Awards of Contracts in Seychelles
Presented by: Lydia Charlie Executive Director Office of the Mayor of Victoria Republic of Seychelles September 2017
In Seychelles there are three types of contracts:
• Civil Works • Goods and Services contract • Consultancy contract
For Goods and Services/Civil Works Less the SR 150,000.00 SR 150,000.00 750,000.00
Above SR 750,000.00
Approved internally by the Mayor of Victoria and the Mayor’s Office can do a simple contract. The project is forwarded to the to Procurement Oversight Unit who forwards to the Procurement committee for approval. The project is forwarded to the Procurement Oversight Unit who forwards to the National Tender Board for approval.
FOR CONSULTANCY Â Less the SR 50,000.00 Â SR 50,000.00 to 150,000.00
Above SR 150,000.00
Approved internally by the Mayor of Victoria and need to do a simple contract. The project is forwarded to the Procurement Oversight Unit which forwards to the Procurement committee e for approval. The project is forwarded to the Procurement Oversight Unit which forwards to the National Tender Board for
It is to be noted that although projects are approved internally, proper procurement procedures should be followed and backed with proper justifications. ďƒ’ Procurement plans for all ministries and departments must be forwarded to the Procurement Unit at the beginning of each year for approval. ďƒ’
PROCUREMENT METHODS
There are three main types of procurements methods set out under the Public Procurement Act: 1. Direct Bidding Method - Clause 63 (2) (...) 2. Selective/Limited Bidding Processes Clause 61 (2) (...) 3. Open Bidding Method (Clause 57)
1. DIRECT BIDDING METHOD - CLAUSE 63 (2) (...)
This is the least competitive mode of procurement. The method can be used only if the justification satisfies at least one of the following criteria: 63 2 (a)- Only one supplier can provide the goods, works or services 63 2 (b)- The project is urgent-(The urgency of a procurement should not be fabricated just to bypass proper procedures.) 63 2 (c)-for standardization/continuity purposes 63 2 (d)-for extension of contract
2. SELECTIVE/LIMITED BIDDING PROCESSES - CLAUSE 61 (2) (...)
This type of method has some aspect of competition as invitation is extended to a designated group of bidders to tender for works, goods or services. Under the Act, Selective/Limited Bidding Method can only be adopted under either one of the following justification:
There is limited suppliers or contractors that can do the works There is an urgent need for the services or works to be done.
IT IS TO BE NOTED THAT PROPER APPROVAL SHOULD BE SOUGHT PRIOR TO CONDUCTING ANY OF THESE TWO PROCUREMENT METHOD AND IF ONE OF ABOVE IS CHOSEN, IT NEEDS TO BE ENSURED THAT IT CAN BE JUSTIFIED AS PER ALLOWABLE UNDER THE ACT. IN THE EVENT THAT THE CRITERIA ARE NOT MET, THEN THE PROCUREMENT SECTION WILL NOT PROCESS THE PROJECT FURTHER AND THE FILE WILL BE RETURNED TO THE RESPECTIVE MINISTRY/DEPARTMENT
3. OPEN BIDDING METHOD (CLAUSE 57)
This is the most preferred mode of procurement. Open Bidding encourages more competition and transparency. The Procurement Section encourages that the Office of the Mayor of Victoria considers the adoption of this particular mode of procurement for all projects above the SR 150,000.00 threshold.
RESTROSPECTIVE APPROVAL
NO procurement above SR 50,000.00 should be implemented without prior approval from the Procurement Section. Despite the urgency of a project, the procurement section should be informed so that proper approval can be sought. This can be done either through a memo or through an email. The Procurement Unit will not approve or process a project that has been done in a retrospective manner.
The Procurement Oversight Unit does not process any procurement which has been undertaken without prior approval from the relevant approval authority.
ADHOC EVALUATION COMMITTEE
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As per Clause 41 of the Public Procurement Act, a procuring entity shall appoint an Adhoc Evaluation Committee who shall be responsible for the evaluation of tenders, proposals or quotations and the preparation of recommendation/evaluation reports to be submitted to the relevant approval authority
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The Committee shall comprise of not less than three (3) members and may include a member who is not an employee of the public body. However, the members of the committee shall not be members of the National Tender Board or the Procurement Committees.
MEMBERS OF THE ADHOC EVALUATION COMMITTEE The members of the Adhoc Evaluation Committee shall possess the skills, knowledge and experience relevant to the procurement requirement which may include – Technical skills Procurement and contracting skills Financial management or analysis skills; or Legal expertise
To ensure that that there is accountability and transparency, the following personnel cannot form part of the committee; The Mayor of Victoria – as under the Public Procurement Act, the Mayor of Victoria approves for project within internal threshold thus considered as an Approval Authority The Procurement Officer – as the officer is responsible for the preparation of tender documents and all other processes relating to the Procurement but can sit in the meeting to provide any information as may be required The Project Officer – in this instance project officer, is the officer who has initiated the procurement proceedings, be it, for works, goods, services or consultancy. The project officer cannot form part of the Evaluation Committee but can sit in to provide additional information pertaining to the procurement at hand.
PRE BIDDING PROCEDURES An advert should be placed in the newspapers, radio and TV inviting bidders to purchase the tender documents which are non-refundable. The price of the documents will depend on the size of the project. A security bid of 1% is retained for projects less than SR750,000.00 to ensure that the tender process is completed. No security bid is required for small contracts.
PRE BIDDING MEETING A pre bidding meeting is organized with all interested bidders who have purchased the tender documents in order to explain the project in details. ďƒ’ If the bidder does not attend the pre bidding meeting, then he is automatically disqualified. ďƒ’
CONTRACT AWARD DECISIONS ďƒ’
All contract award decisions are taken by the appropriate approvals authority, in accordance with the levels of authority specified in the Public Procurement Act and the Regulations.
CONTRACT AWARD DECISIONS (CONT’D)
All contract award decisions shall be taken in response to a recommendation for contract award, contained in an evaluation report.
A contract award decision by the approvals authority shall not constitute a contract, but only a decision as to the winning or recommended bidder.
NOTICE OF BEST EVALUATED BIDDER Where procurement is conducted using open or limited bidding or selection, following the contract award decision by the approvals authority, the procuring entity shall, within seven working days of awarding a contract, prepare and publish a notice of best evaluated bidder. ďƒ’ However, when the procuring entity uses limited bidding or selection on the grounds of emergency circumstances, request for sealed quotations or the direct bidding method, the requirement for publication of a notice of best evaluated bidder shall not apply. ďƒ’
DEFINITION OF BEST EVALUATED BIDDER
As per the Public Procurement Act, the best evaluated bidder is defined as:
“The bidder ranked as first, following the application of the specified evaluation methodology and criteria” but not necessarily the one with the lowest price.
NOTICE OF BEST EVALUATED BIDDER (CONT’D) A notice shall specify)The name and address of the bidder recommended for the award; )The proposed contract price; )That bidders have the right to submit an application for review of the decision in accordance with the Act; and )The procurement reference number and description. a)
The notice shall state that it does not constitute an award of contract.
NOTICE OF BEST EVALUATED BIDDER (CONT’D) A notice shall be(a) Sent directly to all bidders; (b) To the extent possible , published on the internet, www.pou.gov.sc (Procurement Oversight Unit’s website) (c) Displayed on the notice board or a noticeable place in the procuring entity’s offices
() A
procuring entity shall not award the contract until ten working days (“standstill period”) have elapsed after publication of the notice of best evaluated bidder.
WHAT IS STAND STILL PERIOD? ďƒ’
A mandatory period of at least ten working days following the notification of an award decision before the contract is signed with the successful bidder.
What is the purpose of the standstill period To enable unsuccessful bidders to review and digest the award notification letter and any other debrief materials provided by the Procurement Entity, and determine whether they have any grounds on which to challenge the outcome of the tender. ďƒ’
COMMITMENT OF FUNDS A procuring entity shall, following the contract award decision by the approvals authority , commit the required funds, before proceeding to award the contract ď ą Where required, a procuring entity shall also commit funds for other costs linked to the contract, e.g VAT ď ą
AWARD OF CONTRACT A bidding document shall state the procedures for an award of contract, which shall bea) By placement of a written contract document, or b) By issue of a letter of bid acceptance, which shall be confirmed by the written contract. ď ś
AWARD OF CONTRACT (CONT’D) No contract, purchase order, letter of bid acceptance or other communication in any form conveying acceptance of a bid or an award of a contract shall be issued prior toI. An award decision by the appropriate approvals authority in accordance with the Act; II. Publication and dispatch of the notices of best evaluated bidder in accordance with the Act; III. Confirmation that the procurement is not subject to administrative review; IV. Confirmation that funding is available for the contract, and V. Any other approvals required, including the approval of the contract by the AttorneyGeneral.
. Any
contract, purchase order, letter of bid acceptance or other communication issued contrary to the above is void. . The contractor may be required to provide a guarantee from a bank or an insurance company.
CONTRACT AWARD UNDER OPEN OR LIMITED BIDDING OR SELECTION ď ś
A procuring entity shall, following the commitment of funds and the publication of the notice of best evaluated bidder and provided no application for review has been received, award the contract by issuing a letter of bid acceptance to the recommended bidder.
CONTRACT AWARD UNDER OPEN OR LIMITED BIDDING OR SELECTION (CONT’D)
The letter of bid acceptance shall statea) The name and address of the procuring entity; b) The name and address of the bidder; c) The date and reference number of the bid being accepted; d) Any modifications to the bid, resulting from clarifications, corrections or negotiations;
CONTRACT AWARD UNDER OPEN OR LIMITED BIDDING OR SELECTION (CONT’D)
e) Any items excluded from the contractor variations in quantity or any other detail; f) The total contract price; and g) That the letter of bid acceptance constitutes a contract between the procuring entity and the bidder, until such time as a formal contract is signed.
CONTRACT AWARD UNDER OPEN OR LIMITED BIDDING OR SELECTION (CONT’D)
A Procurement Unit shall obtain a signed acknowledgment from the bidder, confirming that it has received the letter of bid acceptance. If the recommended bidder fails to conclude a contract, or provide a performance security or any other action required by the bidding documents, the procuring entity shall annul the contract and award the contract to the next ranked bidder, subject to the bidder being qualified and the prior authorisation of the approvals authority.
WHAT IS A LETTER OF BID ACCEPTANCE? 
A letter to be sent to the successful bidder confirming an intention to award a contract to that bidder.
Following the bid acceptance, an advance payment of 25% of the contracted sum is paid to the contractor prior to commencing the work. 65% of the sum is then paid upon completion of the work A 10% retention fee is kept for a period of one month or more depending on the nature of the contract. Normally, the sum would be released after one month. Should the contractor fail to meet the deadline, he can request for an extension. If not, he will be penalized by either being charged a penalty fee, or the contract can be withdrawn without being paid the work carried out
MONITORING OF THE CONTRACTED WORK Monitoring of the work is done by the project officer of the responsible Ministry or Department. An Inspectorate officer from the Procurement Unit can also visit the site randomly to evaluate the work being carried out and to report to the relevant ministry and department.
Thank you for your attention!!!!!! Merci pour votre attention!!!!!!! ďƒ’ Mersi pour zot latansyon!!!!!!!! ďƒ’