Call for tenders' details
Status
Submission date
22/08/2013
Answer date
29/08/2013
Language
Status
Answered
Question details
Subject
Conflicts of Interest
Question
The requirements set forth in the Tender Specification sections 2.3.2.2. “Criteria relating to the team” and 3.4.1.3. “Avoidance of conflicts of interest and market abuse” appear to mutually exclude each other. The qualifications requested from the team require having worked for and continuing to work for financial institutions, energy firms and industrial companies – all of which will likely participate in the auctioning process. Hence any expert firm or person in the field of regulated financial or energy market would not in principle be able to meet both criteria, if our understanding is correct. Therefore we would be able to propose the following solution for the mitigation of conflicts of interest: (1) we can demonstrate that our firm is fully accustomed and experienced in providing services for clients which are in direct competition with each other. This requires the most strict adherence to procedures and policies which prevent providing any of the clients with information that could be disadvantageous to another client. Those procedures have been successfully in practice within our firm since many decades and should prove sufficient for fulfilling the task of the auction monitor. (2) We can consent in addition that no person of the chosen team for the duration of the monitoring would directly work with any participant of the auction process in the field of trading or procurement of emission certificates. Please let us know whether such an approach is acceptable in your view and whether, if explained adequately, it will positively influence the following in the evaluation of bids: “the requirements for appointing the auction monitor will take account of candidates with the least risk of conflicts of interests or market abuse having regard, in particular, to their activities on the secondary market”?
Answer
29/08/2013
The Commission does not consider the provisions of sections 2.3.2.2 and 3.4.1.3 to be mutually exclusive. Note that the requirements in section 2.3.2.2 relate to experience in the past, whereas the requirements described in paragraphs a) and b) of point 1) of section 3.4.1.3 of the Tender Specifications apply as of the entry into force of the contract and until a period of one year after the expiry or termination of the contract has elapsed. It is in the first place for potential tenderers themselves to determine whether the risk of conflict of interest may arise, if such existing or potential conflicts can be satisfactorily addressed and whether, as a result, the potential tenderer concerned is in position to submit an offer.