2. Application of the Statutory Procurement Laws
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2. Application of the Statutory Procurement Laws Start Comparison
a. Which public agencies are covered by the laws?

The GPA applies to public sector agencies that are listed in the Second Schedule of the Application Order ("contracting authorities"). Most Ministries, organs of state, statutory boards and other quasi-governmental organisations are included in the list.

In addition to the Ministries, the contracting authorities listed under the Second Schedule of the Application Order include (but is not limited to):

  • Agency for Science, Technology and Research
  • Board of Architects
  • Building and Construction Authority
  • Civil Aviation Authority of Singapore
  • Economic Development Board
  • Housing and Development Board
  • Info-communications Development Authority of Singapore
  • Inland Revenue Authority of Singapore
  • International Enterprise Singapore Board
  • Jurong Town Corporation
  • Land Transport Authority of Singapore
  • Maritime and Port Authority of Singapore
  • Media Development Authority of Singapore
  • Monetary Authority of Singapore
  • Nanyang Technological University
  • National Parks Board
  • National University of Singapore
  • Preservation of Monuments Board
  • Professional Engineers Board
  • Public Transport Council
  • Sentosa Development Corporation
  • Singapore Tourism Board
  • Standards, Productivity and Innovation Board
  • Urban Redevelopment Authority

As a city-state, Singapore does not have local government or sub-central governmental authorities. The bulk of government procurement activities is decentralised to individual contracting authorities, to be carried out under the framework discussed in this chapter. However, in order to reap economies of scale, certain agencies may call tenders for bulk purchases or practice demand aggregation on behalf of the entire Singapore government in the procurement of common goods and services. For example, the Infocomm Media Development Authority of Singapore is often appointed to source for suppliers to provide IT security services, network infrastructure or other IT or communications services on behalf of other government agencies.

b. Which private entities are covered by the laws?

The GPA does not apply to private sector entities.

c. Are co-operations between contracting authorities exempted from public procurement law? If so, what are the conditions for the exemption?

There are no specific exemptions under the GPA. Instead, the GPA does not apply to certain excluded procurements. For example, Paragraph 5(1) of the Application Order provides that a procurement made by a contracting authority on behalf of an entity which is not a contracting authority is not a procurement subject to the GPA. Such an "entity" includes a department of the Government or of a statutory body. As such, it is possible that co-operations between public bodies may not be subject to the GPA, in particular where a procurement by the contracting authority is made on behalf of an entity which is not a contracting authority.

Furthermore, a contracting authority has the power to exclude a procurement, or an act or measure in relation to a procurement, from the application of all or any regulations made under section 6 of the GPA if any of the following applies:

  • such exclusion is necessary for reasons of national security;
  • such exclusion is necessary to protect public morals, order or safety, human, animal or plant life, or any intellectual property right of the Government or any other party;
  • the contract of procurement is or is intended to be awarded to an institution assisting handicapped persons, a non-profit organisation or a penal institution; or
  • the procurement concerned is a procurement of one or more of the services set out in the Third Schedule of the Application Order, and such exclusion is consistent with the terms, conditions, limitations and qualifications set out in Singapore's Schedule of Commitments under the General Agreement on Trade in Services; or (ii) the exemptions set out in Singapore's List of Article II Exemptions under the General Agreement on Trade in Services.
d. Which types of contracts are covered?

The GPA applies to the procurement of goods and certain types of services listed in the Third and Fourth Schedules of the Application Order (or a combination thereof) by all contracting authorities, other than the Ministry of Defence.

Although the Ministry of Defence is a contracting authority, as noted in Section 1(d) above, the GPA only applies in respect of the procurement of certain goods by the Ministry.

There is also a requirement that the value of the contract in question exceeds a certain threshold.

e. How are changes to an existing contract dealt with? Do changes require a new procurement procedure?

According to "A Guide for Suppliers - Participating in Singapore Government Procurement Opportunities" published by the Ministry of Finance (the "Supplier Guide"), examples of common contractual terms and conditions include contract options such as possible extensions of the contract duration as well as transition to new suppliers. As such, changes to an existing contract will typically be managed based on a contractual basis.

f. What is the applicable regime for framework agreements?

The Supplier Guide provides that framework agreements are used when there are certain items in the contract that may be subject to price fluctuation. When necessary, contracting authorities would obtain quotations through Request for Quotations from all capable contracted suppliers and award to the selected supplier after evaluating the bids.

The Supplier Guide also envisages that contracting authorities may combine purchases of common goods and services to yield better value for money through economies of scale by establishing a Demand Aggregation contract ("DA contract"). These contracts may be called by a contracting authority for its own use or on behalf of other contracting authorities, and are usually established through an open tender or quotation process. After evaluating the bids received, the procuring contracting authority may appoint one or multiple suppliers to provide the goods or services. Once the DA contract has been established, the participating contracting authorities in the DA exercise can then procure directly from the appointed supplier(s) when the product or service is required during the contractual period.

g. What is the applicable regime for public-private partnerships (PPPs)?

The procurement regime set out above applies to PPPs. Further, the Ministry of Finance is responsible for formulating PPP guidelines and policies, and has issued a PPP handbook which provides guidance on (among other things) the PPP procurement process and management of a PPP relationship (the "PPP Handbook").

In particular, the PPP Handbook sets out certain procedures for the PPP procurement process. According to the PPP Handbook, the PPP procurement process will involve the following steps:

  • invitation for expressions of interests;
  • prequalification of bidders;
  • request for proposal from selected bidders;
  • market feedback period;
  • issue of final tender;
  • closing of tender; and
  • contract award / financial close.

The Ministry of Finance has also indicated, by way of response to FAQs on its website, that PPP is one of the possible approaches for new development projects that are estimated at more than S$50 million although projects below S$50 million can also be considered for PPP, depending on the nature of the project and the ability of PPP to deliver value for money for it.

h. How are concessions dealt with?

The procurement regime set out above applies to the grant of concessions.

i. Are there anti-avoidance rules (including laws on bid rigging)?

Yes. The GP Regulations set out certain rules that contracting authorities are required to comply with in undertaking procurement exercises, and contracting authorities are not allowed to prepare technical specifications or use the qualification procedure in such a manner as to avoid the application of such rules. Further, where a contracting authority undertakes a procurement through an agent (who is not a contracting authority), the contracting authority is required to ensure that the agent abides by the principles of national treatment and non-discrimination.

Where suppliers are concerned, section 34 of the Competition Act seeks to prohibit agreements, decisions or concerted practices between suppliers which are intended to or have the effect of preventing, restricting or distorting competition within Singapore. Such agreements should have an appreciable effect in respect of the prevention, restriction or distortion of competition, but bid rigging and other types of collusive conduct during the tender process will always have an appreciable adverse effect.