CONFIDENTIAL

Technical Assistance and Supervision for the ISPA Contracts in

Pitesti
Works Contract
REHABILITATION AND EXTENSION OF THE WATER SUPPLY AND SEWERAGE
NETWORKS IN PITESTI
Proposed Negotiation Schedules
Introduction
The assessment of the Tenders for the Works Contract was undertaken by the evaluation
Committee from 16th March 2007 up to 27th April 2007 and the Tender Evaluation Report was
submitted to CFCU.
Taking into account that all offers received exceeded the available budget of the project,
according with the Evaluation Report conclusions and in line with the PRAG provisions, the
CFCU decided to cancel the tender procedure and to enter into negotiations.
The following tenders were considered compliant and to start negotiation with:

JV Soares da Costa
JV Hidroconstructia
Socogetra

(amount of: 21.917.656,00 Euro)

(amount of: 24.520.475,00 Euro)
(amount of: 26.163.307,00 Euro)

One comment needed to be done, as there was a fourth compliant Tenderer, - JV Avax with a
total amount of: 39.948.411,80 Euro. Because of the great difference in the price (more than
50% compared with the more expensive, Socogetra) and the fact that there are still three
other Tenderers to negotiate with, it was agreed to do not continue to negotiate with them at
this stage.
The Negotiation Strategy proposed here is based on the CFCUs and PIUs approach and
aims to support CFCU in the negotiations exercise, in particular to:

Agree in advance the aims of the negotiations in order to achieve a

successful contract

Enable those attending the negotiations to properly consider and

prepare for the activity
Enable any documentation required from the Tenderers to be
requested and completed by them in advance of the meetings of negotiations, and if
necessary for the information to be received and reviewed in advance of meetings with
the Tenderers.

Financing
The budget for the Project is 14.910.770 Euro. The available budget of the project remains
unchanged.
Staffing and Timing of the Negotiations
The Negotiation Committee established the programme for the Negotiations as follows.
Meetings finalizing negotiation strategy:

4-08 June 2007

Letters to the Tenderers for last best price:

08 June 2007

Answer reception by Fax from Tenderers - stage 1:

Review Submissions from Tenderers:

12 June 2007
Start on 12 June 2007

Review list of objectives to be subtracted:

Date to be fixed

Request of new prices after subtraction of items to the

Tenderers

Date to be fixed

Negotiations with selected Tenderers:

Date to be fixed

The composition of the Negotiation Committee was approved prior to the beginning of the
Negotiation Session.
Negotiation Strategy
We consider that the Negotiations will need to follow the steps:
1) Request of last best price from 3 Tenderers
2) Final Beneficiary requests more funds from Local Council around 7 Million Euro
needed
3) Final Beneficiary draw a list of objectives which were solved in the period between
drafting the FM and the present stage. (Works already done and works planned to be
done by Apa-Canal this year). Those objects will no longer be needed and therefore
could be deducted from all offers.
4) The Final Beneficiary presents the list of works that could be taken out from the
scope of work, as follows:
a. Included in the TD but not stipulated in the FM Collector from Fantanii Street.
b. Works already done by the Final Beneficiary Barbu Delavrancea, Raurilor,
Lotrului Al Sahia, 19 Noiembrie Streets.
c. Works to be undertaken by the Final Beneficiary The works to be carried out on
the water and/or wastewater networks under Piteti central road (ax central)
crossing Piteti (ie: A.Calinescu, Egalitatii, Fratii Golesti, part of Petrochimistilor,
Aurora, Eroilor, Calea Craiovei, Soldat Enache).
d. Equipments already purchased by the Final Beneficiary or in tendering process
e. Some other alternatives mentioned by the Beneficiary are related to the costs
related to the debris. Also some specific works connected to the street
reinstatement (eg. asphalt layer, grass,) can be undertaken by the Beneficiary.
In order to be able to assess the reduction of scope of work and value, a clear
breakdown of prices proposed by the Tenderers must be asked for some specific
items (eg. asphalt stripping, debri evacuation, concrete slab, asphalt layer, etc)
5) Based on the new budget ( the old allocation from Procurement Plan + the new funds
gathered from Local Council) and the reduced Scope of Works (based on streets
already done by Final beneficiary), an analyse will be done on the remaining
difference

6) An adequate reduction of the scope of work will be done based on the priority criteria
which needed to be done.
The strategy was developed in accordance with PRAG provisions (article 2.4.14) taking into
consideration that the original terms of the Tenderer Documents shall not be substantially
altered in order to respect the Financing Memorandum and the principles of equal treatment
should be observed.
Following the receipt of the acceptable answer from the Tenderers, they will be invited to
meetings to finalise negotiations.
Schedule of Activities in the Negotiations
We suggest the following schedule of activities in sequence:
i) Issue to the tenderers a request for lowest price
ii) Evaluate the answer from the Tenderers
iii) Review list of objectives to be subtracted
iv) Request quotations from Tenderers on the reduced scope of works
v) Finalise scope and price with the Tenderers
vi) Selection of a winner and award of Contract.

Chairperson:

Adela Vasile

Secretary:

Razvan Liutiev

Voting members:

Gelu Muja
Jean-Luc Grard
Vladimir Mateica

Non-voting members

Adrian Mihailescu
Daniel Dogeanu
Nicoleta Kalman