MANAGEMENT OF PUBLIC MARKETS: in light of Decree No. 2-06-388 of February 5, 200 7 Training Module leader: Prof.

El Hassane ARAF Chefchaouni, June 21, 2006 Training plan • Unit 1: Government procurement; • Unit 2: Implementation of public procurement ; • Unit 3: Management of the procurement function in public procurement; • Unit 4: Audit of Procurement • Unit 5: Rights and obligations of signatories procure ment EL ARAF / U.1.-M.P. 2 Unit 1: Public Procurement EL ARAF / U.1.-M.P. 3 Cutting Unit • • • • Sequence 1: The importance of procurement in public management; Sequence 2: The legal and institutional procurement; Phase 3: Classification of public p rocurement; Sequence 4: Training of procurement contracts; EL ARAF / U.1.-M.P. 4 Scene 1: The importance of procurement in public management EL ARAF / U.1.-M.P. 5 1. The importance of procurement in public management • A loop in the process of economic reforms: - Describes itself as a real lever of economic activity (DI = 5.8% of GDP) - Per forms a significant ripple effect into the economy - Used for base materializati on of state intervention; - Contribute to the capitalization of know-how of trad ers. EL ARAF / U.1.-M.P. 6 1. The importance of procurement in public management (continued) • A support fu nction that: - Ensure the continuity of public service - Contributes to the quality of public service - Contributes to modernize the public procurement procedures; - Identif ies all processes that leaders must master EL ARAF / U.1.-M.P. 7 Functional structure of public procurement Financial Management Budget Office Services Markets

Technical Service Stock and Stores Commission choices

User Services EL ARAF / U.1.-M.P. 8 1. The importance of procurement in public management (continued) • Function key to display the performances that must: - Go beyond a mere function of stewardship - Being located between the zone "obj ective" zone "results" - Establish a time therefore the fate of an expense; EL ARAF / U.1.-M.P. 9 1. The importance of procurement in public management (continued) • A demonstration of the integrity of public administration must: - Maintain a dynamic system of free competition - Establish a code of ethics for public procurers - Be protected from all forms of corruption, personal enrichme nt and misappropriation - Strengthening the rule of law; EL ARAF / U.1.-M.P. 10 Configuration based procurement Function 1 D. Finances HR Function 2 Function 2 D. production Order Process Process Process Maintenance Logistics Internal Services Public service objectives EL ARAF / U.1.-M.P. 11 1. The importance of procurement in public management (continued) • A large block of budget management: - More than 58 billion dirhams of expenditure issued; • 30% for work • 60% for supplies • 10% for services; - Over 29% of the volume of acts committed; • 22% in Purchase Orders • 7% in markets EL ARAF / U.1.-M.P. 12 Frequency of commitments by type of expenditure (in volume)

.. 48000 44000 40000 36000 32000 28000 24000 20000 16000 12000 8000 4000 0 BC HI IL ID IR IU FM S IC TON RI E FE T RT EX P R R FC FS EM T CM AF DC HV PD PA DA NA FNIPP AA SS IO NS CO J PR INT ER VE RS .. Fr e quency EL ARAF / U.1.-M.P. 13 Sequence 2: Legal framework of public procurement EL ARAF / U.1.-M.P. 14 2. The legal and institutional procurement 1. The legal framework for public procurement 2. The circuit of a public market 3. The parties involved in the procurement EL ARAF / U.1.-M.P. 15 2.1 The legal environment for public procurement 1. The legal sources of procurement law 2. The contracts that derogate the publi c procurement rules 3. Public bodies subject to public procurement rules EL ARAF / U.1.-M.P. 16 Definition of a public contract (Article 3) Any contract for pecuniary interest concluded between, on one hand, a client and , secondly, an individual or legal entity called contractor, supplier or provide r of services relating to the execution of work, delivery supplies or carrying o ut services General principles (Art. 1) 1. efficiency of public procurement and proper use of public funds. 2.€prior def inition of the needs of administration, 3. compliance with disclosure requiremen ts and competitive 4. and the choice of the most economically advantageous. EL ARAF / U.1.-M.P. 18 2.1.1. The legal sources of procurement law • The field of regulatory power of G overnment (General Orders) • The implementing alternative binding nature (1 Dire ctives Minister, orders); • Texts internal organization non- enforceable (circul ars, instructions, etc..) • The jurisprudence from the administrative courts; • The Journal of charges EL ARAF / U.1.-M.P. 19 Main reference texts • • • •

• • Decree No. 2-06-388 of 16 Muharram 1428 (February 5, 2007) establishing the cond itions and forms of government and certain rules relating to their management an d supervision. Decree No. 2-03-703 of 18 Ramadan 1424 (November 13, 2003) relati ng to payment delays and state. Decree No. 2-01-2332 of 22 Rabi I 1423 (June 4, 2002) approving the general administrative terms and conditions applicable to th e State. Decree No. 2-01-437 1 Rejeb 1422 (September 19, 2001) establishing, for the procurement on behalf of the State, a system of qualification and classific ation of laboratories and building work could Decree No. 2-99-1087 29 Muharram 1 421 (May 4, 2000) approving the contract clauses adm State Decree No. 2-98-984 o f 4 hija 1419 (22 March 1999) establishing, for the award of certain services fo r the com State, an accreditation system for natural or legal person performing services study EL ARAF / U.1.-M.P. 20 Books on charges of Contexture • specifications • Legal nature of specifications EL ARAF / U.1.-M.P. 21 Contexture Papers Papers • Loads of Contract and General (GCC) • Books of the co mmon requirements (CPC), • Notebooks special requirements (SPC). EL ARAF / U.1.-M.P. 22 Books of general and administrative clauses (GCC); • They set out the administrative arrangements applicable to all: - Works contracts (Decree No. 2-99-1087 of May 4, 2000) - Markets EMO (Decree No . 2-01-2332 of June 4, 2002) - Supply contracts (Decree No. ....) EL ARAF / U.1.-M.P. 23 Specification of common requirements (Article 15) • It essentially set the techn ical rules applicable to all contracts for the same kind of work, supplies or se rvices or to all contracts awarded by a ministerial department • They may, compl iance with the GCC (orders): - Contain all common requirements in one area - Identify special methods of proc urement (price, award, settlement conditions, etc..) EL ARAF / U.1.-M.P. 24 Papers of special requirements (SPC). • You set the terms for each contract; • C ontain the reference to general laws applicable (GCC CPC) • Indicate, where appl icable, the articles to which it is eventually waived EL ARAF / U.1.-M.P. 25 Legal nature of the charges Papers • They have a contract (A. de Laubade);

- They are definitely "the law of the party" - They can not be changed by genera l • They are akin to "so-called contracts of adhesion" - Some requirements have a legal value - Some provisions are beyond the rule of "the immutability contract ' • They can be distinguished, as in civil law, between mandatory laws and laws re sidual (EC Dilly July 17, 1950) EL ARAF / U.1.-M.P. 26 2.1.2. Contracts that deviate the public procurement regulations • Not considere d MP 1. 2. Agreements and contracts law (Art. 3, § 6) The concession contracts of pub lic service agreements or contracts with international agencies, agreements or c onventions with foreign states • May waive the regulation M.P.: 1. 2. EL ARAF / U.1.-M.P. 27 2.1.3. Public bodies subject to public procurement rules • Are concerned by the regulatory - The Administration of the State: Central Services, External Services, SEGMA (A rt. 1 of Decree 2-98-482) - Local authorities (municipalities, provinces, prefec tures and regions) and their associations (art. 48 of Decree 1-76-584) • Do not explicitly covered by the regulations: - - - - - - Public institutions (EPA, EPIC), Crown corporations, public subsidia ries, joint companies, the concessionaires, the bodies being audited financial s tate. EL ARAF / U.1.-M.P. 28 2.2.€Circuit of a public market • S / circuit preparation and launch • S / circu it award and execution EL ARAF / U.1.-M.P. 29 2.2.1. S / Circuit preparing a M.P. Requirements Definition Program estimates YES NO Financing? YES NO END Movement budg etária Available Ede edicts cr YES NO Markets born GOCI és Order Forms Tendering

Publicity and consultation é YES Choice of contractor YES NO s unsuccessful Market Contract law NO Conclusion? End of the market of execution Executive BUDGETARY END EL ARAF / U.1.-M.P. 30 2.2.2. S / circuit award and execution of a M.P. N Y N recognition of commitment by Ord. (Public Markets ...) concluded, Vendor Regulations Control C.E.D. YES YES Approval of Ord. N Y N Checking accounts officer YES Realization of benefits by the provider YES NO Liquidation ED by Ord. END No action Scheduling of D.E. has Ord. YES EL ARAF / U.1.-M.P. 31 2.3. The parties involved in the procurement • • • • • • • • • • The Client, the client representative, if any, authorizing t he public expenditure; commissions choice of allottees; The bidder; The subcontr actor , if any; The Master works, financial controller, the accounts officer; Th e trade commission EL ARAF / U.1.-M.P.

32 The Client • That the Administration, on behalf of the public body awards the contract with the contractor, supplier or service provider or service provider EL ARAF / U.1.-M.P. 33 The Managing Owner • A public or quasi-public approved (by the first minister), which is entrusted all or part of the tasks of project management of an Authority empowered • It is the MO in the process of implementing PM EL ARAF / U.1.-M.P. 34 The authorizing public expenditure • Anyone who is a quality not a public body to engage, observe, liquidate or sch edule or the payment of a debt EL ARAF / U.1.-M.P. 35 The selection of commissions awarded • It is the sovereign commission with a mandate to examine the tenders to be com peting and to designate the best to be retained by the developer EL ARAF / U.1.-M.P. 36 Project manager • Every public body authorized for this purpose or any person or entity of priva te law designated by the contracting authority and is responsible for the design and / or monitoring of project implementation to achieve EL ARAF / U.1.-M.P. 37 The contractor • Bidder whose bid has been accepted. It becomes "incumbent" after notification of contract approval. • It may be a group of social enterprises EL ARAF / U.1.-M.P. 38 The subcontractor • A person as the owner (outsourced) entrusted to him by contract, part of the m arket • The owner is personally liable for the obligations of the market • It mu st meet the same requirements of competitors, that leaves the MO exercises his r ight of challenge; EL ARAF / U.1.-M.P.

39 The Financial Controller (DAC) • Its mission is to control a priori regularity o f the budget market in question, and provide assistance to market services EL ARAF / U.1.-M.P. 40 • All the assigned officer or agent having the capacity to execute on behalf of a public resolution of a MP. It is required to perform this purpose, control of the validity of the claim EL ARAF / U.1.-M.P. 41 Provisional Programme (Art.87) • The contracting authority shall publish no later than the end of the first qua rter of each fiscal year, in at least one national newspaper and on the procurem ent portal of the State, the program estimates of markets that it plans to launc h under the budget year. EL ARAF / U.1.-M.P. 42 Phase 3: Classification of public procurement EL ARAF / U.1.-M.P. 43 3. Classification procurement • Depending on the category • • Depending on the price depending on the form EL ARAF / U.1.-M.P. 44 3.1. The categories of Procurement 1. Works contract; 2. Market supplies and 3. Service contract; • • Market studies Market definition EL ARAF / U.1.-M.P. See documents No. "Reading GCC" 45 Works contract • any contract for the execution of works related to construction, reconstructio n, demolition, repair or renovation of a building, structure or structure,€such as site preparation, earthworks, erection, construction, installation of equipme nt or material, decoration and finishing, as well as services incidental to work s such as drilling, surveying , taking photography and film, seismic studies and similar services provided under the contract, if the value of these services do es not exceed that of the work themselves.

EL ARAF / U.1.-M.P. 46 Supply contract • any contract for the purchase, taking on a lease, rental or lease purchase wit h or without option to purchase goods or materials between a client and a suppli er. The delivery of products may include ancillary siting and installation requi rements to achieve the benefit. The concept of supply includes: • the supply cur rent, which are supply contracts for the acquisition by the developer of product s existing in the trade and which are not manufactured on particular specificati ons; • supply contracts which have no common primary objective the purchase of p roducts that are not in commerce and the holder must complete technical specific ations on specific client; • leasing markets, leasing or hire purchase, with or without option • EL ARAF / U.1.-M.P. 47 Services Marketplace • any contract for the implementation of services that can not be qualified or w ork or supplies. • The notion of service contract covers include: - The benefits of market studies and project management involving appropriate, s pecific obligations related to the concept of intellectual property - The curren t service contracts which have for the acquisition by the contracting authority services can be provided without technical specifications required by the client - including on markets of servicing and maintenance of equipment, facilities an d equipment, cleaning, janitorial and administrative space gardening ; EL ARAF / U.1.-M.P. 48 Market Studies (Art.80) • When the client can not perform its own studies that are necessary, he resorts to study contracts. These markets must be clearly defined as to their purpose, scope and time frame for enabling competitive providers. The market should be po ssible to stop the study or after a specified period, or when expenditures reach a fixed amount. When its nature and its importance warrants, the study is divid ed into several phases, each with a prize. In this case, the contract may provid e for the stay of his execution after each of these phases. EL ARAF / U.1.-M.P. 49 • • • Market definition Market likely to precede the market study to help clarify the goals and performance to be achieved, the basic techniques to use the resources in personnel and equipment to implement the studies, the price components, the p hases may include studies. EL ARAF / U.1.-M.P. 50 3.2. Types of Procurement 1. 2. 3. 4. Market framework; Market multi-year market for conditional phases; Market in separate batches EL ARAF / U.1.-M.P.

51 Market framework (Art. 5) • It may be awarded contracts called "framework contracts" when the quantificati on and the pace of implementation of the provision, which provides a predictable and permanent, can not be entirely predetermined. Markets Framework only set th e minimum and maximum benefits, adopted in value or quantity may be ordered duri ng a specified period not exceeding the current budget year and the credit limit s Available payment. These minimum and maximum should be set by the client befor e any competitive bidding or negotiation. The maximum benefit may not exceed two times the minimum, however, this limit does not apply to contracts awarded by t he framework administration of national defense. The market framework must ident ify the particular specifications and prices of services or the manner of determ ination. EL ARAF / U.1.-M.P. 52 • • • Market Framework (Continued) • • • • • The market framework must indicate the duration for which they are con cluded. These contracts include a clause frames tacit agreement€but the total du ration of each contract shall not exceed three years. The non-renewal of the con tract is taken under the initiative of either party to the contract upon notice to the conditions set by the market. During the term of the contract framework, the quantities of services to be performed and their execution time are specifie d for each order by the client as required to meet. The amount of benefits that the owner is required to commission can in no case be less than the minimum requ ired by the market. However, if these markets under the express terms, and on th e date stated in the contract, each contracting party shall be entitled to reque st that there should be a review of market conditions and terminate in the event an agreement would not intervene on this review. EL ARAF / U.1.-M.P. 53 Market Framework (Continued) • If the revision tends to adjust the minimum or maximum benefits to be realized , it must not disrupt the market economy and should in no case exceed 10% of the maximum benefits when increasing the amount or value of such benefits, and 25% in case of loss of value or quantity of minimum benefits. This review may be fil ed, if any, by endorsement on the occasion of each renewal of the framework cont ract. The possibility of revision provided above does not preclude the applicati on of price adjustment provided for in Article 14 below. The contracting authori ty shall, at the end of each fiscal year, to settle the markets framework for th e amount of works performed. The list of benefits that may be subject to "market framework" is appended to this Decree (Annex 1). This list may be amended or su pplemented by decision of the Prime Minister after consultation with the trade c ommission. • • • • EL ARAF / U.1.-M.P. 54

Market renewable (Art. 6) • It may be awarded contracts called "renewable markets" where the amount can be determined in advance by the client and have a predictable, repetitive and ongo ing. The market should determine extendible including specifications, consistenc y, terms of performance and price benefits might be realized over a period not e xceeding one year budget period and within the limits of payment appropriations available. Renewable contracts must indicate the period for which they are concl uded. These contracts include a clause on tacit renewal, but the total duration of each contract may not exceed three years. The non-renewal of the renewable ma rket is taken at the initiative of either party to the contract upon notice to t he conditions set by the market. During the term of the contract renewable, the quantity of services to be performed and their execution time for each command a re specified by the client as required to meet. EL ARAF / U.1.-M.P. 55 • • • • Renewable Market (continued) • However, if expressly provided for these markets, and on the date stated in th e contract, each contracting party shall be entitled to request that there shoul d be a review of market conditions and terminate if no agreement 'not intervene on this review. • The possibility of review provided above does not preclude the application of price adjustment provided for in Article 14 below. • The contrac ting authority shall, at the end of each fiscal year, renewable contracts to set tle for the amount of works performed. • The list of benefits that may be renewa ble contracts is annexed to this Decree (Annex 2). This list may be amended or s upplemented by decision of the Prime Minister after consultation with the trade commission. EL ARAF / U.1.-M.P. 56 Market conditional phases (Art. 7) • Market with a slice is firm and one or more conditional, but all constituting a coherent, autonomous and functional - The firm order is committed funds available and implemented upon notification of CSO - Units can be realized only after availability of funding and findings o f any amendments. EL ARAF / U.1.-M.P. 57 Market conditional phases (continued) • Clause prices on such markets can be one of the following forms: - A same price, if market prices overall, as well as for the firm order for the conditional phase;€- A different price for each slice with a slice off the farm in respect of conditional or slices. EL ARAF / U.1.-M.P. 58

Market allotted (Art. 8) • To obtain a good performance of the contract, the con tracting authority may - Divide the delivery of two or more lots - make a deal for each batch - Limit t he number of lots to be allocated to a single competitor. EL ARAF / U.1.-M.P. 59 3.2. Prices in procurement 1. 2. 3. 4. 5. 6. 7. Overall market price; market price per unit; market prices mixed; market with services on the DC market at a fixed price, market price revi ewable; Market price provisional. EL ARAF / U.1.-M.P. 60 • Market prices overall market whose benefits are covered by a fixed price; • Th e package price is calculated on the basis of: - Standard unit price - standard amounts set by the MO • Any changes made during the performance is evaluated in accordance with specif ications EL ARAF / U.1.-M.P. 61 Unit price contract • Is one in which the services are split on the basis of a detailed estimate pre pared by the MO, in different positions, indicating for each proposed unit price • The unit price has a fixed nature; • Money due under the contract are calcula ted by applying the unit price for the quantities actually executed; EL ARAF / U.1.-M.P. 62 • Market prices mixed market that combines between the shape of the overall pric e and the price formula unit EL ARAF / U.1.-M.P. 63 Contract including cost plus benefits • Market work with, for technical and exce ptional services paid on the basis of cost plus • The amount of benefits paid on the basis of cost reimbursement can not exceed 2% of the original market EL ARAF / U.1.-M.P. 64 • fixed price contracts whose market price can be adjusted according to conditio ns coinciding with the execution time (except change in the rate of VAT) • Appli cable to all benefits, the turnaround time is less than or equal to one year EL ARAF / U.1.-M.P. 65 Market price reviewable • The market price may be revised when it can be modified because of changes economic running of the service. • The works and studies are subject to revision when prices increased to the deadline for their execution is greater than or eq

ual to four (4) months. However, when this period is less than four months, they can also be passed to price revision. • When the price is subject to revision, the specifications expressly state the terms of the revision and the date it bec omes payable in accordance with the rules and conditions of revision of prices a s established by order of the Prime Minister referred by the Minister Finance. • For works contracts awarded and studies at fixed prices, if approval of the con tract has not been notified to the contractor on schedule and that the winner ke eps his offer, the market price will be reviewable applying a formula price adju stment provided for this purpose by the special conditions. EL ARAF / U.1.-M.P. 66 When market prices provisional execution of service must be started when all the conditions necessary for the determination of a definitive initial price is not met. On E XPENDITURES ôlées contr? Global? Farm? Unit? MARKET PRICE Reviewable Mixed? Temporary? EL ARAF / U.1.-M.P. 68 Mandatory provisions in a public contract 1. 2. 3. 4. 5. 6. 7. The mode of execution; references to the more nuanced decre e MP; The coordinates of the contractors, the purpose and place of performance o f services; parts incorporated in the markets and the price agreed form; The per iod of execution or completion date (the possibility of partial periods) 8. The conditions of reception and even the places of delivery; 9. Conditions in discha rge 10. The terms of collateral 11. The conditions of termination; 12. The appro val by the competent authority EL ARAF / U.1.-M.P. 69 Sequence 4: Training of procurement contracts EL ARAF / U.1.-M.P. 70 4. Training of procurement contracts 1. 2. 3. 4. 5. Mechanisms of competition and advertising consultation, access to competition; Judgement of bids; Conclusion market. EL ARAF / U.1.-M.P. 71 4.1. General mechanism for competition • • • • Calls for tenders; Contest; negot iated procedure;€Order Forms

EL ARAF / U.1.-M.P. 72 Tenders • Call for tenders; • Restricted tender; • Tender "with screening; - Call for tenders on the cheap - Call for tender offer price EL ARAF / U.1.-M.P. 73 Open Tender • Access to free competition; • The award is exclusively conditioned by the comp arison of offers made (v.infra, detailed analysis of the plan). EL ARAF / U.1.-M.P. 74 Limited tender • Principles: - Access to the competition is limited - MO discretion choosing the candidates t o participate in the competition - The award remains subject to the automatic co mparison of bids; • Terms of use: - How limited to benefits, the estimate is less than or equal to 1000.000,00 dhs - Market-vendor clearly reduced - Consultation least three candidates (circular letter) EL ARAF / U.1.-M.P. 75 Tender "with preset" • Access is limited to candidates with technical capabiliti es and financial resources; • Access is subject to the notice of the admission c ommittee EL ARAF / U.1.-M.P. 76 Contest • It puts competitive candidates to services that are valued the advice of a jur y and which foreshadow those that will be required under the contract; • It is j ustified on technical, aesthetic or financial services (special investigations) • It may cover: - Either on building project - either on the execution of projects already estab lished - either both on the establishment of a project and its execution EL ARAF / U.1.-M.P. 77 Competition (continued) • It is organized on the basis of a program established by the MO (bonus, reward s, benefits, etc..) • You can access it on demand for admission • The eligible p rojects are reviewed and ranked by the jury (admissions board) • Louverture fold s are in public (except DNA) EL ARAF / U.1.-M.P. 78 Negotiated procedure (Art.71 and S.) • The negotiated procedure is a means by which the owner chooses the contractor

after consultation with candidates and negotiating the terms of the contract wit h one or more of them as provided below. These negotiations, which may not relat e to the purpose and substance of the contract may include provisions relating t o price of the service, turnaround time or date of completion or delivery. - - - - - Terms negotiated procurement contracts negotiated procedure cases reso rt to negotiated contracts, forms of contracts negotiated. Justification produce EL ARAF / U.1.-M.P. 79 Conditions for the award of a contract negotiated • Submitted to the fullest ext ent possible and by all appropriate means to advance publicity and competition; • Ability to confront conflicting estimates; • Production of an administrative c ertificate argumentative EL ARAF / U.1.-M.P. 80 Procedure for negotiated contracts contracts traded rose: with advance publicity and for competition or without advertising and withou t competition. EL ARAF / U.1.-M.P. 81 Case for the award of a negotiated contract (after advance publicity and competi tion) The benefits that have been a call for tenders and competitions for which it h as been suggested that bids deemed unacceptable under the criteria in consultati on regulations by the commission tender or the competition jury, in which case t he original contract conditions shall remain unchanged and the period between th e date the procedure was declared unsuccessful and the date of publication of th e notice of negotiated contract shall not exceed twenty-one (21) days; benefits that the developer should have it done by others in the conditions of the origin al contract, following the failure of its holder.

EL ARAF / U.1.-M.P. 82 Case for the award of a negotiated contract (without advertising and without com petition) benefits that enforcement can not, due to the needs of their technical or co mplex nature requiring special expertise, be entrusted to a service provider; be nefits that the necessities of national defense or public safety require they ar e kept secret. These markets must have been previously authorized on a case by c ase, by the Prime Minister's special report on the government authority concerne d;€The objects to be manufactured exclusively to holders of patents; Overtime to hire a contractor, supplier or service provider already awarded a contract, it is desirable from the standpoint of time to execution or the normal operation of an execution does not introduce a new contractor, supplier or service provider

if the benefits in question, unforeseen at the time of award the main contract, are considered incidental to that market and do not exceed ten percent (10%) of the amount. Regarding the work, there must also be that their implementation inv olves a hardware already installed or used on site by the contractor. These mark ets are established in the form of amendments to original contracts relating the reto; EL ARAF / U.1.-M.P. 83

Case for the award of a negotiated contract (without advertising and without com petition) benefits to achieve an extreme urgency resulting from circumstances unforeseen by the developer and not of his doing particularly following the occurrence of a catastrophic event such as an earthquake, flood, tsunami, drought , locust inv asions, fires, buildings or structures threatened ruin, and which are not compat ible with the time required for publicity and a competitive prerequisites. The m arkets for these services must be strictly limited to requirements necessary to meet the emergency, the emergency services of interest to homeland defense, secu rity of the population or traffic safety road, air or sea or resulting extraordi nary political events, the execution must begin before all market conditions hav e been determined, pursuant to the provisions of § c) of Article 73 below. The c ontracts to be awarded under this head of emergency must be approved by decision of the Prime Minister.

EL ARAF / U.1.-M.P. 84 Form of negotiated contracts • negotiated contracts are concluded: - Is the act of undertaking by a person who proposes to treat and the special co nditions - either on a match following the usage of trade conditions for carryin g out the delivery - or exceptionally by exchange letters or special agreement, for emergency benefits and whose implementation is incompatible with the prepara tion of documents constituting the contract. This exchange of letters or special agreement aforesaid shall at least state the nature of operations, and the limi t of State commitments in the amount and duration. It sets a final price or a pr ovisional price. In the latter case, it can give rise to any advance payments or installments. The exchange of letters or special agreement shall be rectified a s market prices in the final three months. If this period is exceeded, the contr oller of obligations must be informed in writing. EL ARAF / U.1.-M.P. 85 Reasons to be produced by candidates in case of negotiated contract • Any candidate to sign a negotiated contract must provide an administrative rec ord and a technical file, constituted as provided in the tender procedure EL ARAF / U.1.-M.P. 86 Order Forms Expenditure incurred on single bills to meet the needs of a more or less urgent

and less important - Conditions for the award of Purchase Orders - Risks Split EL ARAF / U.1.-M.P. 87 Conditions for the award of a Purchase Order • • • It may be made by purchase orders, purchasing supplies and the realization of works or services and this, in the limit of two hundred thousand (200,000) d irhams. The limit of two hundred thousand dirhams, referred to above, shall be c onsidered as part of a budget year, according to each person authorized to incur obligations and according to similar benefits, regardless of their budgetary su pport. The list of benefits that can be PO is provided by the decree attached (A nnex 3). It may be amended or supplemented by Prime Minister's decision, taken o n the proposal of the Minister for Finance and after consultation with the trade commission. Purchase orders must determine specifications and consistency of se rvices to meet and, where applicable, the execution time or date of delivery and warranty terms.€The benefits provided through purchase orders must be pre-compe tition except in cases where it is not possible or is inconsistent with the prov ision. The client is required for this purpose, to consult in writing at least t hree competitors and have at least three quotations contradictory. In exceptiona l circumstances and to reflect the specificities of certain departments, the Pri me Minister may, by decision after consulting the Minister of Finance and Procur ement Commission, authorize, for certain benefits, raising the limit of two hund red thousand (200,000) dirhams. • • • EL ARAF / U.1.-M.P. 88 Risks Split on Spending Order • Overspending; • False accusations budgetary • Di stortion of the expenditure; Challenge to the disciplinary responsibility of the officer before the judge DBF EL ARAF / U.1.-M.P. 89 4.2. Publicity and consultation • Measures publication and consultation • File a n appeal to the competition • Right of Information competitors EL ARAF / U.1.-M.P. 90 Measures of publication and consultation • Invitation to tender; • Circular Letters • Regulation consultation or screenin g EL ARAF / U.1.-M.P. 91

Invitation to tender (AOO, PDO, contests) - Making information about the main market in question - To be published in two newspapers, an Arabic-language national broadcast - Able to be contacted by all appropriate means (gate, website, etc.: Dematerialization - To be published 21 days before the date fixed for receipt of bids (15 days in case of emergency • However, this period of twenty-one (21) days is extended to forty (40) days in the following cases: - For works contracts whose estimated value equals or exceeds seventy-five milli on (65,000,000) DH duty - for supplies and services whose estimated value equals or exceeds one million eight one hundred thousand (1,800,000) DH duty. - These thresholds can be changed by decree of the Minister of Finance after consultatio n with the trade commission. EL ARAF / U.1.-M.P. 92 Circular Letters (AOR) - Addressed at least three competitors - Making key infor mation about the market in question - To be published 15 days before the date of opening of bids; EL ARAF / U.1.-M.P. 93 Rules for consultation or screening • The list of documents required by competit ors; • The criteria for appraising the capabilities of competitors • The tender evaluation criteria; • The limitation, if any, access to many lots; • The condit ions, if any, eligibility variants EL ARAF / U.1.-M.P. 94 Folder tendering • • • • • • • • • • • Invitation to tender; Copy of SPC Memo presenting the subj ect of the contract (PAO) Sample application (PAO) The plans and documentation t echniques, where appropriate; model of the commitment models of the price schedu le and detailed estimate, the model of the decomposition of the overall model fr amework of sub-retail prices if applicable model the sworn statement; Regulation Consultation • The owner is required to send to members of the Committee of the tender dossier tend er at least eight (8) days before the mailing of the notice for publication. • T he aforementioned members have a period of eight (8) days and to notify the clie nt of their comments. EL ARAF / U.1.-M.P. 95 Availability of records to competitors • • Records tender must be available before the publication of the tender and ma de available to applicants upon issuance of the first invitation to tender until the deadline for submission of tenders. Records tender may be sent by post to c ompetitors who request it in writing to their expense and their own risk. The po ssibility of transmission by post files to competitors does not apply to cases i nvolving tender drawings or technical documents. An order of the Minister of Fin ance shall determine the procedures for the use of this facility. The owner must keep a register containing the names of candidates who withdrew, in the case of the tender with an indication of the time and date of withdrawal. If for any re ason,€The tender dossier is handed to the competitor or his representative who a

ppeared at the place specified in the invitation to tender, the developer is req uired to issue The same day, a certificate stating the reason for non delivery o f case and stating the date set for its withdrawal to the preparation of the can didate's file. A copy of the certificate must be kept in archives. If not return the file to the day named in the certificate which was issued, the competitor m ay enter, by registered letter with acknowledgment of receipt, the authority und er which the contracting authority concerned to outline the circumstances of pre sentation of its application for obtaining a file and the response has been made . EL ARAF / U.1.-M.P. 96 • • • Availability of records to competitors • When the merits of the application is made, the authority to order the owner o f record for the immediate delivery of tender to the applicant or any postponeme nt of the bid opening date if the time still does not the candidate to prepare h is case. The records of the tender are given free to competitors with the except ion of drawings and technical documents whose reproduction requires specific tec hnical equipment. The pay on delivery of these documents is fixed by order of th e Minister of Finance. Exceptionally, the client can make changes in the tender dossier without changing the object of the contract. These changes must be commu nicated to all competitors have withdrawn the said file, and inserted in the fil es made available to other competitors • • EL ARAF / U.1.-M.P. 97 Availability of records to competitors • • When changes require the publication of a notice amending, it must be publis hed in accordance with § 2-I paragraph 1 of Article 20 below. These changes can occur at any time within the initial period of advertising the notice subject to the bid opening session will be held in a minimum period of ten (10) days from the day after the date of the last publication of the amendment without the date of the new session is earlier than originally planned. The amendments mentioned above occur in the following cases: - When the owner decides to introduce changes in the tender dossier which requir e additional time to prepare tenders - in the case of correct obvious errors fou nd in the notice published - when, after publication of the notice, the owner fi nds that the time must elapse between the date of publication and the opening se ssion of folds is not consistent with the statutory deadline. • EL ARAF / U.1.-M.P. 98 Right of information to competitors • Any competitor may ask the owner by registered letter with acknowledgment of r eceipt by fax or electronically confirmed to provide clarification and informati on concerning the tender or related documents. This application is admissible on ly if it reaches the client at least seven (7) days before the date set for the

session opening. Any clarification or information provided by the client to a co mpetitor to the latter's request, must be transmitted on the same day and under the same conditions, and at least three (3) days before the date set for the ses sion opening of bids, other competitors have withdrawn the tender dossier and th e letter with acknowledgment of receipt by fax or electronically confirmed. It i s also available to any other competitor and communicated to members of the comm ittee bidding. When conducted a meeting or site visit, the contracting authority shall prepare a report stating the requests for clarification and answers made at this meeting or visit. This record is sent to all competitors and members of the committee bidding. Competitors who have not attended or have not attended th e site visit are not allowed to raise claims on the conduct of the meeting or si te visit as related in the minutes which has been communicated or made available by the owner. • • • EL ARAF / U.1.-M.P. 99 4.3. Enter the competition • Terms of participation • Submission of bids. EL ARAF / U.1.-M.P. 100 Requirements for Participation • Legal capacity€technical and financial • Locati on vis-vis the regular tax (or guarantee) • Subscription regular statements of w ages from the CNSS • Do not be in judicial liquidation; • Do not be in receivers hip (except Leave) EL ARAF / U.1.-M.P. 101 Submission of tenders • • • • Administrative Record File Technical File additive offer financial and t echnical EL ARAF / U.1.-M.P. 102 Administrative Record • Common Areas: - Declaration of Honour - Justification of powers - Certificate certifying the r egular reporting of wages from the CNSS (- 1 year) - Tax certificate justifying the discharge activity and patentale (or guarantee); • Parts may be required: - Receipt of the realization of the bid bond, if any; - Certificate of registrat ion in CR (TM) - Proof of nationality and the company and its leaders (DNA) EL ARAF / U.1.-M.P. 103 Technical file - A note of presentation of the human and technical - Certification of reference

issued by the men of art (private and public), where applicable - other documen ts required by the record of competitive bidding; = The "certificate of qualification or approval ' EL ARAF / U.1.-M.P. 104 File additive • The CPS signed and initialed initialed • RC • All other parts required for the formation of the file ... EL ARAF / U.1.-M.P. 105 Providing financial and technical • Financial offer: - The act of engagement - The price schedule and the estimated retail • Provides technical - Methodology - Technical solution - Means to implement • Offer with variations (in a separate folds) by defining: - Purpose - Limits - Conditions EL ARAF / U.1.-M.P. 106 4.4. Judgement bids • • • • Authorities empowered; Confrontation offers; Sanctions examining tenders ; Reporting. EL ARAF / U.1.-M.P. 107 Authorities empowered • • • • Board tender (AOO and AOR); Admission Committee (PDO and contests); Jury Contest. Possibly: - Sub commissions - Sub Panel samples, pros .. etc.. EL ARAF / U.1.-M.P. 108 Commission awarded choosing procurement Subcommittee review samples ... .. Technical Subcommittee Pr e sident of the Commission Anchor Representing the M.C.I. (1 M) OFFERS Anchor Representing the M.O. Anchor Representing From TGR. Anchor Representing the M.F. (3 MM) Coll é é GIAL EL ARAF / U.1.-M.P. 109

Balancing supply 1. Intermediate 2 exams. Bid Opening EL ARAF / U.1.-M.P. 110 Intermediate examinations • Works Subcommittee of samples (AO) • Work of the adm issions committee (PDO, and contests) EL ARAF / U.1.-M.P. 111 Bid Opening • Procedures in public (except DNA): 1. Reading of the notice of tender 2. Takin g note of the results of examination of samples 3. Final adoption of the list of folds 4. Opening and presentation of their folds and procedures contained in ca mera (except DNA): - Review of administrative record and technical • Note: When the committee is either an absence of a component part of administrative record, except for receipt of bid bond or certificate of deposit and several taking place either material errors or discrepancies in the document s of that file, it retains the offer (s) competitor ( s) concerned (s) subject t o the production of such documents or the introduction of necessary corrections • Statement (in public) of eligible candidates - Review of financial offers - Re view of technical bids • Checking arithmetic results of the tender selected EL ARAF / U.1.-M.P. Choosing the most economically advantageous in a system of multi-criteria assess ment and weighting well studied. 112 Commission tendering Not provided Intermediate Examination? Planned Report Review Open folds Reading the review of administrative records and open technical Unsatisfactory Unsatisfactory Examination Results? satisfactory satisfactory Offer financial e? Discarded

Discarded Unsatisfactory Technical bid? satisfactory Euchre EL ARAF / U.1.-M.P. Allocation 113 Penalties for the evaluation of tenders • 1st Time: At the examination of admini strative and technical file; • Stage 2: At the tender evaluation - NB: Possibility of granting a preferential right ... EL ARAF / U.1.-M.P. 114 Stage Review D.€A & T. : Reasons for spacing - Applicants subject to exclusion - Candidates without the r equired quality - Hot unsatisfactory administrative and technical - financial an d technical capabilities inadequate - Result Review unsatisfactory samples EL ARAF / U.1.-M.P. 115 Stage Review offers: Grounds for separation - - - - Proceedings of enlistment not comply with the contract; Express restrict ions or reservations should not consistent with models, not completed and signed NB: - If an offer considered abnormally low (-25%), it is necessary to understan d the agent for confirmation - If an offer considered excessive (25%) - In case of tie bids , bidders submit new offers or changes to draw EL ARAF / U.1.-M.P. 116 • The pre-emptive production cooperatives governed in the event of equal tenders ; • Moroccan bidders Solely for purposes of comparison of tenders relating to wo rks and related studies, and after the appeal board to competition has stopped c ompetitors eligible, the amounts of bids submitted by foreign firms are increase d by a percentage not exceeding 15%. EL ARAF / U.1.-M.P. 117 Reporting. • • • • Minutes of the meeting reviewing the offers (the bench) Report of subcom mittees Justification on grounds of separation; The contracting authority shall notify the successful bidder of acceptance of his offer by letter (in 10js) • Am erican competitors dismissed by letter recommended (CP Récipicé attached) EL ARAF / U.1.-M.P. 118 Cancellation of tender • The competent authority may, without thereby incurring any liability in respec t of competitors and whatever the stage of the procedure for concluding the cont ract, cancel the tender in the following cases:

- When economic data or technical services subject to the tender have been funda mentally altered - where exceptional circumstances do not ensure the normal oper ation of the market - when the bids received exceed the budget allocated market - if a procedural error has been detected - when there was no competition - in c ase of justified complaint of a competitor in the conditions. • • The owner must notify the contractor stating the reason for cancellation of the tender. The cancellation of a tender can not justify recourse to the negotiated procedure. EL ARAF / U.1.-M.P. 119 Personal claims • • • Any competitor may enter the contracting authority concerned in writing if it finds that one of the rules of procedure for procurement under this decree w as not enforced. The claim of the competitor must be made between the date of pu blication of the notice of tender and seven (7) days after posting the results o f the tender. It is the same when a competitor challenges the reasons ousted the elimination of its bid by the commission and who have been brought to its notic e by the contracting authority pursuant to Article 45 above. In this case, the c hallenge to the competitor must be made within ten (10) days from the date of re ceipt of the letter. The owner made it known to the competitor concerned, the Go vernment's response to her complaint within seven (7) days from the date of rece ipt of the claim. • EL ARAF / U.1.-M.P. 120 Right of complaint (continued) • If the competitor is dissatisfied with the response from the client, he may re fer the minister concerned. In this case, the Minister may either: - order to pr oceed with the recovery of the recorded fault - decide to cancel the procedure. However, before making this decision, he may decide to suspend the process of te ndering for a period of twenty (20) days maximum, provided that: • the claim is based and has good arguments to show that the competitor will suffer harm if the procedure is not suspended; • a suspension would not cause disproportionate har m to the client or to other competitors. The suspension under this section does not apply if the Minister decides it is necessary to proceed to the procurement of urgent public interest considerations. The Minister's decision must state the reasons for the finding that there are such considerations. • EL ARAF / U.1.-M.P. 121 Right of complaint (continued) • Any decision taken under this article shall state the reasons and circumstance s of its adoption must be filed in the procurement procedure and notified to the competitor making the complaint. • may not, however, be subject to challenge by competitors: • Choosing a procurement procedure or selection of candidates • Th e decision of the committee bidding to reject the all tenders in accordance with

the provisions of Article 42 above; • The decision of the competent authority t o cancel the tender in accordance with Article 46 above. EL ARAF / U.1.-M.P. 122 4.4. Conclusion of the contract market • Powers to conclude the contract market • The creation of the record of commitment of the proposed contract EL ARAF / U.1.-M.P. 123 Powers of deal• Informing the bidder within 15 days from the date of completion of the commiss ion; • The conclusion of the contract between on the one hand, the MO (or MOD) a nd the other The successful bidder; • However, the MO Guard: - The discretion not to proceed with an appeal to the Competition - The power of opportunity to repeat the entire procedure; No compensation can be claimed; EL ARAF / U.1.-M.P. 124 The constitution of the record of engagement • Objectives: - Reducing the control process prior - Allow execution of state budget in the be st conditions • The component parts: Unit Next EL ARAF / U.1.-M.P. 125 Training plan • Unit 1: Government procurement; • Unit 2: Implementation of public procurement ; • Unit 3: Management of the procurement function in public procurement; • Unit 4: Audit of procurement; • Unit 5: Rights and Obligations signatories of procur ement; EL ARAF / U.1.-M.P. 126