GOVERNMENT CONTRACTS

Considerations

3201- Government contracts are made in accordance with the ordinary law of contract-through offer by one side and acceptance by the other.The only distinction between a Government contract and that of a commercial undertaking is that,while an outside body can freely choose the suppliers with whom it wishes to deal, a Ministry/Extra-Ministerial Department is accountable for disbursement of public funds and is obliged to consider the claims of all qualified firms wishing to work for it.

Responsibility of Accounting Officer

3202-A contract should be awarded as a result of competition by tender,unless there are specific reasons to the contrary. This decision is the sole responsibility of the Accounting Officer (see chapter 34 for Tenders Board Procedures).

Tender Considerations

3203-i) No contract work involving construction shall be considered Tender by Tenders Board unless:

a) The land has been acquired, and the topographical map (and soil test except where it is certified by the Architect that it is not necessary) has been approved by the appropriate authority.The documents relating to the land, the survey map,the soil test report or certificate of exemption by the Architect should form part of contract documents to be presented to the Tenders Board.

b) The Design of the building, road, etc. relating to (a) above is broken down into:

i) Architectural design.

ii) Structural design.

iii) Electrical design.

iv) Mechanical design.

v) Bill of Quantities.

Technical details of the project shall be made available to the Planning Department for proper costing.

ii) Tenders shall be requested to purchase the designs for a non-refundable fee, the amount of which shall be determined from time to time.

Ministry of Finance: when to seek advice of

3204-The Accounting Officer shall be responsible,apart from the provisions of Financial Regulations 3205, 3206, 3207, for deciding when circumstances require it to seek the guidance of the Ministry of Finance and when to seek the guidance of his own Commissioner.

3205-Accounting Officer must consult with the ministry of finance in the early stages in the negotiation of a contract, where the price or consideration is to be denominated in a currency other than Naira or where a foreign currency exchange guarantee is to be involved,or where the provisions are to specify a substantial programme of deferred payments extending beyound the end of the financial year in which the contract is to be executed, the proposed terms of payment of such a contract must have the prior approval of the commissioner of Finance before the contract is awarded. Where the total contract price is not payable within the financial year of award and subsequent financial years.

Accounting Officer to consult with the Ministry of Finance on interpretation of principle

3206-The Accounting Officer shall be responsible for consultation with the Ministry of Finance on any matter of interpretation of principle on the financial aspect of a contract and, in particular, must advice that Ministry of any proposed departure from established practice and procedure such as the awarding of a contract without competition (see also Financial Regulation 3204).

Accounting Officer to consult with the Ministry of Finance when competition is not available

3207 - a)The Accounting Officer will be responsible for consultation with the Ministry of Finance during the negotiation of a major contract in circumstances when competition by tender is not practicable. consult with

b) Where competition by tender is not practicable, the Tenders Board shall negotiate a contract direct with Contractors, Manufacturers or established wholesale suppliers of goods or services. It shall not negotiate a contract with or through an intermediary, middleman,agent or any other third party unless there are reasons to the contrary.

c) The Permanent Secretary Abia State Ministry of Finance will be responsible for the co-ordination of matters arising from the recommendation of the Public Accounts Committee on government contracts.

TENDERS BOARDS AND TENDERS

3301 - a) The conditions governing the local purchase of stores are set out in Chapter 32 and subject to those conditions, all local purchases of stores etc and all works and services costing over N500,000 must be obtained by contract after public tenders

b) Contracts for the local purchase of stores and for works and services costing up to N500,000 may be arranged by Permanent Secretaries/ Head of Extra - Ministerial Departments after obtaining quotations from all suitable sources

3302 - The establishment and the composition of Tenders Boards shall be as follows:

(a) Departmental Tenders Board

i\) Composition: Chairman - The most senior Director of another Department other than that seeking for Tenders
Members - Officers not below the level of Deputy Director from each of the Department including the Heads of Accounts and Supplies Divisions.

ii\) The Permanent Secretary shall approve the recommendations of the departmental tenders board if the rules and regulations have been compiled with. where there is evidence of infraction of any of the tenders board rules and procedure, he shall reconvene the Board to reconsider the tenders and on no account should there be additional nominated contractor for this purpose

iii\) All such contracts approved by the Permanent Secretary should be submitted to the commissioner on quarterly basis for information only.

b) Ministerial Tenders Board

i) Composition:

Chairman - The Permanent Secretary Members - All Directors/ Heads of Departments

ii) The Commissioner is to approve the recommendations of the Ministerial Tenders Board.

Abia State Tenders Board

i) Composition

(a) Commissioner of Finance

(b) Permanent Secretary, Ministry of Works and Housing

(c) Permanent Secretary, Ministry of Finance

Permanent Secretary, ,Ministry of Commerce, Industry &Technology

ii) In the absence of the Commissioner of Finance,one of the Members present other than the member whose project is being considered shall be designated to act as the Chairman.

iii) All contracts awarded by the Abia State Tenders Boards shall be submitted to the Abia State Executive Council for information only.

3303-The Tenders Board referred to in F.R. 3402 are empowered to deal with contracts of works, services, purchases, etc. as follows:

a) Departmental Tenders Board- Any contract whose value exceeds N500,000.00 but not more than N1,000,000.00.

Tenders Boards powers of spending

3305- i) Tenders must be called for by the Head of Department/Unit concerned and a copy of the notice calling for tenders together with a statement of particulars (see Regulation 3407), must forthwith be sent to the Director,Planning,Research and Statistics Department.

Tenders: responsibility for invitation.

ii) It is not necessary for the Head of Department/Unit to supply for authority to invite tenders provided funds for the service have been approved and are available,and in the case of imported stores,the Commissioner of Finance has approved the purchase where his authority is required.

iii) Attention is directed to the necessity of ensuring that invitations to tender are put out in sufficient time to enable the Tenders Board to give tenders careful consideration, and the person to whom the award is made,time to complete his plans for the fulfillment of the contract before it is due to start. Tenders for the supply of foodstuffs shall be called for at least ten weeks, and submitted for consideration six weeks,before the first supply is due to take place, in order that the contract may be awarded at least one month before the date of the first supply.

3306-The media of publicity for tenders notices shall be the Gazette and the local press. In addition, notices shall be exhibited at the offices of the Ministry or Department concerned and such other public offices.

3307-i)The notice calling for tenders shall be as brief as possible.

ii)The terms appearing in the notice and the statement of particulars must in no way be changed, after the receipt of Tenders, without the authority of the Tenders Board.

iii) Tenders for supplies of consumable stores such as petrol,kerosene, fuel and lubricating oils, prison rations, hospital diets,will be for the period of a financial year commencing on 1st January and terminating on 31st December unless other wise ordered.

iv) In all construction contracts, fluctuation clauses may apply.

3308-i) Where the implementation of a project is to be accelerated, selective or limited Tender procedure may be used.

ii) Where the procedure in (i) is adopted,the number of competent Contractors/Supplier short-listed and invited to tender shall not be less than five.

3309-The short-listing or selection of contractors shall be done by:

i) The Departmental Tenders Board in respect of of or sel contracts/supplies not exceeding N1,000,000.00 in value contn

ii) The Ministerial Tenders Board in respect of unde contracts/supplies valued between N1,000,000.00 and select N20,000,000.00

iii) Abia State Tenders Board in respect of contract not exceeding N20,000,000.00.

3310-i)When money deposits are required before a form of tender is issued (the amount to be notified in the notice calling for tenders),they will be deposited at the Ministry/Extra-Ministerial Department concerned or the Sub-Treasury and the receipts will be produced and date of the deposit receipt will be endorsed on the form and initialed by the issuing officer.

ii) Before the date fixed for consideraion of tenders,the Head of Department/Unit or authorized representative concemed must make enquiries about the persons to whom forms have been issued, and report to theBoard when he recommends the acceptance of tender on the tenderer's financial status and capability to carry out the contract.

Tenders samples of articles.

3311-The Head of Department/Unit calling for tenders shal require all persons for the supply of articles to submit samples as required and to deposit sucn samples with him in sealed packets or bottles,labeled with the name of the tenderer,before the date on which tenders are to be opened; these samples must be kept intact and submitted to the Tenders Board if so required.The Board may, in any case where samples have not been deposited, require this to be done before considering the tenders.

Tenders submission.

3312 - Tenders will not be accepted unless submitted on the appropriate form and addressed to the appropriate Tenders Board,and must either be sent under sealed cover through the post or deposited in a locked receptacle provided for the purpose at the offices of the Board.The full name and address of the person to whom a tender form is issued shall be endorsed on the form before issue.Covers containing tenders must be clearly marked "Tender for .........." Tenders received by post will be placed immediately and unopened in the receptacle provided.

Tenders Procedure Chairman.

3313 - On the date and at the hour at which a particular tender closes,the tender receptacle will be opened and all the particular tenders received will be opened by or under the immediate supervision of the Chairman,or a member deputized for the Chairman.The tenders will be numbered consecutively and be forthwith authenticated by the initials of the officer opening them,together with the date on which they were opened.The tenders will be listed, in duplicate, in the order of number showing the name of the tenderer, the service. etc., tendered for and the amount of the tender. The tenderer, list, in duplicate will be signed by the Chairman and the original deposited in his safe or other suitable safe custody.

Tenders: Procedure Head of Department/ unit

3314 - After the procedure detailed in the preceding regulation has been completed,all the tenders received, together with the duplicate authorized representative concerned under sealed cover (Secret) for consideration and recommendations.

The tenders and the duplicate copy of the list will be returned to the Tenders Board also under cover (Secret). if it recommends a tender other than the lowest, full reasons sshould be stated.

3315 - i) When the tenders are returned by the Department or unit concerned, they will be checked against the list and then considered at a meeting of the Board to be called for the purpose.

ii) The Board shall have power to recommend to the Authority concerned.

a) the acceptance of any tender, or, portion of a tender,for any service;

b) the rejection of all or any tenders for any service;

c) When all tenders for a service have been rejected, to advise:

1) That fresh tenders be called for;or

2) That Ministerial/Departmental arrangements be made for carrying out the service.

The Board shall in every case record the reason for its recommendation.

Tenders expert advice.

3316-All Tenders Boards are empowered to call upon any qualified officer to assist them with technical or other expert advice.

Contract procedure

3317-i) The final award of a contract will be to the parties whose tenders have been accepted and to the Departmental officer who will take further necessary steps for the placing of the contract by causing the Security required to be lodged and verified in the usual manner,and the bond signed by the contractor and his sureties. Certified true copies of all contracts will be sent to the Auditor-General, and to the Accountant-General.The notice referred to above will be presumed to have been received if sent by post addressed to or left at, the address given by the tenderer.

ii) Unsuccessful tenders should be notified by the Tenders Board concerned as soon as a contract is entered into or the Tenders Board has authorized the rejection of all ter ders.

Contract assignation

3318-Contracts once entered into may not be assigned or sublet and their conditions may not be varied except on theauthority of the Tenders Board concerned.

Contracts Publication of award

3319 - After a deed of contract has been completed, the name of the successful tenderer and the nature of the service will be published in the official Gazette.

Sale of Government Property

3320 - When Govemment property is ofered for sale by Public Tender, the same procedure as for tenders for works,etc. will be Government followed

Tenders: splitting not allowed

3321 - It is an offence for any public officer to deliberately split Tenders so as not to circumvent the provisions of this chapter. such breach of trust will be severely dealt with by a competent disciplinary authority as laid down in the public Service rules.

Audit inspection and general information.

3322 - i) Ministerial or Departmental Tenders Board record made available from time to time to the Accounting Officer.

ii) Minutes of all Tenders Boards meetings and the full records of all tendering processes shall be made available for the inspection of the Auditor-General of Abia State and the Accountant-General on demand.

iii) The records in (ii) above shall be kept for a period of five years from the date of completion of the contract.