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Tendering Procedures in Lagos State under the Public Procurement Law 2011 Presented By Engr. Akin Onimole | February 13, 2013 GM/CEO, Public Procurement.

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Presentation on theme: "Tendering Procedures in Lagos State under the Public Procurement Law 2011 Presented By Engr. Akin Onimole | February 13, 2013 GM/CEO, Public Procurement."— Presentation transcript:

1 Tendering Procedures in Lagos State under the Public Procurement Law 2011 Presented By Engr. Akin Onimole | February 13, 2013 GM/CEO, Public Procurement Agency Saturday, April 25, 2015 1

2 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 Activities of the Agency are to be administered by a Board to be established by HE. The objective of Government in enacting the Law is to attain transparency, competitiveness, professionalism and guarantee integrity and public trust in the Public Procurement Procedures. Saturday, April 25, 2015 2

3 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/ MDA 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) Saturday, April 25, 2015 3

4 Benefits of the New System New Procurement System EconomyEfficiencyTransparency Fairness/ Competition Accountability Saturday, April 25, 2015 4

5 Pre-qualification Requirements for Bidding  Bidders should possess: 1.Legal capacity to enter into a contract 2.Professional and technical qualifications to carry out particular procurement 3.Equipment and other relevant infrastructure 4.Adequate and experienced personnel to perform the obligations of the contract Saturday, April 25, 2015 5

6 Pre-qualification Requirements for Bidding (Contd) 1.Financial capability 2.Have fulfilled all obligations to pay relevant taxes and adequate registration as a contractor in the State 3.Accompany every bid as may be required with necessary documents e.g. Bid Security, Affidavit of Disclosure disclosing whether any officer of the MDA and/ or PPA is a former/ present director of the company. Saturday, April 25, 2015 6

7 Grounds for Disqualification 1. Non-Compliance with any of the above principally Promise of a gift of money or any tangible item or employment in an attempt to influence any action of decision making of any procurement activity. If consultants/ contractors failed to perform or to provide due care in performance of any public procurement during the last three years prior to the commencement of the procurement proceedings. Section 43: A procuring entity shall disqualify a bidder who submits documents containing false information or documents forged for purposes of disqualification at any time, such disqualification shall be published in the State Official Gazette. Saturday, April 25, 2015 7

8 Currency of Tender All values in procurement documents shall be stated in Naira and where stated in foreign currency (for ICB Contracts) shall be converted to Naira using the exchange rate of CBN valid on the date of opening of tender. Saturday, April 25, 2015 8

9 Bid Opening Contractors who wish to attend bid opening are allowed to attend Bids to be opened in the public Register of names and addresses of each bidder, total amount of each bid, bid currency shall be taken Bids to be opened immediately following the deadline stipulated for the submission or any extension thereof NGOs, Civil Society, Professional Associations relevant to the procurement are allowed to observe each process Saturday, April 25, 2015 9

10 Bids Examination 1.This is to confirm that submission – Meet minimum eligibility criteria specified in the bid document – Have been duly signed – Are substantially responsive to the bidding documents – Are generally in order – The MDA shall give prompt notice of the correction to the contractor. At this point bid may be rejected on the following grounds Saturday, April 25, 2015 10

11 Bids Examination (cont’d) Bid not signed Bid received after date and time for submission stipulated Unacceptable sub-contracting Unacceptable price adjustment Unacceptable alternative design Any bid submitted at the wrong location Saturday, April 25, 2015 11

12 Bids Examination (cont’d) If bidder is not invited or pre-qualified to bid If there are qualifying clauses in the offer When a bid is rejected, a prompt notice shall be given to the contractor stating reasons for the rejection No other criteria or method shall be used except those stipulated in the solicitation document The objective of the bid evaluation shall be to determine and select the lowest evaluated responsive bid from bidders Saturday, April 25, 2015 12

13 Things to Know when Tendering for a Contract Critical Issues Sections of the PP Law Action Required by the Contractors Bid SecuritySection 35Ensures that adequate Bid Security from reputable financial institution as may be stated in the bidding document is submitted along with the bids. Submission of Bids Section 36Ensures that Bids are submitted at the appropriate place, time and date as specified in the Special Instruction to Bidders (SIB) in the bidding documents. No communication shall take place between the MDA and any contractor after the publication of a bid solicitation other than as provided in the Law – Officially in writing for clarifications (if any) Validity Period of Bids Section 39Make provision for adequate validity period of your bid as may be specified in the SIB in the bidding documents Clarifications from Bidders MDA may write to seek clarifications from bidders during Evaluation of Bids; It is the responsibility of the bidders to respond in writing within the specified timeframe. Saturday, April 25, 2015 13

14 Things to Know……. Critical Issues Sections of the PP Law Action Required by the Contractors Advance Payment/ Mobilization Fee Section 62Maximum of 20% Advance Payment may be granted under the new system. Advance payment above this amount shall be approved by the HE. Contractor shall submit Advance Payment Guarantee/ Bond as may be required by the MDA. Performance Security Section 63Contractor should be prepared to submit valid and adequate Performance Security issued by reputable financial institution as may be specified in the SIB. This is to ensure that the contractor shall perform to specifications. Contract Agreement Contractor should be prepared to fulfill all obligations prior to contract signatures. Notification of Award issued to the preferred bidder should not be taken as a Contract Agreement. Grounds for Disqualification Section 70 (c), (d), (e), (i) & (k) Apart from the Section of the Law, non-compliance with any of the critical issues highlighted above may lead to disqualification of the bidder. Saturday, April 25, 2015 14

15 Thank You Eko O ni baje oooo Saturday, April 25, 2015 15

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