7th june, 2006 public sector procurement office of the contractor-general and the national contracts...
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7th June, 2006
Public Sector Procurement
Office of the Contractor-General and the National Contracts Commission
7th June, 2006
Commissions of Parliament
Contractor-GeneralEstablished in 1986
Contractor-General Act, 1983
National Contracts CommissionEstablished in 1999
Amendment 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
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Contractor-General
Monitors and investigates the award and implementation of government contracts, permits and licences, to ensure the award is
Impartial and based on merit
The award and termination do not involve impropriety or irregularity
Implemented according to terms of the contract
Monitors the entire procurement processDoes not endorse award of contracts
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Contractor-General
Entitled to:Be advised of variations to all contracts
Access 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
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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 found
Enter any premises occupied by any person to make enquiries in respect of these documents, records, etc. necessary to an investigation, and to retain these
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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
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National Contracts Commission
Principal objects of the Commission are:
Promotion of efficiency in the process of award of government contracts
Ensuring transparency and equity in awarding such contracts
Section 23C, Contractor-General Act
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National Contracts Commission
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
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National Contracts Commission
Functions Continuously evaluates contractors – financial and managerial capability, human resources, technical expertise, performanceOversees the activities of the Sector Committees
Section 23D, Contractor-General Act
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Sector Committees
Urban Development CorporationNational Works AgencyPort Authority of JamaicaJamaica Social Investment FundMinistry of Education and CultureMinistry of Water and HousingMinistry of Health
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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
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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
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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
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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.
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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.
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In-house Procurement Committee
CompositionChairmanSenior Financial Management PersonnelSecretaryProcurement Officer
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In-house Procurement Committee
FunctionsEnsure compliance with NCC policies and guidelinesEvaluate ProcessesRespond to contractor/supplier enquiriesMaintain records of Committee MeetingReporting obligations/accountability
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Modules
Module 1 – Contract Values and Advertising
Module 2 – Tender ProceduresModule 3 – Evaluation of TendersModule 4 – The Inspectorate
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Module 1 – Contract Values and Advertising
Types of TendersOpenSelective LimitedSole Source/Direct Procurement
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Module 1 – Contract Values and Advertising
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)
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Module 1 – Contract Values and Advertising
Open TenderContracts above the threshold ($150,000,000.00)
Prequalification Exercise is mandatory
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Module 1 – Contract Values and Advertising
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
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Module 1 – Contract Values and Advertising
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
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Module 1 – Contract Values and Advertising
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
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Module 1 – Contract Values and Advertising
Selective TenderContracts valued $4,000,000.00 – $15,000,000.00 cont’d
Awards of ContractsRecommended by
NCC - Endorses recommendation from the agency
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Module 1 – Contract Values and Advertising
Selective TenderContracts valued $4,000,000.00 – $15,000,000.00 cont’d
Awards of ContractsApproved by
MinisterPermanent Secretary
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Module 1 – Contract Values and Advertising
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
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Module 1 – Contract Values and Advertising
Limited Tender (contracts less than J$1M)Procurement opportunity open to limited number of contractors
Three (3) contractors/suppliers are invited to participate
Not advertised
Qualified contractors/suppliers are contacted and invited to participate based on:
Nature of work requiredRelevant experiencePast performance recordFinancial and technical capabilities
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Module 1 – Contract Values and Advertising
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
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Module 1 – Contract Values and Advertising
Limited Tender Contracts valued $250,000.00 to $1,000,000.00
InvitationLocal Restricted Advertising
Post Offices, Parish Councils, etc.Evaluation
In-House Procurement Committee
ApprovalHead of AgencyPermanent Secretary
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Module 1 – Contract Values and Advertising
Contracts less than J$1,000,000.00
Sole Source Procurement can be used
Must have written authorization from the Permanent Secretary
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Module 1 – Contract Values and Advertising
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
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Module 1 – Contract Values and Advertising
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:
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Module 1 – Contract Values and Advertising
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:
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Module 1 – Contract Values and Advertising
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
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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
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MODULE 2 - Tender Procedures
TENDER PROCESSObjective: To select a contractor/supplier for
the award of contractHas FIVE distinct Processes
Definition of needsPreparation of documentsSolicitationEvaluationAward
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MODULE 2 - Tender Procedures
Preparation of Documents
Tender DocumentsContractSpecificationsInstruction to Tenderers
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MODULE 2 - Tender Procedures
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
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MODULE 2 - Tender Procedures
Contractor/supplier pre-qualificationTender ValidityReceipt of Tenders
Tender Box
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MODULE 2 - Tender Procedures
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
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MODULE 2 - Tender Procedures
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
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MODULE 2 - Tender Procedures
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
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Module 3 – Evaluation of Tenders
ResponsivenessEvaluation MethodologyCorrespondenceExtension of Tender ValidityTender Report
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Module 3 – Evaluation of Tenders
ResponsivenessCheck tenders for missing information or documents
Instructions have been followedIs tax compliantRegistered with NCCMeets financial and technical requirements
EvaluateSubstantial compliance with tender
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Module 3 – Evaluation of Tenders
Evaluation
Check and counter-check arithmetic calculationsInform tenderers of any errorsCompare each tender and estimateEvaluate workloadCompare individual rates with market ratesMake summary comparison of all tendersRecommendation for acceptanceCorrespondence
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Module 3 – Evaluation of Tenders
Correspondence•Communicate with
contractor• Indicating whether bid was
successful\to be returned
All communications must be in writing
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Module 3 – Evaluation of Tenders
Extension of Tender Validity
Request in writingWrite and respond to each tenderer
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Module 3 – Evaluation of Tenders
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
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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
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Module 4 – The Inspectorate
Construction WorksPre- and Post- contract period
Goods and Services
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Module 4 – Pre-contract period
Pre-Contract ActivitiesAdvertisingEvaluation
Selection of contractorsExamining of tender documentsAttending opening of tenders
Signing of ContractPossession of site
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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
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Module 4 – Post contract period
Post-Contract Activities cont’d
ActivitiesAttends site meetingsIssues:
site instructionVariation orders
PreparesClaims for contractorApplications for extension of time
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Module 4 – Post-contract period
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
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Module 4 – Post-contract period
Post-Contract Activities cont’d
Activities…Honouring/payment of certificatesNote correct procedures for termination of contract
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Module 4 – Post-contract period
Post-Contract Activities cont’dActivities…
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
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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.
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Module 4 - Goods and Services
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.
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Module 4 - Goods and Services
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.