Public Sector Procurement

7th June, 2006

Public Sector Procurement

Office of the Contractor-General and the National Contracts Commission

7th June, 2006

General Overview

7th June, 2006

Commissions of Parliament

Contractor-GeneralEstablished in 1986

Contractor-General Act, 1983National Contracts Commission

Established in 1999Amendment to the C-G Act.

Section 13(2) of the C-G ActOffice of the Contractor-General

Established in 1986To provide administrative and Technical support

7th June, 2006

Contractor-General

Monitors and investigates the award and implementation of government contracts, permits and licences, to ensure the award is

Impartial and based on meritThe award and termination do not involve impropriety or irregularityImplemented according to terms of the contract

Monitors the entire procurement processDoes not endorse award of contracts

7th June, 2006

Contractor-General

Entitled to:Be advised of variations to all contractsAccess to all books, records documents, stores or other property belonging to the Government, or used in connection with the grant, issue, suspension or revocation of a prescribed licence

7th June, 2006

Contractor-General

Entitled to:Access to all premises where work on a Government contract has been or is being carried out or where he has reason to believe books, records, etc may be foundEnter any premises occupied by any person to make enquiries in respect of these documents, records, etc. necessary to an investigation, and to retain these

7th June, 2006

Contractor-General

For the purposes of the foregoing:Has the power to require any public body to furnish in a manner and at times specified by the C-G information regarding or relating to award of any contract; and grant, issue, suspension or revocation of any prescribed licence that he desires.

Part II (4) of the Contractor-General Act

7th June, 2006

National Contracts Commission

Principal objects of the Commission are:

Promotion of efficiency in the process of award of government contractsEnsuring transparency and equity in awarding such contracts

Section 23C, Contractor-General Act

7th June, 2006


FunctionsExamines applications for the award of government contractsApproves/oversees the award within the specified limitsMakes recommendations to Cabinet for contracts above these limitsRegisters contractors for works, goods and services and maintains up-to-date lists

7th June, 2006


Functions Continuously evaluates contractors – financial and managerial capability, human resources, technical expertise, performanceOversees the activities of the Sector Committees

Section 23D, Contractor-General Act

7th June, 2006

Sector Committees

Urban Development CorporationNational Works AgencyPort Authority of JamaicaJamaica Social Investment FundMinistry of Education and CultureMinistry of Water and HousingMinistry of Health

7th June, 2006

Government “Our vision is of an open and impartial public sector, which puts the public’s interest first, and in which valued and respected professionals deliver high quality services efficiently and effectively.”

- Cabinet office

7th June, 2006

Monitoring

Service Delivery Counseling

7th June, 2006

Office of the Contractor-GeneralVision Statement

“To create, foster and maintain an environment in which Public Sector Procurement is, and is seen to be FAIR, EQUITABLE, TRANSPARENT AND EFFICIENT, thereby engendering public confidence”

OCG Corporate Plan – 2005 - 2008

7th June, 2006

Office of the Contractor-GeneralMission Statement

Improve and make fair and equitable the system of awarding contracts, licences, permits, concessions and the divestment of government assets

Ensure all public sector agencies give the widest possible opportunity to qualified persons to bid for contracts and divestments, or to apply for licences and permits

7th June, 2006

Office of the Contractor-GeneralMission Statement cont’d

Monitor and investigate the award and implementation of contracts, licences, permits, concessions and the divestment of government assets

Create a positive image of the public procurement process by promoting integrity, professionalism, efficiency and thereby engendering public confidence.

7th June, 2006

The Agency’s Role

To protect the Public by procuring from proven and established entities.

To ensure the procurement process is free and fair.

To obtain competitive prices through open competition.

7th June, 2006

The Agency’s Responsibility

Verification of Status of Contractor

7th June, 2006

In-house Procurement Committee

CompositionChairmanSenior Financial Management PersonnelSecretaryProcurement Officer

7th June, 2006

In-house Procurement Committee

FunctionsEnsure compliance with NCC policies and guidelinesEvaluate ProcessesRespond to contractor/supplier enquiriesMaintain records of Committee MeetingReporting obligations/accountability

7th June, 2006

Modules

Module 1 – Contract Values and Advertising

Module 2 – Tender ProceduresModule 3 – Evaluation of TendersModule 4 – The Inspectorate

7th June, 2006


Presentation

7th June, 2006


Module 1

Contract Values and Advertising

7th June, 2006


Types of TendersOpenSelective LimitedSole Source/Direct Procurement

7th June, 2006


Open TenderOpen to all interested local and foreign contractors/suppliers

Advertising for these tenders will be National and International, e.g. trade magazines, Web Site

International Advertisement

May be required by the Funding Agency

This is done if Contractors are unavailable locally

This is for contracts that exceed the international threshold(Threshold not yet established by WTO)

7th June, 2006


Open TenderContracts above the threshold ($150,000,000.00)

Prequalification Exercise is mandatory

7th June, 2006


Selective TenderPrimary method of procurement for GOJInvolves selection of contractors/suppliers from National ListOpen to all domestic contractors/ suppliers registered in appropriate grade and categoryContractors/suppliers must be given adequate time to prepare and submit responsive tenders

7th June, 2006


Selective TenderContracts valued J$1,000,000.00 - $4,000,000.00

Invitation to tenderRestricted local advertising (advertised in agency, local post offices, etc.) – requires no endorsement from NCC

Unless Requires national advertisement based on the nature of the project, i.e. complexity

7th June, 2006


Selective TenderContracts valued $4,000,000.00 – $15,000,000.00

Invitation to tenderAdvertise in local daily paperFirst AD made prior to availability of tender documents

EvaluationProcurement CommitteeHead of AgencySector CommitteeNCC

7th June, 2006


Selective TenderContracts valued $4,000,000.00 – $15,000,000.00 cont’dAwards of Contracts

Recommended byNCC - Endorses recommendation from the agency

7th June, 2006


Selective TenderContracts valued $4,000,000.00 – $15,000,000.00 cont’d

Awards of ContractsApproved by

MinisterPermanent Secretary

7th June, 2006


Selective TenderContracts valued $15,000,000.00 to $150,000,000.00

Advertising and Evaluation procedures are the same as for contracts between $4,000,000.00 and $15,000,000.00But must also be approved by Cabinet after NCC endorsement

7th June, 2006


Limited Tender (contracts less than J$1M)Procurement opportunity open to limited number of contractorsThree (3) contractors/suppliers are invited to participateNot advertisedQualified contractors/suppliers are contacted and invited to participate based on:

Nature of work requiredRelevant experiencePast performance recordFinancial and technical capabilities

7th June, 2006


Limited Tender Contracts below $250,000.00

InvitationSelect three (3) contractors/Suppliers from the list of Registered Contractors/suppliers

EvaluationIn-House Procurement Committee

ApprovalHead of AgencyPermanent Secretary

7th June, 2006


Limited Tender Contracts valued $250,000.00 to $1,000,000.00

InvitationLocal Restricted Advertising

Post Offices, Parish Councils, etc.Evaluation

In-House Procurement CommitteeApproval

Head of AgencyPermanent Secretary

7th June, 2006


Contracts less than J$1,000,000.00

Sole Source Procurement can be used

Must have written authorization from the Permanent Secretary

7th June, 2006


Sole Source (Direct Contracting)Only one contractor/supplier is invited to participate

When:Procurement is of a sensitive natureProcuring entity received an unsolicited proposal it considers meritoriousFollow-on procurementsEmergenciesHighly specialized services

Must be justified in writing to the NCC seeking permission/approval

7th June, 2006


Name, address and other essential details of the procuring entity

Brief description of project and the associated works required

Funding source (if required, e.g. overseas funding (agency(ies)

Requirement for contractor/ supplier NCC registration in designated category(ies) and grades

An Invitation to tender advertisement should include, but not be limited to the following information:

7th June, 2006


Requirement for current Tax Compliance Certificate to be returned with tender

Details of locations and dates for collection and return of tender documents

Cost (if any) of tender documents

Public Opening

Any other special information, e.g. special requirements of Funding Agencies

An Invitation to tender advertisement should include, but not be limited to the following information:

7th June, 2006


National AdvertisementsIn the largest circulation national newspaper

(Sundays and Wednesdays)

First Insertion to precede date on which tender documents become available to tenderers

Electronic Notice Boardwww.procurement.gov.jm

http://www.procurement.gov.jm/

7th June, 2006


Module 2

Anticipate, Manage,

Plan!

Tender Procedures

7th June, 2006

MODULE 2 - Tender Procedures

The Procurement HandbookThe definitive document effective 1st May, 2001Issued under the Authority of the NCC in accordance with the Contractor-General ActFive sections: Policy, Legislation, Directives, Procedures, Green Procurement

7th June, 2006


TENDER PROCESSObjective: To select a contractor/supplier for

the award of contractHas FIVE distinct Processes

Definition of needsPreparation of documentsSolicitationEvaluationAward

7th June, 2006


Define NeedsEstimatesDetailed Requirements

7th June, 2006


Preparation of Documents

Tender DocumentsContractSpecificationsInstruction to Tenderers

7th June, 2006


Tender DocumentsInstructions to Tenderers

Must contain all necessary information, including:Selection procedureEvaluation methodology criteriaSubmission procedure

Tender deposit date/opening dateProof of NCC/TCC registrationDescription of the works, goods and/or servicesUnits of measure - Metric must be usedSource of fundsEligibility requirementsContact Person

7th June, 2006


Contractor/supplier pre-qualificationTender ValidityReceipt of Tenders

Tender Box

7th June, 2006


Tender OpeningA ceremony

To record what occurs during a particular tender openingDoes not determine eligibility or responsiveness or any other issue

The tender opening form must be prepared and signed by all present at tender opening:

Members of opening committeeRepresentatives of tenderers

A comparable estimate is a part of the official record

7th June, 2006


Provision of Information Regarding Public Body Contract Awards – Contracts of J$250,000 to J$3,999,999.99

Directive given on 10th April, 2006, by the Contractor-GeneralAll Government Ministries and Public Bodies must complyMonthly submissions to reporting Ministry

7th June, 2006


Provision of Information Regarding Public Body Contract Awards – Contracts of J$250,000 to J$3,999,999.99 cont’d

Applies to all public sector contractsEffective as of 1st May, 2006Monthly Ministry Contract Awards (MMCA) report to be completed electronically

for further information:http://www.ocg.gov.jm/ocg/mmca.php

7th June, 2006


Module 3

Evaluation of Tenders

7th June, 2006

Module 3 – Evaluation of Tenders

ResponsivenessEvaluation MethodologyCorrespondenceExtension of Tender ValidityTender Report

7th June, 2006


ResponsivenessCheck tenders for missing information or documents

Instructions have been followedIs tax compliantRegistered with NCCMeets financial and technical requirements

EvaluateSubstantial compliance with tender

7th June, 2006


EvaluationCheck and counter-check arithmetic calculations

Inform tenderers of any errorsCompare each tender and estimateEvaluate workloadCompare individual rates with market ratesMake summary comparison of all tendersRecommendation for acceptanceCorrespondence

7th June, 2006


Correspondence•Communicate with contractor

• Indicating whether bid was successful\to be returned

All communications must be in writing

7th June, 2006


Extension of Tender Validity

Request in writingWrite and respond to each tenderer

7th June, 2006


Tender ReportMust indicate every step of the process

Idea of the projectTender submission detailsDescribe ceremonyState methodologyConcerns re analysis of tenderFirm recommendation of who should get the job

7th June, 2006


Module 4

The Inspectorate

7th June, 2006

Module 4 – The Inspectorate

Monitoring and investigating the award and implementation of government contracts is the function of the InspectorateDone on behalf of the Contractor-General to ensure:Fairness, Transparency and Impartiality in the procurement process

7th June, 2006


Construction WorksPre- and Post- contract period

Goods and Services

7th June, 2006


Construction Contracts

7th June, 2006

Module 4 – Pre-contract period

Pre-Contract ActivitiesAdvertisingEvaluation

Selection of contractorsExamining of tender documentsAttending opening of tenders

Signing of ContractPossession of site

7th June, 2006

Module 4 – Post-contract period

Post-Contract ActivitiesInspectorate gathers information to:

Evaluate the management, coordination, quality of supervision of the works and other associated activities

Information/lessons learnt used for future planning of other projectsRecommendations assist contractor in project and similar future projectsInform parliament and the publicContractor-General’s Annual Report

7th June, 2006

Module 4 – Post contract period

Post-Contract Activities cont’dActivities

Attends site meetingsIssues:

site instructionVariation orders

PreparesClaims for contractorApplications for extension of time

7th June, 2006


Post-Contract Activities cont’dActivities…

RecordsAny delays to progressResults of inspections, testsAny defects in the work, and action taken to remedy

ReportsOrganisation of siteTechnical competence of site officers

7th June, 2006


Post-Contract Activities cont’d

Activities…Honouring/payment of certificatesNote correct procedures for termination of contract

7th June, 2006


Post-Contract Activities cont’d

Activities…Provide

letter for practical completionStatement of all sums paid to contractorFinal statement of accountStatement of percentage of overrun – cost and timeRecord of defects liabilityCondition of amount of mobilization

7th June, 2006


Goods and Services

7th June, 2006

Module 4 - Goods and Services

Goods and Services Contracts are usually shortlived

Two stagesPre-ContractPost Contract

As with works contracts, the inspectors’ main focus is to ensure that the contract is awarded in keeping with government procedures.

7th June, 2006


Installations (Pre-Contract)For example:Air Conditioning

The inspectorate would monitor this aspect of the contract.

Furniture refurbishment (Post-Contract)Inspector may attend after completion to ensure that what has been done was in keeping with the contract.

7th June, 2006


VehiclesThe Inspector may be present at handing over of vehicles.

Site visitsWhen contract last for some time Inspectors may visit the site to ensure that the works is progressing on schedule.

7th June, 2006


Summing up…

7th June, 2006

End of Presentation

Thank you

Public Sector Procurement

Documents

Transcript of Public Sector Procurement