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Procurement Committee

The Procurement Committee was established and its Statute and the “Guidelines for organization and management of procurement by Azerbaijan Caspian Shipping Closed Joint-Stock Company was approved by the Order of ASCO dated June 12,  2014  No. 99 according to Article 1 and Article 2 of the Law of the Republic of Azerbaijan “On public procurement” and clauses  3.2.24, 7.1.16, 7.1.17 of the Articles of Association of ASCO. The Committee is the competent authority responsible for the procurement of goods (works and services) and supervising these processes. The main purpose of the Committee is to harmonize the procurement operations of ASCO with the current legislation of the Republic of Azerbaijan, Articles of Association of ASCO, “Guidelines for organization and management of procurement by Azerbaijan Caspian Shipping Closed Joint-Stock Company”,  generally accepted principles of international shipping and business practices in respect of procurement, as well as to perform procurement procedures of ASCO in accordance with the principles of transparency, fairness by eliminating the circumstances that may cause abuse thereof and to involve the most cost-effective economic and technical offers. The composition of the Committee is determined by the chairman of ASCO. The Committee shall arrange its activities either by adopting decisions approved by members of the Committee participating in the meetings of the Committee or by approval of the relevant decisions by members not participating in the meetings. The meeting shall be considered valid if the quantum of more than half of the members of the Committee attends the meeting. Decisions are made by a simple majority of votes. In case the votes are even, the vote of the Chairman of the Committee shall be decisive.

The Committee has the following rights and obligations :

  • to arrange the procurement procedures and supervise the compliance with the requirements of internal documents regulating the procurement procedures, to resolve controversial issues ;
  • to make independent decisions on competition proposals guided by assessment criteria ;
  • to approve the list of potential vendors (contractors) ;
  • to approve the procurement strategy, list of bidding participants and the results of the bidding within the scope of its competence ;
  • to approve out of competitive procurement strategy for the procurement of goods (works and services) within its capacity ;
  • to delegate the authority to negotiate ;
  • to consent to the increase of the general contract price within the limits of its capacity ;
  • to coordinate the procurement process between the entities ;
  • to suspend the procurement procedures up to the conclusion of the procurement agreement ;
  • to make proposals to the ASCO Chairman on the preparation and improvement of ASCO internal documents regulating procurement ;
  • to adopt, within the limits of its capacity, appropriate decisions (approval of documents) regarding the application of internal documents regulating the procurement process at ASCO ;
  • to solicit a petition to the relevant structural subdivision to conduct inspections if there is any doubt about the result of bidding ;
  • to make a decision on the liquidation of the bidding results and re-performance of the procurement procedures, if the value of the bidding offer to be accepted by the procuring organization differs substantially from the estimated value of the goods (works and services) ;
  • to make a decision on the assignment the performance of the procurement operations to the entities ;
  • to make a decision on the establishment of the Procurement Teams to operate within the Office of ASCO and to approve their composition ;
  • to involve external consultants and experts in order to carry out the procurement operation effectively and determine the estimated value of the procured items ;
  • to take necessary measures in order to arrange training of the required personnel in the field of procurement and to conduct courses for raising qualifications in accordance with the internal documents of ASCO.