Written report of the client

Pursuant to Section 85 of Act No. 137/2006., on Public Contracts, as amended (hereinafter

referred to as “ZVZ”)

1. Public contract identification

PUBLIC CONTRACT IDENTIFICATION

Výzkumný Ústav Anorganické Chemie, a.s., Business
Identification Number: 622 43 136, with its registered seat in
Client:
Ústí nad Labem, Revoluční 84/1521, Zip Code 400 01
(hereinafter referred to as the “Client)
Name of the Public Contract: “Experimental units for the UNICRE project”
Manner of awarding the public
Open tender pursuant to Section 27 of ZVZ
contract:
Public contract characteristics: Public contract for deliveries
Commencement date of the
March 4th, 2013
tender:
Public contract registration
347134
number:
Cancellation of the tender pursuant to Section 84, Paragraph
Tender cancellation procedure: 1, Letter b) of ZVZ based on the decision of the Client from
June 28th, 2013

2. Subject of the public contract

The subject of the public tender is a delivery of the pilot testing equipment, working in a
continuous manner, including related services and activities, pursuant to the contractual
documentation. The equipment includes especially an apparatus for testing catalytic processes
under high pressures and temperatures. Typical processes that the pilot units will allow to test
are: hydrorefining, hydrogenation, hydrocracking, isomerization of dehydrogenation,
dealkylation, etc.

CPV code: 38970000-5 - Research, testing and scientific technical simulators.

3. Identification data of the applicants and their price offers

Offer sequence number: 1

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 Applicant: XYTEL INC.,
with its registered seat at: PO BOX 329- 4220, S. Church St. Ex, Roebuck,
SC 29376
Price offer, excluding VAT: 65,660,000.00 CZK

Offer sequence number: 2

Applicant: Vinci Technologies,
with its registered seat at: 27 Brue du Port – Prac de l'lle, 92000
Nanterre - France
Price offer, excluding VAT: 60,840,000.00 CZK

Offer sequence number: 3

Applicant: BioTech a.s.,
with its registered seat at: Tymiánova 619, 101 00 Prague 10,
Business Identification Number: 256 64 018
Price offer, excluding VAT: 67,000,000.00 CZK

4. Applicants excluded from participating in the tender

All of the above mentioned applicants have been excluded from participating in the tender; they
are XYTEL INC., with its registered seat at: PO BOX 329- 4220, S. Church St. Ex, Roebuck, SC 29376,
Vinci Technologies, with its registered seat at: 27 Brue du Port – Prac de l'lle, 92000 Nanterre –
France, and BioTech a.s., with its registered seat at: Tymiánova 619, 101 00 Prague 10, Business
Identification Number: 256 64 018.

a) Justification of the exclusion of XYTEL INC.:

Pursuant to Section 60, Paragraph 1 of ZVZ, the Client decided to exclude the applicant based
on the recommendation of the evaluation committee because the applicant did not comply
with the qualification requirements.

Demonstrating compliance with the basic qualification requirements pursuant to Section 53,
Paragraph 1, Letters a) and b) of ZVZ
The Client required that the applicant submits its excerpt from the rap sheet of the country of
its registered seat/business location.
In Article 4.1. of the contractual documentation, the client required compliance with the

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qualification requirements pursuant to Section 53, Paragraph 1, Letters a) and B) of ZVZ. For
the purpose of demonstrating their fulfilment, the Client required an excerpt from the rap
sheet.
Pursuant to Section 53, Paragraph 1, Letters a) and b) of ZVZ, these qualification requirements
shall be fulfilled not only by the applicant itself, but also by the members of its statutory body.
Moreover, these qualification requirements have to be fulfilled not only in relation to the
Czech Republic but also to the country of the applicant’s registered seat, business location or
residence.
Because of the above stated facts and pursuant to Section 53, Paragraph 3, Letter a) of ZVZ,
the applicant was obliged to submit an excerpt from the rap sheet also for the applicant as a
legal entity in relation to the Czech Republic as well as to the country of the applicant’s
registered seat, business location or residence.
Pursuant to Section 51, Paragraph 7 of ZVZ, shall a certain document not be issued based on
the legal regulations valid in the country of the applicant’s registered seat, business location or
residency, the foreign supplier shall be obliged to demonstrate its fulfilment of the
corresponding part of the qualification by the means of a statutory declaration.

The applicant did not submit an excerpt from the rap sheet applicable to the country of its
registered seat/business location.
In its offer, the applicant did not submit any document, which would demonstrate compliance
with the qualification requirements pursuant to Section 53, Paragraph 1, Letters a) and b) of
ZVZ, by the applicant as a legal entity in relation to the country of its registered seat/business
location. Moreover, in its offer, the applicant did not submit a statutory declaration on the fact
that such a document cannot be issued in the country of its registered seat/business location.
Because of the above stated facts, the applicant did not demonstrate its compliance with the
basic qualification requirements pursuant to Section 53, Paragraph 1, Letters a) and b) of ZVZ,
since the applicant did not submit the required documents.

Demonstrating compliance with the technical qualification requirements pursuant to Section

56, Paragraph 1, Letter a) of ZVZ
The Client required that the applicant submits a certificate on providing important deliveries.
Within the frame of the technical qualification requirements and pursuant to Section 56,
Paragraph 1, Letter a) of ZVZ, the Client, in Article 4.4 a) of the contractual documentation,
required a list of important deliveries provided by the supplier in the course of the last three
years.
Pursuant to Section 56, Paragraph 1, Letter a) of ZVZ, such a list shall include a certification
issued or signed by a public client, provided the given goods were delivered to a public client; a
certification issued by another person, provided the given goods were delivered to a different

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 person than a public client; or a contract concluded with another person and a document that
demonstrates fulfilment of the given contract by the supplier if this other person is not able to
issue such a certification.
The Client also stated this requirement for attaching the above explained certificate in Article
4.4 of the contractual documentation.

The applicant did not submit the required certificate on providing important deliveries.
The applicant demonstrated the above stated technical qualification requirements by
submitting a list of important deliveries in the form of a declaration on fulfilling the technical
qualification requirements from May 11th, 2013.
The submitted list of important deliveries does not fulfil the legal requirements for
demonstrating the qualification requirements pursuant to Section 56, Paragraph 1, Letter a) of
ZVZ, because the applicant did not submit any certificates on providing the stated important
services.
The submitted list of important deliveries does not fulfil the legal requirements for
demonstrating the qualification requirements pursuant to Section 56, Paragraph 1, Letter a) of
ZVZ, because the applicant did not submit any certificates on providing the stated important
services. The applicant submitted a contract concluded with one of the clients, however, from
the perspective of the given certificate requirements, such documentation is insufficient.
Most of all, the applicant did not explain in its offer why the applicant did not submit the
corresponding certificate of the given client for demonstrating the technical qualification
requirements in question. Instead, the applicant submitted only business documents. Such
documents can replace the above stated certificates only if the certificate cannot be obtained
from the given client. The submitted business documents do not demonstrate, in any manner
whatsoever, that the supplier actually and duly provided the stated services.
Because of the above stated facts, the applicant did not demonstrate its compliance with the
technical qualification requirements pursuant to Section 56, Paragraph 1, Letter a) of ZVZ,
since the applicant did not submit the required certificates.
Because of the above stated facts, the applicant therefore did not demonstrate its compliance
with the above stated qualification requirements since it did not duly submit the documents
specified in Section 53, Paragraph 3, Letter a) of ZVZ and Section 56, Paragraph 1, Letter a) of
ZVZ.

b) Justification of the exclusion of Vinci Technologies:

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Pursuant to Section 60, Paragraph 1 of ZVZ, the Client decided to exclude the applicant based
on the recommendation of the evaluation committee because the applicant did not comply
with the qualification requirements.

Demonstrating compliance with the technical qualification requirements pursuant to Section

56, Paragraph 1, Letter a) of ZVZ
The Client required that the applicant submits a certificate on providing important deliveries.
Within the frame of the technical qualification requirements and pursuant to Section 56,
Paragraph 1, Letter a) of ZVZ, the Client, in Article 4.4 a) of the contractual documentation,
required a list of important deliveries provided by the supplier in the course of the last three
years.
Pursuant to Section 56, Paragraph 1, Letter a) of ZVZ, such a list shall include a certification
issued or signed by a public client, provided the given goods were delivered to a public client; a
certification issued by another person, provided the given goods were delivered to a different
person than a public client; or a contract concluded with another person and a document that
demonstrates fulfilment of the given contract by the supplier if this other person is not able to
issue such a certification.
The Client also stated this requirement for attaching the above explained certificate in Article
4.4 of the contractual documentation.

The applicant did not submit the required certificate on providing important deliveries.
The applicant demonstrated the above stated technical qualification requirements by
submitting a list of important deliveries in the form of a declaration on fulfilling the technical
qualification requirements from May 16th, 2013.
For the important deliveries provided for two clients, the applicant did not submit any
certificates or business documents, i.e. contracts and documents that demonstrate fulfilment
of the contract. In the case the third client, the applicant submitted certain business
documents, however, these documents are completely insufficient for the purpose of
demonstrating compliance with the qualification requirement in question.
Most of all, the applicant did not explain in its offer why the applicant did not submit the
corresponding certificate of the given client for demonstrating the technical qualification
requirements in question. Instead, the applicant submitted only business documents. Such
documents can replace the above stated certificates only if the certificate cannot be obtained
from the given client. The submitted business documents do not demonstrate, in any manner
whatsoever, that the applicant actually and duly provided the stated services.
Because of the above stated facts, the applicant did not demonstrate its compliance with the
technical qualification requirements pursuant to Section 56, Paragraph 1, Letter a) of ZVZ,
since the applicant did not submit the required certificates.

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Demonstrating compliance with the technical qualification requirements pursuant to Section
56, Paragraph 1, Letter b) of ZVZ
The Client required that the applicant submits documents that demonstrate its authorization to
conduct services for the given laboratory equipment.
Within the frame of the technical qualification requirements and pursuant to Section 56,
Paragraph 1, Letter b) of ZVZ, the Client, in Article 4.4 b) of the contractual documentation,
requires that the employees of the applicant are authorized to conduct services related to the
given device type, provided such an authorization is necessary pursuant to the corresponding
legal regulations.
In Appendix 2 of the contractual documentation, in the list of responsible persons for
individual activities, the Client stated that the applicant is authorized to work with electric
devices of up to 400 V pursuant to Decree No. 50/1978 Coll., on Professional Qualifications in
Electrical Engineering, issued by the Czech Occupational Safety Office and the Czech Mining
Office, and that the applicant is authorized to conduct service activities on microreactor-based
equipment.
Pursuant to Section 51, Paragraph 7 of ZVZ, foreign suppliers shall demonstrate their
compliance with the qualification requirements by submitting the appropriate documents in
the original language together with an officially verified translation to Czech, unless the client
specifies otherwise in the contractual conditions.
In Point 8.11 of the contractual documentation, the Client specified that the proceedings
languages will be Czech and English.

The applicant did not submit a duly translated document that would demonstrate its
authorization to work with electric devices and its authorization to conduct service activities on
microreactor-based equipment.
In its offer, the applicant submitted documents related to its professional qualification in
electrical engineering and to safety training in French. These documents were accompanied by
translations, however, the translations are not appropriately verified by the means of an
official seal.
The applicant therefore did not comply with the legal requirement for submitting an officially
verified translation of the document to the Czech language.
Moreover, with regard to the submitted documents, the applicant did not demonstrate in any
way whatsoever that the submitted documents, acquired in France, correspond to the level of
the authorizations required by the Client. Based on the submitted documents, the evaluation
committee is thus not able to assess if the technicians included in the supplier’s list of
technicians have the required authorization, i.e. the authorization to work with electric devices
of up to 400 V pursuant to Decree No. 50/1978 Coll., on Professional Qualifications in Electrical

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 Engineering, issued by the Czech Occupational Safety Office and the Czech Mining Office, and if
they are authorized to conduct service activities on microreactor-based equipment.
Because of the above stated facts, the applicant did not demonstrate its compliance with the
technical qualification requirements of the Client pursuant to Section 56, Paragraph 1, Letter
b) of ZVZ.
Because of the above stated facts, the applicant therefore did not demonstrate its compliance
with the above stated qualification requirements since it did not duly submit the documents
specified in Section 56, Paragraph 1, Letter a) of ZVZ and Section 56, Paragraph 1, Letter b) of
ZVZ.

c) Justification of the exclusion of BioTech, a.s.:

Pursuant to Section 60, Paragraph 1 of ZVZ, the Client decided to exclude the applicant based
on the recommendation of the evaluation committee because the applicant did not comply
with the qualification requirements.

Demonstrating compliance with the technical qualification requirements pursuant to Section

56, Paragraph 1, Letter a) of ZVZ
The Client required that the applicant submits a certificate on providing important deliveries.
Within the frame of the technical qualification requirements and pursuant to Section 56,
Paragraph 1, Letter a) of ZVZ, the Client, in Article 4.4 a) of the contractual documentation,
required a list of important deliveries provided by the supplier in the course of the last three
years.
Pursuant to Section 56, Paragraph 1, Letter a) of ZVZ, such a list shall include a certification
issued or signed by a public client, provided the given goods were delivered to a public client; a
certification issued by another person, provided the given goods were delivered to a different
person than a public client; or a contract concluded with another person and a document that
demonstrates fulfilment of the given contract by the supplier if this other person is not able to
issue such a certification.
The Client also stated this requirement for attaching the above explained certificate in Article
4.4 of the contractual documentation.

The applicant did not submit the required certificate on providing important deliveries.
The supplier demonstrated the above stated technical qualification requirements by
submitting a list of important deliveries in the form of a declaration on fulfilling the technical
qualification requirements from May 30th, 2013.
However, the submitted list of important deliveries does not fulfil the legal requirements for
demonstrating the qualification requirements pursuant to Section 56, Paragraph 1, Letter a) of

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ZVZ, because the applicant did not submit any certificates on providing the stated important
services. The declaration of the given subcontractor submitted by the applicant cannot be
considered such a certificate since it was issued by an entity that provides deliveries and not
by an entity, for the benefit of which the given contract was implemented.
Because of the above stated facts, the applicant did not demonstrate its compliance with the
technical qualification requirements pursuant to Section 56, Paragraph 1, Letter a) of ZVZ,
since the applicant did not submit the required certificates.

Demonstrating compliance with the technical qualification requirements pursuant to Section

56, Paragraph 1, Letter b) of ZVZ
The Client required that the applicant submits documents that demonstrate its authorization to
conduct services for the given laboratory equipment.
Within the frame of the technical qualification requirements and pursuant to Section 56,
Paragraph 1, Letter b) of ZVZ, the Client, in Article 4.4 b) of the contractual documentation,
requires that the employees of the applicant are authorized to conduct services related to the
given device type, provided such an authorization is necessary pursuant to the corresponding
legal regulations.
In Appendix 2 of the contractual documentation, in the list of responsible persons for
individual activities, the Client stated a requirement for the authorization to work with electric
devices of up to 400 V pursuant to Decree No. 50/1978 Coll., on Professional Qualifications in
Electrical Engineering, issued by the Czech Occupational Safety Office and the Czech Mining
Office.

The applicant did not submit any documentation that would demonstrate its authorization to
work with electric devices.
In its offer, the applicant did not submit any documentation that would demonstrate
authorization of its technicians for working with electric devices of up to 400 V pursuant to
Decree No. 50/1978 Coll., on Professional Qualifications in Electrical Engineering, issued by the
Czech Occupational Safety Office and the Czech Mining Office.
Because of the above stated facts, the applicant did not demonstrate its compliance with the
technical qualification requirements of the Client pursuant to Section 56, Paragraph 1, Letter
b) of ZVZ.

Demonstrating compliance with the qualification requirements by subcontractors

The applicant is obliged to submit a document demonstrating compliance with the professional
qualification requirement pursuant to Section 54, Letter a) by its subcontractor.
Section 51, Paragraph 4, Letter a) of ZVZ specifies that if compliance with qualification
requirements is demonstrated by a subcontractor, the supplier is also obliged to submit to the

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 given public client a document that demonstrates compliance of the professional qualification
requirement pursuant to Section 54, Letter a) of ZVZ by the subcontractor.
Pursuant to Section 51, Paragraph 7 of ZVZ, if the applicant submits documents that
demonstrate its compliance with the qualification requirements in other than the Czech
language, the applicant shall be obliged to attach an officially verified Czech translation of such
a document, unless the client specifies otherwise in the given contractual documentation.
In Point 8.11 of the contractual documentation, the Client specified that the proceedings
languages will be Czech and English.

The applicant did not submit a duly translated document that demonstrates compliance with
the professional qualification requirement pursuant to Section 54, Letter a) of ZVZ by its
subcontractor.
Demonstrating compliance with the qualification requirements, the applicant submitted a
document in German. The applicant did not attach any officially verified translation of the
document to the proceedings language, i.e. the applicant did not submit any translation.
The applicant therefore did not comply with the legal requirement for submitting an officially
verified translation of the document to the Czech language. As a result, the Client is not able to
assess its content.
Because of the above stated fact, pursuant to Section 51,Paragraph 4, Letter a) of ZVZ, the
applicant did not submit any document that would demonstrate compliance with the given
professional qualification requirement pursuant to Section 54, Letter a) of VZV by its
subcontractor.
Because of the above stated facts, the applicant therefore did not demonstrate its compliance
with the above stated qualification requirements since it did not duly submit the documents
specified in Section 51, Paragraph 4, Letter a) of ZVZ, Section 56, Paragraph 1, Letter a) of ZVZ
and Section 56, Paragraph 1, Letter b) of ZVZ.

5. Reasons of the tender cancellation

A total of three applicants have submitted offers for the stated public contract tender. However,
after assessing qualification in accordance with Section 59 of ZVZ, all applicants were excluded
from the tender for the public contract in question because they have not complied with the
qualification conditions pursuant to Section 60, Paragraph 1 of ZVZ.
Pursuant to Section 84, Paragraph 1, Letter b) of ZVZ, the Client, without any unnecessary delay,
cancels the tender if all suppliers are excluded from participating in the tender.
Since the Client excluded all suppliers from the Public Contract tender, the Client is obliged to
proceed in accordance with Section 84, Paragraph 1, Letter b) of ZVZ, and to cancel the given

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