Service contract: Integrated measures in agriculture to reduce ammonia emissions I Background information The Commission is planning to adopt by mid 2005 a Thematic Strategy on air pollution. The objective of this Strategy is to meet the objectives of the 6 th Environmental action plan, which have the aim of achieving levels of air quality that do not give rise to significant negative impacts on and risks to human health and the environment. The Clean Air for Europe program has produced the scientific basis for the Strategy 1. Various health and environmental ambition levels for 2020 have been evaluated and a global ambition level will be proposed in the Strategy. On the basis of the national reports and during the preparation of the Strategy, it has been demonstrated that ammonia emissions participate to the eutrophication and acidification and to the formation of secondary particulate matter in the atmosphere. The main source of ammonia emission is agriculture (cattle farming for about 40%, pig and poultry - 40%, and the use of N-fertilisers -about 20%). These ammonia emissions and impacts have been quantified using the RAINS model developed by IIASA 2. The model allows to identify the most cost effective packages of measures to meet various environmental and health objectives, such as the objectives of the Strategy. Different abatement technologies 3 and associated costs are included in the model. For each country, assumptions on projections of the main drivers for the agricultural sector (such as animal numbers, fertiliser use) and on the penetration rate of the various agricultural practices and technologies were made on the basis of bilateral consultations with the countries and as a results of a questionnaire sent to all Member States 4. The data on abatement technologies used in the RAINS model are based amongst others on the guidelines for ammonia abatement developed and updated by Working Group on Ammonia Abatement of the UNECE Convention on Long Range Transboundary Air Pollution (CLRTAP) 5. In a first approach, the following measures to reduce ammonia were identified in the Strategy: 1. In the framework of the revision of the emission ceilings under the National Emission Ceiling directive (NEC) (2001/81/EC) integration of new objectives for eutrophication, acidification and for particulate matter. As a consequence, new 1 More information can be found on the following web site: http://europa.eu.int/comm/environment/air/cafe/index.htm 2 More information can be found on the following web site: http://www.iiasa.ac.at/web-apps/tap/rainsweb/ 3 The abatement technologies are described in the IIASA web site 4 More information is available from the following web site: http://www.iiasa.ac.at/rains/reports/ir-04-048.pdf 5 More information can be found on the following web site: http://www.unece.org/env/aa/welcome.htm 1
emission ceilings for ammonia will be developed before end 2006 as well as new guidelines for the national programs required under the directive. 2. In the context of the general review of the Integrated Prevention and Pollution Control (IPPC) directive, a possible extension of the directive to include installations for intensive cattle rearing and a possible revision of the current thresholds for installations for the intensive rearing of pigs and poultry. 3. In the context of the current rural development regulation and the Commission proposals for rural development for 2007-13, the Commission encourages the Member States to make full use of the measures related to farm modernisation, meeting standards and agro-environment to tackle ammonia emissions from agricultural sources. In the evaluation of the measures aimed at reducing ammonia emissions, the necessity and the interest of an integrated approach to the nitrogen cycle (N cycle) as a whole was highlighted, in order to address ammonia, but also nitrous oxide (N 2 O) and nitrate emission. The importance and relevance of considering the nitrogen cycle as a whole for policy development was recently highlighted notably through the Nanjing declaration on nitrogen management 6. Such an integrated approach shall also cover methane emissions, which are intensively linked to the nitrogen cycle. Measures aiming at reducing the emissions of one of those pollutants could imply either a reduction, an increase or have no effects on other pollutants. During the preparation of the Strategy, the integrated approach was only partly taken into account notably because the current version of the RAINS model does not include estimates of the effect of the different measures taken to reduce ammonia emission on nitrate losses to the aquatic environment. On the other hand, the impact of measures taken to reduce nitrate emissions to water on ammonia, N 2 O and methane emissions is not yet assessed. The integrated approach to N-cycle should be considered, taking also into account the obligations set out by the Water Framework Directive (2000/60/EEC) to achieve a good status for all water by 2015, which may imply, the need to reduce nutrient inputs via fertilisers beyond the levels currently required, notably in order to tackle phosphate water pollution and eutrophication. Finally, in the framework of the revision of NEC directive, a new baseline scenario will be developed by IIASA and submitted to bilateral consultations with the stakeholder. This new baseline will include new energy and agriculture projections integrating the measures taken by the Member States in order to meet the objectives of the Kyoto protocol. The impact of the CAP reform as assessed by a recent study of EEA 7 will also be integrated. The new baseline should be finalised for end 2005. II Objectives 6 See http://initrogen.org/nanjing_declaration.0.html 7 The final report is available for the interested tenderers, please contact : M. Stéphane Isoard at EEA: Stephane.Isoard@eea.eu.int 2
The objective of the contract is to define the most appropriate integrated and consistent actions to reduce various environmental impacts (notably water, air, climate change) from agriculture. Specifically, the objective is to develop and apply a methodology allowing to assess and quantify the costs and the effects of various policies and measures aiming at reducing the impact of agriculture on water, air pollution and climate change. Both ancillary benefits and trade offs of measures need to be identified. The impacts and feasibility of the most promising measures need to be analysed in depth. III Description of the tasks The tenderer shall provide in his offer a proposal for a work plan and methodology for each identified task and sub-task to achieve the objectives of the assignment. This work plan will be discussed with the Commission within one month of the signing of the contract at a kick-off meeting. At that meeting the details of the work plan will be decided to be included in the inception report with the final workplan. It is essential in the offer to clearly state the sources of information for each task and hence to avoid double work as compared to existing contracts/reports/studies. The place of performance will be outside Commission premises (extra muros). The EU 25 Member States are to be covered in this assignment and as far as possible Romania, Bulgaria, Turkey and Croatia. For these 4 countries, the tenderer should describe in its offer the limitations he expects to encounter and their implications for the output of each task. If necessary, for specific sub-tasks to be specified in the offer, a methodology could be proposed based on the detailed analysis of case studies in certain representative Member States or geographical/agricultural zones to enable a general assessment for all the countries. The tenderer should justify in its offer the relevance and representativeness of the possible case studies he intends to propose. As the Commission has used the RAINS model as a basis for the Strategy and will use the same model in order to prepare the review of the NEC ceilings, it is important to explain in the offer how the contractor will use and build bridges with the information, results and approaches of the RAINS model and the associated CAFE cost and benefit analysis 8. In addition, all the calculations will be carried out for the same years as those used in the RAINS model. The contractor will have to reserve some resources to ensure a good understanding and compatibility with the RAINS model, including if necessary direct contacts with the IIASA team. 3.1 Task 1: Develop an integrated approach The contractor will develop a simple method to assess the impact of the measures/technologies aiming at reducing ammonia emissions as integrated in the RAINS model on nitrate emissions and on possible compliance with the nitrate directive Similarly, the impact on ammonia, N 2 O and methane emissions of at least 3 8 all the documents are available from the CAFE web site 3
level of implementation of the nitrate directive will be assessed. This will require development of an integrated model, parameters and data for the assessment. The following sub-tasks are suggested: For each of the abatement technologies identified in the RAINS model and in the UNECE WG guidelines for ammonia abatement, estimation of its impact on nitrate emission; Development of a method allowing to make bridges between on one hand the grid/country approach as developed in RAINS and the linked models (such as the atmospheric pollutant dispersion model EMEP) and on the other hand the different zones as defined in the nitrate directive; Assuming 3 levels of implementation of the nitrate directive (partial, full compliance, reinforced actions, to address phosphate pollution and to meet the good water status of the WFD by 2015 9 ), for each Member State, identification of the measures aiming at reducing nitrate emissions in the waters and assessment of their implications in terms of air emissions. The measures to be considered should be those to be included in the action programme according to the nitrate directive and in particular the measures of annexes II and III. The contractor should define as far as possible the possible other specific measures and reinforced actions to be included by the Member States in their programs for nitrate vulnerable zones according to article 5 paragraph 5 of the nitrate directive; Analysis of the consequences on nitrate emissions and as far as possible on compliance with the directive of at least 3 scenarios developed with the RAINS model and chosen after consultation with the Commission. The final output of this task will be a technical report covering the task and sub tasks as described above accompanied with a documented calculation sheet allowing the Commission to make additional simulations on the basis of both RAINS new scenario and other measures which could be taken under the nitrate directive. 3.2 Task 2: Analysis of International and European instruments The contractor will analyse the existing European and international (under the CLRTAP and climate change Conventions) instruments aiming at reducing emissions of nitrous oxide and methane, ammonia and nitrate in water. This concerns at least the code of good practises (notably those developed under the nitrate directive and 9 Partial implementation of the nitrate directive will mean implementation of the action programme to the nitrogen vulnerable zones (NVZ) identified by Member states in 2005 and implementation of the action programmes in force in MS in 2005. Full implementation means application of all the measures of the action programmes included in Annex II and III of the Directive to the NVZ identified as requiring designation by the Commission (see http://europa.eu.int/comm/environment/water/water-nitrates/index_en.html ). Reinforced actions to meet good water status according to WFD means full implementation of the nitrates directive, plus further reinforced actions required to tackle also phosphate pollution and to ensure the achievement of the good status by 2015 according to the requirements of the WFD. 4
under the CLRTAP Convention), provisions under the two pillars of the CAP, action plans in the vulnerable zones under the nitrate directive. In its offer, the tenderer should clearly identify the relevant instruments he intends to analyse. The contractor should identify the possible synergies (and/or possible antagonisms if any) in existing International and European policies accompanied with recommendations to ensure an optimal coherence. The final output of this task will be a technical report covering the task and sub-tasks as described above. 3.3 Task 3: In depth assessment of the most promising measures Based on the results of task 3.1 and 3.2, and on other relevant sources of information and expertise to be detailed in the offer, a list of the most promising (package of) measures will be identified and proposed to the Commission for in depth analysis. For each measure a broad assessment of its cost and impact will be achieved. In order to be considered as promising, the (package of) measure should correspond to the following criteria i) co-beneficial effects for water, air, climate change and soil protection; ii) feasible notably from an administrative and enforceability point of view; iii) potentially acceptable by farmers notably concerning costs and additional efforts at farm level; iv) compatibility with the need for improved animal welfare 10. This list will include at least adapted feeding strategies aiming at ensuring the same level of production with a reduced nitrogen contents in food and/or an adaptation of the feeding to the level of growth of the animals. Three packages of measures will be selected after a dialogue with the Commission and assessed in depth by the contractor. On the basis of the results of the RAINS model, the output of task 1, and of the CAFE cost and benefit analysis, the contractor will analyse for each country the potential impact of the promising measures notably in terms of emission reduction, costs and benefits, social impact, and additional administrative burden. These assessments will be achieved respecting the guidelines on impact assessment as established by the Commission 11. The contractor will identify the most effective European and/or national instruments in order to implement the identified measure: this could concern new legislation, adaptation of code of good practises (notably those developed under the nitrate directive and under the CLRTAP Convention), provisions under the two pillars of the Common Agricultural policy, etc. On the basis of a dialogue with the Commission, he will then summarise the main elements to be integrated in possible future European instruments. 10 11 see relevant European legislation and United Nations document (Economic and Social Council) of 14 June 2004 EB.AIR/WG.5/2004/7, page 8, point (h). http://www.unece.org/env/documents/2004/eb/wg5/eb.air.wg.5.2004.7.e.pdf Please refer notably to the relevant items of annex 2 of the following document:: http://europa.eu.int/comm/secretariat_general/impact/docs/progress_report_council_sec_1377.pdf 5
The final output of this task will be a technical report covering the task and sub tasks accompanied with an impact assessment for the 3 identified set of measures and/or policies respecting the guidelines on impact assessment as established by the Commission. 3.4 Task 4: Impact Assessment of a possible modification of the IPPC directive: One of the proposed measures of the Strategy is the assessment of the extension of the IPPC directive to intensive cattle rearing installations and a possible revision of the thresholds for intensive rearing installations of pigs and poultry 12. In the offer, a clear distinction should be introduced for cattle, pig and poultry installations. The way of including the impact of the CAP reform as well as the possible evolution of the farming structure in the new Member States should be detailed in the offer. The following sub-tasks are suggested: 1. Data gathering on the current situation: For each Member State, the following information should be gathered: a) Pig and poultry installations: (1) the number of installations linked with the number of animals with a clear distinction between those already covered by IPPC and the others (2) a quantitative estimation of the environmental impacts for each size-category of installation (3) level of variation of environmental performance across the EU (4) estimation of the impacts of implementing the IPPC Directive (reduction of the environmental impacts/estimation of the economic and social impacts); b) Cattle installations: (1) the number of installations linked with the number of animals with a clear distinction between those already covered by national permitting legislation (which can be based on the concept of BAT or can fix minimum standards for the operation of such installations) (2) a quantitative estimation of the environmental impacts for each size-category of installation (3) a description of the current regulation of this sector across the EU (4) level of variation of environmental performance across the EU. 2. Definition and broad assessment of various options: On the basis of existing legislation in the Member States (and notably any thresholds set by Member States for the purposes of the EIA Directive Annex II which refers to intensive livestock installations ), and on the basis of its own expertise, the contractor will propose various realistic options (at least 3 different options) to the Commission for lowering the current thresholds (and introducing a new threshold for cattle installations). After approval of the proposed options by the Commission, the implications of various possible thresholds for each of these activities will be assessed for each country and for the EU as a whole. This includes at least an assessment of: (1) the number of installations which could be concerned (additionally to those already covered by IPPC and/or national legislation) (2) on the basis of possible BAT ( Best 12 Pig and poultry activities are covered by IPPC Directive as long as the number of places in the considered installation is above respectively 40.000 for poultry, 2000 for pigs and 750 for sows-. 6
available techniques ), emission reductions at least of ammonia, methane and N 2 O emissions as well as, on the basis of the results of task 1, the implications on nitrate emissions (3) costs and benefits. Costs evaluation will include in particular the uptake of BAT and the administrative burden (e.g. permits application, costs for authorities for issuing permits and controlling the installations). All the scenarios should be compared to a do nothing scenario, including in particular the application of the current Community framework (in particular the nitrate directive, the water framework directive and common agricultural policy ). On this basis, the potential added value of a possible extension of the IPPC directive will be discussed. In order to calculate the potential impact of these options, the contractor shall define broadly the possible BAT to be applied. This should be done on the basis of the existing BREF on intensive livestock, definition of BAT and comparison with the technologies integrated in RAINS. For cattle installations, for which the BAT are not yet defined at EU level, the contractor is expected to define the main elements which could be integrated in possible BAT and their associated costs, notably on the basis of existing national legislation and permitting rules which will be summarised in the report. Particular focus should be set on feeding strategies, housing techniques, storage of manure and spreading of manure. 3. Assessment of the impacts of lowering the current thresholds: On the basis of the results of the sub-task 2, and after approval of the Commission, one level of threshold will be chosen for each activity and in depth assessed in respect of the guidelines on impact assessment as established by the Commission. In its offer, the tenderer is expected to include a first proposal of table of contents of the impact assessment. In addition to the impacts already analysed in other tasks, local disturbance (odour, noise) and diffuse spreading of heavy metals and as well as social impact will notably be assessed. The social impact will need to take account of the economic state of the sector and the extent to which applying IPPC would affect the ability of farmers to keep operating, employment, etc. In order to reduce the possible social impact, the contractor shall identify possible European accompanying measures. The final output of this task will be a technical report covering the task and sub tasks as defined above accompanied with a complete proposal of impact assessment for the selected scenario for each sector strictly respecting the guidelines on impact assessment as established by the Commission. 3.5: Task 5: Stakeholder consultation, presentations, workshop In its offer, the tenderer will describe its methodology to ensure an appropriate stakeholder (including NGO s, farmer organisation, Members States experts, etc) consultation. It is expected from the contractor to present the results in various relevant working groups notably under the IPPC, nitrate and national emission ceiling directives. At least six presentations/meetings in Brussels should be foreseen in these specialised working groups. In addition, at least 3 follow-up meetings should be foreseen with the Commission representatives. Depending on the proposals of the contractor, ad-hoc workshops and/or expert meetings could be organised in Commission buildings. 7
IV Experience required of the Contractor The contracting team needs to have very good knowledge of the agricultural and environmental fields and notably: - Strong scientific background in relation to the different path of the Nitrogen cycle and its implication at the farm level; - Implementation of the nitrate, IPPC, water framework directive and national emission ceiling directives and related issues; - European Common Agriculture Policies including the recent reforms and its mechanisms and their practical implications at farm level; - Air quality and pollutant emission fields- particularly for what concerns green house gases and ammonia emissions, such as air pollutant emission inventories, emission/air quality management plans, the use of models to predict emissions and air quality, the effects of air pollution, cost and benefits aspects of air pollution, measures to reduce pollutant emissions; - Impact assessment notably in agricultural field. A practical knowledge of the constraints linked with farm management and its relationship with European policies is particularly important for the implementation of this contract. V Duration of the contract This contract will be valid for 16 months from the date of signature of the contract. VI Validity of the offer The offer shall remain valid for a period of 6 months, as from the deadline for submission of offers. VII Reports and Documents/Deliverables An inception report with a detailed work plan has to be produced within one month of the kick-off meeting. An interim report will be delivered 9 months after signature reflecting the progress and findings. This report will include at least most of the final results of task 1 and 2. Specifically the contractor shall identify problems in the progress of the assignment. The contractor is expected to present the interim report at a coordination meeting of the assignment. The draft final report will be achieved 13 months after signature at the latest. The revised final report has to be submitted at the latest two months later. The contractor is expected to present the draft final report at a coordination meeting of the assignment. All reports will be written in English, although annexed material, if needed, may be in any Community language. All reports/notes must contain a well-written executive 8
summary (max 3 pages) done in English, French and German showing the main findings of the work. All reports should be made available as Microsoft WORD files. Key data used in the preparation of reports should be made available to the Commission in spreadsheet (Excel) form. VIII Subcontracting Subcontracting is permitted subject to the following conditions: the subcontractor is the sole responsibility of the main contractor; tenderers must indicate in their offers the amount of the contract (if any) that they intend to subcontract to third parties, as well as the identity and availability of the potential subcontractor(s). The contractor will not subcontract to third parties not identified in the offer as potential subcontractors without prior written authorisation from the Commission; the contractor shall not cause the contract to be performed in fact by third parties; even where the Commission authorises the contractor to subcontract to third parties, the contractor shall nonetheless remain bound by his obligations to the Commission under the contract; the contractor shall make sure that the subcontract does not affect rights and guarantees to which the Commission is entitled by virtue of the contract. Where the total amount envisaged for subcontracting is above 30% of the total contract value, evidence of the potential subcontractor (s) ability to perform the tasks entrusted to him/them shall be included in the offer. Such evidence is the same as that also required from the contractor, as described and identified, in section XII below. Where the total amount envisaged for subcontracting is above 50% of the total contract value, the potential subcontractor(s) must also present evidence of compliance with the exclusion criteria (as required from the potential contractor) as described in section XI below. Tenderers should note that the Commission will consider intended subcontracting below 30% of the contract value as an indication that the potential contractor has the resources to complete the tasks under the contract, as well as a factor potentially enhancing the proposed team organisation. Therefore this point will be taken into account in the assessment of the award criterion project management and availability. IX Formation of consortia for the purpose of the tender Where consortia are formed for the purpose of this tender the following conditions shall be met: - When the offer is submitted the members of the consortium must indicate their willingness both to be a member of the consortium and to enter into an agreement committing them to work together sharing the risks and rewards of a possible future contract; 9
- Tenders from consortia must specify the role, qualifications and experience of each of the members. In addition, the lead consortium member must be clearly identified; - Potential contractors should note that prior to the Commission signing the contract with the lead consortium member, all members must sign, and provide to the Commission, an agreement committing them to work together sharing the risks and rewards of the contract; In addition proof of eligibility, a declaration that there are no conflicts of interest, and documents on exclusion and selection criteria must be supplied by each member of the consortium submitting a tender, as follows: All members of a consortium must prove compliance with the exclusion criteria laid down in section XI below. For this purpose, further to the declaration signed by all its members (see a model in Annex C to the invitation to tender) the supporting documentation referred to throughout section XI must be provided. A consortium must, as a whole, comply with the selection criteria laid down in section XII.A and B below, which concern technical and professional capacity requirements and the financial standing of the tenderers. Moreover, the lead consortium member shall be in full compliance with all selection criteria. Each firm in a consortium must comply with the requirements laid down in section XII C and D below (authorisation to perform the contract and access to the market, respectively). X Method of payment This contract will be paid on a lump sum basis. A pre-financing payment of 30% will be paid upon signature of the contract. An interim payment of 40% will be paid upon acceptance by the Commission of the interim report. A final payment of 30% will be paid upon acceptance by the Commission of the final report. The Commission is exempt from all taxes and dues, including value added tax, pursuant to the provisions of Articles 3 and 4 of the Protocol on the Privileges and Immunities of the European Communities with regard to its financial contribution under the contract. XI Exclusion criteria: Tenderers must submit all the supporting evidence and statements listed in sections XI.1 and XI.2 below. Moreover, where subcontracting above 50% of the total contract value is envisaged, potential subcontractors must also submit all the evidence listed below. 1. Tenderers will be excluded from participation in the contract procedure: a) if they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are 10
in any analogous situation arising from a similar procedure provided for in national legislation or regulations; b) if they have been convicted of an offence concerning their professional conduct by a judgment which has the force of res judicata; c) if they have been guilty of grave professional misconduct proven by any means, which the contracting authority can justify; d) if they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established, the country of the contracting authority or the country where the contract is to be performed; e) if they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities' financial interests; f) if, following another contract or grant award procedure financed by the Community budget, they have been declared to be in serious breach of contract for failure to comply with their contractual obligations. Tenderers must certify that they are not in one of the situations listed above by providing: i) for points a), b) and e), a recent extract from the judicial record or, failing that, a recent equivalent document issued by a judicial or administrative authority in the country of origin or provenance showing that those requirements are satisfied; ii) for point d), a recent certificate issued by the competent authority of the State concerned. Where no such certificate is issued in the country concerned, it may be replaced by a sworn or, failing that, a solemn statement made by the interested party before a judicial or administrative authority, a notary or a qualified professional body in their country of origin or provenance; Depending on the national legislation of the country in which the tenderer or candidate is established, the documents referred to in paragraphs i) and ii) shall relate to legal persons and natural persons including, where considered necessary by the contracting authority, company directors or any person with powers of representation, decision-making or control in relation to the candidate or tenderer. iii) Potential contractors must sign and attach the declaration concerning the exclusion criteria and any conflict of interest (See Annex C page 8). 2. Contracts will not be awarded to tenderers in the following cases: a) If there is a conflict of interest: Tenderers must state that they: 11
- are not involved in any conflict of interest in connection with the contract; - have not made and commit themselves not to make any offer of any type whatsoever from which an advantage could be derived in connection with this contract; - have not agreed to, have not sought, or accepted any advantage, financial or other, constituting an illegal practice or involving corruption, either directly or indirectly, as an incentive or reward relating to the award of the contract, to or from any party whatsoever. b) Are guilty of misrepresentation in supplying the information required by the contracting authority as a condition of participation in the contract procedure or fail to supply this. XII. Selection Criteria The potential contractor (whether or not subcontracting is envisaged) or consortium leader must comply and prove compliance with all the selection criteria listed below. Where the total amount envisaged for subcontracting is above 30% of the total contract value, potential subcontractors must also comply and prove compliance with the respective requirements, as laid down in section VIII above. In case the offer is submitted by a consortium, the relevant provisions under section IX above shall be adhered to. A. Technical and professional capacity: 1. Experience as evidenced by the qualifications, both educational and professional, of the service provider or contractor and those of the firm's managerial staff and, in particular those of the person or persons responsible for carrying out the service/work. Curriculum vitae must be provided. 2. A reference list of relevant previous projects over the past 3 years must be provided, indicating the sums involved, dates, recipients, public or private. B. Financial standing: Presentation of balance sheets or extracts from balance sheets for the last 2 years for which accounts have been closed, where publication of the balance sheet is required under the company law of the country in which the economic operator is established. C. Authorisation to perform the contract: A tenderer must prove that he is authorised to perform the contract under national law, as evidenced by inclusion in a trade or professional register, or a sworn declaration or certificate, membership of a specific organisation, express authorisation or entry in the VAT register. D. Access to the market: A tenderer must indicate in which State they have their headquarters or domicile and to present the supporting evidence normally acceptable under their own law. XIII Award Criteria Further to the price quoted for the contract, the following award criteria will be applied: 12
1. Understanding: this criterion serves to assess whether the tenderer has understood all of the issues involved, as well as the nature of the work to be undertaken and the content of the final products. 2. Methodology: the degree to which the methodology shows the capacity to resolve the questions underlying in the tender in a realistic and well-structured way, as well as whether the methods proposed are suited to the needs set out by the Commission in the Technical Annex. 3. Project management and availability: offers will be assessed as regards the organisation of the team, the time allocated to each team member and the availability of resources for the completion of the contractual tasks, which should be clearly outlined in the tender. XIV Points system and presentation of the budget: Points System: A maximum of 45 points will be attributed to criterion 1, a maximum of 30 points will be attributed to criterion 2 and a maximum of 25 points will be attributed to criterion 3. In addition two categories of thresholds will be set up under this system of points: - Technical sufficiency levels: Selected companies will have to score a minimum of 30 points to criterion 1, 20 points to criterion 2 and 15 points to criterion 3 with a minimum total of 65 points. - A technical excellence level, set up for the total number of points only, of 75 points. Budget: The budget is a maximum of 300.000 excluding VAT (including fees, travel and all other costs). The Commission is exempt from all taxes and dues, including value added tax, pursuant to the provisions of Articles 3 and 4 of the Protocol on the Privileges and Immunities of the European Communities with regard to its financial contribution under the contract. The price quoted must be a firm, non-revisable price and must be quoted in euro. XV Ranking of the tenders and award of the contract: The bid offering the best value for money will be chosen, provided that the minima numbers of points cited above are achieved. Best value for money will be calculated as follows: Bids that do not satisfy all technical sufficiency levels will not be considered for contract award. For the offers at, or above, all the technical sufficiency levels, the price is divided by the total number of points awarded. The award of the contract will be made in accordance with the following principles: 13
If the tenderer with the lowest ratio is below the technical excellence level, its offer wins. If the tenderer with the lowest ratio is at or above the technical excellence level and no other tenderer(s) scored at or above that level, its offer wins. If the tenderer with the lowest ratio is at or above the technical excellence level and at least one other tenderer scored at or above that level, the winning offer will be the lowest priced one amongst the set of those at or above the technical excellence level. 14