Rules of Procedure for the Public Procurement Regulatory Commission

Rules of Procedurefor the

Public Procurement Regulatory Commission

January, 2012

TABLE OF CONTENTS

Article 1 Functions

Article 2 Structure of the PPRC

Article 3 Functions of the President of the PPRC

Article 4 The PPRC Board of Directors

Article 5 Voting of the PPRC

Article 6 Departments and Administration

Article 7 The Department of Rules and Training

Article 8 Department of Monitoring and IT

Article 9 Operational and Procedural Rules of the PPRC

Article 10 Financial Management

Article 11 Accounting Policies

Article 12 Inventories, Property and Assets

Article 13 Reserve management

Article 14 Bank arrangement

Article 15 Procurement, Orders and Payment

Article 16 Salaries and Pensions

Article 17 Travelling, Subsistence and Members Allowances

Article 18 Computers and Information Technology

Article 19 Maintenance of registers/records

Rules of Procedure for the Public Procurement Regulatory Commission

Public Procurement Regulatory Commission’s (PPRC)

Rules of Procedure

Pursuant to the section 142 (Chapter XII) of the Constitution of the Republic of Kosovo , and sections VI of the Law on Public Procurement in Kosovo Nr.04/L-042, the Board of the Public Procurement Regulatory Commission in Kosovo (PPRC), in the meeting held on 24.01.2012 has approved this work regulation of Public Procurement Regulatory Commission of Kosovo .

References to the “Law” are references to Procurement Law, Nr. 04/L-042.

PART I

GENERAL ISSUES

  1. Public Procurement Regulatory Commission (hereinafter – PPRC) is an independent regulatory agency.
  2. No public official may exert or attempt to exert any influence over the PPRC with respect to any specific operational or regulatory decision or action of the PPRC.
  3. The PPRC is a public authority and a budget organization. The PPRC is therefore subject to all applicable provisions of all other laws and regulations of the Republic of Kosovo to the same extent as any other public authority or budget organization.
  4. All employees of the PPRCshall be civil servants, excluding the Board members who may be also non civil servants.

PART II

FUNCTIONS AND STRUCTURE OF OPERATION OF THE PPRC

Article 1Functions

1.1The PPRC is responsible for carrying out the functions assigned to it by the Law on Public Procurement in the Republic of Kosovo (Law Nr.04/L-042) and the Law on the Procedure for the Award of Concessions (Law No.02/L-44), with respect to the overall development, operation and supervision of the public procurement rules and the public procurement system in Kosovo.

Article 2Structure of the PPRC

2.1The PPRC has the following structure:

2.2The President of the PPRC.

2.3The PPRC Board of Directors (hereinafter – BoD), which shall have 3 members, one of which is the President of the Board.

2.4Two Departments, as follows:

Department of Rules and Training consisting of:

Division of Rules

Division of Training

Department of Monitoring and IT consisting of:

Division of Monitoring

Division of IT and Statistics

Office for Administration

Personnel officer, Financial Officer, Procurement officer, Translators, Office Manager, Archivist,Officer for Logistic and Driver.

Article 3Functions of the President of the PPRC

3.1The President shall represent, manage and organize the operation of the PPRC and have the overall responsibility for its day-to-day performance.

3.2The responsibility to carry out functions and activities of the PPRC, which are not designated or included in any of the Departments lies with the President.

3.3The President shall have the authority to designate any member of the staff to organize and manage the work of the PPRC in a particular subject area, especially if certain functions or activities are not included in the functions and activities of the Departments of PPRC. The President has to inform the BoD members for any such designation. A copy of the document regarding the delegation of the responsibility will be handed to the Personnel Officer, who is responsible for the maintenance and update of the relevant file. The President may change the delegated responsibilities as he/she finds them suitable.

3.4The President shall convene meetings of the PPRC BoD when and as he considers necessary or when requested by two other members of the PPRC BoD.

3.5The President shall chair the PPRC BoD meetings. In exceptional cases where it is necessary for the PPRC BoD to meet in the absence of the President, the President shall authorize one of the other members of the PPRC BoD to chair the meeting.

3.6The President:

3.6.1Approves the List of job positions;

3.6.2Approves job descriptions;

3.6.3Assigns tasks to the PPRC employees;

3.6.4Dismisses employees;

3.6.5Is responsible for the management of the PPRC financial resources;

3.6.6Designate one member of PPRC to represent, manage and organize the work of the PPRC in his absence, i.e. designates an acting President. This person may change from one occasion to another;

3.6.7Issues instructions ensuring document handling within the PPRC;

3.6.8Concludes and signs agreements and contracts necessary to carry out the functions of the PPRC;

3.6.9Signs any document on behalf of the PPRC and all decisions made by the BoD. No official document should be issued by PPRC which is not signed by the President;

3.6.10Ensures that the Rules of Financial Procedures issued by the Ministry of Finance (MF) are implemented by all employees of the PPRC, according to their function;

3.6.11Monitors and controls the expenditure of the PPRC;

3.6.12Ensures that all employees who are responsible for the financial administration are properly advised;

3.6.13Ensures that there is a clear separation of duties between financial administration and the necessary control.

Article 4The PPRC Board of Directors

4.1The PPRC Board of Directors is the highest collective decision making institution of the PPRC. The President of PPRC is always one of its members.

4.2Only the BoD shall enjoy the following rights:

4.2.1To approve this Regulation and any amendments thereof;

4.2.2To approve and submit to the Government and the Assembly an annual report, no later than the end of February of the following calendar year, analyzing public procurement activities in Kosovo occurring in that calendar year and setting forth any recommendations for the improvement of the public procurement system and/or the present law;

4.2.3To approve the PPRC strategy and plans;

4.3All decisions of the BoD should make in accordance with the following principles:

4.3.1In full respect of the Laws of Kosovo and this Regulation;

4.3.2With due consultation and after taking professional advice;

4.3.3With regard for the need to promote equality and fair treatment;

4.3.4In accordance with proper access to information and to the facts that this information is available;

4.3.5Explaining, in a written form, the reasons for taking the decisions, recording any personal interest declared and referring to every important detail of the consultation;

4.4The BoD membersare responsible to organize and manage the work of the respective Departments and implement any other functions or activities designated to them by the President.

4.5Any member of the BoD may represent the PPRC in certain events or activities if he/she is designated to do so by the President.

4.6The members of the PPRC BoD are appointed according to Article 89 of the Law and may be removed or suspended according to Article 93 of the Law.

Article 5Voting of the PPRC

5.1The PPRC shall make every effort to reach decisions at its meeting by consensus. In the event that the chairperson of the meeting determines that consensus cannot be reached, the matter shall be put to a vote. Decisions shall require the support of a majority of the members.

5.2The outcome of a vote may be published; however the voting of each member is strictly confidential.

Article 6Departments and Administration

6.1Every department consists of the Head of Department, the Coordinators of the Divisions and the employees.

6.2The Office for Administration consists of its employees.

6.3Heads of Departments, Coordinators of Divisions and employees perform their duties according to relevant job descriptions.

6.4Heads of Departments,Coordinators of Divisionsand employees are civil servants.

Article 7The Department of Rules and Training

7.1The Department of Rules and Training consists two (2) Divisions:

Division of Rules

Division of Training

7.2The Division of Rules:

7.2.1Establishes and publishes detailed public procurement rules to ensure the proper implementation of the Public Procurement Law by the contracting authorities, including rules governing the use and conduct of each of the procedures provided for in Articles 33-37 of the Law, provided, however, that such rules shall be consistent with the requirements and principles established by the Law and any applicable mandatory requirements of the EU relating to procurement.

7.2.2Prepares and disseminates procurement manuals, guidelines, standard tender and contract documents, standard forms and models pursuant to the Law for the benefit of contracting authorities and economic operators.

7.2.3Issues opinions to contracting authorities regarding their decisions, actions or omissions during procurement and contract management activities.

7.2.4Provides technical assistance and advice to both contracting authorities and economic operators on the application and interpretation of the provisions of the Law and any documents issued by the PPRC, and to that extent establishes and operates a Help Desk, operating during all working hours of the Division.

7.2.5Provides and publishes written administrative interpretive rulings to both contracting authorities and economic operators on the application and interpretation of the provisions of the present law and any documents issued by the PPRC.

7.2.6In cooperation of the division for IT and Statistics, establishes a manual and an electronic systems for monitoring the compliance of the contracting authorities with the Law, including the preparation of reporting forms to be completed by all contracting authorities subject to the Law.

7.2.7In coordination with the Government, and after a relevant authorization, issues rules regarding e-procurement, and more specifically the electronic transmission of tender documents and request for participation and the receipt of proposals. These rules must include an advanced electronic signature, in conformity with international standards.

7.2.8Develops detailed rules regarding Contracting Authorities’ disposal of assets.

7.2.9On request from any contracting authority determines whether the eligibility requirements specified in Article 23 of the Law for a procurement professional certificate are met. In case the requirements mentioned are not met, the PPRC submits its recommendation to PRB, with a request for revocation of the certificate in accordance with the procedures mentioned in paragraph 8 of the article 25 of the Law. If the holder of the certificate is not a civil servant, the person shall first be entitled to receive ninety (90) days’ advance written notice of PPRC’s intent to revoke his/her certificate. This notice shall give the affected person the right to challenge such decision in accordance with the Law on Administrative Procedures.

7.2.10Assists the work of the PPRC in formulating implementing measures by canvassing, as widely as possible, the opinions of those involved in procurement activities in Kosovo. To this end, it shall regularly solicit the written comments and views of the President of the PPRC, the Director of the Treasury, the procurement officers of contracting authorities (including public service operators), and organizations representing economic operators.

7.2.11Liaises and cooperates with other organizations at home and abroad on matters associated with public procurement.

7.2.12Elaborates and submits the report on the annual work of the Division, which will be included as part of the report on the overall work of PPRC.

7.3The Division for Training:

7.3.1Reinforces awareness among contracting authorities and economic operators of public procurement legislation as well as its objectives, procedures and methods.

7.3.2In cooperation with Kosovo Institution for Public Administration (KIPA), develops training modules and curriculum for procurement qualifications:

7.3.3In cooperation with KIPA, identifies experienced trainers in public procurement, suitable to teach the procurement courses designed by PPRC

7.3.4In cooperation with KIPA, ensures that such courses are developed and delivered by trainers or training organizations having substantial expertise in best international procurement practices and the procurement system of the EU.

7.3.5Supports KIPA and other public training and educational authorities to implement high level training events for procurement officers and other procurement professionals, aiming at the implementation of sound procurement practices and the observance of the Law.

7.3.6Is responsible for the elaboration of training modules on Public Procurement and their update, according to the training needs and the changes on the Public Procurement Law and the relevant regulations.

7.3.7Executes periodical training needs analyses for the Kosovo public procurement officials, economic operators and for the PPRC staff, in order to define their training needs.

7.3.8Maintains and updates databases of Contracting Authorities (CA’s), certified procurement officers and certified trainers in public procurement. Specifically regarding Contracting Authorities, if the PPRC fails to include an entity in such a database, such failure shall not be determinative of the question as to whether or not such entity is a contracting authority for the purposes of the Law.

7.3.9Elaborates and submits the report on the annual work of the Division, which will be included as part of the report on the overall work of PPRC.

Article 8Department of Monitoring and IT

8.1The Department of the Monitoring of Public procurement consists of two (2) Divisions:

Division of Monitoring

Division of IT and Statistics

8.2The Division of the Monitoring:

Planned procurement monitoring

8.2.1Prepares a yearly basis a monitoring work plan for ex-post monitoring of procurement and contract management activities of selected contracting authorities and submits the said plan to Board for endorsement.

8.2.2Monitorsalready accomplished procurement and contract management activities of contracting authorities on adequate implementation of the Law and the Secondary Legislation, from initiation of a procurement activity to full implementation of the contract, according to the annual work plan.

Ad - hoc procurement monitoring

8.2.3Conductsad-hoc monitoringof on-going procurement and contract management activities,from initiation of a procurement activity to full implementation of the contract, in selected contracting authorities, based on internal and external information received by PPRC.

8.2.4Monitors the existence and completeness of the tender dossier prior to the publication of the contract notice

8.2.5Issues a professional advice in cases the PPRC concludes that the activity of the monitored contracting authority does not comply with the Law.

Investigations of the Procurement

8.2.6Conducts investigations of accomplished and/or on-going procurement and contract management activities, for the purpose of monitoring the application of theLaw.

8.2.7Issues orders requiring law enforcement officials to assist the PPRC in conducting investigations.

Planned Monitoring,Ad-hoc Monitoring and Investigations reports

8.2.8Organizes, in cases of violations of the Law by the monitored contracting authority, a meeting with the participation of the politically responsible persons to discuss the case, exchange oral explanations and elaborate remedies to be taken.

8.2.9Sends the planned monitoring,ad-hoc monitoringand investigation reports

(a)to the Head of the Procurement Department of the respective contracting authority,

(b)to the relevant supervising body (Mayor in case of a Municipality, Minister and Permanent Secretary in case of a state directorate etc.), and

(c)in the case of important violations, to any other interested parties, like Office of Central Auditor, Anticorruption Agency etc..

8.2.10Forwards the planned monitoring,ad-hoc monitoring and investigation reports to the Division of IT and Statistics in order to be published on the website of the PPRC.

Monitoring following notification

8.2.11The contracting authorities notify the PPRC in the following cases:

(a)the contracting authority has decided to cancel a procurement procedure when there are less than two tenders or requests for participation received (according to article 32 paragraph 5 of the Law),

(b)the contracting authorities has decided to cancel a procurement procedure due to an abnormally low price (according to article 61 paragraph 5 of the Law),

(c)the contracting authority has decided to cancel a procurement procedure after publication of a contract notice without the award of a public contract (according to article 62 paragraph 2 of the Law), and

(d)the contracting authority has decided to use the negotiated procedures without publication of a contract Notice (according to article 35 paragraph 1 of the Law).

8.2.12Decides to monitor particular cases mentioned above, whenever PPRC deems it reasonable.

8.2.13Issues a professional advice to the contracting authority if the PPRC concludes that the activity of the contracting authority does not comply with the Law and specifically in case the contracting authority did not fully document its decision(s).

Control of contract notices

8.2.14Checks contract noticesforwarded by the Division of IT and Statistics in case (a) there are errors or deficiencies referring to the procurement procedures themselves, or (b) the contracting authority declines to correct the formal errors or deficiencies specified during the initial control of the Division of IT and Statistics.

Performance reports

8.2.15Elaborates performance reports identifying strengths and weaknesses in the implementation of the Law, the procurement system and the implementation of contracts activities.

8.2.16Elaborates the annual report (which will be part of the overall report PPRC work), required by the law in a manner that provides a general but accurate assessment of the state of the national procurement system and specific assessments of the degree of compliance/non-compliance by individual contracting authorities.

Division report

8.2.17Produces and submits the report on the annual work of the Division, which will be included as part of the report on the overall work of PPRC.

Recommendations

8.2.18According to the competence of the Division elaborates and submits to the Division of Rules and Training any recommendations for the improvement of the public procurement system and/or the Law, with special emphasis of the procurement activities.

8.3The Division for IT and Statistics:

8.3.1Establishes and maintains an electronic Public Procurement Register that shall serve as the repository for electronic copies of all notices, invitations, declarations, tender dossiers, reports, complaints and decisions filed or issued in connection with each and every procurement activity conducted or initiated by a contracting authority.

8.3.2Establishes and maintains a website, providing the public with unrestricted access to

(a)the Law and all secondary legislation issued under the authority of the Law,

(b)any interpretive rulings and documents referred to in this Article,

(c)all information contained in the Public Procurement Register, and

(d)all reports prepared by the Division for Monitoring, as a result of monitoring procedures.