WRITTEN QUESTION E-2814/97 by Reino Paasilinna (PSE), Riitta Myller (PSE), Pertti Paasio (PSE), Maj Theorin (PSE), Tommy Waidelich (PSE), Carole Tongue (PSE), Dietrich Elchlepp (PSE) and Philippe De Coene (PSE) to the Commission (1 September 1997)

Subject: Process for the selection of technical assistance consultants in the Commission

The EU implements a development programme which aims at improving the economy and living conditions in the less developed countries. The projects calling for technical assistance are run by consultancy companies or group of companies selected by the Commission.

The selection process varies greatly within the Commission. Each DG seems to have its own selection procedure, which is rather unclear and definitely not transparent. The practice in DG I has drawn our attention, as we believe it does not secure the selection of the best candidate. The consequences will be seen as failures in achieving the set targets and thus as wastage of funds. In the process, a minimum qualifications limit is set for technical tenders. Thereafter, the financial tenders of companies who have at least the required minimum points for their technical tender are opened, and the cheapest bid wins the contract. No credit is given for the quality of a technical tender exceeding the minimum level.

The system favours countries where the salary levels are low. It encourages less experiences and qualified personnel to reach just the minimum qualification level. Less qualified teams also increase the workload of the Commission in monitoring the project. Development projects usually deal with very difficult technical, socio-economic and economic issues. Hence they require extremely qualified and experienced teams to be able to cooperate smoothly with the project stakeholders and find solutions to the complicated problems involved. High quality serves the interest of the EU and in particular the recipient country.

What will the Commission do to create a system which would give more weight to the technical tender in relation to the financial tender, would ensure due credit to candidates with high-calibre teams and yet lead to more cost-effective project implementation?

Answer given by Mr Marín on behalf of the Commission (14 October 1997)

The selection of consultants to provide technical assistance services under contract on Community development aid programmes follows rules laid down in Title IX of the Financial Regulation applicable to the general budget of the Community ((OJ L 356, 31.12.1977. )) and elsewhere.

Article 118(1) of the Financial Regulation states that a restricted invitation to tender must be issued for service contracts. The Commission shortlists candidates on the basis of their qualifications, experience and independence, and their availability for a particular job.

In accordance with Article 117 of the Financial Regulation, service contracts are awarded to the firm whose tender is 'economically the most advantageous'. The price factor is taken into account after a rigorous selection process using criteria laid down in the project specifications, including technical merit, quality and performance schedule.

The technical criteria laid down in the tender specifications include detailed stipulations for consultants' qualifications. These job profiles invariably specify highly-qualified staff with a high level of academic achievement plus a track record in the project area or geographical region concerned.

Tenders are scrutinised and ranked on technical merit and the contract is awarded to the consultant whose bid offers the best combination of technical quality and cost-effectiveness. Contracts are therefore not awarded automatically on price, but in the light of a rounded assessment of the best economic value on offer.