RESTRICTED  WORLD TRADE  
ORGANIZATION  GPA/ACC/ARM/5 
21 May 2010 
 
 (10-2867) 
Committee on Government Procurement Original:   English 
  
 
 
ACCESSION OF THE REPUBLIC OF ARMENIA TO THE AGREEMENT  
ON GOVERNMENT PROCUREMENT 
Communication from the United States
 
 
 
 The following communication, dated 20 May 2010, is being circulated at the request of the Delegation of the United States.  
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UNITED STATES' COMMENTS ON ARMENIA'S DRAFT FINAL OFFER 
(GPA/ACC/ARM/2) 
 
 
 The United States commends the Republic of Armenia for the substance of its draft final offer 
(GPA/ACC/ARM/2, 20 April 2010) and for its res ponsiveness to earlier US requests.  The United 
States has the following comments and requests relating to Armenia's draft final offer.  1. With respect to Note 2 of Annex 1 relati ng to the coverage of the Central Bank of the 
Republic of Armenia: 
  (a) The Note provides that the " procurement under the op erational expenses of the 
Central Bank of the Republic of Armenia " is not covered under the Agreement on 
Government Procurement (Agreement).  Pl ease explain the types of procurement of 
the Central Bank that would be under the operational expenses of the Central Bank 
and thus excluded from the coverage of the Agreement, and also the procurement of 
the Central Bank that would be  covered under the Agreement. 
  (b) The United States suggests that Armenia consider whether a revision of Note 2 in 
accordance with the exception set out in Artic le II:3 of the Revised GPA Text (as of 
19 November 2007) would address Armenia's conc erns with regard to coverage of the 
Central Bank.  That Article provides that the Agreement does not apply to " the 
procurement or acquisition of fiscal agen cy or depository services, liquidation and 
management services for regulated financial institutions or services related to the 
sale, redemption and distribution of public debt, including loans and government 
bonds, notes and other securities ". 
 2. Since the description of the coverage of A nnex 3 specifies that it includes "public services, 
including utilities sector companies", is there a need  for Note 2 of Annex 3?  If so, please explain 
what is intended with that Note.  GPA/ACC/ARM/5 
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  3. The draft final offer provides for covera ge under Annex 3 of "state or community 
non-commercial (non-profit) organiza tions" and "commercial organiza tions with over 50 per cent of 
government or community shareholding", where th eir procurement is covered by the Law on 
Procurement.  Article 63 of the draft Law on Proc urement (GPA/ACC/ARM/3) provides that the draft 
law does not apply to " procurement for state or community non-commercial (non-profit) 
organizations and entities with over fifty percent of government or community shareholding ", unless 
otherwise specified by law.  Please explain wh ether any procurement of state or community 
non-commercial (non-profit) organizations and comme rcial organizations with over 50 per cent of 
government or community shareholding will be c overed under the Agreement;  and if so, please 
specify the extent to which the procur ement of such entities will be covered. 
 
4. In General Note 5, Armenia has indicated that  it would publish a list of procurement related to 
defense and national security on a website ( www.procurement.am
).  The United States would like to 
review the final list of such procurem ent in advance of Armenia's accession. 
 
 
UNITED STATES' COMMENTS ON ARMENIA'S DRAFT LAW ON PROCUREMENT 
(GPA/ACC/ARM/3) 
 
  The United States has the following comments on Armenia's Draft Law on Procurement 
(GPA/ACC/ARM/3, 20 April 2010). 
 1. The draft law uses the "procurement base unit" as the basis for various thresholds for 
competition, notice, and other procedural requirements throughout the draft law.  Article 2 of the draft 
law defines "Procurement base unit" as " an amount equal to one thousan d minimum wages expressed 
in the Republic of Armenia national currency ".  Since changes in the minimum wage will have a 
corresponding change in the various thresholds in  the draft law, how will Armenia provide for the 
application of the GPA thresholds to th e procurement covered by the Agreement? 
 2. Article 6:4 of the draft law addresses equal pa rticipation in procurement.  It indicates that 
legislation may provide that certain kinds of activities within Armenia " could be  conducted only by 
Republic of Armenia legal entities ".  What types of activities might be included under this provision? 
 3. Article 26:3 of the draft law lists informati on to be included in the invitation for bids.  
However, it is not clear whether it includes the t ype of procedures (open or selective tendering) and 
delivery dates, as required under Article IX:6 of the Agreement.  Please clarify. 
 
4. The draft law provides for mi nimum time-periods that are shorter than required by the 
Agreement.  For example, Article 27:2 provid es for only a minimum notice period of 15 calendar 
days after publishing an announcem ent on prequalification;  Article 51:4 requires only a five calendar 
day deadline when requesting quotations;  and Article 52:1:2 requires only a seven calendar day 
deadline for submission of bids to participate in  competitive negotiations after publication of the 
announcement.  How will Armenia provide for complia nce with the various time-periods required for 
procurement covered by the Agreement?  5. Article 29:4 of the draft law allows for amendm ent of a tender as little as five calendar days in 
advance of the deadline for submission of bids.  How will Armenia ensure th at adequate time is 
provided for such amendments, as contemplated by Article IX:10 of the Agreement? 
 6. Article 48:5 of the draft law allows for am endment of the tender invitation conditions during 
the second stage of two-stage bidding.  The amendm ent of the conditions at this stage of the 
procurement process could undermine the fairness of the initial competition.  Could Armenia consider  GPA/ACC/ARM/5 
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  limiting such amendments to those that do not ch ange the scope of the original invitation ( e.g., adding 
goods or services) and do not expand eligibility ( e.g., modifying an experience requirement)? 
 7. Article 61 of the draft law limits applicability  of the draft law to "relevant activities" (as 
defined in Article 2).  It also authorizes the Government of the Republic of Armenia to " specify other 
specific exclusions of procurement for pub lic entities not stipulated in this law ".  How will Armenia 
ensure that any new exclusion does not  reduce coverage under the Agreement? 
 
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