WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIORESTRICTED 
GPA/O/V/ISR/1 
9 March 2012 
 (12-1332) 
Committee on Government Procurement Original:   English/ 
 anglais/  inglés 
 
  
VERIFICATION OF THE RESULTS OF THE NEGOTIATIONS  
UNDER ARTICLE XXIV:7 OF THE AGREEMENT  
ON GOVERNMENT PROCUREMENT 
 
Communication from Israel
1 
 
 
 The following submission, dated 7 March 2012, is being circulated at the request of the 
Delegation of Israel. 
 
 
Comité des marchés publics  
 
 
 
VÉRIFICATION DES RÉSULTATS DES NÉGOCIATIONS 
AU TITRE DE L'ARTICLE XXIV:7 DE L'ACCORD 
SUR LES MARCHÉS PUBLICS 
 
Communication d'Israël1 
 
 
 La communication ci-après, datée du 7 mars 2012, est distribuée à la demande de la délégation d'Israël. 
 
 
Comité de Contratación Pública  
  
VERIFICACIÓN DE LOS RESULTADOS DE LAS NEGOCIACIONES 
PREVISTAS EN EL PÁRRAFO 7 DEL ARTÍCULO XXIV 
DEL ACUERDO SOBRE CONTRATACIÓN PÚBLICA 
 
Comunicación de Israel
1 
 
 
 La siguiente comunicación, de fecha 7 de ma rzo de 2012, se distribuye a petición de la 
delegación de Israel. 
                                                      
1 In English only./En anglais seulement./En ingles solamente.     GPA/O/V/ISR/1 
 Page 3 
 
 
  ISRAEL'S DRAFT RECTIFIED FINAL OFFER 
 
 To contribute to the conclusion of the nego tiations under Article XXIV:7 of the Agreement 
on Government Procurement, Israel subm its this Draft Rectified Final Offer. 
 
 This Draft Rectified Final Offer builds upon the Initial and the Revised Offers and 
accommodates a substantial portion of the specific requests made by GPA Parties.   In its Revised Offer, submitted on 13 Oct ober 2010, Israel has expanded its proposed 
coverage with the following additions: 
 
Annex 1 
 
 Small and Medium Business Agency 
 Geological Survey of Israel 
 The Administration for Rural Resident ial, Education and Youth Aliyah 
 Survey of Israel 
 
Annex 3 
 
 Environmental Services Company Ltd. 
 Arim Urban Development Ltd. 
 The Marine Trust Ltd. 
 The Dead Sea Preservation Government Company Ltd. 
 Eilat Foreshore Development Company Ltd. 
 Old Acre Development Company Ltd. 
 The Geophysical Institute Of Israel 
 Association of Better Housing 
 The Marine Education and Training Authority 
 Opening of procurement by entities operating in  the field of urban transport, except 
those operating in the field of bus services, to all GPA Part ies, under the condition of 
reciprocity 
 
 In the current Final Offer, Israel is propos ing the following improvements and modifications: 
 
 A new annex on Goods is presented. 
 The Note regarding Offset is revised , presenting a phase-out schedule of the 
mechanism. 
 Construction threshold for Annex 1 entities is set to decrease to 5,000,000 SDR, 
starting from the sixth year after coming into force for Israel of the revised GPA. 
 
 This final offer is subject to the following conditions: 
 
(a) Appropriate and satisfactory market access offers from GPA Parties representing, in 
the estimation of Israel, an appropriate ba lance of concessions relative to this final 
offer. 
 
(b) Israel reserves the right to withdraw, amend, or restrict this final offer at any point, 
until such time that the negotiations have concluded.  
 
N.B.:  Rectifications following the legal veri fication appear in underlining or strikeout. GPA/O/V/ISR/1 
Page 4  
 
  ISRAEL  
 
(Authentic in the English language only) 
  
ANNEX 1 
 
Central Government Entities wh ich Procure in Accordance 
With the Provisions of this Agreement 
 
 
Supplies  Threshold : 130,000 SDR 
 Services  (specified in Annex 4)  Threshold : 130,000 SDR 
 
Construction  (specified in Annex 5)  Threshold : 8,500,000 SDR 
  Starting from the sixth year 
after coming into force for Israel of the revised GPA: 
  5,000,000 SDR  
 
List of Entities : 
 House of Representatives (the Knesset) Prime Minister's Office 
Ministry of Agriculture and Rural Development 
Ministry of Communications Ministry of Construction and Housing Ministry of Education, Culture and Sport Ministry of National Infrastruc tures excluding Fuel Authority 
Ministry of the Environment 
Ministry of Finance 
Civil Service Commission Ministry of Foreign Affairs Ministry of Health (1) Ministry of Immigrants Absorption 
Ministry of Industry, Trade and Labour 
Ministry of the Interior Ministry of Justice Ministry of Social Affairs Ministry of Science and Technology Ministry of Tourism 
Ministry of Transport 
Office of the State Comptroller and Ombudsman Central Bureau of Statistics Small and Medium Business Agency Geological Survey of Israel 
The Administration for Rural Resident ial, Education and Youth Aliyah 
Survey of Israel    GPA/O/V/ISR/1 
 Page 5 
 
 
  Note to Annex 1  
 
 Ministry of Health - Excepted Products  
 
 - Intravenous solution 
 
 - Administration sets for transfusions   - Hemi-dialysis and blood lines  GPA/O/V/ISR/1 
Page 6  
 
  ANNEX 2 
 
Sub-Central Government Entities which Procure in Accordance 
With the Provisions of this Agreement 
 
 
Supplies  Threshold : 250,000 SDR 
 Services  (specified in Annex 4)  Threshold : 250,000 SDR 
 
Construction  (specified in Annex 5)  Threshold : 8,500,000 SDR 
  List of Entities : 
 
Municipalities of Jerusalem, Tel-Aviv and Haifa 
 Local Government Economic Services Ltd.  GPA/O/V/ISR/1 
 Page 7 
 
 
  ANNEX 3 
 
All Other Entities which Procure in Accordance 
With the Provisions of this Agreement 
 
 
Supplies  Threshold : 355,000 SDR 
 Services  (specified in Annex 4)  Threshold : 355,000 SDR 
 
Construction  (specified in Annex 5)  Threshold : 8,500,000 SDR 
  List of Entities : 
 
Israel Airports Authority 
Israel Ports Development and Assets Company Ltd. (1) Ashod Port Company Ltd. (1) Haifa Port Company Ltd. (1) Eilat Port Company Ltd. (1) Israel Railways Ltd. (1) 
Israel Broadcasting Authority 
Israel Educati onal Television 
Israel Postal Company Ltd. The Israel Electric Corp. Ltd. (1) (2) Mekorot Water Co. Ltd. 
Sports' Gambling Arrangement Board 
The Standards Institution of Israel National Insurance Institute of Israel Environmental Services Company ltd. Arim Urban Development Ltd. 
The Marine Trust Ltd. 
The Dead Sea Preservation Government Company Ltd. Eilat Foreshore Development Company Ltd. Old Acre Development Company Ltd. 
The Geophysical Institute Of Israel 
Association of Better Housing The Marine Education and Training Authority All entities operating in the field of urban transpor t, except those operatin g in the field of bus 
services (3)  
 
Notes to Annex 3  
 
1. Procurement of ca bles is excluded. 
 
2. Excluded products:  cables (H.S. 8544), tran sformers (H.S. 8504), disconnectors and switchers 
(H.S. 8535-8537), electric motors (H.S. 85012099, 85015299, 85015199, 85015290, 85014099, 
85015390).  GPA/O/V/ISR/1 
Page 8  
 
  3. With regard to procurement by entities operati ng in the field of urban transport, except those 
operating in the field of bus services , Israel is ready to open such proc urement is open to all Parties to 
the Agreement under the condition of mutual reciprocity.  GPA/O/V/ISR/1 
 Page 9 
 
 
  ANNEX 4 
 
Goods  
 
 
 This The Agreement applies to the covers procurement of all goods procured by the entities 
listed in Annexes 1 through 3, unless otherw ise specified in this the Agreement. 
 GPA/O/V/ISR/1 
Page 10  
 
  ANNEX 5 
 
Services  
 
 
 Of the Universal List of Services, as cont ained in document MTN.GNS/W/120, the following 
services are included covered: 
  
CPC   Description  
 
6112, 6122, 633, 886 Maintenanc e and repair services 
 641   Hotel and similar accommodation services  
642-3   Food and beverage serving services 
 712   Land transport services   73   Passenger transportation services   
7471   Travel agency and tour operator services 
 7512   Commercial courier servic es (including multi-modal) 
 752   Telecommunications services 
 
812 and 814  Financial services (insurance services, banking and in vestment services) 
 821   Real estate services i nvolving own or leased property 
 83106    Leasing or rental services c oncerning machinery and equipment without 
to 83109   operator only 
 83203    Leasing or rental services concerning personal and household goods only 
to 83209  
84   Computer and related services 
 861   Legal services (advisory services  on foreign and international law only) 
 862   Accounting, auditing and bookkeeping services  
863   Taxation services (e xcluding legal services) 
 864   Market research and public opinion  865-6   Management consulting 
 
867 Architectural services;  engineering services and integrated engineering 
services, urban planning and landscape arch itectural services;  related scientific 
and technical consu lting services;  technical testing and analysis services 
  GPA/O/V/ISR/1 
 Page 11 
 
 
  871   Advertising services 
 87304   Armoured car services  874, 82201-82206 Building-cleaning services and property management services 
 
876   Packaging services  8814   Services incidental to forestry and logging, including forest management 
 
883   Services incidental to mining , including drilling and field services 
 88442   Publishing and printing servic es on a fee or contract basis 
 887   Services incidental to energy distribution 
 
924   Adult education services  929   Other education services  94   Sewage and refuse disposal;  sanitation and similar services 
 
 
Note to Annex 5  
 
 The offer coverage regarding se rvices (including construction) is  subject to the limitation and 
conditions specified in Israel's schedule of the GATS. 
 GPA/O/V/ISR/1 
Page 12  
 
  ANNEX 6  
 
Construction Services  
 
 
Definition : 
 
 A construction services contract is a contract  which has as its objective the realization by 
whatever means of civil or building works, in the sense of Division 51 of the Central Product 
Classification. 
 
 Threshold :   For entities listed in ANNEX 1: 8,500,000 SDR;  Starting from the sixth 
year after coming into force for Israel of the revised GPA:  5,000,000 SDR; 
 
For entities listed in ANNEXES 2 and 3: 8,500,000 SDR 
  
List of construction se rvices offered covered:  
 
CPC   Description  
 
511   Pre-erection work at construction sites 
 512   Construction work for buildings 
 
513   Construction work for civil engineering  514   Assembly and erection of prefabricated construction  515   Special trade construction work 
 
516   Installation work  517   Building completion and finishing work  
518   Renting services related to equipment for construction  GPA/O/V/ISR/1 
 Page 13 
 
 
  ANNEX  7 
 
General Notes 
 
 
1. The Agreement shall not apply to contracts proc urement awarded for purposes  of re-sale or hire 
to third parties, provided that the contracting procuring entity enjoys no special or exclusive right to sell 
or hire the subject of such contracts procurement an d other entities are free to sell or hire it under the 
same conditions as the cont racting procuring entity. 
 
2. The Agreement shall not apply to contracts pr ocurement for the purchase of water and for the 
supply of energy and of fuels for the production of energy. 
 GPA/O/V/ISR/1 
Page 14  
 
  NOTE 
 
Offset  
 
 
 Having regard to general polic y considerations, Israel may ope rate provisions which require 
the limited incorporation of domestic content, offset  procurement or transfer of technology, in the 
form of objective and clearly defi ned conditions for participation in procedures for the award of 
contracts procurement, which do not di scriminate between other Parties. 
 
 This shall be done under the following terms: 
 
(a) Israel shall ensure that its entities indicat e the existence of such conditions in their 
tender notices and specify them clearly in the contract documents. 
 
(b) Suppliers will not be required to purchase goods that are not offered on competitive 
terms, including price and quality, or to take  any action which is not justified from a 
commercial standpoint. 
 
(c) Upon entry into force for Israel of the revised GPA, for contracts procurement above 
the threshold of 3 million SDR, offsets in an y form may be required up to 20 per cent 
of the contract. 
 
(d) Starting from the sixth year after coming into  force for Israel of the revised GPA, for 
contracts procurement above the threshold of 3 million SDR, offsets shall no longer 
be applied by entities covered under Annex es 1, 2 and 3, excluding the following 
entities which will continue requiring offset up to 20 per cent of the contract, until the 
beginning of the ninth year, after which they will apply offset up to 18 per cent: 
 
Annex 1 
 
Ministry of Agriculture and Rural Development 
Ministry of Construction and Housing 
Ministry of National Infrastruc tures excluding Fuel Authority 
Ministry of Finance Ministry of Health Ministry of the Interior 
Ministry of Transport 
 
Annex 2 
 
Local Government Economic Services Ltd.  
Annex 3 
 Israel Airports Authority Israel Ports Development and Assets Company Ltd. 
Association of Better Housing 
Ashod Port Company Ltd. 
Haifa Port Company Ltd. Eilat Port Company Ltd. Arim Urban Development Ltd.  GPA/O/V/ISR/1 
 Page 15 
 
 
  Eilat Foreshore Development Company Ltd. 
Old Acre Development Company Ltd. Israel Railways Ltd. Israel Postal Company Ltd. The Israel Electric Corp. Ltd. 
Mekorot Water Co. Ltd. 
All entities operating in the field of urban transport, except those operating in the field of bus services 
 
(e) Starting from the eleventh year after coming into force for Israel of the revised GPA, 
for contracts procurement above the threshold of 3 million SDR, offsets shall no 
longer be applied by entities covered unde r Annexes 1, 2 and 3, excluding the 
following entities which will continue requiring offsets up to 18 per cent of the contract: 
 
Annex 1 
 Ministry of National Infrastruc tures excluding Fuel Authority 
Ministry of Finance Ministry of Health Ministry of Transport 
 
Annex 2  Local Government Economic Services Ltd.  
Annex 3 
 Israel Airports Authority Israel Ports Development and Assets Company Ltd. 
Ashod Port Company Ltd. Haifa Port Company Ltd. 
Eilat Port Company Ltd. 
Israel Railways Limited Israel Postal Company Ltd. The Israel Electric Corp. Ltd. Mekorot Water Co. Ltd. 
 
(f) Starting from the sixteenth year after co ming into force of the revised GPA, the 
requirement for offsets will not be applie d with regard to covered procurement. 
  
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