REPUBLIC OF LITHUANIA                                       
                                                                                
                             LAW                                                
                                                                                
                             ON                                                 
                                                                                
                      PUBLIC PROCUREMENT                                        
                                                                                
                                                                                
                          Chapter I                                             
                                                                                
                     GENERAL PROVISIONS                                         
                                                                                
  Article 1. The Objective of this Law                                          
  1.   This  Law  shall  regulate  the  procedure  for   the                    
procuring of goods, works and services with the funds of the                    
State  Budget, municipal budgets, the budget  of  the  State                    
Social  Insurance  Fund  and other resources  of  the  state                    
funds, funds received in the name of government institutions                    
as charity or any other support, when the donor thereof does                    
not  specify the purpose for which it should be applied,  as                    
well  as foreign loans received in the name of the State  or                    
guaranteed by the State, if the agreements concerning  their                    
utilisation  does not provide for any other conditions,  out                    
of  the funds of enterprises, institutions and organisations                    
financed  out  of the State or municipal budgets  and  state                    
funds,  received from their business activities or from  the                    
appropriation or conveyance of their assets.                                    
  2.   The  procedure  for  public  procurement  established                    
hereby shall apply to public procurement the value of  which                    
exceeds 25 000 litas. Public procurement the value of  which                    
is  less than 25 000 litas shall be carried out according to                    
the  common  commercial practice, by concluding a  purchase-                    
sale contract with the supplier (contractor) whose price and                    
conditions are most acceptable.                                                 
  3. The requirements of this Law shall not apply to:                           
  1)  procurement which is carried out for the  purposes  of                    
security  and  defence,  if they are associated  with  state                    
secrets;                                                                        
  2)  where goods or services are being procured pursuant to                    
the  provisions  of  the Law on Social  Integration  of  the                    
Disabled.                                                                       
  4.  The Government may, for the reasons that are important                    
to  the  State from economic or social points of view,  pass                    
the decision that while carrying out procurements of certain                    
goods,  works,  or services preference should  be  given  to                    
goods,  works and services that are being produced, executed                    
or  provided  by  enterprises which are  registered  in  the                    
Republic  of  Lithuania. Such decisions must  be  passed  in                    
compliance with the obligations established by international                    
agreements of the Republic of Lithuania.                                        
                                                                                
  Article 2. Definitions                                                        
  As used in this Law:                                                          
  1.   Public  Procurement  (hereinafter  referred   to   as                    
procurement ) means procurement of goods, works or  services                    
when they are paid for on demand or by installments with the                    
funds  specified in paragraph 1 of Article  1,  as  well  as                    
lease of goods carried out with such funds.                                     
  2.  The  Procuring Organisation means public  authorities,                    
an  enterprise,  institution or  organisation  carrying  out                    
procurement  with  the funds specified  in  paragraph  1  of                    
Article 1.                                                                      
  3.  Goods means real property, raw materials, manufactured                    
articles, equipment and other articles of any form, as  well                    
as services relating to the supply of goods, if the value of                    
these  services  does  not exceed the  value  of  the  goods                    
themselves.                                                                     
  4.   Works   means   any   works   associated   with   the                    
construction,  reconstruction, removal, demolition,  repairs                    
or  renovation  of  buildings,  structures  and  facilities,                    
including construction services relative thereto,  if  their                    
value does not exceed the value of the construction itself.                     
  5.   Services  means  any  object  of  purchase  with  the                    
exception of goods and works.                                                   
  6.  Supplier (contractor) means potential or actual  party                    
to   the   procurement  contract  concluded  with  procuring                    
organisation.                                                                   
  7.  Procurement  documents  means  the  documents  of  the                    
procuring    organisation   presented   to   the   suppliers                    
(contractors): invitation to participate in prequalification                    
procedures, tender documents , invitation to tender, request                    
for  quotations for goods, works or services,  explanations,                    
amendments of and supplements to these documents.                               
  8.  Procurement  Contract means purchase,  sale  contract,                    
contract  agreement  or  lease,  awarded  by  the  procuring                    
organisation  to  the supplier (contractor)  by  procurement                    
procedures prescribed by this Law.                                              
                                                                                
  Article 3. International Obligations of the State,                            
Relating to Procurement                                                         
  If  international agreements of the Republic of  Lithuania                    
provide   otherwise  than  this  Law,  the   provisions   of                    
international agreements shall apply.                                           
                                                                                
  Article 4. Subordinate Legislation                                            
  Subordinate legislation relating to the implementation  of                    
this  Law and compliance with its provisions shall be issued                    
by  the  Government of the Republic of Lithuania  or  Public                    
Procurement  Agency under the Government of the Republic  of                    
Lithuania  (hereinafter referred to  as  Public  Procurement                    
Agency).                                                                        
                                                                                
  Article 5. Qualification of Suppliers (Contractors)                           
  1.  The procuring organisation must ascertain whether  the                    
supplier (contractor) is competent, reliable and capable  to                    
fulfill procurement conditions. For this purpose, at certain                    
procurement process stages it shall have the right to demand                    
that  the  supplier  (contractor)  submit  or  confirm   the                    
documents or other information presented earlier, evidencing                    
its   legal   status,  financial  position,  technical   and                    
management competence, the experience in performing  similar                    
procurement  contract, its supply with labour resources  and                    
other data evidencing its qualification.                                        
  2.  The  procuring organisation may verify in advance  the                    
qualification of suppliers (contractors). In  this  case  it                    
shall  propose that suppliers (contractors) submit the  data                    
certifying the qualification prior to sending their  tenders                    
or offers.                                                                      
  3.    Qualification   requirements   of   the    procuring                    
organisation,   the   criteria  and  procedure   for   their                    
evaluation  shall  be  laid  down  in  the  prequalification                    
documents of suppliers (contractors) or in the documents  of                    
procurement  tenders  or the documents  of  the  procurement                    
carried out in any other manner.                                                
  4.  The same requirements must be applied to all suppliers                    
(contractors), they may not infringe the rights of suppliers                    
(contractors)  to protect their intellectual property  or  a                    
commercial secret.                                                              
  5.  The  procuring organisation may not permit a  supplier                    
(contractor) to participate in procurement procedures, if it                    
finds   out   that  the  data  submitted  by  the   supplier                    
(contractor) pertaining to its qualification are  incorrect.                    
It  may also disqualify a supplier (contractor) if the  data                    
concerning  its  qualification as presented  by  it  are  in                    
general inaccurate or incomplete. However, if at the request                    
of  the  procuring  organisation, the supplier  (contractor)                    
eliminates  the  shortcomings without  delay,  it  shall  be                    
permitted   to   further  participate  in  the   procurement                    
procedures.                                                                     
  6.  Information  relating  to the suppliers  (contractors)                    
position  shall be evaluated in accordance with the criteria                    
and  procedures laid down in the prequalification  documents                    
of   suppliers   (contractors),   procurement   tenders   or                    
procurement   carried  out  by  any  other  procedure.   The                    
procuring organisation shall pass a decision concerning  the                    
qualifications  of  each  supplier  (contractor)  and  shall                    
inform  in  writing each of them about the results  of  this                    
verification.  The  right  to  further  participate  in  the                    
procurement  procedures  shall  be  given  only   to   those                    
suppliers  (contractors)  whose qualifications  satisfy  the                    
requirements applicable by the procuring organisation.                          
                                                                                
  Article 6. The Participation of Contractors (Suppliers)                       
  1.  All  citizens of the Republic of Lithuania and foreign                    
suppliers   (contractors)  may  participate  in  procurement                    
procedures,  with the exception of cases when the  procuring                    
organisation   may  limit  the  participation   of   foreign                    
countries ( or some of them) pursuant to this or other  laws                    
of the Republic of Lithuania.                                                   
  2.  The  procuring organisation shall have  the  right  to                    
carry  out procurements only from enterprises registered  in                    
the  Republic  of  Lithuania - the manufacturers  of  goods,                    
performers of works, and service providers, if the value  of                    
goods  and  services does not exceed 150 000 litas  and  the                    
value  of  works  -  500 000 litas,  as  well  as  in  cases                    
specified in paragraph 4 of Article 1.                                          
  3.  The procuring organisation, after having announced  in                    
its  first invitation that suppliers (contractors) from  all                    
countries may participate in the procurement procedures, may                    
not  change  this clause later. If pursuant to  paragraph  1                    
hereof  the participation of certain suppliers (contractors)                    
is  limited,  this  must be indicated in the  invitation  to                    
participate in the procurement procedures.                                      
                                                                                
  Article 7. Communication of Notices                                           
  1.   Notices  of  the  procuring  organisation   and   the                    
suppliers   (contractors)   while   participating   in   the                    
procedures  regulated by this Law must  be  communicated  in                    
such a manner so that their contents be recorded.                               
  2.   The  procuring  organisation  must  ensure  that   in                    
procurement procedures documents, decisions or other notices                    
be  communicated  without discrimination  to  the  suppliers                    
(contractors).                                                                  
  Article 8. The Legalisation of Documents Submitted by                         
Suppliers (Contractors)                                                         
  The  procuring  organisation  shall  have  the  right   to                    
request   that   foreign   suppliers  (contractors)   submit                    
legalized   documents  certifying  the   information   given                    
relating  to  their qualifications. The documents  shall  be                    
legalized  in  accordance with the procedure established  by                    
the laws and Government decrees.                                                
                                                                                
  Article 9. Report on Procurement Procedures                                   
  1.  The  procuring  organisation  shall,  not  later  than                    
within   10   days   from  the  completion  of   procurement                    
procedures, draw up a report on procurement procedures.  The                    
report must contain the following information:                                  
  1) short description of the object of procurement;                            
  2)  names  and  addresses of suppliers  (contractors)  who                    
have submitted tenders, offers or prices;                                       
  3)   information   relating  to  the   qualifications   of                    
suppliers  (contractors) which participated  in  procurement                    
procedures;                                                                     
  4)  the  price  of each tender or offer or  the  essential                    
conditions for its determination;                                               
  5)  description  of  the  evaluation  and  comparisons  of                    
tenders or offers;                                                              
  6)  the  reasons  of  rejection of tenders  or  offers  if                    
pursuant  to  Article 10 of this Law all tenders  or  offers                    
have been rejected;                                                             
  7)   the   grounds  for  applying  other  than   tendering                    
procedure for procurement;                                                      
  8)  reasons of rejection, if tenders or offers  have  been                    
rejected on the basis of criteria referred to in Article  12                    
of this Law.                                                                    
  2.  The information referred to in subparagraphs 1  and  2                    
of  paragraph  1 hereof after the acceptance  of  a  tender,                    
offer  or  a  price or after the completion  of  procurement                    
procedures  according  to the results of  which  procurement                    
contracts have not been awarded, shall be provided to anyone                    
who requests such information.                                                  
  3.  The  information referred to in subparagraphs  3-7  of                    
paragraph  1 hereof , after the tender, offer or  price  has                    
been  accepted,  or  after  the  completion  of  procurement                    
procedures  on the basis of the results of which procurement                    
contracts have been not awarded, shall be furnished  to  the                    
suppliers  (contractors) who participated in the procurement                    
procedures and who request such information.                                    
  4.  The  procuring  organisation shall have  no  right  to                    
release information relating to procurement procedures where                    
the  release of information would impede law enforcement  or                    
otherwise  be  contrary to the interests of  the  State,  or                    
would  prejudice the legitimate commercial interests of  the                    
contracting parties or might prejudice fair competition.                        
  5.  Procurement documents, their amendments,  explanations                    
and  supporting  documents, tenders and offers  as  well  as                    
other documents relating to the procurement procedures shall                    
be kept for 5 years.                                                            
                                                                                
  Article 10. Rejection of All Tenders and Offers                               
  1.  If  it  is provided for in the procurement  documents,                    
the  procuring organisation may, at any moment prior to  the                    
acceptance, reject all tenders and offers. In such case  the                    
procuring organisation shall inform any tenderer or supplier                    
(contractor) who has submitted offers and who so request  of                    
the reasons of rejection.                                                       
  2.   In  such  case  the  procuring  organisation,  having                    
satisfied the requirements referred to in paragraph 1 hereof                    
shall not be liable to the suppliers (contractors) who  have                    
submitted tenders, offers or prices.                                            
  3.  Notices stating that all tenders and offers have  been                    
rejected  shall  be sent to all suppliers (contractors)  who                    
have  submitted tenders or offers not later  than  within  7                    
days from the completion of tenders.                                            
                                                                                
  Article 11. Coming into Effect of the Procurement                             
Contract                                                                        
  1.  The  procurement contract shall come into effect  from                    
the moment of its conclusion.                                                   
  2.  Where tendering procedures are applied, the moment  of                    
the   conclusion  of  the  procurement  contract  shall   be                    
established by Article 30 of this Law.                                          
  3.   Where   other  procurement  procedures  are  applied,                    
procurement contract shall be deemed concluded after  it  is                    
signed   or  signed  and  confirmed.  When  the  procurement                    
contract  must  be  signed  or  signed  and  confirmed,  the                    
procuring  organisation must indicate  this  in  its  notice                    
inviting to submit offers or in its request for quotations.                     
  4.  If,  pursuant to laws, the contract must be  certified                    
by a notary, it shall be deemed concluded from the moment of                    
its  notarization. The provision shall also apply  to  those                    
contracts   which   are  concluded  by  applying   tendering                    
procedures.                                                                     
                                                                                
  Article 12. Prohibited Actions of Suppliers (Contractors)                     
  The  procuring  organisation, after the  approval  by  the                    
Public Procurement Agency, shall reject a tender , offer  or                    
offered  price, if it has been established that the supplier                    
(contractor) has directly or indirectly offered or agreed to                    
repay an employee of the procuring organisation or tried  in                    
any  other  way  to exert influence so that more  favourable                    
procurement  procedures  be applied  in  his  respect.  Such                    
rejection of tender, offer or offered price and the  reasons                    
of  rejection shall be recorded in the report on procurement                    
procedures,   and   the  supplier  (contractor)   shall   be                    
immediately informed of this.                                                   
                                                                                
  Article 13. Prohibition to Split up Procurements                              
  The  procuring organisation shall be prohibited  to  split                    
up  the  amount  of  the procurement with the  intention  of                    
avoiding   the  application  of  the  procurement  procedure                    
established by this Law.                                                        
                                                                                
  Article 14. Description of Goods, Works, or Services                          
  1.  Technical  or  qualitative characteristics  of  goods,                    
works or services indicated in the procuring documents,  the                    
requirements   applicable  to  their   packaging,   marking,                    
labeling,  testing as well as terminology and  symbols  must                    
not  prevent any domestic or foreign suppliers (contractors)                    
from the participation in the procurement procedures.                           
  The  descriptions  of  goods, works or  services  may  not                    
specify the trademarks, patents, models or origin of  goods,                    
performers of works or providers of services.                                   
  2.    In  the  descriptions of goods, works  or  services,                    
    including procurement documents, specifications, schemes,                   
    drawings  and  sketches, international trade  standards,                    
    marking and terminology shall be applied.                                   
                                                                                
  Article 15. The Language of Documents                                         
  The  procuring  organisation  shall  draw  up  procurement                    
documents  in  the  state language. When  foreign  suppliers                    
(contractors)  are  invited  to participate  in  procurement                    
procedures, these documents shall be drawn up in one of  the                    
languages used in international trade.                                          
                                                                                
                         Chapter II                                             
                                                                                
            MANAGEMENT OF PROCUREMENT ACTIVITIES                                
                                                                                
  Article 16. Management of Procurement                                         
  1.   Public   Procurement  Agency  shall  coordinate   the                    
activities  of  procurement, supervise  whether  procurement                    
activities are carried out in conformity with this  Law  and                    
subordinate legislation.                                                        
  2. The Agency shall fulfill the following main functions:                     
  1)  pursuant  to  this  and other  laws  and  subordinated                    
legislation,  shall prepare standard procurement  documents,                    
directions,   and  other  documents  regulating  procurement                    
activities;                                                                     
  2)   shall   supervise  how  the  laws   and   subordinate                    
legislation  are  being  complied with  while  carrying  out                    
procurement activities;                                                         
  3)  shall, in accordance with the procedure established by                    
the  Government, gather information relating to  procurement                    
activities   and   furnish  it  to  government   (municipal)                    
institutions and the public;                                                    
  4)   shall   analyse   and  evaluate  the   operation   of                    
procurement  system  and prepare recommendations  concerning                    
its improvement;                                                                
  5)   issue   specialised  publication  attached   to   the                    
“Valstybes ţinios” (Official Gazette);                                          
  6)  organise  and  implement  the  training  of  employees                    
engaged in procurement activities;                                              
  7)  provide  consultations and instructions  to  procuring                    
organisations  and  suppliers  (contractors)  on  issues  of                    
procurement;                                                                    
  8)  fulfill the functions provided for in Articles 4,  12,                    
17, 37 and 38.                                                                  
                                                                                
                         Chapter III                                            
                                                                                
        METHODS OF PROCUREMENT AND THEIR APPLICATION                            
                                                                                
  Article 17. Methods of Procurement                                            
  Public  procurement shall be carried out by  applying  the                    
following methods;                                                              
  1) open tenders;                                                              
  2) closed tenders;                                                            
  3) two-stage tenders;                                                         
  4) negotiated tenders;                                                        
  5) request- for- quotations;                                                  
  6) single-source procurement.                                                 
  Article 18. The Procedure for the Application of                              
Procurement Methods                                                             
  1.  Open  tenders shall be applied for the procurement  of                    
goods  and services the value of which exceeds 150 000 litas                    
and  for the works the value of which exceeds 500 000 litas.                    
The procurement of such value may be carried out by applying                    
other  methods referred to in paragraphs 2-6 of  Article  17                    
may be carried out only with the approval of the Government.                    
  2.  The  method of procurement of goods and  services  the                    
value  of which does not exceed 150 000 litas and the  works                    
which  does not exceed 500 000 litas shall be chosen by  the                    
procuring  organisation  itself  in  conformity   with   the                    
requirements of this Law.                                                       
                                                                                
                         Chapter IV                                             
                                                                                
                        OPEN TENDERS                                            
                                                                                
  Article 19. Invitation for Tenders or Prequalification                        
Selection                                                                       
  1.  Invitation  for tenders or prequalification  selection                    
where the participation of foreign suppliers (contracts)  is                    
not prohibited , shall be published in the language which is                    
usually   used   in  international  trade,  in   a   popular                    
international newspaper or specialised publication or  in  a                    
specialised international journal, as well as in  the  state                    
language in the specialised publication or in a daily of the                    
Republic of Lithuania.                                                          
  2.  When  the procuring organisation decides that  due  to                    
small  value  of  goods,  works and services  only  domestic                    
suppliers  (contractors)  will be interested  in  submitting                    
tenders,   invitation   for  tenders   or   prequalification                    
selection  shall  be published in the state  language  in  a                    
specialised Lithuanian publication or a daily paper.                            
                                                                                
  Article 20. The Contents of the Invitation for Tenders                        
and Prequalification                                                            
         Selection                                                              
  The    notice   of   the   invitation   to   tender    and                    
prequalification  selection  shall  include  the   following                    
information:                                                                    
  1) name and address of the procuring organisation;                            
  2)     the    nature,    quantity,    short    qualitative                    
characteristics of the goods to be supplied, the  place  and                    
time of their delivery;                                                         
  3)  requested  time  limit  for  the  delivery  of  goods,                    
completion of works or provision of services;                                   
  4)  indication whether foreign suppliers (contractors) may                    
participate in the tenders;                                                     
  5)  name  and  address  of  the  service  from  which  the                    
contract documents may be requested;                                            
  6)  where  applicable, the amount and terms of payment  of                    
the sum to be paid to obtain the documents;                                     
  7)  the language or languages in which the documents  must                    
be drawn;                                                                       
  8) address and final date for the submission of tenders.                      
  2.   The  notice  of  the  invitation  to  participate  in                    
prequalification  selection shall  include  the  information                    
referred  to  subparagraph 1, 4, 6 of paragraph  1  of  this                    
Article, as well as, if available, information indicated  in                    
paragraph 8 and the following information:                                      
  1)  name  and  address  of  the  service  from  which  the                    
prequalification documents may be requested;                                    
  2)  where  applicable, the amount and terms of payment  of                    
the sum to be paid to obtain the documents;                                     
  3)  the language or languages in which the documents  must                    
be drawn;                                                                       
  4)  address and final date for the submission of  requests                    
for the participation in prequalification selection.                            
                                                                                
  Article 21. Submission of Tender Documents                                    
  The  procuring organisation shall provide documents to the                    
suppliers  (contractors) in the manner provided for  in  the                    
invitation to tender. In cases where suppliers (contractors)                    
are selected by prequalification procedure, tender documents                    
shall  be  provided  only  to those suppliers  (contractors)                    
which    satisfy   the   requirements   of   the   procuring                    
organisation.  The  procuring  organisation  may  charge   a                    
payment for tender documents in the amount of costs of their                    
drawing up and provision to the suppliers (contractors).                        
                                                                                
  Article 22. The Contents of Tender Documents                                  
  The  tender  documents  shall  consist  of  the  following                    
documents and information:                                                      
  1) rules for the drawing up of tenders;                                       
  2)  information concerning the criteria and procedures for                    
the   evaluation  of  the  qualification  of  the  suppliers                    
(contractors);                                                                  
  3)  requirements  for the documents or  other  information                    
that  must  be  submitted by the suppliers (contractors)  in                    
order to proof their qualification;                                             
  4)  names  of goods, works or services to be procured  and                    
their technical and qualitative characteristics, as well  as                    
relevant  specifications, schemes, drawings,  and  projects,                    
the  quantity  of goods, the nature of the  services  to  be                    
supplied,  the  desirable or requested time  limit  for  the                    
supply of goods or provision of services;                                       
  5)  criteria (with the exception of prices) on  the  basis                    
of  which  the procuring organisation shall select the  most                    
suitable tender; their order of importance;                                     
  6)   terms  and  conditions  of  the  contract  that   the                    
procuring organisation is offering as well as the model form                    
of the contract, if available;                                                  
  7)  indication whether variants are permitted  as  to  the                    
characteristics of goods, works or services, the  terms  and                    
conditions  of  the procurement contract  or  whether  other                    
requirements may be applied, and indication of how  variants                    
shall be appraised and compared;                                                
  8)  if  suppliers (contractors) can tender for a  part  of                    
goods, works or services concerned - the description of this                    
part or parts relative to which a tender may be submitted;                      
  9)  indication of how the price indicated in a tender must                    
be  calculated and expressed. It shall be indicated whether,                    
in  addition  to  the  value  of  the  goods  and  services,                    
transportation,  insurance  costs,  customs  duties,  excise                    
duties,  taxes and other elements of price are  included  in                    
the price;                                                                      
  10)  indication  whether  foreign suppliers  (contractors)                    
are invited to tender;                                                          
  11)  requirements of the procuring organisation applicable                    
to  the  tender  and  the guarantor  of  the  fulfilment  of                    
procurement contract and to the form of guarantees presented                    
therefor;                                                                       
  12)  final  date and place for the submission  of  tenders                    
and the manner in which the tender must be submitted;                           
  13)  manner  in  which  the  suppliers  (contractors)  may                    
request explanations of tender documents, obtain information                    
of  whether  the  procuring  organisation  intends  to  hold                    
meeting with suppliers (contractors);                                           
  14) period of validity of tenders;                                            
  15) date, time and place of the opening of tenders;                           
  16)  procedure  for  the  opening  and  consideration   of                    
tenders;                                                                        
  17)   currency  in  which  tenders  will  be  valued   and                    
compared, and the rate at which the value of tender will  be                    
converted into that currency;                                                   
  18) names and addresses of officers and employees (one  or                    
several)  of the procuring organisation, who are  authorised                    
to maintain direct contacts with suppliers (contractors) and                    
to  receive from them (not the broker) notices pertaining to                    
procurement procedures;                                                         
  19)  if  when  selecting the most suitable  tender,  price                    
preferences  shall be applied in respect of domestic  goods,                    
contractors  or  service providers -  the  amount  of  these                    
preferences;                                                                    
  20)  all  other requirements of the procuring organisation                    
established pursuant to this Law and subordinate legislation                    
regulating  procurement, applicable to  the  drawing  up  of                    
tenders and other issues of procurement procedures.                             
                                                                                
  Article 23. Explanation and Alteration of Tender                              
Documents                                                                       
  1.  The  supplier (contractor) may request  the  procuring                    
organisation  to give explanations of tender documents.  The                    
procuring organisation shall respond to every request of the                    
supplier  (contractor) to explain tender documents which  is                    
received no later than 15 days before the expiry of the time                    
period   for  the  submission  of  tenders.  The   procuring                    
organisation must respond to the received request within the                    
time period which would enable the supplier (contractor)  to                    
submit  his  tender  by the fixed date, but  no  later  than                    
within 5 days. The procuring organisation, responding to the                    
supplier   (contractor),  shall  at  the  same   time   send                    
explanations  to  all suppliers (contractors)  whom  it  had                    
furnished   with   tender  documents,  without   indicating,                    
however, from whom it received a request for an explanation.                    
  2.  Prior  to  the expiry of the time period set  for  the                    
submission  of tenders, the procuring organisation  may,  on                    
its   own  initiative  or  in  response  to  any  supplier’s                    
(contractor’s)  request  for  an  explanation,   revise   or                    
supplement the tender documents. All suppliers (contractors)                    
to whom the procuring organisation has sent tender documents                    
shall be forthwith notified of the supplement or revision.                      
  3.  If the procuring organisation holds a meeting with the                    
suppliers  (contractors) it must draw up a record where  all                    
questions regarding the explanation of tender documents that                    
are  raised during the meeting shall be registered  (without                    
specifying  from whom they came) and answers given  to  them                    
shall  be  registered.  The  records  shall  be  immediately                    
presented to all suppliers (contractors) taking part in  the                    
procurement procedures.                                                         
  Article 24. The Submission of Tender                                          
  1.  The procuring organisation shall fix the date and  the                    
hour  which  shall  be  considered  the  deadline  for   the                    
submission of tender. The time period for the submission  of                    
tender may not be shorter than 30 days from the presentation                    
of tender documents.                                                            
  2.  If,  pursuant to Article 23 of this Law, the procuring                    
organisation approves or supplements the tender documents or                    
if  it  holds  a  meeting with the suppliers  (contractors),                    
then,  prior  to  the  expiry of the  time  period  for  the                    
submission  of  tender,  it  shall  postpone,  in  case   of                    
necessity, the deadline for the time period within which the                    
suppliers (contractors), preparing their tenders,  would  be                    
able  to  take  into account said revisions, supplements  or                    
records of meetings.                                                            
  3.  Prior  to  the  expiry  of the  time  period  for  the                    
submission   of  tender,  the  procuring  organisation   may                    
postpone  the  deadline provided than one or more  suppliers                    
(contractors) are unable to submit their tenders within  the                    
fixed  time  period  because of the circumstances  that  are                    
beyond their control.                                                           
  4.  Notification of any postponement of the  deadline  for                    
the  submission of tender must be immediately  sent  to  all                    
suppliers  (contractors)  to  whom  tender  documents   were                    
presented.                                                                      
  5.  The  tender shall be submitted in compliance with  the                    
following requirements:                                                         
  1)  in  written form, signed by the supplier  (contractor)                    
or  the  person authorised by him, in a sealed  and  stamped                    
envelope;                                                                       
  2)  without infringing the supplier’s (contractor’s) right                    
to  submit  the tender in compliance with the form specified                    
in  sub-paragraph  1  of this paragraph, other  requirements                    
ensuring  the  authenticity, reliability and confidentiality                    
of  the tender may also be established as an alternative  in                    
the  tender  documents  relative to the  submission  of  the                    
tender.                                                                         
  6.   At   the   supplier’s  (contractor’s)  request,   the                    
procuring organisation shall present a confirmation  of  the                    
receipt  of the tender and shall indicate the date and  hour                    
of the receipt.                                                                 
  7.  In  the  event that the tender is received  after  the                    
deadline,  an  unopened envelope with the  tender  shall  be                    
returned to the supplier (contractor) who sent it.                              
                                                                                
  Article 25. Period of Validity of the Tenders, Alteration                     
and Withdrawal thereof                                                          
  1.  Tenders  shall be valid for time period  specified  in                    
the tender documents.                                                           
  2.  Prior to the expiry of the tender validity period, the                    
procuring   organisation  may  request  that  the  suppliers                    
(contractors)  prolong their validity  until  the  specified                    
date.  The  supplier  (contractor) may  reject  the  request                    
without forfeiting the right to the tender guarantee.                           
  3.  The  suppliers (contractors) who agree to prolong  the                    
time  period  of  validity of their tenders and  notify  the                    
procuring organisation thereof in writing, shall extend  the                    
time period of tender guarantee or present new guarantees of                    
tender  validity.  If  the supplier  (contractor)  fails  to                    
respond  to  the  request of the procuring  organisation  to                    
prolong  the time period of validity of tenders or fails  to                    
prolong  them or does not present new tender guarantees,  he                    
shall be deemed to have rejected the request to prolong  the                    
term of validity of his tender.                                                 
  4.  Prior  to  the  expiry  of the  time  period  for  the                    
submission of tenders, the supplier (contractor)  may  alter                    
or  withdraw his tender without forfeiting his right to  his                    
tender   guarantee,  unless  the  tender  documents  provide                    
otherwise.   Such  alteration  or  notice  of   the   tender                    
withdrawal  shall  be recognised as valid if  the  procuring                    
organisation  receives it prior to the expiry  of  the  time                    
period for the submission of tenders.                                           
                                                                                
  Article 26. Tender Guarantees                                                 
  1.   The  procuring  organisation  may  demand  that   the                    
suppliers  (contractors) who submit the tenders should  also                    
present guarantees of the tender validity.                                      
  2.  The  tender documents may provide for the type of  the                    
guarantor  and  the  endorsing party, if  any,  as  well  as                    
stating  what  form  and  terms  and  conditions  of  tender                    
guarantees are acceptable to the procuring organisation. The                    
procuring organisation may not reject a tender guarantee  on                    
the  grounds of it being presented by a guarantor who is not                    
from the Republic of Lithuania, should such tender guarantee                    
and  guarantor meet, in all other aspects, the  requirements                    
set  forth in the tender documents (except when such  tender                    
guarantee is not in compliance with the laws of the Republic                    
of Lithuania or foreign state).                                                 
  3.    Before   submitting   his   tender,   the   supplier                    
(contractor)  may  request that the  procuring  organisation                    
confirm  the acceptability of the proposed tender  guarantor                    
or the proposed endorsing party. In such event the procuring                    
organisation   must  reply  immediately.   Confirmation   of                    
acceptability  of  the proposed guarantor  or  any  proposed                    
endorsing party shall not deprive the procuring organisation                    
of  the  right to reject the tender guarantee on the grounds                    
of  the  guarantor  or  the endorsing  party  having  become                    
insolvent or because of loss of confidence in them for  some                    
other reasons.                                                                  
  4.  The  procuring organisation shall state in the  tender                    
documents  all the requirements applicable to the  guarantor                    
as  well as specifying the required method, amount and other                    
basic conditions of tender guarantee. Said requirements  may                    
only be related with:                                                           
  1)  withdrawal  of the tender or alteration  thereof  upon                    
the  expiry  of  the time period set for the  submission  of                    
tenders  or prior to the expiry if this is provided  for  in                    
the tender documents;                                                           
  2)  the  supplier’s  (contractor’s) failure  to  sign  the                    
procurement contract if the purchasing organisation  demands                    
to sign it;                                                                     
  3)  failure  to  present,  after  the  acceptance  of  the                    
tender, a guarantee for the execution of the contract or  to                    
comply,  prior  to the signing of the procurement  contract,                    
with  any other terms and conditions laid down in the tender                    
documents.                                                                      
  5.  The  procuring organisation may not  demand  that  the                    
guarantor  pay the amount of the tender guarantee and  shall                    
immediately  return or ensure that the supplier (contractor)                    
be  returned the tender guarantee document in the  event  of                    
occurrence of any of the following facts:                                       
  1)  expiry  of  the  period  of  validity  of  the  tender                    
guarantee;                                                                      
  2)  coming into effect of the procurement contract and the                    
contract  performance  guarantee,  if  requested  in  tender                    
documents;                                                                      
  3)   termination   of   procurement  procedures   if   the                    
procurement contract does not come into effect;                                 
  4)  the  tender  is withdrawn prior to the expiry  of  the                    
time  period  for the submission of tenders unless  this  is                    
prohibited by a provision in the tender documents.                              
  6.   In   certain  cases  the  Government  may   establish                    
mandatory guarantees for tenders and for the performance  of                    
the  procurement contract as well as determining the  amount                    
of the guarantees.                                                              
                                                                                
  Article 27. Opening of the Envelopes with Tenders                             
  1.  The  envelopes containing tenders shall be  opened  at                    
the  place specified in the tender documents, on the  stated                    
day  and at the fixed hour. The date must coincide with  the                    
deadline  for  the submission of tenders. Upon changing  the                    
deadline, the date of opening envelopes with tenders must be                    
changed  accordingly. The envelopes shall be  opened  by  an                    
authorised representative of the procuring organisation. All                    
the  envelopes with tenders received prior to the expiry  of                    
the  time period for their submission must be opened at  the                    
fixed  time.  The  procuring organisation  shall  allow  all                    
suppliers (contractors) who submitted their tenders or their                    
representatives  to  participate  in  the  envelope  opening                    
procedure.                                                                      
  2.  The name of the supplier who submitted the tender, his                    
address  and  the  price indicated in the  tender  shall  be                    
announced   to   the   suppliers  (contractors)   or   their                    
representatives  taking  part in the  procedure  of  opening                    
envelopes  with  tenders.  The  information  shall  also  be                    
furnished   to  those  suppliers  (contractors)   who   have                    
submitted their tenders but are not present at the  envelope                    
opening   procedure,  if  they  so  desire,  and  shall   be                    
immediately recorded in the report on procurement procedures                    
drawn up pursuant to Article 9 of this Law.                                     
                                                                                
  Article 28. Consideration, Evaluation and Comparison of                       
Tenders                                                                         
  1.   The  procuring  organisation  may  request  that  the                    
suppliers (contractors) explain their tenders. It  may  not,                    
however, request, propose or permit to change the essence of                    
the   tender:  to  change  the  price  or  make  any   other                    
alterations that would convert a tender which does not  meet                    
formal   requirements  into  that  complying   with   formal                    
requirements.  A  tender which meets  all  the  requirements                    
stated  in  the tender documents or a tender whose departure                    
from  the  characteristics, terms and conditions  and  other                    
requirements   laid   down  in  the  tender   documents   is                    
insignificant, whereas the mistakes or inaccuracies  may  be                    
eliminated without changing the essence of the tender  shall                    
be  considered  as a tender complying with  all  the  formal                    
requirements.                                                                   
  2.  The  procuring organisation may correct in the  tender                    
only  calculation mistakes noticed during the  consideration                    
of  the tender. The procuring organisation shall notify  the                    
supplier  (contractor)  who submitted  the  tender  of  such                    
corrections.                                                                    
  3.  The procuring organisation shall not accept the tender                    
submitted by the supplier (contractor) if:                                      
  1)  the  supplier  (contractor) who submitted  the  tender                    
does not meet the qualification requirements;                                   
  2)  the  supplier  (contractor) who submitted  the  tender                    
refuses  to  recognise  the  correction  of  any  arithmetic                    
mistake pursuant to paragraph 2 hereof;                                         
  3)  the  submitted  tender is not in compliance  with  the                    
formal requirements specified in paragraph 1 hereof;                            
  4) circumstances specified in Article 12 occur.                               
  4.  The  procuring organisation shall, complying with  the                    
requirements  specified  herein  and  with  the   procedures                    
indicated in the tender documents, evaluate and compare only                    
those  tenders which meet the requirements laid down in  the                    
tender  documents and shall determine the successful tender.                    
Only  those evaluation criteria which are specified  in  the                    
tender documents may be applied in the process of evaluation                    
and comparison.                                                                 
  5.  The  following tender shall be deemed  the  successful                    
tender:                                                                         
  1)  the  tender  offering the lowest  price,  taking  into                    
account  the  preferential changes determined in  accordance                    
with the procedure laid down in paragraph 6 hereof, or                          
  2)  the  tender which, on evaluation by objective criteria                    
expressed  in  monetary  or  other  quantitative  terms,  is                    
recognised as being most advantageous.                                          
  6.   The   Government  shall  determine   the   scope   of                    
preferential changes applicable, for the benefit of domestic                    
suppliers  (contractors), to specific types of goods,  works                    
or  services as well as the procedure of application of said                    
changes.  The preferential changes applicable to  goods  and                    
services may not exceed 15%, and to works - 20%.                                
  7.  Information related to the consideration, explanation,                    
evaluation and comparison of tenders, with the exception  of                    
that  specified in Article 9 of this Law, may be  accessible                    
only  to  those  persons who officially  take  part  in  the                    
consideration, evaluation and comparison of  tenders  or  in                    
reaching the decision.                                                          
  8.  In  case  less  than 3 tenders are  submitted  by  the                    
expiry of the time period for the submission of tenders, the                    
tendering shall be considered not to have been held and  the                    
tendering procedures shall be terminated.                                       
                                                                                
  Article 29. Prohibition of Negotiations with the                              
Suppliers (Contractors)                                                         
  The   procuring   organisation   may   not   conduct   any                    
negotiations  with the supplier (contractor) concerning  the                    
contents of the submitted tender.                                               
                                                                                
  Article 30. Acceptance of the Tender and Award of the                         
Procurement Contract                                                            
  1.  The  tender recognised as the successful tender  under                    
Article  28  of  this  Law shall be accepted.  The  supplier                    
(contractor)  who  sent  the  tender  shall  be  immediately                    
dispatched a notice concerning the acceptance of the tender.                    
  2.  The procurement contract shall be deemed to have  been                    
awarded from the moment the supplier (contractor) receives a                    
notice concerning the acceptance of his tender.                                 
  3.  If  the  procuring organisation has indicated  in  the                    
tender documents that the procurement contract will have  to                    
be  signed or signed and confirmed, the procurement contract                    
shall  be deemed to have been awarded from the moment it  is                    
signed  by  the  procuring  organisation  and  the  supplier                    
(contractor) or from the moment the contract is confirmed.                      
  4.  If  the supplier (contractor) whose tender is accepted                    
fails, at the procuring organisation’s request, to sign  the                    
procurement   contract  or  to  offer  guarantees   of   its                    
performance,  the  procuring organisation shall  select  the                    
successful  tender  from  the  remaining  valid  tenders  in                    
accordance with the procedure established by law.                               
  5.   Upon   the  coming  into  force  of  the  procurement                    
contract, other suppliers (contractors) who submitted  their                    
tenders shall be dispatched notices about the award  of  the                    
procurement  contract. The notice will  state  to  whom  the                    
contract is awarded and the price of the contract.                              
                                                                                
                          Chapter V                                             
                                                                                
             PROCUREMENT ACCORDING TO THE CLOSED                                
                     TENDERING PROCEDURE                                        
                                                                                
  Article 31. Closed Tendering                                                  
  1. Closed tendering may be held if:                                           
  1)  the goods, works or services may be sold, by reason of                    
their  particular complexity or specific character, only  by                    
certain suppliers (contractors);                                                
  2)  because  of the number of tenders, their consideration                    
would  take  too  much time and involve  excessive  expenses                    
compared with the value of goods, works or services;                            
  3)  open tendering has not been held because of the reason                    
specified in paragraph 8 of Article 28 of this Law or  after                    
the rejection of all tenders submitted to open tendering;                       
  4)  the  value of goods and services does not  exceed  150                    
000 litas, of works - 500 000 litas.                                            
  2.  In  the  event  that the procuring organisation  holds                    
closed tendering pursuant to sub-paragraph 1 of paragraph  1                    
hereof,  it shall request that tenders be submitted  by  all                    
suppliers  (contractors) who have goods it needs or  execute                    
the required works or provide the required services.                            
  3.   If   the  procuring  organisation  organises   closed                    
tendering  in pursuance of sub-paragraphs 2,  3,  and  4  of                    
paragraph  1  hereof,  it  shall  select  not  less  than  3                    
suppliers (contractors) which are in the position to  ensure                    
genuine competition.                                                            
  4.  In conducting closed tendering, procurement procedures                    
established  in  Chapter 4 of this  Law  shall  be  applied,                    
except  for  cases where different procedures are prescribed                    
herein.                                                                         
                                                                                
  Article 32. Two-Stage Tendering                                               
  1.  When the circumstances specified in paragraph 2 hereof                    
occur,  the procuring organisation shall have the  right  to                    
conduct   procurement   by  applying   two-stage   tendering                    
procedures.                                                                     
  2. Two-stage tendering procedure shall be applied if:                         
  1)  the object of procurement is very complicated from the                    
technical  point  of view and the procuring organisation  is                    
unable to present detailed specifications of goods, works or                    
characteristics of services;                                                    
  2)  the  procuring organisation wants to award a  contract                    
for  the  performance  of scientific works,  investigations,                    
experiments,  for  the preparation of  projects,  except  in                    
cases  when  the manufacture of such an amount of  goods  is                    
planned  which may ensure production profitability or  cover                    
the investigation and designing expenses;                                       
  3)  tendering procedures have been performed, however,  no                    
tenders have been received or all tenders have been rejected                    
under Article 10 of this Law, also if, in the opinion of the                    
procuring   organisation,   the  resumption   of   tendering                    
procedures anew will not result in the award of contract.                       
  3.  Provisions of Chapter 4 of this Law shall  be  applied                    
to  two-stage tendering procedures, except for  cases  where                    
other procedures are prescribed by this Article.                                
  4.  Two-stage tendering documents shall specify  that  all                    
suppliers (contractors) shall submit initial tenders for the                    
first  stage  of  tendering where the  price  shall  not  be                    
stated.  The tender documents may provide for the submission                    
of   offers   as  regards  technical,  quality   and   other                    
characteristics of goods, works or services  and  terms  and                    
conditions  of the contract for the supply thereof,  and  in                    
certain  cases - also concerning professional and  technical                    
competence and information relating to the qualification  of                    
the suppliers (contractors).                                                    
  5.  During  the  first  stage of tendering  the  procuring                    
organisation  may negotiate any aspects of the  tender  with                    
any   supplier  (contractor),  whose  tender  has  not  been                    
rejected in accordance with provisions of this Law.                             
  6.  During  the  second stage of tendering  the  procuring                    
organisation shall invite the suppliers (contractors)  whose                    
tenders have not been rejected to submit their final tenders                    
with  prices of specifications of a package of goods,  works                    
or  services.  While  drawing  up  such  specifications  the                    
procuring  organisation may reject or modify any  aspect  of                    
technical  or  quality characteristics of  goods,  works  or                    
services  being  procured which was formerly  determined  by                    
tendering  and may include new characteristics or  criteria.                    
In  its  invitation  to submit final tenders  the  procuring                    
organisation shall notify the suppliers (contractors) of any                    
such  rejection, modification or supplement. Every  supplier                    
(contractor)  who does not wish to submit the  final  tender                    
may   withdraw   from   the  tendering  procedures   without                    
forfeiting  the  tender guarantee if he has presented  such.                    
Final  tenders shall be evaluated and compared in accordance                    
with  the procedure laid down in Article 28 of this Law,  in                    
order to determine the successful tenderer.                                     
                                                                                
  Article 33. Negotiated Procedure                                              
  1.  If  circumstances specified in paragraph 1 of  Article                    
31 occur, as well as in case of consulting or other services                    
which   cannot   be   clearly  characterised   in   advance,                    
procurement  may  be  performed  by  negotiated   procedure.                    
Applying   this   method  of  procurement,   the   procuring                    
organisation shall send invitations to submit offers to  nor                    
less than 3 suppliers (contractors).                                            
  2.  Invitation to submit offers must contain the following                    
information:                                                                    
  1) name and address of the procuring organisation;                            
  2)  description  of procurement specifying  technical  and                    
other   parameters   and  requirements,   whereas   in   the                    
procurement  of  works  or  services  the  place  of   their                    
execution or provision shall also be indicated;                                 
  3)  in  case  of  procurement  of  consulting  services  -                    
indication that the provider thereof with whom the  services                    
procurement  contract will be concluded and  the  affiliated                    
enterprises  shall  not  be  able  to  participate  in   the                    
procurement  of  goods  and works related  to  the  services                    
provided under the contract;                                                    
  4)  methods  and  criteria of offer evaluation  expressed,                    
where  possible, in terms of monetary value, specifying  the                    
relative  significance of every offer and the procedure  for                    
the   application  of  said  methods  and  criteria  in  the                    
evaluation of offers;                                                           
  5)   request  that  the  technical  part  and  prices   be                    
submitted in separate envelopes;                                                
  6) the place and deadline for submission of offers.                           
  3.  The  procuring  organisation may  negotiate  with  the                    
supplier   (contractor)  the  content  of  the  offers.   In                    
conducting negotiations the following terms must be complied                    
with:                                                                           
  1) they must be confidential;                                                 
  2)  the parties must not disclose to anyone any technical,                    
commercial or price-related information;                                        
  3)  all  suppliers  (contractors) whose  offers  were  not                    
rejected based on the provisions of this Law must be given a                    
possibility to participate in the negotiations.                                 
  4.  Upon  the  completion  of negotiations  the  procuring                    
organisation  shall request that all suppliers (contractors)                    
taking part in the procedures submit, by the fixed date, the                    
final  offer prepared taking into consideration the  outcome                    
of negotiations.                                                                
  5. The offers shall be evaluated in the following manner:                     
  1)  account shall be taken only of the criteria listed  in                    
the invitation for offers;                                                      
  2)  the efficiency of the offer from the point of view  of                    
prescribed  technical  and  quality  requirements  shall  be                    
evaluated separately from the price;                                            
  3)  the  prices of offers shall be compared or  the  offer                    
shall   be   evaluated  taking  into  account  all  criteria                    
(including  the  price) only upon performing  technical  and                    
quality evaluation of the offer.                                                
  6.  The procuring organisation shall award the procurement                    
contract  to  the  supplier (contractor) whose  offer,  upon                    
evaluating  it  according  to the  criteria  listed  in  the                    
invitation  for the submission of offers and complying  with                    
the   procedure  of  their  application  specified  in   the                    
invitation,   meets  the  requirements  of   the   procuring                    
organisation best of all.                                                       
                                                                                
  Article 34. Request-for-Quotations                                            
  1.  The procuring organisation may perform procurements by                    
presenting  a  request  for  quotations.  This   method   of                    
procurement  may be applied in case of availability  on  the                    
existing  market  of competitive supply of  standard  goods,                    
works  or  conventional services required by  the  procuring                    
organisation.                                                                   
  2.  The procuring organisation shall address a request for                    
quotations for goods, works and services to not less than  3                    
suppliers (contractors). Every supplier (contractor) who  is                    
addressed  shall  be  notified whether any  other  elements,                    
viz.,  transportation and insurance expenses, excise  taxes,                    
customs or other taxes must be included in the price besides                    
the cost of goods, works or services.                                           
  3.  Each  of the suppliers (contractors) shall be  allowed                    
to  propose  only  one price which cannot  be  changed.  The                    
procuring organisation and the supplier (contractor) may not                    
conduct  any  negotiation  of  the  price  proposed  by  the                    
supplier (contractor).                                                          
  4.  The  decision to award the procurement contract  shall                    
be  taken  in  favour  of  the  supplier  (contractor)  that                    
submitted  the  lowest price satisfying  the  needs  of  the                    
procuring organisation.                                                         
  Article 35. Single-Source Procurement                                         
  1.  The  procuring organisation may procure  goods,  works                    
and  services upon issuing to only one supplier (contractor)                    
an invitation to submit offers or the price.                                    
  2.  Procurement  by  a single-source  procedure  shall  be                    
allowed if:                                                                     
  1)  the  specific  type goods, works or  services  may  be                    
supplied   (performed)   only  by  a   particular   supplier                    
(contractor)  or  by  the  supplier  (contractor)  that  has                    
exclusive  rights to produce (perform) the goods,  works  or                    
services and there is no suitable alternative;                                  
  2)  an  urgent  need for goods, works or services  emerges                    
caused  by particular circumstances or other reasons  making                    
tendering  procedures  impossible or  inexpedient,  provided                    
that the procuring organisation could not have foreseen this                    
or  this  has  not  been conditioned by  the  delay  of  the                    
procuring organisation;                                                         
  3)   the  procuring  organisation  has  procured  from   a                    
supplier   (contractor)  under  previous   contract   goods,                    
equipment,  technology or services and has ascertained  that                    
additional  procurement  from the supplier  (contractor)  is                    
expedient from the point of view of standardisation for  the                    
purpose   of   co-ordination  with  the   available   goods,                    
equipment, technology or performed services and taking  into                    
account  the  efficiency of the previous procurement,  also,                    
the   volume  of  additional  procurement  is  insubstantial                    
compared  with  the  previous procurement,  the  prices  are                    
reasonable  whereas alternative procurement is  unacceptable                    
by   reason  of  its  incompatibility  with  the  previously                    
procured goods, equipment, technology or services;                              
  4)  the  procuring organisation wants to sign  a  contract                    
with  an  appropriate  supplier (contractor)  for  research,                    
experiment,  scientific or design works,  except  for  cases                    
where the contract provides for the manufacture of a certain                    
amount   of   goods  which  would  ensure  their  commercial                    
profitability  or  the  covering of research  and  designing                    
expenses;                                                                       
  5)  the  duration of the contract for the  procurement  of                    
goods, works and services is extended.                                          
                                                                                
                         Chapter VI                                             
                                                                                
           REVIEW OF COMPLAINTS AND LOSS RECOVERY                               
                                                                                
  Article 36. The Right of the Supplier (Contractor) to                         
Lodge a Complaint                                                               
  1.  The supplier (contractor) who has received procurement                    
documents in accordance with the procedure laid down in this                    
Law  may, prior to the enforcement of procurement contracts,                    
appeal  against  the  actions,  procurement  procedures   or                    
decisions of the procuring organisation if he believes  that                    
his  legal  interests have been infringed  and  demands  the                    
rescission, cancellation or modification of the contracts.                      
  2.  Complaints shall be lodged with the Public Procurement                    
Agency within 10 days from the day the supplier (contractor)                    
learns  or should have learnt about the infringement of  his                    
legal interests.                                                                
  3. The following may not be the object of complaint:                          
  1)  selection  of the method of procurement under  Article                    
17 of this Law;                                                                 
  2)  the  decision of the procuring organisation to reject,                    
pursuant  to Article 10 of this Law, all tenders, offers  or                    
prices.                                                                         
  Article 37. Procedure for Reviewing the Complaints                            
  1.   The   Public  Procurement  Agency  must  review   the                    
complaint and pass a decision within 20 days.                                   
  2.  Complaints  shall be reviewed in compliance  with  the                    
Rules  (Regulations) of Complaint Review Procedure  approved                    
by the Government.                                                              
                                                                                
  Article 38. Suspension of Procurement Procedures                              
  1.  A complaint lodged by the supplier (contractor) by the                    
fixed  date  shall suspend the procurement procedures  until                    
the  complaint  is  reviewed and a  decision  is  passed  in                    
accordance with the procedure established by Article  37  of                    
this  Law,  except  in cases when a complaint  is  not  duly                    
justified  or if the supplier (contractor) or the  procuring                    
organisation   may  sustain  damage  by   reason   of   such                    
suspension.                                                                     
  2.  The  decision concerning the suspension of procurement                    
procedures shall be passed by the institution reviewing  the                    
complaint.                                                                      
                                                                                
  Article 39. Appeal against the Decisions of the State                         
Institution Authorised                                                          
         by the Government                                                      
  The  supplier (contractor) shall have the right to  appeal                    
to  court,  in accordance with the procedure established  by                    
law, against the decision of the state institution specified                    
in Article 36 of this Law.                                                      
                                                                                
  Article 40. The Supplier’s (Contractor’s) Right to Claim                      
Damages                                                                         
  In  the  event  that the procuring organisation  fails  to                    
fulfil  obligations established by this Law and other  legal                    
acts  or  infringes the rights of the supplier (contractor),                    
the  supplier  shall have the right to  apply  to  court  in                    
accordance  with the procedure established  by  law  and  to                    
recover damages.                                                                
                                                                                
  Article 41. The Supplier’s (Contractor’s) Liability                           
  If  the supplier (contractor) presents forged documents or                    
false  data to the procuring organisation or fails to fulfil                    
the obligations prescribed by this Law and other legal acts,                    
the  procuring organisation may apply to court in accordance                    
with the procedure established by laws and recover from  the                    
supplier (contractor) the inflicted damages.                                    
                                                                                
  Article 42. Liability of the Executives of the Procuring                      
Organisation                                                                    
  1.   Executives  or  other  authorised  persons   of   the                    
procuring  organisation who violate this Law shall  be  held                    
materially,  administratively or criminally  responsible  in                    
accordance with the procedure established by law.                               
  2.  If goods or services are procured in violation of  the                    
requirements of this Law, their price shall be considered to                    
have  been increased by 10% as against the amount  paid  for                    
the  procured goods or services and that the state has  been                    
inflicted  damage  of said amount. If the state  control  or                    
auditing services or other competent government institutions                    
establish that the goods or services have been procured at a                    
higher price or in violation of the procedure prescribed  by                    
this  Law as well as establishing other violations of  price                    
application, the persons through whose fault the damage  has                    
been  inflicted  shall  be  held  liable  under  law  (shall                    
indemnify for the damages). Damages shall be recovered  from                    
the   guilty  persons  in  accordance  with  the   procedure                    
established by law.                                                             
                                                                                
                         Chapter VII                                            
                                                                                
                      FINAL PROVISIONS                                          
                                                                                
  Article 43. Coming into Effect of the Law                                     
  The Law shall come into effect on 1 January 1997.                             
                                                                                
  I  promulgate  this  Law  passed  by  the  Seimas  of  the                    
Republic of Lithuania.                                                          
                                                                                
                                                                                
                                         ALGIRDAS BRAZAUSKAS                    
                                   President of the Republic                    
                                                                                
Vilnius                                                                         
13 August 1996                                                                  
No. I- 1491