The Procurement Guidelines 2006 of Sri Lanka are a comprehensive set of rules and principles issued by the National Procurement Agency (NPA). These guidelines aim to provide a uniform framework for government procurement to ensure transparency, efficiency, fairness, and competitiveness. The guidelines are primarily intended for all public institutions involved in procurement activities and cover goods, services, and works procurement.
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Procurement Guidelines 2006
Here’s a summary of the key features of the Procurement Guidelines 2006:
1. Scope and Application
The guidelines apply to all government ministries, departments, provincial councils, statutory bodies, and other public sector organizations engaged in public procurement. It covers:
- Procurement of Goods and Services.
- Procurement of Works (construction and civil works).
- Consultancy Services.
2. Procurement Principles
The guidelines emphasize the following principles:
- Transparency: All procurement processes should be open and transparent to prevent malpractice.
- Accountability: Public officers involved in procurement are accountable for ensuring the proper use of public funds.
- Fairness and Equality: All suppliers should have an equal opportunity to compete, without bias or favoritism.
- Value for Money: Procurement decisions must aim at obtaining the best combination of quality and cost.
- Competition: Wherever possible, competition should be promoted to ensure the most efficient outcome.
3. Procurement Procedures
The guidelines lay out procedures that must be followed for different procurement methods, depending on the value and complexity of the procurement.
a. Open Competitive Bidding (OCB)
- This is the default method for high-value procurements.
- The process involves public advertisement, allowing a wide range of suppliers to bid.
- The bids are evaluated based on pre-specified criteria, including both technical and financial factors.
b. Limited Bidding
- This method is used in cases where only a few suppliers can provide the required goods or services (e.g., specialized products or services).
- Bidding is restricted to a pre-qualified list of suppliers.
c. Direct Contracting (Single Sourcing)
- Used in special circumstances, such as for proprietary goods, or in emergencies where time does not allow for a competitive bidding process.
- Requires justification and approval from the appropriate authorities.
d. Shopping (Request for Quotations – RFQ)
- Suitable for low-value procurements.
- Involves requesting quotations from a few suppliers, and the contract is awarded to the supplier offering the best combination of price and quality.
e. National and International Competitive Bidding
- National Competitive Bidding (NCB): Used when procurement is limited to domestic suppliers, suitable for most routine procurements.
- International Competitive Bidding (ICB): Used for large-scale procurements that require broader participation, including international suppliers.
4. Procurement Methods
The Procurement Guidelines outline several procurement methods, based on the value of the procurement:
- Goods: General or specialized products, office supplies, etc.
- Works: Infrastructure development projects like construction, roadworks, etc.
- Consultancy Services: Professional services like architecture, engineering, legal services, etc.
5. Procurement Committees
The guidelines define a system of Procurement Committees to oversee and manage the procurement process:
- Technical Evaluation Committee (TEC): Reviews and evaluates bids for technical compliance with the requirements.
- Procurement Committee: Responsible for the overall management of the procurement process, including approving the award of contracts.
- The composition of these committees is determined by the value of the procurement and the complexity of the project.
6. Bidding Process
The guidelines detail the procedures for conducting the bidding process, including:
- Preparation of Bidding Documents: Clear documentation is essential for ensuring that bidders understand the requirements.
- Bid Submission: Bids must be submitted in sealed envelopes by a specified deadline.
- Bid Opening: Public bid opening sessions ensure transparency.
- Bid Evaluation: Bids are evaluated on the basis of both technical criteria and cost. The lowest evaluated substantially responsive bid is typically selected.
- Contract Award: The contract is awarded to the most favorable bidder, based on the evaluation report.
7. Procurement Plan
All public entities are required to prepare an Annual Procurement Plan to ensure a systematic and efficient procurement process. This includes:
- Anticipated procurement activities for the year.
- Estimated timelines and budgets.
- Methods of procurement.
8. Contract Management
The guidelines also address the management of contracts after award:
- Contract Supervision: The performance of the contractor or supplier must be monitored to ensure that they meet the contractual obligations.
- Variation and Amendments: Any changes to the contract must be formally agreed upon by both parties.
- Dispute Resolution: Mechanisms for resolving disputes between the procuring entity and the supplier or contractor.
9. Appeals and Complaints Mechanism
Suppliers who feel that they have been unfairly treated in the procurement process can lodge complaints. These complaints must be reviewed and addressed by the relevant authorities.
10. Ethical Considerations and Conflicts of Interest
The guidelines emphasize the importance of ethical conduct during procurement. Public officials involved in procurement must avoid any situation that could lead to a conflict of interest.
11. Audit and Oversight
- All public procurements are subject to internal and external audits to ensure compliance with the guidelines.
- The National Procurement Commission (NPC) plays a key role in monitoring procurement processes and ensuring that guidelines are followed.
12. Thresholds for Procurement
The guidelines provide thresholds for when specific procurement methods should be used, depending on the value of the procurement. For example, the use of National Competitive Bidding (NCB) or International Competitive Bidding (ICB) may depend on whether the project cost exceeds a certain limit.
