Public procurement can be defined as the purchase, whether under a formal contract or not, of works, supplies and services by public bodies, governments or state-owned establishments. It ranges from the purchase of normal or basic supplies / services to formal bidding and placing contracts for large technical projects. Here are the basic requirements for eligibility to bid for public procurement in Lagos State. Bidders must:
1. Register with the Lagos State Government;
2. Along with registration, all bidders with the Lagos State Government must have the following:
● Qualification (professional and technical) to carry out the procurement;
● Finances to carry out the procurement;
● Equipment and other relevant groundwork;
● Staff to perform the obligations of the procurement contract; and
● Legal capacity to enter into the procurement contract;
● Must not be on the receiving end or subject of any form of insolvency or bankruptcy proceedings or any form of winding- up case/proceedings;
● Pay taxes, pensions and social security contributions;
3. Provide evidence or other information the public procurement agency considers necessary as proof that the bidder is qualified in accordance with the provisions of the Law
Registration of Contractors (vendors are usually referred to as contractors)
The process for registration of contractors by the Lagos State Government is as follows:
1. ·Application letter for registration addressed to the General Manager of the Public Procurement Agency. 2. A duly completed application Form.
3. Evidence of payment of registration fees (the amount of registration fee to be paid is based on the category and decided by the Public Procurement Agency)
4. Certificate of Company’s Incorporation/registration with the Corporate Affairs Commission (CAC).
5. Evidence of Company’s Article /Memorandum of Association, for Limited Liability Companies.
6. Evidence of payment of tax and pension dues. This includes:
● Current 3 years Personal-Lagos state Government Tax Clearance Certificate of bidding company’s CEO and two (2) Directors;
● Development levy of at least two Directors;
● Evidence of payment of PAYE Tax for key staff (if it’s a Limited Liability Company)
● Evidence of payment of pension for employees, under the Lagos State Pension Reform Law 2007.
8. Bank reference letter addressed to the General Manager of Public Procurement Agency.
9. Corporate profile of the company including Curriculum Vitae of key staff supported by professional licenses. 10. Passport Photograph of the Managing Director/CEO of bidding company.
11. Affidavit confirming that the contractor’s organization is not in receivership or the subject of any form of insolvency or bankruptcy or winding- up case/proceedings and none of its directors have been convicted in any country for any criminal offence relating to fraud, criminal misrepresentation or falsification of facts.
Classification of Contractors
In respect of classification of contractors, the Contractor will pay the fees applicable to the category he intends to belong to. The different classes and fees to be paid are listed below:
|
CLASS |
CONTRACT VALUE/THRESHOLD |
REGISTRATION FEES |
ANNUAL RENEWAL FEES |
|
A |
Up to N10million |
50,000 |
25,000 |
|
B |
Above N10million- N100million |
150,000 |
50,000 |
|
C |
Above N100million-N250million |
250,000 |
75,000 |
|
D |
Above N250million - N1billion |
500,000 |
200,000 |
|
E |
Above N1billion |
2,000,000 |
500,000 |
The Tendering/Bidding Process
There are two stages of tendering/bidding namely:
a) Prequalification Prequalification may be necessary for large or complex works or projects, for example, those involving a lot of money and technical know-how. Prequalification is a preliminary stage of the bidding process designed to produce a shortlist of companies that would be capable of meeting the technical standards of the works or project, without considering price at this stage.
b) Specifications It is important that offers should comply with all the mandatory requirements/specifications; otherwise the offer may be rejected as nonconforming i.e. goods must be supplied or work done in accordance with the specifications.
Tender Document
A tender document is a set of documents which may include the following:
1. Invitation to Tenders;
2. Instruction to Tenderers/Bidders;
3. Bid Data Sheet;
4. General Conditions of Contract;
5. Special Conditions of Contract;
6. Schedule of Requirements;
7. Technical Specifications;
8. Forms-Bid/Tender;
9. Forms-Security
Bidding documents are normally in English and should be read carefully to understand fully the scope of the contract. With all these helpful knowledge, you will indeed have one foot in the door when it comes to public procurement. Definitely
