1. General provisions

This Instruction has been prepared under Law of the Republic of Azerbaijan “On public procurements”, determines rules of organization and conducting of procedure of request for quotation at procurement of goods (works and services), which have current market and which proposed price is more than 10 million manat and less than 250 million manat and shall apply to procurement of goods by state enterprises (administrations) and enterprises and organizations, state share in charter fund of which is 30% and more.

2. Organization and conducting of request for quotation

2.1. In order to organize procedure of request for quotation, procurement agency shall set up tender commission and determine conditions of request for quotation on procurement of goods (works and services) (with consideration of requirements relating to transportation and insurance costs, custom duties and other expenses) as provided for in article 23 of the Law of the Republic of Azerbaijan “On public procurements”.

2.2. In order to organize procedure of request for quotation, tender commission shall approve conditions of request for quotation and in number, which is practically expedient but with minimum number of 3, produce list of potential consignors (contractors) and send conditions of request for quotation to them (Form 1). Information about it shall be included to procurement procedures report in accordance with article 10 of the Law of the Republic of Azerbaijan “On public procurements”.

2.3. Place, date and time of submission of price quotations of goods (works and services) shall be indicated by procurement agency in conditions of request for quotation and name and telephone number of coordinating person to get information shall be indicated. Price quotations of goods (works and services) offered by consignors (contractors) (form 2) shall be submitted in closed package.

2.4. Each consignor (contractor) taking part in procedure of request for quotation can submit only one proposal. Holding of negotiations between tender commission and consignor (contractor) with regard to submitted quotations and change of submitted quotations by consignors (contractors) are not allowed.

2.5. Package of proposals submitted by consignors (contractors) on the basis of request for quotation shall be opened and prices stated in submitted proposals shall be announced by tender commission in the same order as they were received with participation of consignors (contractors) in determined date and hour. Non-participation of consignor (contractor) or its attorney in packages opening procedure shall not serve as reason to exclude their proposals.

2.6. Tender commission shall make its decision on results of request for quotation at the same day with participation of consignors (contractors) and determine first (low price), second and third places among them depending on submitted quotation price. Decision taken by tender commission on results of request of quotation shall be brought to consignors (contractors) attention.

2.7. Protocol of tender commission on results of request for quotation shall be produced under “sample of final protocol of tender commission about tender results” (attached) approved by decision of the Cabinet of Ministers of the Republic of Azerbaijan No. 124 of 02 August 2002 and signed by all members of tender commission. Members of tender commission, who disagree with organization and results of procedure of request for quotation shall sign final protocol and attach their opinions to the protocol. Copy of final protocol shall be submitted within 3 (three) banking days to the State Agency on procurement after its signing in accordance with article 37.5 of the Law “On public procurements”.

2.8. Final protocol shall be taken as a basis for conclusion of procurement contract. Procurement agency shall send to consignor (contractor), which under final protocol satisfied demand and submitted the lowest price quotation, notice on conclusion of procurement contract.

2.9. Procurement contract shall be produced in accordance with requirements of “sample of procurement contract on goods (works and services) approved by decision of the Cabinet of Ministers No. 34 of 28 February 2003.

2.10. Report about procedure of request for quotation shall be collected and kept as provided for in article 19 of the Law of the Republic of Azerbaijan “On public procurements” and in accordance with article 54 of the Law and documents on carried out procurements.

3. Responsibility

3.1. Persons or entities guilty in violation of requirements of this Instruction shall bear responsibility as provided for in legislation of the Republic of Azerbaijan.

Form 1 REQUEST FOR QUOTATION (on official letterhead of procurement agency) No ________________ Date ______________ To ______________________________________________________________ Dear Sirs! Customer (name, address, telephone and fax number, name and title of official) intends to procure the following goods (works and services) using method of request for quotation: (name and amount of goods (works and services)) Payments under procurement contract will be made as follows: Price quotations proposed by consignor (contractor) shall apart from price of goods (works and services) be stated in consideration with transport, insurance, tax, customs duties and other expenses. Goods to be shipped, works to be performed and services to be provided shall meet following requirements: technical requirements of procured goods (works and services), requirements relating to performance of procurement contract including period of performance, provided penalties and other requirements. Price quotations of goods (works and services) shall be signed, sealed and submitted in closed package to the address until Manager of procurement agency _________________________________ Date _____________________________

Form 2 Request for quotation of consignor (contractor) Date ______________ To ______________________________________________________________ Dear Sirs! We, name of consignor (contractor) having studied request for quotation sent by you in details, propose the following price for procured goods (works and services) name of goods (works and services) Price spreadsheet of goods (works and services) is attached. If you accept our proposal for quotation we undertake to ship goods, perform works and provide services in accordance with schedule stated in request for quotation and agree with indicated payment conditions. Until official procurement contract is signed this proposal for quotation will remain in force till “___” _________________ 2003. Title of signatory _______________________________ Full name _______________________________ Signature ________________________ Place of seal

No	Name of goods (works and services)	Amount	Unit price of goods (works and services) (in manat)	Total price (in manat)
TOTAL:

Title of signatory

__________________________________________

Full name _______________________________

Signature _________________________

Place of seal

1. Name of procurement agency

2. Name of procured goods (works and services) and its quantity

(volume, weight or other measurement unit shall be stated)

3. Supposed price of procured goods (works and services)

4. Source of finance

(budget, out-of-budget and state funds, loans and grants obtained by state or received under state guarantee)

5. Procurement method

6. Decision on setting up of tender commission

Date _______________________

No _________________

Manager of procurement agency or acting person

________________________________________________

No	Composition of tender commission	Full name of commission members	Place of work and title
1.
2.
3.
4.
5.

7. Information about publication of notice of request for quotation (if published):

name of organ of press _________________________________________

date of announcement _______________________

8. List of consignors (contractors), which sent request for quotation:

No	Name of consignor (contractor)	Address, bank details, Tax ID	Date of sending of personal invitations and their registration number

9. Price quotations submitted by consignors (contractors) (price spreadsheet of goods (works and services) is attached):

No	Name of consignor (contractor)	Price quotations (total amount)
1.
2.
3.
4.

10. Information about consignor (contractor), which was determined as a winner in procedure of request for quotation and about procurement contract:

Name of consignor (contractor)

Information about name, measurement unit, quantity, volume and price of goods (works and services) to be procured under procurement contract:

Name of goods (works and services)	Measurement unit	Quantity or volume	Price per unit (in manat)	Total amount (in manat)
TOTAL:

Amount of guarantee for performance

of procurement contract _______________________________ (in percents)

Full name and title of person, who sign

the procurement contract _________________________________________

______________________________________________________________

date of signing __________________________________________________

Chairman of tender commission

__________________ signature

__________________ date

Members of tender commission

__________________ signature

__________________ date

Special opinion of commission members, who disagree with decision of tender commission:

Note:

Copy of final protocol of tender commission about results of procedure of request for quotation conducted with regard to public procurements, shall be officially submitted to the State