JUL 2003

SINGAPORE’S SINGAPORE’S GOVERNMENT GOVERNMENT PROCUREMENT PROCUREMENT SYSTEMSYSTEM

CoverageCoverage Structure of government

procurement International cooperation Basic principles and objectives The GP process & procedures Legislation Bid challenge system

StructureStructure of GPof GP Singapore is a city state without sub-

central entities Government Procurement (GP) policies

centrally governed by MOF, in consultation with Government Procuring Entities (GPEs) i.e. ministries & statutory boards

Procurement fully decentralised to GPEs Auditor-General audits for compliance

International International CooperationCooperation

Sept 97 - Singapore acceded to the 1994 Agreement on Government Procurement (GPA) under the WTO

Member of the Government Procurement Experts Group (GPEG) under APEC

Bilateral Free Trade Agreements - GP is a chapter in the ANZSCEP, JSEPA, ESFTA, SAFTA & USSFTA

Basic Principles and Basic Principles and ObjectivesObjectives

Transparency

Overall value-for-money

Fair, open and competitive system

Strong stance against corruption

GP process OverviewGP process Overview Determine requirement Obtain project/fund approval Estimate the procurement value Determine the appropriate GP

proceduresSmall Value Purchases : Up to S$2,000Quotations : Up to S$50,000 Tenders : Above S$50,000

Invite offers Receive & Evaluate offers Obtain purchase approval

<$60,000 - Quotation Approving Authority<$1 million - Tenders Board A<$10 million - Tenders Board B>$10 million - Tenders Board C

Issue letter of award

Small Value PurchasesSmall Value Purchases Up to S$2,000 Minimal rules Purchase directly from supplier if

the price is known and is considered reasonable

Verbal/written quotations from several sources encouraged if price is not known

QuotationsQuotations Up to S$50,000 Purchase via written quotations 2 officers responsible for purchase

1st officer (QRO) invites, receives, evaluates and recommends

2nd officer (QAA) approves the purchase

At least 3 suppliers are invited to quote, unless approved by QAA

TendersTenders Above S$50,000 Purchase via Tenders 3 Tendering Procedures:

Open Tender (The norm)Selective TenderLimited Tender

Evaluation by Tender Evaluation Committee

Approval by relevant Tenders Board

Open TenderOpen Tender Most common method Tender Notices published

electronically in:The Government Electronic Business

System (GeBIZ) (http://www.gebiz.gov.sg)

Tender Price Schedules and Tender Awards also published in GeBIZ

Selective TendersSelective Tenders Suitable for complex projects Involves 2 stages :

1st Stage - Open Pre-qualification of interested suppliers (on technical merit)

2nd Stage - Qualified suppliers invited to tender

Pre-qualification notice, tender price schedules and award notices also published in GeBIZ

Limited TenderLimited Tender Limited no. of suppliers are invited to

tender Allowed in the following cases:

No responsive offer from earlier open or selective tender

Sole agency/sole supplierTo ensure compatibility with existing equipmentExtreme urgencyfor development of prototypes in the course of,

research, experiment, study or original development

GeBIZGeBIZ

Website (http://www.gebiz.gov.sg) Move towards electronic

procurement for the public sector Integrated one-stop electronic

business centre for suppliers to trade with the entire government

interface with financial systems

suppliers can view & submit quotation on-line and receive electronic PO and submit tender / quotation bids online

Legislation (WTO-GPA)Legislation (WTO-GPA)

Singapore’s approachGPA disciplines enforced by statuteChallenges adjudicated by a statutory entityCompliance with the GPA statutorily

enforceable before a statutory tribunal

Government Procurement Bill brought through Parliament in Nov 97

Government Procurement Act (GP Act) assented to by the President on 1 Dec 97

GP Act - Statute Subsidiary legislation

Make clear the GPA obligationsSet down certain rules related to challenge

proceedingsGP (Challenge Proceedings) Regulations,

Application Order and GP Regulations published in gazette

Available at http://statutes.agc.gov.sg

Bid challenge systemBid challenge system Basis for challenge

Set out the GPA obligations of procuring entities in the legislation

Similar to the U.K. approach

Government Procurement Adjudication Tribunal An entity set up by statute - statutory tribunalAdjudicating body for challenges under the

GPA

Similar to the Canada approach Tribunal handles complaint (bid challenge) of

non-compliance with the GPA The appointed Commissioner will conduct

hearings and decide on the outcome of the challenge

Judicial Review of the determination allowed

Thank YouThank You