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 can be found at the GeBIZ website (www.gebiz.gov.sg).
The procurement process requires approvals to be sought at key junctures. The segregation of key procurement roles and responsibilities serves to ensure there are checks and balances in the system.
The procurement process can be broadly broken down into the following stages:
Agencies can source for products and services by way of:
- Small Value Purchase (up to $6,000 in estimated procurement value)
- Quotation (up to $90,000)
- Tender (more than $90,000)
- Public Private Partnerships
Types of tenders
|Open Tenders||Posted openly on the GeBIZ website to invite any supplier who may be interested to bid based on the requirements specified.|
|Selective Tenders||Used for more complicated purchases with sophisticated requirements. Applicants are shortlisted based on their capabilities via a pre-qualification exercise. These applicants are then invited to submit their tenders.|
|Limited Tenders||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 considerations or for works of art.|
Public Private Partnerships
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.
Bids are evaluated holistically based on assessment of value for money including quality, compliance to tender specifications, price, timely delivery, reliability, etc.
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. Quotations are approved by at least one officer, while tenders are approved by a tender board comprising at least three officers. An award notice with the name of the supplier awarded the contract, as well as the contract sum awarded, will be published subsequently on GeBIZ (www.gebiz.gov.sg).
Contract management includes all administrative duties associated with a contract after it is entered into. Government agencies must follow documented guidelines to:
- ensure that services or goods are supplied in accordance with the contractual requirements
- monitor costs and documentation
- identify and deal with potential issues early