Translation in English is for informative purposes only. Legally binding is text in Latvian.

APPROVED with the Minutes No. VeA 2013/10/ERAF-01 of the sitting of the Procurement commission of the Ventspils University College of 16 th of April, 2013 NEGOTIATED PROCEDURE REGULATIONS Development of simple renovation documentation for the back-up structure of the radio-telescope RT-32 within the Project (ICSP Centre) Development of national research centre of information, communication and signal processing technologies" (Agreement No2011/0044/2DP/2.1.1.3.1/11/IPIA/ VIAA/006)" Identification No. VeA2013/10/ERAF VENTSPILS 2013 Translation in English is for informative purposes only. Legally binding is text in Latvian. 1

I GENERAL INFORMATION DEFINITIONS Subcontractor Procurement procedure Procurement contract Interested economic operator Procurement commission Candidate Tenderer Contractor Project Subcontractor is a person involved or contracted by the Candidate/Tenderer or his subcontractor performs services necessary for fulfilment of public service contract concluded with the Contracting authority either for the Candidate/Tenderer or other subcontractor. Negotiation procedure according Section 62, Paragraph 1, Clause 2 of the Public Procurement Law Service contract according procurement subject defined in Clause 2.1 of the Regulations Person interested to participate in the Procurement procedure. Procurement Commission established by the order No32/as of Ventspils University College dated 16.04.2013 Person participating in the negotiated procedure until submission of the tender. Person who has submitted a tender Applicant who is declared as the winner of the Procurement procedure and to whom the rights to conclude the Procurement contract are allotted. Project (ICSP Centre) Development of national research centre of information, communication and signal processing technologies" cofinanced by the European Regional Development Fund (ERDF) (Agreement No. 2011/0044/2DP/2.1.1.3.1/11/IPIA/VIAA/006). 1. Contracting authority Contracting authority Ventspils University College (representing Engineering Research Institute Ventspils International Radio Astronomy Centre ) Legal address 101 Inženieru Street, Ventspils, LV-3601, Latvia Tax registration 90000362426 No. Contacts Telephone +371 636 28303, fax +371 636 29660, Kristine.Purina@venta.lv Contact person Mrs. Kristīne Puriņa 2. Subject of the Procurement contract and CPV code 2.1. The subject of the Procurement is development of simple renovation documentation (design), designer s supervision services and consultations during renovation works of the back-up structure of the radio-telescope RT-32 within the Project (ICSP Centre) Development of national research centre of information, communication and signal processing technologies" co-financed by the European Regional Development Fund (ERDF) (Agreement No. 2011/0044/2DP/2.1.1.3.1/11/IPIA/VIAA/006). 2

2.2. The Contracting authority has rights to refuse from designer s supervision services and consultations during renovation works in any stage of the Procurement procedure and during execution of the Procurement contract. 2.3. The Contractor is responsible for development of documentation according requirements of legislative enactments of the Republic of Latvia and requirements of the Construction board. In case the Contractor considers that in order to perform respective works it is necessary to develop documentation (design) for simplified reconstruction he submits corresponding substantiation to the Contracting authority and the Contracting authority during negotiations agrees with Candidates on corrections of the Procurement subject. In case necessity for simplified reconstruction documentation occurs during the Procurement contract execution period, the Contracting authority has rights to amend the subject of the Procurement contract by making amendments in the Procurement contract. 2.4. Object Radio-telescope RT-32, Viraki, Irbene, Ance parish, Ventspils district, Latvia 2.5. CPV code 71000000-8, 71327000-6. 2.6. Negotiated procedure consists of following stages: 2.6.1. Stage 1: Selection of Candidates. Participation in selection of Candidates is allowed for any Candidate which submits an application for negotiated procedure. In this stage Candidates for further participation in the negotiated procedure shall be selected. When submitting an application for the negotiated procedure the Candidate submits also informative technical and financial proposals. 2.6.2. Stage 2: Negotiations. Only Candidates invited are allowed to participate in this stage. 2.6.3. Stage 3: Selection of proposals. Submission of the proposals and selection of the proposal with the lowest price. Only Candidates invited are allowed to participate in this stage. 3. Justification of the application of the negotiated procedure 3.1. According Section 62, Paragraph 1, Clause 2 of the Public Procurement Law the Contracting authority may award their public contracts by negotiated procedure, after publication of a contract notice, when the procurement subject is services, inter alia services within category 6 of Annex II of the Law, and intellectual services (such as services involving the design of works), insofar as the nature of the services to be provided is such that contract specifications cannot be established with sufficient precision to permit the award of the contract by selection of the best tender according to the rules governing open or restricted procedures. The Object to be renovated is unique due to its technical parameters and functions. Not only in Latvia but also in Europe and in the whole world there is a restricted competence and number of potential suppliers of the requested services. The Procurement subject is designing services and consultations of specific nature, and due to this it is not possible to foresee all the requirements 3

necessary for the execution of the contract. Therefore the Contracting authority finds it useful to organize negotiated procedure with publication of a contract notice to discuss conditions for contract execution with market participants and at the same time to ensure competition, effective use of financing and receipt of a good quality and effective service. 3.2. Character of the requested services does not allow to foresee precisely requirements for execution of the contract due to the following reasons: 3.2.1. The Contracting Authority has restricted scope of information about technologies of renovation works and insufficient competence to prepare a technical specification which could not be amended and which would allow tenderers to prepare qualitative and comparable proposals. There are also several unclear issues and/or alternative approaches for execution of the service. During negotiations it is foreseen to define in details requirements of the technical specification and to establish equal requirements for execution of the service in order to find the most suitable solutions for the Contracting authority. 3.2.2. The Contracting Authority is not able to define service execution order and procedure necessary to achieve the target, int.al. it is not able to define scope and content of inspections and tests of the back-up structure necessary before starting of designing works, role and functions of experts involved in execution of service, interim results during preparation of documentation to accepted by the Contracting authority. Stages of the service could be executed very differently from the point of view of costs and quality. The Contracting authority also has no information to what extent tenderers are willing to use inspection data, calculation models and other information prepared by the Contracting Authority. 3.2.3. Designers could offer different technologies for renovation works of the backup structure therefore the Contracting Authority at this stage is not able to define requirements for this technology. During negotiations and consultations with tenderers it is planned to find a solution most suitable for the Contracting authority. 3.2.4. Tenderers probably could have a specific contract conditions, it may happen that typical contract conditions are not applicable and appropriate for these specific services. Therefore the Contracting authority is going also to specify contract conditions during negotiated procedure. 4. Execution time and place of the Procurement contract 4.1. Execution time of the Procurement contract: simple renovation documentation (design), of the back-up structure of the radio-telescope RT-32 shall be completed and submitted approximately within 4 months starting from the day when the contract is signed. Design supervision services and consultations during renovation works shall be performed until completion of renovation works but not longer than 31th of July, 2015. The Contracting authority shall agree with Candidates on exact execution time of the Contract during negotiations. 4.2. Place: Radio-telescope RT-32, Viraki, Irbene, Ance parish, Ventspils district, Latvia. 4

5. Reception of the Regulations, procedure of exchange of information and requiring additional information 5.1. The regulations are available in the home page of the Contracting Authority: www.venta.lv in section: http://venta.lv/par-vea/iepirkumi or they can be received free of charge at Ventspils University College, Room D307, 101 Inženieru Street, Ventspils by project co-ordinator Mrs.Kristīne Puriņa each working day from 9:00 until 12:00 and 14:00 until 16:00, by contacting in advance. 5.2. The exchange of information among the Contracting authority, interested economic operators and Candidates shall be carried out in a written form via post, fax, e-mail or by handing over personally. The information sent by fax or by e-mail without an electronic signature shall have legal power if the information shall be sent also by post or the reception of the information shall be confirmed via fax or e-mail of the contact person. 5.3. The interested economic operators have rights to require additional information on the Candidate selection requirements. If the information is requested in due time, then the additional information on Regulations shall be provided by the Procurement commission as soon as possible, but not later than four days before the application submission deadline. 5.4. The Procurement commission sends to the interested economic operator the additional information and publishes it in the home page: www.venta.lv together with the asked question. 5.5. The interested economic operators shall independently follow information on possible amendments in the Regulations, explanations and replies to questions made by the interested economic operators published in the Internet home page of the Contracting authority www.venta.lv. The Contracting authority bears no responsibility if any of the interested economic operators has not taken into account the Contracting authority s publications in the home page on Internet www.venta.lv during the Procurement procedure. 5.6. Site visit is possible for all interested economic operators on working days. Application for the site visit shall be made at least 5 (five) working days before to the contact person mentioned in Clause 1. Address of the Object: Radio-telescope RT-32, Viraki, Irbene, Ance parish, Ventspils district, Latvia. 6. Submission and opening of the applications 6.1. The application shall be submitted in person, delivered by courier or mail or e-mail to the contact person mentioned in Clause 1 at 101 Inženieru Street, Ventspils, Room D307 until 20 th of May, 2013,16:00 each working day 9.00 12.00 and 14.00-16.00. 6.2. After the date specified in clause 6.1. of the Regulations, the applications of the Candidates shall not be accepted or returned unopened in case of delivery by courier or post. 6.3. The Procurement Commission shall open applications in a meeting of the Procurement Commission after the applications submission deadline. 7. Amending and withdrawing of the application 7.1. The Candidate may withdraw the application before the application submission deadline by a representative of the Candidate arriving in person at the application storage place in room D307 at 101 Inženieru Street, Ventspils and submitting a letter 5

signed by a person entitled to represent the Candidate for withdrawing the application, as well as submitting a document confirming rights of representation (a statement issued by the Register of Enterprises, a power of attorney or other document confirming rights of the person to represent the Candidate) or by sending a notification of withdrawal to the Contracting authority by post. Withdrawal of the application is of unconditional nature and excludes the Candidate from further participation in the Procurement procedure. 7.2. The Candidate may amend the application before the submission deadline by arriving in person at the proposal storage place in room D307 at 101 Inženieru Street, Ventspils and replacing the application or by sending a new application to the Contracting authority by courier or post. In case of amending the application, the moment of submitting the latest application shall be considered as the time of submission of the application. 8. Procedure for drawing up the tender 8.1. The candidate may submit an application in paper form or electronically, signed with secure electronic signature that contains a time stamp. 8.2. If the candidate has made an application in paper form, application must be submitted in 2 (two) copies, of which 1 (one) is original and 1 (one) copy of the original. The application shall be accompanied by the scanned application in.pdf format stored on data storage device (CD, DVD or USB storage device) and shall contain the full application, identical to the issued paper application form. The scanned application shall ensure that the application is scanned in a way that allows understanding and capturing of scanned documents in one place. The application (one original and one copy, 1 electronic copy) shall consist of: 8.2.1. Application for the negotiated procedure (according to Annex No. 2 Application ); 8.2.2. Documents for selection of the Candidates; 8.2.3. Informative technical tender; 8.2.4. Informative financial tender; 8.2.5. The electronic copy on data storage device. 8.3. If the candidate has made application in electronic format, it must be issued in 1 (one) original doc, docx, xls, xlsx, ODF or PDF format by sending to the e-mail address of contact person to the contact person mentioned in Clause 1 or by submitting the application on data storage device (CD, DVD or USB drive) drawn up according to Clause 8.2. The Application may be submitted in electronic format (doc, docx, xls, xlsx, ODF or PDF format) that is signed by a secure electronic signature that contains a time stamp. The electronic copy shall be drawn up sequentially and explicit so that it is easy to understand and read. 8.4. In case application is issued in paper according to Clause 8.2., the original and copy of the application shall be submitted in separate closed packages bearing an indication ORIGINAL or COPY and placed together in a single packaging indicating: 8.4.1. Name and address of the Contracting authority; 8.4.2. Name and address of the Candidate; 8.4.3. Note Application for negotiated procedure Development of simple renovation documentation for the back-up structure of the radio-telescope RT-32 within the Project (ICSP Centre) Development of national research centre of information, communication and signal processing 6

technologies" (Agreement No2011/0044/2DP/2.1.1.3.1/11/IPIA/ VIAA/006)", Identification No. VeA2013/10/ERAF 8.4.4. Note Do not open until the application submission deadline 20th of May, 2013 at 16:00! 8.5. In case application is issued in electronic version according to Clause 8.3., if application is submitted electronically by e-mail, it shall state: 8.5.1. Name and address of the Contracting authority; 8.5.2. The Candidate's name and address; 8.5.3. The mark: Application for negotiated procedure Development of simple renovation documentation for the back-up structure of the radio-telescope RT-32 within the Project (ICSP Centre) Development of national research centre of information, communication and signal processing technologies" (Agreement No2011/0044/2DP/2.1.1.3.1/11/IPIA/ VIAA/006)", Identification No. VeA2013/10/ERAF 8.5.4. The mark "Open only in the meeting of the procurement commission." 8.6. If the single packaging fails to be drawn up according to requirements of Clauses 8.4 and 8.5, the Procurement commission shall not be held liable for not receiving it or early opening. 8.7. The application shall be drawn up in Latvian. In case any of original documents is drawn up in other language, it shall be accompanied by translation into Latvian certified by the Candidate or by the translator. The Candidate has rights to draw up the technical tender in English without translation into Latvian. 8.8. In case application is issued in paper according to Clause 8.2., the Candidate shall sign the application in the designated places for signature and submit in writing and single binding so that the documents cannot be separated. Pages of the binding shall be numbered and match the included table of contents. The number of pages shall be confirmed by signature of the Candidate or person authorized by the Candidate. 8.9. The application shall be signed by a person who has rights of representation or his authorised person. If the documents are signed by the authorised person the application shall contain the corresponding power of attorney (or copy thereof) confirming rights of this person to sign the corresponding documents. 8.10. Documents included in the application shall be clearly decipherable and without corrections. In case the Procurement commission finds any discrepancies between numeric values in figures and words, the numeric value in words shall prevail. 8.11. The original and copies of the application shall bear a clear reference ORIGINAL and COPY. In case the Procurement commission finds any discrepancies between the information provided in the original and copies of the tender, the information provided in the original thereof shall prevail. 8.12. In case application is issued in paper according to Clause 8.2., the Candidate shall confirm authenticity of the copies of the application and submitted documents according to the requirements of the Law on Legal Force of Documents and of the Cabinet Regulations No. 916 of September 28, 2010 Procedure for Drawing Up and Execution of Documents. In case the Procurement commission has any doubts regarding the authenticity of submitted copies of documents, it shall request the Candidate to present original document or submit a notarial certified copy of the document. II REQUIREMENTS FOR SELECTION OF THE CANDIDATES 7

9. Requirements for selection and exclusion of Candidates, the documents to be submitted Requirements for Candidates Documents to be submitted 9.1. Application for the negotiated procedure (in accordance with the Annex No. 2 Application ) Application for the participation in the negotiated procedure in accordance with the Annex No. 2 to the Regulations. 9.2. The application shall be signed by a person who has rights of representation or his authorised person. If the documents are signed by the authorised person the application shall contain the corresponding power of attorney (or copy thereof) confirming rights of this person to sign the corresponding documents. 9.3. The Candidate is allowed to base on resources of other entrepreneurs (Subcontractors) in relation to Candidate s economic and financial state, as well as technical and professional skills if it is necessary for the fulfilment of the Procurement contract in respect to the legal nature of mutual relationships. In such case the Candidate shall prove to the Procurement commission that he will have the necessary resources and submit an agreement on handing over of the necessary resources to the Candidate. 9.4. The Procurement Commission shall exclude the Candidate from participation in the Procurement procedure if any provision for exclusion set in the section 39, paragraph one of the Public Procurement Law applies either to the Candidate or Subcontractor (which performs at least 20% of the Procurement contract value), or participant of the association of persons (if Candidate is an association of persons) or Notice on the Candidate s, Subcontractors (if such exist) on which the Contracting authority bases on to confirm his correspondence to the requirements set in the Regulations; participants of association of persons if the Candidate is an association of persons; officials having rights of representation during the period of application submission issued by the Register of Enterprises of the Republic of Latvia or analogue institution abroad or power of attorney confirming the rights of this person to sign the corresponding documents. The notice shall be issued not earlier than one month before the day when the application is submitted. The list of all the Subcontractors (if such exist) indicating which parts of the Procurement contract are handed over to the corresponding Subcontractor. Agreement with the Subcontractor and person on who s skills the Candidate bases on the handing over of the necessary resources to the Candidate, permission to base on technical and/or professional skills of this person and consent to sign the Procurement contract together with the Candidate in case the Procurement contract is signed with the Candidate. 8

participant of partnership (if Candidate is a partnership) or persons indicated by the Candidate on which skills the Candidate bases on to confirm that his qualification complies with requirements stated in the notice on contract or documents of procurement procedure: 9.4.1. Candidate (or other persons mentioned in Clause 9.4 of the Regulations) or a person who has representation, decision making or supervision rights of the Candidate (or other persons mentioned in Clause 9.4. of the Regulations) pursuant to a court judgment or public prosecutor decision, which has come into effect during last 3 (three) years before application submission date has been found guilty of committing a criminal offence of tax and similar payments evasion, corruption, fraudulent activities in the field of finance, legalisation of illegally acquired resources (money laundering) or participation in a criminal organisation (section 39, paragraph 1, clause 1 of the Public Procurement Law); 9.4.2. Candidate (or other persons mentioned in Clause 9.4 of the Regulations) pursuant to a decision of a competent authority or a court judgment, which has come into effect during last 3 (three) years before application submission date has been found guilty of a significant violation of employment rights, which is related to employment of one or more persons who are not citizens or nationals of EU member states if they reside in the territory of EU member states illegally (section 39, paragraph 1, clause 1, subclause a) of the Public Procurement Law); Candidate confirms compliance with the requirements of Clause 9.4.1 of the Regulations by signing Application for the participation in the negotiated procedure in accordance with the Annex No. 2 to the Regulations. Other persons mentioned in Clause 9.4 of the Regulations shall submit confirmations signed by these persons that provisions for exclusion set in the section 39, paragraph one, Clause 1 of the Public Procurement Law do not apply to them. The Procurement commission shall request from the State Labour Inspectorate information whether the Candidate and other persons mentioned in Clause 9.4. of the Regulations pursuant to a decision of a competent authority or court judgment, which has come into effect during last 3 (three) years before application submission date has been found guilty of a significant violation of employment rights, which is related to employment of one or more persons who are not citizens or nationals of EU member states if they reside in the territory of EU member states illegally. Foreign Candidates shall submit a confirmation that Candidate and other persons mentioned in Clause 9.4 of the Regulations pursuant to a decision of a competent authority or a court judgment, which has come into effect during last 3 (three) years before application submission date has not been found guilty of a significant 9

violation of employment rights, which is related to employment of one or more persons who are not citizens or nationals of EU member states if they reside in the territory of EU member states illegally. 9.4.3. Candidate (or other persons mentioned in Clause 9.4 of the Regulations) pursuant to a decision of a competent authority or a court judgment, which has come into effect during last 18 (eighteen) months before application submission date has been found guilty of a significant violation of employment rights, which is related to employment of persons without entering into a written employment contract if such violation has been detected repeatedly within one year period, or employment of two or more persons simultaneously without a conclusion of a written contract (section 39, paragraph 1, clause 2, subclause b) of the Public Procurement Law); The Procurement commission request from the State Labour Inspectorate information whether the Candidate and other persons mentioned in Clause 9.4. of the Regulations pursuant to a decision of a competent authority or a court judgment, which has come into effect during last 3 (three) years before application submission date has been found guilty of a significant violation of employment rights, which is related to employment of persons without entering into a written employment contract if such violation has been detected repeatedly within one year period, or employment of two or more persons simultaneously without a conclusion of a written contract. Foreign Candidates shall submit a confirmation that Candidate and other persons mentioned in Clause 9.4 of the Regulations pursuant to a decision of a competent authority or court judgment, which has come into effect during last 3 (three) years before application submission date has not been found guilty of a significant violation of employment rights, which is related to employment of persons without entering into a written employment contract if such violation has been detected repeatedly within one year period, or employment of two or more persons simultaneously without a conclusion of a written contract. 9.4.4. Candidate (or other persons mentioned in Clause 9.4 of the Regulations) pursuant to a decision of a competent authority or court judgment, which has come into effect during last 12 (twelve) Candidate confirms compliance with the requirements of Clause 9.4.4 of the Regulations by signing Application for the participation in the negotiated 10

months before application submission date has been found guilty of a violation of competition law, which is related to vertical agreement aimed at restriction of purchaser to set sales price or horizontal cartel agreement, except if a competent authority has exempted the Candidate (or another person mentioned in Clause 9.4 of the Regulations) from fine (section 39, paragraph 1, clause 3) of the Public Procurement Law); procedure in accordance with the Annex No. 2 to the Regulations. Other persons mentioned in Clause 9.4 of the Regulations shall submit confirmations signed by these persons that provisions for exclusion set in the section 39, paragraph one, Clause 3 of the Public Procurement Law do not apply to them. 9.4.5. Candidate (or another person mentioned in Clause 9.4 of the Regulations) is declared insolvent, economic activities thereof have been suspended or discontinued, or legal proceedings have been initiated regarding the bankruptcy of the candidate (or another person mentioned in Clause 9.4 of the Regulations) or it has been found that Candidate (or another person mentioned in Clause 9.4 of the Regulations) is going to be wound up until planned contract fulfilment deadline (section 39, paragraph 1, clause 4 of the Public Procurement Law); 9.4.6. Candidate (or another person mentioned in Clause 9.4 of the Regulations) in Latvia or another state, where it is registered or where it is its permanent place of residence, has tax debts or debts of compulsory State social insurance contributions that in total exceed 100 lats (section 39, paragraph 1, clause 5) of the Public Procurement Law); The Contracting authority shall check whether the Candidate and other persons mentioned in Clause 9.4 of the Regulations are not in the stage of insolvency and liquidation process in the home page of the Register of Enterprises of the Republic of Latvia and Lursoft database. Foreign candidates shall submit a notice (original or certified copy) issued by a competent foreign institution not longer than one month ago and certifying that the Candidate and other persons mentioned in Clause 9.4 of the Regulations are not in the stage of insolvency and liquidation process. The Contracting authority shall check in the database of tax debtors administered by the State Revenue Service whether the Candidate (or another person mentioned in Clause 9.4 of the Regulations) in Latvia has no tax debts or debts of compulsory State social insurance contributions that in total exceed 100 lats. Foreign candidates shall submit a notice (original or certified copy) issued by equivalent tax administration authority abroad not longer than one month ago and certifying that the Candidate and other persons mentioned in Clause 9.4 of the Regulations have no tax debts in Latvia, including no state mandatory social insurance contributions debts which total sum 11

exceed LVL 100 in the corresponding country. 9.4.7. Candidate or other persons mentioned in Clause 109.4 of the Regulations have provided false information for evaluation of its qualification or have not provided the requested information at all (section 39, paragraph 1, clause 4) of the Public Procurement Law). Candidate confirms that submitted information is true by signing Application for the participation in the negotiated procedure in accordance with the Annex No. 2 to the Regulations. Other persons mentioned in Clause 9.4 of the Regulations shall submit confirmations signed by these persons that submitted information is true. 9.5. The Candidate and his Subcontractors are registered in accordance with the requirements of regulatory enactments of the corresponding country. 9.6. Candidate within last 3 years (2010, 2011, 2012) and the year when application has to be submitted (2013): 9.6.1. has elaborated technical designs for construction or renovation/reconstruction of surface backup structure for at least 1 radiotelescope with a diameter of surface of primary mirror at least 30 m; 9.6.2. has elaborated technical designs for construction or renovation/reconstruction of surface backup structure for at least 1 radiotelescope with the highest work frequency at least 22 GHz and; 9.6.3. has designed at least 2 adjusting devices for adjustable secondary mirrors. Candidate has rights to prove compliance with requirements of Clause 9.6 also with experience in designing of one object if it complies with all the requirements set in Sub-Clauses 9.6.1, 9.6.2 and 9.6.3. 9.7. Candidate shall provide following chief specialists during implementation of Tender Contract: 9.7.1. a project manager which within last 3 years (2010, 2011, 2012) and the year when Copies of commercial registration certificate of the Candidate, participants of association of persons (service providers) if the Candidate is an association of persons (service providers) and his Subcontractors (if such exist) issued by the Register of Enterprises of the Republic of Latvia or equivalent institution abroad. Description of experience of the Candidate according Annex 4 and references from the Customers. CV (including information that confirms compliance with the requirements of Clause 9.7.) signed by specialists. 12

application has to be submitted (2013) has managed project/-s that complies with requirements of Clause 9.6.1 and 9.6.2; 9.7.2. a designer which within last 3 years (2010, 2011, 2012) and the year when application has to be submitted (2013) has made designs for construction or renovation/reconstruction of metal constructions for at least 2 objects with designing costs for each object not less than EUR 200 000 (two hundred thousand euros); 9.7.3. a metal welding engineer which within last 3 years (2010, 2011, 2012) and the year when application has to be submitted (2013) has participated in elaboration of design for construction or renovation/reconstruction of surface backup structure for radio-telescopes that complies with requirements of Clauses 9.6.1 and 9.6.2. 9.8. The offered specialists have following qualification/ certificates: 9.8.1. designer has valid architect s or construction practice certificate; 9.8.2. welding engineer has valid International Welding Certificate or equivalent certificate. Foreign specialists have licence, certificate or another document for provision of mentioned services (if regulatory enactments of respective country foresee necessity of such documents). Foreign specialists comply with education and professional qualification requirements for performing respective professional activity in the Republic of Latvia. In case the Procurement contract is concluded with the Candidate, foreign specialist mentioned in Clause 9.8.1 shall obtain professional qualification accreditation/ recognition certificate or register in the respective professional register of the Republic of Latvia. The Procurement Commission shall check the specialists certificates in the database of construction and architects practice certificates available at the home page of the Register of Construction companies. Copy of foreign specialist s licence, certificate or another document for provision of mentioned services (if regulatory enactments of respective country foresee necessity of such documents). Confirmation that foreign specialists comply with education and professional qualification requirements for performing respective professional activity in the Republic of Latvia. In case the Procurement contract is concluded with the Candidate foreign specialist mentioned in Clause 9.8.1. shall obtain professional qualification accreditation/recognition certificate or register in the respective professional register if it is required by regulatory enactments of the Republic of Latvia. 9.9. Provisions for association of persons If the tender for the Procurement procedure is submitted by an association of persons, then the person representing the association of persons in the Procurement procedure shall be indicated in the application of the 13

tender. If the tender is submitted by an association of persons (association of suppliers) having not legally registered their mutual collaboration in accordance with the Commercial Law (developed a partnership or capital company) within the moment the application is submitted, then a collaboration contract stating that all participants of the association of persons jointly and separately are responsible for the fulfilment of services and that the main participant has a power of attorney to represent the association of persons in the competition and to sign tender documents on behalf of other participants shall be added to the documents to be submitted so that such association of persons is considered as the Applicant. The collaboration contract shall mandatory contain information on persons merged in an association of persons, the amount of work to be performed by each person of the association of persons, confirmation that in case if the association of persons will be defined as a winner of the competition and if an application on violations of procurement procedure will not be submitted to the Procurement Monitoring Bureau 10 (ten) working days after the wait period and rights to conclude contract will be allotted to the Candidate, the association of persons will register the general partnership with full responsibility to each of the members in the procedure stipulated by the regulatory enactments or all the participants of the association of persons and their Sub-contractors shall sign the Procurement contract. 10. Informative technical proposal 10.1. Candidate shall add to the application an informative technical proposal according Technical specification attached to the Regulations (Chapter 6 Preparation of 14

technical proposal) in such extent that is possible in this stage of the Procurement before negotiations are started. During period of selection of Candidates Technical specification has only informative character. 10.2. Candidate has rights to prepare the technical tender in English without adding its translation into Latvian. 10.3. Candidate shall add to the technical proposal also his comments on the draft procurement contract attached to the Regulations, indicating conditions of the draft contract that it would be necessary to discuss during negotiations and proposals for formulation of these contract conditions. 11. Informative financial proposal 11.1. The financial proposal shall be submitted with the help of a blank set in the Annex No. 3. Candidate shall submit 2 financial proposals with different designing solutions for secondary mirror mentioned in technical specification. 11.2. Financial calculations included in the financial proposal shall be indicated in euro (EUR) without value added tax (VAT). 11.3. Candidate has rights to prepare the technical tender in English without adding its translation into Latvian. III EVALUATION OF APPLICATIONS AND SELECTION OF CANDIDATES 12. Main evaluation conditions for applications. 12.1. The evaluation of applications shall be made by the Procurement commission in closed meetings in following stages: 12.1.1. Inspection of the documents included in application; 12.1.2. Inspection of drawing up and content of the application and selection of the Applicants 13. Inspection of the documents included in application 1st stage. 13.1. The Procurement commission shall evaluate conformity of each application to the components of the application mentioned in the Clause 8.1. 13.2. If any of the components mentioned in Clause 8.1 is missing, then the Procurement commission rejects the tender and does not evaluate it further. 13.3. Inspection of tender s drawing up and content and selection of the Applicants 2nd stage 14. Inspection of drawing up and content of the application and selection of the Candidates 2nd stage 14.1. The Procurement commission shall evaluate the correspondence of each application to drawing up requirements set in Clauses 9.2. 9.9. 15

14.2. If the application does not comply with any of the drawing up requirements of application, then the Procurement commission shall decide whether the tender shall be reviewed further or rejected. 14.3. The content of the application and its conformity to the requirements set in the Regulations shall be inspected by the Procurement commission. If any of the application documents does not comply with the content requirements set in the Regulations, then the Procurement commission shall decide whether the corresponding application shall be reviewed further or rejected. 14.4. The Procurement commission shall exclude the Candidate from further participation in the Procurement procedure if any of the exclusion provisions mentioned in the Clause 9.4 of the Regulations apply to the Candidate or Subcontractor (which performs at least 20% of the Procurement contract value), or participant of the association of persons (if Candidate is an association of persons) or participant of partnership (if Candidate is a partnership) or persons indicated by the Candidate on which skills the Candidate bases on to confirm that his qualification complies with requirements stated in the notice on contract or documents of procurement procedure. In case the Candidate has submitted incomplete or unclear documents mentioned in Clause 9.4 of the Regulations, the Procurement Commission has rights to request the Candidate to submit additional information or to explain submitted documents. 14.5. The Candidate shall comply with the requirements for selection of the Candidates indicated in the Regulations and submit all documents mentioned in the chapter 2 of the Regulations. If the Candidate does not comply with any of the requirements for selection of the Candidates or has not submitted any of the documents for selection of the Candidates, then the Procurement commission has rights to request the Candidate to submit additional information or to explain submitted documents and to evaluate them repeatedly. If the Procurement commission when evaluating repeatedly submitted information finds that Candidate does not comply with the requirements for selection of the Candidates indicated in the Regulations, it shall exclude the Candidate from further participation in the Procurement procedure. 14.6. The Contracting authority within three working days shall at the same time inform all the Candidates about decision made regarding Candidates selection results, indicating reasons for rejection of application, Candidates invited for negotiations and informs about deadline when Candidate may submit an application to the Procurement Supervision Bureau about violations of procurement procedure. IV NEGOTIATIONS 15. Invitation of the selected Candidates to negotiations. 15.1. The Contracting authority shall send an invitation to start negotiations to all the Candidates whose applications are corresponding to the Candidates selection requirements. The invitation shall include at least starting date and time of negotiations, form, place and language which shall be used in negotiations. 16. Individual negotiations with each selected Candidate. 16.1. The Procurement commission shall conduct negotiations with each invited Candidate individually. 16

16.2. Target of negotiations is to develop technical specifications and draft procurement contract that could be used as a basis to invite Candidates to submit tenders. 16.3. Negotiations can be conducted in several rounds and the Contracting authority has rights to invite Candidates to update technical and financial offer and to submit it repeatedly. 16.4. Negotiations according decision of the Contracting authority could be conducted at premises of the Contracting authority, in a form of telephone or video conferences according or in a written form. Negotiations shall be recorded and the minutes shall be kept. 16.5. During negotiations the Contracting authority shall ensure equal attitude towards all the Candidates, guarantee the same Access to information about the Procurement. The Contracting authority shall not create more advantageous conditions to any of the Candidates comparing with the others. 16.6. During negotiations the Procurement commission has rights to discuss with candidates all issues concerning the procurement contract. 16.7. During negotiations the Procurement commission shall discuss with Candidates following issues of the technical specification: - Development of back-up structure model; - Inspections; - Necessary tests; - Requirements for Finite element model with a replaceable element calculations, calculations for connecting rod assemblies; - Applicable Technologies and quality tests; - Designing of mechanically or programmatically (automatically) adjustable secondary mirror and its supporting structure; - Designing of cone cabin conditioning system; - Work organization plan of renovation work program, specification of materials to be used; - Preparation of simplified renovation documentation and receipt of the Construction Board s acceptance; - Scope and content of designer s supervision services and consultations during renovation works; - Contract fulfilment period; - Other issues not mentioned by the Contracting authority but necessary for fulfilment of the contract. 16.8. During negotiations the Contracting authority shall agree with all the Candidates on tender submission deadline that will be included in the invitation to submit tender. In case an agreement is not reached this deadline shall not be shorter than 10 days. 17

17. Invitation to submit a tender. 17.1. After a technical specification and a draft contract complying with interest of the Contracting authority is developed as a result of negotiations the Procurement commission shall send these documents to all the Candidates and invite them to submit tenders within time period set according Clause 16.8 of the Regulations 17.2. The Candidate shall indicate requirements for submission and drawing-up of the tender in the invitation to submit a tender. VII EVALUATION OF THE TENDER, CRITERIA, DECISION MAKING AND CONCLUSION OF CONTRACT 18. Evaluation criterion. 18.1. The evaluation criterion for the tender is a tender with the lowest price. 19. Inspection of technical tender 19.1. The Procurement commission shall evaluate correspondence of each technical tender to the technical specification. 19.2. If the technical tender does not comply with the technical specification, then the Procurement commission shall reject the tender and shall not evaluate it further. 20. Evaluation of financial proposal 20.1. The Procurement commission shall evaluate financial proposals only of those Tenderers which tenders have passed Inspection of technical tender. 20.2. During the inspection of financial proposal the Procurement commission inspects whether the proposal does not hold any arithmetic mistakes. If any arithmetic mistakes occur, then the Procurement commission corrects them. The Procurement commission shall inform the Candidate about all corrections of arithmetic mistakes made in his financial proposal. The Procurement commission shall take into account only the corrected prices when evaluating financial proposals. 20.3. The Candidate with appropriate tender and with the lowest contract price will be announced as the winner. 21. Adoption and announcement of decision 21.1. Procurement commission shall send the decision on results of the Procurement procedure and conclusion of the Procurement contract shall send to all the Tenderers within 3 working days after adoption of the decision and submits a notice for publication to the Procurement Supervision Bureau according the Public Procurement Law. 21.2. Before making the decision the Procurement commission shall request to the Tenderer that is registered abroad or has a permanent residence abroad, to whom the rights to conclude the Procurement contract shall be allotted in accordance with the requirements set in the Regulations, to submit the following documents for his tender within the established date (not shorter than 10 working days): 18

21.2.1. Notice (original or certified copy) issued by a competent foreign institution not longer than one month ago and certifying that the Tenderer, Subcontractor (which performs at least 20% of the Procurement contract value), participant of the association of persons (if Tenderer is an association of persons) or participant of partnership (if Tenderer is a partnership) or persons indicated by the Tenderer on which skills the Tenderer bases on to confirm that his qualification complies with requirements stated in the notice on contract or documents of procurement procedure is not in the insolvency process or under liquidation; 21.2.2. Notice (original or certified copy) issued by equivalent tax administration authority abroad not longer than one month ago and certifying that the Tenderer, Subcontractor (which performs at least 20% of the Procurement contract value), participant of the association of persons (if Tenderer is an association of persons) or participant of partnership (if Tenderer is a partnership) or persons indicated by the Tenderer on which skills the Tenderer bases on to confirm that his qualification complies with requirements stated in the notice on contract or documents of procurement procedure, has no tax debts, including no state mandatory social insurance contributions debts which total sum exceed LVL 100, in the corresponding country. 21.2.3. Confirmation that the Tenderer, Subcontractor (which performs at least 20% of the Procurement contract value), participant of the association of persons (if Tenderer is an association of persons) or participant of partnership (if Tenderer is a partnership) or persons indicated by the Tenderer on which skills the Tenderer bases on to confirm that his qualification complies with requirements stated in the notice on contract or documents of procurement procedure is not punished in Latvia or abroad for such violations of labour law that are related to employment of persons without a conclusion of a written labour contract or employment of one or more persons which are not citizens or nationals of EU member states if they reside in the territory of EU member states illegally. 21.3. Before making the decision the Procurement commission request from the State Labour Inspectorate information about the Tenderer to whom the rights to conclude the Procurement contract shall be allotted in accordance with the Regulations and about Subcontractor (which performs at least 20% of the Procurement contract value), participant of the association of persons (if Tenderer is an association of persons) or participant of partnership (if Tenderer is a partnership) and persons indicated by the Tenderer on which skills the Tenderer bases on to confirm that his qualification complies with requirements stated in the notice on contract or documents of procurement procedure whether the afore mentioned is acknowledged as guilty in a significant violation of labour law with a decision of a competent institution or with a judgement of court that has become valid and is unarguable, and the violation is expressed as follows: a) employment of one or more citizens or nationals of countries that are not member countries of the European Union (EU), if these citizens or nationals reside in the territory of the EU member countries illegally; b) employment of one person without a conclusion of a written labour contract, if such violation has been detected repeatedly within one year period, or employment of two or more persons simultaneously without a conclusion of a written contract. 21.4. Before making the decision the Procurement commission shall check in the database of tax debtors administered by the State Revenue Service whether the Tenderer, Subcontractor (which performs at least 20% of the Procurement contract 19