WORLD TRADE
ORGANIZATIONGPA/28/Add.2
22 November 2001
(01-5933)
Committee on Government Procurement Original:  English
NOTIFICATION OF NATIONAL IMPLEMENTING LEGISLATION
Communication from Latvia
Addendum
The following communication has been received from the Permanent Mission of the Republic
of Latvia with the request that it be circulated to the Committee on Government Procurement.
_______________
I refer to the accession process of Latvia to the WTO Agreement on Government
Procurement (GPA) and would like to ask you to circulate the Law on Procurement for State or Local
Government Needs of 5 July 2001* to the Parties to the GPA.
                                                     
* In English only.GPA/28/Add.2
Page 2
The Saeima1 has adopted
and the President has proclaimed the following Law:
ON PROCUREMENT FOR STATE OR LOCAL GOVERNMENT NEEDS2
Chapter I
General Provisions
Section 1. Terms Used in this Law
The following terms are used in this Law:
1) procurement  – purchases, or lease or services received, or construction performed
for the needs of the contracting authority;
2) candidate  – person or group of persons invited to participate in a restricted
competition or a negotiated procedure;
3) contracting authority :
a) State or local government institution or local government;b) a merchant (except a public services undertaking) who receives credit the 
guarantor of which with respect to repayment and utilisation is the State or a 
local government;
c) a commercial company established by the State or a local government and 
which the State budget or a local government budget finances;
d) a concessionaire (with respect to construction work) if the concession is 
entered into regarding use of the structure but payment for the concession is 
construction work;
e) a person carrying out a project which is financed also from the State budget 
or a local government budget with respect to acquisitions for the project;
f) a non-profit-making organization established by the State or a local 
government and which the State budget or a local government budget 
finances;
g) a commercial company established by the State or a local government and 
which manages immovable property of the State or a local government and 
performs civil legal transactions with respect to such property on behalf of a 
State institution or a local government;  or
h) a State or local government agency;
                                                     
1 The Parliament of the Republic of Latvia.
2 Disclaimer:  The English language text below is provided by the Translation and Terminology Centre
for information only;  it confers no rights and imposes no obligations separate from those conferred or imposed
by the legislation formally adopted and published.  Only the latter is authentic.  The original Latvian text usesmasculine pronouns in the singular.  The Translation and Terminology Centre uses the principle ofgender-neutral language in its English translations.  In addition, gender-specific Latvian nouns have beentranslated as gender-neutral terms, e.g. chairperson .GPA/28/Add.2
Page 3
4) tenderer  – a person or group of persons who have submitted a tender to participate in
the selection of a candidate in a restricted competition, or a tender to sell or lease
goods, provide services or perform construction work in accordance with the
requirements of the contracting authority;
5) tender of  abnormally low cost  – tender of a tenderer to sell or lease goods, provide
services or perform construction work for a price substantially lower than that
tendered by other tenderers if:
a) the contracting authority upon checking the price calculations has found 
errors there that were the reason for specifying such a low price;  or
b) the tenderer is unable to prove that it has access to special technology or 
market conditions that would allow such a low price to be specified;
6) goods  – any tangible or intangible property that satisfies some need and for which a
value may be specified when purchasing or selling it on the market;
7) services  – transport operations;  design work, also construction design;  drafting;
technology development;  research;  training;  provision of consultations;  testing;
diagnostics;  monitoring of structures and constructions;  work and process
management, also construction management;  and other work that is not construction
work or supply of goods.
8) construction  work  – work which is performed in a building or at a construction site
(on a parcel of land) during construction, reconstruction, renovation, restoration,
demolition and territory development with the use of construction materials and
construction equipment;
9) economically most advantageous tender  – the tender selected taking into account
various criteria:  regular payments, rentability, quality offered, aesthetic and
functional characteristics, technical maintenance possibilities, technical assistance,
price and others;
10) tender security  – sum of money as provided for by the competition regulations, or a
guarantee of such sum, which is submitted to the contracting authority by a tenderer
together with the tender as security for the validity of the tender;  and
11) security for a contract (obligation)  – reinforcement of obligations provided for in a
contract entered into by the contracting authority and the tenderer who has won thecompetition or the selected candidate.
Section 2. Purpose of this Law
The purpose of this Law is to ensure:
1) transparency of the procurement process;2) free competition for sellers of goods, lessors, providers of services and performers of
construction work, as well as equal and fair treatment of such;  and
3) effective utilisation of State or local government resources.GPA/28/Add.2
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Section 3. Basic Procurement Regulations
(1) A contracting authority and a tenderer shall exchange information in writing.
(2) A tenderer shall sign his or her tender and s ubmit it for the competition in writing, and shall
ensure that the information contained in the tender is not accessible until the moment of opening of
the tender.  When the term for submission of tenders has expired, a tenderer may no longer correct or
supplement his or her tender.
(3) A procurement contract shall be concluded in a written form.  If the value of a procurement
does not exceed LVL 1,000, an accounting corroborative document on the basis of which the
contracting authority shall pay money for the supply of goods or the provision of services inaccordance with the Law On Accounting may serve as a written contract.
(4) A contracting authority may divide procurement into parts (lots) in order to enable several
tenderers to participate in the procurement or to submit a tender for separate parts (lots) of the
procurement.  Several subject-matters of a contra ct may be combined into a single procurement if
there is technical justification therefor.
(5) A contracting authority may not set any requirements for tenderers or candidates that provide
more advantageous conditions for a particular tenderer or candidate than for the others, or which
otherwise restrict competition.
Section 4. Exceptions for the Application of this Law
(1) A contracting authority shall not apply this Law if a contract is being entered for:
1) the services of an arbitration board;
2) financial services for the realisation of monetary policy, currency exchange policy,
management of the State debt, reserves, and other financial management policies that
include transactions with securities and other financial instruments, as well as for the
services of the Bank of Latvia and the State Treasury;
3) services of natural persons in accordance with employment contracts;
4) official travel expenditures in accordance with Cabinet regulations;5) services of public services undertakings for the provision of which such undertakings
have exclusive rights in accordance with the Law On Construction Work, Supply,
Leasing and Services for the Needs of Public Services Undertakings;
6) services by such institutions as have been established to ensure the functions of the
contracting authority and which fully observe the requirements of this Law;
7) research services, except those services as are fully paid for by the contracting
authority and are utilised for its own needs only.
(2) A contracting authority may not apply the sections of Chapters IV, V, VI and VII if a
procurement contract is being entered into for:
1) a procurement for which the estimated contract price is less than LVL 1,000;GPA/28/Add.2
Page 5
2) design work, research, consultation, management and drafting services the estimated
contract price of which exceeds LVL 1,000, but does not exceed LVL 5,000;
3) procurement in the case where, as a result of unforeseen circumstances (fire, natural
disaster, war, epidemic, accident or other emergency circumstances which the
contracting authority could not have foreseen), an emergency situation has arisen and
it is necessary to rectify it in order to restore or ensure the activities of the contracting
authority, and the estimated price of the contract does not exceed LVL 5,000.
Section 5. Cases when Other Procurement Procedures may be Applied
If a procurement is financed by an international financial institution in the amount of more
than 50 per cent or the procurement is a program financed by foreign technical assistance or the
European Commission and a condition for the granting of such financing is the application of such
procurement procedure that differs from the procedures referred to in this Law, the contracting
authority may utilise the procedure referred to in  the conditions for the granting of the financing.
Chapter II
Determination of Estimated Procurement Contract Price
Section 6. Estimated Contract Price
(1) The estimated contract price is the sum of money, economically substantiated, that the
contracting authority has made provision for regarding the purchase or lease of goods or services, or
construction work, including all taxes.
(2) The estimated contract price shall be determined in order to select the method of procurement.(3) It is not permitted to divide the estimated contract price into parts (lots) in order to avoid the
application of this Law.  If the total amount of a procurement is divided into parts in accordance with
Section 3, Paragraph four of this Law and it is provided that separate procurement contracts will be
entered into for each part, the estimated contract pr ice shall be determined by taking into account the
total value of all the parts.
Section 7. Estimated Contract Price for Goods
(1) The estimated contract price for goods shall be determined by considering the planned sum
for the purchase of specific goods.
(2) If the expected purchase of one type of goods is expressed in such form that for equivalent
contract subject-matter several procurement contracts shall be entered into within a time-period of not
less than one month, the estimated contract price shall be determined by summing the estimatedcontract prices of all such procurement contracts.
Section 8. Estimated Contract Price for the Lease of Goods
If goods are leased with or without rights of pre-emption, the estimated contract price shall be
determined as the same as the total sum of the estimated monthly payments:
1) if the procurement contract is entered into for 12 months or a shorter period of time;GPA/28/Add.2
Page 6
2) in which the planned residual value of the leased goods shall be included if the
procurement contract is entered into for a time-period which is longer than
12 months;  and
3) which is multiplied by 48 if the procurement contract is entered into for an
unspecified period of time.
Section 9. Estimated Contract Price for Services
(1) The estimated contract price for services sh all be determined by taking into account all
payments that will be received by the provider of services, as well as the conditions referred to in this
Section.
(2) The estimated contract price for insurance sh all be determined by taking into account the
amount of insurance premiums to be paid.
(3) The estimated contract price for bank services and other financial services shall be determined
by taking into account payments for the services, as well as commissions and interest payments
received by the provider of services.
(4) The estimated contract price for design, also for construction design, shall be determined by
taking into account the total payment that the provider of services will receive.
(5) If the services are regular and a contract pri ce is determined for such services, the estimated
total contract price shall be determined based on the payment for services provided in one month,
multiplied by:
1) the number of months in the time-period for which the procurement contract will be
entered into if such time-period does not exceed 48 months;  or
2) by 48 if the procurement contract will be entered into for an unspecified period of
time, or a specified time longer than 48 months.
Section 10. Estimated Contract Price for Construction Work
(1) The estimated contract price for construction work shall be the estimated contract price for
the construction or a stage thereof that is to be put into service.
(2) The estimated contract price for construction work shall include the contract price of all
goods, lease or services thereof, except construction design that is necessary in order to perform the
relevant construction work, as well as the contract price for such goods or services as will be supplied
or provided to the performer of construction work by the contracting authority.
Section 11. Estimated Contract Price for Mixed Contracts
(1) If a procurement contract refers to the purchase or lease of specific goods, specific services or
parts thereof, specific construction work or parts ther eof, then the total estimated contract price of the
goods, services and construction work shall be taken into account.
(2) If a contract provides for the purchase or lease of both goods and services, such contract shall
be considered either as a purchase of goods contract or a provision of services contract depending on
what constitutes the larger part of the estimated contract price.  These conditions shall not apply to
construction work.GPA/28/Add.2
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Chapter III
Description of Work and Technical Specifications
Section 12. Description of Work
(1) The description of work is a document prepared by the contracting authority or – in the case
of construction design – a description of design work prepared by the contracting authority and the
designer, in which the set requirements for the necessary services, the purpose of such services and, if
necessary, the methods and resources to be utilised are specified, as well as the final result.  The
tenderer for construction work shall determine the costs of the positions referred to in the list ofquantities that is included in the components of the construction design prepared by the designer in
relation to the work to be performed, construction material and construction equipment.  The
description of work and list of the amounts shall be clear so that the tenderer, without additional
preparation and unjustified risk, may calculate the cost of services or construction work, and the
contracting authority can compare tenders.
(2) A description of work shall be included in the procurement procedure regulations and in the
contract.
(3) The description of work may not mention specific materials or processes, nor indicate trade
marks, patents and specific origin unless such conditions are crucial for the existence of the
subject-matter of the contract.  In such case, the sp ecific references shall be used together with the
words "vai ekvivalents" [or equivalent].
Section 13. Technical Specifications
(1) Technical specifications are:
1) description of goods that includes requirements with respect to quality, quantity,
operation, safety, dimensions, terminology, symbols, tests, methods of testing,
packaging, marking, labels and other substantiated and objective requirements so that
the goods conform to the procurement purpose;  and
2) a description (list) of standards and quality requirements specified for the intended
work and constructions in the construction project.
(2) By means of technical specifications, the contracting authority shall specify the level of
requirements that the goods or construction work have to conform to.  The technical specifications
shall be included in the procurement procedure regulations and the contract.  The contracting
authority shall give priority to those technical specif ications that focus on the result of the operation
(function) of the procurement object.  If the cont racting authority considers that such technical
specifications do not conform to the purpose of the contract, the contracting authority may alsodevelop such technical specifications characterizing the appearance of the procurement
subject-matter.
(3) The technical specifications may not mention specific materials or processes, nor indicate
trademarks, patents and specific origin unless such conditions are crucial for the existence of theprocurement subject-matter.  In such case, the spec ific references shall be used together with the
words "vai ekvivalents" [or equivalent].GPA/28/Add.2
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(4) If the procurement object conforms to the relevant standards, the technical specifications shall
be prepared in accordance with:
1) adapted European standards with the status of Latvian national standards;
2) Latvian national standards;  and
3) other standards of international or regional standardization organizations.
(5) Paragraph four of this Section shall not apply to cases when:
1) it is technically not possible to achieve conformity of goods to the standards
mentioned therein;  or
2) to incorporate the standards mentioned therein the contracting authority would have
to acquire goods which are incompatible with the goods at their disposal and which
the contracting authority is expecting to use together with the goods to be acquired.
Chapter IV
Requirements to be Met by the Tenderers
Section 14. Selection of Tenderers
The contracting authority shall examine tenders submitted by tenderers, which conform to the
requirements stipulated in this Chapter and whic h have been selected in accordance with the
procedures indicated in this Law.
Section 15. Provision of Equal Opportunity for Tenderers
(1) The contracting authority shall provide for all tenderers an equal opportunity to acquire rights
to enter into a procurement contract.
(2) Tenderers may join together in groups irrespec tive of their type of commercial activity and
submit a single joint tender if such is provided for in the competition regulations.  If the contracting
authority has selected such a group and a type of commercial activity has been specified as desired to
fulfil a procurement contract, the contracting authority may require the tendering group to form a
partnership.
(3) Transparency shall be observed throughout the procurement procedure.  If the contracting
authority provides additional information, such information shall be sent to all the tenderers as well as
to all who have received the competition regulations or the regulations for selection of qualifications
in a restricted competition.
(4) Participation of a tenderer in the procurement procedure may not be hindered.(5) It is prohibited for persons, who themselves or  their representatives have participated in the
preparation of the competition regulations or parts of such regulations or a request for a pricequotation, to participate in the relevant competition or request for a price quotation.
(6) From the time of submission of tenders to the opening thereof and the period of the evaluation
of the tenders and the notification of the results, the contracting authority is prohibited to provide
information on the existence of other tenders and the process of evaluating tenders.GPA/28/Add.2
Page 9
(7) The contracting authority may require payment for the competition regulations.  State
institutions shall transfer such payment into the State base budget, local governments and local
government institutions – into the budget of th e local government that holds the competition.
Payment may not exceed:
1) LVL 20 if the estimated contract price is up to LVL 50,000;2) LVL 50 if the estimated contract price is up to LVL 120,000;3) LVL 100 if the estimated contract price is higher than LVL 120,000;  or
4) LVL 200 if the estimated contract price is higher than LVL 4,500,000.
Section 16. Conditions for Excluding Tenderers
(1) A contracting authority shall not examine a tender and shall exclude the tenderer from future
participation at any stage of tender evaluations if:
1) a tenderer is declared insolvent, is in the process of liquidation, its business activity
has been suspended or interrupted, or legal proceedings have been initiated with
respect to termination of the activities of the tenderer, insolvency or bankruptcy;
2) a tenderer has tax debts or debts with respect to mandatory payments of State social
insurance in Latvia or another State in which the tenderer is registered;
3) violations of the professional activities of the tenderer have been determined in
accordance with procedures prescribed by law;
4) the tenderer is not registered in cases prescribed by law and in accordance with
procedures prescribed by law;
5) the tenderer does not have a certificate of origin of goods, nor a licence for the sale or
lease of goods specified in the certificate nor for the provision of services orperformance of construction work if such certificates or licences are necessary in
accordance with other regulatory enactments;
6) the tenderer, in accordance with Paragraph two of this Section, in providing the
information required has provided false information or no information at all;
7) the tenderer is included in the special list of the Procurement Monitoring Bureau, and
which list the Bureau has placed on the Internet.  The Internet address shall be
published in the newspaper " Latvijas V ēstnesis " [official Gazette of the Government
of Latvia].  The procedure for establishing the special list shall be regulated by theCabinet.
(2) In order to evaluate a tenderer in accordance with Paragraph one of this Section, the
contracting authority may request:
1) a declaration by the tenderer that no violations by the tenderer in its professional
activities have been determined in accordance with procedures prescribed by law;GPA/28/Add.2
Page 10
2) a statement issued, not earlier than one month prior to the submission of the tender,
by the State Revenue Service or other tax administration institution in Latvia or an
equivalent tax administration institution in another state in which the tenderer is
registered, certifying that the tenderer does not have tax debts or debts with respect to
mandatory payments of State social insurance;
3) a copy of the registration certificate or a statement which certifies that the tenderer is
registered in accordance with procedures prescribed by law, has not been declared
insolvent, is not in the process of liquidation, or the tenderer's economic activity has
not been suspended or terminated;
4) a licence or certificate for the sale or lease of particular goods, for the provision of
services or performance of construction work if such certificate or licence is
necessary in accordance with other regulatory enactments;  and
5) information in accordance with Section 19, Paragraph two of this Law.
Section 17. Information regarding the Economic and Financial Standing of a Tenderer
(1) If an open or restricted competition or negotiated procedure is provided for, the contracting
authority shall determine the level of requirements or the minimal requirements with respect to the
economic and financial standing of tenderers and may, in order to evaluate such standing, require thetenderer to present or submit one or more of the following documents:
1) the annual accounts of the tenderer or a certified excerpt from the annual accounts
regarding that part of the commercial activity of the tenderer which relates to the
expected procurement, but for not more than the previous three years;  and
2) a statement regarding the tenderer's total financial turnover or financial turnover in
respect of the relevant procurement, but for not more than the previous three years;
(2) If in the case of a particular procurement the information referred to in Paragraph one of this
Section does not characterise the economic and financial standing of the tenderer, the contracting
authority may request other information for characterizing such standing.
Section 18. Information on a Tenderer's Capabilities
(1) In the regulations for an open competition or regulations for selection of candidates in a
restricted competition the contracting authority shall indicate how the tenderer will have to confirmtheir capability to sell or lease goods, provide services or perform construction work.
(2) The contracting authority, or a competent author ity in the name of the contracting authority in
the state where the tenderer is registered, may carry out an examination in order to determine the
tenderer's production capabilities and measures to ensure quality control.
(3) If the expected contract is related to the purchase or lease of goods, the contracting authority
may request the tenderer to present or submit one or more of the following supporting documents:
1) a list of relevant or similar goods sold where the quantity of goods sold is mentioned,
the recipient and the date, and to which copies of approved waybills or equivalent
documents or references are attached, but for not more than the previous three years;
2) a description of technical equipment owned by the tenderer and a document that
confirms the tenderer's capability to ensure the quality of the goods;GPA/28/Add.2
Page 11
3) information regarding personnel involved in the sale or lease of goods, especially
personnel responsible for quality control;
4) samples, descriptions or photographs of the goods to be sold;  or5) copy of a certificate, issued by an official quality control institution or other
competent body, which certifies the conformity of the goods to standards.
(4) If the expected contract relates to the prov ision of services, the contracting authority may,
taking into consideration the specifics of the services, request the tenderer to present or submit one or
more of the following supporting documents:
1) information regarding the qualifications of the tenderer or of the education and
qualification of the person who is the actual provider of the services;
2) a list of services provided, approved by the recipient of the services or the provider of
the services, which indicates the amount of services, the recipient and the date of
provision of the services, or references from the recipient of such services, but for not
more than the previous three years;
3) information regarding personnel involved in the provision of services, especially
personnel responsible for quality control;
4) information regarding the tools necessary for the provision of services, production
equipment, and premises owned by or accessible to the tenderer;
5) a description of the measures to ensure the quality of the services to be provided;  or
6) a statement regarding which parts of the contract the tenderer plans to give to
subcontractors in accordance with a subcontract.
(5) If the expected contract relates to the pe rformance of construction work, the contracting
authority may request the tenderer to present or submit one or more of the following supportingdocuments:
1) information regarding the education and professional qualifications of the persons
responsible for the performance of construction work;
2) information regarding construction work performed, supplemented with statements
and references regarding performance of the more significant work, but for not more
than the previous five years.  Such statem ents shall include information regarding the
amount of the relevant construction work, the types of constructions, the time-period
for performance and location, whether all work has been completed, as well as thename, location, amount and expected date of completion of unfinished objects shall
be indicated;
3) information regarding the technology and production equipment necessary to perform
the construction work and which is owned by or is accessible to the tenderer;  or
4) information regarding the technical personnel which the tenderer will utilise for the
construction work.GPA/28/Add.2
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(6) If the tenderer indicates that subcontractors will be involved, information shall be requested
also regarding such subcontractors.
Section 19. Additional Information
(1) The contracting authority may request the te nderer to explain the information provided in
accordance with Sections 16, 17 and 18 of this Law, but such additional information may be requested
only within the scope specified in the Sections referred to.
(2) In order to determine whether the cost of a tend er received is abnormally low, the contracting
authority shall request the tenderer who has submitt ed the tender with the lowest price to submit a
description of the technology necessary for the performance of the procurement, and a description ofthe specific market factors available only to this tenderer that substantiates the price reduction.
Section 20. Tender Security
(1) The contracting authority may request a tender security from tenderers, observing the
following provisions:
1) the requirement shall apply to all tenderers equally and without exceptions;2) the competition regulations shall specify what types of tender security and the
time-periods that are acceptable to the contracting authority and which institutions or
organizations may provide security for tenders;
3) the contracting authority does not have the right to refuse a tender security if the
security and the tenderer conform to the requirements of the competition regulationsand the security is not in conflict with the laws;
4) prior to submitting a tender, the tenderer may request from the contracting authority
confirmation that the security for tender tendered is acceptable.  The contracting
authority shall respond to each such request without delay;  and
5) confirmation that the security for tender tendered is acceptable does not exclude the
possibility that the contracting authority may thereafter reject a guarantor who has
been declared insolvent.
(2) A tender security shall be in effect for the shortest of the following time-periods:
1) the period of validity referred to in the competition regulations for the tender
commencing from the day of the opening the tenders, or to any extension of the
period of validity of a tender regarding which the tenderer and guarantor have
notified the contracting authority in writing;  or
2) if the contracting authority declares a tenderer as having won the competition, until
the day that the winning tenderer submits a contract (obligation) security (if such is
provided for in the competition regulations and in the contract).
(3) A tender security shall be in effect and the contracting authority shall not repay the tenderer,
or the guarantor shall pay the contracting authority the tender security amount if:
1) the tenderer retracts his or her tender during the period while the tender security is in
effect;GPA/28/Add.2
Page 13
2) the winning tenderer has not submitted to the contracting authority the contract
(obligation) security in accordance with the provisions of the mutual agreement,
which is in effect at the moment of acceptance of the tender.
Section 21. Exclusion from Participation in the Procurement Process
(1) If the conditions referred to in Section 16, Paragraph one of this Law apply to the tenderer or
the tenderer's economic and financial standing and capabilities do not conform to the conditions of
Sections 17 and 18 of this Law and the conditions specified in the competition regulations, the
contracting authority shall take a decision not to examine the tenderer's tender and to exclude the
tenderer from further participation in the procurement procedure.
(2) If a tenderer has submitted an tender of abnormally low cost, the contracting authority shall
take a decision regarding exclusion of the tenderer from further participation in the procurement
process.
(3) If a tenderer requests the contracting authority to explain the decision that has been taken in
accordance with Paragraph one or two of this Section, the contracting authority shall, within a period
of three days from receipt of the request, provide a written substantiation of the decision.
Chapter V
Procurement Methods
Section 22. Selection of Procurement Method
(1) The procurement method may be an open competition, a restricted competition, a request for
a price quotation, or a negotiated procedure.
(2) The contracting authority shall choose the request for price quotation if the expected
procurement contract will be entered into for:
1) purchase or lease of goods if the estimated contract price is from LVL 1,000 to 5,000;2) provision of services, except the servic es mentioned in Section 4, Paragraph two,
Clause 2 of this Law, if the estimated contract price is from LVL 1,000 to 5,000;  or
3) performance of construction work if the estimated contract price is from LVL 1,000
to 50,000.
(3) The contracting authority shall choose open competition or the negotiated procedure if the
expected procurement contract will be entered into for:
1) purchase or lease of goods if the estimated contract price is higher than LVL 5,000;
or
2) performance of construction work if the estimated contract price is higher than
LVL 50,000.
(4) The contracting authority shall choose an open competition, restricted competition or
negotiated procedure if the expected procurement contract will be entered into for the provision of
services and the contract price is higher than LVL 5,000.GPA/28/Add.2
Page 14
(5) The procedures of an open or restricted competition with respect to the purchase or lease of
goods, provision of services or performance of construction work shall be regulated by Cabinet
regulations separately for each of the types mentioned.
Section 23. Procurement Commission
(1) The contracting authority shall form a pr ocurement commission for the conduct of the
procurement.  It shall be comprised of officials of the contracting authority and other institutions (if
other institutions are also interested in the procurem ent or it is prescribed by regulatory enactments).
A procurement commission shall be formed separa tely for each procurement or for a specified
time-period, or it can be a body functioning on an ongoing basis that can conduct procurement for the
needs of one or more contracting authorities.  When applying the request for price quotation, thecontracting authority may authorize a competent official for the conduct of procurement with respect
to the relevant procurement, which official shall have the same rights and duties as the procurement
commission.
(2) In forming a procurement commission, all the members thereof shall have sufficient
knowledge in the field of the procurement, but at least three members shall have in-depth knowledge
with respect to the procurement for which a contract will be entered into.  The procurement
commission shall be headed by the chairperson of the commission.  If the procurement contract will
be entered into for construction work and in the case of a request for a price quotation the estimated
contract price is higher than LVL 5,000, the commission shall consist of at least three members ofwhom at least one is a certified construction specialist, but in the case of an open or restricted
competition or a negotiated procedure the commission shall consist of at least five members of whom
at least one is a certified construction specialist.
(3) Members of a procurement commission or the authorized official for conduct of the
procurement shall not at the same time represent the interests of the contracting authority and the
tenderer, and shall not be associated with the tenderer.
(4) A procurement commission shall ensure the preparation of competition regulations, candidate
selection regulations or requests for price quotations, record the course of the procurement process,
and shall be responsible for course of the procurement procedure.
(5) The procurement commission shall select candidates in accordance with the candidate
selection regulations and evaluate tenderers and the tenders submitted thereof in accordance with this
Law and other regulatory enactments and the competition regulations.  Each member of the
commission shall provide an evaluation in writing and the evaluation shall be appended to the minutes
of the commission meeting.  The decision regarding the results of the procurement procedure shall betaken depending on these evaluations.  Remuneration for work performed may be provided for invited
procurement commission members and experts.
(6) A decision of a procurement commission is binding on the contracting authority upon the
entering into of a procurement contract.
Section 24. Competition Regulations
(1) Prior to announcing an open or restricted competition, competition regulations shall be
prepared and approved by the procurement commission and shall contain the following information:
1) general information:GPA/28/Add.2
Page 15
a) procurement identification number that includes the full name of the 
contracting authority or an abbreviation – first capital letters, the year and 
increasing sequential number,
b) name, address and other prerequisites of the contracting authority,
c) subject-matter of the procurement,d) contract performance time and location,
e) location, date, time and procedure for submission and opening of tenders,
f) period of tender being in effect,
g) tender security, if such is provided for, and the procedure for payment,
h) requirements with respect to docume ntation and submission of tenders, and
i) other general information;
2) information regarding the subject-matter of the contract:
a) description of the subject-matter of the contract,
b) technical specifications or description of work, and
c) other information with respect to the subject-matter of the contract;
3) requirements regarding information necessary for evaluation of the tenderer in
conformity with Section 16 of this Law;
4) requirements with respect to the economic and financial standing and technical
capabilities of the tenderer for an open competition, and with respect to information
to be submitted in accordance with Sections 17 and 18 of this Law;
5) criteria for the evaluation and selection of tenders in accordance with Section 30 of
this Law.  If the economically most advantageous tender is selected, the relevantcriteria shall be indicated in sequence of significance thereof, together with the
numerical weighting of these criteria, description of the methods of evaluation and
formulae utilised in evaluating the tenders, and a statement on whether the tenderer
may submit tender variants and how such variants will be evaluated;
6) method by which arithmetic errors (except abnormally low cost tenders) allowed by
the tenderer shall be evaluated and considered;
7) draft procurement contract;8) rights and obligation of the procurement commission;  and
9) rights and obligations of tenderers.
(2) Prior to announcing a restricted competition, the contracting authority shall prepare the
candidate selection regulations in accordance with Sections 16, 17 and 18 of this Law and it shall
indicate:
1) name, address and other prerequisites of the contracting authority;2) identification number of the procurement;
3) subject-matter of the procurement;
4) the location, date and time of tender submission and opening;GPA/28/Add.2
Page 16
5) requirements with respect to the economic and financial standing and technical
capabilities of the candidate, as well as the criteria for selection of candidates;
6) conditions for the exclusion of a candidate from participation in the procurement
procedure;
7) information to be submitted with respect to the economic and financial standing and
technical capabilities of the candidate;  and
8) other information regarding the selection of candidates.
(3) All persons interested may become acquainted with the competition regulations and the
candidate selection regulations.
(4) The contracting authority may amend the competition regulations and candidate selection
regulations, but not later than five working days before the end of the time-period for the selection of
tenders or applications.  All tenderers, candidates and other persons who have expressed interest inparticipating in the competition by obtaining the competition regulations or candidate selection
regulations shall be informed of such changes.
Section 25. Open Competition
(1) If the contracting authority has announced an open competition, all persons interested may
submit tenders.
(2) The contracting authority shall send a notice to  the Procurement Monitoring Bureau regarding
the expected procurement and shall invite possible tenderers to submit tenders.
(3) The notice shall indicate:
1) name and address of the contracting authority, the contact person and telephone
number;
2) identification number of the procurement;3) the procurement procedure selected;4) the subject-matter and amount of the expected contract, as well as the condition that
tenderers may submit tenders for a part of the amount (if such is provided for by theregulations);
5) the location and time period for performance of the expected contract;6) the location and time for receipt of the competition regulations;7) the time-period for submitting requests for additional information;  and8) the location and time-period for submission of tenders, and the location, date and time
of opening tenders.  Tenders shall be opened immediately after the end of thetime-period for tender submission;
9) all necessary payments and guarantees;  and10) other information that the contracting authority considers necessary.GPA/28/Add.2
Page 17
(4) The Procurement Monitoring Bureau shall place a notice on the Internet within three working
days after receiving the notice.   The Internet address shall be published in the newspaper
Latvijas V ēstnesis .
(5) The contracting authority shall publish a notice in the newspaper Latvijas V ēstnesis  and at
least in one other newspaper not less that three working days after sending the notice to the
Procurement Monitoring Bureau, or the next day after placement of the notice on the Internet.
(6) If the contracting authority has made amendm ents to the competition regulations after the
notice has been placed on the Internet and published, the contracting authority shall sent another
notice to the Procurement Monitoring Bureau and it shall be placed on the Internet and published inaccordance with the procedure specified in Paragraphs four and five of this Section.  The notice shall
include information regarding what has been change d compared to the previous notice regarding the
competition, as well as the changed time period for submission of tenders.
(7) The contracting authority or the procurement commission shall register to whom and when
competition regulations have been issued.  The tenderer, upon submitting a tender, may request
confirmation that the tender has been received, including an indication regarding the time of receipt of
the tender.
(8) The procurement commission upon request by a possible tenderer shall provide additional
information regarding the competition regulations if the request is submitted not later than six
working days before the end of the time-period for submission of tenders.  The procurement
commission shall prepare such information within th ree working days of the receipt of the request.
The prepared additional information shall be sent to those possible tenderers who have received the
competition regulations, as well as to those tenderers who have already submitted tenders.
(9) The time-period for submission of tenders, after a notice regarding the expected procurement
or amendments made to the regulations has been sent to the Procurement Monitoring Bureau, may not
be shorter than 52 working days if the estimated contract price for goods and services is higher than
LVL 120,000 and for construction work – than LVL 4,500,000.  If the estimated contract price for
goods and services is less than LVL 120,000 and for construction work – than LVL 4,500,000, the
time-period for submission of tenders may not be shorter than 40 working days.  If the estimatedcontract price for goods and services is less than LVL 50,000 and for construction work – than
LVL 500,000, the term for submission of tenders may not be shorter than 30 working days.
(10) The procurement commission shall open the submitted tenders immediately after the end of
the time-period for submission of tenders, at the location and time specified in the regulations.  If atender is submitted after the specified time-period for the submission of tenders, it shall be returned to
the tenderer unopened.  All tenderers or representatives thereof may participate at the opening of
tenders.  The process of opening tenders shall be documented in a report which shall include the given
names, surnames, and position held of those present, name of the tenderer, time of submission of the
tender, the price tendered and other information that characterizes the tender.
(11) The procurement commission shall select tenderers in accordance with Sections 16, 17 and 18
of this Law, check the conformity of the tenders with the description of work, technical specifications
and other requirements specified by the regulations, and after that shall evaluate the tenders which
conform to the requirements in accordance with the evaluation criteria and regulations provided inthis Law, in other regulatory enactments and the competition regulations.
(12) The procurement commission shall take a decision to enter into a procurement agreement
with the tenderer who has appropriate qualificatio ns, whose tender conforms to the description of
work and technical specifications and who has been evaluated as the most advantageous in conformityGPA/28/Add.2
Page 18
with the evaluation criteria and procedure specified by the regulations.  If no tenders have been
submitted for an open competition or the tenders submitted do not conform to the requirements of the
regulations, the procurement commission shall take a decision to terminate the competition without
selecting a tender.
(13) The procurement commission shall notify the decision in accordance with Section 32 of this
Law.
(14) The procurement commission shall document in a report the procedure of the open
competition in accordance with Section 34 of this Law.
Section 26. Restricted Competition
(1) If a restricted competition is being organize d, all interested persons may submit applications
for the selection of candidates.  The procurement commission shall select candidates who shall be
invited to submit tenders to the notified competition.
(2) The contracting authority shall send a notice to  the Procurement Monitoring Bureau regarding
the expected procurement and shall invite possible candidates to submit tenders applications for the
selection of candidates.
(3) The notice shall include:
1) the name and address of the contracting authority;2) identification number of the procurement;
3) the expected subject-matter of the contract and amount;
4) the location and time period for performance of the expected contract;5) the location and time-period for receipt of candidate selection regulations;  and6) the location, date and time-period for submission of applications.
(4) The term for submission of applications after the notice has been sent to the Procurement
Monitoring Bureau may not be shorter than 37 working days if the estimated price of the contract is
higher than LVL 120,000.  If the estimated contract price is less than LVL 120,000, the time-period
for submission of applications may not be shorter than 25 working days.  If the estimated contractprice is less than LVL 50,000, the time-period for submission of applications may not be shorter than
15 working days.
(5) If the notice conforms to Paragraphs three and four of this Section, the Procurement
Monitoring Bureau shall place the notice on the Internet within three working days.  The contractingauthority shall publish a notice in the newspaper Latvijas V ēstnesis  and in at least one other
newspaper not less that three working days after sending the notice to the Procurement Monitoring
Bureau, or the next day after placement of the notice on the Internet.
(6) If the contracting authority has made amendments to the candidate selection regulations after
the notice has been placed on the Internet and published, it shall send another notice to the
Procurement Monitoring Bureau and the notice shall be placed on the Internet and published in
accordance with the procedures specified in Paragraph five of this Section.  The notice shall include
information regarding what has been changed compared to the previous notice on the selection of
candidates, as well as the changed time-period for submission of applications.  After sending theGPA/28/Add.2
Page 19
notice, the time-period for the submission of applic ations shall be determined in accordance with
Paragraph four of this Section.
(7) The procurement commission shall, within 10 working days of the end of the time-period for
the submission of applications, perform a selection of candidates in accordance with the criteriaspecified in the candidate selection regulations.  All interested persons or groups of persons interested
may submit applications for the selection of candidates.
(8) The contracting authority or procurement commission shall send, concurrently to all selected
candidates, an invitation to submit a tender.  The competition regulations or the address where the
regulations can be obtained shall be attached to the invitation.  The contracting authority or
procurement commission shall register to whom and when an invitation was sent and the competitionregulations sent or issued.  To those who have applied for the selection of candidates but have not
been selected in accordance with the candidate selection regulations the procurement commission
shall within three days of taking the relevant decision send a notice regarding the decision and
substantiation thereof.
(9) An invitation to submit a tender sh all include the following information:
1) address and time-period during which the competition regulations (if those were not
sent together with the invitation) or additional information may be requested;
2) conditions and charge for the provision of the competition regulations or additional
information if such is requested regarding the provision of the regulations;
3) the location, date and time for the submission and opening of tenders.  The
time-period, after an invitation to submit tenders or a notice of amendments made ifsuch exist in the regulations has been sent to the selected candidates, may not be
shorter than 40 working days if the estimated contract price is higher than
LVL 120,000.  If the estimated contract price is less than LVL 120,000, the
time-period for submission of tenders may not be shorter than 25 working days.  If
the estimated contract price is less than LVL 50,000, the time-period for submission
of tenders may not be shorter than 15 working days.  The tenders shall be opened
immediately after the end of the time-period for the submission of tenders at alocation, date and time specified by the regulations;  and
4) the date when the notice regarding the selection of candidates was placed on the
Internet.
(10) The procurement commission pursuant to a request by a candidate shall provide additional
information regarding the competition regulations if the request is submitted not later than six
working days before the end of the time-period for submission of tenders.  The procurement
commission shall prepare such information within tw o working days of the receipt of a request.  The
prepared additional information shall be sent to those candidates who received the competitionregulations, as well as to those tenderers who have already submitted tenders.
(11) Tenders shall be opened at the location and time specified by the regulations.  If a tender is
submitted after the specified end of the time-period for submission of tenders, it shall be returned to
the tenderer unopened.  All tenderers or representatives thereof may participate in the opening oftenders.  The process of opening tenders shall be documented in a report which shall include the given
names, surnames, and positions held of the persons present, name of the tenderer, time of submission
of the tenders, the price tendered and other information that characterizes the tenders.GPA/28/Add.2
Page 20
(12) The procurement commission shall examine the conformity of tenders to the description of
work, technical specification and other requirements re ferred to in the regulations and after that shall
evaluate the tenders that conform to the requiremen ts in accordance with the evaluation criteria and
provisions indicated in this Law, in other regulatory enactments and in the competition regulations.
The procurement commission shall take a decision regarding selection of the most suitable tender.  Ifno tenders have been submitted for a restricted competition or the tenders submitted do not conform
to the requirements of the competition regulations, the procurement commission shall take a decision
to terminate the competition without selecting a tender.
(13) The procurement commission shall notify the decision in accordance with Section 32 of this
Law.
(14) The procurement commission shall document in a report the procedures of the restricted
competition in accordance with Section 34 of this Law.
Section 27. Conditions for Selecting the Negotiated Procedure
The procurement commission may apply the negotiated procedure if:
1) in the previously published open or restricted competition no tenders were submitted
or the tenders did not conform to the requirements of the competition regulations, or
for the previously published restricted competition no applications were submitted forthe selection of candidates.  All tenderers who submitted tenders for the open or
restricted competition shall be invited fo r negotiations.  The regulations for the
expected procurement contract shall not differ from the expected procurement
contract regulations in the previously published open or restricted competition;
2) due to unforeseen circumstances (fire, natural disaster, war, epidemic, accident, or
other extraordinary circumstances which the contracting authority could not have
foreseen) that are unrelated to the procurement, a situation has arisen where as a
result of time restrictions it is not possible to conduct an open or restricted
competition;
3) the contracting authority needs to partially exchange or to supplement goods already
at the disposal of the contracting authority.  In purchasing goods from other than the
original supplier, the contracting authority would have to purchase goods with
different technical characteristics.  Such goods would then be technically
incompatible with the goods already at th e disposal of the contracting authority or
also difficulties would result in the use or maintenance of goods at their disposal.The time-period for such procurement contract may not exceed three years;
4) the contracting authority needs to receive additional services or to perform additional
construction work that were not previously foreseen but which are essential for the
performance of an open or restricted competition procurement contract entered into.If such additional services or construction work may not be technically or
economically separated from the services or construction work specified in a
procurement contract already entered into or are necessary to perform the
procurement contract already entered into, such services shall be provided or
construction work shall be performed by the performer of the procurement contractalready entered into.  The total value of a supplementary procurement contract may
not be higher than 10 per cent of the value of the procurement contract already
entered into;  orGPA/28/Add.2
Page 21
5) the contracting authority needs to continue receiving services that are already being
provided in accordance with a procurement contract entered into as a result of an
open or restricted competition.  Such a procedure may be applied for not longer than
three years from entering into of the first procurement contract.  The conditions of the
procurement contract shall not differ from the conditions of the previous procurementcontract and the total value of the procurement contract may not be higher than
50 per cent larger than the value of the previously signed procurement contract.
Section 28. Negotiated Procedure
(1) If the negotiated procedure is chosen, the procurement commission shall send a notice to the
Procurement Monitoring Bureau accompanied with a substantiation for choosing the negotiatedprocedure.
(2) The notice shall include:
1) identification number of the procurement;2) description of the expected subject-matter of the contract and amount thereof;3) the location and time-period for performance of the expected contract;
4) candidates;  and
5) location and time-period for submission of tenders.
(3) The time-period for submitting applications may not be shorter than 37 working days from
the date of sending the notice to the Procurement Monitoring Bureau if the estimated contract price
for goods and services is higher than LVL 120,000 and for construction work – than LVL 4,500,000.
If the estimated contract price for goods and services is less than LVL 120,000 and for construction
work – than LVL 4,500,000, the time-period for submission of tenders shall may not be shorter than
25 working days.  If the estimated contract price for goods and services is less than LVL 50,000 and
for construction work – than LVL 500,000, the time-period for submission of tenders may not be
shorter than 15 working days.
(4) The Procurement Monitoring Bureau shall evaluate within a period of three working days the
substantiation for selecting the negotiated procedure.  If the substantiation for the selection conforms
to the conditions of Section 27 of this Law, the Procurement Monitoring Bureau shall place the notice
on the Internet.  If it does not conform to the conditions of Section 27 of this Law, the ProcurementMonitoring Bureau shall notify the procurement commission thereof and the commission shall choose
another procedure referred to in this Law.
(5) If the negotiated procedure is used in accordance with Section 27, Clauses 1 and 2 of this
Law, the procurement commission shall commence negotiations with the tenderers immediately afterthe notice is placed on the Internet without observing the time-periods specified in Paragraph three of
this Section.
(6) If the Procurement Monitoring Bureau has permitted the application of the negotiated
procedure, the procurement commission shall send an invitation for candidates to participate innegotiations, as well as the draft of the expected procurement contract.
(7) The procurement commission shall conduct negotiations with candidates who have submitted
applications to participate in the negotiated procedure, and shall take a decision regarding selection of
the most suitable tender.GPA/28/Add.2
Page 22
(8) The procurement commission shall notify the decision in accordance with Section 32 of this
Law.
(9) The procurement commission shall document in a report the negotiated procedure in
accordance with Section 34 of this Law.
Section 29. Request for a Price Quotation
(1) If a request for a price quotation is selected, the procurement commission shall select such
possible candidates regarding whose qualifications and reliability the commission has no reservations.
(2) The procurement commission shall send to at least three possible tenderers an invitation to
submit a tender to sell or lease goods, provide services or perform construction work in accordance
with the requirements, technical specifications and description of work referred to in the invitation.
The price of goods, services or construction work may include expenditures after the expiry of the
guarantee time-period, the cost of delivery and installation, cost of training personnel and otherexpenditures.
(3) In the invitation, the procurement commission shall indicate the time-period for submission of
a tender, which may not be shorter than five working days after the sending the invitation.
(4) The procurement commission shall examine the conformity of a tender with the invitation
requirements, technical specifications and description of work, and evaluate the conforming tenders in
accordance with the requirements of, Section 30, Paragraph six of this Law and take a decision
regarding the selection of a tender.
(5) The procurement commission shall make a report of the procedure of the request for a price
quotation.  The report shall include the following information:
1) identification number of the procurement and the date of the report;2) the name of the contracting authority;
3) the name and amount of required goods, services or construction work, technical
specifications or description of work;
4) the names of tenderers, the tenders and the prices thereof;
5) other information that the commission considers necessary;  and
6) decision regarding the selection of a tender.
Chapter VI
Selection of Tenders
Section 30. Criteria for Selection of Tenders
(1) The contracting authority shall indicate the cr iteria for selection of tenders in the regulations
of an open or restricted competition or in an invitation for a price quotation.GPA/28/Add.2
Page 23
(2) In the case of a competition, if the contracting au thority expects to enter into a contract for the
receipt of services or a joint contract for construction design and construction work, the procurement
commission shall select the economically most advantageous tender which conforms to the
description of work provided in the regulations.
(3) In the case of a competition where the contracting authority expects to enter into a contract
for the purchase or lease of goods, the procurement commission shall select the tender with the lowest
price that conforms to the requirements and technical specifications referred to in the regulations.  The
lowest price shall be determined in accordance with the provisions of Section 31, Paragraphs three
and four of this Law.
(4) In the case of a competition where the contracting authority expects to enter into a contract
for construction work and the estimated contract price exceeds LVL one million, the procurement
commission shall select the tender with the lowest price.
(5) In the case of a competition where the contracting authority expects to enter into a contract
for construction work and the estimated contract price is from LVL 50,000 to one million, theprocurement commission shall select the tender with the lowest price or the relatively lowest price.
(6) In the case of a request for a price quotation the procurement commission shall select the
tender with the lowest price that conforms to the requirements and technical specifications indicated
in the invitation.
(7) The tender with the relatively lowest price shall be determined by calculating the average
price of all tenders, then rejecting tenders the price of which is lower than the average price that has
been reduced by the percentage difference from the average price, and selecting from the remaining
tenders the tender with the lowest price.  The percentage difference from the average price shall bespecified in the competition regulations and it may not be less than 10 per cent of the average price.
Section 31. Additional Provisions for the Selection of Tenders
(1) If the contracting authority expects to ente r into agreement for construction work and the
contract price exceeds LVL one million, the procurement commission shall examine the price
structure of the tender.  If the lowest price tendered or the two lowest prices differ significantly fromthe next lowest price tendered, the procurement commission may ascertain whether one or two tenders
respectively may not be abnormally low priced.  Differences shall be considered significant if the
prices differ by more than eight per cent.
(2) If the contracting authority expects to ente r into agreement for construction work and the
estimated contract price is from LVL 50,000 to one million, in selecting the tender with the lowest
price the procurement commission shall examine the price structure of the tender with the lowest price
and ascertain whether a tender has been received with an abnormally low price.
(3) If the contracting authority expects to enter into agreement for the purchase or lease of goods,
in evaluating the prices of the tenders the procurement commission may take into account one or more
of the following indicators:
1) the price of goods that conform to the level of requirements indicated in the technical
specifications;
2) the possible expenditures that will arise in using the goods for the duration of
expected useful life thereof, but not more than four years after the goods are put into
use.  The planned expenditures for reserve parts, post-guarantee maintenance costsGPA/28/Add.2
Page 24
and personnel training costs, as well as other expenditures associated with the
utilisation of the goods shall be added to these expenditures;  and
3) the value of the goods or their possible alienation value at the end of the expected
utilisation period of the goods, but not later than four years after the goods are put inuse.
(4) The indicators referred to in Paragraph th ree of this Section and the procedure for their
utilisation shall be determined in the competition regulations.
Section 32. Notice regarding Taking of a Decision
(1) The contracting authority, when utilising an open or restricted competition or the negotiated
procedure, shall, within three working days after a decision has been taken, enter into a procurement
contract or terminate the competition without selecting a tender, send a notice to the Procurement
Monitoring Bureau and to all the tenderers.
(2) The notice to enter into a procurement contract or to terminate a competition without
selecting any tender, shall incl ude the following information:
1) the name and address of the contracting authority;
2) identification number of the procurement;
3) date when the procurement was notified on the Internet;4) date of the decision;5) method of procurement;6) subject-matter of the contract and short description thereof;7) number of tenders received;
8) name and address of the tenderer with whom a contract will be entered into;
9) substantiation for the decision if a decision has been taken to terminate a competition
without selecting a tender;
10) reasons for rejecting the tenders of the rejected tenderers;
11) contract price tendered;12) date of sending the notice;  and13) other information that the contracting authority wishes to notify.
(3) The Procurement Monitoring Bureau shall within three working days put a notice on the
Internet.
(4) The contracting authority shall publish a notice in the newspaper Latvijas V ēstnesis  not earlier
than after six working days from sending the notice to the Procurement Monitoring Bureau or the next
working day after such notice is placed on the Internet.GPA/28/Add.2
Page 25
Section 33. Procurement Contract
(1) A procurement contract shall determine all legal relations between the contracting authority
and the seller or lessor of goods, the provider of services or performer of construction work.
(2) The contracting authority shall prepare a procurement contract which shall specify:
1) name of the contracting party;2) name of the performer (seller or lessor of goods, the provider of services or performer
of construction work);
3) subject-matter of the contract, amount thereof, quality requirements and other
necessary information;
4) procedures for payment;
5) time-period for performance of the contract, the location and conditions;
6) liability of the contracting parties for failure to perform the contract;7) procedures for amending the contract and procedures to permit withdrawal from the
contract;  and
8) other conditions.
(3) A procurement contract for construction design and construction work shall be prepared in
accordance with Latvian national standards.
(4) A procurement contract for receipt of services and leasing of good shall be entered into for a
period of time not longer than four years.  A procurement contract shall not be entered into earlier
than 10 working days from the taking of a decision and not later than the period of validity of the
tender.
Chapter VII
Documentation and Reports
Section 34. Procurement Procedure Final Report
(1) The final report on the procedures of an open or restricted competition shall have two separate
parts, and shall be accompanied by the competition regulations and the tenders of tenderers.  The
report shall be signed by all members of the procurement commission.
(2) The first part of the final report of an open or restricted competition shall include such basic
information as is publicly accessible only after th e contracting authority has entered into a contract
with the tenderer or after the competition has been terminated without selecting a tender.
(3) The first part of the final report of an open or restricted competition shall include the
following information:
1) the identification number of the procurement;GPA/28/Add.2
Page 26
2) the date when the notice was placed on the Internet;
3) the name of the contracting authority;4) the composition and substantiation for the formation of the procurement commission;5) the subject-matter of the contract and short description thereof;6) the criteria for the selection of candidates;7) the criteria for the selection of tenders;
8) the location and time-period for submission of tenders and period of validity of the
tender;
9) the location, date and time of opening tenders;
10) the substantiation for the application of the restricted competition procedure;
11) the location and time-period for submission of applications;12) the names of persons who applied for the selection of candidates;13) the names of persons who were selected, in accordance with the selection conditions,
and invited to submit tenders;
14) the given names, surnames and positions held of persons present at the opening of
tenders;
15) list of submitted tenders, which list shall indicate the name of each tenderer, date and
time of submission of tender, price tendered and other information that characterizes
the tender;
16) name of the tenderer who was awarded the right to perform the procurement;17) substantiation for the decision if the contracting authority has rejected all tenders and
has taken a decision to terminate the competition without selecting any tender;
18) substantiation for the decision if the tenderer who was awarded the right to perform
the procurement no longer participates in the competition or has not signed the
procurement contract and the contracting authority has taken a decision to award the
right to perform the procurement to the tenderer whose tender is the next
economically most advantageous tender or the tender with the lowest price;
19) the formula for evaluating tenders if the regulations provide for accepting the
economically most advantageous tender;
20) requests received to explain the competition regulations or the tenderer selection
regulations, the answers provided, as well as evidence that all tenderers or candidateswere informed about the questions and answers;
21) if a tender has been declared as not conforming with the requirements referred to in
the regulations or the tenderer has been refused participation in the competition, – the
cause and substantiation for such decision;  andGPA/28/Add.2
Page 27
22) if a decision has been taken to enter into a procurement contract or to terminate a
competition without selecting a tender, – a more detailed substantiation for such
decision.
(4) Information included in the second part of the final report of an open or restricted competition
with respect to the procurement and the procurement evaluation process shall be accessible as
restricted information in accordance with the Freedom of Information Law.
(5) The second part of the final report of an open or restricted competition shall also include
information regarding the economic and financial standing of the tenderer and the capability of the
tenderer to perform the procurement, and an evaluation of such information.
(6) A report of a negotiated procedure shall be publicly accessible after the contracting authority
has entered into a procurement contract with the candidate who was awarded the right to perform the
procurement, or when the contracting authority has taken a decision to terminate the negotiated
procedure without selecting any tender.  A report of a negotiated procedure shall include thefollowing information:
1) the identification number of the procurement;2) the date when the notice was placed on the Internet;3) the composition and substantiation for the formation of the procurement commission;4) the name of the contracting authority;
5) the subject-matter of the contract and short description thereof;
6) the substantiation for using the negotiated procedure;7) the names of the candidates;8) the location and time-period for the submission of tenders;9) the names of those candidates who submitted an application to participate in the
negotiated procedure;
10) the criteria for the selection of tenders;11) a short description of the negotiations, indicating the tenders and prices thereof;12) the name of the candidate who was awarded the right to perform the procurement;
and
13) if the candidate who was awarded the righ t to perform the procurement has not signed
the procurement contract or the contracting authority has taken a decision to
terminate the negotiated procedure without selecting a tender, – a description of this
course.
(7) Contracting authorities after entering into a procurement contract shall keep reports of
negotiated procedures, final reports of competitions, reports on requests for price quotations, the
competition regulations and tenders of tenderers for 10 years.GPA/28/Add.2
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Section 35. Statistical Reports
The contracting authority shall submit to th e Procurement Monitoring Bureau a report
regarding the number of contracts entered into, amounts thereof, the performers of construction work,
suppliers of goods, lessors or providers of services and the procurement procedures utilised.  Thereport shall be submitted each calendar half year within a period of three months after the end of the
reporting period.
Chapter VIII
Monitoring and Control
Section 36. Monitoring
Monitoring of the observance of regulatory enactments in the area of procurements shall be
performed by the Procurement Monitoring Bureau and other authorities in accordance with regulatoryenactments.
Section 37. Liability of the Contracting Authority
For the implementation of this Law in accord ance with their competence the contracting
authority, procurement commission, or authorized official who responsible for the performance of the
procurement shall be liable.
Chapter IX
Procurement Monitoring Bureau
Section 38. Legal Status of the Procurement Monitoring Bureau
(1) The Procurement Monitoring Bureau is a State administrative authority supervised by the
Ministry of Finance and operating in accordance with this Law, with the by-laws of the ProcurementMonitoring Bureau and with other regulatory enactments.
(2) The Procurement Monitoring Bureau is a legal person.  It shall have a seal with the image of
the supplemented lesser State coat of arms and the full name of the Bureau.
(3) The operations of the Procurement Monitoring Bureau shall be financed from the State
budget.
Section 39. Rights and Duties of the Procurement Monitoring Bureau
(1) The Procurement Monitoring Bureau  shall have the following rights:
1) to monitor the conformity of the procurement procedures with the requirements of the
Law;
2) in conformity with its competence to cooperate with relevant foreign authorities;
3) to publish its decisions, views and recommendations;GPA/28/Add.2
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4) to request and receive without hindrance at any stage of a procurement procedure and
free of charge information necessary for the implementation of this Law;
5) to invite independent experts;
6) to compile and analyse the statistical information on procurement in the State;
7) to provide methodological assistance and consultations, and to organize training for
institutions that are parties to contracts, for sellers of goods, lessors, providers of
services and performers of construction work;  and
8) to conduct other activities permitted by regulatory enactments in order to fulfil the
tasks provided for by this Law;
(2) The Procurement Monitoring Bure au shall have the following duties:
1) to make sure that complaints with respect to violations of procurement procedures are
examined;
2) to prepare reports of procurements in the State;  and3) to develop a special list of undertakings.
Section 40. Complaints Examination Commission
(1) In order to examine complaints, the Procurem ent Monitoring Bureau shall form a complaints
examination commission (hereinafter –– commission) c onsisting of not less than three members.  At
least one member of the commission shall have higher legal education, and one shall be an invited
procurement expert or an authorized public organization representative from the sector.
(2) Members of such commission may not be persons who have previously provided
consultations with respect to the procurement mentione d in the complaint or be interested in obtaining
the right to perform the procurement.
(3) The work of the commission shall be led by a chairperson appointed by the Procurement
Monitoring Bureau from among the commission memb ers.  The commission shall have a quorum if at
least one half of the commission members participates in the examination of a relevant question.  The
commission shall take decisions by voting.  A decision shall be considered taken if a majority of the
commission votes for it.  In the event of a tied vote, the vote of the committee chairperson shall bedecisive.
Chapter X
Procedure for Examination of Complaints
Section 41. Right to Submit a Complaint
(1) Tenderers, candidates, sellers of goods, lessors, providers of services or performers of
construction work (hereinafter – submitter of a complaint) shall have the right to submit to the
Procurement Monitoring Bureau complaints regard ing the actions of the contracting authority with
respect to the legality of the procedures of open or restricted competition or negotiated procedure
(hereinafter – procurement procedures) if the submitte r considers that the contracting authority or the
procurement commission has not observed the requirements of regulatory enactments which regulateGPA/28/Add.2
Page 30
procurement and in so doing have violated the lawful rights and interests of the submitter of the
complaint.
(2) Complaints regarding the questions referred to in Paragraph one of this Section may be
submitted up to the time of entering into a procurement contract.  After a procurement contract hasbeen entered into, the submitter of a complaint may a ppeal decisions of the contracting authority to a
court only in accordance with procedures prescribed by law.
(3) If a complaint has been submitted to the Procurement Monitoring Bureau prior the entering
into a procurement contract, the Procurement Monitori ng Bureau shall notify the contracting authority
thereof and the contracting authority shall not enter into a procurement contract without a decision of
the complaints examination commission that permits to enter into such contract.
(4) The Procurement Monitoring Bureau shall not accept a complaint if:
1) during the period of the procurement pr ocedures the complainant has known about
the violation of the procurement procedures but has not informed the contractingauthority thereof without delay;  or
2) if a complaint with respect to the procurement procedures in connection with the
same subject and on the same grounds has already been submitted and examined.
(5) If a complaint is submitted regarding activities of a contracting authority with respect to the
legality of the procurement procedures and a complaint regarding the same procurement procedures
has already been submitted earlier by another submitter of a complaint but such complaint has not yet
been examined, such complaints may be combined and examined together.
(6) Complaints shall be submitted in writing and shall include the following information:
1) the name and address of the submitter of the complaint;2) the name and address of the contracting authority regarding which the complaint has
been submitted;
3) the facts regarding which the complaint is being submitted, indicating the violation;
and
4) the claim of the submitter of the complaint with respect to this complaint.
Section 42. Examination of Complaints
(1) The commission shall examine a complaint within a period of one month from receipt of the
complaint in the Procurement Monitoring Bureau.
(2) The commission shall permit entering into a contract if the complaint is:
1) unfounded;2) founded, but the commission has taken a decision regarding measures to be
performed by the contracting authority to rectify the causes of the complaint, and
those have been rectified;  or
3) founded, but the violations determined by the commission are not significant and
cannot influence the decision regarding the awarding of the procurement right.GPA/28/Add.2
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(3) The commission shall invite to the meetin g for examination of a complaint the submitter of
the complaint, the contracting authority and the tenderers or candidates (hereinafter – participants)
whose interests could be affected by the decision taken by the commission.  The commission shall, at
least 10 working days before a meeting, invite participants to the meeting for examination of thecomplaint.
(4) All participants have the right to express th eir views.  After hearing the participants, the
commission shall continue work without the presence of the participants.
(5) The commission shall evaluate complaints on the basis of the facts presented by the submitter
of a complaint and the participants, and explanations of the contracting authority.  If the participantsdo not attend the examination of the complaint, the commission shall examine the complaint based on
the facts accessible to it.  The commission shall take a decision with respect to the submitted
complaint and shall, within a period of three working days from taking the decision, send the decision
to all participants.
(6) Participants may appeal the decision of the commission in court.
(7) The commission shall document in a report th e course of examining the complaint and shall
keep the report and information obtained during the examination for 10 years.
Transitional Provisions
1. With the coming into force of this Law, the Law on State and Local Government Procurement
(Latvijas Republikas Saeimas un Ministru Kabineta Zi ņotājs, 1996, No. 23;  1998, No. 15;  2000,
No. 9) is repealed.
2. If a State contracting authority has published an auction or competition for the awarding of a
State procurement or has begun examining one tender before the coming in force of this Law comes,
the published auction, competition or examination of one tender shall be concluded within a period of
three months in accordance with the Law "On Stat e and Local Government Procurement" and Cabinet
Regulation No. 98 of 18 March 1997, "Regulations on Tenders and Competitions for the Awarding of
State and Local Government Procurements" insofar as such is not in contradiction with this Law.
3. The Cabinet shall by 1 December 2001 prepare the regulations referred to in Section 16,
Paragraph one, Clause 7 of this Law and Section 22, Paragraph five of this Law.
This Law shall come into force on 1 January 2002.This Law has been adopted by the Saeima  on 5 July 2001.
President V. V īķe-Freiberga
Riga, 20 July 2001
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