There is a new version of the law,

No.VIII-1210, 1999.06.03

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;

2) where goods or services are being procured pursuant to

the provisions of the Law on Social Integration of the

Disabled.

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.

5. Services means any object of purchase with the

exception of goods and works.

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:

1) short description of the object of procurement;

2) names and addresses of suppliers (contractors) who

have submitted tenders, offers or prices;

3) information relating to the qualifications of

suppliers (contractors) which participated in procurement

procedures;

4) the price of each tender or offer or the essential

conditions for its determination;

5) description of the evaluation and comparisons of

tenders or offers;

6) the reasons of rejection of tenders or offers if

pursuant to Article 10 of this Law all tenders or offers

have been rejected;

7) the grounds for applying other than tendering

procedure for procurement;

8) reasons of rejection, if tenders or offers have been

rejected on the basis of criteria referred to in Article 12

of this Law.

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

1. The procurement contract shall come into effect from

the moment of its conclusion.

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;

5) issue specialised publication attached to the

"Valstybes þinios" (Official Gazette);

6) organise and implement the training of employees

engaged in procurement activities;

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;

2) closed tenders;

3) two-stage tenders;

4) negotiated tenders;

5) request- for- quotations;

6) single-source procurement.

Article 18. The Procedure for the Application of

Procurement 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:

1) name and address of the procuring organisation;

2) the nature, quantity, short qualitative

characteristics of the goods to be supplied, the place and

time of their delivery;

3) requested time limit for the delivery of goods,

completion of works or provision of services;

4) indication whether foreign suppliers (contractors) may

participate in the tenders;

5) name and address of the service from which the

contract documents may be requested;

6) where applicable, the amount and terms of payment of

the sum to be paid to obtain the documents;

7) the language or languages in which the documents must

be drawn;

8) address and final date for the submission of tenders.

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:

1) name and address of the service from which the

prequalification documents may be requested;

2) where applicable, the amount and terms of payment of

the sum to be paid to obtain the documents;

3) the language or languages in which the documents must

be drawn;

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:

1) rules for the drawing up of tenders;

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;

10) indication whether foreign suppliers (contractors)

are invited to tender;

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);

14) period of validity of tenders;

15) date, time and place of the opening of tenders;

16) procedure for the opening and consideration of

tenders;

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;

20) all other requirements of the procuring organisation

established pursuant to this Law and subordinate legislation

regulating procurement, applicable to the drawing up of

tenders and other issues of procurement procedures.

Article 23. Explanation and Alteration of Tender

Documents

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

1. Tenders shall be valid for time period specified in

the tender documents.

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;

3) failure to present, after the acceptance of the

tender, a guarantee for the execution of the contract or to

comply, prior to the signing of the procurement contract,

with any other terms and conditions laid down in the tender

documents.

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:

1) expiry of the period of validity of the tender

guarantee;

2) coming into effect of the procurement contract and the

contract performance guarantee, if requested in tender

documents;

3) termination of procurement procedures if the

procurement contract does not come into effect;

4) the tender is withdrawn prior to the expiry of the

time period for the submission of tenders unless this is

prohibited by a provision in the 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:

1) the supplier (contractor) who submitted the tender

does not meet the qualification requirements;

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) circumstances specified in Article 12 occur.

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

2) the tender which, on evaluation by objective criteria

expressed in monetary or other quantitative terms, is

recognised as being most advantageous.

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;

4) the value of goods and services does not exceed 150

000 litas, of works - 500 000 litas.

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) tendering procedures have been performed, however, no

tenders have been received or all tenders have been rejected

under Article 10 of this Law, also if, in the opinion of the

procuring organisation, the resumption of tendering

procedures anew will not result in the award of contract.

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:

1) name and address of the procuring organisation;

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;

5) request that the technical part and prices be

submitted in separate envelopes;

6) the place and deadline for submission 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:

1) they must be confidential;

2) the parties must not disclose to anyone any technical,

commercial or price-related information;

3) all suppliers (contractors) whose offers were not

rejected based on the provisions of this Law must be given a

possibility to participate in the negotiations.

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:

1) account shall be taken only of the criteria listed in

the invitation for offers;

2) the efficiency of the offer from the point of view of

prescribed technical and quality requirements shall be

evaluated separately from the price;

3) the prices of offers shall be compared or the offer

shall be evaluated taking into account all criteria

(including the price) only upon performing technical and

quality evaluation of the offer.

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;

5) the duration of the contract for the procurement of

goods, works and services is extended.

Chapter VI

REVIEW OF COMPLAINTS AND LOSS RECOVERY

Article 36. The Right of the Supplier (Contractor) to

Lodge a Complaint

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:

1) selection of the method of procurement under Article

17 of this Law;

2) the decision of the procuring organisation to reject,

pursuant to Article 10 of this Law, all tenders, offers or

prices.

Article 37. Procedure for Reviewing the Complaints

1. The Public Procurement Agency must review the

complaint and pass a decision within 20 days.

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

Vilnius

13 August 1996

No. I- 1491