Grant Agreement. Public procurement rules and Additional remuneration. DG Research and Innovation
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1 HORIZON HORIZON Grant Agreement Public procurement rules and Additional remuneration DG Research and Innovation
2 Public procurement rules in the Grant Agreement
3 Public procurement in the Grant Agreement for the purchase of goods, works or services- Article 10 for implementing action tasks by sub-contractors- Article 13
4 Procurement rules Comply with the national law on public procurement for beneficiaries that are "contracting authorities". Contracting authority means the State, regional or local authorities, bodies governed by public law or associations formed by one or several of such authorities or one or more such bodies governed by public law (see Article 1 of Directive 2004/18/EC, Article 2.1(1) of Directive 2014/24/EU). Bodies governed by public law include entities established for meeting needs in the general interest who are financed mostly by the State, regional or local authorities, or other bodies governed by public law and entities controlled by those bodies (for the full definition, see Article 2.1(4) of that Directive).
5 Additional eligibility criteria Best value for money- best price quality ratio - it doesn't require always competitive selection procedures but it must be demonstrated how best value for money was ensured Lowest price - it is not automatically applied but it might be applied where the company meets the technical conditions and offers the lowest price
6 EU legal framework Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts From 18 April Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC
7 Procurement contracts Type of contract Services Direct Framework Purchase Direct service contract If you are procuring services and the precise volume and timing of delivery can be defined at the outset. Framework service contract If you are procuring series of services but the precise volume and timing of delivery cannot be defined at the outset, the volume and other specific conditions will be laid down in specific contracts or order forms : Purchase order If you are procuring a simple purchase or for a low amount: model purchase order (It is a simplified direct contract) Supplies Works Direct supply contract If you are procuring supplies and the precise volume and timing of delivery can be defined at the outset: Work contract If you are executing works to construct all or part of a building Framework supply contract If you are procuring series of supplies but the precise volume and timing of delivery cannot be defined at the outset, the volume and other specific conditions will be laid down in order forms Framework work contract If you are procuring a series of works to construct all or part of buildings. Buildings Building contract If you are buying or renting all or part of a building
8 Procedures according to Directive 2004/18/EC Four types of procedure open: any party may submit a bid restricted: any party may ask to participate and the contracting authority decides which parties to invite to submit a bid negotiated: where contracting authorities negotiate directly the terms of a contract; - with publication of a contract notice - without publication of a contract notice competitive dialogue: in the case of very complex contracts, where the contracting entity discusses requirements and solutions with candidates admitted to a procedure
9 Thresholds for the application of thedirective 2004/18/EC and exceptions Estimated value of contract Services or supplies > * (service contracts in Annex IIA to Directive 2004/18/EC, except for research and development contracts in category 8) Works > > * (service contracts in Annex IIB and research and development contracts in category 8) Exceptions: employment contracts research and development services other than those where the benefits accrue exclusively to the contracting authority for its use in the conduct of its own affairs, on condition that the service provided is wholly remunerated by the contracting authority
10 Criteria for choosing a contractor Exclusion criteria tenderer Selection criteria Award criteria tender
11 Exclusion criteria Money laundering Corruption Bankruptcy Fraud Non-payment of taxes Grave professional misconduct Serious breach of contract
12 Selection criteria Selection criteria may apply per tenderer, per economic operator (member of the group in a joint tender or subcontractor) or to at least one economic operator A selection criterion consists in three elements: i. the criterion: e.g. financial capacity, experience ii. the minimum level or minimum requirement iii. the relevant supporting documents
13 Award criteria the most economically advantageous tender (based on criteria such as quality, price, technical merit, after-sales service) or the lowest price
14 Additional remuneration provisions in the Grant Agreement
15 Additional remuneration- legal provision -provided by Article 6.2.A.1 of the Grant Agreement (GA) Beneficiaries that are non-profit legal entities may also declare as personnel costs additional remuneration for personnel assigned to the action (including payments on the basis of supplementary contracts regardless of their nature), if: (a) it is part of the beneficiary s usual remuneration practices and is paid in a consistent manner whenever the same kind of work or expertise is required; (b) the criteria used to calculate the supplementary payments are objective and generally applied by the beneficiary, regardless of the source of funding used.
16 Actual personnel costs: structure TOTAL REMUNERATION Standard remuneration Additional remuneration Basic Salary "Mandatory extras" Fixed by law or by contract to remunerate the main activity of the employee Payment not subject to discretion by the employer Not linked to a specific project Examples: 13 th month, hazardous work allowance, etc. Only eligible for nonprofit legal entities Subject to specific eligibility criteria Maybe triggered by the participation in a specific project Examples: bonus for participating in a project; additional contract for specific tasks with a higher salary Hourly rate
17 Additional remuneration-conditions fulfils the general conditions for costs to be eligible is paid on top of the employee's usual remuneration for additional work or specific expertise which results in a higher hourly rate Differences additional remuneration-basic remuneration - hourly rate- higher indicates additional remuneration - type of work or expertise- different/ additional indicates additional remuneration is part of the beneficiary's usual remuneration practices is calculated on the basis of criteria that are objective and generally applied is not applied only for EU actions
18 Additional remuneration-amount a full- time employee working exclusively for the action during the entire year- up to per year -it doesn't need to be the same for all the persons working in the same project a non-full-time employee working exclusively on the action- pro-rata amount of EUR an employee not working exclusively on the action a pro-rata amount of EUR depending on the hours worked for the action EUR8000 Annual productive hours hours worked by the employee for the action during the year Addition remuneration includes extra salary but also social security contributions, taxes and other costs
19 Additional remuneration- annual productive hours 1720 hours Individual annual productive hours Formula: annual workable hours + overtime - absences Standard annual productive hours According to the beneficiary's usual accounting practices; Minimum threshold: annual productive hours 90 % of the standard workable hours
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