Commonly used words in Tenders Reserved for AGPO

AGPO gives MSMEs an opportunity to do tenders with government. This means there is a need to learn new common procurement words and phrases that are being used.

common words tenders agpo
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The Access to Government Opportunities Procurement programme is a critical preferential procurement intervention by the Kenya Government that has proved to be highly popular with Youth, Women and PWD-led businesses in the country. AGPO, for the first time, has given such businesses an opportunity to bid for government jobs that were previously out of their reach because of the tough requirements for qualifying entities. This meant learning new terms and phrases that they previously did not know about. common words tenders agpo

Once you sign up for Scale, you get access to a Help Center that has more detailed information of anything to do with Procurement in Kenya. There is a lot of information that you can learn about tendering that will help you better handle your documentation and response to tenders from public entities. Below are some of the important ones that we decided to highlight on this article:

Affidavit

This is a written statement of facts from an individual which is sworn to be true. It’s usually issued by a notary public or commissioner of oaths.

Bid/ Offer/ Proposal/ Quotation/ Tender

An offer from a supplier, contractor or service provider in response to an invitation by a public entity.

Bid Bond / Security, Tender Security

It is a guarantee issued by a bank, approved insurance company, Sacco, Youth Enterprise Development Fund, Women Enterprise Fund or any Deposit Taking Microfinance Finance Institution that the bidder will not withdraw from the bidding process midstream.

Bid Validity

A certification from a supplier that the price he / she has quoted will remain the same for the period stated in their bid document.

Bid Validity Period

It’s the time a supplier’s offer is considered valid. If the validity expires there is no offer.

Business Registration Service (BRS)

It is a semi-autonomous body that is mandated to oversee the operations of the Companies Registry, Movable Property Security Rights Registry (Collateral Registry), Insolvency (Official Receivers) Registry and the Hire Purchase Registry. Their services have been digitized and can be accessed via www.brs.go.ke

Citizen contractor

This is a person or a firm wholly owned and controlled by persons who are citizens of Kenya.

CR-12

It’s an official confirmation document by the Registrar of Companies as to whom the directors/shareholders of a Limited Company are. It also confirms that the company’s records exist at the Company Registry.

CR-13

It’s an official confirmation document by the Registrar of Companies that is issued to Limited Liability Partnerships.

Disadvantaged Group(s)

These are persons/groups denied by mainstream society access to resources in a way that disadvantages them or individuals who have been subjected to prejudice or cultural bias because of their identities and includes enterprises in which a majority of the members or shareholders are youth, women, persons with disability.

Eligibility

Qualification requirements spelt out in tender documents to meet by the bidders

Expression of Interest (EOI)

An expression of interest is showing interest or applying to offer skilled services required by a public entity.

Government Tender

Tenders issued out by the government, its agencies and state corporations.

Integrated Financial Management Information System (IFMIS)

This is the Kenya government’s automated system that is used for public financial management and e-procurement to enhance transparency and accountability in the procurement process from procurement planning, requisition, sourcing, and to payment.

Joint Venture (JV)

An agreement entered into by two or more suppliers to undertake a task jointly and submit a joint bid.

LPO financing

Assistance to successful tenderers given by public entities in guaranteeing banks or financial institutions that successful bidders will be paid through those financial institutions after supply of goods, delivery of services or execution of works and in return the financial institutions advance loans to such suppliers. In this case, LPO stands for Local Purchase Orders and are only issued to successful bidders by the procuring entities as a confirmation of the order.

National Construction Authority (NCA)

This is the government organisation which regulates, streamlines and builds capacity in the construction industry.

National Council For Persons With Disability (NCPWD)

This is the State Corporation mandated to coordinate all issues of Persons with Disabilities in National Development.

Partnership Deeds

It’s an agreement between the partners of a firm that outlines the terms and conditions of partnership among the partners. This is normally issued to registrants of the Partnership type of business.

Performance Bond

A guarantee from a financial institution as specified to demonstrate that the bidder will perform as per the contract.

Pre-Qualification

An assessment, made by a public entity to a supplier on his / her experience and capacity before buying goods, services or works from the suppliers.

Procuring Entity

A public/government body which is buying from suppliers, contractors or service providers.

Professional Bodies and Authorities

A body representing members of a profession, which is regulated by statute, code of conduct or rules may be amended from time to time. Examples include; Law Society of Kenya (LSK), Kenya Civil Aviation Authority (KCAA), National Construction Authority (NCA), Marketing Society of Kenya (MSK) etc.

PWD-owned business

A company, association or body of persons, corporate or unincorporated in which at least 70% of the shareholders, members or persons and a majority of the directors are persons living with disability.

Subcontractor

A supplier / contractor engaged by the main contractor or Procuring Entity to fulfill part of a contract.

Tax Compliance Certificate (TCC)

Also known as a Tax Clearance Certificate, is an official document issued by the Kenya Revenue Authority (KRA) as proof of compliance to your tax obligations as prescribed by the Law.

Tender Securing Declaration Form

A procurement form reserved for small and micro-enterprises or enterprises owned by women, youth, persons with disabilities and other disadvantaged groups participating in reserved procurement proceedings, and must be filled in the format provided.

Tender Specification

This refers to the exact needs/requirements which are supposed to be met by the supplier/contractor as spelt-out by the buyer within the Terms of Reference.

Women Enterprise Fund (WEF)

This is a semi-autonomous government agency that provides accessible and affordable credit to support women start and/or expand business for wealth and employment creation.

Women-owned business

A company, association or body of persons, corporate or unincorporated in which at least 70% of the shareholders, members or persons and a majority of its directors are female.

Youth

Persons aged 18-35 years.

Youth Enterprise Development Fund (YEDP)

The state corporation that provides easy and affordable financial and business development support services to youth who are keen on starting or expanding businesses.

Youth-owned business

A company, association or body of persons, corporate or unincorporated in which at least 70% of shareholders are persons who are between 18-35 years.

 

As earlier stated, this list is not exhaustive and we will keep adding based on your ongoing feedback. Do you have any words or phases you would like us to find the definition and/or explain for? Share with us as a comment below.. common words tenders agpo

 

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