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The document ceased to be valid since  April 25, 2017 according to article 57 of the Law of the Republic of Armenia of  January 14, 2017 No. ZR-21

LAW OF THE REPUBLIC OF ARMENIA

of December 28, 2010 No. ZR-206

About purchases

(as amended on 28-05-2016)

Accepted by National Assembly of the Republic of Armenia on December 22, 2010

Section 1. General provisions

Article 1. Subject of regulation of the Law

This Law governs the relations connected with process of acquisition by customers of goods, works and services, establishes basic rights and obligations of the Parties of these relations.

Article 2. The basic concepts used in the Law

In this Law the following basic concepts are used:

1) customer:

and. the state bodies provided by the Constitution of the Republic of Armenia and the laws of the Republic of Armenia and local self-government, the public or local government offices,

. Central Bank of the Republic of Armenia,

century state or municipal non-profit organizations,

of the organization, the having more than fifty percent of share of the state or municipalities,

of consolidation (association) formed by the state or municipal or non-profit state or municipal organizations, or the organizations having more than fifty percent of share of the state or municipalities

e. the legal entities who received according to the procedure of donation of means from the state or municipality or the Central bank of the Republic of Armenia or the non-profit state or municipal organization, or the organizations having more than fifty percent of share of the state or municipalities - regarding the purchases made at the expense of the means received according to the procedure of donation

. public organizations;

2) public organizations:

and. the physical persons or legal entities included in the list approved by the Commission on regulation of public services of the Republic of Armenia which perform activities in the regulated sphere of public services,

. other organizations of the sphere of public services which on special or exclusive right perform established by this article one or more than one type of the related activity if purchase is made for the purpose of implementation of this type of the related activity,

century of the organization concerning which the state or municipality or the non-profit organization founded by the state or municipality, or the organization having more than fifty percent of share of the state or municipalities has the dominating impact. The circumstance of availability of the dominating impact is applied also in all those cases when the state or municipality or the non-profit organization founded by the state or municipality, or the organization having more than fifty percent of share of the state or municipalities can appoint more than a half of members of administrative authority, either governing body, or regulatory authority of the organization;

3) purchase - acquisition with payment by the customer of tangible and intangible assets (values) - all types of goods, works and services. In sense of this Law:

and. acquisition of service is also leasing;

. purchase also is:

- acquisition by the customer of goods, the works and services at the expense of means provided to legal entities according to the procedure of donation

- purchase of goods, works or services in the form of exchange,

- transactions between state and private sectors about partnership, including also transactions about trust management and concession;

4) the contract - the written bargain concluded for the purpose of performing purchase;

5) the framework agreement - the provisional agreement signed for the purpose of the conclusion of the contract;

6) the participant - person participating in process of purchases for the purpose of the conclusion of the contract (framework agreement) with the customer;

7) the selected participant - the participant (participants) to whom, (which) the customer suggests to sign the contract (framework agreement);

8) the invitation - terms offered to the participant for the purpose of the conclusion of the contract (framework agreement);

9) the request - the offer represented by the participant based on the invitation;

10) tender security - the means providing accomplishment of obligations assumed by the participant according to the request in the cases provided by this Law;

11) providing the contract - the means providing accomplishment of the contract obligations assumed by the selected participant (framework agreement) in the cases provided by this Law;

12) electronic auction - the process of representation of new reduced prices and (or) new not price offers repeating in case of performing purchases with use of electronic devices which follows provisional complete estimate of requests and allows to determine by methods (means) of automatic assessment the places taken by the participants who submitted requests, their sequence;

13) electronic means - electronic, including program and the hardware necessary for the purpose of the processings and data storage transferred, moved and received by means of cable, radio optical means or other electromagnetic means;

14) authorized body - the state body of the executive authority of the Republic of Armenia developing and performing policy of the Government of the Republic of Armenia in the field of management of public finances;

15) the Center of assistance to purchases - the legal entity performing the powers provided by this Law;

16) the bulletin - published by "Electronic Reference Book on Purchases" authorized body;

17) special or exclusive right - the right which follows from the competences which are taken away by competent authority according to regulation of legal regulation or administrative regulation which purpose is reference of the right to implementation of certain activities (including and the sphere of public services) to one organization or limited number of the organizations and which essentially limits possibility of other organizations on implementation of such activities;

18) purchase subject - the purchased goods, work or service;

19) the characteristic of subject of purchase - property of subject of purchase, condition of its acquisition and payment;

20) consulting services - services as a result of which rendering intangible assets (values) deprived of physical substance are created;

21) the consultant - person participating in process of purchases for the purpose of the conclusion with the customer of the agreement of rendering consulting services;

22) the selected consultant - the consultant (consultants) to whom, (which) the customer suggests to sign the agreement of rendering consulting services;

23) basic purchase unit - one million dram of the Republic of Armenia;

24) the related activity - the mentioned below types of activity performed in the sphere of public services, to the purchases made within which extends this Law. Treat them:

and. production of electrical and heat energy (including and their combined production), transfer (transportation) and distribution of electrical, heat energy and natural gas, implementation of services of the operator of systems of the sphere of power industry and natural gas, construction new or reconstruction of production capacities in the sphere of power industry and natural gas, construction of networks of transfer (transportation) or distribution in the sphere of power industry, power system and natural gas,

. supply with drinking, irrigating, industrial water, water disposal and sewage treatment,

century operation of public electronic network in the field of electronic communication,

of service in the field of mail service, rail transport and carrying out obligatory technical inspection of vehicles, subject to tariff regulation by the Commission on regulation of public services of the Republic of Armenia,

provision or operation of the networks provided (existing) for rendering public services in transport area. The network of rendering transport services is considered existing when conditions of its operation, including its subjects to servicing routes or the allocated capacity or frequency of servicing are established by competent state body, e. development of the geographical area:

- for the purpose of investigation or oil recovery, gas, coal or other solid fuel,

- for the purpose of provision of the airports or other terminals to persons performing transportation on air or to waterways;

25) procurement process - set of actions for implementation of the procedures, the rights and obligations provided concerning performing purchase by the legislation of the Republic of Armenia on purchases.

Article 3. Purpose and coverage of the Law

1. The purpose of this Law is providing in the course of purchases of cost in payment for as that:

1) acquisition for accomplishment of the powers of goods, works and services, necessary according to its needs, with equivalent payment allocated for the customer;

2) economical, effective and useful implementation of purchases and process of purchases.

2. For realization of the purpose provided by part of 1 this Article, process of purchases is based on the following principles:

1) the organization of process of purchases for the unified rules on the basis of competition, transparency, publicity and lack of discrimination;

2) expansion for the purpose of the conclusion of the contract of circle of participants and stimulation of the competition between them;

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