The Public Procurement and Disposal of Public Assets Act provides a framework of procedures for procuring entities to follow when procuring goods, services, and works. One of the procurement methods provided is the RFQ method in terms of section 34 of the Act. This method is particularly useful for low-value procurements, where a streamlined process can facilitate efficient, expedient and transparent procurement outcomes.
Understanding the RFQ method involves knowing its key procedural aspects such as it being a method used by procuring entities for procurements that fall below the financial threshold prescribed under section 10 of the PPDPA (General) Regulations, as follows:
- Construction works: Below $20,000
- Goods: Below $10,000
- Consultancy and non-consultancy services: Below $5,000
This method is typically applied to low-value procurements where the non-complexity nature of the procurement requirement does not warrant a more extensive tendering process.
Key Considerations
Procuring entities must ensure that the RFQ method is used in accordance with section 34 of the PPDPA Act as read with section 17 of the PPDPA (General) Regulations which provides for the following:
- Soliciting at least three (3) competitive quotations from reputable suppliers who are registered with PRAZ for the category of the requirement;
- Procurement requirement below the prescribed financial threshold;
- Using Standard Bidding Documents produced by PRAZ;
- Clear statement of the procurement requirement, including quality, quantity, terms, and delivery period;
- Specifying the period for bid validity (at least 30 days);
- Providing adequate time for bidders to prepare and submit quotations (at least 3 days); and
- Each bidder to be permitted to submit only one quotation, which cannot be altered or negotiated.
These provisions provide a framework for procuring entities to ensure transparency, fairness, competitiveness and record keeping of the procurement process.
Opportunities for Suppliers
RFQs offer suppliers a chance to:
- Compete for low-value contracts; and
- Showcase their products or services to the Government and its Agencies.
Tips for Suppliers
To increase your chances of winning an RFQ, focus on:
- Developing a strong understanding of procuring entities’ requirements;
- Submitting high-quality quotations that meet their requirements; and
- Ensuring that your quotation is well-documented and compliant with the procuring entity’s requirements.
Best Practices
To ensure successful outcomes when using the RFQ method, procuring entities should:
- Clearly define the procurement requirements and specifications;
- Establish a transparent and fair evaluation process;
- Maintain accurate records of the procurement process and resulting contract; and
- Ensure that all parties involved in the procurement process are aware of their roles and responsibilities.
By following the guidelines provided in the PPDPA Act and adhering to best practices, procuring entities and suppliers can effectively utilise the RFQ method to achieve efficient, expedient and transparent procurement outcomes.