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            GUIDELINE OF THE EUROPEAN CENTRAL BANK         

of 16 September 2004         

on the procurement of euro banknotes

(ECB/2004/18)

(2004/703/EC)

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,

Having regard to the Treaty establishing the European Community, and in particular Article 106(1) thereof,

Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 16 thereof,

Whereas:

HAS ADOPTED THIS GUIDELINE:

TITLE I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Guideline:

Article 2

Scope of application

1.   The single Eurosystem tender procedure shall start at the latest on 1 January 2012.

2.   The procurement in any six-month period of banknotes denominated in euro that exceed a value of EUR 249 000, or any other value specified in Directive 2004/18/EC shall be subject to the single Eurosystem tender procedure set out in this Guideline.

3.   The value referred to in paragraph 2 shall be calculated by taking into account the combined costs of all the production requirements for euro banknotes during a single Eurosystem tender procedure, including ancillary costs such as, amongst others, those related to the destruction of euro banknotes production waste, but excluding VAT and transportation costs.

4.   The value of supply agreements shall not be calculated so as to avoid the application of this Guideline, nor shall any procurement requirement for a given amount of euro banknotes be divided with this same intention.

5.   The single Eurosystem tender procedure shall not apply to the research and development, including the design and origination, of euro banknotes. Such activities shall be subject to separate Eurosystem procurement rules.

TITLE II

PARTIES TO THE SINGLE EUROSYSTEM TENDER PROCEDURE

Article 3

Establishment and composition of the Procurement Committee

1.   A Procurement Committee shall be established, which shall consist of seven experts with relevant professional experience, appointed by the Governing Council acting on proposals from the ECB and the NCBs, selected from Eurosystem members qualified senior staff for predefined terms of office.

2.   The ECB shall provide secretarial support to the Procurement Committee.

Article 4

Procurement Committee code of conduct

1.   The ECB and the NCBs shall ensure that any member of their staff appointed to the Procurement Committee shall sign the declaration in Annex I to this Guideline.

2.   If a member of the Procurement Committee infringes the code of conduct in Annex I, the Governing Council shall (a) dismiss them from the Procurement Committee; (b) communicate this, as appropriate, for disciplinary purposes to their respective employer; and (c) appoint a successor to the Procurement Committee.

3.   The ECB and the NCBs shall introduce appropriate provisions in the legal documentation governing the employment relationships with their respective members of the Procurement Committee, enabling them, within the limits of applicable legislation, to monitor their Procurement Committee members’ compliance with the code of conduct in Annex I and sanction any non-compliance therewith, as appropriate.

Article 5

The role of the Governing Council and of the Executive Board

1.   The Governing Council, acting on a proposal from the Executive Board, shall keep the conditions for the start of the transitional period under review and it shall decide on the starting date for the transitional period.

2.   The Governing Council, acting on a proposal from the Executive Board, shall decide whether printing works are eligible in accordance with Articles 7 and 8 to participate in the single Eurosystem tender procedure.

3.   The Governing Council, acting on a proposal from the Procurement Committee via the Executive Board, shall adopt the internal rules of procedure, including the voting rules, of the Procurement Committee.

4.   Prior to any single Eurosystem tender procedure the Governing Council shall decide which Eurosystem members are to be designated as contracting authorities.

5.   The Governing Council, acting on a proposal from the Procurement Committee via the Executive Board, shall adopt the decision on the award of production orders.

6.   The Governing Council shall, at the request of a printing works that has participated in the single Eurosystem tender procedure in accordance with this Guideline, review any such decision prior to the submission of a complaint to the Court of Justice of the European Communities.

7.   The Governing Council, acting on a proposal from the Executive Board, shall ensure that the compliance of all parties with the rules and procedures laid down in this Guideline is audited.

Article 6

The ECB and the NCBs

1.   The NCBs, or the ECB acting on behalf of the NCBs, shall enter into supply agreements with the printing works that have been awarded production orders and shall monitor the due performance of such agreements.

2.   NCBs that have an in-house printing works and NCBs using public printing works may choose not to participate in the single Eurosystem tender procedure. In such cases these in-house or public printing works shall be excluded from the single Eurosystem tender procedure and they shall produce the euro banknotes allocated to their NCBs in accordance with the capital key. They may, however, decide to participate in the single Eurosystem tender procedure at a later date. Such a decision shall be irreversible.

3.   Prior to conducting a single Eurosystem tender procedure the ECB and the NCBs shall not provide any confidential information to printing works, including (a) public printing works; and (b) in-house printing works, unless their NCBs do not participate in single Eurosystem tender procedures.

Article 7

Eligibility of printing works

1.   Printing works, including in-house and public printing works, shall be eligible to participate in the single Eurosystem tender procedure on the following conditions:

2.   The independent external auditors shall audit compliance with the prohibition laid down in paragraph 1(d). The audited printing works shall annually report the independent external auditors’ findings to the Procurement Committee. To this end, all printing works participating in single Eurosystem tender procedures shall fully identify their income and costs and in particular provide information on: (a) the setting-off of any operating losses; and (b) whether an NCB or any public authority has provided the printing works with capital, non-refundable grants or loans on preferential terms; and (c) any forgoing of profits by an NCB or any public authority or the recovery of sums due; and (d) any forgoing by an NCB or any public authority of a normal return on public funds provided to the printing works; and (e) any compensation received for financial burdens or tasks imposed on it by an NCB or by any public authority.

3.   Joint ventures, consortia or any other cooperative ventures permitted by law, as well as printing works using subcontractors shall qualify for participation in the procurement procedures provided that:

4.   All printing works that have not yet been accredited in accordance with paragraph 1(c) and which are legally established in the EU may obtain information from the ECB relating to the requirements set out in this Article. Before releasing this information, or part of it, the Governing Council shall, acting on a proposal from the Executive Board, assess whether the printing works requesting information are bona fide. In particular, the Governing Council shall check, in accordance with any applicable national laws and regulations, the personal records of the owners and managers of the printing works concerned. If these checks reveal that any owner or manager of the printing works requesting information has been convicted for an offence concerning their professional conduct, such information shall not be released to the printing works requesting information. Bona fide printing works shall sign a confidentiality agreement provided by the ECB.

5.   The ECB shall inform all accredited printing works at least six months prior to the start of the single Eurosystem tender procedure of the Eurosystem’s euro banknote requirements as referred to in paragraph 1(c)(i) to (iv).

Article 8

Additional eligibility criteria for in-house and public printing works

1.   In-house and public printing works shall comply with the eligibility criteria laid down in Article 7 and with the following additional eligibility criteria:

2.   From the time that an NCB decides that its in-house or public printing works will participate in the single Eurosystem tender procedure, the representative(s) of such an in-house or public printing works shall resign from the Banknote Committee and its subgroups.

Article 9

Exclusion from the single Eurosystem tender procedure

1.   If, for a given procurement, tender bids appear to be abnormally low in relation to the euro banknotes to be provided, the Procurement Committee shall, before rejecting those tender bids, request in writing details of the relevant constituent elements and shall verify those constituent elements taking into account the explanations received. Where the Procurement Committee establishes that a tender bid is abnormally low on grounds that the tenderer has obtained State aid, the tender bid can only be rejected on those grounds alone after consultation with the tenderer where the latter is unable to prove, within a sufficient time limit fixed by the Procurement Committee, that the aid in question was granted legally.

2.   The Governing Council, acting on a proposal from the Procurement Committee via the Executive Board, or on a proposal from the Executive Board, shall disqualify a printing works from future participation in the single Eurosystem tender procedure if it fails to comply with the eligibility criteria set out in Articles 7 and 8. This exclusion shall remain in force until the eligibility criteria set out in Articles 7 and 8 are met. If an in-house or a public printing works that participates in the single Eurosystem tender procedure is disqualified, the production of the euro banknotes allocated to its NCB in accordance with the capital key shall be tendered in accordance with the single Eurosystem tender procedure.

3.   The Procurement Committee may reject tender bids if a printing works no longer complies with the eligibility criteria set out in this Guideline. The Procurement Committee shall adopt and document any decisions in this respect.

TITLE III

SINGLE EUROSYSTEM TENDER PROCEDURE

Article 10

Separation of tender procedures

The required quantity of each euro banknote denomination shall be the object of a separate single Eurosystem tender procedure.

Article 11

Restricted procedure

1.   The Procurement Committee shall apply a restricted procedure to the procurement of supply agreements for euro banknotes.

2.   The Procurement Committee shall publish its intention to initiate a restricted procedure in the Official Journal of the European Union. This notice shall include as a minimum:

3.   Printing works applying to participate in a restricted procedure shall submit together with their applications the following evidence relating to their sound financial status and professional standing:

4.   As regards paragraphs 3(b), (c), (d) and (e), the Procurement Committee may in exceptional circumstances require a printing works to submit sufficient evidence as specified in Article 45(3) of Directive 2004/18/EC.

5.   The time limit for the receipt of applications to participate shall not be less than 37 calendar days from the date on which the contract notice is published in the Official Journal of the European Union.

6.   The Procurement Committee shall simultaneously and in writing invite all printing works that have submitted documentation complying with the requirements of paragraph 3, the eligibility criteria laid down in Articles 7 and 8 and with the time limit in paragraph 5, to submit tender bids. The letter of invitation shall be accompanied by supporting documentation regarding the euro banknotes to be procured. It shall include as a minimum:

7.   Provided that it has been requested in good time, additional information relating to a specific procurement shall be supplied to all printing works not later than six calendar days before the final date fixed for the receipt of tender bids.

8.   The time limit for receipt of written tender bids shall not be less than 40 calendar days from the date of dispatch of the written invitation.

9.   Where urgency renders the time limits laid down in paragraphs 5 and 8 impracticable, the Procurement Committee may fix the following time limits:

10.   Tender bids may not be opened before the announced deadline for their receipt. All tender bids shall be opened at the same time and their contents shall be recorded in writing. At the time of opening more than half of the members of the Procurement Committee must be present.

11.   In addition to the case referred to in Article 9(3), tender bids received may be rejected: (a) if the deadlines are not respected; or (b) when not all the information or documents specified in the letter of invitation have been submitted. The Procurement Committee shall adopt and document any decisions in this respect.

Article 12

Exemptions

1.   The Governing Council may, acting on a proposal from the Procurement Committee via the Executive Board, or from the Executive Board, approve exemptions to the procedure laid down in Article 11, or to specific aspects of this procedure. Any such decision shall be duly motivated and fully substantiated in writing.

2.   Any such exemption shall only be allowed in one or more of the following circumstances:

Article 13

Award criteria

1.   The Procurement Committee shall evaluate and rank all tender bids against the economically most advantageous tender. This evaluation shall take into account the following criteria:

2.   The weighting of the criteria set out in paragraph 1 shall be such that the criterion of the tendered price per indicated production quantity shall be predominant.

3.   Prior to any single Eurosystem tender procedure the Governing Council may, acting on a proposal from the Executive Board, specify additional award criteria. Such additional criteria should ensure the stability and continuity of the supply of euro banknotes over the long term and avoid dependence on a sole supplier. Particularly, the Governing Council may determine the maximum volume of the total tendered amount that a bidder, including joint ventures, consortia or any other cooperative ventures permitted by law, can obtain.

Article 14

Award decision

1.   The Procurement Committee shall draw up a list of the eligible printing works that it proposes for production orders, indicating the respective amounts and denominations of euro banknotes to be printed by them. The reasons underlying this proposed list shall be clearly and properly documented. The Procurement Committee shall submit this list for approval to the Governing Council via the Executive Board. The Governing Council may refer the proposal back to the Procurement Committee for further explanations or for renewed consideration before taking a decision.

2.   The Governing Council shall take a decision on which printing works are awarded production orders, and on the respective amounts and denominations of euro banknotes to be produced by such printing works, no later than two months after the Procurement Committee has submitted a proposal to the Executive Board.

3.   Without prejudice to Article 6(3) the Governing Council’s decision shall be notified to the printing works participating in the single Eurosystem tender procedure and to all NCBs. They shall also be informed of: (a) the price of the successful tender bids; (b) the ranking of their respective tender bids; (c) the price range of all tender bids; and (d) any further relevant considerations that influenced the award decision.

Article 15

Review of award decision

1.   A printing works that has participated in the single Eurosystem tender procedure in accordance with this Guideline may request the Governing Council to review its decision. Such a request shall be made in writing within 15 calendar days of the date of dispatch of the Governing Council’s decision and shall include all supporting arguments and documentation.

2.   In such cases, the Governing Council, acting on a proposal from the Executive Board, shall either reconfirm the list of printing works awarded production orders, or refer the request back to the Procurement Committee for renewed consideration in the light of the procurement rules specified in this Guideline.

3.   The Governing Council’s final decision, either reconfirming or amending the list of printing works, shall be taken within 30 calendar days of the submission of the request and shall be duly motivated. Written notification thereof shall be given to the printing works concerned.

Article 16

Supply agreements

1.   Following the conclusion of a single Eurosystem tender procedure and once the time limits in Article 15 for review of the award decision have expired, the contracting authorities shall conclude supply agreements with the printing works that have been awarded production orders. These supply agreements shall comply with the minimum common features set out in Annex II to this Guideline. The Executive Board shall be provided with copies of the supply agreements entered into by the contracting authorities with the abovementioned printing works.

2.   A supply agreement shall be concluded for a period defined beforehand by the Governing Council, and the supply agreement shall specify the number of euro banknotes to be delivered periodically. The supply agreement shall allow the contracting authority to periodically amend the number of euro banknotes specified therein for production, however, such amendments shall remain within the range that is specified in the conditions set out in the invitation to tender (alternatively the delivery schedule can be amended).

TITLE IV

RULES APPLICABLE PRIOR TO THE TRANSITIONAL PERIOD

Article 17

Production of euro banknotes prior to the transitional period

Without prejudice to Article 6(2), prior to the start of the transitional period NCBs shall either produce the euro banknotes allocated to them in their in-house printing works or respective public printing works, or alternatively they shall award such production in accordance with applicable legislation to accredited printing works.

TITLE V

TRANSITIONAL PROVISIONS

Article 18

Participation of in-house or public printing works in the single Eurosystem tender procedure during the transitional period

1.   The procedures laid down in this Guideline shall apply during the transitional period to those NCBs that tender the production of the euro banknotes allocated to them.

2.   During the transitional period in-house or public printing works may participate in the single Eurosystem tender procedure on condition that:

3.   A decision to participate in the single Eurosystem tender procedure shall be irreversible.

Article 19

Procurement Committee composition and functioning during the transitional period

1.   During the transitional period the Procurement Committee shall consist of five members.

2.   During the transitional period the rules and procedures of this Title shall apply by way of derogation from those contained in Titles I, II and III. The remaining rules and procedures set out in this Guideline shall apply mutatis mutandis in the transitional period.

TITLE VI

FINAL PROVISIONS

Article 20

Entry into force

This Guideline shall enter into force on the 20th day following its publication in the Official Journal of the European Union.

Article 21

Review

The Governing Council shall review this Guideline at the beginning of 2008 and every two years thereafter.

Article 22

Addressees

This Guideline is addressed to the national central banks of participating Member States.

Done at Frankfurt am Main, 16 September 2004.

For the Governing Council of the ECB

The President of the ECB

Jean-Claude TRICHET            

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(1)OJ L 134, 30.4.2004, p. 114.

(2)OJ L 193, 18.7.1983, p. 1. Directive as last amended by Directive 2003/51/EC of the European Parliament and of the Council (OJ L 178, 17.7.2003, p. 16).

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ANNEX I

Declaration regarding compliance with the Procurement Committee Code of Conduct

Without prejudice to the [ECB’s][the NCB’s] binding code of conduct, [add name], a member of the Procurement Committee, undertakes to comply with the following code of conduct:

The signatory understands that in the event that they infringe any of these rules the Governing Council will: (i) dismiss them from the Procurement Committee; (ii) communicate this, as appropriate for disciplinary purposes, to their respective employer; and (iii) appoint a successor to the Procurement Committee.

Name

Date

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ANNEX II

Minimum common features for supply agreements

To the extent allowed by the applicable laws, supply agreements must comply with the following minimum common features.

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