Lithuania Procurement News Notice - 30357


Procurement News Notice

PNN 30357
Work Detail The Public Procurement Office notes that at the end of the year, the desire of procurers to set difficult or even impossible delivery deadlines for suppliers, which reduces competition and creates conditions for irrational use of funds, is more noticeable. The Authority notes that contracting entities must set reasonable and reasonable deadlines for the performance of contractual obligations. Procurers must take into account that, due to the global market situation, the production and supply of goods may take longer than before the pandemic. It is important to note that excessively short deadlines can lead to lower purchasing interest of suppliers, less competition and higher bid prices. Often, short delivery times can only be ensured by suppliers who have goods in stock, but this limits the ability of other suppliers to participate in the procurement. With longer deadlines for the fulfillment of contractual obligations, procurers should be less likely to address issues related to the application of contract security measures (fines, interest on arrears) to suppliers, amendment and termination of the contract. As mentioned above, procurers should start procurement earlier than planned at the beginning of the year, as well as carefully keep stock balances available and order goods not when there are several units left and there is an urgent need for them, but as early as possible, leaving suppliers reasonable. time to deliver the goods. It is recommended that these terms not be shorter than: and for computer, network, communication equipment, household appliances, various electronics - 30 calendar days. and for stationery, household chemical goods, construction materials, electrical installation goods, printer cartridges - 14 calendar days from the date of placing the order. and for passenger cars, 90 calendar days and 60 calendar days for medical equipment and 180 calendar days for heavy vehicles and buses. and 30 calendar days for standard furniture. It should be noted that before announcing the purchase, the actual time of delivery of the goods must be clarified by the procurer. Depending on the complexity of the object of purchase, the specificity of the purchased goods, additional requirements (eg for assembly, adaptation), the quantities of purchased goods - it may be necessary to set longer terms than indicated above. It is also important to note that longer deadlines should be set for other obligations related to the performance of the contract, e.g. setting a reasonable and proportionate term for the replacement of the defective product, warranty repair. The Authority also recommends that procurers: • Set deadlines in contracts by defining them not by a specific date (eg "delivery of goods before 1 December") but by a specific deadline from a certain event (eg "delivery of goods no later than 60 calendar days from the date of entry into force of the contract") or "deliver the goods no later than 7 calendar days from the date of placing the written order"). Procurers often link the specific date of fulfillment of the suppliers obligations to their available funds and the need to spend them over a period of time (eg before the end of the year), but this is not correct. In practice, it is observed that the procurer finds the funds necessary for the purchase of goods later (for example, next year), but engages in long-lasting and costly disputes with suppliers regarding the applied sanctions, termination of contracts, inclusion of suppliers in the list of unreliable suppliers and the like. In addition, it takes time and repetitive procurement procedures. • Decide on a case-by-case basis on the most appropriate estimated duration of the contract. During this period, it may not be economically viable for suppliers and procurers to enter into fixed rate or fixed price long-term contracts (eg for 2 or 3 years).
Country Lithuania , Northern Europe
Industry Services
Entry Date 28 Oct 2020
Source https://vpt.lrv.lt/lt/naujienos/metu-pabaigoje-numatyti-pirkimai-prekiu-pristatymo-terminai-ir-konkurencijos-mazinimas

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