Ministry of Home Affairs – Procurement Policy€¦ · January 1, 2013 Drafted by Vinton ......

MINISTRY OF HOME AFFAIRS AND MINISTRY OF HEALTH, SPORTS, YOUTH AND

CULTURE

January 1, 2013

Drafted by Vinton Chinsee, Wesley Howell, Ronnie Dunn, Lynette George, Carrol Cooper ____________

Version Control

1.0 - 01/12/12

Procurement Policy and Procedures

January 1, 2013

Drafted by Vinton Chinsee, Wesley Howell, Ronnie Dunn, Lynette George, Carrol Cooper

Public procurement has a key role to play in supporting sustainable economic growth in the Cayman Islands. The Ministry of Home Affairs (the Ministry) spends over $20M each year on goods, works and services and it is essential that we make the best use of this significant amount of expenditure. Better procurement can significantly improve the quality of services the Ministry delivers to the people of the Cayman Islands and can release funds for additional frontline and essential services. How we spend this money is also important for our local businesses, who rightly expect that public contracts will be awarded fairly, transparently and on merit. While the Ministry is made up of many diverse organisations, the fundamental issues that affect public procurement are broadly similar; whichever organisation or sector you work in. I, as Chief Officer for the Ministry, recognize the need for strong, consistent, policy guidance which I believe this document looks to achieve. It provides an overarching statement of the fundamental rules, behaviours and standards applicable to public procurement activity within the Ministry. The Procurement Policy and Procedures Manual describes the key roles and responsibilities in relation to the procurement function and outlines the governance and accountability arrangements that departments should have in place. It addresses key policy issues: the achievement of value for money for the general public through effective competition; the importance of collaboration at a Ministry and Departmental level; incorporating environmental and social issues in public procurement; and fostering innovation through procurement. As Chief Officer, I expect the highest standards of those involved in public procurement and I regard compliance with the principles in the Manual as essential for all procurement within the Ministry. I expect compliance to feature prominently in internal and external audit scrutiny of public procurement in the Ministry. It is very helpful to have, for the first time, a clear statement of the standards that all staff, involved in procurement, are required to meet. We are committed to establishing and embedding appropriate procurement policy and best practice in order to ensure fair and efficient procurement practices. This Manual forms the cornerstone of work the Ministry is taking forward to deliver this commitment.

Eric L. Bush, JP Chief Officer Ministry of Home Affairs

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TABLE OF CONTENT

Table of Contents Preface ................................................................................................................................................................. 4

1.0 .................................................................................................................................... Scope and Authorities

...................................................................................................................................................................... 5

2.0 ................................................................................................................................................... DEFINITIONS

...................................................................................................................................................................... 6

3.0 ......................................................................................................................................... POLICY DIRECTIVES

...................................................................................................................................................................... 8

4.0 ............................................................................................................................. Business case requirement

.................................................................................................................................................................... 11

5.0 ........................................................................................................................................ The general Process

.................................................................................................................................................................... 14

6.0 ............................................................................................................................................. Budget Approval

.................................................................................................................................................................... 15

7.0 ....................................................................................................................... Evaluation and Determination

.................................................................................................................................................................... 16

8.0 .................................................................................................................................... Submission and award

.................................................................................................................................................................... 18

9.0 ........................................................................................................ Implementation/Contract Management

.................................................................................................................................................................... 18

10.0 ........................................................................................................................................ Contract Variation

.................................................................................................................................................................... 19

11.0 ...................................................................................................................... Management and Monitoring

.................................................................................................................................................................... 20

12.0 ........................................................................................................................................ Dispute resolution

.................................................................................................................................................................... 21

13.0 ....................................................................................................................... Post Implementation Review

.................................................................................................................................................................... 22


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14.0 ............................................................................................................................ Record Keeping and Audit

.................................................................................................................................................................... 23

15.0 ......................................................................................................... Special Cases within the General Rule

.................................................................................................................................................................... 23

16.0 ..................................................................................................................................................... Exceptions

.................................................................................................................................................................... 30

17.0 ............................................................................................................................. Subsequent procurement

.................................................................................................................................................................... 33

18.0 ............................................................................................. Ethical requirements and conflict of interests

.................................................................................................................................................................... 34


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Preface

I would like to thank the working group which consists of persons from the Ministry of Home Affairs,

Ministry of Health and former Chairman of the CTC for coming together to draft this document to guide

procurement within the Ministry of Health and the Ministry of Home Affairs. Special mention must be

made of the Internal Audit Department for a thorough review and constructive feedback.

This document is intended to clarify the procedures and methodology required for all government

procurement within the Ministry. It is the responsibility of management to ensure that it gets the best

value for money in all government procurement and such savings can only be realized through sound

procurement practices, policies and procedures.

The approach is to leverage already established best practices in the context of the Cayman Islands and

clarify the role of already existing legislations and policies. This policy takes effect January 1, 2013 and

will be complemented with relevant materials and training. For questions on this policy please contact

Mr. Vinton Chinsee of the Ministry of Home Affairs or Mr. Carrol Cooper of the Ministry of Health.

The document will be revised as necessary to take into consideration current initiatives by the Deputy

Governor in the area of procurement.

The policy will also enshrine on procedures preference for local or Caymanian businesses. This however

does not mean they should not be competitive.

The strategy of this policy is to enshrine in one document the key aspects of a modern competitive

procurement system as follows—

the removal of the discretion to exempt solicitations

setting out all possible solicitation procedures and ensuring that public competitive procedures

are mandatory in all cases except those where competition is not possible (sole source

procurements), there is insufficient time for competition (emergency procurements) or the

procurement is not large enough to warrant public competition (solicitations by competitive

quotations)

requiring public solicitations for large procurements as well as to pre-qualify persons to

participate in large procurements

requiring public opening of bids and proposals providing that awards of contract are to be made

by the tender committee or procurement officer (depending on the amount of the contract) on

the basis of the rules


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1.0 Scope and Authorities

1.1 The scope of public procurement ranges from the purchase of routine supplies or services, to formal tendering and placing contracts for large infrastructure projects by a wide and diverse range of contracting authorities.

1.2 Good governance requires that maximum value for money is obtained for scarce government resources. This policy and the related procedures is intended to facilitate a fair and consistent process with a known and fully communicated set of rules which will foster a competitive, transparent and fair process

1.3 The Legislative framework for procurement is covered under Part IX of the Financial Regulations (2010 revision).

1.4 Section 36 of those Regulations requires that preference be given to local suppliers trading or operating within the Cayman Islands. This requirement is subject to an overriding requirement to ensure value for money and that the price and quality of goods is not disadvantageous when compared to overseas procurement.

1.5 Section 37(1) requires a prescribed entity, statutory authority or government company to offer for public tender, any contract for the purchase of supplies, services and assets over fifty thousand dollars as well as the sale of any assets with a book value of fifty thousand or more.

1.6 There are three exceptions to the above requirements which are addressed in the section covering exceptions, those are:

1.6.1 In the case of a contract for the purchase of supplies, services and assets over twenty thousand dollars, where, in the opinion of the chief officer of a prescribed entity, statutory authority or government company, only one supplier can provide the supplies, services or assets,

1.6.2 Where a state of emergency is proclaimed under the Emergency Powers Law (2006 Revision); or

1.6.3 Where an exceptional circumstance occurs, a prescribed entity, where it is impractical to do so, the Chief Officer is not required to offer for public tender-

1.6.3.1 (a) any contract for the purchase of supplies, services or assets; or

1.6.3.2 (b) the sale of any assets,

and the chief officer of a prescribed entity may enter into any contract for the purpose of the restoration of the Islands, using rates established by him/her subject to an overriding requirement to ensure value for money.

1.7 However, if a Chief Officer enters into a contract based on a state of emergency or where an exceptional circumstance occurs, he/she must provide a copy of the contract to the Director of Internal Audit and the Auditor General.

1.8 It should be noted that public tendering requirements apply to both Entity and Executive transactions and that no pre-qualifying Tender process should commence unless approved by the Central Tenders Committee (CTC)

1.9 The Regulation also recognizes the practice manual published by the CTC by virtue of its reference in section 39(1), the process outlined in that manual should therefore be considered as legally binding.

1.10 Penalties under this policy will be as per the Public Service Management Law (2011 Revision)


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2.0 DEFINITIONS

2.1 A conflict of interest is where an interest held by the contract holder, by any member of the contract holder’s team working on the contract or any relative of the contract holder or of a member of the contract holder’s team could materially influence the contract holder or member of the contract holder’s team in their performance of the contract, by reason of the fact that such performance could so affect the interest as to confer on or withhold from the contract holder, member of the contract holder’s team or relative a substantial benefit.

2.2 “coercive practices” means harming or threatening to harm , directly or indirectly, persons or their property to influence their participation in a procurement process, or affect the execution of a contract.

2.3 “collusive practices” means a scheme or arrangement between two or more bidders, with or without the knowledge of the Recipient, designed to establish bid prices at artificial, non-competitive levels; and

2.4 Consultancy is where a person, organization or group thereof is engaged to provide intellectual or knowledge-based services (e.g. expert analysis and advice) through delivering reports, studies, assessments, recommendations, proposals, etc. that contribute to decision-or policy-making in a contracting authority. The engagement should be for a limited time period to carry out a specific finite task or set of tasks that involve expert skills or capabilities that would not normally be expected to reside within the contracting authority.

2.5 “corrupt practice” means the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence the action of a public official in the procurement process or in contract execution;

2.6 Direct solicitation means solicitation addressed directly to one supplier or contractor or a restricted number of suppliers or contractors. This excludes solicitation addressed to a limited number of suppliers or contractors following pre-qualification or pre-selection proceedings;

2.7 Framework agreement procedure means a procedure conducted in two stages: a first stage to select a supplier (or suppliers) or a contractor (or contractors) to be a party (or parties) to a framework agreement with a procuring entity, and a second stage to award a procurement contract under the framework agreement to a supplier or contractor party to the framework agreement;

2.8 “fraudulent practice” means a misrepresentation or omission of facts in order to influence a procurement process or the execution of a contract;

2.9 Material deviations are those that if accepted would not fulfill the purposes for which the bid is requested or would prevent a fair comparison with bids that are properly compliant with the bidding document.

2.10 Pre-selection means the procedure to identify, prior to solicitation, a limited number of suppliers or contractors that best meet the qualification criteria for the procurement concerned;

2.11 Procurement by request for quotations means a process by which an Agency shall request quotations from as many suppliers or contractors as practicable, but from at least three;

2.12 Procurement by restricted tendering means a process by which a procuring entity solicits tenders from known suppliers and contractors from which the subject matter of the procurement is available. Such suppliers shall be selected in a non-discriminatory manner and a sufficient number of suppliers or contractors shall be chosen to ensure effective competition;


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2.13 “Procurement" is the process of buying goods, services and works from external suppliers. The procurement process begins when a need to buy something is identified and will generally end after the contract is awarded. Contracts must be awarded through genuine and effective competition unless there are exceptional reasons to the contrary

2.14 procurement by competitive negotiations means a situation whereby, in the opinion of the Chief Officer, There is an urgent need for the subject matter of the procurement, and engaging in open-tendering proceedings or any other competitive method of procurement, because of the time involved in using those methods, would therefore be impractical, provided that the circumstances giving rise to the urgency were neither foreseeable by the procuring entity nor the result of dilatory conduct on its part.

2.15 Public procurement can be defined as the acquisition, whether under formal contract or otherwise, of goods, services and works from third parties by contracting authorities.

2.16 A purchase order is document representing a simple offer to purchase goods or services at a stipulated price and terms where once accepted become binding. The only authorized form of PO in the Ministry is the computerized version issued by the accounting system. No manual or other form is allowed.

2.17 Request for proposal with consecutive negotiations means a process where the procuring entity needs to consider the financial aspects of proposals separately and only after completion of examination and evaluation of the quality and technical aspects of the proposals, and it assesses that consecutive negotiations with suppliers or contractors are needed in order to ensure that the financial terms and conditions of the procurement contract are acceptable to the procuring entity

2.18 Sign off includes not only signatures but any electronic confirmation including email and electronic keys.

2.19 Sole source procurement is a non-competitive purchase or procurement process accomplished after soliciting and negotiating with only one source, so-called sole source, thus limiting Full and Open Competition (FOC)

2.20 Solicitation means an invitation to tender, present submissions or participate in request-for-proposals proceedings;

2.21 Value for money is defined as the optimum combination of whole-life cost and quality (or fitness for purpose) to meet the user's requirement. Depending on the nature of the contract, whole-life cost may include implementation costs, ongoing operating costs and end-of-life disposal.

2.22 Writing includes any form of electronic communication, including emails and images.

2.23 Whole Life Costing is the total cost of ownership of an asset or a service to a contracting authority is the totality of the costs incurred throughout the life of the asset or service and is not simply the purchase price. Whole life costing assesses the total cost of an asset or service over its whole life: it takes into account the initial purchase cost and additional related costs, (e.g. ongoing maintenance and operational costs, disposal costs (if relevant), and other costs (be they staffing, supervisory, health and safety, etc.) specific to the solution that the contracting authority otherwise would have not incurred if it had not acquired the asset or service. If whole life costing is not carried out it is unlikely that VfM can be achieved.


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3.0 POLICY DIRECTIVES

3.1 THE GENERAL RULE IS THAT ALL PROCUREMENT IN THE MINISTRY MUST BY DEFAULT GO THROUGH PUBLIC TENDER AND CONTRACTS MUST BE AWARDED THROUGH GENUINE AND EFFECTIVE COMPETITION.

3.2 The only exceptions to the general rule are addressed in section 16 but this does not preclude the requirements in this section.

3.3 Public tender should take the format of full sealed bids, requests for proposals or quotes to supply. Sealed bids include electronic submissions and must adhere to the following guidelines:

3.3.1 If electronic bids are being used, Computer Services Department (CSD) must be consulted to develop the required features.

3.3.2 The security access information must only be released to the appropriate officers.

3.3.3 The electronic bids must only be accessed at the agreed tender opening time.

3.3.4 The security features must include the capability to track the time and date the electronic bid was accessed.

3.4 Value for money (VFM), support for the local economy, probity and compliance with public management finance law and government policy remain paramount considerations.

3.5 Value for Money includes three basic elements: economy, efficiency and effectiveness, and is achieved when organizations use their resources, including bought-in external resources, with economy and efficiency to achieve effectiveness in their operations. Public bodies carry out operations to achieve stated policy objectives. Therefore, at the project level, VfM is obtained when the optimum combination of fitness for purpose and whole life cost of a project meet the public body’s policy objective for the project. To do this requires an organizational culture that takes into account the overall benefits and costs of each project and ensures that budget estimates are met.

3.6 A prequalification process maybe under taken to identify a group of suitable candidate from the market place

3.7 When a contracting authority proposes to award a public contract which has an estimated value which is below the relevant threshold, or where a proposed public contract is otherwise exempt from the requirement for prior publication of a contract notice, the contracting authority shall, ensure a degree of advertising which is sufficient to enable open competition and meet the requirements of the principles of equal treatment, nondiscrimination and transparency

3.8 Where multiple suppliers are qualified to bid they must all receive the same information, rules and terms. Should additional information become available after advertising whether through subsequent vendor questions or discovery it shall be made available to all potential bidders. This obligation of transparency means that contracting bodies are required to ensure that any company or individual which may be interested in bidding for a contract can access appropriate information regarding the contract opportunity so that it may determine whether it is interested in tendering and, if so, how it can express its interest in bidding for that contract or how it can obtain information.

3.9 Publication on a contracting body’s website or on recognised websites and portals created for the purposes of publicising contract opportunities (including the various commercial sites) will usually be enough to ensure “adequate publicity”. Other means of advertising could include publication in relevant trade journals or specialised publications and also in national newspapers.

3.10 In all cases, the method of publication should reflect the relevance of the contract to the Internal Market. For example, where a requirement is likely to be only of interest to small, local firms, publication in a local newspaper may suffice. On the other hand, an advert in a local newspaper is unlikely to constitute “adequate publicity” for a high value service concession contract.

3.11 As a rule of thumb, the greater the value of the contract or market interest in the contract, the greater the coverage of the advert should be. In all cases, the form of advertising should be sufficient to allow interested companies a reasonable prospect of identifying the


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opportunity through their own market research. The default minimum is two weeks. Approval of the Chief Officer is necessary as an exception for a shorter period.

3.12 A procuring entity may engage in procurement by means of restricted tendering when:

3.12.1 The subject matter of the procurement, by reason of its highly complex or specialized nature, is available only from a limited number of suppliers or contractors; or

3.12.2 The time and cost required to examine and evaluate a large number of tenders would be disproportionate to the value of the subject matter of the procurement.

When a procuring entity engages in procurement by means of restricted tendering on the grounds specified in paragraphs (a) and (b), it shall solicit tenders from all suppliers and contractors from which the subject matter of the procurement is available. Such suppliers and contractors shall be selected in a non-discriminatory manner and be of sufficient number to ensure effective competition;

The burden of proof for closed tendering should be on the contracting body and must be clearly documented and defensible and approved by the Chief Officer in the Ministry.

3.13 A procuring entity may engage in procurement by means of a request for quotations for the procurement of readily available goods or services that are not specially produced or provided to the particular description of the procuring entity and for which there is an established market, so long as the estimated value of the procurement contract is less than the threshold amount for public tendering. Where a procuring entity engages in procurement by means of request for quotations it shall request quotations from as many suppliers or contractors as practicable, but from at least three.

3.14 Individual contracts to be awarded under a framework agreement, approved list or qualification system need not be advertised provided that the lead contracting body has taken the necessary steps to meet the requirement for adequate publicity at the time it awards/establishes the framework agreement. Examples include the pre-approved list of small contractors established in the PWD or pre-approved list of suppliers for disaster recovery equipment and supplies.

3.15 In addition to the pre-approved list provided by PWD, the procuring entity may also establish its own list of approved suppliers. The following guidelines should be used to conduct the pre-qualification for such suppliers:

3.15.1 The invitation to prequalify should be advertised by appropriate means

3.15.2 Ensure the supplier has a valid trade and business licence.

3.15.3 Ensure the supplier has a good credit standing and is able to secure financing.

3.15.4 All applicants who have the qualifications to supply/perform the contract should be enlisted and provided with bidding documents.

3.15.5 In the spirit of transparency, the enity must not limit the number of pre-qualified potential bidders. However, if there are too few applicants a review should be carried out to attract other bidders.

3.15.6 The entity must continue to review the qualifications of pre-qualified bidders to ensure that they still possess the capabilities to perform the contract

3.16 There should be clear separation of budgetary authority and procurement authority. In addition, there should be an appropriate separation of duties within the purchasing cycle between staff who place orders, those who receive goods, services or works and those who authorise payment. Where staff resourcing reduces the capabilities for full separation the onus is on the department manager to ensure a suitable review process is in place.

3.17 The Ministry will reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive or coercive practices in competing for the contract in question

3.18 The Ministry will from time to time take a centralized approach to procurement where this will generate savings through purchasing leverage, security, strategic objectives or


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improved controls. An example includes telecommunications in the Ministry of Home Affairs.

3.19 This policy is applicable to projects that are also funded by external agencies unless otherwise stipulated in the agreement with the external agency.

3.20 All procurement below the minimum threshold must be supported by a purchase order. In some cases where works are involved, it might be necessary to develop a scope of works and issue a small works contract. Appendix 20.5

3.21 As a general rule if a the persons/organisations who assist in developing requirements may not tender on the delivery of the resulting goods or services.


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4.0 Business case requirement

Any procurement is a cost on the public purse, a business case for the entire project or procurement activity, linked to the Ministry’s business strategy, must be produced and must provide financial justification for the project or procurement based on its whole life cost. In essence, the business case must justify the project in business terms; say what business benefits can be expected by implementing it; and must show why the project cannot be developed in-house and why external support is required. The business case must demonstrate in clear concise terms understandable to senior management that the envisaged solution is the optimum combination of fitness for purpose and whole life cost that meets the contracting authority’s policy objectives for the project. That is to say, when implemented, it will achieve Value for Money. The business case, therefore, must present the deliverables whether goods or services that the contract holder will be required to produce or provide. It must show how these deliverables will meet the Ministry’s policy objectives for the project and that its goals are expressed and quantified in terms of impact on the Ministry’s business objectives. This is a key requirement, and if the proposed deliverables cannot meet the Ministry’s policy objectives for the project, serious consideration should be given to cancellation of the project or procurement or to carry out a review of its justification. The use of whole life costing will help determine the total cost of achieving the policy objectives in the way envisaged.

Approval for all procurement over $10,000 must be preceded by the submission of a business case in the prescribed format by the Ministry (appendix 20.2). All capital acquisitions require a business case regardless of the cost. Business cases will be vetted and approved by the Ministry to ensure compliance with the expressed business needs and strategic objectives of the Government. Business cases will not only consider the economic aspects but also those intrinsic values supported by policy directives. All business cases must consider all recurrent and capital costs over the entire useful life of the acquisition and the total cost of ownership. The business requirements must be stated in sufficient detail to enable tenderers to make workable, realistic proposals. Specifically, the business case must address:

4.1 the purpose of the project and how it aligns with the Ministry’s strategic objectives and priorities. The policy objectives and business outcomes must be clearly defined, measurable, and justify investment in the project;

4.2 the scope of the project. It is particularly important to establish project boundaries at this stage;

4.3 the deliverables expected from the project and how their implementation will achieve the policy objectives for the project;

4.4 future phases (if any), i.e. is this a standalone project or will its implementation commit the Ministry to additional expenditure on goods or services in the future? If so, estimates of these future phases must be included in the whole life cost of the project;

4.5 the benefits management strategy and post-implementation review (if appropriate).

4.6 the identification of risks, i.e. an initial assessment of the risks to the project. Risk management is an integral part of all stages of projects and a process to mitigate and manage all risks identified must be put in place;

4.7 the assessment of the readiness of the business units that are to use or implement the deliverables of the project and that post-implementation support will be available. This will help ensure that focus is maintained on achieving the benefits of the project and addressing issues that may adversely impact thereon;

4.8 the whole life cost of the project, with a clear distinction between initial, operational and maintenance costs over the life of the project;

4.9 the estimated maximum price that will be paid to the contract holder.

4.10 the cost management procedures envisaged, i.e. how the Ministry intends to manage the estimating, control, approval and reporting of all cost-related aspects of the project;

4.11 the future cost savings (if any), with associated time frames;


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4.12 an evaluation of all possibilities other than engaging external support (including doing the project in-house);

4.13 an inventory of the type and level of specific skills that will be required from the contract holders to carry out the project;

4.14 the transfer of skills. Usually skills transfer is a part-justification for hiring external support and must be identified in the business case and specified as an award criterion in the Request for Tenders. Tenderers must be asked to provide firm proposals on how transfer of skills will be carried out and these proposals must be evaluated in the award process. Ideally, the skills deficit should already be identified.

4.15 the contracting authority's envisaged scenario for the project management arrangements (including the proposed allocation of tasks between the contract holder and the public servants to minimise cost). Projects must not proceed without clearly defined lines of authority, responsibility and accountability and a means of ensuring that they are observed in practice;

4.16 the identification of the public servant who will act as project manager with individual responsibility and the estimated amount of his / her time and the numbers, grades and time of other personnel allocated to the project must be estimated. This is to set out the minimum commitment in human resource terms needed from the contracting authority if the project is to proceed and to ensure that there are no illusions about the level of commitment required;

4.17 any existing framework agreements (if any). If the contracting authority has a suitable existing framework agreement and it is not proposed to draw-down the required deliverables or services from that agreement the reason for not doing so must be clearly stated;

4.18 the type of tendering procedure proposed and the reasons for proposing it.

4.19 In establishing the business case, it is good practice for the contracting authority to consult with other public sector contracting authorities that have carried out similar projects involving external support. The objective is to build on the success of these projects and not to repeat problems.

4.20 Whole Life costing

Contracting authorities must decide the pricing model that will allow the award of a contract on a basis that complies with public procurement policy and that will also obtain VfM over the life of the project. This can be achieved by developing a pricing model or cost breakdown structure that will evaluate the fixed (and variable, if any) prices proposed by tenderers over the whole life of the project. In particular, a tenderer’s cost proposal must be evaluated to see if it changes the contracting authority’s costs, and what impact such changes would have on the whole life cost of the project.

4.21 Cost Benefit Analysis

For all projects with an estimated cost in excess of CI$10,000 a cost benefit analysis must be carried out. The cost benefit analysis must identify costs on as wide a basis as possible, be maintained and reassessed throughout the project and be used to set out targets and plans to achieve the identified benefits. It must be annexed to the business case and lodged in the project file.

4.22 Risk Assessment

Typically, risk will impact the project at different stages and it should be addressed appropriately as follows:

4.22.1 Project risk - This encompasses risk to the project from the inadequate definition or assessment of the need, scope, scale and financing of the project. These should be addressed in the business case;

4.22.2 Process risk - This is risk resulting from an inadequate knowledge procurement policy and law and from incorrectly or inadequately carrying out a public procurement procedure. Process risk is addressed by adhering to these guidelines and to the other documents referenced herein;


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4.22.3 Relationship risk - This is risk resulting from inadequate relationships with the contract holder and the implementation of the project. It is addressed by the contract, the project management plan, project management procedures and by review procedures (e.g. mid-term review, independent peer review, etc.);

4.22.4 Termination risk - This is risk resulting from inadequate definition of project boundaries, of ‘project creep’, incrementalism, etc. It is addressed by having a business case that specifies the scope of the project; a contract that states how and when project change can occur; by change management procedures; and by the final report.

4.23 ABSENCE OF A BUSINESS CASE

There may be occasions when contracting authorities need to engage external support at short notice to deal with matters of public urgency. In these cases there may be no time to prepare a business case. If this happens the project manager must ensure that there is compliance with all key elements of these guidelines; the reasons for the departure from normal practice are recorded in the project file and that the decision to proceed without a business case is approved and signed off at the Ministry level.

The decision to proceed without a full business case must be documented, approved at the appropriate level and the decision recorded in the project file.

Alternately, any request that meets the requirement to present a business case and does not properly prepare and present one to Senior Management will be rejected.


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5.0 The general Process

Procurement process start

Define Procurement need

and broad estimates

Understand the Market & Develop

Technical description

Is estimate below minimum

threshold

Obtain at least 3 quotes or all

vendors within specified conditions

and timing

Yes

Evaluate quotes based on criteria and ensure VFM

No

Select supplier and document

justification

Issue PO or small contract

Is estimate DTC level?

Establish representative DTC

Yes

No

Create Business case

Prepare tender documents including

evaluation tool

Prepare procurement plan

and appoint procurement mgr

Advertise to ensure competition

Accept sealed bids (including Electronic)

DTC meet to open and record bids

Representative experts review bids

and prepare evaluation report

and recommendation

DTC meet to review report

Is procurement supported

Yes

Terminate procurement

No

Approval and funding

Yes

DTC review & approve

Yes

No

Accept recommendations

Document further clarification requirement

No

Procuring officer notify all bidders of

the decision

Yes

Negotiate and prepare contract

Is legal advice necessary

Send to AG officeYes

Sign contract

No

Negotiation successful

Yes

No

File Contract

ECM or Electronic

system

Procurement End

PIE/M

oH

Pro

curem

ent p

rocess

Portfolio/Ministry

ratification

Yes

No

Procurement end

Follow CTC guidelines

No


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6.0 Budget Approval 6.1 Budget approval is done in stages and depends on the nature of the procurement, scope and type

of procurement.

6.2 All recurrent expenditures are approved at the stage of budget appropriations and responsibility for the budget lies with the delegated authority unless a consolidated approach is taken by the Ministry to exact economies of scale. For example, The Ministry consolidates and procures most communication services.

6.3 Where procurement is at the level requiring tendering a business case must be prepared and submitted with a reasonable estimate for approval of funding by the Ministry and amounts will be committed from approved budgets for the purpose.

6.4 All subsequent contract variations or changes to scope must be prior approved by the Ministry.

6.5 Procurement Authority and Limits

6.6 Authority to procure is delegated by the Chief Officer in accordance with the Public Management Finance Laws. This delegation is carried out in accordance with this policy and procedures.

6.7 All employees authorized to initiate procurement, sign contracts or agreement for procurement or to authorize payment on procurement have a pre-assigned authority level. These are detailed in the attached schedule at Appendix 20.1. This schedule can only be modified by the Chief Officer or persons delegated by the Chief Officer and all modifications to the schedule must be in writing.

6.8 Employees responsible for procurement must adhere to the procurement requirements.

6.9 Procurements up to $1,500 can be made without quotations but the employee responsible for the procurement is responsible to ensure government receives value for money.

6.10 An employee may seek quotes for procurements less than $1,500 as a means of demonstrating value for money has been obtained.

6.11 Procurements from $1,500 to $10,000 require a minimum of three quotations.

6.12 Employees with procurement authority must ensure that a wide cross section of suppliers and contractors are invited to submit quotations. For example, it is not appropriate to continuously invite quotations from the same three suppliers in a field where there are multiple suppliers capable of carrying out the work

6.13 Procurements from $10,000 to $50,000 require a minimum of three quotations and a written specification / scope of works to be forwarded to the suppliers providing quotes. The officer responsible for the procurement must submit the quotations and the quotation record form in above with a recommendation to the approving authority. The approving authority must sign off, confirming that the procurement has been carried out in accordance with the Ministry policy and approving the recommendation to award, prior to award of the contract and prior to the work starting or any commitments being made. Quotations does not exclude the tendering as an option.

6.14 Procurements from $50,000 must be offered for public tender with amounts above $50,000 through the DTC and amounts in excess of $250,000 going through the CTC.


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7.0 Evaluation and Determination 7.1 Contracting authorities can award contracts on the basis of the most economically advantageous

tender or the lowest price. In determining the criteria for the award of contracts, purchasers should rarely rely on price alone. This is because awarding contracts on the basis of the most economically advantageous tender allows purchasers to balance the quality of the goods, services and works they are procuring against price and to frame specifications in a way which encourages innovation rather than defining the solution. Appropriate investment appraisal techniques should be used in assessing which compliant bid offers best value for money.

7.2 As part of value for money, due regard to other relevant organisational policies is important, for example, policies in relation to corporate social responsibility/sustainability. This social responsibility includes such aspects as the environment, impact on the poor or disadvantaged, gender equity and other social responsibilities expected of a good corporate citizen.

7.3 All tenders, bids and requests for proposals must be evaluated based on pre bid criteria and evaluation tools. The tools used to evaluate must be fit for purpose and each section should be weighted and clearly described. The evaluation criteria should be approved by the relevant awarding authority including the DTC or CTC. An example of the type of tools to be used is shown in appendix 20.6.

7.4 In addition, the evaluation criteria may include:

7.4.1 Any criteria that the procurement regulations or other provisions of law within the Cayman Islands authorize or require to be taken into account;

7.4.2 A margin of preference for the benefit of local suppliers or contractors or for locally produced goods may be applied in accordance with the tolerance levels established by this policy.

7.4.3 To the extent practicable, all non-price evaluation criteria shall be objective, quantifiable and expressed in monetary terms.

The procuring entity shall set out in the solicitation documents:

7.4.4 Whether the successful submission will be ascertained on the basis of price or price and other criteria;

7.4.5 All evaluation criteria established by this policy, including price as modified by any preference;

7.4.6 The relative weights of all evaluation criteria, 7.4.7 The manner of application of the criteria in the evaluation procedure

7.5 Determination of the winner of a bid will depend on the category. For CTC level requirements this

will be the CTC, for those items at the departmental tender level this should be the departmental tender committee. For the exceptions in section 16, the respective authority is stated. The following guidelines are applicable to the department tenders committee (DTC):

7.5.1 Each department/unit within the Ministry must establish a DTC comprising at least three (3) officers of whom at least one must be a subject matter expert, as well as the senior finance personnel for the department. The procurement personnel will be a non-voting member in order to avoid potential for conflict of interest.

7.5.2 The officer with responsibility for approving the procurement should not chair the DTC.

7.5.3 Members with conflict of interest for a particular procurement should not sit on the DTC.

7.5.4 The DTC for each procurement project must be approved by the Ministry.

7.5.5 The DTC is mandated to review procurements that are within the authorised threshold stipulated in this policy (section 6).


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7.5.6 The DTC must ensure full compliance with this procurement policy, while ensuring proper record keeping and compliance with reporting requirements.

7.6 By default price is the main determinant, however, depending on the nature and the scope other predetermined determinants may be prescribed.

7.7 To provide an incentive to local and Caymanian businesses, the committee may consider a price determinant of up to 10 percent in excess to be equivalent of the foreign proposals for any quotes less than the department tender level and 5 percent for the CTC level.

7.8 Each bid should be checked for conformance with the eligibility criteria established in the tender document or prequalification process. Any bids that do not meet the criteria should not be considered further and the reason for rejection documented in the evaluation reports.

7.9 Each bid should be evaluated objectively, consistently and fairly against the evaluation criteria stated in the tender documents. The criteria cannot be materially changed before any bid is opened or evaluated and it cannot be changed materially without retendering.

7.10 It should be checked for errors and omissions and these should be documented.

7.11 An evaluation report is to be produced containing:

7.11.1 The Bidder’s name 7.11.2 Total cost of the bid 7.11.3 Total cost of ownership if different from the total cost 7.11.4 If eligibility criteria is met and to what extent 7.11.5 Action to address minor non-conformance and the result of that action 7.11.6 If the bid is substantially responsive to the mandatory terms and conditions; if it is

not responsive document the reason 7.11.7 For evaluated bids, the score against the evaluated criteria and any adjustments

necessary for errors found 7.11.8 A summary of the results of the evaluation process and a recommendation for award


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8.0 Submission and award Armed with the results of the evaluation process, the responsible purchasing officer ensures that all of the legal and non-legal contract requirements are met by the successful bidder. These include but not exclusively:

8.1 All Caymanian legal and contractual requirements. We cannot issue a contract that conflicts with the Laws of the Cayman Islands. Jurisdiction of all contracts defaults to the Cayman Islands. Jurisdiction of legal requirements to another territory will need approval from the Attorney General as a matter of policy.

8.2 Outstanding items and minor corrective or desired modifications are finalized and negotiated within the parameters established by the procurement committee

8.3 Rejected bids are communicated to the unsuccessful bidders and the reason

8.4 Once the contract is agreed, the delegated authority signs the contract with the authorized supplier representative

8.5 Whilst tender evaluation criteria may vary on different projects, it is expected that the following items would reflect in the evaluation criteria for all tenders:

8.5.1 Tenderers experience in type and scope of service being tendered. 8.5.2 Tenderers technical capability for service being tendered. 8.5.3 Tenderers financial capability for service being tendered. 8.5.4 Tenderers previous performance on similar government projects. 8.5.5 Preference to local supply

9.0 Implementation/Contract Management 9.1 All procurement must have a responsible officer assigned to carryout and manage the process. In

the case of the Department or CTC tender this officer is clearly named in the procurement plan and is responsible to manage the process through to completion

9.2 It is the responsibility of the procuring officer to ensure that the goods or service being procured is received according to the terms and quality agreed. This information should be recorded and reported to accounting to ensure proper accounting and payment to the supplier. Where there is a retention this should be managed and released only after satisfactory performance in accordance with the terms of the acquisition.

9.3 Where there is a deviation from the contractual terms this must be rectified or negotiated subject to section 10 below.

9.4 Procurement that is part of a project is subservient to the management and constraints of the project

9.5 Procurement must be scheduled to acquire the product or services at the time needed. Acquisitions should not be made long in advance or without clear intent to consume.


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10.0 Contract Variation

10.1 Approved contracts are to be entered into for all procurements over $10,000. There will be

instances when contracts should be used for procurements of less than $10,000 to ensure that the supplier is signing off on appropriate contract clauses and requirements. An example of this would be when hiring a consultant to carry out a survey and produce a report of the results or to design a security system. A small design report can have major safety and liability implications. An appropriate contract will ensure appropriate liability insurances etc. are in place. The employee responsible for the procurement is responsible for determining if contracts are required and appropriate for procurements less than $10,000.

10.2 When adding or varying works under an existing contract / agreement, the procuring officer issuing the variation is responsible for ensuring that value for money is achieved for the variation. For significant variations, where feasible, the contractor should get three quotes. Where tied into an existing sub-contractor, (for example additional modules of a system); and where variations to a contract exceed 5% of the original value of the contract, the project manager/procuring officer for the contract must submit a report to the relevant procurement authority (Ministry / DTC / CTC) explaining the reasons for the high variation level and seeking approval to issue the variations in excess of 5% and it must go through a budgetary approval process to evaluate and reapprove the business case and budgetary impact.

10.3 Where a variation will exceed the total budget allotted for the project/procurement, approval is sought from the Ministry for the additional budget which may include reallocation from another source or supplementary from the Cabinet/Legislative Assembly.

10.4 If pre-tender estimates are within 10% of the CTC lower limit ($250K) or DTC lower limit ($50K), tenders must be carried out in accordance with the higher authority. For example, if pre-tender estimate is $230K, tender must be submitted to CTC as within 10% of their $250K threshold.

10.5 If quotations or tenders are requested for one of the above categories but come in at a higher level, all bids must immediately be sealed and passed to the individual or committee authorized to deal with that higher category.


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11.0 Management and Monitoring

11.1 The contract must be managed to ensure the parties to the contract (Ministry and supplier), fulfill

their financial and contractual commitments on time, to quality and specification, and within budget. All key stakeholders must collaborate to focus on continuous improvements and efficiency gains.

11.2 The appropriate officer(s) must track and monitor the deliverables of the contract with keen attention to key performance indicators. Each payment request must be supported by a report/assessment clearly indicating whether the supplier is performing in accordance with the requirements of the contract.

11.3 Track all charges to ensure accuracy, prevent duplication, and check against contract price. All invoices must be checked and approved before payments are generated. The relevant department must keep record of all documentation pertaining to the contract.

11.4 Key stakeholders must identify and manage risks accordingly. This will require proactive actions by the appropriate officer(s).

11.5 Manage contract change and variation in accordance with sections 7.0 and 10.0 of this policy.

11.6 The Ministry must develop an end of contract strategy. In cases where the services will be required beyond the contract period, a transition plan must be in place, and such plan must set out the procurement timeline for the new contract. This will minimize disruption to service, and allow the Ministry to benefit from possible gains that could be realised from improved market conditions. In developing the end of contract strategy, consideration should be given to future needs/changes in needs that should be encompassed in the new procurement plan.

11.7 Pre-Payments (Mobilisation payments, upfront payments, deposits etc.):

11.7.1 Pre-payments should not be made unless they are unavoidable as they put government funds at risk should a supplier / contractor fail to perform.

11.7.2 Invitations for quotations and tenders should clearly state that payment will be for work completed and there will be no pre-payments.

11.7.3 Where pre-payments cannot be avoided, these should be minimized and where pre-payments represent significant dollar values, letters of credit, performance bonds or similar approved instruments should be utilized to protect the government funds being paid in advance of receiving a service / product.

11.7.4 The officer inviting the service / placing the order / approving the upfront payment is responsible for ensuring that government funds are not put at undue risk.

11.7.5 Performance bonds are required on all contracts over CI$2 million.

11.7.6 Performance bonds or similar approved protection are required on all contracts which include mobilization payments of over $25,000.

11.7.7 Pre-payments on any purchase in excess of CI$25,000 must have a letter of credit or similar approved instrument to protect the government funds.

11.7.8 Pre-payments in excess of CI$10,000 must be approved in writing by the procurement authority. The role of the procurement authority is to confirm that the pre-payment is absolutely necessary and cannot be avoided.


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12.0 Dispute resolution

12.1 Disputes can substantially increase the project cost, extend the implementation time and consume

vast amounts of resources. Clear and detailed requirements, definitions, timelines, and key responsibilities are critical to prevent disputes. Because contract documentation is sometimes interpreted differently by different parties, procurement contracts should incorporate dispute resolution provisions to minimize the chance of disputes getting out of hand and leading to legal action.

12.1.1 Step 1 – Deal with disagreements in contract documentation early, seek advice and

enter into early discussions with the aim of preventing escalation

12.1.2 Step 2 – Engage senior executives conference if a way forward cannot be agreed in

step one, then either partner can formally request that the senior Executives (Chief Officer, CEO Etc) confer with the aim of resolving and preventing escalation,

12.1.3 Step 3 – Under take Intensive negotiation and utilize Expert advice, if disputes are

not resolved at step 2, then each party should seek third party advice and then begin intensive negotiations based on any new information presented. These intensive negotiations can be held in parallel with expert review to minimize delays.

12.1.4 Step 4 - Litigation is time consuming and expensive, careful considerations must

be given by both parties before initiating litigation. Discussions such as pre-mature cancellation and buy out options should be explored before proceeding to litigation. Costs of litigation, delays, possible sanctions, and possible awards must be considered in a business case type analysis. Final decision to proceed with launching preemptive litigation must be considered after having received expert legal advice on the viability of the crown’s position. If the crown is unlikely to win a case then all efforts must be made to return to step 2 or step 3 to seek compromise.


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13.0 Post Implementation Review 13.1 Depending on the size of the procurement and the number of procurement project, post

implementation reviews (PIR) can be based on statistical sample, or completed on every procurement project.

13.2 PIR are critical to address key questions with procurement projects 1) did the procurement project fully solve the problem(s) as defined in the business case? 2) Was the project completed within scope in relation to time, quantity, quality, deliverables, and costs? 3) If the procurement project deviated from the scope, why was their deviation and what was the impact of the deviation on the problem? 4) What lessons can be taken forward to better improve the current project? 5) What lessons did we learn that we can apply to future projects?

13.2.1 PIR Should be conducted by an independent staff member and should include the following tips for success:

13.2.2 Be objective – Review what has happened in objective terms, and then focus on improvements

13.2.3 Be Open – reviewers and project team members must open and honest in their assessment, It is key ensure people will not punished for being open.

13.2.4 Document successes – Document practices and procedures that led to project successes, and make recommendations for applying them to similar future projects.

13.2.5 Look with hindsight – Document unknown risks, how those risks affected the project outcomes, but remain future focused, what can we learn and use to improve future projects

13.2.6 Conduct a gap analysis – How does the project compare the business case and project plan. How the output and outcomes compare to the business case.

13.2.7 Perform cost and benefit analysis– to help determine the effectiveness of project management, supplier delivery, and project controls. This will also help to determine the accuracy of the business cases and forecasting of expenses, duration and scope.

13.2.8 Review the satisfaction of stakeholders – are the stakeholders happy with project in terms of deliverables? Are the deliverables resulting in the desired outcomes?

13.2.9 Report findings and recommendations – provide copies of the PIR to all stakeholders, project staff and other involved individuals

13.2.10 Update procurement policies to reflect agreed lessoned learned, both positive and negative in terms of things to do, and things to avoid.


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14.0 Record Keeping and Audit

14.1 All communications, documents, contracts, variations and reports in respect of a tender and

contract is to be stored according to the approved file plan of the Ministry. In respect of the Ministry of Health and Ministry of Home Affairs this is primarily the electronic filing system or ECM whichever is applicable at the time. This include failed bids.

14.2 All contracts etc is to be scanned and attached to the initial payment or purchase order from the IRIS system

14.3 All invoices paid must be recorded as an attachment in the accounting system

14.4 Where necessary or deemed appropriate the Ministry may commission an audit on any acquisition

14.5 Disposal of the records can only be done in accordance with the National Archives approved disposal schedule.

15.0 Special Cases within the General Rule

15.1 Consultants

The purpose of these guidelines are to assist the Ministry of Home Affairs with the selection and engagement of consultants, through a competitive procedure; to comply with Government procurement policies and legislation, to put in place appropriate management processes for the successful completion of the project; to achieve the benefits that should subsequently accrue to the Ministry and to do so in such a way that Value for Money is obtained.

Consultancy is where a person, organization or group thereof is engaged to provide intellectual or knowledge-based services (e.g. expert analysis and advice) through delivering reports, studies, assessments, recommendations, proposals, etc. that contribute to decision-or policy-making in a contracting authority. The engagement should be for a limited time period to carry out a specific finite task or set of tasks that involve expert skills or capabilities that would not normally be expected to reside within the contracting authority.

Before a contracting authority considers hiring external support, it must first determine that the project cannot be delivered in-house. If adequate internal resources are not available or if an external review is mandated, it is only at this stage that hiring of external support should be considered. Ideally, the need for external support should already be identified by the Ministry

Consulting services can be divided into six (6) broad categories:

15.1.1 Advisory and Review Services

These services consist of the review and the provision of advice on particular projects or problems. These include planning, system and implementation design, financial, fiscal, legal and other professional services, as well as management, production, inspection, testing and quality control. They also include such services as appearances before commissions, boards or other judicial bodies to give evidence or otherwise submit professional opinions.

15.1.2 Pre-Investment or Feasibility Studies

These are the studies which normally precede decisions to go (or not to go) forward with specific projects. These studies may have as their objectives:


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15.1.2.1 To establish investment priorities and sector policies - Studies conducted for

this objective include basic resource inventories, such as, river basin surveys, transport sector surveys, and studies of alternative development patterns and of sectors on a regional or nationwide scale;

15.1.2.2 To determine the basic features and the feasibility of individual projects - Studies toward this objective include functional designs, project site selections, architectural and space programming and physical layout of specific projects, preliminary designs and cost estimates, and the economic, financial and environmental impact analyses required for project evaluation; or

15.1.2.3 To define and propose changes in governmental policies, operations and institutions necessary for the successful implementation or functioning of investment projects - Studies undertaken in pursuit of this objective include analyses of project related organizations, administrative problems, planning machinery, regulatory and marketing policies, accounting and management systems, and manpower resources and training requirements.

15.1.3 Design

This type of services normally consists of three (3) phases:

15.1.3.1 Pre-Design Phase, which establishes the general size and scope of the project and its location on the site. The consulting services under this category include reconnaissance, topographical and other engineering and land surveys, soils investigations, preparation of preliminary architectural/engineering designs, layouts, outline specifications, preliminary cost estimates, and specific recommendations prior to actual design;

15.1.3.2 Basic Design Phase, which includes the preparation of detailed plans,

designs, working drawings, specifications, detailed cost estimates and tender documents required for invitations of bids for construction works and equipment; and

15.1.3.3 Support Services During Construction, which include assistance and advice

in securing bids, tabulation and analysis of bid results, and making recommendations on the award of construction contracts, and in preparing formal contract documents; preparation of supplementary drawings required to suit actual field conditions; checking detailed construction and as-built drawings, shop and erection drawings submitted by contractors; making periodic visits to check on the general progress of work and quality of materials and workmanship; observing performance tests and start-up and making report thereon; and making a final inspection and reporting of completed project.

15.1.4 Construction Supervision

Consulting services under this category include:

15.1.4.1 Inspection and expediting of the work;

15.1.4.2 Verification and checking of quantities and qualities of work accomplished by the contractor as against the approved plans, specifications, and programs of work;

15.1.4.3 Issuance of instructions for correcting on the work;


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15.1.4.4 Verification and recommendation for approval of statements of work accomplished and certificate of project completed by the contractor;

15.1.4.5 Review and recommendation for approval of progress and final billings of the contractor; and

15.1.4.6 Provision of record or as-built drawings of the completed projects.

The above do not mean direction, superintendence or management of construction.

15.1.5 Management and Related Services

The services under this category, on the other hand, include:

15.1.5.1 Sector policy and regional development studies;

15.1.5.2 Planning, feasibility, market, economic, financial, technical, operations and sociological studies;

15.1.5.3 Project management, including procurement advisory services, impact monitoring, and post-evaluation services;

15.1.5.4 Production management, inventory control, and productivity improvement;

15.1.5.5 Marketing management and systems;

15.1.5.6 Information and communications technology services, including but not limited to, information systems design and development, and network design and installation;

15.1.5.7 Institutional strengthening, organization development, manpower requirements, training and technology transfer;

15.1.5.8 General management consultancy; and

15.1.5.9 Other related services.

15.1.6 Other Technical Services or Special Studies

Other technical services include:

15.1.6.1 Institution building, including organization and management studies, and business process re-engineering and development;

15.1.6.2 Design and execution of training programs at different levels;

15.1.6.3 Provision of staff to carry out certain functions and to train their replacements; and

15.1.6.4 Tasks relating to economic and financial studies such as those of tariff structures.

Special studies include the following:


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15.1.6.5 Soils investigation;

15.1.6.6 Studies, tests and process determination performed to establish design criteria for water facilities;

15.1.6.7 Detailed mill, shop, and / or laboratory inspection of materials and equipment;

15.1.6.8 Land surveys, establishment of boundaries and monuments, and related office computations and drafting;

15.1.6.9 Parcellary surveys;

15.1.6.10 Engineering surveys (for design and construction) and photogrammetry;

15.1.6.11 Assistance in litigation arising from the development or construction of projects and in hearings before various approving and regulatory agencies;

15.1.6.12 Investigation involving detailed consideration of the operation, maintenance, and overhead expenses; and the preparation of rate schedules; earning and expense statements, feasibility studies, appraisals, evaluations, and material audits or inventories required for certification of force account construction performed by the agencies;

15.1.6.13 Preparation of environmental statements and assistance to the agencies in public hearings;

15.1.6.14 Preparation of operating instructions and manuals for facilities and training of personnel and assistance in initial operation of facilities;

15.1.6.15 Designs to meet unique and / or above normal requirements brought about by severe earthquakes, tornadoes, or blasts, or satisfy unique or abnormal tolerances, safety requirements, etc.;

15.1.6.16 Site and physical planning;

15.1.6.17 Environmental and other aspects of planning;

15.1.6.18 Housing;

15.1.6.19 Interior design;

15.1.6.20 Studies on preservation and restoration of historical, cultural, and artworks;

15.1.6.21 Landscaping;

15.1.6.22 Construction management; and

15.1.6.23 Defense systems design, including self-reliance defense program.

Other specialized expertise not included in the above categories and to be provided for a client in the performance of a specified task over a specified period of time may also be considered as consulting services.

15.1.7 Consultants may associate with each other in the form of a joint venture or of a

sub-consultancy agreement to complement their respective areas of expertise, strengthen the technical responsiveness of their proposals and make available


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bigger pools of experts, provide better approaches and methodologies, and , in some cases offer lower prices. Such an association may be for the long term (independent of any particular assignment) or for a specific assignment. If the Recipient employs an association in the form of a joint venture, the association shall appoint one of the firms to represent the association; all members of the joint venture shall sign the contract and shall be jointly and severally liable for the entire assignment. Once the short list is finalized, and RFT’s issued, any association in the form of a joint venture or sub-consultancy among short-listed firms shall be permissible only with the approval of the Recipient. Recipients shall not require consultants to form associations with any specific firm or group of firms or include any particular individual in their proposals, but may encourage association with qualified national firms.

15.1.8 If the assignment includes an important component for training or transfer of

knowledge to Recipient staff or national consultants, the TOR shall indicate the objectives, nature, scope, and goals of the training program, including details on trainers and trainees, skills to be transferred, time frame, and monitoring and evaluation arrangements. The cost for the training program shall be included in the consultant’s contract and in the budget for the assignment.

15.2 IT, Data and Telecoms

15.2.1 The risk of failure in IT projects are massive, less than 20% of all IT projects are considered fully successful during Post Implementation Reviews. Issues such as scope creep, system incompatibilities, underestimating the social change component, underestimating the complexity business process change process, failure to document all costs and needs.

15.2.2 It Projects must involve expert advice from the initial conception and include expert involvement at all stages through to PIR.

15.2.3 To help improve the odds of a successful IT project the following key issues should be taken into consideration:

15.2.3.1 Begin with business requirement, not technology availability - IT procurement has traditionally been aligned with technology products, and delivery models, such as computer hardware or software licensing.

15.2.3.2 Once business requirements are solidly defined – work with and IT experienced project manager to coordinate regular reviews of IT procurement categories by assessing their fitness for purpose, starting with a review of those purposes.

15.2.3.3 Concentrate on the business – In the project delivery focus less on managing input units and toward measuring project deliverables, monitoring scope, reviewing business outcomes.

15.2.3.4 Carefully define requirements which involve cross-category procurements require collaboration across the entire procurement project; this can significantly improve the level of expertise applied and result in better contracts. Where collaboration is required on a regular basis it makes sense to formalize this teamwork, foster collaboration, transfer knowledge and develop new skills. Clients have found that proactively retraining and realigning categories in this way can significantly improve their success at meeting stakeholder requirements and managing budgets. Changes in category management are not driven by changes in the IT market on the supply side so much as by demand.


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15.2.3.5 Service-Level Agreement Penalties. For service-level agreements (SLAs) to be used to steer the behavior of a service provider, they need to be accompanied by financial penalties. If downtime or performance service levels are not met, negotiate penalties and escalation clauses. Rather than credits, money back is preferable, in terms of your negotiating leverage and pressure on the provider

15.2.4 Computer Services Department (CSD) is to be the primary advisor for all IT related projects in the Ministry, where CSD do not have the requisite skills to advise, then the Ministry will seek an independent advisor, the advisor will be barred from bidding on the procurement project.

15.2.5 The ability for a vendor to deliver base on their competency and the complexity of the IT project must be factored into the evaluation criteria.

15.2.6 Focus on total cost of ownership (TCO), not price in procurement evaluation, paying particular attention to time and materials as well as future year support and maintenance costs.

15.2.7 When the interpretation of a bid is vague, do not assume, the evaluation committee must request written clarification from bidders. All interactions should be formal and official to ensure transparency and integrity.

15.3 Construction, property and leases

15.3.1 Construction

Before proceeding with construction procurement, the key stakeholders (including end-users) must clearly define and describe the needs and requirements for the project. Depending on the size (and estimated cost) of the project (see section 3.0), the necessary approval must be obtained before proceeding further. Where necessary, the Ministry may consult with the Public Works Department (PWD) to develop conceptual drawings and obtain sign-off by all key stakeholders. This should then be used to develop architectural drawings where necessary, as well as bill of quantities, and again, obtain sign-off by key stakeholders. Drawings must first be sought through PWD and only outsourced upon approval by the Chief Officer. Unless a solid reason is approved by the Chief Officer, PWD is the default agency for providing construction project management.

At this stage a procurement plan can be developed and the procurement process commenced and carried out in accordance with this policy as well as guidelines stipulated in the CTC handbook.

15.3.2 Property

The Ministry must adhere to the following steps for procurement of property:

15.3.2.1 Establish purpose for acquiring property. This should clearly outline the intended use of the property over the short, medium to long-term.

15.3.2.2 Obtain Cabinet’s approval before proceeding with the acquisition.

15.3.2.3 Ensure that the appropriation for such acquisition is included in the Ministry’s budget and duly approved.

15.3.2.4 The Ministry must co-opt the Lands and Survey Department for guidance on such acquisitions.

15.3.3 Leases

15.3.3.1 The Ministry must establish the purpose of the leased property and indicate the required space, preferred location and expected leased period. All lease


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contracts must be pursued through the Lands and Survey Department or default responsible department in Government as this unit is better positioned to identify the appropriate available space and negotiate the most cost-effective rates for the Ministry.

15.3.3.2 The Ministry must flag and anticipate the end of the lease and prepare a transition plan where necessary.


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15.4 Motor vehicles and heavy equipment

Generally motor vehicles and any heavy equipment of that nature must follow the same procurement procedures as any other items with the exception that there is the additional requirement that the Department of Vehicles, Equipment and Supplies (DVES) must act as the primary advisor unless the procurement is of such a specialized nature that the expertise is not within that department. If the expertise is not within the DVES, this should be documented and submitted to the Chief Officer for approval before proceeding further.

15.5 Other Capital acquisitions

All capital acquisitions must follow proper planning, budget and business case requirements. Where acquisition is of a specialized or unique, specialized expertise maybe acquired outside of government to advise, prepare RFP or evaluate tenders.

Where a supplier has participated in preparing substantially the requirements or will participate in the evaluation of tenders or bids, they are automatically excluded from the ability to bid on the tender. This is to ensure fairness and remove the capability to tailor make a solution for one particular or groups of suppliers.

16.0 Exceptions

16.1 Small procurements within specified limits

Procurement of small purchases under CI$1,500 can be made with the approval of the Head of Department or designated signatory once, the price is reasonable and fair, the vendor is stable and there are sufficient funds appropriated in the requesting Department’s budget as approved by the Cayman Islands Government.

Ideally a requisition form should be completed by the person requesting the service detailing particulars such as the item to be purchased and the reason for purchase for submission to Management for approval. These purchases should conform to purchases allowed by the Cayman Islands Government.

For such small purchases the solicitation of a price quote is required prior to a purchase order being issued or payment being made. Ideally an original, faxed or email quotes would support the PO.

16.2 National Security Exceptions

16.2.1 When the public disclosure of details or knowledge of the procumbent services/assets would adversely affect national security, then the following steps should be taken:

16.2.2 Research and document the risks to national security from details of the asset becoming public,

16.2.3 Create business case to support dealing with the procurement under the umbrella of national security, and seek support from the Ministry Executive before proceeding,

16.2.4 If possible, in considering of the risk, availability of viable suppliers, use a pre-qualification process to limit the exposure of confidential materials to pre-screen and bonded contractor only,

16.2.5 Performing all necessary security screening of private sector individuals and organizations that have access to protected and classified information and assets, including those participating in foreign sub-contracts,


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16.2.6 If the risk is great and/or the number of suppliers is limited, then use sole supplier criteria for procuring the national security assets

16.2.7 Exemption from public procurement in the interest of National Security must be approved by the Chief Officer, Deputy Governor/Relevant Minister or Cabinet

16.3 Emergency procurements

16.3.1 Clause 37 (3) of the Financial Regulations gives Chief Officers the authority to waive tendering requirements in appropriate situations when a state of emergency is declared by the Governor or in exceptional circumstances where it is impractical to invite tenders. Any waiving of tendering requirements or the Ministry’s procurement policies and procedures must be approved in writing by the Chief Financial Officer or Deputy Chief Officer who will seek the approval of the Chief Officer at the appropriate time. Where tender requirements are waived, the overriding requirement to ensure value for money must be adhered to.

16.3.2 Improper planning is NOT a justification for emergency procurement

16.3.3 Emergency procurement should only be used to alleviate suffering, imminent risk and danger

16.4 Interagency

16.4.1 Where possible, the Ministry will as a first choice, seek to partner with Government agencies for the procurement of services and assets provided that:

16.4.1.1 The ability for internal agencies to meet the Ministry’s requirements is fundamental to their selection

16.4.1.2 The internal agencies must be cost effective and provide best value for money in comparison to outsider providers.

16.4.1.3 A MOU or SLA will bind the internal agency to the Ministry requirements and an exit clause will allow the Ministry to source services externally if reasonable efforts to correct any deficiencies with internal providers are fruitless.

16.4.1.4 Where possible and practical volume buying through internal providers should drive down costs through economies of scale. Alternate pricing should be sought to establish value for money.

16.4.1.5 Interagency procurement should follow normal procurement processes unless a compelling reason for should supplier can be made.

16.4.1.6 ensure quality control through a quality assurance program and technical evaluation process;

16.5 Sole Supplier or sole source

16.5.1 Sole source is a contracting method that is not promoting Full and Open Competition (FOC). Sole source is only used when other procurement methods, namely micro-purchases, small purchases, and competitive solicitation procedures like sealed bids, or competitive proposals, or situations that will lead to an unrealistic offer.

16.5.2 Sole source purchase must meet one of the following criteria and must be approved by the Ministry:


January 1, 2013


16.5.2.1 unicity, i.e. the item is only available from one single supplier (one-of-a-kind, parts maintenance, compatibility, standard compliance); or

16.5.2.2 immediacy, i.e. delivery date or delays resulting from competitive solicitation are not acceptable; (This condition requires CO or designated approval)or

16.5.2.3 emergency, i.e. delays resulting from other methods of solicitation are not bearable; (must follow emergency provisions) or

16.5.2.4 legitimacy, i.e. specific contexts (geographic, contractual, political, legal, military, security, etc.) may allow such a non-competition of sources; or

16.5.2.5 inadequacy, all sources are qualified as inadequate (compatibility, compliance, price, quality, service, support, etc.); or

16.5.2.6 exigency, i.e. any other specific reason dictating the choice of a given provider.

16.5.3 Where it appears that there is only one suitable source for a particular supply:

16.5.3.1 The employee responsible for the procurement must ensure that there is only one viable supply.

16.5.3.2 Prior to entering into an agreement with the sole source supplier, the responsible employee must provide written justification to the Ministry, procurement authority (or Ministry DTC if over $50,000 and CTC if over $250,000) on why it is necessary to go with a sole source supply.

16.5.3.3 The relevant authority will review the proposal to enter into a sole source supply and approve or disapprove as appropriate. When approved by the authority the employee may proceed with the award. If there is doubt as to the justification of the sole source supply, the relevant authority may require that the supply is advertised to ensure there are no other valid supply sources.

16.5.3.4 In the case of recurrent supply, the authority may agree a timeframe and conditions during which an approved sole source supply may continue, which shall not exceed one year.

16.5.3.5 The responsible employee and the procuring authority are responsible to ensure value for money in sole source supply situations.

16.5.4 Sole sourcing is not appropriately justified and justifiable when used as a method of selecting a preferred vendor. Notwithstanding the fact that they could be voided by potential sole source solicitation protests, purchases of this kind, when put under scrutiny, will surely attract auditors' interest in their quest for details suggesting a bit of favoritism, partiality, and other bias


January 1, 2013


17.0 Subsequent procurement

17.1 Cost and time overruns are common reasons why projects fail to meet their targets, risks to project

fulfillment also come from scope change and scope creep, these two dynamics affect procurement projects where the new deliverable fall outside the documented deliverables and cause time and cost increases as a result:

17.1.1 Business cases must align and complement departmental and Ministry strategic plans

17.1.2 Total cost of the project phases and ongoing costs must be included in the business plan documentation

17.1.3 Contracts should include a small contingency fund (2-5%) to allow critical adjustments to meet undocumented deliverables or small changes in requirements.

17.1.4 Any changes or additions to scope must be managed to ensure the project contains only the work required to successfully complete the project intention stated in the project charter. These scope additions and scope changes have to approved and agreed by the project signing authority. Any significant increases in time or cost should (Greater than x percent) should be treated as a separate project phase with a separate procurement process

17.1.5 All scope additions or change, even those that appear minor or insignificant must be formally documented before the change is agreed on, or submitted for approval.

17.1.6 Availability of funding for the initial project as well as the ongoing recurrent costs must be confirmed before contracts are signed or amended.

17.1.7 The decision to proceed must consider funding as well as business requirements.

17.1.8 If the value of the procurement is likely to approach CTC limits, then proceed with the procurement as a CTC tender

17.1.9 Significant additional purchases from the supplier of procurement project must be treated as a separate procumbent project, unless approval is garnered for a sole supplier procurement.

17.1.10 The act of breaking up any procurement to more than one amounts below the limits established in in contravention of this policy and the principles enshrined in this policy. The likelihood of subsequent procurements and the extent must be taken into account when determining the level of the procurement and the business case. This information must be disclosed in the procurement documents to all specified vendors.


January 1, 2013


18.0 Ethical requirements and conflict of interests

18.1 The Ministry requires that employees and consultants provide professional, objective, and impartial advice and at all times hold the Government’s interest paramount, without any consideration for future work and, and that in providing advice they avoid conflicts with other assignments and their own corporate interests. Consultants should not be hired for any assignment that would be in conflict with their prior or current obligations to other clients, or that may place them in a position of being unable to carry out the assignment in the best interest of the Recipient.

In order to avoid any real or perceived conflict of interest, employees must adhere to the following:

18.1.1 Conflict between consulting activities and procurement of goods, works or services (other than consulting services covered by these guidelines): An entity that has been engaged by the Recipient to provide goods, works or services (other than consulting services covered by these guidelines) for a project, and each of its affiliates, shall be disqualified from providing services related to those goods, works or services. Conversely, an entity hired to provide consulting services for the preparation or implementation of a project, shall be disqualified from subsequently providing goods, works or services (other than consulting services covered by these guidelines) resulting from or directly related to its consulting services for such implantation or preparation. This provision does not apply to the various entities (Consultants, contractors, or suppliers) which together are performing the contractor’s obligations under a turnkey or design and build contract.

18.1.2 Conflict among consulting assignments: Neither consultant (including their personnel and sub-consultants), nor any of their affiliates, shall be hired for any assignment that, by its nature, may be in conflict with another assignment of the consultants. As an example, consultants assisting a client in the privatization of public assets shall neither purchase, nor advise purchasers of, such assets or participate in the sale of such asset to the government. Similarly, consultants hired to prepare Terms of Reference (TOR) for an assignment shall not be hired for the assignment in question or be suppliers of goods relating to the TOR.

18.1.3 Relationship with Recipient’s staff: Consultants (including their personnel, and sub-consultants) that have close business or family relationship with a member of the Recipient’s staff (or of the project implementing the preparation of the TOR for the assignment, (ii) the selection process for the contract, or (iii) supervision of such contract may not be awarded a contract, unless the conflict stemming from this relationship has been resolved in a manner acceptable to the Ministry throughout the selection process and the execution of the contract.

18.1.4 A consultant shall submit only one proposal, either individually or as a joint venture partner in another proposal. If a consultant, including a partner of a joint venture, submits or participates in more than one proposal, all such proposals shall be disqualified. This does not however, preclude a consulting firm to participate as a sub-consultant, or an individual to participate as a team member, in more than one proposal when circumstances justify and if permitted by the request for proposal.

18.1.5 Contracting authorities, in the contract notice or Request for Tender, must request a declaration from the tenderer that neither the organization submitting the tender nor the personnel proposed to work on the contract nor any relatives thereof have any conflict of interest in connection with the contract and that they will inform the contracting authority without delay if any event or interest could constitute or give rise to a conflict of interest.

18.1.6 A Request for Tender must always clearly state that that failure to disclose a conflict of interest may disqualify a tenderer or cause the termination of a contract and


January 1, 2013


entitle the contracting authority to seek remedies, such as costs or compensation for loss. In tenders relating to policy examination or evaluation, tenderers must be asked, in the contract notice or Request for Tender, to provide a declaration of non-alignment with any entities or interests that could compromise objectivity.

18.1.7 Ministry employees or their immediate family (spouse, parents, brothers, sisters and children), firms owned, part owned or operated by Ministry employees or their immediate family, or firms that employ Ministry employees must not submit quotations or tenders on government work being procured by the Ministry.

18.1.8 Employees involved with or exerting influence over procurement must complete a register of interest at least annually and file it with the Ministry.

18.1.9 Employees or their immediate family, firms owned, part owned or operated by employees or their immediate family, or firms that employ Ministry employees must not be awarded contracts or issued PO’s for Government work being carried out or managed by the Ministry or must not be permitted to perform any government work being carried out or managed by Ministry. Where this conflict arises and the related party still wishes to bid, special permission must be granted by the Chief Officer who will specifiy further conditions and ensure perceptions and integrity of the process is addressed. There the Party is related to the Chief Officer, the Deputy Governor must be notified.

18.1.10 Where relatives (immediate family plus aunts, uncles, cousins, grandparents, nieces, nephews and in-laws) of employees or firms owned, part owned or operated by relatives of employees, are submitting quotations or tenders or have been engaged to provide works or services, the subject Ministry employee shall have no involvement in the invitation, preparation, submission or review of quotations or tenders being submitted by his/her relative or any subsequent award.

18.1.11 The subject Ministry employee shall also have no involvement in the award, management or execution of the works being carried out by his / her relative.

18.1.12 All quotations or tenders being submitted by relatives of Ministry employees regardless of value shall be submitted to the Ministry for review and award.

18.1.13 All employees involved in procurement have the obligation to declare to the procuring authority any situations they are aware of which could be perceived as a conflict of interest. This includes any situations where their relatives, relatives of employees or firms employing Ministry employees are submitting quotations or tenders to the Ministry.

18.1.14 Ministry employees shall not solicit or accept gifts for personal benefit, directly or indirectly. This includes any gift, gratuity, favor, entertainment, loan or anything of monetary value from any person in the course of their official duties or in any way connected with their employment at the Department.


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19.0 Non-adherence to the Policy

19.1 This policy must be adhered to by all members of the Ministry of Home Affairs and its respective departments. Failure to adhere to the Procurement Policy and its policy directives and other procedures will be cause for disciplinary action up to and including serious misconduct as per the Public Service Management Law (2011 Revision). Any case of fraud will be dealt with seriously as fraud and will be cause for further disciplinary action up to and including gross misconduct including further criminal investigations and proceedings.

19.2 Fraud would be considered "criminal activity in the workplace" and as such incidents of suspected fraud will be turned over to the Police for investigation.


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20.0 Appendices

20.1 Authorities and limits Table of prescribed limits and authority to procure

(To be provided and revised by the Ministry)


January 1, 2013


20.2 Business case: sample Business case

Pro

ject Title

:

Go

al:

Age

ncy:

Aim

:

Activitie

s:$0.00

$14,277.00$6,442.00

$20,054.00$40,773.00

$4,099.00$6,000.00

$5,210.00$15,309.00

$5,000.00$5,000.00

$4,480.00$4,480.00

Justificatio

n:

2013/14 Co

sts

Re

curre

nt

2012/132013/14

2014/15

Dire

ct Co

sts:

An

nu

al Sup

po

rt5,210.00

5,210.00

5,210.00

$5,000.00

$1,000.00$6,000.00

Pro

fessio

nal Fe

es

Ad

vertisin

g2014/15 C

osts

Staff time

3,000.00

3,000.00

3,000.00

Trainin

g500.00

1,500.00

500.00

8,710.00$

9,710.00$

8,710.00$

Cap

ital Co

sts:65,562.00

$6,000.00

$2,000.00

Entity R

eve

nu

e/Savin

gs:$2,000.00

$2,000.00

Re

du

ction

in P

rintin

g3,000.00

3,000.00

3,000.00

Re

du

ction

in Staff tim

e an

d sto

rage6,000.00

6,000.00

6,000.00

Re

du

ction

in C

ou

rrier

1,000.00

1,000.00

1,000.00

Total R

eve

nu

e/Savin

gs:10,000.00

$ 10,000.00

$ 10,000.00

$

No

tes:

Pre

pare

d B

y

Ap

pro

ved

by C

hie

f Office

r/CFO

De

partm

en

t He

ad

4. Trainin

g staff and

MLA

ho

w to

use

the

ne

w to

ols

Direct Expenditure Sub-Total

Training

Hardware Deployment

Software Licensing

Applications and

communications

Promotion and publications

Network Hardware

5. Pro

mo

tion

and

pu

blicatio

n o

f the

succe

ss and

be

ne

fits

Annual Support

Pro

ject d

ata sho

uld

refle

ct total co

st that co

uld

be

cut if p

roje

ct is cance

lled

To M

od

ern

ise th

e d

istribu

tion

of co

nte

nt in

clud

ing cre

ating an

ele

ctron

ic

library o

f laws an

d m

od

ern

and

secu

re d

istribu

tion

of d

ocu

me

nts to

the

me

mb

ers o

f the

legislative

assem

bly an

d th

ere

by re

du

cing co

sts.

Legislative

Asse

mb

ly

To im

pro

ve th

e d

istribu

tion

, efficie

ncy an

d availab

ility of d

ocu

me

nts an

d

oth

er co

nte

nt to

me

mb

ers o

f the

legislative

assem

bly

Legislative

Asse

mb

ly Co

nte

nt M

od

ern

isation

2. Ide

ntificatio

n an

d P

rocu

rem

en

t of te

chn

ical solu

tion

s

1. Re

du

ction

in co

st of p

rintin

g and

distrib

utio

n

3. Easier re

search

and

access

4. Faster acce

ss and

distrib

utio

n o

f Han

sards, B

ills and

oth

er su

pp

ortin

g do

cum

en

ts

1. Plan

nin

g and

app

roval o

f ph

ases

3. Imp

lem

en

tation

and

de

plo

yme

nt o

f ne

cessary te

chn

olo

gy

2. Imp

rove

d se

curity

Hardware

Deployment

Network

Hardware

Direct

Expenditure Sub-

Total

Software

Licensing

Applications and

communications

Annual Support

Training

Promotion and

publications

Training

Promotion and

publications

Direct

Expenditure Sub-

Total

Hardware

Deployment

Network

Hardware

Software

Licensing

Applications and

communications

Annual Support


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20.3 Example of Expression of Interest request

GOVERNMENT OF the Cayman Islands Ministry of Home Affairs Legislative Assembly Technology Modernisation REOUEST FOR EXPRESSIONS OF INTEREST The Government of the Cayman Islands is currently undertaking a project to modernize the record management and distribution of documents and content in the Legislative Assembly for which this invitation is issued. Ministry of Home Affairs , the Executing Agency, now wishes to procure consultancy services for the design of a technical solution. The objective of the consultancy is to evaluate the needs of the Legislative Assembly and suggest one or more viable solutions for achieving the objectives. The duration of the assignment is expected to be for a period of three months. The Ministry of Home Affairs now invites interested eligible consulting firms to submit Expressions of lnterest for the provision of these consultancy services. Consultants shall be eligible to participate if, (a) in the case of a body corporate, it is legally incorporated or otherwise organised in the Cayman Islands and has its principal place of business in the Cayman Islands and is more than 60 per cent beneficially owned by citizen(s) and/or bona fide resident(s) of the Cayman Islands or by a body(ies) corporate meeting these requirements; (b) in the case of unincorporated firms, the persons are citizens and/or bona fide resident(s); and in all cases, the consultant has no arrangement and undertakes not to make any arrangements, whereby any substantial part of the net profits or other tangible benefits of the contract will accrue or be paid to a person not a citizen or bona fide resident of the Cayman Islands. In the assessment of submissions, consideration will be given to technical competence, qualifications and experience, local and regional experience on similar assignments, financial capability and existing commitments. All information must be submitted in English. Further information may be obtained from the first address below between 8:30am and 5:00pm Monday to Friday. Electronic copies of Interest must be sent to the email address below and each submission should include the name and address of the applicant and shall be clearly marked "Expression of interest – consultancy Services for Legislative Assembly" in the subject. Following the assessment of submissions, a short list of not less than three and not more than six applicants will be provided with full terms of reference and invited to submit technical and financial proposals to undertake the assignment. The Government reserves the right to accept or reject late applications or to cancel the present invitation partially or in its entirety. It will not be bound to assign any reason for not short-listing any applicant and will not defray any costs incurred by any applicant in the preparation and submission of Expressions of lnterest' 1. Address l 2. Address 2


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20.4 STANDARD REQUEST FOR PROPOSALS

Section 1: Letter of Invitation (LOI)

This Section is a template of a letter from the Client addressed to a shortlisted list of suppliers inviting it to submit a proposal for a consulting assignment. The LOI includes a list of all shortlisted firms to whom similar letters of invitation are sent, and a reference to the selection method and applicable guidelines or policies of the Ministry that govern the selection and award process. Section 2: Instructions to Vendor and Data Sheet

This Section consists of two parts: "Instructions to Vendors" and "Data Sheet". "Instructions to Vendors" contains provisions that are to be used without modifications. "Data Sheet" contains information specific to each selection and corresponds to the clauses in "Instructions to Vendors" that call for selection-specific information to be added. This Section provides information to help shortlisted Vendors prepare their proposals. Information is also provided on the submission, opening and evaluation of proposals, contract negotiation and award of contract. Information in the Data Sheet indicates whether a Full Technical Proposal (FTP) or a Simplified Technical Proposal (STP) shall be used. Section 3: Technical Proposal - Standard Forms

This Section includes the forms for FTP and STP that are to be completed by the shortlisted Vendors and submitted in accordance with the requirements of Section 2. Section 4: Financial Proposal - Standard Forms

This Section includes the financial forms that are to be completed and submitted by shortlisted Vendors in accordance with the requirements of Section 2, including Vendor’s costing of its technical proposal. Section 5: Eligible Jurisdictions/Vendors

This Section contains information regarding eligibility criteria of Vendors such as Caymanian, Business License Criteria and security clearances. Section 6:Ministry’s Policy on corrupt and fraudulent practices

This section outlines the policies of the Ministry on corrupt and fraudulent practices. All cases of fraud and corruption will be referred to the Police for Investigation. Section 7: Terms Of reference

This section describes the scope of services, objectives, goals, specific tasks required to implement the assignment and relevant background information, provides details on the required qualifications of the key experts, and lists the expected deliverables. This section shall not be used to over write provisions in Section 2. PART II _ CONDITIONS OF CONTRACT AND CONTRACT FORMS Section 8: Standard Forms of Contract

This Section includes the types of standard contract forms for large or complex assignments and for small assignments: a Time-Based contract and a Lump-Sum contract in each case. Each type includes General conditions of contract_("Gcc') it shall not be modified, and special conditions of contract ("scc") that include clauses specific to each contract to supplement the General Conditions.

For more information contact your Ministry office.

20.5 Simple contract


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Small supplier

(Note: Text in brackels [ ] is optional; all notes should be deleted in the final text)

This CONTRACT (hereinafter called the "Contract") is made the [number] day of the month

of [month], [year], between, on the one hand, [Department] (hereinafter called the

"Client") and, on the other hand, [Vendor] (herinafter called the"Supplier").

[Note: if- the Supplier consist of more than one entity, the above should be partially

amended to read as follows: "...(hereinafter called the "Client") and, on the other hand,

a Joint Venture (name of the Joint Venture) consisting of the following entities, each

member of which will be jointly and severally liable to the Client for all the Supplier's

obligations under this Contract, namely, [name of member] and [name of member]

(hereinafter called the "Supplier")]

WHEREAS

(a) the Client has requested the Supplier to provide certain services or goods as defined in

this Contract (hereinafter called the "Services");

(b) the Supplier, having represented to the Client that it has the required professional skills,

expertise and technical resources, has agreed to provide the Services or Goods on the

terms and conditions set forth in this Contract;

NOW THEREFORE the parties hereto hereby agree as follows:

1. The following documents attached hereto shall be deemed to form an integral part of this

Contract:

(a) The General Conditions of Contract;

(b) The Special Conditions of Contract;

(c) Appendices: (as necessary)

Appendix A: Terms of Reference

Appendix B: Key Experts

Appendix C: Breakdown of Contract Price


January 1, 2013


Appendix D: Form of Advance Payments Guarantee

In the event of any inconsistency between the documents, the following order of precedence shall

prevail: the Special Conditions of Contract; the General Conditions of Contract, inciuding

Attachment l; Appendix A; Appendix B; Appendix C; Appendix D, Any reference to this Contract

shall include, where the context permits, a reference to its Appendices.

2. The mutual rights and obligations of the Client and the Supplier shall be as set forth in the

Contract, in Particular:

(a) the Supplier shall carry out the services or deliver the goods in accordance with the provisions of

the Contract; and

(b) the Client shall make Payments to the supplier in accordance with provisions of the Contract.

IN WITNESS WHEREOF, the Parties hereto have caused this contract to be signed in their respective

names as of the day and year first above written.

For and on behalf of [Department]

__________________________________________

[Authorised Representative of the CIient - name, title and signature]

For and on behalf of [Name of supplier or Name of a Joint Venture]

__________________________________________

[Authorised Representative of the CIient - name, title and signature]


January 1, 2013


20.6 Sample Evaluation form

Ten

de

r Evaluatio

n

Po

rtfolio

/Min

istry: P

rocu

rem

en

t de

scriptio

n:

Pro

cure

me

nt C

riteria

Score

Wtg

Wtd

Score

Score

Wtg

Wtd

Score

Score

Wtg

Wtd

Score

Score

Wtg

Wtd

Score

Crite

rion

1

Crite

rion

2

Crite

rion

3

Crite

rion

4

Ratin

g Office

r:D

ate:

Re

view

ed

By C

O/C

FO:

Date

:

Each

evalu

ato

r to co

mp

lete an

evalu

atio

n fo

rm Sup

plie

r ASu

pp

lier B

Sup

plie

r CSu

pp

lier D


January 1, 2013


20.7 Procurement Plan form

Procurement PlanPortfolio/Ministry:

For goods (materials, equipment & supplies and services)

Project:

Item description

Expected

date of

purchase Quantity Potential vendor

Estimated

cost

Procurement

method

Responsible

officer

Prepared by: Date:

Approved by: Date:

Ministry of Home Affairs – Procurement Policy€¦ · January 1, 2013 Drafted by Vinton ......

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Transcript of Ministry of Home Affairs – Procurement Policy€¦ · January 1, 2013 Drafted by Vinton ......