Central Tender Board
The Central Tenders Board (CTB) was enacted by an Act of Parliament [Cap 245] of 1998. CTB is a parastatal organization, operating under the Ministry of Finance and Economic Management (MFEM).
The primary mandate of CTB is to adjudicate and award tenders for Central Government and any other institutions specified under the Act for the delivery of works, services and supplies related services. This is coupled with the registration and grading of contractors who so which to do business with government. We do this to ensure that projects are prudentially managed to ensure value for money in the procurement and disposal of assets.
The Chairperson heads the Board, assisted by two full time officers; the Secretary and Assistant to Secretary.The Secretary oversees the operations of the Board as well as the day to day running of the organizational finance and human resource management.
KEY PRINCIPLES FOR GOVERNMENT PURCHASING (whether applying High-Value Procurement (RFT or RFP) or Low-Value Procurement (RFQ) are as follows:
- All purchases of Goods, Works and Services (both physical and consulting) must be made in accordance with the law;
- GOV Agencies must seek the best value for money;
- GOV Agencies must seek to promote open and effective competition between potential suppliers;
- GOV Staff must perform purchasing duties ethically
THRESHOLD FOR LOW-VALUE PROCUREMENT
The current threshold below which LOW-VALUE PROCUREMENT involving acquiring goods, works and services (both physical and consulting) is VUV 5,000,000
In accordance with GOV Law, LOW-VALUE PROCUREMENT between VUV 100,000 and VUV 5,000,000 requires
- Application of the REQUEST FOR QUOTATIONS (RFQ) procedure Whereas that of value less than VUV 100,000 requires only Application of a simple Local Purchase Order (LPO)
LOW-VALUE PROCUREMENT PROCEDURES
LESS THAN (<) VUV 100,000
An officer with an appropriate financial delegation must approve the purchase order form for the goods, works or services, and he or she must ensure that the cost is reasonable
- Brief Contract Terms and Conditions are shown on the LPO MORE THAN (>) VUV 100,000 BUT NOT MORE THAN VUV 5,000,000
- The purchase order form for the goods, works or services must be approved by the Head of Ministry (or his or her delegate), and at least three written requests for quotations must be issued (i.e. application of the RFQ Procedure)
- GOV Standard RFQ Documents for Goods, Works and Services (both Physical and Consulting) must be used
THRESHOLD FOR HIGH-VALUE PROCUREMENT
The current threshold above which HIGH-VALUE PROCUREMENT involving acquiring complex goods, works and services (both physical and consulting) is VUV 5,000,000 and greater
In accordance with GOV Law, HIGH-VALUE PROCUREMENT requires
- Open and fair competition in normal circumstances involving the appropriate TENDER method,and
- Approval of the GOV CENTRAL TENDERS BOARD for Tender Method and Documentation, Recommendation for Award of Contract and the draft Contract
When applying Request For Tenders (RFT), the form and content of tender documentation would depend on the procurement method decided upon (refer GOV Procurement Guidelines soon to be released)
In addition to RFTs and, in the case of high-value consulting services Requests for Proposals (RFPs):
- For large and complex tenders SELECTIVE TENDERING, involving PRE-QUALIFICATION may be applied (in the case of Vanuatu this usually only applies to WORKS) thereby ensuring that invitations to bid are only issued to those suppliers/ contractors that have adequate capabilities and resources.
- Where it is not feasible to define fully the technical or contractual aspects in order to elicit competitive tenders, a TWO STAGE TENDER may be applied whereby only those contractors/ suppliers that submitted acceptable technical proposals in the first stage may submit tenders in the second stage.
- In exceptional circumstances, subject to the approval of the Central Tenders Board, a LIMITED TENDER may be applied. Such circumstances are provided in the GOV Procurement Guidelines.
STANDARD DOCUMENTATION FOR HIGH-VALUE PROCUREMENT
GOV has produced the following standard documents which, in accordance with GOV law, must be applied to the absolute extent possible, depending on the Tender Method approved by the Central Tenders Board:
- RFTs for Goods, Works and Physical Services;
- Request for Pre-Qualification (RPQ) for Works (to be used when applying Selective Tender);
- Request for Expressions of Interest (REOI) to provide Consulting Services;
- Request For Proposals (RFP) for Consulting Services