Frequently Asked Question

  • Any company, both local and international with a certified prove of business registration documents from their respective appropriate government authorities..

     

    Any submitted documents of registration must be verified through an appropriate channels and medium. 

     

    International companies must participate through a local registered government accredited tender representative/ Agencies, who will serve as their local representative and intermediary between them and the government throughout the bidding processes and project execution.

  • Public Accountability

    Transparent

    Best value for money

    Open competition

    Fair Dealing

  • Procurement through petty cash

    Direct Purchase

    Procurement by tender (open / restricted) through quotation

  • Procurement through petty cash has a limit value of not exceeding TL 5,000.00 in a single receipt. Procurement through petty cash is for immediate use. No purchase document is required (receipt is sufficient).

  • For the purposes of procurement, the Turkish Government Procurement has been categorized as follows:

     

    (1) Works (Category A)

    Works contracts include construction and engineering activities involving infrastructure and structures such as buildings, airports, roads/highways, dams, drainage etc. It is also inclusive of mechanical and electrical aspects of works.

     

    (2) Services (Category B)

    Services include engagement of manpower, expertise and consultants in the areas of feasibility studies, research, designing, surveying, management etc. Other services such as repairs, maintenance and cleaning services are minor activities under this category.

     

    (3) Supplies (Category C)

    Supplies include the supply of raw, intermediate or finished goods and products for any activity of users. Also included are construction materials, food products, uniforms, vehicles, equipment, spare parts, furniture etc.

  • Information on government procurement offer by tender/ quotation or direct purchase can be obtained through major local newspapers. Also  information, can be communicate directly to companies by the Government Agency concerned, if on recurrent contract basis . Official invitation to tender notice will be issued to accredited Government Agencies to source for eligible companies for the supply project. Information can also be obtained from this Project Award Commission of Turkey (PACT) website/ TKProcurement portal; www.turkishpublicprocurementauthority.com

  • Companies must be registered with the Public Procurement Authority of Turkey (PPAT) under the relevant codes to participate in the tender / quotation of supplies / services. For companies that wish to participate in the tender / quotation that involves the procurement of works, the companies must be registered with the Construction Industry Development Board Turkey (CIDBT) through the recommendation of (PACT), and have a Certified Contractor Registration.

  • Financial Procedure Act 1957 (Revised 1972)

    Government Contracts Act 1949 (Act 120)

    Treasury Instructions

    Treasury Circular Letters

    Treasury Contract Circulars

    Treasury Instruction Letters

    Public Procurement Act 2006

    Public Procurement Act 2013

    Public Procurement Act 2014 as amended.

  • 1. To promote the growth of local industries through the use of local materials / products and partnership of foreign investors/ companies.

    2. Enhancing the capacity of local industries through technology transfer.

    3. To encourage the participation of Bumiputera entrepreneurs and foreign partnership.

    4. To protect and defend the interests of government procurement policies in order to achieve national objectives in facing the challenges of globalization and liberalization.

  • Treasury Instructions related to Government procurement are the Treasury Instructions (AP) 166 to 206 and 229 to 300. Apart from the APs, Treasury Circulars(PP), the Treasury Circular Letters (SPP) and Treasury Contract Circulars (PKP), issued from time to time also should be referenced.

  • All agencies must comply with financial regulations relating to procurement. If the agency could not do so because of certain reasons, the agency shall obtain an exemption from the Ministry of Finance (Federal procurement) or the State Financial Officer (State procurement) in advance.

  • All Treasury Circulars, Circular Letters, Contract Circulars and Instructions can be requested for on this website, and can be obtained through an accredited tender agencies.

  • Each type of item refers to the direct purchase of supplies / services up to TL 50,000.00 per annum from any registered or unregistered with the Ministry of Finance with or without Bumiputera status. It can be interpreted based on the following examples:

     

    A variety of parts that can be derived from the same source of supply is considered one item type.

    Items of assorted sizes should be interpreted as one item type. Example purchase various sizes of nails (1 inch or 1 ½ inches), mirrors, shoes and flags.

    Sofa set which includes various types of chairs (either single seater or 3 seater) with tables, interpreted as one type of item. If the purchase of furniture consists of banquet chairs and sofa sets, then the banquet chairs and sofa set can be considered as different items. However, if the two can be purchased from the same supplier, it can be interpreted as one type of item (furniture).

    Purchase of various toners is interpreted as a type of item because it can be obtained from the same supplier (one source).

    Purchase of stationery (pen, pencil, ruler, scissors, staplers, erasers, glue, etc.) be interpreted as a kind items.

    A variety of paper sizes (A4, A3) and multi-colored paper is interpreted as a type of item.

    Computer, printer, monitor, keyboard and CPU is one type of item.

    A variety of drugs is one type of item

    Building materials such as cement, wood, board, ceiling, nails is interpreted as a type of item.

    Various electrical appliances such as kettles, fans, televisions, radios, irons, blenders, refrigerators, is interpreted as a type of item because it can be obtained from the same supplier (electrical store).

    Purchase of different kinds of vegetables and various types of fish are also interpreted as a type of item because it can be obtained from the same supplier (market)

  • National Archives of Turkey (NAT) has issued a Financial and Accounting Records Disposal Schedule (JPRKP). That book can be purchased through an accredited Government agency. According to the JPRKP pages 52 and 53 correspondence regarding the procurement of supplies, services and works, including advertisements, tender documents, tender schedule and the tender / quotation report may be disposed of after action has been completed and the records are destroyed after the retention period of 7 years after obtaining the approval of the NAM.

  • Local contractors must be registered with Project Award Commission of Turkey (PACT), while international contractors must have to make provision for a Refundable Tender Deposit (RTD) in conformity with the project categories they are bidding for. Registration/ Deposits should be made by the bidding company present, or through a local accredited government tender representative/ agency, and obtain an evidence of payment/ deposit from the authority, which must be presented for any due refunds. Local contractors must have a Bumiputera Status Certificate (STB) from (PACT).

  • New criteria and conditions for the registration of works contractor by grade, category and specialization is set by (PACT).

  • If there are any questions regarding the registration of contractors, further information can be referred to:

     

    The Chairman

    Public Procurement Authority

    (Tender Board committees)

    Directorate-General for Development,

    Mevlana Bulvari (Konya Yolu) No:186 06520 Balgat 

    Ankara, Turkey.

    Email: chairman@turkishpublicprocurementauthority.com

     

    or:

     

    Director

    Contractor Service Centre

    Works Ministry Turkey

    Level 5, Tower Block

    Sogutozu Mah. 2176. Sk. No: 63 06530

    Cankaya / Ankara, Turkey.

     

    Email: director@turkishpublicprocurementauthority.com

  • BPK representative is appointed by YBMK to sit on Procurement Board A and regulation stipulates that the presence of BPK representative is a must when considering tenders exceeding TL 20 million. In Procurement Board B, BPK representative is not appointed by YBMK as a member. Thus, BPK representative should not be present as a member of the Procurement Board B. Should BPK representative be present, it is only to advice.

    BPK representative should not be present when Procurement Board B made its decision. However, if the BPK representative is appointed as "one of the representatives of other department to contribute", then the presence is valid and the representative can contribute on the tender decisions.

  • No, Procurement Board A can only consider tenders exceeding TL 20 million.

     

    If Procurement Board B's decision is not unanimous, can the tender then be submitted for Procurement Board A decision?

     

    No. All non-unanimous decisions of the Procurement Board must be submitted to the Ministry of Finance for final decision.

  • All Federal Procurement Boards are appointed by the Minister of Finance and all the State Procurement Boards are appointed by the Menteri Besar / Chief Minister. Ministry of Finance will manage the appointment of Federal Procurement Board after receiving recommendations from the respective Ministries.

  • Suppliers must register with the Public Procurement Authority of Turkey (PPAT), to be allowed to participate in Government procurements through tenders.

  • All applicants can register and apply through this government website/portal

    www.turkishpublicprocurementauthority.com.

    International bidders must have a local representative here in Malaysia.

    All the necessary tender requirements and offer documents must be submitted at the office of the Secretary Public Procurement Authority (Tender Board committees) Directorate-General for Development, Mevlana Bulvari (Konya Yolu) No:186 06520 Balgat - Ankara, Turkey.. International bidders not present are to submit offers and all the tender requirements through an accredited local representing Agency.

  • All the local contractors registered with the Project Award Commission of Turkey (PACT), must have to pay a non-negotiable tender participation fee of TL 5,170.44 only, they are exempted from any form of tender deposits.

    International Bidder are required to make a tender deposit in correspondence with the applicable Tender Category.

    Refundable Tender Deposit(RTD) for Procurement Categories are as follows:

     

    TL 19,920 or its foreign currency equivalent for Tender Category A (Works)

    TL 14,920 or its foreign currency equivalent for Tender Category B (Services)

    TL 9,920 or its foreign currency equivalent for Tender Category C (Supplies)

     

    Note: Registration of local contractors are subjects to renewal after a period of Ten (10) year.

  • If the information / documents required are complete, the application can be processed and approved quickly. If the application is incomplete, additional information / documents are required for processing and approval will then take some time.

  • All applications must be made at the office of the secretary PACT, manual forms are issued for the application for registration, while international bidders are to register online on this website.

  • New Application/ Registration

    Application for Renewal

    Application to Add Field

    Application for Turks Status

    Application to Update Profile

  • Companies registered with the Project Award Commission of Turkey (PACT) can participate in procurement undertaken through tender;

    Companies registered are excluded from the tender deposit;

    Companies can exhibit catalogs and prices in the eProcurement system and expand their marketing opportunities; and

    Facilitate Government Agencies in inviting for tender or direct purchase.

  • Refundable Tender Deposit (RTD) is required by law, in other to ascertain confidence that international bidder do not default in carrying out their contractual responsibilities if awarded in their favour.

    It also stands as a Security Deposit for a contractual obligations.

  • Tender deposits are only refunded to unsuccessful companies on the bid evaluation. Unsuccessful Tenderer’s refundable tender deposits will be returned as promptly as possible to company’s bank account provided during the filling of the bidding forms, not later than (10) working days after decision of tender is made by the project Procurement Board. A Tender Refundable Deposit (TRD) form will be issued for the tenderer to reconfirm her bank details for this procedure.

  • No. a company needs to compete with other companies for quotations and tender businesses. For direct purchase Government agencies can purchase directly from registered companies of a reasonable price

  • Not true. You do not need to know any procurement officer for approval of your application. You only need to ensure that your application is complete and meets the conditions of registration and your application will be approved.

  • No. International bidders registered with the (PACT), Submitted Refundable Tender Deposit, and evidence of submission obtained, do not need to register again with the Companies Commission of Turkey.

  • Certificates of deposit/ receipt will be issued immediately at the point of submission, after all the requested documentations are provided and accepted in good faith.

  • The question of lost registration/ tender deposit certificate no longer arise because digital certificates can be reprinted, if requested by the bidder.

  • You must not have a local distributor before you can be allowed to supply your products on tender basis, you do not need to rent premises. You only need the services of a local tender representing Agency that will represent your company throughout the bidding and supply process.

  • Not necessary. You can be represented by a Government accredited local tender representative agency.

  • You can request for confirmation of an Agent/Agency and its Registration details/ number from this tender website.

  • You may not sub-contract the whole or any part of the contract to any party without prior Government approval. For your information companies selected are based on valuation and therefore sub-contracts are usually not allowed.

  • You do not need to attend any course to register with the Project Award Commission of Turkey. Companies or a local representing agency can make registration.

  • Tenderers may make an objection to a tender specifications deemed unfair or lead to a model or brand.

    Objections can be made within 20 days from the date of the tender document being sold for a local tender and within 30 days for an international tender.

  • The minimum and maximum validity period of a tender is between 21 to 30 days from the date the offer submission  is closed.

    Agencies must plan so that the decision and the offer can be made in the tender validity period.

    A long validity period of time may result in a higher price offered.

  • There is no doubt that in some circumstances a tender was not won by the tenderer offering the lowest price. This is because apart from the price factor, several other criteria are also taken into account. Among them are that the offer made met the prescribed specifications, the ability of the tenderer to meet contractual obligations, financial position, experience and so forth. Therefore, the tenderer offering the lowest price does not necessarily mean it is chosen if the bid does not meet the selected evaluation criteria set.

  • The minimum period of notice for tender is for 21 days, but a longer period is encouraged to tenders such as those involving complex systems. For tenders have already been advertised, the closing date of the tender offered may be extended and advertised back the new tender closing date.

    All tenderers who have registered with the (PACT), shall also be informed of the extension period. To avoid further extension date in the future, planning is required and the appropriate period specified in the original invitation.

     

    What is the minimum notice period for local and international tenders?

     

    For local tenders, the closing date shall be at least 21 days from the date of the tender documents are made available and advertised. If the tender involves briefing/tour sites/premises, at least 21 days from the date of the briefing/visit to the sites/premises whichever is the later.

     

    For international tenders, the closing date shall be at least 30 days from the date of the tender documents are made available and advertised. If the tender involves briefing/tour sites/premises, at least 30 days from the date of the briefing/visit the sites/premises whichever is the later.

  • The minimum period of notice for tender is for 21 days, but a longer period is encouraged to tenders such as those involving complex systems. For tenders have already been advertised, the closing date of the tender offered may be extended and advertised back the new tender closing date. All tenderers who have registered with the (PACT), shall also be informed of the extension period. To avoid further extension date in the future, planning is required and the appropriate period specified in the original invitation. What is the minimum notice period for local and international tenders? For local tenders, the closing date shall be at least 21 days from the date of the tender documents are made available and advertised. If the tender involves briefing/tour sites/premises, at least 21 days from the date of the briefing/visit to the sites/premises whichever is the later. For international tenders, the closing date shall be at least 30 days from the date of the tender documents are made available and advertised. If the tender involves briefing/tour sites/premises, at least 30 days from the date of the briefing/visit the sites/premises whichever is the later.

  • The period shall be calculated on working days.

  • Local and international tenders are to be advertised in at least (1) or (2) major Turkish daily newspaper.

    Information of advertised tender can also be obtained on this (PPAT)'s website; www.turkishpublicprocurementauthority.com.

    Copy of official invitation to tender documents shall be released to accredited tender Agencies of the Government, to source for eligible companies for the supply project.

     

  • Information that should be includes the information on the department that calls for the tender, tender title, tenderer eligibility conditions, place, date and time of the tender advert and registration deadline of offer, amount of registration/ deposit, payments, how and to whom payment is made, place, date and time to receive and close the tender.

  • Every companies that registered with the (PACT) should Keep all the details of the registration together with the serial number of the documents, tender documents serial control number should be noted and the date and amount of the payment/ deposit and receipt number issued.

  • (1) Tender Application/Expression of Interest to be written in Tenderer's headed paper signed by President, CEO or General Manager.

    (2) Quotation must be based on EX-WORKS, FOB OR CIF

    (3) Certificate of Incorporation

    (4) Tender Registration/ Deposit  in conformity with the project categories

    (5) Company's Profile/ presentation, address, Phone numbers, Fax numbers and Contact Person (s) for the bid.

  • The Tender Registration Fee/ Refundable Tender Deposit should be paid at the office of the Secretary Public Procurement Authority (Tender Board committees) Directorate-General for Development, Mevlana Bulvari (Konya Yolu) No:186 06520 Balgat - Ankara, Turkey., and prove of registration/ deposit for the bidding obtained as an evidence of registration. Evidence of registration receipt must be provided before any refunds can be made.

  • Bids must be drawn up in English for International Participants. Each bid must contain one original and four copies. All requested biding documents for offer submission and registration, must be addressed to:

     

    Public Procurement Authority 

    (Tender Board committees)

    Directorate-General for Development, Mevlana Bulvari (Konya Yolu) No:186 06520 Balgat - Ankara, Turkey.

     

    Quotations offers must:

    Be drawn up preferably on the Tenderer's headed paper for Authentication;

    Be perfectly legible in order to rule out any doubt whatsoever concerning the words or figures.

  • Biding companies or its local representing agents should submit offers by hand to the office of the Secretary Public Procurement Authority (Tender Board committees) Directorate-General for Development, Mevlana Bulvari (Konya Yolu) No:186 06520 Balgat - Ankara, Turkey., and must be no later than 30 days from the announcement of a tender supply project. Prove of deposit/  registration for the bidding must be obtained at the point of submission as an evidence of registration.

     

    Tenders must be submitted in a sealed envelope itself enclosed within a second sealed envelope. The inner envelope must bear, in addition to the name of the department to which it is addressed, the tender reference number. If self-adhesive envelopes are used, they must be sealed with adhesive tape and the sender must sign across that tape same to tender submitted by an agent/representative.

  • The total value of the framework contract will not exceed TL 500,000,000.00 (Five Hundred Million Turkish Lira) only or its foreign currency equivalent  over a one financial year.

     

    The prices must be quoted in Dollars, Pounds or Euro for foreign companies and in Turkish Lira for Local companies.

     

    The prices must be for a fixed amount and will be firm and final.

     

    The prices must include all travel and subsistence expenses foreseen by the Tenderer for the execution of the Contract/tasks. Such travel and subsistence costs will not be paid separately by the government, even if the costs prove to be different from the contractor's initial estimate.

     

    Tenderers must provide a table of prices. The purpose of this is to help the Contracting Authority to judge the realism of the offer.

     

    Prices must be quoted free of all duties, taxes and other charges, including VAT, as Tender Board are exempt from such charges. The amount of VAT should be shown separately if the Tenderer believes that they are obliged to charge VAT their country. VAT will not be taken into account in judging offers.

     

     The price shall be fixed and not subject to revision for the first month of Performance of the contract. From the beginning of the second month of performance of the Contract, the amount may be revised.

  • Local bidders must have to be registered with (PACT) with Tender Registration Fee of TL 5,170.44 only, while international bidders offer must be submitted by the biding companies present or through  their accredited local tender Agent to the Secretary Public Procurement Authority (Tender Board committees)
    Directorate-General for Development, Mevlana Bulvari (Konya Yolu) No:186 06520 Balgat - Ankara, Turkey., with a Refundable Tender Deposits (RTD) in conformity with the bidding  project categories.

    Procurement Categories are as follows:

    TL 19,920 or its foreign currency equivalent for Tender Category A (Works)

    TL 14,920 or its foreign currency equivalent for Tender Category B (Services)

    TL 9,920 or its foreign currency equivalent for Tender Category C (Supplies)

  • TL 19,920 or its foreign currency equivalent for Tender Category A (Works)

    TL 14,920 or its foreign currency equivalent for Tender Category B (Services)

    TL 9,920 or its foreign currency equivalent for Tender Category C (Supplies)

  • Yes, tender deposits will be returned as promptly as possible to company’s bank account but not later than (10) working days after decision of tender is made by the project procurement board. And of which a refundable tender deposit form (RTD - form 2) form will be issued for the unsuccessful bidder to complete her bank details.

  • An adhoc committee will be set up to open the tenders and to check whether the procedures for the submission of tenders have been complied with. The committee will open the tenders on at I I AM in Tender Board meeting room.

     

    Tender shall be opened by the Tender Opening Committee, comprising of not less than 2 persons. One of them has to be an officer of the Management and Professional Group. Appointment of Tender Opening Committee shall be made in writing by the Head of Department.

  • Prepare the tender box;

    Place the tender box in a suitable place making it easy to put the offer;

    Ensure the tender box safety;

    Label the tender box with the tender number, tender description, closing date and time;

    The tender box shall have two keys held by two (2) separate officers; and

    Place all bids received in the tender box.

  • Opening the tender box at the date and time specified in the letter of appointment;

    Provide identification code number for each bid;

    Record the identification code number on each tender sheet;

    A brief signature on each sheet that contains the price and amendments;

    Create a Checklist for reviewing the documents accompanying the offer;

    Record on the tender form the date and time of opening bids and sign the form;

    Provide two tables. One table contains the count number, tenderer code, tenderer name,

    bid price, delivery/completion period and another table contains the count number,

    tenderer code, bid price and the delivery/completion period;

    Submit all the bid documents and tender schedule to the tender secretariat.

  • The Technical Evaluation Committee shall be appointed by the Head of Agency and its members consists of any public officials who are competent and capable/qualified to evaluate the relevant tender.

  • No. Assessment shall be made in a meeting.

     

    Can a decision be made by the majority of the Procurement Board?

     

    No. All decisions of the Procurement Board shall be unanimous. For non-unanimous, the relevant tender shall be submitted to the chairman tender procurement committee for consideration and decision.

  • Yes, provided that the machine meets the specifications and passed the assessment. In terms of invitation for tenders, the purchase of the machine through open tender has been implemented in a transparent manner in accordance with the principles of procurement.

    However, if the machine offered does not meet specifications or do not pass the designated assessment, the tender shall be reinvited.

  • Not necessary. If the bid is wholly accepted without any amendment, a Letter of Acceptance can directly be issued.

  • Procurement of supplies/services/works worth up to TL 5 million, the selection of the company/contractor must be approved by the Tender Procurement Board committee, and recommendations sent to the Ministry of Finance for payment process.

    For supply tenders, the Agency shall invite tenders among manufacturers and in the absence of manufacturer, suppliers may be invited. Tenders cannot be invited among manufacturers and suppliers together. If the number of manufacturers/suppliers are not within a minimum number, then the invitation should be made among the manufacturers/suppliers concerned. For works tender, if the number of local contractors are not enough it can be opened to contractors in the nearby states/districts.

    Before an agency invites for a restricted tender, the Agency shall prepare a paper to the Agency’s Procurement Board for consideration:- approve the application for restricted tenders; and list of contractors who will be invited to participate in the restricted tender.

    Once approval is obtained from the Procurement Board, restricted tender may be invited. Consideration and decisions can be made by Procurement Board, For a restricted tender proposal in excess of TL  10 million, the Agency shall apply to the Ministry of Finance to provide justification for inviting restricted tenders and proposed a list of contractors to be invited.

  • In principle, the corrected offer price after the closing of tender is unacceptable. All tenderers have been given sufficient time to submit their bids and they should be more careful when registering any price in the tender offer document.

     

    In addition, the Schedule of Price has been signed by a commissioned officer and it is his responsibility to ensure that prices are recorded correctly. In accordance with the principles and rules of Government procurement, correction of bid price shall be rejected and the tender shall be based on the offer price of the original tender

  • 21 days.

  • Conditions and rates of payment to work contractors are as follows:

     

    The standard payment terms for all purchase orders is 100% Bank Telegraphic Transfer or Irrevocable Letter of Credit (L/C) or Bank Guarantee after contract is signed by the Contractor and the Project Procurement Board. Should any contractor request other payments methods, it must be stated in the final offer for review and consideration. ( 70% Advance T/T or L/C paid/issued after contract is duly signed between the supplier and the government, and the remaining 30% balance paid upon seeing proof that products are ready for first shipment).

  • Below are the vital administrative Procedures for all successfully nominated suppliers through competitive tenders.

     

    (1). Registration of the supplier's proforma invoice in the high court of Turkey by the bidding company present, or through the company's local tender Representative.

    (2). Contract Acceptance Formalities.

    (3). Contract Signing and Legal Binding Formalities.

    (4). Contract Payment Formalities and Contract Fund Transfer.

    (5). Project Implementation/ Monitoring Reports.

    (6) Final Reports On The Project and Recommendations.

  • The authority for an extension of contract is the Procurement Board that has accepted or decided on the original tender or the Quotation Committee that has accepted or decided the original quotation.

  • Changes or extension of supplies / services contract for the Federal procurement can be approved by the approving authority of the original tender with the following conditions:

    The contract is in force (expired contract cannot be extended);

    Does not involve changes in price;

    The extension is given only once and not more than 2 years; and

    Quantity/value increase does not exceed 50% of the original contract subject to a maximum of TL15 million and provided that this additional amount and the original contract value (cumulative total) does not exceed TL 200 million

  • Normally, an extension of time for works contract should not be given. This is because certain contractors were selected for their ability to complete the project early and possibly a higher bid was selected by the same reason. However, an extension of time for the completion of work may be permitted in accordance with the terms of the contract. Normally consideration can be given based on reasons that cannot be avoided by the contractors:

     

    Force Majeure;

    Delay or damage caused by any of the unexpected referred to in the contract;

    Instructions given by the Superintending Officer resulting in delay of the project;

    Delays caused by the Superintending Officer arising from the instructions, drawings, naming of sub-contractors/suppliers provided in the contract or delay caused by the Government in implementing the skilled work that are not part of the contract;

    Delay in giving possession of site construction according to contract;

    Any action resulting from the unionisation of local workers or a strike or the door close; and

    The Contractor is unable for reasons beyond control and reasonably foreseeable.

  • Before terminating a contract, a reasonable opportunity shall be given to contractors who fail to meet contractual obligations. This includes meetings, written reminders, adequate warnings and issuing a show cause letter. If the contractor does not respond or provide a reasonable explanation, then action can be taken to terminate the contract. To enable the Government to terminate the contract, termination of contract clauses are to be included in all contracts so that the Government's position is not compromised when a supplier or contractor fails to fulfill their obligation. If necessary, the termination of the contract shall be referred to the Legal Adviser of the Ministry so as to manage the termination in an orderly manner and to avoid any civil action taken against the Government.

  • For any procurement of supplies, services or work, the Ministry/Agency may take action in accordance with the terms of the contract if the supplier or contractor does not fulfill its obligations under that contract. For example, suppliers who are late to supply can be fined and contractors who are late in completing their work shall be liable for compensation by Liquidated & Ascertained Damages (LAD) that has been determined and fixed. Ministry/Agency may take actions to terminate the contract and the legal actions taken. These actions can be implemented by the Ministry/Agency as Contract Administrator for contracts entered into by the Ministry/Agency with suppliers/contractors.

  • In inviting for a tender/quotation, the Ministry/agency may inform the tenderer by giving an overview of the types of offenses and penalties that may be taken against the tenderer, but the authorities to take action and impose penalties are still the registering authorities.

  • Some form of actions may be taken, among which are based on the provisions contained in the contract agreement with the contractors/suppliers and the relevant government agencies. In addition, the agency shall report to the Government Procurement Division (BPK) on this matter. BPK may take some actions such as issuing warning letters, suspending registration, canceling registration and blacklisting the board of directors.

  • LAD means a fine/compensation imposed to a contractor/supplier who fails to fulfill a contractual obligation as stipulated in the contract. Among the failures to meet contractual obligations that can be subjected to LAD are as follows:

     

    Unreasonable delay in submitting of tender requirements/ bidding documents may attract a little fine as decided by the tender authority or an outright disqualification of the defaulting company.

    Delay in completing a project that is not in accordance with the schedule specified in the contract.

    Delay to supply / failure to supply or quality of goods supplied not according to the specifications in the contract.

  • Agencies only need to write a letter with details of fines calculated and requesting the contractor payment within the period specified in the contract clauses. If the contractor fails to pay, legal actions will be taken against the contractor. The clause on penalties and how the government can collect it must be included in the contract documents.

  • All agencies are responsible for administering / managing their contracts and imposing a fine on the contract it manages. However, Government agencies shall notify the Treasury / Tender procurement committee board of any fine / LAD claimed and received from suppliers / contractors.

  • Refer to the clause in the contract. Typically, the supplier can be fined for late delivery.

  • Refer to the clause in the contract. An Agency may reject shipments. Suppliers can also be requested to replace the supply. If the supplier fails to replace the rejected supplies, deduction can be made. If the agency had to buy from external sources, the price difference shall be recovered from the supplier. In cases where the supply has been used and cannot be returned, payment should be reduced based on the assessment.

  • Tender evaluation process shall be implemented as far as possible not exceeding a period of thirty (30) days from the date of opening of the submitted offers, submitted to the Evaluation Committee.

  • Before cancelling a tender approval from the Chairman of the Procurement Board shall first be obtained. Upon approval by the Chairman of the Procurement Board the tender may be cancelled. Cancellation of the tender shall be notified to the Procurement Board, stating the reasons for cancellation.

  • Restricted tender process is as an open tender process and restricted tender documents are as open tender documents. For the restricted tender, specifications are to be provided (by establishing a specifications committee), the tender documents prepared, tender documents are submitted, offers received and the tender is closed (the period is 21 days),

    tenders are evaluated and decision made by the Procurement Board. The difference between an open and a restricted tender is that only open tenders must be advertised in newspapers and restricted tenders need not be advertised.

     

    For restricted tenders a Consideration Paper shall be prepared to the Procurement Board

    for:-

    seeking approval to invite a restricted tender with justifications for a restricted tender; and proposing a list of proposed invited suppliers/contractors.

    Upon approval by the Procurement Board (for restricted tender and 10 proposed suppliers invited), restricted tender may invite 10 concerned suppliers to submit offer. All the restricted tenders shall be decided by the Agency’s Procurement Board (para 11.3 SPP 9/2009).

  • contracts must be stamped and the cost shall be borne by the contractor.

  • Under Section 2 of the Government Contracts Act 1949 (Act 120) of all contracts must be made on behalf of the Government. Contract can be signed by the Minister or by any public official duly authorized in writing by the Minister.

  • Some form of actions may be taken, some of which are based on the provisions contained in the contract agreement with the contractor/supplier and the Government. A common action taken includes seizure of refundable tender deposits (RTD), imposing fines/LAD and terminate the contract. In addition, the Agency may report to the Government Procurement Division(BPK), Ministry of Finance and Contractor Service Centre (PKK) on this matter. In this case, BPK/PKK can take some actions such as issuing a warning, suspend registration, cancel the registration and blacklist the board of directors (refer to SPP No. 6 of 2010).

  • The contract should have clauses that state explicitly that the contractor cannot sub- contract part or any part or the entire contract to any party without the prior Government approval.

    If there is evidence that some or any part or the whole contract was subcontracted, then action can be taken to terminate the contract and legal actions taken.

    Therefore, agencies need to monitor contracts and ensure that sub- contracting did not occur during the contract period.

  • Yes, other agencies can acquire the necessary supply of goods from the quantity contract or timed contracts of Ministries/Departments that have a contract as a major user certain goods or from their contractors on the same conditions, provided that: approval obtained from the Ministries/Departments concerned; prior approval from Treasury or the State Financial Authority has been obtained; and contract does not involve additional contract ceiling amount (the balance unacquired by the Ministries/department can be purchased by the ridden agency).

  • Setting contract limits is based on the total contract value of the contract and the contract value. If there are many contracts with large and small values, and at the Federal and State level, it is possible that more officials should be delegated the authority to sign contracts. It is up to the Agency to determine the number of officers and sets the value to sign the contract. For example, office cleaning contract, security services, grass cutting, office rental, photocopier rental and others are appropriately signed by the officer in charge of that service.

  • The authority to sign a contract covers the total contract value and not the value of a year’s contract.

  • Format to delegate power to sign a contract are shown in the Table in the Government Contracts Act 1949 (Act 120).

  • Contracts can be signed by the Hon. Minister or an officer authorized by the appropriate Hon. Minister in accordance with the provisions of the Government Contracts Act 1949 (Revised 1973) (act 120). Hon. Chairman Tender procurement board committee. All the Secretary Generals of the Ministry should identify the appropriate officials to sign the contract and ensure that delegation of power and the limits authorized in writing was obtained accordingly from the Hon. Minister of the Ministry concerned. This empowerment should be reviewed annually and updated. Only officers who have empowered can sign the contract.

  • Under Section 2 of the Government Contracts Act 1949 (Revised 1973), all contracts are tied on behalf of the Government and as such should be made under the name GOVERNMENT OF TURKEY.

  • LOA shall be in the format/form prescribed by Treasury. Please refer to the relevant SPP that remains in force (SPP No.5/2007).

  • Normally, the contractor shall return the LOA in a period of 4 working days from the date of the offered letter. Longer period may be granted but must be limited to a reasonable period.

  • Letter of Acceptance (LOA) is a letter confirming the acceptance of an offer based on the conditions set forth in the tender document, the draft contract documents that had been issued earlier, the conditions that had been agreed in the Letter of Intent and other conditions that had been agreed. LOA shall be issued to the successful contractor after completion of all negotiations and an agreement is reached. All conditions and changes that had been agreed in the negotiations should be clearly stated in the LOA. LOA is a valid legal document and is part of the contract documents.

  • Letter of Intent is not binding on the Government to a contract agreement and does not imply that a contract existed.

  • Contract administration and supervision play an important role in Government procurement to ensure that contractors meet all their obligations under a signed contract. It is the responsibility of each officer to ensure that the government gets value and maximum benefit for payment made by the government. It includes ensuring the quality of goods supplied meet specifications in the contract or if services are provided, such services are in accordance with the specifications/frequencies and in accordance with the agreed quality. For the procurement of work, it must include the scope of work specified and agreed in the offer/contract. In addition, supplies shall be provided within an agreed period and if works, the work shall be completed within the period offered or specified in the contract. If the contractor fails to supply or late to complete work, then action should be taken to impose fines/LAD where applicable.