RESTRICTED  WORLD TRADE  
ORGANIZATION  GPA/ACC/ARM/11 
8 November 2010 
 
 (10-5983) 
Committee on Government Procurement Original:   English 
  
 
 
ACCESSION TO THE AGREEMENT ON GOVERNMENT PROCUREMENT 
OF THE REPUBLIC OF ARMENIA 
 
Revised Draft Decision, Final Offer and Revised Draft Law on Procurement
 
   The following communication, dated 5 November 2010, is being circulated at the request of the Delegation of the Republic of Armenia. 
 
_______________ 
 
  For the information of delegations, the Delega tion of the Republic of Armenia advises that the 
attached revised draft Law on Procurement responds to all of the comments that have been received 
on the previous version circulated 30 September 2010 (GPA/ACC/ARM/8). 
  Armenia has also advised that "According to Article 6 of the Constitution of the Republic of 
Armenia, international treaties are a constituent part of the legal syst em of Armenia.  If a ratified 
international treaty stipulates norms other than those stipulated in the laws, the norms of the treaty 
shall prevail.  As the Agreement on Government Pr ocurement is an international Agreement to be 
ratified by Armenia, it will form a constituent part of  the legal system of Armenia.  In the event that 
the Agreement stipulates norms other than those prov ided in the laws, particularly the 'Procurement 
Law' of Armenia, the norms of the Agreement shall prevail".  This additional safeguard has also been 
reflected in the preamble to the draft decision which is attached.  
 A separate communication from the Chairman regarding this matter is forthcoming. 
 
_______________ 
 GPA/ACC/ARM/11 
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 GPA/...  
ACCESSION TO THE AGREEMENT ON GOVERNMENT PROCUREMENT 
OF THE REPUBLIC OF ARMENIA 
 
Decision of the Committee of [...]
 
  The Committee on Government Procurement, 
 
 Having regard to Article XXIV:2 of the Agreement on Government Procurement; 
  Considering the application for accession to the Agreement on Government Procurement by 
Armenia contained in document  GPA/ACC/ARM/1  of 4 September 2009, and the consultations held 
with the Parties to the Agreement on Gove rnment Procurement in pursuance thereof; 
  Recalling  the requirement under Article XXIV:5( a) of the Agreement on Government 
Procurement that each government accepting or accedi ng to the Agreement shall ensure, not later than 
the date of entry into force of the Agreement fo r it, the conformity of its laws, regulations and 
administrative procedures, and the rules, procedures and practices applied by the entities contained in 
its lists annexed hereto, with th e provisions of the Agreement; 
  Considering  the information on Armenia's planned nati onal procurement legislation set out in 
documents GPA/ACC/ARM/3 of 20 April 2010, GPA/ACC/ARM/6 of 6 July 2010 (Armenia's Replies to Comments and Questions Received fro m Canada and the US) and GPA/ACC/ARM/8 of 
30 September 2010, in addition to Armenia's expressed intention to adopt this legislation and bring it 
into effect. 
 
 Noting also that according to Article 6 of th e Constitution of the Republic of Armenia, 
international treaties are a constituent part of the lega l system of Armenia.  If a ratified international 
treaty stipulates norms other than those stipulated in th e laws, the norms of the treaty shall prevail.  As 
the Agreement on Government Procur ement is an international Agreem ent to be ratified by Armenia, 
it will form a constituent part of the legal system of Armenia.  In the event that the Agreement 
stipulates norms other than those provided in th e laws, particularly the "Procurement Law" of 
Armenia, the norms of the Agreement shall prevail.  
 Decides  as follows: 
 1. In accordance with the provisions of Artic le XXIV:2 of the Agreement on Government 
Procurement, Armenia may accede to the Agreement on the terms attached to the present decision [in 
Attachment A] and provided that, before Armenia deposits its instrument of accession: 
 
(a) Armenia adopts and brings into force legislation in conformity with the 
provisions of the Agreement on Govern ment Procurement as required by 
Article XXIV:5(a) of the Agreement; 
 
(b) following the adoption of the above-mentione d legislation, Armenia submits, for 
review by the Committee on Government Procurement, the said legislation 
together with information regarding its entry into force;  and 
 
(c) the Committee, having reviewed the le gislation and related information 
submitted by Armenia, confirms that Ar menia has met the terms and conditions 
for accession and, therefore, may deposit its instrument of accession.  GPA/ACC/ARM/11 
 Page 3 
 
 
  2. The Agreement on Government Procurement shall enter into force for Armenia on the 
thirtieth day following the deposit of its instrument of accession with the Director-General, reproducing the terms attached to this decision [i n Attachment A] and confirming that Armenia has 
adopted and brought into force the legi slation referred to in paragraph 1. 
 
3. Armenia may deposit its instrument of accession within a period of [three] months of the date 
on which the Committee has confirmed that Armenia has met the terms and conditions for accession as referred to in paragraph 1(c), or by such later date as may be decided by the Committee. 
 4. Upon Armenia's accession, the terms attached to its instrument of accession shall become an 
integral part of the Agreement on Government Procurement as the Appendices, Annexes and notes 
with regard to Armenia.  
_______________ 
  
Note by the Secretariat
:  Attachment A to this document show s the final offer of the Republic of 
Armenia.  Attachment B shows the draft procurement law of the Republic of Armenia, to be discussed in Armenia's Parliament in the coming weeks.
1 
 
                                                      
1 Attachments A and B are in English only. GPA/ACC/ARM/11 
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ATTACHMENT A 
  
FINAL OFFER 
 
APPENDIX I 
 
REPUBLIC OF ARMENIA 
 
(Authentic in the English Language) 
  
ANNEX 1 
 
Central Authorities which Procure in Accor dance with the Procedures of this Agreement 
 
 Thresholds : 
 
Goods         SDR 130,000 
 Services (specified in Annex 4)      SDR 130,000 
 Construction services (specified in Annex 5)    SDR 5,000,000 
 
 List of Entities : 
 1. Administration of the President of the Republic of Armenia (RA) 
2. Administration of the National Assembly of the RA 
3. Administration of the Government of the RA 
4. Administration of the Constitutional Court of RA 
5. Chamber of Control of the RA 
6. Judicial Department of  the RA 
7. Office of the Public Prosecutor of the RA 
8. Special Investigation Service of the RA 
9. Office of the Human Rights Defender of the RA 
10. Central Bank of the RA (Note 2)  
11. Ministry of Agriculture of the RA 
12. Ministry of Defence of the RA (Note 3) 
13. Ministry of Diaspora of the RA 
14. Ministry of Economy of the RA 
15. Ministry of Education and Science of the RA 
16. Ministry of Energy and Natural Resources of the RA 
17. Ministry of Finance of the RA 
18. Ministry of Foreign Affairs of the RA 
19. Ministry of Healthcare of the RA 
20. Ministry of Justice of the RA 
21. Ministry of Labour and Social Affairs of the RA 
22. Ministry of Nature Protection of the RA 
23. Ministry of Sport  and Youth Affairs of the RA 
24. 
Ministry of Territorial Administration of the RA 
25. Ministry of Transport and Communication of the RA 
26. Ministry of Urban Development of the RA  GPA/ACC/ARM/11 
 Page 5 
 
 
  27. Ministry of Culture of the RA 
28. Ministry of Emergency Situation of the RA 
29. National Security Service of the RA (Note 3) 
30. State Security Service of the RA (Note 3) 
31. State Revenue Committee of the RA 
32. State Committee of the Real Estate Cadastre of the RA 
33. State Nuclear Safety Regulatory Committee by the Government of the RA 
34. State Property Management Department of the RA 
35. General Department of Aviation of the RA 
36. Police of the RA (Note 3) 
37. Armenian Rescue Service 
38. State Water Committee 
39. State Science Committee 
40. Central Electoral Commission of the RA 
41. Public Services Regulatory Commission of the RA 
42. Social Insurance Commission of the RA   
43. State Commission for the Protection of Economic Competition of the RA 
44. Civil Service Council of the RA 
45. National Statistical Service of the RA 
46. National Commission on TV and Radio of RA 
47. Council of the Public TV and Radio of the RA 
48. Marzpetaran of Aragatsotn 
49. Marzpetaran of Ararat 
50. Marzpetaran of Armavir 
51. Marzpetaran of Gegharquniq 
52. Marzpetaran of Lory 
53. Marzpetaran of Kotayq 
54. Marzpetaran of Shirak 
55. Marzpetaran of Syuniq 
56. Marzpetaran of Vayots Dzor 
57. Marzpetaran of Tavush 
 
 
Notes to Annex 1 
 
1. This list refers to all central government entities and subordinated organizations covered by 
Law on Procurement of the RA. 
 
2. Central Bank of the RA:  The Agreement do es not apply to the procurement or acquisition by 
the Central Bank of the Republic of Armenia related to the sale, redemption and distribution of public 
debt, including loans and governme nt bonds, notes and other securities. 
 3. Ministry of Defence of the RA, National Secur ity Service of the RA, State Security Service of 
the RA and Police of the RA:  For these entities, th e Agreement only covers the procurement of the 
following categories, subject to Republic of Armeni a determinations under paragraph 1 of Article III: 
 FSC 22 Railway Equipment  23 Motor Vehicles, Tr ailers, and Cycles (except buses in 2310) 
 24 Tractors 
 25 Vehicular Equipment Components  26 Tyres and Tubes  29 Engine Accessories  30 Mechanical Power Transmission Equipment GPA/ACC/ARM/11 
Page 6  
 
 32 Woodworking Machinery and Equipment  34 Metalworking Machinery  35 Service and Trade Equipment  36 Special Industry Machinery  37 Agricultural Machinery and Equipment 
 38 Construction, Mining, Excavating,  and Highway Maintenance Equipment 
 39 Materials Handling Equipment  40 Rope, Cable, Chain and Fittings  41 Refrigeration and Air Conditioning Equipment  42 Fire Fighting, Rescue and Safety Equipment 
 43 Pumps and Compressors 
 44 Furnace, Steam Plant, Drying Equipment and Nuclear Reactors 
 45 Plumbing, Heating and Sanitation Equipment  46 Water Purification and Se wage Treatment Equipment 
 47 Pipe, Tubing, Hose and Fittings 
 48 Valves 
 49 Maintenance and Repair Shop Equipment  53 Hardware and Abrasives  54 Prefabricated Structures and Scaffolding  55 Lumber, Millwork, Plywood and Veneer  56 Construction and Building Materials 
 61 Electric Wire, and Power and Distribution Equipment 
 62 Lighting Fixtures and Lamps  63 Alarm and Signal Systems  65 Medical, Dental , and Veterinary E quipment and Supplies 
 66 Instruments and Laboratory Equipment 
 67 Photographic Equipment 
 68 Chemicals and Chemical Products  69 Training Aids and Devices  70 General Purpose ADPE, Software , Supplies and Support Equipment 
 71 Furniture  72 Household and Commercial  Furnishings and Appliances 
 73 Food Preparation and Serving Equipment 
 74 Office Machines, Visible Record Equipment and ADP Equipment  75 Office Supplies and Devices  76 Books, Maps and Other Publications  77 Musical Instruments, Phonographs, and Home Type Radios 
 78 Recreational and Athletic Equipment  
 79 Cleaning Equipment and Supplies  80 Brushes, Paints, Sealers and Adhesives 
 81 Containers, Packaging and Packing Supplies  85 Toiletries  87 Agricultural Supplies 
 88 Live Animals 
 91 Fuels, Lubricants, Oils and Waxes  93 Non-metallic Fabr icated Materials 
 94 Non-metallic Crude Materials 
 96 Ores, Minerals and their Primary Products 
 99 Miscellaneous 
 4. The conditions specified in the Ge neral Notes apply to this Annex.  GPA/ACC/ARM/11 
 Page 7 
 
 
  ANNEX 2 
 
Sub-Central Authorities which Procure in Accordance with 
the Procedures of this Agreement 
  
Thresholds : 
 Goods         SDR 200,000  
 
Services (specified in Annex 4)      SDR 200,000 
 Construction services (specified in Annex 5)    SDR 5,000,000 
  
List of Entities : 
 1. Following local authorities as defined by RA Law "On Administrative-Territorial Division" No. N-062-I of 7 November 1995:  
- Municipality of Yerevan 
- Municipality of Ashtarak, 
- Municipality of Aparan 
- Municipality of Talin 
- Municipality of Artashat 
- Municipality of Ararat 
- Municipality of Masis 
- Municipality of Vedi 
- Municipality of Armavir 
- Municipality of Vagharshapat 
- Municipality of Mecamor 
- Municipality of Gavar 
- Municipality of Chambarak 
- Municipality of Martuni 
- Municipality of Sevan 
- Municipality of Vardenis 
- Municipality of Vanadzor 
- Municipality of Alaverdi 
- Municipality of Akhtala 
- Municipality of Tumanyan 
- Municipality of Spitak 
- Municipality of Stepanavan 
- Municipality of Tashir 
- Municipality of Hrazdan 
- Municipality of Abovyan 
- Municipality of Byureghavan 
- Municipality of Eghvard 
- Municipality of Tsakhkadzor 
- Municipality of Nor Hachn 
- Municipality of Charentsavan 
- Municipality of Gyumri 
- Municipality of Artik 
- Municipality of Maralik GPA/ACC/ARM/11 
Page 8  
 
- Municipality of Kapan 
- Municipality of Agarak 
- Municipality of Goris 
- Municipality of Dastakert 
- Municipality of Megri 
- Municipality of Sisian 
- Municipality of Qajaran 
- Municipality of Eghegnadzor 
- Municipality of Jermuk 
- Municipality of Vayq 
- Municipality of Ijevan 
- Municipality of Berd 
- Municipality of Dilijan 
- Municipality of Noyemberyan 
  Note to Annex 2  
 
 The conditions specified in the Ge neral Notes apply to this Annex. 
  GPA/ACC/ARM/11 
 Page 9 
 
 
   
ANNEX 3 
 
All Other Entities which Procure in Accordance with 
the Procedures of this Agreement 
 
 Thresholds : 
 Goods         SDR 400,000 
 
Services (specified in Annex 4)      SDR 400,000 
 Construction services (specified in Annex 5)    SDR 5,000,000 
 
 
 All legal persons (authorities, establishments  and foundations) governed by public law, 
particularly:   1. State or community non-commercial (non-profit) organizations.  
 2. Commercial organizations with over fi fty percent of government or community 
shareholding. 
  3. Public services, including utilities sector companies, whose procurement is covered 
by Law on Procurement. 
 
 
Notes to Annex 3  
 
1. This list of legal persons governed by public  law shall be published in  Procurement official 
electronic bulletin:  www.procurement.am
 
 2. The conditions specified in the Ge neral Notes apply to this Annex. 
 GPA/ACC/ARM/11 
Page 10  
 
 
ANNEX 4 
 
Services 
  
 Universal List of Services is including all services as contained in document MTN.GNS/W/120.  
 
Note to Annex 4  
 
 The conditions specified in the Ge neral Notes apply to this Annex.  GPA/ACC/ARM/11 
 Page 11 
 
 
   
ANNEX 5 
 
Construction Services 
  
 A construction services contract is a contract which has as its objective the realization by whatever means of a civil or bu ilding works, in the sense of Division 51 of the Central Product 
Classification.  
 
Threshold : 
  SDR 5,000,000 for Annexes 1, 2 and 3.  
 
List of construction services offered : 
  All services listed under Division 51.  
 
Note to Annex 5  
 
 The conditions specified in the Ge neral Notes apply to this Annex. GPA/ACC/ARM/11 
Page 12  
 
 
GENERAL NOTES 
  1. Armenia will not extend the benefits of this Agreement to any contract: 
 
 (a) awarded under an international agreemen t and intended for the joint implementation 
or exploitation of a project by the signatory States; 
  (b) awarded under an international agreemen t relating to the stationing of troops; 
 
 (c) funded wholly or in part by or aw arded under the particular procedure of an 
international organization, where the applicab le procedure would be inconsistent with 
the Agreement. 
 
2. This Agreement shall not apply to procurements  of agriculture products made in furtherance 
of agriculture support programme and human feeding programmes. 
 3. This Agreement shall not apply to goods a nd services procured with a view to commercial 
sale or resale, or for use in the production of goods  or provision of services for commercial sale or 
resale, provided that the contracting authority enj oys no special or exclusive right to sell and other 
entities are free to sell it under the same conditions as the contracting entity. 
 4. This Agreement shall not apply to the ac quisition of land, existing buildings or other 
immoveable property or concerning rights thereon.
 
 
  GPA/ACC/ARM/11 
 Page 13 
 
 
   
APPENDIX II 
 
PUBLICATIONS UTILIZED BY PARTIES FOR THE PUBLICATION 
OF NOTICES OF INTENDED PROCUREMENT - PARAGRAPH 1 
OF ARTICLE IX AND OF POST-AWARD NOTICES –  
PARAGRAPH 1 OF ARTICLE XVIII 
  
Procurement official electronic bulletin: 
www.procurement.am
 
  
APPENDIX III 
 
PUBLICATIONS UTILIZED BY PARTIES FOR THE PUBLICATION ANNUALLY OF 
INFORMATION ON PERMANENT LISTS OF QU ALIFIED SUPPLIERS IN THE CASE OF 
SELECTIVE TENDERING PROCEDURES - PARAGRAPH 9 OF ARTICLE IX 
  
Procurement official electronic bulletin: 
www.procurement.am
 
  
APPENDIX IV 
 
PUBLICATIONS UTILIZED BY PARTIES FOR THE PUBLICATION OF LAWS, 
REGULATIONS, JUDICIAL DECISIONS, ADMINISTRATIVE RULINGS OF GENERAL 
APPLICATION AND ANY PROCEDURE REGARDING GOVERNMENT PROCUREMENT 
GOVERNED BY THIS AGREEMENT - PARAGRAPH 1 OF ARTICLE XIX 
  
Procurement official electronic bulletin: 
www.procurement.am
 
 GPA/ACC/ARM/11 
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ATTACHMENT B 
 
DRAFT LAW ON PROCUREMENT 
 
REPUBLIC OF ARMENIA 
 
 
SECTION 1:  GENERAL PROVISIONS 
 
1. Article 1:  Subject regulated by the law 
 
This law regulates relations pertaining to the procurement of goods, works and services by 
clients, and establishes principal rights and responsibilities of parties thereto. 
 
2. Article 2:  Main terms used in the law 
 
The following main terms are used in this law: 
(1) Client: 
 
(a) State administration bodies and local self-governments, state and 
community agencies envisag ed in the Republic of Armenia Constitution 
and laws; 
 
(b) The Republic of Armenia Central Bank; 
 
(c) State or community non-commercial (non-profit) organizations; 
 
(d) Entities with over fifty percent of government or community shareholding; 
 
(e) Associations (unions) formed by the state or community or state or 
community non-commercial (non-profit) organizations or entities with over 
fifty percent of government or community shareholding; 
 
(f) Legal entities recipient of funds donated by the gover nment or community 
or the Republic of Armenia Central Bank or state or community non-commercial (non-profit) organizations or entities with over fifty percent of 
government or community shareholding, when they carry out procurement 
at the cost of these funds; 
 
(g) Public undertakings.  
 
(2) Public undertakings: 
 
(a) Physical or legal entities operating  in the regulated public services sector 
and included in the list approved by the Republic of Armenia Public 
Services Regulatory Commission; 
 
(b) Other entities operating in the public services sector and carrying out one or 
more of the relevant activities stipulated  by this Article, based on a special 
or exclusive right, if the procurement is conducted for the purpose of exercising such activities.   GPA/ACC/ARM/11 
 Page 15 
 
 
  (c) Entities over which the government or community or a state or a 
community non-commercial (non-profit) organization or an entity with over fifty percent of government or community shareholding has a dominant influence.  The presumption of exer ting the dominant influence is also 
applied to all situations when the gov ernment or community or the state or 
community non-commercial (non-profit) organization or the entity with 
over fifty percent of government or community shareholding can appoint more than half of the members of the entity’s administrative, management or supervisory body. 
 
(3) Procurement - Purchase of material and no n-material assets (values) - all types of 
goods, works and services - reimbursed by the Client. For the purposes of this law: 
 
(a) Leasing is also a purchase of service; 
 
(b) The following is also procurement: 
 
(i) Purchase of goods, works and se rvices by legal entities from the 
funds donated to such entities by the Client; 
 
(ii) Purchase of goods, work s and services by barter; 
 
(iii) Public-private partnership tran sactions, including asset management 
and concession transactions. 
 
(4) Contract - a written transaction concluded for procurement purposes; 
 
(5) Framework agreement – a preliminary contract signed fo r the purposes of 
concluding a contract;  
(6) Bidder - an entity pa rticipating in procurement processes for the purposes of 
concluding a contract (framework  agreement) with the Client; 
 
(7) Selected bidder - bidder(s) offered a cont ract (framework agreement) by the Client; 
 
(8) Invitation - terms offered to the bidd er for the purposes of contract (framework 
agreement) signing; 
 
(9) Bid - an offer submitted by th e bidder based on the invitation; 
 
(10) Bid security - in cases stipulated in this  law, a guarantee securing implementation 
of the obligations assumed in the bid by the bidder;   
(11) Contract performance security - in cases st ipulated by this law,  a guarantee securing 
implementation of the obligations being assumed u nder the contract (framework agreement) by the 
selected bidder;  
(12) Electronic auction - when carrying ou t the procurement, repetitive process 
involving electronic devices for presentation of new prices, revised downwards, and/or new non-
price proposals, which occurs afte r 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); GPA/ACC/ARM/11 
Page 16  
 
(13) Electronic means - the use of electr onic equipment, including software and 
hardware for the processing and st orage of data, which is transmitted, conveyed and received by 
wire, radio, optical means or by other electromagnetic means; 
 
(14) Authorized Body - a state body of th e Republic of Armenia Executive responsible 
for the development and implementation of the Republic of Armenia Government policy in the area 
of public finance management;  
(15) The Center for Procurement Support - a legal entity implementing competences 
stipulated by this law; 
 
(16) Bulletin - the Electronic Procurement Bulletin published by the Authorized Body; 
 
(17) Special or exclusive right - the right th at results from any form of authorization 
granted by a competent authority by the way of any legislative, regulatory or administrative 
provision, having as effect  to reserve the right to exercise certain  activities, includin g in the field of 
public services, only to one or to a limited numbe r of entities, and which substantially limits the 
ability of other entities to carry out such activities; 
 
(18) Subject of procurement - any go ods, works or services being purchased; 
 
(19) Description of procurement subject - technical sp ecifications of, and procurement 
and payment terms and conditions for the subject of procurement; 
 
(20) Consulting services - ser vices, which render non-materi al assets (values) free from 
physical substance; 
 
(21) Consultant - an entity, which par ticipates in the procurement process for the 
purposes of signing a consulting servi ces' contract wi th the Client; 
 
(22) Selected consultant - a consultant(s) o ffered a consulting services' contract by the 
Client; 
 
(23) Procurement base unit - an amount equal to one million Armenian Drams; 
 
(24) Relevant activities - fo llowing activities in the fi eld of public services to the 
procurement under which this law shall apply. They include: 
 
(a) Generation of electricity and ther mal power (including their combined-
cycle cogeneration),  tr ansport and distribution of electricity, heat and 
natural gas, provision of services of th e power and natural gas sector system 
operator, construction of new electricity and heat generation capacities or rehabilitation of existing capacities, construction of natural gas, heat or 
electricity transport or distribution networks as well as provision of energy 
market services; 
 
(b) Supply of drinking, irrigation and industrial water as well as wastewater 
and water treatment services; 
 
(c) Operation of public electronic ne twork in the field of electronic 
communication; 
  GPA/ACC/ARM/11 
 Page 17 
 
 
  (d) Postal services, railway transpor t services and services for mandatory 
technical inspection of motor vehicles  subject to tariff regulation by the 
Republic of Armenia Public Se rvices Regulatory Commission; 
 
(e) The provision or operation of netw orks intended (existing) to provide 
public services in the field of transport. A network for providing transport 
services is considered to exist, in th e case when the operation conditions, 
including the condition on the routs to  be served, the capacity to be made 
available or the frequency of the service are laid down by a competent 
government authority; 
 
(f) Exploitation of a geographical area: 
 
(i) for the purpose of exploring for or extracting oil, gas, coal or other 
solid fuels; 
 
(ii) for the purpose of the provision of airports or other terminal 
facilities to carriers by air or inland waterway. 
 
(g) Other activities specif ied by the Republic of Armenia for which the 
Republic of Armenia government can set out the conditions and 
particularities for application of this law. 
 
(25) Procurement process - an entirety of actions aimed at execution of procedures, 
rights and responsibilities pertaining to carrying out procurement as stipulated by the Republic of Armenia legislation on procurement. 
 
3. Article 3:  Purpose and scope of the law  
 
1. The purpose of this law is to ensure value-for-money in the procurement process, namely: 
 
(1) Purchase of goods,  works and services adequate to the needs of and requisite to 
carry out the powers delegated to the Client;  and 
  (2) Exchange of funds allocated for procurement for adequate goods, works and services.  
 
2. For the purposes of achieving th e objective set out  in the paragraph 1 of this Article, the 
procurement process shall be based  on the following principles: 
 
(a) Efficiency, effectiveness and economy of procurement; 
 
(b) Administration of procurement process based on unified rules and 
principles of competition, transparen cy, openness and non-discrimination; 
 
(c) Expansion of bidders' circle and promotion of competition among them for 
the purposes of contract signing; 
 
(d) Prevalence of equal right for every pe rson to participate in the procurement 
process regardless of being a foreign indi vidual, entity or a stateless person; 
 GPA/ACC/ARM/11 
Page 18  
 
3. The scope of this law shall cover the procurement carried out in the Republic of Armenia. The Republic of Armenia Government establishes the procedure for procurement outside of the Republic of Armenia.  4. The scope of this law shall no t cover the following transactions: 
 
(1) Procurement of arbitration (including mediation) services; 
 
(2) Labour contracts; 
 
(3) Procurement of services from entities envisa ged in the orders issued by officials 
carrying out criminal, administra tive or judicial proceedings, in cases stipulated by law; 
 
(4) Purchase of shares in authorized capital of legal entities; 
 
(5) Acquisition of securities and transactions related to trust management of securities. 
 
4. Article 4:  The Republic of Ar menia legislation on procurement 
 
1. The Republic of Armenia legislation on procurement is comprised of the Republic of 
Armenia Civil Code, this law and other legal acts. 
 
2. In the event if an international agreement sets out provisions other than this law, the 
provisions of the international agreement prevail.  3. The Republic of Armenia Government and the Authorized Body adopt other legal acts on 
procurement to ensure the accomplishment of th e purpose and requirements of this law. 
 4. Other legal acts on procurement are also published in the Bulletin.  
5. Article 5:  Eligibility to participate in  procurement process and qualification criteria 
 
1. Each person has equal right to participate in the procuremen t regardless of being a foreign 
individual, entity or a stateless person.  2. Except cases of procurement carried out under th e procedure stipulated in the Article 20 (5) 
of this law, the following persons shall not have the right to participate in the procurement: 
 
(1) Have been ruled insolvent by court; 
 
(2) Have outstanding arrears against the Repu blic of Armenia tax and mandatory social 
insurance payments;  or  
(3) Have a representative of the executive body, who – during the three-year period 
preceding the bid submission - has been convicted for offenses against econo mic activities or state 
service, except cases when such conviction has be en 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 bi dder is included in this list, if during the year preceding the bid 
submission:  
(a) Has repeatedly breached an obliga tion assumed under a contract or a 
procurement process leading to a unilate ral termination of the contract by  GPA/ACC/ARM/11 
 Page 19 
 
 
  the Client or a suspension of that bi dder from further pa rticipation in the 
procurement process; 
 
(b) Has submitted falsified data under the procurement process; 
 
(c) As a selected bidder, has repeatedly  refused to sign the awarded contract; 
 
(d) In a manner prescribed by law, the bi dder has been convicted by a decision 
for anti-competitive behaviour during procurement process, such as collusion or abuse of dominant position. 
 
(5) Within three years preceding the bid subm ission, the bidder or a representative of 
its executive body has been conv icted for offenses against economic activities or state service, 
except cases when such conviction  has been lifted or nullif ied as stipulated by law. 
 
3. The Authorized Body publishes the list of  bidders that have violated the rules of 
procurement business ethics.  Th e Authorized Body formally initiates a procedure at the 
Procurement Complaint Review Bo ard based on the information a bout a bidder who has breached 
the rules of procurement business ethics.  After he aring the opinion of the bidder concerned, the 
Review Board decides if the bidder has to be included in the list stipulated in this Article.  An entity 
can be enlisted for a period from 6 months to 3 years depending on the graveness of the breach of 
the rules of procurement business ethics. 
 4. The bidder must satisfy the qualification criter ia set out in the invita tion.  The bidder shall 
have the following items required to fulfil contractual obligations:  
(a) Eligibility; 
 
(b) Compliance of professional activity to activities stipulated in the contract; 
 
(c) Professional experience; 
 
(d) Technical resources; 
 
(e) Financial resources; 
 
(f) Labour resources. 
 
5. No other criteria related to bidder's elig ibility and qualification for participation in the 
procurement can be established, if such criteria are:  
(a) Not stipulated in this Article; 
 
(b) Discriminatory and limit the comp etition by unduly complicating or 
simplifying potential participat ion in the procurement process; 
 
(c) Inadequate, i.e., not directly re quired for execution of contractual 
obligations. 
 
6. The procedure and criteria for evaluating th e bidder's eligibility and qualification to 
participate in the given procurement as well as the requirements for documents (information) 
required thereto are set out in the invitation and th ey shall be based on general conditions set out by 
the Republic of Armenia government. GPA/ACC/ARM/11 
Page 20  
 
 
6. Article 6:  Equal participation in procurement 
 
1. Any entity, regardless of being a foreign natural person or a legal entity or a stateless 
person, has equal right for participation in the procurement process. 
 
2. Participation of any entity in the procurem ent can be restricted only by the Republic of 
Armenia Government decision based on the national security or defen se interests of the Republic of 
Armenia.  
3. If the paragraph 2 of this Article is inapplic able, then the procurement or pre-qualification 
announcement includes a notice that any person re gardless of being a foreign natural person or a 
legal entity or a stateless person can submit the bi d; the notice is not subject to changes. If the 
paragraph 2 of this Article is applied, then the procurement or pre-qu alification announcement 
includes a notice about that. 
 
4. In the event if the Republic of Armenia le gislation requires special permit (license) or 
fulfilment of specific criteria in order to carry out contractual obligations but the legislation of the foreign country of residency of a bidder does not have such requirements, then, in cases specified 
by the Republic of Armenia Government, such bidder  has the right to conclude the contract without 
submitting a special permit (license ) or without satisfying the requirement for fulfilment of specific 
criteria. 
 5. Concurrent participation of entities founded by  the same person(s) or entities with over fifty 
percent of shares owned by the same person(s) in the same procurement process is prohibited with 
the exception of: 
 
(1) Entities founded by the Government or communities;  (2) Cases of participation stipulated under Article 27(6) of this law. 
 
6. Legal entities with government or community shareholding participate in the procurement 
having equal rights with other bidders and government or community shareholding does not lead to 
a preferential treatment or to setting out and applying any other favourable conditions for such entities.  
7. Article 7:  Documents, their validity and e-procurement 
 1. Recording and maintaining of procurement re lated information must be ensured through the 
development of relevant documents, including electronic documents.  2. If the invitation sets out a cond ition for the bidder to submit information, it also contains the 
validity terms for such information.  In the fra mework of functions set out in this law, the 
communication can be carried out  electronically, including: 
 
(1) Electronic provision of invitation;  (2) Electronic submission of bids in cases and pursuant to the procedure stipulated in 
the invitation. 
 
3. Provisions of this Article pertaining to el ectronic communication or it s means are applied to 
the extent its user is authorized to use electronic communication means. 
  GPA/ACC/ARM/11 
 Page 21 
 
 
  4. 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 communication technologies means in general use.  5. The following rules are mandatorily applicab le to means for the electronic transmission and 
receipt of bids: 
 
(1) The information regarding the sp ecifications necessary for the electronic 
submission of bids, including encryption, sh all 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, fu lfilling at least th e following conditions: 
 
(a) The exact time and date of the receip t 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 inte rdiction of access to the transmitted data has been 
breached, the unauthorized access can be clearly detectable; 
 
(d) Only authorized persons may set or modify the dates for opening data 
received; 
 (e) During the different stages of proc urement procedure, the access to received 
data is possible only by an simultane ous action of at l east two authorized 
persons/systems and only after the da te established accordi ng to provisions 
of letter b) of this paragraph; 
 (f) Data received and opened in accorda nce with the requirements of this 
paragraph must remain accessible only to persons author ized to acquaint 
themselves therewith. 
 
6. The bidders shall submit, before the expiry of the time limit laid down for submission of bids, the documents, certificates, declarations and other documents, in case these are not available 
in electronic format. 
 
7. The Republic of Armenia Government speci fies the particularities of the electronic 
procurement procedure.  
8. Article 8:  Minutes of procurement procedure and reports on procurement 
 
1. If the estimated price exceeds the procuremen t 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 an d justification of procur ement method selection. 
 (3) Invitation and changes made therein.  (4) Procurement related inquires and explanations provided thereto. GPA/ACC/ARM/11 
Page 22  
 
 (5) Information about bidders:  name, location or residence, contacts.  (6) Prices offered in the bids.  
(7) Bid evaluation procedure an d the results of evaluation. 
 (8) If a bid is rejected, a just ification of such decision. 
 (9) A copy of the contract; if no contract is  awarded as an outcome of the procurement 
process, then a justificat ion of such decision. 
 (10) If illegal actions were id entified during the procuremen t 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. For purposes of registering procurement tran sactions that originate lia bilities for the state, 
within seven calendar days of the signature of contr act financed by the state budget or cancellation 
of the procurement process, the Client submits to the Authorized Body a re port on the procurement 
process.  The Authorized Body determines the standa rd form of the report. 
 3. If the procurement value does not exceed the Pr ocurement base unit, the Client ensures that 
the relevant documents (or el ectronic documents) on activiti es implemented for procurement 
purposes and on their grounds exist and maintained. 
 4. The Client must provide a co py of the procurement procedure minutes or its excerpt, except 
for procurements containing state, official or ba nking secrets, to any person, within five calendar 
days after receipt of such request.  
5. To prepare and publish the annual procurem ent report, the Clients shall furnish to the 
Authorized Body reports, in the manner and within the deadlines set  out by the latter. 
 
9. Article 9:  Contract award decision, standstill period, contract signing and conditions  
 
1. In case of bidding, prior to contract signature, an announcem ent on contract award decision 
has to be published.  It can be announced:  
(1) Either at the meeting on finalization of bidding results through a public debriefing 
to which all the bidders in the procurem ent process have been invited;  or 
 
(2) Such announcement can be sent to all bidders involved in the procurement process 
by electronic means, fax or registered mail;  or 
 (3) Such announcement is posted at the website of the Authorized Body and, if 
possible, at the website of the Client as well. 
 
2. The contract award decision shall contain brief information on evaluation of bids and relevant reasons for the selection of this bidder a nd a statement on standstill period.  The standstill 
period is the period from the day following the date on which the contract award decision is announced to the day the Client’s eligibility to si gn the contract. 
  GPA/ACC/ARM/11 
 Page 23 
 
 
  3. The standstill period: 
 
(1) Shall be at least 10 calendar days , in case of procurements exceeding the 
Procurement base unit by fifty times; 
 
(2) Shall be at least 5 calendar days, in  case of procurements not exceeding the 
Procurement base unit by fifty times. 
 
4. The standstill period stipulated under the paragraph 3 of this Article does not apply, if:  
(1) This law does not require publication of a contract award notice; 
 (2) There was only one bi dder in the tender, who is awarded the contract. 
 
5. The Client signs the contract, if no bidde r complains against the award decision at the 
Procurement Complaint Review Board within the standstill period of paragraph 3 of this Article.  A 
contract concluded before the expiry of the standstill period is null and void.  6. Relations between the procurement parties not regulated by the Republic of Armenia legislation on procurement are regulated under the contract.  The Republic of Armenia government shall set out the general co nditions of the contract. 
 
10. Article 10:  Contract award announcement publication 
 
 If the contract price exceeds the Procuremen t base unit, then the Client, within seven 
calendar days of the contract signing, furnishes to the Authorized Body an announcement about the 
awarded contract to be published in the Bulletin, ex cept for procurements cont aining state, official 
or banking secrets.  These notices shall contain:  
(1) The nature and quantity of products or services in the contract award; 
 (2) The name and address of the entity awarding the contract; 
 
(3) The date of award;  (4) The name and address of winning tenderer;  
(5) The value of the winning award or the highest and lowest offer taken into account 
in the award of the contract; 
 (6) Where appropriate, means of identifying the notice issu ed under this law;  and 
 
(7) the type and justification of procedure used. 
 
11. Article 11:  Bidders' illegal actions 
 
If a bidder or a representative of its management body commits any illegal actions against 
economic activities or state service under the procurem ent process, then the Client, on the day when 
such grounds are identified, no tifies about this the Authorized  Body and the law enforcement 
bodies providing them and the bidder with the grounds for such decision. 
   GPA/ACC/ARM/11 
Page 24  
 
12. Article 12:  Procurement subject description 
 
1. The description of procurement subject shall fully and clearly describe technical 
specifications of goods, works or services being pr ocured as well as terms and conditions for their 
purchase and payment, ruling out an y alternative interpretation.  Th e 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 po tential 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 adequa te to need for which the given procurement 
is carried out; 
 
(4) Shall include full and adequate descripti on of specifications and technical data of 
the procurement object, while in case of works' pr ocurement, it shall also include the bill of 
quantities, timetable and other non-price conditions. 
 
3. Based on specific features of the procurem ent subject, its technical specifications, to the 
possible extent, include a clear description of re quirements for quality, standard, safety, legend, 
terminology, packing, unloading, dimension, desi gn and other technical characteristics related to 
the goods, works or services being procured; the de scription is based on the international standards 
and existing Republic of Armenia normative-te chnical documents and st andards or, if such 
documents and standards are missing, on temporary technical references. 
 4. The technical specifications can also be defi ned in terms of performance and/or functional 
requirements that have to be descr ibed sufficiently accurate in orde r to allow bidders and the Client 
to understand exactly the subj ect-matter 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 specific ations must contain the words "or equivalent". 
 
6. The Republic of Armenia Government specifies the procedure for approval and prior 
review of the description of procurement subject.  7. The requirements for the types and the descriptions of public-private partnership 
transactions as well as the specifics of the proc edure for development and approval of those 
descriptions shall be speci fied by the Republic of Armenia Government. 
 
13. Article 13:  Official language of procurement procedure 
 
1. Procurement related documents are drafted and, in cases stipulated in this law, published in 
the Bulletin in Armenian, while advertisements related to an open bidding are also published in 
English and Russian. 
 2. In case of procurements exceeding the Procur ement base unit by fifty times the bids could 
be submitted in English or Russian only, unless otherwise stipulated in the invitation.  
  GPA/ACC/ARM/11 
 Page 25 
 
 
  14. Article 14:  Procurement planning and financing 
 
1. The Republic of Armenia Government approves the procurement plan to be funded from 
the state budget and based on the administrative and operational classifica tion.  The procurement 
plan is approved on the basis of procurement subject, quantity, total price and procurement method. 
 
2. The Republic of Armenia Government, follo wing the procedure stipulated under paragraph 
1 of this Article, approves the procurement plan that contains a state or official secret, and 
particularly includes go ods, works and services required to pr ovide military equipment, weapons, 
ammunition and armament. 
 
3. In case of procurement fund ed from other sources, the Cl ient approves the annual 
procurement plan according to the procedure and deadlines specified by the Republic of Armenia 
Government.  The procurement plan is published in the Bulletin, except for procurements containing state, official or banking secrets. 
 
4. Funds for procurement of ci vil works are allocated on the basis of design estimates that 
have been approved and expert re viewed in accordance with the est ablished procedure.  Funds for 
procurement of civil works wi thout design estimates cannot be  allocated, unless otherwise 
stipulated by law.  
5. If the estimated price exceeds the amount al located 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 procur ement stipulated under the procurement contract;  or 
 
(2) To temporary suspend this procuremen t, if funds are requ ired for temporary 
suspension. 
 
6. Pursuant to the procedure stipulated in this law a contract can be signed prior to the allocation of funds provided th at procurement under the contr act could be done, when necessary 
funds are allocated.  The contract si gned under this provision is term inated, if the funds for contract 
execution are not allocated during the year following the day of contract signing.  This paragraph 
can be applied, if:  
(1) The Client is unable to envisage (calculate) initially the funds requisite for 
procurement; 
 
(2) Supply of goods, implementation of wo rks 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 competit ive procurement methods impossible. 
 
7. The Client assumes financial obligations under a contract, if financial allocations required 
to carry out that procurement have been earmarked and within the framework of those allocations. 
 8. The funds for procurement are allocated under relevant budget items specified for purchase 
of goods, works and services of economic classificatio n of budget expenditures.  It is forbidden to 
allocate funds under other items of economic cl assification of budget expenditures, if procurement 
will be carried out with these funds. 
 9. The Republic of Armenia Government specifies the procedure for planning and financing of procurement.  GPA/ACC/ARM/11 
Page 26  
 
SECTION 2:  REGULATION AND COOR DINATION OF PROCUREMENT PROCESS 
 
15. Article 15:  Regulation and c oordination of procurement process  
 1. The Authorized Body carries out the regulation and coordination of the procurement 
process.  The Authorized Body ca nnot be involved in procurement 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 developmen t of draft legal acts on procurement and 
adopts or submits them for approval; 
 
(2) Facilitates the methodological guid ance for the procurement process; 
 (3) Ensures the existence of a system for professional educ ation, continuous training 
and qualification assessment of Clie nts' procurement specialists; 
 
(4) Approves standard documents used in procurement processes; 
 (5) Facilitates the publication of the Bulletin;  (6) Coordinates the procurement related collaboration between international 
organizations, foreign states and the Republic of  Armenia state bodies an d local self-governments; 
 
(7) Registers procurement transactions that  originate liabilit ies for the state; 
 (8) Publishes: 
 
(a) The annual public procurement report; 
 (b) The list of qualified procurement specialists;  (c) The list of officials, who breached the requirements of the Republic of 
Armenia legislation on procurement. 
 3. The head of the Client appoints a procurement coordinator, who:  
(1) Is responsible for the facilitation and coordination of the Client's procurement 
process; 
 
(2) Provides an opinion on documents approved by the Client's under the procurement 
process; 
 (3) Carries out the powers of the secr etary of the evaluation committee; 
 
(4) Drafts the minutes of a given procur ement and the procurement contract and 
submits them to the approval of the Client's head; 
 
4. The following could be appointed as the Client’s procurement coordinator:  
(1) Relevant unit;  GPA/ACC/ARM/11 
 Page 27 
 
 
   
(2) Official(s);  (3) Invited person, i.e., advisor(s) 
 
5. The staff of the procurement coordination unit, officials and invited person(s) shall be 
included in the list of qualifie d procurement specialists published by the Authorized Body.  The 
individuals are included in th e aforementioned list after successf ully passing the examination 
evaluating their knowledge of the Republic of  Armenia legislation on procurement organized 
following the procedure set out the Authorized Body. 
 
16. Article 16:  The Center for Procurement Support 
 
1. The Center for Procurement Support: 
 
(1) Implements professional education a nd continuous traini ng for bidders and 
procurement coordinators; 
 (2) Provides professional advice to bidders, clients and other entities; 
 (3) Facilitates an assessment of  eligibility and qualificat ions of bidders, concludes 
framework agreements, compiles an d publishes in the Bulletin: 
 
(a) The list of bidders, who concluded framework agreements;  (b) The list of pre-qualified potential bidders, i.e., the “White List”. 
 
(4) Implements service and coordination functions for the e-procurement system; 
 
(5) Compiles and publishes electronic news letters on goods, works and services, 
analyzes and publishes procurement statistics, analyzes procurement data and provides conclusions; 
 
(6) On a sampling basis, conducts an expe rt assessment of technical specifications of 
procurement subject and bidder qualif ication criteria approved by a Client in order to ensure the 
compliance to the requirements for equal treatment  and non-discrimination stipulated under this 
law. Submits the assessment results to th e clients and the Authorized Body; 
 
(7) Ensures the existence of a procurement support service (hotline) in order to register 
procurement related signals and promptly respond to the questions; 
 (8) Acts as the secretariat of the Pr ocurement Complaint Review Board: 
 
(a) Arranges the Board meetings, 
 
(b) Evaluates the completeness of receive d complaints (appeals) and provides 
an opinion on all complaints to the Board, 
 (c) Publishes the Board decisions. 
 
(9) Implements other powers set out by this law, the Republic of Armenia government 
and the Authorized Body. 
 GPA/ACC/ARM/11 
Page 28  
 
2. The competences of the Procurement Support Ce nter are set out by the contract concluded 
between the Center and the Authorized Body. 
 
SECTION 3:  PROCUREMENT PROCEDURES AND APPLICATION CONDITIONS THEREOF 
 
17. Article 17:  Procurement procedures 
 
1. The procurement procedures are:  
(1) Open procedure; 
 
(2) Competitive dialogue;  (3) Restricted procedure;  
(4) Competitive procedure. 
 
2. Open procedure is the preferable and basic procurement method.  Only in cases stipulated 
in this law, other procurement procedures can be used.  3. A contract or a framework agreement is conc luded as a result of the procurement process. 
 
4. A framework agreement is concluded if the subject of procurement is for periodic use and is included in the list approv ed by the Authorized Body;  otherwis e, a contract shal l be concluded.  
The procedure for procurements under the framewo rk agreement is set out by the Republic of 
Armenia Government. 
 
5. A simplified procurement method can be used for the procurement of goods, works or services of general use with standard (similar) te chnical specifications and their price does not 
exceed twenty Procurement base units.  The particul arities of procurement by simplified method are 
set out by the Republic of Armenia Government.  
6. In cases and following the procedure set out by the Republic of Armenia Government, the 
procurement might be done from exchanges.  
18. Article 18:  Conditions for use of a competitive dialogue method 
 
1. Any bidder is eligible to participate in co mpetitive dialogue; however, the Client extends 
the invitation for dialogue to pr e-qualified bidders only. In case of  a competitive dialogue, a pre-
qualification procedure is arranged.  The purpose of the dialogue is to develop one or more alternative descriptions of the proc urement subject fulfilling the requ irements of the Client.  As a 
result of the dialogue, the Client extends to the pre-qualified bidders a final invitation.  
2. The procurement can be carried out by a competitive dialogue method, if the Client is not 
able to adequately (objectively)  specify the description of procur ement subject in accordance with 
the provisions of this law and:  
(1) Gives the bidders an opportunity to propose possible alternative descriptions of 
procurement subject;  or 
 (2) There is a need to negotiate with the bi dders to clarify some specific features of the 
procurement subj ect description. 
  GPA/ACC/ARM/11 
 Page 29 
 
 
  3. The procedure for using the competitive dialogue method are set out by the Republic of 
Armenia Government.  
19. Article 19:  Conditions for use of a restricted procedure 
 
1. Any bidder is eligible to participate in r estricted procedure;  how ever, only pre-qualified 
bidders that received the Client’s invitation are eligible to subm it bids.  In case of a restricted 
procedure:  
(1) A pre-qualification procedure is arranged. 
 
(2) The period for the receipt of tenders shal l not be less than forty calendar days from 
the date of publication the list of the pre-qualified bidders.  
(3) Negotiations are not arranged. 
 
2. The procurement is carried out by a restricted procedure, if it  contains a state, official or 
banking secret.  3. The procedure for using the restricted procedure is set out by the Republic of Armenia Government. 
 
20. Article 20:  Conditions for use of a negotiated procedure 
 
1. In case of a negotiated procedure, the Client  negotiates with the pr e-qualified bidders the 
terms and conditions of the contract and concludes it. 
 
2. Negotiated procedure is arranged:  
(1) By publishing a prior procurement announcement;  or  (2) Without publishing a prior procurement announcement. 
 
3. A negotiated procedure can be arranged by publishing a prior procurement announcement, if:  
(1) The procurement is carried out to purchase specific non-material assets for 
designing works, research, expertise,  testing or scientific purposes; 
 (2) Due to emergency or other unforeseeable circumstances, there ar ises an urgent need 
for procurement and the nature and risks of that need make the use of an open or restricted procedure impossible due to time constraints, prov ided that such need was impossible to foresee. 
 
4. In cases stipulated under the para graph 3 of this Article, the Client: 
 
(1) Arranges a pre-qualification procedure a nd negotiates with pre-qualified bidders the 
bids they have submitted in order to select the best proposal; 
 
(2) Ensures an equal treatment for all bidders; 
 (3) Can carry out a negotiated procedure in  successive stages applying the criteria set 
out in the invitation. 
 GPA/ACC/ARM/11 
Page 30  
 
5. A negotiated procedure can be arranged without publishing a prior procurement announcement, if: 
 
(1) Due to copyright or related rights, existence of special or exclusive rights, the 
goods, works or services can be ob tained from a single person only; 
 
(2) Insofar as an urgent need for proc urement arises and when, for reasons of 
emergency, another method of procurement is impossible due to time constraints, provided that such need was impossible to foresee.  Situatio ns caused by natural an d/or man-caused disasters 
and/or accidents and/ or other unforeseen reasons are considered as emergency; 
 
(3) For additional quantities of  products which are intended to replace or extend the 
equipments/installations initially supplied by a su pplier, where a change of  the original supplier 
would oblige contracting authority to acquire products having different technical characteristics which would result in incompatibility or dispr oportionate technical difficulties in operation and 
maintenance.  This condition is applicable for three-year period following the signing of the 
original contract;  
(4) The Client, after procurement of works or services done from an entity, decides that 
an additional procurement of works or services not included 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 fro m 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 additional procurement from the same entity can be done only once. 
 
(5) For the goods that can be purchased on pa rticularly advantageous conditions, from 
either an entity which definitively winds up its bus iness activities, or the recei vers or liquidators of 
a bankruptcy, an arrangement with creditors or a similar procedure, specified by the Republic of 
Armenia government; 
 
(6) The price of procurement does not  exceed the Procurement base unit. 
 
6. The procedure for using the negotiated procedure are set out by the Republic of Armenia Government.  21. Article 21:  Pre-qualification procedures  
1. In case of arranging a pre-qua lification procedure, an announ cement on pre-qualification is 
published.  The period for the recei pt of prequalification bi ds shall not be less than 25 calendar days 
from the date of publication of the pre-qualif ication announcement.  The announcement in 
Armenian, English and Russian is published in the Bulletin and contains the following information: 
 
(1) Name and location of the Client; 
 
(2) The code of procurement procedure; 
  GPA/ACC/ARM/11 
 Page 31 
 
 
  (3) A notice on the eligibility of bidders to participate in the prequalification procedure; 
 (4) Language(s), in which the prequalification bids shall be submitted;  (5) A clear summary of the content of the contract and procurement subject 
descriptions; 
 
(6) The procedure for preparation and submission of prequalification bid, including the 
format and venue, the deadline for submission;  
(7) The requirements set out for bidder's eligibility to bid and qualification, and the 
procedure for th eir evaluation; 
 (8) Other necessary requirements relate d to the prequalifi cation procedure. 
 
2. The Client shall, within three calendar days, respond to the bidder's request for explanations 
about the prequalification, if such request had been received no later than five  calendar days prior to 
the deadline for submission of prequalification bids.  The Client meanwhile publishes in the Bulletin information on request and provided explanations without disclosing the data of the inquirer.  
3. If, after publication of an invitation to pa rticipate in any case of intended procurement, but 
before the time set for opening or receipt of te nders as specified in the notices or the tender 
documentation, it becomes necessary to amend or re -issue the notice, the amendment or the re-
issued notice shall be given the same circulat ion as the original documents upon which the 
amendment is based. 
 
4. Any significant information given to one supplier with respect to a particular intended procurement shall be given simultaneously to all other suppliers concerned in adequate time to permit the suppliers to consider such information and to respond to it.  5. The eligibility of the bidder to bid and the bidder's qualificat ion are evaluated in accordance 
with the procedure set out in the prequalification invitation, and a short-list of pre-qualified bidders 
is compiled.  6. The pre-qualified bidders are eligible to further participate in the procurement process. 
 
7. The minutes on results of the prequalification procedure, which constitute an integral part 
of the minutes of procurement procedure, are drafted and sent to pre-qualified bidders within five calendar days after finalizing the results of the prequalification procedure.  8. If up to three bidders have submitted the bi ds for pre-qualification procedure, then the 
evaluation committee may decide: 
 
(1) To re-advertise the pre-qua lification announcement;  or 
 (2) To arrange new pre-qualification procedure;  or 
 
(3) To announce the pre-qualification procedure null and void. 
 
9. The procedure for using the prequalification procedure is set out by the Republic of Armenia Government.  GPA/ACC/ARM/11 
Page 32  
 
22. Article 22:  Impermissibility of procuremen t packaging or slicing and of amending the 
procurement subject descriptions  
1. To avoid slicing of procurement procedure, it is prohibited: 
 
(1) To divide the procurement into separate lots with the purpose to avoid the use of 
open or restricted procedure; 
 (2) To amend the descriptions of goods,  works and services envisaged in the 
procurement contracts. 
 
2. It is prohibited to combine procurement subject s with different descripti ons into one lot, if 
they can be presented in separate lots  for the same procurement procedure. 
 3. If an individual requiremen t for a procurement results in the award of more than one 
contract, or in contracts being awarded in separate  parts, the basis for valuation shall be either: 
 
(1) The actual value of similar recurring co ntracts concluded over the previous fiscal 
year or 12 months adjusted, where possible, for anticipated changes in quantity and value over the subsequent 12 months;  or 
 
(2) The estimated value of recurring cont racts in the fiscal year or 12 months 
subsequent to the initial contract. 
 
4. In cases of contracts for the lease, rental or hire  purchase of products or services, or in the 
case of contracts which do not specify a tota l price, the basis for valuation shall be: 
 
(1) In the case of fixed-term co ntracts, where their term is 12 months or less, the total 
contract value for their duration, or, where their term exceeds 12 m onths, their total value including 
the estimated residual value; 
 (2) In the case of contracts fo r an indefinite period, the monthly instalment multiplied 
by 48. 
 5. If there is any doubt, the second basis for valuation, namely 2), is to be used.  6. In cases where an intended procurement specif ies the need for option  clauses, the basis for 
valuation shall be the total value of the maximum permissible procurement, inclusive of optional 
purchases. 
 
SECTION 4:  BIDDING PROCEDURE 
 
CHAPTER 1:  SOLICITATION OF BIDS 
 
23. Article 23:  Evaluation committee 
 1. Upon a decree of the Client's head, an ev aluation committee composed of up to nine 
members is formed, which:   (1) Approves the texts of announcement and invitation; 
 
 (2) Makes amendments  in the invitation; 
  GPA/ACC/ARM/11 
 Page 33 
 
 
   (3) Provides explanations a bout the procurement procedure; 
  (4) Opens and evaluates the bids;   (5) Select the winning bidder(s). 
 
2. The committee has a chairman and a secre tary, who are appointed by the decree on 
establishment of the committee.  The secretary is not a member of the committee and: 
 
(1) Facilitates the committee's activities; 
 (2) Receives and registers the bids;  
(3) Develops and submits to the committee draft documents subject to the committee's 
approval;  
(4) Provides the invitation;  (5) Records and stenographs information on the committee's activities by developing 
appropriate documents and ensures the safety of  those documents during the committee's operation; 
  (6) Arranges provision of procurement procedure related explanations;   (7) Bears responsibility for compliance of the committee's ac tivities 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 informa tion disclosed in the bids that they personally 
learnt, except cases stipulated in this law. 
 4. The Republic of Armenia Government spec ifies the procedure for establishment and 
operation of the evaluation committee. 
 
24. Article 24:  Procurement announcement and invitation 
 
1. Procurement announcement and invitation are pu blished in the Bulletin to attract bidders to 
an open procedure. 
 
2. In open procedures, the period for the receipt of tenders shall not be less than forty calendar 
days from the date of publication of the an nouncement and the invitation in the Bulletin. 
 3. The invitation contains the following information: 
 
 (1) Name and location of Client;   (2) Code of open procedure;  
 (3) Clear summary of the content of contra ct and procurement subject descriptions;  
  (4) Announcement about the eligibility of bi dders to participate in the open procedure; GPA/ACC/ARM/11 
Page 34  
 
 
(5) Conditions for obtaining a hard copy of the invitation, including charges and 
payment procedure thereof;   (6) Language(s), in which the 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 responsible 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 co py of the invitation on the same day when, on the 
basis of the invitation, it submits a written request to the Client.  
 
5. If the estimated price exceeds the fifty Proc urement base units, the bidder has the right to 
request also English and Russi an copies of the invitation. 
 6. In case of providing a hard copy of the invita tion for an open procedure a charge is levied, 
which cannot exceed the costs for photocopying and delivering the invitation.  The Republic of 
Armenia Government specifies the procedure for issuance of invitati on, 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 participat e in the open procedure. 
 
25. Article 25:  Content of invitation 
 
1. The invitation must include: 
 
(1) A reference to the published tender an nouncement, as a supplement to which the 
invitation is extended; 
 
(2) The instructions for bid preparation; 
 (3) The bidders' qual ification criteria, participation eligibility requirements and 
procedure for th eir 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 carri ed out in lots and bidders ar e allowed to submit bids for a 
part of goods, works or services tendered, the te rms and conditions and the procedure thereof; 
  GPA/ACC/ARM/11 
 Page 35 
 
 
   (8) The procedure for calculatio n of price offered in the bid; 
  (9) A note that the offered price, beside s the value of goods,  works and services, 
includes also the costs for transpor tation, insurance, duties, taxes and other charges and cannot be 
less than their cost price, which is  calculated and presented in the bid; 
 
 (10) Requirements related to the bid secu rity and the contract performance security; 
  (11) The conditions for submission of bids, including the form, venue, date and the language of bid; 
 
 (12) The procedure for recei ving explanations on procur ement process, information on 
meetings to be arranged with the bidders as we ll as the name of the evaluation committee's 
secretary;  
 (13) The procedure, venue, date and time of bid opening; 
  (14) The references made to the provisions of this law and other legal acts in relation to this procurement;   (15) The conditions for proposing a contract award; 
 
 (16) The right of the bidder  to appeal against the procur ement process related activities 
(standstill) and/or the adopted d ecisions and the procedure thereof; 
  (17) The bases for bid rejection; 
 
 (18) Information necessary for preparation, submission, opening a nd evaluation of the 
bid as well as other procurement related information.  2. The tender invitation also  envisages that the bidder: 
 
 (1) Submits in the bid a statement verified by the bidder justifying the eligibility to 
participate in the bidding and the compliance to 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 documents (information) sp ecified in the tender invitation justifying the 
statement; 
 
 (2) Submits in the bid a statement verifi ed by the bidder about the absence of 
predominant position abuse and collusion. 
 
26. Article 26:  Clarification of the tender invitation and amendments therein 
 1. The bidder has the right to request a clarificat ion about the invitation at least five calendar 
days prior to the deadline for submission of bids.  The clarification to the inquirer is provided within three calendar days of receiving such request. 
 2. On the day following the date when the cl arification is provided to the inquirer, an 
announcement on the content of request and of prov ided clarification is published in the Bulletin, 
without disclosing the data on the inquirer.  3. A clarification is not issued, if the request is  submitted with a violation of the deadline set 
out in this Article as well as if the request is out of the invitation's scope. GPA/ACC/ARM/11 
Page 36  
 
 4. Amendments in the invitation can be made at least five calendar days prior to the deadline 
for submission of bids.  In case of an open pr ocedure, an announcemen t about the amendments 
made and the conditions for their issuance are pub lished in the Bulletin within three calendar days 
after the day such amendments are made; in case of  a restricted procedure, the amendments are 
provided to those bidders, who received an invitation. 
 5. In case of amendments in the invitation for an  open procedure, the deadline for submission 
of bids is calculated from the day of publishing in the Bulletin an announcement about the amendments; in case of a restricted procedure - from the day of issuin g to the bidders the 
amendments made in the invitation.  In this case, the bidders must ex tend the validity period of their 
bid securities or prov ide new bid securities. 
 
6. Minutes of the activities carried out under th is Article and their ou tcomes are drafted and 
attached to the minutes of the procurement procedure. 
 
CHAPTER 2:  BIDS 
 27. Article 27:  Submission of bids 
 
1. The bidder submits the bid following the procedure specified in the 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 (information) specified by the Authorized Body and stipulated in 
the invitation. 
 2. If the bid is submitted in a hard copy format, the bidder's proposals and related documents are put into an envelope, which is glued and sealed (if applicable ) by the submitting party.  The 
documents placed into the envelope consist of th e original documents and the number of copies 
indicated in the invitation.  Th e packages of documents are marked  with the words "original" and 
"copy" respectively.  The envelope and the documents envisaged in the invitation and prepared by the bidder are signed by the person submitting them or  a person authorized by the latter (hereinafter 
referred to as "agent").  If the bid is submitted by the agent, a document verifying such authority of the latter is included in the envelope.  
3. On the envelope aforementioned in the paragraph 2 of this Article, in the language of bid, 
are indicated:   (1) The name of Client and the venue (address) of bid submission; 
 
 (2) The code of open procedure; 
  (3) The words "do not open un til the bid opening meeting";  GPA/ACC/ARM/11 
 Page 37 
 
 
   
 (4) The name, location and telephone numbers of the bidder.  4. The secretary enters the bids into the regi ster 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 speci fies the format of and the proced ure for maintaining the register. 
 5. The bids, which do not satisfy the requirem ents of this Article, are rejected by the 
evaluation committee at the bid opening meetin g 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 qual ifications of all parties to the agreement 
on joint venture are taken into account; 
  (3) The bidders bear jo int and several liability. 
 7. The Republic of Armenia Government specifie s the particularities fo r participation in the 
procurement process as a consortium. 
 
28. Article 28:  Validity p eriod of the bid, its withdr awal and amendments therein 
 
1. The bid is valid until the co ntract (framework agreement) sign ature, the withdrawal of the 
bid by the bidder, the bid rejection or the cancellation of the procurement procedure under this law. 
 
2. The bidder can amend or withdraw the bid un til the deadline for th e submission of bids. 
 3. If the bid is submitted in a hard copy format, the notification about changes in the bid is sent in an envelope prepared as stipulated under the Article 27(2) of this law by adding on it the word "amendment".  In case of bid withdrawal, th e bidder, prior to the bid opening, submits a 
written notice thereof. 
 
29. Article 29:  Bid security 
 
1. The bidder provides with the bid a bid security as prescribed in  the invitation.  The bidder 
determines the amount of bid security, which cannot be  less than two percent of the price offered in 
the bid.  The bidder submits the bid security as a validated unilater al statement, in the form of a 
fine.  The standard form of the fine is set out by the Authorized Body.  2. The bid security - the fine - is pa id by the bidder, if that bidder: 
 
 (1) Is announced a selected bidder but will refuse or be deprived of the right to 
conclude contract;   (2) Breaches an obligation assumed under the procurement process leading to the 
termination of that bidder's furt her participation in the process; 
 
 (3) Refrains from further participation in the procurement process after the bid 
opening.  GPA/ACC/ARM/11 
Page 38  
 
3. The Republic of Armenia Government specifies the procedure for determining the amount of bid security for fra mework agreements. 
 
CHAPTER 3:  OPENING AND EVALUATION OF BIDS 
 
30. Article 30:  Opening of bids 
 
1. The bids are opened at the time indicated in the invitation, at the bid opening meeting.  The 
date and the time of the bid opening shall coincide with the deadline for their submission.  The bids 
for a restricted procedure, upon a written consent of  all bidders that received an invitation, can be 
opened prior to the deadline indicated in the invitation. 
 
2. At the bid opening meeting the following are disclosed: 
 
(1) The name of each bidder;  (2) Information on preparation and submission of envelopes containing the bids in 
terms of compliance to the invitation requirements; 
 
(3) Information on availability of documents required in the invita tion in each of the 
opened bids; 
 (4) Information on compliance of document s 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 member s of evaluation committee present at the meeting. 
The minutes contain:   (1) Information on venue, da te and time of bid opening; 
 
 (2) The names and addresses of bi dders, who have submitted bids; 
  (3) Data on preparation and submission of envelops in terms of compliance to the invitation requirements;  
 (4) Data on availability of documents required in the invitation in each of the opened 
envelops;  
(5) Data on compliance of documents submitted by each bidder to the conditions set 
out in the invitation; 
 
(6) The price offered by each bidder;  
 (7) Information on the bidder ranked the first and other bidders ranked in order of priority;  
 (8) If the procurement procedure is cance lled, the grounds for such cancellation;  GPA/ACC/ARM/11 
 Page 39 
 
 
   (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 members present at the meeting; 
 
4. If a member of the evaluation committee an d(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 pr esent at the evaluation  committee's meetings. 
Bidders or their representatives can require copi es of the minutes of the evaluation 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 marked as 
confidential, insofar, objectively, the disclosure of this information would prejudice the legitimate 
interest of the bidder, particularly, where th e commercial secrecy and intellectual property is 
concerned.  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 dismis ses such a member.  If the chairperson of the 
committee has a conflict of interests related to the given procurement procedure then he/she 
renounces the participation in that procedure and is substituted in that procedure by another member 
of the committee.  Members of the committee sign  a statement about the absence of conflict of 
interests. 
 
7. On the calendar day following the bid openi ng meeting, a copy of the minutes of the bid 
opening meeting are provided to the bidders, wh o or whose representatives did not participate in 
that meeting.  
31. Article 31:  Bid evaluation 
 
1. The bids are evaluated following the procedure specified in the invitation.  The bids 
compliant to the conditio ns specified in the invitation are rate d 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 th e 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 m onetary terms are taken into account in cases and 
following the procedure specified by the Republic of Armenia Government.  The non-price criteria 
must be link with the subject-matter of the contract  and their relative weighting shall be disclosed in 
the invitation. 
 
3. If there is an inconsistency in the bid between the amounts in letters and in numbers, then 
the amount in letters is considered.  If the pri ces are offered in two or more currencies, they are 
compared in Armenian Drams at the exch ange rate specified in the invitation. 
 4. In cases specified in the invitation and follow ing the procedure set out therein, an electronic 
auction is arranged. GPA/ACC/ARM/11 
Page 40  
 
 5. After determining the bidder ranked the first and other bidders ranked in order of priority, within the deadline specified by the Republic of Armenia Government:   (1) The bidder ranked the first submits to the committee documents (information) 
specified in the inv itation justifying the right to participate in procurement and the compliance to 
qualification criteria set out in the invitation;   (2) The committee evaluates the compliance of the documents (information) submitted under the item 1 of this paragraph to the requirements specified in the invitation and, in cases and in 
accordance with the proced ure specified by the Republic of Armenia Government, evaluates the 
reasonableness of price an d non-price (technical) pro posals of that bidder. 
 6. The bid is rated satisfactory, if the documents specified under the paragraph 5 of this Article satisfy the requirement set out in the invitation.  In this  case, the bidder is declared a 
selected bidder. 
 7. If, as a result of evaluation under the paragraph 6 of this Article, the bid is rated unsatisfactory, the committee requires the next ranked bidder to submit the documents;  8. Based on the bid evaluation results, the minu tes of the bid evaluati on meeting are drafted 
and attached to the minutes of the procurement procedure.  Members of the committee present at 
the meeting sign the minutes.  9. The Republic of Armenia Government specifies the particularities of the bid evaluation procedure. 
 
32. Article 32:  Contract  performance security 
 
1. Pursuant to the request for submission of a contract security and within five calendar days 
after receiving such request, the selected bidder must submit the contract performance security.  
The selected bidder is awarded the contract , if he/she provides a contract security. 
 
2. The amount of contract performance security is at least five percent and maximum ten 
percent of the contract price.  The selected bidd er submits the contract performance security as a 
validated unilateral statemen t, in the form of a fine.  The standard  form of the fine is set out by the 
Authorized Body.  The selected bidder also provides an advance payment guarantee in the amount 
of the advance payment, if an advanced payment is envisaged under the contract. 
 3. The contract specifies the repayment procedur e for the advance paymen t in accordance with 
the terms specified by the Republic of Armenia Government.  4. Unless otherwise stipulated in the contract, the contract  performance security and (or) 
advance payment guarantee are returned to the subm itter no later than five calendar days after the 
contract execution completion.  
 
33. Article 33:  Signing of procurement contract 
 
1. The Client signs a contract wi th the selected bidder  based on a decision  of the evaluation 
committee.  2. The Client, within two calendar days after the selected bidder was announced, notifies the 
selected bidder offering to sign a contract and providing the draft procurement contract. 
  GPA/ACC/ARM/11 
 Page 41 
 
 
  3. If, within five calendar days after receivi ng the notice on contra ct award and the draft 
contract, the selected bidder fails to sign the contract and to submit to the Client a contract 
performance security as well as an advance paymen t guarantee, if an advanced payment is 
stipulated under the contract, then the selected bidder  is deprived of the right to sign the contract. 
 
4. Prior to the deadline specified  under the paragraph 3 of this Article, upon the consent of the 
parties, amendments could be made in the draft co ntract; however, such am endments canno t lead to 
the changes in the descriptions of the procurement subject.  5. The Republic of Armenia Government specifi es the particularities of contract signing. 
34. Article 34:  Finalization of results 
 
1. The meeting on finalization of open procedur e results, where the latter are announced, is 
convened on the next calendar day after the contract  signing with the selected bidder or on the next 
calendar day after it becomes apparent that, as a resu lt of open procedure, no contract is awarded. 
 
2. Minutes of the finalizing meeting are dr afted and attached to the minutes of the 
procurement procedure.  Members of the eval uation committee present at the meeting sign the 
minutes.  3. If a member of the evaluation committee an d(or) a bidder wants to express an opinion 
(special opinion) on the finalizing meeting that has not been recorded in the minutes of finalizing 
meeting, then such opinion is submitted in writ ing and attached to the minutes specified under the 
paragraph 2 of this Article.  
35. Article 35:  Declarin g a bidding ineffective 
 1. The procurement procedure is  declared ineffective, if: 
  (1) None of the bids complies with the invitation conditions;   (2) The need for procurement ceased to exist; 
 
 (3) No bids have been submitted;   (4) Contract is not concluded.  
2. After the procurement procedure is declared ineffective, the opening of unopened bids is 
prohibited and they are returned to the bidders.  3. In order to publish in the Bulletin, within five calendar days after the procurement procedure is declared ineffective, the Client furnishes to the Authorized Body an announcement 
indicating the grounds for declaring the procuremen t procedure ineffective.  No announcement is 
published for procurements containing state, official or banking secret. 
 
36. Article 36:  Inadmissibility of negotiatio ns with bidders, detect ion and prevention of 
cases related to restriction of economic competition 
 
1. Negotiations between the evaluation committee,  the Client and the bidders are prohibited, 
except:  
(1) If only one bidder participated in the open procedure, who submitted the bid 
compliant to the requirements set out in the invita tion, or, as a result of bid evaluation, only one bid GPA/ACC/ARM/11 
Page 42  
 
was evaluated as compliant to the requirements set ou t in the invitation.  The negotiations under this 
paragraph can lead only to the offered price reduction and/or changes of payment conditions; 
 (2) Other cases specified in this law.  
2. The Authorized Body cooperates with the la w 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 in volvement in a collusion or abu se of dominant position under the 
procurement process is proven as presc ribed in the procedure stipulated  by the Republic of Armenia 
law, such bidder is included in the list specified under the Article 5(2)(4) of this law.  
37. Article 37:  Calculat ion of contract price 
 
1. Calculation of the contract pr ice shall include all payments (c osts) to be incurred to secure 
the contract execution, including ta xes, duties, transportation and insurance costs, bonus payments 
and profit.  2. The contract price can be variable, if the contract pri ce varies as a result of changing 
conditions (factors) stipulated under the contract and specified by the Republic of Armenia 
Government.  Otherwise, the contract price is fixed and the parties must fully execute their contractual obligations in the fra mework of the contract price. 
 
CHAPTER 4:  ELECTRONIC AUCTIONS 
 
38. Article 38:  Conditions for conducting an electronic auction 
 
1. If specified in the invitation,  the award of the contract sha ll be preceded by an electronic 
auction.  2. The electronic auction shall be based:  
 (1) Either, solely on prices when the contract is awarded to the bidder offering the 
lowest price;   (2) Or, on prices and/or on non-price criteria (proposals) indicated in the invitation, 
when the contract is awarded according to criteria, which, in addition to the offered price, include 
other non-price criteria. 
 
39. Article 39:  Limitations for 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: 
  
 (1) To prevent, restrict or distort the competition;  or   (2) To change the requirements set out in the announcement and invitation. 
 
2. The procurement of consulting services can not be subject of the electronic auctions. 
  GPA/ACC/ARM/11 
 Page 43 
 
 
  3. When the Client intends to apply an electroni c auction, the invitation shall also include the 
following details:   (1) The conditions (features) for conducting an electronic auction,  taking into account 
that the proposal, which is subject  to auctioning, is quantifiable and can be expressed in figures or 
percentages; 
  (2) Any limits on the proposals, which may be submitted, as they result from the 
specification of procurement subject;  
 (3) The information which will be made av ailable to bidders in the course of the 
electronic auction and, where ap propriate, the moment when th ese information will be made 
available to them;   (4) The essential information concerni ng 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 ap propriate, be required when bidding; 
  (6) The information concer ning the electronic equipment used and the arrangements 
and technical specifications for connection. 
 
40. Article 40:  The procedure for conducting an electronic auction 
 
1. Before proceeding with an electronic auction,  the Client shall make a full initial evaluation 
of the bids in accordance with the criteria set out in the invitation. 
 2. To all the bidders, which have submitted satisfactory bids, shall be simultaneously sent a request to submit by electronic means new (revise d) prices and/or, by case, new (revised) non-price 
proposals.   
3. The request shall also includ e information on the starting date and time of the electronic 
auction and all relevant data concerning individual connection to the electronic equipment being used.  4. The electronic auction may take pl ace in a number of  successive rounds. 
 
5. The electronic auction may no t start sooner than two calendar days after the date on which 
the request is sent out.  6. In cases when features other than the prices wi ll 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 winning tender, as indicated in the invitation.  7. Throughout each round of the electronic auction, the Client shall instantaneously (online) 
communicate to all bidders, at least sufficient information to enable them to ascertain their relative 
ranking at any moment. GPA/ACC/ARM/11 
Page 44  
 
8. During the performance of the rounds of electronic auction, th e Client shall not disclose the 
new prices or the new non-price proposals or the identity of the bidders submitting them. 
 
41. Article 41:  Completion of an electronic auction 
 1. The electronic auction shall be completed (closed) by one, or by a combination of the 
following manners:   (1) At a certain moment laid down in the invitation; 
 (2) When the number of auction rounds, fixed in the invitation to take part in the 
auction, has been completed;   (3) When no more new prices and/or new n on-price proposals have  been received. In 
that event, the Client shall state in the invitation to take part in the auction the time, which it will be allowed to elapse after receiving the last subm ission before closing the electronic auction. 
 
2. The Client shall, following the procedure specified in this law, award the contract on the 
basis of the results of the electronic auction to  the bidder, which submitted the best proposal.  
 
SECTION 5:  PARTICULARITIES OF PROCUREMENT OF CONSULTING SERVICES 
 
42. Article 42:  Shortlist of consultants 
 
1. Unless otherwise stipulated in this law, the procurement of consulting services is done 
through an open or restricted pr ocedure, in accordance with the pr ocedure specified in this law. 
 2. In the event of procurement of consulting services by an open or restricted procedure, a prequalification procedur e for short listing of consultants is arranged in accordance with the 
procedure stipulated under the Article 21 of this la w.  The pre-qualified participants are eligible to 
participate further in the procurement process. 
 
43. Article 43:  Procedure for de termining the selected consultant 
 
1. The selected consultant is determined out of the submitted bids by the following selection 
methods specified in the invitation: 
  (1) Evaluated the highest by non-price conditions;  or    (2) Compliant to the minimum non-price conditions and offered the lowest price;  or   
 (3) A non-price proposal evaluated the highest under the price ceiling; 
 2. The selected consultant can also be determined by a method of selecting the consultant, whose scores for offered price and experience, st aff, proposed mode of service provision and(or) 
other non-price condition(s) have the highest sum total as rated under the procedure in specified in 
the invitation. 
 3. The Republic of Armenia Government specifies the procedure for selection of consultant, including conditions for applying consultant selection method stipulated under this Article.   GPA/ACC/ARM/11 
 Page 45 
 
 
  44. Article 44:  Negotiations 
 
1. The provisions of draft procurement contract can be negotiated with the selected consultant; 
however, they cannot result in amending the descriptions of the procurement subject. 
 2. The negotiations with the consultant selected under the paragraph 1(1) of the Article 43 of this law:  evaluated the highest by non-price co nditions can result in reducing the offered price 
and/or amending the payments conditions. 
 
SECTION 6:  APPEALING THE PROCUREMENT PROCESS 
 
45. Article 45:  Right to appeal 
 1. Any person has the right to file a complaint against the actions (inact ion) and decisions of 
the Client, the evaluation committee and th e Procurement Complaint Review Board. 
 2. Relations pertaining to proc urement, including complaints, are not administrative relations 
and are regulated by the Republic of Armenia civil legislation. 
 3. As stipulated in this law, any person has the right:   (1) To lodge an extrajudicial complaint ag ainst the decisions of the Client and the 
evaluation committee to the Procurement Complain t Review Board before the conclusion of the 
contract; 
  (2) To appeal the decisi ons of the Authorized Body, the Procurement Complaint 
Review Board, the Client and th e evaluation committee in court. 
 
4. Any person having an interest in concluding a particular transaction and who has been 
harmed by an infringement of the Client, the ev aluation committee or the Procurement Complaint 
Review Board has the right to sue for damages at the court. 
 
46. Article 46:  Procurem ent complaint review board 
 1. The Authorized Body shall publish the list of members of the Procurement Complaint 
Review Board (hereinafter referred to as the Boar d).  All members of the Board must be Armenian 
citizens.  The members of the Board:   (1) Shall not be convicted for a crime linked to economic activities or against the state 
service, except cases when such conviction has be en lifted or nullified as stipulated by law; 
  (2) Shall possess sufficient level of knowle dge of the Republic of  Armenia legislation 
on procurement, which should be determined following the procedure specified by the Republic of Armenia Government. 
 
2. The members of the Board shall review the appeals with due care, diligence and in an 
impartial way.  The Board and the members of the Board, when implementing the competences 
stipulated in this law, are independent from the pa rticipants of the procurement process, including 
the Clients, as well as from the state bodies and local self-governments and officials.  When 
reviewing a complaint, they are neither representati ves of any participant in  the proceedings nor of 
the nominating organization and they are only obliged to apply and follow the law. 
 GPA/ACC/ARM/11 
Page 46  
 
3. The Board is an impartial and independent re view body with no interest in the outcome of 
the procurement and the members of which are secu re from external influence during the term of 
appointment.  The Bo ard shall include one representative of: 
  (1) The state administration bodies envisaged in the Republic of Armenia Constitution 
and laws; 
  (2) The Republic of Armenia urban communities;   (3) The Republic of Armenia Central Bank; 
 
 (4) Non-Governmental Organizations (Unions) registered in the Republic of Armenia, which have submitted a written application to the Authorized Body.  4. The individuals are appointed as members of  the Board for a period of 5 years.  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:   (1) Upon request of  the Board member; 
 
 (2) Upon court ruling on Board member’s incapability or limited capability;   (3) Renouncement of Armenian citizenship; 
 
 (4) A legally binding court sentence upon the Board member for an intentional offence; 
  (5) Death of the Board member,   (6) Undertaking practice as judge, prosecutor, associate judge or prosecutor,  
 (7) A major infringement by the Board member of his duties.  The infringement shall 
be considered major, if there is a court senten ce upon the Board member.  The major infringement 
shall mean in particular:  
(a) The performance of the Board memb er's functions in an discriminatory 
manner, including one-sided protection of interests of participants in appeal 
proceedings;  or 
 
(b) Failure to submit a request to be excluded from proceedings the 
circumstances of which render it impossible for the Board member to fulfil his/her duties. 
 
6. Removal from the list of arbiters shall be e ffected by the Prime Minister by means of an 
administrative decision   
47. Article 47:  Operation of the Board 
 1. A commission composed of three Board me mbers is formed to review an individual 
procurement complaint received.  For each indi vidual case, the members of the Commission are 
randomly selected on a rotational basis. 
  GPA/ACC/ARM/11 
 Page 47 
 
 
  2. The chairperson of the Commission must be a qualified lawyer with at least 5 years of 
practical professional experience.  The members of  the Commission must have tertiary education 
and at least 3 years work experience.  3. The Commission reviews the complaint and adopts a decision on behalf of the Board 
according to this law and other le gal acts.  The decisions of th e Commission are adopted by a 
majority vote of its members; all its members, in cluding 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 th e Commission has to exclude them.  Should the 
chairperson of the Commission have a conflict of interest in a cert ain procedure, he or she has to 
withdraw from the specific procedure and another me mber of the Board has to take over for this 
specific procedure.  Members of the Commission sign a statement on the absence of the conflict of 
interests.  4. The members of the Commission receive ad equate allowances; the Republic of Armenia 
government specifies the procedure for their remuneration. 
 5. Based on this law and for the purposes of implementing its requirements, the Board 
approves a procedure for it s operation by a majority vote of its members. 
 
48. Article 48:  Procedure for lo dging a complaint to the Board 
 1. A complaint to the Board sh all be lodged in writing, it shall be signed and contain: 
  (1) The name and the address of the applicant;  
 (2) The name and the address of the Client; 
  (3) The code and the subject matter of  the appealed procurement procedure; 
  (4) The object of the dispute and the request of the applicant; 
 
 (5) The factual and legal grounds of the complaint, the evidences; 
  (6) A copy of the document veri fying the payment of appeal fee; 
  (7) Other requisite information. 
 
2. If the applicant protests agai nst the award decision, he or she can only lodge his or her 
complaint within the standstill period of Article 9 of this law.  3. If the complaint does not meet the requirem ents under this paragraph, the Center for 
Procurement Support on behalf of the Board has to inform the applicant providing with a five-day 
period to correct the application. 
 4. The decision on a complaint is taken follow ing a procedure in which the applicant, the 
Client and all parties involved have the right to pa rticipate in the Board meetings and present their 
opinions. 
 
5. A written decision on the complaint, including justification for the decision, shall be taken 
and published no later than twenty calendar days after the receipt of the complaint.  The Board decision is legally binding.  GPA/ACC/ARM/11 
Page 48  
 
6. The Board has the right to adopt the following decisions: 
  (1) Take by way of inte rlocutory procedure, interi m measures with the aim of 
correcting the alleged infringement or preventing further damage to the interests concerned, including measures to suspend the procurement procedure or the im plementation of any decision 
taken by the Client or the evaluation committee; 
  (2) Set aside individual deci sions, including the contract  award decisions within the 
standstill period of Article 9 of this law, taken by the Client or the evaluation committee in the course of a procurement procedure; 
 
 (3) Declare an awarded contract ineffective:  
(a) If the Client has awarded a contract without prior publication of a contract 
notice according to this law; 
 
(b) In case of infringement of Article 9 or  Article 49(3) of this law, if this 
infringement has deprived the bidder concerned of the opportunity to institute a legal remedy before the conclusion of the contract and if this infringement is combined with the infringement of other provisions of the Republic of Armenia legislation on pu blic procurement and if this latter 
infringement has affected the chances  of the bidder concerned to get the 
contract. 
  (4) Notwithstanding the provisions of paragraph 3 of this Article, if the Commission considers, after examining all relevant aspects, th at overriding reasons of general interest impose 
the maintaining of the effects of the contract, it w ill order, instead, alternative sanctions, as follows: 
 
(a) The limitation of the contract perf ormance, through the reduction of its 
execution deadline, and/or 
 
(b) The application of a fine to the Client, of a maximum of 10 % of the value 
of the contract, 
 
 (5) In all the cases in which the sanction of  ineffectiveness provided  for in paragraph 6 
(3) of this Article cannot have retroactive eff ect, because the elimination of executed contractual 
obligations is impossible, the Co mmission will apply, in addition , the sanction provided for in 
paragraph 6(4)(a) of this Article. 
  (6) State about the lawfulness or unlawful ness of a procurement procedure of a Client 
after the conclusion of the contract .  That decision shall be the ba sis for damage claims in court; 
  (7) Decide, if a bidder has to be included in the list of bidders that have violated 
procurement business ethics. 
 7. If the Board decides in favour of the applican t, the Client is liable for recompensing to the 
applicant the damage caused and justified in  accordance with the established procedure. 
 
8. The oral hearing of complaint is open to the public and an announcement on the complaint 
is published in the Bulletin within three calendar da ys after its receipt. In cas e of complaints lodged 
against the procurement processes cont aining state, official or bank ing secrets, the announcement is 
sent to all potential bidders.   GPA/ACC/ARM/11 
 Page 49 
 
 
  9. Any person, whose interests ha ve suffered or can suffer due to actions served as the ground 
for lodging a complaint, is entitled to participate in  the review procedure by submitting, prior to the 
deadline for decision on  the complaint, a similar complaint to the Procurement Complaint Review 
Board.  The person, who did not pa rticipate in the review procedur e 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 Review Board has to be published within five calendar days after its adoption in the Bulletin and has 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 unknown - ha s not been disclosed - 
the amount of fee shall be one tenth of the Procur ement base unit.  The fee shall be transferred to 
the relevant account of the Procurement Support Center. 
 
49. Article 49:  Suspension of procurement procedure 
 
1. The appeal shall not automatically suspend th e contract award procedure.  The Board shall 
grant an interim measure required by an applic ant as long as it is appr opriate and necessary to 
prevent the pending damage until a final decision on the complaint is made. 
 
2. The Board has to take the probable conseq uences of the interim measure for all interests 
likely to be harmed, including the public interest, into account and may decide not to grant such measures where their negative consequences could ex ceed their benefits.  A decision not to grant 
interim measures shall not prejudice any other cl aim of the person seeking such measures. 
 
3. Until the Board adopts a deci sion on the suspension  of the award procedure, the Client does 
not have, in any situation, the right to conclude the contract prior to a re levant decision of the 
Board.  
SECTION 7:  PARTICULARITIES OF PROCUREMENT 
 
50. Article 50:  General particularitie s of procurement for public entities 
 
1. For procurement carried out by public entities in the Republic of Armenia:  
 (1) Procurement related relations are regulat ed by procurement procedures adopted by 
those entities;   (2) Procurement procedures, announcements  on arrangement of procurement processes, 
invitations, notices on signed cont racts exceeding the Procurement b ase unit are also published in 
the Bulletin; 
 
 (3) Extrajudicial review of procurement is  carried out in accordance with the procedure 
stipulated in the Section 6 of this law;  2. The procurement procedures specified in the paragraph 1 of this Article cannot contradict to 
the objectives and principles set out in the Article 3 of this law; wh ile in case of public undertakings 
included in the list appr oved by the Republic of Armenia Pu blic Services Regulatory Commission 
they should not contradict also to additional requirements set out by the Republic of Armenia Public Services Regulatory Co mmission, which shall monitor the implementation of such 
requirements following the procedure it has adopted. GPA/ACC/ARM/11 
Page 50  
 
51. Article 51:  Specific exclusions in case  of procurement for public undertakings  
 
1. The provisions of this law are not applicab le in case when a public undertaking intends to 
procure:  
 (1) Products that will be resold or leased to  third parties, provided  that the undertaking 
concerned enjoys no special or exclusive right to sell or to lease the subject of such contracts, and 
other entities are free to sell or to lease simila r products in the same conditions as the entity 
concerned;  (2) Goods, services or works for the purpose to perform relevant activities in a third 
country, in conditions not involving their use within the Republic of Armenia. 
  (3) Goods, services or works for the purpose to perform ot her activities than relevant 
activities.  In cases when the contr act is intended to cover several activities, including at least one 
relevant activity, but it is objectively impossible to determine for which activity the contract is 
principally intended, the procurement shall be made  according with the provisions of this law.  
 2. The Republic of Armenia government shall specify other specific exclusions of procurement for public undertakings not stipulated in this law, including those cases when this law 
is inapplicable.  In case of public  undertakings of the regulated pu blic services sector, the Republic 
of Armenia Public Services Regulatory Commi ssion shall specify special exclusions of 
procurement. 
 
52. Article 52:  Procurement for the Cent ral Bank of the Republic of Armenia 
 
1. In case of procurement for the Centra l Bank of the Republic of Armenia: 
 
 (1) The provisions of this law are inappl icable to procurement under the operational 
expenses of the Central Bank of  the Republic of Armenia; 
  (2) The competences reserved to the Repu blic of Armenia Government and the 
Authorized Body under this law are implemented by the Board of the Central Bank of the Republic 
of Armenia; 
  (3) The Board of the Central Bank of the Republic of Armenia shall specify the procedure for publication of information subject  to disclosure in accordance with law; 
 
 (4) The law is inapplicable to procurements  by entities founded by the Central Bank of 
the Republic of Armenia or entities with participation of the Central Bank of the Republic of Armenia;   (5) In addition:  
(a) The requirements set out for the Procurement Support Center as well as 
those stipulated under the Article 15(5) of this law shall be inapplicable; 
 
(b) Extrajudicial review of procurement is carried out in accordance with the 
procedure stipulated in th e Section 6 of this law; 
 
  (c) The Procurement Support Center re nders services to the Central Bank of 
the Republic of Armenia in cases stipulated by the d ecision of the Board of the Central Bank of the 
Republic of Armenia.   GPA/ACC/ARM/11 
 Page 51 
 
 
  53. Article 53:  Particularities of procu rement for state or community non-commercial 
(non-profit) organizations and entities with ov er 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 stat e or community non-commercial (non-profit) 
organizations and entities with over fifty percent of government or community shareholding.    
SECTION 8:  FINAL AND TRANSITIONAL PROVISIONS 
 
54. Article 54:  E ffectiveness of law 
 
 This law comes into force on the thirtieth day after its official promulgation. 
 
55. Article 55:  Transitional provisions 
 
1. The provisions of this law do not apply to procurement transactions originated and not 
terminated prior to the effectiv eness of this law as well as to signed and ongoing procurement 
transactions, if such transactions have not been brought into compliance with the requirements of 
this law; while the relations thereof are regulate d by legal acts effective at the time of concluding 
those transactions.  2. The Republic of Armenia "Law on Procur ement" AL-160-N, dated 6 December 2004 is 
regarded as null and void after the entry of this law into force. 
 
3. The legal acts and legal norms adopted in acco rdance with or pursuant to the Republic of 
Armenia "Law on Procurement" AL-160-N, dated 6 December 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 
1 January 2012. 
 
56. Article 56:  Final provisions 
 
1. If a deadline specified in this  law coincides with a non-busin ess day, then the deadline is 
the next business day following that day. 
 2. The Republic of Armenia Government shall specify the cases of conflict of interests under 
this law, including for consulting services.   3. In addition to publishing procurement announcements envisaged by this law in the Bulletin: 
 
 (1) The Client shall also publish them in the printed media until 1 January 2013;   (2) The Authorized Body shall disseminate (advertise) information on published 
announcements in the mass media. 
 
 
PRESIDENT OF THE REPUBLIC OF ARMENIA S. SARGSYAN 
__________