Of the Open Competition

REGULATIONS

Research equipment for fulfilment of the Project “Development of Scientific Infrastructure for the National Research Centre of Nanostructured and Multifunctional Materials, Constructions and Technologies”

APPROVED

at the Procurement Commission meeting on January 14th, 2013,

Minutes No.LUFI2013/1/ERAF-INFRA/P1

Chairman of the Procurement Commission

______

J. E. Freibergs

Institute of Physics of the University of Latvia,

Agency of the University of Latvia

REGULATIONS

Of the Open Competition

Procurement identification No.LUFI2013/1/ERAF-INFRA

Procurement is being carried out in the framework of the ERDF co-financed project “Development of Scientific Infrastructure for the National Research Centre of Nanostructured and Multifunctional Materials, Constructions and Technologies”,

No. 2011/0041/2DP/2.1.1.3.1/11/IPIA/VIAA/004

(With a corrected parameter in the Technical specification of the Procurement lot 2 made on 04.02.2013. and the tender submission deadline extension made on 08.02.2013.)

Salaspils, 2013

Content

1. GENERAL INFORMATION ______3

2. TENDER documents, submission and opening procedure of the tenders______4

3. INFORMATIONON THE SUBJECT OF THE PROCUREMENT ______6

4. QUALIFICATION REQUIREMENTS AND THE SELECTION OF APPLICANTS______6

5. EVALUATION OF TENDERS AND REQUIREMENTS

FOR APPLICANTS ______9

6. EXAMINATION ORDER OF THE TENDERS ______11

7. RIGHTS AND RESPONSIBILITIES OF THE COMMISSION ______12

8. APPLICANT'S RIGHTS AND OBLIGATIONS ______13

9. TERMS OF THE CONTRACT ______14

Appendix1. TECHNICAL SPECIFICATIONS ______15

Appendix2. CONTRACT DRAFT ______31

Appendix3.1. APLICATION(form)______41

Appendix3.2.List of supplies(form) ______43

Appendix4.FINANCIAL OFFER (form) ______44

Appendix5.REQUIREMENTS FOR THE AFTER-SALES

WARRANTY SERVICE ______45

1. GENERAL INFORMATION.

1.1. Procurement identification number: LUFI2013/1/ERAF-INFRA.

1.2. Contracting Authority:

Contracting Authority‘s Name / Institute of Physics of the Universityof Latvia, Agency of theUniversity of Latvia (UL), hereinafter - IPUL
Address / 32 Miera Str., Salaspils, LV-2169, Latvia
VAT Reg. No. / LV 90002112199
Telephone No. / +371 67944700
Fax No. / +371 67901214
e-mail address /
Website address /
Contact person / Maija Broka, Secretary of the Procurement Commission
Telephone No. / +371 67944700, +371 29680881
Fax No. / +371 67901214
e-mail address /
Office hours / 9:30-15:30

1.3. Subject of the Procurement.

Subject of the Procurementis divided into three lots:

Lot 1 - Renewable fuels combustion and heat generation processes research and control laboratory kit supplement, Set 1;

Lot 2 - Renewable fuels combustion and heat generation processes research and control laboratory kit supplement, Set 2;

Lot 3-Microreology complex, Set 1.

CPV codes: for the Lots 1, 2 and 3 - 38000000-5.

1.4. Place of the Contract performance:

–for the for the Lots 1 and 2–IPUL Alkali metals laboratory building, address – Miera Str. 32, Salaspils, LV-2169, Latvia;

–for the for the Lot 3 –premises of the UL Faculty of Physics and Mathematics, address - Zellu Str. 8, Riga, LV-1002, Latvia.

1.5. Deadlines:

Activity / Date / Time **
The deadline for requesting additional information from the Contracting Authority / 28.02.2013.
The deadline for interested parties to provide an explanation / 01.03.2013.
The deadline for submission of tenders / 08.03.2013. / 13:00
The tender opening session / 08.03.2013. / 13:00
Notification of the Competitionresults / 15.03.2013. (indicative)
Procurement contract(Contract) conclusion / 26.03.2013. (indicative)
Time of delivery of Goods after the date of conclusion of the Contract / Lot 1: 6 weeks;
Lot 2: 6 weeks;
Lot 3: 6 weeks.

*) The deadline for requesting additional information here means the date when the question has become available to the Contracting Authority (the receipt of a letter, fax or e-mail message).Additional information request regarding the Tender Regulationsmust be submitted in time, taking into account the fact that the IPUL Procurement commission is not authorized to provide additional information later than 6 (six) days before the tendersubmission deadline.

**) Latvian time.

1.6. Procurement method.

The method of the present Procurement is open competition (hereinafter - the Competition), which is regulated by Public Procurement Law and other applicable laws and regulations of the Republic of Latvia (RL).

1.7. Applicant is a natural person or a legal person, association of such persons in any combination, who has submitted a tender for the Competition.

1.8. Tender validity period:90 (ninety) days from the deadline for submission of tenders fixed in the paragraph 1.5 of the Competition regulations (hereinafter –the Regulations). If the procurement Contract due toobjective reasons can not be concludedin the aforementioned period of time, the Contracting Authority may request the extension of the tender validity period and agree on it with the Applicant in written form.

1.9. Tender security is not intended in theCompetition.

1.10. The Competitionis organized by the Procurement commission of the Institute of Physics of the University of Latvia set up by the IPUL Director’s order No.2/162 from the 1st of June 2011 (hereinafter - the Commission).

1.11. Payment of the contractual amount will be made from the ERDF sub-activity No.2.1.1.3.1. “Development of the Research Infrastructure”project “Development of Scientific Infrastructure for the National Research Centre of Nanostructured and Multifunctional Materials, Constructions and Technologies”, Agreement No.2011/0041/2DP/2.1.1.3.1/11/IPIA/VIAA/004,financial resources (hereinafter - Funding).

2.TENDERdocuments, submission and opening procedure of the tenders.

2.1. An Applicant may submit atenderfor one or several lots.For every lot the Applicant may submit only one tender. The tender shall not include several technicalproposalor financial offer options.

2.2. The tender must comply with the requirements contained in the present Regulationsand consist of:

1) Application for participation in the Competitionto be filled in on the form enclosed as Annex 3.1 to the Regulations;

2) Documents certifying Applicants' qualifications (see Section 4 of the Regulations);

3) Technical proposal for every tender lot separately,that shall be filled in on the form enclosed as Annex 1 to the present Regulations; technical proposal must be signed;

4) Financial offer for every tender lot separately,that shall be filled in on the form enclosed as Annex 4 to the present Regulations; financial offer must be signed.

2.3.Submitting a tender for lots 1 and 3, Applicant shall add a detailed description of the offered Goods after sales service during the warranty period completed under the conditions of the Annex No.5, comprising:

description of Goods installation and problemmanagement procedures;

 response and troubleshooting guaranteed deadlines.

2.4. Applicant shall submit a signed tender. If the tender is submitted by a group of persons, it shall be signed by all persons, belonging to the group of persons.

2.5. The tender shall be signed by a person with signatory powers or an authorised person. If the tender is signed by an authorized person, the tender must be accompanied by a power of attorney or a copy of the authorization duly certified according procedure set in the laws and regulations.

2.6. Tender documents must be fastened together in a way that would be impossible to replace or remove the tender page; pages should be numbered. If the Applicantattaches to the tender promotional materials, brochures, catalogs, etc., which are not fastened together, on each attached document Applicant's name should be indicated.

2.7. The tender shall be prepared in Latvian or English, according the requirements of recordkeeping, in 2 (two) copies in paper form:

1) The original (marked "Original") - 1 piece,

2) Copy (marked "Copy") - 1 piece.

Some explanatory documents may be submitted in another language, then they must be accompanied by an Applicant’s certified translation into Latvian or English.

2.8.The place and procedure of submitting the tender:

2.8.1. The tender original and copy must be submitted (sent) in a closed and sealed envelope. The following information should be put on the envelope:

1) Institute of Physics of the University of Latvia,
Miera Street 32, Salaspils, LV-2169, Latvia;

2) Applicant's name and address;

3) Note “For the Competition “Research equipment for fulfilment of the project “Development of Scientific Infrastructure for the National Research Centre of Nanostructured and Multifunctional Materials, Constructions and Technologies” (LUFI2013/1/ERAF-INFRA)”,specifying tender lots.

2.8.2. Applicants may submit (send) tenders to the Secretariat of the IPUL, Room 206 in the Administrative building, 2nd floor, Miera Street 32, Salaspils, in the working days from 9:30 to 15:30 up to the date and time fixed in the paragraph 1.5 of the Regulations. After the deadline tenders will not be accepted.

2.8.3. Tenders may be sent in a registered letter, by courier service or delivered in person.

2.9. Opening place and date of the tenders:The tender opening will take placeat the Meeting room of the IPUL SML building, 2nd floor, Miera Street 32, Salaspils, and will beginin the date and time fixed in the paragraph 1.5 of the Regulations. The tender opening session is open and it is allowed to take part for everyone being interested in.

3. INFORMATIONON THE SUBJECT OF THE PROCUREMENT.

3.1. Procurement is subdivided intofour Lots and they are:

Lot 1 - Renewable fuels combustion and heat generation processes research and control laboratory kit supplement, Set 1.Equipment installation, testing and personnel training/instruction shall be performed after the delivery.

Lot 2 - Renewable fuels combustion and heat generation processes research and control laboratory kit supplement, Set 2. Personnel training/instruction shall be performed after the delivery

Lot 3 -Microreology complex, Set 1. Equipment installation, testing and personnel training/instruction shall be performed after the delivery.

3.2. Deliveryvolume for each lot - 1 full set of the equipment in accordance with the technical specification of the respective lot (Appendix 1 of the Regulations).

3.3. Delivery must be carried out in accordance with the requirements set out in the technical specificationand procurement Contract project (Appendix 2 of the Regulations).

3.4. Time for fulfilment of the contract:

- for Lots 1, 2and 3–6 (six) weeks after the date of signing of the Contract.

3.5. Procurement will be carried out in theframework of the ERDF co-financed project “Development of Scientific Infrastructure for the National Research Centre of Nanostructured and Multifunctional Materials, Constructions and Technologies”(No 2011/0041/2DP/2.1.1.3.1/11/IPIA/VIAA/004).

4. QUALIFICATIONrequirements and the selection of applicants.

4.1. The Contracting Authorityacceptssubmitted tenders from Applicants that meet the requirements of this section and have been selected in accordance with the procedures specified in the Regulations.

4.2.Provisions for exclusion of Applicants.

The Contracting Authority excludes the Applicant from further participation in the procurement procedure, as well as does not accept the Applicant’s tender if:

4.2.1. Applicant is not registered in accordance with statutory requirements;

4.2.2. Pursuant to a court judgement or an prosecutor’s injunction regarding a penalty, which has come into effect and become indisputable and non-appealable, the Applicant or the Applicant's representative has been found guilty in offences of evasion of tax payments or payments equalled to tax, of corruptive character, fraudulent activities in financial matters, laundering of proceeds derived from crime or implication in a criminal organisation (except the casesas provided by Clause 1, Paragraph 4, Section 39 of the Public Procurement Law);

4.2.3. Pursuant to a decision made by a competent institution or a court judgement, which has come into effect and become indisputable and non-appealable, the Applicant has been found guilty in substantially violating the employment rights related to: a) employment of one or several citizens or nationals that are not citizens or nationals of the Member States of the European Union, if they stay illegally in the territory of the Member States of the European Union; b) employment of one person without entering into the employment contract in writing, if such a violation is established repeatedly in the course of a year, or employment of two or several persons without entering into the employment contract in writing (except the cases as provided by Clauses 1 and 2, Paragraph 4, Section 39 of the Public Procurement Law);

4.2.4. Pursuant to a decision made by a competent institution or a court judgement, which has come into effect and become indisputable and non-appealable, the Applicant has been found guilty of violating the competition rights manifested in a vertical agreement aimed to limit a buyer's ability to set a resale price or the horizontal cartel agreement, except the case when the respective institution, upon establishing a violation of the competition rights, has exempted the Applicant from penalty (except the cases as provided by Clause 3, Paragraph 4, Section 39 of the Public Procurement Law);

4.2.5.An insolvency process of the Applicant has been declared, the Applicant’s business activity has been suspended or terminated, Applicant’s bankruptcy proceedings have been started or it is established that the Applicant will be liquidated until the expected expiry date of the Contract performance (the Contracting Party may decide on not excluding the Applicant from the procurement procedure pursuant to this Paragraph in cases as provided by Paragraph 3, Section 39 of the Public Procurement Law);

4.2.6. The Applicant has tax arrears including debts of the compulsory social security contribution,which exceed100 LVL in total in each country, in Latvia or in the country where the Applicant is registered or where it has its residence (in case if the Applicant is not registered in Latvia or Latvia is not its residence country);

4.2.7. The Applicant has provided false information regarding its qualifications or has not provided the requested information at all;

4.3. In order to enable the Commission to assess the Applicant in accordance with the paragraph 4.2 of the Regulations, the Applicant shall submit the following documents:

4.3.1. Applicant's registration certificate copy;

4.3.2.Document confirming the signatory person’s legitimate rights of representation;

4.3.3.Attestation of theApplicant itselfthat the circumstances referred to in Clauses 4.2.2 – 4.2.6 of the Regulations do not apply to the Applicant.

4.4. The Commission may requestan Applicant to submit the following documentswithin 10 (ten) business days(in cases as provided by Paragraph 8, Section 39 of the Public Procurement Law):

4.4.1. Certificate issued by the Republic of Latvia Enterprise Register or an equivalent competent authority in any other country, where the Applicant is registered, no earlier than one month before the submission day,certifyingthat an insolvency process of the Applicant has not been declared and that the Applicant is not undergoing liquidation;

4.4.2. Certificate issued by the State Revenue Service no earlier than one month before the submission day, certifying that the Applicant (regardless of whether the Applicant is registered in Latvia or Latvia is Applicant’s residence country) in Latvia has noarrears of the State Revenue Service administrated taxes,including debts of the compulsory social security contribution, which exceed 100 LVL in total;

4.4.3. Certificate issued not earlier than one month before the submission day,certifyingthat the Applicant registered in a foreign country (having that country as residence country) in the respective country has no tax arrears, including debts of the compulsory social security contribution,which exceed100 LVL in total;

4.4.4.The latest financial statements (including the balance sheet, profit and loss statement, cash flow statement, statement on changes in equity capital and attachments) submitted to the State Revenue Service or an equivalent tax administration authority in any other country by the Applicant, and the relevant auditors' report,if any.

4.5.Information about the Applicant's economic and financial situation:

4.5.1. Applicant's economic and financial situation must meet the following conditions: Applicant's average annual financial turnover in supplying equivalent goods (equipment) in every year over the last 3 (three) yearsshould exceed the price of the Applicant's tender.

4.5.2. In order to assess the Applicant's economic and financial situation, the Applicant shall submit a statement of the average annual financial turnover in supplying equivalent goods (equipment) over the last three years. The Applicant who is running business less than 3 yearsshall submit a statement of its own period of operation.

4.6.Information about the Applicant's capabilities:

4.6.1.The Applicant shall have the experience in the delivery of similar goods (equipment); the contract sum of at least one contract shall exceed the price of the Applicant’s tender.

4.6.2. In order to assess Applicant's potential the Applicant shall provide a list of the performed 3 to 5 main contracts on the delivery of similar goods (equipment) over the last 3 (three) years filling in the form given in the Appendix 3.2 of the Regulations.

4.6.3.If the Applicant involves a subcontractor, the Applicant shall submit a documental statement about the participation of the subcontractor in the Contract, as well as shall specify the amount of work assigned to such subcontractor.

4.7.Additional information:

4.7.1 If the information provided by the Applicant under the paragraphs 4.3, 4.4, 4.5 and 4.6 of the Regulations, is insufficient to determine whether the conditions ofthe paragraph 4.2 of the Regulations are applicable to the Applicant, or in order to evaluate the economic and financial status and capabilities of the Applicant, the Contracting Authority is entitled to request the Applicant to explain the information submitted or submit additional information.

4.7.2 To determine whether or not a tenderof unjustifiably low cost has been received, the Contracting Authority can request the Applicant, who has submitted the tender with the lowest price, to submit a description of the specific market conditions available only to this Applicant that substantiates the price reduction.

4.8.Exclusion from participation in the procurement process.

4.8.1 If any of the conditions of exclusion referred to in the paragraph 4.2 of the Regulations is applicable to the Applicant or the Applicant’s economic and financial status and capabilities do not conform to the conditions defined inthe paragraphs 4.5 and 4.6 of the Regulations, the Contracting Authority shall take a decision not to examine the Applicant’s tender and to exclude the Applicant from further participation in the procurement procedure.

4.8.2. If the Applicant has submitted a tender of unjustifiably low cost, the Contracting Authority shall take a decision on the Applicant's exclusion from further participation in the procurement procedure.

4.8.3. If theApplicant requests the Contracting Authority to explain the decision that has been taken in accordance with the clauses 4.8.1 and 4.8.2 of the Regulations, the Contracting Authority shall provide a written substantiation of the decision within a period of three days from the receipt of the request.

5. evaluation OF TENDERSand requirements for applicants.

5.1. Evaluation of tenders will take place in the following stages:

5.1.1. Tender design verification -the Commission shall assess whether the tenders is submitted and presented in accordance with the requirements specified in the Regulations;

5.1.2. Selection of Applicants- the Commission shall determine an Applicant's competence and compliance with the expected performance of the contract requirements from the documents and certificates submitted by the Applicant;