Synopsis of the Bidders Synopsis of the Bidders Guidelines - - PowerPoint PPT Presentation

Wednesday, October 22, 2014 1

Synopsis of the Bidders’ Guidelines Synopsis of the Bidders’ Guidelines

• Engr. Akin Onimole

General Manager/ CEO Wednesday, 22nd October, 2014

The Purpose of these Guidelines is to inform potential Bidders in a general manner what is required of them when doing business with Lagos State Government under the New Public Procurement Regime

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Background Information Background Information

• The Lagos State Public Procurement Law 2011 was passed by the

LSHA and assented to by H.E Governor Babatunde Raji Fashola in October 21, 2011;

• By the provision of the Law the Public Procurement Agency (PPA)

was created in April 2, 2012 as an independent regulatory body to ensure compliance with the Law State-wide.

• The Law makes provision for a 2-year transition period for STB to

wind down and ensure effective take off of PPA.

• The transition period provided the opportunity to build state-wide

capacity within the public service including:

Sensitisation of various stakeholders Creation of Procurement Units across MDAs and Training, Conversion and deployment of officers into the Procurement cadre Preparation of various procurement documents and establishment of structures required for effective operation of PPA

• Wednesday, October 22,

2014 3

Objectives of PPA

• The “Agency” is charged with oversight of the operation of Public

Procurement in Lagos State:

Its mandate include:-

1. Ensuring probity, accountability and transparency 2. Establish fair pricing standards and benchmarks 3. Ensuring the application of fair, competitive, value-for-money standards and practices for the procurement and disposal of public assets and services 4. Creating ample opportunities for the citizenry particularly, small and medium scale enterprises to participate in the economic opportunities and benefits of public procurement

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Objectives of PPA ….cont’d

• 5. Creating a cost and time efficient and effective

adjudicatory mechanism for the resolution of complaints arising from public procurement process in the State and its Local Governments filed by Procuring Entities, bidders and the general public and

• 6. Attaining transparency, competitiveness,

professionalism and guarantee integrity and public trust in the public procurement procedures

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Hallmark of Public Procurement

• ACCOUNTABILITY = Responsibility +

Answerability + Trustworthiness

• TRANSPARENCY = Openness + Consistency in

Action

• IMPARTIAL AND FAIR COMPETITION =

Creating a level playing field for all potential bidders to compete

• INTEGRITY = Steadfast adherence to a strict moral
• r ethical code
• VALUE FOR MONEY = Need + Cost + Quality

Procuring Entities Procuring Entities

• Ministries
• Departments
• Bureaus
• Offices
• Agencies
• Parastatals
• Corporations
• LGAs & LCDAs

which derive funds appropriated for any type of procurement described in the Law from the State Government’s Consolidated Revenue Fund.

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Advertisement of Public Procurement Opportunities Advertisement of Public Procurement Opportunities

ICB ICB – Official Website of MDA, 2 National Newspapers, State Tenders Journal and 1 relevant International Journal for a period not less than 4 weeks from the date of advertisement NCB NCB – Notice Board of MDA and the State Tenders Journal for a period not less than 2 weeks from the date of advertisement EOI EOI – (For Consultancy Services): Depending on the thresholds, State Tenders Journal and Publication in the a widely read Newspaper are recommended.

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Basic Requirements for Eligibility to Tender

• Must have the legal capacity to enter into procurement contract
• Registration with Lagos State Government
• Possesses the required professional and qualification to carry
• ut particular procurement
• Possesses or have access to required equipment and other

relevant infrastructure

• Must have qualified and experienced personnel to perform the
• bligations of the procurement contract
• Have fulfilled all its obligations to pay taxes, pensions and

social security contributions

• Not have any Directors of the company who has been

convicted in any country for any criminal offence relating to fraud or financial impropriety or criminal misrepresentation or falsification of facts relating to any matter

• Not be in receivership, the subject of any form of insolvency or

bankruptcy

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New Thresholds & Applicable Advertisement Rules New Thresholds & Applicable Advertisement Rules

Financial Thresholds (Naira N) Category of Contractors/ Suppliers Advertisement Rules

10 - <50 million B, C, D & E

Contractors/ Suppliers will be subjected to Selective Tendering Process: The MDA sources for minimum of 3 quotations from reputable and registered contractors/ suppliers

50 – <100 million B, C, D & E

This shall be done through Open Competitive Tendering: Advertisement shall be advertised in the Tenders Journal, MDAs Notice Board and PPAs website for a minimum of 2 weeks.

100 –<500 million C, D & E

Open Competitive Tendering applies: Procurement opportunities shall be published in the MDA’s Notice Board and the State Tenders Journal for a period not less than 2 weeks from the date of advertisement

500 million and Above D & E

Open Competitive Tendering also applies: MDA shall publicize the procurement opportunities in the Official Website of MDA, 2 National Newspapers, State Tenders Journal and 1 relevant International Journal for a period not less than 4 weeks from the date of advertisement

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New Tendering Procedures New Tendering Procedures

Depending on the Thresholds, Procurement Opportunities are Advertised in the Appropriate Media (e.g. State Tenders Journal) Interested Bidders respond to Advertisement by submitting their Bids/ Proposals Public Bid Opening (Interested bidders may choose to attend) Procuring Entity evaluates all the received Bids within timeframe to determine the

MOST RESPONSIVE LOWEST EVALUATED BIDDER

MTB/PTB issues Letter of Award (subject to Conditions Precedent to Contract Execution)

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Types of Tender Types of Tender

• Open Tendering – All eligible bidders are given equal opportunities to

competitively bid for a procurement opportunities.

• Restricted Tendering – used for already prequalified contractors/

suppliers or where the work is highly specialised and only limited specialists are available in the field.

• Direct Procurement – used only where there is only one known

company that can provide the required goods/ works/ services or a continuation of works/ services

• Framework Contracting – is a long-term agreement with suppliers,

contractors and service providers of non-consulting services which sets out terms and conditions under which specific procurements (call-offs) can be made throughout the term of the agreement.

• Request for Quotation – used for low-value items
• Request for Proposals – used for the procurement of services or

combination of goods and services that are advisory or predominantly intellectual in nature.

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Tendering Documents Tendering Documents

• A tendering/ bidding documents is a set of documents which

will be prepared and sold to interested and eligible bidders by the Procuring Entities.

• It explains all the requirements of what is to be provided, all

rules and procedures for bidding and specific criteria that will be used to choose a winning bid. Sections of the Bidding Documents include: 1. Invitation to Bid

• 2. Instruction to Bidders
• 3. Bid Data Sheet (Special Instructions to Bidders)
• 4. General Conditions of Contract (GCC)
• 5. Special Conditions of Contract (SCC)
• 6. Schedules of Requirements

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Tendering Document Tendering Document..cont’d

• Technical Specifications
• Bidding Forms (Bid Form, Price Schedule Form, Bid

Security Form etc)

• Contract Forms (Performance Guarantee Form,

Advance Payment Guarantee Form, Model Contract Agreement)

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Things to Know when Tendering for a Contract

Critical Critical Issues Issues Sections Sections

• f the PP
• f the PP

Law Law Action Required by the Contractors/ Action Required by the Contractors/ Suppliers/ Vendors Suppliers/ Vendors

Bid Security Section 35 Ensure that adequate Bid Security from reputable financial institution as may be stated in the bidding document is submitted along with the bids Submission of Bids Section 36 Ensure that Bids are submitted at the appropriate place, time and date as specified in the Special Instruction to Bidders (SIB) in the bidding documents. Validity Period of Bids Section 39 Make provision for adequate validity period of your bid as may be specified in the SIB in the bidding documents Clarifications from Bidders MDA may write to seek clarifications from bidders during Evaluation of Bids; It is the responsibility of the bidders to respond in writing within the specified timeframe.

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Things to Know…….

Critical Critical Issues Issues Sections Sections

• f the PP
• f the PP

Law Law Action Required by the Contractors Action Required by the Contractors

Advance Payment/ Mobilization Fee Section 62 Maximum of 20% Advance Payment may be granted under the new system. Advance payment above this amount shall be approved by the HE. Contractor shall submit Advance Payment Guarantee/ Bond as may be required by the MDA. Performance Security Section 63 Contractor should be prepared to submit valid and adequate Performance Security issued by reputable financial institution as may be specified in the SIB. This is to ensure that the contractor shall perform to specifications. Contract Agreement Contractor should be prepared to fulfill all obligations prior to contract signatures. Notification of Award issued to the preferred bidder should not be taken as a Contract Agreement. Grounds for Disqualificati

• n

Section 70 (c), (d), (e), (i) & (k) Apart from the Section of the Law, non-compliance with any of the critical issues highlighted above may lead to disqualification of the bidder.

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Roles of NGOs/ CSOs in the Roles of NGOs/ CSOs in the New Procurement Regime New Procurement Regime

• Monitor the

procurement process to ensure transparency.

• Monitor the progress of

the project to ensure that its delivered as scheduled

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Request for Review Request for Review

An Aggrieved Bidder!

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Complaint Complaint Mechanism Flowchart Mechanism Flowchart

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IF NOT SATISFIED IF NOT SATISFIED IF NOT SATISFIED

Bidder complains in writing to PE Bidder complains to PPA Bidder complains in writing to LASG EXCO Bidder complains in writing to PPA Board through GM (PPA)

The PE must make a decision in writing within 15 working days PPA must make a decision in writing within 21 working days The PPA Board must make a decision in writing within 21 working days

Thank You Thank You

Eko O ni baje oooo

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