LAW OF THE AZERBAIJAN REPUBLIC

of December 27, 2001 No. 245-IIQ

About public procurements

This Law determines economic, legal and organizational basis of public procurements in the Azerbaijan Republic, establishes the principles and rules of effective and economical use of public funds during purchases, creation of equal competitive environment for all consignors (contractors) on the basis of tender and publicity.

Section I. General provisions

Article 1. Scope of the Law

1.1. This Law, taking into account provisions of articles 1.2-1.7 of this Law, extends to purchases of goods (works and services) made in the Azerbaijan Republic by the state companies and the organizations (organizations), the companies and the organizations which share of the state in authorized fund constitutes 30 and more percent, at the expense of public funds, the credits and grants received by the state and under guarantee of the state.

1.2. Purchase by the state companies and organizations (organizations) of food products (except for the grain which is purchased for the state grain fund) in centralized procedure at the expense of means of the government budget is performed according to the procedure, established by relevant organ of the executive authority.

1.4. The funds provided in the government budget for purchase of the office supplies connected with clerical work in Trial Courts are transferred directly into bank accounts of judges. Procedure for money transfer, provided in the government budget, it is direct on bank accounts of judges in connection with clerical work in Trial Courts, it is determined by body (organization) determined by relevant organ of the executive authority.

1.5. Provisions of this Law do not extend to purchase of goods (works and services) within activities in the Alyatsky free economic zone, and the relations in this area are governed according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".

1.6. Purchase of goods (works, services) by the body (structure) established by the relevant organ of the executive authority which is the organizer of lottery and (or) the operator of sports totalizator and transferred to the control based on the agreement during the term of the agreement of management is performed according to the procedure, established by the agreement of management.

1.7. This Law does not extend to the procurements conducted by the Central Bank of the Azerbaijan Republic in cases, the stipulated in Article 65-1 Law of the Azerbaijan Republic "About the Central Bank of the Azerbaijan Republic".

Article 2. Basic concepts

The concepts used in this Law express the following values:

* purchase - purchase of goods (works and services) as the methods established by this Law at the expense of public funds;

* the purchasing organization - the buying goods (works and services) the state companies and the organizations (organization), the company and the organization which share of the state in authorized fund constitutes 30 and more percent at the expense of public funds;

* the tender - the competition held for the purpose of selection of the most effective of provided on paper or electronically by applicants of offers on agreement performance about purchase;

* goods - products having certain quantitative and high-quality features, the products which are in strong, liquid or gaseous state, the equipment, raw materials, and also electrical energy;

* works - designing, construction, reconstruction, demolition, repair of the building, construction or object, including preparation of the building site, installation of the equipment, construction, mounting, finishing or earthwork, and also drilling, geodetic, scientific and design, exploration, publishing and printing operations connected with it, works on shootings from the companion, to seismic researches and other works performed based on the purchase agreement;

* services - any subject of purchase, except goods and works;

* the consignor (contractor) - the potential or real agreement party about purchase, concluded with the purchasing organization;

* the applicant - the legal entities or physical persons or consolidation of legal entities which provided the offer on the basis of conditions, brought payment for participation in the tender;

* guarantee of the tender offer - guarantee of obligations according to the tender offer assumed by the applicant before the purchasing organization. The bank guarantee, the letter of credit, securities, cash, deposits and other financial assets can serve as such guarantee;

* the tender commission - the temporary work group created by the purchasing organization and performing tender procedures from her name;

* packet of the main conditions of the tender - the document provided to applicants reflecting tender conditions of the purchasing organization;

* the purchase agreement - the document concluded between the purchasing organization and the winner (winners) of the tender and establishing obligations of the parties in connection with purchase of goods (works and services);

* performance guarantee of the purchase agreement - the obligation fulfillment guarantee according to the purchase agreement provided by the winner (winners) of the tender of the purchasing organization. The bank guarantee, the letter of credit, securities, cash, deposits and other financial assets can serve as such guarantee;

* the preferential amendment - the privilege applied by the purchasing organization to local consignors (contractors) according to articles 36.9 and 44.2 of this Law;

* public funds - the means of the government budget of the Azerbaijan Republic, the credits, grants, the foreign help received based on international agreements and the agreements, means of off-budget funds signed by the state the financed from the budget of the organization and other means carried by the legislation to public funds;

* the issuer - the financial structure guaranteeing the tender offer of the consignor (contractor), its obligation on agreement performance about purchase and other payment documents;

* the expected price of goods (works and services) - the average market price of goods (works and services) established by the purchasing organization to the announcement of the tender according to the existing normative legal documents;

* the single Internet portal of public procurements - the single Internet portal created by the body (organization) created by relevant organ of the executive authority and which activities are provided with the specified body where invitations about procedures of purchases and results of the specified procedures are published is conducted the unified register of purchase agreements and unreliable consignors (contractors) providing implementation of public procurements with electronic means, reflecting the legislation regulating public procurements and integrated into electronic information system of the body (organization) created by relevant organ of the executive authority;

* electronic procurement - the procurement procedure applied by the purchasing organization to selection of the won offer, which is given by means of the single Internet portal of public procurements in real time, providing automatic assessment of the offers provided by consignors (contractors);

* procurement plan - the document constituted by the purchasing organization, reflecting information on structure, amount, quantity and the size of goods (works and services) which will be purchased within one fiscal year according to this Law, the sequence of purchases and distribution on calendar year and placed in the single Internet portal of public procurements electronically;

* attraction of offers - the invitation to participate in the tender, the procedure of preliminary establishment of compliance of qualification, the procedure of requests for proposals or electronic procurement;

* collection for participation - the money paid by the consignor (contractor) for receipt of set of the main conditions of tender or conditions of request for quotation and for registration as the participant;

* request for quotation conditions - the document reflecting conditions of the quotation of the buying organization and represented to bidders.

Article 3. Legislation of the Azerbaijan Republic on public procurements

The relations connected with public procurements are regulated by this Law, other laws and regulatory legal acts of the Azerbaijan Republic.

Article 4. Relevant organ of the executive authority on public procurements

4.1. The relevant organ of the executive authority on public procurements performs state policy in the field of purchase at the expense of public funds of goods (works and services) and for this purpose:

4.1.1. takes part in creation and enhancement of the regulatory framework regulating public procurements in the Azerbaijan Republic. Prepares rules, instructions, other documents for public procurements and represents them for approval to relevant organs of the executive authority;

4.1.2. exercises control of legality of purchase on competitive basis at the expense of public funds of goods (works and services) and execution of agreements, considers matters of argument, in case of identification of violation of the law stops procurement procedures for a period of up to 7 banking days and if necessary brings up question of cancellation of results of the tender before the purchasing organization;

4.1.3. considers matters of argument in procedures of public procurement, in cases of violation of the law takes measures according to provisions of this Law;

4.1.4. gives to the purchasing organizations methodical and organizational help on the organization and carrying out public procurements, make recommendations, create rates on increase in professional level of specialists, holds seminars and conferences, prepares the corresponding educational and methodical materials;

4.1.5. establishes rules of creation of reports on public procurements, provides bringing to the public of the regulatory legal acts, documents and data regulating public procurements;

4.1.6. prepares and submits annual reports on public procurements in relevant organs of the executive authority;

4.1.7. creates the official website of public procurements (further - the official website) on which announcements of tenders for public procurements, requests for proposals, requests for quotation and data on their results are placed;

4.1.8. for use by the purchasing organizations, consignors (contractors) of the single Internet portal of public procurements gives them methodical help, gives consultations;

4.1.9. takes measures for preserving safety of the information resources which are available in the single Internet portal of public procurements.

4.2. In case of failure to carry out by officials and other ranking officers of executive body on public procurements of the service duties, they bear responsibility according to the relevant legislation.

Article 4-1. Planning of public procurements

4-1.1. The purchasing organization prepares and approves primary procurement plan the next year no later than October 15 of the current year and places it in the single Internet portal of public procurements. Primary procurement plan remains in force before approval of the government budget of the Azerbaijan Republic the next year.

4-1.2. During the subsequent 10 banking days after approval of the government budget of the Azerbaijan Republic the next year and receipts of budget indicators the purchasing organization does refining in primary procurement plan, approves the specified plan and places it in the single Internet portal of public procurements.

4-1.3. In the annual plan of purchases the following data are reflected:

4-1.3.1. name of the purchasing organization;

4-1.3.2. the name, amount, quantity and the size of goods (works and services) which will be purchased;

4-1.3.3. the sequence of purchases, distribution on calendar year and method of procurement;

4-1.3.4. the planned place of sending goods, works, rendering services and terms.

4-1.4. The purchasing organization on condition of not exceeding of once a month can make change to the plan of purchase. After decision making by the purchasing organization about modification of the plan of purchase during the subsequent 5 banking days information on it is placed in the single Internet portal of public procurements with indication of the legal basis which became the change reason.

4-1.5. Article 4-1.1 - 4-1.4 presents of the Law do not extend to the purchases which are carried out for needs of defense and homeland security.

4-1.6. The purchasing organization will organize procedures of purchases according to the approved plan of purchase. In case of urgent need in purchase of any goods (works and services) which are not included in the plan of purchase, the purchasing organization can conduct procurement of the specified goods (works and services) on condition of approval by the body (organization) created by relevant organ of the executive authority.

4-1.7. Placement of the plan of purchase in the single Internet portal of public procurements according to this Article does not mean attraction of offers, does not assign the obligation to attract offers to the purchasing organization, does not grant to consignors (contractors) any rights in this regard.

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