RESTRICTED  WORLD TRADE  
ORGANIZATION  GPA/ACC/ARM/8 
30 September 2010 
 
 (10-4992) 
Committee on Government Procurement Original:   English 
  
 
ACCESSION TO THE AGREEMENT ON GOVERNMENT PROCUREMENT 
OF THE REPUBLIC OF ARMENIA 
 
Draft Decision, Final Offer and Draft Law on Procurement
 
 
  The following communication, dated 28 September 2010, is being circulated at the request of the Delegation of the Republic of Armenia.  
_______________ 
 
  For the information of delegations, the Delega tion of the Republic of Armenia advises that all 
comments received on its Draft Law on Procurement will be appropriately reflected in the final 
version of the Law during the upcoming discussion to be held in Parliament on this matter. 
 
 Armenia has also advised that "According to Article 6 of the Constitution of the Republic of 
Armenia, international treaties are a constituent part of the legal syst em of Armenia.  If a ratified 
international treaty stipulates norms other than those stipulated in the laws, the norms of the treaty shall prevail.  As the Agreement on Government Pr ocurement is an international Agreement to be 
ratified by Armenia, it will form a constituent part of  the legal system of Armenia.  In the event that 
the Agreement stipulates norms other than those prov ided in the laws, particularly the 'Procurement 
Law' of Armenia, the norms of the Agreement shall prevail".  This additional safeguard has also been 
reflected in the preamble to the draft decision which is attached.   A separate communication from the Chairman regarding this matter is forthcoming. 
 
_______________ 
 GPA/ACC/ARM/8 
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 GPA/...  
ACCESSION TO THE AGREEMENT ON GOVERNMENT PROCUREMENT 
OF THE REPUBLIC OF ARMENIA 
 
Decision of the Committee of [...]
 
  The Committee on Government Procurement, 
 
 Having regard to Article XXIV:2 of the Agreement on Government Procurement; 
  Considering the application for accession to the Agreement on Government Procurement by 
Armenia contained in document  GPA/ACC/ARM/1  of 4 September 2009, and the consultations held 
with the Parties to the Agreement on Gove rnment Procurement in pursuance thereof; 
  Recalling  the requirement under Article XXIV:5( a) of the Agreement on Government 
Procurement that each government accepting or accedi ng to the Agreement shall ensure, not later than 
the date of entry into force of the Agreement fo r it, the conformity of its laws, regulations and 
administrative procedures, and the rules, procedures and practices applied by the entities contained in 
its lists annexed hereto, with th e provisions of the Agreement; 
  Considering  the information on Armenia's planned nati onal procurement legislation set out in 
documents GPA/ACC/ARM/3 of 20 April 2010, GPA/ACC/ARM/6 of 6 July 2010 (Armenia's Replies to Comments and Questions Received fro m Canada and the US) and GPA/ACC/ARM/8 of 
30 September 2010, in addition to Armenia's expressed intention to adopt this legislation and bring it 
into effect. 
 
 Noting also that according to Article 6 of th e Constitution of the Republic of Armenia, 
international treaties are a constituent part of the lega l system of Armenia.  If a ratified international 
treaty stipulates norms other than those stipulated in th e laws, the norms of the treaty shall prevail.  As 
the Agreement on Government Procur ement is an international Agreem ent to be ratified by Armenia, 
it will form a constituent part of the legal system of Armenia.  In the event that the Agreement 
stipulates norms other than those provided in th e laws, particularly the "Procurement Law" of 
Armenia, the norms of the Agreement shall prevail.  
 Decides  as follows: 
 1. In accordance with the provisions of Artic le XXIV:2 of the Agreement on Government 
Procurement, Armenia may accede to the Agreement on the terms attached to the present decision [in 
Attachment A] and provided that, before Armenia deposits its instrument of accession: 
 
(a) Armenia adopts and brings into force legislation in conformity with the 
provisions of the Agreement on Govern ment Procurement as required by 
Article XXIV:5(a) of the said Agreement; 
 
(b) following the adoption of the above-men tioned legislation, Armenia submits, 
for review by the Committee on Governme nt Procurement, the said legislation 
together with information regarding its entry into force;  and 
 
(c) the Committee, having reviewed the le gislation and related information 
submitted by Armenia, authorizes Armenia to deposit its instrument of 
accession.  GPA/ACC/ARM/8 
 Page 3 
 
 
   
2. The Agreement on Government Procurement shall enter into force for Armenia on the 
thirtieth day following the deposit of its instrument of accession with the Director-General, reproducing the terms attached to this decision [i n Attachment A] and confirming that Armenia has 
adopted and brought into force the legi slation referred to in paragraph 1. 
 
3. Armenia may deposit its instrument of accession within a period of [three] months of the date 
on which the Committee authorises Armenia to deposit its instrument of accession as referred to in 
paragraph 1(c), or by such later date as may be decided by the Committee.  
4. Upon Armenia's accession, the terms attached to its instrument of accession shall become an 
integral part of the Agreement on Government Procurement as the Appendices, Annexes and notes with regard to Armenia.  
_______________ 
 
 Note by the Secretariat
:  Attachment A to this document show s the final offer of the Republic of 
Armenia.  Attachment B shows the draft procurement law of the Republic of Armenia, to be discussed in Armenia's Parliament in the coming weeks.
1 
 
                                                      
1 Attachments A and B are in English only. GPA/ACC/ARM/8 
Page 4  
 
ATTACHMENT A 
  
FINAL OFFER 
 
APPENDIX I 
 
REPUBLIC OF ARMENIA 
 
(Authentic in the English Language) 
  
ANNEX 1 
 
Central Authorities which Procure in Accor dance with the Procedures of this Agreement 
 
 Thresholds : 
 
Goods         SDR 130,000 
 Services (specified in Annex 4)      SDR 130,000 
 Construction services (specified in Annex 5)    SDR 5,000,000 
 
 List of Entities : 
 1. Administration of the President of the Republic of Armenia (RA) 
2. Administration of the National Assembly of the RA 
3. Administration of the Government of the RA 
4. Administration of the Constitutional Court of RA 
5. Chamber of Control of the RA 
6. Judicial Department of  the RA 
7. Office of the Public Prosecutor of the RA 
8. Special Investigation Service of the RA 
9. Office of the Human Rights Defender of the RA 
10. Central Bank of the RA (Note 2)  
11. Ministry of Agriculture of the RA 
12. Ministry of Defence of the RA (Note 3) 
13. Ministry of Diaspora of the RA 
14. Ministry of Economy of the RA 
15. Ministry of Education and Science of the RA 
16. Ministry of Energy and Natural Resources of the RA 
17. Ministry of Finance of the RA 
18. Ministry of Foreign Affairs of the RA 
19. Ministry of Healthcare of the RA 
20. Ministry of Justice of the RA 
21. Ministry of Labour and Social Affairs of the RA 
22. Ministry of Nature Protection of the RA 
23. Ministry of Sport  and Youth Affairs of the RA 
24. 
Ministry of Territorial Administration of the RA 
25. Ministry of Transport and Communication of the RA 
26. Ministry of Urban Development of the RA  GPA/ACC/ARM/8 
 Page 5 
 
 
  27. Ministry of Culture of the RA 
28. Ministry of Emergency Situation of the RA 
29. National Security Service of the RA (Note 3) 
30. State Security Service of the RA (Note 3) 
31. State Revenue Committee of the RA 
32. State Committee of the Real Estate Cadastre of the RA 
33. State Nuclear Safety Regulatory Committee by the Government of the RA 
34. State Property Management Department of the RA 
35. General Department of Aviation of the RA 
36. Police of the RA (Note 3) 
37. Armenian Rescue Service 
38. State Water Committee 
39. State Science Committee 
40. Central Electoral Commission of the RA 
41. Public Services Regulatory Commission of the RA 
42. Social Insurance Commission of the RA   
43. State Commission for the Protection of Economic Competition of the RA 
44. Civil Service Council of the RA 
45. National Statistical Service of the RA 
46. National Commission on TV and Radio of RA 
47. Council of the Public TV and Radio of the RA 
48. Marzpetaran of Aragatsotn 
49. Marzpetaran of Ararat 
50. Marzpetaran of Armavir 
51. Marzpetaran of Gegharquniq 
52. Marzpetaran of Lory 
53. Marzpetaran of Kotayq 
54. Marzpetaran of Shirak 
55. Marzpetaran of Syuniq 
56. Marzpetaran of Vayots Dzor 
57. Marzpetaran of Tavush 
 
 
Notes to Annex 1 
 
1. This list refers to all central government entities and subordinated organizations covered by 
Law on Procurement of the RA. 
 
2. Central Bank of the RA:  The Agreement do es not apply to the procurement or acquisition by 
the Central Bank of the Republic of Armenia related to the sale, redemption and distribution of public 
debt, including loans and governme nt bonds, notes and other securities. 
 3. Ministry of Defence of the RA, National Secur ity Service of the RA, State Security Service of 
the RA and Police of the RA:  For these entities, th e Agreement only covers the procurement of the 
following categories, subject to Republic of Armeni a determinations under paragraph 1 of Article III: 
 FSC 22 Railway Equipment  23 Motor Vehicles, Tr ailers, and Cycles (except buses in 2310) 
 24 Tractors 
 25 Vehicular Equipment Components  26 Tyres and Tubes  29 Engine Accessories  30 Mechanical Power Transmission Equipment GPA/ACC/ARM/8 
Page 6  
 
 32 Woodworking Machinery and Equipment  34 Metalworking Machinery  35 Service and Trade Equipment  36 Special Industry Machinery  37 Agricultural Machinery and Equipment 
 38 Construction, Mining, Excavating,  and Highway Maintenance Equipment 
 39 Materials Handling Equipment  40 Rope, Cable, Chain and Fittings  41 Refrigeration and Air Conditioning Equipment  42 Fire Fighting, Rescue and Safety Equipment 
 43 Pumps and Compressors 
 44 Furnace, Steam Plant, Drying Equipment and Nuclear Reactors 
 45 Plumbing, Heating and Sanitation Equipment  46 Water Purification and Se wage Treatment Equipment 
 47 Pipe, Tubing, Hose and Fittings 
 48 Valves 
 49 Maintenance and Repair Shop Equipment  53 Hardware and Abrasives  54 Prefabricated Structures and Scaffolding  55 Lumber, Millwork, Plywood and Veneer  56 Construction and Building Materials 
 61 Electric Wire, and Power and Distribution Equipment 
 62 Lighting Fixtures and Lamps  63 Alarm and Signal Systems  65 Medical, Dental , and Veterinary E quipment and Supplies 
 66 Instruments and Laboratory Equipment 
 67 Photographic Equipment 
 68 Chemicals and Chemical Products  69 Training Aids and Devices  70 General Purpose ADPE, Software , Supplies and Support Equipment 
 71 Furniture  72 Household and Commercial  Furnishings and Appliances 
 73 Food Preparation and Serving Equipment 
 74 Office Machines, Visible Record Equipment and ADP Equipment  75 Office Supplies and Devices  76 Books, Maps and Other Publications  77 Musical Instruments, Phonographs, and Home Type Radios 
 78 Recreational and Athletic Equipment  
 79 Cleaning Equipment and Supplies  80 Brushes, Paints, Sealers and Adhesives 
 81 Containers, Packaging and Packing Supplies  85 Toiletries  87 Agricultural Supplies 
 88 Live Animals 
 91 Fuels, Lubricants, Oils and Waxes  93 Non-metallic Fabr icated Materials 
 94 Non-metallic Crude Materials 
 96 Ores, Minerals and their Primary Products 
 99 Miscellaneous 
 4. The conditions specified in the Ge neral Notes apply to this Annex.  GPA/ACC/ARM/8 
 Page 7 
 
 
  ANNEX 2 
 
Sub-Central Authorities which Procure in Accordance with 
the Procedures of this Agreement 
  
Thresholds : 
 Goods         SDR 200,000  
 
Services (specified in Annex 4)      SDR 200,000 
 Construction services (specified in Annex 5)    SDR 5,000,000 
  
List of Entities : 
 1. Following local authorities as defined by RA Law "On Administrative-Territorial Division" No. N-062-I of 7 November 1995:  
- Municipality of Yerevan 
- Municipality of Ashtarak, 
- Municipality of Aparan 
- Municipality of Talin 
- Municipality of Artashat 
- Municipality of Ararat 
- Municipality of Masis 
- Municipality of Vedi 
- Municipality of Armavir 
- Municipality of Vagharshapat 
- Municipality of Mecamor 
- Municipality of Gavar 
- Municipality of Chambarak 
- Municipality of Martuni 
- Municipality of Sevan 
- Municipality of Vardenis 
- Municipality of Vanadzor 
- Municipality of Alaverdi 
- Municipality of Akhtala 
- Municipality of Tumanyan 
- Municipality of Spitak 
- Municipality of Stepanavan 
- Municipality of Tashir 
- Municipality of Hrazdan 
- Municipality of Abovyan 
- Municipality of Byureghavan 
- Municipality of Eghvard 
- Municipality of Tsakhkadzor 
- Municipality of Nor Hachn 
- Municipality of Charentsavan 
- Municipality of Gyumri 
- Municipality of Artik 
- Municipality of Maralik GPA/ACC/ARM/8 
Page 8  
 
- Municipality of Kapan 
- Municipality of Agarak 
- Municipality of Goris 
- Municipality of Dastakert 
- Municipality of Megri 
- Municipality of Sisian 
- Municipality of Qajaran 
- Municipality of Eghegnadzor 
- Municipality of Jermuk 
- Municipality of Vayq 
- Municipality of Ijevan 
- Municipality of Berd 
- Municipality of Dilijan 
- Municipality of Noyemberyan 
  Note to Annex 2  
 
 The conditions specified in the Ge neral Notes apply to this Annex. 
  GPA/ACC/ARM/8 
 Page 9 
 
 
   
ANNEX 3 
 
All Other Entities which Procure in Accordance with 
the Procedures of this Agreement 
 
 Thresholds : 
 Goods         SDR 400,000 
 
Services (specified in Annex 4)      SDR 400,000 
 Construction services (specified in Annex 5)    SDR 5,000,000 
 
 
 All legal persons (authorities, establishments  and foundations) governed by public law, 
particularly:   1. State or community non-commercial (non-profit) organizations.  
 2. Commercial organizations with over fi fty percent of government or community 
shareholding. 
  3. Public services, including utilities sector companies, whose procurement is covered 
by Law on Procurement. 
 
 
Notes to Annex 3  
 
1. This list of legal persons governed by public  law shall be published in  Procurement official 
electronic bulletin:  www.procurement.am
 
 2. The conditions specified in the Ge neral Notes apply to this Annex. 
 GPA/ACC/ARM/8 
Page 10  
 
 
ANNEX 4 
 
Services 
  
 Universal List of Services is including all services as contained in document MTN.GNS/W/120.  
 
Note to Annex 4  
 
 The conditions specified in the Ge neral Notes apply to this Annex.  GPA/ACC/ARM/8 
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ANNEX 5 
 
Construction Services 
  
 A construction services contract is a contract which has as its objective the realization by whatever means of a civil or bu ilding works, in the sense of Division 51 of the Central Product 
Classification.  
 
Threshold : 
  SDR 5,000,000 for Annexes 1, 2 and 3.  
 
List of construction services offered : 
  All services listed under Division 51.  
 
Note to Annex 5  
 
 The conditions specified in the Ge neral Notes apply to this Annex. GPA/ACC/ARM/8 
Page 12  
 
 
GENERAL NOTES 
  1. Armenia will not extend the benefits of this Agreement to any contract: 
 
 (a) awarded under an international agreemen t and intended for the joint implementation 
or exploitation of a project by the signatory States; 
  (b) awarded under an international agreemen t relating to the stationing of troops; 
 
 (c) funded wholly or in part by or aw arded under the particular procedure of an 
international organization, where the applicab le procedure would be inconsistent with 
the Agreement. 
 
2. This Agreement shall not apply to procurements  of agriculture products made in furtherance 
of agriculture support programme and human feeding programmes. 
 3. This Agreement shall not apply to goods a nd services procured with a view to commercial 
sale or resale, or for use in the production of goods  or provision of services for commercial sale or 
resale, provided that the contracting authority enj oys no special or exclusive right to sell and other 
entities are free to sell it under the same conditions as the contracting entity. 
 4. This Agreement shall not apply to the ac quisition of land, existing buildings or other 
immoveable property or concerning rights thereon.
 
 
  GPA/ACC/ARM/8 
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APPENDIX II 
 
PUBLICATIONS UTILIZED BY PARTIES FOR THE PUBLICATION 
OF NOTICES OF INTENDED PROCUREMENT - PARAGRAPH 1 
OF ARTICLE IX AND OF POST-AWARD NOTICES –  
PARAGRAPH 1 OF ARTICLE XVIII 
  
Procurement official electronic bulletin: 
www.procurement.am
 
  
APPENDIX III 
 
PUBLICATIONS UTILIZED BY PARTIES FOR THE PUBLICATION ANNUALLY OF 
INFORMATION ON PERMANENT LISTS OF QU ALIFIED SUPPLIERS IN THE CASE OF 
SELECTIVE TENDERING PROCEDURES - PARAGRAPH 9 OF ARTICLE IX 
  
Procurement official electronic bulletin: 
www.procurement.am
 
  
APPENDIX IV 
 
PUBLICATIONS UTILIZED BY PARTIES FOR THE PUBLICATION OF LAWS, 
REGULATIONS, JUDICIAL DECISIONS, ADMINISTRATIVE RULINGS OF GENERAL 
APPLICATION AND ANY PROCEDURE REGARDING GOVERNMENT PROCUREMENT 
GOVERNED BY THIS AGREEMENT - PARAGRAPH 1 OF ARTICLE XIX 
  
Procurement official electronic bulletin: 
www.procurement.am
 
 GPA/ACC/ARM/8 
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ATTACHMENT B 
 
DRAFT LAW ON PROCUREMENT 
 
REPUBLIC OF ARMENIA 
 
 
SECTION 1:  GENERAL PROVISIONS 
 
1. Article 1:  Subject regulated by the law 
 
 This law regulates relations pertaining to th e procurement of goods, works and services by 
clients, and establishes principal rights and responsibilities of parties thereto. 
 
2. Article 2:  Main terms used in the law 
 
The following main terms are used in this law: 
 
 (1) Client:  
(a) State administration bodies and local self-governments, state and 
community agencies envisag ed in the Republic of Armenia Constitution 
and laws; 
 
(b) The Republic of Armenia Central Bank; 
 
(c) State or community non-commercial (non-profit) organizations; 
 
(d) Entities with over fifty percent of government or community shareholding; 
 
(e) Associations (unions) formed by the state or community or state or 
community non-commercial (non-profit) organizations or entities with over fifty percent of government or community shareholding; 
 
(f) Legal entities recipient of funds donated by the gover nment or community 
or the Republic of Armenia Central Bank or state or community non-commercial (non-profit) organizations or entities with over 50 percent of government or community shareholding, when they carry out procurement at the cost of these funds; 
 
(g) Public undertakings. 
 
(2) Public undertakings: 
 
(a) Physical or legal entities operating  in the regulated public services sector 
and included in the list approved by the Republic of Armenia Public 
Services Regulatory Commission. 
 
(b) Other entities operating in the public services sector and carrying out one or 
more of the relevant activities stipulated by this Article, based on a special or 
exclusive right, if the procurement is conducted for the purpose of exercising 
such activities. 
  GPA/ACC/ARM/8 
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  (c) Entities over which the government or  community or a state or a community 
non-commercial (non-profit) organization or an entity with over fifty percent of government or community shareholding has a dominant influence.  The presumption of exerting the dominant influence is also applied to all situations when the government or community or the state or 
community non-commercial (non-profit) organization or the entity with 
over 50 percent of government or community shareholding can appoint more than half of the members of the entity’s administrative, management or supervisory body. 
 
 (3) Procurement - Purchase of material an d non-material assets (values) - all types of 
goods, works and services - reimbursed by the C lient.  For the purposes of this law: 
 
(a) Leasing is also a purchase of service; 
 
(b) The following is also procurement: 
 
(i) Purchase of goods, works and se rvices by legal entities from the 
funds donated to such entities by the Client; 
 
(ii) Purchase of goods, work s and services by barter; 
 
(iii) Public-private partnership tran sactions, including asset management 
and concession transactions. 
  (4) Contract - a written transacti on concluded for procurement purposes. 
 
 (5) Framework agreement  – a preliminary contract signed for the purposes of concluding 
a contract.   (6) Bidder - an entity participating in  procurement processes for the purposes of 
concluding a contract (framework agreement) with the Client. 
 
 (7) Selected bidder - bidder(s) offered a contract (framework agreement) by the Client.   (8) Invitation  - terms offered to the bidder for the purposes of contract (framework 
agreement) signing. 
 
 (9) Bid - an offer submitted by the bidder based on the invitation.   (10) Bid security - in cases stipulated in th is law, a guarantee securing implementation of 
the obligations assumed in the bid by the bidder.  
 (11) Contract performance security - in cases stipulated by this law, a guarantee securing 
implementation of the obligations being assumed unde r the contract (framework agreement) by the 
selected bidder.   (12) Electronic auction - when carrying ou t the procurement, repetitive process involving 
electronic devices for presentation of new prices, revised downwards, and/or new non-price proposals, 
which occurs after an initial full evaluation of the bids, enabling to rank in descending order the 
bidders, who submitted the bids, using automatic ev aluation methods (means). 
 GPA/ACC/ARM/8 
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 (13) Electronic means - the use of electronic equipment, including software and hardware for the processing and storage of data, which is transmitted, conveyed and received by wire, radio, 
optical means or by other electromagnetic means.   (14) Authorized Body - a state body of the Republic of Armenia Executive responsible for 
the development and implementation of the Republic  of Armenia Government policy in the area of 
public finance management.   (15) The Center for Procurement Support - a legal entity implementing competences 
stipulated by this law. 
 
 (16) Bulletin - the Electronic Procurement Bulletin published by the Authorized Body.   (17) Special or exclusive right - the right that results from any form of authorization granted by a competent authority by the way of any legislative, regulatory or administrative provision, 
having as effect to reserve the right to exercise certain activities, including in the field of public 
services, only to one or to a limited number of entiti es, and which substantially limits the ability of 
other entities to carry out such activities.  
  (18) Subject of procurement - any goods, works or services being purchased. 
 
 (19) Description of procurement subject - t echnical specifications of, and procurement and 
payment terms and conditions for the subject of procurement.   (20) Consulting services - services, which render non-material assets (values) free from physical substance. 
 
 (21) Consultant - an entity, which participat es in the procurement process for the purposes 
of signing a consulting services' contract with the Client.   (22) Selected consultant - a consultant(s) offered a consulting services' contract by the 
Client. 
 
 (23) Procurement base unit - an amount equal to one million Armenian Drams. 
  (24) Relevant activities - following activiti es in the field of public services to the 
procurement under which this law shall apply.  They include: 
 
(a) Generation of electricity and ther mal power (including their combined-
cycle cogeneration), transport and distribution of electricity, heat and natural gas, provision of services of the power and natural gas sector system operator, construction of new electric ity and heat generation capacities or 
rehabilitation of existing capacities, cons truction of natural gas, heat or 
electricity transport or distribution networks as well as provision of energy 
market services. 
 
(b) Supply of drinking, irrigation and i ndustrial water as well as wastewater and 
water treatment services. 
 
(c) Operation of public electronic network in the field of electronic 
communication. 
  GPA/ACC/ARM/8 
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  (d) Postal services, railway transport services and services for mandatory 
technical inspection of motor vehicles subject to tariff regulation by the Republic of Armenia Public Services Regulatory Commission. 
 
(e) The provision or operation of networks  intended (existing) to provide public 
services in the field of transport. A ne twork for providing transport services is 
considered to exist, in the case when  the operation conditions, including the 
condition on the routs to be served, the capacity to be made available or the frequency of the service are laid down by  a competent government authority. 
 
  (f) Exploitation of a geographical area: 
 
(i) for the purpose of exploring for or extracting oil, gas, coal or other 
solid fuels; 
 
(ii) for the purpose of the provision of airports or other terminal facilities 
to carriers by air or inland waterway. 
 
(g) Other activities specified by the Republ ic of Armenia for which the Republic 
of Armenia government can set out the conditions and particularities for application of this law. 
 
 (25) Procurement process - an entirety of actions aimed at execution of procedures, rights and responsibilities pertaining to carrying out procur ement as stipulated by the Republic of Armenia 
legislation on procurement.  3. Article 3:  Purpose and scope of the law  
1. The purpose of this law is to ensure valu e-for-money in the procurement process, namely: 
  (1) Purchase of goods, works and services adequa te to the needs of and requisite to carry 
out the powers delegated to the Client;  and 
 
 (2) Exchange of funds allocated for proc urement for adequate goods, works and services. 
 2. For the purposes of achieving the objective set out in the paragraph 1 of this Article, the procurement process shall be based on the following principles: 
 
 (a) Efficiency, effectiveness and economy of procurement..   (b) Administration of procurement process based on unified rules and principles of 
competition, transparency, openness and non-discrimination. 
 
 (c) Expansion of bidders' circle and promotion of competition among them for the 
purposes of contract signing. 
  (d) Prevalence of equal right for every person to participate in the procurement process 
regardless of being a foreign indivi dual, entity or a stateless person. 
 
3. The scope of this law shall cover the procur ement carried out in the Republic of Armenia.  
The Republic of Armenia Government establishes the procedure for procurement outside of the 
Republic of Armenia.  GPA/ACC/ARM/8 
Page 18  
 
4. The scope of this law shall not cover the following transactions: 
  (1) Procurement of arbitration (including mediation) services. 
  (2) Labour contracts. 
 
 (3) Procurement of services from entities envisag ed in the orders issued by officials 
carrying out criminal, administrative or judicial proceedings, in cases stipulated by law.   (4) Purchase of shares in aut horized capital of legal entities. 
 
 (5) Acquisition of securities and transactions related to trust management of securities. 
 
4. Article 4:  The Republic of Ar menia legislation on procurement 
 
1. The Republic of Armenia legislation on pr ocurement is comprised of the Republic of 
Armenia Civil Code, this law and other legal acts.  2. In the event if an interna tional agreement sets out provisions other than this law, the 
provisions of the international agreement prevail.  
3. The Republic of Armenia Government and th e Authorized Body adopt other legal acts on 
procurement to ensure the accomplishment of the purpose and requirements of this law. 
 4. Other legal acts on procurement are also published in the Bulletin. 
 5. Article 5:  Eligibility to participate in  procurement process and qualification criteria 
 
1. Each person has equal right to participate in  the procurement regardless of being a foreign 
individual, entity or a stateless person.  2. Except cases of procurement carried out under th e procedure stipulated in the Article 20(5) of 
this law, the following persons shall not have the right to participate in the procurement: 
  (1) Have been ruled insolvent by court.   (2) Have outstanding arrears against the Re public of Armenia tax and mandatory social 
insurance payments. 
  (3) Have a representative of the executive body, who – during the three-year period preceding the bid submission - has been convicted for offences against economic activities or state 
service, except cases when such conviction has been  lifted or nullified as stipulated by law. 
 
 (4) Have been included in the list of bidders that have violated the rules of procurement 
business ethics ("black-list").  The bidder is included in  this list, if during the year preceding the bid 
submission:  
(a) Has repeatedly breached an obliga tion assumed under a contract or a 
procurement process leading to a unilate ral termination of the contract by 
the Client or a suspension of that bi dder from further pa rticipation in the 
procurement process; 
   (b) Has submitted falsified data  under the procurement process; 
  GPA/ACC/ARM/8 
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    (c) As a selected bidder, has repeated ly refused to sign the awarded contract; 
 
(d) In a manner prescribed by law, the bi dder has been convicted by a decision 
for anti-competitive behaviour during procurement process, such as collusion or abuse of dominant position. 
 
 (5) Within three years preceding the bid subm ission, the bidder or a representative of its 
executive body has been convicted for offenses against economic activities or state service, except 
cases when such conviction has been lifte d or nullified as stipulated by law. 
 
3. The Authorized Body publishes the list of bidders that have violated the rules of procurement 
business ethics.  The Authorized Body formally in itiates a procedure at the Procurement Complaint 
Review Board based on the information about a bi dder who has breached the rules of procurement 
business ethics.  After hearing the opinion of the bidd er concerned, the Review Board decides if the 
bidder has to be included in the list stipulated in th is Article.  An entity can be enlisted for a period 
from six months to three years depending on the gr aveness of the breach of the rules of procurement 
business ethics.  4. The bidder must satisfy the qualification criteri a set out in the invitation.  The bidder shall 
have the following items required to  fulfil contractual obligations: 
 
 (a) Eligibility. 
  (b) Compliance of professional activity to  activities stipulated in the contract. 
  (c) Professional experience. 
 
 (d) Technical resources.   (e) Financial resources.   (f) Labour resources. 
 
5. No other criteria related to bidder's eligib ility and qualification for participation in the 
procurement can be established, if such criteria are:   (a) Not stipulated in this Article. 
 
 (b) Discriminatory and limit the competition by unduly complicating or simplifying 
potential participation in the procurement process. 
  (c) Inadequate, i.e., not directly require d for execution of contractual obligations. 
 
6. The procedure and criteria for evaluating the bidder's eligibility and qualification to 
participate in the given procurement as well as th e requirements for documents (information) required 
thereto are set out in the invitation and they shal l be based on general conditions set out by the 
Republic of Armenia government.  6. Article 6:  Equal participation in procurement 
 
1. Any entity, regardless of bei ng a foreign natural person or a le gal entity or a stateless person, 
has equal right for participati on in the procurement process. 
 GPA/ACC/ARM/8 
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2. Participation of any entity in the procurement can be restricted only by the Republic of Armenia Government decision based on the national security or defense interests of the Republic of Armenia.  3. If the paragraph 2 of this Article is inapp licable, then the procurement or pre-qualification 
announcement includes a notice that any person regardl ess of being a foreign natural person or a legal 
entity or a stateless person can submit the bid; the noti ce is not subject to changes.  If the paragraph 2 
of this Article is applied, then the procuremen t or pre-qualification announcement includes a notice 
about that.  
4. In the event if the Republic of Armenia legislation requires special permit (license) or 
fulfilment of specific criteria in order to carry out contractual obligations but the legislation of the 
foreign country of residency of a bidder does not ha ve such requirements, then, in cases specified by 
the Republic of Armenia Government, such bidder h as the right to conclude the contract without 
submitting a special permit (license) or without sa tisfying the requirement for fulfilment of specific 
criteria. 
 5. Concurrent participation of entities founded by  the same person(s) or entities with over fifty 
percent of shares owned by the same person(s) in th e same procurement process is prohibited with the 
exception of:  
 (1) Entities founded by the Government or communities. 
  (2) Cases of participation stipulat ed under Article 27(6) of this law. 
 6. Legal entities with government or community shareholding participate in the procurement 
having equal rights with other bidders and governme nt or community shareholding does not lead to a 
preferential treatment or to setting out and applying any other favourable conditions for such entities. 
 
7. Article 7:  Documents, their validity and e-procurement 
 
1. Recording and maintaining of procurement re lated information must be ensured through the 
development of relevant document s, including electronic documents. 
 2. If the invitation sets out a condition for the bidde r to submit information, it also contains the 
validity terms for such information.  In the fra mework of functions set out in this law, the 
communication can be carried out electronically, including: 
 
 (1) Electronic provision of invitation.   (2) Electronic submission of bids in cases and pursuant to the procedure stipulated in the invitation.  
3. Provisions of this Article pertaining to elect ronic communication or its means are applied to 
the extent its user is authorized to use electronic communication means. 
 4. The tools to be used for communication by  electronic means, as well as their technical 
characteristics, must be non-discriminatory, generally available to any potential bidder and 
interoperable with information and communi cation technologies means in general use. 
 5. The following rules are manda torily applicable to means fo r the electronic transmission and 
receipt of bids:   GPA/ACC/ARM/8 
 Page 21 
 
 
   (1) The information regarding the specifica tions necessary for the electronic submission 
of bids, including encryption, shall be  available to any interested bidders. 
  (2) The electronic devices for electronic receip t of bids must guarantee the integrity and 
confidentiality of the received data, fulf illing at least the following conditions: 
 
  (a) The exact time and date of the r eceipt of bids can be precisely determined. 
 
(b) Before the time limits laid down for the transmission of the data, no one can 
have access to the transmitted data. 
 
(c) In the case when the interdiction of  access to the transmitted data has been 
breached, the unauthorized access can be clearly detectable. 
 
(d) Only authorized persons may set or modify the dates for opening data 
received. 
 
(e) During the different stages of proc urement procedure, the access to received 
data is possible only by an simultaneous  action of at least two authorized 
persons/systems and only after the date established according to provisions of 
letter b) of this paragraph. 
 
(f) Data received and opened in accordan ce with the requirements of this 
paragraph must remain accessible only to persons authorized to acquaint themselves therewith. 
 
6. The bidders shall submit, before the expiry of  the time limit laid down for submission of bids, 
the documents, certificates, declarations and other documents, in case these are not available in electronic format.  7. The Republic of Armenia Government specifies the particularities of the electronic procurement procedure, which could di ffer from provisions of this law. 
 
8. Article 8:  Minutes of procurement procedure and reports on procurement 
 
1. If the estimated price exceeds the procurement base unit, the Client drafts minutes of the 
procurement procedure.  Based on the method of  procurement, the minutes of the procurement 
procedure contain: 
  (1) Name and location of Client.   (2) Need for procurement and justifi cation of procurement method selection. 
 
 (3) Invitation and changes made therein. 
  (4) Procurement related inquires a nd explanations provided thereto. 
  (5) Information about bidders: name, location or residence, contacts. 
 
 (6) Prices offered in the bids.   (7) Bid evaluation procedure and the results of evaluation.  GPA/ACC/ARM/8 
Page 22  
 
 (8) If a bid is rejected, a justification of such decision.   (9) A copy of the contract; if no contract is awarded as an outcome of the procurement process, then a justification of such decision.  
 (10) If illegal actions were identified during the procurement process, a brief description 
of such actions and of measures undertaken.   (11) Complaints related to the procur ement process and decisions made thereto. 
 
 (12) Other necessary information. 
 2. For purposes of registering procurement tran sactions that originate liabilities for the state, 
within seven calendar days of the signature of c ontract financed by the state budget or cancellation of 
the procurement process, the Client submits to the Authorized Body a report on the procurement 
process.  The Authorized Body determin es the standard form of the report. 
 3. If the procurement value does not exceed the Pr ocurement base unit, the Client ensures that 
the relevant documents (or electronic documents) on activities implemented for procurement purposes 
and on their grounds exist and maintained.  
4. The Client must provide a copy of the procurement procedure minutes or its excerpt, except 
for procurements containing state, official or banking  secrets, to any person, within five calendar days 
after receipt of such request.  5. To prepare and publish the annual procuremen t report, the Clients shall furnish to the 
Authorized Body reports, in the manner and within the deadlines set out by the latter. 
 
9. Article 9:  Contract award decision, standstill period, contract signing and conditions 
 
1. In case of bidding, prior to contract signature, an announcement on contract award decision has to be published.  It can be announced: 
 
 (1) Either at the meeting on finalization of bidding results through a public debriefing to 
which all the bidders in the procurem ent process have been invited;  or 
  (2) Such announcement can be sent to all bidders involved in the procurement process by 
electronic means, fax or registered mail;  or 
  (3) Such announcement is posted at the website  of the Authorized Body and, if possible, 
at the website of the Client as well.  2. The contract award decision shall contain brie f information on evaluation of bids and relevant 
reasons for the selection of this bidder and a statem ent on standstill period.  The standstill period is the 
period from the day following the date on which the contract award decision is announced to the day the Client’s eligibility to sign the contract.  3. The standstill period: 
 
 (1) Shall be at least 10 calendar days, in ca se of procurements exceeding the Procurement 
base unit by fifty times.   (2) Shall be at least 5 calendar days, in case of procurements not exceeding the 
Procurement base unit by fifty times.  GPA/ACC/ARM/8 
 Page 23 
 
 
   
4. The standstill period stipulated under the para graph 3 of this Article does not apply, if: 
  (1) This law does not require publication of a contract award notice.  
 (2) There was only one bidder in the tender, who is awarded the contract. 
 5. The Client signs the contract, if no bidder complains against the award decision at the Procurement Complaint Review Board within the sta ndstill period of paragraph 3 of this Article.  A 
contract concluded before the expiry of the standstill period is null and void. 
 
6. Relations between the procurement parti es not regulated by the Republic of Armenia 
legislation on procurement are regulated under the contract.  Th e Republic of Armenia government 
shall set out the general conditions of the contract.  10. Article 10:  Contract award announcement publication  
 If the contract price exceeds the Procurement ba se unit, then the Client, within five calendar 
days of the contract signing, furnishes to the Authorized Body an announcement about the awarded 
contract to be published in the Bulletin, except for pr ocurements containing state, official or banking 
secrets. 
 
11. Article 11:  Bidders' illegal actions 
 
 If a bidder or a representative of its management body commits any illegal actions against economic activities or state service under the procurem ent process, then the Client, on the day when 
such grounds are identified, no tifies about this the Authorized  Body and the law enforcement 
bodies providing them and the bidder with the grounds for such decision.  
12. Article 12:  Procurement subject description 
 
1. The description of procurement subject shall fully and clearly describe technical 
specifications of goods, works or services being pr ocured as well as terms and conditions for their 
purchase and payment, ruling out any alternative inte rpretation.  The description of the procurement 
subject is included in the contract.  2. The description of procurement subject: 
 
 (1) Shall afford equal access to th e competition for potential bidders. 
  (2) Must not have the effect of creating unjustified obstacles to the opening up of procurement to competition.  
 (3) Shall be objectively justified and adequate  to need for which the given procurement is 
carried out.   (4) Shall include full and adequate description of specifications and technical data of the 
procurement object, while in case of works' procurem ent, it shall also include the bill of quantities, 
timetable and other non-price conditions. 
 3. Based on specific features of the procuremen t subject, its technical specifications, to the 
possible extent, include a clear description of requirements for quality, standard, safety, legend, terminology, packing, unloading, dimension, design and other technical characteristics related to the GPA/ACC/ARM/8 
Page 24  
 
goods, works or services being procured; the descripti on is based on the international standards and 
existing Republic of Armenia normative-technical doc uments and standards or, if such documents and 
standards are missing, on temporary technical references.  4. The technical specifications can also be defi ned in terms of perfor mance and/or functional 
requirements that have to be described sufficiently accu rate in order to allow bidders and the Client to 
understand exactly the subject-matter of th e contract and to award the contract. 
 5. Technical specifications shall not require or  refer to any trademark, brand name, license, 
design or model, country of origin or a specifi c source or a manufacturer , except cases, when the 
description of the procurement subject is impossible without such requirement or reference. In the 
event if references are made, the technical specifi cations must contain the words "or equivalent". 
 6. The Republic of Armenia Government specifi es the procedure for approval and prior review 
of the description of procurement subject. 
 
7. The requirements for the types and the descrip tions of public-private partnership transactions 
as well as the specifics of the procedure for developm ent and approval of those descriptions shall be 
specified by the Republic of Armenia Government.  
13. Article 13:  Official language of procurement procedure 
 1. Procurement related documents are drafted and, in cases stipulated in this law, published in 
the Bulletin in Armenian, while advertisements re lated to an open bidding are also published in 
English and Russian.  
2. In case of procurements exceeding the Procurement base unit by 50 times the bids could be 
submitted in English or Russian only, unless otherwise stipulated in the invitation. 
 
14. Article 14:  Procurement planning and financing 
 
1. The Republic of Armenia Government approv es the procurement plan to be funded from the 
state budget and based on the administrative and opera tional classification.  The procurement plan is 
approved on the basis of procurement subject, quantity, total price and procurement method. 
 2. The Republic of Armenia Government, followi ng the procedure stipulated under paragraph 1 
of this Article, approves the procurement plan that c ontains a state or official secret, and particularly 
includes goods, works and services required to provi de military equipment, weapons, ammunition and 
armament.  3. In case of procurement funded from other sources, the Client approves the annual 
procurement plan according to the procedure and deadlines specified by the Republic of Armenia 
Government.  The procurement plan is published in  the Bulletin, except for procurements containing 
state, official or banking secrets. 
 4. Funds for procurement of civil works are allo cated on the basis of design estimates that have 
been approved and expert reviewed in accordance  with the established procedure.  Funds for 
procurement of civil works without design estimates  cannot be allocated, unless otherwise stipulated 
by law. 
 5. If the estimated price exceeds the amount allo cated for that procurement in the specified 
period, then, in case of contract signing, funds ar e earmarked for the period following this period: 
 
 (1) To carry out the procurement stipulated under the procurement contract;  or  GPA/ACC/ARM/8 
 Page 25 
 
 
   
 (2) To temporary suspend this procurem ent, if funds are required for temporary 
suspension.  6. Pursuant to the procedure stipulated in this la w a contract can be signed prior to the allocation 
of funds provided that procurement under the contract could be done, when necessary funds are 
allocated.  The contract signed under this provision is  terminated, if the funds for contract execution 
are not allocated during the year following the day of contract signing.  This paragraph can be applied, 
if:  
 (1) The Client is unable to envisage ( calculate) initially the funds requisite for 
procurement.   (2) Supply of goods, implementation of works or provision of services shall begin within 
such a deadline calculated from the date of allocating funds for the given procurement, which makes 
the use of any competitive procurement methods impossible. 
 7. The Client assumes financial obligations under a contract, if financial allocations required to 
carry out that procurement have been earmarked and within the framework of those allocations. 
 8. The funds for procurement are allocated under relevant budget items specified for purchase of 
goods, works and services of economic classification of budget expenditures.  It is forbidden to 
allocate funds under other items of economic classifi cation of budget expenditures, if procurement 
will be carried out with these funds.  9. The Republic of Armenia Government specifies  the procedure for planning and financing of 
procurement. 
 
SECTION 2:  REGULATION AND COOR DINATION OF PROCUREMENT PROCESS 
 
15. Article 15:  Regulation and c oordination of procurement process 
 1. The Authorized Body carries out the regulati on and coordination of the procurement process. 
The Authorized Body cannot be involved in procurem ent processes and be a contract party, except for 
procurement carried out for its own needs.  2. To facilitate activities for regulation and coordination of the procurement process, the 
Authorized Body: 
  (1) Coordinates the efforts for development of draft legal acts on procurement and adopts 
or submits them for approval.   (2) Facilitates the methodological gu idance for the procurement process. 
 
 (3) Ensures the existence of  a system for professional e ducation, continuous training 
and qualification assessment of Clie nts' procurement specialists. 
  (4) Approves standard document s used in procurement processes. 
 
 (5) Facilitates the publication of the Bulletin.   (6) Coordinates the procurement related collaboration between international organizations, foreign states and the Republic of  Armenia state bodies an d local self-governments. GPA/ACC/ARM/8 
Page 26  
 
  (7) Registers procurement transactions th at originate liabilit ies for the state. 
  (8) Publishes:  
  (a) The annual public procurement report; 
   (b) The list of qualified procurement specialists;    (c) The list of officials, who breached the requirements of the Republic of 
 Armenia legislation on procurement. 
 3. The head of the Client appoints a procurement coordinator, who:   (1) Is responsible for the facilitation and coordination of the Client's procurement 
process. 
  (2) Provides an opinion on documents approved by the Client's under the procurement process.   (3) Carries out the powers of the secretary of the evaluation committee. 
 
 (4) Drafts the minutes of a given procuremen t and the procurement contract and submits 
them to the approval of the Client's head.  4. The following could be appointed as the Client’s procurement coordinator: 
 
 (1) Relevant unit.   (2) Official(s).   (3) Invited person, i.e., advisor(s). 
 
5. The staff of the procurement coordination un it, officials and invited person(s) shall be 
included in the list of qualified procurement speci alists published by the Authorized Body.  The 
individuals are included in the aforementioned list after successfully passing the examination 
evaluating their knowledge of the Republic of Armenia legislation on procurement organized 
following the procedure set out the Authorized Body. 
 
16. Article 16:  The Center  for Procurement Support 
 
1. The Center for Procurement Support:  
 (1) Implements professional education a nd continuous traini ng for bidders and 
procurement coordinators.   (2) Provides professional advice to bidders, clients and other entities. 
 
 (3) Facilitates an assessment of eligibility and qualifications of  bidders, concludes 
framework agreements, compiles and publishes in the Bulletin: 
   (a) The list of bidders, who concluded framework agreements. 
 
  (b) The list of pre-qualified poten tial bidders, i.e., the "White List".  GPA/ACC/ARM/8 
 Page 27 
 
 
   
 (4) Implements service and coordination functions for the e-procurement system. 
  (5) Compiles and publishes electronic newsle tters on goods, works and services, analyzes 
and publishes procurement statistics, analyzes procurement data and provides conclusions. 
 
 (6) On a sampling basis, conducts an expert  assessment of technical specifications of 
procurement subject and bidder qualification criteri a approved by a Client in order to ensure the 
compliance to the requirements for equal treatment and non-discrimination sti pulated under this law. 
Submits the assessment results to the clients and the Authorized Body. 
 
 (7) Ensures the existence of a procurement support service (hotline) in order to register 
procurement related signals and pr omptly respond to the questions. 
  (8) Acts as the secretariat of the Procurement Complaint Review Board: 
 
  (a) Arranges the Board meetings;    (b) Evaluates the completeness of received complaints (appeals) and provides an 
 opinion on all complaints to the Board; 
 
  (c) Publishes the Board decisions. 
  (9) Implements other powers set out by this  law, the Republic of Armenia Government 
and the Authorized Body.  
 The competences of the Procurement Support Center are set out by the contract concluded 
between the Center and the Authorized Body.  
SECTION 3:  PROCUREMENT PROCEDURES AND APPLICATION CONDITIONS THEREOF 
 
17. Article 17:  Procurement procedures 
 
1. The procurement procedures are:   (1) Open procedure.  
 (2) Competitive dialogue. 
  (3) Restricted procedure.   (4) Competitive procedure.  
2. Open procedure is the preferable and basic procurement method.  Only in cases stipulated in 
this law, other procurement procedures can be used.  3. A contract or a framework agreement is c oncluded as a result of the procurement process. 
 
4. A framework agreement is concluded if the s ubject of procurement is for periodic use and is 
included in the list approved by the Authorized Body; otherwise, a contract shall be concluded.  The 
procedure for procurements under the framework ag reement is set out by the Republic of Armenia 
Government.  GPA/ACC/ARM/8 
Page 28  
 
5. A simplified procurement method can be u sed for the procurement of goods, works or 
services of general use with standard (similar) technical specifications and their price does not exceed twenty Procurement base units.  The particularities of procurement by simplified method are set out by the Republic of Armenia Government.  
6. In cases and following the procedure set out by the Republic of Armenia Government, the 
procurement might be done from exchanges.  
18. Article 18:  Conditio ns for use of a compet itive dialogue method 
 1. Any bidder is eligible to participate in competitive dialogue; however, the Client extends the 
invitation for dialogue to pre-qua lified bidders only.  In case of a competitive dialogue, a pre-
qualification procedure is arranged.  The purpose of th e dialogue is to develop one or more alternative 
descriptions of the procurement subject fulfilling the requirements of the Client.  As a result of the 
dialogue, the Client extends to the pre- qualified bidders a final invitation. 
 
2. The procurement can be carried out by a compe titive dialogue method, if the Client is not able 
to adequately (objectively) specify the descripti on of procurement subject in accordance with the 
provisions of this law and:   (1) Gives the bidders an opportunity to propose possible alternative descriptions of 
procurement subject;  or 
  (2) There is a need to negotiate with the bidde rs to clarify some specific features of the 
procurement subject description.  
3. The particularities of procedure for using the competitive dialogue method are set out by the 
Republic of Armenia Government.  
19. Article 19:  Conditions for use of a restricted procedure 
 
1. Any bidder is eligible to participate in restricted procedure; however, only pre-qualified 
bidders that received the Client's invitation are eligible to submit bids.  In case of a restricted 
procedure, a pre-qualification procedure is arranged.  In case of a restricted procedure, negotiations 
are not arranged.  2. The procurement is carried out by a restricted procedure, if it contains a state, official or 
banking secret. 
 3. The particularities of procedure for using the restricted procedure are set out by the Republic 
of Armenia Government.  
20. Article 20:  Conditions for use of a negotiated procedure 
 
1. In case of a negotiated procedure, the Client  negotiates with the pre-qualified bidders the 
terms and conditions of the contract and concludes it. 
 2. Negotiated procedure is arranged: 
 
 (1) By publishing a prior procurement announcement;  or   (2) Without publishing a prior procurement announcement.   GPA/ACC/ARM/8 
 Page 29 
 
 
  3. A negotiated procedure can be arranged by p ublishing a prior procurement announcement, if: 
  (1) The procurement is carried out to purchase specific non-material assets for designing works, research, expertise, testing or scientific purposes.  
 (2) Due to emergency or other unforeseeable circumstances, there arises an urgent need 
for procurement and the nature and risks of that need  make the use of an open or restricted procedure 
impossible due to time constraints, provided that such need was impossible to foresee. 
 4. In cases stipulated under the paragr aph 3 of this Article, the Client: 
 
 (1) Arranges a pre-qualification procedure a nd negotiates with pre-qualified bidders the 
bids they have submitted in order to select the best proposal.   (2) Ensures an equal treatment for all bidders. 
 
 (3) Can carry out a negotiated procedure in successive stages applying the criteria set out in the invitation.  5. A negotiated procedure can be arrange d without publishing a prior procurement 
announcement, if: 
 
 (1) Due to copyright or related rights, existe nce of special or exclusive rights, the goods, 
works or services can be obtained from a single person only.   (2) Insofar as an urgent need for procuremen t arises and when, for reasons of emergency, 
another method of procurement is impossible due to time constraints, provided that such need was 
impossible to foresee.  Situations caused by natu ral and/or man-caused disasters and/or accidents 
and/or other unforeseen reasons are considered as emergency.   (3) For additional quantities of products wh ich are intended to replace or extend the 
equipments/installations initially suppl ied by a supplier, where a change of the original supplier would 
oblige contracting authority to acqui re products having different tec hnical characteristics which would 
result in incompatibility or disproportionate techni cal difficulties in operation and maintenance.  This 
condition is applicable for three-year period fo llowing the signing of the original contract. 
  (4) The Client, after procurement of works or services done from an entity, decides that 
an additional procurement of works or services not incl uded in the original contract but which, due to 
unforeseen circumstances, have become necessary for the performance of the original contract, shall 
be done from the same entity, provided that:    (a) The additional works or services contract cannot be technically or 
 economically separated from the orig inal contract without significant 
 inconvenience to the Client;  and 
   (b) Its price would not exceed twenty  percent of the price of the original 
 procurement contract. 
 
Under the provisions of this paragraph, an additional procurement from the same entity can be done 
only once.   (5) For the goods that can be purchased on  particularly advantageous conditions, from 
either an entity which definitively winds up its business  activities, or the receivers or liquidators of a GPA/ACC/ARM/8 
Page 30  
 
bankruptcy, an arrangement with creditors or a si milar procedure, specified by the Republic of 
Armenia government.   (6) The price of procurement does not  exceed the Procurement base unit. 
 
The particularities of procedure for using the nego tiated procedure are set out by the Republic of 
Armenia Government.  
21. Article 21:  Pre-qu alification procedures  
 1. In case of arranging a pre-qualification proce dure, an announcement on pre-qualification is 
published.  The announcement in Armenian, Englis h and Russian is published in the Bulletin and 
contains the following information:   (1) Name and location of the Client. 
 
 (2) The code of procurement procedure.   (3) A notice on the eligibility of bidders to pa rticipate in the prequalification procedure. 
  (4) Language(s), in which the prequa lification bids shall be submitted. 
 
 (5) A clear summary of the content of the contract and procurement subject descriptions.   (6) The procedure for preparation and submission of prequalification bid, including the format and venue, the deadline for submission. 
 
 (7) The requirements set out for bidder's eligibility to bid and qualification, and the procedure for their evaluation.   (8) Other necessary requirements rela ted to the prequalification procedure. 
 
2. The Client shall, within three calendar days , respond to the bidder's request for explanations 
about the prequalification, if such request had been  received no later than five calendar days prior to 
the deadline for submission of prequalification bids .  The Client meanwhile publishes in the Bulletin 
information on request and provide d explanations without disclosing the data of the inquirer. 
 
3. The eligibility of the bidder to bid and the bidder's qualification are evaluated in accordance 
with the procedure set out in the prequalification i nvitation, and a short-list of  pre-qualified bidders is 
compiled.  4. The pre-qualified bidders are eligible to fu rther participate in the procurement process. 
 
5. The minutes on results of the prequalification pr ocedure, which constitute an integral part of 
the minutes of procurement procedure, are drafte d and sent to pre-qualified bidders within five 
calendar days after finalizing the results  of the prequalification procedure. 
 6. If up to three bidders have submitted the bi ds for pre-qualification procedure, then the 
evaluation committee may decide: 
  (1) To re-advertise the pre-qualification announcement;  or   (2) To arrange new pre-qualification procedure;  or 
  GPA/ACC/ARM/8 
 Page 31 
 
 
   (3) To announce the pre-qualification procedure null and void. 
 7. The Republic of Armenia Government specifies the particularities of application of the prequalification procedure. 
 
22. Article 22:  Impermissibility of procurement packaging or slicing and of amending the 
procurement subject descriptions 
 
1. To avoid slicing of procurem ent procedure, it is prohibited: 
 
 (1) To divide the procurement into separate lots with the purpose to avoid the use of 
open or restricted procedure.   (2) To amend the descriptions of goods,  works and services envisaged in the 
procurement contracts. 
 
2. It is prohibited to combine procurement subject s with different descripti ons into one lot, if 
they can be presented in separate lots  for the same procurement procedure. 
 
SECTION 4:  BIDDING PROCEDURE 
 
CHAPTER 1:  SOLICITATION OF BIDS 
 
23. Article 23:  Evaluation committee 
 
1. Upon a decree of the Client's head, an evalua tion committee composed of up to nine members 
is formed, which:   (1) Approves the texts of announcement and invitation. 
 
 (2) Makes amendments in the invitation.   (3) Provides explanations about the procurement procedure.  
 (4) Opens and evaluates the bids. 
  (5) Select the winning bidder(s).  2. The committee has a chairman and a secre tary, who are appointed by the decree on 
establishment of the committee.  The secretary is not a member of the committee and: 
  (1) Facilitates the committee's activities.   (2) Receives and registers the bids.  
 (3) Develops and submits to the committee draft documents subject to the committee's 
approval.   (4) Provides the invitation.  
 (5) Records and stenographs information on the committee's activities by developing 
appropriate documents and ensures the safety of  those documents during the committee's operation. GPA/ACC/ARM/8 
Page 32  
 
  (6) Arranges provision of procuremen t procedure related explanations. 
  (7) Bears responsibility for compliance of the committee's activities to the requirements 
of the Republic of Armenia legislation on procurement. 
 
 (8) Implements other powers reserved to him/her.  3. The members and the secretary of the comm ittee must -throughout the entire operation of the 
committee- keep the confidentiality of information di sclosed in the bids that they personally learnt, 
except cases stipulated in this law. 
 4. The Republic of Armenia Government sp ecifies the procedure for establishment and 
operation of the evaluation committee.  24. Article 24:  Procurement announcement and invitation 
 
1. Procurement announcement and invitation are publis hed in the Bulletin to attract bidders to an 
open procedure.  Unless otherwise stipulated under the paragraph 2 of this Article, the announcement 
and the invitation are published at  least thirty calendar days prio r to the bid submission deadline. 
 
2. If the estimated price exceeds the 50 Proc urement base units, the announcement and the 
invitation are published at least forty calendar days prior to the bid submission deadline. 
 3. The invitation contains the following information:  
 (1) Name and location of Client. 
  (2) Code of open procedure.   (3) Clear summary of the content of contract and procurement subject descriptions.  
 (4) Announcement about the eligibility of bidde rs to participate in the open procedure. 
  (5) Conditions for obtaining a hard copy of the invitation, including charges and payment 
procedure thereof.  
 (6) Language(s), in which th e bids must be submitted. 
  (7) Summary of bidder qualification criteria.   (8) Criteria to be used for establishing the winning bidder.  
 (9) Procedure, venue and deadline for bid submission. 
  (10) Name and location of the body res ponsible for appeal and precise information 
concerning deadlines for lodging appeals.  
 (11) Procedure, venue, date  and time of bid opening. 
  (12) Other information, if necessary.  4. An entity has the right to receive a hard copy  of the invitation on the same day when, on the 
basis of the invitation, it submits a written request to the Client.  GPA/ACC/ARM/8 
 Page 33 
 
 
   
5. If the estimated price exceeds the 50 Procur ement base units, the bidder has the right to 
request also English and Russian copies of the invitation.  6. In case of providing a hard copy of the inv itation for an open procedur e a charge is levied, 
which cannot exceed the costs for photocopying and delivering the invitatio n.  The Republic of 
Armenia Government specifies the procedure for i ssuance of invitation, including the procedure for 
calculation of charges, and provision of English and Russian copies of the invitation.  7. Failure to receive the invitation as prescribed under this Article does not limit the right of the 
bidder to participate in the open procedure. 
 
25. Article 25:  Content of invitation 
 
1. The invitation must include: 
 
 (1) A reference to the published tender a nnouncement, as a supplement to which the 
invitation is extended.   (2) The instructions for bid preparation.  
 (3) The bidders' qualification criteria, partic ipation eligibility requirements and procedure 
for their evaluation.   (4) The descriptions of procurement subject.  
 (5) The procedure for bid evaluation and selection of a winning bidder. 
  (6) A draft contract.   (7) If the procurement is carried out in lots  and bidders are allowed to submit bids for a 
part of goods, works or services tendered, the te rms and conditions and the procedure thereof. 
 
 (8) The procedure for calculation of price offered in the bid.   (9) A note that the offered price, besides the value of goods, works and services, includes 
also the costs for transportation, insurance, duti es, taxes and other charges and cannot be less than 
their cost price, which is calculated and presented in the bid. 
  (10) Requirements related to the bid securi ty and the contract performance security. 
  (11) The conditions for submission of bi ds, including the form, venue, date and the 
language of bid. 
 
 (12) The procedure for receiving explanati ons on procurement process, information on 
meetings to be arranged with the bidders as well as the name of the evaluation committee's secretary. 
  (13) The procedure, venue, date and time of bid opening. 
 
 (14) The references made to the provisions of  this law and other legal acts in relation to 
this procurement.   (15) The conditions for proposing a contract award GPA/ACC/ARM/8 
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  (16) The right of the bidder to appeal ag ainst the procurement process related activities 
(standstill) and/or the adopted decisions and the procedure thereof.   (17) The bases for bid rejection. 
 
 (18) Information necessary for preparation, submission, opening and evaluation of the bid 
as well as other procuremen t related information. 
 2. The tender invitation also envisages that the bidder: 
 
 (1) Submits in the bid a statement verified by the bidder justifying the eligibility to participate in the bidding and the compliance to qualif ication criteria specified in the tender invitation, 
provided that, in cases and in manner prescribed in  this law, the bidder assumes an obligation to 
submit the documents (information) specified in the tender invitation justifying the statement. 
 
 (2) Submits in the bid a statement veri fied by the bidder about the absence of 
predominant position abuse and collusion.  
26. Article 26:  Clarification of the tender invitation and amendments therein 
 
1. The bidder has the right to request a clarifi cation about the invitation at least five calendar 
days prior to the deadline for submission of bids.  The clarification to the inquirer is provided within 
three calendar days of receiving such request.  2. On the day following the date when the clarification is provided to the inquirer, an 
announcement on the content of request and of prov ided clarification is published in the Bulletin, 
without disclosing the data on the inquirer.  3. A clarification is not issued, if the request is  submitted with a violation of the deadline set out 
in this Article as well as if the request is out of the invitation's scope.  
4. Amendments in the invitation can be made at least five calendar days prior to the deadline for 
submission of bids.  In case of an open procedur e, an announcement about the amendments made and 
the conditions for their issuance ar e published in the Bulletin within three calendar days after the day 
such amendments are made; in case of a restricted procedure, the amendments are provided to those 
bidders, who received an invitation. 
 
5. In case of amendments in the invitation for an  open procedure, the deadline for submission of 
bids is calculated from the day of publishing in the Bulletin an announcement about the amendments; 
in case of a restricted procedure - from the day of issuing to the bidders the amendments made in the 
invitation.  In this case, the bidders must extend the validity period of their bid securities or provide 
new bid securities. 
 
6. Minutes of the activities carried out under this  Article and their outcomes are drafted and 
attached to the minutes of the procurement procedure.  
CHAPTER 2:  BIDS 
 
27. Article 27:  Submission of bids 
 
1. The bidder submits the bid following the pro cedure specified in the invitation.  The tender 
invitation includes the following items verified by the bidder: 
  GPA/ACC/ARM/8 
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   (1) The statement on compliance of the bidder' s data to the requirements specified in the 
invitation.   (2) Price proposal.  
 (3) Bid security. 
  (4) Non-price proposal (technical proposal), if stipulated by the invitation.   (5) Other documents (information) specified by the Authorized Body and stipulated in 
the invitation. 
 2. If the bid is submitted in a hard copy format , the bidder's proposals a nd related documents are 
put into an envelope, which is glued and sealed  (if applicable) by the submitting party.  The 
documents placed into the envelope consist of th e original documents and the number of copies 
indicated in the invitation.  The packages of docum ents are marked with the words "original" and 
"copy" respectively.  The envelope and the documents  envisaged in the invitation and prepared by the 
bidder are signed by the person submitting them or a person authorized by the latter (hereinafter 
referred to as "agent").  If the bid is submitted by the agent, a document verifying such authority of 
the latter is included in the envelope.  
3. On the envelope aforementioned in the paragraph 2 of this Article, in the language of bid, are 
indicated:   (1) The name of Client and the venue (address) of bid submission. 
 
 (2) The code of open procedure. 
  (3) The words "do not open until the bid opening meeting".   (4) The name, location and te lephone numbers of the bidder. 
 
4. The secretary enters the bids into the register in order of receipt by indicating on the envelope 
the registration number, date and time.  At the request  of the bidder, a receipt thereof is issued.  The 
Authorized Body specifies the format of and the procedure for maintaining the register. 
 5. The bids, which do not satisfy the requirements of this Article, are rejected by the evaluation 
committee at the bid opening meeting and returned to the submitters unaltered. 
 6. The bidders can participate in the procurem ent process as a consortium.  In such cases: 
  (1) The bid also includes an agreement on joint venture.  
 (2) When evaluating the bid, the unified qua lifications of all parties to the agreement on 
joint venture are taken into account.   (3) The bidders bear joint and several liability.  
7. The Republic of Armenia Government specifies  the particularities for participation in the 
procurement process as a consortium. 
 GPA/ACC/ARM/8 
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28. Article 28:  Validity period of the bid, its withdrawal and amendments therein 
 
1. The bid is valid until the contract (framework agreement) signature, the withdrawal of the bid 
by the bidder, the bid rejection or the cancellati on of the procurement procedure under this law. 
 
2. The bidder can amend or withdraw the bid until the deadline for the submission of bids. 
 3. If the bid is submitted in a hard copy format, the notification about changes in the bid is sent in an envelope prepared as stipulated under the Article 27(2) of this law by adding on it the word "amendment".  In case of bid withdrawal, the bidder,  prior to the bid opening, submits a written notice 
thereof. 
 
29. Article 29:  Bid security 
 
1. The bidder provides with the bid a bid security  as prescribed in the invitation.  The bidder 
determines the amount of bid security, which cannot be  less than two percent of the price offered in 
the bid.  The bidder submits the bid security as a valid ated unilateral statement, in the form of a fine. 
The standard form of the fine is  set out by the Authorized Body. 
 2. The bid security - the fine - is paid by the bidder, if that bidder:  
 (1) Is announced a selected bidder but will refuse or be deprived of the right to conclude 
contract.   (2) Breaches an obligation assumed under the procurement process leading to the termination of that bidder's furt her participation in the process. 
 
 (3) Refrains from further participation in th e procurement process after the bid opening. 
 3. The Republic of Armenia Government specifies  the procedure for determining the amount of 
bid security for framework agreements. 
 
CHAPTER 3:  OPENING AND EVALUATION OF BIDS 
 
30. Article 30:  Opening of bids 
 
1. The bids are opened at the time indicated in the invitation, at the bid opening meeting.  The 
date and the time of the bid opening shall coincide with the deadline for their submission.  The bids 
for a restricted procedure, upon a written consent of  all bidders that received an invitation, can be 
opened prior to the deadline indicated in the invitation.  2. At the bid opening meeting the following are disclosed:  
 (1) The name of each bidder. 
  (2) Information on preparation and submission of envelopes containing the bids in terms of compliance to the invitation requirements.  
 (3) Information on availability of documents required in the invitation in each of the 
opened bids.   (4) Information on compliance of documents  submitted by each bidder to the validity 
terms specified in the invitation. 
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   (5) The price, in letters and numbers, offered by each bidder. 
  (6) Information on withdrawal of or amendments in the bids.  3. After the bid opening, minutes are drafted and attached to the minutes of procurement 
procedure.  The minutes are signed by the members of evaluation committee present at the meeting.  
The minutes contain:   (1) Information on venue, da te and time of bid opening. 
 
 (2) The names and addresses of bi dders, who have submitted bids. 
  (3) Data on preparation and submission of envelops in terms of compliance to the invitation requirements.  
 (4) Data on availability of documents required in the invitation in each of the opened 
envelops.   (5) Data on compliance of documents submitte d by each bidder to the conditions set 
out in the invitation.  
 (6) The price offered by each bidder. 
  (7) Information on the bidder ranked the first and other bidders ranked in order of priority.  
 (8) If the procurement procedure is cance lled, the grounds for such cancellation. 
  (9) Information on bid related inquiries and answers.   (10) The venue, date and time of  the committee's next meeting. 
 
 (11) The names of committee me mbers present at the meeting. 
 If a member of the evaluation committee and(or) a bi dder want to express an opinion (special opinion) 
on bid opening that has not been recorded in the bid opening minutes, it is submitted in writing and attached to the minutes specified under the paragraph 3 of this Article. 
 
4. Bidders or their representatives can be pr esent at the evaluation committee's meetings. 
Bidders or their representatives can require copies of the minutes of the evaluation committee's meetings, which are provided within one calendar da y.  Without prejudice to the other provisions of 
this law, the Client shall ensure the protection of the information, which the bidders have marked as 
confidential, insofar, objectively, the disclosure of this information would prejudice the legitimate 
interest of the bidder, particularly, where th e commercial secrecy and intellectual property is 
concerned.  5. Immediately after the bid opening meeting, a member of the committee, who has a conflict of 
interests related to the given procurement procedur e, renounces the participation in that procedure; 
otherwise, the chairperson of the committee dismis ses such a member.  If the chairperson of the 
committee has a conflict of interests related to the given procurement procedure then he/she 
renounces the participation in that procedure and is substituted in that procedure by another member 
of the committee.  Members of the committee sign  a statement about the absence of conflict of 
interests. GPA/ACC/ARM/8 
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 6. On the calendar day following the bid opening meeting, a copy of the minutes of the bid opening meeting are provided to the bidders, who or whose representatives did not participate in that 
meeting.  31. Article 31:  Bid evaluation 
 
1. The bids are evaluated following the proce dure specified in the invitation.  The bids 
compliant to the conditions specified in the invitation are rated as satisfactory;  otherwise the bids are 
rated unsatisfactory and rejected. 
 
2. The selected bidder is determined  from the bids rated satisfactory: 
  (1) By a method that gives preference to the bid with the least price proposed;  or  
 (2) By choosing the bidder, whose price proposal and non-price criteria have scored the 
highest sum total.  When using this method during th e bid evaluation, in addition to the offered price, 
other non-price criteria and measurable in mone tary terms are taken into account in cases and 
following the procedure specified by the Republic of Armenia Government.  The non-price criteria 
must be link with the subject-matter of the contract  and their relative weighting shall be disclosed in 
the invitation. 
 
3. If there is an inconsistency in the bid between  the amounts in letters and in numbers, then the 
amount in letters is considered.  If the prices are offe red in two or more currencies, they are compared 
in Armenian Drams at the exchange rate specified in the invitation. 
 
4. In cases specified in the invitation and followi ng the procedure set out therein, an electronic 
auction is arranged.  5. After determining the bidder ranked the first and other bidders ranked in order of priority, 
within the deadline specified by th e Republic of Armenia Government: 
 
 (1) The bidder ranked the first submits to the committee documents (information) 
specified in the invitation justifying the right to  participate in procurement and the compliance to 
qualification criteria set out in the invitation.   (2) The committee evaluates the compliance of the documents (information) submitted 
under the item 1 of this paragraph to the requirement s specified in the invitation and, in cases and in 
accordance with the procedure speci fied by the Republic of Armenia Government, evaluates the 
reasonableness of price and non-price (technical) proposals of that bidder.  6. The bid is rated satisfactory, if the document s specified under the paragr aph 5 of this Article 
satisfy the requirement set out in the invitation.  In  this case, the bidder is declared a selected bidder. 
 
7. If, as a result of evaluation under the para graph 6 of this Article, the bid is rated 
unsatisfactory, the committee requires the ne xt ranked bidder to submit the documents. 
 8. Based on the bid evaluation results, the minutes of the bid evaluation meeting are drafted and 
attached to the minutes of the procurement proce dure.  Members of the committee present at the 
meeting sign the minutes.  9. The Republic of Armenia Government specifies the particularities of the bid evaluation procedure. 
  GPA/ACC/ARM/8 
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  32 Article 32:  Contract performance security 
 
1. Pursuant to the request for submission of a contract security and within five calendar days 
after receiving such request, the selected bidder must submit the contract performance security.  The selected bidder is awarded the contract, if he/she provides a contract security. 
 
2. The amount of contract perfor mance security is at least five  percent and maximum ten percent 
of the contract price.  The selected bidder subm its the contract performance security as a validated 
unilateral statement, in the form of a fine.  The sta ndard form of the fine is set out by the Authorized 
Body.  The selected bidder also provides an advance payment guarantee in the amount of the advance 
payment, if an advanced payment is envisaged under the contract. 
 3. The contract specifies the repayment proce dure for the advance payment in accordance with 
the terms specified by the Republic of Armenia Government.  
4. Unless otherwise stipulated in the contract, the contract performance security and/or advance 
payment guarantee are returned to the submitter no la ter than five calendar days after the contract 
execution completion.  
33. Article 33:  Signing of procurement contract 
 1. The Client signs a contract with the sel ected bidder based on a decision of the evaluation 
committee.  2. The Client, within two calendar days after the selected bidder was announced, notifies the 
selected bidder offering to sign a contract and providing the draft procurement contract. 
 
3. If, within five calendar days after recei ving the notice on contract award and the draft 
contract, the selected bidder fails to sign the contract and to submit to the Client a contract performance security as well as an advance payment guara ntee, if an advanced payment is stipulated 
under the contract, then the selected bidder is deprived of the right to sign the contract. 
 
4. Prior to the deadline specified under the paragr aph 3 of this Article, upon the consent of the 
parties, amendments could be made in the draft c ontract;  however, such amendments cannot lead to 
the changes in the descriptions of the procurement subject.  5. The Republic of Armenia Government speci fies the particularities of contract signing. 
 
34 Article 34:  Finalization of results 
 
1. The meeting on finalization of open procedure results, where the latter are announced, is convened on the next calendar day after the contract  signing with the selected bidder or on the next 
calendar day after it becomes apparent that, as a resu lt of open procedure, no contract is awarded.  
 
2. Minutes of the finalizing meeting are drafted and attached to the minutes of the procurement procedure.  Members of the evaluation comm ittee present at the meeting sign the minutes. 
 3. If a member of the evaluation committee and (or) a bidder wants to express an opinion 
(special opinion) on the finalizing meeting that h as not been recorded in the minutes of finalizing 
meeting, then such opinion is submitted in writin g and attached to the minutes specified under the 
paragraph 2 of this Article.  GPA/ACC/ARM/8 
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35. Article 35:  Declaring a bidding ineffective 
 
1. The procurement procedure is declared ineffective, if:   (1) None of the bids complies with the invitation conditions. 
 
 (2) The need for procurement ceased to exist.   (3) No bids have been submitted.  
 (4) Contract is not concluded. 
 2. After the procurement procedure is declared ineffective, the opening of unopened bids is 
prohibited and they are returned to the bidders.  
3. In order to publish in the Bulletin, within five calendar days after the procurement procedure 
is declared ineffective, the Client furnishes to the Authorized Body an announcement indicating the 
grounds for declaring the procurement procedure ineffective.  No announcement is published for 
procurements containing state, official or banking secret. 
 
36 Article 36:  Inadmissibility of negotiatio ns with bidders, detection and prevention of 
cases related to restriction of economic competition 
 
1. Negotiations between the eval uation committee, the Client and the bidders are prohibited, 
except:  
 (1) If only one bidder participated in the open procedure, who submitted the bid 
compliant to the requirements set out in the invita tion, or, as a result of bid evaluation, only one bid 
was evaluated as compliant to the requirements set out in the invitation.  The negotiations under this 
paragraph can lead only to the offered price reduction and/or changes of payment conditions. 
  (2) Other cases specified in this law. 
 
2. The Authorized Body cooper ates with the law enforcement bodies in order to identify cases 
of infringement of legislation on protection of economic competition, including potential and actual 
cases of collusion and of abuse of dominant position under the procurement process.  
3. If the fact of a bidder's involvement in a co llusion or abuse of dominant position under the 
procurement process is proven as prescribed in the procedure stipulated by the Republic of Armenia law, such bidder is included in the list speci fied under the Article 5(2)(4) of this law. 
 
37 Article 37:  Calculation of contract price 
 1. Calculation of the contract price shall include all payments (costs) to be incurred to secure the 
contract execution, including taxes, duties, tran sportation and insurance costs, bonus payments and 
profit.  
2. The contract price can be variable, if the contract price varies as a result of changing 
conditions (factors) stipulated under the contract and specified  by the Republic of Armenia 
Government.  Otherwise, the contract price is fixed and the parties must fully execute their contractual obligations in the fra mework of the contract price. 
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  CHAPTER 4:  ELECTRONIC AUCTIONS 
 
38. Article 38:  Conditions for conducting an electronic auction 
 
1. If specified in the invitation, the award of the contract shall be preceded by an electronic 
auction. 
 2. The electronic auction shall be based:   (1) Either, solely on prices when the contract  is awarded to the bidder offering the lowest 
price; 
  (2) Or, on prices and/or on non-price criteria (proposals) indicated in the invitation, when the contract is awarded according to criteria, which, in addition to the offered price, include other non-price criteria. 
 
39. Article 39: Limitations for conducting an electronic auction 
 
1. The Client may not have improper recourse to electronic auction nor may use it in such a way 
as:  
 (1) To prevent, restrict or distort the competition;  or 
  (2) To change the requirements set out in the announcement and invitation.  2. The procurement of consulting services cannot  be subject of the electronic auctions. 
 
3. When the Client intends to apply an electroni c auction, the invitation shall also include the 
following details:   (1) The conditions (features) for conducting an electronic auction, taking into account 
that the proposal, which is subject to auctioning , is quantifiable and can be expressed in figures or 
percentages. 
  (2) Any limits on the proposals, which may be submitted, as they result from the specification of procurement subject.  
 (3) The information which will be made av ailable to bidders in the course of the 
electronic auction and, where appropriate, the moment  when these information will be made available 
to them.   (4) The essential information concerning the electronic auction process.  
 (5) The conditions under which the bidders will be able to bid and, in particular, the 
minimum differences which will, where appropriate, be required when bidding. 
  (6) The information concerning the electr onic equipment used and the arrangements and 
technical specifications for connection. 
 
40. Article 40:  The procedure for conducting an electronic auction 
 
1. Before proceeding with an electronic auction, the Client shall make a full initial evaluation of 
the bids in accordance with the cr iteria set out in the invitation. GPA/ACC/ARM/8 
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 2. To all the bidders, which have submitted sa tisfactory bids, shall be simultaneously sent a 
request to submit by electronic means new (revised) prices and/or, by case, new (revised) non-price proposals.  
3. The request shall also include information on the starting date and time of the electronic 
auction and all relevant data c oncerning individual connection to the electronic equipment being used. 
 4. The electronic auction may take place in a number of successive rounds.  
5. The electronic auction may not start sooner than  two calendar days afte r the date on which the 
request is sent out.  6. In cases when features other than the prices will be subject of an electronic auction, the 
request provided for by paragraph 3 of this Artic le shall also contain information regarding: 
 
 (1) The outcome of a full evaluation of the relevant bidder.   (2) The mathematical formula to be used in  the electronic auction to determine automatic 
re-rankings on the basis of the new prices and/or  on the new non-price proposals submitted.  That 
mathematical formula shall incorporate the weigh ting of the criteria fixed to determine the winning 
tender, as indicated in the invitation. 
 7. Throughout each round of the electronic auction,  the Client shall instantaneously (online) 
communicate to all bidders, at least sufficient info rmation to enable them to ascertain their relative 
ranking at any moment. 
 
8. During the performance of the rounds of elect ronic auction, the Client shall not disclose the 
new prices or the new non-price proposals or th e identity of the bidders submitting them. 
 
41. Article 41:  Completion of an electronic auction 
 1. The electronic auction shall be completed (closed) by one, or by a combination of the 
following manners:   (1) At a certain moment laid down in the invitation.  
 (2) When the number of auction rounds, fixed in the invitation to take part in the auction, 
has been completed.   (3) When no more new prices and/or new non- price proposals have been received.  In 
that event, the Client shall state in the invitation to  take part in the auction the time, which it will be 
allowed to elapse after receiving the last submission before closing the electronic auction. 
 
2. The Client shall, following the procedure specifi ed in this law, award the contract on the basis 
of the results of the electronic auction to the bidder, which submitted the best proposal. 
 
SECTION 5:  PARTICULARITIES OF PROCUREMENT OF CONSULTING SERVICES 
 
42. Article 42:  Shortlist of consultants 
 
1. Unless otherwise stipulated in this law,  the procurement of consulting services is done 
through an open or restricted procedure, in accord ance with the procedure specified in this law. 
  GPA/ACC/ARM/8 
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  2. In the event of procurement of consulting ser vices by an open or restricted procedure, a 
prequalification procedure for short listing of consultants is arranged in accordance with the procedure 
stipulated under the Article 21 of this law.  The pr e-qualified participants are eligible to participate 
further in the procurement process.  43. Article 43:  Procedure for de termining the selected consultant 
 
1. The selected consultant is determined out of the submitted bids by the following selection 
methods specified in the invitation:  
 (1) Evaluated the highest by non-price conditions;  or 
  (2) Compliant to the minimum non-price cond itions and offered the lowest price;  or 
  (3) A non-price proposal evaluated the highest under the price ceiling. 
 
2. The selected consultant can also be dete rmined by a method of selecting the consultant, 
whose scores for offered price and experience, sta ff, proposed mode of service provision and/or other 
non-price condition(s) have the highest sum total as rated under the procedure in specified in the 
invitation.  
3. The Republic of Armenia Government specifi es the procedure for selection of consultant, 
including conditions for applying consultant selection method stipulated under this Article. 
 
44. Article 44:  Negotiations 
  The provisions of draft procurement contract can be negotiated with the selected consultant; 
however, they cannot result in amending the d escriptions of the procurement subject.  The 
negotiations with the consultant selected under the pa ragraph 1(1) of the Article 43 of this law can 
result in reducing the offered price a nd/or amending the payments conditions. 
 
SECTION 6:  APPEALING THE PROCUREMENT PROCESS 
 
45. Article 45:  Right to appeal 
 
1. Any person has the right to file a complaint ag ainst the actions (inaction) and decisions of the 
Client, the evaluation committee and the Procurement Complaint Review Board. 
 
2. Relations pertaining to procurement, includi ng complaints, are not administrative relations 
and are regulated by the Republic of Armenia civil legislation.  3. As stipulated in this law, any person has the right:  
 (1) To lodge an extrajudicial complaint ag ainst the decisions of the Client and the 
evaluation committee to the Procurement Complain t Review Board before the conclusion of the 
contract.   (2) To appeal the decisions of the Author ized Body, the Procurement Complaint Review 
Board, the Client and the evaluation committee in court. 
 4. Any person having an interest in concludi ng a particular transaction and who has been 
harmed by an infringement of the Client, the evaluation committee or the Procurement Complaint Review Board has the right to sue for damages at the court. GPA/ACC/ARM/8 
Page 44  
 
 
46. Article 46:  Procurement complaint review board 
 
1. The Authorized Body shall publish the list of  members of the Procurement Complaint Review 
Board (hereinafter referred to as the Board).  All members of the Board must be Armenian citizens. 
The members of the Board: 
  (1) Shall not be convicted for a crime linke d to economic activities or against the state 
service, except cases when such conviction has been  lifted or nullified as stipulated by law; 
 (2) Shall possess sufficient level of knowledge of the Republic of Armenia legislation on 
procurement, which should be de termined following the procedur e specified by the Republic of 
Armenia Government.  2. The members of the Board shall review th e appeals with due care, diligence and in an 
impartial way.  The Board and the members of the Board, when implementing the competences 
stipulated in this law, are independent from the pa rticipants of the procurement process, including the 
Clients, as well as from the state bodies and local sel f-governments and officials.  When reviewing a 
complaint, they are neither representatives of any pa rticipant in the proceedings nor of the nominating 
organization and they are only obliged to apply and follow the law.  3. The Board shall include one representative of: 
 
 (1) The state administration bodies envisaged  in the Republic of Armenia Constitution 
and laws.   (2) The Republic of Armenia urban communities. 
 
 (3) The Republic of Armenia Central Bank.   (4) Non-Governmental Organizations (Unions ) registered in the Republic of Armenia, 
which have submitted a written application to the Authorized Body.  
4. The individuals are appointed as members of the Board for a period of five years.  The 
mandate of the Board member can be renewed for a period of up to five years in the same way as for 
the appointment to the Board.  5. The competences of a Board member can be revoked: 
 
 (1) Upon request of the Board member.   (2) Upon court ruling on Board member’s incapability or limited capability.   (3) Renouncement of Armenian citizenship. 
 
 (4) A legally binding court sentence upon the Board member for an intentional offence.   (5) Death of the Board member.  
 (6) Undertaking practice as judge, prosecutor, associate judge or prosecutor. 
  (7) A major infringement by the Board member  of his duties.  The infringement shall be 
considered major, if there is a court sentence upon the Board member.  The major infringement shall 
mean in particular: 
  GPA/ACC/ARM/8 
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    (a) The performance of the Board memb er's functions in an discriminatory 
 manner, including one-sided protection of interests of participants in appeal 
 proceedings;  or 
   (b) Failure to submit a request to be excluded from proceedings the 
 circumstances of which render it impossible for the Board member to fulfil 
 his/her duties. 
 6. Removal from the list of arbiters shall be effected by the Prime Minister by means of an administrative decision. 
 
47. Article 47:  Operation of the Board 
 
1. A commission composed of three Board members is formed to review an individual procurement complaint received.  For each indi vidual case, the members of the Commission are 
randomly selected on a rotational basis. 
 2. The chairperson of the Commission must be a qualified lawyer with at least five years of practical professional experience.  The members of the Commission must have tertiary education and at least 3 years work experience.  
3. The Commission reviews the complaint and adopts a decision on behalf of the Board 
according to this law and other legal acts.  The deci sions of the Commission are adopted by a majority 
vote of its members; all its members, including the chairperson have one vote.  Members of the Board who have a conflict of interest in a specific procedure have to exclude themselves from that 
procedure; otherwise the chairperson of the Commi ssion has to exclude them.  Should the chairperson 
of the Commission have a conflict of interest in a ce rtain procedure, he or she has to withdraw from 
the specific procedure and another member of the Bo ard has to take over for this specific procedure. 
Members of the Commission sign a statement on the absence of the conflict of interests.  4. The members of the Commission receive ad equate allowances; th e Republic of Armenia 
government specifies the procedure for their remuneration. 
 
5. Based on this law and for the purposes of im plementing its requirements, the Board approves 
a procedure for its operation by a majority vote of its members.  
48. Article 48:  Procedure for lodging a complaint to the Board 
 
1. A complaint to the Board shall be lodged in  writing, it shall be signed and contain: 
  (1) The name and the address of the applicant.   (2) The name and the address of the Client. 
 
 (3) The code and the subject matter of  the appealed procurement procedure. 
  (4) The object of the dispute and the request of the applicant.  
 (5) The factual and legal grounds of the complaint, the evidences. 
  (6) A copy of the document verifying the payment of appeal fee.   (7) Other requisite information. GPA/ACC/ARM/8 
Page 46  
 
 2. If the applicant protests against the award d ecision, he or she can only lodge his or her 
complaint within the standstill period of Article 9 of this law.  3. If the complaint does not meet the requirements under this paragraph, the Center for 
Procurement Support on behalf of the Board has to inform the applicant providing with a five-day 
period to correct the application.  4. The decision on a complaint is taken following a procedure in which the applicant, the Client 
and all parties involved have the right to particip ate in the Board meetings and present their opinions. 
 
5. A written decision on the complaint, including justification for the decision, shall be taken 
and published no later than twenty calendar days af ter the receipt of the complaint.  The Board 
decision is legally binding.  
6. The Board has the right to adopt the following decisions: 
  (1) Take by way of interlocutory procedure,  interim measures with the aim of correcting 
the alleged infringement or preventing further damage  to the interests concerned, including measures 
to suspend the procurement procedure or the implem entation of any decision taken by the Client or 
the evaluation committee. 
 
 (2) Set aside individual decisions, including the contract award decisions within the standstill period of Article 9 of this law, taken by the Client or the evaluation committee in the course 
of a procurement procedure.  
 (3) Declare an awarded contract ineffective: 
   (a) If the Client has awarded a contract  without prior publication of a contract 
 notice according to this law. 
   (b) In case of infringement of Article 9 or Article 49(3) of this law, if this 
 infringement has deprived the bidder co ncerned of the opportunity to institute 
 a legal remedy before the conclusion of the contract and if this infringement 
 is combined with the infringement of other provisions of the Republic of  Armenia legislation on public procuremen t and if this latter infringement has 
 affected the chances of the bidder concerned to get the contract. 
 
 (4) Notwithstanding the provisions of paragr aph 3 of this Article, if the Commission 
considers, after examining all relevant aspects, that  overriding reasons of general interest impose the 
maintaining of the effects of the contract, it w ill order, instead, alternative sanctions, as follows: 
   (a) The limitation of the contract performance, through the reduction of its 
 execution deadline;  and/or 
   (b) The application of a fine to the Client, of a maximum of 10 % of the value of 
 the contract. 
 
 (5) In all the cases in which the sanction of ineffectiveness provided for in paragraph 6(3) 
of this Article cannot have retroactive effect, because the elimination of executed contractual 
obligations is impossible, the Commission will appl y, in addition, the sanction provided for in 
paragraph 6(4)(a) of this Article.   GPA/ACC/ARM/8 
 Page 47 
 
 
   (6) State about the lawfulness or unlawfuln ess of a procurement procedure of a Client 
after the conclusion of the contract.  That decision shall be the basis for damage claims in court. 
  (7) Decide, if a bidder has to be included in the list of bidders that have violated procurement business ethics. 
 
7. If the Board decides in favour of the applican t, the Client is liable for recompensing to the 
applicant the damage caused and justified in  accordance with the established procedure. 
 8. The oral hearing of complaint is open to the public and an announcement on the complaint is 
published in the Bulletin within three calendar days after its receipt.  In case of complaints lodged 
against the procurement processes containing state, official or banking secrets, the announcement is 
sent to all potential bidders.  9. Any person, whose interests ha ve suffered or can suffer due to actions served as the ground 
for lodging a complaint, is entitled to participate in  the review procedure by submitting, prior to the 
deadline for decision on the complaint, a similar complaint to the Procurement Complaint Review 
Board.  The person, who did not participate in the re view procedure in accordance with this Article, is 
deprived of the right to submit to the Board a similar complaint.  10. The decision of the Procurement Complaint Re view Board has to be published within five 
calendar days after its adoption in the Bulletin and h as to be sent to the Client, the Authorized Body 
and the parties involved in the review procedure.  11. A fee in the amount of 0.5% of the applicant' s price proposal for the disputed transaction shall 
be charged for the Board review procedure, but it shall not exceed the one tenth of the Procurement 
base unit.  If the value of disputed transaction is un known - has not been disclosed - the amount of fee 
shall be one tenth of the Procurement base unit.  The fee shall be transferred to  the relevant account of 
the Procurement Support Center.  
49 Article 49:  Suspension of procurement procedure 
 1. The appeal shall not automatically suspend th e contract award procedure.  The Board shall 
grant an interim measure required by an applicant as long as it is appropriate and necessary to prevent 
the pending damage until a final decision on the complaint is made.  2. The Board has to take the probable conseque nces of the interim measure for all interests 
likely to be harmed, including the public interest, into account and may decide not to grant such 
measures where their negative consequences could ex ceed their benefits.  A decision not to grant 
interim measures shall not prejudice any other claim of the person seeking such measures.  3. Until the Board adopts a decision on the suspen sion of the award procedure, the Client does 
not have, in any situation, the right to conclude the contract prior to a relevant decision of the Board.  
 
SECTION 7:  PARTICULARITIES OF PROCUREMENT 
 
50. Article 50:  General particularities of procurement for public entities 
 1. For procurement carried out by public entities in the Republic of Armenia: 
  (1) Procurement related relations are regul ated by procurement procedures adopted by 
those entities.  GPA/ACC/ARM/8 
Page 48  
 
 (2) Procurement procedures, announcements  on arrangement of procurement processes, 
invitations, notices on signed contracts exceeding the Procurement base unit are also published in the 
Bulletin.   (3) Extrajudicial review of procurement is  carried out in accordance with the procedure 
stipulated in the Section 6 of this law. 
 2. The procurement procedures specified in the pa ragraph 1 of this Article cannot contradict to 
the objectives and principles set out in the Article 3 of  this law; while in case of public undertakings 
included in the list approved by the Republic of  Armenia Public Services Regulatory Commission 
they should not contradict also to additional require ments set out by the Republic of Armenia Public 
Services Regulatory Commission, which shall mon itor the implementation of such requirements 
following the procedure it has adopted.  
51. Article 51:  Specific exclusions in case of procurement for public undertakings 
 
1. The provisions of this law are not applicable in case when a public  undertaking intends to 
procure:   (1) Products that will be resold or leased to third parties, provided that the undertaking 
concerned enjoys no special or exclusive right to se ll or to lease the subject of such contracts, and 
other entities are free to sell or to lease simila r products in the same conditions as the entity 
concerned.   (2) Goods, services or works for the purpose to perform relevant activities in a third country, in conditions not involving their use within the Republic of Armenia. 
 
 (3) Goods, services or works for the purpose to  perform other activities than relevant 
activities. In cases when the contract is intended to  cover several activities, including at least one 
relevant activity, but it is objectively impossible to determine for which activity the contract is 
principally intended, the procurement shall be ma de according with the provisions of this law. 
 
2. The Republic of Armenia government shall speci fy other specific exclusions of procurement 
for public undertakings not stipulated in this law,  including those cases when this law is inapplicable. 
In case of public undertakings of the regulated public  services sector, the Republic of Armenia Public 
Services Regulatory Commission shall specify special exclusions of procurement.  52. Article 52:  Procurement for the Central Bank of the Republic of Armenia  
1. In case of procurement for the Cent ral Bank of the Republic of Armenia: 
  (1) The provisions of this law are inappl icable to procurement under the operational 
expenses of the Central Bank of the Republic of Armenia. 
 
 (2) The competences reserved to the Re public of Armenia Government and the 
Authorized Body under this law are implemented by  the Board of the Central Bank of the Republic of 
Armenia.  
 (3) The Board of the Central Bank of the Republic of Armenia shall specify the 
procedure for publication of information subject  to disclosure in accordance with law. 
  (4) The law is inapplicable to procuremen ts by entities founded by the Central Bank of 
the Republic of Armenia or entities with particip ation of the Central Bank of the Republic of 
Armenia.  GPA/ACC/ARM/8 
 Page 49 
 
 
   
 (5) In addition:    (a) The requirements set out for the Procurement Support Center as well as those 
 stipulated under the Article 15(5) of this law shall be inapplicable. 
 
  (b) Extrajudicial review of procurement is carried out in accordance with the 
 procedure stipulated in the Section 6 of this law. 
   (c) The Procurement Support Center rende rs services to the Central Bank of the 
 Republic of Armenia in cases stipulated  by the decision of the Board of the 
 Central Bank of the Republic of Armenia. 
 
53. Article 53:  Particularities of procurem ent for state or community non-commercial 
(non-profit) organizations and entities with over fifty percent of government or 
community shareholding 
 
 Unless otherwise stipulated by the Republic of Armenia laws, the provisions of this law are 
inapplicable in case of procurement for state or community non-commercial (non-profit) organizations and entities with over fifty percen t of government or community shareholding. 
 
SECTION 8:  FINAL AND TRANSITIONAL PROVISIONS 
 
54. Article 54:  Effectiveness of law 
 
 This law comes into force on the thirtie th day after its official promulgation. 
 
55. Article 55:  Transitional provisions 
 
1. The provisions of this law do not apply to procurement transactions originated and not 
terminated prior to the effectiveness of this  law as well as to signed and ongoing procurement 
transactions, if such transactions have not been brou ght into compliance with the requirements of this 
law; while the relations thereof are regulated by legal acts effective at th e time of concluding those 
transactions.  2. The Republic of Armenia "Law on Procurem ent" AL-160-N, dated December 6, 2004 is 
regarded as null and void after the entry of this law into force. 
 
3. The legal acts and legal norms adopted in accordance with or pursuant to the Republic of 
Armenia "Law on Procurement" AL-160-N, dated Dece mber 6, 2004 continue to be effective to the 
extent that they do not contradict to this law.  4. The provisions of Article 15, paragraph 5 of th is law shall come into force on 1 January 2012. 
 
56. Article 56:  Final provisions 
 
1. If a deadline specified in this  law coincides with a non-business day, then the deadline is the 
next business day following that day. 
 
2. The Republic of Armenia Government shall specify the cases of conflict of interests under 
this law, including for consulting services.  GPA/ACC/ARM/8 
Page 50  
 
3. In addition to publishing procurement announcem ents envisaged by this law in the Bulletin: 
  (1) The Client shall also publish them in the printed media until 1 January 2013.   (2) The Authorized Body shall dissemina te (advertise) information on published 
announcements in the mass media. 
    
PRESIDENT OF THE REPUBLIC OF ARMENIA S. SARGSYAN 
 
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