LAW  
OF THE REPUBLIC OF ARMENIA  
 
Adopted on 16 December 2016  
 
ON PROCUREMENT  
 
SECTION 1  
GENERAL PROVISIONS  
 
Article 1.  Subject matter of the Law  
1. This Law shall regulate the relations pertaining to the process of acquisition of goods, works and 
services by contracting authorities, define principal rights and obligations of parties to these relations.  
 
Article 2.  Main concepts used in the Law  
1. The following main concepts shall be used in this Law:  
(1) “contracting  authority” means:  
a. public administration and local self -government bodies, state or community institutions 
provided for by the Constitution of the Republic of Armenia and laws of the  Republic of 
Armenia;  
b. Central Bank of the Republic of Armenia;  
c. state or community non-commercial organisa tions;  
d. organisations with more than 50% of state or community shares;  
e. foundations established or associations (unions) formed by the state or community, or 
state or community non-commercial organisation, or organisations  with more than 50% of 
state o r community shares;  2 f. legal persons having received means in the form of donation or grant from the  state or 
community, or from state or community non-commercial organisations, or organisations  
with more than 50% of state or community shares — as regards procurement carried out at 
the expense of means received in the form of donation or grant;  
g. foundations  restructured through reorganisation of state or community  
non-commercial organisations or organisations  with  more than 50% of state or community 
shar es; 
h. public organisations;  
(2) “public  organisations”  means : 
a. persons included in the list approved by the Public Services Regulatory Commission of the 
Republic of Armenia, who carry out activities in the regulated field of public services, with 
the ex ception of persons who have been included in the list referred to in this paragraph 
due to holding a dominant position in respect of services provided within the framework of 
operation of the public network in the electronic communication sector;  
b. other organisations operating in the field of public services which, based on a special or 
exclusive right, implement one or more types of relevant activities defined by this Article, 
where procurement is carried out for the purpose of implementing the  given typ e of 
relevant activity;  
(3) “procurement ” means acquisition, leasing of all types of goods, works and services — upon  
reimbursement by contracting authority — through conclusion of a contract with the selected bidder, 
acquisition of goods, works and servic es at the expense of means allocated to legal persons by 
contracting authority in the form of donation, acquisition of goods, works and services by barter, as well 
as granting of rights to a private sector partner within the framework of public -private partnership 
transactions, including transactions on trust management and concession;  
(4) “contract ” means a written transaction concluded for the purpose of carrying out procurement;  
(5) “bidder ” means a person participating in the procurement process for the  purpose of concluding 
a contract with the contracting authority;  
(6) “selected  bidder ” means a bidder (bidders) to whom the contracting authority offers to conclude 
a contract;  
(7) “invitation ” means terms offered to the bidder for the purpose of concluding a  contract;  3 (8) “bid” means a proposal submitted by the bidder based on the invitation;  
(9) “bid security ” means a measure securing fulfilment of the obligations assumed by the bidder 
under the bid in cases provided for by this Law;  
(10)  “contract  secur ity” means a measure securing fulfilment of the obligations being assumed by the 
selected bidder under the contract in cases provided for by this Law;  
(11) “electronic auction ” means the process of presenting — with the use of electronic means — new 
prices, revised downwards, enabling by using automatic evaluation methods (means) to rank the 
bidders having submitted bids as per their position, that is,  their sequential order;  
(12)  “electronic means ” means electronic equipment including software and hardware  necessary for 
the processing and storage of data which is transmitted, conveyed and received by wire, by radio, by 
optical means or by other electromagnetic means, as well as for the organisation of procurement procedures 
by electronic means;  
(13)  “author ised  body ” means a state body of the executive power of the Republic of Armenia, which 
develops and implements the policy of the Government of the  Republic of Armenia in the field of public 
financial management;  
(14)  “bulletin ” means website at "www.procur ement.am" for publishing the  information subject to 
publication as provided for by this Law;  
(15)  “special or exclusive right ” means a right arising from competences granted by  a competent 
body upon a legal or administrative act, the aim of which is to vest the  right of implementing certain 
activities (including in the field of public services) with one or a limited number of organisations and 
which substantially limits the  possibility of other organisations to implement such activities. Rights that are 
granted as a result of a public tender and granting whereof is based on non- discriminatory standards shall not 
be considered as a special or exclusive right, except for cases when the right granted as a result of a 
public tender is considered as exclusive as prescribed by law;  
(16)  “subject  of procurement ” means goods, works or services to be purchased;  
(17)  “description  of the subject of procurement ” means characteristics of the  subject of 
procurement, terms of acquisition and payment thereof;  
(18)  “consultan cy services ” means services, the provision whereof leads to the  creation of intangible 
assets (values) lacking physical substance;  4 (19)  “consultant ” means a person participating in the procurement process for the  purpose of 
concluding a contract for consul tancy services with the contracting authority ; 
(20)  “selected  consultant ” means a consultant (consultants) to whom the contracting authority offers 
to conclude a contract for consultancy services;  
(21)  “procurement  base unit ” means an amount equal to one m illion drams of the  Republic of 
Armenia;  
(22)  “relevant activities ” means the following types of activities being implemented in the field of 
public services, and this Law shall apply to procurement carried out within the framework thereof. Those 
types of activities are  the following : 
a. generation of electric and thermal energy (including cogeneration), the  transmission 
(transportation) and distribution of electric, thermal energy and natural gas, the provision 
of system operator services for electric powe r and natural gas supply, the construction of 
new production capacities in the electric and thermal energy industry or renovation thereof, 
the construction of transmission (transportation) or distribution networks in the electric 
and thermal energy or natural gas industry;  
b. supply of drinking, irrigation and industrial water, water disposal and waste water 
treatment;  
c. operation of public network in the field of electronic communication;  
d. services subject to tariff regulation by the Public Services Reg ulatory Commission of the 
Republic of Armenia in the fields of postal communication,  mandatory technical inspection  
of railway transport and vehicles;  
e. provision or operation of (existing) networks intended for provision of public services in the 
field o f transport. A network for provision of transport services shall be considered as 
existing, where the operation conditions including the routes under maintenance, the 
capacity to be provided or the frequency of maintenance are established by a competent 
state body;  
f. exploitation of a geographical area:  
- for the purpose of prospecting for or extracting oil, gas, coal or other solid fuels;  
- for the purpose of providing airports or other terminal facilities to carriers by air or 
waterways;  5 (23)  “procuremen t process ” means a set of actions aimed at implementing the  procurement 
procedures, exercising rights and obligations provided for by the  legislation of the Republic of Armenia 
on procurement, with the view of carrying out procurement, including planning of procurement, approval 
of the description of the subject of procurement, implementation and management of the contract;  
(24)  “procurement  price ” means the estimated price calculated as prescribed by the  Government of 
the Republic of Armenia with the view of acquiring goods, works, and services.  
 
Article 3.  Objective , principles and scope of the Law  
1. The objective  of this Law is to ensur e value for money  in the procurement process, namely:  
(1) acquisition of goods, works and services meeting the needs re quired for exercising the powers 
vested in the contracting authority, with an adequate compensation;  
(2) cost-effective, efficient and benefit -based conduct of procurement and procurement process.  
2. The procurement process shall be based on the following principles:  
(1) organisation  of the procurement process based on uniform rules of competition, transparency, 
proportionality, publicity and non -discrimination;  
(2) enlargement  of the circle of bidders and promotion of competition among them for the purpose  of 
concluding a contract;  
(3) equality  of rights for every person to participate in the procurement process, irrespective of the 
fact of being a foreign natural person, an organisation or a stateless person.  
3. Within the meaning of this Law, procurement shall be considered to be carried out outside the 
territory of the Republic of Armenia, where the contract is concluded and goods, works or services under 
the contract are acquired and used outside the  territory of the Republic of Armenia.  
4. This Law shall not apply to the following types of transactions:  
(1) employment  contracts;  
(2) acquisition  of services rendered by certain persons provided for by the decisions of officials 
carrying out criminal, administrative or judicial proceedings in cases provided  for by law;  
(3) transactions  related to trust management of securities.  
 6 Article 4.  Legislation of the Republic of Armenia on procurement  
1. The legislation of the Republic of Armenia on procurement shall comprise the  Civil Code of the 
Republic of Armenia, this Law and other legal acts. Other legal acts on procurement shall also be 
published in the Official Bulletin . 
 
Article 5.  Other legal acts adopted by the Government of the  
Republic of Armenia  
1. For the purpose of ensuring achievement of the object ive and fulfilment of the  requirements of 
this Law, the Government of the Republic of Armenia shall approve:  
(1) the procedure for carrying out procurement outside the territory of the  Republic of 
Armenia ; 
(2) the procedure for carrying out p rocurement by electronic means;  
(3) the procedure for holding an electronic auction;  
(4) the procedure for procurement planning, approval of descriptions of a subject of procurement, 
preliminary control over procurement, implementation, management of contracts and financing thereof;  
(5) the types of transactions within public -private partnership, requirements for descriptions of such 
transactions, as well as the procedure for drafting and approval of descriptions;  
(6) the procedure for application of procurement procedur es provided for by this Law and 
peculiarities thereof;  
(7) the procedure for formation and functioning of the evaluation commission;  
(8) the main terms of the invitation and the contract;  
(9) the procurement plan implemented at the expense of the funds of the State Budget;  
(10)  the procedure for granting qualification to the procurement co -ordinators and conducting 
continuous professional trainings for them;  
(11)  the form of the procurement plan, the procedure for completion, approval and publication 
thereo f; 
(12)  the concept of affiliated persons and the cases of limitation for participation of such persons in 
the procurement procedures as provided for by this Law;  7 (13)  procedure for conducting random evaluation of descriptions of subjects of procurement and 
qualification criteria for bidders approved by the contracting authorities in terms of observing the 
requirements for ensuring competition and non -discrimination provided for by this Law;  
(14)  the list of goods, works and services acquired through electronic auction;  
(15)  the list of goods, works and services acquired in closed periodic tenders;  
(16)  the procedure for refunding the appeal fee;  
(17)  the requirements of bid security and contract security set for bidders by invitation, based on the 
forms of procurement.  
 
Article 6.  Eligibility for participation in procurement and qualification criteria  
1. Except for the cases of carrying out procurement under the procedure provided for by points 1, 3, 
4 and 5 of part 1 of Article 23 of this Law, the followin g persons shall not be eligible to participate in 
procurement:  
(1) those  who have been declared bankrupt through judicial procedure as of the  day of submitting 
the bid;  
(2) those who have overdue liabilities amounting up to one percent of the price proposa l submitted 
thereby for the part of incomes controlled by the tax authority as of the day of submitting the bid, but in 
the amount not exceeding fifty thousand drams of the Republic of Armenia;  
(3) those who have been convicted or a representative of the e xecutive body whereof has been 
convicted — within three years prior to submission of the bid — for financing of terrorism, child 
exploitation or a crime involving human trafficking, creation of a criminal association or participation 
therein, receiving a b ribe, giving a bribe or mediation in bribery and crimes against economic activity 
provided for by law, except for cases when the conviction is cancelled o r expired as prescribed by law;  
(4) an unappeal able  administrative act for anti-competitive agreement or abuse of dominant 
position in the field of procurement has been adapted  in relation thereto as prescribed by law, within 
one year prior to the day of submitting the bid;  
(5) those who have been included in the list of bidders ineligible to participate in the  procurement 
process, published according to the legislation of member states of the Eurasian Economic Union on 
procurement, as of  the day of submitting the bid;  8 (6) those  that  have been included in the list of bidders ineligible to participate in the  procurement 
process as of the day of submitting the bid. The bidders  shall be included in the indicated list, where:  
a. they have  violated the obligation provided for by a contract or assumed within the 
procurement process, which resulted in unilateral re scission of the contract by 
the contracting authority or termination of further participation of the bidder concerned in 
the procurement process;  
b. they have  refused to conclude a contract as a selected bidder;  
c. they have  refused further participation in the procurement process after the  opening of 
bids.  
2. The authorised body shall publish, including in Russian, the list referred to in point 6 of part 1 of 
this Article. The authorised body shall initiate a procedure — without  fee — with the person exami ning 
procurement -related appeals based on the information available on a bidder having been deprived of 
the right to participate in the  procurement process. Upon hearing the opinion of the given bidder, the  
person examin ing procurement -related appeals shal l within the time limit prescribed by part 6 of Article 
50 of this Law deliver a decision on including the bidder in the  list provided for by this Article. A person 
shall be included in the indicated list for a time limit of two years.  
3. The bidder must m eet the qualification criteria defined by the invitation. For fulfilment of 
obligations provided for by the contract, the bidder must have the  following criteria as required by the 
invitation:  
(1) compliance  of professional activities with activities provided for by the contract;  
(2) professional experience;  
(3) technical  resources;  
(4) financial  resources;  
(5) labour  resources.  
4. No criteria related to eligibility and qualification of the bidder for participation in the procurement 
may be prescribed , wher e such criteria:  
(1) are not provided for by this Article;  
(2) are discriminatory and restrict competition — unduly complicate or simplify possible participation 
in the procurement process;  9 (3) are inadequate, i.e. do not  directly derive from the necessity  to fulfil the obligations provided for 
by the contract.  
5. The bidder s may, within the scope of ensuring compliance of their data with the  qualification 
criteria provided for by the invitation, rely on the financial and technical resources of other person s, 
where necessary, based on legal relation prescribed by the corresponding contract.  
6. The criteria, procedure for evaluating the eligibility and qualification of the bidder for the 
participation in the procurement and the requirements set for the docume nts (information) required  for 
this purpose shall be defined by the invitation . 
 
Article 7.  Equal participation in procurement  
1. Any person, irrespective of the fact of being  a foreign natural person, an organisation or a 
stateless person, shall have equ al right to participate in the  procurement process.  
2. Participation of any person  (person s) — resident of any country  — in the procurement process 
may be restricted only by the Decision of the Government of the Republic of Armenia, where it is 
necessary to ensure the national security and defence of the Republic of Armenia.  
3. Where part 2 of this Article does not apply, the procurement or prequalification notice shall 
indicate that every person may submit bids, irrespective of the fact of being  a foreign natural person, an 
organisation or a stateless person; moreover, the  notice shall not be subject to modification. Where 
part 2 of this Article applies, an indication about such a restriction shall be made in the procurement or 
prequalification notice.  
4. Concurrent participation of organisations founded by affiliated persons and/or the same person  
(person s) or organisations with  more than 50% of shares owned by  the same person  (persons), in the 
same procurement process, prescribed by this Law and other lega l acts adopted on the basis thereof 
shall be prohibited, except for:  
(1) organisations founded by the state or communities;  
(2) cases  of participation defined by part 6 of Article 30 of this Law.  
5. Legal persons with shareholding of the cont racting author ity shall participate in the procurement 
with equal right with other bidders, and the shareholding of the  cont racting authority in those 10 organisations may not lead to defining and applying any privilege or any other favourable conditions for 
such persons.  
 
Article 8.  Documents and requisites thereof and e -procurement  
1. Record and storage of procurement -related information shall be ensured by drawing up relevant 
documents (including electronic documents).  
2. Where the invitation defines a requirement for p roviding information to the  bidder, the requisites 
of such information shall be simultaneously provided. Within the framework of functions defined by this 
Law, the communication may be carried out electronically; moreover:  
(1) the notice and the invitation  may be provided electronically;  
(2) the bids shall be submitted electronically in cases and in the manner prescribed by the 
invitation.  
3. The means to be used for electronic communication must be non-discriminatory, generally 
available for any potential bidder and interoperable with the means of information and communication 
technologies in general use.  
4. The following rules shall apply in a mandatory manner to the means for submission and receipt of 
bids electronically:  
(1) information on the specifications  (including the coding) necessary for submission of bids 
electronically shall be available for interested bidders;  
(2) the electronic devices designed for receipt of bids electronically must guarantee the integrity and 
confidentiality of the received d ata, ensuring at least the following conditions:  
a. the exact time and date for receipt of bids may be precisely  determined;  
b. prior to the time limits defined for transmission of data, no one may have access to the 
transmitted data;  
c. unauthorised acces s may be clearly detected where the prohibition on access to the 
transmitted data has been violated;  
d. the time limits for opening the data received may be defined or modified  only by authorised 
persons;  11 e. access to the received data in different phases of the procurement procedure is possible 
only by a simultaneous action of at least two authorised persons (systems) and only after 
the time limit defined according to this point;  
f. the data received and opened according to the requirements of this part mu st remain 
accessible only to persons authorised to get acquainted with them.  
5. The Government of the Republic of Armenia may set a fee for participation in procurement carried 
out electronically.  
 
Article 9.  Protocol  of procurement procedure and reports o n procurement  
1. Where the procurement price exceeds the procurement base unit, the  contracting authority shall 
draw up, within three working days following the day of concluding the contract or declaring the 
procurement procedure as not having taken plac e, protocol  of the procurement procedure. Based on the 
form of the procurement, the protocol  of the procurement procedure shall contain:  
(1) the name and registered office of the contracting authority;  
(2) the need  for procurement and the justification for selection of the  procurement form;  
(3) the invitation and the modifications made there in; 
(4) the enquiries received on the procurement and clarifications provided;  
(5) the data on the bidders having submitted bids:  name, registered office or place of residence, 
contacts;  
(6) the prices offered in the bids;  
(7) the bid evaluation procedure and the results of evaluation thereof;  
(8) in case of rejecting the bid  — the justification for the rejection;  
(9) the contract, and where no contract is concluded as a result of the procurement process — the 
justification thereof;  
(10)  in case of detecting unlawful actions within the framework of the procurement process — a brief 
description of such actions and measures undertaken in that respect;  
(11)  the appeals filed regarding  the procurement process and the decisions made in relation thereto;  
(12)  other  necessary information.  12 2. For the purpose of registering procurement transactions that entail obligations for the state, the 
contracting authority shall submit a report on the procurement process to the authorised body  within 
seven working days after concluding the procurement contract at the expense of funds from the State 
Budget, means allocated from the State Budget in the form of grant, including subvention, or decl aring 
the procurement process as not having taken place.  
3. Where the procurement price does not exceed the procurement base unit, the contracting 
authority shall ensure the availability and storage of relevant documents (or electronic documents) on 
the actions carried out for procurement purposes and on the grounds thereof.  
4. The contracting authority shall be obliged to provide the copy of the protocol  of the procurement 
procedure or a document constituting part thereof to any person within five working days after the 
receipt of such a request, except for procurement containing state secret.  
5. For the purpose of drawing up and publishing the annual procurement report, the contracting 
authorities shall submit reports to the authorised body. The annual pro curement report shall be 
published in the bulletin  by 1 May of the year following the year concerned.  
 
Article 10.  Decision on conclusion of contract, standstill period, conclusion and conditions of contract   
1. Prior to the conclusion of contract, the contracting authority shall publish in the  bulletin  a notice 
regarding the decision on conclusion of a contract no later than the first working day following the 
adoption of decision on the selected bidder. In  case of carrying out procurement containing stat e 
secret, the notice provided for by this part shall be sent to all bidders having submitted bids on the first 
working day following adoption of the decision on the selected bidder.  
2. The decision on conclusion of a contract shall contain brief information on evaluation of bids and 
reasons justifying the selection of the bidder, and a statement on a standstill period. The standstill 
period shall be the period between the day following the day of publishing the notice regarding the 
decision on conclusion of  a contract and the day the competence to conclude a contract by the 
contracting authority arises.  
3. In case of a tender and an electronic auction, the standstill period shall be at least 10 calendar 
days. For other procurement procedures, the standstill period shall be at least five calendar days.  
4. The standstill period provided for by part 3 of this Article shall not be applicable, where only one 
bidder has submitted a bid with whom a contract is concluded.  13 5. The contracting authority shall conclude t he contract, where no bidder appeals against the 
decision on conclusion of a contract to the person examin ing procurement -related appeals within a 
standstill period provided for by part 3 of this Article. The contract concluded before expiry of the 
standstill period or without publication of the notice on conclusion of a contract shall be null and void.  
6. Relationships of parties pertaining to procurement not regulated by the  legislation of the 
Republic of Armenia on procurement shall be regulated by the  contract.  
 
Article 11.  Publication of notice on concluded contract  
1. The contracting authority shall publish a notice on the concluded contract in the  bulletin  no later 
than the first working day following conclusion of the contract. In case of carrying out procurement 
containing state secret the notice provided for by this part shall be sent to all bidders having submitted 
bids on the first working day following conclusion of the contract.  
2. The notice on the concluded contract shall contain the following information:  
(1) the brief description of the subject of procurement;  
(2) the name and address of the contracting authority;  
(3) the date of conclusion of a contract;  
(4) the name  (name s) and registered office  (office s) or place  (place s) of residence of the selected 
bidder  (bidder s); 
(5) the price proposals submitted by bidders and the contract price;  
(6) the information on publications made according to this Law for the purpose of involving bidders (if 
applicable);  
(7) the procurement procedure used and the justification for the  selection thereof.  
 
Article 12.  Consequences of unlawful actions of bidders  
1. Where an unlawful act within the framework of the procurement process is detected , which is 
committed by the bidder or a representative of management body thereof , the contracting authority 
shall, on the day of its emergence, notify  law enforcement bodies about that in writing.  
 14 Article 13.  Descriptions of subject of procurement   
1. The descriptions of the subject of procurement must fully and clearly describe the characteristics 
of goods, works or services to be acquired and terms for the ir acquisition and payment, ruling out  any 
different interpretation. The  descriptions of the subject of procurement which also contain the contract 
price shall be included in the contract.  
2. The descriptions of the subject of procurement:  
(1) must ensure equal conditions of competition for potential bidders;  
(2) must not result in the creation of unjustified obstacles for competition in the  procurement 
process;  
(3) must be objectively justified and proportionate to the need for which the given procurement is 
carried out;  
(4) shall include the full and relevant description of specifications and technical data of the subject 
of procurement, and the bill of quantities, tim etable for works and other non-price conditions — in case 
of works.  
3. Depending on the peculiarity of the subject of procurement, the characteristics thereof shall, to 
the extent possible, include the clear description of the conditions for quality, stand ard, safety, 
conventional signs, terminology, packaging, unloading, dimension, designs for goods, works or services 
to be acquired, and other characteristics related to the subject of procurement based on international 
standards, and the standard technical  documents and standards effective in the Republic of Armenia, while in 
case of  absence thereof — on the temporary technical conditions.  
4. The characteristics of the subject of procurement may also be defined as performance -related or 
functional descriptions which must be submitted with sufficient accuracy, allowing bidders and the 
contracting authority to have a precise understanding of the subject of the contract.  
5. The characteristics of the subject of procurement shall not contain a requirement for or  a 
reference to any trademark, a firm name, a licence, a sketch or a model, country of origin or a specific 
source or a manufacturer, except for cases when it is impossible to describe the subject of procurement 
without them. In case of using references, t he descriptions of characteristics must contain the words "or 
equivalent".  
Article 14.  Official language of procurement procedure   15 1. The documents related to procurement shall be drawn up and published in the  bulletin  in 
Armenian in cases provided for by  this Law, whereas notices on procurement, including prequalification 
notices, shall also be published in English and Russian.  
2. The bids may, in addition to Armenian, also be submitted in English or Russian.  
 
Article 15.  Procurement planning and financin g  
1. The procurement plan being implemented at the expense of funds of the State Budget shall be 
approved based on the administrative and functional classification of budget expenditures.  
2. The procurement plan containing a state secret shall include goods, works and services required 
for ensuring national security, protocol expenditures, accommodation, food and transport services for 
officials provided for by part 2 of Article 5 of the Law of the Republic of Armenia “On ensuring the safety 
of persons su bject to special state protection”, including special hardware and software support in the 
field of technical maintenance and repair of vehicles, provision of military equipment, armament, 
ammunition and military -technical means . 
3. The contracting authori ty shall publish the procurement plan including the  modifications thereto 
in the bulletin  within two working days following the day of approval thereof, except for the procurement 
plan containing a state secret.  
4. Financial resources for the procurement o f construction works shall be earmarked based on the 
design documents approved and having passed expert examination,  under  the prescribed procedure. 
Where no design documents are available, financial resources for the procurement of construction 
works may not be earmarked, unless otherwise prescribed by law or upon the decision of the community 
council of elders.  
5. Where the procurement price exceeds the amount of financial allocations earmarked for that 
procurement, in case of concluding a contract, financial resources shall be earmarked during the period 
following the period concerned for carrying out the procurement defined by the procurement contract or 
the temporary termination of the given procurement (where the temporary termination requires financia l 
resources).  
6. Before earmarking financial resources, a contract may be concluded as prescribed by this Law, 
provided that procurement may be carried out within the  framework of the mentioned contract in case 
necessary financial resources are earmarked. The contract concluded according to this part shall be 16 rescinded, where no financial resources for execution of the contract are earmarked during the period of 
six months following the day of concluding a contract. This part may apply, where:  
(1) the contr acting authority is unable to forecast (calculate) beforehand the amount of financial 
resources necessary for procurement;  
(2) supply  of goods, performance  of works or provision of services start in such a period calculated 
from the moment of earmarking fi nancial resources for the given procurement, which makes the 
application of any competitive procurement form impossible in terms of time limit.  
7. The contracting authority shall assume financial obligations under the contract, where financial 
allocations required for carrying out that procurement are earmarked, as well as within the framework of 
those allocations.  
8. Financial resources for carrying out procurement shall be earmarked under relevant items of 
economic classification of budget expenditures fo r the acquisition of goods, works and services. 
Earmarking of financial resources under other items of economic classification of budget expenditures 
shall be prohibited, where procurement is to be carried out at the expense of those resources.  
 
 
SECTION 2  
REGULATION AND CO -ORDINATION OF PROCUREMENT PROCESS  
 
Article 16.  Regulation and co -ordination of procurement process  
1. The regulation and co-ordination of the procurement process shall be performed by the 
authorised body. The authorised body may not be involved in the procurement processes, be a party to 
the contract, except for procurement to be carried out for its own needs.  
2. For the purpose of regulating and co-ordinating the procurement process, the  authorised body 
shall:  
(1) co-ordinate  the elabor ation  of draft legal acts on procurement and shall adopt or submit them to 
the Government of the Republic of Armenia for approval;  
(2) provide methodical assistance to the contracting authorities in arranging the  procurement 
activities;  17 (3) ensure  the qual ification certification  of procurement co-ordinators and the  existence of a system 
for continuous professional training thereof;  
(4) arrange publication of the  bulletin ; 
(5) co-ordinate  procurement -related  co-operation between  international organisations, foreign 
states, as well as state and local self -government bodies of the Republic of Armenia;  
(6) register procurement transactions entailing  obligations for the state;  
(7) publish : 
a. the annual public procurement report;  
b. the list of qualified procurem ent specialists (persons);  
(8) approve the standard forms of documents used during the procurement process, including those 
of the invitation and the contract;  
(9) approve  the standard forms of documents to be submitted to the authorised body according to 
this Law, including those of the reports, and the deadlines for submission thereof;  
(10)  approve  the form of the register and the procedure for the keeping thereof;  
(11)  maintain  and co-ordinate the e -procurement system;  
(12)  ensure  the availability of a p rocurement support service (hotline) for the purpose of responding to 
alerts and quickly responding to questions on procurement.  
3. The head of the contracting authority shall appoint a procurement co-ordinator who shall be:  
(1) responsible  for the organis ation  and co-ordination of the procurement process of the contracting 
authority;  
(2) give an opinion on documents approved by the contracting authority within the  framework of 
procurement;  
(3) exercise  powers of the secretary of the evaluation commission;  
(4) draw up the protocol  of the given procurement procedure and the  procurement contract and 
submit them to the head of the contracting authority for approval.  
4. A procurement co -ordinator may be:  
(1) a relevant subdivision of the contracting authority;  18 (2) an official or officials;  
(3) an invited person — consultant or consultants.  
5. Employees of the subdivision co -ordinating procurement, officials and invited persons must be 
included in the list of qualified procurement co -ordinators, published by the a uthorised body. The 
persons referred to in the list shall be included in the list after being evaluated  as satisfactory based on 
the results of the procedure for procurement co -ordinators qualification, organised by the authorised 
body.  
 
Article 17.  Centra lised procurement  
1. Procurement for needs of contracting authorities or separate groups thereof may be carried out in 
a centralised manner as prescribed by the Government of the  Republic of Armenia.  
2. Centralised procurement shall be carried out by a bo dy or a legal person authorised by the 
Government of the Republic of Armenia.  
 
 
SECTION 3  
PROCUREMENT PROCEDURES AND CONDITIONS FOR APPLICATION  THEREOF  
 
Article 18.  Procurement procedures  
1. Procurement procedures shall be  the following : 
(1) electronic  auction;  
(2) tender ; 
(3) price quotation;  
(4) single  source procurement.  
2. Tender s shall be of two types — open and closed. Closed tender shall be targeted or periodic.  19 3. Procurement shall be carried out under the procedure for electronic auctions, where the subject 
of procurement is included in the list provided for by point 14 of part 1 of Article 5 of this Law.  
4. In cases provided for by this Law, the tender may be carried out in two stages.  
5. The preferable form of procurement shall be the tender, whe re the subject of procurement is not 
included in the list provided for by point 14 of part 1 of Article 5 of this Law, and in  case of procurement 
containing state secret — in the list provided for by point 15 of the same part. Procurement may be 
carried ou t in other forms, exclusively in cases provided for by this Law.  
6. As a result of the procurement procedure, a contract shall be concluded.  
7. Procurement may be carried out from commodity, labour or service exchanges through the 
application of the procur ement procedure.  
 
Article 19.  Conditions for applying two-stage tender  
1. The tender may be carried out in two stages, where:  
(1) the contracting authority is not able to accurately (objectively) define the  descriptions of the 
subject of procurement in ac cordance with the requirements of this Law;  
(2) the contracting authority gives the bidders an opportunity to submit alternative proposals on the 
possible descriptions of the subject of procurement;  
(3) there is a necessity to negotiate with the bidders fo r the purpose of clarifying certain peculiarities 
of the descriptions of the subject of procurement;  
(4) in case of concluding public -private partnership transactions, including the  transactions on trust 
management and concession.  
2. In case of applying  the procedure of a two -stage tender, a prequalification procedure shall be 
arranged. Any bidder shall be eligible to participate in the prequalification procedure. The contracting 
authority shall deliver an invitation to the prequalified bidders only and inv ite them for negotiations. The 
aim of the negotiations shall be to develop one or more alternative options for descriptions of the 
subject of procurement that will meet the requirements of the contracting authority. As a result of the 
negotiations, the  contracting authority shall issue a final invitation to prequalified bidders.  
 20 Article 20.  Conditions for applying  open tender  
1. In case of an open tender, the time limit envisaged for submission of bids shall be calculated 
from the day of publishing the no tice and the invitation of procurement in the bulletin . 
2. Except for the contracting authorities referred to in sub -points "d" and "e" of point 1 of part 1 of 
Article 2 of this Law, the time limit for submission of bids shall be at least forty calendar da ys. 
3. For the contracting authorities referred to in sub -points "d" and "e" of point 1 of part 1 of Article 
2 of this Law, the time limit for submission of bids shall be at least:  
(1) fifteen  calendar days, where the procurement price does not exceed  
two-hundred -fold of the procurement base unit;  
(2) forty calendar days, where the procurement price exceeds two-hundred -fold of the procurement 
base unit.  
4. Where due to emergency or unforeseen situation an urgent need  for procurement has arisen and 
it is im possible to apply the time limit for submission of bids, provided for by part 2 or point 2 of part 3 
of this Article, provided that it has been  objectively impossible to foresee such need , the time limit 
envisaged for submission of bids shall be at least f ifteen calendar days.  
 
Article 21.  Conditions for applying  closed tender  
1. Closed tender shall be appl ied, where the procurement process contains a state secret.  
2. Closed tender shall be periodic, where the subject of the procurement is acquired periodically 
and is included in the list provided for by point 15 of part 1 of Article 5 of this Law. Closed tender shall 
be targeted, where the subject of procurement is not included in the list provided for by this part.  
3. In case of applying  closed tender, a prequalification procedure shall be arranged. Any bidder 
shall be eligible to participate in the prequalification procedure. Only prequalified bidders having 
received an invitation from the contracting authority may submit a bid.  
4. In case of a closed tar geted tender, the time limit envisaged for submission of bids shall be 
calculated from the day of sending the invitation to the prequalified bidders.  
5. Except for the contracting authorities referred to in sub -points "d" and "e" of point 1 of part 1 of 
Article 2 of this Law, the time limit for submission of bids shall be at least thirty calendar days.  
6. For the contracting authorities referred to in sub -points "d" and "e" of point 1 of part 1 of Article 
2 of this Law, the time limit for submission of bids shall be at least:  21 (1) fifteen  calendar days, where the procurement price does not exceed  
two-hundred -fold of the procurement base unit ; 
(2) thirty  calendar days, where the procurement price exceeds two-hundred -fold of the procurement 
base unit.  
7. Where due to emergency or unforeseen situation an urgent need  for procurement has arisen and 
it is impossible to apply the time limit for submission of bids, provided for by part 5 and point 2 of part 6 
of this Article, provided that it has been  objectively imp ossible to foresee such need , the time limit 
envisaged for submission of bids shall be at least 15  calendar days.  
8. In case of a closed periodic tender, the time limit envisaged for submission of bids shall be at 
least five calendar days, which is calcula ted from the day of sending the invitation to the prequalified 
bidders.  
 
Article 22.  Conditions for applyin g price quotation  
1. The procurement may be carried out through price quotation, where the  procurement price does 
not exceed seventy -fold of the pro curement base unit, and where the subject of procurement is not 
included in the list provided for by point 14 of part 1 of Article 5 of this Law, and in case of procurement 
containing state secret — in the list provided  for by point 15 of part 1 of Article  5 of this Law.  
2. In case of carrying out procurement containing state secret through price quotation, a 
prequalification procedure shall be arranged. Any bidder shall be eligible to participate in the 
prequalification procedure. Prequalified bidders havi ng received an invitation from the contracting 
authority may submit a bid.  
3. In case of applying the price quotation procedure, the time limit envisaged for submission of bids 
shall be at least four working days, which is calculated from the day of publis hing the notice and the 
invitation of procurement in the  bulletin , and in case of procurement containing state secret — from the 
day of sending the invitation to prequalified bidders.  
 
Article 23.  Conditions for single source procurement  
1. Procurement  may be carried out from single source, where:  
(1) it is possible to acquire goods, works or services only from  single source , which is preconditioned 
by the copyright and related rights thereof , existence of the special or exclusive right;  22 (2) due to emergen cy or other unforeseen situation, an urgent need  for procurement has arisen and, 
due to emergency or other unforeseen situation the use of other procurement forms is impossible in 
terms of the time limits, provided that it has been  objectively impossible to foresee such need ; 
(3) by carrying out procurement of goods from any source , the contracting authority decide s to carry 
out additional procurement of goods from the same source , which have not been included in the initial  
contract, but due to objectively  unforeseen circumstances hav e become necessary for the performance 
of the initial contract, provided that:  
a. the contract of additional goods supply may not be technically or economically separated 
from the initial contract without causing major inconvenience to the  contracting authority, 
and 
b. the price thereof does not exceed 10% of the total price of the initial contract. Moreover, 
additional procurement from the same source , by applying this point, may be carried out 
once, and the price of additional  goods may not be more than provided for by the contract;  
(4) the procurement price does not exceed the procurement base unit;  
(5) the p rocurement  is carried out outside the territory of the Republic of Armenia.  
 
 
Article 24.  Prequalification procedures  
1. In case of arranging prequalification procedures:  
(1) a prequalification notice shall be published;  
(2) in case of consultancy services, a two-stage tender or a closed targeted tender, the time limit 
envisaged for submission of prequalification bids shall be at least 15 calendar days, which is calculated 
from the day of publishing the prequalification notice;  
(3) where the procurement price does not exceed seventy -fold of the procurement base unit, or 
procurement is carried out by the contracting authorities referred to in sub -points "d" and "e" of point 
1 of part 1 of Article 2 of this Law, or due to emergency or other unforeseen situation an urgent need  for 
procurement has arisen and it is impossible to apply the time limit provided for by point 2 of this part 
provided that it has been objectively impossible to foresee such need , the time limit envisaged for 
submission of prequalification bids shall be at least five calendar days, which is calculated from the day 
of publishing the prequalification notice.  23 2. The prequalification notice shall be published in the bulletin  and contain the  following 
information:  
(1) name  and registered office of the contracting authority;  
(2) code of the procurement procedure;  
(3) notice on the eligibility of bidders to partic ipate in the prequalification procedure;  
(4) the language or languages in which prequalification bids must be submitted;  
(5) brief  and clear wording of the contents of the contract and the descriptions of the subject of 
procurement;  
(6) procedure  for prepa ration and submission of a prequalification bid, including the  form and 
venue, the deadline for submission;  
(7) requirements  for the eligibility and qualification of the bidder and the procedure for evaluation 
thereof;  
(8) a note that the provisions of the  Agreement on Government Procurement of the  World Trade 
Organization apply to the given procurement process, where the  procurement price exceeds the 
thresholds specified by the Agreement and the  procurement process is organised through the 
procedure of a t wo-stage tender;  
(9) other  necessary requirements relate d to the prequalification procedure.  
3. The contracting authority must, within one working day, respond to the enquiry of the bidder to 
give clarifications regarding the prequalification notice. Information on the enquiry and the clarification 
provided shall also be published by the contracting authority in the bulletin  without disclosing the data 
of the bidder having requested clarification. In case of providing information to any of the bidders, the 
contracting authority must ensure accessibility of the information to all other potential bidders.  
4. Modifications may be made to the prequalification notice at least two working days prior to expiry 
of the deadline for submission of prequalification bids. In case of making a modification:  
(1) information on such modifications shall be circulated in the same way as the  initial 
prequalification notice has been put into circulation;  
(2) the deadline for submission of prequalification bids shall be calculated  from the day of 
publishing a notice on modifications in the  bulletin . 24 5. During the first working day following the day of making modifications, a notice on making 
modifications  shall be published in the  bulletin . 
6. The bid submitted by the bidder — the eligibility and qualification of the bidder, shall be evaluated 
as prescribed by the prequalification notice, and a list of prequalified bidders shall be drawn up.  
7. Prequalified bidders shall be granted the right of further participation in the  procureme nt 
process.  
8. Where bids for the prequalification procedure arranged for holding a two-stage tender are 
submitted by up to three bidders, the evaluation commission may decide  to: 
(1) republish  the prequalification notice;  
(2) arrange a new prequalificatio n procedure;  
(3) declare the prequalification procedure as not having taken place;  
(4) continue  the procurement process.  
 
Article 25.  Impermissibility of splitting or grouping procurement and of modifying descriptions of 
subject of procurement  
1. When using  competitive procurement forms, procurements with  separate descriptions may be 
split into lots within the framework of a single procurement process. It shall be prohibited to:  
(1) split a single subject of procurement into separate lots in order to avoid  using a competitive 
procurement form;  
(2) modify  the descriptions of goods, works and services provided for by the contract.  
2. Grouping of subjects of procurement having separate descriptions into one lot shall be 
prohibited, except for cases when the co ntracting authority substantiates the  necessity of such 
grouping.  
 
 
 
 25 SECTION 4  
PROCEDURE FOR HOLDING A TENDER  
 
 
CHAPTER 1  
SOLICITATION FOR BIDS  
 
Article 26.  Evaluation commission  
1. Upon the order of the head of the contracting authority, evaluation comm ission shall be formed 
which shall:  
(1) approve  the texts of the notice and the invitation;  
(2) make modifications to the invitation;  
(3) provide clarifications on the procurement procedure;  
(4) open  and evaluate the bids;  
(5) determine  the successful bidd er (bidder s) of the procurement procedure.  
2. The evaluation commission shall have a secretary who is appointed by the act on formation of the 
commission. The secretary shall not be a member of the commission.  
The secretary shall:  
(1) arrange  the activitie s of the commission;  
(2) receive and register the bids;  
(3) draw up draft documents subject to the approval of the commission and submit them to the 
commission;  
(4) provide  the invitation;  
(5) record the information on the activities of the commission by d rawing up appropriate documents 
and ensure safe storage of the mentioned documents during the  activities of the commission;  
(6) arrange the provision of clarifications on the procurement procedure;  26 (7) bear responsib ility for compliance of the activities o f the commission with the  requirements of 
the legislation of the Republic of Armenia on procurement;  
(8) perform  other functions reserved thereto . 
3. The members and the secretary of the commission shall be obliged to, throughout  the entire 
course of activ ities of the commission, keep the confidentiality of information submitted in bids.  
 
Article 27.  Notice and invitation of procurement   
1. For the purpose of involving bidders to carry out procurement through an open tender, a notice 
and invitation of proc urement shall be published in the bulletin . 
2. The procurement notice shall contain the following information:  
(1) name  and registered office of the contracting authority;  
(2) code of the open tender;  
(3) brief and clear wording of the contents of the cont ract and the descriptions of the subject of 
procurement;  
(4) notice on the eligibility of bidders to participate in the open tender;  
(5) conditions  for receiving a hard copy of the invitation, including the amount of the  fee charged  
and the procedure for p ayment thereof;  
(6) the language or languages in which the bids must be submitted;  
(7) brief summary  of qualification criteria for bidders;  
(8) criteria  to be used  for determining the selected bidder;  
(9) form, venue and time limit for submission of bids;  
(10)  name  and location of the body responsible for the appeal and precise information on the time 
limits for filing appeals;  
(11)  form , venue, date  and time of bid opening;  
(12)  a note that the provisions of the Agreement on Government Procurement of the  World Trade 
Organization apply to the given procurement process, where the  procurement price exceeds the 
thresholds specified by the Agreement;  27 (13)  other  information, if necessary.  
3. A person having submitted a written request to the contracting authority  based on the 
procurement notice shall have the right to receive a hard copy of the invitation on the first working day 
following submission of the request.  
4. In case of an open tender, a fee may be charged for providing the invitation in  hard copy , which  
may not exceed the amount of costs for photocopying and delivering the invitation.  
5. Failure to receive an invitation as provided for by this Article shall not limit the right of the bidder 
to participate in the open tender.  
 
Article 28.  Contents of invi tation  
1. The invitation shall contain:  
(1) reference to the notice published, in addition to which the invitation is provided;  
(2) code of the tender;  
(3) instructions for preparation of bids;  
(4) qualification  criteria, eligibility requirements and the procedure for evaluation thereof;  
(5) descriptions of the subject of procurement;  
(6) the procedure for evaluation of bids and for selection of a selected bidder;  
(7) the draft contract;  
(8) where procurement is carried out in lots and bidders are allowed to submit bids only for one part 
of goods, works and services to be procured — the conditions and procedure therefor;  
(9) the procedure for calculation of the price proposed by the bid including exchange rate thereof, 
where the price is quoted in foreign c urrency;  
(10)  a note that the proposed price in addition to  the value of goods, works and services also includes 
the costs for transportation, insurance, duties, taxes and other charges and may not be less than the 
cost price thereof. Calculation of the proposed price shall be presented in the bid;  
(11)  requirements  for the bid security and the contract security;  28 (12)  conditions  including the form, venue, time limit for submission of bids, the  language and validity 
of the bid;  
(13)  the procedure for receiving clarifications on the procurement process, information on meetings to 
be held with the bidders, as well as the name and surname of the secretary of the evaluation 
commission;  
(14)  form , venue, day and time of bid opening;  
(15)  references  to the provisio ns of this Law and other legal acts on the given procurement;  
(16)  conditions  for submitting the proposal on conclusion of a contract;  
(17)  the right of the bidder to appeal against the actions (inaction) related to the  procurement 
process or the adopted d ecisions and the procedure thereof;  
(18)  grounds  for rejection of the bid;  
(19)  information on preparation, submission, opening and evaluation of the bid, as well as other 
necessary information on procurement.  
2. The invitation shall also envisage that the  bidder:  
(1) submits a statement certified  thereby  with the bid justifying  the eligibility thereof to participate in 
the procurement and the compliance with qualification criteria provided for by the invitation provided 
that the bidder undertakes, in cases and as prescribed by this Law, to submit the documents 
(information) provided for by the  invitation justifying the statement;  
(2) submits in the bid:  
a. a statement certified  there by on the absence of abuse of the dominant position and an 
anti -competitive  agreement;  
b. the data on the natural person (person s) directly or indirectly holding more than 10 percent 
of the voting shares in a statutory capital of the legal person participating in the 
procurement process, including bearer shares, or the person  (person s) entitled to appoint 
to or dismiss from office the members of executive body of the participating legal person, 
or receiving more than 15 percent of profit generated from entrepreneurial activities or 
other activities implemented by that legal person , and in case of absence thereof — the 
data on the head and members of the executive body. Moreover, where the bidder is 
declared a selected bidder, the information provided for by this sub -point shall be 29 published in the bulletin  together with the notice regarding the decision on conclusion of a 
contract.  
 
Article 29.  Clarification of and modifications to invitation  
1. The bidder shall have the right to request in a written form a clarification of the invitation at least 
five calendar days prior to expiry  of the deadline for submission of bids. The clarification shall be 
provided to the enquirer in writing within two calendar days following the day of receipt of such an 
enquiry . 
2. The notice on the contents of the enquiry and clarifications shall be published in the bulletin  on 
the day of providing the clarification to the enquirer without disclosing the data on the enquirer , while  in 
case of a closed tender  the clarification on the contents of the enquiry and clarifications shall be 
provided to bidders ha ving received an invitation.  
3. A clarification shall not be provided, where the enquiry has been made  with violation of the time 
limit stipulated by this Article, as well as where the enquiry falls beyond the contents of the invitation. 
Moreover, the bidd er shall be notified in writing about the grounds for not providing the clarification 
within two calendar days following the day of receipt of the enquiry . 
4. Modifications may be made to the invitation at least five calendar days prior to expiry of the 
deadline for submission of bids. In case of an open tender, a notice on making a modification and the 
conditions for provision thereof shall be published in the bulletin  within three calendar days following 
the day of making a modification, and in case of a closed tender the modifications shall be provided to 
bidders having received an invitation.  
5. In case of making modifications to the invitation for the open tender, the  deadline for 
submission of bids shall be calculated from the day of publishing the  not ice on the modifications in the  
bulletin , and in case of a closed tender — from the day of providing the modifications made to the 
invitation to the bidders having received an invitation.  
6. A protocol on the activities performed according to this Article and the ir results shall be drawn up, 
which is attached to the protocol  of the procurement procedure.  
 
CHAPTER 2  
BIDS  30  
Article 30.  Submission of bids  
1. The bidder may not submit more than one bid for the same procedure. The  bidder shall submit 
the bid as prescribed by the invitation. The bid shall include the following documents approved by the 
bidder:  
(1) the statement on compliance of the bidder's data with the requirements of the  invitation;  
(2) the price proposal;  
(3) the non-price proposal (technical proposal or technical specification), where it is provided for by 
the invitation;  
(4) other  documents (information) provided for by the invitation.  
2. In case the bid is submitted in hard copy , the bidder's proposals and related documents shall be 
placed i nto an envelope which is glued by the person submitting it. The documents placed into the 
envelope shall consist of the original documents and the copies in the number referred to in the 
invitation. The packages of documents shall be marked with the words “original”  and “copy”  
respectively . The envelope and the documents provided for by the invitation, drawn up by the  bidder 
shall be signed by the person submitting them or the authorised person thereof (hereinafter referred to 
as “the agent ”). Where the bid  is submitted by the  agent, a document certifying the power thereof to 
submit a bid shall be submitted with the bid.  
3. The following shall be indicated  in the language of the bid on the envelope referred to in part 2 of 
this Article:  
(1) name  of the contr acting authority and the venue (address) for submission of the bid;  
(2) code of the tender;  
(3) the words “do not open until the session for bid opening ”; 
(4) name , registered office and telephone number of the bidder.  
4. The secretary shall register the b ids in the bid register in the order of receipt, by indicating  on the 
envelope the registration number, date  and time. A statement of information shall be issued at the 
request of the bidder.  31 5. The bids failing to comply with the requirements of this Article shall be rejected by the evaluation 
commission at the bid opening session and returned unchanged to the person having submitted the bid.  
6. The bidders may participate in the procurement process as a joint venture (as a 
consortium). The  procedure for p articipation in the procurement process as a joint venture shall be 
defined in the invitation. In such case:  
(1) the bid shall also include a joint venture agreement ; 
(2) when  evaluatin g the bid the combined qualifications of all the members to the joint v enture 
agreement shall be considered;  
(3) the bidders shall be held liable jointly and severally ; 
(4) the p arty (parties) to the joint venture agreement may not submit separate bid  (bids) for the same 
procedure.  
 
Article 31.  Validity, withdrawal of and mod ification to bid  
1. A bid shall be valid until the conclusion of a contract, the withdrawal of the bid by the bidder, the 
rejection of the bid or declaration of the procurement procedure as not having taken place, in 
accordance with this Law.  
2. The bidde rs may modify or withdraw their bid before the deadline for submission of bids.  
3. In case the bid is submitted in hard copy , the notification on modification to the bid shall be sent 
in an envelope prepared  in accordance with part 2 of Article 30 of this Law, by indicating the word 
"modification" thereon. In case of withdrawing the bid, the bidder shall submit a written notification 
thereof before opening the bid s. 
 
Article 32.  Bid security  
1. The bidder shall provide  with the bid a bid security as required by the invitation, the amount of 
which shall be equal to up to five percent of the price proposed in the bid. The bid security shall be 
submitted as a  unilateral statement , in the form of penalty or bank guarantee or cash. The bid security 
submitted in the form of cash shall be deposited to a treasury account opened in the name of the 
authorised body.  
2. The bidder shall pay the bid security, where the bidder : 32 (1) has been announced a selected bidder, but refuses or is deprived of the right to conclude a  
contract;  
(2) has violated an obligation assumed under  the procurement process which has led to termination 
of the bidder's further participation in the  process;  
(3) has refused further participation in the procurement process after the opening of bids.  
 
CHAPTER 3  
OPENING AND EVALUATION OF BIDS  
 
Article 33.  Opening of bids  
1. Bids shall be opened at the bid opening session — on the day, at the time and venue specified  in 
the invitation. The day and time of opening  the bids must coincide with the deadline for submission 
thereof. In case of a closed tender, the bids may be, upon the written consent of all bidders having 
received an invitation, opened before the day of expiry of the time limit specified  in the invitation.  
2. The following shall be published a t the bid opening session:  
(1) title (name) of each bidder having submitted a bid;  
(2) information on compliance of drawing up and submission of envelopes containing the bids with 
the requirements of the invitation;  
(3) information on availability of docum ents required in the invitation in each opened envelope;  
(4) information on compliance of documents submitted by each bidder with the  requisites defined 
in the invitation;  
(5) the price proposed by each bidder in letters and figures ; 
(6) information on withdrawal of or modifications to the bids.  
3. After the opening of bids, minutes shall be drawn up and attached to the  protocol  of the 
procurement procedure. The minutes shall be signed by the  members of the evaluation commission 
present at the session. The minutes shall contain:  
(1) information on the venue, day and time of the opening of bids;  33 (2) names  and addresses of bidders having submitted bids;  
(3) data on compliance of drawing up and submission of the envelopes with the  requirements of the 
invitation ; 
(4) data on availability of documents required in the invitation in each opened envelope;  
(5) data on documents submitted by each bidder, being drawn up in compliance with the conditions 
defined in the invitation;  
(6) the price proposed by each bidder;  
(7) data on bidders ranked  the first and others ranked successively;  
(8) in case of declaring the procurement procedure as not having taken place  — the justification 
thereof;  
(9) information on bid related  enquiries and answers thereto;  
(10)  the venue, date  and time of the following session of the commission;  
(11)  names  and surnames of the commission members present at the session.  
4. Where a member of the evaluation commission or a bidder wishes to express an opinion (special 
opinion) on the opening of bids  not included in the minutes of the bid opening session, it shall be 
expressed in writing during the session, which is attached to the protocol  referred to in part 3 of this 
Article.  
5. Bidders and the representatives thereof may be present at the sessions of the evaluation 
commission. Bidders or the representatives thereof may request copies of the minutes of the sessions of 
the evaluation commission, which are provided within one calendar day. The contracting authority shall 
be obliged to ensure the  confi dentiality of information marked  by bidders as confidential and shall be 
held liable , as prescribed by the law of the Republic of Armenia, for the damage caused to bidders as a 
result of disclosing such information, except for the information subject to ma ndatory disclosure 
provided for by law.  
6. A member or the secretary of the evaluation commission may not participate in the activities of 
the evaluation commission, where at the bid opening session it appears that the organisation founded 
thereby or the o rganisation wherein he or she holds a share ( unit ), or the person with whom they are 
linked by kinship or in -law relationship s (parent, spouse, child , brother, sister as well as parent-in -law, 
spouse's child , spouse's brother and spouse's sister), or the o rganisation founded by that person or the 34 organisation wherein tha t person holds a share ( unit ) has submitted a bid to participate in the procedure 
concerned.  
7. Where the condition envisaged by part 6 of this Article  exists, the member or the secretary of  the 
evaluation commission having a conflict of interests in relation to the procedure concerned shall recus e 
himself or herself from the procedure concerned immediately after the bid opening session. Members 
and the secretary of the commission shall sign a statement on absence of the conflict of interests, which 
shall be published in the bulletin  on the first working day following the end of the  bid opening session.  
8. The minutes of the bid opening session shall be published in the bulletin  on the first working day 
following the end of the day of the bid opening session. In case of carrying out procurement containing 
state secret, the minutes provided for by this part shall be sent to all bidders having submitted bids on 
the first working day following the  bid opening session.  
 
Article 34.  Evaluation of bids  
1. Bids shall be evaluated under the procedure defined  by the invitation. The bids complying with the 
conditions provided for by the invitation shall be evaluated as satisfactory; otherwise, the bids shall be 
evaluated as unsatisfactory and rejected.  
2. The bidder ranked the first shall be determined:  
(1) from among the bidders having submitted bids evaluated as satisfactory by the principle of giving 
preference to the bidder having submitted the lowest price proposal;  or 
(2) by the method of selecting the bidder, the total sum of coefficients given to the price proposal 
and the non-price criteria thereof is the highest. In case of using  this method while evaluating the bids in 
cases and as prescribed in  the invitation, other non-price criteria, in addition to the proposed price, 
shall be taken into account. The  non-price criteria must be interrelated with the subject matter of the 
contract, and the relative weights thereof shall be presented  in the invitation.  
3. Where the bidder must pay value added tax for the transaction concerned to the State Budget, the 
amount due for that tax type shall be earmarked in the price proposal in a separate line. Moreover, 
evaluation and comparison of the  price proposals of bidders shall be performed without calculating the 
amount of tax referred to in this part.  35 4. In case of inconsistency between the amounts in letters and in figures, the amount in letters 
shall be taken as a basis. Where the prices are proposed in two o r more currencies, they shall be 
compared with the dram of the Republic of Armenia at the exchange rate fixed in the invitation.  
5. After determining the bidders ranked first and successively ranked bidders within the time limit 
defined in the invitation:  
(1) the bidder ranked the first shall submit to the commission documents (information) provided for 
by the invitation justifying the eligibility thereof to participate in the  procurement and the compliance 
with the qualification criteria provided for by th e invitation;  
(2) the commission shall evaluate the compliance of the documents (information) submitted 
according to point 1 of this part with the requirements provided for by the  invitation and, in cases and 
as prescribed in the invitation, shall evaluate  the justified nature of the price and non-price (technical) 
proposals of the given bidder.  
6. A bid shall be evaluated as satisfactory, where the data submitted according to part 5 of this 
Article meet the requirements defined in the invitation. In this c ase, the bidder shall be declared a 
selected bidder.  
7. According to part 6 of this Article, where as a result of evaluation the bid is evaluated as 
unsatisfactory, the commission shall require the successively ranked bidder to submit documents.  
8. Based o n the results of the evaluation of bids, minutes of the bid evaluation session shall be 
drawn up, which is attached to the protocol  of the procurement procedure. The minutes shall be signed 
by the commission members present at the  session.  
9. The minutes o f the session shall be published in the bulletin  on the first working day following the 
end of the bid evaluation session. In case of carrying out procurement containing state secret, the 
minutes provided for by this part shall, on the first working day fo llowing the end of the bid opening 
session, be sent to all the  bidders having submitted bids.  
 
Article 35.  Contract security  
1. Upon the request for submission of a contract security, the selected bidder shall be obliged to, 
within 10 working days after receiving such a request, submit a contract security. The contract shall be 
concluded with the selected bidder, where the latter submits a contract security.  36 2. The amount of the contract security shall be 10 percent of the contract price. The contract security 
shall be submitted as a statement unilaterally certified  by the selected bidder in the form of penalty or 
cash or bank guarantee. The contract security submitted in the form of cash shall be deposited to the 
treasury account opened in the  name of the authorised body.  
3. In case a condition for allocating an advance payment by the contracting authority is provided for 
in the contract, the selected bidder shall, in advance, provide an advance payment security to the 
contracting authority in the amount of  the advance payment in the form of a bank guarantee. The 
procedure for payment of the advance payment shall be defined by the contract.  
4. Unless otherwise provided for in the contract, the contract security or the  advance payment 
security shall be reimbu rsed to the person submitting the  security no later than within five working days 
after completion of the contract performance.  
 
Article 36.  Conclusion of contract  
1. The contract shall be concluded by the contracting authority based on a decision of the evaluation 
commission.  
2. During four working days following the expiry of the standstill period provided for by  Article 10 of 
this Law, the contracting authority shall notify the selected bidder by  providing the proposal to 
conclude a contract and a draft  contract. Moreover, a contract may be concluded no earlier than the 
second working day following the day of expiry of the standstill period provided for by Article 10 of this 
Law.  
3. Where the selected bidder fails to sign  the contract and submit the cont ract security to the 
contracting authority within 10 working days after receiving the notice on conclusion of the contract and 
the draft contract, the selected bidder shall be deprived of the right to sign the contract. Where  advance 
payment is stipulated  in the contract, the time limit provided for by this point shall be 15 working days.  
4. Prior to expiry of the time limit provided for by part 3 of this Article, upon the  consent of the 
parties, modifications may be made in the draft contract; however, suc h modifications may not lead to 
modification of descriptions of the subject of procurement, including to an increase in the price 
proposed by the selected bidder.  
 37 Article 37.  Declaring procurement procedure as not having taken place  
1. The procurement pr ocedure shall be declared as not having taken place, where:  
(1) none  of the bids complies with the conditions of the invitation;  
(2) the need  for procurement ceases to exist;  
(3) no bid has been submitted;  
(4) no contract is concluded.  
2. After the procure ment procedure is declared as not having taken place, opening of unopened bids 
shall be prohibited, and they shall be  returned to the bidders.  
3. The contracting authority shall, within the working day after declaring the procurement procedure 
as not having taken place, publish a notice in the  bulletin , which shall contain the justification for 
declaring the procurement procedure as not having taken place. In case of a closed tender, the notice 
provided for by this point shall not be published.  
 
Article 38.  Impermissibility of holding negotiations with bidders, detection and prevention of cases 
related to restriction of economic competition  
1. Negotiations between  the evaluation commission, the contracting authority and bidders shall be 
prohibited, except f or: 
(1) cases when one bidder has participated in the tender, whose  submitted  bid complies with the 
requirements of the invitation, or as a result of bid evaluation, a bid of only one bidder has been 
evaluated as complying with the requirements of the invi tation, or when the price proposals submitted 
by all the bidders having submitted bids evaluated as complying with the non -price conditions exceed 
the financial resources earmarked for carrying out the procurement concerned. The negotiations held in 
accord ance with this point may only lead to reduction of the proposed price or change  of payment 
conditions  and the negotiations shall be  held simultaneously with all the bidders;  
(2) other  cases provided for by this Law.  
2. For the purpose of detecting violatio ns of the legislation on protection of economic competition in 
the procurement process, including cases of anticompetitive agreements and abuse of dominant 
position, the competent authority shall co -operate with the authorised body and the contracting 
authorities.  38  
Article 39.  Calculation of contract price  
1. Calculation of the contract price shall include all the payments (costs) to be made to ensure 
performance of the procurement contract concerned, including taxes, duties, costs for transportation 
and i nsurance, bonuses and anticipated profit.  
2. The contract price:  
(1) may be factor -based , where the contract price varies as a result of the change  of conditions 
(factors) provided for by the contract. Otherwise, the  contract price shall be fixed  and the p arties shall 
be obliged  to fully perform their contractual obligations within the scope of the contract price;  
(2) in case of prospective development of new types of products, acquisition of scientific research 
and experimental design works for military ne eds containing state secret — may be calculated based on 
actual costs provided that it must not exceed the  amount of financial allocation earmarked for 
acquisition of the goods, works or service concerned.  
 
 
CHAPTER 4  
ELECTRONIC AUCTIONS  
 
Article 40.  Condi tions for holding electronic auction  
1. The deadline for submission of bids to participate in the electronic auction shall be set at least 15 
calendar days following the day of publishing the notice  and the invitation in the  bulletin . Where the 
procuremen t price does not exceed the seventy -fold of the procurement base unit, the time limit 
provided for by this part for submission of bids shall be set for at least seven calendar days.  
2. The electronic auction shall be based solely on prices.  
3. In case of using  electronic auction, the invitation shall also include the  following conditions:  
(1) the limitations  for the proposals to be submitted, which stem from the description of the subject 
of procurement;  39 (2) the information  to be provided to bidders during the electronic auction and the  conditions for 
providing the information thereto;  
(3) the information of essential significance concerning the process of the electronic auction;  
(4) the conditions for submission of bids by bidders. Moreover, the bidder shall submit with the bid a  
statement  certified  thereby  for justifying the eligibility thereof to participate in the procurement and the 
compliance with the qualification criteria provided for by the invitation provided that the bidder 
undertakes, in cases and  as prescribed by this Law, to submit the documents (information) provided for 
by the invitation justifying the statement;  
(5) the information concerning the electronic equipment being used, conditions for establishing 
communication and the technical descr iptions.  
4. No later than two calendar days prior to the expiry of the deadline for submission of bids, 
modifications may be made in the invitation, which shall be published in the  bulletin  on the same day. 
In such case, the deadline for submission of bids shall be calculated from  the day of publishing 
information  on such modifications in the  bulletin . 
5. The bidder shall have the right to request clarification of the invitation at least three calendar days 
prior to the expiry of the deadline for submission  of bids. The clarification shall be provided to the 
enquirer within two calendar days following the date of receipt of such an enquiry.  
6. The notice on the contents of the enquiry and clarifications shall be published in the bulletin  on 
the day the clarification has been  provided to the enquirer without indicating the data on the enquirer.  
 
Article 41.  Procedure for holding electronic auction  
1. The contracting authority shall , based on the criteria specified in the invitation, carry out full 
evaluation of bids after finalisation of the results of the electronic auction.  
2. A proposal for submitting new (revised) prices by electronic means shall be sent to all bidders 
having submitted bids. The proposal shall also include information on the date  and time of opening the 
electronic auction and data necessary for establishing an individual communication pathway with the 
electronic equipment being used.  
3. The electronic auction may take place in a number of successive phases . 40 4. The electronic auction shall start no earlier than two calendar days after the day following the 
date on which the request thereon has been  sent.  
5. In each phase  of the electronic auction, the contracting authority shall immediately (online) 
provide the bidders with minimum sufficient information which enables them to ascertain, at any time, 
their relative ranking.  
6. During  the phases  of the electronic auction, the contracting authority shall not disclose the 
identity of bidders having submitted prices.  
 
Article 42.  Completion of elec tronic auction  
1. The electronic auction shall be completed (closed), where one of the following conditions or a 
combination thereof exists:  
(1) at a particular moment indicated  in the invitation;  
(2) the number of auction phases  indicated  in the invitati on to participate in the  auction has been 
exhausted;  
(3) no more new prices have been submitted. In such a case, the contracting authority shall indicate 
in the invitation to participate in the auction the permissible period of time between receiving the last 
proposal and closing the electronic auction.  
2. The contracting authority shall, as prescribed by this Law, conclude the contract with the selected 
bidder, based on the results of the electronic auction.  
 
 
SECTION 5  
PECULIARITIES FOR ACQUISITION OF CON SULTANCY SERVICES  
 
Article 43.  List of consultants  
1. Consultancy services shall be acquired under the open or closed targeted tender procedure as 
prescribed by this Law, unless otherwise provided for by this Law.  
2. In case of procurement of a consultanc y service under the open or closed targeted tender 
procedure, a prequalification procedure shall be arranged for preparing a list of consultants in 41 accordance with the procedure provided for by  Article 24 of this Law. The pre-qualified b idders shall 
receiv e the right of further participation in the procurement process.  
 
Article 44.  Procedure for determining selected consultant   
1. The selected consultant shall be determined by the method provided for  in the invitation for 
selection of a  proposal  from among  the submitted bids:  
(1) which  is evaluated as the highest as regards non-price conditions provided for by the invitation ; or 
(2) which  is evaluated as complying with the minimum non-price conditions provided for by the 
invitation  and having propos ed the l owest price; or  
(3) which  is evaluated as the highest as regards non-price conditions provided for by the invitation  
within the  fixed  maximum price limits.  
2. The selected consultant may also be determined through a method of selecting a consultant the 
total sum of coefficients awarded, under the procedure defined  by the invitation , for the proposed price 
and work experience  thereof , staff, proposed procedure for provision of the service or other non -price 
condition  (condition s) defined by the invitation is the highest.  
3. The procedure for selecting a consultant , including conditions for using  a consultant selection 
method provided for by this Article , shall be defined by the invitation.  
 
 
Article 45.  Negotiations  
1. The provisions of a draft procurement c ontract may be negotiated with the  selected consultant, 
but they may not result in modification of the descriptions of the  subject of procurement.  
2. The negotiations with the consultant selected under the procedure  provided for by point 1 of part 
1 of Art icle 44 of this Law and evaluated as the highest under non-price conditions may result in 
reduction of the proposed price or modification of payment conditions.  
 
 
SECTION 6  42 APPEALING THE PROCUREMENT PROCESS  
 
Article 46.  Right to appeal  
1. Every person sha ll have the right to appeal against the actions (inaction) and decisions of the 
contracting authority, the evaluation commission and the  person examin ing procurement -related 
appeals . 
2. Relations pertaining to the procurement, including the relations with regard to examination of 
appeals, shall not be regarded as administrative relations and shall be regulated by the legislation of 
the Republic of Armenia regulating civil law relations.  
3. According to this Law, every person shall have the right to:  
(1) appeal  against the actions (inaction) and decisions of the contracting authority and the 
evaluation commission to the person examin ing procurement -related appeals,  before conclusion of the 
contract;  
(2) appeal  against the actions (inaction) and decisions of t he person examin ing procurement -related 
appeals , the contracting authority and the evaluation commission through judicial procedure.  
4. Every person interested in concluding a specific transaction and having suffered damages caused 
as a result of an action  or inaction of the contracting authority, evaluation commission or the person 
examin ing procurement -related appeals  shall have the right to claim compensation for damages 
through judicial procedure.  
 
Article 47.  The person examin ing procurement -related ap peals  
1. The appeals filed against the actions (inaction) and the decisions of the  contracting authority 
and the evaluation commission shall be examined by the  person examining procurement -related 
appeals . 
2. The person examin ing procurement -related appea ls shall be a body carrying out  unbiased and 
independent investigation, which is not interested in the outcome  of a certain procurement process and 
is protected from external influences while performing its obligations and exercising its rights. The 
person  examin ing procurement -related appeals shall examine  the appeals thoroughly and impartially. 
While exercising the powers provided for by this Law, the person examining procurement -related 43 appeals  shall be independent from the bidders of the procurement pro cess, including the contracting 
authorities, as well as state and local self -government bodies and officials and shall be obliged to be 
guided solely by the legislation of the Republic of Armenia on procurement and apply it.  
5. The working conditions neces sary for exercising the powers vested in the person examin ing 
procurement -related appeals by this Law shall be ensured by the authorised body.  
6. Every year , before 1 April, the person examin ing procurement -related appeals shall publish in the 
bulletin  a report on the activities for the previous year. The report shall comprise information, statistical 
data and comparative analyses for the activities implemented during the  previous year, with regard to 
the powers vested by this Law.  
7. The number of persons examin ing procurement -related appeals shall be defined by the decision 
of the Government.  
8. The person examining procurement -related appeals shall hold office for a period of five years.  
 
Article 48.   Requirements for the person examin ing procurement -related appeals  
1. A citizen of the Republic of Armenia having higher education with specialisation in Economy and 
Management or Law, service record of at least five years in the field of public administration, or 
professional service record of at least seven  years and having command of Armenian, may be appointed 
as a person examin ing procurement -related appeals.  
2. The maximum age for exercising the powers of a person examin ing procurement -related appeals 
shall be 65.  
 
Article 49.  Activities of the person exa mining procurement -related appeals  
2. The person examin ing procurement -related appeals may not examine an appeal,  if it appears that 
an organisation founded there by, or an organisation wherein he or she holds a share ( unit ) is involved in 
the appeal proce dure, or a person with whom he or she is lin ked by  kinship or in -law relationship s 
(parent, spouse, child , brother, sister, as well as parent -in-law, spouse's child , spouse's brother or 
spouse's sister), or an organisation founded by that person, or an organisation wherein that person 
holds a share ( unit ) is involved  in the appeal procedure concerned. Where the condition provided for by 
this part exists, the person examining procurement -related appeals having a conflict of interests 
regarding the  examinatio n of the appeal concerned and adoption of the  decision thereon shall recus e 44 himself or herself from examination of the appeal concerned. During the examination of each appeal, 
the person examin ing procurement -related appeals shall sign a statement on absence of conflict of 
interests, which shall be  published in the bulletin  together with the decision adopted on the appeal.  
3. Based on this Law and for the purpose of complying with the requirements thereof, the authorised 
body shall approve the procedure  for activities of the person examin ing procurement -related appeals.  
 
Article 50.  Procedure for filing an appeal to the person examin ing procurement -related appeals  
1. The appeal shall be filed to the person examin ing procurement -related appeals  in writing, signed and 
shall include:  
(1) the name  (name, surname, copy of the identification document) and address of the person having 
filed the appeal;  
(2) the name  and address of the contracting authority;  
(3) the code and subject of the procurement procedure being  appealed;  
(4) subject of the dispute and the claim  of the person having filed the appeal;  
(5) the factual and legal grounds for the appeal and the evidence thereof;  
(6) the copy of the document attesting to  the payment of the appeal fee. Moreover, the  amount of 
the appeal fee shall make up 30 thousand drams of the Republic of Armenia, which is paid to the State 
Budget of the Republic of Armenia. In case the  appeal is satisfied, the payment provided for by this 
part shall be subject to return , as prescribed  by the Government of the Republic of Armenia, to 
the person having filed the appeal;  
(7) other  necessary information.  
2. Where the person having filed the appeal appeals against:  
(1) the decision on concluding the contract, the appeal shall be filed within the  standstill period 
provided for by Article 10 of this Law;  
(2) the descriptions of the subject of procurement, the requirements of the  prequalification notice or 
of the invitation, the appeal shall be filed by the deadline for submission of bids.  
3. Where the appeal fails to comply with  the requirements of this Article, the person examin ing 
procurement -related appeals shall, within two working days following receipt of the appeal, inform 45 thereof in writing to the person having filed the appeal, setting  a time limit of two working days for him or 
her to eliminate the detected deficiencies . Moreover, where the appeal filed within the time limit 
specified by point 2 of part 2 of this Article has failed to comply with  the requirements of this Article, 
the a ppeal corrected and submitted to the person examin ing procurement -related appeals within the 
time limit specified by this part shall be deemed submitted within the  defined  time limit.  
4. In compliance with the requirements of this Article, the person exami ning procurement -related 
appeals shall, within two working days following the receipt of the appeal, address the contracting 
authority with a request to submit to the person examin ing procurement -related appeals all the 
documents necessary for adoption of the decision on the appeal  concerned . The contracting authority 
shall submit to the person examin ing procurement -related appeals the documents referred to  in this 
point within two working days following the date of receipt of such request.  
5. The decisions on the appeal shall be made through a procedure according to which the person 
having filed the appeal, the contracting authority and all the parties involved shall have the right to be 
present at the sessions convened  for the purpose of examin ing the appe al and express their viewpoints.  
6. A written decision on the appeal, which also includes the justification for the  decision shall be 
adopted and published no later than within 20 calendar days after receipt of the appeal. Upon a 
reasoned decision of the  person examin ing procurement -related appeals, the time limit provided for by 
this point may be extended once for up to 10 calendar days. The  decision of the  person examin ing 
procurement -related appeals shall be legally binding , which may be amended or aboli shed, including 
partially, only by the court.  
7. The person examin ing procurement -related appeals shall:  
(1) have  the right to adopt the following decisions on the actions or inaction of the  contracting 
authority and the evaluation commission:  
a. prohibit implementation of certain actions and adoption of decisions,  
b. oblige to adopt relevant decisions, including declaring the procurement procedure as not 
having taken place, except for the decision on recognising the  contract as invalid,  
(2) make a decision  to include the bidder in the list of bidders ineligible to participate in the 
procurement procedure;  
(3) keep the record of the decisions adopted by the person examin ing procurement -related appeals 
and exercise control over the implementation thereof.  46 8. In case the person examin ing procurement -related  appeals  satisfies the appeal, the contracting 
authority shall be held liable for compensating the damage  which has been caused to the person having 
filed the appeal and has been justified as prescribed.  
9. Examination of an appeal shall be open to the public, except for procurement containing state 
secret. Within one working day upon the date of receipt of an appeal, the person examin ing 
procurement -related appeals shall publish the notice on it in the  bullet in, indicating the date of 
publication . 
10. Every person whose interests have been violated or may be violated as a result of actions having 
served as a basis for the appeal, shall have the right to participate in the appeal procedure by filing a 
similar a ppeal to the person examin ing procurement -related appeals  prior to the time limit for adopting 
a decision on the appeal. According to this Article, the person who has failed to participate in the appeal 
procedure shall be deprived of the  right to file a similar appeal to the  person examining  procurement -
related appeals.  
11. The person examin ing procurement -related appeals shall publish the decision in the  bulletin  
within two  working days following the adoption thereof by indicating the  date of publication. In case of 
procurement containing state secret, the adopted decision shall be sent to the contracting authority, the 
authorised body and the  parties involved in the appeal procedure  within the time limit prescribed by 
this part. The decision adopted by the person examining procurement -related appeals shall enter into 
force on the day following the date of its publication in the bulletin, and in case of procurement 
containing state secret — on the day following the date of its sending to the contracting authority, the 
authorised body and the parties involved in the appeal procedure.  
 
Article 51.  Suspension of procurement procedure   
1. The appeal filed to the person examin ing procurement -related appeals shall automatically 
suspend the procurement process from  the day of publishing the notice provided for by part 9 of Article 
50 of this Law till the day on which the decision adopted based on the results of examin ation of the 
appeal  enters into force . 
2. Suspension may be cancelled by the decision  of the person examin ing procurement -related 
appeals , where , according to the  justifications submitted  by the contracting authority, based on public  
interests or defence and national security interests, it is necessary to continue the  procurement 47 process. The person exam ining procurement -related appeals shall publish the decision provided for by 
this part in the bulletin  on the working day following the day of adopting the decision.  
 
 
SECTION 7  
PECULIARITIES OF CARRYING OUT PROCUREMENT  
 
Article 52.  General peculiarities o f carrying out procurement s by public organisation s  
1. In case of  procurement carried out by public organisations within the territory of the Republic of 
Armenia:  
(1) the procurement -related relations shall be regulated by the procurement procedures appr oved by 
the given organisations;  
(2) the procurement procedures, notices on arranging procurement processes, invitations, notices on 
the concluded contracts exceeding the procurement base unit shall also be published in the  bulletin ; 
(3) the appeal ing shal l be carried out  as prescribed by Section 6 of this Law.  
2. The procurement procedures provided for by part 1 of this Article may not contradict the 
objectives and principles prescribed by Article 3 of this Law, and in case of procurement exceeding the 
threshold specified in the Agreement on Government Procurement of the World Trade Organization — 
also the requirements of the Agreement mentioned in this part, and in case of public organisation s 
included in the list approved by the Public Services Regulatory  Commission of the  Republic of 
Armenia — also the requirements specified by the Public Services Regulatory Commission of the 
Republic of Armenia which , under the procedure defined thereby, shall oversee ( monitor) the 
implementation of such requirements.  
 
Article 53.  Special exclusions of procurement s by public organisation s  
1. The provisions of this Law shall not apply, where a public organisation  aims to acquire : 
(1) goods  to be resold or leased out to a third party, provided that the organisation concer ned enjoys 
no special or exclusive right to sell or to lease out the subject  matter of such contracts, and other 48 organisation s may freely realise (sell) or lease out similar goods under the same conditions together 
with the organisation  concerned;  
(2) good s, services or works for the purpose of implementing relevant activities in a  third country 
and under conditions which shall not imply the use thereof within the territory of the Republic of 
Armenia;  
(3) goods , services or works for the purpose of implemen ting activities other than the relevant 
activities. In cases the contract covers  different types of activities and at least one of them is a relevant 
activity, but it is objectively impossible to determine which type of activity the contract is mainly 
intended for, the procurement shall be carried out according to the provisions of this Law.  
 
Article 54.  Peculiarities of carrying out procurement s by the Central Bank of the Republic of Armenia  
1. In case of procurement s carried out by the Central Bank of the Republic of Armenia:  
(1) the provisions of this Law shall not have effect in cases of carrying out procurement within the 
framework of operational expenditures of the Central Bank of the Republic of Armenia;  
(2) the powers and functions vested by this La w in the Government of the Republic of Armenia and in 
the authorised body shall be exercised by the Board of the Central Bank of the Republic of Armenia ; 
(3) according  to this Law, the procedure for disclosing information subject to disclosure shall be 
defined by the Board of the Central Bank of the Republic of Armenia;  
(4) this Law shall not apply to  procurement carried out by organisations founded by the Central Bank of 
the Republic of Armenia or organisations with the participation of the Central Bank of  the Republic of  
Armenia;  
(5) the requirements provided for by part 5 of Article 16 of this Law shall not have   effect;  
(6) the appeal ing as provided for by this Law shall be carried out in the manner prescribed by Section 
6 of this Law.  
 
Article 55.  Pecul iarities of carrying out procurement for the purpose of organising  electoral processes  
1. In case of procurement carried out at the account of funds allocated for organising  and holding 
elections and referenda:  49 (1) the provisions of this Law shall not hav e effect in case of procurement carried out for organisation 
of the  electoral processes by the Central Electoral Commission of the  Republic of Armenia, including 
organisation  of professional training courses (tests) for the purpose of organising  the elections 
concerned after calling elections (referenda);  
(2) the powers and functions vested by this Law in the Government of the Republic of Armenia and in 
the authorised body shall be exercised by the Central Electoral Commission of the Republic of Armenia;  
(3) according  to this Law, the procedure for disclosing information subject to disclosure shall be 
defined by the Central Electoral Commission of the Republic of Armenia.  
 
 
SECTION 8  
FINAL AND TRANSITIONAL PROVISIONS  
 
Article 56.  Entry into force  
1. This La w shall enter into force on the ninetieth  day following the day of its official promulgation , 
except for parts 1 and 2 of Article 57 of this Law, which shall enter into force on the tenth day following 
the day of the official promulgation . 
 
Article 57.  Transitional provisions  
3. The requirements of this Law shall not apply to procurement transactions launched and not 
terminated, as well as concluded and effective before the entry into force of this Law, and the relations 
concerning thereto shall be regulat ed by legal acts having effect at the moment of concluding the given 
transactions.  
4. The requirements of this Law and the Law of the Republic of Armenia  
HO-206- N of 22 December  2010 “On procurement” shall not apply to  transactions provided for by 
memorandums of understanding and preliminary contracts concluded by the state within the 
framework of the  public –private partnership before  the entry into force of this Law, the final 
contracts whereon must  by concluded within two years after the entry into force  of this Law . 50 5. Upon the entry into force of this Law  the Law of the Republic of Armenia  
HO-206- N of 22 December  2010 “On procurement”  shall be repealed . 
6. The regulatory  legal acts and legal norms adopted according to or in execution of the Law of the 
Republic of Armenia HO -206-N of 22 December 2010 “On  procurement” shall continue to have effect 
to the extent not contradicting  this Law.  
 
 
PRESIDENT  
OF THE REPUBLIC OF ARMENIA  S. SARGSYAN  
 
14 January 2017 
Yerevan  
HO-21-N