Reform of the national procurement system
Feb 10, 2016
Reform of the national procurement system
Why the reform
• Implementing the principles of the new constitution:– Fight against corruption (art 36 and 167)– Accountability and management control (art 1, 154);– Good governance
• Addressing the inadequacies of the 2007 regulation;• Answering to the expectations of public procurement
stakeholders and citizens;• Taking charge of the recommendations and propositions of
international partners.
The method followed
• A concerted and inclusive reform;• Information and compilation od proposals (website of SGG);• Progressive and pragmatic;• Integrated and global reform:
– Legal dimension;– Governance dimension;– Capacities reinforcement dimension;– Dematerialization of procedures;
Reform major axes
• The unity of the public procurement legal framework:
Major Axes
• New tools at the service of the contracting authority:
– A call for expression of interest: identification of potential competitors
– Design-build contracts (turnkey basis) awarded through competition after the Prime Minister authorization
Major Axes• New tools at the service of the contracting authority:
– Collective purchasing:
• Mechanism reserved for purchasing supplies of the same nature• Composed of two or more contracting authority who shares the bidding phase;• Signing of an agreement creating the collective agreement and determining the
coordinator and the modalities of the functioning of the collective
Major Axes
• Simplifying the procedures and encouraging the competition:– Documents of the administrative file:
• Tax certificate, certificate from National Social Security (CNSS), commercial register…
• Are not required except from the bidder to whom the awarding of the contract is considered;
– Documents of the technical file:• Current services: score indicating the human and technical
resources of the bidder;• Non current and complex services, in addition to the resources
score, letters of reference about achieved services
Major Axes• Simplifying the procedures and encouraging the competition:
– Reorganising the composition of the call for tenders committee and the jury:
• Removal random draw for the representatives of the contracting authority
• Removal of the convening of the representative of the Ministry of Commerce
• Presence of the representative of Ministry of Finance for procurements of more than fifty millions DH
• The necessity of the presence of an architect from the administration in the jury.
Major Axes• Reinforcement of the transparency and the information of
the bidders:
– Publication of the estimate of the services cost;
– Evaluation of the tender offer abnormally low or excessive in relation to the estimate of the contracting authority:
• Excessive offer: more than 20%;• Offer abnormally law: less than 25% for works contracts and 35%
for supply contracts and contracts for services other than studies.
Major Axes
• Reinforcement of the transparency and the information of the bidders:
– Procurement Methods:
• Restricted tender:
– Raising the threshold of this procedure to 2 millions DH;– Issuing an administrative certificate explaining the reasons of
using restricted tender
Major Axes• Reinforcement of the transparency and the information of the bidders:
– Procurement Methods:• Negotiated contract:
– Dedication of the collegiality through the establishment of a “ negotiation committee”;
– Abandoning contracts negotiated according trade usages.
• Negotiated contracts with prior publication and competition:– Accuracy of the content of the negotiation report explaining specially the
content of the negotiations, the value of the offers and the bidder chosen.
– Signing of the report by the negotiation committee instead of the contracting authority
– Publication in at least one national newspaper as well as in the public procurement portal.
Major Axes
• Reinforcement of the transparency and the information of the bidders:– Procurement Methods:
• Competition:– Granting of bonus to the best five projects whatever is the competition
consistency;– Convocation of a representative from the ministerial department
concerned with competition field to be in the jury;– Reduction of the timeframe:
» For publishing the competition to 15 days instead of (21 and 40 as the case may be)
» For informing the candidates with eligibility results to 5 days instead of 10 days
– Extending the timeframe for inviting the competitors chosen from the eligibility phase to submit their projects to 40 days minimum
– In case of consortium: the composition of the consortium cannot be modified between the date of submission of the application and the submission of the offers
Major Axes
• Clarification of certain provisions related to framework agreement and renewable contracts:
– Renewal for a maximum period of 3 and 5 years depending on the type of services;
– The first year: the commitment is on the amount corresponding to the needs to be satisfied or the prorate of the considered period;
– The final year: the commitment is on the amount corresponding to the needs to be satisfied or the remaining period;
– The cancellation of the contract is imposed when the foreseen amount for a financial year is not committed
Major Axes
• Clarification of provisions regarding study procurement:
– Obligation to obtain the opinion of the government general secretariat before launching any legal studies for the drafting of legislative and regulatory texts;
– Possibility of having a preliminary phase “ of definition” of goals and performance to achieve.
– Awarding study procurement on the basis of weighting technical and financial scores for choosing the most economically beneficial offer.
Major Axes
• Clarification of provisions regarding consortium:
– The contracting authority cannot limit the participation in procurement exclusively to consortiums or require their form;
– Each member of the consortium severally or jointly liable must have a certificate of qualification and classification or of approval when they are required;
– Obligation for the leader of the consortium jointly liable to justify the required qualifications and class
– Obligation for each member of the consortium jointly liable to justify the required qualification(s) and the class immediately < than required class
Major Axes
• Encouragement of the national enterprise:
– Reservation of 20% of the estimated amount of procurements to be launched in the financial year for the benefit of the national SME;
– Assignment of procurement for the SME access – Subcontracting in favour of the SME;– Confirmation of the national preference;– Reviewing prices for works contracts whatever are their execution
deadline.– Study contracts can be reviewed if the deadline ≥ 4 months
Major Axes
• Moralization and good governance:
– Annulment of the procedure:
• By a signed decision of the competent authority • Publication of the annulment decision at the level of the public procurement portal• Communication of a copy of the annulment decision to the members of the call for
tenders committee.
– Obligatory audit and control for contracts that exceed:• Five millions DH inclusive of all taxes for state and public establishments contracts;• Three millions DH inclusive of all taxes for local authorities contracts• One million DH inclusive of all taxes for negotiated contracts
– Development of aspects on which control and audit are based– Publication of the summary of the audit report at the public procurement portal
Major Axes
• Moralization and good governance:
– Limitation of the designation of authorised persons to the authorized officer and sub authorised officer
– Determining the conditions of production or non production of contradictory estimates in case of orders forms;
– Production of a note justifying the impossibility or the incompatibility of the service with having a competition
– Limitation of derogations from 200.000,00 DH inclusive of all taxes to 500.000,00 DH inclusive of all taxes for orders forms
Major Axes
• Moralization and good governance:
– Preparation of the completion report for the contracts of more than one million DH in 3 months maximum after the final receipt of the services;
– Prohibition of conflicts of interest for the members of the call for tenders committee on pain de nullity;
– A certificate by the bidder in this solemn declaration that he is not in a conflict of interests situation;
– Reinforcement of the fight against corruption
Major Axes
• Competitive call for architectural services:
– Procurement methods are:
• Architectural consultations for the projects with global budget less than 20 millions DH excluding taxes and for developments operations;
• Architectural competition is obligatory for projects with global budget more than or equal to 20 millions DH excluding taxes;
• Negotiated architectural consultations in the same conditions of the negotiated contracts;
• The cases of negotiated architectural consultations are notably:– National secret defence or public security, extreme urgency,
contract holder default – Building repair and maintenance contracts
Major Axes• Competitive call for architectural services:
– Architect remuneration:
• Between 4 and 5% of the estimated amount of work for construction or work development and restoration services;
• Between 3 and 4% for maintenance services and buildings reparation;• Fixed price per hectare in the architectural contract for developments
operations;• Calculation of fees of the architect on the basis of the actual work achieved
exclusive of:– VAT– Reviewing the prices– Compensation given to the successful tenderer– Penalties imposed on the successful tenderer
• The architect fees are increased by the amount of the VAT• The fees amount can be modified by a decision of the prime minister upon
the proposition of the minister in charge of finance
Major Axes• Progressive dematerialisation:
– Publication of information and documents of call for competition at the public procurement portal;
– Electronic bidding;
– Electronic reverse auction;
– Database of suppliers;
– Electronic joint purchasing;
– Modalities fixed by a decision from the minister in charge of finance
Conclusion• Roadmap for the implementation:
– Texts preparation and accompanying measures:
• GCC• Architect contract• Decisions
– Reorganizing the procurement committee;
– Launching of a training program
– Project of the National Monitoring Office for Public Procurement
Thank you for your attention