1.8.1 Defining roles and responsibilities in the

procurement process

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The following table indicates the ideal structure of a big Contracting Authority (which is usually an Implementing Agency too) and the main responsibilities of its cooperating services with due regard to procurement.

Head of Technical Department

Supervising several projects

Project Managers

Project A

Project B

Project C

Identifying and planning procurement activities; proposing procurement plan for their projects; approval of procurement requests, within the limits of approved budgets; proposing amendments to existing contracts, if necessary assisting in technical negotiations.

Technical staff

Drafting specifications and ToR; suggesting sources for delivery; helping with the evaluation of bids; checking and endorsing/correcting invoices against signed contracts and progress of works/delivery.

Head of Finance Department

Supervising the accounts and cash flow

Budget Service

Setting up budgets (allocations) according to signed project documents; processing budget revisions (budget line transfers) as requested by project managers and approved by funding agencies

Payment Service

Checking invoices against contracts and related financial commitments and processing endorsed invoices

Chief of Procurement Service

Planning, coordinating, and monitoring procurement activities for the implementing organisation (serving several projects).

Supervising compliance with rules and procedures

Procurement staff

Processing valid procurement requests, checking specifications and ToR for completeness and plausibility, maintaining procurement files up to date, drafting tender documents, collaborating with technical, legal, and finance services; assisting in bid openings/evaluations, preparing award decisions, providing advice on rules and procedures; creating financial commitments according to valid contracts.

Legal Adviser

Providing legal advice on contracts and in cases of disputes, claims; assisting in negotiations. 

Chief of IT Group

Guaranteeing stable data exchange and consistent computerised financial records and files.

Table 1-4: Ideal structure of a big Contracting Authority

This structure is ideal and not applicable to all Cypriot Contracting Authorities. This is due to the fact that the majority of them do not deal with big procurement volumes and thus no separate procurement unit prove to be necessary. However, there are departments of the central government such as the Public Works Department and the Department of Information Technology Services, as well as organisations governed by the public law such as the Electricity Authority of Cyprus, which posses specialised procurement units and staff with adequate procurement skills.

As a general rule, the necessity of a separate procurement unit in a Contracting Authority depends primarily on its mission and objectives and secondarily on the procurement volume that undertakes.

Apart from the roles and responsibilities described in the above table, there is also a number of other competent organs which participate in the procurement process and which are responsible for the proposals evaluation or/and the contract award decision. The names, roles and responsibilities of these organs vary depending on the type of the Contracting Authority as it is shown in the following table (Table 1-5).

 

Table 1-5: Roles and responsibilities for proposals evaluation and contract award decision in various types of Contracting Authorities

 

TYPES OF CONTRACTING AUTHORITIES

COMPETENT ORGANS

Ministries/ Independent Offices/ Independent Authorities

(Reg 201/2007)

Municipalities

(Reg 489/2004)

Organisations governed by the Public Law/ Communities

(Reg 492/2004)

Electricity Authority of Cyprus (EAC)

(Reg 179/2009)

Cyprus Ports Authority*

(Reg 487/2004)

Water Boards of Nicosia, Lemesos & Larnaca*

(Reg 491/2004)

Tender Board

Establishes ad-hoc Technical Committees
Authority to reject proposals, cancel the competition or award contracts in case that:
othe contract value exceeds the authority of the evaluation committee, or
othe evaluation committee didnt manage to reach a decision due to equality in votes or
othe Head of the Contracting Authority doesnt agree with the decision of the evaluation committee.
The Tender Board is the Municipal Council of each Municipality
Determine the procedure and the bodies for evaluation and award of the contract
Establishes the Tender Committee from the members of the Municipal Council
Authority to reject proposals, cancel the competition or award contracts in case that the contract value exceeds the authority of the Tender Committee

 

 

 

 

Evaluation Committee

Evaluation of proposals and preparation of evaluation report
Submission of evaluation report with recommendation to Tender Board regarding the award of contracts valued above the following thresholds
Authority to award the contract, reject proposals or cancel the competition for contracts valued < €125.000,00 (services & supplies) or < €854.300,72 (works)

 

 

Evaluation of proposals and preparation of evaluation report
Award of contracts valued under thresholds defined by Board of Directors
Evaluation of proposals and preparation of evaluation report
Study of the evaluation report prepared by individual consultants (if applicable) and prepares a recommendation report which is submitted to the Board of Directors of the Ports Authority
Evaluation of proposals and preparation of evaluation report
Study evaluation report prepared by Consultants

Tender Committee

 

Authority to assign individual consultants for studying and evaluating the proposals
Authority to establishes ad-hoc Technical Committees
Study of the evaluation report
Submission of recommendation to Tender Board regarding the award of contracts valued above the following thresholds
Authority to award the contract, reject proposals or cancel the competition for contracts valued < €17.086,01 (services & supplies) or < €51.258,04 (works)

 

Study of the evaluation report and award decision for contracts valued under the thresholds defined by the Board of Directors
Authority to reject proposals or cancel the competition for contracts valued under the thresholds defined by the Board of Directors
Study of evaluation report, preparation of its own recommendation report and submission of both reports to the Board of Directors

 

 

Ad-hoc Technical Committees

Study of evaluation reports
Preparation of reports on specialised technical issues
Conduction of special investigations
Consulting support to the Tender Boards to facilitate them in reaching the correct decision
Study of proposals and evaluation report
Preparation of reports on specialised technical issues
Conduction of special investigations
Consulting support to the Tender Committees and Tender Boards to facilitate them in reaching the correct decision

 

 

Study of evaluation reports
Preparation of reports on specialised technical issues
Conduction of special investigations
Consulting support to the Boards of Directors of the Ports Authority to facilitate it in reaching the correct decision
Study of evaluation reports
Preparation of reports on specialised technical issues
Conduction of special investigations
Consulting support to the Water Board of Nicosia, Larnaca or Lemesos to facilitate it in reaching the correct decision

Competent Board or Community Council or any other bodies established by the decision of the competent Board or Council

 

 

Studies the relative documents & data and decides to award the contract, reject a proposal or cancel the competition depending on the case

 

 

 

General Director

 

 

 

Establishes the Evaluation Committee
Establishes the Evaluation Committee

 

Board of Directors

 

 

 

Defines the thresholds for the award decision
Studies the evaluation report and the report of the Tender Committee and awards the contract
Authority to reject proposals or cancel the competition for contracts valued above the thresholds defined by them
Establishes ad-hoc technical committees
Studies the evaluation report and the report of the ad-hoc technical committees (if applicable) and awards the contract
Authority to reject proposals or cancel the competition

 

Water Board of Nicosia, Lemesos or Larnaca

 

 

 

 

 

Establishes the Evaluation Committee
Establishes ad-hoc technical committees
Studies the evaluation report and the report of the ad-hoc technical committees (if applicable) and awards the contract
Authority to reject proposals or cancel the competition

 

Basic rules to conduct for people involved in the public procurement process

The complexity of rules and procedures, as well as the vulnerability of public entities, has made it a good practice to reserve functions in procurement and finance transactions for duly authorised officials or employees. These employees are responsible to protect the Contracting Authority against claims and losses that may otherwise occur. 

Public procurement requires guarantees for impartiality and accountability. It also requires strict confidentiality about the contents of tenders and other procurement actions as well as any other additional information required from the tenderer. The disclosure of confidential information would impede on the tenderers interest to protect their intellectual property rights and their commercial secrets. The procurement officer must be consistent in his administrative behaviour and respect the high standards and expectations that members of the public have towards his performance. If this is not guaranteed, severe problems may occur.

To limit the probability for conflict of interest and potential corruption in the context of public procurement, authorities, responsibilities and subordination lines have to be established in a specific way. Wherever possible procurement experts should be independent from the “technical” project management teams and should report usually to the Finance Department. Procurement staff, on its part, has no authority to revise budgets or approve delivery which is at the Project Management Teams discretion. Changing financial records such as allocations, commitments and expenditures is again separated it should be the privilege of accountants in the finance department (of course based on requests from the Project Management team or those in charge of procurement).

Note: Extended analysis on ethical and behavioural issues for people involved in public procurement process can be found in the “Code of Ethics Manual”.

 


© 2007 Republic of Cyprus, Treasury of the Republic, Public Procurement Directorate
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