RESTRICTED
WORLD TRADE S/WPGR/W/11/Add.12
10December 1996
ORGANIZATION
(96-5158)
Working Party onGATS Rules Original: English
COMMUNICATION FROM THE REPUBLIC OFPOLAND
Response totheQuestionnaire onGovernment Procurement ofServices
Thefollowing communication isbeing circulated attherequest oftheRepublic ofPoland to
Members oftheWorking Party onGATS Rules.
_____________
I. EXISTING PROCUREMENT REGIMES
Definition
1. What isthedefinition ofgovernment procurement employed incompleting this
questionnaire?
"Public procurement" -means procuring construction, thedelivery ofgoods andperforming
services, financed fullyorpartially withpublic funds; (Art. 2(4)) TheActof10June1994
onPublic Procurement). "public funds" -means thefollowing source offunds:
a) funds fromthestatebudget orthebudgets ofself-government unitsthatareallocated
forordinary activity andcapital investment activity;
b) funds asdefined intheBudgetary Actas"extra budgetary funds";
c) funds guaranteed, secured orforwhich thecostofthecredit isco-financed bythestate
Treasury, thelocalself-governments oraunion ofself-governments;
d) funds granted asforeign aidunder international agreements, unless theagreement
requires different procedures forusing thefunds.
TheActapplies topublic procurements issued by:
1) stateunits andsupport services created bythestatebudgetary units (including the
ministries andcentral support offices);
2) units ofself-governments;
3) funds established bystateearmarks;
4) stateandmunicipal entities thatreceive anypublic funds andperform public utility
activities;
5) co-operatives, foundations andassociations totheextent thattheydispose ofpublic
funds.S/WPGR/W/11/Add.12
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ThePolish term "zamówienia publiczne" isadopted from thehistoric reference topublic
acquisitions. Theliteral translation is,public orders", butasdefined intheActonPublic
Procurement (Dz.U.No.76,Item344)itisintended tomean "public procurement".
Thedefinition of"public procurement" encompasses onlypurchasing activities. Itdoesnot
include selling government-owned property orgranting concessions orlicenses unless, within
thescope ofthese activities, thegovernment isactually purchasing goods, services or
construction.
Administrative structure
2. Howaregovernment procurement activities administered? Towhatextent areprocurement
activities centralized? Please specify theidentity ofanycentral procurement agencies and
theirrespective responsibilities.
ThePolish system ofpublic procurement isadecentralized system where theprocuring entities
areintheverycentre oftheprocess ofprocurement realization.
On1January 1995 acentral administration agency wascreated -theOffice ofPublic
Procurement, working directly under thePrime Minister. Itisapolicy making agency and
doesnotconduct anyprocurements except forit'sownneeds.
Thescope ofactivities oftheOffice includes:
- approving asprovided inArt.15theselection ofaprocedure forconducting apublic
procurement other thanthentheunlimited tendering procedure; establishing and
maintaining thelistofarbiters toreview theappeals filedinprocurement proceedings,
andpublicizing thelistofarbiters intheBulletin ofPublic Procurement;
- presenting anannual report totheCouncil ofMinisters concerning thefunctioning of
thepublic procurement system;
- disseminating, incoordination withappropriate Ministries, thegeneral conditions and
forms ofcontracts forpublic procurements, therules andstandard procedures for
conducting procurements andinformation related toconducting public procurements;
- preparing drafts ofActsandregulations concerning public procurement;
- recording andmaintaining thelistofpublic procurements, andcollecting information
about procurement planning, signed contracts, andperformance ofpublic contracts;
- preparingtrainingprograms,andconductingandencouragingtrainingconcerningpublic
procurements;
- cooperating withforeign entities onmatters concerning public procurement;
- issuing theofficial Bulletin ofPublic Procurement.S/WPGR/W/11/Add.12
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Laws andregulations inforce
3.(a) Please specify thelaws, regulations, rules, guidelines, decrees, decisions andother measures
governing government procurement. What isthescope oftheirapplication? Inparticular,
please describe anyexemptions thatexist. Please provide abrief summary ofthecontent
ofeachofthese measures.
Themain lawsconcerning thepublic procurement system inPoland include:
- TheActonPublic Procurement withtheimplementing ordinances andorders;
- TheBudgetary Act;
- TheHighest Chamber ofControl Act;
- TheProtection ofEconomic Turnover Act;
- TheFighting ofUnfair Competition Act.
(b) Does theprocurement regime distinguish between theprocurement ofgoods andservices?
Ifso,thenhowistheapplication ofrules determined incases ofjointprocurement involving
bothgoods andservices?
There arenoseparate procedures fortheprocurement ofgoods andservices.
Procurement procedures applied
4.(a) What procedures arefollowed intheprocurement process?
Article 13oftheActstates:
Public procurements shallheconducted according tothefollowing procedures:
1) unlimited tendering;
2) limited tendering;
3) two-stage tendering;
4) negotiations-with-retaining-competition;
5) request-for-quotation;
6) single-source procurement.
Thepreferred procedure forconducting public procurements isunlimited tendering (Art.14).
Procedures other thanunlimited tendering canbeusedonlyunder theconditions specified in
theAct.
(b) Under whatcircumstances aredifferent procedures used? Forinstance, ifthemethod used
depends onthevalue oftheprocurement, thethresholds should begiven.
Art.15oftheActstates:
1. Inpublic procurements valued lessthan20.000 ECU andinpublic procurements
financed withlessthan20.000 ECU inpublic funds, unlimited tendering procedures
arenotobligatory andthefollowing requirements ofthisActshall notapply: the
requirements related tothepublication ofannouncements intheBulletin ofPublic
Procurement, written procedures, official records ofproceedings, specification of
essential provision oftheprocurement, timeperiods anddeadlines, tender security
andprotests andappeals.S/WPGR/W/11/Add.12
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2. Iftheamount oftheprocurement exceeds 200.000ECU, theselection ofaprocurement
procedure other thanunlimited tendering requires approval bytheChairman ofthe
Office.
3. TheCouncil ofMinisters may, byordinance determine before 30September ofevery
year, theobligatory thresholds limits reference inparagraphs 1and2forthecoming
yearbeginning 1January.
Todetermine theappropriate procurement procedure, thisArticle (15)together withArt.71,
subparagraph 7divides procurements intofourgroups according totheestimated value of
procurement:
1) Procurements valued 1.000 ECU orless-single-source procedures arepermitted
(Art. 71).
2) Procurementsvaluedmorethan1.000ECUupto20.000ECU-simplifiedproceedings
oftheauthorized procedures arepermitted, onlybasic activities havetoberecorded
(Art.26), anduseofanyprocedure other thanunlimited tendering isdetermined by
theprocuring entity according totheconditions specified intheAct.
3) Procurements valued more than20.000 ECU andlessthan200.000 ECU -formal
procedures arerequired anduseofaprocedure other thanunlimited tendering is
determined bytheprocuring entity according totheconditions specified intheAct.
4) Procurements valued more than200.000 ECU -formal procedures arerequired and
useofaprocedure other thanunlimited tendering requires approval oftheChairman
oftheOffice ofPublic Procurement.
(c) What arethetimelimits forsubmission ofbids?
Thedeadline setbytheprocuring entity forsubmission oftenders shallnotbeshorter than:
1) inanunlimited tendering
- 6weeks aftertheannouncing ofthetendering;
2) inalimited tendering
- 4weeks afterthedateofsending theinvitation fortenders.
Injustified cases andonmotion oftheprocuring entity, theChairman oftheOffice ofPublic
Procurement mayagree toestablish shorter deadlines.
Allrequired minimum deadlines mustbecounted fromthedateoftheofficial tender publication
intheBulletin ofPublic Procurement.S/WPGR/W/11/Add.12
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Publicity forinviting tenders
5.(a) How areintended procurements publicised? Areinvitations totender published? Ifso,
where, andinwhat languages?
Theannouncements ofpublic procurements governed bytheActonPublic Procurement are
published intheBulletin ofPublic Procurement issued bytheChairman oftheOffice ofPublic
Procurement. TheBulletin ispublished 5-6daysaweek. Ithasbeenpublished nowfor17
months. Theannouncements arepublished inPolish butinespecially justified circumstances,
theChairman oftheOffice ofPublic Procurement mayagree tothepreparation ofthetender,
including theannouncement inalanguage commonly usedininternational trade.
Announcements inthemedia aretotally tothediscretion oftheprocuring media. Such
announcements maybereleased firstaftertheofficial announcements intheBulletin.
(b) Dotheextent andform ofpublicity differ according totendering procedures applied and/or
onthevalue ofprocurement?
Announcements ofallunlimited tenders, irrespective ofthevalue ofprocurement, must be
posted inapublic place atthesiteoftheprocuring entity. Forprocurements valued over
20.000 ECU, theannouncements alsomustbepublished intheBulletin ofPublic Procurement.
(c) What details oftheintended procurement arenormally published? Isthere aminimum set
ofinformation thatisrequired tobepublished? Ifso,please specify.
Asstated inArt.20oftheAct,theannouncement shallcontain atminimum:
1) thename andaddress oftheprocuring entity;
2) thequantity, amount andcategory ofdeliveries tobeprocured, orservices tobe
supplied, orthecategory, range andlocation ofconstruction;
3) thedesired orrequired timeperiod anddeadline forperforming thepublic procurement;
4) theinformation about conditions required ofsuppliers orcontractors;
5) astatement oftheapplicability ofnational preferences;
6) theinstructions forobtaining thedocuments specifying theessential provisions ofthe
procurement andtheprice, ifany,forthese documents;
7) theplace, thetimeperiod andthedeadline forthesubmission oftenders;
8) theplace andthedeadline foropening deadlines;
9) theamount andform ofthetender security;
10) contact person attheprocuring entity.
(d) Arethere anycharges forobtaining thefullsetoftender documents? Ifso,please specify
anddescribe howthese charges areset?
Theprice thatthere maybecharged forthedocuments specifying theessential provisions of
aprocurement shallcover onlythecostofprinting andsending thedocuments.
(e) Areelectronic means usedtoadvertise procurement opportunities? What isthenature of
systems thatareinplace? Aredifferent tendering provisions applied tocontracts advertised
inthismanner? Ifso,please describe.
TheBulletin ofPublic Procurement isalsoaccessible bytheInternet attheaddress
http;//www.urm.gov.pl/uzp/indexuzp.html .S/WPGR/W/11/Add.12
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Requirements laiddown forpossible suppliers
6.(a) Arethere registration, residence orother requirements forpotential suppliers?
&
(b) What isthenature ofanyconditions forparticipation required from suppliers -such as
financial guarantees, commercial standing andtechnical qualifications? Dotheconditions
ofparticipation varyaccording tothenature ofthetender process and/or thevalue ofthe
intended procurement?
Toparticipate inapublic procurement other thanaproceeding conducted byrequest.for-
quotation, every supplier orcontractor hastodeclare that:
1) ithasthelegalcapacity toenterintolegaltransactions according tolegalrequirements;
2) ithassatisfied thelegalrequirements essential toperform thedefined workoractivities,
ifthese legalrequirements areestablished byanAct;
3) itpossesses theknowledge, experience, financial resources, technical competence,
personnel andallnecessary capacity toperform theprocurement;
4) itisinafinancial situation toensure performance oftheprocurement;
5) itisnotexcluded from theprocurement proceeding under theprovisions oftheAct;
Forprocurements valued upto20.000 ECU, theprocuring entity may, butisnotrequired
to,request documentation supporting thedeclarations. Forprocurements value over
200.000 ECU, theprocuring must request supporting documentation.
(c) Dothere existlistsofapproved suppliers? Ifso,what aretheprocedures forchecking the
capability offirms applying forinclusion ontenderers 'mailing lists? Arelistsofapproved
suppliers, ifany,regularly reviewed/updated?
Nosuchofficial listsexistasofnow.
Criteria forassessing bidsandawarding contracts
7.(a) What criteria aretaken intoaccount intheaward oftenders? Arecriteria foraward of
contracts made available inadvance topotential suppliers?
Theprocuring entity must determine theselection criteria appropriate fortheparticular
procurement andconsistent withtheprinciples oftheAct,generally defined inthedefinition
of"best offer". Thecriteria must bedefined inthespecification oftheessential provisions
oftheprocurement.Selectionmustbemadeinaccordancewiththeannouncedevaluationcriteria
andrelative importance ofthecriteria. Each offerisevaluated andpoints assigned foreach
evaluation factor.
(b) Isprocurement subject toanyoffset provisions, suchaslocal content, technology transfer
orcountertrade requirements?
Concerning localcontent seeanswer toquestion 9.Otherwise no.
(c) Ispreference given toanyparticular enterprises orgroup ofenterprises? Ifso,please specify.
No.S/WPGR/W/11/Add.12
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(d) Dotheprocurement criteria differ according tosector orregion oftheeconomy?
No.
(e) What isthemargin ofchoice ordiscretion allowed tothepurchasing authority? What does
theextent, ifany,ofdiscretion allowed depend upon?
Under procurements valued under 200.000 ECU theuseofaprocedure other thanunlimited
tendering isdetermined bytheprocuring entity. Theprocuring entity always determines the
technical specification andaward criteria.
Disclosure ofbidsreceived andcontracts awarded
8.(a) How aretenders received, registered andopened?
Thespecification oftheessential provisions oftheprocurement should contain adefinite
description oftheplace, thetimeperiod andthedeadline forthesubmission oftenders. During
apublic procurement proceeding, theprocuring entity shallprepare anofficial record ofthe
procurement proceedings thatshallcontain information mentioned inArt.25.Thetenders
shallbeopened attheplace andthetimespecified inannouncement ofthetendering. The
offerors maybepresent attheopening ofthetenders. Thename andaddress ofeachofferor
whose tender isopened, aswellastheprice ofeachtender shallbeannounced immediately
tothose persons present attheopening ofthetenders andrecorded immediately intheofficial
record ofthetendering proceeding
(b) Areentities required topublish details ofthecontracts awarded and/or notify unsuccessful
tenderers?
After theselection ofanoffertheprocuring entity gives prompt notice oftheselection toother
offerors, identifying thename andseatofthesuccessful offeror andtheprice ofitstender.
Anannouncement withtheabove information isalsopublished intheBulletin ofPublic
Procurement.
(c) Areentities required topublish, orprovide tounsuccessful bidders, pertinent reasons why
theirbidwasrejected?
No.
Treatment granted todomestic andforeign services and/or suppliers
9. What laws, regulations, procedures orpractices accord domestic services and/or suppliers
treatment more favourable thanthataccorded toforeign services and/or suppliers, oraccord
services and/or suppliers ofaMember more favourable treatment thanthose ofanother
Member? Please specify how, ifatall,more favourable treatment isaccorded. Please also
specify theworking definition of"domestic" inrelation todomestic services andsuppliers.
Asstated inArt.18.1,oftheActonPublic Procurement "domestic aswellasforeign suppliers
andcontractors shallbeabletoparticipate inprocurement proceedings onequal basisaccording
totheprovisions ofthisAct".S/WPGR/W/11/Add.12
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Thedefinition of"domestic suppliers andcontractors" -means natural persons residing in
Poland, andlegalpersons andentities established under Polish lawwithout legalpersonality
thathavetheirsiteinPoland (Art. 2.6).
Under theterms ofArt.18,acompany withtheparticipation offoreign capital established
under therules ofthePolish lawof14June1991 mayalsoqualify asa"domestic supplier
ofcontractor ".
These twoArticles (2.6and18)define theelibility requirements fornational preferences when
applied inapublic procurement proceeding.
Ifthevalue oftheprocurement doesnotexceed theamount referred inArt.15.1,(seeanswer
toquestion 4(b)ofthisquestionnaire) theprocuring entity maylimit participation ina
procurement proceeding solely todomestic suppliers andcontractors, andforeign suppliers
orcontractors thathaveabranch orarepresentative office inPoland (Art. 18.2.).
When applying national preferences inaprocurement proceeding, theprocuring entity must
inform thesuppliers andcontractors about thenational preference when itstarts theprocurement
procedure. Thisdeclaration cannot bechanged thereafter.
TheChairman oftheOffice ofPublic Procurement maywaive theapplication ofnational
preferences.
Thespecific rulesapplying tothenational preferences inpublic procurement proceedings are
specified intheOrdinance onapplying domestic preferences issued bytheCouncil ofMinisters
on28December 1994 anditincludes:
- thefollowing price calculations isused atthemoment when applying national
preferences inservices -20%;
- inprocurement ofservices itisalsoobligatory toapply domestic preferences bymeans
ofusing atleast50% ofthevalue ofdomestic rawmaterials andproducts inthe
performance ofaprocurement.
Procedures forhearing andreviewing complaints/appeals
10. What, ifany,aretheprocedures available forparties, domestic andforeign, tolodge
complaints against theaward ofacontract? Please provide details.
Theprocedure starts atthemoment theinterested supplier orcontractor submits awritten protest
totheprocuring entity. Upon resolution orrejection oftheprotest orinthecaseoffailure
toresolve theprotest induetime(seven daysfrom thedayoffiling), theinterested supplier
orcontractor mayfileanappeal withtheChairman oftheOffice ofPublic Procurement.
Oneoftheprincipal rulesofappeals proceedings isspeed (thepanel ofthree arbiters reviews
theappeal within 14days). Thecostsoftheappeal proceedings aretobecovered bytheparty
defined inthesentence. Anappeal isreviewed byapanel ofthree arbiters selected fromthe
listofarbiters maintained bytheChairman oftheOffice. Oneofthearbiters isselected by
thesupplier orcontractor whohasfiledtheappeal, oneisselected bytheprocuring entity and
onebytheChairman oftheOffice. Ifaparty doesnotselect anarbiter theChairman willS/WPGR/W/11/Add.12
Page9
doso.TheChairman appoints thechairman ofthepanel ofarbiters. Thearbiters areneutral
anddonotrepresent theinterests ofthenominating party.
Asaresult ofthereview thepanel shalluphold orreject theappeal andassess thecostofthe
proceedings. When upholding anappeal, thepanel ofarbiters mayorder theprocuring entity
todoorredoanaction, ordeclare anaction invalid except theaction ofsigning thepublic
procurement contract, orcancel thepublic procurement proceeding. Thepanel maynot
discontinue theappeal orallow anagreement between theparties. Totheappeals proceedings
theActsoftheconciliatory courts established intheCivil Procedure Code areapplied. Both
sides oftheappeals procedure may, within amonth from thedelivery ofthesentence, filea
complaint toapublic court forannulling thesentence ofthearbitration panel.
II. MEMBERSHIP OFPLURILATERAL, REGIONAL AND BILATERAL AGREEMENTS
11. IstheMember party toanyplurilateral, regional and/or bilateral agreements withprovisions
ongovernment procurement? Ifso,please describe therelevant provisions.
A. Poland hassigned theEurope Agreement establishing anassociation between theRepublic of
Poland andtheEuropean Communities.
Article 67states:
1. TheContracting Parties consider theopening upoftheaward ofpublic contracts on
thebasisofthenon-discrimination andreciprocity, inparticular intheGATT context,
tobeadesirable objective.
2. Polish companies asdefined inArticle 48,shallbegranted access tocontract award
procedures intheCommunity pursuant toCommunity procurement rules under a
treatment nolessfavourable thanthataccorded toCommunity companies asofentry
intoforce ofthisAgreement.
Community companies asdefined inArticle 48shall begranted contract award
procedures inPoland under nolessfavourable thanthataccorded toPolish companies
atthelatest attheendofthetransitional period referred toinArticle 6.
Community companies established inPoland under theprovisions ofChapter IIofTitle
IVshall have, upon entry intoforce oftheAgreement, access tocontract award
procedures under atreatment nolessfavourable thanthataccorded toPolish companies.
TheAssociation Committee shallperiodically examine thepossibility forPoland to
introduce access toaward procedures inPoland forallCommunity companies prior
totheendofthetransitional period.
3. Asregards establishment, operations, supply ofservices between theCommunity and
Poland, aswellasemployment andmovement oflabour linked tofulfilment ofpublic
contracts, theprovisions ofArticles 37to58areapplicable.S/WPGR/W/11/Add.12
Page10
B. Poland isaparty oftheAgreement between theEFTA states andtheRepublic ofPoland.
Article 16states:
1. TheStates Parties tothisAgreement consider theeffective liberalization oftheir
respective public procurement markets asadesirable andimportant objective ofthis
Agreement.
2. Asoftheentity intoforce ofthisAgreement, theEFTA States shall grant Polish
companies access tocontract award procedures ontheirrespective public procurement
markets according totheAgreement onGovernment Procurement of12April 1979,
asamended byaProtocol ofa2February 1987, negotiated under theauspices ofthe
General Agreement onTariffs andTrade. Poland shalltakeinaccount therestructuring
anddevelopment process ofitseconomy, gradually ensure thatcompanies from the
EFTA States haveaccess onthesame principles tocontract award procedures onits
public procurement market.
3. Assoonaspossible aftertheentry intoforce oftheAgreement, theStates Parties to
thisAgreementshallprogressivelydevelopandadjusttherules,conditionsandpractices
governing theparticipation inpublic procurement contracts, sotoensure freeaccess
andtransparency, andthatthere isnodiscrimination between thepotential suppliers
from theStates Parties tothisAgreement. After aperiod ofdecreasing asymmetry
infavour ofPoland intheirrelations, afullbalance ofrights andobligations between
theStates Parties tothisAgreement shallbeestablished notlaterthanattheendof
thetransitional period.
4. TheJointCommittee shallagree orrecommend, asappropriate, thepractical moralities
forthisdevelopment including, interalia,scope, timetable andrules tobeapplied,
anddesignation ofentities awarding public procurement contracts, thatispublic
authorities,publicundertakingsandprivateundertakingswhichhavebeengrantedspecial
orexecutive rights.
5. TheStates Parties concerned shallendeavour toaccede totherelevant Agreements
negotiated under theauspices oftheGeneral Agreement onTariffs andTrade.
C. Poland isaparty oftheCentral European FreeTrade Agreement.
Article 24states:
1. TheParties consider theliberalization oftheirrespective government procurement
markets asanobjective ofthisAgreement.
2. TheParties shallprogressively develop theirrespective regulations forgovernment
procurement withaviewtograntsuppliers ofotherParties bytheendofthetransitional
period referred toArticle IofthisAgreement, atthelatest, access tocontract award
procedures ontheir respective government procurement markets according tothe
provisions oftheGATT Agreement onGovernment Procurement of12April 1979,
asamended byaProtocol ofAmendments of2February 1987.
3. TheJoint Committee shallexamine developments related totheachievement ofthe
objectives ofthisArticle andmayrecommend practical modalities ofimplementingS/WPGR/W/11/Add.12
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theprovisions ofparagraph ofthisArticle soastoensure freeaccess, transparency
andfullbalance ofrights andobligations.
4. During theexamination referred toinparagraph 3inthisArticle, theJointCommittee
mayconsider, especially inthelightofdevelopments inthisareaininternational
relations, thepossibility ofextending thecoverage and/or thedegree ofthemarket
opening provided forinparagraph 2.
5. TheParties shallendeavour toaccede totherelevant Agreements negotiated under
theauspices oftheGATT.
III. ECONOMIC IMPORTANCE OFSERVICES PROCUREMENT
12.(a) Please provide statistics (ifavailable) onthenumber andvalue ofservices procurements
- onbothanaggregate andsectoral basis;
- byorigin ofservices andsuppliers.
Nosuchstatistics have, asofnow, beencompleted.
(b) Please provide statistics (ifavailable) onthe
- share ofservices procurement intotalprocurement;
- share ofprocurement ofeachservice intotaldomestic output oftheservice;
- share ofprocurement ofeachservice intotaldomestic consumption oftheservice.
Total domestic consumption isdefined asthesumofpublic andprivate consumption orthe
sumofdomestic output andnetimports (i.e.imports minus exports) oftheservice inquestion.
Nosuchstatistics have, asofnow, beencompleted.