Procurement Policy Office

(Established under section 4 of the Public Procurement Act 2006)

Ref: UG/SBD20/10/08

USER GUIDE

VOLUME II
(ANNEXES)

Procurement Policy Office

Ministry of Finance and Economic Empowerment
Port Louis
03 February 2009
 Table of Contents

APPENDICES

Appendix A: Public Procurement Act 2006 .. 3

Appendix B: Public Procurement Regulations 2008 .... 37

Appendix B1: Public Procurement (Suspension and Debarment Regulations) 67

Appendix C: Record of Procurement Action, with Forms and Instructions:

Open Advertised, Restricted, and Two-Stage Bidding . 72

Appendix D: Standard Bidding Documents:Ref.G/SBD1

Procurement of Goods ..... 88

Appendix E: Standard Bidding Documents:Ref.W/SBD7

Procurement of Works . 89

Appendix F: Standard Bidding Documents:Ref.W/SBDPLC6

Procurement of Large or Complex Works . . 90

Appendix G: Record of Procurement Action, with Forms and Instructions:

Request for Proposals ... 91

Appendix H: Standard Request for Proposals: Ref.SC/SBD19

Selection of Consultants . 102

Appendix I: Record of Procurement Action, with Forms and Instructions:

Request for Quotations. 103

Appendix J: Standard Bidding Documents:Ref.W/SBDPQLC5

Prequalification of Large or Complex Works ... ... 110

Appendix K: Objectives and Principle of Green Procurement .. 111

Appendix L: Type of Contracts . 113

 Appendix A

THE PUBLIC PROCUREMENT ACT 2006

Act No. 33 of 2006

I assent

SIR ANEROOD JUGNAUTH

President of the Republic
27th December 2006
________

ARRANGEMENT OF SECTIONS

Section

PART I - PRELIMINARY
1. Short title
2. Interpretation
3. Application of Act

PART II - PROCUREMENT POLICY OFFICE

4. Procurement Policy Office
5. Staff of Policy Office
6. Policymaking responsibility
7. Functions of Policy Office

PART III - CENTRAL PROCUREMENT BOARD

8 Central Procurement Board
9. Secretary of the Board
10. Staff of the Board
11. Functions of the Board
12. Powers of the Board
13. Meetings of the Board
14. Procedure of the Board

PART IV - PROCUREMENT METHODS

15. Choice of procurement method
16. Open advertised bidding method
17. Open national bidding
18. Open international bidding
19. Restricted bidding
20. Request for sealed quotations
21. Emergency procurement
22. Community and end-user participation
23. Departmental execution
24. Request for proposals
25. Direct procurement

PART V - THE BIDDING PROCESS

26. Application of Part V
27. Prequalification proceedings

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28. Bidding documents
29. Two-stage bidding
30. Bid security
31. Submission of bids
32. Deadline for the submission of bids
33. Withdrawal and modification of bids
34. Bid validity period
35. Disqualification of bidders and suppliers
36. Opening of bids
37. Examination and evaluation of bids
38. Post-qualification
39. Cancellation of bidding process
40. Award of procurement contracts
41. Debriefing of unsuccessful bidders
42. Auditor's Certificate

PART VI - CHALLENGE AND APPEAL

43. Challenge
44. Independent Review Panel
45. Right of review

PART VII - PROCUREMENT CONTRACTS

46. Contents of contracts
47. Payment
48. Termination and breach

PART VIII-PROCUREMENT INTEGRITY

49. Artificial division
50. Duties of public bodies
51. Conduct of public officials
52. Conduct of bidders and suppliers
53. Suspension and debarment of bidders and suppliers

PART IX - MISCELLANEOUS
54. Oath of office
55. Disclosure of interest
56. Declaration of assets
57. Funds
58. Undue influence
59. Immunities
60. Offences
61. Regulations
62. Repeal
63. Consequential amendments
64. Transitional provisions
65. Commencement

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 _________

AN ACT
To provide for the basic principles and procedures to be applied
in, and regulate, the public procurement of goods, public
works, consultant services, and other services and for the
institutions responsible for those matters

ENACTED by the Parliament of Mauritius, as follows -

PART I - PRELIMINARY
1. Short title

This Act may be cited as the Public Procurement Act 2006.

2. Interpretation

In this Act -

"bid" includes a proposal submitted in response to a request issued pursuant to section 24;

"bidder" means a participant or potential participant in procurement proceedings;

"bidding document" -

(a) means any document issued by a public body on the basis of which bidders prepare
bids; and

(b) includes any document which contains instructions to bidders, specification, maps,
designs, terms of reference, work schedules, evaluation criteria, bills of quantities,
conditions of contract or other similar items;

"bid security" means the security instrument required to ensure that a bid will remain valid
during the period stated in the bidding document;

"Board" means the Central Procurement Board established by section 8;

"Chairperson" means the Chairperson of the Board or of the Review Panel, as the case may
be;

"challenge" means a challenge made pursuant to sections 24, 40 or 43;

"consultant" means a person under contract to provide consultancy services to a public body
in relation to a procurement contract;

"consultancy services" means services of an intellectual and advisory nature, not incidental to
the supply of goods or to the execution of works, such as design, supervision, training,
analysis, auditing, software development, and similar services;

"contractor" means a person who has entered into a procurement contract with a public body;

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"donor organisation" means an organisation based outside Mauritius which provides, or joins
in providing, grants, credits or loans to the Government or its agencies;

"exempt organisation" means a body which is, by regulations, excluded from the application
of this Act;

"goods" means objects of every kind and description including commodities, raw materials,
manufactured products and equipment, industrial plant, objects in solid, liquid or gaseous
form, electricity, as well as services incidental to the supply of the goods such as freight and
insurance;

"local authority" -
(a) has the same meaning as in the Local Government Act; and
(b) includes the Rodrigues Regional Assembly;

"major contract" means a contract for the procurement of goods or services or the execution
of works -
(a) to which a public body is or proposes to be a party; and

(b) the estimate of the fair and reasonable value of which exceeds the prescribed amount;

"member"

(a) means a member of the Policy Office, the Board or the Review Panel, as the case may
be; and

(b) includes the Director, or the Chairperson of the relevant body, as the case may be;

"Minister" means the Minister to whom responsibility for the subject of finance is assigned;

"officer" means a person who is assigned to, or employed by, the Policy Office, the Board or
the Review Panel;

"other services" means any services other than consultancy services or services incidental to
the supply of goods or the execution of works;

"Policy Office" means the Procurement Policy Office established under section 4;

"prescribed amount" means the amount specified in column 3 of the Schedule corresponding
to the public body specified in column 1 in relation to the type of contract specified in column
2 of that Schedule.

"procurement" means the acquisition by a public body by any "contractual means of goods,
works, consultant services or other services;

"procurement contract" means a contract between a public body and a supplier, contractor or
consultant resulting from procurement proceedings;

"public body" -

(a) means any Ministry or other agency of the Government;

(b) includes -

(i) a local authority;

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 (ii) a parastatal body; and

(iii) such other bodies specified in the Schedule; but

(c) does not include an exempt organisation;

"public official" means

(a) an officer;

(b) a supplier, contractor or consultant or any of their agents; and

(c) a public officer or other person employed by a public body;

"responsive" in relation to a bid, means responsive to the basic requirements of a bid

regarding ability to perform and complete on time;

"Review Panel" means the Independent Review Panel established under section 44;

"supplier" means a person delivering goods, works, consultancy services or other services;

"Vice Chairperson" means either of the two Vice-Chairpersons of the Board; and

"works" means any work associated with the construction, reconstruction, demolition, repair
or renovation of a building, structure or works, such as site preparation, excavation, erection,
building, installation of equipment or materials, decoration and finishing, as well as services
incidental to construction such as drilling, mapping, satellite photography, seismic
investigations and similar services.

3. Application of Act

(1) Notwithstanding any other enactment, this Act does not apply to procurement
undertaken to protect national security or defence, where -

(a) the Prime Minister so determines by notice in the Gazette; and

(b) the procurement is undertaken by the most competitive method of

procurement available in the circumstances.

(2) This Act applies to any other procurement effected by a public body.

(3) Where any provision of this Act conflicts with the procurement rules of a donor
organisation, the application of which is mandatory pursuant to an obligation entered into by
Mauritius under any treaty or other form of agreement, those rules shall prevail.

(4) This Act shall bind the State.

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 PART II - PROCUREMENT POLICY OFFICE

4. Procurement Policy Office

(1) There shall be a Procurement Policy Office in the Ministry, which shall be
administered by a Director and 2 other independent persons appointed by the President of the
Republic, acting in accordance with the advice of the Prime Minister tendered after the Prime
Minister has consulted the Leader of the Opposition on such terms and conditions as may be
determined by the Prime Minister.

(2) The persons referred to in subsection (1) shall be appointed for a 3-year term and
shall be eligible for re-appointment for one additional term.

(3) The President shall, on the advice of the Prime Minister, at any time terminate the
appointment of a member who has been guilty of -

(a) any misconduct, default or breach of trust in the discharge of his duties;

(b) an offence of such nature as renders it desirable that his appointment should
be terminated.

5. Staff of Policy Office

(1) The Policy Office shall appoint on contract terms and conditions its professional staff
composed of persons of high integrity and substantial experience in the field of procurement, with a
strong background in legal, financial and administrative matters.

(2) The Head of the Civil Service shall designate such public officers as may be required
to assist the Policy Office and every person so designated shall be under the administrative control of
the Director.

6. Policymaking responsibility

(1) The Policy Office -

(a) shall serve as an independent procurement policy making and monitoring

body;

(b) shall not in any way be operationally involved in conducting procurement

proceedings or resolving procurement disputes; and

(c) may request information from, and consult with, the Board, the Review
Panel, or any public body in the development of procurement policy for the
Government.

(2) In the exercise of its functions the Policy Office shall act without fear or
favour and shall not be subject to the direction or control of any other person or authority.

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7. Functions of Policy Office

The Policy Office shall -

(a) issue instructions to public bodies concerning the coordination of their actions with
the Policy Office, the Board and the Review Panel;

(b) formulate policies relating to procurement, including directives, procedures,

instructions, technical notes and manuals, for the implementation of this Act;

(c) issue standard forms of contracts, bidding documents, pre-qualification documents,

requests for proposals and other similar documents for mandatory use by every public
body implementing procurement;

(d) collect from the Board, the Review Panel and public bodies information on
procurement activities and monitor their compliance with this Act;

(e) recommend, and facilitate the implementation of, measures to improve the
functioning of the procurement system, including the introduction of information and
communications technology and the dissemination of publications and the setting up
of websites dedicated to procurement;

(f) prepare and conduct training programmes for public officials, contractors and
suppliers concerning procurement;

(g) solicit the views of the business community on the effectiveness of the procurement
system;

(h) present an annual report to the Minister regarding the overall functioning of the
procurement system;

(i) communicate and cooperate with international institutions and other foreign entities
on matters of procurement;

(j) advise on and monitor foreign technical assistance in the field of procurement;

(k) advise the Financial Secretary regarding delegation of financial authority to public
officers enabling them to approve contract awards and changes to contracts of a
financial nature and the annual review of such delegations; and

(l) perform such other functions as may be assigned to it by the Financial Secretary.

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 PART III - CENTRAL PROCUREMENT BOARD

8. Central Procurement Board

(1) There is established a Central Procurement Board, which shall be a body corporate, to
be responsible for the approval of the award of major contracts by public bodies and which shall
consist of -

(a) a Chairperson;

(b) 2 Vice-Chairpersons; and

(c) 3 other persons,

having wide experience in legal, administrative, economic, financial, engineering, scientific or

technical matters and appointed by the President of the Republic, acting in accordance with the advice
of the Prime Minister tendered after the Prime Minister has consulted the Leader of the Opposition, on
such terms and conditions as may be determined by the Prime Minister.

(2) Every member shall hold office for a period not exceeding 3 years and shall be
eligible for re-appointment for one additional term.

(3) The President shall, on the advice of the Prime Minister, at any time terminate
the appointment of a member who has been guilty of -

(a) any misconduct, default or breach of trust in the discharge of his duties;

(b) an offence of such nature as renders it desirable that his appointment should
be terminated.

(4) The Board may co-opt other persons capable of assisting it with expert advice but no
such person shall have the right to vote on any matter considered by the Board.

9. Secretary of the Board

There shall be a Secretary of the Board who shall be a public officer and shall be entitled to
attend the meetings of the Board and participate in its deliberations, but shall not have the right to
vote.

10. Staff of the Board

(1) The Board shall, in the conduct of its business, be assisted by such public
officers as may be designated by the Head of the Civil Service or by such persons as may be
appointed by the Board under contract terms and conditions.

(2) Every person referred to in subsection (1) shall be under the administrative control of
the Chairperson.

11. Functions of the Board

(1) The Board shall, in respect of major contracts -

(a) establish appropriate internal procedures for the operations of the Board and
ensure compliance with them;

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 (b) vet bidding documents and notices submitted to it by public bodies;

(c) receive and publicly open bids;

(d) select persons from a list of qualified and independent evaluators maintained
by it to act as members of a bid evaluation committee and oversee the
examination and evaluation of bids; and

(e) review the recommendations of a bid evaluation committee and -

(i) approve the award of the contract; or

(ii) require the evaluation committee to make a fresh or further

evaluation on specified grounds.

(2) The Board shall strive to achieve the highest standards of transparency and equity in
the execution of its duties, taking into account -

(a) the evaluation criteria and methodology disclosed in the bidding documents;

(b) the qualification criteria and methodology disclosed in the bidding

documents;

(c) equality of opportunity to all bidders;

(d) fairness of treatment to all parties;

(e) the need to obtain the best value for money in terms of price, quality and
delivery, having regard to set specifications; and

(f) transparency of process and decisions.

(3) The Board shall have such powers, and exercise such functions, as may be assigned
to it under any other enactment.

*11A. Award of public-private partnership project

Notwithstanding the provisions of this Act, the Board

(a) shall approve all documents relating to the bid;

(b) shall authorise, approve and carry out pre-selection exercises;

(c) shall authorise, the advertisement, invitation locally or internationally, as the

case may be, and call for bids;

(d) shall examine and evaluate bids; and

(e) may approve the award,

of a public-private partnership project in the manner provided for under the Public-Private
Partnership Act 2004.

* (New Section 11A added as per Finance Act July 2008)

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12. Powers of the Board

(1) In the discharge of its functions, the Board may -

(a) call for such information and documents as it may require from any public
body;

(b) examine such records or other documents and take copies or extracts from
them;

(c) commission any studies relevant to the determination of the award of major
contracts;

(d) request any professional or technical assistance from any appropriate person
in Mauritius or elsewhere;

(e) do all such acts and things as it may consider incidental or conducive to the
exercise of its functions.

(2) Any person to whom a request is made under subsection 1(a) and who fails to comply
with the request, or willfully gives any false or misleading answer to any question lawfully put by the
Board, shall commit an offence.

(3) Where -

(a) any variation in a contract price subsequent to the conclusion of a

procurement contract entered into by a public body causes the total contract
amount to exceed the prescribed amount by more than 20 per cent; or

(b) the lowest bid submitted in response to an invitation made by a public body
exceeds the prescribed amount,

the matter together with all the bidding documents and the contract documents, if any, shall be
referred to the Board for approval.

(4) Where it comes to the knowledge of the Board that a contract has been awarded or is
about to be awarded in breach of this Part, the Board shall forthwith report the matter to the Head of
the Civil Service, with a copy to the Director, recommending such action as it may deem appropriate.

(5) The Head of the Civil Service may, where he considers appropriate, refer any matter
reported to him under subsection (4) to the Police for enquiry.

13. Meetings of the Board

(1) The Board shall meet as often as is necessary and at such time and place as the
Chairperson deems fit.

(2) Everything authorised or required to be done by the Board shall be decided by simple
majority of the members present and voting.

(3) In the absence of the Chairperson at any meeting, the other members shall designate
one of the 2 Vice-Chairpersons to preside over the meeting.

(4) At any meeting of the Board -

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 (a) except where the Board meets for the purpose of opening bids, no person
other than a member or a person referred to in section 8 (1) shall be present;

(b) the Chairperson or one of the 2 Vice-Chairpersons and 2 other members shall
constitute a quorum; and

(c) each member shall have one vote on the matter in question and, in the event
of an equality of votes, the person chairing the meeting shall have a casting
vote.

(5) Where a member does not, for good cause, attend a meeting of the Board, the
Secretary shall forthwith communicate to him the gist of every decision taken at the meeting, and he
may, within 24 hours, request the Chairperson to reconvene the Board so as to reconsider the decision.

(6) Subject to this section, the Board shall conduct its proceedings in such manner as it
thinks fit.

14. Procedure of the Board

(1) The Chief Executive Officer of a public body shall inform the Board in writing of any
major contract that the public body intends to enter into and shall submit all the relevant documents to
the Board.

(2) The Board shall, within such time as may be prescribed after having been notified in
accordance with subsection (1), authorise the public body to call for bids or utilise another appropriate
procurement method.

(3) The Board shall approve the award of every major contract.

(4) No public body shall -

(a) advertise, invite, solicit or call for bids in respect of a major contract unless
authorised by the Board; or

(b) award a major contract unless the award has been approved by the Board.

(5) No person shall sign a major contract with a public body unless the award has
been approved by the Board.

PART IV - PROCUREMENT METHODS

15. Choice of procurement method

(1) Subject to subsection (2), the choice of procurement methods available to a public
body shall be -

(a) for the procurement of goods, other services and works, by -

(i) open advertised bidding;

(ii) restricted bidding;

(iii) request for sealed quotations;

(iv) direct procurement;

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 (v) community or end-user participation; or

(vi) departmental execution; and

(b) for the procurement of consultancy services, by -

(i) request for proposals on the basis of

(A) quality and cost;

(B) quality alone;

(C) quality and fixed budget; or

(D) least cost and acceptable quality; or

(ii) direct procurement.

(2) (a) Except in the cases referred to in paragraph (d), procurement shall, in the case
of goods, other services or works, be made by means of open advertised
bidding, to which equal access shall be provided to all eligible and qualified
bidders without discrimination.

(b) Open advertised bidding proceedings may include a prequalification stage, or

post qualification procedures, before selection of the winning bidder.

(c) Open advertised bidding proceedings shall be carried out in a single stage or
in two stages in the cases referred to in section 29.

(d) A method of procurement referred to in subsection (1) (a) (ii) to (vi) may be
used only if the public body has reason to believe that open advertised
bidding -

(i) will not be efficient or practical for the procurement in question; or

(ii) will be too costly to apply given the value of the procurement.

(e) Where a public body uses a method of procurement other than open
advertised bidding or, in the case of the procurement of consultancy services,
a method other than one specified in subsection (1)(b)(i), it shall note in the
record of the procurement proceedings the ground for the choice of the
procurement method.

16. Open advertised bidding method

Where the open advertised bidding method is used, the invitation to bid, or the invitation to
pre-qualify, shall be published in a national newspaper with wide circulation and, in the case of
international bidding, in selected international media with wide circulation as well.

17. Open national bidding

A public body may limit participation in open advertised bidding proceedings to citizens of
Mauritius or entities incorporated in Mauritius only where such limitation is stated in the invitation to
bid or, for prequalification, in the bidding documents and is otherwise in accordance with such criteria
as may be prescribed.

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18. Open international bidding

(1) Open advertised international bidding shall be used where -

(a) the estimated value of the procurement exceeds the prescribed threshold;

(b) the goods, works or other services are not available under competitive price
and other conditions from more than one supplier in Mauritius; or

(c) there is no response to open national bidding and the goods, other services or
works must be obtained from international bidders.

(2) A public body may, in appropriate cases and subject to any regulations to that effect,
confer an advantage or preference to domestic or regional goods, services or contractors in the case of
open international bidding proceedings.

19. Restricted bidding

(1) Restricted bidding may be used -

(a) where a public body has reason to believe that the goods, other services or
works are only available from a limited number of bidders;

(b) where the time and cost of considering a large number of bids is
disproportionate to the value of the procurement, having regard to such
thresholds as may be prescribed; or

(c) by limiting the participation in a particular procurement to those suppliers

included on pre- approved supplier eligibility lists drawn up and maintained
by the public body, in such manner as may be prescribed, so as to ensure that
suppliers of specialised goods and services have and maintain the necessary
technical and financial capability to provide them.

(2) (a) Where restricted bidding is used on the ground referred to in subsection
(1)(a), all known suppliers capable of supplying the goods, other services or
works shall be directly solicited.

(b) Where restricted bidding is used on the ground referred to in subsection

(1)(b), the public body shall, as far as reasonably possible, directly solicit
bids from a minimum of 5 bidders.

20. Request for sealed quotations

(1) The request for sealed quotations method shall only be used for the procurement of -

(a) readily available commercially standard goods not specially manufactured to

the particular specifications of the public body;

(b) small works; or

(c) small other services,

where the estimated value of the procurement does not exceed the prescribed threshold*.

*(prescribed amount replaced by prescribed threshold as per Finance Act July 2008)

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 (2) Sealed quotations shall be requested in writing from not less than 3 bidders, unless
the item in question is not available from 3 suppliers.

(3) The request shall contain a clear statement of the requirements of the public body as
to quality, quantity, terms and time of delivery and other special requirements, together with such
other information as may be prescribed.

(4) Each bidder may submit one sealed quotation, which may not be altered or
negotiated.

21. Emergency procurement

(1) A public body may purchase goods, other services or works from a single supplier
without competition in cases of extreme urgency.

(2) The scope of the emergency procurement shall as far as possible be limited to the
period of the emergency, so that appropriate competitive procurement methods may be utilised at the
conclusion of the emergency period.

(3) For the purposes of this section, "extreme urgency" includes a situation wherein -

(a) the country is either seriously threatened by or actually confronted with a

disaster, catastrophe, war or Act of God;

(b) life or the quality of life or environment may be seriously compromised;

(c) the condition or quality of goods, equipment, building or publicly owned

capital goods may seriously deteriorate unless action is urgently and
necessarily taken to maintain them in their actual value or usefulness; and

(d) an investment project may be seriously delayed for want of an item of a

minor value.

22. Community and end-user participation

Where the participation of the procurement end-user or beneficiary community may result in
enhancing the economy, quality or sustainability of the service to be procured, or the very objective of
the project is to create employment and involvement of the beneficiary community, such end-user or
community may participate in the delivery of services in accordance with such procedure as may be
prescribed.

23. Departmental execution

In the case of works which are carried out with government resources, procurement may be
effected by the public body itself where one or more of the following conditions are present, namely
where -

(a) an activity is not likely to attract bidders, at least not at a reasonable price, in view of
its size, nature, location or scattered location or financing or high mobilisation costs
for outside suppliers;

(b) an activity is such that, if carried out by a contractor, it would impose an unacceptable
risk on the contractor because the cost cannot be determined in advance;

(c) the risk of unavoidable work interruptions is better borne by the public body than by a
contractor;

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 (d) it has been demonstrated that departmental execution is the only practical method for
construction, maintenance and conservation works under special circumstances;

(e) an activity for a pilot project of a particular nature for the development of a
technology work method cannot be carried out by a contractor;

(f) works must be carried out without disrupting existing operations by the public body's
staff because they are familiar with those operations; or

(g) there is an emergency such as a natural disaster which calls for immediate action.

24. Request for proposals

(1) Where, in respect of consultancy services, the request for proposals method is used,
the public body shall draw up a shortlist of consultants, to ensure effective competition, from among
those who have the capacity to perform the required services.

(2) (a) Where the estimated value of the procurement exceeds the prescribed
threshold, the public body shall, in order to draw up the shortlist, seek
expressions of interest by publishing a notice in a national newspaper of wide
circulation and include in the list those who have expressed interest in the
procurement.

(b) Where the estimated value of the contract does not exceed the prescribed
threshold, the shortlist may be drawn up on the basis of the public body's own
knowledge and information.

(3) The public body shall issue a request to the short-listed consultants, asking them to
confirm their interest by submitting a proposal, which shall include such information as may be
prescribed that enables them to participate in the procurement proceedings and to submit proposals
that are responsive to the needs of the public body.

(4) The selection of the successful proposal shall be based on -

(a) the technical quality of the proposal, the consultant's relevant experience, the
expertise of his key staff, the proposed work methodology, as well as the
price of the proposal;

(b) the quality of the technical proposal submitted within a predetermined fixed
budget;

(c) the best financial proposal submitted by the candidates having obtained an
acceptable technical score pre-disclosed in the request for proposals; or

(d) where the services are of an exceptionally complex nature or likely to have
considerable impact on future projects or national economy or may lead to
the submission of proposals with prices which are not comparable,
exclusively on the technical quality of the proposal.

(5) The public body shall evaluate each technical proposal on the basis of criteria which
shall include -
.
(a) the consultant's relevant experience for the assignment;

(b) the quality of the methodology proposed;

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 (c) the qualifications of the key staff proposed;

(d) transfer of knowledge, if required in the request for proposals; and

(e) in the case of international competition, the extent of participation by

nationals among key staff in the performance of the assignment.

(6) The financial proposals of bidders who have secured the minimum pass mark in the
technical evaluation shall then be considered and evaluated by the public body after a public
announcement of the results of the technical evaluation.

(7) Where the choice of consultancy services is made in accordance with section
15(1)(b)(i)(A), (C) or (D), the financial proposals of all consultants whose technical proposals attained
the required minimum pass mark shall be read out to the bidders who wish to attend, in accordance
with the prescribed procedure.

(8) Where the choice of consultancy services is made in accordance with section
15(1)(b)(i)(B) only the financial proposal of the consultant whose technical proposal achieved the
highest ranking shall be evaluated.

(9) (a) The contract may be negotiated with the winning consultant with regard to
the terms of the request for proposals, the scope of the proposed services,
deliverables, progress reports, facilities to be provided by Government and,
subject to paragraph (b), the financial proposal.

(b) Where price has been a factor the fee for services shall not be subject to
negotiation and only the cost of reimbursable items may be negotiated in
such manner as may be prescribed.

(c) Where the negotiations fail to result in an acceptable contract, the public
body shall notify the consultant accordingly and proceed to the next ranked
bidder, and so on.

(10) The consultant whose bid attains the highest score, in accordance with the criteria and
selection method set forth in the request for proposals, or the one with the least cost in the case of the
least cost method of selection, shall be selected for award, subject to satisfactory conclusion of
negotiations.

(11) The public body shall notify the successful consultant of its selection for award and
shall simultaneously notify all other short-listed consultants of the decision.

(12) In the absence of a challenge by any other consultant within 15 days of a notice under
subsection (11), the contract shall be awarded to the successful consultant indicated.

25. Direct procurement

(1) The direct procurement method allows a public body to purchase goods, other
services or works from a single source without competition.

(2) Direct procurement is permitted -

(a) where the value of the procurement does not exceed the prescribed threshold;

18
 (b) where only one supplier has the exclusive right to manufacture the goods,
carry out the works, or perform the services to be procured, and no suitable
alternative is available;

(c) within the prescribed limits, for additional deliveries of goods by the original
supplier which are intended either as partial replacement or extension for
existing goods, services, or installations and where a change of supplier
would compel the public body to procure equipment or services not meeting
requirements of interchangeability with already existing equipment or
service;

(d) within the prescribed limits, where additional works, which were not
included in the initial contract have, through unforeseeable circumstances,
become necessary and the separation of the additional works from the initial
contract would be difficult for technical or economic reasons;

(e) where the nature of the consultancy services requires that a particular
consultant be selected due to unique qualifications; or

(f) where continuity of consultancy services is essential to meet the objectives of

the consultancy assignment.

PART V - THE BIDDING PROCESS

26. Application of Part V

(1) Subject to subsection (2), this Part shall apply to bids for every procurement contract.

(2) (a) Section 40 shall apply to bids for major contracts subject to section 14.

(b) Sections 37 and 39 shall not apply to bids for major contracts.

27. Prequalification proceedings

(1) Prequalification shall be effected for the procurement of large or complex works.

(2) In other cases of particularly high value or complex procurement, such as industrial
plant, a public body may engage in prequalification proceedings, with a view to identifying bidders
that are qualified, before the invitation to bid.

(3) Where prequalification proceedings are held, the public body shall provide
prequalification documents to all bidders responding to the invitation to pre-qualify, so as to provide
them with the information required to prepare and submit applications for prequalification.

(4) On the completion of prequalification proceedings, the public body shall promptly
make available to each applicant a list of the applicants who have been successfully pre-qualified.

28. Bidding documents

A public body shall provide the bidding documents to all bidders that respond to an invitation
to bid or, if prequalification proceedings have taken place, to all bidders that have been pre-qualified.

19
29. Two-stage bidding

(1) Open advertised bidding may be held in two stages where -

(a) it is not feasible to fully define the technical or contractual aspects of the procurement
to elicit competitive bids; or

(b) because of the complex nature of the goods, other services or works to be procured,
the public body wishes to consider various technical or contractual solutions, and to
discuss with bidders the relative merits of those variants before deciding on the final
technical specifications and contractual conditions.

(2) In the first stage, the bidding documents shall

(a) outline -

(i) the purpose;

(ii) the expected performance;

(iii) the broad specifications of the equipment or works to be procured;

and

(iv) the qualifications required to perform the contract; and

(b) call upon bidders to submit technical bids without a bid price and their
comments on the proposed contract conditions.

(3) The public body may engage in discussions with any bidder with a view to
understanding a technical bid or to indicating changes required to make it acceptable and
seeking the bidder's willingness to make such changes.

(4) At the end of the first stage, the public body may -

(a) reject those bids which do not, and cannot be changed to, meet the basic
requirements, minimum performance, or required completion time or have
any other weakness which makes the bid substantially non responsive; or

(b) modify the technical specifications, evaluation criteria, and contract

conditions in order to maximise competition and articulate appropriate
evaluation methodology in order to consider various options put forth by the
bidders.

(5) In the second stage, the public body shall invite bidders whose bids have not been
rejected to submit final bids with prices to the revised bidding documents.

30. Bid security

(1) A public body shall, where applicable and in such manner as may be prescribed,
include in the bidding documents the requirements for bid security.

(2) Forfeiture of bid security shall be imposed by the public body only in the event of -

(a) a modification or withdrawal of a bid after the deadline for submission of

bids during its period of validity;

20
 (b) refusal by a bidder to accept a correction of an error appearing on the face of
the bid;

(c) failure by a successful bidder to sign a procurement contract in accordance

with the terms set forth in the bidding documents; or

(d) failure by a successful bidder to provide security for the performance of the
procurement contract if required to do so by the bidding documents.

31. Submission of bids

(1) Subject to this section, a bid shall be submitted in writing, duly signed and in a
sealed envelope at the address specified in the bidding documents.

(2) Invitations for prequalification and bidding documents may contain provision that
allows submission of applications to pre-qualify or bids by hand or mail or by courier at the option of
the bidder.

(3) The bidding documents may authorise other methods for the submission of bids
where it is so prescribed.

32. Deadline for the submission of bids

(1) A public body shall set a deadline for the submission of bids, applications for
prequalification and expressions of interest so as to allow sufficient time for their preparation and
submission, with a view to maximising competition, which shall not be less than such minimum
period as may be prescribed.

(2) A bid in a sealed envelope received after the deadline for submission shall be
returned unopened to the bidder.

33. Withdrawal and modification of bids

A bidder may modify, substitute, or withdraw its bid after submission, where the written
notice of the modification, substitution or withdrawal is received by the public body before the
deadline for the submission of bids.

34. Bid validity period

(1) Every bid shall remain valid for the period of time indicated in the bidding documents
which shall not be more than 180 days.

(2) The validity period of a bid may be extended only with the agreement of the bidder
concerned.

(3) A bidder who agrees to an extension of the validity period of his bid shall also furnish
a corresponding extension of his bid security, if security was required for the original bid submission.

35. Disqualification of bidders and suppliers

(1) Every public body shall ensure that no disqualified supplier, contractor or consultant
is permitted to receive a procurement contract or otherwise participate in procurement proceedings.

(2) The Policy Office shall, by regulations, make provision concerning the
disqualification standards and procedures for suppliers, contractors and consultants.

21
36. Opening of bids

(1) Every bid shall be opened at the time and place indicated in the bidding documents.

(2) The time of bid opening shall coincide with the deadline for the submission of bids,
or follow immediately thereafter, if this is necessary for logistic reasons.

(3) Every bidder or his representative shall be authorised to attend the bid opening.

(4) The name of the bidder, the total amount of each bid, any discount or alternative
offered, and the presence or absence of any bid security, if required, shall be read out and recorded,
and a copy of the record shall be made available to any bidder on request.

(5) No decision regarding the disqualification or rejection of a bid shall be taken or

announced at the bid opening session.

37. Examination and evaluation of bids

(1) A public body may seek clarification during the examination of bids from any bidder
to facilitate evaluation, but it shall neither ask nor permit any bidder to change the price or substance
of his bid.

(2) A public body shall, in order to evaluate bids, set up a bid evaluation committee,
selected from a list of qualified and independent evaluators maintained by it.

(3) Following the opening of bids, a public body shall -

(a) examine the bids in order to determine whether they are complete and in
accordance with the bidding documents; and

(b) ascertain whether -

(i) they are properly signed; and

(ii) the documents required to establish their legal validity and the
required security have been furnished.

(4) Where a prequalification procedure is applicable, a bid received from an entity other
than a pre-qualified bidder shall be rejected.

(5) Where a bid discloses an arithmetical error, the error shall be corrected and the bidder
notified.

(6) Where there is a discrepancy between figures and words, the amount in words shall
prevail, and the mistake shall be corrected and the bidder notified.

(7) Where a bidder refuses to accept a correction made pursuant to subsection (5) or (6)
his bid shall be rejected and the bid security forfeited in accordance with section 30(2)(b).

(8) Where there is a minor deviation in any bid that did not warrant rejection of the bid at
an earlier stage, such minor variation shall be quantified in monetary terms, as far as possible.

22
 (9) Every bid shall be evaluated according to the criteria and methodology set out in the
bidding documents and the evaluated cost of each bid shall be compared with the evaluated cost of
other bids to determine the lowest evaluated bid.

* (9A) Where the bidding documents provide for a margin of preference to domestic
suppliers or to domestic small and medium enterprises, the applicable margin of preference
shall be at the rate determined by the Policy Office.

(10) Where a prequalification procedure is applicable, the qualifications of the lowest

evaluated bidder shall be verified anew to take account of any change since the original
prequalification.

(11) The bid evaluation committee shall prepare an evaluation report detailing the
examination and evaluation of bids and identifying the lowest evaluated bid that meets the
qualification criteria.

(12) In the exercise of its function, the bid evaluation Committee shall act without fear or
favour and shall not be subject to the direction or control of any other person or authority

38. Post-qualification

(1) Where there was no prequalification procedure, the qualifications of the lowest
evaluated substantially responsive bidder shall be checked against the criteria specified in the bidding
documents.

(2) Where the bid fails to conform to those criteria, the bid shall be rejected and the same
check shall be applied to the next ranked bid.

39. Cancellation of bidding process

(1) A public body may, at any time prior to the acceptance of a bid, reject all bids, or
cancel the public procurement proceedings where -

(a) all the bids are non-responsive;

(b) the lowest evaluated bid is substantially above the applicable updated cost
estimate;

(c) the goods, works or services are no longer required; or

(d) it has been established that there has been collusion among the bidders.

(2) Written notice of the rejection of all bids, or cancellation of the public procurement
proceedings, shall be given to all bidders that submitted bids.

(3) There shall be no invitation to re-bid for the procurement on the same specifications
and contract conditions unless the rejection of all bids or cancellation of procurement proceeding is
made on a ground specified in subsection (1)(a) or (b).

(4) Where the invitation for the procurement is to be repeated, the reason for the rejection
of all bids or the cancellation of the procurement proceedings shall be examined by the public body
and the technical specifications, or contract conditions shall be suitably modified.

* (New Section 9A added as per Finance Act July 2008)

23
40. Award of procurement contracts

(1) A procurement contract shall be awarded to the bidder having submitted the lowest
evaluated substantially responsive bid which meets the qualification criteria specified in the
prequalification or bidding documents, following the steps outlined in subsections (3) and (4).

(2) There shall be no negotiation between a public body and a selected bidder or other
bidders except in such special circumstances as may be prescribed.

(3) A public body shall notify the successful bidder in writing of the selection of its bid
for award and a notice in writing shall be given to the other bidders, specifying the name and address
of the proposed successful bidder and the price of the contract.

(4) In the absence of a challenge by any other bidder within 15 days of that notice in the
case of international procurement, and 7 days in the case of local procurement, the contract shall be
awarded to the successful bidder.

(5) A successful bidder may be asked to submit a performance security and sign a
contract within the period specified in the bidding documents.

(6) Where the bidder whose bid has been accepted fails to sign a contract, if
required to do so, or fails to provide any required security for the performance of the contract
within the prescribed time limit, the public body shall select another bidder from among the
remaining valid bids, and subsections (3) to (5) shall apply to the new selection.

(7) A public body shall promptly publish, in such manner as may be prescribed, notice of
every procurement award.

41. Debriefing of unsuccessful bidders

A public body shall promptly, on request of an unsuccessful bidder, inform that bidder of the
reasons for which its bid, or its application for prequalification, was unsuccessful where the request
for such debriefing was submitted within 30 days of the publication referred to in section 40(7).

42. Auditor's Certificate

The auditor of every public body shall state in his annual report whether the provisions of this
Part has been complied with.

PART VI - CHALLENGE AND APPEAL

43. Challenge

(1) A bidder who claims to have suffered, or to be likely to suffer, loss or injury due to a
breach of a duty imposed on a public body or the Board by this Act may challenge the procurement
proceedings at any time before the entry into force of the procurement contract.

(2) A challenge shall be in writing to the Chief Executive Officer of the public body
concerned and identify the specific act or omission alleged to contravene this Act.

(3) A challenge shall not be entertained unless it is submitted

(a) in the case of a challenge under section 24(12) or 40(4), within the time
specified in the relevant subsection; or

24
 (b) in any other case within such time as may be prescribed.

(4) Unless the challenge is resolved, the Chief Executive Officer of the public body shall
suspend the public procurement proceedings and shall, within such time period as may be prescribed,
issue a written decision, stating his reasons, and, if the challenge is upheld, indicating the corrective
measures to be taken.

44. Independent Review Panel

(1) There shall be an Independent Review Panel which shall consist of -

(a) a Chairperson; and

(b) 2 other persons,

having wide experience in legal, administrative, economic, financial, engineering, scientific or

technical matters and appointed by the President of the Republic, acting in accordance with the advice
of the Prime Minister, tendered after the Prime Minister has consulted the Leader of the Opposition,
on such terms and conditions as the Prime Minister thinks fit.

(2) The Chairperson and the 2 other members shall hold office for three years, except that
during the existence of the first panel one person will be replaced after the first year and another after
the second year, so that over time a regular rotation of persons serving on the Review Panel will be set
up.

(3) The President shall, on the advice of the Prime Minister, at any time terminate the
appointment of a member who has been guilty of -

(a) any misconduct, default or breach of trust in the discharge of his duties;

(b) an offence of such nature as renders it desirable that his appointment should
be terminated.

(4) The Review Panel shall seek to avoid formality in its proceedings and may conduct
them in such manner as it thinks fit.

45. Right of review

(1) An unsatisfied bidder shall be entitled to ask the Review Panel to review the
procurement proceedings where -

(a) the Chief Executive Officer of the public body does not issue a decision
within the time specified in section 43(4);

(b) he is not satisfied with the decision; or

(c) before or after the entry into force of a procurement contract the value of
which is above the prescribed threshold, he is not satisfied with the
procurement proceedings on a ground specified in section 43(1).

(2) An application for review under subsection (1) shall -

(a) be in writing;

(b) specify the reasons for making the application; and

25
 (c) be made within such time as may be prescribed.

(3) (a) An applicant for a review shall be required to make a deposit as may be
prescribed for filing the application.

(b) Where the Review Panel determines that the application was frivolous, the
deposit made shall be forfeited.

(4) Where an application for review is made in accordance with this section, the
procurement proceedings shall, subject to subsection (5), be suspended until the appeal is heard and
determined by the Review Panel.

(5) The suspension provided by subsection (4) shall not apply where the public body
certifies that urgent public interest considerations require the procurement proceedings to proceed.

(6) A certificate issued by a public body pursuant to subsection (5) shall expressly state
the grounds of the urgent public interest considerations and shall be made a part of the record of the
public procurement proceedings.

(7) A certificate issued by a public body pursuant to subsection (5) shall be binding on
the Review Panel and the procurement proceedings shall proceed unless an application for leave to
seek a judicial review is successful.

(8) The Review Panel shall make a decision under this section within 1 month of the date
of submission of an application for review under subsection (2).

(9) Where the procurement proceedings have not been suspended under subsection (5),
and the application for review of an unsatisfied bidder is determined in his favour, the Review Panel
shall award him compensation limited to the recovery of the costs of bid preparation and participation
in the procurement proceedings.

(10) The Review Panel may dismiss an application for review or may, if it determines that
there is merit in it, order one or more of the following remedies -

(a) prohibit the public body from acting or deciding in an unauthorised manner
or from following an incorrect procedure;

(b) recommend the annulment in whole or in part of any unauthorised act or

decision of the public body;

(c) recommend a re-evaluation of the bids or a review of the decision for an

award, specifying the grounds for such recommendation; or

(d) recommend payment of reasonable costs incurred in participating in the

bidding process where a legally binding contract has been awarded which, in
the opinion of the Review Panel, should have been awarded to the applicant.

26
 PART VII-PROCUREMENT CONTRACTS

46. Contents of contracts

(1) A procurement contract shall include the terms and conditions that are set out
in the bidding documents or request for proposals as well as -

(a) the names, addresses and telephone and fax numbers, of the contact persons
of the parties to the contract;

(b) the scope of the work;

(c) the order of priority of contract documents;

(d) the contract price or its mode of determination;

(e) the conditions of acceptance;

(f) the conditions and mode of payment;

(g) the modalities of 'force majeure';

(h) the price adjustment mechanisms;

(i) the provisions for termination of the contract;

(j) the procedure for dispute resolution; and

(k) the applicable law.

(2) Any amendment to the contract, other than changes which do not alter the basic
nature or scope of the contract, shall be expressly agreed by the parties in writing.
(3) An amendment to the contract that will increase the contract value by more than 25
percent shall require fresh procurement proceedings except where the amendment must be effected for
a reason specified in section 25(2) (c) or (d).
(4) No formal amendment of the contract shall be required where the public body wishes
to make a variation or invokes a contract price adjustment which is expressly authorised in the
contract.

47. Payment

(1) Subject to such specific terms of a procurement contract, as may be

prescribed, payment shall be made on the basis of the submission of a proper invoice.

(2) Payments due to a supplier shall be made in accordance with the deadlines set out in
the procurement contract and the supplier shall be compensated for late payment by payment of
interest in accordance with the rate specified in the contract or, if no such rate is specified, at the legal
rate.

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48. Termination and breach

Notwithstanding any other enactment -

(a) a public body may terminate a procurement contract for its convenience at any time
upon a determination that because of changed circumstances the continuation of the
contract is not in the public interest; and
(b) upon such a termination, the contractor will be entitled to reimbursement of expenses
incurred in the performance of the contract, but will not be entitled to recover
anticipated profits on the completion of the contract.

PART VIII-PROCUREMENT INTEGRITY

49. Artificial division

No public body may artificially divide the modalities of procurement in such a way as to
avoid any monetary thresholds laid down in this Act or in an instrument drawn up pursuant to this
Act.

50. Duties of public bodies

(1) Every public body shall be responsible for ensuring that procurement functions are
carried out by persons trained and knowledgeable in procurement, in accordance with guidelines and
qualification requirements prescribed or laid down by the Policy Office.

(2) Every public body shall

(a) engage in procurement planning with a view to achieving maximum value for
public expenditure and the other objectives of this Act;

(b) make an annual plan for budgeting purposes and plan each step of
procurement for major contracts in such manner as may be prescribed.

(3) Every public body shall record and preserve all documentation relating to any
procurement proceedings in such manner as may be prescribed.

(4) Subject to this Act, all documents, notifications, decisions and other communications
referred to in this Act shall be in writing.

(5) Where it is so prescribed, a public body may authorise the use of other forms of
communication, including electronic communication, for publication of invitations to bid,
transmission of bidding documents, submission of bids, conclusion of contracts and processing of
payment.

(6) Where other means of communication are used in accordance with subsection
(5), the public body shall ensure that -

(a) a record of the content of the communication is preserved;

(b) an adequate level of security and confidentiality is provided;

(c) the bidders' access to the records of the procurement proceedings is

preserved; and

28
 (d) any other requirement of this Act is complied with.

51. Conduct of public officials

(1) A public official involved in planning or conducting public procurement proceedings

or contract administration, shall -

(a) discharge his duties impartially so as to ensure fair competitive access to

procurement by suppliers;

(b) act in the public interest, and in accordance with the objectives and
procedures set out in this Act;

(c) avoid conflicts of interest, and the appearance of conflicts of interest, in

carrying out his duties and conducting himself;

(d) not commit or abet any corrupt or fraudulent practice, including the
solicitation or acceptance of improper inducements;

(e) keep confidential any information that comes into his possession relating to
procurement proceedings and to bids, including bidders' proprietary
information;

(f) for a period of 2 years after leaving the public service not accept a position of
authority in any private concern with which he had official dealings; and

(g) declare his assets in such manner as may be prescribed.

(2) (a) No public official, or his close relative, shall participate as a bidder in
procurement proceedings of that public body and no award of a procurement
contract shall be made directly to such official or to any body in which he or
his close relative, is employed in a management capacity or has a substantial
financial interest.

(b) In the subsection, "close relative" includes spouse, child, grandchild or

parent.

52. Conduct of bidders and suppliers

(1) A bidder or a supplier shall not engage in or abet any corrupt or fraudulent
practice, including the offering or giving, directly or indirectly, of improper inducements, in
order to influence a procurement process or the execution of a contract, including interference
in the ability of competing bidders to participate in procurement proceedings.

(2) A bidder or a supplier shall not engage in any coercive practice threatening to harm,
directly or indirectly, any person or his property to influence his participation in a procurement
process, or affect the execution of a contract.

(3) A bidder shall not engage in collusion, before or after a bid submission, designed to
allocate procurement contracts among bidders, establish bid prices at artificial non-competitive levels
or otherwise deprive a public body of the benefit of free and open competition.

(4) A public body shall reject a bid if the bidder offers, gives or agrees to give an
inducement referred to in subsection (1) and promptly notify the rejection to the bidder concerned and
to the Policy Office.

29
 (5) (a) Subject to paragraph (b), a bidder or supplier who is responsible for preparing
the specifications or bidding documents for, or supervising the execution of a
procurement contract, or a related company of such a bidder or supplier, shall
not participate in such bidding.

(b) Paragraph (a) shall not apply to the several bodies (consultants, contractors or
suppliers) that together may be performing the supplier's obligations under a
turnkey or design-build contract.

53. Suspension and debarment of bidders and suppliers

(1) Subject to subsection (2), the Policy Office may, under such conditions as may be
prescribed, suspend or debar a potential bidder or supplier from participation in procurement on the
following grounds -

(a) supplying false information in the process of submitting a bid or

prequalification application;

(b) collusion between the bidders or a bidder and a public official concerning the
formulation of any part of the bidding documents;

(c) interference by a supplier with the participation of competing bidders;

(d) misconduct relating to the submission of bids, including corruption, price

fixing, a pattern of under-pricing bids, breach of confidentiality, misconduct
relating to execution of procurement contracts, or any other misconduct
relating to the responsibilities of the bidder or supplier;

(e) conviction for an offence relating to obtaining or attempting to obtain a

procurement contract; or

(f) conviction for an offence related to dishonesty or fraud in his professional

activity.

(2) A suspension or debarment of a bidder or supplier under subsection (1) shall

not be effected unless the Policy Office -

(a) reviews and considers the factual record developed by the public body that
proposes the action;

(b) gives reasonable notice to the bidder or supplier involved of the basis for the
proposed action; and

(c) gives reasonable opportunity to the bidder or supplier to respond to the

proposed action.

(3) A period of debarment under subsection (1) shall not exceed 5 years.

30
 PART IX - MISCELLANEOUS

54. Oath of office

Every member and officer shall, on assumption of duty, take such oath as may be prescribed.

55. Disclosure of interest

A member or officer having any direct or indirect interest in any matter brought before the
Policy Office, the Board or the Review Panel -

(a) shall immediately inform the Director or the Chairperson, as the case may be; and

(b) shall not participate in the deliberations or any part of the decision-making process in
relation to that matter.

56. Declaration of assets

(1) Subject to subsection (2), every member and officer shall file with the Secretary to
the Cabinet a declaration of his assets and liabilities in such form and manner as may be prescribed -

(a) within 30 days of his appointment and

(b) on the termination of his appointment.

(2) Where, subsequent to a declaration made under subsection (1), the state his assets or
liabilities is so altered as to be reduced or increased in value by not less than 500,000 rupees, the
member or officer shall make a fresh declaration.

(3) No declaration of assets filed under this section shall be disclosed to any person
except with the express consent of the member or officer concerned or by order of a Judge on
reasonable cause shown.

57. Funds

The Policy Office, the Board and the Review Panel shall derive their funds from the
Consolidated Fund and from any fees and charges levied by the respective institutions.

58. Undue influence

Any person who directly or indirectly, in any manner, influences, or attempts to influence,
any member or public official or any member of the Policy Office, the Board, the Review Panel or a
public body in the performance of his duties under this Act, shall commit an offence.

59. Immunities

No action shall lie against the Policy Office, the Board or the Review Panel, or any member
or officer, for any act or omission, except in so far as the act or omission complained of was done in
bad faith.

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60. Offences

Any person who contravenes this Act shall commit an offence and shall, on conviction, be
liable to a fine not exceeding 50,000 rupees and to penal servitude for a term not exceeding 8 years.

61. Regulations

(1) The Minister may, on the recommendation of the Policy Office, make such
regulations as it thinks fit for the purpose of this Act.

(2) Regulations made under subsection (1) may provide for

(a) detailed procedures;

(b) competent authorities;

(c) operational thresholds;

*(d) an alternative procurement method where any of the procurement methods

referred to in section 15(1) is not considered appropriate for any specific
procurement;

(e) time limits and other deadlines; and

(f) the levying of fees or charges by the Policy Office, the Board or the Review
Panel; and

(g) the amendment of the Schedule.

(3) Regulations made under subsection (1) may provide that any person who contravenes
them shall commit an offence and shall, on conviction, be liable to a fine not exceeding 10,000 rupees
and to imprisonment for a term not exceeding 2 years.

62. Repeal

The Central Tender Board Act is repealed.

63. Consequential amendments

(1) The Public Private Partnership Act 2004 is amended in section 2, by deleting the
definition of "Board" and replacing it by the following new definition -

"Board" has the same meaning as in the Public Procurement Act;

(2) Section 128 of the Local Government Act 2003 is repealed.

64. Transitional provisions

(1) Every act done by, or in relation to, the Central Tender Board established under the
repealed Act shall be deemed to have been done, or commenced, as the case may be, under this Act.

*(New part 2(d) added to Section 61 as per Finance Act July 2008)

32
 (2) Any tender invited under the repealed Act, shall be deemed to have been invited as
required under this Act.

(3) Any tender or contract that was approved under the repealed Act shall be deemed to
have been approved under this Act.

(4) In this section, "repealed Act" means the Act referred to in section 62.

65. Commencement

This Act shall come in operation on a date to be fixed by Proclamation.

Passed by the National Assembly on the twelveth day of December two thousand and six.

R.R. DOWLUTTA
Clerk of the National Assembly

(Part I to VI of the schedule to the Act have been amended as per G.N. No. 198 of 20th September
2008)

SCHEDULE
(section 2)

Column 1 Column 2 Column 3

Public body Type of contract Prescribed amount

PART I

Ministries/Government/ All Contracts Rs 15 million

Departments

PART II

Local Authorities All Contracts Rs 15 million

Rodrigues Regional Assembly All Contracts Rs 15 million

Mauritius Qualifications Authority All Contracts Rs 15 million

33
 PART III

Goods, Civil
Engineering Works
& Capital Goods Rs 25 million

Consultancy Services Rs 15 million

Other Services. Rs 15 million

Agricultural Marketing Board

Beach Authority
Farmer's Service Corporation
Financial Services Commission
Industrial & Vocational Training Board
Irrigation Authority
Mahatma Gandhi Institute
Mauritius College of the Air
Mauritius Educational Development Company Ltd
Mauritius Film Development Corporation
Mauritius Examinations Syndicate
Mauritius Institute of Health
Mauritius Meat Authority
Mauritius Oceanography Institute
Mauritius Standards Bureau
Mauritius Tourism Promotion Authority
National Computer Board
Outer Islands Development Corporation
Private Secondary Schools Authority
Public Officers Welfare Council
Rodrigues Educational Development Company Ltd
Sir Seewoosagur Ramgoolam Botanic Garden Trust
Small Enterprises and Handicraft Development Authority
Sugar Industry Labour Welfare Fund
Sugar Planters Mechanical Pool Corporation
Tea Board
Tertiary Education Commission
Tourism Authority

34
University of Mauritius
University of Technology, Mauritius

PART IV

Goods, Civil
Engineering Works
& Capital Goods Rs 50 million

Consultancy Services Rs 15 million

Other Services Rs 15 million

Development Bank of Mauritius Ltd

Enterprise Mauritius
Information and Communication Technologies Authority
Mauritius Broadcasting Corporation
Mauritius Freeport Authority
Mauritius Housing Company Ltd
Mauritius Shipping Corporation Ltd
Mauritius Sugar Authority
National Housing Development Company Ltd
National Transport Corporation
State Informatics Ltd

PART V

Airports of Mauritius Ltd All contracts Rs 50 million

Cargo Handling Corporation Ltd
Central Electricity Board
Central Water Authority
Mauritius Ports Authority
Mauritius Revenue Authority
Road Development Authority
State Investment Corporation Limited
State Property Development Company Ltd

35
State Trading Corporation
Wastewater Management Authority

PART VI

Other parastatal bodies not All contracts Rs 15 million

specified in Parts III, IV and V

**********

36
 Appendix B

Government Notice No.7 of 2008

THE PUBLIC PROCUREMENT ACT 2006

Regulations made by the Minister under section 61
of the Public Procurement Act 2006

1. These regulations may be cited as the Public Procurement Regulations 2008.

2. In these regulations

Act means the Public Procurement Act;

"departmental work" means any public works to be carried out directly by the public
body itself or by another public body without entering into any contract;

"deposit"
(a) means the retention money, earnest money, bid bond or performance bond
furnished for security or pending the settlement of any work;

(b) includes any amount furnished for security owing for any other reasons, as
well as the security associated with the filing of a complaint;

exempt organisation means a public body, as specified in the First Schedule, which
is excluded from the application of the Act;

"joint venture" means an association of two or more entities for the purposes of
carrying out a procurement contract;

parastatal body means an organisation established under an enactment whether

body corporate or not and which depends wholly or partly on government funding;

principal regulations means the Public Procurement Regulations 2008;

regional preference means the margin of preference applicable to suppliers of the

countries of the region as per instructions issued by the Policy Office.

3. Procedures and mechanism

(1) The Policy Office shall inform public bodies and end-users of the types of
statistical and reporting information that are required to be furnished, and the periodicity of
their submission.

(2) The Policy Office shall establish procedures and mechanisms to

(a) ensure the effective and timely solicitation of view points of interested
parties in the development of procurement policies, regulations,
procedures, documents and forms;

37
 (b) obtain from the Board, the Review Panel and public bodies
information on procurement activities; and

(c) monitor compliance with the Act.

(3) The Policy Office shall periodically solicit the views of the business
community on the effectiveness of the procurement system and make appropriate
recommendations to the Minister.

(4) The Policy Office shall devise and implement programmes aimed at assisting
public bodies as well as bidders in conducting and participating in public procurement
proceedings which shall include

(a) assisting in the dissemination of information to bidders on the rules

and procedures governing public procurement;

(b) issuing opinions and guidance and proposing solutions to facilitate the
work of public bodies with a view to fulfilling the objectives of the Act;

(c) maintaining a database of suppliers of goods, works and services and

the dissemination thereof;

(d) establishing a central data base for the purpose of recording the
performance of suppliers in the execution of procurement contracts in
order to evaluate their performance;

(e) developing proposals for methods of disseminating procurement-

related information; and

(f) analysing the procurement experiences and practices of other

countries.

(5) The Policy Office shall devise and facilitate the implementation of strategies
and programmes for the promotion of professional standards and development concerning
procurement.

4. Bid evaluation procedures for major contracts

(1) (a) For the purposes of examination and evaluation of bids, the Board shall
constitute a bid evaluation committee within 15 days after the opening of
bids.

(b) A bid evaluation committee set up under paragraph (a) shall be composed
of at least 3 members who are knowledgeable about the goods or
services under procurement and the public procurement procedures.

(2) Subject to paragraph (3), the Board shall select from a list of qualified and
independent evaluators maintained by it to act as members of the bid evaluation committee.

(3) (a) As far as possible, no public officer working in a public body shall act as
member of the bid evaluation committee where the evaluation relates to a
procurement in respect of that public body.

(b) No person shall act as a member of the bid evaluation committee where
his participation would constitute a conflict of interest.

38
 (4) Where necessary, the Board may, following a request from a bid evaluation
committee, appoint an adviser or a technical sub -committee to assist it.

(5) The functions of the bid evaluation committee shall include the examination,
evaluation and comparison of bids and determination of the lowest evaluated substantially
responsive bid for the award.

(6) The Chief Executive Officer of the public body concerned with the
procurement shall designate a member of his staff to act as Secretary of the bid evaluation
committee.

(7) The members of a bid evaluation committee may be paid such fees as may
be determined by the Board.

(8) The Secretary of the bid evaluation committee shall take minutes of meetings
of the committee and keep record of all matters considered by the committee.

(9) The minutes and other records of the bid evaluation committee shall be open
for inspection by the Policy Office.

5. Open international bidding (as amended per G.N. No.8 of 2009)

(1) The Policy Office may, in the case of procurement through open international
bidding, issue instructions relating to the criteria and the applicable percentage preference
for domestic or regional goods, services or contractors.

(2) For the purposes of section 18(1)(a) of the Act, the estimated value for
procurement of goods, works and other services shall be 400 million rupees and for
consultancy services 10 million rupees.

5A. Request for sealed quotations(as amended per G.N. No.8 of 2009)

For the purposes of section 20(1) of the Act, the prescribed threshold shall be 5
million rupees.

6. Prequalification proceedings(as amended per G.N. No.8 of 2009)

(1) A prequalification exercise shall be effected for the procurement of

(a) any large work for which the estimated cost exceeds 400 million rupees;
or

(b) any work, irrespective of the project costs, the execution of which may
require specialised skilled expertise.

7. Bid evaluation procedures for contracts other than major contracts

(1) For the purpose of designating members of bid evaluation committees, a

public body shall maintain a list of qualified evaluators.

(2) When constituting a bid evaluation committee, a public body shall take into
account the proper combination of expertise required and ensure that the selected
evaluators have the required competence and expertise.

39
 (3) The procedures to be followed by a bid evaluation committee and the manner
in which the proceedings shall be carried out shall be in accordance with such guidelines
issued by the Procurement Policy Office.

(4) A public body may, at the request of a bid evaluation committee, appoint an
adviser or a technical sub-committee to assist it.

(5) The members of a bid evaluation committee may be paid such fees as may
be determined by the public body.

8. Special circumstances for negotiation (as amended per G.N. No.71 of 2008)

Negotiations may be carried out with a bidder or supplier where

(a) the lowest evaluated substantially responsive bid is substantially above the
updated estimated costs and a re-bid exercise is considered not practical;
(b) direct procurement from a single source under section 25(2)(b) of the Act is
resorted to; or
(c) emergency procurement under section 21 of the Act is resorted to.

9. Debriefing of unsuccessful bidders

The debriefing of an unsuccessful bidder shall be limited to information relating to
(a) the reasons for which his bid was unsuccessful;
(b) reasons for which the bid of the successful bidder was retained.

10. Procurement planning (as amended per G.N. No.71 of 2008)

(1) A public body shall engage in procurement planning in order to ensure that
procurement is carried out within financial estimates allocated to it.
(2) A public body shall, in respect of every investment project, prepare a master
procurement plan to cover the entire life of the project.
(3) A public body shall, at the beginning of every financial year, prepare an
annual procurement plan which shall include
(a) the type and quantity of the goods, works or services to be procured;
(b) the timing and implementation of the procurement;
(c) an indication of possible packages of procurement, and their value;
(d) an indication of possible pre-qualification proceedings and
procurement methods to be used;
(e) such other information as may be required in accordance with
instructions issued by the Policy Office.

(4) A public body shall publish on its website an annual procurement plan and
periodically update and revise it.

(5) In planning procurement for a major contract, a public body shall take into
account the following

40
 (a) identification and assessment of the need for the procurement;
(b) designation of procurement planning team;

(c) conducting market research in order to identify various technical

solutions, in particular in the commercial market, to identify the range of
available suppliers, and to determine the most favourable contractual
and guarantee terms available in the commercial market that would be
suitable for procurement;

(d) identification of the amount and sources of financing;

(e) studying acquisition history for similar goods, works or services;

(f) defining and describing the procurement requirements;

(g) estimate of the cost of a proposed procurement;

(h) possible aggregation of procurement requirements, taking into account

factors such as achieving economies of scale in purchasing, optimising
use of procurement and contract administration resources;

(i) possible slicing of the procurement into lots, provided that such slicing
is not done to avoid thresholds beyond which more competitive
procurement methods may be used, and where such slicing is
indicated by factors such as whether an approach would provide the
best overall value for the public body, possibility of technical
compatibility regarding items purchased in separate lots, the possibility
of allowing bidders to bid for individual lots or for the entire package,
and measures to promote participation by small enterprises;

(j) the availability of any procedures for procurement of common-use

items;

(k) selection of contracting approach and structure, including verification of

possible availability of framework or indefinite quantity contract
arrangements for the item in question;

(l) selection of appropriate procurement method in accordance with

sections 15 to 25 of the Act, and the reasons for use of a procurement
method other than open bidding, and any possible combination and
package of task or contract; and

(m) determination and identification of required contract administration

resources and responsibility.

(6) A public body may establish a Committee of Needs in accordance with

instructions issued by the Policy Office, to plan any individual procurement identified in its
annual procurement plan.

11. Disclosure of agents

(1) Upon submission of a bid, a foreign individual, firm, company or institution,

shall specify whether or not any agent has been appointed in Mauritius, and shall mention -

(a) the name and address of the agent;

41
 (b) the conditions of the agency agreement;
(c) the amount of commission payable if any, the type of currency and
mode of payment;
(d) the tax registration number of the agent.

12. Non-discrimination

(1) Subject to section 17 of the Act, a bidder shall be allowed to participate in

procurement proceedings without regard to his nationality.

(2) A public body may accept the submission by a bidder of equivalent

documentation when any document required by the bidding documents is not available or
issued, as may be the case in the bidders country.

(3) A public body may accept certification from a bidder attesting compliance with
eligibility requirements.

13. Evidence of qualifications

(1) The invitation to bid, the pre-qualification document, the bidding document
and, in the case of procurement of services, the invitation for expression of interest and the
request for proposals shall clearly outline the requirements and require the bidder to submit
appropriate documentation to establish the required qualifications.

(2) The pre-qualification, bidding documents and the request for proposals shall
specify the documents required to be submitted by the bidder and consultant.

14. Groups and associations of bidders

(1) The bidding document shall disclose the requirements and procedures to be
applied for assessing the qualification of a joint venture.

(2) An entity forming part of a joint venture shall not submit a bid, where the joint
venture is a bidder, in relation to the same procurement.

15. Subcontractor qualifications

(1) A public body shall require a bidder to provide qualification information and
documentation for any major subcontractor involved in the performance of the contract.

(2) A public body may review and approve the qualifications of a subcontractor, if
it considers the subcontractors role as critical.

16. Manufacturers authorisation

The documentary evidence of the bidders qualifications to perform the contract, if its
bid is accepted, shall establish to the satisfaction of the public body that, in the case of a
bidder offering to supply goods under the contract which the bidder did not manufacture or
otherwise produce, the bidder has been duly authorised by the manufacturer or producer of
the goods to supply and install the goods in Mauritius.

42
17. After-sale service

(1) Subject to the complexity of equipment and availability of resources in the

local market a public body may request proof of local after sale service back-up from a
bidder.

(2) For an overseas bidder not doing business in Mauritius, the public body may
request documentary evidence to establish to its satisfaction that the bidder will be, if the
contract is awarded to the bidder, represented by an agent in Mauritius equipped and able to
carry out the maintenance, repair and the stocking of spare parts as specified in the
technical specifications.

18. Choice between prequalification and post-qualification proceedings

(1) Subject to regulation 6, a public body may use prequalification or post-

qualification procedure for any procurement.

(2) For works contracts and contracts for complex industrial plant and equipment,
in which the cost of bid-preparation is high, prequalification procedure, in which only bidders
who pass the minimum qualification requirements set forth in the prequalification documents
are permitted to submit bids, shall be used.

(3) For contracts involving simple commodities, or manufactured goods, post-

qualification procedure, involving the examination of the qualifications of only the first ranked
bidder, shall be used.

19. Provision of prequalification documents

Where prequalification proceedings are used, a public body shall provide

prequalification document to all applicants that respond to the invitation to apply for
prequalification.

20. Post-qualification proceedings

(1) A public body shall determine whether the bidder that is identified as having
submitted the lowest evaluated responsive bid is qualified to perform the contract in
accordance with the criteria listed in the bidding document.

(2) A determination under paragraph (1) shall be based upon an examination of

the documentary evidence submitted by the bidder in accordance with the requirements
specified in the bidding document.

(3) To verify its technical and production capability a bidder shall, if required to do
so by the bidding document, provide with its bid documentary evidence to establish that any
item offered has been in mass production and has been in satisfactory operation for the
minimum period specified in the bidding document.

(4) (a) A determination under paragraph (1) in favour of a bidder shall be a

prerequisite for award of the contract to the bidder.

(b) A negative determination under paragraph (1) shall result in rejection of

the bid in which case a public body shall proceed to the next lowest
evaluated bid to make a similar determination of that bidders
capabilities to perform satisfactorily.

43
 (5) Subject to paragraph (6), where a prequalification proceeding has been
carried out in a procurement proceeding, a post-qualification proceeding shall be carried out
to verify that the selected bidder is still qualified.

(6) No new qualification criteria other than those specified in the post-qualification
proceeding shall be imposed in determining whether a selected bidder is qualified.

21. Language of bidding document(as amended per G.N. No.8 of 2009)

(1) All bidding documents, pre-qualification documents, bids, proposals or

contract documents shall be in English.

(2) Any document submitted with a bid in a language other than English shall be
accompanied by a certified or otherwise authorised translation into English.

(3) Notwithstanding paragraph (2), a public body may accept a document in

French submitted with a bid.

22. Notice of procurement method to be used

A public body shall include in the announcement (whether in the form of an invitation
to bid or an invitation to apply for prequalification), or in any other document used to solicit a
bid, a statement of the procurement method to be used in the procurement proceeding.

23. Confidentiality of bid evaluation

Except as provided in the Act and in these regulations, any information relating to the
examination, clarification, evaluation and comparison of bids shall not be disclosed to
bidders or to any other person not involved officially in the examination, evaluation or
comparison of bids or in the decision on which bids should be accepted.

24. Informing diplomatic missions

For the purposes of an open international bidding, the diplomatic missions accredited
to the Government of Mauritius, whose countries are potential sources for the subject matter
of the procurement, may be served with the invitation to bid, or the invitation to apply for pre-
qualification.

25. Price adjustment(as amended per G.N. No.8 of 2009)

(1) Subject to paragraph (2) a procurement contract may provide for the
possibility of price adjustment to take into account changes in economic circumstances.

(2) No price adjustment shall be allowed unless specific provisions are made in
the procurement contract.

(3) No price adjustment shall be allowed during the period of delay in

performance if the delay is caused by the supplier or contractor.
(4) Where the procurement contract provides for the possibility of price
adjustment, the contract shall specify the conditions, such as increases or decreases in the
cost of materials, labour, and energy, in which price adjustment is permitted, the formulas
and indices to be referred to in order to determine whether economic conditions have altered
to a significant enough degree to justify a price adjustment and to identify the amount of
increase or decrease, the frequency with which price adjustments may be implemented, and
the procedures to be followed.

44
 (5) Where the contractor fails to complete the works to be carried out under the
work schedule within the time limit as specified in the contract due to unjustified delays and
taking more time than that was prescribed to complete such a work, the price as referred to
in paragraph (1) shall not be increased.

26. Submission of Bids

(1) Bids shall be submitted to only one place, in accordance with the instructions
in the bidding document.
(2) Deadlines for submission of bids shall not be less than 30 days from the date
of issuance of the invitation to bid through open advertised bidding method except in the
case of submission of bids made solely by facsimile, e-mail or by any other electronic means
(as amended per G.N. No.71 of 2008).
(3) A bidder shall submit the bid duly signed by him, and accompanied by a
power of attorney, if so required, in the required number of copies and in a sealed envelope,
as specified in the bidding documents.
(4) A bidder shall enclose his technical and financial proposals, separately sealed
if so required, in a single envelope.
(5) If the bid is delivered by hand, the public body shall, on request, provide a
receipt showing the date and time of the receipt of the bid.
(6) A bidding document may provide for submission of quotations by facsimile,
e-mail or by any other electronic means in accordance with such instructions as may be
issued by the Policy Office, (as amended per G.N. No.71 of 2008).

27. Reception and security of bids

(1) A public body shall maintain a securely-locked bid box into which bidders may
deposit their bids.
(2) If the size of the offer envelope makes it impossible to place them in the bid
box, such envelope shall be handed over to the officer in charge of the Registry of the public
body, who shall record the date and time of receipt, ensure that the bids are kept in a secure
area and handed over to the tender committee at the bid opening.
(3) In addition to direct deposit in the bid box, bids may be submitted by
registered mail, courier or any other means that may be specified in the bidding document.

(4) Any bid received in the manner provided for in paragraph (3) shall be
promptly placed in the bid box or secured and kept confidential.

(5) A public body shall ensure that all bids received are kept in a secure manner
so as not to permit the bids to be opened by accident or viewed.

(6) A bid received without proper sealing of the envelope or one accidentally
opened by mistake shall be resealed and inserted in the tender box or other safe location
together with other bids

(7) No disclosure of the bids shall be made to any person prior to opening of
bids.

(8) Any sample submitted should be handled in a confidential and secure manner
so as not to lead to the disclosure of their characteristics prior to the opening of bids.

45
28. Requirements applicable to bid securities(as amended per G.N. No.8 of 2009)

(1) Subject to subsections (2) and (3), where a bid security is required, a public
body shall indicate in the bidding document the type and form of the security in order to be
acceptable.

(2) The type and form of the security indicated in the bidding document shall be
in accordance with the instructions provided for in the standard bidding document.

(2A) (a) A bid security shall be required in procurement where the

estimated value of the procurement exceeds 200 million
rupees;

(b) A public body may request a bid security for procurement of an

estimated value which is less than 200 million rupees in
accordance with instructions issued by the Policy Office.

(3) Prior to submitting a bid, a bidder may request the public body to confirm the
acceptability of a proposed issuer or confirmer of a bid security and where required, the
public body shall respond promptly to such a request.

(4) Any confirmation of the acceptability of a proposed issuer or of any proposed

confirmer shall not preclude the public body from rejecting the bid security on the ground that
the issuer or the confirmer, as the case may be, has subsequently become insolvent or
otherwise lacks creditworthiness, in such a case, a bidder shall be permitted to replace the
unacceptable security by an acceptable one.

(5) A bid security shall be subject to a demand for payment in the following
circumstances

(a) if the bidder withdraws, cancels or substantially modifies the bid after
the bid opening, during its period of validity;

(b) if the bidder does not accept a correction of an arithmetical error; or

(c) if the bidder, having been notified of the acceptance of its bid during
the validity of the bid, fails to sign the contract if so required or fails to
furnish a performance security if so required.

(6) A public body shall make no claim to the amount of the bid security, and shall
promptly return the bid security after

(a) the expiry of validity period of the bid security;

(b) the entry into force of a procurement contract and the provision of a
security for the performance of the contract, if such a security is
required by the bidding document;

(c) the termination of the bidding proceedings without the entry into force
of a procurement contract; or

(d) the withdrawal of the bid prior to the deadline for the submission of
bids, whichever is earlier.

46
 (7) A public body may not request a bid security for single source procurement or
from overseas suppliers in respect of goods obtainable only from a limited number of
suppliers.

29. Required validity period of bid security

(1) A bidding document shall require that the bid security provided by a bidder
shall have a validity period extending for a period of 30 days beyond the expiry of the validity
period of bids, so as to allow the public body sufficient time to make a demand for payment
under the bid security.

(2) All bid securities submitted by bidders shall be returned to unsuccessful

bidders once it is determined that their bids will not be selected.

30. Bid validity period(as amended per G.N. No.8 of 2009)

(1) A bidding document shall specify a bid validity period so as to enable the
public body to complete the examination, evaluation and comparison of bids and to obtain all
the necessary approvals so that the award of the contract can be notified within that period.

(2) Subject to paragraph (3) a bid validity period shall

(a) for local bidding be of a period not exceeding 90 days;

(b) for international bidding be of a period not exceeding 120 days.

(3) For any complex major contracts, a bid validity period shall be of a period not
exceeding 180 days.

(4) If, prior to the expiry of the validity period of bids, a public body considers that
additional time is required to complete all steps and notify an award, the public body shall
request all bidders to extend the validity by the minimum period required to do so.

(5) A refusal by a bidder to extend the bid validity period shall not result in the
forfeiture of his bid security.

(6) Any extension of the bid validity period shall be subject to a corresponding
extension of the bid security, failing which a bid shall be deemed not to be extended.

31. Cancellation of proceedings before opening of bids

(1) No cancellation of procurement proceedings shall be made unless it is in the

public interest.

(2) A cancellation of procurement proceeding is in the public interest

(a) when the object of the procurement is no longer required; or

(b) when the bidding document has to be modified so substantially that it

will be more efficient and convenient to cancel the bid invitation, revise
the document and re-issue an invitation to bid.

(3) If the procurement proceeding is cancelled before opening of bids, any bid
received shall be returned unopened.

47
32. Opening of bids

(1) Every bid shall be opened in only one place and at the time specified in the
bidding document.

(2) At the opening of bids, in addition to the name and address of each bidder
whose bid is opened and the bid price read out, the price of any alternative bid, any discount
and presence or absence of any bid security shall be announced to any person present at
the opening of bids and recorded in the minutes of the bid opening.

(3) No decision as to the acceptance or rejection of any bid shall be taken or

announced in the bid opening session.

33. Rejection of late bids

(1) A bid received by the public body after the deadline for the submission of bids
shall not be opened and shall be returned to the bidder.

(2) The date and time of arrival of any late bid shall be noted in the report of the
procurement proceedings.

34. Time frame for examination and evaluation of bids

A public body shall carry out promptly and in an efficient manner the examination and
evaluation of bids after the opening of the bids, taking into account the validity period of the
bids.

35. Domestic and regional margin of preference

(1) Where applicable, the financial evaluation stage shall involve the application
of price preference in favour of domestically manufactured goods and materials, if any, and a
regional price preference where the regional preference is applicable.

(2) Any applicable preference shall be stated in the bidding document and shall
be in accordance with directives issued by the Policy Office (as amended per G.N. No.71 of
2008).

36. Cancellation of procurement proceedings after opening of bids

(1) A public body may at any time cancel the procurement proceedings where
(a) the object of the procurement is no longer required;
(b) it has become necessary, in the public interest, to modify the
specifications or critical aspects of the conditions of the contract; or
(c) defects or gaps in the specifications have been revealed, which
prevent consideration of a substantially less expensive and
functionally equivalent item other than the one called for in the bidding
documents, or which prevent consideration of all items of cost to the
public body in the evaluation process.

(2) No decision to cancel the procurement proceedings shall be taken unless the
Chief Executive Officer of the public body concerned has given the approval to the
cancellation.

48
37. Rejection of all bids or cancellation of procurement proceedings

A notice of the rejection of all bids or cancellation of the procurement proceedings

shall state the grounds for the rejection of all bids, or for the cancellation of the procurement
proceedings, as the case may be.

38. Notification of Award (as amended per G.N. No.71 of 2008) and (as amended per
G.N. No.8 of 2009)

(1) Following the identification of the successful bidder in accordance with

section 40 of the Act, a public body shall

(a) notify the bidder of the proposed award of the contract within 5 days
from the date of receipt of approval from the Central Procurement
Board;

(b) promptly publish notice of every procurement award as provided

under regulations 71.

(2) Notwithstanding paragraph (1)(a) where a public body considers that it

requires more than 5 days, it shall promptly notify the Board and the Policy Office giving
reasons for an extension of the delay.

39. Acceptance and entry into force of contract in bidding proceedings

(1) Unless the bidding document indicates that a procurement contract is

required to be signed by both parties, the bidding document shall indicate that a contract in
accordance with the terms and conditions of the accepted bid and the bidding documents
enters into force when a notice of acceptance is dispatched to the selected bidder provided
that the notice of acceptance is dispatched while the bid is still valid.

(2) A notice under paragraph (1) is dispatched when it is properly addressed or

otherwise directed and transmitted to the bidder.

(3) Where a procurement contract is required to be signed, the bidder shall do so

within a reasonable period of time after the notice referred to in regulation 38 is dispatched
to the bidder, in accordance with such time period as may be indicated in the bidding
documents and in the notice.

(4) Between the time when the notice referred to in regulation 38 is dispatched to
the bidder and the entry into force of the procurement contract, no action shall be taken by
the public body or the bidder that interferes with the entry into force of the procurement
contract or with its performance.

(5) In the event of a failure of the bidder whose bid has been accepted, to sign a
written procurement contract in accordance with the bidding document, if required to do so,
or to provide any required security for the performance of the contract, a public body shall
select the next lowest evaluated bid in accordance with the evaluation criteria specified in
the bidding document from among the remaining bids.

(6) A public body shall not request or require a successful bidder to sign a
contract which varies with the terms and conditions specified in the bidding document.

49
 (7) In accordance with section 40 of the Act, no procurement contract shall be
awarded unless 15 days have elapsed in the case of international procurement or 7 days in
the case of local procurement in the absence of any challenge by any other bidder.

40. Design Contests

In appropriate cases, such as the procurement of architectural designs or urban
planning designs, a public body may conduct a design contest for the purposes of selecting
a design in accordance with such procedure as may be approved by the Policy Office.

41. Restricted bidding

For the purpose of section 19(1) (b) of the Act, the threshold amount shall be
5 million rupees for the procurement of goods, works and other services.

42. Standing lists (Approved list of suppliers/contractors)

(1) The following shall apply for the maintenance and use of registration and
classification systems in restricted bidding procedures, and to any databases and lists of
interested or approved parties

(a) the database or list shall only be maintained for the information of
various public bodies and any non-inclusion in the database or list
shall not preclude consideration of a firm if it meets the eligibility and
qualifications specified in the invitation documents;

(b) requests to be classified, or to be entered in the database or list, shall

be receivable at any time from any interested party and shall be acted
upon within a reasonably short period of time;

(c) the existence of the classification system, database or list, the

conditions to be satisfied by parties to be entered in the classification
system, database or list, the methods according to which satisfaction
of each of those conditions is to be verified, the period of validity of an
entry in the classification system, database or list and the procedures
for entry and for renewal of the entry shall be generally and regularly
publicised in such manner so as to bring them to the attention of
interested parties; and

(d) listed parties shall be given prompt notice of their inclusion or removal
from the classification system, database or list.

(2) Any classification system, or other database or list shall be designed to be

easily retrievable, including, where feasible, in electronic form, by the widest possible
audience, and shall be regularly reviewed and updated.

43. Community and end-user participation

(1) In the interest of providing employment to local communities, a public body
may decide to execute small construction works, including maintenance and repair, through
local user committees.
(2) For procurement through a users committee, the Policy Office shall establish
procedures to ensure

50
 (a) clarity as to the cases in which a users committee can be utilised,
which should normally be labour intensive and where better value may
be obtained by the participation of the community and end user;
(b) that the arrangement with the user committee is on the basis of an
agreement signed between the public body and the users Committee,
which stipulates the outputs, the users role, mechanisms for
community representation, reporting obligations, budget, and
procedures for supplementary procurement;
(c) effective mechanisms for representation of the user;
(d) effective and accountable use of the funds involved for the specified
objectives and outputs, including the monitoring of implementation;
and

(e) record-keeping obligations.

44. Direct Procurement (as amended per G.N. No.71 of 2008)

(1) For the purpose of section 25(2)(a) of the Act, a public body may resort to
direct procurement-
(a) in the case of procurement of goods, where the value does not exceed
500,000 rupees provided that the total cost per single item does not
exceed 100,000 rupees;
(b) in the case of procurement of works, consultancy services or other
services, the value does not exceed 500,000 rupees.
(2) A public body shall maintain records showing details of oral or informal
quotations sought from suppliers prior to the award of the contract.
(3) For the purposes of section 25(2) (c) and 25(2) (d) of the Act the limit shall be
fifty percent and thirty percent respectively of the initial contract value.

45. General Policy of diligence

(1) Prior to awarding a procurement contract by way of direct procurement under
section 25 of the Act, a public body shall ascertain that
(a) the item to be procured is not available in existing stores or under any
applicable framework agreement;

(b) the provider possesses the qualifications required to perform the

procurement contract;

(c) the quality and technical aspects of the providers proposal meet the
requirements of the public body; and

(d) the price to be paid to the provider is fair and reasonable.

51
46. Procurement of goods and services of common use

The Policy Office may assign the responsibility for the standardisation and bulk
contracting of goods and services of common use and the maintenance of a database of
suppliers to any public body it deems appropriate.

47. Invitation for expression of interest and preparation of shortlist (as

amended per G.N. No.71 of 2008)

(1) For the purposes of section 24(2)(a) and (b) of the Act, the threshold shall be
10 million rupees.

(2) For the purposes of section 24(3), the public body shall include in the request
to the short-listed consultant such information to enable the public body to make a judgment
on the firms suitability and shall not be so complex so as to discourage a consultant from
expressing his interest.

(3) A notice seeking an expression of interest shall include

(a) the identification of and contact information for the public body;

(b) an identification and general description of the assignment or project

in question, including the working location, and any project
identification code;

(c) the date of issue of the notice, and the closing date and instructions
for submission of the expression of interest;

(d) any source of funding;

(e) the projected time period for implementation and completion of the
assignment;

(f) the qualification criteria to be met to be short-listed.

(4) In order to determine the capability and experience of consulting firms

seeking to be short-listed, the information requested shall include

(a) a profile of the company, its organisation and staffing;

(b) in the case of associations between two or more firms, the name,
address and profile of the participating firm, and nature of the
association such as joint venture, subcontract;

(c) identification of any lead firm;

(d) details of experience or similar assignments undertaken in the

previous 5 years, including their locations ;

(e) the focus on the firms role in similar assignments in the region or
elsewhere;

(f) the curriculum vitae of staff who could be available to work on the
assignment;

52
 (g) in the case of individual consultant, the curriculum vitae of the
consultant;

(h) a statement that short-listed consultants will be invited to submit

proposals;

(i) the number of copies of the requested information to be submitted,

and the address to which submission is to be made, and from which
additional information may be obtained.

(5) A minimum of 15 days from the date of publication of the notice shall be
provided for submission of expressions of interest.

(6) A consultant who has expressed interest shall be informed of the final short
list of firms.

(7) (a) A short list of at least 3 firms shall be prepared pursuant to the
assessment of the information furnished.

(b) In preparing the shortlist the public body shall endeavour to include
different nationalities and backgrounds and where possible at least
one local firm so as to provide a wide variety of approaches for the
public body to make a choice.

(8) Where there is not adequate number of responses to result in the minimum
number of 3 qualified firms, the advertisement shall be repeated.

(9) The final shortlist may include well-qualified consultants that did not respond
to the solicitation of expression of interest where there is a need to make up a minimum
number.

(10) Where the value of the procurement does not exceed the amount referred to
in paragraph (1), the shortlist may be drawn up on the basis of the public bodys own
knowledge and information.

48. Challenge and appeal procedures

(1) A challenge under section 43 of the Act shall be made in the form set out in
the Second Schedule.

(2) For the purposes of section 43(3)(b), a challenge shall not be entertained
unless it is submitted within 5 days from the invitation to bid or from the opening of bids.

(3) Where the challenge concerns any aspect of the procurement process prior to
the award of the contract, the Chief Executive Officer of the public body concerned shall in
the case of a major contract, obtain all relevant information from the Board.

(4) Unless the challenge is resolved by mutual agreement, the Chief Executive
Officer of the public body shall issue a written decision stating his reasons within 15 days of
the filing of the application.

(5) Where the Chief Executive Officer of the public body fails to issue a decision
within 15 days or if the bidder is not satisfied with his decision, the bidder may submit an
application for review to the Review Panel, provided that the application is filed within 15
days of receipt of the decision of the public body or the time when that decision should have
been received.

53
 (6) For the purposes of section 45(1) (c) of the Act the threshold shall be 1million
rupees.

(7) An application for review under section 45(1)(c) of the Act, from an unsatisfied
bidder after the entry into force of a procurement contract the value of which is above the
prescribed threshold, as specified in paragraph (6), stating that he is not satisfied with the
procurement proceedings on a ground specified in section 43(1), shall be made within 5
days of the date the applicant becomes aware of alleged breach.

49. Required contents of application for review

An application for review by the Review Panel shall be made in writing in the form set
out in the Third schedule .

50. Filing of application

(1) A challenge or an application for review may be filed by hand delivery, mail or
commercial courier.

(2) A challenge or an application for review is deemed to be filed on a particular

day when it is received by the public body, or, where applicable, by the Review Panel, by
close of business on that day.

51. Security Deposit for an application for review(as amended per G.N. No.8 of
2009)

(1) The submission of an application for review shall be accompanied by a

deposit as follows

(a) where the application relates to the bid opening process or the award
of a major contract, an amount of 75,000 rupees;

(b) in any other case, an amount of 10,000 rupees.

(2) The security deposit shall be forfeited where the Review Panel dismisses the
application as frivolous.

52. Notice of application for review

(1) Where an application for review is made to the Review Panel, the Review
Panel shall notify the public body within one day after the filing of the application and, unless
the application for review is dismissed, shall promptly send a written confirmation to the
public body and an acknowledgment to the applicant.

(2) Where the application for review is filed in the first instance with the Review
Panel, the applicant shall furnish a complete copy of the application for review, including all
attachments, to the public body not later than one day after the application for review is filed
with the Review Panel.

54
53. Disclosure by public body

(1) The public body shall promptly make available to the Review Panel any
information and documentation that the Review Panel may request, including -

(a) the bid or proposal submitted by the applicant;

(b) the bid or proposal of the bidder that is being considered for award, or
whose bid or proposal is being reviewed;

(c) all qualification assessment and evaluation documents;

(d) the invitation to bid or request for proposals, including the

specifications;

(e) the abstract of bids or proposals;

(f) requests for clarification of the bidding documents or request for

proposals and responses thereto; and

(g) any other relevant documents.

(2) In appropriate cases, the Review Panel may request the applicant to produce
relevant documents, that are not in the custody of the public body.

(3) The Review Panel may request or allow the submission of additional
statements by the parties and by other parties not participating in the application for review
as may be necessary for the fair resolution of the application for review.

54. Expeditious delivery of communications

All communications related to the application for review shall be sent promptly to the
Review Panel.

55. Comments by public body on application for review by Independent

Review Panel

(1) Where an application for review is filed with the Review Panel, the public
body shall provide to the Review Panel comments on the application within 10 days of the
notice of the filing of the application for review with the Review Panel.

(2) The comments of the public body shall include

(a) a statement of the relevant facts;

(b) a best estimate of the contract value ;

(c) an assessment of the grounds for review; and

(d) a list of all documents relevant to the procurement proceedings.

(3) The public body, may file a request for dismissal before filing the comments
referred to under paragraph (1).

55
 (4) The public body shall simultaneously send a copy of its comments on the
application for review to the applicant within one day of the submission of the comments to
the Review Panel.

(5) The applicant shall be given an opportunity to comment on the comments of

the public body on the application for review.

(6) The applicant may submit to the Review Panel a reply on the comments
made by the public body within 7 days of the receipt by the applicant of the public bodys
comments, and copied to the public body.

56. Dismissal of application for review

An application for review may be dismissed for

(a) failure to comply with any of the requirements of sections 43 to 45 of the Act,
and these Regulations;

(b) setting forth allegations that do not state a valid basis for an application for
review, or that do not set forth a detailed legal and factual statement;

(c) having been filed in an untimely manner, either at the initial level of review by
the public body, or with respect to deadlines for filing an application for review
by the Review Panel; or

(d) contract implementation or administration instead of contract award.

57. Hearings

(1) At the request of the applicant for review or on its own initiative, the Review
Panel may, where it deems appropriate, conduct a hearing.

(2) A hearing shall be conducted as soon as practicable after receipt of

comments and relevant documents from the public body.

(3) The Review Panel shall request the applicant and the public body concerned
to attend a hearing.

(4) The Review Panel may restrict attendance during all or part of the proceeding
where it considers appropriate.

(5) During the hearing all proceedings shall be recorded and transcribed.

58. Recording of dispositions

Any decision by the public body or the Review Panel pursuant to section 45 of the
Act, shall be made part of the record of the procurement proceedings.

59. Notice to the Independent Review Panel

The public body shall promptly notify the Review Panel and the Policy Office of the
action it has taken in response to the decision of the Review Panel.

56
60. Inspection and acceptance of goods

(1) The public body shall establish appropriate procedures and mechanisms for
inspecting and examining supplied goods in accordance with applicable supply management
procedures.

(2) The public body may designate one or more agencies to supervise and
inspect the performance with the technical requirements of procurement contracts and
applicable quality standards.

(3) The inspecting official or agency designated under paragraph (2) shall inspect
and examine the supplied items and compare with the stamped and approved samples and
other specifications, putting aside the rejected goods to be returned to the supplier. The
inspecting official or agency shall examine varying percentages following principles of
statistical sampling methods.

(4) The inspecting official shall prepare an inspection report indicating

acceptance or rejection of the goods. The report shall indicate the percentage that the
inspecting official has examined, the names, specifications, results of testing.

(5) In the event of a dispute between the supplier and the inspecting official or
agency, such dispute shall be submitted to the dispute settlement procedures under the
procurement contract.

61. Acceptance report

(1) An acceptance report by the public body shall contain the following

(a) the contract reference number;

(b) a description of the item or service received;

(c) the date of delivery and acceptance;

(d) the authorised signature in writing, or in electronic form where that

form is acceptable to the public body and provides the requisite
security, subject to approval by the Policy Office.

(2) An acceptance report shall be transmitted promptly to the appropriate

disbursement authorities for payment.

62. Prompt payment

(1) Payments due to the supplier shall be made in accordance with the deadlines
specified in the procurement contract, failing which, the supplier shall be compensated by
payment of interest in accordance with the provisions of the procurement contract.

(2) Where the procurement contract provides for a prompt payment discount,
such a discount shall be applied if the public body makes payment in accordance with the
terms of the prompt payment discount provision.

63. Early completion bonus

The procurement contract may provide for payment of a bonus to the contractor for
early completion.

57
64. Termination for convenience

(1) Where the contract is terminated for convenience, the public body shall
authorise payment for the value of the work done, goods or services supplied, the
reasonable cost of removal of equipment, repatriation of the suppliers personnel employed
solely on the works, and the suppliers costs of protecting and securing the works, where
applicable, and less any advance payment received by the contractor up to the date of the
notice of termination.

(2) For any remaining goods, the public body may elect

(a) to have any portion completed and delivered at the contract terms and
prices; or

(b) to cancel the remainder and pay to the supplier an agreed amount for
partially completed goods and services and for materials and parts
previously procured by the supplier.

65. Remedies for breach of contract

(1) The procurement contract shall specify the remedies available to the public
body in the event of breach of the procurement contract by the contractor.

(2) The remedies referred to in paragraph (1) shall include -

(a) rejection of defective performance;

(b) prompt removal and replacement of defective goods;

(c) liquidated damages for delay, in accordance with a rate specified for
each week or other unit of time, or part thereof, of delay;

(d) termination of the contract and purchase of replacement performance,

at the expense of the defaulting party;

(e) such other remedies as may be available under the applicable law.

66. Liquidated damages

(1) The procurement contract may provide that the contractor is liable for
payment of an agreed sum for delay in the performance due under the contract.

(2) Where a clause for payment of liquidated damages is provided in the

contract, it shall specify

(a) the agreed sum to be paid per unit time of delay;

(b) the maximum amount due under the liquidated damages clause; and

(c) that the contractor is not relieved of its liability for performance of the
procurement contract by virtue of payment under the liquidated
damages clause.

58
67. Agreement to submit disputes to arbitration

The parties to a procurement contract may agree in the procurement contract, or by a

separate agreement, to submit any dispute arising out under the procurement contract for
settlement by arbitration.

68. Disclosure

Except as otherwise ordered by a Court, a public body shall not disclose

(a) information if its disclosure is contrary to public interest, will prejudice

legitimate commercial interests of the parties or will inhibit competition;

(b) information relating to the examination, evaluation and comparison of bids

other than the report prepared pursuant to section 37 of the Act.

69. Availability of record for oversight agencies

The report and the register of the procurement proceeding, as well as all the
documents generated in the planning and procurement proceedings, and implementing
procurement contracts, shall be made available for inspection to the Policy Office and the
Director of Audit.

70. Record keeping and reporting requirements

(1) Every public body shall keep record of every procurement proceeding.

(2) The record shall include documentation relating to the proceeding such as the
invitation to bid, decision of award, work take-over certificate and any other information on
the method of the supplier's completion of his commitment.

71. Notice of procurement contract award(as amended per G.N. No.8 of 2009)

(1) In the case of procurement contracts whose value exceeds the prescribed
amount, the public body shall cause a notice of the procurement contract to be published in
its website within 7 days of the award of the contract.

(2) The notice referred to in paragraph (1) shall refer to the announcement of the
procurement published at the commencement of the procurement proceedings, the subject
matter of the procurement, the name and address of the successful bidder and the contract
price.

72. Identification of activities of public body subject to conflict of interest

restrictions

For the purpose of section 51 of the Act, the restriction of public official in respect of
conflict of interests shall include

(a) procurement planning, including preparation, review or approval of

specifications, or a statement of work for a particular procurement;

(b) assessment of requirements to be fulfilled by a procurement action;

(c) preparation of procurement documents, including for solicitation of

participation in procurement proceedings;

59
 (d) evaluation and comparison of bids, proposals, offers or quotations, including
membership in bid evaluation committees;

(e) conduct of technical discussions or negotiations;

(f) selection or approval of selection of bidder; and

(g) administration of the procurement contract, including payments, and

settlement of claims and disputes.

73. Avoidance of conflicts of interest in consultant services

(1) A consultant shall provide professional, objective, and impartial advice and at
all times hold the clients interests paramount, without any consideration for future work, and
strictly avoid conflicts with other assignments or their own corporate interests.

(2) No consultant shall be hired for any assignment that would, by its nature, be
in conflict with their prior or current obligations to other clients, or that may place him in a
position of not being able to carry out the assignment in the best interest of the public body.

(3) Without limitation on the generality as provided for in paragraphs (1) and (2),
a consultant shall not be hired under the following circumstances

(a) a firm which has been engaged by the public body to provide goods or
works for a project, and any of its affiliates, shall be disqualified from
providing consulting services for the same project;

(b) a firm hired to provide consulting services for the preparation or

implementation of a project, and any of its affiliates, shall be
disqualified from subsequently providing goods or works or services
related to the initial assignment, other than in the case when, subject
to satisfactory performance of the initial assignment, it is essential for
continuity that there be a continuation of the firms earlier consulting
services for the same project.

(4) Paragraph (3) shall not apply to firms (consultants, contractors, or suppliers)
that together are performing the suppliers obligations under a turnkey or design-and-build
contract.

74. Restrictions outside employment and interests

A public official involved in public procurement proceedings shall not directly or

indirectly accept any type of employment from a bidder, or from a party to a procurement
contract with the government.

75. Undue influence

(1) If any bidder tries or causes to try to exert undue influence or pressure of any
kind in relation to his or any one elses tender, the bid of such a bidder shall be rejected.

(2) Where a bid is rejected pursuant to paragraph (1), the public body shall keep
a record of any rejected bid.

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76. Conspicuous notice of prohibitions

The bidding and contract documents shall specify that a bidder is not permitted to

(a) enter into contingent fee or commission arrangements;

(b) directly or indirectly offer, give or agree to give inducements as referred to in

section 51 of the Act.

77. Disclosure of offer of inducement or other corrupt, fraudulent or coercive

Practices

(1) Any public official who is offered an inducement contrary to section 51 of the
Act, or becomes aware of any other corrupt, fraudulent or coercive practice in connection
with procurement, shall report such offer, or other corrupt or fraudulent practice, to the Chief
Executive Officer of that public body or to the Policy Office.

(2) Paragraph (1) shall be in addition to and not in derogation with the provisions
of the Prevention of Corruption Act 2002.

78. Confidentiality of procurement information

(1) Except for the purposes of auditing or upon an order of a Court, no public
official is permitted to disclose to any third party, whether for personal gain or for any other
motive, confidential or proprietary commercial information obtained by virtue of his
involvement in, or contact with officials involved in, procurement proceedings or the planning
of procurement.

(2) No information relating to the examination, evaluation and comparison of bids

shall be disclosed to bidders or to any other person not involved officially in the examination,
evaluation or comparison of bids or in the decision on which bid should be accepted, except
as provided for in section 37 of the Act.

79. Confidentiality obligations of third parties

The requirement of confidentiality imposed on public officials by virtue of section 51

of the Act extends to any other person acting on behalf of a public body in procurement
proceedings.

80. Oath

Every member or officer shall, on assumption of duty, take the oath as specified in
the Fourth Schedule.

81. Declaration of assets

Every member or officer shall file with the Secretary to the Cabinet, within 30 days of
his appointment and upon termination of his appointment, a declaration of his assets and
liabilities as specified in the Fifth Schedule.

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82. Commencement

These regulations shall come into operation on 17 January 2008.

Made by Minister on 14 January 2008 on the recommendation of the Policy Office.

_______________

FIRST SCHEDULE

(regulation 2)

EXEMPT ORGANISATION

Independent Commission Against Corruption.

_______________

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 SECOND SCHEDULE
(regulation 48)

Challenge under section 43 of the Public Procurement Act 2006

1. Name of Bidder: .
2. Address of Bidder: ...................................
3. Name of Representative of Bidder (if applicable): ..

4. Tel. No./E-mail: ....

5. Name of Public Body: .....
6. Procurement Reference: ...
7. Specific Act or Omission in relation to the procurement: .................................


8. Bidders grounds for challenge: .


Date: .. Signature:

Note: The completed form should be submitted to the Chief Executive Officer of the public body.

_______________

63
 THIRD SCHEDULE
(regulation 49)
INDEPENDENT REVIEW PANEL

Application for Review under section 45 of the Public Procurement Act 2006

Name of Applicant:
Name of Representative (if applicable): ..
Address of Applicant: .......................
Tel. No./E-mail: ...
Public Body:
Solicitation/Contract reference number: .
Date of decision of Public Body: ..
Date of filing of challenge: ..................................................
Applicants grounds for review: .......................
..
Statement of Applicant on economic interest: ..............................
..
Special measures sought for: ..
..
Relief requested: ..................
..
Reasons of request for specific documents to support the application: ...........................
..
Reasons of request for hearing: .....................
..
A copy of this application to be sent to the Chief Executive Officer of
..

Date: ... Signature: ..

_______________

64
 FOURTH SCHEDULE
(regulation 80)
OATH

I, _______________________, being appointed Chairman/Vice Chairman/Member/Officer*

of the Procurement Policy Office, the Central Procurement Board, or the Independent
Review Panel* do hereby swear/solemnly affirm that I shall, to the best of my judgment, act
for the furtherance of the objectives of that organisation and shall not, on any account and at
any time, disclose, otherwise than with proper authorization or where it is strictly necessary
for the performance of my duties, any confidential information obtained by me in virtue of my
official capacity.

Taken before me, ___________________________________________________________

_________________________________________________________________________

Master and Registrar of the Supreme Court

* delete as necessary

_______________

65
 FIFTH SCHEDULE
(regulation 81)
DECLARATION OF ASSETS

I,______________________________ of ___________________________________ make

oath/solemn affirmation as a ______________________________and declare that

1. I am unmarried/married under the system of_______________________(matrimonial

regime).

2. My assets (extent, nature of interests therein, liabilities regarding these assets) are
as follows

(a) landed property: __________________________________________________

(b) residential, commercial or industrial building: ___________________________
(c) motor vehicles: ___________________________________________________
(d) boats: __________________________________________________________
(e) shares: _________________________________________________________
(f) interest in partnership or socit: _____________________________________

3. The assets of my spouse/minor children (extent, nature of interests therein, liabilities

regarding these assets) are as follows:

(a) landed property: __________________________________________________

(b) residential, commercial or industrial building: ___________________________
(c) motor vehicles: ___________________________________________________
(d) boats: __________________________________________________________
(e) shares: _________________________________________________________
(f) interest in partnership or society: _____________________________________

4. My liabilities (other than those relating to the assets referred to at paragraph 2)

are as follows:-
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

5. The liabilities of my spouse/minor children (other than those relating to the assets
referred to at paragraph 3) are as follows:-
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________

Signature _____________________________________________________________

Sworn/solemnly affirmed by the above named before me at this day__________of 20......... .

Master and Registrar, Supreme Court

66
 Appendix B1
Public Procurement (Suspension and Debarment Regulations)

THE PUBLIC PROCUREMENT ACT 2006

REGULATIONS MADE BY THE MINISTER UNDER SECTION 61

OF THE PUBLIC PROCUREMENT ACT 2006

1. These regulations may be cited as the Public Procurement (Suspension and

Debarment) Regulations 2008.

2. In these regulations

Act means the Public Procurement Act 2006;

Director means the Director of the Procurement Policy Office.

3. Effect of suspension or debarment

No public body shall

(a) solicit or accept bids, proposals or quotations from a suspended or debarred

bidder; or
(b) consider bids, proposals or quotations submitted by a suspended or debarred
bidder or supplier prior to its suspension or debarment.

4. Effect on existing contracts

Any suspension or debarment of a potential bidder or supplier under these

regulations shall not affect any existing contract entered into between the bidder or supplier
and a public body.

5. Proposal by a public body for suspension or debarment of a potential

bidder, supplier or consultant

(1) A proposal by a public body for the debarment of a potential bidder or supplier
shall be referred to the Director by means of a proposal for debarment.

(2) A proposal for debarment may include a recommendation that the potential
bidder or supplier be suspended from participating in procurement pending the completion of
debarment proceedings.

6. Contents of proposal for debarment

A proposal for debarment shall -

(a) specify the name and address of the potential bidder or supplier;

(b) recommend the period of debarment;

(c) specify the grounds for the proposed action;

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 (d) be accompanied by a factual record from the public body, which shall include
all evidence and information in the possession of, or known to the public
body, relating to the proposed action.

7. Inquiries by Policy Office

(1) The Director may request from any source, information or evidence
concerning possible grounds for suspension or debarment of a potential bidder or supplier.

(2) A public body which is requested to submit information under paragraph (1)
shall provide the information or document which is in its possession within one month
following the request made.

8. Issuance of notice of proposed debarment

(1) Where the Director considers that there are grounds for debarment, he shall
issue to the bidder or supplier a notice of proposed debarment.

(2) The Director shall send a copy of the notice of proposed debarment to the
public body which proposed the debarment.

9. Contents of notice of proposed debarment

A notice of proposed debarment shall -

(a) inform the bidder or supplier that debarment is being considered;

(b) inform the bidder or supplier as to whether suspension is contemplated

pending the completion of debarment proceedings;

(c) specify the grounds for the proposed debarment and, if applicable, the
suspension;

(d) set out the facts constituting the grounds for the proposed debarment and, if
applicable, the suspension;

(e) state the period of the proposed debarment;

(f) inform the bidder or supplier of its right to make written representations and
request for a hearing.

10. Response by bidder or supplier

(1) A bidder or supplier may make representations in writing to the Director within
14 days of the receipt of the notice of proposed debarment.

(2) Any representation made under paragraph (1) shall contain a certificate,
signed by the bidder or supplier, that the information contained therein is true to the best of
his knowledge.

(3) The Director shall, within 7 days of the receipt of the representation, send a
copy to the public body which proposed the debarment.

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11. Suspension pending completion of the debarment proceedings

(1) On receipt of the representation made under regulation 10, the Director may
decide as to whether the bidder or supplier may be suspended from participating in
procurement proceedings pending the completion of debarment proceedings.

(2) Where the Director decides to suspend the bidder or supplier under
paragraph (1), the Director may decide to terminate the suspension where he considers that
the basis for the suspension, pursuant to subsection (1), no longer exists.

(3) Any decision of the Director under paragraph (1) shall remain in effect until -

(a) a decision on the proposed debarment pursuant to section 14 is taken;

(b) the expiration of the time specified in regulation 14(1); or
(c) a decision of the Director under paragraph (2) terminating the
suspension,
whichever is earlier.

(4) The Director shall send a copy of his decision under paragraph (1) to the
bidder or supplier and to the public body which proposed the debarment.

12. Hearing on debarment

(1) The bidder or supplier shall have a right to a hearing on the proposed
debarment and, where it has been suspended, to challenge his suspension, provided that
the bidder or supplier requests for a hearing, in writing, within the time specified in regulation
10.

(2) A hearing under paragraph (1) shall take place within 10 days of the
submission by the bidder or supplier of his request.

(3) The Director shall notify, in writing, the bidder or supplier and the public body
which proposed the debarment of the time and place of the hearing.

13. Procedures at hearing

The Director shall make a record of the hearing, which shall include all documents
and evidence submitted at the hearing and a transcript of any testimony given during the
hearing.

14. Decision on debarment

(1) The Director shall decide on the proposed debarment within 50 days of the
issue of a notice of proposed debarment.

(2) The Director shall determine the period under which the bidder or supplier
shall be debarred from participating in procurement proceedings.

(3) The decision of the Director shall be recorded in writing and shall include a
summary of the findings of fact and the reasons for decision.

69
 (4) The Director shall forthwith send a copy of his decision under paragraph (1) to
the bidder or supplier and the public body which proposed the debarment.

15. Application to modify or terminate debarment

(1) A bidder or supplier who has been debarred may apply to the Director to
terminate, or modify the period of, the debarment.

(2) An application under paragraph (1) shall be submitted, subject to paragraph

(3), after the expiry of 6 months of the decision of debarment.

(3) The Director shall not consider an application under paragraph (1) where the
bidder or supplier is under debarment following a previous decision of debarment by the
Director.

(4) The applicant shall specify the reasons for modifying or terminating the
debarment, and submit any evidence in support of his application.

(5) (a) On receipt of an application under paragraph (1), the Director shall
send a copy of the application to the public body which proposed the
debarment requesting for comments and recommendations from that
public body.

(b) The public body shall submit its comments and recommendations
within 14 days of the receipt of the copy of the application.

(6) The Director shall decide upon the application within 14 days of the receipt of
the comments and recommendations of the public body.

(7) The Director shall notify in writing the bidder or supplier and the public body of
his decision.

16. Disclosure of the decision

A decision of the Director in respect of a debarment or suspension of a bidder or

supplier, as the case may be, shall be published in the Gazette.

17. Register of debarred and suspended bidders or suppliers

(1) The Director shall maintain a register of all suspended or debarred bidders
which shall -

(a) specify the name and address of every bidder or supplier under
suspension or debarment;

(b) set out the grounds for debarment or suspension, as the case may be,
of the bidder or supplier; and

(c) specify the period under which the bidder or supplier is on debarment
or suspension, as the case may be.

(2) The register shall at all times during office hours be made available to the
public.

70
18. These regulations shall come into operation on 17 January, 2008.

Made by the Minister on 14 January 2008 on the recommendation of the Policy

Office.

71
 Appendix C

Record of Procurement Action for Open Advertised, Restricted, and

Two-Stage Bidding

Record required under the PUBLIC PROCUREMENT ACT 2006 AND THE PUBLIC PROCUREMENT
REGULATIONS 2008.

All attachments become part of the record of the procurement.

Instructions for completing this form are set out as endnotes to this form.

This record must be retained for the period of time set out in the Law on Archives.

Procurement Reference Number:

1.
NAME OF PUBLIC BODY

ADDRESS OF PUBLIC BODY

TELEPHONE NUMBER

FAX NUMBER

EMAIL ADDRESS

2. OBJECT OF THE PROCUREMENT IS :

3. ESTIMATED VALUE OF THE PROCUREMENT IS:

METHODOLOGY FOR ESTIMATING VALUE WAS:

4. THE MEMBERS OF THE PROCUREMENT TEAM ARE:

PROCUREMENT SPECIALIST-
PROCUREMENT SPECIALIST-
OTHER-
OTHER-
EVERY MEMBER OF THE PROCUREMENT TEAM HAS DECLARED THAT HE/SHE HAS NO
CONFLICT OF INTEREST IN THIS PROCUREMENT. ____ YES ____ NO

ATTACH A DECLARATION SIGNED BY EACH MEMBER OF THE PROCUREMENT TEAM THAT HE

OR SHE DOES NOT HAVE A CONFLICT OF INTEREST IN THIS PROCUREMENT

72
5. THE BID EVALUATION COMMITTEE WAS APPOINTED ON:

THE MEMBERS OF THE BID EVALUATION COMMITTEE ARE (LIST NAME AND JOB TITLE OF
EACH):
HEAD OF COMMITTEE:

EVERY MEMBER OF THE BID EVALUATION COMMITTEE HAS DECLARED THAT HE/SHE HAS NO
CONFLICT OF INTEREST IN THIS PROCUREMENT. ____ YES ____ NO

ATTACH A DECLARATION SIGNED BY EACH MEMBER OF THE BID EVALUATION COMMITTEE

THAT HE OR SHE DOES NOT HAVE A CONFLICT OF INTEREST IN THIS PROCUREMENT

5.1 A SPECIALIZED TECHNICAL GROUP WAS ORGANIZED TO ASSIST IN THIS PROCUREMENT:

YES NO

IF YES, THE MEMBERS OF THE SPECIALIZED TECHNICAL GROUP WERE APPOINTED:

DATE:
BY:

THE MEMBERS OF THE SPECIALIZED TECHNICAL GROUP ARE:

ATTACH A DECLARATION SIGNED BY EACH MEMBER OF THE SPECIALIZED TECHNICAL GROUP

THAT HE OR SHE DOES NOT HAVE A CONFLICT OF INTEREST IN THIS PROCUREMENT

6. SKIP THIS SECTION 6 IF A PRE-QUALIFICATION PROCEEDING WAS NOT CONDUCTED

PRE-QUALIFICATION PROCEEDING WAS CONDUCTED: ____YES ____NO

IF YES, THE PRE-QUALIFICATION PROCEEDING WAS USED BECAUSE:

IF A PRE-QUAILIFICATION PROCEEDING WAS CONDUCTED, THE INVITATION TO PRE-QUALIFY

WAS PUBLISHED ON:

IF A PRE-QUALIFICATION PROCEEDING WAS CONDUCTED, THE INVITATION TO BID WAS ISSUED

TO THE QUALIFIED CANDIDATES ON:

THE INVITATION TO BID WAS TRANSMITTED BY:

ATTACH COPY OF INVITATION TO PRE-QUALIFY, THE PRE-QUALIFICATION DOCUMENTS AND

THE INVITATION TO BID

73
7. IF THIS IS OPEN ADVERTISED BIDDING, THE INVITATION TO BID WAS PUBLISHED ON THE
FOLLOWING PUBLICATIONS ON THE DATES AS NOTED:
1)

2)
OTHER:

IF THIS IS AN OPEN ADVERTISED INTERNATIONAL BIDDING THE INVITATION TO BID WAS ALSO
PUBLISHED ON:

THE PLACE(S) OF PUBLICATION WAS (WERE):

ATTACH COPY OF EACH PUBLISHED INVITATION TO BID

7a. IF THIS IS RESTRICTED BIDDING, THE JUSTIFICATION FOR USING RESTRICTED BIDDING
IS:

THE INVITATION TO BID WAS SENT TO THE FOLLOWING CANDIDATES ON :

(insert date)

ATTACH COPY OF THE LETTER OF INVITATION TO BID

8. THE BID DOCUMENTS WERE REQUESTED/DOWNLOADED BY CANDIDATES.

(TOTAL NUMBER)
BID DOCUMENTS WERE DELIVERED TO EVERY CANDIDATE THAT REQUESTED THE BID
DOCUMENTS: ___YES ___NO

IF NO, THE FOLLOWING REQUESTERS DID NOT RECEIVE THE BID DOCUMENTS BECAUSE:

ATTACH A LIST OF CANDIDATES WHO WERE SENT THE BID DOCUMENTS. THIS RECORD
SHOULD ALSO INDICATE THAT THE FEE WAS RECEIVED AND STATE THE DATE OF THE
TRANSMISSION OF BID DOCUMENTS AND THE DATE(S) OF THE TRANSMISSION OF ANY
MODIFICATIONS TO THE BID DOCUMENTS.

9. THE BID DOCUMENTS WERE MODIFIED ON:

THE DEADLINE FOR SUBMISSION OF BIDS WAS POSTPONED: YES NO

ATTACH COPY OF BID DOCUMENTS AND ALL ADDENDA ISSUED

74
10. A PRE-BID MEETING WAS CONDUCTED: ____YES ____ NO
IF YES,
DATE:
LOCATION:
NUMBER IN ATTENDANCE:

ATTACH RECORD OF MEETING

11. THE ORIGINAL DEADLINE FOR SUBMITTING BIDS WAS:

DATE:
TIME:
PLACE:
IF THE DEADLINE WAS POSTPONED, THE FINAL DEADLINE WAS:
DATE:
TIME:
PLACE:

12. THE BIDS WERE OPENED:

DATE:
TIME:
PLACE:

ATTACH THE RECORD MADE AT THE BID OPENING

12. THE TOTAL NUMBER OF BIDS REFUSED BECAUSE THEY WERE RECEIVED AFTER THE
DEADLINE FOR SUBMISSION OF BIDS WAS:

ATTACH ANY RECORD OF COMMUNICATION BETWEEN THE PUBLIC BODY AND THE
CANDIDATE WHO SUBMITTED A BID THAT WAS REJECTED BECAUSE IT WAS LATE.

13. WERE ANY BIDS REJECTED BECAUSE THE PUBLIC BODY DETERMINED THAT THE CANDIDATE
THAT SUBMITTED THE BID GAVE OR PROMISED TO GIVE, DIRECTLY OR INDIRECTLY, TO ANY
CURRENT OR FORMER OFFICER OR EMPLOYEE OF THE PUBLIC BODY OR OTHER
GOVERNMENT AUTHORITY A GRATUITY IN ANY FORM, AN EMPLOYMENT OR ANY OTHER THING
OR SERVICE OF VALUE, AS AN INDUCEMENT WITH RESPECT TO AN ACT OR DECISION OF, OR
PROCEDURE FOLLOWED BY, THE PUBLIC BODY IN CONNECTION WITH THIS PROCUREMENT
PROCEEDING: _____YES ____NO

IF YES, THE NAME(S) OF THE CANDIDATE(S), THE REASON FOR REJECTION AND THE DATE
NOTICE GIVEN TO THE CANDIDATE ARE:

ATTACH ALL RECORDS OF COMMUNICATION BETWEEN THE PUBLIC BODY AND CANDIDATE
REJECTED BECAUSE OF CORRUPTIVE ACTIONS

75
14. A BID SECURITY WAS REQUIRED: _____ YES _____ NO

IF YES, THE AMOUNT WAS:

THE PERIOD OF VALIDITY OF BIDS WAS:

BIDDERS WERE ASKED TO EXTEND THE PERIOD OF VALIDITY: YES, NO

IF YES, THE PERIOD WAS EXTENDED FOR:

THE FOLLOWING BIDS WERE REJECTED BECAUSE THE BID SECURITY WAS DEFECTIVE:

THE FOLLOWING BID SECURITY WERE FORFEITED FOR THE REASONS STATED:

ATTACH A RECORD OF RECEIPT OF BID SECURITY

15. THE FOLLOWING BIDDERS WERE DISQUALIFIED BECAUSE THEY DID NOT SATISFY THE
QUALIFICATION REQUIREMENTS SET OUT IN THE BID DOCUMENT (STATE NAME AND REASON
DISQUALIFIED):

ATTACH ANY RECORD RELATED TO THE ASSESSMENT OF QUALFICATIONS OF THE BIDDERS

16. DURING THE REVIEW AND EVALUATION PROCESS, THE BID EVALUATION COMMITTEE
COMMUNICATED WITH THE FOLLOWING BIDDERS TO SEEK CLARIFICATION OF THE BID OR ANY
OTHER PURPOSE (IDENTIFY BIDDER AND STATE REASON FOR COMMUNICATION):

ATTACH THE RECORD OF COMMUNCIATION OR DISCUSSIONS

17. DURING THE REVIEW AND EVALUATION PROCESS, THE EVALUATION COMMITTEE REJECTED
THE FOLLOWING BID(S) BECAUSE THE BID(S) DID NOT SATIFY THE TECHNICAL REQUIREMENT
AS SET OUT IN THE BID DOCUMENTS:

ATTACH A RECORD OF THE EVALUATION OF EACH BID AND A RECORD OF THE EVALUATION
AND COMPARISON OF ALL BIDS NOT REJECTED

76
 17a. For two-stage bidding, on _______, THE INVITATION TO BID- SECOND STAGE
TOGETHER WITH THE REVISED BID DOCUMENTS WERE SENT TO THE FOLLOWING
CANDIDATES :

ATTACH COPY OF THE LETTER OF INVITATION TO BID SECOND STAGE AND A COPY OF THE
BID DOCUMENTS AS REVISED

18. THE PROCUREMENT PROCEEDING WAS CANCELLED BEFORE A CONTRACT WAS AWARDED:
______YES _______NO

IF YES, THE DATE AND REASON FOR THE DECISION WAS:

BIDDERS WERE NOTIFIED OF THE CANCELLATION:

DATE:
METHOD OF TRANSMISSION:

UNOPENED BIDS WERE RETURNED TO THE BIDDERS:

DATE:
METHOD OF TRANSMISSION:

ATTACH COPY OF NOTICE OF CANCELLATION OF THE PROCUREMENT PROCEEDING

19. NOTICE OF AWARD WAS SENT:

TO:
DATE:
METHOD OF TRANSMISSION:
REASON FOR SELECTING THIS BIDDER:

ATTACH COPY OF NOTICE OF AWARD

20. THE BIDDER FIRST SELECTED SATISFIED THE CONDITIONS FOR SIGNING THE CONTRACT:
____YES ____NO

IF NO, THE REASON THE CONTRACT FAILED WAS:

IF THE CONTRACT WAS NOT FINALIZED WITH THE BIDDER FIRST SELECTED, THE BIDDER
CHOSEN FOR AWARD WAS:
NAME OF BIDDER:
REASONS FOR SELECTING THIS BIDDER:

21. NOTICE OF AWARD WAS PUBLISHED:

DATE:
NAME OF PUBLICATION:

ATTACH COPY OF PUBLISHED NOTICE

77
22. THE AMOUNT OF PERFORMANCE SECURITY REQUIRED WAS:

THE PERFORMANCE SECURITY WAS PROVIDED:

DATE:
FORM:
BY:

ATTACH COPY OF PERFORMANCE SECURITY

23. THE CONTRACT WAS SIGNED:

DATE:
PARTIES TO THE CONTRACT:
ANTICIPATED COMPLETION DATE:

THE UNIT WITHIN PUBLIC BODY RESPONSIBLE FOR ADMINISTRATING THE CONTRACT IS:

THE PERSON RESPONSIBLE FOR ADMINISTERING THE CONTRACT IS:

NAME:
TITLE:
CONTACT INFORMATION:

ATTACH COPY OF THE PROCUREMENT CONTRACT

24. BID SECURITY WAS RETURNED TO UNSUCCESSFUL BIDDERS ON:

ATTACH RECORD OF RETURN OF BID SECURITY AND ADVICE TO UNSUCCESSFUL BIDDERS

ABOUT AWARD OF CONTRACT

25. REQUEST(S) FOR REVIEW OF PUBLIC BODYS ACTS OR OMISSIONS DURING THE COURSE OF
THIS PROCUREMENT PROCEEDING WAS (WERE) FILED BEFORE THE PUBLIC BODY AND/OR
THE INDEPENDENT REVIEW PANEL:
_____YES _____NO

IF YES THE CIRCUMSTANCES OF EACH REVIEW ACTION WAS:

DATE:
NAME OF BIDDER:
LEVEL OF REVIEW(S):
GROUNDS STATED FOR REVIEW:

THE PROCUREMENT PROCEEDING WAS SUSPENDED? ____YES ____NO

DATE AND PERIOD OF SUSPENSION WAS:

What was the disposition of the review by the public body or the Independent Review
Panel?

Attach all records of review and suspension and a copy of each decision issued

78
26. A THIRD PARTY CONSULTANT ASSISTED THE PUBLIC BODY WITH THIS PROCUREMENT:
____YES ____NO

IF YES:
NAME OF CONSULTANT:
ROLE OR FUNCTION OF THE CONSULTANT IN THE PROCUREMENT WAS:

27. THIS PROCUREMENT WAS CONDUCTED IN CO-ORDINATION WITH ANOTHER PUBLIC BODY TO
SATISFY COMMON NEEDS: _____YES ____ NO

IF YES, THE PUBLIC BODIES PARTICIPANTING IN THIS PROCUREMENT WERE:

79
 RECORD OF CONTRACT ADMINISTRATION

A. DESCRIBE EACH AMENDMENT TO THE PROCUREMENT CONTRACT AND INCLUDE THE DATE
AND JUSTIFICATION FOR AMENDING THE CONTRACT:

ATTACH CONTRACT AMENDMENTS

B. DESCRIBE EACH PRICE ADJUSTMENT GRANTED AND INCLUDE DATE, AMOUNT AND REASON
FOR ADJUSTMENT AND METHODOLOGY FOR CALCULATING AMOUNT:

ATTACH RECORDS OF PRICE ADJUSTMENTS

C. DESCRIBE EACH CLAIM IN DISPUTE AND THE RESOLUTION OR OUTCOME OF DISPUTE:

ATTACH RECORDS OF DISPUTES AND CLAIMS

D. CONTRACTOR OR SUPPLIER WAS PAID WITHIN THIRTY DAYS OF INVOICE ____YES ___NO

IF NO,
DATE INVOICE RECEIVED:
DATE INVOICE PAID:
REASON FOR DELAY IN PAYMENT:

E. CONTRACT WAS COMPLETED ON:

F. FINAL PAYMENT WAS MADE ON:

80
 INSTRUCTIONS FOR COMPLETING
RECORD OF PUBLIC PROCUREMENT PROCEEDING:
OPEN ADVERTISED, TWO-STAGED OR RESTRICTED BIDDING

General: Regulation 70 of the Public Procurement Regulations 2008 requires a public

body to make a record of the conduct of each procurement action and to keep the record in
its procurement files.

Item 1:

A public body is any central or local state institution, as well as any other juridical
person, who has at his disposal public funds for procurement.

Item 2:

Briefly describe what the public body intends to buy. The description should identify
the type of goods, works, or services to be purchased and also explain briefly how the public
body intends to use the purchase. The description might include a list of the essential
physical characteristics of the object of the procurement and the functions that the object is
intended to serve. Procurement for works should identify the site of the work and
procurement for goods should describe the type of delivery.

Item 3:

The estimated value of the procurement should include the total amount of
anticipated expenditure including any duties or taxes that will apply.

Public bodies should not divide purchases into multiple procurements in order to
avoid procurement requirements that would apply if the purchases were aggregated.

Item 4:

The responsibilities and functions of the procurement team are discussed in the
procurement planning section of User Guide (Vol. I).

Avoiding conflicts of interest in the procurement system prevents corruption and

builds public trust in the system. When a person making decisions about the procurement
for the public body also has a financial interest in the outcome of the procurement, there is
an opportunity for bias or favoritism to taint the procurement proceeding. The individuals
personal interest might come into conflict with the publics interest in the exercise of his or
her duties and judgement during the procurement. Even the appearance of conflict of
interest should be avoided as competent suppliers and contractors generally refuse to
participate in procurement systems that they perceive as unfair and dishonest. Accordingly,
before being appointed a member of the procurement team, either as part of the bid
evaluation committee or specialized technical group (see Items 5 and 5.1 below) the
individual should declare in writing that he or she does not foresee a conflict of interest
situation arising in this procurement and that in the event a situation should arise that he or
she would declare the conflict and immediately remove himself or herself from the
procurement team.

81
Item 5:

The bid evaluation committee should generally have at least three members, and
a minimum of five members if the procurement is for design.
For the purpose of designating members of Bid Evaluation Committees, a public
body shall maintain a list of qualified evaluators.
When constituting a bid evaluation committee, a public body shall take into
account the proper combination of expertise required and ensure that the selected
evaluators have the required competence and expertise.
A public body may, at the request of a bid evaluation committee, appoint an
adviser or a technical sub-committee to assist it.
The responsibilities and functions of the evaluation committee are discussed in the
procurement planning section of the User Guide.

Item 5.1:

A specialized technical group is established only for very large and complex
procurements.

Item 6:

The Public Procurement Act authorizes the use of pre-qualification proceedings.

However, this procedure should be used only in very limited circumstances because
beginning procurement with a pre-qualification proceeding increases the cost and duration of
the procurement process and can discourage new competitors. The law requires a pre-
qualification proceeding to be used in the case of large or complex procurements of good or
works. Accordingly, a pre-qualification proceeding should be used infrequently and only for
very major procurements such as procurement for custom-designed major equipment or for
building an water treatment plant or other procurements of similar scope and magnitude.

If a pre-qualification proceeding is conducted, the Standard Pre-qualification

Documents should be used. The standard form for the Invitation To Pre-qualify is included
in the Standard Pre-qualification Documents. The standard form for the Invitation To
Bid is included in the Standard Bidding Documents.

Item 7:

If this is a Restricted Bidding, skip this Item 7 and proceed to Item 7a.

The invitation to bid informs potential bidders of a procurement opportunity

information in the invitation to bid should be sufficient for a potential bidder to determine if it
has sufficient interest in the procurement to obtain a copy of the Bid Documents. The Act
requires that the invitation to bid shall contain, as a minimum, (a) the name and address of
the public body; (b) a brief description of the goods, works or services to be obtained,
including desired time limit for delivery or completion; (c) the means and conditions for
obtaining the Bid Documents and the place which they may be obtained; () the place and
deadline for the submission of the bids; (d) the place and time for opening of bids, along with
an announcement that bidders representatives are allowed to attend the opening of bids.
The standard form for the Invitation To Bid is included in the Standard Bid Documents.

The invitation to bid must be published in the Public Procurement Bulletin and at
least two national newspapers of wide circulation. Further, the time period between the

82
publication of the invitation to bid and availability of Bid Documents and the deadline for
submission of bids must give bidders a reasonable amount of time to prepare bids. The
minimum period allowed in an Open Advertised Bidding is 30 days, except in the case of
submission of bids made solely by facsimile, email and other electric means. Public bodies
should not consider this 30-day minimum a standard to be used in every procurement action.
It is extremely important to give bidders adequate time to prepare their bids and the amount
of time needed must be considered under the circumstances of each procurement action.

If open advertised international bidding procedures are used, the invitation to bid
also must be formulated in a language generally used in international trade and published in
a newspaper of sufficient circulation to attract foreign competition. In addition, the minimum
number of days between the publication of the invitation to bid and availability of Bid
Documents and the deadline for submission of bids is increased to 60 days. Again this time
period should be evaluated for every procurement activity.

Item 7a:

If Restricted Bidding is used, this Item 7a must be completed. Use of restricted

Bidding must be justified. The Public Procurement Act allows Restricted Bidding to be
used when the goods, works, or services are available only from a limited number of
suppliers; and when the estimated value of the contract does not exceed a threshold set out
in the procurement regulations. Here, the public body should explain how and why the
procurement satisfied these conditions.

In Restricted Bidding, the invitation to bid should be sent to at least five qualified
candidates. The candidates should be chosen in a non-discriminatory manner from a list of
qualified candidates maintained by the public body and updated at least twice a year. The
public body should allow candidates at least 15 days to prepare bids after sending the letter
of invitation to bid.

Item 8:

The bid documents should provide bidders with all the information needed to
participate in the procurement and prepare bids. The appropriate Standard Bid Documents
must be completed and used in each procurement activity. The procurement team is
responsible for preparing the Bid Documents and this Users Guide provides guidance for
preparing the documents.

Once the invitation to bid is issued, the public body should be prepared to forward the
Bid Documents expeditiously to bidders as requested. The price for the Bid Documents
cannot exceed the cost of reproduction and delivery to candidates. To implement provisions
for payment, the public body must provide an efficient means for collecting, recording and
safeguarding the payments made for the Bid Documents.

To deter discrimination among candidates, it is important that a written record be

maintained that lists all requests for Bid Documents and shows when the request was made
and when the documents were sent. This record is also important to ensure that
modifications are sent to all bidders that received the Bid Documents.

Item 9:

Public bodies may modify Bid Documents either on their own initiative or in response
to an inquiry by a candidate. Addendum modifying Bid Documents must be communicated
promptly to all of the candidates who purchased the Bid Documents. Further, if less than
one-third of the time allowed for preparation of bids remains when the addendum is issued,

83
the public body must extend the deadline for submitting bids by the same number of days.
For example, if the invitation to bid is published on 1 January with an original deadline date
of 1 April, the public body can issue an addendum on 15 February without extending the
deadline, but would need to extend the deadline to 15 April if an addendum is issued on 15
March.

Item 10:

A procurement is only as successful as the quality of the bids received. Therefore

the public body wants to do what it can to help and encourage candidates to submit good
bids. For this reason, a pre-bid meeting is often very worthwhile. It gives all candidates an
opportunity to ask questions about the technical and procedural requirements of the
procurement. All candidates who purchased the Bid Documents must be invited to attend.
The meeting should be organized by the procurement team and as many members as
possible of the team.

Item 11:

The procedures applied in Mauritius require bidders to deliver bids by hand on the
date, time and place stated in the Bid Documents unless another means of delivery is
provided explicitly in the Bid Documents. If bidders are permitted to deliver the bids prior to
this date and time, the public body must provide a procedure to accept delivery and to
safeguard the bids until the bid opening.

If the deadline for submission of bids is postponed, the public body must give the
candidates notice in the form of an addendum to the Bid Documents. Consequently, the
entry in the record in this Item 11 must be consistent with the information and documents
recorded in Item 9 of this record.

Item 12:

The bid opening should follow immediately after the deadline for submission of bids.
The bid opening must be transparent and open to all bidders or their representatives.
Members of the procurement team may attend the bid opening. The name of each bidder
and the total amount of each bid shall be read out aloud and recorded, and a copy of the
record shall be made available to any bidder upon request.

Item 13:

Bids received after the deadline for submission must be returned unopened.

Item 14:

The Public Procurement Act requires the public body to reject a bid if the candidate
engages in corrupt actions. While this prohibition helps protect the process from abuse by
bidders, it could be used unfairly by the responsible officers in the public bodies. To deter
such abuse, it is important to ensure that a written record is made of the action and that the
bidder promptly receives written notice of the rejection.

Item 15:

If this is Open Advertised Bidding, bid security is required in order to discourage

irresponsible bids. If this is Restricted Bidding, the public body may decide if a bid security
should be required. The amount of bid security must be stated in the Bid Documents and
should be set at a fixed sum between 2 and 5 percent of the estimated contract value. Bid

84
security must be in the form of a bank guarantee. The Form for Bid Security is included in
the Standard Bid Documents. A bid must be rejected if it is not submitted with a bid
security that satisfied all the requirements for bid security set out in the Bid Documents.

The bid security must be valid for the period stated in the Bid Documents and begins
to run on the date of the deadline for submission of bids. This validity period should be long
enough to keep the bids valid until the procurement contract is awarded. However, if the
review and evaluation process takes longer than anticipated, it may be necessary to ask
bidders to extend the validity period of their bids. Bidders that agree to the extension must
also extend the period of the bid security. A bidder who refuses to extend the validity period
and its bid security will have its bid rejected, but under these circumstances the bid security
will be returned to the bidder.

The public body has a right to keep the bid security if: (a) the bidder withdraws its bid
within the validity period; (b) the bid is rejected because the candidate engaged in illegal
actions as described in Item 14 above; (c) the bidder fails to accept a correction of an
arithmetical error in its bid discovered during the examination of bids; or (d) it is chosen to be
the successful bidder but then repudiates the contract or fails to furnish performance
security.

Item 16:

A bid must be rejected if the bidder does not satisfy the general and specific
qualification requirements set out in the Bid Documents. The qualification requirements are
defined in the Schedule of Qualification Requirements that is included in the Standard
Bid Documents.

When a bidder is disqualified, the public body should notify the bidder promptly and
return its bid security.

Item 17:

The evaluation committee may ask bidders for clarification of their bids in order to
assist in the examination and evaluation of bids. However, no change in the substance of
the bid, including changes in price, shall be sought, offered or permitted. Notwithstanding
this firm rule, the public body may correct purely mathematical errors it discovers, but it must
give the bidder prompt notice of the correction. The Public Procurement Act also requires
that communications between the candidates and the public bodies shall be only in writing. If
the communication is made in any other form, it shall be referred only to the written
documents and the content of that communication shall be confirmed in writing, immediately
after the communication.

Item 18:

A bid must conform to all the technical requirements set out in the Bid Documents. If
the bid does not satisfy the requirements, it must be rejected. A bid that conforms is termed
responsive because it fully responds to the requirements requested. However, a bid may
be considered responsive if it contains minor deviations that do not materially alter or depart
from the characteristics, terms, conditions and other requirements set forth in Bid
Documents or if it contains errors or oversights that are capable of being corrected without
touching on the substance of the bid.

Once the bids are reviewed and determined to be responsive, the responsive bids
must be compared to determine the successful bid on the bases of the evaluation criteria set
out in the Bid Documents. These criteria may be price alone or the lowest evaluated bid.

85
The evaluation committee must make a summary record of the evaluation and comparison
bids.

Item 18a:

The technical bid submitted at the first stage of the Two Stage Bidding must satisfy
the technical requirements set out in the Bid Documents. If the bid is unsatisfactory and has
no chance of being competitive in the second stage it should be rejected. All candidates that
submitted satisfactory bids in the first stage are invited to submit priced bids in the second
stage of the process. The invitation should include the final technical specifications as might
be revised after the first stage of the procedure.

Item 19:

The Public Procurement Act permits the public body to cancel the procurement if
justified on sound economic grounds. Prompt notice of the cancellation must be given to all
participating bidders giving reason for the cancellation. It is not required to justify the
decision nor can the public body be held liable for any damages bidders suffer because the
procurement is cancelled. If the procurement is canceled before the bid opening, any bids
already received are to be returned unopened.

Item 20:

A public body shall notify the successful bidder prior to the expiry of the period of bid
validity that its bid has been accepted. The notification of award shall specify that the bidder
must sign the contract and submit its performance security within 14 days for local bidders
and 21 days for overseas bidders from receipt of the notice. The Form for Notice of Award
is included in the Standard Bid Documents.

Item 21:

If the first bidder that was chosen as the successful bidder refuses to sign the
procurement contract or fails to furnish performance security, the public body may award the
contract to the second-ranking bidder. In such case, the public body has a right to retain the
bid security from the first chosen bidder.

Item 22:

The public body must publish notice of the award in the Bulletin for Public
Procurement before the contract is signed.

Item 23:

Performance security shall be set about 10 percent of the contract value. The Form
for Performance Security is included in the Standard Bidding Documents.

Item 24:

The notice of award constitutes the formation of a contract between the parties and
the existence of a contract is confirmed by the signing of the contract document
incorporating all agreements between the parties. The Contract Form is included in the
Standard Bid Documents.

86
Item 25:

Bid security should be promptly returned to the unsuccessful bidders together with an
advice on the Award of Contract giving name of successful bidder and the amount of
contract value.

Item 26:

The Act establishes an Independent Review Panel (Section 44) for the purpose of
adjudicating claims by bidders who claim loss or injury as a result of breaches of duty by the
public body in the conduct of the procurement proceedings. Details of these bid challenge
procedures are discussed in Part VIII of the User Guide.

Item 27:

A record identifying any independent consultant involved in the procurement is

important to ensure accountability and transparency. It is also important in determining if a
consultant should be prohibited from participating in subsequent procurements based upon
Technical Specifications or Terms of Reference that the consultant developed in a prior
procurement.

Item 28:

In the case that more than one public body needs the same kind of goods, works or
services, the Procurement Policy Office may assign to one of those public bodies the task of
conducting the procurement on behalf of the others.

87
 Appendix D

Standard Bidding Documents

for the

Procurement of Goods

[refer to website: ppo.gov.mu Ref. G/SBD1]

88
 Appendix E

Standard Bidding Documents

for the

Procurement for Works

[refer to website: ppo.gov.mu Ref. W/SBD7]

89
 Appendix F

Standard Bidding Documents

for the

Procurement of Large or Complex Works

[refer to website: ppo.gov.mu Ref. W/SBDPLC6]

90
 Appendix G

Record of Procurement Action for Request for Proposals

Procurement Reference Number:

Record required under GOVERNMENT OF MAURITIUS PUBLIC PROCUREMENT ACT 2006 AND
IMPLEMENTING REGULATIONS 2008.

All attachments become part of the record of the procurement.

Instructions for completing this form are set out as an endnote to this form.

This record must be retained for the period of time set out in the Law on Archives.

1.
NAME OF PUBLIC BODY

ADDRESS OF PUBLIC BODY

TELEPHONE NUMBER

FAX NUMBER

EMAIL ADDRESS

2. OBJECT OF THE PROCUREMENT IS :

3. ESTIMATED VALUE OF THE PROCUREMENT IS:

METHODOLOGY FOR ESTIMATING VALUE WAS:

4. THE MEMBERS OF THE PROCUREMENT TEAM ARE:

PROCUREMENT SPECIALIST-
PROCUREMENT SPECIALIST-
OTHER-
OTHER-
EVERY MEMBER OF THE PROCUREMENT UNIT HAS DECLARED THAT HE/SHE HAS NO CONFLICT
OF INTEREST IN THIS PROCUREMENT. ____ YES ____ NO

ATTACH A DECLARATION SIGNED BY EACH MEMBER OF THE PROCUREMENT TEAM THAT HE

OR SHE DOES NOT HAVE A CONFLICT OF INTEREST IN THIS PROCUREMENT

91
5. THE EVALUATION COMMITTEE WAS APPOINTED ON:
THE MEMBERS OF THE EVALUATION COMMITTEE ARE (LIST NAME AND JOB TITLE OF EACH):
HEAD OF COMMITTEE:

EVERY MEMBER OF THE EVALUATION COMMITTEE HAS DECLARED THAT HE/SHE HAS NO
CONFLICT OF INTEREST IN THIS PROCUREMENT. ____ YES ____ NO

ATTACH A DECLARATION SIGNED BY EACH MEMBER OF THE EVALUATION COMMITTEE THAT

HE OR SHE DOES NOT HAVE A CONFLICT OF INTEREST IN THIS PROCUREMENT

5.1 A SPECIALIZED TECHNICAL GROUP WAS ORGANIZED TO ASSIST IN THIS PROCUREMENT:

YES NO

IF YES, THE MEMBERS OF THE SPECIALIZED TECHNICAL GROUP WERE APPOINTED:

DATE:
BY:

THE MEMBERS OF THE SPECIALIZED TECHNICAL GROUP ARE:

ATTACH A DECLARATION SIGNED BY EACH MEMBER OF THE SPECIALIZED TECHNICAL GROUP

THAT HE OR SHE DOES NOT HAVE A CONFLICT OF INTEREST IN THIS PROCUREMENT

6. THE JUSTIFICATION FOR USING REQUEST FOR PROPOSALS IS:

7. THE REQUEST FOR PROPOSALS WAS SENT TO THE FOLLOWING CANDIDATES ON :

(insert date)

ATTACH COPY OF THE REQUEST FOR PROPOSALS

8. THE REQUEST FOR PROPOSALS WAS MODIFIED ON:

THE DEADLINE FOR SUBMISSION OF PROPOSALS WAS POSTPONED: YES NO

ATTACH COPY OF ALL ADDENDA ISSUED

92
9. A PRE-PROPOSAL MEETING WAS CONDUCTED: ____YES ____ NO
IF YES,
DATE:
LOCATION:
NUMBER IN ATTENDANCE:

ATTACH RECORD OF MEETING

10. THE ORIGINAL DEADLINE FOR SUBMITTING PROPOSALS WAS:

DATE:
TIME:
PLACE:

IF THE DEADLINE WAS POSTPONED, THE FINAL DEADLINE WAS:

DATE:
TIME:
PLACE:

11. THE TOTAL NUMBER OF PROPOSALS RECEIVED BY THE DEADLINE WERE:

12. THE TOTAL NUMBER OF PROPOSALS REFUSED BECAUSE THEY WERE RECEIVED AFTER THE
DEADLINE FOR SUBMISSION OF PROPOSALS WAS:

ATTACH ANY RECORD OF COMMUNICATION BETWEEN THE PUBLIC BODY AND THE
CANDIDATE WHO SUBMITTED A PROPOSAL THAT WAS REJECTED BECAUSE IT WAS LATE.

13. WERE ANY PROPOSALS REJECTED BECAUSE THE PUBLIC BODY DETERMINED THAT THE
CANDIDATE THAT SUBMITTED THE PROPOSAL GAVE OR PROMISED TO GIVE, DIRECTLY OR
INDIRECTLY, TO ANY CURRENT OR FORMER OFFICER OR EMPLOYEE OF THE PUBLIC BODY OR
OTHER GOVERNMENT AUTHORITY A GRATUITY IN ANY FORM, AN EMPLOYMENT OR ANY
OTHER THING OR SERVICE OF VALUE, AS AN INDUCEMENT WITH RESPECT TO AN ACT OR
DECISION OF, OR PROCEDURE FOLLOWED BY, THE PUBLIC BODY IN CONNECTION WITH THIS
PROCUREMENT PROCEEDING: _____YES ____NO

IF YES, THE NAME(S) OF THE CANDIDATE(S), THE REASON FOR REJECTION AND THE DATE
NOTICE GIVEN TO THE CANDIDATE ARE:

ATTACH ALL RECORDS OF COMMUNICATION BETWEEN THE PUBLIC BODY AND CANDIDATE
REJECTED BECAUSE OF CORRUPTIVE ACTIONS

14. THE FOLLOWING CANDIDATES WERE DISQUALIFIED BECAUSE THEY DID NOT SATISFY THE
QUALIFICATION REQUIREMENTS SET OUT IN THE REQUEST FOR PROPOSAL
DOCUMENTS(STATE NAME AND REASON DISQUALIFIED):

ATTACH ANY RECORD RELATED TO THE ASSESSMENT OF QUALFICATIONS OF THE

CANDIDATES

93
15. DURING THE REVIEW AND EVALUATION PROCESS, THE EVALUATION COMMITTEE
COMMUNICATED WITH THE FOLLOWING CANDIDATES TO SEEK CLARIFICATION OF THE
PROPOSAL OR ANY OTHER PURPOSE (IDENTIFY BIDDER AND STATE REASON FOR
COMMUNICATION):

ATTACH THE RECORD OF COMMUNCIATION OR DISCUSSIONS

16. DURING THE REVIEW AND EVALUATION PROCESS, THE EVALUATION COMMITTEE REJECTED
THE FOLLOWING PROPOSALS(S):

ATTACH A RECORD OF THE EVALUATION OF EACH BID AND A RECORD OF THE EVALUATION
AND COMPARISON OF ALL PROPOSALS NOT REJECTED

17. THE PROCUREMENT PROCEEDING WAS CANCELLED BEFORE A CONTRACT WAS AWARDED:
______YES _______NO

IF YES, THE DATE AND REASON FOR THE DECISION WAS:

CANDIDATES WERE NOTIFIED OF THE CANCELLATION:

DATE:
METHOD OF TRANSMISSION:

UNOPENED PROPOSALS WERE RETURNED TO THE CANDIDATES:

DATE:
METHOD OF TRANSMISSION:

ATTACH COPY OF NOTICE OF CANCELLATION OF THE PROCUREMENT PROCEEDING

18. THE PUBLIC BODY HELD NEGOTIATIONS WITH THE SUCCESSFUL CANDIDATE ON:

19. NOTICE OF AWARD WAS SENT:

TO:
DATE:
METHOD OF TRANSMISSION:
REASON FOR SELECTING THIS CANDIDATE:

ATTACH COPY OF NOTICE OF AWARD

94
20. THE CANDIDATE FIRST SELECTED SATISFIED THE CONDITIONS FOR SIGNING THE CONTRACT:
____YES ____NO

IF NO, THE REASON THE CONTRACT FAILED WAS:

IF THE CONTRACT WAS NOT FINALIZED WITH THE CANDIDATE FIRST SELECTED, THE
CANDIDATE CHOSEN FOR AWARD WAS:
NAME OF CANDIDATE:
REASONS FOR SELECTING THIS CANDIDATE:

21. NOTICE OF AWARD WAS PUBLISHED:

DATE:
NAME OF PUBLICATION:

ATTACH COPY OF PUBLISHED NOTICE

22. THE CONTRACT WAS SIGNED:

DATE:
PARTIES TO THE CONTRACT:
ANTICIPATED COMPLETION DATE:

THE UNIT WITHIN PUBLIC BODY RESPONSIBLE FOR ADMINISTRATING THE CONTRACT IS:

THE PERSON RESPONSIBLE FOR ADMINISTRATING THE CONTRACT IS:

NAME:
TITLE:
CONTACT INFORMATION:

ATTACH COPY OF THE PROCUREMENT CONTRACT AND COPY OF ADVICE TO UNSUCCESSFUL

BIDDERS ABOUT AWARD OF CONTRACT

95
23. REQUEST(S) FOR ADMINISTRATIVE REVIEW OF PUBLIC BODYS ACTS OR OMISSIONS DURING
THE COURSE OF THIS PROCUREMENT PROCEEDING WAS(WERE) FILED:
_____YES _____NO

IF YES THE CIRCUMSTANCES OF EACH REVIEW ACTION WAS:

DATE:
NAME OF CANDIDATE:
LEVEL OF REVIEW(S):
GROUNDS STATED FOR REVIEW:

THE PROCUREMENT PROCEEDING WAS SUSPENDED? ____YES ____NO

DATE AND PERIOD OF SUSPENSION WAS:

ATTACH ALL RECORDS OF REVIEW AND SUSPENDSION AND A COPY OF EACH DECISION
ISSUED

24. A THIRD PARTY CONSULTANT ASSISTED THE PUBLIC BODY WITH THIS PROCUREMENT:
_____ YES ____ NO

IF YES:
NAME OF CONSULTANT:
ROLE OR FUNCTION OF THE CONSULTANT IN THE PROCUREMENT WAS:

25. THIS PROCUREMENT WAS CONDUCTED IN CO-ORDINATION WITH ANOTHER PUBLIC BODY OR
BODIES TO SATISFY COMMON NEEDS: _____YES ____ NO

IF YES, THE PUBLIC BODIES PARTICIPATING IN THIS PROCUREMENT WERE:

96
 RECORD OF CONTRACT ADMINISTRATION
A. DESCRIBE EACH ADMENDMENT TO THE PROCUREMENT CONTRACT AND INCLUDE THE DATE
AND JUSTIFICATION FOR ADMENDING THE CONTRACT:

ATTACH CONTRACT AMENDMENTS

B. DESCRIBE EACH PRICE ADJUSTMENT GRANTED AND INCLUDE DATE, AMOUNT AND REASON
FOR ADJUSTMENT AND METHODOLOGY FOR CALCULATING AMOUNT:

ATTACH RECORDS OF PRICE ADJUSTMENTS

C. DESCRIBE EACH CLAIM IN DISPUTE AND THE RESOLUTION OR OUTCOME OF DISPUTE:

ATTACH RECORDS OF DISPUTES AND CLAIMS

D. CONTRACTOR OR SUPPLIER WAS PAID WITHIN THIRTY DAYS OF INVOICE ____YES ___NO

IF NO,
DATE INVOICE RECEIVED:
DATE INVOICE PAID:
REASON FOR DELAY IN PAYMENT:

E. CONTRACT WAS COMPLETED ON:

F. FINAL PAYMENT WAS MADE ON:

97
 INSTRUCTIONS FOR COMPLETING
RECORD OF PUBLIC PROCUREMENT ACTION:

REQUEST FOR PROPOSALS

General: The Act provides that the public body may use Request for Proposals for
consulting services or other professional services.

Item 1:

A public body is any central or local state institution, as well as any other juridical
person, who has at his disposal public funds for procurement.

Item 2:

Briefly describe what the public body intends to procure. The description should
identify the type of services to be purchased and the key deliverables or objectives of the
services.

Item 3:

The estimated value of the procurement should include the total amount of
anticipated expenditure including any duties or taxes that will apply.

Public bodies should not divide purchases into multiple procurements in order to
avoid procurement requirements that would apply if the purchases were aggregated.

Item 4:

The responsibilities and functions of the procurement team are discussed in the
procurement planning section of the User Guide.

Avoiding conflicts of interest in the procurement system prevents corruption and

builds public trust in the system. When a person making decisions about the procurement
for the public body also has a financial interest in the outcome of the procurement, there is
an opportunity for bias or favoritism to taint the procurement proceeding. The individuals
personal interest might come into conflict with the publics interest in the exercise of his or
her duties and judgment during the procurement. Even the appearance of conflict of interest
should be avoided as competent suppliers and contractors generally refuse to participate in
procurement systems that they perceive as unfair and dishonest. Accordingly, before being
appointed a member of the procurement team, either as part of the procurement unit,
evaluation committee or specialized technical group (see Items 5 and 5.1 below) the
individual should declare in writing the he or she does not foresee a conflict of interest
situation arising in this procurement and that in the event a situation should arise that he or
she would declare the conflict and immediately remove himself or herself from the
procurement team.

ITEM 5:

The evaluation committee should normally have at least three members. The
responsibilities and functions of the evaluation committee are discussed in the procurement
planning section of the User Guide.

98
ITEM 5.1:

A specialized technical group is established only for very large and complex
procurements.

Item 6:

The public body should state the reasons it has chosen to use a Request for
Proposal procedure for this procurement.

Item 7:

The Request for Proposals should be sent to preferably six but not less than three
qualified candidates.

The Request for Proposals should provide candidates with all the information
needed to participate in the procurement and prepare proposals. The appropriate Standard
Proposal Documents must be completed and used. The procurement team is responsible
for preparing the Proposal Documents.

Item 8:

Public bodies may modify the Request for Proposal Documents either on their own
initiative or in response to an inquiry by a candidate. Addenda modifying Request for
Proposal Documents must be communicated promptly to all of the selected candidates.
Further, if less than one-third of the time allowed for the preparation of proposals remains
when the addendum is issued, the public body should extend the deadline for submitting
proposals by the same number of days.

Item 9:

A procurement of consulting services is only as successful as the quality of the

proposals received. Therefore the public body wants to do what it can to help and
encourage candidates to submit good proposals. For this reason, a pre-proposal meeting is
often worthwhile. It gives all candidates an opportunity to ask questions about the technical
and procedural requirements of the procurement. All of the selected candidates should be
invited to attend. The meeting should be organized by the procurement team and as many
members as possible of the team. The specialized technical group should attend the
meeting.

Item 10:

The procedures applied in Mauritius require parties submitting proposals to deliver

them by hand at the date, time and place stated in the Request for Proposals unless another
means of delivery is provided explicitly in the Request for Proposals. If candidates are
permitted to deliver proposals prior to this date and time, the public body must provide a
procedure to accept delivery and to safeguard the proposals.

If the deadline for submission of proposals is postponed, the public body must give
the candidates notice in the form of an addendum to the Request for Proposals.

99
Item 11:

The public body should address the Request for Proposals to a sufficient number of
candidates to ensure competition in the procurement.

Item 12:

Proposals received after the deadline for submission must be returned unopened.

Item 13:

The Act requires the public body to reject a proposal if the candidate engages in
corrupt actions. While this prohibition helps protect the process from abuse by candidates, it
could be used unfairly by the public officials with responsibility for the procurement. To deter
such abuse, it is important to ensure that a written record is made of the action and that the
candidate promptly receives written notice of the rejection.

Item 14:

A proposal must be rejected if the candidate does not satisfy the general and specific
qualification requirements set out in the Request for Proposals. The qualification
requirements are defined in the Schedule of Qualification Requirements that is included
in the Standard Proposal Documents.

Item 15:

The evaluation committee may ask candidates for clarification of their proposals in
order to assist in the examination and evaluation of proposals. However, no change in the
substance of the proposal, should be sought, offered or permitted. The Act also requires
that communications between the candidates and the public bodies shall be only in writing. If
the communication is made in any other form, it shall be referred only to the written
documents and the content of that communication shall be confirmed in writing, immediately
after the communication.

Item 16:

A proposal must satisfy all the technical requirements set out in the Terms of
Reference in the Proposal Documents. If it does not satisfy the requirements, it should be
rejected. Once the proposals are reviewed and determined to be satisfactory, the proposals
must be compared to determine the successful proposal on the bases of the evaluation
criteria and methodology set out in the Request for Proposals. The evaluation committee
must make a summary record of the evaluation and comparison of proposals.

Item 17:

The Act permits the public body to cancel the procurement if justified on sound
economic grounds. Prompt notice of the cancellation must be given to all participating
candidates. Upon request, the public body must explain the decision to the prospective
candidates but it is not required to justify the decision nor can the public body be held liable
for any damages candidates suffer because the procurement is cancelled. If the
procurement is canceled before the deadline for submission of proposals, the proposals
already received are to be returned unopened.

100
Item 18:

The public body may negotiate with the successful candidate with respect to the
content of their proposal and may seek or permit the revision of this proposal.

Item 19:

A public body shall notify the successful candidate that its proposal has been
accepted. The notification of award shall specify that the candidate must sign the contract
within 15 days from receipt of the notice. The Form for Notice of Award is included in the
Standard Proposal Documents.

Item 20:

If the first candidate that was chosen as the successful candidate refuses to sign the
procurement contract, the public body may award the contract to the second-ranking
candidate.

Item 21:

The public body must publish notice of the award in the Bulletin for Public
Procurement before the contract is signed.

Item 22:

The notice of award constitutes the formation of a contract between the parties and
the existence of a contract is confirmed by the signing of the contract document
incorporating all agreements between the parties. The Contract Form is included in the
Standard Proposal Documents.

Unsuccessful bidders should be informed of the Award of Contract.

Item 23:

The Act permits any candidate to ask the public body to consider alleged breaches of
the procurement requirements as set out in the procurement regulations.

Item 24:

A record identifying any independent consultant involved in the procurement is

important to ensure accountability and transparency. It is also important in determining if a
consultant should be prohibited from participating in subsequent procurements based upon
Technical Specifications or Terms of Reference that the consultant developed in a prior
procurement.

Item 25:

The Act specifically provides that in the case that more than one public body needs
the same kind of services; the Policy Office may assign to one of those public bodies the
task of conducting the procurement on behalf of the other public bodies.

101
 Appendix H

Standard Request for Proposals:

Selection of Consultants

[refer to website: ppo.gov.mu Ref. SC/SBD19]

102
 Appendix I

Record of Procurement Action for Request for Sealed Quotations

(This form is applicable for procurement of Rs1M and above).

Procurement Reference Number:
Record required under GOVERNMENT OF MAURITIUS PUBLIC PROCUREMENT ACT 2006 AND
IMPLEMENTING REGULATIONS 2008.

All attachments become part of the record of the procurement.

Instructions for completing this form are set out as an endnote to this form.

This record must be retained for the period of time set out in the Law on Archives.

1.
NAME OF PUBLIC BODY

ADDRESS OF PUBLIC BODY

TELEPHONE NUMBER

FAX NUMBER

EMAIL ADDRESS

2. OBJECT OF THE PROCUREMENT IS :

3. ESTIMATED VALUE OF THE PROCUREMENT IS:

METHODOLOGY FOR ESTIMATING VALUE WAS:

4. THE MEMBER(S) OF THE PROCUREMENT TEAM PARTICIPATING IN THE PROCUREMENT ARE:

EVERY MEMBER OF THE PROCUREMENT TEAM HAS DECLARED THAT HE/SHE HAS NO
CONFLICT OF INTEREST IN THIS PROCUREMENT. ____ YES ____ NO

ATTACH A DECLARATION SIGNED BY EACH MEMBER OF THE PROCUREMENT TEAM THAT HE

OR SHE DOES NOT HAVE A CONFLICT OF INTEREST IN THIS PROCUREMENT

5. THE JUSTIFICATION FOR USING REQUEST FOR SEALED QUOTATIONS IS:

103
6. REQUEST FOR SEALED QUOTATIONS WAS SENT TO THE FOLLOWING CANDIDATES ON :
(insert date)

ATTACH COPY OF THE REQUEST FOR SEALED QUOTATIONS

7. THE DEADLINE FOR SUBMITTING QUOTATIONS WAS:

DATE:
TIME:
PLACE:

8. THE TOTAL NUMBER OF QUOTATIONS RECEIVED BY THE DEADLINE WERE:

ATTACH COPY OF APROVAL TO PROCEED ISSUED BY THE PROCUREMENT POLICY OFFICE

9. THE TOTAL NUMBER OF QUOTATIONS REFUSED BECAUSE THEY WERE RECEIVED AFTER THE
DEADLINE FOR SUBMISSION OF QUOTATIOSN WAS:

10. WERE ANY QUOTATIONS REJECTED BECAUSE THE PUBLIC BODY DETERMINED THAT THE
CANDIDATE THAT SUBMITTED THE QUOTATION GAVE OR PROMISED TO GIVE, DIRECTLY OR
INDIRECTLY, TO ANY CURRENT OR FORMER OFFICER OR EMPLOYEE OF THE PUBLIC BODY OR
OTHER GOVERNMENT AUTHORITY A GRATUITY IN ANY FORM, AN EMPLOYMENT OR ANY
OTHER THING OR SERVICE OF VALUE, AS AN INDUCEMENT WITH RESPECT TO AN ACT OR
DECISION OF, OR PROCEDURE FOLLOWED BY, THE PUBLIC BODY IN CONNECTION WITH THIS
PROCUREMENT PROCEEDING: _____YES ____NO

IF YES, THE NAME(S) OF THE CANDIDATE(S), THE REASON FOR REJECTION AND THE DATE
NOTICE GIVEN TO THE CANDIDATE ARE:

ATTACH ALL RECORDS OF COMMUNICATION BETWEEN THE PUBLIC BODY AND CANDIDATE
REJECTED BECAUSE OF CORRUPTIVE ACTIONS

11. THE FOLLOWING CANDIDATES WERE DISQUALIFIED BECAUSE THEY DID NOT SATISFY THE
QUALIFICATION REQUIREMENTS SET OUT IN THE REQUEST FOR SEALED QUOTATION
DOCUMENTS (STATE NAME AND REASON DISQUALIFIED):

ATTACH ANY RECORD RELATED TO THE ASSESSMENT OF QUALFICATIONS OF THE

CANDIDATES

12. DURING REVIEW OF THE QUOTATIONS, THE PUBLIC BODY REJECTED THE FOLLOWING
QUOTATIONS(S) FOR THE REASONS NOTED:

104
13. NOTICE OF AWARD WAS SENT:
TO:
DATE:
METHOD OF TRANSMISSION:
REASON FOR SELECTING THIS CANDIDATE:

ATTACH COPY OF NOTICE OF AWARD

14. THE CONTRACT PURCHASE ORDER NO................ OR SFI NO.......................WAS SIGNED:

DATE:
PARTIES TO THE CONTRACT:
ANTICIPATED COMPLETION DATE:

THE UNIT WITHIN PUBLIC BODY RESPONSIBLE FOR ADMINISTERING THE CONTRACT IS:

THE PERSON RESPONSIBLE FOR ADMINISTRATING THE CONTRACT IS:

NAME:
TITLE:
CONTACT INFORMATION:

ATTACH COPY OF THE PROCUREMENT CONTRACT

15. REQUEST(S) FOR ADMINISTRATIVE REVIEW OF PUBLIC BODYS ACTS OR OMISSIONS DURING
THE COURSE OF THIS PROCUREMENT PROCEEDING WAS(WERE) FILED:
_____YES _____NO

IF YES THE CIRCUMSTANCES OF EACH REVIEW ACTION WAS:

DATE:
NAME OF CANDIDATE:
LEVEL OF REVIEW(S):
GROUNDS STATED FOR REVIEW:

THE PROCUREMENT PROCEEDING WAS SUSPENDED? ____YES ____NO

DATE AND PERIOD OF SUSPENSION WAS:

ATTACH ALL RECORDS OF REVIEW AND SUSPENDSION AND COPY OF EACH DECISION ISSUED

105
 RECORD OF CONTRACT ADMINISTRATION

A. PROBLEM OR ISSUES RAISED DURING PERFORMANCE OF THE CONTRACT:

B. CONTRACT WAS COMPLETED ON:

C. FINAL PAYMENT WAS MADE ON:

D. ADDITIONAL COMMENTS:

106
 INSTRUCTIONS FOR COMPLETING
RECORD OF PUBLIC PROCUREMENT ACTION:
REQUEST FOR SEALED QUOTATIONS

General: The Act provides that the public body may use Request for Sealed Quotations for
small purchases of readily available goods or procurement of works and services for which
there is an established market.

Item 1:

A public body is any central or local state institution, as well as any other juridical
person, who has at his disposal public funds for procurement.

Item 2:

Briefly describe what the public body intends to buy.

Item 3:

The estimated value of the procurement should include the total amount of
anticipated expenditure including any duties or taxes that will apply.

Public bodies should not divide purchases into multiple procurements in order to
avoid procurement requirements that would apply if the purchases were aggregated.

Item 4:

Avoiding conflicts of interest in the procurement system prevents corruption and

builds public trust in the system. When a person making decisions about the procurement
for the public body also has a financial interest in the outcome of the procurement, there is
an opportunity for bias or favoritism to taint the procurement proceeding. The individuals
personal interest might come into conflict with the publics interest in the exercise of his or
her duties and judgment during the procurement. Even the appearance of conflict of interest
should be avoided as competent suppliers and contractors generally refuse to participate in
procurement systems that they perceive as unfair and dishonest. Accordingly, before being
appointed a member of the procurement team, the individual should declare in writing the he
or she does not foresee a conflict of interest situation arising in this procurement and that in
the event a situation should arise that he or she would declare the conflict and immediately
remove himself or herself from the procurement team.

Item 5:

The public body should state the reasons it has chosen to use a Request for Sealed
Quotations procedure for this procurement.

Item 6:

The Request for Sealed Quotations should be sent to as many candidates as

possible in order to secure at least three quotes. The Request for Sealed Quotations should
provide candidates with all the information needed to participate in the procurement and
prepare quotations. The appropriate Standard Request for Sealed Quotation Documents for

107
Goods, Works or Services must be completed and used. The procurement team is
responsible for preparing the quotation documents.

Item 7:

The procedures applied in Mauritius require bidders to deliver quotations by hand at

the date, time and place stated in the Request for Quotations unless another means of
delivery is provided explicitly in the Request for Quotations. If candidates are permitted to
deliver quotations prior to this date and time, the public body must provide a procedure to
accept delivery and to safeguard the quotations.

Item 8:

Simply enter the total number of quotations received where a quotation received is
for the value Rs1M or above the public body should put on the notice board for a period of
seven days the list of bidders and prices quoted for the said quotation exercise.

Item 9:

The public body should address the Request for Sealed Quotations to a sufficient
number of candidates to ensure competition in the procurement

Item 10:

Quotations received after the deadline for submission must be returned unopened.

Item 11:

The Public Procurement Act requires the public body to reject a quotation if the
candidate engages in corrupt actions. While this prohibition helps protect the process from
abuse by candidates, it could be used unfairly by the evil doers in public bodies. To deter
such abuse, it is important to ensure that a written record is made of the action and that the
candidate promptly receives written notice of the rejection.

Item 12:

A quotation must be rejected if the candidate who submitted it does not satisfy the
general and specific qualification requirements set out in the Request for Sealed Quotations.
The qualification requirements are defined in the Schedule of Qualification Requirements
that is included in the Standard Quotation Documents.

Item 13:

A quotation must satisfy all the technical requirements set out in the Request for
Sealed Quotation documents. If it does not satisfy the requirements, it should be rejected.
Once the quotations are reviewed and determined to be satisfactory, the quotations must be
compared to determine the best evaluated proposal.

108
Item 14:

A public body shall notify by either of Letter of Acceptance or Purchase Order the
successful candidate that its quotation has been accepted.

Item 15:

The Act permits any candidate to ask the public body to consider alleged breaches of
the procurement requirements as set out in the procurement regulations and implementing
guidelines.

109
 Appendix J

Standard Bidding Documents:

Request for Sealed Quotations

[refer to website: ppo.gov.mu Ref. W/SBDPQLC5]

110
 Appendix K

OBJECTIVES AND PRINCIPLES OF GREEN PROCUREMENT

1. The objectives of green procurement

(i) Improvement of the environment, and mitigation of negative environmental

impact, by procurement of goods that require less resources for production,
and involve reduced levels of toxins in their production and composition, and
that result in less waste and pollution over their lifetime;

(ii) Compliance with applicable national and international rules concerning

environmental protection;

(iii) Greater economy and efficiency in procurement, and reduced environment

impact by procurement of goods that are more durable, and susceptible of re-
use and recycling;

(iv) Cost savings by procuring energy efficient goods and technology; and

(v) Promotion of government environmental policies through procurement

practices that influence industry in the direction of conservation

2. The measures to be applied to achieve those objectives

With the general facilitation and guidance of the PPO and other relevant
government agencies, initiatives including the following shall, at the earliest feasible times,
be developed and implemented in order to enable public bodies to achieve the objectives set
forth in section 1:

(i) preparation of a procurement profile of the types of items currently being

procured, on the basis of which planning and setting of targets for green
procurement initiatives can take place, as well as an assessment of the
availability of environmentally friendly goods, works and services in Mauritius;

(ii) avoid evaluation of bids on the basis of upfront costs only; evaluate operating
costs and requirements also;

(iii) acquisition and dissemination of information (e.g., through databases to which

procuring entities have access) on what constitutes green products,
technologies and practices (for the most frequent types of procurement), and
how they may be located, for example;

(iv) dissemination of information to, and sharing of information among, the public
and private sectors about applicable environmental rules, and how compliance
with those may be integrated into the procurement process;

(v) promote awareness of procurement staff of environmentally-related

international conventions to which Mauritius is or may become party, as well as
applicable national laws and regulations;

(vi) provide training in green procurement to procurement staff;

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(vii) impose compliance with environmental protection regulations as one of the
criteria for assessment of bidder qualifications;

(viii) introduce in appropriate types of cases (e.g., procurement of architect and

engineering services) bidder experience in providing environmentally sensitive
solutions as a criterion in the assessment of bidders qualifications;

(ix) hold consultations with stakeholders, including the public, commercial and
industrial sectors, as well as other interested circles, as to the formulation of
green procurement policies and opportunities;

(x) development of information resources for suppliers to assist them in becoming

responsive to environmental considerations in public procurement policy;

(xi) explore and promote the incorporation of environmentally sound materials and
performance requirements into specification, including any master
specification, regarding factors such as the use of recycled and recyclable
materials, durability, energy and water efficiency, packaging materials, and
disposal;

(xii) development of methodology for collection of baseline data concerning any

existing environmental purchasing practices, for setting of targets, and for
monitoring and measurement of environmental performance in public
procurement; and

(xiii) assessment of the feasibility of moving, in the long term, to an eco-labeling

scheme in Mauritius, and the use in the utilization in the near term of third-
country eco-labeling schemes, while avoiding discrimination against Mauritius
products

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 Appendix L

TYPES OF CONTRACT

PART 1. PROCUREMENT OF GOODS, EQUIPMENT AND NON-CONSULTANCY

SERVICES

1. Contracts for Procurement of Goods, Equipment and Non-Consultancy

Services

For the procurement of goods commodities, raw materials, simple manufactured

goods, industrial plant and so forth the following types of contract may be used:

(i) Contract for supply of specific goods;

(ii) Framework contract;

(iii) Multi year contract;

(iv) Contract for design, supply and erect; and

(v) Turnkey contract for industrial plant.

2. Contract for Supply of Specific Goods

Contracts for the supply of specific goods shall be in the form of contracts for delivery
of specific commodities, raw materials, finished equipment, drugs, pharmaceuticals, tools
and the like to prescribed specifications and delivery period. Such contracts are governed
by the legislation applicable to the sale of goods and delivery terms shall be standardized
under INCOTERMS. In the case of foreign contracts payment may be made by letters of
credit on presentation of delivery documents.

3. Framework Agreements

(1) A framework agreement, sometimes also referred to as a rate contract, is a

[contractual arrangement] under which one or more suppliers agree to be prepared to supply
the specified goods or services at the specified prices and other terms as and when a
demand is placed by officials nominated in the agreement.

(2) Participation in a framework agreement, and the right to receive future orders
under the framework agreement, shall be granted to suppliers only in accordance with the
procedures laid down by the Act, on the basis of the bids they have submitted.

(3) The framework agreement may guarantee a minimum, and/or set a

maximum, level of orders, and shall specify the term during which the agreement shall
remain in effect, which shall usually not exceed one year.

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4. Multi-year Contracting

(1) "Multi-year contract" means a contract for the purchase of goods or services for
more than 1, but not more than 5, program years. A multi-year contract may provide that
performance under the contract during the second and subsequent years of the contract is
contingent upon the availability of funds, and may provide for a cancellation payment to be
made to the contractor if appropriations are not made. The procurement contract may
provide for price adjustment.

(2) A multi-year contract may be used when it is determined that:

(i) The contract cannot be executed within the span of one year;
(ii) The use of such a contract will result in substantial savings of the total
estimated costs of carrying out the program through annual contracts;
(iii) The minimum need to be purchased is expected to remain
substantially unchanged during the contemplated contract period in
terms of production rate, procurement rate, and total quantities;
(iv) There is a stable design for the goods to be acquired, and the
technical risks associated with such supplies are not excessive; and
(v) The estimates of both the cost of the contract and the cost avoidance
through the use of a multi-year contract are realistic.

5. Contract for Design, Supply and Erection

(1) Under a contract for design, supply and erection, the supplier is responsible
for design of the plant, its delivery at project site, assembly of all parts and erection, testing
and commissioning, and also, if specifically indicated in the scope of the contract, training.

(2) Use of the contract for design, supply and erection is appropriate for
procurement of major power plants, pumping stations and the like.

(3) When a contract for design, supply and erection is utilized, the
prequalification procedure may be applied, and two-stage bidding may be appropriate.

6. Turnkey Contracts

(1) A turnkey contract is a contract that only specifies the output and
performance of the industrial plant and the feedstock.

(2) A turnkey works contract may be used for procurement of industrial plants
such as fertiliser plant, milk processing plant and the like.

(3) In accordance with (1) above, the turnkey works contract shall stipulate that
the supplier is responsible for design, procurement of all inputs, delivery and erection at site,
testing, commissioning and, in some cases, operation for an initial period.

(4) In turnkey contracts, the supplier is subject to applicable quality standards for
designing, implementation and technical specifications, in accordance with the procurement
contract.

(5) Payments shall be based on milestones of progress.

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 PART 2. PROCUREMENT OF WORKS
7. Contracts for Procurement of Works

Contracts for new construction or repair and maintenance or other forms of

construction may be awarded utilizing the following forms of contract:

(i) Contract based on unit price and measurement of work (also referred to as bill
of quantities contracts);

(ii) Lump-sum contracts;

(iii) Time-and-materials rate contracts;

(iv) Design and build;

(v) Management contracts;

(vi) Performance-based maintenance management contract;

(vii) Piece work contracts;

(viii) Such other contracting forms as may be provided by standards bidding

documents and general conditions of contract issued by the PPO.

8. Unit-price Works Contracts

(1) When unit-price works contracts, which may also be referred to as ad

measurement contracts or Bill of Quantities contracts, are utilized, a contract is awarded
on the basis of unit prices in the winning bid for estimated quantities of defined items of work
that are required in order to carry out the works.

(2) Unit-price works contracts may be utilized when it is difficult precisely to

estimate the quantities that will be eventually required once construction is underway.

(3) Payment shall be based on the units of work actually done and measured in
the field.

9. Lump-sum Works Contracts

(1) When lump-sum contracts are utilised, the contract shall provide that it is the
contractors responsibility and risk to perform the works within the lump sum. The contract
shall further provide that the public body is liable only for the lump sum price of the contract,
except if changes to the works are ordered by the public body.

(2) Lump-sum contracts may be utilised for works where the quantities are
precisely known (e.g. superstructure of a bridge) or difficult to measure (e.g., offshore
underwater pipeline).

(3) Payments shall be stipulated on achievement of milestones or defined progress.

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10. Cost-reimbursement Contracts

(1) Cost-reimbursement types of contracts shall provide for payment of costs,

actually incurred by the contractor plus a percentage to cover overheads and profits.

(2) Cost-reimbursement contracts may be used in situations of high risk and

unpredictable conditions, when it is likely that contractors would refuse to accept
conventional contracts.

(3) The cost reimbursement shall establish an estimate of the total cost for the
purpose of committing funds and establishing a ceiling that the contractor may not exceed
(except at its own risk) without the prior approval of owner.

11. Time-and-materials-rate Contracts

(1) Time-and-materials-rate contracts stipulate: hourly labour rates, including

overhead and profits; reimbursement of materials; and a ceiling price, within which the
contractor shall make a good faith effort to remain.

(2) Time-and-materials-rate contracts may be utilized for procurement of

maintenance and repair services, and other contracting situations in which the amount and
combinations of various types of labour and materials cannot be predicted with certainty at
the time of entry into the contract.

PART 3. PROCUREMENT OF CONSULTANT SERVICES

12. Contracts for Consultant Services

(1) The following types of contracts may be used for procurement of consultant
services:

(i) Lump sum;

(ii) Time-based;

(iii) Retainer and/or success fee;

(iv) Percentage; and

(v) Indefinite delivery

(2) In selecting the type of contract to be used, the public body shall consider
factors including the following:

(i) the nature and degree of definition of the assignment;

(ii) the distribution of the risk between the parties, i.e., the client and the
consultant; and

(iii) the level of contract supervision envisaged.

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13. Lump Sum Contract

(1) The lump sum form of contract shall provide that the client is to pay a fixed
sum of money for certain outputs of specified technical characteristics, to be delivered within
a specified deadline.

(2) The lump sum form of contract may be used for simple and clearly defined
assignments, the quality of which can be readily assessed, with minimum unforeseeable risk
to the consultant, such as feasibility studies, project design, preparation of bidding
documents, detailed design, and the like.

14. Time-based Contract

(1) The time-based type of contract shall stipulate that the consultant is to
provide services on a time basis according to quality specifications, and that the consultants
remuneration shall be based on:

(i) agreed unit rates for consultant staff multiplied by the actual time
spent by the staff in executing the assignment; and

(ii) reimbursable expenses using actual expenses supported by receipts

or by agreed upon unit rates.

(2) The time-based form of contract may be used when it is difficult to estimate
the staff months required, such as a management of complex institutions, design of complex
structures like dams, and supervision of construction.

15. Retainer and Success Fee Contract

(1) Retainer and contingency (success) fee contracts may be used when
consultants (banks or financial services firms) are preparing companies for sale or merger,
notably in privatization operations.

(2) The contract shall provide that the remuneration of the consultant includes a
retainer and a success fee, the latter being normally expressed as a percentage of the sale
price of the assets.

16. Percentage Contracts

(1) The percentage form of contract shall provide that the consultants fee shall
be related, as an agreed percentage, to the estimated or actual project construction cost, or
the cost of the goods procured or inspected.

(2) Any negotiations that related to the setting of the prices of percentage
contracts shall be based on market norms for the services and/or estimated staff-month
costs for the services, or competitively bid.

(3) Percentage contracts may be used for procurement of architectural services,

as well as for procurement of the services of procurement and inspection agents involving
procurement and inspection of a large number of individual items. The use of such a
contract for architectural services is permitted only if it is based on a fixed target cost and
covers precisely defined services (for example, not works supervision).

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17. Indefinite Delivery Contract

(1) The indefinite delivery contract shall provide that a consulting firm is hired for
a specified period to undertake tasks as and when they arise at rates stipulated in the
contract, and that payments are to be made on the basis of the time actually used.

(2) An indefinite delivery contract may be used when the public body needs to
have "on call" specialized services to provide advice on a particular activity, the extent and
timing of which cannot be defined in advance (e.g., advisers for implementation of complex
projects, expert adjudicators for dispute resolution panels, institutional reforms, procurement
advice, technical troubleshooting).

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