Categories of Contracts
Category One: Chief Executives of Parastatals
A Chief Executive of a Parastatal, on following all the prescribed Due Process procedures, shall award contract for purchase of goods, construction work or engagement of service for an amount not exceeding N500,000. Any contract whose value exceeds N500,000 shall be referred to the Board of the Parastatal/Corporation.
Category Two: Board of a Parastatal/Corporation
The Board of a Parastatal or Government Corporation shall award contract for an amount above N500,000 but not exceeding N1,000,000. Any amount exceeding N1,000,000 to the maximum of N5,000,000 shall be referred to the Commissioner of the Ministry supervising the Parastatal/Corporation. Any amount exceeding N5,000,000.00 to the maximum of N10,000,000 shall be referred to the Ministerial Tenders Board of the Ministry supervising the Parastatal/Corporation. In the same vein, any amount exceeding N10,000,000 to the maximum of N20,000,000 shall be referred to the Finance and General Purposes Committee, while any amount in excess of N20, 000,000 shall be referred to the State executive Council. In any case the laid down rule must be complied with.
Category Three: Permanent Secretary
The Permanent Secretary of a Ministry can approve the award of a contract for an amount not exceeding N1,000,000.00. All expenditures above N500,000 authorized by a Permanent Secretary shall be reported to the Secretary to the State Government/ Head of Service/Commissioner/Head of Extra-Ministerial Department, as the case may be, on quarterly basis, for information.
Category Four: SSG/HOS/Commissioner/Head of EMDs
The Secretary to the State Government, the Head of the State Civil Service, Commissioners and Heads of Extra-Ministerial Departments can award contract for an amount not exceeding N5,000,000. The Ministerial Tenders Board shall be referred to where the amount involved in a contract to be awarded is between N5,000,000 and N10,000,000;
Category Five: Ministerial Tenders Board
The Ministerial Tenders Board of a Ministry can approve the award of contract for any amount between N5, 000,000 and N10, 000,000.
Category Six: Finance and General Purposes Committee (FGPC)
The FGPC shall approve the award of contract for any amount exceeding N10,00,000 but to the maximum of N20, 000,000.
Category Seven: State Executive Council (SEC)
Sokoto State Executive Council shall approve the award of contract for any amount exceeding N20, 000,000.
Basic Rules of Contracts
Contract awarding agencies shall be guided by the six basic principles in the contracting process. These six fundamental principles are:
1 – Advertisement as a Requirement
Equal access to information by all possible participants in the market of public contracts is fundamental to a free and fair competition. This is the major step in ensuring that any public procurement system derives the benefit of effectiveness, efficiency and value-for-money through a transparent and fair process. This explains why the Advertisement requirement is very important for passing the Due Process Compliance rule for openness and provision of level playing field for fair competition through an Open Competitive Tender.
A procuring entity shall be responsible for advertising directly, all invitations for pre-qualification or invitations to tender for goods, works and services. There are two categories of Advertisement Guidelines;
2 – Pre-qualification as Requirement
In simple terms, upon the collation of the submissions of all respondents to an advertisement for pre-qualification, the relevant MDA shall analyze all the submissions made by the respondents to the Advert. The analyses shall be based on an objective set of technical and financial capacity criteria. The aim is to short-list/select competent respondents to the advert. It is also an opportunity to weed out those who do not qualify to participate in the commercial/financial bid. The criteria shall consist of the following sets of criterion:
Necessary Conditions (Do not attract any Mark): Evidence of incorporation or business name registration, Registration with Sokoto State Works Registration Board, Audited Accounts of the Business for at least the last financial year and Evidence of Tax Clearance Certificate for three years.
Scored Conditions totaling 100%: Evidence of financial Capability and Banking support, Experiences and technical qualifications of key personnel, Similar projects executed and evidence of knowledge of the industry, Equipment and technology capacity, (v) Annual turnover, VAT registration and evidence of past VAT remittances and Citizenship(Individual/Corporate) of Sokoto State.
3 – Invitation to Tender / Bid
The tender documents shall follow the format of the standard tender document appropriate to goods, works or service to be procured as may be designed and periodically reviewed by the DPPMB. It should contain sufficient information to enable competition among the bidders to take place on the basis of complete, neutral and objective terms. The Tender document shall be in two parts. Technical and Financial and shall be submitted not more than four weeks after the bid documents were issued.
4 – Opening Of Tender
Opening of bid/tender should immediately follow the closing of bidding/tendering period. Present at the opening of bids/tender documents should be the bidders themselves or their representatives and any other interested people or group including members of civil society, non-Governmental organizations, the press, etc. The Technical Bid is to be opened and conclusively evaluated before the Financial Bid can be opened.
5 – Evaluation of Tender
The Tender submission by the pre-qualified bidders having been made in two parts – technical and financial – shall be evaluated by the Evaluation Team of the Appropriate Procuring Entity. The Procuring Entity shall appoint a Tender Evaluation Committee (TEC) at the appropriate level. The committee is to examine, evaluate and prepare a report with recommendations for the award of the contract for submission to the appropriate approving authority. At least three of the members shall have knowledge in the relevant project.
6 – Determination of a Winner
The Best Responsive Bidder with the lowest evaluated tender should be adjudged the Right Winner. Simply put, the Winner in the bid process is that competent bidder (that is, a pre-qualified and technically evaluated bidder) that comes out of the financial competition offering the lowest price for the execution of the contract.
Contracts Award Guidelines
Ministries, Extra-Ministerial Departments and Parastatals/Corporations in the State shall observe the following guidelines in the award of contracts:
1 – Ministerial Tenders Board (MTB)
There shall be established in each Ministry, Extra-Ministerial Department and Parastatal/Corporation a Ministerial Tenders Board, who’s Chairman shall be the Permanent Secretary of the Ministry or the Chief Executive of the Extra-Ministerial Department/ Parastatal;
2 – Finance and General Purposes Committee (FGPC)
The Finance and General Purposes Committee shall award any contract whose value exceeds N10,000,000.00 (ten million Naira) to the maximum of N20,00,000.00 (twenty million Naira). Any contract awarded by the Finance and General Purposes Committee shall be presented to the State Executive Council for information. All contracts in excess of N20, 000,000.00 must be referred to the State Executive Council for consideration and approval.
3 – Composition of the FGPC
The composition of the FGPC shall be determined and approved by the State Executive Council on the recommendation of the Secretary to the State Government.
4 – State Executive Council
Any contract the value of which exceeds N20,000,000.00 (Twenty Million Naira) shall be referred to the State Executive Council (SEC) for Consideration and approval.
5 – Executive Approval:
In cases where the Governor satisfies himself that all Due Process procedures are followed, he may consider to give an Executive Approval for the award of a contract. Such approvals are to be forwarded to the State Executive Council for subsequent ratification.
Due Process Certifications
Request for Due Process Review and Certification
Having followed all the Due Process as outlined in chapter 3, Government Agencies are then required to document all the details of the contract award process and the conclusions and recommendations there-from. Depending on the expenditure threshold, the Agency is then required to submit detailed documents to the DPPMB for a Due Process compliance review and the issuance of a Due Process Compliance Certificate which will accompany the documents to the authority for the award of the contract (MTB, FGPC or the State Executive Council as the case may be)
Documents Required for DPPMB Review and Certification
The documents listed in the “Due Process Guidelines” under section 4.2 must be forwarded by a Procuring Entity to the DPPMB along with the Letter of Request (LOR) for Due Process Compliance Review and Certification for Award of Contract or Payment on on-going contract as the case may be.
The Review Process and Issuance of Certificates
The review process begins immediately a request for Due Process Compliance Review is received by the DPPMB from a Procuring Entity. The first step is to assign the task to the designated Team or the appropriate Technical Desk Officer in the Bureau. The Team may compose of staff of the Bureau only, staff on Secondment for the review purpose, Commissioned consultants or any combination of these. It is basically a review of the contract process and submissions made by procuring entities at the conclusion of their contracting procedure.
The Compliance Review Process is a three-pronged transparent exercise. This involves the DPPMB Team or Officer(s) establishing from the submissions of the Procuring Entity that from the way the Procuring Entity carried out the Due Process procedures in contract award:
Interest Nigerian Contractors that possess the skills and technical competencies and fulfill the requirement are hereby invite to tender, download the copy of the invitation to tender.
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Tender type & Procedures
In order to give room for speedy and timely execution of Government projects, any of the three types of tender and their procedures in the award of contracts are to be adopted, depending on the situation. These are:
1 – Open Competitive Tender
This type of tender demands wide invitation of prospective contractors to show interest in executing the project under consideration. The procedure starts with advert and concludes with the determination of “winner”. When a contract is valued at more than N100 million, this tendering procedure shall be used. The contract is to be advertised in Government Gazette and in at least two national dailies.
2 – Selective Competitive Tender
This type of tender demands that competition, for the contract to be awarded, shall be restricted to the selected or pre-qualified contractors in the State identified to posses who have the required technical and financial capacities and are well experienced in the type of project under consideration. The procedure starts with an invitation to at least two, but not more than five, such contractors to bid for the contract. The submissions made by the competing contractors should be critically evaluated by the relevant Tenders Board and vetted by the DPPMB before taking decision on the next line of action (approval or recommendation to a higher authority, as the case may be).
3 – Nominated Tendering Procedure
Here a single contractor is to be nominated by the appropriate awarding MDAs, judging from the reliability, experience and competence of the contractor, to bid for the contract. This type of tendering procedure should be restricted to categories1, 2, 3 and 4 contracts. Again, in line with the principles of checks and balances, the DPPMB has to certify the nominated contractor and, so, can recommend the rejection of any nominated contractor whose reliability or competence is in doubt.
Vetting of Contracts Documents by the DPPMB Project Designs (where applicable), Bills of Quantities, Quotations and other tendering documents in respect of any construction work, procurement or service contract whose value is Five Million Naira (N5,000,000.00) and above shall be vetted by the Due Process and Project Monitoring Bureau (DPPMB). Accordingly, all Ministries, Extra-Ministerial Departments and Parastatals/Corporations shall forward all documents in respect of contracts whose values exceed Five Million Naira (N5, 000,000.00) to the DPPMB for vetting to ensure compliance with laid down rules and regulations and issuance of a Due Process Certificate. This Certificate must be presented to the relevant approving authority before approval is given for the award of the contract. The Bureau reserves the right to reject any submission made to it which does not include all required/necessary documents.
The vetting process by the DPPMB shall be done within the following timeframe:
The DPPMB can use its permanent staff, staff on secondment from any public service or consultants for the vetting exercise, depending on the situation. Notwithstanding, the Government reserves the right to engage the services of competent consultants to render similar services.