Here’s what you need to do to access Restricted Tenders
A competitive procurement method that limits requests for tenders to suppliers, contractors or service providers already shortlisted by a procuring entity.
By definition, Restricted Tendering is a competitive procurement method that limits the request for tenders to a number of suppliers, contractors or service providers who are shortlisted through either a pre-qualification or invitation by the procuring entity. In other jurisdictions, this procurement method is also referred to as Limited Bidding and Selective Tendering.
In Kenya, a public procuring entity may undertake a pre-qualification of suppliers prior to implementing an alternative procurement method (other than the preferred open tender procurement method) with the aim of identifying the best qualified suppliers for the subject procurement.
Once the firms are pre-qualified, the procuring entity may then adopt various procurement methods such as request for quotations, restricted tendering, low-value procurement, etc.
What the Procurement Laws say about Restricted Tendering
The Restricted Tendering method is governed by Section 102 of the Public Procurement and Asset Disposal Act Revised Edition 2016) as outlined below:
According to the PPDA 2020 Regulations;
The Maximum Level of Expenditure for the use of Restricted Tendering
Guided by the Second Schedule of the Public Procurement and Assets Disposal Regulations (2020), where the procurement method is a Restricted Tendering, the threshold matrix is provided as follows:
|Procurement Method – Restricted tender under sec 102(1)(b) of the Act|
|The Maximum level of expenditure shall be KES. 30,000,000 above this threshold use open tender||The Maximum level of expenditure shall be KES. 30,000,000 above this threshold use open tender||The Maximum level of expenditure shall be KES. 20,000,000 above this threshold use open tender|
|No minimum||No minimum||No minimum|
|Procurement Method – Restricted tender under 102(1)(c) of the Act|
|Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement.||Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement.||Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement|
|No minimum||No minimum||No minimum|
Registration and Pre-qualification of Suppliers
As indicated earlier, procuring entities are required to identify pre-qualified contractors/consultants through advertising for providers for various services, goods and works in order for them to adopt this procurement method. The procuring entity is then permitted to invite tenders from at least ten persons (unless this is not possible based on the number of pre-qualified suppliers for that specific category) selected from this restricted register of suppliers for each category of goods, works or services.
Legally, the procuring entity is required to maintain and continuously update lists of these registered suppliers, contractors and consultants in the different specific categories of goods, constructions/works and services; according to their procurement needs (Section 71 of the PPDA Act).
An application by a supplier to be included in the list of pre-qualified entities may be made at any time, at no cost, and shall contain proof of its eligibility criteria and capability criteria that defines necessary qualifications, experience, resources, equipment and facilities to provide what is being procured. This list should be valid for a period not exceeding more than two years.
Ensure You Respond to Pre-qualification Tenders
It is extremely important for your organization to respond to Pre-qualification Tenders to ensure that you never miss out on Restricted Tenders. Scale publishes all pre-qualification opportunities and makes it easier for your organization to respond to them.
This article is part of the Procurement Methods blog series.