In the framework of the TACIS 1992-93-94 programmes the European Commission and the Russian and Ukrainian authorities agreed to improve the operational safety of a number of nuclear power plants (NPPs) under a programme of on-site assistance and to launch a number of other projects to be financed by the European Community in the field of nuclear safety.
A significant component of the on-site assistance programme included the identification, preparation and implementation of projects aimed at improving safety through the purchase of required safety-related equipment.
The European Commission contracted the services of a Procurement Agent (PA) to manage the entire procurement procedure. Two Procurement Agents were selected under the TACIS 1992-93-94 programmes, one for projects in Russia (see Contract 22975) and one for projects in Ukraine (see Contract 22974).
The present contract was raised to supplement the existing contract (22974) for Procurement Agent activities for Ukrainian equipment supply projects.
The process of introducing EU design concepts and EU safety-related equipment on Ukrainian nuclear power plants had proved to be technically and institutionally more complex than originally anticipated. As a result, the programme had incurred considerable delays that were not attributable to the PA, and the Commission services extended the duration of the above-mentioned PA contract (22974) in order to honour the commitments that had been made to the Ukrainian beneficiaries and recipients of the programme. Addenda prolonging the duration of the contracts were issued.
It was also necessary, however, to consider the additional tasks (and related costs) that resulted from such an extension of the contracts and that could not have been envisaged by the contractor on the basis of his original contract. The new tasks outlined below were therefore included in the present supplementary contract:
Periodically repeated tasks, implying recurring costs that are proportional to the duration of the contract (these tasks are distinct from the procurement tasks per se, which are merely deferred when the implementation of the programme is delayed). These tasks include:
- Production of monthly reports
- Maintaining regular contacts with all on-site utilities and other contractors, as appropriate;
- Participation in on-site programme coordination meetings at the Commission premises in Brussels;
- Management of the special fund bank account created for procurement activities, including additional bank charges for the extended duration of the contract.
New tasks, introduced by the Commission to accelerate the procurement process, including:
- Meetings with utilities and (potential) suppliers in order to accelerate the implementation of the programme, particularly during the finalisation of Technical Specifications and during Contract Negotiations. These meetings required additional fees, as well as travel and subsistence costs, which were not included in the contract 22974.
- Missions to Ukraine to meet beneficiaries to discuss the implementation of the procurement plan and the procedural issues involved.