JUL 2003

SINGAPORE’S GOVERNMENT PROCUREMENT SYSTEM SINGAPORE’S GOVERNMENT PROCUREMENT SYSTEM

Coverage 4 4 Structure of government procurement 4 4 International cooperation 4 4 Basic principles and objectives 4 4 The GP process & procedures 4 4 Legislation 4 4 Bid challenge system

Structure of GP   Singapore is a city state without sub- central entities   Government Procurement (GP) policies centrally governed by MOF, in consultation with Government Procuring Entities (GPEs) i.e. ministries & statutory boards   Procurement fully decentralised to GPEs   Auditor-General audits for compliance

International Cooperation   Sept 97 - Singapore acceded to the 1994 Agreement on Government Procurement (GPA) under the WTO   Member of the Government Procurement Experts Group (GPEG) under APEC   Bilateral Free Trade Agreements - GP is a chapter in the ANZSCEP, JSEPA, ESFTA, SAFTA & USSFTA

Basic Principles and Objectives   Transparency   Overall value-for-money   Fair, open and competitive system   Strong stance against corruption

GP process Overview   Determine requirement   Obtain project/fund approval   Estimate the procurement value   Determine the appropriate GP procedures   Small Value Purchases : Up to S$2,000   Quotations : Up to S$50,000   Tenders : Above S$50,000

  Invite offers   Receive & Evaluate offers   Obtain purchase approval   <$60,000 - Quotation Approving Authority   <$1 million - Tenders Board A   <$10 million - Tenders Board B   >$10 million - Tenders Board C   Issue letter of award

Small Value Purchases   Up to S$2,000   Minimal rules   Purchase directly from supplier if the price is known and is considered reasonable   Verbal/written quotations from several sources encouraged if price is not known

Quotations   Up to S$50,000   Purchase via written quotations   2 officers responsible for purchase   1st officer (QRO) invites, receives, evaluates and recommends   2nd officer (QAA) approves the purchase   At least 3 suppliers are invited to quote, unless approved by QAA

Tenders   Above S$50,000   Purchase via Tenders   3 Tendering Procedures:   Open Tender (The norm)   Selective Tender   Limited Tender   Evaluation by Tender Evaluation Committee   Approval by relevant Tenders Board

Open Tender   Most common method   Tender Notices published electronically in:   The Government Electronic Business System (GeBIZ) (   Tender Price Schedules and Tender Awards also published in GeBIZ

Selective Tenders   Suitable for complex projects   Involves 2 stages :   1st Stage - Open Pre-qualification of interested suppliers (on technical merit)   2nd Stage - Qualified suppliers invited to tender   Pre-qualification notice, tender price schedules and award notices also published in GeBIZ

Limited Tender   Limited no. of suppliers are invited to tender   Allowed in the following cases:   No responsive offer from earlier open or selective tender   Sole agency/sole supplier   To ensure compatibility with existing equipment   Extreme urgency   for development of prototypes in the course of, research, experiment, study or original development

GeBIZ   Website (   Move towards electronic procurement for the public sector   Integrated one-stop electronic business centre for suppliers to trade with the entire government

  interface with financial systems   suppliers can view & submit quotation on-line and receive electronic PO and submit tender / quotation bids online

Legislation (WTO-GPA)   Singapore’s approach   GPA disciplines enforced by statute   Challenges adjudicated by a statutory entity   Compliance with the GPA statutorily enforceable before a statutory tribunal

  Government Procurement Bill brought through Parliament in Nov 97   Government Procurement Act (GP Act) assented to by the President on 1 Dec 97

  GP Act - Statute   Subsidiary legislation   Make clear the GPA obligations   Set down certain rules related to challenge proceedings   GP (Challenge Proceedings) Regulations, Application Order and GP Regulations published in gazette   Available at

Bid challenge system   Basis for challenge   Set out the GPA obligations of procuring entities in the legislation   Similar to the U.K. approach   Government Procurement Adjudication Tribunal   An entity set up by statute - statutory tribunal   Adjudicating body for challenges under the GPA

  Similar to the Canada approach   Tribunal handles complaint (bid challenge) of non- compliance with the GPA   The appointed Commissioner will conduct hearings and decide on the outcome of the challenge   Judicial Review of the determination allowed

Thank You