Synopsis of the Bidders ’ Synopsis of the Bidders ’ Guidelines Guidelines Engr. Akin Onimole General Manager/ CEO Wednesday, 22 nd October, 2014 Wednesday, October 22, 1 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 Wednesday, October 22, 2 2014
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, 3 2014
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 Wednesday, October 22, 4 2014
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 Wednesday, October 22, 5 2014
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 or 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. Wednesday, October 22, 7 2014
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. Wednesday, October 22, 8 2014
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 out particular procurement • Possesses or have access to required equipment and other relevant infrastructure • Must have qualified and experienced personnel to perform the obligations 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 Wednesday, October 22, 9 2014
New Thresholds & Applicable Advertisement Rules New Thresholds & Applicable Advertisement Rules Financial Category of Advertisement Rules Thresholds Contractors/ (Naira N) Suppliers 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 This shall be done through Open Competitive 50 – <100 million B, C, D & E Tendering : Advertisement shall be advertised in the Tenders Journal, MDAs Notice Board and PPAs website for a minimum of 2 weeks. Open Competitive Tendering applies: 100 – <500 million C, D & E 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 D & E Open Competitive Tendering also applies: MDA shall publicize the procurement opportunities in the Above 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 Wednesday, October 22, 10 2014
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) Wednesday, October 22, 11 2014
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. Wednesday, October 22, 12 2014
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 Wednesday, October 22, 13 2014
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) Wednesday, October 22, 14 2014
Things to Know when Tendering for a Contract Critical Critical Sections Sections Action Required by the Contractors/ Action Required by the Contractors/ Issues Issues of the PP of the PP Suppliers/ Vendors Suppliers/ Vendors Law Law 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 Section 36 Ensure that Bids are submitted at the appropriate place, Bids time and date as specified in the Special Instruction to Bidders (SIB) in the bidding documents. Validity Section 39 Make provision for adequate validity period of your bid Period of Bids as may be specified in the SIB in the bidding documents Clarifications MDA may write to seek clarifications from bidders from Bidders during Evaluation of Bids; It is the responsibility of the bidders to respond in writing within the specified timeframe. Wednesday, October 22, 15 2014
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