Procurement Regulations and Procedures

Submitted for PPADB Vetting

DATE: 15/06/2016

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CONTENTS

Procurement Procedures (fin 23) 2

Introduction 2

Definitions 2

Procurement Limits 3

Formal Tenders: P1, 000, 001 to P2, 000, 000 (Management Tender Committee {MTC}) 5

Formal Tenders: P2,000,001 – P5,000,000: (Board Tender Committee ({BOCRA BTC}) 8

Formal Tenders P5, 000, 001 and above: (The Board of the Authority) 9

Evaluation Committee 14

Procurement Unit 15

PROCUREMENT METHODS 16

Quotation Procurement Method 25

Micro Procurement 27

Tender Administration Procedures 30

Types of Contracts 41

AWARD OF CONTRACT 42

Cooling off Period 43

Rejection of all tenders 43

NEGOTIATION 45

Reservation and Preference 48

De-briefing 48

Complaints Process 48

Contract Termination 49

Prohibition of BOCRA Officers 49

Procedures to be Confidential 50

Procurement of goods and services (fin 24) 51

Other Controls 53

Disposal Regulations 55

Disposal Methods 56

Sale to Authority staff 60

PROCUREMENT PLANNING 68

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Procurement Procedures (fin 23)

1. The purpose of these regulations is to outline the financial procurement

limits in use and the procedures that relate to the administration of the

procurement and asset disposal process at the Authority.

Introduction

2. The purchase or disposal of any supplies or the letting of any contracts

for works, supplies or services is subject to these procurement

procedures.

Definitions

3. The following definitions shall be applicable in this regulation:

4. "Tender Procedures" are those as outlined in these Regulations and any

other instruction issued from time to time.

5. "Public Tender" means a formal tender, which shall be advertised by

public notice and/or other media as appropriate.

6. "Request for Quotation" means an informal procurement which need not

be advertised publicly and which may be called for by an authorised

official without reference to the Management Tender Committee or the

Board Tender Committee.

7. “Direct Appointment” means a method where the selection of a supplier

is conducted on a sole supplier basis without competition.

8. "Selective Tender" means a formal tender in which the invitation to tender

is sent only to firms pre-selected and approved by the relevant authority

depending on financial thresholds. These need not be advertised by

public notice.

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9. "Running Contract" means a contract which extends over a

specified period of time for an estimated or variable quantity of

supplies, works or for a specified service.

10. "Services" means consultancy, professional, maintenance or other

services.

11. “Micro Procurement” refers to non-tender procurement of all

supplies, works or services for values below P50, 000

12. “Management Tender Committee” (“MTC”) refers to the Internal

Tender Committee at the Authority comprising of individuals as

defined in these regulations.

13. “Board Tender Committee” (“BTC”) refers to the External Tender

Committee of the Authority comprising of Board members as

defined in these regulations.

14. “Board” means the Board of the Authority consisting of seven (7)

members of as established in terms of section 4 of the

Communications Regulatory Act.

Procurement Limits

15. Procurement of supply items or letting or works or service contracts

will be subject to these Regulations, depending on the value of

works, supplies or services being procured:

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16. All Departments of BOCRA shall adhere to the limits of this purchasing

authority schedule.

ESTIMATED

ORDER VALUE

METHOD OF

PROCUREMENT

MINIMUM

NUMBER

QUOTATIONS

REQUIRED

APPROVAL

AUTHORITY

Up to 500 Micro Procurement without

competition (Use of Petty

Cash)

N/A Accounts Officer

501 to P50,000

Micro Procurement with

competition

5 (Quotations

Not Mandatory)

Procurement

Manager

P50,001 –

P100,000

Quotation Procurement

Method(Written quotation)

5 Head of

Department

P100,001 –

P250,000

Quotation Procurement

Method(Written quotation)

5 Deputy Chief

Executive

P250,001 –

P1,000,000

Formal Tender N/A Chief Executive

P1,000,001 –

P2,000,000

Formal Tender N/A Management

Tender Committee

P 2, 000,001 –

P5,000,000

Formal Tender N/A Board Tender

Committee

P5,000,001 and

above

Formal Tender N/A Full Board

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17. Use of Petty Cash– up to P500 (Accounts Officer)

18. Micro Procurement competition not mandatory: P501 – P50,000

(Procurement Manger)

19. Quotation Procurement Method: P50, 001 to 100,000 (Head of

Department)

20. Quotation Procurement Method: P100, 001 -P250, 000 (Deputy Chief

Executive {DCE})

21. Formal Tender Procedures: P 250, 001 to P 1, 000,000 (Chief

Executive Officer)

22. The Department concerned shall evaluate the tenders or bid

documents;

23. The HOD concerned with the relevant purchase, consulting together

with other HODs shall make a recommendation to the CE who shall

then determine the award;

Formal Tenders: P1, 000, 001 to P2, 000, 000 (Management Tender Committee {MTC})

Constitution of the MTC

24. The MTC of the Authority shall comprise the following members:

24.1. Chief Executive (CE)

24.2. Deputy Chief Executive, Operations

24.3. Deputy Chief Executive/s, Regulatory

24.4. Director Corporate Support (DCS)

24.5. One (1) senior officer, who is a permanent member

of the Committee, nominated by the Chairperson. .

25. The Committee may also call upon any specialist to give advice on

the suitability of a purchase or contract.

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Quorum

26. A quorum of the MTC shall be any three members.

Functions and Authority of the Management Tender Committee The Committee shall:

27. Call for, adjudicate and authorize acceptance or otherwise of

tenders for the Authority’s requirements of goods and services for

values within their limits of authorisation in accordance with these

regulations having satisfied itself that adequate budgetary provision

exists or that specific approval to the expenditure to be incurred has

been given by the Board as appropriate;

28. Approve final selection and award contracts to successful bidders;

29. Authorise in special circumstances, waiver of Tender Procedures

for values within their limits of authorisation;

30. Ensure that the general policy laid down by the Board from time to

time on the procurement of works, supplies and services for the

Authority is adhered to;

31. to standardise goods, equipment and services procured for the

Authority in the interest of efficiency, economy, quality and reliability

and ease of maintenance;

32. Promote the participation of citizen-owned companies, firms and

organisations in tenders as guided by the government citizen

economic empowerment policies.

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Secretary

33. The Procurement Manager shall be the Secretary to the MTC who

will record proceedings at the meeting but will have no voting rights.

Formal Tenders: P2,000,001 – P5,000,000: (Board Tender Committee ({BOCRA BTC})

Constitution

34. The BTC of the Authority shall comprise the following individuals:

34.1. The Chairman of the Committee appointed by the

Committee members from amongst their number;

34.2. One non-executive member of the Board;

34.3. One independent non-executive person appointed by the

Board who may not be a present member of the Board.

34.4. Chief Executive (an ex-officio member who, in terms of

Section 21 (5) of the Communications Regulatory Authority

Act does not have any voting rights)

35. The Committee may also call upon the HOD requesting the item or

specialist to give advice on the suitability of a purchase or contract,

who will be non-voting.

Quorum

36. A quorum of the BTC shall be any three members.

Functions and Authority of the Board Tender Committee The Committee shall:

37. Call for, adjudicate and authorize acceptance or otherwise of tenders

for the Authority’s requirements of goods and services for values within

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their limits of authorisation in accordance with these regulations having

satisfied itself that adequate budgetary provision exists or that specific

approval to the expenditure to be incurred has been given by the Board

as appropriate;

38. Approve final selection and award contracts to successful bidders;

39. Authorise in special circumstances, waiver of Tender Procedures

for values within their limits of authorisation;

40. Ensure that the general policy laid down by the Board from time to

time on the procurement of works, supplies and services for the

Authority is adhered to;

41. to standardise goods, equipment and services procured for the

Authority in the interest of efficiency, economy, quality and reliability

and ease of maintenance;

42. Promote the participation of citizen-owned companies, firms and

organisations in tenders as guided by the government citizen

economic empowerment policies.

Secretary

43. The Board Secretary shall be the Secretary to the BTC who will

record proceedings at the meeting but will have no voting rights

Formal Tenders P5, 000, 001 and above: (The Board of the Authority)

44. The Board shall adjudicate tenders submitted to it by the evaluation

committee within its limit of authorisation.

45. The Board of the Authority consists of seven (7) members appointed

by the Minister responsible.

46. The composition of the Board is as follows:

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46.1. The Chairman appointed by the Minister

46.2. The Vice Chairman appointed by the Board members

from amongst their number.

46.3. Five (5) Board members as appointed by the Minister

46.4. Chief Executive (an ex-officio member who, in terms of

Section 21 (5) of the Communications Regulatory

Authority Act does not have any voting rights)

Quorum

47. A quorum of the Board shall be four (4) members.

Functions 48. The Board of the Authority is the supreme body which directs all the

policy and regulatory functions and activities of the Authority.

49. The Board shall:

49.1. Call for, adjudicate and authorize acceptance or otherwise of

tenders for the Authority’s requirements of goods and services

for values within their limits of authorisation in accordance with

these regulations having satisfied itself that adequate budgetary

provision exists or that specific approval to the expenditure to be

incurred has been given by the Board as appropriate;

49.2. Approve final selection and award contracts to successful

bidders;

49.3. Authorise in special circumstances, waiver of Tender Procedures

for values within their limits of authorisation;

49.4. Ensure that the general policy laid down by the Board from time

to time on the procurement of works, supplies and services for

the Authority is adhered to;

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49.5. to standardise goods, equipment and services procured for the

Authority in the interest of efficiency, economy, quality and

reliability and ease of maintenance;

49.6. Promote the participation of citizen-owned companies, firms and

organisations in tenders as guided by the government citizen

economic empowerment policies.

Secretary

50. The Board Secretary shall record proceedings at the Board meeting

but will have no voting rights

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General Functions and Authority of the Tender Committees The Committees shall:

52. Call for, adjudicate and authorize acceptance or otherwise of

tenders for the Authority’s requirements of goods and services for

values within their limits of authorisation in accordance with these

regulations having satisfied itself that adequate budgetary provision

exists or that specific approval to the expenditure to be incurred has

been given by the Board as appropriate;

53. Approve final selection and award contracts to successful bidders;

54. Authorise in special circumstances, waiver of Tender Procedures

for values within their limits of authorisation;

55. Ensure that the general policy laid down by the Board from time to

time on the procurement of works, supplies and services for the

Authority is adhered to;

56. to standardise goods, equipment and services procured for the

Authority in the interest of efficiency, economy, quality and reliability

and ease of maintenance;

57. Promote the participation of citizen-owned companies, firms and

organisations in tenders as guided by the government citizen

economic empowerment policies.

Voting Rights

58. The members of the Board and its committees will have one vote

each with a casting vote by the Chairperson in the event of an

equality of votes.

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Attendance

59. Members of the Board and its committees shall attend all their

respective committee meetings. Where a member is unable to

attend a meeting due to other work commitments then reasonable

notice of absence shall be provided to the Board/Committee through

the Secretary;

Conflict of interest

60. If a Board or Tender Committee member is present at a meeting at

which any matter in which the member is directly or indirectly

interested in a private capacity is the subject of consideration, he or

she shall, as soon as is practicable after the commencement of the

meeting, declare such interest and shall not, unless the Board

otherwise directs, take part in any discussion or voting of the Board

or Committee on such matter.

61. In circumstances where a Board or Tender Committee member or

one of his/her immediate family member has submitted a tender the

member shall notify the Chairman to that effect and he/she will be

excluded from attending any meeting of the Board or Tender

Committee at which such tenders are considered.

62. All Board/Committee members shall duly declare the conflict of

interest in the relevant form provided by the Board/Committee

Secretary at the start of each meeting.

Minutes

63. The minutes of all meetings of the Board/Tender Committees shall

be recorded, signed by the Chairperson of each Board/Tender

Committee and the Secretary and then filed.

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Evaluation Committee

64. An evaluation committee shall be appointed by the Chief Executive or

a senior officer delegated by the Chief Executive for each tender and

shall disband after the evaluation and award of the specific tender is

completed.

65. The Chairperson of each evaluation committee shall be appointed by

the Head of Department procuring the concerned services, works or

supplies.

66. The HOD of the procuring Department shall not be the chairperson of

the evaluation committee.

67. The evaluation committee shall consist of at least three (3) members.

68. At least one of the Evaluation Committee members should be from a

different Department than the procuring one in order to maintain impartiality

69. The BOCRA Internal Auditors should not form part of the evaluation

committee, except on the procurement of auditing services or related matters, as they should review the evaluation process.

70. The Procurement Officer will play an advisory role on the procedure

and should be contacted where clarification is required on the evaluation process.

71. It is also recommended that a representative from the Finance

department should be part of the evaluation committee.

72. Other persons not being the staff of the Authority may be appointed to the evaluation committee depending on the nature of the tender being evaluated.

73. Evaluation Committee Members should keep the proceedings and

discussions confidential, and should not discuss with anyone outside

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the Evaluation Committee. All discussions should be recorded and retained according to the applicable record management policy.

74. The Evaluation Committee Members should sign a “Declaration of

Secrecy” and “Declaration of Interest” and Statement of Non-Disclosure Form, and this form should be returned to the Procurement Officer after signature for record keeping.

Procurement Unit

75. The Procurement Unit shall be a section within the structure of the

Authority consisting of staff members of the Authority. It shall be the

center of expertise for all procurement activities of the Procuring Entity.

The Procurement Unit should be headed by a Procurement Manager,

who possesses the requisite qualifications and experience in public

procurement and asset disposal activities

76. The Procurement Unit will be responsible for the following

departmental activities:

76.1. Obtain estimated requirement of consumables and non-

consumables, including cost estimates, for each financial year,

from all departments.

76.2. In consultation with all departments prepare a costed annual

procurement plan and prioritise requirements. Where possible

ensure common items are consolidated

76.3. Ensure that goods, services and works are procured in the most

economical, efficient and effective manner according to these

procedures.

76.4. In association with Heads of Department and Technical

Specialists, will prepare and co-ordinate all the associated

paperwork, specifications, terms of reference, bills of quantities,

drawings, short-lists, advertisements, prequalification, tender or

request for quotation documents. to ensure completeness,

accuracy and competitive qualities to allow for equal treatment

and competition among all contractors.

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PROCUREMENT METHODS

Expression of Interest

77. An Expression of Interest (EOI) process may be used before the

Authority invites tenders. The aim at EOI stage is to assess the

capacity and level of interest of respondents to undertake the work,

to seek feedback on draft specifications to assist in the refinement

of specifications and to shortlist respondents for a selective

tender. Evaluation criteria for shortlisting of selective tenders will

be included in each EOI.

78. Respondents who are not invited to quote will be advised in writing.

Request for Information (RFI)

79. A Request for Information (RFI) is a solicitation sent to a broad base

of potential suppliers for the purpose of conditioning, gathering

information, preparing for tender or quotation, developing

strategy, or building a database about:

79.1. the suppliers, including: facilities, finances, attitudes,

and motivations;

79.2. the state of the supply market;

79.3. supply market dynamics;

79.4. trends and factors driving change;

79.5. alternative pricing strategies;

79.6. supplier competition;

79.7. breadth and width of product/service offerings, by

supplier;

79.8. supplier strategic focus, business, and product plans.

80. RFIs may include a detailed list of products/services for which

pricing is requested. The pricing should be used for

comparative purposes, not as the basis of buying decisions.

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Through analysis of RFI responses, strategic options, lower

cost alternatives, and cost reduction opportunities may be identified.

Pre-qualification

81. Prequalification is usually necessary for large or complex works, or

in any other circumstances in which the high costs of preparing

detailed bids could discourage competition, such as custom-

designed equipment, industrial plant, specialized services, some

complex information and technology and contracts to be let

under turnkey, design and build, or management contracting. This

also ensures that invitations to bid are extended only to those

who have adequate capabilities and resources. Prequalification

shall be based entirely upon the capability and resources of

prospective bidders to perform the particular contract satisfactorily,

taking into account their:

81.1. Experience and past performance on similar

contracts,

81.2. capabilities with respect to personnel, equipment,

and construction or manufacturing facilities, and

financial position.

82. the invitation to prequalify for bidding on specific contracts or groups

of similar contracts shall be advertised.

83. the scope of the contract and a clear statement of the requirements

for qualification shall be sent to those who responded to the

invitation. All such applicants that meet the specified criteria shall

be allowed to bid.

84. the Authority shall inform all applicants of the results of

prequalification.

85. as soon as prequalification is completed, the bidding documents

shall be made available to the qualified prospective bidders.

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FORMAL TENDER 86. The BOCRA approved Standardised Bidding Packages for supplies,

works and services, as amended from time to time, shall be used for

open domestic bidding.

Open Domestic Bidding 87. The open domestic bidding method is the preferred method of

procurement of supplies, works and services.

88. The currency of the bids and payment shall be Botswana Pula unless

specified otherwise in the bidding documents.

89. Foreign bidders may participate in open domestic bidding subject to

eligibility requirements.

90. All Invitations to bid shall be advertised in at least one media of wide

circulation in Botswana.

91. Allow for no less than four (4) weeks from first date of the

advertisement for submission of bids.

92. Where applicable, preferential treatment, which should be specifically

stated in the bidding documents, and shall be used in accordance with

the applicable government directives.

Open International Bidding

93. Open International Bidding shall be used where:

93.1. Foreign bidders’ participation may

enhance competition.

93.2. Anticipation by non-resident foreign bidders would increase

value for money; or,

93.3. The procurement requirement’s technical complexity requires

the participation of non-resident foreign bidders.

93.4. Tenders for open international bidding shall be open to eligible

bidders and shall be advertised in publications of wide

international circulation.

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93.5. The currency of the bids shall be the Botswana Pula or any

internationally tradable currency and fixed at a predetermined

date and time, normally 7 days prior to when the bid is due to be

opened and at a set time of day.

94. This method allows all domestic and foreign bidders to bid, subject

to specific requirements.

95. Upon approval, the tender shall be advertised publicly in a

newspaper of national and international circulation.

96. Allow for no less than six (6) weeks from first date of advertisement

for submission of bids.

Restricted / Selective Tender Procedure

97. Selective Tender Invitation procedure is implemented by sending

invitations only to potential bidders who have been identified by the

Procurement Unit by way of pre-qualification criteria or other

selection approved by the Management Tender Committee, Board

Tender Committee or the Board. Tender requests implemented

using this procedure need not be advertised.

98. Selective tender may be used, subject to provisions of these

regulations where the objective is to ensure that tender invitations

are only confined to capable and specialized firm or companies and

where such a method is in the interest of the Authority.

99. Selective tender invitation may generally be used for work of a

specialized nature or where it is a requirement by an external donor

(funding institution) that certain companies be used.

100. Pre-qualification in advance of tendering is normally advisable for

large or complex contracts to ensure that the invitations to tender

are sent only to capable contenders.

101. In the case of civil engineering, building or other engineering work

of a specialised or unusually complex nature, or for the procurement

of specialised equipment or services, provided that the relevant

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HOD satisfies the tender committee that it is in the Authority's

interest to apply Selective Tender Procedure;

102. Pre-qualification should be based entirely upon the ability of

interested firms to perform the particular work satisfactorily, taking

into account, inter alia:

102.1. experience and past performance on similar contracts;

102.2. capability and availability of resources i.e. personnel,

equipment and plant;

102.3. Financial status.

103. The HOD should inform the tender committee, in detail, of the

procedure and criteria to be followed in the calling for and evaluating

of Selective Tenders. All such procedures and criteria should be

approved by the tender committee in accordance with these

procedures, prior to the invitation of Selective Tenders.

104. The list of pre-qualified firms together with a statement of

qualifications and the reasons for exclusion of any application from

pre-qualification, should be furnished to the tender committee for

approval before the applicants are notified.

105. This method may also be used where there is not enough time for

an open tender.

106. Where selective tender invitation method is used the following shall

apply:

106.1. no selective tendering shall be allowed unless expressly

authorized by the Management Tender Committee, BTC or

the Board;

106.2. the list of prospective bidders is published in the Authority

website and noticeboard;

106.3. two or more bidders with same ownership or business

linkages shall not be invited in a single procurement;

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106.4. tenders received from bidders not included in the approved

list shall be disqualified.

106.5. Where relevant HOD deems it in the interest of the

Authority to apply a Selective Tender Procedure and shall

give reasons in writing to the tender committee for their

decision.

Restricted International Bidding

107. Restricted International Bidding (RIB) may be used only where:

107.1. Items to be procured are only available from a limited number of

suppliers.

107.2. There is insufficient time for open bidding due to an emergency

situation

107.3. The value does not exceed the threshold stated in the guidelines

107.4. Other circumstances where departure from opening bidding is

justified

107.5. Foreign bidders are included in the short list

107.6. Prior written authority must be sought from the Board, or its

Committees to follow the RIB procedure.

107.7. The invitation to bid is addressed directly to a limited number of

potential bidders, without publicly advertising the opportunity.

Restricted Domestic Bidding 108. Restricted Domestic Bidding (RDB) is used only where:

108.1. Items to be procured are only available from a limited number of

suppliers.

108.2. The value does not exceed the threshold stated in the guidelines

108.3. Other circumstances where departure from opening bidding is

justified

109. Prior written authority must be sought from the Board, or its

Committees to follow the RIB procedure.

110. Allow for at least two (2) weeks for submission of bids.

Exemption from tender procedures

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111. Any request for exemption from tender procedures should be made

in writing to the relevant authority, accompanied by full details to

justify the exemption. The relevant Authority may approve

purchases without reference to tender procedures.

112. Where the goods and/or works required are of a specialised or

proprietary nature and there is no compatible alternative, or there is

a clearly established policy of standardisation (i.e. standardisation

of equipment or spares may require purchases from the original

supplier in order to be compatible with the existing equipment);

113. Where the goods and/or works required are proprietary in character

and obtainable only from one source of supply, or where essential

after-sales service cannot be obtained without purchase from one

source;

114. where tenders have been invited and no offers have been received

or it is evident that tenders are collusive or unreasonable; and

115. where urgency or the exigencies of the service prelude tendering.

The exigency or the cause for the urgency must be established and

placed on record in the application for approval.

Direct Procurement

116. Direct procurement is a method that limits competition. Any

decision to limit competition may also have the effect of limiting the

Authority’s ability to minimize costs, negotiate favourable terms and

conditions and take alternate course of action during disputes. This

method should be used only when it has been determined that other

competitive procurement methods will not fulfil the requirements of

the Authority.

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117. Each direct procurement request must include a written justification

explaining why the direct procurement is necessary to satisfy the

needs of the user department.

118. The justification shall include the following information:

118.1. the unique performance factors required;

118.2. why these factors are required;

118.3. what other sources/brands have been considered, rejected

and why.

119. Direct appointment requests shall not be justified on the basis of:

119.1. a lack of advance planning;

119.2. concerns related to the amount of funds available (e.g.

funds will expire) to the Authority or activity for the

acquisition of goods or services; or

119.3. a previous non-competitive bid/contract in which the price

to the Authority was zero or substantially below fair

market price and the results of such contract caused the direct

procurement to be required on future contracts.

120. The drafting or application of specifications or bid requirements that

directly or indirectly limit the bidding to a single brand or single

source does not provide for full and open competition regardless of

the number of sources solicited and is prohibited. A “brand name

or equal” is a competitive process that allows bidders to propose

equivalent items.

121. A direct procurement is prohibited except in the following instances:

(a) the sole brand/product is unique and essential to the

Authority requirements, thereby precluding

consideration of a product manufactured by another

company, or;

(b) the sole brand/product is required to match other similar

product already in place and the use of an alternate

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product would cause the Authority to incur substantial

additional costs;

(c) the sole brand/product is required for the immediate

preservation of the public health, welfare, or safety, or

the protection of Authority property and programs;

(d) the determination as to whether a procurement has been

adequately justified in writing for a sole brand award shall

be made by the Management Tender Committee.

122. Except where a contract is necessary for the immediate

preservation of the public health, welfare, or safety, or the protection

of Authority property and programs, a sole source procurement is

permissible only when a determination has been made and

approved in writing, that only one source exists for the required

product or service.

123. A requirement for a proprietary (or sole brand) item does not

necessarily justify sole source procurement, as more than one

potential bidder or supplier may exist who can supply that item.

124. The direct appointment request must clearly demonstrate:

124.1. that there is only one source or only one supplier that can

provide the goods or services in accordance with the

requirements of the Authority;

124.2. the existence of limited rights in data patent rights,

copyrights or secret processes makes the supplies or

services available from only one source (however the

mere existence of such rights or circumstances does not in

and of itself justify a sole source procurement).

125. The determination as to whether procurement has been adequately

justified in writing for a sole source award shall be made by the

Management Tender Committee.

126. Sole source procurement should satisfy any of the following

circumstances:

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126.1. where the compatibility of equipment, accessories,

replacement parts, or service is the paramount

consideration;

126.2. where a sole supplier's item is needed for trial use or

testing;

126.3. procurement of items for resale;

126.4. procurement of public utility services.

Notwithstanding the above, BOCRA shall conduct negotiations, as appropriate, as to price, delivery and terms. Quotation Procurement Method: P50,001 to 100,000

127. Quotation is a simplified form of competitive purchasing.

128. Requests for quotations shall indicate the description and quantity

of the goods, as well as desired delivery time and place. Quotations

may be submitted by facsimile or in sealed envelopes.

129. The evaluation of quotations shall follow procurement principles laid

down in these Procedures. The terms of the accepted offer shall be

incorporated in a purchase order.

130. This method of procurement may be used:

130.1. where the liability to the Authority is within the stated

threshold;

130.2. for readily available off-the-shelf items;

130.3. for standard specification goods;

130.4. where there is insufficient time for a formal tender due to

emergency.

131. The minimum number of quotations requested shall be five (5) as

far as it is practicable and the minimum bidding period under this

procurement method shall be seven (7) days.

132. Two or more bidders with same ownership or business linkages

shall not be invited in a single procurement.

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133. In this method, all purchase enquiries for which the liability to the

Authority falls within the stated thresholds must be sent to the

Procurement Unit for sourcing;

134. Purchase enquiries shall be sent by the user department for

common items and items identified in the procurement plan for

common procurement;

135. The invitation to send quotations and the list of prospective

suppliers shall be determined by the Procurement Unit;

136. Identical information shall be passed to all prospective suppliers

indicating amongst others, specifications and description of

supplies, works or services required as well as the required

response date;

137. Bids may be required to be sealed. Prospective suppliers need not

be invited at the ‘opening’ of the quotations;

138. Evaluation of the quotations received shall be done by the Procuring

Entity and approved as per the approved delegation of authority.

139. The User Department will, within the quotations validity period

complete a Purchase Requisition.

140. On completion of the Purchase Requisition, the Procurement Unit

will issue a Purchase Order complete with terms and conditions.

Supplies Quotations

141. The request for quotation shall include specifications and

descriptions of the items required, as well as the required delivery

date and conditions of contract may be necessary.

Works and Service Quotations

142. A written quotation will be requested by the Authority from a

minimum of five (5) likely and competent contractors/consultants.

143. Documents issued may include a Request for Quotations, Bills of

Quantities, Drawings, Specifications and Conditions of Contract as

may be necessary.

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144. The Department concerned shall evaluate the quotations or

informal tender bids.

145. The HOD concerned with the relevant purchase, consulting

together with the other HODs team shall make a recommendation

to the DCE who shall then determine the award

146. Where five quotations have not been obtained and the DCE is

satisfied that it was not possible to obtain any more quotations, then

the DCE may resolve to take the decision to award the contract.

Micro Procurement 147. All acquisitions under this method shall be as per the stated thresholds.

148. Procurement under this method may be without competition.

149. Items procured under this method shall be of little value where the use

of competitive procurement methods does not offer any value or

benefit to BOCRA.

150. The procuring entity shall follow the required and necessary finance

and administrative procedures whilst using this method.

151. Nothing shall be procured under this method when the same item is

carried as a stock item where quantities are kept in-house and issued

out on a continuous basis.

152. Where this method is used, the selection of a supplier may be

conducted on a sole supplier basis.

153. This method of procurement shall be used:

153.1. for low value procurement;

153.2. where liability to the Authority is expected to be within

the stated threshold;

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153.3. In the micro procurement method, the selection of a

supplier shall be conducted on a sole supplier basis without

competition and without the requirement of the following-

(a) bidding documentation; (b) written bid; and ( c) signed contract document.

153.4. The procuring entity shall obtain any supporting

document such as the original copy of an invoice or receipt

denoting the supplies procured and the price paid and

annotated with the name of the official procuring the

supplies.

153.5. The procuring entity shall be responsible for ensuring

that value for money is obtained to the extent practical

under this procurement method.

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Emergency Procurement

154. An emergency condition is a situation which creates a threat to public

health, human lives or the environment such as may arise by reasons

of floods, epidemics, riots, equipment failures, or such other reasons

as may be determined by the affected department. The existence of

such an emergency condition creates an immediate and serious need

for supplies, services, or construction that cannot be met through

normal procurement methods.

155. Emergency procurement shall be limited to only those supplies,

services, or construction items necessary to meet the emergency.

156. The Restricted method or Direct Appointment used shall be selected

with a view to the end of assuring that the required supplies, services,

or construction items are procured in time to meet the emergency.

Given this constraint, such competition as is practicable shall be

obtained.

Bid Submission Methods

157. The procuring entity shall state the bid submission method to be

followed by bidders; and shall be any of the methods described below.

One-Envelope Bidding Procedure

158. In the One-Envelope bidding procedure, bidders submit bids in one

sealed envelope containing both the price proposal and the technical

proposal.

159. The envelopes are opened in public at the date and time stated in the

bidding document. The bids are evaluated, and following approval, the

contract is awarded to the bidder whose bid has been determined to

be the lowest evaluated substantially responsive bid.

Two-Envelope Bidding Procedure

160. In the Two-Envelope bidding procedure, bidders submit two sealed

envelopes simultaneously, one containing the technical proposal and

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the other the price proposal, enclosed together in an outer single

sealed envelope.

161. initially, only the technical proposals are opened at the date and time

advised in the bidding document. The price proposals remain sealed

and are held in custody. The technical proposals are then evaluated.

162. the objective of the exercise is to allow for evaluation of the technical

proposal without reference to price. Bids of bidders who do not conform

to the specified requirements may be rejected as deficient bids.

163. following approval of the technical evaluation and at a date and time

advised by Authority the price proposals are opened in public. The

price proposals are evaluated, and following approval of the price

evaluation, the contract is awarded to the bidder whose bid has been

determined to be the highest ranked and substantially responsive bid.

164. The price proposal for the bids which are rejected as deficient shall be

returned unopened to the respective bidders.

Tender Administration Procedures

165. The following procedures will apply to all tenders for values in excess

of P1,000,000. The limits stated in table above will apply to determine

which tender committee will adjudicate the tender;

166. The HOD requiring the supply or services and after having ensured

that there has been documented prior budget approval for the tender

shall notify the Secretary of the relevant tender committee of the

intention to call a tender. Preparation of all tender documents shall be

the responsibility of the procuring department HOD.

167. The Secretary will notify the next meeting of the relevant tender

committee of all tenders that have been issued in the period since the

previous meeting.

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Numbering and Description of Tenders

168. Tenders will be given a number, issued by the Procurement Officer

prior to the request for advertisement or invitation, and this number

must be stated on all the documents. The Procurement Officer will

maintain a register of all tender numbers issued, together with a brief

description of the goods or services required, issue and returnable

dates, type of tender, source of finance and any special conditions

attached thereto.

Instruction to Tenderers

169. The invitation/notice for tenders must state details of the required

supplies, services or works, the name and location of the officer from

whom the documents are available, the tender conditions and, in

particular, the following:

169.1. Closing date and time;

169.2. Period of validity of tender;

169.3. That no tender will be considered unless it is delivered by

the closing time;

169.4. the place specified in the tender documents;

169.5. Whether there will be a public opening and, if so, the

appointed time and place; and

169.6. That the Authority is not bound to accept the lowest nor any

tender.

Advertisements

170. Invitations for tenders shall be advertised in major newspapers with

wide circulation in Botswana and in publications and journals of other

countries where appropriate giving information on closing date and

time, period of validity of tender, and, where there will be a public

opening, the appointed time and place.

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Tender Notice

171. Advertisement of public tenders must provide adequate time for the

tenderers to formulate, price and return their bids to the Authority.

172. As a minimum, the tender invitation notices shall contain the following;

173. place and times where purchase of tenders can be made;

140.1 a description of the nature of the supplies, services or

works required;

140.2 the names and contact details of persons to be contacted

for clarification or for collection of tender documents;

140.3 a statement that the company is not obliged to accept

neither lowest nor highest tender, nor to award the tender;

140.4 where appropriate, a brief description of all material

conditions or uncertainties that the bidders may need to be

aware of;

140.5 a statement regarding submission of response and

labelling of envelopes;

140.6 closing date and time for submission of tender proposals;

140.7 time and place of tender opening;

Period of Tender

174. The invitation to tender should clearly state the closing time, date and

place for tender delivery.

175. The bidding period specified in the tender documents shall be a

minimum of:

142.1 One (1) week for quotations.

142.2 Two (2) weeks for selective bidding.

142.3 Four (4) weeks for open domestic bidding.

142.4 Six (6) weeks for open international bidding.

142.5 Two (2) weeks for expression of interest, request for

information and pre-qualification tenders.

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Extension of Time for Tendering

176. Any formal request for an extension to the tender period must be

received by the Authority in fourteen (14) days before the tender

closing date, and, if acceptable to the relevant Tender Committee,

extension shall be communicated to all tenderers.

Receipt of Tenders

177. The following provisions shall apply for receipt of tenders;

178. All bids received shall be registered, numbered, dated and kept secure

in the tender box until they are opened on the opening date.

179. The register shall indicate the name of the depositor, receiving officer,

date and time.

180. Each box shall have two locks requiring non-identical keys, one kept

by the Procurement Manager and the other by Security Division. The

tender box will be opened and cleared of tenders at the time stated in

the tender documents.

181. tender box shall be sealed at the closing time by the Procurement Unit.

182. The envelopes containing the tenders shall be opened by the HOD of

the requesting department in the presence of the tenderers and shall

announce the names of the tenderers and if relevant the amount of the

tender and the Procurement Officer will number the tenders and record

these details in a schedule.

183. The bid documents will be signed and dated by the HOD, Internal Audit

and the DCS, and the originals will be retained by the Procurement

Officer.

184. The copy of the bids will be sent for evaluation to the relevant

evaluation committee.

185. No tender bids shall be accepted after the closing date and time for the

tender.

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Opening of Tender Proposals Received

186. Tenders shall be opened in accordance with the following procedures;

186.1. the time for the bid opening shall be the same as for the

deadline for receipt of bids or promptly thereafter, and

shall be announced, together with the place for bid

opening, in the invitation to bid.

186.2. bids shall be opened at the stipulated time and place.

186.3. bids shall be opened in public; bidders or their

representatives shall be allowed to be present (in person

or online, when electronic bidding is used).

186.4. the name of the bidder and total amount of each bid, and

of any alternative bids if they have been requested or

permitted, shall be read aloud (and posted online

when electronic bidding is used).

186.5. bids received after the time stipulated, as well as those not

opened and read out at bid opening, shall not be

considered.

186.6. the Procurement Unit shall convene a meeting of the

tender opening; where officials of the Procurement Unit

and the nominated members of the evaluation committee

will open the bids at the same date, time, and place as

specified in the tender notice or already communicated to

the bidders in writing.

186.7. at the start of the meeting a register of names of bidders

present shall becompleted.

186.8. at the tender opening meeting the tender deposit box shall

be unlocked and opened.

186.9. under no circumstances shall the bidders be required or

permitted to alter their tenders after tender closure.

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186.10. any bidder who intends to withdraw shall be

requested to state their reasons for their withdrawal, in

writing.

186.11. all tenders received shall be kept under lock by the

Procurement Unit and issued to the evaluation team

as and when they are being evaluated.

186.12. when is completed, the tender documents should be

returned to the Procurement Unit for record keeping.

Confirmation of Availability of Funds

187. The Chief Executive or his nominated officer shall confirm the

availability of funds as guided by the budget before any

procurement may be approved

Management of Procurement Records

188. Records shall be maintained on all procurement proceedings for the

period specified in the Authority’s records management policy.

Clarification or alteration of tenders

189. Except as otherwise provided in this procedure, no tenderer shall

be permitted to alter his/her bid after his/her tender has been

delivered to the Authority. The Authority may, after the tenders are

opened, ask any tenderer for a clarification of his/her tender but may

not ask any tenderer to change the substance or price of his/her

tender.

190. Registered Buyers (“Buyers”) of a tender document may submit

questions in writing for clarification. Such questions must be

addressed to the Procurement Officer in writing and must be

received 14 days before the tender closing. Questions received

after the specified date shall not be responded to.

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191. All questions submitted by Buyers will be consolidated into one

document (“the Clarification Document”), which will include the

questions and the corresponding responses. The sources of the

questions will not be identified. Clarifications of any matters, prior to

the closing date of the tender, relating to the tenders should be

communicated in writing to all prospective biddersat least five (5)

days before the tender closing date.

Evaluation Methods

192. The following evaluation methods shall be used by the Evaluation

Committee in evaluating bids.

193. The User Department shall identify the most appropriate evaluation

method for their requirement.

194. The User Department shall seek the approval of the

Board/Management Tender Committee if they wish to use an

evaluation method not listed hereunder.

Least Cost Selection (LCS) for Supplies and Works

195. The least cost selection – supplies and works method shall be used

to identify the lowest priced bid, which meets all the commercial and

technical requirements of the procuring entity.

196. Unless otherwise expressly stated in the bidding document, a bid

for the least cost supplies and works method shall require the use

of a single envelope submission method.

197. Recommendation shall be made for the award of the contract to the

bid which is:

197.1. Qualified

197.2. Technically compliant

197.3. Lowest priced; and

197.4. Responsive

198. The procedure for the least cost selection – supplies and works

evaluation shall be conducted in three stages as follows:

198.1. Stage 1: Preliminary Examination

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198.2. Stage 2: Technical Evaluation shall only consider whether

the bids are responsive and qualified.

198.3. Stage 3: Cost evaluation of only technically compliant bids.

Least Cost Selection for Services

199. The Least Cost Selection – services evaluation method shall be

used to identify the lowest priced bid, which meets all the

commercial and technical service requirements of the procuring

entity.

200. The least cost selection – services method shall require the use of

separate sealed envelopes for submission of technical and financial

bids.

201. The procedure for the least cost selection – services method

evaluation of a technical bid shallbe conducted in three stages as

follows:

201.1. Stage 1: Preliminary Examination

201.2. Stage 2: Technical Bid evaluated against technical

evaluation criterea

201.3. Stage 3: Cost evaluation

Quality and Cost Based Selection (QCBS)

202. This method of evaluation can be used for services and works

tenders.

203. This method is based on the quality of the proposals and the costs

of the services to be provided. It is the method most frequently used

to select service providers especially consultants.

204. The bid submission method under this method may be one

envelope submission or two envelope submission.

205. Under QCBS a minimum qualifying mark for quality is established

in the tender.

206. Since under QCBS the cost of the proposed service is a factor of

selection, this method is appropriate when;

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206.1. the scope of the work of the assignment can be precisely

defined and theTerms of Reference are well specified and

clear,

206.2. the Authority and the bidders can estimate with reasonable

precision the staff time as well as the other inputs and

costs required of the bidders.

206.3. QCBS is appropriate for assignments where the nature of

the investment is clear and well defined, no new solutions are

being considered, and the evaluation of the impacts from the

project are not uncertain or too difficult to estimate.

206.4. under QCBS, the technical and financial proposal shall

have a weight factor to indicate their relative importance.

206.5. the bid with the best technical solution gets the highest

technical points and the bid with the lowest price offer is

given the highest price score.

206.6. The bid with the highest combined weighted score is

considered the best evaluated bid and recommended for

contract award.

Qualification Based Selection

207. QBS is based on an evaluation of the quality of the proposal and

the subsequent negotiation of the financial proposal and the

contract with the bidder who submitted the highest ranked technical

proposal.

208. The bid submission method under this method may be one stage

two envelope submission, or any other submission method

approved the Management Tender Committee

209. Under QBS a minimum qualifying mark for quality is established in

the tender.

210. QBS is appropriate when;

210.1. the downstream impact of the project is so large that the

quality of the service becomes of overriding importance for the

outcome of the project.

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210.2. the scope of the work and the terms of reference are

difficult to define because of the novelty or complexity of the

assignment, or the need to select among innovative solutions,

or due to particular physical, social or political considerations.

210.3. the assignment can be carried out in substantially different

ways such that cost proposals may not easily be comparable.

210.4. the introduction of cost as a factor of selection renders

competition unfair.

211. QBS should be adopted for assignment such as:

211.1. complex country sector and multidisciplinary

investments studies,

211.2. strategic studies in new fields of policy and reforms.

211.3. master plans, complex feasibility studies, design of

complex projects,

211.4. (d) assignments in which traditional consultants,

non-government organizations compete.

211.5. (e) non comparable outputs (e.g. management

advice, political studies)

212. Under QBS the Procurement Unit request submission of the

technical proposals and financial proposal in two separate

envelopes. The bidder who achieves the highest technical score

above the minimum technical qualifying mark is deemed as the best

evaluated bidder and recommended for contract award.

213. In the case above, the financial proposal should be kept safely until

the technical evaluation is complete and approved by Management

Tender Committee.

214. Only the financial proposal of the winning consultant is opened; the

others are returned unopened after negotiations with the winning

bidder are successfully concluded.

215. Since the TOR of assignments under QBS are generally less

defined and relatively more complex than QCBS, contract

negotiations with the winning bidder may be lengthy and

complicated. The Authority may decide to hire individual advisors to

assist in the most critical aspects of the technical evaluation.

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Evaluation by fixed budget selection

216. Under the fixed budget selection evaluation method, the procuring

entity shall indicate its available budget, and evaluation shall be

considered as follows-

217. a bidder shall be required to provide, within the stated budget, the

best possible technical and financial bids, in separate envelopes;

and

218. the bidder with the evaluated technical bid of the highest quality,

which is within the stated budget, shall be recommended to be

awarded the contract.

219. The schedule of requirements (otherwise referred to, in the bid

documents, as the terms of reference), prepared by the procuring

entity, shall contain all the necessary detail to portray the sufficiency

of the budget for the performance, by a bidder, of the expected tasks

as shall be contained in the contract.

220. The procedure for the fixed budget selection evaluation of a

technical and financial bid shall be conducted in three stages, as set

out in Part III of the Fourth Schedule.

221. In this regulation ''fixed budget selection'' means an evaluation

method that recommends the bidder with the best technical bid

which is within the budget.

Evaluation by qualification selection

222. The qualification selection evaluation method shall be used for small

assignments, of costs as may be determined by the procuring and

disposing entity, for which the need for Copyright Government of

Botswana preparing and evaluating competitive bids is not justified.

223. The procuring entity, for the purpose of soliciting bidders under the

qualification selection method shall-

223.1. follow a two stage process;

223.2. prepare the terms of reference;

223.3. request bidders to supply expressions of interest and

information concerning their

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223.4. experience and competence relevant to the

assignment; and

223.5. establish a short-list.

224. The procedure to be followed for the qualification selection

evaluation method shall be conducted in two stages, as set out

below:

Stage 1: evaluate the Expression of Interest Stage 2: Negotiate Cost with lowest bidder

225. In this regulation ''qualification selection'' means a method of

procurement used in the selection of a bidder based exclusively on

the quality of the proposal without reference to price.

Report on Evaluation

226. A detailed report on the evaluation and comparison of tenders

setting out the specific reasons on which the decision for the award

of the contract, or rejection of all tenders is based, should be

prepared by the Chairman of the evaluation Committee. If a

consultant has been employed to evaluate a tender, an individual

assessment and recommendation from the relevant Chairman must

accompany the consultant's report.

Extension of validity of tenders

227. In the event of the assessment of tenders not being within the period

of the validity of the tenders, an extension of time may be requested

from the tenderers. In these circumstances, the Authority should re-

negotiate the validity period. Those who are willing to extend the

period of validity of their tenders should neither be required nor

permitted to modify their tenders.

Types of Contracts

228. The bidding documents shall clearly state the type of contract to be

entered into and contain the proposed contract provisions

appropriate thereof.

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AWARD OF CONTRACT

Adjudication

229. All recommendations, accompanied by relevant tender documents,

must be received by the members of the relevant committee at least

three working days before the meeting. The Chairman of the Tender

Committee may request the presence of any other officer whose

technical advice might be required. Officers who are not members

of the Committee may be asked, to withdraw before the final

recommendations are discussed for the award of the contract.

Tenders shall then be considered in the light of the information

received.

230. In making an award, the relevant Tender Committee shall act in the

Authority's best interest, being guided amongst other things by

considerations of economy, efficiency and standardisation.

231. The relevant Tender Committee may award or reject any tender or

part thereof; it need not accept the lowest tender if it is considered

not be in the Authority's interest to do so; details of the reasons for

not accepting the lowest tender should be recorded in the minutes.

232. The award of a contract should be made within the period specified

for the validity of tender to the tenderer whose tender has been

determined to be most advantageous to the Authority.

Notice of Award

233. Subsequent to the meeting where the award decision was taken the

Procurement Unit shall notify the User Department and post the

decision of the Management Tender Committee on the Authority

website.

234. In consultation with the User Department, the Procurement Unit

shall make the offer to the bidder awarded the contract within the

43

bid validity period, including terms and conditions where

applicable and the proposed supply contract, service agreement or

sale agreement.

235. All other bidders other than the winner will be notified of evaluation

outcome once a letter of acceptance or contract has been signed

by the winner.

Cooling off Period

236. The Authority shall allow a period of fourteen (14) working days after

announcing the award to permit the submission of any complaints

from any concerned registered bidder.

Rejection of all tenders

237. Tenders may be rejected for various reasons including where they

are not substantially responsive or there is lack of competition. If all

tenders are rejected, the Authority should review the reasons for the

rejection and consider revisions of the specifications or modification

of the project or both before inviting new tenders.

Contract Management

238. The contractor whose tender has been accepted shall be required

to execute a formal contract with the Authority in terms of the form

shown in the tender documents together with such other documents

to which reference may be properly made, in order to establish the

rights and obligations of the parties. The Authority retains the right

to include additional clauses or modify the contract that was issued

with the ITT as it deems fit.

239. In addition, in the case of contracts for building, civil engineering or

other engineering works, the successful tenderer shall be required

to provide a performance bond based on a percentage of the tender

amount as follows:

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239.1. Tenders within the limit of Management Tender

Committeeare exempted.

239.2. For any tenders above authority of MTC the performance

bond will apply as follows:

239.3. Citizen owned contractors, consortiums and Joint Ventures

with a majority citizen ownership should raise 5% of the

contract/tender sum as performance bonds.

239.4. Non-citizen Contractors, consortiums, Joint Ventures and

minority citizen owned contractors should provide 10% of

the contract/tender sum as performance bonds.

240. In the case of consultancy projects of a substantive value, the

contractor shall be required to obtain professional indemnity

insurance.

241. The performance bond shall be entered into with an approved local

financial institution or insurance company registered with Non-

Banking Financial Institution Regulatory Authority. Such bond or

guarantee should be lodged with the Legal Counsel. If the

contractor fails to produce the bond and sign the formal contract

within 14 working days of notification or any other extended period

as may be granted by the Authority, then acceptance of his/her

tender may be cancelled at the discretion of the relevant Tender

Committee.

242. Originals of all approved contracts, together with the reports, should

be sent immediately after signature to the Legal Counsel and copies

filed with registry.

243. Following a decision by the relevant Tender Committee to accept a

tender, the Procurement Officer shall, except where the award is

subject to any other approval, (e.g. the Board), notify:

45

243.1. the successful tenderer, and shall also require him/her to

obtain such bonds, insurances etc., as may be required,

and

243.2. all unsuccessful tenderers once the successful bidder has

accepted,.

244. The award of the contract shall be effected by the issue of a Purchase

Order and by a formal letter of acceptance signed by the authorised

officers, incorporating the Contract/Tender Reference and the value of

the award.

NEGOTIATION

Negotiations for open, restricted and quotation biddings

245. No negotiations shall be held by the Authority with any bidder who

has tendered a bid to be considered under-

245.1. open bidding;

245.2. restricted bidding; or

245.3. quotations procurement,

until after a decision on the preferred bidder has been made and

approval of the negotiation document has been given by the

relevant committee.

246. The Evaluation Committee shall give an approval of the negotiation

document by-

246.1. producing an evaluation report containing a clear

recommendation for an award of contract, and

246.2. providing details of the nature of the proposed

negotiations, listing the points that are tobe clarified or

discussed and the objectives to be attained in the negotiation

document; and

246.3. having the accounting officer or his or her representative

approve the negotiation document prior to any negotiations

taking place.

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247. The Authority shall be represented at the negotiations, held with the

preferred bidder, by at least three staff members who may negotiate

the terms of the contract, but such staff members shall not commit

the procuring entity to any contractual terms prior to confirming any

such terms with the accounting officer or his or her representative.

248. The staff representing the Authority, at the negotiations, shall submit

minutes of the meeting and report, in writing, to the relevant

Committee, on the success of the negotiations in attaining the

objectives set out on the negotiation document.

249. The relevant tender Committee may-

249.1. approve the outcome of the negotiations in their entirety;

249.2. request further negotiations on specific points; or

249.3. reject and cancel the negotiations in their entirety.

250. The results of any approved negotiations shall be incorporated into

the contract document.

251. No condition of award shall require the bidder, under any

circumstances, to-

251.1. undertake any further responsibility not specified in the

bidding documents; or

251.2. amend the bid price or otherwise modify the bid.

252. The following requests, communications or confirmation shall be in

writing-

253. request for amendments to the terms of a bid affecting the

responsibilities and tasks defined in the bidding documents; and

254. communication or confirmation of all subsequent and

supplementary discussions or meetings.

Negotiations under direct procurement method

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255. The Authority shall not hold negotiations to consider a bid under the

direct procurement method unless a written bid has been received

and evaluated.

256. Approval of the negotiation document shall be given in accordance

with the following procedure-

256.1. the procuring entity shall issue a written bidding document

based on the standard documentation, modified, as

necessary, to suit the requirements, the value and the

circumstances of the particular procurement;

256.2. a bidder shall be required to submit a written bid in

accordance with the terms of the bidding document;

256.3. the Evaluation Committee shall evaluate the bid received

to determine its compliance with the bidding document and

undertake an analysis of value for money of such bid by:

256.3.1. comparing the bid price with prices previously

obtained through competitive procedures in respect

of similar procurement, where applicable, or a

breakdown analysis of current component costs for

base items, freight and insurance elements and

taking into account the circumstances and value of

the procurement;

256.3.2. the procuring entity shall provide details of the nature

of the proposed negotiations listing the points that

are to be clarified or discussed and the objectives to

be attained in a negotiation document; and

256.3.3. the Ministerial Committee shall obtain the Board's

approval of the negotiation document prior to any

negotiations taking place.

257. The Authority shall be represented, at the negotiations held with the

bidder, by at least three staff members who may negotiate the terms

of the contract, but such staff members shall not commit the

procuring entity to any contractual terms prior to confirming any

such terms with the Evaluation Committee.

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258. The staff representing the Authority, at the negotiations, shall submit

minutes of the meeting for approval and report, in writing, to the

relevant Committee, on the success of the negotiations in attaining

the objectives set out on the negotiation document.

259. The Board or any of its committees may -

259.1. approve the outcome of the negotiations in their entirety;

259.2. request further negotiations on specific points; or

259.3. reject and cancel the negotiations in their entirety, and shall

give reasons for the action taken.

260. The results of any approved negotiations shall be incorporated into

the contract document.

Reservation and Preference

261. BOCRA shall comply with all government directives on procurement

and disposal reservations and price preference.

De-briefing

262. Each tender shall specify that any bidder who wishes to ascertain

the grounds on which its bid was not selected, should request an

explanation from the Authority. The Authority shall promptly provide

an explanation of why such bid was not selected, either in writing

and/or in a debriefing meeting, at the option of the Authority. The

requesting bidder shall bear all the costs of attending such a

debriefing.

Complaints Process

263. Complaints by aggrieved bidders shall be addressed to the

Authority in writing.

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Contract Termination

264. The Procurement Unit or whoever believes that a contract should

be terminated, shall submit to the relevant Tender Committee a

recommendation for termination of contract.

264.1. the recommendation shall state:

264.2. the name of the provider;

264.3. the nature of the contract;

264.4. why termination is recommended;

264.5. remedial actions taken before, if any;

264.6. the contractual grounds for termination;

264.7. the costs, if any, which will be payable by the Authority.

265. Where a contract is terminated, the Authority shall inform the

contractor involved.

Prohibition of BOCRA Officers

266. All BOCRA officers, employed on a full time or temporary basis, are

prohibited from tendering for any construction, supply or service

contract with BOCRA.

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Procedures to be Confidential

268. It is essential that information relating to the examination,

clarification and evaluation of tenders and recommendations

concerning awards are not communicated at any time to persons

other than those officially concerned with these procedure

Variation of Contracts

269. Contracts may not be extended, assigned, sub-let or have their

conditions materially altered without the approval of the relevant

tender committee.

Retroactive Approvals

270. The Board may resolve to issue a retro-active approval of any bid

issued or invitation to tender where it is satisfied that a procuring or

disposing entity was required to proceed with the bid or invitation

due to an urgent requirement or emergency arising from special

circumstances.

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Procurement of goods and services (fin 24)

271. This section covers the ordering of goods and services both of a

capital and revenue nature. A Purchase Requisition must be

approved by the HoD before the Purchase Order can be raised.

Purchase Orders must be used for all goods and services, with the

exception of regular services such as telephone and electricity

charges. Purchase Orders are not required where formal contracts

are being executed and for petty cash purchases.

272. This section must be read in conjunction with the financial regulation

relating to Tender Regulations.

Purpose

273. The purpose of this regulation is to outline the procedures relating

to the procurement of goods and services and the documentation

used in the process.

Purchase Requisitions

274. The Purchase Requisition Form must be originated by the

Department requiring the items. The details of the expenditure

approved for which the items are purchased, and the budgetary

checks for availability of funds shall be performed by the finance

department. The requisition shall then be approved by the Head of

the Department requesting the items.

Purchase Orders

275. The Procurement Officer shall then raise a Purchase Order, after

approval of the purchase and will enter the relevant Purchase Order

number on the Requisition Form. A copy of the Purchase

Requisition shall be retained by the Procurement Officer, and one

copy shall be attached to the resulting Purchase Order that is sent

to the Finance Department.

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276. Purchase Orders must contain the prices and/or rates that are

agreed upon with the supplier, as well as the quantity and detailed

description of the goods or services ordered.

277. The second and third copy of the Purchase Order must clearly

indicate the account(s) to be charged and, where the expense is

chargeable to a programme, project, any other organisation or an

individual, the details of the project/programme references etc.

278. Purchase Orders for capital expenditure shall not be issued until the

DCS has committed funds for such expenditure, even though such

items are included in the budget approved by the Board.

279. The purchase orders in respect of any items which fall under tender

procedures shall only be raised once the relevant tender procedures

are duly completed and shall be in full agreement with decisions

made by the relevant tender committee.

280. The person signing the Purchase Requisition should not be a

signatory of the resultant Purchase Order.

281. Purchase Orders may not be split to circumvent the above authority

limits.

282. No officer may issue and sign a Purchase Order in a situation where

he/she is the direct beneficiary. In such circumstances the order

must always be signed by another officer authorised to do so.

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Other Controls

283. Purchases of goods and services shall be at the best price and right

quantities and all orders must be placed by a designated officer in

writing.

284. The designated officer shall maintain an up-to-date record of the

suppliers of goods and services and their current prices, and quality

of goods or services provided.

285. Unissued Purchase Order Books shall be kept in the safe custody

of the Chief Administrative Officer and may only be issued to officers

who have the authority to sign. Any officer who requisitions a new

order book takes responsibility for that book from the time that it was

signed for. All Purchase Orders are numbered sequentially. The

orders are prepared in triplicate. The top copy goes to the supplier,

the second copy is attached to the supplier invoice, and the third

remains in the order book.

286. Once the orders are dispatched to the supplier, the second copy

should be filed in an "order outstanding" file, in numeral sequence,

by the designated officer, until the goods are received. Once goods

are received, the second copy of the Purchase Order together with

the supplier invoice and the Goods Received Note shall be handed

over to the Accounts for checking and updating the creditor’s ledger.

Controls over Goods Received

287. Goods Received Notes (GRN) must be completed for all goods

received by the Administration Officer certifying that the goods

received are in agreement with the orders placed.

288. In the case of services, the staff member who initialled the order for

the service shall sign the invoice to confirm that the service ordered

has been received to his/her satisfaction.

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Disposal Regulations

289. BOCRA assets will be disposed of in a responsible and

accountable manner as a result of being:

289.1. surplus to requirements;

289.2. technically or commercially obsolete;

289.3. beyond their economic life span;

289.4. beyond economic repair.

Policy Objective

290. To provide a systematic and accountable method of monitoring and

controlling the disposal of the Authority assets.

291. To protect the Authority from any conflict of interest, either potential

or real, which may arise between the Authority and any persons or

groups purchasing such assets.

292. To realise residual value from the disposal of assets, where

applicable.

293. To ensure disposal of assets achieve the best value for money and

is conducted in an efficient, effective, transparent and adequately

documented and approved manner.

294. To ensure assets sold or otherwise disposed of are correctly written

off the assets records and that appropriate assets stewardship and

balance sheet valuation can be verified.

Initiation of Disposal

295. Any disposal shall be commenced by the Procurement Unit.

296. All assets must be adequately decommissioned prior to sale or

other disposal. Such decommissioning may involve deleting files

and programs from computer hard drives with particular attention to

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potentially sensitive files and other information or programs licensed

to the Authority and/or ensuring that assets are completely safe and

uncontaminated, with all potentially hazardous materials or

substances removed or made safe in accordance with current

Occupational Health and Safety guidelines before exposure to the

public.

Authorization

297. The relevant committee must approve items to be disposed in line

with the authorisation limits for procurement for the Authority.

298. The disposal method shall be approved by the Chief Executive or

relevant approving authority prior to the disposal of an asset or

aggregate of assets.

Disposal Methods

299. In this Policy Statement “Asset” does not include debtors and

collections.

300. Prior approval of the Management Tender Committee is required for

use of any disposal method not stated in these procedures.

301. The Authority shall select one of the following disposal methods-

301.1. Sale to BOCRA staff

301.2. public auction;

301.3. sealed bidding;

301.4. direct negotiations;

301.5. trade-in;

301.6. transfer to another procuring and disposing entity;

301.7. conversion or classification of assets into another form; or

301.8. destruction of assets.

302. The Authority shall, when selecting a disposal method for an asset,

take into account the following factors-

302.1. the potential market value of the asset;

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302.2. the volume of the asset;

302.3. the number and location of potential bidders;

302.4. the location of the asset;

302.5. any restrictions on export or end-users;

302.6. national security or public interest issues;

302.7. legal or human rights issues;

302.8. environmental considerations;

302.9. the trade-in value of the asset; and

302.10. the possibility of transferring the asset to another

procuring and disposing entity.

Conditions for use of public auction

303. Disposal by public auction shall be used where there is a high

volume of low value assets for which there is a large number of

potential bidders and there are no conditions, end-user or export

restrictions attached to the sale.

304. Disposal by public auction may also be used where-

304.1. there is a large number of potential bidders for

unusual or high value assets; or

304.2. there is a variety of assets to be disposed of in one

location and an onsite auction could be arranged to

avoid transport costs.

Conditions for use of public bidding

305. Disposal by public bidding may be used-

305.1. for high-value or unique assets;

305.2. for assets located in remote areas;

305.3. for assets that have a geographically dispersed potential

market;

305.4. for assets with end-user or export restrictions attached to

their sale; or

305.5. where conditions need to be attached to the sale, or post

bid negotiations may be required.

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Conditions for use of direct negotiations

306. Disposal by direct negotiations may be used where-

306.1. the market is limited and a single buyer who is willing to

pay the reserve price has been identified;

306.2. national security, public interest, legal or human rights

issues or environmental considerations are served by selling

to a particular company, group or individual;

306.3. a potential buyer is the tenant, occupier or the asset at the

time the decision to dispose of the asset is made and it would

be reasonable to give that person or body first option to buy

the asset at the market rate;

306.4. assets are located on a potential buyer's premises on a hire

or free use basis and it would be reasonable to give that

person or body first option to buy the asset at the market rate.

307. A detailed justification for the use of direct negotiation shall be

approved by the Board of the competent committee prior to the

commencement of disposal proceedings.

Conditions for use of trade-ins

308. Disposal by trade-in may be used where the trade-in of surplus

assets to offset the purchase price of new items provides a

convenient, economic and efficient way to upgrade equipment.

309. Notwithstanding the provisions of sub-regulation (1), trade-in shall

not be used where it would prevent the operation of open and fair

competition or reduce value for money in the procurement and

disposal process.

310. Conditions for use of disposal by transfer to another procuring and

disposing entity

311. Disposal by transfer to another procuring and disposing entity may

be used where another procuring and disposing entity is able to

make further use of the asset.

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312. The cost of disposal by transfer from one procuring and disposing

entity to another shall be agreed between the two procuring and

disposing entities concerned.

313. The transfer referred to in sub-regulation (1) may be at no cost if it

is uneconomical to charge for the asset.

314. Conditions for use of disposal by conversion or classification of

assets into another form

315. Disposal by conversion or classification of assets into another form

may be used-

315.1. on grounds of national security or public interest, legal or

human rights issues or

315.2. environmental considerations; or

315.3. where the asset has no residual value in its current form,

but some sale value can be

315.4. obtained through conversion or classification into another

form.

Conditions for use of disposal by destruction of assets

316. Disposal by destruction of assets is the least favoured method of

disposal, but may be used-

316.1. on the grounds of national security or public interest, legal

or human rights issues or

316.2. environmental considerations; or

316.3. where the asset has no residual value and it cannot be

transferred to another procuring and disposing entity or

converted or classified into another form with any value.

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Sale to Authority staff 317. Any reserve price on the assets shall be stated clearly.

318. The Procurement Manager may in consultation with the Chief

Executive decide that certain category of such fixed assets such as

furniture, office equipment and vehicles will initially be open to staff

through direct offer, auction or sealed tender subject to a

reasonable reserve price.

319. Such items shall clearly be for personal and not business or

commercial use.

Public auction

320. Any submission to the Board or any of its committees in respect of

disposal by public auction shall be made in such format as the

Board may prescribe.

321. When undertaking disposal by public auction, the procuring and

disposing entity shall appoint a professional auctioneer to conduct

the process on its behalf.

322. Any valuation of assets to be disposed of by public auction may be

done by the auctioneer, who will be responsible for disposing of the

assets.

323. Bids relating to assets for disposal by public auction shall be

solicited through a notification of public auction using such format

as the Board may prescribe.

324. No formal bidding documents shall be issued in relation to assets

for disposal by public auction, and any additional information, such

as an auctioneer's catalogue shall be for information purposes only

and shall not be considered a bidding document.

325. Bids in relation to assets for disposal by public auction shall be oral

and the procedure for bidding shall be specified by the auctioneer

in accordance with normal auction practices. There shall be no

minimum bidding period.

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326. Bids, at a public auction, shall be evaluated on the basis of price

only.

327. Negotiations shall not be permitted under the disposal by public

auction method.

328. The contract shall be awarded to the bidder offering the highest

price, as determined by the auctioneer, and the successful bid shall

be declared at the auction.

329. A written contract document shall not be required under disposal by

public auction.

330. The successful bidder shall be required to pay at least 50 per cent

of the contract price, immediately after the award of contract.

331. The successful bidder shall be required to pay the balance of the

contract price within five days of the award of contract.

332. Where a bidder fails to make payment the contract may be

terminated.

333. The disposal process followed for public auction, shall be based on

standard documentation approved by the Board.

Appointment of an auctioneer

334. When undertaking disposal by public auction, the procuring and

disposing entity shall appoint a professional auctioneer to conduct

the process on its behalf, and such auctioneer shall be licensed.

335. An auctioneer shall be appointed using the appropriate

procurement method for services, which method shall take into

account such criteria as-

335.1. the auctioneer's commission rates;

335.2. the locations of the auctioneers and transport costs for the

assets to be disposed of;

335.3. the auctioneer's facilities;

335.4. the auctioneer's ability to achieve optimum returns;

335.5. the past performance and integrity of the auctioneer;

335.6. the viability of the auctioneer's business; and

335.7. the provision of any performance bond in the format and

form required by the procuring and disposing entity

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336. The appointment of an auctioneer shall be confirmed through a

written contract, which shall include the following-

336.1. the commission rate and any other fees payable to the

auctioneer and the payment terms;

336.2. the method and timing for payment of proceeds to the

procuring and disposing entity;

336.3. responsibility for and payment of any transport costs,

including costs for any assets

336.4. returned unsold;

336.5. the date on which, or the period within which, the auction

will be held; and

336.6. the information and any conditions of sale to be included in

the auction notice,

336.7. auctioneer's catalogue or any similar document.

337. The procuring and disposing entity shall ensure that a receipt is

received for all assets delivered to, or collected by, the auctioneer.

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Sealed Public bidding

339. Any submission to the Board or any of its committees in respect of

disposal by public bidding shall be made using such format as the

Board may stipulate.

340. Bids shall be solicited by the publication of a public invitation notice

using such format as the Board may prescribe, indicating that

interested bidders may obtain the bidding document from the

procuring and disposing entity.

341. Bidding documents may be sold under public bidding: Provided that

the cost of the documents shall be calculated to cover only the cost

of copying and issuing the documents and shall not include any

element of profit for the procuring and disposing entity.

342. The minimum bidding period under public bidding shall be 10 days.

343. The procuring and disposing entity shall require the bidder to submit

sealed, written bids.

344. The bid opening process shall be a public bid opening in

accordance with the provisions of these Regulations.

345. Evaluation based on price only shall be the preferred evaluation

methodology under public bidding.

346. Evaluation based on price and other factors may be used, in public

bidding, in accordance with these Regulations.

347. Post-bid negotiations may be undertaken under public bidding in

accordance with the conditions and procedures in these

Regulations.

348. Contract award shall be by a decision of the Board or its competent

committee in response to a recommendation from the procuring and

disposal entity.

349. Contract placement shall be by way of issue of a contract document

to the successful bidder

350. The standard documentation used and disposal process followed

for public bidding shall be in accordance with such format and

process as the Board may prescribe.

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Direct negotiations

351. The disposal process under direct negotiations shall follow the

disposal process set out in sub-regulations (2) to (13) of this

regulation.

352. Submissions to the Board or any of its committees, in respect of

disposal by direct negotiations, shall be made in such format as the

Board may prescribe.

353. A valuation shall always be obtained where an asset is to be

disposed of through direct negotiation.

354. A bid, under direct negotiations, shall be solicited through the issue

of a written

355. bidding document which shall be based on the appropriate standard

document.

356. There shall be no minimum bidding period for disposal by direct

negotiation.

357. The procuring and disposing entity shall require the bidder, under

direct negotiations, to submit a sealed, written bid.

358. The bid opening process under direct negotiation shall be a non-

public bid opening in accordance with these Regulations.

359. Evaluation based on price only shall be the preferred evaluation

methodology under direct negotiation.

360. Evaluation based on price and other factors may be used, under

direct negotiation, in accordance with these Regulations.

361. Post-bid negotiations may be undertaken under direct negotiations

in accordance with these Regulations.

362. Contract award shall be by a decision of the Board or its competent

committee in response to a recommendation from the procuring and

disposal entity.

363. Contract placement shall be by way of issue of a contract document.

364. The standard documentation used and the disposal process

followed for direct negotiations shall be in accordance with such

format as theBoard may prescribe.

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Trade-in

365. The Authority shall obtain a valuation of the asset where the asset

is to be disposed of through trade-in.

366. Under disposal by trade-in, the disposal process shall be an integral

part of the relevant procurement process.

367. The Authority shall, during the disposal process, use the appropriate

procurement method in accordance with the provisions of these

regulations.

368. Provided that the estimated trade-in value shall not be deducted

from the estimated value of the procurement in selecting the

appropriate procurement method.

369. The Authority shall obtain an approval from the Board or any of its

committees to include the trade-in requirement in the procurement

prior to the commencement of the procurement proceedings.

370. The bidding document and any invitation notice, where an asset is

to be disposed of through trade-in, shall clearly state that the

procurement involves a trade-in arrangement.

371. The bidding document, where an asset is to be disposed of through

trade-in, shall be drafted using the appropriate procurement

document issued by the Board.

372. The advertisement of the opportunity, issue of solicitation

documents, bidding period and the receipt and opening of bids,

where an asset is to be disposed of through trade-in, shall be in

accordance with these Regulations.

373. The evaluation of bids where an asset is to be disposed of through

trade-in, shall be done in the appropriate methodology for the

procurement requirement.

374. The trade-in value offered for the asset to be disposed of through

trade-in shall be included in the financial evaluation only in the

manner stated in the bidding document.

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375. The evaluation of the trade-in offers shall be clearly stated in the

evaluation report.

376. Where factors, other than price, need to be taken into account in the

disposal process, disposal by trade-in shall not be used.

377. Negotiations may be permitted in accordance with the relevant rules

on procurement.

378. An award of contract shall be in accordance with the relevant rules

on procurement.

379. The contract document shall be in the form of the procurement

document issued by the Board.

380. Responsibility for contracts management of the procurement

contract and the disposal element shall be clearly defined within the

procuring and disposing entity, and where separate staff are

responsible for each element, they shall work together, as

appropriate.

381. The standard documentation used and disposal process followed in

trade-in shall be in accordance with such format as the Board may

prescribe.

Transfer to another procuring and disposing entity

382. Submissions to the Board or any of its committees in respect of

disposal by transfer to another procuring and disposing entity shall

be made in such format as the Board may prescribe.

383. Where disposal is by transfer to another procuring and disposing

entity, the arrangements for the transfer shall be discussed and

agreed between the two entities.

384. The agreement shall include-

384.1. the cost to be paid by the beneficial entity, which cost may

be none if it is uneconomic

384.2. to charge for the asset;

384.3. any subsidiary, linked assets to be included in or excluded

from the transfer;

384.4. the date for the transfer;

384.5. responsibility for transporting the asset;

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384.6. the hand-over procedure and any documentation to be

transferred;

384.7. the mechanism and date for payment for any cost; and

384.8. who is responsible for any legal obligations linked to the

asset.

385. The arrangements for the transfer to another procuring and

disposing entity shall be confirmed in writing using such format as

the Board may prescribe and such arrangements shall be approved

and signed by the accounting officers of both procuring entities.

386. The recipient procuring and disposing entity shall issue an

authorised receipt of the assets to the originating procuring and

disposing entity.

387. The standard documentation used and disposal process followed

for transfer to another procuring and disposing entity shall be in

accordance with such format and process as the Board may

prescribe.

Destruction of assets

388. Submissions to the Board or any of its committees in respect of

disposal by destruction of assets shall be made using such format

as the Board may prescribe.

389. Where disposal is by destruction of assets, the procuring and

disposing entity shall either-

389.1. undertake the destruction itself; or

389.2. identify the competent authority or an appropriate provider

to undertake the destruction.

390. The Authority shall obtain approval from the accounting officer prior

to the destruction of an asset being undertaken.

391. The method of destruction of an asset under disposal by destruction

of assets shall be appropriate to-

391.1. the assets being disposed of; and

391.2. the circumstances giving rise to the destruction, including

any grounds of national security or public interest.

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392. A signed certificate of destruction shall be obtainedfrom the

authorised official within the procuring and disposing entity,

competent authority or provider and shall be kept as part of the

record of disposal proceedings.

Valuation of assets

393. Assets may be valued by a professional valuer before disposal.

394. An independent auctioneer may be engaged to carry out asset

valuation where the cost of valuation can be recouped from the

proceeds of the sale.

395. Where the items of minimal value are due for disposal, the

Procurement Unit will ascertain the book value of the items and

come with a nominal value which will be used as the reserve price.

396. Notwithstanding the above, the reserve value should not be based

on the book value only and should among other things be based on

what the assets can fetch from the market.

Payment for Assets

397. Payment for assets disposed of must be made by cash or bank

guaranteed cheque, payable to the Authority.

PROCUREMENT PLANNING

398. A procurement plan should be produced annually. The plan should

indicate:

398.1. What the Authority intends to buy;

398.2. The procurement method to be used;

398.3. The timelines of procurement; Approval, floating, closing,

evaluation, report, adjudication.

398.4. The estimated cost;

399. Where a tender process is to be conducted, the planning process

should produce a project plan that:

399.1. Identifies the outcomes to be achieved, including time and

costs, and risks to be managed;

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399.2. Details the resources required and strategies

recommended to manage the project;

399.3. Allocates responsibilities;

399.4. Sets out the procedures for project administration and

control; and

399.5. Establishes a time frame for obtaining approvals.

Preparing Tender Documentation

400. The tender documentation will be compiled by the Procurement Unit

in consultation with the relevant user department and will require

Management Tender Committee approval prior to public release.