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Procurement Methods Explained

Procurement methods. In most public procurement laws, policies, guidelines and manuals, procurement methods are identified by different names for groups of procurement categories.

Generally, procurement of goods and construction works (sometimes including non-consulting services) are grouped separately from consulting services procurement.

There are specific procurement methods identified for each group. In spite of the differences in the names of the procurement methods identified for each group, they fall into two broad categories:

Competitive procurement methods, and

Non-competitive procurement methods (referred to as restricted methods in the Public Procurement and Disposal of Public Assets Act [Chapter 22:23]).

Types of Procurement Methods

Public procurement methods are the procedures used by procuring entities to acquire goods, services and construction works. There is a preference for using competitive methods, given that they are likely to promote transparency, economy and efficiency, and limit favouritism.

Available Methods of Procurement Under the PPDPA Act

Part VI of the Public Procurement and Disposal of Public Assets (PPDPA) Act and Part III of Regulations prescribes the provisions for the selection of the different methods of procurement.

Section 10 of the Public Procurement and Disposal of Public Assets (General) Regulations (S. I. 5 of 2018) provides thresholds for competitive bidding methods. Request for Quotation method applies to procurement values below US$20 000 for construction works, US$10 000 for goods and US$5 000 for services.

Domestic tenders are invited for procurement values between US$20 000 and US$5 million for construction works, US$10 000 and US$300 000 for goods and US$5 000 and US$200 000 for services.

International tenders are invited for procurement values above US$5 million for construction works, US$300 000 for goods and US$200 000 for services.

The above thresholds do not apply where Framework Agreements have been established. Framework Agreements is another form of competitive method of procurement for use on standard common use items.

The alternative to competitive bidding method is the restricted bidding method and direct procurement method as provided in Section 32 and 33 of the Act respectively.

Part III of S. I. 5 of 2018, the PPDPA (General) Regulations provides procedures for two-stage competitive bidding, pre-qualification in competitive bidding, use of restricted bidding method, use of direct procurement method and use of request for quotation method.

Consultancy services are procured according to provisions of Part VIII of the Act. Section 60 of the Act provides rules for quality and cost based selection (QCBS) method. Section 61 of the Act provides rules for procurement of a consultant where the procuring entity has a fixed budget selection (FBS). Least – cost selection (LCS) method applies to consultancy services of a standard or routine nature and Section 62 of the Act provides the rules. Section 63 of the Act provides rules for quality based selection (QBS). Rules for engagement of community services organisation (CSO) where there is a desire to engage institutions that understand the community and local needs, Section 64 of the Act applies. Section 65 of the Act provides procurement rules for single sourcing (SS) and Section 66 of the Act provides rules for engagement of individual consultants (IC). Part VI of the PPDPA (General) Regulations provides procedures for procurement of consultancy.

Procurement of public private partnerships follows similar rules of the procurement of consultants. The difference is that they provide for negotiations and details are provided in Section 100 of the Act. Part XII of the PPDPA (General) regulations provides procedures for procurement of public private partnership.

It is imperative that procurement entities are well versed with the different methods of procurement so that they execute procurement processes in a manner that is in conformance with the Act.

The use of a wrong procurement method can constitute an offence under section 94 of the Regulations, where it can be proved that the wrong method was applied without lawful excuses.

Source :

The Herald

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