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Procurement Policy Office(Established under section 4 of the Public Procurement Act 2006)

Ref: UG/SBD20/10/08

USER GUIDE

VOLUME I

Procurement Policy Office

Ministry of Finance and Economic Empowerment

Port Louis

08 October 2008


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Foreword

The User Guide has been prepared pursuant to section 7(c) of the Public Procurement Act 2006as a support to enable public officers to conduct procurement proceedings efficiently. TheGuide may also be very helpful to senior officers on administrative procedures public bodieshave to follow internally and interfacing with the institutions established under the Act.

The Policy Office welcomes comments or suggestions on this document from interestedparties.

Contact Address:

The DirectorProcurement Policy Office

Ministry of Finance and Economic EmpowermentLevel 8, Emmanuel Anquetil Building, Port Louis, Mauritius

Tel: No. (230)201-3760 & Fax: No. (230)201-3758Email: [email protected]


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TABLE OF CONTENTS

Introduction - Objectives and arrangements of this User Guide...........3

Part I Language of Public Procurement Interpretation of terms used .........5

Part 2. Institutional set-up..............82.1. The Three Organs.2.2. The Procurement Policy Office2.3. The Central Procurement Board2.4. The Independent Review Panel

Part 3. Arrangements for Procurement at the level of Public Bodies.................143.1. Primary Responsibility for Public Procurement3.2. Procurement Function within a public body3.3. Administrative structures of parastatal bodies3.4. Advice from the Procurement Policy Office

3.5. Establishment and Procedure of Bid Evaluation Committee

Part 4. Procurement Planning.................184.1. Identifying the Need to Procure4.2. Procurement Planning4.3. Estimating the Cost and Identifying the Source of Funds4.4. Calculating Estimated Value of Procurement Contracts4.5. Possible environmental Protection Measures4.6. Determination of Appropriate Contract Form4.7. Organizing the Procurement Team

Part 5. Procurement Methods..................23

5.1. Choosing the Proper Method5.2. Conditions for use of a Particular Procurement Method5.3. Procedures for Negotiations5.4. Use of Information and Communications Technology5.5. Electronic Submission

Part 6. The Bidding Process: Standard Bidding Documents and ProcurementProcedures........29

6.1. Standard Bidding Documents6.2. Procedures for Open Advertised Bidding6.3. Procedures for Procurement of Consultancy Services6.4. Procedures for Restricted Bidding

6.5. Procedures for Request for Sealed Quotations (Goods/Works/Services)6.6. Emergency Procurement6.7. Direct Procurement6.8. Procurement through Community and End-User Participation6.9. Procurement by Departmental Execution


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Part 7. Contract administration.......707.1. Introduction7.2. Contract Terms7.3. Payment7.4. Contract Modifications7.5. Termination and Breach

7.6. Record Keeping

Part 8. Challenge and Appeal .................748.1. Provisions of the Act8.2. Bid Challenge Procedure

Part 9. Procurement Integrity..................819.1. Conduct of Public Officials9.2. Conduct of Bidders and Suppliers9.3. Suspension and Debarment9.4. Procedures for Suspension and Debarment

Part 10. Miscellaneous ..................8210.1. Oath of office10.2. Declaration of Assets


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INTRODUCTION

Objectives and Arrangements of this User Guide

This User Guide is intended to help officials of public bodies conduct public procurementin compliance with the Public Procurement Act 2006 (the Act) and the accompanyingRegulations. The Act, together with the Regulations, establishes precise rules for each step ofthe process. Applying these procedures and rules properly requires knowledge and skills.Before the skills can be developed through experience, the rules and procedures must belearnt. The User Guide elaborates on procedures and rules in the sequence of the buyingactivity and provides instructions and aids for applying them correctly.

Throughout the User Guide, the term User will be utilized in a general way to describeofficials of the public bodies to whom the User Guide is addressed. Most often the User will beprocurement officers charged with responsibilities to carry out procurement actions inaccordance with the Act and the Regulations. The User Guide will also be a valuable resource

for senior policy officials who want to understand the principles, standards and proceduresinvolved in the public procurement system.

Part 1 of the Guide relates to the language of public procurement. The interpretation ofthe terms used in the Act and the Regulations has been reproduced for the convenience of theUser.

Part 2 concerns the Procurement Policy Office and the relationship between publicbodies and the Policy Office; the functions of the Central Procurement Board and theresponsibility of the Board for approving major contracts; and the role of the IndependentReview Panel.

Part 3 emphasises on the possibility of either operating under the PPA 2006 withexisting organizational arrangements for procurement or expanding to accommodatespecialized and complex types of procurement. This part also highlights the existence ofparticular administrative structures within each parastatal organization to cater for specificrequirements.

Part 4 discusses the first phase of the procurement cycle: procurement planning.A successful procurement begins with careful planning. The Regulations implementing the Actprovide detailed rules and procedures regarding planning, but these rules are only addressed tothe final step of the planning process. Other laws, particularly the budgetary framework, andinternal administrative procedures, apply in planning for a procurement in the public sector.However, the final stage, choosing the proper procurement procedure, is governed by the Act

and thus the process is explained in the User Guide.

The Act authorizes the use of several procurement methods for the selection ofsuppliers. Part 5 of the User Guide sets out the instructions for use of each method. Users willchoose the proper procurement method for the particular procurement activity, and then followthe instructions for the method chosen.


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The contents of the main Standard Bidding Documents and the different stages that abidding process goes through have been discussed in Part 6. This part will raise awareness ofusers in conducting procurement correctly irrespective of the chosen procurement method.

Part 7 concerns issues of contract administration, including contract terms, payment,modification, termination and breach.

Part 8 discusses the procedures for Challenge and Appeal by unsatisfied/potentialbidders.

Part 9 addresses the conduct of bidders, suppliers and public officials with emphasis onprocurement integrity.

Part 10 covers miscellaneous items.


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PART I

Language of Public Procurement - Interpretation of Terms used in the

Public Procurement Act 2006 and the Public Procurement Regulations2008

Unless the subject or the context otherwise requires, the terms below shall be understoodas follows:

"Act" means the Public Procurement Act 2006;

bidincludes a proposal submitted in response to a request issued pursuant to section24 of the Act;

"bidder"means a participant or potential participant in procurement proceedings;

bidding document (a) means any document issued by a public body on the basis ofwhich bidders prepare bids; and (b) includes any document which contains instructions tobidders, specifications, maps, designs, terms of reference, work schedule, evaluationcriteria, bills of quantities, conditions of contract or other similar items;

bid securitymeans the security instrument required to ensure that a bid will remain validduring the period stated in the bidding document;

Board means the Central Procurement Board established by section 8 of the Act;

Chairperson means the Chairperson of the Board or of the Review Panel, as the case

may be;

challenge means a challenge made pursuant to sections 24, 40, or 43 of the Act;

consultant means a person under contract to provide consultancy services to a public bodyin relation to a procurement contract;

consultancy services means services of an intellectual and advisory nature, not incidentalto the supply of goods or to the execution of the works, such as design, supervision, training,analysis, auditing, software development, and similar services;

contractor means a person who has entered into a procurement contract with a public

body;

"departmental work" means any public works to be carried out directly by the public bodyitself or by another public body without entering into any contract;

"deposit"-(a) means the retention money, earnest money, bid security or performancesecurity furnished for security or pending the settlement of any work; (b) includes anyamount furnished for security owing for any other reasons, as well as the securityassociated with the filing of a complaint;


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donor organization means an organization based outside Mauritius which provides orjoins in providing grants, credits, or loans to the Government or its agencies;

exempt organization means a public body, as specified in the First Schedule of the Act,which is excluded from the application of the Act;

"goods" means objects of every kind and description including commodities, rawmaterials, manufactured products and equipment, industrial plant, objects in solid, liquidor gaseous form, electricity, as well as services incidental to the supply of the goods suchas freight and insurance;

"joint venture" means an association of two or more entities for the purposes of carrying outa procurement contract;

local authority (a) has the same meaning as in the Local Government Act; and (b)includes the Rodrigues Regional Assembly;

major contract means a contract for the procurement of goods or services or the execution

of works (a) to which a public body is or proposes to be a party; and (b) the estimate of thefair and reasonable value of which exceeds the prescribed amount;

member (a) means a member of the Policy Office, the Board, or the Review Panel, as thecase may be; and (b) includes the Director, or the Chairperson of the relevant body, as thecase may be;

Minister means the Minister to whom responsibility for the subject of finance is assigned;

officer means a person who is assigned to, or employed by, the Policy Office, the Board orthe Review Panel;

other services means any services other than consultancy services or services incidental tothe supply of goods or the execution of works;

parastatal bodymeans an organisation established under an enactment whether bodycorporate or not and which depends wholly or partly on government funding;

Policy Office means the Procurement Policy Office established under section 4 of the Act;

prescribed amountmeans the amount specified in column 3 of the Schedule to the Actcorresponding to the public body specified in column 1 in relation to the type of contractspecified in column 2 of that Schedule;

"procurement" means the acquisition by a public body by any contractual means ofgoods, works, consultant services or other services;

"procurement contract" means a contract between the public body and a supplier,contractor or consultant resulting from procurement proceedings;

public body - (a) means any Ministry or other agency of the Government; (b) includes (i) a local authority; (ii) a parastatal body; and (iii) such other bodies specified in theSchedule to the Act; but (c) does not include an exempt organization;


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public official means (a) an officer; (b) a supplier, contractor or consultant or any oftheir agents; and (c) a public officer or other person employed by a public body;

regional preference means the margin of preference applicable to suppliers of thecountries of the region as per instructions issued by the Policy Office;

responsive in relation to a bid, means responsive to the basic requirements of a bidregarding ability to perform and complete on time;

Review Panel means the Independent Review Panel established under section 44 of theAct;

supplier means a person delivering goods, works, consultancy services or other services;

Vice Chairpersonmeans either of the two Vice-Chairpersons of the Board; and

"works" means any work associated with the construction, reconstruction, demolition,

repair or renovation of a building, structure or works, such as site preparation, excavation,erection, building, installation of equipment or materials, decoration and finishing, as wellas services incidental to construction such as drilling, mapping, satellite photography,seismic investigations and similar services.


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PART 2

Institutional Set-up

2.1. The Three Organs

(1) The primary objective of the Public Procurement rules and regulations is toprovide maximum value for money to the government by ensuring that public funds are spent ina transparent, efficient and fair manner. The Public Procurement Act 2006 establishes threeadministrative organs for the attainment of this objective viz the Procurement Policy Office (thePolicy Office) the Central Procurement Board (the Board), and the Independent Review Panel(the Review Panel).

(2) The functions of these three organizations do not replace or modify thefundamental responsibilities of public bodies in conducting procurement operations. Publicbodies will, however, need to adjust the execution of their primary responsibilities forprocurement with reference to the Policy Office, the Board, and the Review Panel. The Act and

the Regulations provide detailed procedures for implementing these new relationships.

2.2 The Procurement Policy Office

2.2.1. Establishment of the Procurement Policy Office (the Policy Office)

(1) The Policy Office is the engine for effective procurement reform in Mauritius.Procurement officers in the various public bodies and others interested in procurement inMauritius will want to have a deep understanding of the mandate, initiatives, and resources ofthe Policy Office. Productive working relationships between the public bodies and the PolicyOffice will allow a positive integration of developing procurement policy with the conduct ofprocurement operations.

(2) The Policy Office is established under section 4 of the Act to serve as anindependent policy-making, and monitoring body for public procurement in Mauritius.

Similar Procurement Policy Offices have been set up by other countries modernizing their publicprocurement systems.

(3) The Policy Office has broad responsibilities to oversee the implementation of theAct. The Office will not be involved operationally in the conduct of procurement proceedings orthe resolution of procurement disputes. The Policy Office may request information from thepublic bodies and consult with them (and also the Board and the Review Panel) in thedevelopment of Government procurement policy.

2.2.2. Functions of the Procurement Policy Office

(1) Section 7 of the Act gives specific functions to the Policy Office:

(a) issue instructions to public bodies concerning the coordination of theiractions with the Policy Office, the Board and the Review Panel;


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(b) formulate policies relating to procurement, including directives,procedures, instructions, technical notes and manuals, for theimplementation of this Act;

(c) issue standard forms of contracts, bidding documents, pre-qualificationdocuments, requests for proposals and other similar documents for

mandatory use by every public body implementing procurement;

(d) collect from the Board, the Review Panel and public bodies informationon procurement activities and monitor their compliance with this Act;

(e) recommend and facilitate the implementation of measures to improve thefunctioning of the procurement system, including the introduction ofinformation and communications technology and the dissemination ofpublications and the setting up of websites dedicated to procurement;

(f) prepare and conduct training programmes for public officials, contractorsand suppliers concerning procurement;

(g) solicit the views of the business community on the effectiveness of theprocurement system;

(h) present an annual report to the Minister regarding the overall functioningof the procurement system;

(i) communicate and cooperate with international institutions and otherforeign entities on matters of procurement;

(j) advise on and monitor foreign technical assistance in the field ofprocurement;

(k) advise the Financial Secretary regarding delegation of financial authorityto public officers enabling them to approve contract awards and changesto contracts of a financial nature and the annual review of suchdelegations; and

(l) perform such other functions as may be assigned to it by the FinancialSecretary.

(2) Regulation 3 of the Public Procurement Regulations 2008 elaborates further thefunctions of the Policy Office particularly in the area of oversight, recommendations andreporting, public access, enhancing the efficiency of procurement operations, preparing and

issuing a public procurement bulletin, and procurement capacity building. These additionalPolicy Office functions, build on those laid down in the Act, constitute a mandate formodernization of procurement in Mauritius for the benefit of the public and the community ofsuppliers and contractors.


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(a) Oversight

(i) The Policy Office is authorized to collect information and requirereports from public bodies and end-users concerning the conduct ofprocurement activities in Mauritius.

(ii) The Policy Office shall inform public bodies and end-users of thetypes of statistical and reporting information that are required to befurnished, and the periodicity of their submission.

(iii) The Policy Office shall establish procedures and mechanisms toensure the effective and timely solicitation of viewpoints of interestedparties in the development of procurement policies, regulations,procedures, documents and forms.

(b) Recommendations and Reporting

(i) The Policy Office shall analyze the information collected and make

recommendations to the government for improvements in theimplementation of public procurement.

(ii) The Policy Office shall submit reports to the Minister, on theimplementation of the Act and the Regulations and on current issuesof public procurement policy.

(iii) The Policy Office shall provide advice and guidance to public bodiesand to other interested parties in the application of the Act and theRegulations made thereunder.

(c) Public Access

The Policy Office shall take steps to ensure the availability and theaccessibility to public officials and the general public of the Act andRegulations. Those measures may include:

(i) publication of a periodic bulletin containing information about theprocurement system and procurement proceedings in Mauritius,including, from time to time, compilations of legal instrumentsapplicable to the procurement process; and

(ii) verification of the extent of distribution of the applicable legal textsto public officials and other interested parties.

(d) Procurement Capacity Building

(i) The Policy Office shall devise measures to facilitate theimplementation of strategies and programmes for the promotion ofprofessional standards and development.

(ii) Specific tasks to be undertaken by the Policy Office in order tofulfill its mandate shall include-


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(a) developing, and facilitating the institutionalization of, atraining programme aimed at promoting professional skillsand standards in procurement in Mauritius, includingtraining courses that shall be made available uponinduction to procurement functions, as well as on an

ongoing and systematic basis continually to boost skilllevels of officials; to that end, the Policy Office mayrecommend to the Government the designation of one ormore entities as responsible for conducting procurementtraining on an ongoing basis;

(b) developing proposals and plans for the phasedintroduction of professional procurement staffing in thepublic bodies.

(e) Training and Qualification Requirements

The Policy Office is responsible under section 50(1) of the Act for theissuance of guidelines and qualification requirements for the training andqualification requirements of procurement officers in the public bodies.

(f) Disqualification, Suspension and Debarment of Suppliers,

The Policy Office is responsible to consider proposals from public bodiesfor the:

- disqualification of suppliers on ground of defaults or poorperformance; and

- suspension or debarment of suppliers on ground of non-compliancewith the provisions of the Act and/or Regulations concerningprocurement integrity (fraud, collusion, and other misconduct bymeans of an administrative procedure set forth in the PublicProcurement (Suspension and Debarment) Regulations 2008);

2.3. The Central Procurement Board

2.3.1. Establishment of the Central Procurement Board

A new Central Procurement Boardis established under section 8 of the Act to replacethe Central Tender Board.

2.3.2. Functions and Responsibilities of the Board

(1) The Boards primary area of responsibility is to oversee and approve the awardof major contracts entered into by public bodies, taking care to achieve the highest standards oftransparency and equity in the execution of its duties. In this regard, public bodies will need towork closely with the Board in the planning and execution of major contracts. Public bodies are


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specifically required to submit bidding documents and notices for major contracts to the Boardfor approval.

(2) The Board has a special responsibility for constituting the Bid EvaluationCommittee (BEC), from its own list of qualified and independent evaluators, for major contractsand to review the recommendations of the Committee before approving the proposed contract

award. The Board may require the Bid Evaluation Committee to make fresh or furtherevaluation on specific grounds.

2.3.3. Bid Evaluation Procedures

(1) The detailed procedures for bid evaluation of major contracts are set out inRegulation 4, which is reproduced hereunder:

4. Bid evaluation procedures for major contracts

(1) (a) For the purposes of examination and evaluation of bids, the Boardshall constitute a Bid Evaluation Committee within 15 days after the

opening of bids.

(b) A Bid Evaluation Committee set up under paragraph (a) shall becomposed of at least 3 members who are knowledgeable about thegoods or services under procurement and the public procurementprocedures.

(2) Subject to paragraph (3), the Board shall select from a list of qualified andindependent evaluators maintained by it to act as members of the Bid EvaluationCommittee.

(3) (a) As far as possible, no public officer working in a public body shall

act as member of the Bid Evaluation Committee where the evaluationrelates to a procurement in respect of that public body.

(b) No person shall act as a member of the Bid Evaluation Committeewhere his participation would constitute a conflict of interest.

(4) Where necessary, the Board may, following a request from a BidEvaluation Committee, appoint an adviser or a technical sub -committee to assistit.

(5) The functions of the Bid Evaluation Committee shall include theexamination, evaluation and comparison of bids and determination of the lowest

evaluated substantially responsive bid for the award.

(6) The Chief Executive Officer of the public body concerned with theprocurement shall designate a member of his staff to act as Secretary of the BidEvaluation Committee.

(7) The members of a Bid Evaluation Committee may be paid such fees asmay be determined by the Board.


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(8) The Secretary of the Bid Evaluation Committee shall take minutes ofmeetings of the committee and keep record of all matters considered by thecommittee.

(9) The minutes and other records of the Bid Evaluation Committee shall beopen for inspection by the Policy Office.

2.4. The Independent Review Panel

2.4.1 Establishment of the Independent Review Panel

(1) Section 44 of the Act establishes the Independent Review Panel (the ReviewPanel) for the purpose of considering applications for review from bidders or potential biddersor for the purpose of reviewing the decision of a public body appealed by an unsatisfied bidder.

(2) Normally the Review Panel will suspend the procurement proceedings during thecourse of its deliberations. However, it will not do so if the public body concerned certifies thaturgent public interest considerations require the procurement to proceed. Such a certification bythe public body shall state specific grounds relied upon which shall form part of the record of thepublic procurement proceedings. If the proceedings are not suspended and a decision isfavorable to the unsatisfied bidder, compensation will be limited to the recovery of the costs ofbid preparation and participation in the procurement proceedings. If the proceedings aresuspended, the Review Panel has a number of possible remedies to grant in favor of theunsatisfied bidder who persuades the Panel that its position has merit. These include thefollowing corrective actions:

(a) prohibit the public body from acting or deciding in an unauthorizedmanner or from following an incorrect procedure;

(b) recommend the annulment in whole or in part of any unauthorised act or

decision of the public body;

(c) recommend a re-evaluation of the bids or a review of the decision for anaward, specifying the grounds for such recommendation; or

(d) recommend payment of reasonable costs incurred in participating in thebidding process where a legally binding contract has been awardedwhich, in the opinion of theReview Panel, should have been awarded tothe applicant.


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PART 3

Arrangements for Procurement at the level of Public Bodies

3.1 Primary Responsibility for Public Procurement

(1) Under the Public Procurement Act (PPA) 2006 and the Public ProcurementRegulations 2008, the various public bodies retain primary responsibility for the planning andconduct of their procurement. Public bodies, consistent with their particular mission andactivities, continue to be responsible to prepare annual procurement plans and to prepare andconduct individual procurement actions. Public bodies are responsible for defining the particularprocurement requirements and choosing the appropriate method of procurement and contracttype.

(2) For non-major procurement, public bodies issue appropriate solicitationdocuments, evaluate bids or proposals, select the contractor/supplier and administer the

contract, keeping accurate records of all procurement actions.

(3) Neither the Act nor the Regulations are intended to shift those responsibilitiesaway from the public bodies.

(4) With regard to the Policy Office, for example, public bodies will receive, from timeto time, directives concerning policy aspects of public procurement operations such asinstructions on the use of Standard Bidding Documents, advice on electronic procurement,requests for statistical reports of procurement actions taken, and information on procurementtraining opportunities.

(5) With respect to the Board, public bodies will need to coordinate (as they used to

do with the Central Tender Board under the CTB Act 2000) the conduct of their majorprocurement actions. For major procurement actions, the Board will have oversight andmonitoring responsibility with regard to the bidding documents and will actively conduct the bidevaluation process.

(6) With respect to the Review Panel (established to review bid protests orchallenges from unsatisfied bidders), public bodies will consider as an initial matter any suchchallenge submitted to the public body in a timely fashion and will need to provide all necessarydocumentation to the Review Panel in the event the unsatisfied bidder pursues its challenge bysubmitting an application for review to the Review Panel.

(7) A public body will also need to act in accordance with the Review Panel

procedures under Part VI of the Act and Regulations 48 to 59 concerning the suspension of theprocurement proceedings pending the Review Panels adjudication, and consider, in light of thepublic interest, whether it should go ahead with the procurement action notwithstanding theapplication for review.

3.2. Procurement function within a public body

(1) Public bodies may operate under the PPA with existing organizationalarrangements for procurement. Neither the PPA nor the Regulations prescribe a particular


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structure for the procurement function within the various public bodies. Accordingly, each publicbody is permitted to retain or to modify its organization of the procurement function in themanner it considers most appropriate.

(2) For example, where there is a Departmental Tender Committee, that Committeewould now act upon the report of the Bid Evaluation Committees and shall not itself conduct

evaluation of bids. The public body would have its own arrangements for the setting up of BidEvaluation Committees with the assistance of experts from within the public body,supplementing or replacing those experts, as appropriate, in the case of highly specializedprocurement. For example, in the case of information technology procurement, experts from theCentral Informatics Bureau (CIB) are often asked to participate in bid evaluation.

(3) Public bodies may wish to expand their organizational arrangements forprocurement to accommodate specialized and complex types of procurement

(4) Some public bodies have a wide range of procurement responsibilities. TheMinistry of Health, for example, must procure both pharmaceuticals and medical equipment.Although such equipment purchases may resemble those of other Ministries (e.g., tractors for

the Ministry of Agro Industry and Fisheries), the procurement of pharmaceuticals requires thesubstantial participation of medical professionals in the development of the technicalrequirements and in the evaluation of bids. For this reason, the Ministry of Health has separateunits to perform these procurement functions for equipment and pharmaceuticals respectively,but has left the conduct of the bidding process and final approval of award decisions to theDepartmental Tender Committee.

(5) Other public bodies may wish to adopt similar organizational arrangementswhere it is necessary to accommodate a variety of specialized or complex procurement actions.

(6) Public bodies may wish to modify or expand their organizational arrangements toaccommodate a large volume of procurement.

(7) Some public bodies have a large volume of procurement, or a procurementvolume with significant seasonal fluctuations. In such a case it may be useful for the publicbody to consider establishing more than one tender committee according to threshold so thatthe procurement volume will not impair the quality or efficiency of the procurement process.

3.3. Administrative structures of parastatal bodies

Parastatal organizations also, subject to the Act and the accompanying Regulations,often have administrative structures which are different from those of Ministries, Departments orother public bodies. Typically they are governed by a Board of Directors and that Board mayhave some involvement in procurement decisions. At the Central Electricity Board, for example,

the Board of Directors approves the award of large contracts. Of course if the contract valueexceeds the threshold for major contracts, approval of the Central Procurement Board shall benecessary.

3.4 Advice from the Policy Office

(1) The Policy Office has general responsibility under the Act to recommend andfacilitate the implementation of measures to improve the functioning of the procurement system.


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(2) In this context, the Policy Office will provide necessary guidance to public bodiesregarding their organizational arrangements for procurement. Public bodies should anticipatethis and initiate a dialogue with the Policy Office concerning any procurement organizationalissues important to them.

3.5. Establishment and Procedures of Bid Evaluation Committee

(1) Bid Evaluation Committees are set up by public bodies to assist in contractorselection. It is not proper for the Chief Executive Officer of a public body to head the BidEvaluation Committee. The Bid Evaluation Committee should include technical experts as

required by the needs of the procurement. The Bid Evaluation Committees protect the interestsof government and ensure that the public body realizes value for money and satisfies its needsas intended.

(2) For bids evaluations at the level of a public body, a Bid Evaluation Committee(BEC) may be set up as described hereunder:

(a) For each evaluation exercise, there shall be a BEC appointed by the ChiefExecutive Officer of the public body or by the Central Procurement Board (formajor contracts), comprising at least 3 evaluators, who shall not have been, asfar as possible, involved in the design of specifications. One member of the bidevaluation team shall be nominated as Chairman.

(b) The Chief Executive Officer of the public body shall nominate one of itspersonnel to act as the secretary of the BEC set by the CPB. For bids below theprescribed amount one member of the evaluation team shall assume the functionof secretary as well.

(c) When deemed necessary, the BEC may request the assistance of an expert inthe area covered by the bid document. Such assistance shall in no way relievethe BEC from being responsible for the evaluation process.

(d) To get the proper combination of expertise required, the evaluators shall beselected from among persons competent in matters of procurement law,technology, informatics, finance, administration and any other relevant field. TheCentral Procurement Board and public bodies shall maintain a list of evaluatorsas prescribed in Regulations 4(2) and 7(1), respectively.

(e) Where the necessary expertise is not available in the public body responsible forthe evaluation, such expertise may be sought from other sources.

(f) The BEC shall continue in its functions until the evaluation report is submitted.Every evaluator shall endeavour to avail himself/herself for a prompt evaluationof the bids.

(g) Each evaluator shall evaluate without fear or favour.

(h) The evaluation shall be completed within the validity period so as to leaveenough time for contract award.


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(i) Upon completion, the evaluation report indicating the best evaluated bid as wellas other substantially responsive and compliant bids in the order of their merit,shall be submitted to the Chairman of the Central Procurement Board or theChairman of the Departmental Tender Committee, as the case may be.

(j) The evaluation report shall be signed by all members of the BEC and shallcontain a declaration from each member that he/she had no conflict of interest inevaluating the bids.

(k) Record of all deliberations and other essential matters dealt with by the BECshall be kept in the form of Minutes of Proceedings.


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PART 4

Procurement Planning

4.1. IdentifyingtheNeed to Procure

(1) Procurement begins with an identification of need for goods, works or services.The next step is to make a choice regarding the best method to satisfy the need, which may bethrough entering into a procurement contract or carrying the job in-house. For example, after apublic body determines that it needs a report, it must then decide if the report should be done bythe employees of the public body or whether it would be better to hire a consultant to do thereport. If the decision is to hire a consultant, the need for procurement has been identified.

(2) At this stage in the process, those who have the need for the procurement, i.ethe end-users, are making the key decisions. However, the procurement professionals can helpthem by providing advice on such matters as availability of sources, market prices andconditions, production, delivery and performance lead times, and the best time to enter themarket.

4.2. Procurement Planning

(1) A public body shall engage in procurement planning in order to ensure thatprocurement is carried out within financial estimates allocated to it.

(2) A public body shall, in respect of every investment project, prepare a masterprocurement plan to cover the entire life of the project.

(3) A public body shall, at the beginning of every financial year, prepare an annualprocurement plan which shall include:

(a) the type and quantity of the goods, works or services to be procured;

(b) the timing and implementation of the procurement;

(c) an indication of possible packages of procurement, and their value;

(d) an indication of possible pre-qualification proceedings and procurementmethods to be used;

(e) such other information as may be required in accordance with instructionsissued by the Policy Office.

(4) A public body shall publish on its website an annual procurement plan andperiodically update and revise it. The annual plan to be published on the website shallindicate only those procurements which would be executed through Open AdvertisedBidding.


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(5) In planning procurement for a major contract, a public body shal l take intoaccount the following:

(a) identification and assessment of the need for the procurement;

(b) designation of procurement planning team;

(c) conducting market research in order to identify various technicalsolutions, in particular in the commercial market, to identify the range ofavailable suppliers, and to determine the most favourable contractual andguarantee terms available in the commercial market that would besuitable for procurement;

(d) identification of the amount and sources of financing;

(e) studying acquisition history for similar goods, works or services;

(f) defining and describing the procurement requirements;

(g) estimate of the cost of a proposed procurement;

(h) possible aggregation of procurement requirements, taking into accountfactors such as achieving economies of scale in purchasing, optimisinguse of procurement and contract administration resources;

(i) possible slicing of the procurement into lots, provided that such slicing isnot done to avoid thresholds beyond which more competitiveprocurement methods may be used, and where such slicing is indicatedby factors such as whether an approach would provide the best overallvalue for the public body, possibility of technical compatibility regarding

items purchased in separate lots, the possibility of allowing bidders to bidfor individual lots or for the entire package, and measures to promoteparticipation by small enterprises;

(j) the availability of any procedures for procurement of common-use items;

(k) selection of contracting approach and structure, including verification ofpossible availability of framework or indefinite quantity contractarrangements for the item in question;

(l) selection of appropriate procurement method in accordance with sections15 to 25 of the Act, and the reasons for use of a procurement method

other than open bidding, and any possible combination and package oftask or contract; and

(m) determination and identification of required contract administrationresources and responsibility.

(6) A public body may establish a Committee of need in accordance with instructionsissued by the Policy Office, to plan any individual procurement identified in its annual


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procurement Plan. A public body may find it useful to apply the general principles of para (5) toprocurement for non-major contracts as well.

4.3 Estimating the Cost and Identifying the Source of Funds

(1) In planning for procurement, there must be a realistic assessment of the needs ofthe public body and the funds available. Budgets must be carefully formulated and based onthe most reliable cost data available. This should include the final cost data from completedprocurements. This information should be carefully maintained to build a reliable database toformulate realistic budgets for future procurements.

(2) Before beginning the procurement procedure, it is important to ensure that fundsare available and committed for the procurement. Suppliers and contractors quickly loseconfidence in the procurement system when procurements are routinely cancelled for lack offunds or even worse when the public body lacks the funds to pay the suppliers and contractorsthe amounts due to them under a procurement contract.

(3) In the case of major public projects, the public body must have funds available

for the full value of the works and their supervision. When the schedule of building requires thecontinuation of construction beyond the current fiscal year, the budget of future years shouldinclude the continuing costs of the project.

4.4 Calculating Estimated Value of Procurement Contracts

(1) The calculation of the estimated value of a proposed contract shall be based onthe total amount [net of VAT] payable as estimated by the public body. This calculation shalltake account of the estimated total amount, including any form of option, any and all lots thatmay be awarded, any renewals of the contract, and, the maximum estimated value [net of VAT]of all the contracts envisaged for the total term of a framework agreement.

(2) After the preparation of a cost estimate under this rule, it shall be examined bythe technician or group of technicians, one level higher in rank than the technician who hasprepared it. In examining, if there are mistakes, they shall be corrected and reliable costestimate shall be prepared. If there is no higher-level technician than the technician whoprepared cost estimate in the Office, the Departmental Head shall arrange to examine such acost estimate.

4.5 Possible Environmental Protection Measures

The consideration of measures of environmental protection may be appropriate in theprocess of procurement planning in accordance with the guidance set forth in Appendix K.

4.6 Determination of Appropriate Types of Contract

In the planning and preparation of procurement actions, the public body shall determinethe appropriate contracting approach and structure to be utilized for any given procurement,taking into account standard contract forms promulgated by the PPO and the conditions for theiruse. The standard types of contracts and the appropriate circumstances for their use are setforth in Appendix L.


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4.7 Organizing the Procurement Team

(1) A procurement team shall be established for all major procurements.However it may also be established for any procurement where it is deemed appropriate.

(2) A successful procurement requires the expertise and effort of many persons.These persons must be organized into a team that brings together all of the skills and authorityneeded to manage and conduct the procurement. As far as possible, the following functionsshould be represented on the team: procurement, program/operations, budget, and technical.

PROCUREMENT FUNCTION: The person responsible for this function is in charge of theprocurement activity and should be fully trained and qualified in all aspects ofprocurement and this User Guide before taking on the responsibilities of this function.

PROGRAM OR OPERATIONS FUNCTION: The person responsible for this function shouldunderstand the specific objectives of the procurement and ensure that these objectivesremain in focus throughout all stages of the procurement activity. For example, in thecase of procuring computers, this function might be performed by a person who will use

one of the computers. In the case of a road building project, this function might beperformed by the project manager.

BUDGET FUNCTION: The person responsible for this function must ensure that theprocurement remains within the limits of the approved budget and that the funds haveactually been designated and put aside for this purpose.

The procurement officer may seek the assistance of a legal officer at any stage of theprocurement process and execution of the contract, if so required.

TECHNICAL FUNCTION: The person responsible for this function should have technicalexpertise in the object of the procurement. He or she should have a major role in

developing the technical specifications

(3) The composition of the team may vary depending on the size and complexity ofthe procurement and the availability of qualified staff to serve on the team.

(4) In very complex procurements, the public body may need to organize a

specialized technical group to assist in developing specifications .

(5) When appointing members of the procurement team it is important to lookfor potential conflict of interest situations and avoid appointing members who may havea personal financial interest in the outcome of the procurement.

(6) The procurement team should ensure that the proper procurement procedure isused, that a record of the procurement is maintained, that all time periods and deadlines areobserved, that all procurement documents and forms are completed and issued properly andthat all communication with candidates is proper. The procurement team protects the processand focuses on maintaining the fundamental honesty, fairness and transparency of theprocurement proceeding.


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(7) The team approach also establishes a system of checks and balances that helpsto keep the entire process transparent and honest. It is important that each member of the teamunderstands his or her functions and responsibilities.


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PART 5

Procurement Methods

5.1. Choosing the Proper Method

(1) Once a public body identifies a procurement need and has funds available andcommitted to meet that need, the next step is to select the appropriate procurement method.The procurement professional should take the lead in this decision.

(2) Part IV of the Act sets out the rules and procedures for selecting the appropriateprocurement method. For procurement of goods, other services and works, the availablemethods are Open Advertised Bidding, Restricted Bidding, Request for Sealed Quotations,Emergency Procurement, Direct Procurement, Community or End-user Participation andDepartmental Execution. ForConsultancy Services, Requests for Proposals (with a number ofvariations) and Direct Procurement are the methods to be used. Direct procurement methodshould be resorted to only in specific circumstances.

(3) When a public body chooses a procurement procedure other than OpenAdvertised Bidding, the justification for using the method chosen should be noted in the recordof procurement proceedings. The Standard Procurement Forms have a section for recordingthe justification for using a particular procurement method other than Open Advertised Bidding.

(4) Some of the circumstances for using a procurement procedure other than OpenAdvertised Bidding depend upon the estimated cost of the procurement. The procurementregulations prohibit any action to split-up procurement in order to qualify the procurement for anexception to Open Advertised Bidding. In fact, it is not permitted to use direct procurement toavoid competition or to favour a particular supplier.

5.2. Conditions for use of a particular procurement method

ProcurementMethod Conditions for Use

Open AdvertisedBidding

This method is ideal to obtain value for money through increasedcompetition and should be used for high value procurements where thereis a large number of suppliers. It may also be used in situations wherethere is a limited number of unknown suppliers.

RestrictedBidding

Where:

(a) the goods, works or services are available only from a limited numberof suppliers and all of them are known;

(b) suppliers of specialized goods and services have been pre-approvedby the public body, and are part of a supplier eligibility list (section 19 ofthe Act);

c) the time and cost of considering a large number of bids is


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disproportionate to the value of the procurement, provided the estimatedvalue of the contract does not exceed five million rupees, and at least 5bidders are directly solicited; or

(d) the evaluation of the financial proposal cannot be based solely on thequoted price per item for small value procurement as other factors such asoperational costs, performance, reliability etc. have to be included todetermine the evaluated cost.

Two StageBidding (section29 of the Act)

In the case of large or complex contracts for goods or works, for whichopen or restricted bidding is not suitable because of the difficulty indefining precisely the goods or works.

Request forSealedQuotations(section 20 of the

Act)

For the purchase of readily available goods or procurement of small worksor small other services for which there is an established market, so longas the estimated value of the contract does not exceed five million rupees,and where price is the only determining factor.

DirectProcurement(section 25 of theAct)

(1) For procurements not exceeding the following prescribed thresholds(Regulation 44 as amended):

(a) in the case of procurement of goods, where the value does notexceed 500,000 rupees provided the total cost per single itemdoes not exceed 100,000 rupees; and

(b) in the case of procurement of works, consultancy services orother services, where the value does not exceed 500,000rupees.

(2) Where one supplier has the exclusive right to manufacture the goods,carry out the works, or perform the services to be procured, and nosuitable alternative is available;

(3) For additional deliveries by the original supplier which are intendedeither as replacement parts for existing supplies, services, or installations,or as the extension of existing supplies, services, or installations where achange of supplier would compel the public body to procure equipment orservices not meeting requirements of interchangeability with alreadyexisting equipment or services, provided that the value does not exceed50 % of the initial contract value;

(4) Where additional works, which were not included in the initial contract

have, through unforeseeable circumstances, become necessary and theseparation of the additional works from the initial contract would be difficultfor technical or economic reasons, provided that the value does notexceed 30 % of the initial contract value.

(5) Where the nature of the consultancy services requires that a particularconsultant be selected due to unique qualifications.


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EmergencyProcurement(section 21 of theAct)

(1) A public body may procure goods, works or other services from asingle supplier without competition, in case of emergency or extremeurgency. The scope of the emergency procurement shall, as far aspossible, be limited to the period of the emergency, so that appropriatecompetitive procurement methods may be utilised at the conclusion of theemergency period. "Extreme urgency" includes a situation wherein:

(a) the country is either seriously threatened by or actuallyconfronted with a disaster, catastrophe, war or Act of God;

(b) life or the quality of life or environment may be seriouslycompromised.

(2) Where the condition or quality of goods, equipment, building orpublicly owned capital goods may seriously deteriorate unless action isurgently and necessarily taken to maintain them in their actual value orusefulness; and

(3) Where investment project may be seriously delayed for want of anitem of a minor value.

Community orend-userparticipation(section 22 of theAct)

Where:

(1) community or end-user participation may result in enhancing theeconomy, quality or sustainability of the service to be procured; and

(2) the objective of a project is to create employment and communityinvolvement.

DepartmentalExecution(section 23 of theAct)

Where:

(1) an activity is not likely to attract bidders or may impose unacceptablerisks on the contractor as the cost cannot be pre-determined; or

(2) the risk of unavoidable interruptions can be better borne by the publicbody; or

(3) an activity requires practical method for construction, maintenanceand conservation under special conditions; or

(4) in the case of a pilot project for the development of a technology,

where work cannot be carried out by a contractor; or

(5) works have to be carried out without disrupting existing operations; or

(6) there is an emergency such as a national disaster which calls forimmediate action


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Request forProposals(section 24 of theAct)

When the public body seeks to obtain consulting services or otherservices for which Open Advertised Bidding is not suitable because of thedifficulty in defining precisely the services.

5.3. Procedures for Negotiations

Procedures for negotiations under Regulation 8 of the Public Procurement Regulations2008 shall be carried out as described hereunder:

(a) Negotiations with a bidder shall be resorted to only in the followingcircumstances:

(i) the lowest evaluated substantially responsive bid is substantially abovethe updated estimated costs and a re-bid exercise is considered notpractical;

(ii) direct procurement from a single source under section 25(2)(b) of the Actis resorted to; or

(iii) emergency procurement under section 21 of the Act is resorted to.

(b) For non-major contracts, the Chief Executive Officer of the public body shallappoint a Negotiator or a Negotiating Team, depending on the value andcomplexity of the procurement contract, from among officers who areknowledgeable in all aspects of the procurement.

(c) For major contracts related to para 1 (a) and 1(b), the appointment of thenegotiator or negotiating team shall be by the Central Procurement Board in thefollowing manner:

(i) where negotiation is required following an evaluation of bids theNegotiating Team shall consist of members of the Bid Evaluation Teamand employees of the public body concerned who are well conversantwith the requirements in the bid document and are specialized in thespecific procurement;

(ii) where negotiations are to be carried out with respect to para 1(b)independent negotiators shall be appointed to form a team with theemployees of the public body.

(d) The Chief Executive Officer or the Central Procurement Board, as the case may

be, shall oversee the negotiations process in the following manner:

(i) carrying out a pre-negotiation review and approving the agenda;

(ii) requiring the team to seek approval at a given stage before finalizing theterms of the agreement.


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(e) The review is conducted so that the Chief Executive or the Central ProcurementBoard can be assured that the Team Leader is well prepared and that the othermembers of the team are agreeable with the strategy of negotiations in order toachieve the expectations of Management or the Central Procurement Board.

(f) From the Negotiator(s)'s point of view, the advantage of the review is theopportunity to understand the expectation of management and to obtain theauthority to handle particular problems.

The review can be a quick run-down of the facts and the objective in five minutesor less if it is a small deal. It can be a formal presentation by the negotiating teamto an assemblage of top procurement management. It can be a writtenjustification and request for clearance to proceed.

(g) The public body concerned shall provide a member of its staff as secretary toattend the negotiation sessions and to maintain record of the proceedings. Such

record shall be part of the procurement records.

(h) The outcome of a negotiation shall only be executed after approval of the CentralProcurement Board/Chief Executive of the public body depending on whether theprocurement is for a major or minor contract.

(i) Exceptionally in case of emergency referred to in para 1(c) for major contract,when the situation warrants for immediate start of negotiation, the public bodyshall initiate procurement procedures for immediate action after negotiation withContractors/Service Providers based on its own past experience of costs and

resources, ascertaining due diligence to obtain value for money.

The decision of having recourse to emergency procurement and defining thescope of the emergency shall rest upon the public body.

The public body shall as far as possible arrange with the Contractor/ServiceProvider that the scope of the works are subject to variations and approval ofCentral Procurement Board.

(j) For procurement under emergency as mentioned in para 9, the public body shallas soon as possible report the situation of emergency to the Central ProcurementBoard giving details of actions initiated. The Central Procurement Board maythereafter discuss with the public body for any fine tuning in respect of the scopeof works and any other relevant detail to render the procurement more effective.


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5.4. Use of Information and Communications Technology

(1) The use of information and communications technology shall be introduced in agradual and steady manner depending on the readiness of procuring entities to apply suchmeasures.

(2) Pursuant to the mandate set forth in section 7(e) of the Act, the Policy Officeshall examine, recommend and, where appropriate, implement ways of introducing in publicprocurement, at appropriate stages, the use of information and communications technology, andother technical innovations.

(3) Public bodies are encouraged, in consultations with the Policy Office, to deviseand implement measures aimed at employing information and communications technology inthe procurement process. In issuing approvals, the Policy Office shall ensure that the proposedmeasure promotes the objectives of economy and efficiency, competition and openness of theprocurement system to wider participation, transparency, and accountability.

5.5. Electronic Submission

A Request for Sealed Quotations may provide for submission of quotations by facsimilesubject to the following:

(i) the fax machine is secured under lock and key; and

(ii) opening procedures similar to those for submission through a bid box areapplied.


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PART 6

The Bidding Process: Standard Bidding Documents andProcurement Procedures

6.1. Standard Bidding Documents

6.1.1. Use of Standard Bidding Documents

(1) There are separate Standard Bidding Documents for the different types ofprocurement: large and complex works (and a companion document for prequalification for suchprocurement), procurement of works, procurement of goods, selection of consultants throughRequest for Proposals, procurement of security/cleaning services and procurement ofservices/non-Consultancy. Users should consult the instructions for use contained in each ofthese Standard Bidding Documents.

(2) As an introduction to these documents, you will find below some generalobservations about the Standard Bidding Documents.

6.2. Procedures for Open Advertised Bidding (Goods, Works and OtherServices)

6.2.1. Announcement of Invitation to Bid

(1) At the commencement of each Open Advertised Bidding proceeding, aninvitation to bid shall be published in a national newspaper in accordance with section 16 of theAct, and shall provide potential bidders a period of at least 30 days from the date of publication

to prepare and submit bids. Such an invitation to bid may be displayed at the office of the publicbody and shall, where feasible, also be published on the website of the public body and/or theProcurement Policy Office.

(2) The Chief Executive Officer of the public body, prior to the issuance of aninvitation to bid or to apply for prequalification, shall ascertain the following:

(a) availability of a sufficient number of copies of the bidding documents; and

(b) compliance with the requirements of the Act and the Regulations.

(3) For Open International Bidding, the diplomatic missions accredited to the

Government of Mauritius, whose countries are potential sources for the procurement, may alsobe served with the invitation to bid, or the invitation to apply for pre-qualification.

6.2.2. Provision of Bidding Documents

(1) In accordance with section 28 of the Act, the public body shall provide acomplete set of bidding documents to all bidders who have responded to the invitation to bid, orto all bidders that passed prequalification, if prequalification proceedings were held.


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(2) Where public bodies do not offer free direct access to the entire biddingdocuments and any supporting document by electronic means, the bidding documents shall bepromptly sent to bidders on receipt of the request to participate, and payment of the price, if oneis charged.

(3) The public body shall ensure that all interested bidders have access to bidding

documents, including by making those documents available for purchase in more than onelocation, if deemed necessary, and whenever feasible, by download over the internet. Nobidder, who pays the price that may be charged for the bidding documents, shall be denied thedocuments.

(4) Bidders interested in the bidding proceedings may preview the biddingdocuments at the office of the public body indicated in the Invitation to Bid.

(5) In response to a written request and payment of the cost and postage, the publicbody may mail/courier the documents; however the public body shall not be responsible if thedocuments are not received in time.

(6) The details of sale of the bidding documents and submission of the bids shall berecorded in a register maintained for the purpose. After the expiry of the time for submission ofbids, the designated office employee shall close the register.

6.2.3. Preparation of Bidding Documents

(1) Preparation of the bidding documents shall be the responsibility of theprocurement unit of the public body, if one has been established, in consultation with the enduser that submits a requisition for the procurement.

(2) Public bodies shall use the appropriate Standard Bidding Documents issued bythe PPO for the type of procurement in question. The information specific to the procurement in

hand shall be inserted in the spaces provided. The completed bidding documents should beapproved by the public body or the Central Procurement Board as the case may be, prior topublication of the Invitation to Bid.

6.2.4. Contents of Bidding Documents

(1) While the exact contents of the bidding documents will vary according to thenature and complexity of the procurement, the bidding documents shall include, at a minimum,the following:

(a) a copy of the Invitation to Bid;

(b) Instructions to Bidders, consisting of standard instructions that remainconstant from one procurement action to the next; and

(c) the Bidding Data Sheet provides information specific to a procurement.

Bidding Data Sheet

The Bidding Data Sheet complements the Instructions to Bidders. On this form,the public body identifies itself and provides general information about the


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circumstances of the procurement. Here the public body sets out specificrequirements that the bidder must follow in preparing and submitting the bid,including the following:

(i) any descriptive literature bidders are required to submit with their bids;

(ii) any requirement that bidders provide samples, and the number andtype of such samples;

(iii) any requirement that bidders view samples to which supplies mustconform, and the circumstances under which such requirements wouldbe waived;

(iv) any requirement that bidders submit a table of spare partsrecommended by the manufacturer along with the manufacturersstock number for each item, the quantity, unit price, and an indicationof any escalation of prices for spare parts after the contractuallyguaranteed period for spare-parts prices;

(v) any requirement that the bidder should state in the bid the country oforigin of the supplies, the name of the manufacturer, the brand name,model and catalogue number;

(vi) if alternatives to the characteristics of the goods, works, services,contractual terms and conditions or other requirements set forth in thebidding documents are permitted, a statement to that effect, and adescription of the manner in which alternative bids are to be evaluatedand compared;

(vii) if bidders are permitted to submit bids for only a portion of the goods,

works or services to be procured, a description of the portion orportions for which bids may be submitted;

(viii) the manner in which the bid price is to be formulated and expressed,including a statement as to whether the price is to cover elementsother than the cost of the goods, works or services themselves, suchas any applicable transportation and insurance charges, customsduties and taxes; whether the prices are to be fixed or adjustable and,if so, the formula therefore; use of standard trade terms such as theINCOTERMS is highly recommended to avoid disputes on the scope ofsupplier obligations under the contract;

(ix) the currency or currencies in which the bid price is to be expressed;

(x) the language or languages in which bids are to be prepared;

(xi) any requirement of the public body with respect to the issuer and thenature, form, amount and other principal terms and conditions of anybid, and any performance security to be provided by the successfulbidder;


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(xii) when a bid security is required, an indication of the form in which thebid security must be issued in order to be in conformity with Regulation28;

(xiii) an indication that (a) the withdrawal or modification of a bid after thedeadline for submission of bids has expired will result in forfeiture of

the bid security amount, and (b) bidder may withdraw its bid prior to thedeadline for the submission of bids without forfeiting its bid security;

(xiv) the manner, place and deadline for the submission of bids, inconformity with sections 31 and 32 of the Act and Regulations 26;

(xv) the means by which bidders may seek clarifications of the biddingdocuments, and a statement as to whether the public body intends, atthis stage, to convene a meeting of bidders, and, where applicable,how to arrange site visits;

(xvi) the period of time during which bids shall be valid, in conformity with

section 34 of the Act;

(xvii) the place, date and time for the opening of bids, in conformity withsection 36 of the Act;

(xviii) the procedures to be followed for opening of bids;

(xix) the criteria and methodology to be used by the public body for theexamination, evaluation and comparison of bids and the determinationof the successful bidder, including any criteria other than price to beused pursuant to section 37 of the Act and in accordance with theRegulations;

(xx) the currency that will be used for the purpose of comparing bids andeither the exchange rate that will be used for the conversion of bidsinto that currency or a statement that the selling rate for that currencypublished by the Bank of Mauritius prevailing on the closing date ofbids will be used;

(xxi) references to the Act, Regulations and other laws and regulationsdirectly pertinent to the procurement proceedings, provided, however,that the omission of any such reference shall not constitute grounds forreview under section 45 of the Act or give rise to liability on the part ofthe public body;

(xxii) the functional title, address and other contact information (telephone,fax and e-mail) of one or more officers or employees of the public bodywho are authorised to communicate directly with and to receivecommunications directly from bidders in connection with theprocurement proceedings, without the intervention of an intermediary;

(xxiii) any commitment such as the transfer of technology to be made by thebidder under the procurement contract;


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(xxiv) notice of the right provided to a bidder under section 45 of the Act tolodge a complaint against an unlawful act or decision of, or procedurefollowed by, the public body in relation to the procurementproceedings;

(xxv) a statement to the effect that the public body reserves the right toreject all bids and to cancel the procurement proceedings pursuant tosection 39 of the Act;

(xxvi) in the absence of pre-qualification, the criteria and methodology for theevaluation of the qualifications of bidders;

(xxvii) any formality that will be required once a bid has been accepted for aprocurement contract to enter into force, including, where applicable,the execution of a written procurement contract in accordance with thebidding documents;

(xxviii) any other requirement established by the public body in conformity withthe Act and Regulations relating to the preparation and submission ofbids and to other aspects of the procurement proceedings; and

(xxix) the requirements as to documentary evidence or other information thatmust be submitted by bidders to demonstrate their eligibility andqualifications.

(2) The following also form part of the Bidding documents:

(a) Schedule of Requirements and Technical Specifications, describing thenature and required technical and quality characteristics of the goods,

works or services to be procured, including, but not limited to:

(i) technical specifications and/or desired function or performance,plans, drawings and designs as appropriate;

(ii) the bill of quantities [in the case of a unit price works contract];

(iii) the quantity of the goods;

(iv) any incidental services to be performed;

(v) the location where the goods are to be delivered, works are to be

effected or the services are to be provided;

(vi) the desired or required time, if any, when the goods are to bedelivered, the works are to be effected or the services are to beprovided; any warranty and maintenance requirements;

(vii) the tests, standards and methods to be employed to judge theconformity of goods or works with technical specifications providedin the bidding documents; and


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(viii) any requirement that supplies, materials, spare parts should bebrand new and original.

(b) Bid Evaluation Methodology: the criteria and methodology to be used bythe public body for the examination, evaluation and comparison of bids

and the determination of the successful bidder, including any criteria otherthan price to be used pursuant to section 37 of the Act;

(c) Contract Forms: the terms and conditions of the proposed procurementcontract, and the contract form, if any, to be signed by the parties,consisting of the General Conditions of Contract, which remain constantfrom one procurement proceeding to the another, and the SpecialConditions of Contract, in which conditions specific to the particularprocurement are set forth; and

(d) Standard Formsfor the bid, bid security, agreement, performance securityand advance payment security.

Technical Specifications for Procurement of Goods

(3) Technical specifications for procurement of goods shall contain the followingelements and descriptions of requirements, to the extent applicable in the procurementproceeding at hand:

(a) listing of the goods to be procured, including the required performancecharacteristics, quantity, delivery times and incidental services (e.g.,operating or descriptive manuals, training of public body's personnel,installation, supplier's on-site personnel required, after sale service, etc.);

(b) required availability of spare parts and service during life of goods;

(c) descriptive literature or samples to be provided with the bid;

(d) description of any required performance or quality guarantee;

(e) technical configurations;

(f) inspection and quality testing to be conducted, including pre-shipmenttesting and inspection;

(g) environmental impact and safety standards to be met by the goods; and

(h) criteria and performance tests or inspections for final acceptance.

Technical Specifications for Procurement of Works

(4) Elements to be addressed in technical specifications for procurement of worksshall contain the following elements and descriptions of requirements, to the extent applicablein the procurement at hand:


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(a) general description of the scope and purpose of the works;

(b) precise description of scope of work to be carried out, i.e., elements such asdesign, construction, erection, any manufacturing, installation of equipment,etc.;

(c) physical nature and conditions of construction site;

(d) detailed listing of any equipment and components to be supplied;

(e) detailed design and drawings of work to be performed, to the extent they areto be supplied by the public body under the contracting arrangement inquestion;

(f) description of the works in terms of design details, drawings and/orperformance characteristics, including specific technical descriptions andstandards as to items such as plumbing, and electrical installations;

(g) environmental impact and safety standards to be met;

(h) description of performance and quality guarantees required;

(i) inspection and testing to be conducted at various stages of construction;

(j) completion tests;

(k) technical documentation, drawings, operating manuals to be provided bysuppliers;

(l) type and extent of training and supervision to be provided by suppliers, to the

extent applicable;

(m) inspection and performance tests to be passed for acceptance; and

(n) schedule of starting and completion time.

6.2.5. Bills of Quantities and Activity Schedules for Works

(1) Bidding documents for unit-priced works contract shall require bidders to quote theirprices for the items listed in the Bill of Quantities included in the bidding documents. The pricequoted shall include all quantities of materials, labour and the other inputs required to beprovided by the contractor in order to carry out the works.

(2) Bidding documents for lump-sum-priced contracts shall require bidders to submit apriced activity schedule, on which the bidder breaks down the lump-sum price according to themain activities involved in the progressive implementation of the procurement contract.


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6.2.6. Description of Services Other than Consultancy Services

(1) Technical specifications for procurement of services other than consultancyservices shall contain the following elements and descriptions of requirement:

(a) general description of the scope and purpose of the service;

(b) description of the service and the tasks to be performed by the supplier,as much as possible as performance requirements;

(c) conditions under which the service is to be performed;

(d) descriptive literature or samples to be provided with the bid;

(e) inspection and quality testing to be conducted;

(f) criteria and methods by which the public body intends to judge theperformed services;

(g) description of performance and quality guarantees required; and

(h) type and extent of training and supervision to be provided by supplier.

6.2.7. Price Adjustment

(1) A procurement contract may provide for the possibility of price adjustment to takeinto account changes in economic circumstances. Price adjustment is not permitted unlessprovided for in the procurement contract.

(2) Generally, price adjustment will not be permissible in the case of contracts with aperformance period of less than 12 months, and during the period of delay in performance if the

delay is caused by the supplier/contractor.

(3) If the procurement contract provides for the possibility of price adjustment, it shallstipulate the conditions, such as increases or decreases in the cost of materials, labour, andenergy, in which price adjustment would be permitted, the formulas and indices to be referred toin order to determine whether economic conditions have altered to a significant enough degreeto justify a price adjustment and to identify the amount of increase or decrease, the frequencywith which price adjustments may be implemented, and the procedures to be followed.

(4) The procurement contract may provide that, when the application of priceadjustment leads to a modification exceeding the initial price by the percentage stipulated in thecontract or by a percentage of the initial price of the balance of the contract, the entity may

terminate the contract.

(5) If the contractor fails to complete the works to be carried out under the workschedule within the time limit as prescribed in the contract agreement due to unjustified delaysand taking more time than was prescribed to complete such a work, such a contractor shall notbe given the increased price amount as referred to in (1) above.


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6.2.8. General observations concerning Standard Documents for Pre-Qualification

(1) Application of Pre-qualification Procedures

The Act authorizes the use of pre-qualification procedures in order to determine

whether applicants are qualified before requesting the applicants to submit bids.Prequalification is used especially for procurements of large or complex works.

(2) Invitation to Pre-Qualify

This document announces the procurement and is intended to provide applicantswith sufficient information to determine their interest in the procurement for whichthe pre-qualification procedure is being conducted. The form is published in thesame manner as the Invitation to Bid in Open Advertised Bidding

(3) Instructions to Applicants

This document informs applicants of the rules and procedures the public bodywill follow in conducting the pre-qualification. Applicants should be encouragedto review this document carefully, and public bodies should understand thedocument and be able to answer questions from applicants regarding thesections of the documents.

(4) Summary of Procurement Data - Goods/Works or Services

The appropriate form must be completed for each pre-qualification proceedingthat is a preliminary to a procurement action. The information in each of theseforms provides the applicant with essential facts about the planned procurement.

The applicant needs this information in order to know if he is interested inparticipating and for assessing his own capability to perform.

(5) Pre-qualification Data Sheet (PDS)

The information in the PDS complements and completes the instructions to thecandidates. The PDS is in two sections. In Section A, the public body identifiesitself and provides general information about the circumstances of thisproceeding. Here also the public body nominates a particular person as thecontact person for the public body. This is the person that applicants shouldcontact for any question about the procurement. To ensure fairness andconfidentiality of the process, it is important that all communication between

applicants and the public body flow through this contact person. In Section B,the public body sets out specific requirements that the applicant must follow inpreparing and submitting its application. To complete this section, the publicbody fills the place for submission and the precise date and time of the deadlinefor submitting applications.


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(6) Schedule of Qualification Requirements

(a) This document informs the applicant about what he, as an entity, mustsatisfy to be qualified to participate in this procurement. As proof that itsatisfies these requirements, the applicant must submit the specificdocumentary evidence required.

(b) In the second section of this Schedule, the public body must identify thespecific qualification requirements that are considered necessary todemonstrate that an applicant is capable of performing this particularprocurement.

(7) Application Form

This document is to be completed by the supplier or contractor when submittingapplication.

(8) Pre-bid Conference

(a) The public body may organize a conference for the purpose of briefingbidders and taking their questions on the bidding documents, includingthe technical specifications and other requirements. Any such conferenceshould take place at an early point following the distribution of the biddingdocuments to all the bidders who have responded, so as to allow biddersto take into account the information they obtain at the conference inpreparing their bids. Clarification at the conference of defects orambiguities in the bidding documents does not relieve the public body insuch cases of the obligation to amend the bidding documents.

(b) If the public body convenes a meeting of bidders, it shall prepare minutesof the meeting containing the questions submitted at the meeting and itsresponses to those questions, without identifying the sources of thequestioner. The minutes shall be provided promptly to all bidders towhich the public body provided the bidding documents so as to enablethose bidders to take the minutes into account in preparing their bids.

(c) The public body shall issue an amendment to the bidding documents ifthe pre-bid conference or other requests for clarification submitted inwriting result in a modification of any technical or commercial aspect ofthe bidding documents. The amendment shall be mailed to all those whopurchased or received the bidding documents.

(9) Site Visits

In the case of major construction or industrial projects, the public body shallarrange for site visits during or after the pre-bid conference, where such sitevisits would facilitate the understanding of site realities on the part of potentialbidders.


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6.2.9. Submission of Bids

(1) Bids shall be submitted to only one location, in accordance with the instructionsin the bidding documents.

(2) The bidder shall submit the bid signed, and accompanied by a power of attorney,if so required, in the required number of copies and in a sealed envelope, as prescribed in thebidding documents.

(3) If the bid is delivered by hand the public body shall, on request, provide a receiptshowing the date and time when its bid was received.

6.2.10. Reception and Security of Bids

(1) A public body shall maintain a securely-locked bid box into which bidders maydeposit their bids.

(2) If the size of the offer envelope makes it impossible to place them in the bid box,

such envelope shall be handed over to the officer in charge of the Registry of the public body,who shall record the date and time of receipt, ensure that the bids are kept in a secure area andhanded over to the tender committee at the bid opening.

(3) In addition to direct deposit in the bid box, bids may be submitted by registeredmail, courier or any other means that may be specified in the bidding document.

(4) Any bid received in the manner provided for in paragraph (3) shall be promptlyplaced in the bid box or secured and kept confidential.

(5) A public body shall ensure that all bids received are kept in a secure manner soas not to permit the bids to be opened by accident or viewed.

(6) A bid received without proper sealing of the envelope or one accidentally openedor opened by mistake, shall be resealed and inserted in the tender box or other safe locationtogether with other bids

(7) No disclosure of the bids shall be made to any person prior to opening of bids.

(8) Any sample submitted should be handled in a confidential and secure manner soas not to lead to the disclosure of their characteristics prior to the opening of bids.

6.2.11. Bid Securities

(1) Requirements Applicable to Bid Securities

(a) A bid security shall be required in procurement where time is of the essence,and the failure of the winning bidder to sign the procurement contract wouldresult in unacceptable delay.

(b) Prior to submitting a bid, a bidder may request the public body to confirm theacceptability of a proposed issuer or confirmer of a bid security and the publicbody shall respond promptly to such a request.


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(c) Confirmation of the acceptability of a proposed issuer or of any proposedconfirmer does not preclude the public body from rejecting the bid security onthe ground that the issuer or the confirmer, as the case may be, hassubsequently become insolvent or otherwise lacks creditworthiness; in suchan event, the bidder shall be permitted to replace the unacceptable security

by an acceptable one.

(d) The bid security shall be subject to a demand for payment only in thefollowing cases:

(i) if the bidder withdraws, cancels or substantially modifies the bid after thebid opening, during its period of validity;

(ii) if the bidder does not accept a correction of an arithmetical error; or

(iii) if the bidder, having been notified of the acceptance of its bid during thevalidity of the bid, fails to sign the contract if so required or fails to

furnish a performance security if so required.

(e) The public body shall make no claim to the amount of the bid security, andshall promptly return, or procure the return of, the bid security, afterwhichever of the following occurs earliest:

(i) the expiry of validity period of the bid security;

(ii) the entry into force of a procurement contract and the provision of asecurity for the performance of the contract, if such a security is requiredby the bidding documents;

(iii) the termination of the bidding proceedings without the entry into force ofa procurement contract; or

(iv) the withdrawal of the bid prior to the deadline for the subm