Amongst its main purposes, Saudi Tender Law aims at promoting ’integrity and competitiveness, maintain equality, ensure fair treatment of bidders, in fulfilment of the principle of equal opportunity.’
To this end the Law and the relevant Executive Regulations provide, inter alia, the framework to be followed on tenders’ documents, conditions, specifications and obligations in relation to government tenders.
- Setting clear and fair conditions
Article 22 of the Tender Law expressly states that the conditions and specifications of works in the tender documents shall be detailed, accurate and clear and shall observe national standard specifications or international standard specifications (if no national specification exist).
Article 24 of the Executive Regulations of Tender Law goes on providing that the Government Authority shall com ply with the following principles:
- Avoiding suppliers-specific details: the conditions of tenders should not benefit specific suppliers by listing particular types, brands or trademarks. The descriptions should be, in other terms, general enough to facilitate competition. The goal is in fact to get the best value, not to benefit specific suppliers.
- No Specific Trademarks: the Government Authority cannot specify particular brands or products unless absolutely necessary. This will ensure that all suppliers have a fair chance.
- Clear Quantities and Specifications: the tender shall clearly state the quantities, categories and specifications of the works, so to aloe the bidder to prepare an accurate and competitive bid.
The above conditions will ensure a level of competition among the bidders, giving everyone a fair possibility to win the tender.
Exceptions to the above principles are possible and therefore reference may be made to a specific trademark or trade name in cases where it is not possible to accurately describe and specify technical specifications, provided however the Government Authority has obtained the required approval form the competent authority.
- Clarity on contractual and financial obligations
A clear understanding of the financial and contractual obligations of a tender is also crucial to know before submitting a bid. In particular:
- Funds availability: contracts shall only be signed once the funds for the tender are confirmed. This will ensure that the project if financially viable and that the successful bidder is paid for the works performed.
- Pre-Tender Announcements: in urgent cases (ie when it is critical to save time in performing the tender procedures), tenders can be announced before the funds are secured. However, the Government Authority shall expressly state in the tender documents that the contract will not be awarded and signed until the funds are confirmed.
- Annual Cash Flow Conditions: in case of multi-year contracts (ie contract with a term beyond one fiscal year), the contract should include clear terms regarding annual cash flows. This will help the bidder in planning its finances over the contract term.
- Awarding Decisions: the awarding decision should state that it does not create any legal or financial obligation on the Government Authority until the contract is signed by all parties.
The above-mentioned approach is aimed at ensuring financial prudence and transparency, in the interest of both the contractor and the Government Authority.
- Access to tender documents and the relevant E-Portal
According to the Tender Law and the related Regulations, the tender documents shall be made available on the E-Portal, ie the electronic portal designated for Government procurements.
The E-Portal ensures the highest degree of privacy, confidentiality, safety, and transparency of information, and it shall ensure integrity of procedures.
All the transactions related to performing the government procurement cycle will be made through such E-Portal.
In particular through the E-Portal the below -amongst the others- will be accessed and executed:
- Registration of suppliers and contractors on the E-Portal and management of data thereof;
- Create purchase and needs requests;
- Conducting of the qualification processes;
- Making announcements on the E-Portal and submitting requests for quotations;
- Receiving and responding to bidders’ inquiries;
- Amending the tender documents;
- Receiving, opening, and examining the bids;
- Sending notice of the award;
- Aborting the tender; and
- Proceeding with the tender and contracting procedures.
- Tender Documents
They contain all the information and details of the works or procurements and they include, amongst the others:
- Bidding instructions and conditions: these include the basic rules the bidder need to know to submit a bid. They will specify how to submit the bid, deadlines and the process to be followed.
- Conditions and specifications of the works: this section provides detailed description of the works or goods required. It is crucial to understand these specifications to ensure that the bidder can meet the project requirements.
- Bills and items of quantities: these include the detailed breakdown of quantities of the works. It is a crucial document for the bidder since such numbers and details can helps the bidder to price its bid accurately.
- Bid evaluation criteria: this section outlines the criteria that the Government Authority will follow to evaluate bids. Knowing these criteria can help the bidder to tailor its bid to obtain the highest points.
- Classification requirements: if the project requires specific classifications, this is where we can find those details.
- Plans and drawings: For construction projects, we will find the architectural plans and drawings. These are essential for understanding the scope of the works and relevant requirements.
- Sample delivery: if samples are required, this section explains when, where and how to deliver them, as well as how they will be handled. It also explains what happens to the samples after evaluation.
- Contract terms: this part includes the draft contract and details on the relevant terms and conditions, including payment terms, penalties and other legal requirements. Again, it is crucial for the bidder to understand the contractual provisions before submitting a bid.
- Local content requirements: sometimes there are conditions related to using local materials or labour. This section will outline those requirements.
- Bid and performance bonds: these bonds guarantee the bidder’s commitment to the bid and performance. The tender documents will specify in particular the amounts and conditions of each bond to be issued in favour of the Government Authority.