Government to introduce fourth type of tendering

(CNS): Following the government's recent revelations that it is establishing a new procurement office to deal with the way government buys things and acquires services, a report released by the Portfolio of the Civil Services shows that in addition to the existing three models of tendering, a fourth is required to deal with more complex deals government may enter into to when it comes to major capital projects. The report, which sets out its recommendations to improve local procurement as a result of the numerous problems and issues identified by the auditor general, this report points to the need for a competitive dialogue, in some cases before invitations to tender.

Under the current Law and Regulations there are just three main types of procurement methods: open tendering, restricted tendering or sole source supply. Officials in the report, which was compiled by a special sub-committee, said that these have proven restrictive in some situations and recommended the fourth type of procurement.

“Competitive dialogue is a process used in complex tenders where open or restricted tendering processes are unlikely to provide a successful outcome,” the authors wrote. “The contracting entity enters into a dialogue with service providers with the aim of developing one or more proposals capable of fulfilling the project requirements, prior to inviting tenders from service providers."

The report, which formed the basis for government’s planned revamp of the existing procurement system, found that not everything was broken but there was significant room for improvement and clarification. The committee recommended strengthening areas of the current system, with significant changes in some areas, as opposed to completely casting aside the existing system and creating an entirely new regime.

“A number of factors inhibit effective procurement practices within the Cayman Islands Government (CIG),” the report stated and pointed to a lack of detailed policies and procedures to guide chief officers, tender committees and civil servants involved in procurement.

It also found that the organization and governance structure in which procurement is carried out lacks clarity of role and robust governance. The failure to prepare business cases to justify projects and the lack ofexperienced staff in the field working in the CS were also noted.

The report also pointed to the importance of clarifying the roles of all of the government entities involved as at least six different agencies are currently involved.

With the creation of a three person procurement office, to be headed by an experienced director of procurement, a post that government is now recruiting, the new office will be responsible for establishing procurement policies and procedures, developing and maintaining standard government procurement documentation, procurement oversight, carrying out some centralized procurement, advising government entities on procurement and training of employees involved in procurement.

See report below.