Government Tenders and Procurement Law Regulations take effect on December 1st

Posted in

24/11/2019

By the beginning of next December, the executive regulations of the new government tenders and procurement system will be in force for all government entities, in addition to companies that perform work on behalf of government entities, after being approved by the Minister of Finance Mr. Mohammed bin Abdullah Al-Jadaan. The system aims to promote the values of integrity and transparency, develop local content and mainly support local small and medium enterprises. (Tenders System)

Introducing an evaluation mechanism for contractors

<The new regulation contains many concepts and mechanisms that aim to raise the efficiency of government spending in several aspects, the most important of which is the introduction of an evaluation mechanism for contractors, detailing pre- and post-qualification mechanisms, and subcontracting controls, which will ensure raising the quality of projects and outputs. The regulation also included details of mechanisms for government agencies to secure their purchases through a number of new contracting methods - including framework agreements, electronic reverse auction, two-stage competition, localization of industry and knowledge transfer, and competition - which in turn lead to achieving the best value for public money, integrity, and fairness.

Entry of SMEs into competitions

<The new system aims to develop local content and support local small and medium enterprises (SMEs) mainly through the inclusion of the local content preference regulation for SMEs and listed companies in the financial market, which includes a number of mechanisms, including favoring and prioritizing the national product, which contributes to strengthening the local economy and creating new job opportunities. The new system also gives SMEs priority in some tenders and exempts them from providing the initial guarantee, and encourages family businesses to list on the capital market to preserve them and protect their future, thus developing their contribution to GDP.

The system also encourages family businesses to list on the capital market to preserve them and protect their future, thus developing their contribution to GDP.

Promoting foreign investment

The new Government Tenders and Procurement System contributes to promoting foreign investment by providing a more attractive and competitive investment environment, in addition to introducing the method of localization of industry and knowledge transfer that aims to create job opportunities. The system is also a key enabler to achieve the objectives of the Kingdom's Vision 2030 by raising spending efficiency and enhancing the effectiveness of financial planning for government entities, managing financial resources effectively, and organizing and governing procedures related to government procurement in accordance with international best practices.

New Government Tenders and Procurement System is a key enabler to achieve the objectives of the Kingdom's Vision 2030 by raising spending efficiency and enhancing the effectiveness of financial planning for government entities and managing financial resources effectively. It is noteworthy that the new system meets the needs of the public and private sectors and takes into account the contractors and contractors sector, as a clear mechanism has been established to adjust contract prices and compensation in the event of rising prices of raw materials, customs duties or taxes or if the contractor faces material difficulties that could not be expected during the implementation of the contract, and the government entity has been given the right to disburse payments directly to contractors and subcontractors according to specific controls.