3. Procurement Procedures
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3. Procurement Procedures Start Comparison
a. What procurement procedures can be followed?

As specified in Article 27, there are several different ways to award a contract. Contracting authorities may employ the following procedures:

  • Open tendering;
  • Restricted tendering;
  • Request for quotations;
  • Request for proposals without negotiations;
  • Two-stage tendering;
  • Request for proposals with dialogue;
  • Request for proposals with consecutive negotiations;
  • Competitive negotiations;
  • Electronic reverse auction; and
  • Single-source procurement.

The Model Law permits the enacting state to incorporate some or all of these methods into their national legislation, with a requirement that open tendering be included as an option.

b. What status do electronic means/procedures have?

The use of electronic means/procedures is optional. UNCITRAL views e-procurement as a way to enhance value for money and optimize governance in the procurement system. The Model Law recognizes and addresses the potential benefits of e-procurement and encourages its use. The implementation of e-procurement depends on the availability of necessary e-commerce infrastructure and related resources in the enacting state. UNCITRAL recommends a general deference to the laws of the enacting States when integrating and utilizing e-procurement. The enacting states can also adapt a series of e-commerce texts, such as the Model Law on Electronic Commerce (1996), the Model Law on Electronic Signatures (2001), and the United Nations Convention on the Use of Electronic Communications in International Contracts (2005) as additional tools to implement electronic procedures.

c. Where are contract notices, i.e. calls for bid, published?

The Model Law does not provide specific publication methods for notices. It is the responsibility of the enacting state to regulate the publication, which, as stated in Article 5, should be made available in a centralized manner at a common medium where the information is domestically and internationally accessible.

c. Can certain prospective bidders be excluded from the competition?

Yes. According to Article 21, the procuring entity must exclude a supplier or contractor from the procurement proceedings if (1) the supplier or contractor offers, indirectly or directly, to current or former officer or employee of the procuring entity any form of gratuity or other things of service or value to influence an act or decision of the procuring entity or (2) the supplier or contractor has an unfair competitive advantage or a conflict of interest. The Article's first prong is aimed at preventing corrupt practices such as bribery and other forms of inducements. Its second prong on unfair competitive advantage is an open-ended concept left to interpretation by the enacting state. It primarily addresses situations wherein the supplier or contractor is in possession of information that is not available to other bidders. An example of an unfair competitive advantage would be a case in which a subsidiary of the procuring entity participates in the procurement proceedings.

Under Paragraph 8 of Article 9, the procuring entity may disqualify a supplier or contractor if the information submitted concerning the qualifications was false or constituted misrepresentation; if the information was materially inaccurate or incomplete; if the supplier or contractor fails to remedy deficiencies promptly upon request by procuring entity; and if the supplier or contractor fails to demonstrate its qualifications again if requested to do so.