News
New guidelines for the procurement of goods and services gazetted
The National Procurement Commission (NPC) has gazetted for the first time since 2006 new guidelines for the procurement of goods, works, services and information systems as well as selection and employment of consultants by Government institutions.
The 117-page document will replace all previous procurement guidelines, circulars and directives. The new guidelines constitute national policy and are mandatory and applicable to all procurements carried out by Government institutions, the gazette says. They will come into effect 30 days after approval by Parliament.
The guidelines have introduced “green public procurement” (GPP) which makes it mandatory for all State institutions to consider the environment when procuring goods, works, services and information systems. Specifically, institutions are encouraged to avoid single use disposable items. They are advised to buy products with improved recyclability and high recyclable contents, reduced packing and greater durability and, wherever possible, use green material.
Emphasis, when procuring goods, services or works, is to be placed on greater energy efficiency; use of clean technology or clean fuel; reduction of water consumption or increase in water harvesting; emitting of fewer irritating or toxic substances during installation or use; and smaller production of toxic substances or less of less toxic substance upon disposal and sustainable garbage disposal. The guidelines encourage, wherever possible, the adoption of a “polluter pays” principle.
The Environment Ministry will establish an inter-agency expert committee (IAEC) on GPP. Among the IAEC’s tasks will be development of green specifications for commonly used products, goods and works using existing material approved by local green certification organizations.
In order to encourage potential suppliers to offer products that can comply with green specifications, consideration may also be given to adopting a marking scheme with appropriate weighting for green specifications against the price offered. For this purpose, prior approval has to be obtained from the Procurement Committee (PC). In drawing up the marking scheme, due weight should be given to whether it will achieve the value for money objective.
The guidelines also state that procuring bodies should absorb any additional cost incurred in procuring goods, works and services with green specifications. “While costs of these products and services may in some cases be higher than those without green features, it is expected that the Government’s initiative of taking the lead on green procurement would facilitate the development of the relevant market and the prices of products meeting green specifications would be lowered over time,” they observe.
A new procurement manual has also been issued, containing details such as procedures, authority limits, threshold limits, time schedules, explanations, etcetera. The guidelines outline the ethics that govern procurement parties.
In relation to procurement, they define “corrupt practice” as offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party. “Fraudulent practice” is described as any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation. And “collusive practice” is as an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party. Coercive and obstructive practices are also defined.