MEMORANDUM OF UNDERSTANDING between the United States of America and the European Economic Community on government procurementMEMORANDUM OF UNDERSTANDING BETWEEN THE UNITED STATES OF AMERICA (THE USA) AND THE EUROPEAN ECONOMIC COMMUNITY (THE EEC):WHEREAS the USA and the EEC are parties to the GATT Agreement on Government Procurement (the Code), which entered into force on 1 January 1981;WHEREAS Article 6: of the Code states that the parties to the Code shall undertake further negotiations with a view to broadening and improving the Code on the basis of mutual reciprocity;WHEREAS the USA and the EEC have been involved in multilateral negotiations to expand coverage of the Code since 1984;WHEREAS in the interest of facilitating agreement on a new Code, the USA and the EEC undertook bilateral negotiations to resolve certain outstanding problems between them;WHEREAS the USA and the EEC expect that any bilateral agreement on these issues will provide appropriate reciprocal competitive government procurement opportunities that are intended to become part of the expanded Code;WHEREAS the USA and the EEC have decided to make certain reciprocal commitments to open their respective procurement markets as a downpayment towards an expanded Code;THEREFORE, the USA and the EEC have agreed as follows:Article 1 Scope and definitions1. This Agreement shall apply to:- contracs for goods, works (otherwise 'construction services`), and other services, which are awarded by entities included in Annexes 1 and 2, and- contracts for goods and works, which are awarded by entities listed in Annexes 3 and 4.2. 'Works contracts` shall be those contracts which have as their objective the realization by whatever means of civil or building works, in particular in the sense of division 51 of the Central Product Classification of the United Nations or of Annex 2 to Council Directive 71/305/EEC.'Other services` shall be those contracts for which the principal object is the obtaining of one or more of the services which are included in both Annexes 5 and 6.Article 2 Central and Federal Government entities1. In the award of contracts by entities which are included in Annex 1, the Community shall afford to the suppliers, contractors and service providers of the USA and to goods and services originating within the customs territory of the USA the award procedures of Council Directive 77/62/EEC which shall apply to goods contracts, the estimated value of which, net of VAT, is not less than the Code threshold, currently ECU 125 576, of Council Directive 92/50/EEC, which shall apply to services contracts, the estimated value of which, net of VAT, is not less than ECU 200 000, and of Council Directive 71/305/EEC, which shall apply to works contracts the estimated value of which, net of VAT, is not less than ECU 5 000 000;2. The USA shall waive the application of the Buy America Act (41 USC 10a) to the award of contracts by entities which are included in Annex 2, above a threshold of $ 6 500 000 for works contracts, and above the Code threshold (which is currently $ 176 000) for goods and other services contracts. In the award of such contracts the USA shall afford to the suppliers, contractors and service providers of the Community and to goods and services originating within the customs territory of the Community, the award procedures of the Federal Acquisition Regulations, other than those pertaining to the application of the Buy America Act.3. Each Party may maintain its current derogations under the Code.Article 3 Electrical utilities1. The EEC shall extend the benefits of the provisions of Council Directive 90/531/EEC to US products, suppliers and contractors in the award of contracts by entities included in Annex 3 and will make the benefits of Directive 92/131/EEC available to US suppliers and contractors for such awards.2. The USA shall waive the application of the Buy America Act (41 U.S.C. 10 a) to the award of contracts by entities which are included in Annex 4, above a threshold of US $ 6 500 000 for works contracts, and US $ 450 000 for goods contracts. In the award of such contracts the USA shall afford to the suppliers, contractors and service providers of the EEC and to goods and services originating within the customs territory of the EEC, award procedures substantially equivalent to the Federal Acquisition Regulations, other than those pertaining to the application of the Buy America Act.Article 4 Joint studyThe USA and the EEC shall jointly sponsor a study of the procurement opportunities that would arise from their respective offers and requests in the negotiations for the expanded Code. The study, the terms of reference of which are attached at Annex 7, will be conducted by an independent consultant and should be completed by 31 January 1994.Article 5 Continuation of negotiations1. Following completion of the study, the USA and the EEC shall negotiate with a view to reaching a balanced comprehensive agreement on procurement, with
(UNA).Elektriciteitsbedrijf Zuid-Holland (EZH).Elektriciteitsproduktiemaatschappij Zuid-Nederland (EPZ).Provinciale Zeeuwse Energie Maatschappij (PZEM).Samenwerkende Elektriciteitsbedrijven (SEP).Entities distributing electricity on the basis of a licence (vergunning) granted by the provincial authorities pursuant to the Provinciewet.PORTUGAL Electricidade de Portugal (EDP), set up pursuant to the Decreto-Lei n° 502/76 de 30 de Junho de 1976.Entities distributing electricity pursuant to artigo 1o do Decreto-Lei n° 344-B/82 de 1 de Setembro de 1982, amended by Decreto-Lei n° 297/86 de 19 de Setembro de 1986. Entities producing electricity pursuant to Decreto-Lei n° 189/88 de 27 de Maio de 1988.Independant producers of electricity pursuant to Decreto-Lei n° 189/88 de 27 de Maio de 1988.Empresa de Electricidade dos Açores - EDA, EP, created pursuant to the Decreto Regional n° 16/80 de 21 de Agosto de 1980.Empresa de Electricidade da Madeira, EP, created pursuant to the Decreto-Lei n° 12/74 de 17 de Janeiro de 1974 and regionalized pursuant to the Decreto-Lei n° 31/79 de 24 de Fevereiro de 1979, Decreto-Lei n° 91/79 de 19 de Abril de 1979.UNITED KINGDOM Central Electricity Generating (CEGB), and the Areas Electricity Boards producing, transporting or distributing electricity pursuant to the Electricity Act 1947 and the Electricity Act 1957.The North of Scotland Hydro-Electricity Board (NSHB), producing, transporting and distributing electricity pursuant to the Electricity (Scotland) Act 1979.The South of Scotland Electricity Board (SSEB) producing, transporting and distributing electricity pursuant to the Electricity (Scotland) Act 1979.The Northern Ireland Electricity Service (NIES), set up pursuant to the Electricity Supply (Northern Ireland) Order 1972.ANNEX 4 US federal entities in the electric power sector The Tennessee Valley AuthorityThe Power Marketing Administrations of the Department of Energy including:- Bonneville Power Administration- Western Area Power Administration- Southeastern Power Administration- Southwestern Power Administration- Alaska Power Administration.ANNEX 5 The list of services offered for coverage under the Code by the EEC, contained in GPR/Spec/71 of 14 August 1992, Annex 4 LIST OF SERVICES INCLUDEDSubjectCPC reference NoMaintenance and repair services 6112, 6122, 633, 886Land transport services, including armoured car services, and courier services, except transport of mail 712 (except 71235) 7512 87304Air transport services of passengers and freight, except transport of mail 73 (except 7321)Transport of mail by land, except rail, and by air 71235, 7321Telecommunications services 752* (except 7524, 7525, 7526)Financial services(a) insurance services(b) banking and investments services** ex 81 812, 814Computer and related services 84Accounting: auditing and bookkeeping services 862Market research and public opinion polling services 864Management consulting services and related services 865, 866***Architectural services; engineering services and integrated engineering services, urban planning and landscape architectural services; related scientific and technical consulting services; technical testing and analysis services 867Advertising services 871Building-cleaning services and property management services 874, 82201 to 82206Publishing and printing services on a fee or contract basis 88442Sewage and refuse disposal: sanitation and similar services 94* Except voice telephony, telex, radiotelephony, paging and satellite services.** Except contracts for financial services in connection with issue, sale, purchase or transfer of securities or other financial instruments, and central bank services.*** Except arbitration and conciliation services.ANNEX 6 The list of services offered for overage under the Code by the USA, contained in GPR/Spec/65 of 14 August 1992, Annex 4 Universal list of services as specified in MTN.GNS/W/120 with the exception of the following:1. All transportation services, including Launching Services, (CPC Categories 71, 72, 73, 74, 8868)Note: Transportation services, where incidental to procurement contracts are not subject to this Agreement.2. Dredging3. All services purchased in support of military forces located overseas4. Management and operation contracts of certain government or privately-owned facilities used for government purposes, including federally-funded research and development centers do Emprego e Formação ProfissionalDirecção-Geral dos Regimes de Segurança SocialFundo de Estabilização Financeira da Segurança SocialInspecção-Geral de Segurança SocialInspecção-Geral do TrabalhoInstituto de Gestão Financeira da Segurança SocialInstituto do Emprego e Formação ProfissionalInstituto Nacional para o Aproveitamento dos Tempos Livres dos TrabalhadoresSecretaria-GeralSecretariado Nacional de ReabilitaçãoServiços Sociais do MESSSanta Casa da Misericórdia de Lisboa (a)(a) Entidade tutelada conjuntamente pelos ministérios do Emprego e Segurança Social e da Saúde.Ministério das FinançasADSE - Direcção-Geral de Protecção Social aos Funcionários e Agentes da Administração PúblicaAuditoria jurídicaDirecção-Geral da Administração PúblicaDirecção-Geral da Contabilidade Pública e Intendência Geral do OrçamentoDirecção-Geral da Junta de Crédito PúblicoDirecção-Geral das AlfândegasDirecção-Geral das Contribuições e ImpostosDirecção-Geral do Património do EstadoDirecção-Geral do TesouroGabinete de Estudos EconómicosGabinete dos Assuntos EuropeusGAFEEP - Gabinete para Análise do Financiamento do Estado e das Empresas PúblicasInspecção-Geral de FinançasInstituto de InformáticaJunta de Crédito PúblicoSecretaria-GeralSOFE - Serviços Sociais do Ministério das FinançasMinistério da Indústria e EnergiaDelegação Regional da Indústria e Energia de Lisboa e Vale do TejoDelegação Regional da Indústria e Energia do AlentejoDelegação Regional da Indústria e Energia do AlgarveDelegação Regional da Indústria e Energia do CentroDelegação Regional da Indústria e Energia do NorteDirecção-Geral da IndústriaDirecção-Geral de EnergiaDirecção-Geral de Geologia e MinasGabinete de Estudos e PlaneamentoGabinete para a Pesquisa e Exploração de PetróleoGabinete para os Assuntos ComunitáriosInstituto Nacional da Propriedade IndustrialInstituto Português da QualidadeLNETI - Laboratório Nacional de Engenharia e Tecnologia IndustrialSecretaria-GeralMinistério da JustiçaCentro de Estudos JudiciáriosCentro de Identificação Civil e CriminalCentros de observação e acção socialConselho Superior da MagistraturaConservatória dos Registos CentraisDirecção-Geral dos Registos e NotariadoDirecção-Geral dos Serviços de InformáticaDirecção-Geral dos Serviços JudiciáriosDirecção-Geral dos Serviços PrisionaisDirecção-Geral dos Serviços Tutelares de MenoresEstabelecimentos prisionaisGabinete de Direito EuropeuGabinete de Documentação e Direito ComparadoGabinete de Estudos e PlaneamentoGabinete de Gestão FinanceiraGabinete de Planeamento e Coordenação do Combate à DrogaHospital-Prisão de S. João de DeusInstituto Corpus ChristiInstituto da GuardaInstituto de Reinserção SocialInstituto de S. Domingos de BenficaInstituto Nacional da Polícia e Ciências CriminaisInstituto Navarro Ministero del Commercio con l'Estero;18. Ministero delle Poste e delle Telecomunicazioni (4);19. Ministero dell'Ambiente;20. Ministero dell'Università e della Ricerca Scientifica e Tecnologica.Note:This Agreement shall not prevent the implementation of provisions contained in Italian Law N° 835 of 6 October 1950 (Official Gazette of the Italian Republic N° 245 of 24 October 1950) and in modifications thereto in force on the date on which this Agreement is adopted.Le présent accord n'empêchera pas d'appliquer les dispositions de la loi italienne n° 835 du 6 octobre 1950 (Journal officiel de la République italienne n° 245 du 24 octobre 1950) et de ses amendements en vigueur au moment de l'adoption du présent accord.LUXEMBOURG (La version française de cette liste fait foi.) 1. Ministère d'État: service central des imprimés et des fournitures de l'État 2. Ministère de l'agriculture: administration des services techniques de l'agriculture 3. Ministère de l'éducation nationale: lycées d'enseignement secondaire et d'enseignement secondaire technique 4. Ministère de la famille et de la solidarité sociale: maisons de retraite 5. Ministère de la force publique: armée (1) - gendarmerie - police 6. Ministère de la justice: établissements pénitentiaires 7. Ministère de la santé publique: hôpital neuropsychiatrique 8. Ministère des travaux publics: bâtiments publics - ponts et chaussées 9. Ministère des communications: postes et télécommunications (2)10. Ministère de l'énergie: centrales électriques de la Haute-et Basse-Sûre11. Ministère de l'environnement: commissariat général à la protection des eauxTHE NETHERLANDS (This list is authentic in the English language)LIST OF ENTITIESA. Ministries and central governmental bodies 1. Ministry of General Affairs 2. Ministry of Foreign Affairs 3. Ministry of Justice 4. Ministry of the Interior 5. Ministry of Finance 6. Ministry of Economic Affairs 7. Ministry of Education and Science 8. Ministry of Housing, Planning and the Environment 9. Ministry of Transport and Public Work10. Ministry of Agriculture, Nature Conservation and Fisheries11. Ministry of Employment and Social Security12. Ministry of Welfare, Public Health and Cultural Affairs13. Cabinet for matters concerning the Netherlands Antilles and Aruban Affairs14. Higher Colleges of StateB. Central procurement officesEntities listed above under A generally make their own specific purchases; other general purchases are effected through the entities listed below:1. Directorate of Water Control2. Directorate-General of Supplies of the Royal Netherlands Army (1)3. Directorate-General of Supplies of the Royal Netherlands Air Force (1)4. Directorate-General of supplies of the Royal Netherlands Navy (1)A. Ministries and central governmental bodies 1. Ministerie van Algemene Zaken 2. Ministerie van Buitenlandse Zaken 3. Ministerie van Justitie 4. Ministerie van Binnenlandse Zaken 5. Ministerie van Financiën 6. Ministerie van Economische Zaken 7. Ministerie van Onderwijs en Wetenschappen 8. Ministerie van Volkshuisvesting, Ruimtelijke Ordening en Milieubeheer 9. Ministerie van Verkeer en Waterstaat10. Ministerie van Landbouw, Natuurbeheer en Visserij11. Ministerie van Sociale Zaken en Werkgelegenheid12. Ministerie van Welzijn, Volksgezondheid en Cultuur13. Kabinet voor Nederlands-Antilliaanse en Arubaanse Zaken14. Hogere Colleges van StaatB. Central procurement officesEntities listed above under A generally make their own specific purchases; other general purchases are affected through the entities listed below:1. Directoraat-generaal Rijkswaterstaat2. Directoraat-generaal voor de Koninklijke Landmacht (1)3. Directoraat-generaal voor de Koninklijke Luchtmacht (1)4. Directoraat-generaal voor 8868)Note: Transportation services, where incidental to procurement contracts are not subject to this Agreement.2. Dredging3. All services purchased in support of military forces located overseas4. Management and operation contracts of certain government or privately-owned facilities used for government purposes, including federally-funded research and development centers (FFRDCs).5. R & D servicesANNEX 7 Mandate for the joint study ObjectiveThe objective of the study is to estimate the value and also to assess qualitatively the international bidding potential of procurement opportunities which would be likely to arise under the GPA, as a result of offers and requests of either Party, at the time of it expected implementation in 1995. The study shall be without prejudice to either Party's final offer.The study should be conducted on the basis of a projection of available information on current performance, potential and trends. The effect of measures which are currently planned, or in course of execution, should be taken into account. The consultant should make a critical assessment of the validity of the data on which the projections are based and should draw attention to any data whose reliability cannot be verified. Any exemptions and qualifications which are proposed, including thresholds, should be taken into account. Where necessary, the consultant may make estimates. The consultant should take the views of both Parties into account.Results should be presented as far as possible on the basis of common definitions and methodologies and in such a way as to enable any subsequent offers to be evaluated.CoverageThe study should cover procurement of goods and services, including public works, by:- central (federal) government (category A),- sub-central (State, regional and local) government (category B),- other entities, offered or requested by either Party, excluding telecoms (category C).Reports, timing and acceptanceThe study should result in two reports:- an intermediate report, setting out the issued to be examined, items in need of quantification, data availability and proposed methodology,- a final report setting out the results of the study.The draft intermediate report should be presented not later than two months from commencement of the study. The final report should be commenced only if both Parties are satisfied, on the basis of the intermediate report, that completion of the study would yield useful results.The draft final report should be presented not later than four months from acceptance of the intermediate report.Draft reports shall be considered final only after they have been accepted by both Parties.Dear Vice-President Brittan,In the context of our Memorandum of Understanding of ... May 1993 (MOU), I would like to describe to you the process the US Trade Representative's Office will undertake in accordance with Article 6 of the MOU between now and 31 January 1994 to seek the voluntary commitment of US subfederal entities to be included in the final entity lists.As we agreed, the immediate bilateral commitments to open our respective procurement markets contained in the MOU are a 'down payment` towards a final procurement agreement. The inclusion of subfederal entities in the US offer can only be accomplished after the results of our jointly-commissioned study are known. On this basis, we will be prepared to conclude a balanced comprehensive agreement on procurement.To this end, I will immediately initiate the following actions with regard to subfederal procurement:1. urge the 33 States from which we have already received preliminary commitments to provide final voluntary commitments; and2. press ahead with work to obtain voluntary commitments from:(a) the 17 States from which we currently have no commitment; and(b) major municipalities, defined as cities with populations exceeding 500 000 and other subfederal entities operating in or serving those municipalities.We will work with a view to obtaining final commitments in order to be in a position to submit our entity lists in time, so that the final phase of negotiations can start in January 1994. Any commitments by subfederal entities will be bound in legislation implementing a final procurement agreement.In addition, during this period, the US will consider ways in which, as part of a balanced agreement, federally-mandated measures affecting subfederal procurements would be removed in a timely manner. In the context of a balanced agreement, both sides would oppose the enactment of legislation that would render ineffective the bidding opportunities provided by that agreement.Sincerely,AmbassadorMICHAEL KANTORUS Trade Representative