In case of Direct Award please refer to steps and pre-requisites depicted herein below (as per par.

8 below of PRC procedure). Please ensure that the justification for the Direct Award is aligned with the reasons mentioned in Annex 4.

8. Direct Awards
(BoE/ BoD required approvals and pre-requisites for Direct Awards are depicted in Annex 3 and Annex 4 respectively)

8.1 Direct awards with Contract Value less than 30,000

The Project Manager (or the Project Initiator/ Requestor if a Project Manager is not applicable), forwards to PRC and the Unit Business Controller a written request (copied to Chief Officer) indicating specifications, cost estimation and providing adequate justification, e.g. proving that no other supplier can feasibly comply with AIAs requirements or the urgency, explaining why the specific requirement could not have been foreseen in a timely manner etc. Communication with the relevant Contractor is undertaken strictly by PRC. PRC: 1. Approves, or otherwise, the said request. In the event of a disagreement, the request is addressed to the CFO. 2. Requests proposal, negotiates prices and finalises contract terms with AIAs involved departments.

8.2 Direct awards for Contract Value between 30,000 and 300,000
The Project Manager (or the Project Initiator/ Requestor if a Project Manager is not applicable) prepares and submits a paper to the BoE, providing adequate justification for the direct award, e.g. the sole supplier, proving that no other supplier can feasibly comply with AIAs requirements or the urgency, explaining why the specific requirement could not have been foreseen in a timely manner, etc. PRC: Requests proposal and negotiates the price in order to properly inform the BoE.

8.3 Direct awards for Contract Value exceeding 300,000

Par. 8.2 will apply with the modification that BoE and BoD approval is required.

Annex 3
BoE/ BoD Required Approvals Required Approvals:
OPEN (one phase)
1. BoE and BoD Paper prior to tender initiation for aproval of award criteria, evaluation committee and time schedule 2. BoE and BoD Paper upon completion of tender for approval of the preferred bidder 1. BoE Paper for approval of pre-selection criteria, evaluation committee and time schedule 2. BoE and BoD Paper for approval of pre-selection outcome and award ctiteria 3. BoE and BoD Paper for approval of the preferred bidder

Prepared by:
Project Initiator/ Requestor supported by Project Manager and PRC ditto ditto ditto ditto Project Manager (or the Project Initiator/ Requestor if a Project Manager is not applicable) supported by PRC

Tenders with Contract Value more than 500.000

RESTRICTED or NEGOTIATED (two phases)

For Contract Value between 30,000 and 300,000 For Contract Value exceeding 300,000

BoE paper

Direct Awards

BoE and BoD Paper BoD Paper

Q Contract Value is the total estimated value (net of VAT) of a contract awarded to a specific Contractor, including the aggregated value of the initial contract, subsequent Addenda, renewals and any form of options for the same scope. Q Unless the information provided to BoD has been materially revised, BoDs approval remains valid. In such cases, Management is not required to revert to the Board for the purposes of a contracts extension. Q In those cases, where the contract provisions communicated to the BoD, for valid reasons, have been revised, then the BoD shall be informed accordingly.

ditto

Connected Contracts

Project Initiator/ Requestor

Notes:

Annex 4

Direct Awards

Direct Awards may apply in the following cases: a. when no tenders or no suitable tenders or no applications have been submitted in response to a procedure with a prior call for competition, provided that the initial conditions of contract are not substantially altered; b. where a contract is purely for the purpose of research, experiment, study or development, and not for the purpose of securing a profit or of recovering research and development costs, and insofar as the award of such contract does not prejudice the competitive award of subsequent contracts which do seek, in particular, those ends; c. for technical or artistic reasons, or for reasons connected with the protection of exclusive rights; d. for reasons of extreme urgency brought about by events unforeseeable, the time limits laid down for the procedures cannot be adhered to; e. in the case of supply contracts for additional deliveries by the original supplier which are intended either as a partial replacement of normal supplies or installations or as the extension of existing supplies or installations, where a change of supplier would oblige AIA to acquire material having different technical characteristics which would result in incompatibility or disproportionate technical difficulties in operation and maintenance; f. for additional works or services which were not included in the project initially awarded or in the contract first concluded but have, through unforeseen circumstances, become necessary to the performance of the contract, on condition that the award is made to the contractor or service provider executing the original contract: when such additional works or services cannot be technically or economically separated from the main contract without great inconvenience to AIA; or when such additional works or services, although separable from the performance of the original contract, are strictly necessary to its later stages. g. in the case of works contracts, for new works consisting in the repetition of similar works assigned to the contractor to which AIA awarded an earlier contract, provided

that such works conform to a basic project for which a first contract was awarded after a call for competition; as soon as the first project is put up for tender, notice shall be given that this procedure might be adopted and the total estimated cost of subsequent works shall be taken into consideration by AIA under the specific provisions of the Directive; h. for supplies quoted and purchased on a commodity market; i. j. for contracts to be awarded on the basis of a framework agreement, provided that the specific condition referred to in the Directive is fulfilled; for bargain purchases, where it is possible to procure supplies by taking advantage of a particularly advantageous opportunity available for a very short time at a price considerably lower than normal market prices; k. for purchases of supplies under particularly advantageous conditions from either a supplier definitively winding up its business activities or the receivers or liquidators of a bankruptcy, an arrangement with creditors or a similar procedure under national laws or regulations; l. when the service contract concerned is part of the follow-up to a design contest organized in accordance with the provisions of the Directive and shall, in accordance with the relevant rules, be awarded to the winner or to one of the winners of that contest; in the latter case, all the winners shall be invited to participate in the negotiations.