As part of efforts to enhance the efficiency of procedures and increase flexibility in handling government tenders and procurements, the the new Government Tendering and Procurement System includes a set of amendments aimed at accelerating the procedural cycle, expanding the scope of delegation, and developing contracting and procurement methods, in addition to empowering the private sector, supporting equal opportunities, and promoting economic development.
According to the Ministry of Finance, the most notable elements of the system include raising the financial thresholds for certain procedures, shortening review periods, merging certain committees, and allowing for new cases of contract waivers and exemptions from the standstill period, as well as improving tendering and direct procurement procedures.
Raising the Authorization Limit to 50 Million Riyals
The new regulation raises the authorization limit for the head of a government agency to decide on procedures to 50 million riyals, thereby enhancing flexibility in decision-making related to government tenders and procurements. The regulation also allows the head of a government agency to delegate the signing of contracts and other documents requiring a signature without a financial limit.
Reducing Contract Review to 4 Working Days
The regulation reduces the time required for the Ministry of Finance to review contracts to 4 working days, thereby enhancing the efficiency of contract review procedures. The regulation also allows for the assignment of a contract to other government agencies.
A Single Committee for Opening and Reviewing Bids
Among the key elements of the new system is the merger of the bid-opening and bid-review committees into a single committee, thereby enhancing the flexibility of procedures related to handling bids submitted in government tenders. The system also raises the upper limit for contract value increases from 10% to 20%.
Raising the Direct Procurement Threshold
The system raises the financial threshold for direct procurement to one million riyals, in addition to refining the limited-competition tender process and allowing for contracts with independent professionals. The amendments also include compensation for members of bid opening and evaluation committees, with the aim of incentivizing the completion of procedures in accordance with the regulation.
Exemptions from the Standstill Period
The regulation includes several new cases in which government agencies are exempt from the standstill period, with the aim of expediting procedures in competitive bidding processes that, by their nature, do not require a standstill period.
These amendments are part of the measures aimed at enhancing the efficiency and flexibility of procedures in the new government tendering and procurement system.
Empowering the Private Sector and Supporting Equal Opportunity
The regulation emphasizes empowering the private sector and supporting equal opportunity by requiring that financial obligations to the private sector be settled on time, thereby enabling the government agency to sign new contracts.
It also standardizes the requirements for submitting a final guarantee for all companies, thereby promoting equality and equal opportunity.
Supporting Research, Development, and Innovation
With regard to promoting economic development, the law provides for the preparation of regulations derived from the law to support research, development, and innovation.
It also includes the preparation of regulations derived from the law to support industrial localization and knowledge transfer.
Thus, the key elements of the new government competition and procurement system focus on a range of areas, including streamlining procedures, expanding delegation of authority, developing procurement and competition methods, empowering the private sector, and supporting equal opportunities, as well as promoting research, development, and innovation, industrial localization, and knowledge transfer.
