LAW OF THE REPUBLIC OF ARMENIA

of July 19, 2000 No. ZR-62

About purchases

Accepted by National Assembly of the Republic of Armenia on June 5, 2000

Chapter 1. General provisions

Article 1. Subject of regulation of the Law

This Law governs the relations connected with purchases of goods, works and services for needs of the state and municipalities, establishes basic rights and obligations of the Parties of these relations.

Article 2. Purpose and coverage of the Law

1. The purpose of this Law is providing the effective organization, publicity and transparency of process of performing purchases for needs of the state and municipalities, and also:

1) performing purchases on the conditions economic for the state and municipalities;

2) application of single rules of the organization of procedures of purchases by state bodies and local government bodies;

3) state regulation and cross-industry coordination;

4) priority of the right of equal participation of any person, irrespective of the fact of its accessory as resident to any state.

2. Operations of this Law are included by process of the purchases made in the territory of the Republic of Armenia for needs of the state and municipalities at the expense of the relevant budgets, and also other financial resources which are at the disposal of state bodies and local government bodies.

Article 3. The basic concepts used in the Law

In this Law the following basic concepts are used:

purchases - acquisition by the customer of all types of goods, works and services at the expense of the relevant budget of the Republic of Armenia and (or) other financial resources by the methods which are not contradicting the legislation of the Republic of Armenia by purchase, lease, leasing, payment by installments goods, works, services;

the purchase contract - the agreement signed by the customer for the purpose of performing purchases according to the procedure, established by this Law (further - the contract);

the customer - the state bodies, local government bodies and the organizations given authority on accomplishment of purchases under this Law and also the legal entity or organization authorized on that by the Government;

the participant - person participating in process of purchases for the purpose of the conclusion of the contract according to this Law;

the elected participant - the participant declared as the winner in tender according to this Law;

the offer on the conclusion of the contract - the notification containing the offer on the conclusion of the contract directed by the customer according to the procedure, established by this Law;

providing the bid - the providing provided to the customer for execution by the participant of the obligations connected with its participation in tender;

performance bond - the providing provided to the customer for obligation fulfillment, accepted by the elected participant under the signed contract;

the requirement of goods, works and services - the invitation to tender (further - the invitation to tender) or quotation request, provided by the customer according to this Law for the purpose of performing purchases;

goods offering, works and services - the bid (the daleekonkursny request) or the quotation sent to the customer in the procedure established by this Law based on the invitation to tender or quotation request;

characteristics (specification) - the economic, qualitative and technical performances characterizing the subject of the contract;

basic price of purchases - the amount expressed in national currency of the Republic of Armenia equivalent to thousandfold minimum wage.

Article 4. Legislation of the Republic of Armenia, other legal acts and regulations of international treaties on purchases

1. The legislation of the Republic of Armenia on purchases (daleezakonodatelstvo about purchases) consists of the Constitution of the Republic of Armenia, the Civil code of the Republic of Armenia, this Law, other laws of the Republic of Armenia.

2. The relations on purchases can be governed also by other legal acts.

3. If the international treaty of the Republic of Armenia establishes other regulations which are not provided by this Law, then regulations of the international treaty are effective.

Article 5. Acceptance and publication of other legal acts about purchases

Other legal acts about purchases are adopted according to provisions of this Law the Government of the Republic of Armenia (further - the Government) and (or) the state body authorized by it (further - authorized body).

Other legal acts about purchases, except the cases established by the law, are published in the statement of authorized body about purchases (further - the statement).

Article 6. Publicity of purchases

1. If the price of the contract exceeds one quarter of basic purchase unit, then not later than within 30 working days after the conclusion of the contract according to the procedure, established by authorized body, information on this contract which shall contain at least is published in the statement:

1) the short description of the purchased goods, works, services;

2) reasons for requirement and choice of method of performing purchases;

3) contract price;

4) number, month, contract year of imprisonment;

5) name (name) and address of contract parties.

2. If information which is subject to publication contains the state secret, then requirements of Item 1 of this Article are not applied.

Article 7. The participation right in purchases and criterion of qualification of participants

1. In purchases have no right to participate persons:

1) who are insolvent, declared bankrupt in the course of liquidation or those which property it is seized;

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