Procurement Policies

Procurement Policies

APPROACH
  • The procurement procedure should enable an optimum competitiveness and market-based approach and efficiency when implementing program operations and achieving the project outputs.
    • Should the procurement procedures be subject of a contract with a donor, financing authority or other contracting entity, the required type of procedure laid down in the contract shall apply.
    • Should there be no procurement procedure requirements in such contract, the existing procurement procedures laid down in this document shall apply.
    The internal procedures for procurement set out below shall apply for procurement from external financing sources and in case no requirements are specified by the financing source. The procurement procedures apply to procurement of the following:
    1. Goods (Purchase and/or rental)
    2. Space/facilities (Purchase and/or rental)
    3. Consultant services
    4. Authors (include all individuals and/or groups which are included in projects)
    5. Works
    The internal procurement procedures do not apply to purchases of one-time value of less than 6.000 MKD (example: petty cash purchases, office materials). Procurements from one vendor or one type of product/service within a calendar month that exceed the amount of 6.000 MKD shall not be excluded from the internal procurement procedures.

    GENERAL CONDITIONS FOR PROCUREMENT

    CONFLICT OF INTEREST 
    Procurement of related entities services or goods shall be in accordance to a mutual agreement by the shareholders. 

    GRATUITIES
    Associates must not request or accept gratuities, gifts, favors or anything of monetary value from vendors, sub agreement contractors or parties.  The provisions above do not apply in situations where the financial interest is not substantial, or the gift is an unsolicited item of nominal value (below 6.000 MKD).

    DISQUALIFICATION CRITERIA FOR TENDERERS
    Tenderers will be excluded from taking part in a procurement procedure if: 
    1. They are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;
    2. They have been convicted of an offence concerning their professional conduct by a judgment which has the force of res judicata;
    3. They have been guilty of grave professional misconduct proven by any means which the Company can justify;
    4. They have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the Company or those of the country where the contract is to be performed;
    5. They or persons having powers of representation, decision making or control over them have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organization or money laundering;
    All tenderers shall be required to confirm compliance with this section in the form of a signed statement.
    All criteria above apply to legal entities and are not applicable to physical persons as suppliers.
    Points (1) to (4) do not apply to the purchase of supplies on particularly advantageous terms from either a supplier which is definitively winding up its business activities, or the receivers or liquidators of a bankruptcy, through an arrangement with creditors, or through a similar procedure under national law. Should a financing authority (donor, client, funding agency etc.) provide additional qualification requirements to tenderers, such shall be taken into account when performing the procurement procedures.

    PROCUREMENT PROCEDURES FOR GENERAL PROCESSES
    The procurement procedures quoted further in this policy are applicable for the following thresholds*:
    * Value thresholds consider the total amount (excl. VAT) of one-time purchases, or the total annual amount in the case of recurring contracts (i.e. periodical invoicing). Annual amounts are calculated within one calendar year.
    1. Commercial practices/single source procurement for contract value less than:
    • Goods 200.000 MKD
    • Space/facilities 200.000 MKD 
    • Consultant services 200.000 MKD
    • Works 600.000 MKD
    1. Limited tender for contract value between:
    • Goods 200.001 – 3.000.000 MKD
    • Space/facilities 200.001 – 3.000.000 MKD 
    • Consultant services 200.001 – 3.000.000 MKD
    • Works 600.001 – 6.000.000 MKD
    1. Public tendering for contract value over:
    • Goods 3.000.000 MKD
    • Space/facilities 3.000.000 MKD 
    • Consultant services 3.000.000 MKD
    • Works 6.000.001 MKD


    COMMERCIAL PRACTICES/SINGLE SOURCE PROCUREMENT SELECTION
    This procedure is based on a single source procurement selection and follows the steps as mentioned bellow:
    • Prepare technical specification;
    • Research the local market for the availability of the required goods, works and services;
    • Obtain unit prices of items included in each package from suppliers, shopkeepers, catalogues, previous contracts, internet, etc., and using this information, cost each package;
    • Execute the procurement.


    EXTENDED USE OF SINGLE TENDER PROCEDURE
    A single tender procedure shall be used in procurements above the prescribed thresholds in the following cases of procurements:
    • Items which are intellectual property in ownership of one supplier/author on the market;
    • Items subject to licensing, where there is only one licensee (supplier) in the market;
    • Items subject to compliance with assets already owned by the company where only one supplier;
    • Where services are entrusted to public-sector bodies or to non-profit institutions or associations and relate to activities of an institutional nature.


    LIMITED TENDER 
    This method is used for off-the-shelf items of goods or standard specification commodities/services available from several sources of supply within the country. The following steps are to be undertaken:
    • Establish procurement committee 
    • Prepare technical specifications;
    • Prepare evaluation criteria;
    • Prepare list of suppliers broad enough to generate good competition, with at least three suppliers. Such list may be prepared based on the past experience, consultation with chambers of commerce, Internet, or direct market research;
    • Prepare Invitation to Quote (ITQ);
    • Send the ITQ to the suppliers; 
    • Receive quotations by a deadline; 
    • No public or formal opening of the quotations is required;
    • Prepare the evaluation form;
    • Process the evaluation scores of the panel, prepare and sign the evaluation grid;
    • Prepare and sign the contract with the supplier.
    The tender shall be cancelled if no successful bidder was selected by the evaluation panel. The evaluation panel may decide to enter into negotiations to conclude the contract with one of the bidders.   

    PUBLIC TENDERING
    Public tendering shall be conducted in accordance with the rules for limited tender set out above, with the following amendments of the above procedure: 
    • The invitation to tenders will be published in at least one daily newspaper and on the website of the company
    • Vendors will be provided a minimum of 1 week after the date the tender has been published to deliver quotations 
    Public tendering may be applied for values lower than those indicated in Point 6.12.2., if it is considered that good competition would be generated, and efficiency achieved.  Exceptions from established lines after negotiation procedures have ended are acceptable only with consensual approval of all committee members and the company manager. 
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