1. Introduction to Contribution Agreements

1.1 EC Contribution Agreements with Entrusted Entities

In indirect management mode, the European Commission delegates budget implementation tasks to third entities to achieve a set of EU objectives, relying on their rules, systems, and procedures (e.g. the conduct of grant or procurement award procedures, the conclusion of contracts, their operational and financial management, audit, evaluation, etc.).

In accordance with the 2018 FR, indirect management is the default management mode for entrusting EU funds to pillar-assessed entities (e.g. International Organisations, Member States Organisations) outside of competitive procedures. Specific agreement models (e.g. Contribution Agreements) are to be used in this case.

1.2 Contribution Agreements in OPSYS

From the 01/02/2024, the management of Contribution Agreements in OPSYS is mandatory (see exceptions below), including Contribution Agreements processed via paper workflow and signature (QES/Blue ink).

As Entrusted Partner of the European Commission, you are able to sign (with or without e-signature) and manage your Contribution Agreements entirely from the Funding and Tender Opportunities Portal – the single entry point for all external partners of the EC.

To sign Contracts electronically, and apart from a valid PIC (Participant Identification Code), you will need to have a LEAR (Legal Entity Appointed Representative). Should you have any questions related to PIC registration/validation and LEAR appointment for your entrusted entity, please contact INTPA-PIC-MANAGEMENT@ec.europa.eu for support.

In the Funding and Tenders Portal, you will be able to manage information concerning your Organisation, and manage your Contracts, which includes e-signature, submission of deliverables (inception reports, progress reports, final reports, etc.), launch of amendments to your Contracts, and manage results and indicators.

Follow the dedicated online documentation below for all details on the management of Contributions Agreements in OPSYS.

Exceptions: Please note that the following Contribution Agreements are not yet managed in OPSYS:

• Contribution Agreements with Financial Instruments (CAFI)
• Contribution Agreements in foreign currency (other than in EUR)
• Contribution Agreements in direct management (including Calls for Proposals)
• Sensitive contracts (non-classified)

1.2.1 Which Contribution Agreements are managed in OPSYS

For the moment, standard Contribution Agreements in EUROS and without multi-partner signature (including Contribution Agreements with Blending) are managed in OPSYS through the electronic workflow and signature of the corresponding contract.

The following Contribution Agreements* are also managed in OPSYS (i.e. are internally prepared in the system), but use a paper workflow and signature (QES/Blue ink):

• Contribution Agreements with multi-partner signature

• Contribution Agreements with PIC linked to the LEF of the parent entity
• Contribution Agreements with European Bank of Reconstruction and Development (EBRD)
• Contribution Agreements with European Investment Bank (EIB)
• Administration Agreements with World Bank Group (WBG)

(*) The concerned Organisations will still need to be registered and have a validated PIC and nominate a PCoCo for each contract. If they wish to manage their contract deliverables through the Funding and Tenders Portal, they will need to appoint a LEAR for their Organisation. Possible amendments will also need to be prepared through the system, but as with the contract, the signature dates and ARES reference of the signed Contract will be entered in the system by the EC Operational Manager.

There is currently no change in the procedure for the following Contribution Agreements**, which are not yet managed in OPSYS:

• Contribution Agreements with Financial Instruments (CAFI)
• Contribution Agreements in foreign currency (other than in EUR)
• Contribution Agreements in direct management (including Calls for Proposals)
• Sensitive contracts (non-classified)

(**) No PIC is required for these concerned Organisations, but they are advised to register for a PIC, as progressively, all the above types of Contribution Agreements will be moved to OPSYS, and ongoing Contribution Agreements will be migrated to OPSYS in 2024.

1.2.2 Contribution Agreement Workflows

There are two types of workflows for the management of Contribution Agreements in OPSYS:

• Electronic workflow and signature
• Paper workflow and signature

Each workflow contains two tracks (external and internal) that represent the processes to be performed by the responsible role(s) in the system, and by either the external EC Partner (the Organisation), or internal EC Services (the Contracting Authority).

The diagram below illustrates the processes involved for the electronic workflow and signature of standard Contribution Agreements in OPSYS.

For Contribution Agreements using the paper workflow and signature (QES/Blue ink), the processes involved are similar (as illustrated below), except that no LEAR and legal and financial signatories need to be nominated in the system by the Organisation, as the signature of the Contribution Agreement will be performed outside of OPSYS. However, and during the negotiation stage (i.e. before the preparation of the contract), the representative of the Organisation will need to communicate the details of the PCoCo to the Contracting Authority. The PCoCo is responsible for all aspects relating to the management of the contract (once signed), including contract deliverables and amendments (if applicable), through the Funding and Tenders Portal.

The diagram below illustrates the processes involved for the paper workflow and signature of standard Contribution Agreements in OPSYS.

Please find below a table overview of the processes involved in the external workflow, including links to the corresponding sections (where relevant):

1.2.3 Important terms and definitions

The Funding and Tender Opportunities Portal is an EC corporate platform for partners to connect to our systems. Through this portal, partners can apply for EU funding, manage their proposals and contracts, including signature, submission of deliverables and reports, and start an amendment (if required).

A PIC is a 9-digit Participant Identification Code that all partners need to have to participate in a call for proposals or in a call for tenders with eSubmission, and for all the contracts that progressively will be manage in OPSYS, including Contribution Agreements from the 02/10/2023.

The LEAR (Legal Entity Appointment Representative) is an organisation role, which is responsible for keeping the data of the Organisation updated, and assigning a pool of legal signatories (Procurement LSIGN) for the Organisation – see more details below.

The PCoCo (Primary Coordinator Contact) is the main person responsible for a project/contract on the side of the Organisation. As such, they can submit requests, deliverables/reports, and notifications concerning the project/contract to the Commission on behalf of the Organisation. For Contribution Agreements, and during the negotiation stage (i.e. therefore before contract preparation), the PCoCo must be communicated by the representative of the Organisation to the Contracting Authority – see more details below.

Research Executive Agency Central Validation Services (REA CVS) - The European Research Executive Agency (REA), established under Commission Implementing Decision (EU) 2021/173 of 12 February 2021, is responsible for general administrative support services through the Central Validation Service. In this context, REA has been entrusted with the provision of centralised support services within the SEDIA framework specifically, carry out through the Central Validation Service the validation of legal entities, including natural persons, participating in grants and public procurement procedures, the assessment of ownership/control of participants for cases described in the basic acts of Horizon Europe, Digital Europe, EDIDP and EU Defence Fund, as well as registration of bank accounts and the preparation of the legal entities financial capacity assessment. REA CVS is therefore responsible for, in coordination with the legal and financial representatives of Organisations, PIC registration and validation, bank account verifications, etc. REA CVS will communicate with the Organisation (if required) via the messaging tool of the Organisation in the Funding and Tenders Portal > Manage My Area > My Organisation(s) > Messages.

The Legal Entity File (LEF) is a database that contains the records of all third parties, legal entities (LE), with whom the EC is in a contractual relationship. The LEF has been created to answer specific accounting needs. It allows defining the EC's accounting or financial position regarding those LE's. A LE must be validated before the EC signs a contract implementing the budget. Consequently, first a LE must be recorded, second the recording of a bank account (BA), and third the BA will be linked to the selected LE.

The Bank Account File (BAF) is the database containing all necessary banking details allowing a correct execution of payment instructions to beneficiaries.

The Contractor, as referred to in the system, is a general term used to represent the Organisation or its representatives by role, who manages all aspects of the contract for the Contribution Agreement in the system.

2. PIC Registration

The PIC registration is required for both the electronic and paper workflows and signature of Contribution Agreements in OPSYS.

A PIC is a 9-digit Participant Identification Code that all EC business partners need to have to participate in a call for proposals or call for tenders with eSubmission, and for all the contracts that progressively will be manage in OPSYS, including Contribution Agreements from the 02/10/2023.

If your Organisation does not yet have a PIC, please proceed as self-registrant to register your Organisation in the Participant Register:

https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/how-to-participate/participant-register

Additional resources:

• How to connect to the Funding and Tenders Portal
• How to register your Organisation through the participant register

3. Appointment of the LEAR

The LEAR appointment is optional for the paper workflow and signature of Contribution Agreements in OPSYS.

A LEAR (Legal Entity Appointment Representative) is an Organisational role in the system, which is responsible for keeping the data of the Organisation updated, and assigning a pool of legal signatories (Procurement LSIGN) for the Organisation – see more details below.

Following the registration of your Organisation and the creation of the PIC, and in parallel to the validation of your Organisation (i.e. PIC validation), the Central Validation Service (REA CVS) will request the appointment of a Legal Entity Appointed Representative (LEAR) for your Organisation.

Similarly to the validation of the PIC, the Organisation will receive a request (via the messaging tool of the Organisation’s account on the Funding and Tenders Portal) to submit the following documents:

1. The complete LEAR appointment letter and Roles and Duties of LEARs (3 pages document);
2. The Declaration of Consent to the EU Funding & Tenders Portal Terms & Conditions — completed, dated, and signed by your legal representative of the Organisation and then uploaded in the Participant Register;
3. Copy of the official, valid proof of identity for the legal representative and the legal entity appointed representative (identity document issued by the national authority containing the photo and signature of the holder, i.e. ID card, passport, etc.).

During the negotiation process of the Contribution Agreement, the EC Operational Manager will check the status of the PIC for the entity that they intent to sign the Contribution Agreement with, and verify whether the entity has appointed a LEAR (for the LEAR, the check is only required when electronic signature is the workflow to be used).

Without a LEAR, is not possible to sign electronically, given that it is the LEAR that assigns the legal and financial signatories for the Organisation.

Additional resources:

• Overview of User Roles and Permissions for the Funding and Tenders Portal
• Organisation Roles
• How to modify or update Authorised Users/LEAR of an Organisation
• How to assign or update Organisation Roles (e.g. Procurement LSIGN)

4. PIC Validation

The PIC validation is required for both the electronic and paper workflows and signature of Contribution Agreements in OPSYS.

The PIC (once created) needs to be validated by REA, and for this, the Organisation will need to upload the required documents via the Funding and Tenders Portal. The request for the upload of the required documents is send to the person that registered the Organisation (self-registrant), which is accessible via the messaging tool of the Organisation’s account on the Funding and Tenders Portal. REA CSV may request additional supporting documents in case of need, but the following are the documents requested by default:

1. Signed legal entity identification form;
2. Official VAT document or — if the entity is not registered for VAT — the proof of VAT exemption, not older than 6 months;
3. Law/Decree Extract;

The validation of the PIC takes place only once, and the LEAR is responsible for keeping the data of the Organisation updated.

For questions regarding validation of your PIC, LEAR appointment and LEF/BAF creation, please contact:

• DG INTPA – INTPA-PIC-MANAGEMENT@ec.europa.eu
• DG NEAR – NEAR-PIC-MANAGEMENT@ec.europa.eu
• FPI – FPI-PIC-MANAGEMENT@ec.europa.eu

5. Nominate Procurement LSIGN role

The nomination of Procurement LSIGN role is optional for the paper workflow and signature of Contribution Agreements in OPSYS.

Users with the Procurement Legal Signatory (Procurement LSIGN) role have the permissions to sign contracts (and amendments – if relevant) managed through the Funding and Tenders Portal on behalf of the organisation, so their role is relevent at organisation and project-level.

Users are nominated for the Procurement LSIGN role by the LEAR or an Account Administrator of the organisation.

An organisation can have an unlimited number of Procurement LSIGNs.

Important to note:

• If the orgaisation would need to restrict the signatory role for contracts and amendments, the Procurement LSIGN can nominate a CLSIGN to the contract (project-level) – also see assign the CLSIGN role below. The LEAR or Account Administrator of the organisation would therefore first need to nominate the Procurement LSIGN role to a user of the organisation beforehand (organisation-level).
• If a CLSIGN is nominated for a contract, the Procurement LSIGN(s) will no longer be able to sign the contract (and amendements – if relevant).
• If no CLSIGN is nominated for a contract, then all Procurement LSIGNs for the organisation will receive notifications for the contract (and amendements – if relevant).
• Only and any Procurement LSIGN of an organisation can nominate or revoke the CLSIGN user role.

Additional resources:

• Overview of User Roles and Permissions for the Funding and Tenders Portal
• Organisation Roles
• How to assign or update Organisation Roles Procurement LSIGN

6. Communicate the PCoCo role

The communication of the PCoCo role is required for both the electronic and paper workflows and signature of Contribution Agreements in OPSYS.

The PCoCo (Primary Coordinator Contact) is a project-level role, and is the main person responsible for a project/contract on the side of the Organisation. As such, they can submit requests, deliverables/reports, and notifications concerning the project/contract to the Commission on behalf of the Organisation. For Contribution Agreements, and during the negotiation stage (i.e. therefore before contract preparation), the PCoCo must be communicated by the representative of the Organisation to the Contracting Authority.

Consequently, the PCoCo must have an active EU Login account, and it is the details (full name and e-mail) of the PCoCo linked to this EU Login account that must be provided by the Organisation. With this information, the EC Operational Manager will assign the PCoCo to the contract during contract preparation process.

>> Please view the EU Login Guide for more information on the creation and activation of an EU Login account.

Additional resources:

• Overview of User Roles and Permissions for the Funding and Tenders Portal
• Project or Contract Roles

7. Assign CLSIGN role

The nomination of Contract Legal Signatory (CLSIGN) role is optional for the paper workflow and signature of Contribution Agreements in OPSYS.

Users with the Contract Legal Signatory (CLSIGN) role have the permissions to sign contracts (and amendments – if relevant) managed through the Funding and Tenders Portal on behalf of the organisation, so their role is relevent at project-level.

Users are nominated for the CLSIGN role by a Procurement LSIGN of the organisation.

An organisation can have one or more CLSIGNs per project/contract.

Important notes:

• The CLSIGN should be assigned to a user only if the orgaisation would need to restrict the signatory role for contracts and amendments. Otherwise, the Procurement LSIGN already has the required permissions to sign contracts (and amendments – if relevant).
• If a CLSIGN is needed, the LEAR or Account Administrator of the organisation would therefore first need to appoint the Procurement LSIGN role to a user of the organisation beforehand (organisation-level).
• If a CLSIGN is nominated for a contract, the Procurement LSIGN(s) will no longer be able to sign the contract (and amendements – if relevant).
• If no CLSIGN is nominated for a contract, then all Procurement LSIGNs for the organisation will receive notifications for the contract (and amendements – if relevant).
• Only and any Procurement LSIGN of an organisation can nominate or revoke the CLSIGN user role.

Additional resources:

• Overview of User Roles and Permissions for the Funding and Tenders Portal
• Project or Contract Roles
• How to assign or update Project or Contract Roles CoCo/CLSIGN

8. Contract Signature

The signature of the contract is applicable for both the electronic and paper workflows and signature of Contribution Agreements in OPSYS, but the process will differ between the two workflows.

8.1 Contract Signature for the Electronic workflow

For the electronic workflow and signature of Contribution Agreements, the contract is made available to the Contractor for e-signature via the Funding and Tenders Portal as soon as the contract has been prepared and authorised by the Contracting Authority. For the e-signature, the Contractor signs the contract first. Only a user that has either the Procurement LSIGN role, or CLSIGN role for the contract, can sign the contract.

>> Please view the step-by-step process for electronically signing contracts via the Funding and Tenders Portal.

8.2 Contract Signature for the Paper Workflow

For the paper workflow and signature of Contribution Agreements, the contract is made available to the Contractor for paper signature (QES/blue ink) as soon as the contract has been prepared and authorised by the Contracting Authority. For the paper signature, the Contracting Authority signs the contract first. Once the contract is signed by both parties, the signature dates and ARES reference of the signed Contract are entered in the system by the EC Operational Manager.

9. Pre-financing

Only if the Contribution Agreement has a pre-financing, the pre-financing payment (internal) process is initiated automatically once the contract is authorised and either signed electronically by both parties (for the electronic workflow and signature), or paper signed (QES/blue ink) by both parties and signature dates registered by the EC Operational Manager (for the paper workflow and signature).

No action is required in the system by the Contractor for the pre-financing payment process.

If there are any questions relating to pre-financing, the communication between the Contractor and Contracting Authority will be done by e-mail via their respective representatives.

10. Manage Deliverables

The management of deliverables is applicable for both the electronic and paper workflows and signature of Contribution Agreements in OPSYS.

Contractual deliverables are defined during the preparation of the contract. Following the approval and signature of the contract by both parties (i.e. Contractor and Contracting Authority), the Contracting Authority (following a prior agreement with the Contractor) sets the effective start date of the Contract in the system, and the implementation of the Contract begins.

OPSYS automatically updates the contractual deliverables (as defined with their indicative due dates during the contract preparation) with their effective due dates once the effective start date of the contract is known.

For the Contractor, any user with either the CoCo or PCoCo role for the contract can manage the contract deliverables.

The Contractor uploads and submits the required contractual deliverables, by the effective due dates and following the schedule of the contract as indicated in the Funding and Tenders Portal. The deliverables can then be commented and/or validated by the Contracting Authority. The Contractor has the sole responsibility to deliver the required deliverable(s). The Contractor must also ensure a quality control of the required outputs, before delivering them.

The management of contractual deliverables for Contractors is summarised as:

• The upload or revision of contractual deliverables;
• The approval of contractual deliverables;
• And if applicable, the amending of contractual deliverables.

>> For the complete online documentation, please view Contract Deliverables.

11. Contract Amendments

Contract Amendments for Contribution Agreements are always initiated, prepared, and managed via the system. However, the signature of the Amendment by both parties will be processed outside of the system for the paper workflow and signature. As for the contract and in the paper workflow, once the Amendment is signed by both parties, the signature dates and ARES reference of the signed Amendment will be entered in the system by the EC Operational Manager.

The are two types of workflows for the Amendment process:

• Amendments initiated by the Contractor;
• Amendments initiated by the Contracting Authority.

Following an agreement between the Contracting Authority and Contractor concerning Contract Amendments, it is recommended that the Contractor initiates the Amendment process. This ensures that the Contractor drafts and signs the proposed Amendment first, and allows the Contracting Authority to access and review whether the Amendment request fully reflects the agreement. To facilitate this approach, the Contractor initiated Amendment workflow includes the option for the Contractor to request an informal review of the Amendment request.

The below diagram represents an overview of the Amendment process and steps involved when initiated by the Contractor.

For the Contractor, any user with either the CoCo or PCoCo role for the contract can initiate (launch) the Amendment process. The Amendment process initiated by the Contractor is performed from the respective contract in the Funding and Tenders Portal. For the Contractor signature of the Amendment (only for the electronic workflow and signature), the Procurement LSIGN or CLSIGN for the contract is required to electronically sign the Contract Amendment in the system – also see Nominate Procurement LSIGN and Assign CLSIGN.

There is only one type of Amendment for Contribution agreements, an “Addendum”, and the Contractor will need to select the System Code corresponding to the Subject of Amendment (see table below), which represent the allowed modifications to the contract. Once the required Amendment system code is selected, the Contractor will be able to apply the requested modifications directly in the system and save.

Please follow the links below for a direct access to the corresponding steps for an Amendment to a Contribution Agreement (initiated by Contractor workflow):

1. Initiate (launch) an Amendment

2. Prepare the Amendment

• Compose the Draft Amendment
• Modify the Draft Amendment
• Request Informal Review
• Withdraw the Amendment - Cancel the Amendment

3. Sign and Submit the Amendment - Contractor

4. Awaiting Decision

5. Additional Information Request

>> For the complete online documentation, please view Contract Amendments.

12. Contract Closure

The closure of the contract is applicable for both the electronic and paper workflows and signature of Contribution Agreements in OPSYS.

The closure of a contract is an internal process in OPSYS, and therefore no action is required in the system by the Contractor. The closure of the contract can be initiated by the Contracting Authority from the Contract End Date (i.e. Contract End Date = Contract Start Date + Contract Duration).

If the closure of the contract is not initiated by the Contracting Authority within 8 months of the Contract End Date, the system will automatically launch the contract closure process and inform the responsible internal user to proceed with the contract closure.