Decree of the Government of the Republic of Lithuania

Decree of the Government of the Republic of Lithuania Resolution of the Government of the Republic of Lithuania 12 April 1995 No. 510 Vilnius Regarding the Approval of the Provisional Regulations of Government Procurement Seeking to ensure in the Republic of Lithuania rational, efficient, and thrifty use of public funds, and development of production, competition and international trade, the Government of the Republic of Lithuania has resolved:

1. To approve the Provisional Regulations of Government Procurement (appended).
2. To establish that: 2.
3. the procurement of goods or services, the value whereof exceeds 15000 litas, paying for them with the funds from the Lithuanian State Budget, local government budget, social security budget, and public foundations, funds received in the name of government institutions as charity or any other form of assistance, when the donor does not specify the purpose for which it is to be applied, as well as foreign loans which are received on behalf of the State allocated according to the tendering procedure, with the exception of cases when other methods of procurement may be applied in accordance with the Provisional Regulations of Government Procurement approved by this Decree or pursuant to other Decrees of the Government of the Republic of Lithuania. Contractors for the construction work financed with funds from the Lithuanian State Budget and local government budgets, soft loans and funds from assistance foundations shall be chosen by announcing invitation for tenders, in compliance with the Decree of the Government of the Republic of Lithuania “Concerning the Approval of Regulations of Construction Contract” of 23 January 1995 No. 114 (Þin., 1995, Nr.10-223); 2.
4. When carrying out government procurement, priority shall be given to goods manufactured and services rendered by the enterprises registered in the Republic of Lithuania. Procurement of goods produced abroad shall be permitted only in cases when such goods are either not manufactured by the enterprises registered in the Republic of Lithuania or manufactured in insufficient quantities, or when technical characteristics of the required goods are much inferior to those of analogous foreign-made goods, or if the prices of the Lithuanian-made goods are higher than those of analogous goods of foreign make. The above provision must be also complied with in the case of service procurement. The Ministry of Industry and Commerce, the Ministry of Construction and Urban Planning, the Ministry of Agriculture and other ministries must provide the organisations which carry out government procurement with appropriate information concerning the goods produced and services offered by the enterprises which are assigned to their respective jurisdiction; 2.
5. in the cases, when goods or services are procured in violation of this Decree and the requirements set out in the Provisional Regulations of Government Procurement approved by this Decree, it shall be considered that their price has been increased by 10% if compared to that paid for the purchase and the State has suffered damage of the above amount. If State control and audit or other competent governing institutions determines that goods or services have been purchased at higher prices or in violation of the procedure established by this Decree, or in the event that other violations of price application are established, persons through whose fault the damage was inflicted shall be held liable under law (shall compensate for the inflicted damage). If the person is not in the position to compensate for the entire amount of damage, the missing amount shall be recovered from the funds of the organisation which carried out the procurement; 2.
6. the requirements of this Decree shall not apply when goods or services are acquired in compliance with the provisions of the Law of the Republic of Lithuania on Social Integration of the Disabled; 2.
7. in the event that an enterprise of the society (union) of the disabled tenders for the government procurement contract and the enterprise offers a price for its product or service which is not higher than the government-regulated price or does not exceed by 10% the lowest price offered by other tenderers, while the other requirements of the tendering procedure are met, the procurement contract shall be concluded with the enterprise of the society (union) of the disabled. If two or more enterprises of the society (union) of the disabled tender for a procurement contract, the contract shall be concluded with the enterprise which offers the lowest price or more favourable contract performance conditions. The organisations which carry out government procurement shall no later than within 3 days of the publishing of invitation for tenders in the press notify in writing the societies (unions) of the disabled - the founders of the enterprises of the societies (unions) of the disabled - of the advertised procurement; 2.
8. the staff of the Seimas of the Republic of Lithuania, the Office of the President of the Republic of Lithuania, and the Chancellery of the Government of the Republic of Lithuania shall be permitted not to apply the requirements set forth in this Decree in the following cases: 2.6.
9. in the case of procurement of goods or services required for the representation in foreign states of the Speaker of the Seimas of the Republic of Lithuania, the President of the Republic, and the Prime Minister; 2.6.
10. in the case of procurement of goods and services required for the reception and servicing of official delegations of foreign states; 2.6.
11. when goods or services are purchased from the firms which are their sole sellers (providers) in the state; and 2.6.
12. for the rent of the official apartment or temporary summer residence of the President of the Republic. 2.
13. the Provisional Regulations of Government Procurement shall come into effect as of 1 May 1995 and shall apply to the procurement the procedures whereof, specified in the Regulations, have not yet been commenced.
14. To instruct the Ministry of Industry and Trade, in conjunction with the interested ministries, to submit, as necessary, to the Government of the Republic of Lithuania proposals, co-ordinated with by the Ministry of Economics and the Ministry of Finance, concerning government procurement privileges which are to be granted to the Lithuanian producers or to certain types of their products.
15. To declare invalid the following documents: 4.
16. Decree of the Government of the Republic of Lithuania of 26 November 1991 No. 489 “Regarding the Regulations of State Order of the Republic of Lithuania” (Þin., 1992, Nr. 5-90, Nr. 31-975); 4.
17. Decree of the Government of the Republic of Lithuania of 17 March 1992 No. 173 “Regarding the Supplies Controlled by the Government of the Republic of Lithuania and State Order for Investments in 1992”; 4.
18. Decree of the Government of the Republic of Lithuania of 15 May 1992 No. 355 “Regarding the Procedure of Procurement of Goods (Services) at Budgetary Institutions” (þin., 1992, Nr. 20-604); 4.
19. Decree of the Government of the Republic of Lithuania of 9 June 1992 No. 444 “Regarding the Approval of the Regulations of Tenders for State Order, the Regulations for the State Order Contract, the Method of Assessing the Losses from the Failure to Perform Obligations under the State Order” (Þin., 1992, Nr. 24-716); 4.
20. Decree of the Government of the Republic of Lithuania of 22 January 1993 No. 22 “Regarding Partial Amendment of the Government of the Republic of Lithuania Decree of 15 May 1992 No. 355” (Þin., 1993, Nr. 5-100); 4.
21. Decree of the Government of the Republic of Lithuania of 31 January 1994 No. 67 “Regarding Partial Amendment of the Government of the Republic of Lithuania Decree of 15 May 1992 No. 355” (Þin., 1994, Nr. 11-171); 4.
22. Decree of the Government of the Republic of Lithuania of 29 June 1994 No. 529 “Regarding Partial Amendment of the Government of the Republic of Lithuania Decree of 15 May 1992 No. 355” (Þin., 1994, Nr. 51-969); 4.
23. Decree of the Government of the Republic of Lithuania of 22 July 1994 No. 648 “On Supplementing the Decree of the Government of the Republic of Lithuania of 22 January 1993 No. 22” (Þin., 1994, Nr. 58-1146); and 4.
24. Decree of the Government of the Republic of Lithuania of 16 August July 1994 No. 748 “On Supplementing the Decree of the Government of the Republic of Lithuania of 15 May 1992 No. 355” (Þin., 1994, Nr. 64-1253). Minister of Government Reforms and Local Government Affairs, Acting for the Prime Minister Mindaugas Stankevièius Minister of Economics Aleksandras Vasiliauskas Approved By the Decree of the Government of the Republic of Lithuania of 12 April 1995 No. 510 Provisional Regulations of Government Procurement General Provisions
25. The Provisional Regulations shall regulate the procedure for purchasing goods or services with the funds from the Lithuanian State Budget, local government budgets, social security budget, and public foundations, funds received in the name of government institutions as charity or any other form of assistance when the donor does not specify the purpose for which it is to be applied, as well as foreign loans received on behalf of the State. The Regulations shall not apply when the procedure of government procurement (hereinafter referred to as procurement) is established by separate legal acts.
26. As used in these Regulations: 2.
27. “procurement” means procurement of goods or services paid for either on demand or in instalments (including the services related to the supply of goods , provided that their price does not exceed the price of the supplied goods), as well as the rent of goods; 2.
28. “the purchasing organisation” a government or administrative institution, enterprise, office or organisation which carries out procurement with the funds specified in item 1; 2.
29. “goods” means raw materials, manufactured articles, equipment or any other articles of any form; 2.
30. “services” means transport, communications, public utilities, consultative and other services; 2.
31. “supplier” means a potential or actual party to the procurement contract with the purchasing organisation; 2.
32. “procurement contract” means contract concluded by the purchasing organisation with the supplier in accordance with the results of the tenders or upon choosing a supplier in any other manner specified in the Regulations.
33. When carrying out the procurement, priority shall be given to the goods manufactured or services offered by the enterprises registered in the Republic of Lithuania. Goods produced abroad may be purchased only provided that such goods are either not produced by the enterprises registered in the Republic of Lithuania or produced in an insufficient quantity, or when technical characteristics of the required goods are much inferior if compared to the analogous goods manufactured abroad, or if the prices of the Lithuanian-made goods are higher than the prices of analogous goods manufactured abroad. This provision must also be complied with when purchasing services. The Ministry of Industry and Trade, the Ministry of Construction and Urban Planning, the Ministry of Agriculture, and other ministries to whose sphere of jurisdiction the enterprises manufacturing goods or providing services are assigned, shall provide the purchasing organisations with the information concerning the goods manufactured and services provided in the Republic of Lithuania. The above information must be presented to the purchasing organisations no later than within 10 working days. Tenders for Procurement
34. The tendering procedure set forth in these Regulations shall be applied to the procurement of goods or services the cost whereof is not in excess of 150000 litas. When the price of procured goods or services is within the price range from 15 000 to 150 000 litas, the purchasing organisation may, without violating the requirements of these Regulations, invite tenders following a less complicated procedure.
35. Tenders for procurement shall be organised by the purchasing organisation . The purchasing organisation may hire consultants for preparing and organising tenders.
36. Every supplier from the Republic of Lithuania or foreign states who desires to participate in the tenders must be given a possibility to do so, with the exception of cases when the participation of suppliers of foreign states (or some of them) is restricted by the laws and other legal acts of the Republic of Lithuania. Knowing, that foreign suppliers shall not be interested in participating in the organised tenders due to the low value of goods or services or for any other reason, the purchasing organisation may invite tenders only from the suppliers from the Republic of Lithuania.
37. For the procurement of very complicated goods or services which may be offered only by certain suppliers, as well as in cases when the length and financial costs of holding open tenders would prove economically unjustifiable, the procuring organisation may, with the founder’s consent, hold closed procurement tenders inviting only specific suppliers selected by it to participate therein. All known potential suppliers must be invited take part in closed tenders. For procurement tenders to be recognised as having been held, no less than 3 suppliers must participate therein.