National Contracts Commission
2001 May 30
GOVERNMENT OF JAMAICA
HANDBOOK OF PUBLIC SECTOR
PROCUREMENT PROCEDURES
(MAY, 2001)
National Contracts Commission
17 Knutsford Boulevard
Kingston 5
Jamaica, West Indies
http://www.ocg.gov.jm
National Contracts Commission
2001 May 30
Acknowledgements
This HANDBOOK OF PUBLIC SECTOR PROCUREMENT PROCEDURES is the
definitive document on the subject as of 1 May 2001. It updates and replaces all previous
procedural guidelines and memoranda issued on the subject of public sector procurement.
The Handbook will have to be updated with time and usage. Contributions toward such
updates should be addressed to the Chairman of the National Contracts Commission.
The HANDBOOK was prepared with the assistance of a Working Group consisting of
representatives of the following private and public sector organizations:
§
§
§
§
§
§
§
§
§
§
§
§
§
§
§
The Ministry of Finance and Planning
The Incorporated Masterbuilders Association of Jamaica
The Professional Societies Association of Jamaica
The Joint Consultative Committee for the Building and
Construction Industry of Jamaica
The Ministry of Transport & Works
The Jamaican Institute of Architects
The Port Authority of Jamaica
The Ministry of Education & Culture
The Airports Authority of Jamaica
The Jamaica Institution of Engineers
The Jamaican Institute of Quantity Surveyors
The Ministry of Health
The National Water Commission
The Urban Development Corporation
The National Contracts Commission
The National Contracts Commission wishes to thank all those persons and organizations
who have participated in preparing the HANDBOOK, whether directly in the Working
Group or by commenting on it during the drafting stages.
The HANDBOOK is now distributed for USE. It is the guide to all persons responsible
for public sector procurement actions. It is the reference document for all procurement
by public sector entities.
Any comments should be addressed to the NATIONAL CONTRACTS COMMISSION.
CHAIRMAN,
NATIONAL CONTRACTS COMMISSION
National Contracts Commission
2001 May 30
-
INTRODUCTION
1
SECTION 1
1.1
PURPOSE AND AUTHORITY OF ISSUANCE
1
1.2
SCOPE OF APPLICATION
2
1.3
ADMINISTRATION OF THE HANDBOOK OF PUBLIC SECTOR
1.4
PROCUREMENT PROCEDURES
DEFINITIONS
2
3
THE PUBLIC SECTOR PROCUREMENT SYSTEM
5
1.5
1.5.1
1.5.1.1
1.5.1.2
1.5.2
O VER SIGHT R ESPONSIBILITIES
5
Ministry of Finance and Planning
Office of Th e Co ntractor General
F UNC TIONA L R ESPONSIBILITIES
5
5
5
1.5.2.1
1.5.2.2
1.5.2.3
1.5.2.4
1.5.2.5
1.6
National Contracts Commission
National Contracts Commission Sector Committees
5
6
Procurement Committees
National Contact Point
Accounting Officers
CODE OF CONDUCT
-
6
6
6
7
GENERAL PROCEDURES
1
SECTION 2
2.1
2.1.1
PROCUREM ENT PLANNING
1
G ENERAL
1
2.1.2
P ROC URE ME NT P LANS
1
2.1.3
P ROC URE ME NT M ETHODS A ND C ONDITIONS F OR T HEIR U SE
1
2.1.3.1
2.1.3.2
2.1.3.3
2.1.3.4
2.1.4
Open Tender
Selective Tender
Limited Tender
Sole Source or Direct Contracting
T HE L EASE O R P URCHASE D ECISION
1
2
2
2
3
2.1.4.1
2.1.4.2
2.1.5
Purchase
Lease
E XTERN AL F UNDING A GENCIES
3
3
3
2.2
FRAMEWORK AGREEMENTS
4
2.3
EXPENDITURE AUTHORITIES
4
2.4
2.4.1
COMPETITION REQUIREMENTS
5
2.5
2.5.1
PUBLICATION REQUIREMENTS
IMP ARTIALITY
5
5
INFORMATION D ISCLOSURE T O T HE P UBLIC
5
2.5.2
P UBLIC A CCESSIBILITY O F P ROC URE ME NT D OCUMENTATION
5
2.5.3
P UBLICIZING P ROC URE ME NT O PPORTUNITIES
5
2.5.4
P UBLIC N OTICE O F C ONTRA CT A WARDS
6
2.6
2.6.1
CONTRACT OR REGISTRATION AND CLASSIFICATION
6
D EBARMENT, S USPENSION A ND INELIGIBILITY
PROCUREMENT PROCEDURES HANDBOOK
6
TABLE OF CONTENTS
PAGE I
National Contracts Commission
2001 May 30
2.7
OVERSEAS PROCUREMENT OR FOREIGN PURCHASES
2.8
REJECTION OF ALL TENDERS, PROPOSALS, OFFERS OR
2.9
2.9.1
2.9.2
2.10
2.10.1
2.10.2
2.11
2.11.1
7
QUOTATIONS
SUSTAINABLE DEVELOPMENT
8
8
G REEN P ROCUREMENT
8
O CCU PATIONAL R IGHTS A ND F R E ED O M S
8
RECORD OF THE PROCUR EMENT PROCEEDINGS
9
M IN IM U M S TANDARD O F R ECORDED INFORMATION
9
L IMITATIONS O F L IABILITY
9
REPORTING REQUIREMENTS
10
N ATIONAL C ONTRACTS C OMMISSION (N CC )
10
2.11.2
M INISTRY O F F INANCE A ND P LANNING
10
2.11.3
P ORTFOLIO M INISTRY
10
2.12
2.12.1
DISPUTE RESOLUTION
11
R IGHT T O R EVIEW
11
2.12.2
R E VIE W B Y P ROCUR ING E NTITY
11
2.12.3
A DMINISTRATIVE A PPEAL
11
2.12.4
J UDICIAL R EVIEW
12
-
PROCUREMENT OF CONSTRUCTION WORKS
1
SECTION 3
3.1
CONTRACT VALUE LESS THAN J$250,000
1
3.2
CONTRACT VALUE FROM J$250,000 TO LESS THAN J$1M
1
3.3
CONTRACT VALUE FROM J$1M TO LESS THAN J$4M
2
3.4
CONTRACT VALUE FROM J$4M TO LESS THAN J$15M
2
3.5
CON TR ACT VALUE FROM J$15M TO LESS THAN
2
3.6
THE INTERNATIONAL CONTRACT VALUE THRESHOLD FOR WOR KS
CON TR ACT VALUE EQUAL TO OR GREAT ER T HAN
THE INTERNATIONAL CONTRACT VALUE THRESHOLD FOR WOR KS
2
-
PROCUREMENT OF GOODS
1
SECTION 4
4.1
4.1.1
GENERAL
1
4.2
CONTRACT VALUE LESS THAN J$250,000
1
4.3
CONTRACT VALUE FROM J$250,000 TO LESS THAN J$1M
2
4.4
CONTRACT VALUE FROM J$1M TO LESS THAN J$4M
2
4.5
CONTRACT VALUE FROM J$4M TO LESS THAN J$15M
2
4.6
CONTRACT VALUE FROM J$15M TO LESS THAN THE
3
4.7
INTERNATIONAL CONTRACT VALUE THRESHOLD FOR GOODS
CONTRACT VALUE EQUAL TO OR GREATER THAN THE
INTERNATIONAL CONTRACT VALUE THRESHOLD FOR GOODS
3
A WARD E VALUATION C RITE RIA
PROCUREMENT PROCEDURES HANDBOOK
1
TABLE OF CONTENTS
PAGE II
National Contracts Commission
2001 May 30
PROCUREMENT OF SERVICES
1
SECTION 5 5.1
5.1.1
5.1.2
GENERAL CONSULTING SERVICES
1
G ENE RAL P ROCEDURES
1
T HE S ELECTION P ROCESS
1
5.1.2.1
5.1.2.2
5.1.2.3
Terms of Reference (TOR)
Cost Estimate (Bud get)
Advertising Guidelines
1
2
2
5.1.2.4
5.1.2.5
5.1.2.6
5.1.2.7
5.1.2.8
Minimum Con tent of the Notice Seeking E xpressions of Interest
Selection Criteria for Short-List of Consultants
Preparation and Issuance of the Request for Proposals (RFP)
Clarification / Modification of the RFP
Receipt of Proposals
3
3
3
5
6
5.1.2.9
5.1.2.10
5.2
5.3
5.3.1
Evaluation of Technical Proposals: Quality Considerations
Evaluation of Financial Proposals: Cost Considerations
PROFESSIONAL INDEMNITY INSURANCE
OTHER SERVICES
6
7
9
10
G ENERAL
10
5.3.2
C ONTRA CT V ALUE U NDER J$250,000
10
5.3.3
C ONTRA CT V ALUE F R O M J$250,000 T O L ESS T HAN J$1 M
10
5.3.4
C ONTRA CT V ALUE F R O M J$1 M T O L ESS T HAN J$4 M
10
5.3.5
C ONTRA CT V ALUE F R O M J$4 M T O L ESS T HAN J$15 M
11
5.3.6
C ONTRA CT V ALUE F R O M J$15 M T O L ESS T HAN T HE
INTERN ATIONAL C ONTRA CT V ALUE T HRESHOLD F OR S ERVICES
C ONTRA CT V ALUE E QUA L T O O R G REATER T HAN T HE
11
5.3.7
INTERN ATIONAL C ONTRA CT V ALUE T HRESHOLD F OR S ERVICES
11
-
TENDERING PROCEDURES
1
SECTION 6
6.1
6.1.1
TENDER DOCUMENTS
1
D ESCRIPTION O F T HE W ORKS , G OODS A ND /O R S ERVICES
1
6.1.1.1
6.1.1.2
6.1.2
Reference to Specific Indicators
Metrication Requirement
S OURCE O F F UNDS
1
1
1
6.1.3
E LIGIBILITY R EQU IREM ENTS
1
6.1.4
C ONTRACTOR P RE -Q UALIFICATION
2
6.1.4.1
6.1.4.2
6.1.5
Pre-qualification Before Tender
The T wo Envelope System
C OST O F T ENDERING
2
2
3
6.1.6
L ANGUAGE O F T ENDERING
3
6.1.7
S ITE V ISIT
3
6.1.8
T ENDER D OCU ME NTS
3
6.1.9
C LARIFICATION O F T ENDER D OCU ME NTS
4
6.1.10
A ME NDM ENT O F T ENDER D OCU ME NTS
4
6.1.11
P REPARATION O F T ENDER
4
PROCUREMENT PROCEDURES HANDBOOK
TABLE OF CONTENTS
PAGE III
National Contracts Commission
2001 May 30
6.1.12
T ENDER P RICES
6.1.13
A DVANCE P AYM ENTS
5
6.1.14
T ENDER V ALIDITY
5
6.1.15
T ENDER S ECU RITY
5
6.1.16
S IGNING O F T ENDER
6
6.1.17
T ENDER S UBMISSIONS
6
6.1.18
D EADLINE F OR S UBMISSION O F T ENDERS
6
6.1.19
L ATE T ENDERS
6
6.1.20
M ODIFICATION A ND W ITHDRA WA L O F T ENDERS
7
6.1.21
T ENDER O PENING
7
6.1.22
D ETERMINATION O F R ESPONSIVENESS
7
6.1.23
C ORRECTION O F E RRORS
7
6.1.24
C LARIFICATION O F T ENDERS
7
6.1.25
E VALUATION A ND C OMPARISON O F T ENDERS
8
6.1.26
A LTERNATIVE T ENDERS
8
6.1.27
A WARD C RITE RIA
8
6.1.28
G OJ R IGHT T O R EJECT A NY O R A LL T ENDERS
8
6.1.29
N OTIFICATION O F A WARD
8
6.1.30
P ERFORMANCE S ECU RITY
8
6.1.31
S IGNING O F C ONTRACT
9
6.1.32
T AX C OMPLIANCE C ERTIFICATES
9
6.1.33
A DVANCE P AYM ENTS
9
6.1.34
6.2
6.2.1
6.2.2
5
INSTRUCTIONS T O T ENDERERS
9
CONTRACT DOCUMENTS
10
G ENERAL
10
M ATTERS T O B E C OVERED B Y D OCU ME NTS
10
6.2.2.1
6.2.2.2
6.2.2.3
Contract Sum
Description of the Works, Goods or Services
Location of the Works, Goods or Services
10
10
10
6.2.2.4
6.2.2.5
6.2.2.6
10
10
6.2.2.7
Contract Period
Arrangements when Delivery is Late
Arrangements when Delivery is not in Accordance with
the Description of Works, Goods or Services
Termination of Contract
11
11
6.2.2.8
6.2.2.9
6.2.2.10
6.2.2.11
6.2.2.12
Source of Funds
Language of Contract
Site Visit
Programme
Contract Prices
11
11
11
11
11
6.2.2.13
6.2.2.14
6.2.2.15
6.2.2.16
6.2.2.17
Advance Paymen ts
Correction of Errors
Performance Security
Tax Compliance Certificates
Con tractor’s Levy
12
12
12
12
12
PROCUREMENT PROCEDURES HANDBOOK
TABLE OF CONTENTS
PAGE IV
National Contracts Commission
2001 May 30
6.2.2.18
6.3
Dispute Resolution
APPROPRIATE CONTR ACTS FOR VARIOUS TYPES
13
OF PROCUREMENT
14
6.3.1
W ORKS C ONTRA CTS
14
6.3.2
S ERVICE C ONTRA CTS
14
6.3.3
G OODS C ONTRA CTS
14
6.4
6.4.1
SPECIAL CONDITIONS TO BE INCLUDED
6.5
6.5.1
PRE-TENDER ACTIONS
A PPOINTM ENT O F P ROC URE ME NT P LANNER
15
6.5.2
A DVE RTISEME NTS
15
6.5.2.1
6.5.2.2
6.5.2.3
6.5.3
6.5.3.1
6.5.3.2
6.5.3.3
6.5.3.4
14
F LUCTUATIONS C LAUSES
14
15
National Advertisement
15
International Advertisement
Matters to be Covered in the Invitation to Tender
T ENDER D OCU ME NTS
15
15
16
Quantities Required
Costs and Charges for Docu ments
16
16
Tender Period
Tender Document Issue Form
TENDER ACTION
16
16
17
T ENDER D OCU ME NT ISSUE F ORM
17
6.6.2
T ENDERERS ’ Q UERIES
17
6.6.2.1
6.6.2.2
6.6.2.3
6.6.2.4
6.6.3
Form of Queries
Con fidentiality
Answering Queries
Effect of Late Answers to Queries
E XTENDING T HE T ENDER P ERIOD
17
17
17
18
18
6.6.4
T HE C OMPARABLE E STIMATE
18
6.6
6.6.1
6.7
6.7.1
RECEIVING TENDERS
19
T ENDER B OX
19
6.7.2
R ECORDING
19
6.7.3
T ENDER C LOSING T IM E
19
6.8
6.8.1
OPENING TENDERS
20
T ENDER C OMMITTEE
20
6.8.2
T ENDER R ECE IVAL F ORM
20
6.8.3
C OMPARABLE E STIMATE
20
6.8.4
P ROCEDURE A T O PENING
20
6.9
6.9.1
TENDER EVALUATION
22
G ENERAL
22
6.9.2
E VALUATORS
22
6.9.3
ISSUES T O B E A DDRESSED
22
6.9.4
R ECOMMENDATION F OR A WARD
23
6.9.5
R EPO RT T O T HE N CC S ECTOR C OMMITTEER
23
PROCUREMENT PROCEDURES HANDBOOK
TABLE OF CONTENTS
PAGE V
National Contracts Commission
2001 May 30
6.9.6
6.9.7
6.10
6.10.1
R EPO RT T O P ORTFOLIO M INISTRY
24
T ENDER V ALIDITY P ERIOD
24
CONTRACT AWARD
25
A UTHORITY T O A CCE PT T ENDER
25
6.10.2
L ETTER O F A CCEPTANCE
25
6.10.3
F ORM AL S IGNING O F C ONTRACT
25
6.10.4
R ETURN O F U NSU CCE SSFU L T ENDERS
25
PROCUREMENT PROCEDURES HANDBOOK
TABLE OF CONTENTS
PAGE VI
National Contracts Commission
2001 May 30
APPENDICES
APPENDIX 1
FORMS
PRS – 1
Tender Issue Form
Tender Receival Form
NCC Transmittal Form
APPENDIX 2
STANDARD CONTRACTS
Procurement of Goods
Procurement of (consulting) Services
Procurement of Services
Appendix 3
PROCUREMENT PROCEDURES HANDBOOK
Miscellaneous
TABLE OF CONTENTS
PAGE VII