Our firm has translated the regulation to all relavant parties whom are interested in offset regulations in Turkey:
PROCEDURES AND PRINCIPLES REGARDING THE EXECUTION OF
INDUSTRIAL COOPERATION PROJECTS
Objective, Scope, Grounds and Definitions
Objective and Scope
ARTICLE 1 – (1) The purpose of these Procedures and Principles; pursuant to (u) clause of the first paragraph of the 3rd article of Public Procurement Act numbered 4734, dated 1/4/2002, is to define the Procedures and Principles which will be applied to the purchase of goods and services to procure innovation, indigenization and technology transferring and tenders for the construction works within this context.
ARTICLE 2 – (1) These Procedures and Principles are prepared based on the (u) clause of the first paragraph of the 3rd article of Public Procurement Act numbered 4734 and its additional 11th article.
ARTICLE 3 – (1) It expresses the following Procedures and Principles:
- a) Open tender procedure: The procedure in which all applicants can place a bid,
- b) Applicant: natural or legal persons and joint ventures constituted by these bodies who received the tender document,
- c) Research and development (R&D): activities defined in the (a) clause of the first paragraph of the 2nd article of the Act on Promoting Activities of Research, Development and Design, numbered 5746 and dated 2/28/2008,
ç) Ministry: The Ministry of Industry and Technology,
- d) Ministry Top Director: top director of the Ministry as determined by the President according to the Public Finance Management and Control Law, numbered 5018 and dated 12/10/2003,
- e) Tender to predetermined bidders: The procedure in which only the applicants determined by the Management, or invited because of preliminary qualification, are able to bid,
- f) Advisor: Service provider who advises, uses their knowledge and experience for the good of the management, has no direct or indirect relations with the contractor of the job they advise for, provides a consultancy service,
- g) Surplus charges: according to principles and formula determined by management or defined in the legislation regarding the Act numbered 4734, the difference in price of the supply contract,
ğ) Management: management defined 2nd article of the Act numbered 4734,
- h) Tender document: document and its addendums prepared as part of the tender which contain technical, administrative, financial, legal and industrial and technological contribution considerations,
ı) Tender process file: File prepared for each project put in a tender, containing the SIP (Industry Collaboration Project) decision, tender document, tender notice, addendum and all other documents regarding the tender process,
- i) Tendering official: Person or commission that hold management’s authorization and responsibility to put in a tender or spend money, or officials that were duly entrusted with the authorization and responsibility,
- j) Tenderer: Applicants who placed a bid,
- k) Credit facility: Ministry’s determination of the performed industrial and technological contribution amount,
- l) Criteria tree: Charts that include the criteria, criteria weight and the method of evaluation which will be the basis during the tender evaluation activities, a sample of which is in Addendum-I,
- m) Small and Medium-sized Enterprise (KOBI) business share: activities conducted by small and medium-sized enterprises as described in the (b) clause of the 1st paragraph of the 4th article of the Regulation Regarding the Definition, Specifications and Classification of Small and Medium-sized Enterprises, which was put into effect with the Cabinet Decree numbered 2005/9617 and dated 10/19/2005 as part of Category-A industrial and technological contribution activities,
- n) Cost-effectivity formula: formula appearing in Addendum-2,
- o) Preliminary approval: The approval from the Ministry before starting any activities, in order to have pursued activity plans accepted as industrial and technological contributions and to provide loans,
ö) Program period: Timeframes determined in the industrial and technological contribution contract as the period in which industrial and technological contribution obligations are to be carried out,
- p) Industrial Cooperation Project (SIP): Project containing the purchase of goods, services or construction works by the Management which include procure innovation, indigenization and technology transferring,
- r) Industrial and Technological Contribution (STK) principles: The document containing general principles regarding STK proposal, minimum STK liabilities, information regarding activities mandatory to be conducted domestically, a STK proposal draft and its addendums,
- s) Industrial and Technological Contribution (STK) contract: Contract which regulates the terms and conditions regarding the contractor’s industrial and technological contribution obligations, signed between the Contractor and the Ministry,
ş) Standardization: The process of lowering operation and management costs to a minimum or ensuring quality, brand, models or producing company cooperation in order to maintain conformity with the present system.
- t) Supply contract: Contract containing technical, administrative, financial, legal considerations, signed between the Contractor and the Management.
- u) Sub-industry business share: Activities conducted by companies, institutions and organizations other than KOBIs and the contractor as part of Category-A industrial and technological contribution activities,
- z) Domestic Added Value (YIKD): a total of domestically acquired surplus and relevant taxes within the invoice amount of a good or service, except for domestically procured raw materials, materials, goods and workmanship, excluding those paid to foreigners via services, and relevant general management costs with the exception of travel, accommodation, food and postal services,
- v) Contractor: natural or legal persons and joint ventures constituted by these bodies, who signed the supply contracted with the management and the STK contract with the Ministry,
ARTICLE 4 – (1) In tenders put in according to these Procedures and Principles; transparency, competition, equal treatment, reliability, confidentiality, public opinion supervision, fulfilment of needs in appropriate conditions and on time is essential.
(2) In tenders, apart from the price, non-price factors such as operation and maintenance costs, productivity, quality, technical superiority and STK obligations are also evaluated.
(3) Unless there are acceptable, natural connections between them, purchase of goods, services and construction works cannot be put in a tender together.
(4) Managements, in tender to be made according to these Procedures and Principles, apply an open tender procedure or make a tender to predetermined bidders without looking to reach a number of bidders. However, managements can accept a bid from a single applicant for reasons such as strategical priorities, national interest, accumulated technological know-how in a single applicant, specialization requirement due to authenticity and high technology or to establish standardization.
Supply group and STK group
ARTICLE 5 – (1) After Management decides to impose SIP, a supply group is formed within the management body regarding the project in question and containing persons who possess technical competence in numbers and with qualifications determined by Management.
(2) After Management informs the Ministry its decision to impose SIP, an STK body is formed within the Ministry body, containing people in numbers and with qualifications determined by Management.
(3) In cases where Management or the Ministry does not have enough number of personnel or with required qualifications, members can be accepted into the supply group or to the STK group from other managements.
(4) Supply group or STK group can undertake activities to inform the public and private sectors and create a collaborative environment.
(5) Formation of the supply group, Procedures and Principles regarding its assignments and activities is determined by the management. Formation of the STK group, Procedures and Principles regarding its assignments and activities is determined by the Ministry.
Determination of the tender procedure
ARTICLE 6 – (1) Tendering procedure to be applied as part of SIP, determined by the supply group in accordance with the scope of the project, its subject and specifications, is submitted for the approval of the tendering official along with justifications regarding the tendering procedure. The tendering procedure approved by the tendering official is applied.
Preparation of the tender document
ARTICLE 7 – (1) Supply group prepares the tender document within the scope of the project. The tender document contains the following provisions at the very least:
- a) The tendering procedure to be applied as part of the tender, project model, the formation of applicants and bidders,
- b) Administrative specifications and technical specifications,
- c) Supply contract draft,
ç) STK principles prepared by the STK group,
- d) Validity period of the proposals, situations and conditions that may provide the conditions for granting a time extension,
- e) Situations which will disannul proposals,
- f) Situations which will exclude proposals from evaluation,
- g) Cost-effectivity formula,
ğ) Mandatory criteria which will the basis when evaluating proposals,
- h) In the condition that surplus charges are to be applied, the surplus charge formula to be applied,
ı) The base currency for tenders and fundamentals, price and means of performance securities and tender guarantees,
- i) Considerations regarding explanation demands in the tender document, means of explanation and making addendums to tender document,
- j) Complaint means regarding remedial actions to be undertaken by the management,
- k) A clause stating that the Management is completely free to accept or reject any given proposal, evaluate or non-evaluate any proposal, ask for a new proposal, reject proposals and cancel the tender without assuming any liability.
- l) Other considerations
(2) In the tender document:
- a) STK Principles are prepared by the STK group. For the preparation of the STK principles in accordance with the scope and specification of the project in question, all requested information and documents with the drafts of administrative and legal specification drafts foremost, are shared by supply group with the STK group.
- b) in the cost-effectivity formula, the weight of the STK score is determined in conjunction with the STK group.
- c) Supply contract draft contains the STK terms prepared by the STK group and correlates the STK contract with the supply contract.
(3) Minimum STK obligation demanded with the STK Principles is determined as a certain percentage rate of the quote. Within the scope:
- a) STK obligation can be demanded in a single or more than one category. Category-A, Category-B AND Category-C minimum obligation rates and sub-industry business share and KOBI business share minimum obligation rates can be determined separately within STK principles.
- b) Activities mandatory to be conducted domestically can be determined as part of Category-A obligation.
(4) Documents prepared by the supply group and STK group are evaluated in conjunction to establish coordination and the tender document is then finalized.
Releasing the tender document
ARTICLE 8 – (1) In the tender approval document, which is prepared by the supply group and submitted for the approval of the tendering official, the tender document and whether there will be a tender notice is stated at the very least. Considerations regarding the tender notice is determined by the management.
(2) After the tender document is given to the applicants, in the case that financial, technical errors or shortcomings are determined by the supply group or the STK group, or in the case that such errors or shortcomings are indicated by the applicants, the tender document can be amended with addendums with the approval of the tendering official. An addendum is an obligatory part of the tender document and all changes are informed to the applicants.
(3) In the case that an addendum is prepared, bidders who had already submitted their proposals before this addendum are provided with the chance to re-submit the sections that were affected by the addendum.
(4) Regarding certain respects that require an explanation in the tender document, applicants can demand explanations. With the approval of the tendering official, explanations made by the supply group are an obligatory part of the tender document and are informed to the applicants.
(5) In the case that there are changes and/or explanations that affect the STK principles, supply group coordinates said changes and/or explanations with the STK group.
ARTICLE 9 – (1) After all proposals are received, a supply tender commission is formed within the management containing a president and official and reserve members concerned with the project in question and/or persons who possess technical competence and an STK commission is formed within the Ministry containing a president and official and reserve members. Commissions have odd number of members with the minimum number is three. At least one member of the supply tender commission is also a member of the STK commission.
(2) The formation of the supply tender commission, the numbers and qualifications of its members and Procedures and Principles of its operation is determined by the management, the formation of the STK commission, the numbers and qualifications of its members and Procedures and Principles of its operation is determined by the Ministry.
(3) In cases where Management or the Ministry does not have enough number of personnel or with required qualifications, members can be accepted from other managements. If it becomes a necessity, with the approval of the management or the Ministry advisory personnel can be designated in commissions without the right to vote or score.
(4) Each commission works within the scope of their task. In cases where presidents of the commission see fit, commissions can share information with signed proceedings.
Preparations and submission of proposals
ARTICLE 10 – (1) The proposal of the bidder consists of a administrative proposal, a technical proposal and an STK proposal.
(2) The administrative proposal of the bidder consists of the tender letter, quote, tender guarantee and other documents as indicated in the tender document. This proposal is put in an envelope and the envelope states that it is the managerial proposal on the outside. The quote, as part of the administrative proposal, is put in another envelope, the price, as part of the proposal, is only stated in this envelope.
(3) The technical proposal of the bidder consists of all documents required by the tender document for technical evaluation. This proposal is put in another envelope and the envelope states that it is the technical proposal on the outside.
(4) The STK proposal of the bidder consists of all documents required by the tender document for the STK evaluation. This proposal is put in another envelope and the envelope states that it is the STK proposal on the outside.
(5) Sealed envelopes containing the administrative, technical and STK proposals are put together under a separate cover, which states the name and surname or the trade name of the bidder, a correspondence address, the relevant tender which the proposal is for and the correspondence address of the management and submitted to the management until the hour stated in the tender document. Proposals given after this hour are rejected and returned without opening.
(6) Principles regarding the preparation and submission of the proposals are determined by the management and stated in the tender document.
Preparation of the proposal evaluation plans
ARTICLE 11 – (1) After all proposals are submitted but before they are opened, a supply proposal evaluation plan is prepared by the supply tender commission, and an STK proposal evaluation plan is prepared by the STK commission, by evaluating the tender process file. Supply proposal evaluation plan is submitted for the approval of the tendering official, and the STK proposal evaluation plan is submitted for the approval of the top director of the Ministry or the appointed executive.
(2) proposal evaluation plans are concerned with the opening of the proposals, their evaluation and scoring procedures and the period of evaluation.
(3) After the proposal evaluation plans are approved and before the proposals are opened, technical and administrative criteria trees are prepared by the supply tender commission, and the STK criteria tree is prepared by the STK commission. Technical and administrative criteria trees are submitted for the approval of the tendering official, STK criteria tree is submitted for the approval of the top director of the Ministry or the appointed executive.
(4) Technical and administrative criteria trees are prepared in accordance with the scope of the project in question, with administrative and financial considerations such as technical performance, work plan and work experience. The STK criteria tree is prepared according to considerations stated in the STK principles.
(5) A provision not stated in the tender document cannot be included in the criteria trees. Criteria trees cannot be changed after the proposals are opened.
Opening of the tender file
ARTICLE 12 – (1) The date on which the tender file is to be opened is determined by the president of the supply tender commission and announced to the bidders and the documents are opened in the presence of the supply tender commission president, at least two members of the supply tender commission, president of the STK commission and the bidders.
(2) Following the procedure stated in the first paragraph, files are checked with signed proceedings to determine if any of them lack the envelopes containing the technical, administrative and STK proposals and in the case that an envelope is missing in a file, the proposal is excluded from evaluation.
(3) The meeting is adjourned for the proposals to be evaluated by the relevant commissions without the proposals are being opened. Sealed envelopes concerning the administrative and legal proposals are retained by the president of the supply tender commission, envelopes concerning the STK proposals are handed over to the president of the STK commission with signed proceedings.
Opening and evaluation of the proposals
ARTICLE 13 – (1) Sealed envelopes concerning administrative and legal proposals are opened by the supply tender commission, sealed envelopes concerning STK proposals are opened by the STK commission. Administrative and legal proposals are evaluated by the supply tender commission, STK proposals are evaluated by the STK commission in compliance with the relevant proposal evaluation plan and criteria tree.
(2) In evaluating, relevant commissions foremost determine missing and improper documents and request their completion or correction from the bidders in writing within the prescribed timeframe by the relevant commission. After the prescribed timeframe, relevant commissions evaluate the proposals with respect to whether they meet the mandatory criteria.
(3) For the proposals determined not to meet the mandatory criteria, relevant commissions request from the bidders that they meet them in writing. In the case that the bidder does not meet the criteria, the proposal is excluded from evaluation.
(4) Relevant commissions may also request from the bidders to explain ambiguous aspects concerning the proposal and/or meet non-mandatory criteria in writing within a prescribed timeframe determined by the relevant commission.
(5) Explanations, statements and commitments of the bidders are not included into evaluation unless they are submitted in writing to the management. These explanations, statements and commitments are considered integral to the proposals of the bidders.
(6) Commissions, should they deem it necessary, can verify the documents in the proposals with the relevant authorities. Such requests from the commissions made for this purpose are urgently met by the relevant authorities. Commissions can conduct site surveys during the proposal evaluation process if it becomes a necessity.
(7) Administrative and legal proposals are scored by the supply tender commission, STK proposals are scored by the STK commission in accordance with the relevant proposal evaluation plan and criteria tree. Weighted scores are calculated by multiplying the weight of each criteria determined in the relevant criteria tree and the scores given to the proposal for each criterion. Weighted scores are added and technical and administrative scores concerning the proposal are calculated by the supply tender commission, and STK score is calculated by the STK commission. President of the STK commission delivers STK scores to the president of the supply tender commission with signed proceedings.
(8) It is principle not to open the quote envelope before technical, administrative and STK scorings are complete. However, if required, the quote envelope can be opened with the approval of the tendering official before technical scorings are completed.
(9) In cases where the quoted price contains text or figure discrepancies or an arithmetical mistake in its multiplications or additions, correction of such mistakes for discrepancies are requested in writing to be corrected with a determined timeframe, on the condition that it will not increase the quoted price. If the bidder does not make the correction within the given timeframe, the relevant proposal is excluded from evaluation.
(10) Following the completion of the scoring and opening of the quote envelopes, the cost-effectivity score of the proposals are determined according to the formula stated in Addendum-2. Proposals are sorted by their cost-effectivity scores.
(11) Before the proposal evaluations are completed, bidders may be asked to provide their best and final proposals, the scope of which is determined by the supply tender commission. If best and final proposals are submitted, scores are calculated again within the scope of the principles stated in this article.
(12) Supply tender commission prepares the proposal evaluation report. All evaluations, signed proceedings, plans, criteria, weights, cores, questions-answers, results and cost-effectivity sorting are indicated in the proposal evaluation report. STK section of the proposal evaluation report is prepared by the STK commission and handed over to the president of the supply tender commission with signed proceedings.
(13) President of the supply tender commission presents the proposal evaluation report to the tendering official. Tendering official evaluates the proposal evaluation report, and:
- a) May decide to start the contract negotiations with the bidders he/she picked respectively according to principles stated in the first and second paragraphs of the 4th article. This situation is disclosed to the bidders. Tender guarantees of the picked bidder or bidders are maintained until the STK contracts are signed, tender guarantees of the remaining bidders are returned.
- b) May cancel the tender for reasons such as if the proposals are ill-suited for the innovation, indigenization and/or technology transferring aim of the tender, or if the cost is found too high. This situation is disclosed to the bidders and tender guarantees are returned.
(14) Management does not enter any obligations if the proposals are excluded from evaluation and the tender is cancelled.
(15) If it is understood that proposal evaluation cannot be completed within the validity periods of the proposals, bidders are asked in writing to extend the validity period of their proposal along with their tender guarantee period.
(16) After the proposals are opened, bidders cannot submit an offer to change a portion of their proposal or change their proposal completely without being demanded by the management. In the case that they do, such proposals are not accepted and returned without being opened.
(17) All correspondences required by the proposal evaluation process are conducted between the management and the relevant bidder.
Signing of the supply and STK contracts
ARTICLE 14– (1) Contract negotiations start with the sole bidder if there is a single bidder, determined pursuant to (a) clause of the thirteenth paragraph of the 13th article, or the first bidder if there are more than one bidders. Supply contract negotiations are conducted by the supply tender commission, STK contract negotiations are conducted by the STK commission. The quote of the bidder cannot increase during contract negotiations.
(2) In order to ensure that the STK contract is prepared in unison with the supply contract, information and documents requested by the STK commission, particularly price, calendar, technical specifications, are shared by supply tender commission with the STK commission.
(3) In the case that an agreement is reached because of contract negotiations, signing of the supply contract is submitted for the approval of the tendering official, and signing of the STK contract is submitted for the approval of the top director of the Ministry or the appointed executive.
(4) Following the approval of the tendering official and acceptance of the performance security, the supply contract is signed between the management and bidder; following the approval of the top director of the Ministry or the appointed executive and acceptance of the STK security, the STK contract is signed between the bidder and the Ministry on the same date. The STK contract is an addendum to the supply contract.
(5) After contracts are signed, the tender guarantees of the bidders are returned.
(6) If bidder refrains from establishing a contract that contains provisions promised in the proposal and therefore a contract cannot be signed, or the bidder does not provide the performance security, the tender guarantee of the bidder is recorded as revenue.
(7) If an agreement cannot be reached as a result of these contract negotiations, the contract negotiations continue respectively, pursuant to placements defined in the (a) clause of the thirteenth paragraph of the 13th article. In the contract negotiations are to be made with these bidders, provisions of this article are applied.
Industrial and Technological Contribution
Industrial and Technological Contribution categories
ARTICLE 15– (1) Contractor carries out the STK obligations under the scope of the following STK categories.
- a) Category A-Domestic Contribution: conducted activities between domestic companies, institutions and organizations within the scope of supply contracts.
- b) Category B-Technological Cooperation: R&D, design, manufacture, software development, testing and other operations/activities and supporting activities for academic studies such as infrastructure, equipment supply, software supply, services, information, documents, training, intellectual property rights, certifications etc. that will be conducted by domestic companies, institutions and organizations other than the contractor, its associates and conglomerates that it is a part of, in the fields determined by the Ministry for the purposes of industrialization, indigenization and commercialization and apart from those that will be conducted as part of Category-A activities.
- c) Category C- Export: Export of goods, services or construction works as supplied within the scope of the supply contract, or export of goods, services or construction works by the Ministry in the designated fields.
Industrial and Technological Contribution Policies
ARTICLE 16– (1) Contractor cannot cause any financial burdens to the management or the Ministry when performing its STK obligations.
(2) Unconditional acceptance of the STK principles and ensuring the STK obligation rates determined for each category within the STK principles is mandatory.
(3) Contractor, as part of its STK contract, submits an STK guarantee letter to the Ministry that is valid for at least one year starting from the completion of its STK obligation term and in the rate of 6% of its STK obligation.
(4) Before making changes in the supply contract regarding scopes, prices, calendar, technical specifications, distribution of work, work statements, goods/devices/systems that will be supplied domestically and their supplier information, engineering and contract changes, which can affect the STK contract, the Ministry must be consulted first.
(5) All changes in the supply contract which will affect the STK contract are transmitted to the Ministry within 10 business days of their accrual.
(6) If the price of the supply contract is raised or lowered for any reasons including surplus charges, the total STK obligation value of the contractor is also proportionally raised or lowered. The Ministry can make changes in the distribution of the STK obligations in the STK categories pursuant to reasons of increase or decrease in the supply contract value.
(7) With the exception of the provisions of the sixth paragraph, obligations cannot be transferred between STK categories indicated in the STK contract.
(8) In the case that supply contract is completely annulled, the STK obligation of the contractor is also annulled. If the supply contract is partially annulled, a proportionate part of the contractor’s STK obligation is deemed invalid. In the case of annulment, penalty situations for breach of contract that will be recorded as revenue in the STK guarantee letter are rearranged.
(9) Preliminary approvals, STK reports, credit facilities, temporary credit facilities, preliminary credit facilities, additional STK credit transfers, procedures and principles concerning contractual penalties and the STK contract, STK plan, STK credit facility coefficient table and other similar considerations are determined by the Ministry.
Industrial and Technological Contribution plan
ARTICLE 17– (1) Contractor conducts its STK obligations within Category-A in accordance with the STK plan, which is an addendum to the STK contract.
(2) In the STK plan, Category-A has activities mandatory to be conducted domestically.
ARTICLE 18– (1) For the Category-A activities that will be conducted as stated in the STK plan, no preliminary approvals are necessary. However, if there are changes in the STK plan for these activities, a preliminary approval is obtained from the Ministry.
(2) Before undertaking any process to conduct Category-B and Category-C activities, and before signing any contracts, agreements, purchase orders and other documents, of if there are changes concerning the activity, a preliminary approval is obtained for each STK activity.
(3) Preliminary approvals can be limited by the Ministry in considerations such as terms, price, company, country, product and service if deemed necessary.
ARTICLE 19– (1) Credit facilities for STK activities are conducted following the submittal of the STK report which state their accruement situation to the Ministry and its evaluation.
(2) Credit facility is conducted in conditions stated in the preliminary approval and by using the coefficient endorsed by the Ministry stated in the STK credit facility coefficient table.
(3) In conducting STK obligations, administrative costs of the contractor, such as travel, accommodation, food and postal services that are not directly related with their obligations, are not facilitated with credit.
(4) It is essential for the coefficient to be applied as 1 for credit facilities for STK activities within the scope of Category-A. However, if STK activities within the scope of Category-A are conducted by KOBI’s and/or if they are related to preferential sectors and fields determined by the Ministry, appropriate coefficients from the STK credit facility coefficient table can be used.
(5) STK obligations within the scope of Category-A and Category-C activities are facilitated with credit via YIKD as its base. Domestically supplied but foreign-originated raw materials, materials, products, services, labor etc. cannot be considered as YIKD. Verification of YIKD amounts of accrued STK activities are conducted by the Ministry. All information and documents required to verify YIKD amounts are submitted to the Ministry. Ministry, if deemed necessary, can conduct all sorts of audits to verify YIKD amounts, the costs of such audits are undertaken by the contractor.
(6) In facilitating credit for STK activities within the scope of Category-B, just value and/or precedent value is taken as base for acquired technologies, investments and other activities stated in the definition of Category-B. This value and facilitated credit amount is determined by the Ministry.
(7) The Ministry may require export/order commitments for the products/services emergent due to use of the technology and/or investments won by a domestic company, institution and organization within the scope of Category-B. Exports realized within this scope is additionally credited within the scope of Category-C.
(8) Technological earnings and/or investments accrued within the scope of Category-B cannot be transferred to third parties without the approval of the Ministry, their usage rights cannot be withdrawn, retracted or retired in any way. In the contrary case, the Category-B credit in question is cancelled.
(9) If STK activity is credited twice or an excess credit was facilitated due to a financial mistake, the excess credit may be cancelled by the end of the five-year term following the end of the STK obligation term. This situation is notified to the contractor and if a deficiency in obligation emerges regarding the cancelled part, an appropriate timeframe is allotted for the completion of the deficient obligation.
Temporary credit facilitation
ARTICLE 20– (1) STK activities planned by the contractor regarding its STK obligation in a program term may be temporarily facilitated with credit according to credit facility principles specified by the Ministry.
(2) Delay penalties which may arise regarding the corresponding facilitated temporary credit amount of the STK obligation of the contractor in the relevant category are suspended for the duration of the temporary credit facilitation.
(3) If the temporarily credited STK activity is conducted within the validity period determined by the Ministry, the temporarily credited amount is changed into a permanent credit by the Ministry.
(4) If the temporarily credited STK activity cannot be conducted or partially conducted within the validity period determined by the Ministry, the section of the suspended delay penalty that corresponds to the non-conducted portion is collected from the contractor with late fees.
(5) Transfers specified in the 21st article are not enforced for temporary credits.
Excess credit transfers
ARTICLE 21– (1) STK credits procured by the contractor which excess its obligation within an STK category in the scope of the same STK contract can be used for their obligations in the following terms at the end of each term, within the same STK contract and in the same STK category, should the contractor demands it and the Ministry deems suitable.
(2) Category-B and Category-C STK credits procured in the scope of an STK contract by the contractor which excess its obligations in the Category-B and Category-C STK categories, can be used for their obligations in another STK category that the contractor is a party to at the end of each term, for its obligations within the same STK category, should the contractor demands it and the Ministry deems suitable.
Preliminary credit facility
ARTICLE 22– (1) For a company/institution and organization that has no obligations at present and which will implement STK activities within the scopes of Category-B and/or Category-C with a preliminary approval, Ministry facilitates preliminary credits to be counted for their possible STK obligations in the future.
(2) For any excess STK activities conducted in the Category-B and/or Category-C within the scope of the STK contract, at the end of their STK obligation term, Ministry facilitates preliminary credits to be counted for their possible STK obligations in the future.
(3) A preliminary credit facilitation given for an STK Category cannot be used for the obligations in another STK category.
ARTICLE 23– (1) If Category-A, Category-B, Category-C, sub-industry business share and KOBI business share obligations are not fulfilled with the specified timeframe and conditions, a penalty is imposed at the rate of 6% of the non-realized STK obligation.
(2) If the contractor does not pay the penalty within the conditions specified in the STK contract, this amount is collected from the STK guarantee letter. Contractor completes the amount of the STK guarantee letter to the amount specified in the STK contract in the timeframe specified in the STK contract.
(3) Imposed penalties do not release the contractor from carrying out its STK obligations. Following the collection of the accrued penalty, unrealized STK obligations of the contractor are escalated and added to its obligations in the same category for the following term in the terms specified in the STK contract.
(4) At the end of the STK obligation term, following the collection of an accrued penalty, if there are remaining STK obligations to be carried out;
- a) These obligations are added to its obligations as part of other STK contracts that the contract is a part of in the categories and means the Ministry deems suitable.
- b) In the case that the contractor is not a party to another STK contract, the Ministry and the contractor start to engage in negotiations to reach an agreement to carry out its non-realized obligations. If the sides cannot reach an agreement within 60 days or in the case that the STK obligations are not realized despite an agreement, a penalty is imposed at the rate of 6% of the non-realized STK obligation.
Monitoring and supervision authority
ARTICLE 24– (1) Ministry has the authority to demand all kinds of information and documents it deems necessary, conduct on-site inspections or have another party conduct on-site inspections to monitor and realize STK activities.
Various and Final Provisions
ARTICLE 25– (1) Complaints can be made at www.alomaliye.com within 5 days after a tender result is notified to the bidders regarding allegations of illegal transaction or actions concerning the transactions and actions in the tender process. Principles concerning complaints are determined by management.
(2) A complaint cannot be made against the Public Procurement Authority against the transactions within the scope of this Procedures and Principles.
Penalty and ban from tenders
The Act numbered 4734 and its relevant legislation provisions are performed regarding penalty and ban from tenders concerning the application of this Procedures and Principles.
ARTICLE 27– (1) Ministry and management can establish its organizational structures, take regulatory actions, prepare documents concerning tenders, evaluation of proposals and contracts according to provisions specified in this Procedures and Principles.
(2) In consideration not specified in this Procedures and Principles, in regulatory actions taken in this scope or in the tender document, the Act numbered 4734 and its relevant legislation provisions can be applied.
(3) To establish unity in execution, Ministry has the right to make corrections and eliminate drawbacks in the case that it is not against this Procedures and Principles.
ARTICLE 28 – (1) Regarding situations that require coordination within the scope of this Procedures and Principles, duties and responsibilities are determined with a signed protocol between the management and the Ministry.
ARTICLE 29 – (1) Legislation Regarding the Execution of Industrial Cooperation Projects published in the Official Gazette, dated 2/17/2018 and numbered 30335, is annulled.
Temporary ARTICLE 1 – (1) For the tenders notified before this Procedures and Principles came into effect;
- a) those that were notified before 2/17/2018 are executed according to the provisions of the Legislation Regarding the Procedures and Principles of the Industrial Cooperation Program concerning Purchase of Good and Services to be made according to now-defunct (u) clause of the first paragraph of the 3rd article of the Public Procurement Act numbered 4734.
- b) those that were notified on 2/17/2018 and later dates are executed according to the provisions of this Procedures and Principles and now-defunct Legislation Regarding the Execution of Industrial Cooperation Projects.
ARTICLE 30– (1) This Procedures and Principles is enforced on its date of issue. Addendum-1
ARTICLE 31- (1) President executes the provisions specified in this Procedures and Principles.
Criteria Tree Draft
|Technical Criteria Tree|
|1.||Speed of the proposed product|
|2.||Material of the proposed product|
|3||Resolution of the proposed product|
|Administrative Criteria Tree|
|1.||Previous productions/submittals which the bidder previously undertaken regarding the job subjecting to tender|
|2.||Sales and exports of bidder|
|3.||Number of personnel and structure of the bidder|
|STK Criteria Tree|
|1.||Category-A commitment rate|
|2.||Category-B commitment rate|
|3.||KOBI business share commitment rate|
Criterion Type: Obligatory (Z), with Obligatory Score (ZP), with Score (P), Information (B)
K : Cost-Effectivity
P : Quote
T : Technical Score
İ : Administrative Score
S : Industrial and Technological Contribution Score
a : T Weight of the Score
b : İ Weight of the Score
c : S Weight of the Score
weights a, b and c are determined by taking into consideration the project’s characteristic and priorities in a way that they are going to be between 0 and 1 and their sum is going to be 1.
scores T, İ and S are calculated in a scoring system that is on the same base and the same number interval.