RESTRICTED  WORLD TRADE  
ORGANIZATION  GPA/ACC/ARM/3 
20 April 2010 
 (10-2073) 
Committee on Government Procurement Original:   English 
  
 
ACCESSION OF THE REPUBLIC OF ARMENIA TO THE AGREEMENT  
ON GOVERNMENT PROCUREMENT 
Replies to the Checklist of Issues for Provision of Information Relating to Accession to the 
Agreement on Government Procurem ent, Draft Procurement Law and  
SIGMA Opinion on Draft Procurement Law  
 
Communication from the Republic of Armenia  
   The following communication, dated 18 April 2010, is being circulated at the request of the 
Delegation of the Republic of Armenia. 
 
_______________ 
 
 
REPLIES FROM THE REPUBLIC OF ARMENIA TO THE CHECKLIST OF ISSUES  
FOR PROVISION OF INFORMATION RELATING TO ACCESSION TO THE 
AGREEMENT ON GOVERNMENT PROCUREMENT 
 
 
I. INTRODUCTION 
 The Government of the Republic of Armenia (hereinafter "RA Government") supposes that 
the existing legal framework on Public Procurement in general is consistent with the WTO GPA.  
There is some room for further harmonization to achieve the full level of compliance.   For improving the legislative framework the RA Government has developed the new draft 
Law on Procurement (hereinafter referred to as th e "LP"), which aims to address the weaknesses of 
the system, also previously reported by SIGM A and WB's CPAR recommendations.  The draft LP 
and SIGMA opinion on it are to be found in Attachments 1 and 2 to this document.   The LP should be adopted by the RA Parliame nt and the RA Government plans to propose 
that RA Parliament complete the adoption process by the end of 2010. 
 
 The RA Government asks WTO GPA Pa rties and the Committee on Government 
Procurement for Armenian's GPA accession, with th e possibility to bring its LP and institutions into 
full conformity after Arme nia has joined the GPA. 
 
 Improving the legislative framework in the field of public procurement for the RA 
Government is important not only because of the commitments that Armenia assumed on an international level (also in the c ontext of negotiations with the World Trade Organization), but also its 
internal needs.  The RA Government is aware that the development of an effective and credible public 
procurement system is one of the fundamentals of the process for improvement the use of public money. 
 GPA/ACC/ARM/3 
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II. LEGAL FRAMEWORK 
1. Is there a single central law on procurement?  If so, please specify? 
 Public procurement in Armenia is currently go verned by the LP which came into force on 
1 January 2005.  2. What are the other laws, regulations, decrees,  administrative rulings, decisions, policy 
guidelines and other instruments governing government procurement?  Please provide a summary of the subject areas dealt with by each of these instruments.  Please also explain the 
main differences (if any) that exist between their application at the central and sub-central levels of government and at other types of entities. 
 The LP is supplemented by secondary legislation which deals with a series of procedural and 
more practical issues.  The RA Government and the Authorized Body-Ministry of Finance 
(hereinafter referred to as the "AB") adopt other le gal acts (secondary legislation) on procurement to 
ensure the accomplishment of the purpose and require ments of the LP.  All legal acts on Procurement 
and related laws, including RA Law "On Administrative-Territorial Division" are listed on 
procurement official electronic bulletin:  www.procurement.am
. 
 
3. To what extent will the provisions of the Agreement be applied directly or need to be 
transposed into the relevant law?  In the ev ent of direct application of the Agreement over 
conflicting provisions of domestic law, please indicate the relevant legal basis. 
 As an international agreement, the GPA will be applied directly.  According to the LP, in the 
event of an international agreement setting out provis ions other than in this law, the provisions of the 
international agreement prevail.  
III. SCOPE AND COVERAGE 
4. Please summarize the organization of the government in your country at each level. 
The General Government of the Republic of Armenia includes state bodies and local 
self-governments, state and community agencies, th e Republic of Armenia Central Bank, state or 
community non-commercial (non-profit) organizations , entities with over 50 per cent of government 
or community shareholdings.  
5. Please list all central government entities (m inistries, departments, agencies, etc.) 
procuring goods, services and construction services. 
List of central government entities are: 
1. Staff of the President of the RA 
2. Staff of the National Assembly of the RA 
3. Staff of the Government of the RA 
4. Staff 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. Staff of the Human Rights Defender of the RA 
10. Central Bank of the RA (*) Subject to Note 2 below. 
11. Ministry of Agriculture of the RA 
12. Ministry of Defence of the RA  GPA/ACC/ARM/3 
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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 
27. Ministry of Culture of the RA 
28. Ministry of Emergency Situation of the RA 
29. National Security Service of the RA  
30. State Security Service of the RA 
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 
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 
 6. What entities at the sub-central level of government (states, provinces, municipalities, 
etc.) procure goods and services? 
 The LP regulates relations related to the pr ocurement of goods, works and services by all 
local self-governments as defined by the RA Law "On Administrative-Territorial Division".  GPA/ACC/ARM/3 
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7. Which are the enterprises owned or controlled by the government that are subject to the 
rules on government procurement?  Which are th e other entities or categories of entities (Annex 
3-type entities) owned and controlled by the gove rnment that engage in procurement?  Specify. 
 The LP regulates relations related to the procur ement of goods, works and services by state or 
community non-commercial (non-profit) organizations , entities with over 50 per cent of government 
or community shareholdings. 
 
8. Do entities listed in response to questions 5,  6 and 7 apply in their procurement the main 
law (if one exists), other legislation provided by the federal or central level of government or are 
they autonomous from federal or central governme nt in their procurement rules and practices?  
Where any of these entities are not subject to the main procurement law, please list the entities 
concerned and indicate which laws, regulations , etc., they are subject to.  How will your 
government ensure the implementation of th e Agreement by such entities below the 
central/federal government level? 
 All entities listed in response to questions 5, 6 and 7 apply to the LP.  Articles 58, 59 and 60 
of the LP specify exclusions in cases of procur ement of the self-governments, the Republic of 
Armenia Central Bank, state or community non-co mmercial (non-profit) organizations, entities with 
over 50 per cent of government or community shareholdings.  
9. Are there any general exceptions from the scope of application of the national 
procurement rules, for instance for essential na tional defence or security reasons?  Please 
provide details. 
 According to the LP, participation of a forei gn individual or an entity or a stateless person in 
the procurement can be restricted only by the RA Government decision, based on the national security 
or defence interests of the Republic of Armenia.  10. Please provide available statistics on the procurement by government entities in your 
country in the last two years, including, to the extent available, a breakdown by entity and by 
categories of products and services. 
 The table below shows the expenditure on goods, works and services during the years 
2006-2008.  
 2006 2007 2008 
 AMD* 
millions % AMD 
millions % AMD 
millions % 
Goods 14,586 23.5 23,485 12.3 20,426 18.4 
Works 45,026 72.9 100,122 77.6 86,039 77.7 
Services 2,173 3.6 5,324 4.1 4,293 3.9 
Total goods, 
works, services 61,785 100 128,931 100 110,758 100 
Total budget 481,183 634,734 822,054 
 *  Information on AMD exchange rates can be downloaded from www.cba.am . 
 
  GPA/ACC/ARM/3 
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IV. NATIONAL TREATMENT AND NON-DISCRIMINATION 
11. Identify the specific provisions in the legislation which reflect the national treatment and 
non-discrimination commitments of Article III of the Agreement. 
 According to the articles: 
 
"3" of the LP purpose and scope of the law is to ensure:  "d) equal rights for any 
person, regardless of his being a foreign physical person." 
"7.2." "If paragraph 1 of this article is not applied, then the invitation includes an 
statement that tenders can be submitted by all persons, regardless of being a foreign 
person, organization or stateless person,  and the statement is not subject to 
amendment.  If paragraph 1 of this article  is applied, the invitation contains a 
statement to that effect." 
12. Please provide details of any provisions in national legislation according domestic 
supplies and suppliers treatment more favourable than that accorded to foreign supplies or suppliers or according supplies or suppliers of  any country more favourable treatment than 
those of any other country. 
 There are no such provisions in national le gislation which provide any preferences for 
domestic suppliers.  
13. Please provide details of any provisions in national legislation allowing a locally 
established supplier to be treated less favourabl y than another locally established supplier on 
the basis of its degree of foreign affiliation  or ownership or discriminating against locally 
established suppliers on the basis of the country of production of the good or service being supplied. 
 There are no such provisions in national legislation. 
 14. Please specify to what extent, if at all, more favourable treatment is granted to any 
sectors of the economy, regions or specifi c categories of suppliers or supplies. 
 There are no provisions in national legislati on according to which more favourable treatment 
is granted to any sectors of the economy, regions or specific categories of suppliers or supplies.  
15. Please specify any provisions requiring or allo wing the use of offsets or measures with 
similar effect, such as domestic content, licen sing of technology, investment, counter-trade or 
similar requirements in the qualification or selection of suppliers, products or services or in the evaluation of tenders and award of contracts. 
 There are no such provisions in national legislation.  According to Article 7.3 of the LP: 
 
"If for the fulfilment of the procurement contract, the RA legislation prescribes a 
special permit (license) or a requirement to meet certain criteria, but the legislation of the foreign country whose resident is th e supplier does not prescribe that, then in 
cases established by the RA government, this supplier is entitled to participate in the 
procurement process without a special permit (license) meeting certain criteria." GPA/ACC/ARM/3 
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V. ELEMENTS SPECIFIC TO PROCUREMENT PROCEDURES 
16. Please provide a general description of your existing procurement methods and 
procedures, including the main procurement me thods used and a brief description of each 
method, and the extent to which qualificatio n of suppliers and open, selective and limited 
tendering for each level of government is used. 
 The PPL stresses that its purpose is to ensure competitive, effi cient, transparent, open and 
non-discriminatory procurement processes.  The LP provides for a general principle of equality of 
participation in the procurement process by all inte rested persons, including foreign bidders.  The LP 
provides for the following procurement procedures/methods of procurement:  
• tender (which may be open or closed-end); 
• restricted tendering; 
• request for quotations; 
• competitive negotiations; 
• single-source procurement. 
  Under the circumstances specified by the LP, a "tender" can also be carried out as a two-stage 
tender.  Additionally, in case of a "tender", a pr equalification procedure can also be used.  Open 
tendering may be either periodic or targeted.  Peri odic procurement is obligatory for all items which 
are included on a list approved by the AB, and which are needed by procuring entities on a recurrent 
basis.  Targeted procurement, instead, concerns ite ms not covered on the list issued by the AB.  The 
procurement is carried out by a closed bidding , if it contains a state or official secret. 
  Under the LP, open tendering appears to be th e preferred method of procurement.  In fact, 
closed-end tendering can be used only if the procuremen t involves state or official state secrets.  Also, 
the other procurement procedures laid down by the LP (i.e. restricted tendering, request for 
quotations, competitive negotiations and single-source procurement) may be used only if specified 
circumstances are met.  For example, the restrict ed tendering may be used only "if the procurement 
item is not covered in the signed procurement c ontracts under periodic tenders, and due to the 
technical specifications of the procurement item,  this procurement can be done from no more than 
three persons" (restricted tendering is procedurally similar to an open procedure with the difference 
that it does not require a public announcement). 
  Request for quotations may be used if the proc urement item is not cove red by periodic tenders 
and its value does not exceed five base procurem ent units, in case of goods and service, or 10-base 
procurement units, in the case of works (Article 21 of the LP).  Under this procedure, at least two 
suppliers must be requested to submit a quotation.  Current monetary value of the "base procurement 
units" is one million AMD.   Competitive negotiation may be used, if the pr ocurement item is not covered in the periodic 
procurement contract, and either its value does not  exceed the base procurement unit or it concerns 
urgent/emergency procurement (Article 22 of the LP). 
  Single-source procurement may be used, in very  general terms, in the following cases only:  
for items that can be procured onl y from one source (for example due to copyrights, licences etc);  for 
urgent/emergency procurement provided that th e item is not covered in the signed periodic 
procurement contract (this ground is  also covered under the competitive negotiation procedure);  for 
additional procurement from the same person (Article 23 of the LP). 
  GPA/ACC/ARM/3 
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17. Identify the provision in your country's le gislation requiring non-discrimination as 
regards the qualification of suppliers in terms of Article VIII and selection of suppliers in terms 
of Article X.  Indicate any exception to this requirement.  What are the provisions ensuring non-discriminatory access of new suppliers  to existing qualification lists? 
 There are no such provisions in national le gislation which provide any preferences for 
domestic suppliers.  According to Article 7 of the LP: 
 "1. To participate in the procurement process, at any stage of procurement process the bidder 
must meet the criteria stipulated in the invitation.  
2. The bidder: 
  (a) must have the right required to fu lfil obligations envisaged under procurement 
contract, professional qualifications, technical resources, financial resources and labour resources; 
 
 (b) shall not be deemed bankrupt by cour t, shall not be under liquidation proceedings, 
shall not have arrested property that is submitted by tender for the fulfilment of the 
contract; 
  (c) shall not have outstanding debts to the RA  tax and social security as of the last day of 
reporting period prior to the day of tender submission; 
  (d) or the representative of its management  body at the moment of tender submission 
over the last three years shall not: 
 
  (1) have been convicted for offen ces against economic activities or public 
 service, except the cases when the convi ction is lifted or invalidated as 
 prescribed by law; 
   (2) submitted false data in order to sign a procurement contract;  
  (3) violated the obligations under proc urement contract with his actions or 
 inaction which caused unilateral termina tion of the contract by the procuring 
 entity. 
 3. To assess the supplier's qualifications, the tende r prescribes the list of documents or copies 
thereof which must be submitted by the supplier for the grounding of its compliance with the 
qualification criteria.  4. Other qualification criteria than prescribed in paragraph 2 of this  Article can not be 
prescribed.  
5. The supplier is deemed not qua lified, if the data on his qualification criteria disagree with the 
criteria prescribed in the tender.  6. The list of suppliers who do not meet the require ments of paragraph 2, "d" of this Article is 
published by the authorized body in the newsletter  based on the data obtained from the procurement 
entities and other bodies." 
  For procurements above one million AMD, and whic h do not relate to state or official secrets, 
the LP prescribes the publication of the following noti ces:  notices for prequalification procedures (in 
case such a procedure is used);  notices for open te nders (which would also apply in case a two-stage GPA/ACC/ARM/3 
Page 8  
 
procedure is used);  notices of the signed procur ement contracts and;  announcements/notices of 
cancellation of tendering proceedings (menti oning the grounds for such cancellation). 
  Procurement documents compiled and, in cases envisaged in this law.  Open tender 
announcements must be published in the Ar menian, English and Russian languages. 
 
 If the procurement price exceeds 90 million AMD (around 190,000 EUR), then the open 
tender announcement is published mini mum 40 days prior to the deadline of tender submission.  If the 
procurement price less than 90 million AMD the announcement is published minimum 30 days prior to the deadline of tender submission. 
 
18. In situations where qualification procedures  and selective tendering may be used, to 
what extent do entities allow suppliers to beco me qualified during the procurement process?  To 
what extent do entities maintain permanent lists of suppliers? 
 According to Article 7 of the LP (see answer the question 17). 
 
19. What are the conditions and circumstances fore seen in your legislation allowing the use 
of the limited tendering method under Article XV  of the Agreement?  What measures exist in 
order to ensure that this method is not used  with a view to avoiding maximum possible 
competition or in a manner which would consti tute a means of discriminating among foreign 
supplies/suppliers or in favour of domestic supplies/suppliers? 
 According to Article 20 of the LP, "If the procurement item is not covered in the signed 
procurement contracts under periodic tenders, a nd due to the technical specifications of the 
procurement item, this procurem ent can be done from no more than  three persons, the restricted 
tendering can be applied."  20. Article XIV of the Agreement allows for negotiation under certain conditions.  Are 
entities allowed to proceed to negotiations?  If  so, which categories and what are the conditions 
imposed? 
 According to Article 35 of the LP, "Nego tiations between the procurement commission, 
procuring entity and a supplier concerning a tende r submitted by the supplier are prohibited, except 
cases prescribed in this law."  These cases are identified in LP Articles 45, 46 and 50. 
 
21. Article XI sets out the minimum time-period s for tendering and delivery.  What are the 
rules and practices regarding time-periods in your legislation?  Does the legislation reflect the 
various minimum time-periods as set out in the Agreement?  If not, give information on any 
different time-periods which have been established in your national legislation. 
 If the procurement price exceeds 90 million AMD (around 190,000 EUR), then the open 
tender announcement is published mini mum 40 days prior to the deadline of tender submission.  If the 
procurement price less than 90 million AMD, the announcement is published minimum 30 days prior to the deadline of tender submission.  
22. Briefly describe the procedures for the submission, receipt and opening of tenders and 
awarding of contracts, in particular the pro cedures and conditions guaranteeing regularity of 
the openings and consistency with the non-discri mination provisions of the Agreement.  How is 
the information on the proceedings related to the receipt, opening and evaluation of tenders 
maintained by entities? 
 According to the LP: 
  GPA/ACC/ARM/3 
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 Tenders are opened at the day indicated in the tender invitation, at the session of the tender 
commission and the day and hour of tender opening must coincide with the deadline of tender 
submission.   Suppliers and representatives thereof can be  present at the tender commission sessions.  
Suppliers or representatives thereof can demand the copies of minutes of the tender commission 
sessions which are provided within one work day.   The work day after the tender opening session, the copies of the minutes of the tender opening session are provided to the suppliers who or whose representatives did not participate in the session. 
 
 Tender commission members evaluate the tenders as prescribed by the invitation.  The tenders that meet the requirements of the invitatio n are deemed satisfactory;  otherwise, the tenders 
are deemed unsatisfactory and rejected.  If there is  a discrepancy in amounts indicated in words and 
digits in a tender, the amount written in words takes precedent. 
 
 Based on the decree of the tender commission, the procuring entity signs a procurement contract with the selected supplier.   After having announced the selected supplier, w ithin three working days, the procuring entity 
notifies the selected supplier, making an offer to sign a procurement contract and submitting the draft 
procurement contract. 
  If the procurement price exceeds the one milli on AMD, then the procuring entity maintains 
minutes of procurement procedure.  If the price of the procurement contract does not exceed the base unit, then the procuring entity ensures relevant doc uments pertaining to the actions performed during 
procurement and grounds thereof. 
  The procuring entity must submit the information contained in the procurement minutes, except information classified as a st ate secret, to any person, within five working days after the receipt 
of the request.  23. Please identify the provisions in your le gislation setting the parameters for the 
prescription of technical specifications by en tities as part of the evaluation criteria. 
 Article 13 of the LP contains rules on technical  specifications.  According to this article: 
 "1. The description of the technical properties of  the procured commodity , work or service must 
be clear and comprehensive, procurement a nd payment conditions, ruling out alternative 
interpretation.  2. Based on the peculiarities of the procured item, its technical properties incorporate the 
description of the quality, standards, safety, mark ings, terminology, packaging, unloading, measure, 
design, and other clear description of other techni cal properties of the procured commodity, work or 
service, in compliance with the current RA norms, documents and standards, and in their absence, 
with international temporary technical conditions or intern ational standards. 
  The technical requirements shall not demand or refer to any trademark, brand name, licence, 
design or model, country of origin or concrete  source or producer, except the cases when it is 
impossible to describe the procurement item without them.  In case of references, the description of 
technical properties must contain the words "or equal"."  GPA/ACC/ARM/3 
Page 10  
 
24. Identify the measures in national legislat ion ensuring that awards are made in 
accordance with the evaluation criteria and ess ential requirements specified in the tender 
documentation. 
 According to Article 34 of the LP "Tender commission members evaluate the tenders as 
prescribed by the invitation.  Th e tenders that meet the requirements of the invitation are deemed 
satisfactory;  otherwise, the tenders are deemed un satisfactory and rejected.  If there is a discrepancy 
in amounts indicated in words and digits in a te nder, the amount written in words takes precedent." 
 
VI. INFORMATION 
25. Article XIX:1 of the Agreement foresees the publ ication of laws, regulations, judicial 
decisions, administrative rulings of general application and procedures regarding government 
procurement.  Please give the name of the relevant publication(s) and indicate the media used for this purpose.  Please also provide, where availa ble, the address of an Internet website where 
the legislation referred to in questions 1 and 2 can be found. 
 All official information related with proc urements, including laws, regulations, judicial 
decisions, administrative rulings of general a pplication and procedures regarding government 
procurement should be published on procurement official electronic bulletin:  www.procurement.am
. 
  All tender notices are published on the website of the AB and also in local newspapers as well 
as being advertised on television.  In the case of  a request for quotations and competitive negotiation 
procedure for emergency/urgent procurement,  the LP prescribes that announcements for these 
procedures are published in the press in order to identify the persons to be invited to submit a 
quotation or to negotiate.  
26. Article IX:1 of the Agreement foresees the pub lication of invitations to participate for all 
cases of intended procurement by entities.  Plea se give the name of the relevant publication(s) 
and indicate the media to be used for this purpose.  Please also provide, where available, the 
address of an Internet website where such invitations are published. 
 www.procurement.am
 
 
27. Please specify the types of information that your legislation requires to be included in 
notices of invitation to tender or in tender docu mentation, and identify the relevant provisions 
of your legislation. 
 According to Article 25 of the LP: 
 "1. To attract suppliers for the open tender, an  announcement is published in the newsletter:  
www.procurement.am
. 
 
 The open tender announcement contains the following information:   (a) name and address of the procuring entity;  (b) tender code;  (c) brief description of the of procurement contract and specifications of procurement 
item; 
 (d) statement of the suppliers’ right to participate in the tender;  (e) conditions for receipt of invitation,  including the invitation fee and payment 
procedure; 
 (f) language or languages in whic h the tender must be submitted; 
 (g) summary of qualification criteria for suppliers;  GPA/ACC/ARM/3 
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 (h) place and deadline of tender submission;  (i) when needed, other information.   According to Article 27 of the LP:  
 The invitation shall have the following content: 
  (a) reference to the tender announcemen t for which the invitation is expended; 
 (b) instructions for preparation of tenders;  (c) suppliers’ qualification criteria and evaluation procedure thereof; 
 (d) requirements to the documents certifyi ng the suppliers’ qualifications or other 
requirements; 
 (e) specifications of procurement item;  (f) procedure of tender evaluation and selection of winner;  (g) draft procurement contract; 
 (h) if the suppliers are allowed to submit tenders for part of the procured goods and 
services, then the conditions and procedure thereof; 
 (i) breakdown for submitted tender price;  (j) note stating that the proposed price excep t the cost of goods and services incorporates 
transportation, insurance, duties, taxes, etc.  and can not be less than their cost, whose 
calculation must be presented in the tender. 
 (k) Requirements to essence, for, quantity and other conditions for tender security and 
procurement contract execution security; 
 (l) Conditions for tender submission,  including place, deadline, language. 
 (m) Procedure for clarification of tende r documents, notification of suppliers on 
forthcoming meetings, as well as the name and surname of tender commission 
secretary; 
 (n) Place, day and time of tender opening;  (o) References to this law and other legal acts concerning this particular procurement; 
 (p) conditions for signing procurement contract;  (q) activities pertaining to the procurement proceedings and (or) decisions made, and the 
right and procedure for appealing; 
 (r) grounds for denial of tender; 
 (s) data needed for preparation of tender, submission, opening and evaluation, as well as 
other procurement related information. 
 
28. Article IX:1 of the Agreem ent foresees publication of permanent lists of qualified 
suppliers by entities maintaining such lists.  Plea se give the name of the relevant publication(s) 
and indicate the means used for this purpose.  Please also provide, where available, the address 
of an Internet website where such lists are published. 
 The LP does not foresee publication of permanent lists of qualified suppliers. 
 
29. Article XVIII:1 of the Agreement foresees the publication of details of contract award 
notices by entities.  Please give the name of th e relevant publication(s) and indicate the means to 
be used for this purpose.  Please also provi de, where available, the address of an Internet 
website where such notices are published. 
 If the price of the procurement contract ex ceeds the base unit, then the procuring entity 
publishes an announcement (contract award noti ces) in the newsletter:  www.procurement.am
. 
 GPA/ACC/ARM/3 
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30. Please specify the types of information that no tices of contract awards should contain in 
your country and identify the relevant provisions in your legislation. 
 According to LP Article 11:  "If the price of the procurement contract exceeds the one million 
AMD, then the procuring entity after signing the procurement contract publishes an announcement to that effect in the newsletter (www.procurement.am
), except cases of the procurements classified as a 
stat secret." 
 
31. Please specify the relevant provisions in your legislation enabling, as foreseen in 
Article XVIII:2, the provision of informatio n to other Parties and unsuccessful tenderers 
regarding the reasons why a tender was not selected. 
 According to the LP Article: 
 9: "4. The procuring entity must submit the information contained in the procurement 
minutes, except information classified as a state secret , to any person, within five work days after the 
receipt of the request.  Minutes of procurement procedure contain the following, depending on the 
form of procurement: 
  (a) name and address of the procuring entity;  (b) brief account of the need for procur ement and description of the purchased item, 
justification of the choice of the form of procurement; 
 (c) copies of the invitation and amendmen ts therein submitted to the suppliers; 
 (d) copies of procurement-related inquiries and explanations; 
 (e) data on suppliers who submitted tenders: name, address,  means of communication; 
 (f) the prices submitted under tender;  (g) procedure for tender assessment and results thereof;  (h) in case of tender rejection, its justification; 
 (i) copy of procurement contract, and if the contract is not signed as a result of 
procurement procedure, its justification; 
 (j) if illegal activities are discovered during the procurement procedure, brief description 
of the former and of measures taken; 
 (k) copies of complaints about the procurem ent procedure and decisions made in this 
respect; 
 (l) other necessary information." 
 33: "5. Suppliers and representatives thereo f can be present at the tender commission 
sessions.  Suppliers or representatives thereof can demand the copies of minutes of the tender 
commission sessions which are provided within one working day. 
 
 6. The work day after the tender commission session, the copies of the minutes of the tender commission session are provided to the suppliers who or whose representatives did not participate in the session."  38: "Tender is announced invalid if: 
 
 (a) none of the tenders comply with the tender invitation;  (b) the need for procurement ceases to exist;  (c) no tender has been submitted;  (d) the price offered by the selected supplie r exceeds the allocation for this procurement, 
unless the condition specified in article 34, paragraph 6 is applicable. 
 (e) A procurement agreement is not signed as a result of tender.   GPA/ACC/ARM/3 
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 2. After nullification of the tender, it is prohibited to open the unopened tenders, which 
are returned to the suppliers.   3. After nullification of the tender, the newsletter publishes a notice mentioning the 
grounds for nullification of the tender, except cases when state or official secrets are involved." 
 
VII. BID CHALLENGE PROCEDURES 
32. Please provide information on ex isting challenge procedures. 
 In accordance with the LP, allegedly aggrie ved providers may choose to lodge a complaint 
against the actions of the procuring entity and/or tender commission either before the AB or before 
the national courts.  The decisions of the AB may be appealed before the national courts. 
  Complaints to the AB must be submitted in wr iting.  The decision is made by the Minster of 
Finance.  The AB can make the following decisions with respect to the procuring entity and/or tender 
committee:  prohibit certain actions and decisions;  ob lige them to make certain decisions;  reconsider 
the decisions;  terminate the procurement contract.  The AB may also award damages to aggrieved 
providers.  The AB may decide to suspend th e procurement process before the decision on the 
complaint is made (therefore no automatic suspension applies).  In any event, no suspension applies if 
for reasons of defence and national security  the procurement process must continue. 
  The LP provides that a standing unit of the AB is responsible for handling complaints 
concerning public procurement proceedings.  The LP provides that, with regard to local self-
government bodies and community institutions, the Cent ral Bank of the Republic of Armenia, state or 
community non-profit entities and entities with over 50 pre cent of shares owned by the state or communities, the functions conferred to the AB co ncerning review of complaints are respectively 
dealt with by the community council, the Cent ral Bank Board or other delegated body, the 
management body of the given organization. 
 
33. Are there specific provisions enabling a ccess of foreign suppliers to challenge 
procedures? 
 Yes.  Access of foreign suppliers to challe nge procedures can be limited if according to 
Article 7 of the LP the participation of a foreign supplier has been restricted by RA Government 
resolution, as it is follows from the RA national security and defence interests. 
 
34. To the extent that this information does not fully respond to the following points, please 
provide the supplementary info rmation necessary to do so: 
 (i) The time-limit to launch a complaint contained in the Agreement is "not less 
than 10 days" from the time when the basis of the complaint is known or 
reasonably should have been known.  What are the limits in your domestic 
legislation? 
 
 According to the LP, there is no time limitation fo r launch a complaint.  There is a time-limit 
for the AB to dispose of an appeal once the co mplaint has been launched.  In accordance with 
Article 53 of the LP, "Based on the procurement le gislation, the authorized body, not later than 
20 days after the receipt of the appeal and not earlier than in 10 working days, makes a decision with respect to the appeal."  GPA/ACC/ARM/3 
Page 14  
 
 (ii) What body is responsible for the cha llenge procedures?  Is this a "court" or an 
"impartial and independent review body"?  If the latter: 
 
 In accordance with the LP, providers may choo se to lodge a complaint against the actions of 
the procuring entity and/or tender commission either be fore the AB (Ministry of Finance) or before 
the national courts. 
 
  - How are its members selected?  
 The LP provides that a standing unit of the AB is responsible for handling complaints 
concerning public procurement proceedings.  It is a department reporting to the Minster of Finance.  
The officials are civil servants. 
 
  - Are its decisions subject to judicial review?  
 Yes.  The decision of the authorized body is final, unless the court ruled otherwise. 
 
  - If not, how will the requirements of paragraph 6 of Article XX be taken 
 into account? 
 
 Not applicable. 
 
 (iii) What is the applicable law by ref erence to which the challenge body will 
examine complaints? 
 
 "Law on Procurement" of the Republic of Armenia. 
 
 (iv) Which rapid interim measures are provided to correct breaches of the 
Agreement and to preserve commercial opportunities? 
   - Do these measures include the po ssibility to suspend the procurement 
 process?  On what conditions? 
 
 The AB may decide to suspend the procurem ent process before the decision on the complaint 
is made (therefore no automatic suspension appli es).  In any event, no suspension applies if for 
reasons of defence and national security the procurement process must continue. 
  (v) How do challenge procedures provide  for correction of the Agreement?  What 
types of compensation for loss or da mages suffered can the challenge body 
order? 
 
 The AB can make the following decisions with respect to the procuring entity and/or tender 
committee:  prohibit certain actions and decisions;  ob lige them to make certain decisions;  reconsider 
the decisions;  terminate the procurement contract.  The AB may also award damages to aggrieved 
providers.  
 (vi) Give any available information on  the time-periods for the stages of the 
challenge process, including to obtain interim measures and a final decision. 
 
 In accordance with Article 53 of the LP, "Based on the procurement legislation, the 
authorized body, not later than 20 days after the receipt of the appeal and not earlier than in 10 
working days, makes a decision with respect to the appeal.  The decision of the authorized body is 
final, unless the court ruled otherwise." 
  GPA/ACC/ARM/3 
 Page 15 
 
 
 (vii) What are the usual costs to cond uct a challenge procedure?  Are there 
possibilities foreseen to do so free of charge? 
 
 It is free of charge.  VIII.  OTHER MATTERS 
35. To what extent is information technology  being used in the process of government 
procurement?  Are notices of invitations to tend er and/or notices of contract awards published 
electronically?  Please provide the address of such electronic publications. 
 The notices of invitations (tender announcemen ts and invitations (biding documents)) and 
notices of contract awards published electronically at the following web address 
www.procurement.am
. 
 
36. Is there a contact point in your country for responding to enquiries from suppliers, 
other governments and the wider public relating to laws, regulations and procedures and 
practices regarding government procurement at th e central and/or sub-central level?  Please 
provide the address. 
 There is a telephone "Hot line-Assistance service" in the State Procurement Agency. 
 Telephone: (+374) 10 28 93 25  Address: Komitas 54B street, Yerevan, Armenia  GPA/ACC/ARM/3 
Page 16  
 
ATTACHMENT 1
* 
 
DRAFT  
REPUBLIC OF ARMENIA 
 
LAW 
 
ON PROCUREMENT 
  
SECTION 1 
 
GENERAL PROVISIONS 
 
 Article 1: Subject regulated by the law 
 
 This law regulates relations pertaining to the procurement of goods, works and services by 
clients, and establishes principal rights and responsibilities of parties thereto. 
 
Article 2: Main terms used in the law 
 
 The following main terms are used in this law:  
 Client: 
  1) State administration bodies and local self-governments, state and community 
agencies envisaged in the Republic of Armenia Constitution and laws; 
  2) The Republic of Armenia Central Bank;   3) State or community non-commercial (non-profit) organizations 
 
 4) Entities with over fifty percent of government or community shareholding;   5) Associations (unions) formed by the state or community or the Republic of Armenia Central Bank or state or community non-commercia l (non-profit) organizati ons or entities with over 
fifty percent of government or community shareholding; 
  6) Legal entities recipient of funds donated by the government or community or the Republic of Armenia Central Bank or state or co mmunity non-commercial (non-profit) organizations 
or entities with over fifty percent of government or community shareholding;  
 7) Public undertakings. 
 
 Public undertakings 
 
 1) 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; 
 
                                                     
 
* In English only.  GPA/ACC/ARM/3 
 Page 17 
 
 
 2) Еntities 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.   3) Entities over which  the government or  community or the Republic of Armenia 
Central Bank or a state or a community non-commercial (non-profit) organization or an entity with 
over fifty percent of government or community shareholding may exercise a dominant influence by virtue of ownership, financial pa rticipation or its governance rules. The presumption of exerting the 
dominant influence is applied to all situations wh en the government or community or the Republic of 
Armenia Central Bank or the state or community non-commercial (non-profit)  organization or the 
entity with over fifty percent of government or comm unity shareholding in relation to with the entity: 
   a. Holds the majority of th e entity’s subscribed capital; or 
   b. Controls the majority of votes att aching to shares issued by the entity; or 
 
  c. Can appoint more than half of th e members of the entity ’s administrative, 
 management or supervisory body. 
  4) Condominiums established for the pur poses of managing a multi-apartment building 
or common property of buildings. 
 
 Procurement  - Purchase of all types of goods, works and services reimbursed by the Client. 
For the purposes of this law:   1) The rent and leasing regarded as a purchase of service;   
 2) The following is also considered as procurement:  
  a. Purchase of goods, works and services by legal entities from the funds 
 donated to such entities by the Client; 
  b. Purchase of goods, works and services by barter;   c. Public-private partnership transactions; and    d. Asset management and concession transactions. 
 
 Contract  - a contract concluded for procurement purposes; 
  Bidder  - an entity participating in procurement processes for the purposes of concluding a 
contract with the Client; 
 
 Selected bidder -  bidder(s) offered a contract by the Client; 
  Invitation (Bidding documents)  - terms offered to the bidder for the purposes of contract 
signing;  
 Bid  - an offer submitted by the bidder based on the invitation;  
  Bid security -  in cases stipulated in this law, a guarantee securing implementation of the 
obligations assumed in the bid by the bidder;  
 Contract performance security - in cases stipulated by this law, a guarantee securing 
implementation of the obligations being assumed under the contract by the selected bidder;    Electronic auction  - when carrying out the procurement, repetitive process involving 
electronic devices for presentation of new prices, revised downwards, and/or new non-price proposals, GPA/ACC/ARM/3 
Page 18  
 
which occurs after an initial full evaluation of the bids, enabling to rank in descending order the 
bidders, who submitted the bi ds, using automatic evaluation methods (means);  
  Electronic means  - the use of electronic equipment, incl uding 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; 
  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. 
 
 The Center for Procurement Support and Expertise - a legal entity authorized by the 
Republic of Armenia Government;    Bulletin -  the Electronic Procurement Bulletin published by the Authorized Body; 
 
 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 limit the exercise of activities in the certain  field of public services only to one or to a limited 
number of entities, and which substantially affect s the ability of other entities to carry out such 
activities; 
 
 Subject of procurement  - any goods, works or services being purchased; 
 
 Description of procurement subject -  technical specifications, procurement and payment 
terms and conditions of subject of procurement; 
 
 Consulting services  - non-material services, which do not render a measurable physical 
output; 
 
 Consultant  - an entity, which participates in th e procurement process for the purposes of 
signing a consulting services' contract with the Client; 
 
 Selected consultant -  a consultant(s) offered a consulting services' contract by the Client;   
  Procurement base unit - an amount equal to one thousand minimum wages expressed in the 
Republic of Armenia national currency.  
 Relevant activities - following activities in the field of pub lic services to which this law shall 
apply. They include: 
 
 1) The provision or operation of fixed ne tworks intended to provide public services in 
connection with the production, transport or distribution of gas, heat or electricity or supply of natural 
gas, heat or electricity to such networks; 
  2) The provision or operation of fixed ne tworks intended to provide public services in 
connection with the production, transport or distri bution of drinking water or the supply of drinking 
water to such network; 
 
 3) The provision or operation of networks intended to provide public services in the 
field of transport. A network for providing transpor t 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. 
  GPA/ACC/ARM/3 
 Page 19 
 
 
 4) The provision of postal services. Postal services mean services consisting of the clearance, sorting, routing and delivery of postal items - correspondence, books, catalogues, newspapers, periodicals and postal packages cont aining other merchandise with or without 
commercial value - irrespective of weight;  
 5) Exploitation of a geographical area: 
   a. for the purpose of exploring for or extracting oil, gas, coal or other solid 
 fuels; 
  b. for the purpose of the provision of  airports and inla nd ports and other 
 terminal facilities to carriers by air or inland waterway. 
  The Republic of Armenia government shall, on the basis of this law, set out the conditions 
and peculiarities for application of this law to relevant activities. 
 
 Procurement process  - an entirety of actions aimed at  execution of procedures, rights and 
responsibilities pertaining to carrying out procurem ent as stipulated by the Republic of Armenia 
legislation on procurement.  
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: 
  a. purchase of goods, works and services requi site (adequate) to carry out the powers 
delegated to the Client; and 
 b. exchange of funds allocated for procurem ent 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:   1) Efficiency, effectiveness and economy of procurement;  
 2) Administration of procurement process based on unified rules and principles of 
competition, transparency, openness and non-discrimination;   3) Expansion of bidders' circle and promotion of competition among them for the 
purposes of contract signing;  
 
 4) Prevalence of equal right for every pers on to participate in the procurement process 
regardless of being a foreign indi vidual, entity or a stateless person; except cases stipulated by law; 
  5) Regulation and coordination of the procurement process; 
 
 6) Existence of legal framework for control over the procurement process.  3. The scope of this law covers the procuremen t carried out in the Republic of Armenia. The 
Republic of Armenia Government establishes the pr ocedure for procurement outside of the Republic 
of Armenia. 
 4. The scope of this law shall not cover tran sactions related to the lease and purchase of land, 
arbitration (including mediation) services as well as labor contracts.  GPA/ACC/ARM/3 
Page 20  
 
Article 4: The Republic of Armenia legislation on procurement 
 
1. The Republic of Armenia legislation on procurement is comprised of the Republic of Armenia Civil Code, this law and other legal acts.  
2. In the event if an international agreement se ts out provisions other than in 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 ar e also being published in the Bulletin. 
 
Article 5: Eligibility to participate in procurement process and qualification criteria 
 1. Each person has equal right to participate in  the procurement (bidding) regardless of being a 
foreign individual, entity or a stateless person.  2. The following persons shall not have th e 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; or   3) Have a representative of the executive body, who has been convicted for offenses 
against economic activities or state service, excep t 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 ob ligation assumed under a contract or a 
 procurement process leading to a unilatera l termination of the contract by the 
 Client or a suspension of that bidder from further participation in the  procurement process; 
  b. has submitted falsified da ta under the procurement process; 
  c. as a selected bidder, has repeatedly  refused to sign the awarded contract; 
  d. in a manner prescribed by law, the bidder has been convicted by a decision 
 for anti competitive behaviour during procurement process, such as collusion 
 or abuse of dominant position.  
  e. within three years preceding the bid submission, has been convicted by court 
 judgment for participation in a criminal  organization, for corruption, for fraud 
 and/or for money laundering, except th e cases when such conviction has been 
 lifted or cancelled. 
 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 of the Clie nt about a bidder who has breached the rules of 
procurement business ethics. After hearing the opini on of the bidder concerned, the Review Board 
decides if the bidder has to be included in the list st ipulated in this Article. An entity can be enlisted 
for a period from 6 months to 3 years depending on  the seriousness of the breach of the rules of 
procurement business ethics.  GPA/ACC/ARM/3 
 Page 21 
 
 
 4. The bidder must satisfy the qualification crite ria set out in the invitation. The bidder shall 
have the following items required to  fulfill contractual obligations: 
  1) Eligibility; 
 
 2) Compliance of professional activity to activities stipulated in its charter;   3) Professional experience;  
 4) Technical resources; 
  5) Financial resources;   6) Labor 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:   1) not stipulated in this Article;  
 2) discriminatory and limit the competition by unduly complicating or simplifying 
potential participation in the procurement process;   3) inadequate and 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 tender invitation and they shall be based on general conditions set out by the 
Republic of Armenia government.  
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. 
 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 inappli cable, then the invitation includes a notice that any 
person regardless of being a foreign individual or an entity or a statel ess person can submit the bid; 
furthermore, the notice is not subject to changes. If th e paragraph 2 of this Artic le is applied, then the 
invitation includes a notice about that. 
 4. In the event if the Republic of Armenia legislation requires special permit (license) or 
fulfillment of specific criteria in order to carry out  contractual obligations but the legislation of the 
country of citizenship of a foreign bidder does not have 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 fulfillment of specific 
criteria. The provisions of this paragraph are not a pplicable, if according to the Republic of Armenia 
legislation this kind of activities in the Republic of Armenia could be conducted only by the Republic 
of Armenia legal entities. 
 GPA/ACC/ARM/3 
Page 22  
 
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 the same procurement process is prohibited with the 
exception of entities founded by th e Government or communities. 
 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 applyi ng any other favorable cond itions for such entities. 
 7. Procurement from an entity with government or community shareholding can be carried out 
without bidding only in cases, when such pr ocurement from other entities cannot be done. The 
impossibility shall be established as a result of the tender. 
 
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 
standard form for submission of such informatio n and the validity terms thereto. Submission of 
information in accordance with the validity terms but  in a different format does not serve as a ground 
for non-acceptance of such information. 
 
3. In the framework of functions set out in th is law, the communication can be carried out 
electronically, including:   1) Electronic provision of invitation;  
 
 2) Electronic submission of bids in cases a nd pursuant to the procedure stipulated in the 
invitation.  4. 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. 
 
5. The tools to be used for communication by electronic means, as well as their technical characteristics, must be non-discriminatory, ge nerally available to any potential bidder and 
interoperable with information and communi cation technologies means in general use. 
 
6. The following rules are manda torily applicable to means fo r the electronic transmission and 
receipt of bids:   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 receipt 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;  GPA/ACC/ARM/3 
 Page 23 
 
 
  e. During the different stages of procurement procedure, the access to received 
 data is possible only by an simultane ous 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 accordance with the requirements of this 
 paragraph must remain accessible only to persons authorized to acquaint 
 themselves therewith. 
  3) The bidders shall submit, before expiry  the time limit laid down for submission of 
bids, the documents, certificates, declarations and other, in case these are not available in electronic 
format. 
 7. The Republic of Armenia Government specifies the particularities of the electronic procurement procedure.  Article 8: Minutes of procurement pr ocedure 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;   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 th e procurement process, a brief description 
of such actions and of measures undertaken;   
 11) Complaints related to the procurem ent process and decisions made thereto; 
  12) Other necessary information.  2. Within five calendar days of the signature of contract financed by the state budget or 
cancellation of the procurement process, the Client s ubmits to the Authorized Body an extract of the 
procurement procedure minutes..  The Authorized Bo dy determines the standard form of the extract. 
 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. GPA/ACC/ARM/3 
Page 24  
 
 4. The Client provides a copy of the procurement procedure minutes, except for procurements containing state or official 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. 
 
Article 9: Contract award decision, stands till 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 bi dders  involved in the procurement process 
by electronic means, fax or registered mail. 
 
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 
of contract signature. 
 
3. The standstill period:   a) Shall be at least 15 calendar days, in case of procurements exceeding the Procurement 
base unit by ninety times; 
 b) Shall be at least 5 calendar days, in case of procurements not exceeding the 
Procurement base unit by ninety times. 
  The standstill periods stipulated in the para graph 3 of this Article do 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. 
 4. The contract is signed, if no bidder complain s against the award decision at the Procurement 
Complaint Review Board within the standstill peri od of paragraph 3 of th is Article. A contract 
concluded before the expiry of th e standstill period is null and void. 
 
5. Relations between the procurement parti es not regulated by the Republic of Armenia 
legislation on procurement are regulated under the contract. The Republic of Armenia government 
shall set out the standard contract  and general conditions thereof. 
 Article 10: Contract award 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 or official secrets. 
  GPA/ACC/ARM/3 
 Page 25 
 
 
Article 11: Bidders' illegal actions 
 
 If a bidder or a representative of its manage ment body commits any illegal actions against 
economic activities or state service under the procur ement process, then the Client, on the day when 
such grounds are identified, notifies about this th e Authorized Body and the law enforcement bodies 
providing them and the bidder with the grounds for such decision.  
 
Article 12: Procurement subject description 
 
1. The description of procurement subject shall fully and clearly describe technical 
specifications of goods, works or services being proc ured as well as terms and conditions for their 
purchase and payment, ruling out any alternative in terpretation. The description of the procurement 
subject is included in the contract.  2. The description of procurement subject: 
 
 1) Shall afford equal access to the 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' procuremen t, 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 requi rements for quality, standard, safety, terminology, 
packing, unloading, dimension, design and other te chnical characteristics related to the goods, works 
or services being procured; the description are b ased on the existing Republic of Armenia normative-
technical documents and standards or, if such documents and standards are missing, on temporary 
technical references or international standards.  4. Without prejudice to the existing Republic of  Armenia normative and technical documents 
and standards the technical specifications can al so be defined in terms of performance and/or 
functional requirements that have to be described sufficiently accurate in order to allow bidders and 
the Client to understand exactly the subject-matte r of the 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 descriptions of pub lic-private partnership, asset management and 
concession transactions as well as the procedure for development and approval of those descriptions 
shall be specified by the relevant Republic of Arme nia law, or, in the absence of such law, by the 
Republic of Armenia government decree.
 
 GPA/ACC/ARM/3 
Page 26  
 
Article 13: Official language of procurement procedure 
 
 Procurement related documents ar e 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.  Article 14: Procurement planning and financing  
1. Along with the quarterly budget execution prop ortions, the Republic of Armenia Government 
approves, in a separate annex, the procurement pl an to be funded from the state budget and based on 
the administrative and operational classification. Th e procurement plan is approved on the basis of 
procurement subject, quantity, total price, proc urement method and deadlines for arrangement of 
procurement process.  2. In case of procurement funded from othe r sources, the Client approves the annual 
procurement plan according to the procedure and d eadlines specified by the Au thorized Body, and it 
is being published in the Bulletin.  3. Funds for procurement of civil works are allo cated on the basis of design estimates that have 
been approved and expert reviewed in accord ance with the established procedure. Funds for 
procurement of civil works without design estimates cannot be allocated. 
 
4. 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  
 
 2) To temporary suspend this procurem ent, if funds are required for temporary 
suspension.  5. Pursuant to the procedure stipulated in this la w a contract can be signed prior to the allocation 
of funds provided that the contract becomes effe ctive, when the funds envisaged under the contract 
are allocated. The contract signed under this provi sion is terminated, if the funds for contract 
execution are not allocated during the quarter 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; or 
  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.  
6. 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. 
 7. The Republic of Armenia Government specifies  the procedure for planning and financing of 
procurement. 
  GPA/ACC/ARM/3 
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SECTION 2 
 
REGULATION AND COORDINATION OF PROCUREMENT PROCESS 
  
Article 15: Regulation and coordination 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 developm ent of draft legal acts on procurement and 
approves or submits them for approval; 
  2) Facilitates the methodological guidance for the procurement process;   3) Ensures the existence of a system for professional education, continuous training and qualification assessment of procuring entities' procurement specialists; 
 
 4) Approves standard documents used in procurement processes;   5) Provides methodological assistance to procuring entities and bidders on issues of facilitation and participation in procurement activities; 
 
 6) Facilitates the publication of the Bulletin;   7) Coordinates the procurement rela ted collaboration between international 
organizations, foreign states and the Republic of  Armenia state bodies and local self-governments; 
 
 8) In terms of  compliance to the requireme nts of the Republic of Armenia legislation on 
procurement examines the extracts from the minut es of procurement procedures and the contracts 
submitted to it and registers them;   9) Publishes: 
 
  a. The annual public procurement reports;   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. To coordinate procurement re lated relations between the Authorized Body and the Client as 
well as to arrange the Client's procurement activities, the head of the Client, by  a decree, establishes a 
unit responsible for procurement or appoints a pe rson(s) responsible for procurement, which: 
  1) Is responsible for the facilitation of th e Client's procurement and the coordination of 
procurement related activities of the Client's other responsible officials involved in the procurement 
process;   2) Provides an opinion on procurement related draft documents developed by the 
Client's other responsible officials involved in the procurement process and approved by the Client; 
 GPA/ACC/ARM/3 
Page 28  
 
 3) Implements the powers of the secretary of the tender 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;  
 5) Is accountable to the Client's Chief Financial Officer (or substituting official). 
 4. The staff and the responsible person(s) of the procurement unit shall be included in the list of 
qualified procurement specialists published by the Au thorized 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.  5. The Authorized Body ensures the evaluation of qualification of pe rsons responsible for 
coordination of procurement and th eir participation, at least once in three years, in procurement 
related training or retraining programs. 
 
Article 16: The Center for Proc urement Support and Expertise 
 
 Pursuant to the procedure set out by the Republic of Armenia government, the Center for 
Procurement Support and Expertise: 
 
 1) Implements professional education,  continuous training and assessment of 
qualifications for bidders, procuring entities and procurement specialists; 
  2) Assists bidders, clients and other entities in arrangement of procurement and provides 
professional advice; 
  3) Facilitates an assessment of qualifications  - prequalification and rating - of potential 
bidders, compiles the register (list) of pre qualified bidders and publishes it in the Bulletin; 
  4) Evaluates the eligibility and the qualifi cation of bidders to participate in open 
periodic biddings, compiles the register (list) of qualified potential bidders and publishes it in the 
Bulletin;   5) Implements the e-procurement service functions center,  
 6) Compiles and publishes electronic newsletters on goods, works and services, analyzes 
and publishes procurement statistics;   7) Conducts an expert assessment of techni cal specifications of procurement subject and 
bidder qualification criteria approved by a Client  in order to ensure the compliance to the 
requirements for equal treatment and non-di scrimination stipulated under this law; 
 
 8) Ensures the existence of a procurement support service (hotline) in order to register 
procurement related signals and pr omptly respond to the questions; 
  9) 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, 
  d. Carries out the functions of the Board's staff.  GPA/ACC/ARM/3 
 Page 29 
 
 
  10) Carries out expert assessment and mon itoring of Clients' compliance to the 
requirements of this law and pub lishes conclusions in the Bulletin; 
  11) Implements other powers set out by th is law, the Republic of Armenia government 
and the Authorized Body. 
  
SECTION 3 
 
PROCUREMENT METHODS AND APPLICATION CONDITIONS THEREOF 
  Article 17: Procurement methods 
 1. The procurement methods are: 
  1) Bidding;   2) Limited bidding;  
 3) Request for quotations; 
  4) Competitive negotiations;   5) Single source. 
 
2. Bidding is the preferable and basic procurement method. Only in cases stipulated in this law, other methods of procurement can be used.  3. The types of bidding are opened and closed.  
4. The bidding can be targeted or periodic. 
 5. The bidding is periodic, if the subject of pr ocurement is periodically used and is included in 
the list approved by the Republic of Armenia G overnment. Otherwise, the bidding is targeted. 
 
6. The Republic of Armenia Government speci fies the procedure for procurement under the 
periodic biddings.  7. The Client can carry out procurement fro m exchanges, including from international 
exchanges, in cases and in accordan ce with the procedure specified by the Republic of Armenia 
Government.  Article 18: Conditions for use of a two-stage bidding  
 Bidding can be carried out in two stages, if the Client: 
 
 1) Are not objectively able to specify the description of procurement subject in 
accordance with the provisions of the Article 12 of this law and:    a. Gives the bidders an opportunity to propose possible descriptions of 
 procurement subject; or GPA/ACC/ARM/3 
Page 30  
 
  b. There is a need to negotiate with th e bidders to clarify some specific features 
 of the procurement subject description. 
  2) Has an intention to sign a contract:  
  a. For procurement of scientific research, including sociological or expert 
 studies; 
  b. For procurement of public-private  partnership or asset management and 
 concession services. 
 Article 19: Conditions for use of a closed bidding  
1. The procurement is carried out by a close bi dding, if it contains a state or official secret. 
 2. As prescribed in the procedure stipulated by  this law, the Republic of Armenia Government 
approves the procurement plan that contains a stat e or official secret and only includes goods, works 
and services required to provide military equi pment, weapons, ammunition and armament. 
 
Article 20: Conditions for use of a limited bidding  
 Limited bidding can be used, if the subject of procurement is not included in the procurement 
contracts signed under periodic biddings and, due to particularities of its technical specifications, this 
procurement can be done from no more than three entities. 
 
Article 21: Conditions for use of a request for quotations  
1. Procurement can use the request for quotations, if the subject of procurement is not included 
in the procurement contracts signed under periodic biddings and its price does not exceed twenty base 
units of procurement.  2. In addition to presence of the conditions stipul ated in the paragraph 1 of this Article, the 
request for quotations can be used, if: 
 
 1) Goods and services of general (periodi cal) use with standard (similar) technical 
specifications are purchased; or   2) Simple civil works without a mand atory requirement for design estimates are 
purchased. 
 
Article 22: Conditions for use of competitive negotiations 
 
 Procurement can be done through competitive ne gotiations, if the subject of procurement is 
not included in the procurement contracts signed under periodic biddings and: 
 
 1) Due to emergency or other unforeseeable circumstances, there arise an urgent need for procurement and bidding cannot be used due to  time constraints, provided that such need was 
impossible to foresee;  
 2) The price of procurement subject does not exceed the Procurement base unit. 
 
Article 23: Conditions for use of single source method 
 
1. Single source method can be used, if:  GPA/ACC/ARM/3 
 Page 31 
 
 
 1) Due to copyright or related rights, existe nce of special or exclusive right (license) or 
lack of competition, the  goods, works or services can be obtained from a single source;   2) Insofar as an urgent need for procurem ent arises and when, for reasons of extreme 
emergency, another method of proc urement is impossible due to time constraints, provided that such 
need was impossible to foresee and the procurement subject is not included in the contracts signed 
under periodic biddings. Situations caused by na tural 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. The 
length of such contracts or recurrent contracts (a greements) shall not, as a general rule, exceed more 
than 3 years; 
 
 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 original 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 a dditional 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 busin ess activities, or the receivers or liquidators of a 
bankruptcy, an arrangement with creditors or a si milar procedure, specified by the Republic of 
Armenia government.  2. Provisions stipulated under the paragraph 1 of this Article apply, if there are documents and 
(or) grounds specified by the Republic of Armenia Government justifying such provisions.  Article 24: 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 
bidding;   2) To amend the descriptions of goods, work s and services envisaged in the procurement 
contracts. 
 
2. It is prohibited to combine procurement subject s with different descriptions into one lot, if 
they can be presented in separate lots. 
 
 GPA/ACC/ARM/3 
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SECTION 4 
 
BIDDING PROCEDURE 
 
 
CHAPTER 1: SOLICITATION OF BIDS 
 
 
Article 25: Tender committee 
 
1. Prior to the publication of a tender announcem ent, a tender committee composed of at least 
three members is formed by a decree of the Client's head, which:   1) Approves the texts of tender  announcement and tender invitation; 
 
 2) Makes amendments in the tender invitation; 
  3) Provides explanations about the bidding;   4) Opens and evaluates the bids;  
 5) Select the winning bidder(s). 
 2. The committee has a chairman and a secret ary, who are appointed by the decree on 
establishment of the committee. The secretar y is not a member of the committee and: 
 
 1) Facilitates the committee's activities; 
  2) Is responsible for maintaining a bid register;   3) Develops and submits to the committee  draft documents subject to the committee's 
approval; 
 
 4) Provides the invitation;   5) Records and stenographs informati on on the committee's activities by developing 
appropriate documents and ensures the safety of  those documents during the committee's operation; 
 
 6) Arranges provision of bidding 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 tender committee.   GPA/ACC/ARM/3 
 Page 33 
 
 
Article 26: Tender announcement and invitation 
 
1. Tender announcement and invita tion are published in the Bulletin to attract bidders to an open 
bidding. Unless otherwise stipulated under the para graph 2 of this Article, the announcement and the 
invitation are published at least thirty calenda r days prior to the bid submission deadline. 
 
2. If the estimated price exceeds the ninety b ase units of procurement, 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 bidding;  
 3) Clear summary of the content of contract and procurement subject descriptions; 
  4) Announcement about the right of bidders to participate in the bidding;   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 respons ible 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 that written request to the Client.  5. If the estimated price exceeds the ninety base un its of procurement, 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 bidding a charge is levied, 
which cannot exceed the costs for photocopying a nd delivering the invitation. The invitation is 
provided upon presenting a copy of the bank issued doc ument verifying the payment of the requisite 
amount. The Republic of Armenia Government specif ies the procedure for issuance 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 bid at the open bidding.  GPA/ACC/ARM/3 
Page 34  
 
Article 27: Prequalification procedures 
 
1. If the estimated price exceeds the five hundred base units of procurement and the 
procurement is done by a targeted bidding, then bidd ers' prequalification procedure is arranged, while 
in case of other procurement methods the pr equalification procedure may be arranged. 
 
2. To arrange a prequalification procedure, an  announcement in Armenian, English and Russian 
is published in the Bulletin. The announcem ent contains the following information: 
  1) Name and location of the Client; 
 
 2) Code of the prequalification procedure;   3) A notice on the right of applicants to participate in the prequalification procedure;  
 4) Language(s), in which the prequalif ication information shall be submitted; 
  5) A clear summary of the procurement subject descriptions;   6) The procedure for preparation and submission of prequalification information, including the format and venue, the deadline for submission, which cannot be less than fifteen 
calendar days after publishing the an nouncement on prequalification; 
  7) The requirements set out for applicant's eligibility to bid and qualification and the procedure for their evaluation;  
 8) Other necessary requirements rela ted to the prequalification procedure. 
 3. The Client responds, within three calendar days , to the bidder's request for explanations about 
the prequalification, if such request had been recei ved 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. 
 
4. During the prequalification, the eligibility of th e bidder to bid and the bidder's qualification is 
evaluated in accordance with the procedure set out in  the prequalification invitation. The results of 
prequalification procedure are summarized no later than  within thirty calendar days after the deadline 
for the submission of prequalification bids. 
 
5. Prequalified bidders are eligib le to participate in procurement process. The Client sends the 
tender invitation to prequalified bidders only.  6. The minutes on results of the prequalification pr ocedure, which constitute an integral part of 
the minutes of procurement procedure, are drafted and sent to participants of the prequalification 
procedure within three calendar days after finalizi ng the results of the prequalification procedure. 
 7. The Republic of Armenia Government specifi es the particularities of application of the 
prequalification procedure.  Article 28: Content of invitation  
1. The tender invitation includes: 
  1) A reference to the published tender a nnouncement, as a supplement to which the 
invitation is extended;  GPA/ACC/ARM/3 
 Page 35 
 
 
  2) The instructions for bidders;   3) The bidders' qualification criteria 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 terms and conditions 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) The requirements related to the essence, form, quantity and conditions of bid security, 
contract performance security and any performance se curities for obligations assumed by the bidder; 
  11) The conditions for submission of bids, including the form, venue, date and the language of bid;  
 12) The procedure for receiving explana tions on bidding documents, information on 
meetings to be arranged with the bidders as well as the name of the tender committee's secretary; 
  13) The procedure, venue, da te 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;   16) The right of the bidder to appeal agai nst the procurement pr ocess related activities 
(standstill) and/or the adopted decisions and the procedure thereof; 
  17) The bases for bid rejection;   18) Information necessary for preparation, s ubmission, opening and evaluation of the bid 
as well as other procuremen t related information. 
 
2. The tender invitation also envisages that the bi dder submits in the bid a statement verified by 
the bidder justifying the eligibility to participat e in the bidding and the compliance to qualification 
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 do cuments (information) specified in the tender 
invitation justifying the statement. 
 GPA/ACC/ARM/3 
Page 36  
 
Article 29: Clarification of the tender invitation and amendments therein 
 
1. The bidder has the right to request a clarifi cation about the tender 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 provid ed 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 tender invitation's scope. 
 4. Amendments in the tender invitation can be ma de at least five calendar days prior to the 
deadline for submission of bids. In case of an open bidding, an announcement about the amendments 
made and the conditions for their issuance are publis hed in the Bulletin within three calendar days 
after the day such amendments are made; in case of a closed bidding, the amen dments are provided to 
those bidders, who received a tender invitation.  5. In case of amendments in the invitation fo r an open bidding, 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 closed bidding - from the day of issu ing to the bidders the amendments made in the 
invitation. In this case, the bidders must extend th e 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 
  
Article 30: Submission of bids  
1. The bidder submits the bid following the procedure specified in the tender invitation. The tender invitation includes the following items verified by the bidder:  
 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 specified by the Authori zed 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 (i f applicable) by the submitting party. The documents 
placed into the envelope consist of the original documents and the number of copies indicated in the 
invitation. The packages of documents are marked wi th the words "original" and "copy" respectively. 
The envelope and the documents e nvisaged in the tender invitation and prepared by the bidder are 
signed by the person submitting them or a person author ized by the latter (hereinafter referred to as  GPA/ACC/ARM/3 
 Page 37 
 
 
"agent"). If the bid is submitted by the agent, a doc ument verifying such authority of the latter is 
included in the envelope.  3. On the envelope aforementioned in the paragraph 2 of this Article, in th e language of bid, are 
indicated: 
 
 1) The name of Client and the venue (address) of bid submission; 
  2) The code of bidding;  
 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 tender 
committee at the bid opening meeting and returned to the submitters unaltered.  
6. The bidders can participate in the procur ement process as a consortium. In such cases: 
  1) The bid also includes an agreement on joint venture;   2) When evaluating the bid, the unified qualif ications of all parties to the agreement on 
joint venture are taken into account; 
  3) The bidders bear joint and several liability.   The Republic of Armenia Government specifi es the requirements for participation in the 
procurement process as a joint venture. 
 
Article 31: Validity period of the bid, its withdrawal and amendments therein 
 
1. The bid is valid until the contract signature, th e withdrawal of the bid by the bidder, the bid 
rejection or the cancellation of the bidding 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 Ar ticle 30(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. 
 
Article 32: Bid security 
 
1. The bidder provides with the bid a bid secur ity as prescribed in the tender 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 secu rity as a validated unilateral statement - fine. The 
standard form of the fine is set out by the Authorized Body.  2. The bid security - the penalty - is paid by the bidder, if that bidder: 
 GPA/ACC/ARM/3 
Page 38  
 
 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 open biddings. 
 
 
CHAPTER 3: OPENING AND EVALUATION OF BIDS 
  
Article 33: Opening of bids  
1. The bids are opened at the time indicated in the tender invitation, at the bid opening meeting. 
The date and the time of the bid opening shall coin cide with the deadline for their submission. The 
bids of a closed bidding, upon a written consent of al l bidders that received a tender invitation, can be 
opened prior to the deadline indicated in the tender 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 tender 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;   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 tender 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 e nvelops in terms of compliance to the tender 
invitation requirements; 
  4) Data on availability of documents required in the invitation in each of the opened 
envelops;   GPA/ACC/ARM/3 
 Page 39 
 
 
 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 fi rst and other bidders ranked in order of 
priority;   8) If the bidding is cancelled, 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 memb ers present at the meeting; 
 
4. If a member of the tender committee and(or) a bidder 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.  5. Bidders or their representatives can be present at the tender committee's meetings. Bidders or 
their representatives can require copies of the minut es of the tender committee's meetings, which are 
provided within one calendar day.  Without prejudice to the other provisions of this law, the Client 
shall ensure the protection of the information which the bidders have designed as  confidential, insofar, 
objectively, the disclosure of this information would prejudice the legitimate interest of the bidder, in 
particular where the commercial secrecy and intellectual property is concerned. 
 
6. 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 dism isses 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.  7. On the calendar day following the bid opening meeting, a copy of the minutes of the bid opening meeting are provide d to the bidders, who or whose representatives did not participate in that 
meeting. 
 
Article 34: Bid evaluation 
 
1. The bids are evaluated following the procedure specified in the invitation. The bids compliant 
to the conditions specified in the tender 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 the 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 GPA/ACC/ARM/3 
Page 40  
 
must be link with the subject-matter of the contract  and their relative weighting shall be disclosed in 
the tender announcement and 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 offered in two or more currencies, they are compared 
in Armenian Drams at the exchange ra te specified in the tender 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 bidde r ranked the first and othe r bidders ranked in order 
of priority, within the d eadline specified by the 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 tender 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 tender invitation and, in cases 
and in accordance with the procedure defined by th e Republic of Armenia Government, evaluates the 
reasonableness of price and non-price (technical) proposals of that bidder.  6. The bid are rated satisfactory, if the document s specified under the paragraph 5 of this Article 
satisfy the requirement set out in the tender invitatio n. 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 tender committee present at the 
meeting sign the minutes.  9. The Republic of Armenia Government specifi es the particularities of the bid evaluation 
procedure. 
 
Article 35: Contract security 
 
1. The selected bidder is awarded the contract, if  the selected bidder provides a contract security. 
The Republic of Armenia Government specifies the requirements related to the contract security. 
 2. 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 security.  3. The amount of contract performance security is ten percent of the contract price. 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.  4. The contract specifies the repayment proce dure for the advance payment in accordance with 
the terms specified by the Republic of Armenia Government. 
 
5. Contract performance security or advance pa yment guarantee provided in cash are kept, as a 
demand deposit, at the treasury account opened on the name of the Authorized Body.   GPA/ACC/ARM/3 
 Page 41 
 
 
6. Unless otherwise stipulated in the contract , the contract performance security and (or) 
advance payment guarantee are returned to the subm itter no later than five calendar days after the 
contract execution completion.  
Article 36: Signing of procurement contract 
 1. The Client signs a contract with the sel ected bidder based on a decision of the tender 
committee. The contract award decision has to be  communicated to each bidder and candidate in 
accordance with Art 9.  
2. The Client, within two calendar days afte r the selected bidder was announced, notifies the 
selected bidder offering to sign a contract after th e standstill period of Art 9 paragraph 1 has expired 
and providing the draft 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 cont ract and to submit to the Client a contract 
performance security as well as an advance payment gua rantee, if an advanced payment is stipulated 
under the contract, then the selected bidder is deprived of the right to sign the contract. 
 4. The Republic of Armenia Government speci fies the particularities of contract signing. 
 Article 37: Finalization of bidding results  
1. The meeting on finalization of bidding 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 business day after it becomes apparent that, as a result of bidding, no contract is awarded. 
 
2. Minutes of the meeting on finalization of bidd ing results are drafted and attached to the 
minutes of the procurement procedure. Members of the tender committee present at the meeting sign 
the minutes.  3. If a member of the tender committee and(or) a bidder want to express an opinion (special 
opinion) on finalization of bidding results that has not been recorded in the minutes on finalization of 
bidding results, it is submitted in writing and attach ed to the minutes specified under the paragraph 2 
of this Article.  
Article 38: Declaring a bidding ineffective 
 1. The bidding is declared ineffective, if: 
  1) None of the bids complies with the invitation conditions;   2) The need for procurement ceased to exist; 
 
 3) No bid has been submitted;   4) The bidding does not result in a contract award.  
2. After the bidding is declared ineffective, th e opening of unopened bids is prohibited and they 
are returned to the bidders.  3. In order to publish in the Bulletin, within fi ve calendar days after the bidding is declared 
ineffective, the Client furnishes to the Authori zed Body an announcement indicating the grounds for GPA/ACC/ARM/3 
Page 42  
 
declaring the bidding ineffective. No announcement is  published for procurements containing state or 
official secret.  
Article 39: Inadmissibility of negotiations with bidders, detection and prevention of cases 
related to restriction of economic compet ition and abuse of dominant position 
 1. Negotiations between the tender committee, th e Client and the bidders are prohibited, except: 
  1) If there was one bidder bidding in the tender, who was selected the winning tender. The negotiations under this paragraph can lead only to the offered price reduction; 
 
 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 collusion 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 specified under the Article 5 of this law.  Article 40: Calculation of contract price  
1. Calculation of the contract price includes all payments (costs) to be incurred by the selected 
bidder to secure the contract execution and specified in  the bid of the selected bidder, including taxes, 
duties, transportation and insurance costs, bonus payments and profit. 
 
2. The contract price can be variable, if th e contract price varies as a result of changing 
conditions (factors) stipulated under the contr act 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 framework of the contract price. 
 
 
CHAPTER 4: ELECTRONIC AUCTIONS 
  
Article 41: 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 cont ract is awarded to 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. 
 
Article 42: Limitations for co nducting an electronic auction 
 
1. The Client may not have improper recourse to electronic auction nor may use it in such a way 
as: 
  GPA/ACC/ARM/3 
 Page 43 
 
 
 1) To prevent, restrict or distort the competition; or   2) To change the requirements  set out in the tender 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 tender 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. 
 
Article 43: The procedure for co nducting 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 crite ria set out in the tender invitation. 
 
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 case when other features th an the prices will be subject of an electronic auction the request 
provided for by paragraph 3 of this Article 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 weighting of the criteria fixed to determine the winner bid, 
as indicated in the tender invitation. GPA/ACC/ARM/3 
Page 44  
 
 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. 
 
Article 44: 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 which was 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 ha ve 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 specif ied 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 
  Article 45: Shortlist of consultants 
 1. Unless otherwise stipulated in this law,  the procurement of consulting services is done 
through a targeted bidding in accordance with  the procedure specified in this law. 
 2. In the event of a targeted procurement of consulting services, a prequalification procedure for 
shortlisting of consultants is arranged in accordance with the procedure stipulated under the Article 27 
of this law. Up to six participants that have passed the prequalification a nd have higher qualification 
are eligible to participate furt her in the procurement process. 
 
Article 46: Procedure for determining the selected consultant in the bidding 
 
1. The selected bidder 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 bidder can also be determined by a method of selecting the consultant, whose 
scores for offered price and experience, staff, proposed mode of service provision and(or) other non- GPA/ACC/ARM/3 
 Page 45 
 
 
price condition(s) have the highest sum total as ra ted under the procedure in specified in the tender 
invitation.  3. The Republic of Armenia Government specifi es the procedure for selection of consultants, 
including conditions for applying consultant selection method stipulated under this Article. 
 Article 47: Negotiations  
 The provisions of draft procurement contract can be negotiated with the selected consultant; 
however, they cannot result in amending the descripti ons of the procurement subject. The negotiations 
with the consultant selected under the paragraph 1( 1) of the Article 46 of this law can result in 
decreasing the offered price. 
 
 
SECTION 6 
 
OTHER METHODS OF PROCUREMENT 
  Article 48: Two-stage bidding 
 1. In case of a two-stage bidding, a notice thereo f is made in the tender announcement for an 
open bidding procurement and in the tender invitation for a closed bidding.  2. Unless otherwise stipulated in this Article, the provisions of the Section 4 of this law apply to 
the two-stage bidding procedure. 
 
3. In the first stage of two-stage bidding, the bi dders, in accordance with this law, submit initial 
bids that do not contain a price proposal. The initial bids are evaluated at the first stage, when negotiations can be held with a ll bidders. All the bidders, who have  submitted bids, are notified about 
the negotiations in writing.  
4. In the second stage, the bi dders, who passed the first stage,  are issued an invitation to 
participate in the second stage and to submit final bids, including the price proposal.  5. The invitation to the second stage can amend the conditions set out in the tender invitation to 
the first stage and the invitation to the second stage indicates such amendments. 
 
6. In case of two-stage bidding, the bid security is submitted in the second stage with the final 
bid.  7. The bidder, who passed through the first st age of bidding, has the right to decline 
participation in the second stage. 
 
8. The Republic of Armenia Government specifi es the particularities of the procedure for two-
stage bidding.  
Article 49: Closed bidding 
 
1. A tender announcement is pub lished in the Bulletin in case of a closed bidding, while the 
tender invitation is issued to all potential bidders.  2. Unless otherwise stipulated in this law, the pr ovisions of the Section 4 of this law apply to the 
closed bidding. GPA/ACC/ARM/3 
Page 46  
 
 3. The Republic of Armenia Government specifi es the procedure for determining all potential 
bidders eligible to participate in procurements containing state or official secrets as well as the 
peculiarities of the procedure for closed bidding. 
 
Article 50: Limited bidding 
 
1. If a limited bidding is applied, an invita tion is sent to all potential bidders to attract 
participants.  
2. Unless otherwise stipulated in this Article, the provisions of the Section 4 of this law apply to 
the limited bidding.  3. The Republic of Armenia Government specifi es the procedure for determining all potential 
bidders as well as the particularities of the procedure for limited bidding. 
 
Article 51: Request for quotations 
 
1. In case of procurement under the request for q uotations method, the request for quotations is 
published in the Bulletin. If the procurement subject c ontains a state or official secret, the request for 
quotations is sent to all potential bidders. 
 2. The request for quotations includes the conditio ns of bidder's eligibility, qualification criteria 
and description of the procurement subject as well as  the procedure for submission and evaluation of 
bids. 
 3. The quotations include:   1) The bidder verified statement on complian ce of the bidder's data to the requirements 
in the request; 
  2) Price proposal.  4. The quotations are submitted within five cal endar days following the day of publishing the 
request for quotations or, if the procurement contains a state or official secret, of issuing the request 
for quotations.  5. The selected bidder is determined by giving preference to the lowest price proposal no later 
than five calendar days after the deadline for submission of quotations.  
6. Unless otherwise stipulated in this Article, the provisions of the Section 4 of this law apply to 
the request for quotations. In addition, in case of the request for quotations, except for the requirement 
for an advance payment guarantee, the bid secu rity and the contract performance security 
requirements stipulated under the Section 4 of this law are inapplicable.  
7. The Republic of Armenia Government specifies  the particularities of the procedure for the 
request for quotations.  
Article 52: Competitive negotiations 
 
1. As stipulated in the Article 22(1) of this law:   GPA/ACC/ARM/3 
 Page 47 
 
 
 1) An announcement on competitive negotiations  and an invitation thereof are published 
in the Bulletin If the procurement subject contains a state or official secret, the invitation is extended 
to all potential bidders.   2) The bids for participation in competiti ve negotiations are su bmitted within seven 
calendar days following the day of publishing the announcement or, if the procurement contains a 
state or official secret, of extending the invitation.  2. In the case stipulated in the Article 22(2) of this law, negotiations can be held with one bidder 
and a contract can be awarded on the basis of these negotiations. If a contract is signed under this 
paragraph, no contract or a dvance  security is required. 
 3. Unless otherwise stipulated in this Article, the provisions of the Section 4 of this law apply in 
the case stipulated under the paragraph 1 of this Article.  
4. The Republic of Armenia Government specifies  the particularities of the procedure for the 
competitive negotiations.  
Article 53: Single source procurement 
 
1. In cases stipulated in this law, a c ontract can be proposed to a single entity. 
 
2. In case of the single source procurement, any item in the bid submitted by the bidder can be 
negotiated.  If a contract is signed under this pa ragraph, a contract or advance security can not be 
required.  
3. The Republic of Armenia Government specifies  the particularities of the procedure for the 
single source procurement.   
SECTION 7 
 
APPEALING THE PROCUREMENT PROCESS 
  Article 54: Right to appeal  
1. Any person, including the Authorized Body, has the right to file a complaint against the 
actions (inaction) and decisions of the Client, the tender 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 agai nst the decisions of the Client and the tender 
committee to the Procurement Complaint 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 tender committee in court.  GPA/ACC/ARM/3 
Page 48  
 
4. Any person having an interest in concluding a particular transaction (contract) and who has 
been harmed by an infringement of the Client, the tender committee, the Procurement Complaint Review Board or the Authorized Body has th e right to sue for damages at the court. 
 5. The Authorized Body has the right to extrajudi cial appeal the decisions of the Client or the 
tender committee in the Procurement Complaint Revi ew Board as well as appeal the decisions of the 
Procurement Complaint Review Board in the court. 
 
Article 55: Procurement complaint review board  
1. The Prime Minister shall approve the list of  members of the Procurement Complaint Review 
Board (hereinafter referred to as the Board) upon presentation by the Authorized Body. All members 
of the Board must be Armenian citizens. The member s of the Board shall not be convicted for a crime 
linked to economic activities or against the state ser vice, except cases when su ch conviction has been 
lifted or nullified as stipulated by law. 
 
2. The members of the list of the Procurement Complaint Review Board shall review the appeals with due care, diligence and in an impartial way.  The Board and the member s of the Board, when 
implementing the competences stipulated in this la w, are independent from the participants of the 
procurement process, including the Clients, as well as from the state bodies and local self-
governments and officials. When reviewing a comp laint, they are neither representatives of any 
participant in the proceedings nor of the nominati ng organization and they ar e 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) Non-Governmental Organizations (Unions ) registered in the Republic of Armenia 
that have nominated candidates for the Board membership. 
 4. The individuals are appointed as members of the Board for a period of 5 years after they have successfully passed an examination on the Republic of Armenia legislation on procurement organized 
following the procedure specified by the Authorized  Body. The mandate of the Board member can be 
renewed for a period of up to 5 years in the same way as for the appointment to the Board. 
 5. The competences of a Board member can be  revoked by the Republic of Armenia Prime 
Minister's decree in the following cases:   1) Upon request of the Board member, 
 
 2) Limitation of legal capacity of the Board member,   3) Loss of civic rights by the Board member,  
 4) Renouncement of Armenian citizenship, 
  5) A legally binding court sentence upon the Board member for an intentional offence,   6) Death of the Board member, 
  GPA/ACC/ARM/3 
 Page 49 
 
 
 7) Undertaking practice as judge, prosecutor, associate judge or prosecutor,   8) A major infringement by the Board member of his duties. The major infringement shall mean in particular:  
  a) The performance of the Board member's functions in an impartial manner, 
 including one-sided protection of interests of participants in appeal  proceedings; or 
  b) Failure to submit a request to be excluded from the proceedings due to the 
 circumstances which render it impossible for the Board member to fulfill his 
 duties. 
  Removal from the list of arbiters shall be effected by the Prime Minister by means of an administrative decision.  
6. The Republic of Armenia government shall sp ecify the conditions for appointment to or 
removal from the Board. 
 
Article 56: Operation of the Board 
 
1. A commission of the Procurement Complaint Review Board (hereinafter referred to as the 
Commission) composed of three people is formed to review an individual procurement complaint 
received. For each individual case, the member s of the Commission are randomly selected by 
computer program from the list of Board members. The Center for Procurement Support and Expertise organizes the selection of the Commission members.  
2. The chairperson of the Commission must be a qualified lawyer or judge, having specialized in 
the area for at least 5 years. The members of th e Commission must have tertiary education and in 
practice for at least 3 years.  3. The Commission reviews the complaint and adopts a decision on behalf of the Board according to this law and other legal acts. The decisions 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 chairperson and the members of the Commission receive adequate allowances; the 
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. 
 
Article 57: 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 tendering procedure; GPA/ACC/ARM/3 
Page 50  
 
  4) The object of the dispute and the request of the applicant;   5) The factual and legal grounds of the complaint, the proofs; and  
 6) Other requisite information. 
 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 Art 9.  
3. If the complaint does not meet the requirements under this paragraph, the Center for 
Procurement Support and Expertise on behalf of the panel of the Board has to inform the applicant 
and give him or her a five-day period to correct his or her 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 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 after 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 procedure for the award of a public contract or the implementation of any decision 
taken by the Client or the tender committee; 
  2) Set aside individual decisions, including th e contract award decision within the standstill 
period of Art 9, taken by the Client or the tender 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; or 
  b) In case of infringement of Article 9 or Article 58 (3) if this infringement has 
 deprived the bidder concerned of the op portunity to institute a legal remedy 
 before the conclusion of the contract and if this infringement is combined 
 with the infringement of other pr ovisions of the Republic of Armenia 
 legislation on public procurement and if  this latter infringement has affected 
 the chances of the bidder concerned to get the contract. 
  4) Notwithstanding the provisions of para graph 3 of this Article, if the Commission 
considers, after examining all relevant aspects, that  overriding reasons of ge neral 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 ineff ectivness provided for in paragraph 6 (3) of this 
Article can not have retroactive effect, because the elimination of executed contractual obligations is  GPA/ACC/ARM/3 
 Page 51 
 
 
impossible, the Commission will apply, in addition, the sanction provided for in paragraph 6(4)(a) of 
this Article.   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 according to the Article 5 paragraph 2.  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 or official secrets, the announcement is sent to all 
potential bidders. 
 9. Any person, whose interests have suffered or can suffer due to actions served as the ground 
for lodging a complaint are 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 partic ipate in the review 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 u nknown - has not been disclosed - the amount of fee 
shall be one tenth of the procurement base unit.  Article 58: Suspension of  procurement procedure 
 
1. The application shall not automatically susp end the contract award procedure. The Board 
shall grant an interim measure required by an a pplicant 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 consequences 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 exceed 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 suspension 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.  
 
Article 59: Court appeal 
 
 The decision of the Board can be appealed in court. 
  GPA/ACC/ARM/3 
Page 52  
 
SECTION 8 
 
PROCUREMENT IN SPECIFIC AREAS 
  
Article 60: General peculiarities of procurement for public entities 
 
1. For procurement carried out by public entities in the Republic of Armenia: 
  1) Procurement related rela tions are regulated by procurement procedures adopted by 
those entities; 
  2) Procurement procedures, advertisements  of procurement processes (public offers), 
invitations, announcements on signed contract s 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 7 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 entities rendering 
services regarded as a natural monopoly they should not contradict also to additional requirements set 
out by the public services sector regulatory body en visaged by the Republic of Armenia legislation. 
 3. If the government or community has no participation in a public entity, the provisions of this law shall apply if the value of the contract is no less than twenty Procurement base units. 
 
Article 61: Specific exclusions in case of procurement for public entities 
 
1. The provisions of this law are not applicable in case when a public  entity intends to procure: 
  1) Products that will be resold or leased to third parties, provided that the entity 
concerned enjoys no special or exclusive right to se ll or to lease the subject of such contracts, and 
other entities are free to sale/sell or to lease sim ilar 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 the physical use of a network or of a geographical area within the 
Republic of Armenia.   3) Goods, services or works for the purpose to perform other activities than relevant activities. In the case when the contract is intende d to cover several activities among at least one is a 
relevant activity and if 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 entities not stipulated in this law, in cluding those cases when this law is inapplicable. 
 Article 62: Procurement for the Central Bank of the Republic of Armenia  
 In case of procurement for the Central 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;  GPA/ACC/ARM/3 
 Page 53 
 
 
  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.  Article 63: Procurement 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 9 
 
FINAL AND TRANSITIONAL PROVISIONS 
  Article 64: Effectiveness of law  
 This law comes into force on the thirtie th day after its official promulgation. 
 Article 65: Transitional provisions  
1. The provisions of this law do not apply to procurement contracts originated and not 
terminated prior to the effectiveness of this  law as well as to signed and ongoing procurement 
contracts; while the relations thereof are regulated by legal acts effective at the 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 this law shall come into force on January 1, 
2013. 
 
Article 66: Final provisions 
 
1. If a deadline specified in this  law coincides with a nonbusiness day, then the deadline is the 
next business day following that day. 
 
2. The Republic of Armenia shall specify the cases  of conflict of interests under this law, 
including for consulting services.  GPA/ACC/ARM/3 
Page 54  
 
3. In addition to publishing the tender announcemen ts envisaged by this law in the Bulletin, the 
Client shall also publish them in the printed medi a, while the Authorized Body shall disseminate 
(advertise) information on published announcem ents in the advertising mass media. 
  
PRESIDENT OF 
THE REPUBLIC OF ARMENIA S. SARGSYAN 
  GPA/ACC/ARM/3 
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ATTACHMENT 2* 
 
 
                                
        
    
SIGMA 
Support for Improvement in Governance and Management 
A joint initiative of the OECD and the European Union, prin cipally financed by the EU  
 
 
OPINION ON THE DRAFT ARMENIAN PUBLIC PROCUREMENT LAW** 
 
March 2010 
 
 
The development of an effective and credible public  procurement system is one of the fundamentals 
of the process for improvement the use of public money. 
 
Public procurement reform involves changes in the legislative framework, institutional restructuring, 
reforming the mentality behind the current syst em and financial efforts to be undertaken. 
 
Increasing the efforts to develop a modern legislati on in line with the best international practices and 
to ensure an appropriate implementation capacity , it becomes extremely important in the current 
period. Improving the legislative framework in the field of public procuremen t is important not only 
because of internal needs but also taking into account the commitments that Armenia assumed on 
international level in the context of nego tiations with World Trade Organization. 
 
A notable step in improving the legislative framework  is the development of the new draft law which 
aims to address many of the weaknesses previ ously reported by SIGMA or CPAR recommendations. 
 
Overall, the new draft law represents a significan t progress in the field of public procurement 
regulations. 
 
Several proposed solutions are directly inspired by th e relevant EU legislation in force in that area: 
 
• Directive  2004/18/EC of the European Parlia ment and of the Council of 31 March 2004 on 
the coordination of procedures for the award of public works contracts, public supply 
contracts and public service contracts, 
• Directive 2004/17/EC of the European Parliament and of the Council of 31 March 
2004 coordinating the procurement proce dures of entities operating in the water, 
energy, transport and postal services sectors, 
• Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 
amending Council Directives 89/665/EEC and 92/ 13/EEC with regard to improving the 
effectiveness of review procedures conc erning the award of public contracts, 
                                                      
* In English only. 
** This document has been produced with the financia l assistance of the Europ ean Union.  The views 
expressed herein can in no way be taken to reflect the official opinion of the European Union, and do not 
necessarily reflect the views of the OE CD and its Member countr ies or of the beneficiary countries participating 
in the Sigma Programme. GPA/ACC/ARM/3 
Page 56  
 
• Council Directive coordinating the laws, regulati ons and administrative provisions relating to 
the application of Community Rules on the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors (25 February 1992), 
• Council directive on the coordination of the la ws, regulations and administrative provisions 
relating to the application of review proce dures to the award of public supply and public 
works contracts (13 December 1989). 
 
There will be some room for further harmonizat ion to achieve the full level of compliance (for 
example regarding the procedures).  The most significant changes proposed are: 
 
Utilities Sector 
 
A correct and complete definition of the scope of public procurement rules for utilities sector is a 
crucial element in the law of any country. The new draft law reaches in a very good manner this 
objective.   
First, it made a clear distinction between, on one  hand, public enterprises engaged in specific 
activities in the public services and, on the other hand, private entities operating in that sector on the 
base of a special or exclusive right.  
 The definition of special and exclusive rights is accurate.  
 
The range of relevant activities - in areas of water, energy, transport and postal services - is similar to 
those established by Directive 2004/17/EEC and also th e exclusions provided for in this field follows 
the same model.  
 
Overall, it is reported as a great success that the pr evious problems identified on the utilities sector are 
practically resolved in the new draft law, ensu ring a common approach with EU law and practice. 
 
Participation Rules   
Some major adjustments have been made in the ne w draft law, one of the most important being the 
introduction of the exclusion system for persons w ho have been convicted by final judgment for 
participation in a criminal organization, for corr uption, for fraud, for money laundering and by final 
decision for anti competitive behaviour. 
 
Blacklisting is also a sensitive issue which have to be handled carefully so as not to create unfair 
restrictions for bidders. The draft law proposed a sy stem where all the information on irregularities to 
professional ethics shall be reported to the Authorized Body by the Clients. The Authorized Body 
may initiate the procedure for inclusion in the black list at the Procurement Complaint Review Board. 
Only the Board shall have the power to decide whet her or not a bidder has to be included in the black 
list and, in this case also define the period for inclusion. 
 
The system will protect the economic operators agains t discretionary decisions of Clients, diminishing 
the risk that the inclusion of the bidders in  the black list is used in an abusive way.  
 
E-procurement  
The new legislation is to integrate into a unitary  vision both the paper base d system of procurement 
and e-tendering system. 
  GPA/ACC/ARM/3 
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The general rules regarding the tools to be used  for communication by electronic means and devices 
for the electronic transmission and receipt of bids are now well outlined in the text of the draft law. 
In the context of future e-purchasing developments, electronic auctions are an important element that 
gives the possibility to reduce the bids price in cond itions of transparency and equal treatment for all 
bidders. The draft law lays down certain genera l rules which intend to avoid any discrepancies 
between the electronic system/systems that will be  implemented and intern ational best practices. 
 
Single-source Method  
The cases where single source method can be applied ha ve been revised to some extent, in terms of 
range of situations where this is possible as well as in terms of wording (which  is now more accurate 
at least in case of “emergency situations). 
 
Institutional Building 
 
Two important institutions are established according to  the draft law: Centre for Procurement Support 
and Expertize, who will assume some clearly defined competences from the Authorized Body and the Procurement Complaint Review Board.  
The clear distinction of the competences of the Authorized Body and the Centre for Procurement 
Support and Expertize marks a new positive approach in  the procurement system in Armenia, namely 
towards decentralization and thus the allo cation of clear responsibilities for Clients. 
 
The two institutions will have mainly a regulatory role and will also provide for methodological and 
technical support for Clients, their direct involve ment in procurement procedures organized by the 
latter being minimal. 
 
Particular attention should be paid to avoid over laps between the activities of Authorized Body and 
Center for Procurement Support and Expertise. 
 
Review System  
Unlike the current situation, the Authorized Bo dy will no longer be involved in settling disputes, 
which is a big step forward to an efficient, effectiv e, transparent and fair remedies system. In terms of 
institution building, the draft law laid the f oundation for a new specialized review body – the 
Procurement Complaint Review Board, which will be competent for settling procurement disputes at 
state and local levels. The centralized Board w ill guarantee for high professionality and harmonized 
decisions on procurement cases throughout Armenia. The Center for Procurement Support and 
Expertise acts as secretariat for the Board. 
 
To ensure full independence of the Board, it will consist of a list of independent experts who will 
decide individual cases in three-person panels. The sel ection of the individual panels will be done by 
the Center for Procurement Support and Expertise based on a random system. Experts will be 
nominated by both public and private organiza tions, but are independent from the nominating 
organizations in their decisions. Existing associati ons for professionals or NGOs shall be invited to 
make their proposals for this list. The new draft law contains a number of  general conditions for 
candidates for the inclusion into the list of independe nt experts. All members of the list need to pass 
an examination in public procurement.  
 
The system will provide a fast and effective way of  resolving disputes and its implementation will be 
a considerable progress in this field. The success of  the system is strongly conditioned by the quality 
of selection that will be made in order to have  an appropriate list of independent experts. 
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Standstill period 
 
The introduction of a standstill period is also a measure that guarantees a fair and transparent 
remedies system, because it will give the bidders th e last opportunity to challenge illegal decisions of 
Clients before the conclusion of the contract. Th e Board will also have the power to suspend the 
procedure for awarding the contract or the impl ementation of any decision taken by the Client. 
Conclusion (signing) of the contract will be in  any case postponed until the settlement of the case by 
the Board. 
 
Last but not least, another positive element in the new draft law are the rules for declaring the contract 
ineffective if the Client has unlawfully awarded it without prior publication of a contract notice or 
without complying with the standstill period. 
 
Strengthening the implementation capacity of all the Clients – both from the central and local levels - 
is the second objective that should be considered  in parallel with improving the legal framework. 
From this point of view, in the near future, attention should focus on: 
 
- Development of secondary legislation; 
- Appropriate allocation of human resources in the procurement departments of the 
contracting authorities; 
- Easy access to methodological advice; 
- Use of training tools and reference materi als (guides, brochures, standardized tender 
documents); 
- Participation in training programs for staff involved in procurement activities. 
  
 
 
Marian Lemke 
Senior Adviser  
SIGMA   
 
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