In addition to the provisions of Parts III, IV and V, the procurement of supplies shall also be subject to the provisions in this Division.

The provisions in this Division shall also apply, where appropriate, to the procurement of supplies, which are incidental to the procurement of services or works.
264. (1) A statement of requirements for the procurement of supplies shall be defined by-

(a) a delivery and completion schedule;

(b) a list of supplies and quantities, including any services incidental to the provision of those supplies;

(c) specification; or

(d) drawings.

(2) A specification shall contain a complete, precise and unambiguous description of the supplies required and shall include, where appropriate-

(a) a clear definition of the scope of the proposed purchase;

(b) the purpose and objectives of the proposed purchase;

(c) a full description of the requirement;

(d) a generic specification to an appropriate level of detail;

(e) a functional description of the qualities, including any environmental or safety features required of the subject of the procurement;

(f) performance parameters, including outputs, timescales, and any indicators or criteria by which the satisfactory performance of the specification can be judged;

(g) process and materials descriptions;

(h) dimensions, symbols, terminology, language, packaging, marking and labelling requirements;

(i) a common specification standard issued by the Authority in accordance with regulation 135; and

(j) the relevant industry standard.
265. (1) No specification shall be issued with reference to a particular trademark, brand name, patent, design, type, specific origin, producer, manufacturer, catalogue or numbered item.

(2) Where there is no other sufficiently precise or intelligible way of characterising a requirement except by the use of a reference in subregulation (1), the description shall be used, followed by the words "or equivalent", and shall only serve as a benchmark during the evaluation process.

(3) Notwithstanding subregulation (1), where a standardisation policy has been approved, the corresponding trademark, brand name, patent, design, type, specific origin, manufacturer, producer, catalogue or numbered item may be used in the statement of requirements.

266. Where a standardisation policy has been approved by the competent authority, the accounting officer of a procuring and disposing entity shall submit the following information to the Authority-

(a) the technical, economic and logistical case for standardisation;

(b) a copy of all correspondence with a competent authority or technical expert consulted in relation to the specification;

(c) the case for the selection of the proposed standardised supplies, including their advantages over alternative supplies;

(d) projections for future procurement of the object of standardisation;

(e) plans to ensure transparency and value for money in the procurement of the standardised supplies; and

(f) any other information relevant to the standardisation policy.
267. (1) Solicitation documents for a procurement requirement for supplies shall be drafted using the format issued by the Authority.

(2) Solicitation documents for supplies shall specify the following information -

(a) the specification and list of supplies;

(b) amount and form of bid security required;

(c) amount and form of any performance security;

(d) form of a valid bid;

(e) bid submission methodology;

(f) currency in which a bid is to be submitted;

(g) the procedure for conversion of prices to a single currency for evaluation purposes, including the source and date of exchange rates to be used for conversion;

(h) the currency in which a contract shall be paid;

(i) the payment terms, including any advance payment, stage payments, payment retentions and payment securities;

(j) the basis for fixed or variable prices, and the method for calculating variations in variable prices, if required;

(k) the method of payment;

(l) the documentation required for payment;

(m) the required delivery terms in accordance with regulation 272;

(n) any special requirements for packaging, marking and labelling;

(o) the delivery documentation required, if different from that required under subregulation (l);
(p) the required delivery period;

(q) any inspection or tests required;

(r) any insurance requirements;

(s) any required warranty;

(t) the evaluation methodology and criteria;

(u) the type of contract to be placed, in accordance with regulations 233 and 269; and

(v) any other information, terms or conditions in accordance with these Regulations and the guidelines.

(3) Where a procurement is conditional upon the acceptance of a trade-in requirement under regulation 311, the solicitation documents shall include details of the asset to be traded in, in order that a costing can be offered for the asset to offset against the cost of the new procurement requirement.

268. (1) The evaluation methodology for supplies shall be by the technical compliance selection methodology.

(2) Consent shall be obtained from the Authority, to use any other evaluation methodology.

269. (1) To ensure that the best evaluated bid offers best value for money over the anticipated lifetime of the supplies, a procuring and disposing entity shall include an assessment of the whole life-cycle cost in the financial comparison of bids for supplies.

(2) The solicitation documents shall state any of the following life-cycle cost factors to be included in a financial comparison-

(a) the initial purchase price of the supplies;

(b) packing, packaging, freight and inland delivery;

(c) insurance;

(d) inspection and testing;
(e) installation and commissioning;

(f) the cost and availability of any extended warranty;

(g) the cost of training in operation, maintenance or repair of the supplies, taking into account the level of training required and the number of staff requiring training;

(h) the quantity, cost and availability of consumables for operation over the anticipated lifetime of the supplies;

(i) the quantity, cost and availability of spare parts for operation over the anticipated lifetime of the supplies;

(j) the frequency, cost and availability of maintenance and servicing;

(k) the cost and availability of repair services;

(l) energy costs for operating the supplies;

(m) the level of manpower required for use of the supplies;

(n) the anticipated lifetime of the supplies; or

(o) the likely residual value and cost of disposal of the supplies.

270. (1) A lump sum contract shall be used where the specification, required quantity and delivery schedule of a contract are known.

(2) A framework contract may be used-

(a) for supplies, which are needed repeatedly or continuously over a period of time, including stationery, office supplies, food stuffs and spare parts;
(b) where there are logistical and procurement reasons for having the requirement available on a call off basis; or

(c) where the arrangement would reduce procurement costs or lead times.

(3) Consent shall be obtained from the Authority to use a type of contract other than one stated in this regulation.

271. (1) A contract for supplies shall clearly indicate the scope of a provider's responsibilities under a contract, which may include-

(a) supply and delivery of supplies, in accordance with the specified INCOTERM;

(b) installation and commissioning of supplies;

(c) training in use, maintenance or repair of the supplies; or

(d) provision of after-sales services, which may include the supply and delivery of consumables and spare parts and servicing, maintenance, repair, calibration and modification of equipment.

(2) Consent shall be obtained from the Authority, to use a contract whose scope is outside this regulation.

272. (1) Delivery terms for supplies shall be in accordance with the INCOTERMS.

(2) A solicitation document shall state the INCOTERMS to be used for delivery.

273. (1) The freight and delivery requirements for each procurement requirement shall be specified in the solicitation documents by stating the delivery terms using the appropriate INCOTERMS.
(2) Solicitation documents shall state the required mode of transportation and freight.

(3) A procuring and disposing entity shall ensure that its address is clearly stated as the consignee address.

274. (1) Solicitation documents shall state the minimum packing and packaging criteria and the requirements for labelling and marking of packages, where applicable.

(2) Solicitation documents shall state that packing standards shall withstand rough handling, storage and protection against the effects of moisture, where applicable.

275. (1) Solicitation documents and a contract shall specify the required level of insurance against loss, damage and theft.

(2) A procuring and disposing entity shall state in the solicitation documents whether a bidder is required to arrange insurance and shall include the cost of insurance using the appropriate INCOTERM.

(3) Where a provider is required to arrange insurance in the name of a procuring and disposing entity, the solicitation documents and contract shall state that the minimum insurance coverage shall be one hundred and ten percent of the delivered cost, covering Institute of Cargo Clauses (A), including "all risks" "warehouse to warehouse", "strikes", "war" and "civil commotion".

276. (1) The solicitation documents and the contract shall specify the responsibility for export and import licences, or similar documentation or formalities, using the appropriate INCOTERMS.

(2) Where a procuring and disposing entity wishes to vary the provisions of INCOTERMS, the revised provisions shall be clearly stated in the solicitation documents and the contract.

(3) Solicitation documents and the contract shall state that either party shall provide assistance to the other, to obtain the necessary export or import licences.
277. (1) Supplies may be inspected or tested by a procuring and disposing entity during manufacture, prior to shipment, on delivery or prior to acceptance to verify their technical quality, quantity, packaging or any other detail.

(2) Inspection and testing may include an independent technical inspection or test conducted under a provider's own internal quality control procedures.

(3) The requirement for inspection shall take into account-

(a) the technical complexity of the supplies;

(b) the quantity and value of the supplies;

(c) the estimated cost, delay or other effect of receiving the wrong quantity or sub-standard or damaged supplies to a procuring and disposing entity;

(d) the cost of inspection; and

(e) a provider's internal quality control procedures.

(4) Where inspection is required, the solicitation documents shall indicate-

(a) the type of inspection or test to be performed and the standards to be met;

(b) the location where the inspection or test is to be performed;

(c) the person to carry out the inspection or test;

(d) when inspection or testing is to be performed;

(e) the notification or documentation required from a provider;

(f) the party to pay for the cost of the inspection, including the cost of facilities, labour, apparatus and materials and whether the cost should be included in the bid;
(g) that samples required for inspection shall be provided at no additional cost;

(h) the arrangement and cost for any re-inspection required; and

(i) any other relevant details.

(5) A contract shall describe a provider's obligations and responsibilities with regard to inspection.

(6) Where a third party provider is required to inspect supplies, the services shall be contracted following the appropriate procurement method and rules for the procurement of services.

(7) Where inspection or testing consists of the provider's own internal quality control procedures, the procuring and disposing entity may, if so specified in the solicitation document or contract, send a representative to witness the internal tests or request copies of the reports from such tests.

Division II-Procurement of works.

In addition to the provisions of Parts III, IV and V, the procurement of works shall be subject to the provisions in this Division.

The provisions in this Division shall also apply, where appropriate, to the procurement of works which are incidental to the procurement of services or supplies.

278. A statement of requirements for the procurement of works shall contain a clear, unambiguous and precise description or comprehensive scope of works, bill of quantities, specifications, drawings or the equivalent, and shall include as appropriate-

(a) a background narrative to the required works;
(b) the objectives of the required works;

(c) a list of specific tasks to be performed;

(d) the supervision requirements, working relationships and specific administrative arrangements to be applied;

(e) the duration of the works;

(f) a common specification standard issued by the Authority in accordance with regulation 135;

(g) the relevant industry standard; and

(h) any other relevant information.

279. Solicitation documents for each individual procurement requirement for works shall be drafted using the format issued by the Authority and shall specify the following information, terms or conditions in accordance with these Regulations and the guidelines-

(a) design, specifications, drawings, bill of quantities or equivalent as may be applicable;

(b) the amount and form of the required bid security;

(c) the amount and form of the required performance security ;

(d) the bid format;

(e) the bid submission methodology;

(f) the currency in which a bid is to be submitted;

(g) the procedure for conversion of prices to a single currency for evaluation purposes, including the source and date of exchange rates to be used for conversion;

(h) the currency in which a contract shall be paid;

(i) the payment terms, including any advance payments, interim or stage payments or payment retentions and the required payment securities;
(j) the basis for fixed or variable prices, and the method for calculating variations in variable process, if required;

(k) the method of payment;

(l) the documentation required for payment;

(m) the schedule of execution of the works;

(n) the functions and authority of the client's technical representative, if any;

(o) any inspection or tests required, and the test methods;

(p) requirements relating to certification of conformity;

(q) the insurance cover or indemnity required;

(r) the evaluation methodology and criteria;

(s) the type of contract;

(t) preference or reservation scheme applicable to the procurement; and

(u) any other required information, terms or conditions.

280. (1) The evaluation methodology for works shall be the technical compliance selection methodology.

(2) A quality and cost based selection methodology may be used for procurement of works for design and build or turnkey contracts, where there is a consultancy element or where comparative elements including the quality of finish, performance and operating costs need to be included in the evaluation.

(3) Notwithstanding subregulation (2), a procuring and disposing entity shall use technical compliance selection under direct procurement in accordance with regulation 119(6).

(4) Consent shall be obtained from the Authority to use any other evaluation methodology other than the methodology specified in this regulation.
281. (1) A lump sum contract shall be used for buildings and other forms of construction where the works are well defined and are unlikely to change in quantity or specification, and where encountering difficult or unforeseen site conditions, such as hidden foundation problems, is unlikely.

(2) An admeasurement contract shall be used for buildings and other forms of construction where the works are not well defined or are likely to change in quantity or specification, and where encountering difficult or unforeseen site conditions, such as hidden foundation problems, is likely.

(3) A framework contract shall be used where the quantity of works is not defined and where-

(a) there is a need to have works "on call" and the extent and timing of the requirement cannot be defined in advance; or

(b) requirements are needed repeatedly or continuously over a period of time and having the requirement available on a "call off" basis would reduce procurement costs or lead times.

(4) A cost reimbursable contract may be used-

(a) for emergency works, where there is insufficient time to calculate the full costs involved; or

(b) for high risk works, where it is more economical for a procuring and disposing entity to bear the risk of price variations than to pay a provider to accept the risk or where a provider does not accept the risk.

(5) A target price contract shall be used instead of a cost reimbursable contract where-

(a) a target price is agreed; and

(b) cost savings may be achieved by offering an incentive payment to a provider for any cost savings below the target price.
(6) Consent shall be obtained from the Authority to use a type of contract other than one stated in this regulation.

282. (1) A contract for works shall clearly indicate the scope of work and responsibility for design.

(2) The contract for works may be-

(a) a standard contract, where the works shall be fully designed by a procuring and disposing entity or its consultant prior to bidding and a provider is responsible for construction only;

(b) a design and build contract, where a provider shall be responsible for design and construction of the works based on a procuring and disposing entity's parameters; or

(c) a turnkey contract, where a provider shall be responsible for the design, engineering, supply, installation of equipment and the complete construction, based on a procuring and disposing entity's performance specifications, except where a procuring and disposing entity is responsible for the design and engineering, and invite bids for a single contract for the supply and installation of all works and supplies required for the project component.

(3) A management contracting contract may be used where appropriate, subject to the provisions of these Regulations governing the procurement of services.

(4) Consent shall be obtained from the Authority to use a contract, whose scope is outside this regulation.

283. (1) A procuring and disposing entity shall ensure that all procurement requirements for works are adequately and appropriately insured, from the commencement of works to the end of the defects liability period, for events which are due to a provider's risks, including-
(a) loss of or damage to the works, plant, materials, equipment, property; and

(b) personal injury or death.

(2) Insurance shall provide for compensation to be payable in the types and proportions of currencies required to rectify the loss or damage incurred.

(3) A procuring and disposing entity shall state the insurance required in the solicitation documents and shall require a bidder to include the costs of insurance in the bid.

284. A works contract shall clearly state-

(a) the procedure for transfer of the completed works to a procuring and disposing entity, including the transfer of title and the documentation of the transfer;

(b) the ownership of the property on site during implementation of a contract;

(c) the obligations of a provider in relation to the custody and care of property of a procuring and disposing entity, occupied or used during implementation of a contract; and

(d) arrangements for the temporary handover and return of all property of a procuring and disposing entity, occupied or used during implementation of the contract.

Division III-Procurement of services.

In addition to the provisions of Parts III, IV and V, the procurement of services, both consultancy and non-consultancy, shall be subject to the provisions of this Division.

The provisions in this Division shall also apply, where appropriate, to the procurement of services, which are incidental to the procurement of works or supplies.
285. (1) A statement of requirements for the procurement of services shall be defined in the terms of reference or brief.

(2) The terms of reference, or brief, shall contain a clear, unambiguous and precise description of the services required including-

(a) a background narrative to the required services;

(b) the objectives of the services required and a list of targets to be achieved by a provider;

(c) a list of the specific tasks or duties to be performed;

(d) a schedule of deliverables for the assignment or outputs against which the achievements of the services shall be measured;

(e) the management and reporting lines of a provider, to a procuring and disposing entity and the specific administrative arrangements and reporting requirements that shall apply;

(f) the duration and timetable of the assignment; and

(g) the applicable industry standards for implementing an assignment.

(3) The solicitation documents shall require a bidder to comment on the terms of reference.

286. (1) Solicitation documents for a requirement for services shall be drafted using the format issued by the Authority.

(2) Solicitation documents for services shall specify-

(a) the terms of reference or brief and expected input of key personnel, where applicable;

(b) the amount and form of the required bid security;

(c) the amount and form of performance security that shall be required;
(d) the form of a valid bid;

(e) the bid submission methodology;

(f) the currency in which a bid shall be submitted;

(g) the procedure for conversion of prices to a single currency for evaluation purposes, including the source and date of exchange rates to be used;

(h) the currency in which the contract price shall be paid;

(i) the basis for either fixed or variable, and the method for calculating variations in variable prices, if required;

(j) the method of payment;

(k) the payment terms, including any advance payment, stage payments or payment retentions and payment securities;

(l) the duration, timing of inputs and completion schedule;

(m) the required deliverables or outputs;

(n) the evaluation methodology and criteria;

(o) the type of contract to be placed, in accordance with regulations 233 and 289; and

(p) any other information terms or conditions required in accordance with these Regulations and the guidelines.

287. Solicitation documents shall state, where appropriate, that-

(a) the bidder shall confirm the availability of key professional staff, whose curriculum vitae are included in a bid and form part of the evaluation, prior to submission of a bid;
(b) signed statements of availability from key professional staff shall be included in the bid; and

(c) where a substitution of key professional staff is unavoidable or is agreed to by a procuring and disposing entity, the substitute staff shall be of equivalent or superior qualifications and experience.

288. (1) Where the terms of reference are well defined, the quality and cost based selection methodology shall be used for consultancy services.

(2) The quality based selection methodology may be used for consultancy services for-

(a) highly specialised assignments, where it is difficult to define precise terms of reference and the required input and for which a procuring and disposing entity expects a provider to demonstrate innovation in his or her bid;

(b) assignments that have a high downstream impact and in which, the objective is to have the best provider; or

(c) assignments that can be carried out in several different ways, where a bid is not therefore comparable and where the value of the services depends on their quality.

(3) Fixed budget selection may be used for consultancy services where an assignment is simple, can be precisely defined, and where the budget is fixed.

(4) Least cost selection may be used for consultancy services assignments of a standard or routine nature where well-established practices and standards exist.

(5) Technical compliance selection shall be used for non-consultancy services.
(6) Notwithstanding subregulations (1), (2), (3) and (4), a procuring and disposing entity shall use technical compliance selection under direct procurement in accordance with regulation 119(6).

(7) Consent shall be obtained from the Authority to use any other evaluation methodology other than the methodology in this regulation.

289. (1) A lump sum contract shall be used where the content, duration of the services, and the required output of a provider are clearly defined.

(2) A lump sum contract shall be used for simple planning and feasibility studies, environmental studies, detailed design of standard or common structures and the preparation of data processing systems.

(3) A time-based contract shall be used-

(a) where it is difficult to define the scope and length of services, either because the services are related to activities performed by other providers for which the completion period may vary or the input of the consultants required to attain the objectives is difficult to assess; or

(b) for complex studies, designs, engineering and supervision services, advisory services, management services, and some training assignments.

(4) A framework contract may be used-

(a) where there is a need to have specialised services "on call" and the extent and timing of the requirement cannot be defined in advance; or

(b) for requirements which are needed repeatedly or continuously over a period of time and having the requirement available on a "call off" basis would reduce procurement costs or reduce lead times.
(5) A framework contract is typically used for maintenance services and professional or technical advice, such as legal or procurement advice.

(6) A percentage based contract may be used where it is appropriate to relate the fee paid directly to the estimated or actual cost of the subject of the contract, such as the project construction cost or cost of goods procured, auctioned or inspected.

(7) A percentage based contract is used for architectural, third party procurement, auctions or inspection services.

(8) A retainer contract may be used where a procuring and disposing entity intends to retain a specialised provider of services over a prescribed period of time, but where the level and amount of services required cannot be defined.

(9) A retainer contract is typically used to retain advisers for the implementation of complex projects or for technical troubleshooting.

(10) A contingency or success fee contract may be used where it is appropriate to link a provider's fee to an achieved objective, to provide an incentive to the successful completion of a particular task, event or action.

(11) Consent shall be obtained from the Authority to use another type of contract for services other than those stated in this regulation.

290. (1) A procuring and disposing entity shall ensure that-

(a) all procurement requirements for services are adequately and appropriately indemnified against-

(i) damage, loss or injury to person or property arising from the services provided;

(ii) any actions, suits, claims, demands, costs and expenses occasioned by negligent or breach of statutory duty by a provider; and
(b) a provider maintains adequate professional liability and insurance coverage against negligent performance.

(2) A procuring and disposing entity shall state the insurance and indemnity required for procurement for services in the solicitation documents and shall require a bidder to include the costs of the insurance and indemnity in his or her bids.

(3) A procuring and disposing entity shall take out the insurance required by law and any other that may be deemed fit.

291. A service contract shall state-

(a) the ownership of all property purchased or used during implementation of the contract;

(b) the obligations of a provider in relation to the custody and care of property of the procuring and disposing entity, being occupied or used during implementation of a contract;

(c) arrangements for temporary handover and return of all property of a procuring and disposing entity occupied or used during implementation of a contract; and

(d) arrangements for the handover, if appropriate, of all property purchased during implementation of a contract.