MAZ

Procurement Process

The procurement process requires approvals to be sought at key junctures. There must also be a segregation of key procurement roles and responsibilities to ensure there are checks and balances in the system. 


The procurement process can be broadly broken down into the following stages:


Procurement Process 


A) Sourcing


The need for any intended procurement has to be approved by the relevant approving authority before the procurement process can commence. Depending on the estimated value of the GP, the procurement procedure adopted could be by way of a Small Value Purchase (up to <$5,000 in estimated procurement value), Quotations ($5,000 – up to < $70,000), or Tender (more than >$70,000). -


For tenders, there are 3 types of procedures:


a) Open Tenders (+)


+ Tender notices are posted openly on the GeBIZ website to invite any supplier who may be interested to bid based on the requirements specified.


b) Selective Tenders (+)


+ Selective tenders are used for more complicated purchases with sophisticated  or requirements. This procedure has two stages:



• Short-listing of applicants –



1) Applicants are shortlist based on their capabilities via an open pre-qualification exercise.



2) The shortlisted applicants are then invited to submit their tenders.


c) Limited Tenders (+)


+ Such tenders are by invitation only, and may be open to one or a few suppliers. Limited tenders are used when the project concerns national security, or when it is not feasible or practical to call for open tenders, for example, because of intellectual property rights or for works of art.            


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As a default, the Government calls open tenders to ensure transparency and fair competition, as well as to derive the best public value through open competition. Information on the Government’s procurement opportunities and even business opportunities with foreign governments can be found openly at the GeBIZ website (www.gebiz.gov.sg).

Sourcing is the first stage in the procurement process. Government agencies can consider different procurement approaches for different buys. For example, as an alternative to traditional procurement, agencies may consider entering into Public Private Partnerships (PPPs) (+) to leverage on private sector financing and expertise.  

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PUBLIC PRIVATE PARTNERSHIPS

 

BACKGROUND 

Public Private Partnership (PPP) is a long-term partnering relationship between the public and private sectors to deliver services. Through PPP, the public sector seeks to bring together the expertise and resources of the public and private sectors to provide services to the public at the best value for money.

Traditionally, the public sector has tended to engage the private sector merely to construct facilities or supply equipment. The public agencies will then own and operate the facilities or equipment or engage separate maintenance and operations companies to operate the facilities and equipment to deliver the services to the public.

With PPP as an alternative form of procurement, the public sector will focus on acquiring services at the most cost-effective basis, rather than directly owning and operating assets.

There are many possible PPP models, including joint-ventures, strategic partnerships to make better uses of government assets, Design-Build-Operate and Design-Build-Finance-Operate.




PPP PROJECTS

The PPP projects which have been awarded are:


Singapore Sports Hub (Singapore Sports Council)



Awarded to Singapore Sports Hub Consortium (SSHC) led by Dragages Singapore Pte Ltd on a Design, Build, Finance and Operate (DBFO) PPP Model



Developed to replace the National Stadium, the Sports Hub will comprise a new 55,000-seater National Stadium with retractable roof, an Aquatic Centre, a Multi-Purpose Indoor Arena, a water sports centre, the SIS and supporting commercial facilities



Landmark PPP deal with a 35ha site to cater to both sports and non-sports enthusiasts for a period of 25 years



Achieved Financial Close in August 2010 and expected to be ready by April 2014





ITE College West (Institute of Technical Education)



First social infrastructure PPP project in Singapore



Awarded to Gamon Capital in November 2007 on a Design, Build, Finance and Operate (DBFO) PPP model.



Contract is to design, build, maintain and operate the education facility for a period of 27 years.



Officially opened in July 2010



Project Summary


 


Tuas Desalination Plant (Public Utilities Board)



Awarded to SingSpring on a Design, Build, Own and Operate (DBOO) PPP model.



Tender awarded on 19 January 2003.



Supply 136,000 cubic metres (30 million gallons) of water per day for a 20 year period from 2005 to 2025.



Officially opened in September 2005



Project Summary





2nd Tuas Desalination Plant (Public Utilities Board)



Awarded to TuasSpring on a Design, Build, Own and Operate (DBOO) PPP model



Tender awarded on 7 March 2011



Supply 318,500 cubic metres (70 million gallons) of water per day for a 25 year period from 2013 to 2038



Water Purchase Agreement signed on 6 April 2011





Changi NEWater Plant (Public Utilities Board)



Awarded to Sembcorp Utilities on a Design, Build, Own and Operate (DBOO) PPP model



Tender awarded on 18 January 2008



Supply 225,000 cubic metres (50 million gallons) of NEWater per day for a 25 year period from 2010 to 2035



Officially opened in May 2010





Ulu Pandan NEWater Plant (Public Utilities Board)



Awarded to Keppel Engineering Pte Ltd on a Design, Build, Own and Operate (DBOO) PPP model.



Tender awarded on 15 December 2004



Supply 148,000 cubic metres (32 million gallon) of NEWater per day for a 20 year period from 2007 to 2027



Officially opened in March 2007





Incineration Plant (National Environment Agency)



Awarded to Keppel Seghers Engineering Singapore Pte Ltd.



Tender awarded on 14 November 2005



Incinerate 800 tonnes of refuse per day for a 25 year period from 2009 to 2034.



First PPP project by NEA to Design, Build, Own and Operate a new incineration plant next to the Tuas South Incineration Plant.



In operation since January 2009



Project Summary





TradeXchange (Singapore Customs)



Awarded to CrimsonLogic Pte Ltd.



Tender awarded on 8 December 2005



First IT PPP project by Singapore Customs to create a one-stop integrated logistics information port.



The contract is to develop the software, including the maintenance and operation of the system for a 10 year period from 2007 to 2017



Project Summary




FREQUENTLY ASKED QUESTIONS

Please contact us at mof_rm@mof.gov.sg if you have any questions or comments on PPPs.

For frequently asked questions on PPP, please click here.

 
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B)  Evaluation

Suppliers’ bids are evaluated holistically, according to the principle of value for money. This means that the suppliers’ offers are evaluated not only in terms of price, but also whether they have complied with all the requirements in the tender specifications and other factors such as quality of the goods and services, timeliness in delivery, reliability and after-sales service support, etc.


Depending whether it is a quotation or a tender, one or more officers will evaluate suppliers’ bids before making their recommendation to the appropriate approving authority for consideration. 


C) Approval of Award

To ensure checks and balances in the procurement process, the officer(s) evaluating the bids must be different from the officer(s) approving the award of the bid. This applies for both quotations and tenders. Quotations are approved by at least one officer while tenders are approved by a tender board of at least three officers. 


The approving authority considers the recommendation and justifications, and may seek clarifications from the evaluating officer(s) before accepting the recommendation.

An award notice with the name of the supplier awarded the contract, as well as the contract sum awarded, will be published on GeBIZ (www.gebiz.gov.sg).

 

D) Contract Management


Contract management is an important stage and includes all administrative duties associated with a contract after it is entered into.

Government agencies are provided guidelines and training on managing contracts to: 


(i) ensure that services or goods are supplied in accordance with the contractual requirements

(ii) monitor costs and keep proper documentation;

(iii) identify and deal with potential issues early.


For frequently asked questions on government procurement, please click here.

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Last Updated on February 13, 2017
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