Contractor General Tightens Scrutiny of Government Tendering

The Office of the Contractor General is tightening scrutiny over the use of selective and limited tendering by government entities. In a circular dated July 23, Contractor General Maria Arthurs says her office has observed an increase in the use of the two procurement methods by ministries and departments.  The circular, which was also sent to local governments, statutory bodies and state-controlled companies, stresses that open tendering should remain the normal procedure. Selective and limited tendering should only be used when properly justified under the Finance and Audit Reform Act.  Government entities seeking to use either method must now submit a detailed written justification identifying the specific provision of the law being relied upon, explaining how the procurement qualifies and providing supporting evidence. The Contractor General warns that simply describing a purchase as urgent or saying it needs to be expedited will not be enough. Submissions that are not permitted under the law or are not adequately supported will be returned.  Under selective tendering, at least three qualified suppliers, contractors or consultants must ordinarily be invited to compete. Ministries must also explain how those bidders were selected and demonstrate that fairness, competition and non-discrimination were maintained.  Limited tendering, which may involve contracting without the usual competitive process, will only be allowed in specific circumstances. These include extreme and unforeseen urgency, national security, exclusive technical rights, compatibility with existing systems or cases in which an earlier tendering exercise failed to produce a suitable bid.  The circular also warns ministries that late planning or internal delays do not, by themselves, justify bypassing open tendering. Government entities are being directed to begin procurement early enough to accommodate approvals, evaluation, review by the Contractor General and the execution of contracts. All ministries and departments have been instructed to comply fully with the circular and the relevant provisions of the law.