(a)

secure prior written assurance of th

e Accounting Officer that funds are
available to pay in full and on time for those services;
(b)
obtain those services from among
firms pre-qualified by the Authority;
and
(
c)
follow the procedure laid down by the Authority in its guidelines.
41. Records of a procuring and disposing entity
(1) A procuring and disposing entity shall maintain records on its
procurement
and disposal proceedings for a period of se
ven years from the date of a decision to
terminate the procurement or disposal action, or the date of the contract
completion,
whichever comes later, except where a cont
ract is on going or is challenged, in
which case, the records shall be kept for
an additional year after the completion of
the contract or the settlement of the dispute, whichever comes earlier.
(2) The records of the procurement a
nd disposal process shall be open to
inspection by the Authority during working hours.
42. Defence and National Security Organs
(1) For the avoidance of doubt, the Defen
ce and National Security organs shall
comply with this Act subject to subsections (2) and (3).
(2) The Defence and National Security Organs shall manage their
procurement and disposal on the basis of a dual list, covering items subject to
open
and restricted procurement or disposal methods respectively.
(3) The Defence and National Security Organs shall agree annually with the
Authority on the category of restricted items
to be included on the restricted list and

on which restricted procurement or disposal methods, set out in Part VI, shall
apply
to each category of item on the restricted list.
(4) The restricted list of items shall be
subjected to classified audit and laid
before Parliament in the Annual Performance Evaluation Report.
P
ART

IVB
ASIC

P
UBLIC

P
ROCUREMENT AND

D
ISPOSAL

P
RINCIPLES

.
43. Application of the basic principles of public procurement and disposal
All public procurement and disposal shall be conducted in accordance with
the
basic principles set out in sections 44 to 54 of this Act.
44. Non-discrimination.
A bidder shall not be excluded from pa
rticipating in public procurement and
disposal on the basis of nationality, race, religion, gender or any other
criterion not
related to qualification, except to the extent provided for in this Act.
45. Trans-parency, accountability and fairness
All procurement and disposal shall be
conducted in a manner which promotes
transparency, accountability and fairness.
46. Competition
Subject to this Act, all procurement a
nd disposal shall be conducted in a manner
to maximize competition and achieve value for money.
47. Confidentiality

A procuring and disposing entity shall not

, except when required to do so by an
order of court, disclose any information where the disclosure would
(a)
amount to a breach of the law;
(b)
impede law enforcement;
(c)
prejudice legitimate commercial interests of the parties;
(d)
inhibit fair competition; or
(e)
in any way not be in the public interest,
until the successful bidder is notified of the award.
48. Economy and efficiency
All procurement and disposal shall be
conducted in a manner which promotes
economy, efficiency and value for money.
49. Ethics
All procurement and disposal shall be ca
rried out in accordance with the Codes
of Ethics that may be specified from time to time by the Authority.
50. Preference and reservation
(1) A procuring and disposing entity shall permit providers to participate in
the
procuring process without regard to nationality, except in cases in which the
procuring and disposing entity decides to
limit the participation on the basis of
nationality on grounds specified either in re
gulations made under this Act or by any
other competent authority.
(2) A procuring and disposing entity th
at limits participation on the basis of
nationality on grounds set out in sub-section (1) shall
(a)
obtain prior written approval of the Authority; and
(b)

include the exception to nationality

and the grounds relied on in the
bidding documents as well as in the
record of that procurement or
disposal process.
51. Open competitive bidding
A procuring and disposing entity shall
use open bidding as the preferred method
of procurement and disposal.
52. Best evaluated bids
A contract shall be awarded to the bidder with the best evaluated offer
ascertained on the basis of the methodology and criteria detailed in the
bidding
documents.
53. Public accessibility
Copies of the Act, regulations, Guide
lines, and forms made under this Act,
standard bidding documents and decisions of the Authority shall be made
accessible
to the public by the Authority.
54. Publication of opportunities and information
The Authority shall organize and maintain a system for the publication of
data
on public procurement and disposal opportun
ities, awards and any other information
of public interest that may be determined by the Authority.

57. Communication
(1) All communication between a procuring and disposing entity, bidder, or
provider, shall be in writing and communica
tion in any other form shall be referred
to and confirmed in writing.
(2) English shall be the language
of communication unless otherwise

specified by the Authority.

(3) Forms of communication shall be specified in the solicitation
documents.
58. Procurement and disposal planning
A procuring and disposing entity shall pl
an its procurement and disposal in a
rational manner and in particular shall
(
a)
avoid emergency procurement and disposal wherever possible;
(b)
aggregate its requirements wherever
possible, both within the procuring
and disposing entity and between pr
ocuring and disposing entities, to
obtain value for money and reduce procurement costs;
(c)
make use of framework contracts wherever appropriate to provide an
efficient, cost effective and flexible means to procure works, services
or supplies that are required continuously or repeatedly over a set
period of time;
(d)
avoid splitting of procurements or disposals to defeat the use of
appropriate procurement or disposal methods;
(
e)
integrate its procurement budget with its expenditure programme; and
(f)
integrate the disposal of assets
both listed and unlisted in its Asset
Register as well as in its income and expenditure budget.
59. Initiation of procurement or disp
osal requirements and confirmation of
funding
(1) All procurement or disposal requirements shall be documented prior to the
commencement of any procurement or disposal proceedings.
(2) Procurement or disposal shall only be initiated or continued on the

confirmation that funding, in the full amount

over the required period, is available or
will be made available at the time the contract commitment is made.
(3) All procurement or disposal requirements shall be approved by the
Accounting Officer prior to the commencem
ent of any procurement or disposal
process.
60. Statements of requirements.
All statements of requirements
(
a)
specifications;
(
b)
terms of reference;
(c)
scope of works;
(d)
drawings;
(e)
bills of quantities; or
(f) their equivalent as may be appropriate;
giving a correct and complete descripti
on of the object of the procurement or
disposal activity for the purpose of creating fair and open competition.
61. Best practice and industry standards
Procuring and disposing entities shall at
all times use industry standards defined
and codified by internationally recognised
trade associations and professional bodies
in the appropriate fields.
62. Solicitation documents
(1) A procuring and disposing entity shall use the standard documents
provided
by the Authority as models for drafting a
ll solicitation documents for each individual
procurement or disposal requirement.

(2) All solicitation documents shall

(a) detail the terms and conditions, which shall apply to any resulting
contract; and
(b) contain the General Conditions of
Contract, or a statement of the
General Conditions of Contract which shall apply.
(3) The General Conditions of Contr
act shall not be modified except
through Special Conditions inserted into the solicitation documents or
contract.
(4) A procuring and disposing entity
shall obtain the prior consent of the
Authority to place a contract against the General Conditions of Contract other
than
those contained in the standard solicitation documents provided by the
Authority.
63. Selection of bidders
All methods for the selection of bidders to
be invited to bid shall allow for fair
and equitable selection and ensure maximum competition.
64. Bidding period
The bidding period shall be sufficient to allow bidders to prepare and submit
their bids and shall not be reduced with the aim of limiting competition.
65. Clarification of solicitation documentation
(1) At any time prior to the deadline
for bid submission, a procuring and
disposing entity may, on its own initiativ
e, or in response to a request for
clarification by a bidder, modify the solicitation documents by issuing an
addendum.
(2) Where a procuring and disposing entity considers it necessary, it may
extend the closing date to enable bidders
to take the addendum fully into account
while preparing their bids.
(c) the concurrence of the Head of
the Procurement Unit, the Contracts
Committees and the Accounting Officer; and

(d) the complete record of each offer being kept by the procuring and
disposing entity for inspection and record, a copy of which
documentation shall be forwarded
by the Accounting Officer to the
Authority within seven working days.
Part VIMethods of Procurement and Disposal.
79. Choice of procurement or disposal method.
(
1) A procuring and disposing entity in respect of
(a)
each procurement activity shall use any
of the methods in sections 80 to
86; and
(b)
each disposal activity shall, in addition to the methods in sections 80 to
86, use any of the disposal methods in section 87 whenever the
circumstances demand it,
and their conditions for use specified in the Fourth Schedule.
(2) The choice of a procurement or disposal method shall first be approved
by the Contracts Committee.
(3) A procuring and disposing entity shall first obtain the consent of the
Authority before it uses any other method than the ones set out in this Part of
the
Act.
80. Open Domestic Bidding
(1) Except as provided for in this Act
or regulations made under this Act, a
procuring and disposing entity shall use the open domestic bidding method.
(2) Open domestic bidding is a procurement or disposal method which is
open to participation on equal terms by a
ll providers through advertisement of the
procurement or disposal opportunity.
(3) Open domestic bidding shall be
used to obtain maximum possible
competition and value for money.
(4) Nothing shall prevent a foreign or international bidder from
participating in open domestic bidding.

81. Open International Bidding

(1) Open international bidding is the procurement or disposal method which
is
open to participation on equal terms by all providers, through advertisement
of the
procurement or disposal opportunity and wh
ich specifically seeks to attract foreign
providers.
(2) Open international bidding is used to obtain the maximum possible
competition and value for money, where
national providers may not necessarily
make this achievable.
82. Restricted Domestic Bidding
(1) Restricted domestic bidding is the procurement or disposal method where
bids are obtained by direct invitation without open advertisement.
(2) Restricted domestic bidding is used to obtain competition and value for
money to the extent possible, where the
value or circumstances do not justify or
permit the open bidding procedure.
83. Restricted International bidding
(1) Restricted international bidding is
the procurement or disposal procedure
where bids are obtained by direct invita
tion without open advertisement and the
invited bidders include foreign providers.
(2) Restricted international bidding shall be used to obtain competition and
value for money to the extent possible where the value or circumstances do
not
justify or permit an open bidding method and
the short listed bidders include foreign
providers.
84. Quotations and Proposals
(1) Quotation and Proposals are simplifie
d procurement and disposal methods
which compare price quotations obtained from a number of providers.
(2) The Quotation and Proposal method shall be used to obtain competition
and value for money to the extent possible,

where the value or circumstances do not

justify or permit open or restricted bidding procedures.
(3) Quotations shall be used in wo
rks and supplies while Proposals shall be
used for services.
85. Direct Procurement or disposal
(1) Direct procurement or disposal is
a sole source procurement or disposal
method for procurement or disposal requi
rements where exceptional circumstances
prevent the use of competition.
(2) Direct procurement or disposal sh
all be used to achieve efficient and
timely procurement or disposal, where the circumstances do not permit a
competitive method.
86. Micro-Procurement or disposal
(1) Micro procurement or disposal is a
simple direct procurement or disposal
method which shall be used for very low value procurement requirements.
(2) Micro procurement or disposal sh
all be used to achieve efficient and
timely procurement where the value does not justify a competitive procedure.
87. Other methods of disposal of public assets
(
1) Disposal of public assets may also be by way of the following methods
(a)
public auction where the professional valuation of an individual asset or
lot does not exceed the value stated in the guidelines;
(b)
direct negotiation where disposal
on the open market would raise legal
or human rights issues and the consideration received is not less than
the professional valuation;
(c)
destruction of assets where there is no residual value or no grounds of
national security or public interest;
(d)

conversion or classification of assets into another form for disposal by

sale such as scrap metal or land fill;
(e)
trade-in; and
(f)
transfer to another procuring and disposing entity.
(2) The procedures for the methods in subsection (1) shall be prescribed by
regulations made under this Act.
88. Selection of Providers
The detailed procedures for selection
of providers shall be prescribed by

DEFINITION of 'Bidder'
The party offering to buy an asset from a seller at a specific price. A bidder can be an individual
or organization, and the potential purchase can be part of a multiparty transaction or an auction.
In most cases, the party selling the asset chooses the bidder who offers the highest price.
Read more: Bidder Definition |
Investopediahttp://www.investopedia.com/terms/b/bidder.asp#ixzz4KzIWPfQq
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The Procurement and Bidding Process

The following provides a simplified view of the procurement process used by the University. As
shown, the process begins with the development of a requisition by the using department and
ends with payment to the vendor/supplier.
1. Sourcing manager reviews department needs and determines appropriate acquisition
method.

2. Sourcing manager prepares bid invitations

3. Vendor/supplier receives bid invitation.
4. Vendor/supplier completes bid request and returns to Procurement.
5. Procurement makes award to lowest, responsive bidder.
6. Purchase Order sent to successful vendor/supplier.
7. Vendor/supplier delivers product to user department and sends the invoice to the
University's Accounting department.
8. Users department receives goods and sends receiving report to the Accounting
Department.
9. State of Nebraska, Department of Administrative Services, sends warrant or ACH
payment.
10. Vendor/supplier receives payment for goods/services delivere

Setting an automatic bid can free up time for other, more important tasks.

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If you run a small business, you might engage in the bidding process regularly. Whether you are
the one accepting the bids or you have to bid on jobs, the basic steps are typically the same.
Completing the bidding process in the proper manner could be the difference between getting a
bid or looking for work.
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Specifications
The first step in the bidding process deals with coming up with the specifications for the job. The
company or customer looking for bids has to develop specifications for the bidding process. For
example, if the customer needs a building constructed, a schematic or blueprints must be
developed first. All of the details for the entire project must be outlined in the documentation.

Request for Bids

After the details of the project have been developed, the customer must request that bids be
made. This can involve sending out invitations to bid on projects and posting the opportunity
online. In some cases, the client will only request bids from a pre-selected list of contractors. In
other situations, the bid opportunity may be open to anyone who qualifies to bid on it.

Bidding
After the information about the project has been distributed to contractors, the bidding process
begins. The bidding process can differ, depending on the rules set by the client. In some cases,
sealed bids will be submitted and the customer will evaluate them. In other cases, a more
informal bidding process will be involved in which contractors simply give a total amount that
they can do the job for.

Reviewing the Bids

The customer will typically set a deadline on when the last bids will be accepted. Once that
deadline is reached, the customer will begin reviewing the bids. The length of time that it takes to
review the bids could vary, depending on the number of bids received.

Awarding the Contract

After the bids have been thoroughly reviewed, the customer will award the contract to one
bidder. In most cases, the bidder with the lowest bid wins. In some situations, the bidder will
award the contract not only on price but other factors as well. For instance, the customer may be
inclined to go with a more reputable provider or with those where a prior relationship exists.

Public and Project Procurement for Novice and Aspiring Procurement Practitioners
Steps in the Public Procurement Pro

In most writings on public procurement the procurement process is considered to

include contract administration. On the other hand, contract administration and
contract management are treated as synonymous. To add to the confusion,
sometimes the term contracting is also thrown in, such that as practitioners we are
left with an enormous confusion on these terms.

To dispel some of the confusion, the public procurement process, as will be

explained here, ends with contract award, and anything after contract award is
considered contract administration. In future writings, the reason for this clear
division will be explained in detail. This does not in anyway lessen the importance of
contract administration. As a matter of fact, the purpose of making a clear
distinction is to give more emphasis to the importance of contract administration,
and also to clarify areas of responsibility.

We find additional confusion in other writings, even procurement manuals, were the
procurement process is said to include inventory control and management, storage
and distribution, and even disposalall functions which are more appropriately
classified as part of logistics, and even supply chain management, but not
necessarily procurement.

So, in line with the above, the steps in the public procurement process are those
listed below and they will be addressed in more detail in future posts:

1. Requirement identification
2. Determining procurement method
3. Procurement planning and strategy development
4. Procurement requisition processing
5. Solicitation documents preparation and publication
6. Pre-bid/proposal meeting and site visit
7. Bid/proposal submission and opening
8. Bid/proposal evaluation
9. Contract award recommendation
10. Contract negotiations
11. Contract Award (signing)

After completing the above steps, those relevant to contract administration will also
be addressed in detail.

ublic procurement or acquisition is the procedure by which governments or other bodies

governed by public law purchase goods and services with taxpayer money.
Suppliers should be aware the constraints (=limitations or restrictions) under which these
government bodies operate. Indeed, public procurement officers typically have strict parameters
within which they must work. In the EU, most of these parameters are determined by EU Rules
and Directives.
Simple procurement involves the regular purchase of ordinary items, while complex
procurement often entails turn-key projects (=projects completed by the supplier and turned
over to a buyer ready-to-use) or finding long-term partners that fundamentally tie two entities
together. Today, many contracting entities engage in so-called green public procurement (GPP)
and consider environmental issues when tendering (=making or submitting a bid) for goods or
services.
The fundamental principles of European Community law with regard to public procurement are
the principles of non-discrimination, equal treatment, transparency, proportionality, and mutual
recognition. Consequently, there are strict, harmonised rules for the public procurement process
in the EU.

The principle of non-discrimination prohibits all discrimination based on nationality. No

contracting entity may, for example, give preference to a local company simply because it is
located in the municipality. Similarly, the principle of equal treatment requires that all
suppliers be treated equally. All suppliers involved in a procurement procedure must, for
example, be given the same information at the same time. The principle of transparency
requires the procurement process to be open and predictable. The principle of proportionality
dictates that any qualifications and/or subject matter requirements must not be disproportionate
or excessive and must have a natural relation to the goods or services being procured. Finally, the
principle of mutual recognition means that documents and certificates issued by the
appropriate authorities in one EU Member State must be recognised and accepted in other
Member States.
In keeping with the principle of transparency, all calls for tender over the relevant thresholds
(=minimum requirements) must be published in the EUs Official Journal and are accessible free
of charge via the Tender Electronic Daily (TED) webpage.
Contract Law

Introduction to Contract Law 1

Introduction to Contract Law 2

Contract Remedies 1

Contract Remedies 2

Non-Competition and Confidentiality

Guarantees, Indemnities, Representations and Warranties

Assignment and Third Party Rights

Conditions and other Contract Terms

Parol Evidence and Implied Terms

Performance

Standard Forms and Advertised Offers

Termination

Public Procurement

o Governing law and principles

Public procurement: governing law and principles (1)

Public procurement: governing law and principles (2)

Public procurement: governing law and principles (3)

Public procurement: governing law and principles (4)

o The bidding process

o Public procurement: An extract from an EU directive
o Listening: A discussion between two lawyers

Contract Interpretation

Licence Agreements

Final Examination

bid documents

Definition
Documents required to be submitted in response to an invitation to bid (ITB). These
include the prescribed bid form, drawings, specifications, time lines, charts, price
breakdowns, etc. Bids not accompanied by all the required documents are
considered incomplete bids, and are usually automatically rejected. Also called
bidding documents.

Read more: http://www.businessdictionary.com/definition/biddocuments.html#ixzz4KzPdO4gx

3.10. Contract Management
3.10.1. Introduction

The terms contract management and contract administration are often used
synonymously. However, contract management is commonly understood as a
broader and more strategic concept that covers the whole procurement cycle
including planning, formation, execution, administration and close out of a contract
and goes beyond the day to day administrative activities in the procurement
cycle. Because it is difficult to draw the line between the two terms and because the
majority of the UN organizations commonly use contract management when
describing the contract administration phase, contract management will be used
in this Unit.

The purpose of contract management is to ensure that all parties to the contract
fully meet their respective obligations as efficiently and effectively as possible,
delivering the business and operational outputs required from the contract and
providing value for money. It also protects the rights of the parties and ensures
required performance when circumstances change.

Contract management is similar to project management. Each contract is a miniproject. It has a unique goal, consumes resources, has a beginning and end date,
and requires coordination and planning of relevant activities, as well as
documentation in a contract file throughout the process.

Contract management includes monitoring and documenting performance.

Depending on the organization and goods or services procured, daily/regular
monitoring of the contract may be primarily the responsibility of the requisitioner.

In all situations, the procurement officer is responsible for following up and ensuring
that the actions of the supplier and the UN organization are in line with the
contractual responsibilities, that the contract is amended to reflect agreed changes
in circumstances, and that any claim or dispute is resolved amicably according to
the terms of the contract.

Payment for the goods or services should be handled independently from the
procurement function, while contract close out again is the responsibility of the
procurement officer.

The stages of contract management are intended to ensure that the parties work
together to achieve the objectives of the contract. Contract management is based
on the idea that the contract is an agreement, a partnership with rights and
obligations that must be met by both sides to achieve the goal. Contract
management is aimed not at finding fault, but rather at identifying problems and
finding solutions together with all contracting parties involved.
3.10.2. Process

The flowchart below shows each of the stages in the contract management process.
3.10.3. Enabling contract management

In this phase the procurement officer ensures that there is a shared understanding,
distribution of responsibilities and systems and procedures in place to monitor and
control contract performance and effectively deal with potential changes and
disputes.

The supplier should be considered a member of the project team, with all members
striving for success. Upon signature of the contract, several steps should be taken
to ensure that roles, responsibilities and obligations are clearly allocated among the
parties and proper systems and procedures are put in place to monitor performance
and keep efforts well focused:
Contract file and documentation

The contract file should be opened by the procurement officer, and the contract
should be carefully analysed, taking note of the rights and obligations of each party.
Any issues requiring clarification or change of the contract should be fully
documented in this file. (The requisitioner will normally have a separate file, with
copy of the contract, as part of the project management files.)

Although practice may vary among organizations, the following documents normally
are part of the contract file:

original of contract and all amendments

all related communication with the supplier (electronic, internal and external
correspondence)

copy of the winning offer

award documents

minutes of meetings

notes of phone conversations

reports

pictures, video films

proof of receipt of goods

proof of payment

supplier assessment report

acceptance report from requisitioner/client.

Other related documents preceding the contract finalization, such as Requisition,

solicitation document, offers received, evaluation report, etc. are usually part of
other related files.

It is important to carefully document contract performance for the following

reasons:

It constitutes proof of performance.

It constitutes evidence in the event of disputes.

Its content forms the institutional memory.

It is used for audit purposes.

Contract analysis

As soon as possible, the responsible UN staff member (programme manager,

requisitioner, or procurement officer) should analyse the terms and conditions of the
prospective contract and develop a contract work breakdown structure that reflects
both the technical and administrative aspects of contract performance. The
requisitioner and the procurement officer should reach agreement on intermediate
performance goals based on contract performance obligations. Intermediate goals
will enable the UN organization to measure progress, detect significant performance
variances, take corrective action, and follow up.
Pre-performance conference