapter V
PROCUREMENT ACCORDING TO THE CLOSED
TENDERING PROCEDURE
Article 31. Closed Tendering
1. Closed tendering may be held if:
1) the goods, works or services may be sold, by reason of
their particular complexity or specific character, only by
certain suppliers (contractors);
2) because of the number of tenders, their consideration
would take too much time and involve excessive expenses
compared with the value of goods, works or services;
3) open tendering has not been held because of the reason
specified in paragraph 8 of Article 28 of this Law or after
the rejection of all tenders submitted to open tendering;
2. In the event that the procuring organisation holds
closed tendering pursuant to sub-paragraph 1 of paragraph 1
hereof, it shall request that tenders be submitted by all
suppliers (contractors) who have goods it needs or execute
the required works or provide the required services.
3. If the procuring organisation organises closed
tendering in pursuance of sub-paragraphs 2, 3, and 4 of
paragraph 1 hereof, it shall select not less than 3
suppliers (contractors) which are in the position to ensure
genuine competition.
4. In conducting closed tendering, procurement procedures
established in Chapter 4 of this Law shall be applied,
except for cases where different procedures are prescribed
herein.
Article 32. Two-Stage Tendering
1. When the circumstances specified in paragraph 2 hereof
occur, the procuring organisation shall have the right to
conduct procurement by applying two-stage tendering
procedures.
2. Two-stage tendering procedure shall be applied if:
1) the object of procurement is very complicated from the
technical point of view and the procuring organisation is
unable to present detailed specifications of goods, works or
characteristics of services;
2) the procuring organisation wants to award a contract
for the performance of scientific works, investigations,
experiments, for the preparation of projects, except in
cases when the manufacture of such an amount of goods is
planned which may ensure production profitability or cover
the investigation and designing expenses;
3. Provisions of Chapter 4 of this Law shall be applied
to two-stage tendering procedures, except for cases where
other procedures are prescribed by this Article.
4. Two-stage tendering documents shall specify that all
suppliers (contractors) shall submit initial tenders for the
first stage of tendering where the price shall not be
stated. The tender documents may provide for the submission
of offers as regards technical, quality and other
characteristics of goods, works or services and terms and
conditions of the contract for the supply thereof, and in
certain cases - also concerning professional and technical
competence and information relating to the qualification of
the suppliers (contractors).
5. During the first stage of tendering the procuring
organisation may negotiate any aspects of the tender with
any supplier (contractor), whose tender has not been
rejected in accordance with provisions of this Law.
6. During the second stage of tendering the procuring
organisation shall invite the suppliers (contractors) whose
tenders have not been rejected to submit their final tenders
with prices of specifications of a package of goods, works
or services. While drawing up such specifications the
procuring organisation may reject or modify any aspect of
technical or quality characteristics of goods, works or
services being procured which was formerly determined by
tendering and may include new characteristics or criteria.
In its invitation to submit final tenders the procuring
organisation shall notify the suppliers (contractors) of any
such rejection, modification or supplement. Every supplier
(contractor) who does not wish to submit the final tender
may withdraw from the tendering procedures without
forfeiting the tender guarantee if he has presented such.
Final tenders shall be evaluated and compared in accordance
with the procedure laid down in Article 28 of this Law, in
order to determine the successful tenderer.
Article 33. Negotiated Procedure
1. If circumstances specified in paragraph 1 of Article
31 occur, as well as in case of consulting or other services
which cannot be clearly characterised in advance,
procurement may be performed by negotiated procedure.
Applying this method of procurement, the procuring
organisation shall send invitations to submit offers to nor
less than 3 suppliers (contractors).
2. Invitation to submit offers must contain the following
information:
2) description of procurement specifying technical and
other parameters and requirements, whereas in the
procurement of works or services the place of their
execution or provision shall also be indicated;
3) in case of procurement of consulting services -
indication that the provider thereof with whom the services
procurement contract will be concluded and the affiliated
enterprises shall not be able to participate in the
procurement of goods and works related to the services
provided under the contract;
4) methods and criteria of offer evaluation expressed,
where possible, in terms of monetary value, specifying the
relative significance of every offer and the procedure for
the application of said methods and criteria in the
evaluation of offers;
3. The procuring organisation may negotiate with the
supplier (contractor) the content of the offers. In
conducting negotiations the following terms must be complied
with:
4. Upon the completion of negotiations the procuring
organisation shall request that all suppliers (contractors)
taking part in the procedures submit, by the fixed date, the
final offer prepared taking into consideration the outcome
of negotiations.
5. The offers shall be evaluated in the following manner:
2) the efficiency of the offer from the point of view of
prescribed technical and quality requirements shall be
evaluated separately from the price;
6. The procuring organisation shall award the procurement
contract to the supplier (contractor) whose offer, upon
evaluating it according to the criteria listed in the
invitation for the submission of offers and complying with
the procedure of their application specified in the
invitation, meets the requirements of the procuring
organisation best of all.
Article 34. Request-for-Quotations
1. The procuring organisation may perform procurements by
presenting a request for quotations. This method of
procurement may be applied in case of availability on the
existing market of competitive supply of standard goods,
works or conventional services required by the procuring
organisation.
2. The procuring organisation shall address a request for
quotations for goods, works and services to not less than 3
suppliers (contractors). Every supplier (contractor) who is
addressed shall be notified whether any other elements,
viz., transportation and insurance expenses, excise taxes,
customs or other taxes must be included in the price besides
the cost of goods, works or services.
3. Each of the suppliers (contractors) shall be allowed
to propose only one price which cannot be changed. The
procuring organisation and the supplier (contractor) may not
conduct any negotiation of the price proposed by the
supplier (contractor).
4. The decision to award the procurement contract shall
be taken in favour of the supplier (contractor) that
submitted the lowest price satisfying the needs of the
procuring organisation.
Article 35. Single-Source Procurement
1. The procuring organisation may procure goods, works
and services upon issuing to only one supplier (contractor)
an invitation to submit offers or the price.
2. Procurement by a single-source procedure shall be
allowed if:
1) the specific type goods, works or services may be
supplied (performed) only by a particular supplier
(contractor) or by the supplier (contractor) that has
exclusive rights to produce (perform) the goods, works or
services and there is no suitable alternative;
2) an urgent need for goods, works or services emerges
caused by particular circumstances or other reasons making
tendering procedures impossible or inexpedient, provided
that the procuring organisation could not have foreseen this
or this has not been conditioned by the delay of the
procuring organisation;
3) the procuring organisation has procured from a
supplier (contractor) under previous contract goods,
equipment, technology or services and has ascertained that
additional procurement from the supplier (contractor) is
expedient from the point of view of standardisation for the
purpose of co-ordination with the available goods,
equipment, technology or performed services and taking into
account the efficiency of the previous procurement, also,
the volume of additional procurement is insubstantial
compared with the previous procurement, the prices are
reasonable whereas alternative procurement is unacceptable
by reason of its incompatibility with the previously
procured goods, equipment, technology or services;
4) the procuring organisation wants to sign a contract
with an appropriate supplier (contractor) for research,
experiment, scientific or design works, except for cases
where the contract provides for the manufacture of a certain
amount of goods which would ensure their commercial
profitability or the covering of research and designing
expenses;
1. The supplier (contractor) who has received procurement
documents in accordance with the procedure laid down in this
Law may, prior to the enforcement of procurement contracts,
appeal against the actions, procurement procedures or
decisions of the procuring organisation if he believes that
his legal interests have been infringed and demands the
rescission, cancellation or modification of the contracts.
2. Complaints shall be lodged with the Public Procurement
Agency within 10 days from the day the supplier (contractor)
learns or should have learnt about the infringement of his
legal interests.
3. The following may not be the object of complaint:
2. Complaints shall be reviewed in compliance with the
Rules (Regulations) of Complaint Review Procedure approved
by the Government.
Article 38. Suspension of Procurement Procedures
1. A complaint lodged by the supplier (contractor) by the
fixed date shall suspend the procurement procedures until
the complaint is reviewed and a decision is passed in
accordance with the procedure established by Article 37 of
this Law, except in cases when a complaint is not duly
justified or if the supplier (contractor) or the procuring
organisation may sustain damage by reason of such
suspension.
2. The decision concerning the suspension of procurement
procedures shall be passed by the institution reviewing the
complaint.
Article 39. Appeal against the Decisions of the State
Institution Authorised
by the Government
The supplier (contractor) shall have the right to appeal
to court, in accordance with the procedure established by
law, against the decision of the state institution specified
in Article 36 of this Law.
Article 40. The Supplier's (Contractor's) Right to Claim
Damages
In the event that the procuring organisation fails to
fulfil obligations established by this Law and other legal
acts or infringes the rights of the supplier (contractor),
the supplier shall have the right to apply to court in
accordance with the procedure established by law and to
recover damages.
Article 41. The Supplier's (Contractor's) Liability
If the supplier (contractor) presents forged documents or
false data to the procuring organisation or fails to fulfil
the obligations prescribed by this Law and other legal acts,
the procuring organisation may apply to court in accordance
with the procedure established by laws and recover from the
supplier (contractor) the inflicted damages.
Article 42. Liability of the Executives of the Procuring
Organisation
1. Executives or other authorised persons of the
procuring organisation who violate this Law shall be held
materially, administratively or criminally responsible in
accordance with the procedure established by law.
2. If goods or services are procured in violation of the
requirements of this Law, their price shall be considered to
have been increased by 10% as against the amount paid for
the procured goods or services and that the state has been
inflicted damage of said amount. If the state control or
auditing services or other competent government institutions
establish that the goods or services have been procured at a
higher price or in violation of the procedure prescribed by
this Law as well as establishing other violations of price
application, the persons through whose fault the damage has
been inflicted shall be held liable under law (shall
indemnify for the damages). Damages shall be recovered from
the guilty persons in accordance with the procedure
established by law.
Chapter VII
FINAL PROVISIONS
Article 43. Coming into Effect of the Law
The Law shall come into effect on 1 January 1997.
I promulgate this Law passed by the Seimas of the
Republic of Lithuania.
ALGIRDAS BRAZAUSKAS
President of the Republic