Directive No 1 issued pursuant to Section 7 of the Public Procurement Act

1. Issue of Standard Bidding Documents and Consulting of Contract

The Directive relates to the following documents issued by the Policy Office:

1. Standard Bidding documents for Procurement of Goods, Works, Major or Complex Works, Security/Cleaning Services, Services (non-Consultancy) and for the Selection of Consultants;
2. Prequalification for Major or Complex Works;
3. Restricted Bidding for values up to Rs 5M for the procurement of goods, Works, Services(non-Consultancy) and Security/Cleaning Services;
4. Request for Sealed Quotations for the procurement of Goods, Works, Services (non-Consultancy) and Cleaning/Security Services; and
5. Conditions of Contracts to support the Bidding Documents in paragraphs (ii) and (iii) above.

The documents have been posted on the website of the Ministry of Finance and Economic Development http://mof.gov.mu under the Procurement Policy Office

Please note that, in accordance with Section 7(c) of the Act, use of the standard documents issued by the Office is mandatory.

Users have to ascertain themselves that they choose the document that is appropriate to the procurement process they are about to undertake, after deciding upon the procurement method.

2. Use of the Standard Documents

2.1. Standard Bidding Documents for Procurement of Works

These documents are meant for procurement exceeding Rs 5M through the Open Advertise Bidding and the Restricted Bidding Methods. It is to be noted that the conditions under which one can have recourse to Restricted Bidding are clearly spelt out in Section 19 of the Act and the Regulations.

Open bidding for Major works of value above Rs 200M or for complex works require a prequalification process, where the document mentioned in 1(ii) may be used.

2.2 Selection of Consultants

Request for Proposals for Consultants can be made by using the document mentioned in 1(i) except if the estimated fee for the Consultancy Services is likely to exceed Rs 5M a short listing of potential Consultants should first be carried out using an Expression of Interest. The bidding document in 1(i) for Selection of Consultants also contain a User’s Guide as well as some indications on how to go about preparing an Expression of Interest for Consultants.

2.3 Restricted Bidding Documents specific for procurement up to Rs 5M

In view of the fact that all Ministries can now execute procurement process of up to Rs 5M at their level and in the event they undertake to procure standard items that are readily available the Restricted Bidding documents for values up to Rs 5M have been specifically prepared for this requirement.

It is to be noted that where the conditions to opt for Restricted Biddings are not met, it would be more appropriate for the Public Body to have recourse to Open Advertised Bidding Process using the standard document referred to in paragraph 2(i).

Notwithstanding the fact that a public body may invite quotations for values up to Rs 5M the Procurement Officers should decide on the best procurement method to obtain value for money depending on the value of the procurement, the availability of the items and the time constraint.

2.4. Standard Bidding Documents for Request for Sealed Quotations

Request for Sealed Quotations is basically meant for the procurement of standardized items that are readily available and for relatively low value say up to an amount not exceeding Rs 1M. For items that involve higher values up to Rs 5M or for items that require taking on board the maintenance cost, life cycle, reliability, output performance etc. to determine the evaluated cost it is recommended that the Restricted Bidding Document specifically designed for values up to Rs 5M be used in lieu of that for the Request for Sealed quotations.

In the event the outcome of a procurement process in respect of situations described in Paragraph 2.3 and 2.4 results in determining the best evaluated bid as being above Rs 5M and therefore above the prescribed amount for certain Public Bodies, the approval of the Central Procurement Board should be sought before proceeding further.

3. Conditions of Contract

Where a Public Body is having recourse to the Restricted Bidding Documents specifically meant for values up to Rs 5M or to request for Sealed Quotations, the Conditions of Contract applicable are as per the documents mentioned in paragraph 1(v). The Conditions for Contract are not meant to be issued with the bidding document every time a bidding process is executed. They are available for consultation by the suppliers on the website of the Ministry of Finance and Economic Development. Procurement Officers may however issue one hard copy of these documents, as applicable, to their regular suppliers so as to make it easier for them to familiarize themselves with the new procurement procedures.

3.1. FIDIC as an alternative

The Standard Bidding document for works up to an amount of Rs 200M contains a set of General Conditions of Contract which is suitable for buildings and other civil works. It may also be customized to suit Procurement for Services such as that for security, cleaning etc. The said document incorporates a set of simplified Conditions of Contract which users may find very convenient when managing works contracts.

The Standard Bidding document for Large or Complex works is meant for works above Rs 200M or for projects of lesser values in view of their specific nature. In these circumstances, users should first proceed with a prequalification exercise.

The SBD Documents mentioned in the preceding paragraphs may not be workable for all types of civil works. In such cases, users may opt for the General Conditions of Contract and Particulars as per FIDIC, as appropriate to their specific works. In so doing users are requested to replace Section IV (General Conditions of Contract) of the SBDs with one clause stating the reference number of FIDIC which shall apply whilst Section V (Special Conditions of Contract) could be replaced by Particulars of FIDIC. Each Public Body shall arrange to procure officially its own copy of the FIDIC document and shall advise the bidders to procure their own as such a document cannot be reproduced in the SBD by virtue of the protection under copyright.

In adapting FIDIC one should ensure that the other parts of the SBD are included and that there are no contradictory clauses between those of FIDIC and the Instructions to Bidders in respect of validity period for Bid and Performance Securities, the time allowed for the successful bidder to produce the Performance Security and to enter into a Formal Agreement etc.

3.2. Qualifications Criteria for Contractors of Works

The usual numbers of years of experience of Contractors in the business or their experience in executing works of similar nature to those referred to in the SBD, as well as the period over which their financial performance shall be assessed have been mentioned in the SBDs. With a view not to depriving potential contractors for relatively smaller works and in case some potential contractors have not applied for registration at the Ministry of Public Infrastructure, Land Transport and Shipping, the SBDs have been amended to allow the Public Body the possibility to adjust these criteria in all fairness to the bidders based on the Public Body’s own experience and also as per the trend in the market.

Registration of contractors with the Ministry of Public Infrastructure, Shipping and Land Transport shall not henceforth, be used as a qualification criteria for contractors in bidding exercise. Bidders will have to satisfy the qualification and eligibility criteria mentioned in the bid document.

The list of registered contractors at the Ministry of Infrastructure shall be maintained as a reference for Restricted Bidding method and for Request for Sealed Quotations for Works.