RESTRICTED
WORLD TRADE WT/WGTGP/W/6
14October 1997
ORGANIZATION(97-4441)
Working Group onTransparency
inGovernment Procurement
SYNTHESIS OFTHE INFORMATION AVAILABLE ONTRANSPARENCY-RELATED
PROVISIONS INEXISTING INTERNATIONAL INSTRUMENTS ONGOVERNMENT
PROCUREMENT PROCEDURES AND ONNATIONAL PRACTICES
Note bytheSecretariat
Table ofContents Page
I. INTERNATIONAL INSTRUMENTS ONPROCUREMENT ...............2
II. DEFINITION AND SCOPE OFGOVERNMENT PROCUREMENT ..........4
III. PROCUREMENT METHODS ..................................7
IV. INFORMATION ONNATIONAL LEGISLATION AND PROCEDURES .......13
V. INFORMATION ONPROCUREMENT OPPORTUNITIES, TENDERING AND
QUALIFICATION ..........................................15
A. Notice ofInvitation toTender ortoPrequalify ....................15
(i) Howpublic notice should begiven .................15
(ii) Information content ofnotices ofinvitation totender ......19
B. Tender Documents .....................................24
C. Clarification .........................................29
D. Promptness andTimeliness ofPrior Information andDeadlines .........30
VI. TRANSPARENCY OFDECISIONS ONQUALIFICATION ...............32
A. Transparency ofCriteria .................................32
B. Notification andListing ..................................36
VII. TRANSPARENCY OFDECISIONS ONCONTRACT AWARDS ............38
A. Transparency ofCriteria .................................38
B. Receipt andOpening ofTenders .............................46
C. ExPostInformation onContract Awards .......................51
VIII. REVIEW ................................................56
IX. OTHER MATTERS RELATED TOTRANSPARENCY ..................60
A. Maintenance ofRecord ofProceedings .........................60
B. Information Technology ..................................61
C. Language ...........................................64WT/WGTGP/W/6
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X. INFORMATION TOBEPROVIDED TOOTHER GOVERNMENTS .........65
A. Information onNational Legislation ..........................65
B. Notification ofNational Legislation ...........................66
C. Information onContract Awards ............................66
D. Statistical Information ...................................67
_______________
1. Atthesecond meeting oftheWorking Group onTransparency inGovernment Procurement
heldon21July1997, theSecretariat wasrequested tocomplement theinformation initsnoteonthe
transparency-related provisions inexisting international instruments (Part AofWT/WGTGP/W/3)
withavailable information onnational practices. Thisnoteattempts torespond tothisrequest by
providing asynthesis ofthefactual information onnational procedures andpractices relating to
transparency available intheresponses tothequestionnaire ongovernment procurement ofservices
intheWorkingPartyonGATSRules(S/WPGR/W/11/Addenda1-21),thesurveysofnationallegislation
oftheAPEC Government Procurement Experts Group, contributions submitted bydelegations by
1October 1997 (WT/WGTGP/W/5) andotherinformation available intheWTO, e.g.theTrade Policy
Review Reports anddocuments oftheCommittee onGovernment Procurement.
2. Thecontents ofthenoteshould notbetaken toprejudge what isencompassed bytheterm
"transparency", which isamatter fortheWorking Group. Itspurpose istoprovide background
information thatmaybeuseful totheWorking Group initsstudy oftransparency ingovernment
procurement practices.
3. Responses tothequestionnaire ongovernment procurement ofservices intheWorking Party
onGATS Rules havebeenreceived from 21countries representing awidegeographical distribution
ofWTOMembers.ThesurveysofnationallegislationofAPECeconomiesprovidedataonanadditional
fourcountries inEastAsia. Given thatthedatasources usedforthispaper were initially designed
forthepurposes ofdiscussion inother fora,thedepth ofinformation onthesubject-matter ofthisnote
thatiscontainedinindividualresponsesandsurveysvaries.Thepresentnotesynthesizestheinformation
available anddoesnotattempt tomake acompilation ofallnational practices andprocedures. Inorder
tocontribute togreater clarity, thefootnotes provide some specific examples ofanillustrative nature;
theyshould notbetaken toimply thatthecountry orcountries mentioned aretheonlyonesusing the
practice orprocedure inquestion. AttheJulymeeting oftheWorking Group, some delegations said
thatthenotecould havebeenamplified ontheprovisions oftheexisting international instruments that
giveleeway totheadoption ofpolicies aimed atachieving legitimate social andeconomic goals, for
example offsets orother measures providing special treatment fordeveloping countries. Accordingly,
thisnotecontainsinformationontheseaspects,inrespectbothofinternationalinstrumentsandofnational
practices (notably inChapter VII,Section Aontransparency ofevaluation criteria).
I. INTERNATIONAL INSTRUMENTS ONPROCUREMENT
4. Promoting transparency inprocurement procedures isoneoftheexplicit considerations that
guide therequirements intheModel Law(Preamble, paragraph (f)),theGPA(Preamble, paragraph 3),
theWorld Bank Guidelines forgoods andworks (paragraph 1.2(d)) andtheWorld Bank Guidelines
forconsultants 'services (paragraph 1.4(e)). Transparency canbeviewed asalinchpin oftheother
common objectives oftheseinstruments, which are,among others: maximizing economy andefficiency
inprocurement; fostering andencouraging participation inprocurement proceedings bysuppliersWT/WGTGP/W/6
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regardless ofnationality andthereby promoting international trade; andpromoting theintegrity and
fairness ofandpublic confidence intheprocurement process.
5. Thetransparency provisions ofthethree international instruments areaimed atthree setsof
interested parties:
- Suppliers. Thefulfilment oftheobjectives ofprocurement regimes requires that
potential suppliers should beabletoreadily obtain adequate information onprocurement
opportunities, ontheconditions tobemettoqualify forthemandonallmatters relevant
tothepreparation andsubmission ofbids. Their participation willalsobeenhanced
ifprocurement procedures areperceived bythem asfairandequitable.
- Legislatures andthegeneral public. Transparency isanecessary condition for
procurement regimes anddecisions tobeaccountable, inparticular intheuseofpublic
or,inthecaseoftheWorld Bank, international funds. Forthispurpose decisions must
notonlybeimpartial, butalsobeseentobeimpartial. Thiscallsforobjective criteria,
made known inadvance, forthetaking ofsuchdecisions, forthereceipt andopening
oftenders under procedures guaranteeing theregularity ofthetender openings and
ex-post information onthecontracts awarded aswellasforreview possibilities.
- Other governments. Under theWTO Agreement onGovernment Procurement, each
Party accepts obligations vis-à-vis other Parties totheAgreement, notonlytoensure
thatthesuppliers ofthose Parties benefit from adequate information andtransparent
procedures, butalsotoprovide information directly toother Parties onitsprocurement
procedures anddecisions taken under it.
Transparency mayalsobeimportant topurchasers, forexample because knowledge ofprices paid
elsewhere mayfacilitate theirattempts togetbestvalue formoney.
6. There exist atpresent three international instruments ontheprocedures andpractices of
governments intheareaofprocurement:
(i) TheUNCITRAL Model LawonProcurement ofGoods, Construction andServices
wasdrawn upbytheUnited Nations Commission onInternational Trade Law(the
UNCITRAL)1toserve asamodel forStates fortheevaluation andmodernization of
theirprocurement lawsandpractices andtheestablishment ofprocurement legislation
wherenonepresentlyexists.Asaframeworklaw,theModelLawisintendedtoprovide
alltheessential principles andprocedures forconducting procurement proceedings
inthevarious types ofcircumstances likely tobeencountered byprocuring entities.
Inlinewiththemandate ofUNCITRAL topromote international trade andthenotion
underlying theModel Lawthatthewider thedegree ofcompetition thebetter thevalue
received forpublic expenditures, theModel Law asageneral rulepromotes
non-discrimination. Under theModel Law, thisisgiven effect bytheprocedures
designed, forexample, toensure thatnon-national suppliers aregiven adequate
transparency. Atthesame time, theModel Lawrecognizes thattheenacting States
mayinsome cases wishtorestrict participation byforeign suppliers withaviewto
protecting certain domestic industries orforother legitimate reasons. However, with
aviewtopromoting transparency, anysuchrestrictions aresubject totherequirement
1UNCITRAL isanorgan oftheUnited Nations General Assembly established topromote theharmonization
andunification ofinternational trade law,soastoremove unnecessary obstacles tointernational trade caused
byinadequacies anddivergences inthelawaffecting trade.WT/WGTGP/W/6
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thattheimposition oftherestriction bytheprocuring entity should bebased onlyon
grounds specified intheprocurement regulations orinother legislation.2
(ii) TheGuidelines forProcurement under IBRD Loans andIDACredits andtheGuidelines
forSelection andEmployment ofConsultants bytheWorld Bank Borrowers havethe
purpose ofinforming those World Bank Borrower countries ortheir agencies
(Borrowers) carrying outaproject thatisfinanced inwhole orinpartbyaloanfrom
theIBRD (theInternational BankforReconstruction andDevelopment) oracredit from
theIDA(theInternational Development Association) ofthearrangements tobemade
forprocuring goods andworks andtheprocedures forselecting, contracting and
monitoring consultants required fortheproject. Inmostcases theBank requires its
Borrowers toobtain goods andworks through International Competitive Bidding (ICB)
open toalleligible suppliers andcontractors, withallowance forpreferences for
domestically manufactured goods andfordomestic contractors forworks under
prescribed conditions.3TheWorld Bank Guidelines alsoallow forother methods to
beusedwhere ICBisclearly notthemosteconomic andefficient method, forexample
fortheprocurement ofgoods orworks which, bytheirnature orscope, areunlikely
toattract foreign competition.4
(iii) TheWTO Agreement onGovernment Procurement (1994) establishes anagreed
framework ofrights andobligations, among WTO Members Parties totheGPA, with
respect totheir national laws, regulations, procedures andpractices intheareaof
government procurement withaviewtoachieving greater liberalization andexpansion
oftrade andimproving theinternational framework fortheconduct ofworld trade.
Thecornerstone oftherules intheGPA isnon-discrimination between thesupplies
andsuppliers ofWTO Members Parties totheGPA. TheGPA applies tothe
procurement ofgoods andservices, including construction services, above certain
threshold values anddefined bytheschedules ofeachParty ascontained inAppendix I
totheGPA.5Certain derogations orexceptions arespecified intheschedules of
individual Parties inAppendix ItotheGPA. Inorder toensure thatthebasicprinciple
ofnon-discrimination isfollowed andthataccess toprocurement isactually available
toforeign products, services andsuppliers, theGPAlaysheavy emphasis onprocedures
forproviding transparency oflaws, regulations, procedures andpractices regarding
government procurement.
II. DEFINITION AND SCOPE OFGOVERNMENT PROCUREMENT
International instruments
7. Thethree instruments varyastotheirscope andcoverage. Similarly there isnouniform
definition ofwhatismeant bygovernment procurement.
8. TheModel Lawisdesigned tobeapplicable, inprinciple, toalltypes ofprocurement ofgoods,
construction andservices. Atthesame time, itrecognizes thatanenacting Statemaywishtoexempt
2UNCITRAL Model LawGuidelines page 58andModel LawArticle 8(1)and(2)
3World Bank Guidelines ongoods andworks, paragraph 1.3
4World Bank Guidelines ongoods andworks, paragraph 1.4
5GPA, Article III:2WT/WGTGP/W/6
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certain types ofprocurement from thecoverage ofitsprocurement legislation, forexample defence-
andsecurity-related procurement; thismaybespecified intheprocurement laworintheimplementing
regulations.6
9. TheModel Lawdefines "procurement" astheacquisition byanymeans ofgoods, construction
andservices.7What ismeant by"goods"8,"construction"9and"services"10,11islisted intheModel
Law. Inorder totakeintoaccount theexistence ofprocurement legislation atdifferent levels of
government, theModel Lawpresents twooptions astothelevels ofgovernment tobecovered. The
firstoption brings within thescope oftheModel Lawallgovernmental departments, agencies, organs
andother unitswithin theenacting Statepertaining tothecentral government aswellastoprovincial,
localorother governmental subdivisions oftheenacting State. Thisoption maybeadopted bynon-
federal States, andbyfederal States thatmaylegislate fortheirsubdivisions. Asecond option would
beadopted byStates thatenact theModel Lawonlywithrespect totheorgans ofthenational
government.12Theenacting State mayextend application oftheModel Lawtocertain entities or
enterprises thatarenotconsidered partofthegovernment, ifithasaninterest inrequiring those entities
toconduct procurement inaccordance withtheModel Law.13,14
10. TheWorld Bank Guidelines areapplicable totheprocurement ofgoods, works andrelated
services, andtoconsultants 'services foraproject thatisfinanced inwhole orinpartbyaloanfrom
theIBRD (International Bank forReconstruction andDevelopment) oracredit from theIDA
(InternationalDevelopmentAssociation).15Thedefinitionsof"goods"16and"servicesrelatedtogoods"17
aresetforthintheGuidelines onprocurement. Thelatter alsoapply toservices inwhich thephysical
6Model LawArticle 1(1)
7Model LawArticle 2(a)-(c)
8"Goods" means objects ofevery kindanddescription including rawmaterials, products andequipment and
objects insolid, liquid orgaseous form, andelectricity, aswellasservices incidental tothesupply ofthegoods
ifthevalue ofthose incidental services does notexceed thatofthegoods themselves.
9"Construction"meansallworkassociatedwiththeconstruction,reconstruction,demolition,repairorrenovation
ofabuilding,structureorworks,suchassitepreparation,excavation,erection,building,installationofequipment
ormaterials, decoration andfinishing, aswellasservices incidental toconstruction suchasdrilling, mapping,
satellite photography, seismic investigations andsimilar services provided pursuant totheprocurement contract,
ifthevalue ofthose services does notexceed thatoftheconstruction itself.
10"Services" means anyobject ofprocurement other thangoods orconstruction.
11ModelLawArticle2(c)-(e).TheenactingStatemayincludeadditionalcategoriesofgoodsorspecifycertain
objects ofprocurement which aretobetreated asservices.
12Model LawArticle 2(b)(i)
13Model LawArticle 2(b)(ii), Guide toEnactment ofUNCITRAL Model Law-pages 65and66listthe
factors thattheenacting State mayconsider indeciding which entities tocover.
14Guide toEnactment ofUNCITRAL Model Law, page 65
15World Bank Guidelines ongoods andworks, paragraph 1.1andonconsultants 'services, paragraph 1.1
16Commodities, rawmaterials, machinery, equipment, andindustrial plant
17Such astransportation, insurance, installation, commissioning, training andinitial maintenanceWT/WGTGP/W/6
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aspect oftheactivity predominates andwhich arebidandcontracted onthebasis ofperformance of
ameasurable physical output, forexample construction ofworks, manufacture ofgoods, operation
andmaintenance offacilities orplants, surveys, exploratory drilling, aerial photography, andsatellite
imagery.18TheGuidelines ontheSelection andEmployment ofConsultants onlyapply toservices
ofanintellectual andadvisory nature andtheterm "consultants"19isdefined therein. TheBank
Borrowers useconsultants tohelpinarange ofactivities, suchaspolicy advice, institutional reforms,
management, engineering services, construction supervision, financial services, procurement services,
social andenvironmental studies, andidentification, preparation andimplementation ofprojects to
complement theBorrowers 'capabilities inthese areas.20
11. TheGPA applies toprocurement byanycontractual means, including through suchmethods
aspurchase orlease, rental orhirepurchase, withorwithout anoption tobuy,including anycombination
ofproducts andservices.21Theobligations under theAgreement apply toprocurement: bytheprocuring
entities thateachParty haslisted initsschedule inAnnexes 1to3ofAppendix I,relating respectively
tocentral government entities, sub-central government entities andother entities suchasutilities; of
goods; andofallservices andconstruction services thatarespecified inlists, found respectively in
Annexes 4and5ofAppendix I.General Notes attheendofmost Parties 'schedules provide fora
number ofexceptions. TheAgreement authorizes Parties tomodify themutually agreed coverage of
Appendices ItoIVunder theprocedures forrectification andmodification specified inArticle XXIV:6.22
12. Theinternational instruments provide forthesizeofprocurement contracts tobetaken into
account indetermining therequirement towhich theyaresubject. Theprovisions oftheGPA apply
toprocurement inrespect ofprocurement contracts above certain threshold values. EachParty indicates
itsthresholds applying totheprocurement ofgoods andservices under Annex 1,2and3entities.23
TheModelLawallowstheprocuringentityengaginginlow-valueprocurementinwhichthereisunlikely
tobeinterest onthepartofforeign suppliers toforgo certain procedural requirements relating to
announcements attheinternational level.24Under theWorld Bank Guidelines, NCB procedures may
bepreferred toICBprocedures when contract values aresmall.25
18World Bank Guidelines ongoods andworks, footnote 2toparagraph 1.1andonconsultants 'services,
paragraph 1.3
19"Consultants" includes avariety ofprivate andpublic entities, including consulting firms, engineering firms,
constructionmanagers,managementfirms,procurementagents,inspectionagents,auditors,UnitedNationsagencies
andothermultinationalorganizations,investmentandmerchantbanks,universities,researchinstitutions,government
agencies, non-governmental organizations andindividual consultants.
20Guidelines onconsultants 'services, paragraph 1.3
21GPA, Article I:2
22Since itssignature inApril 1994, theAgreement 'sscope hasbeen expanded through theincorporation in
itoftheresults ofaseries ofbilateral agreements between individual Parties. Aloose-leaf system forAppendices
totheAgreement designed toreflect theup-to-date status oftheAppendices assuch changes occur isbeing
prepared.
23GPA, Article I:4; atable ofthresholds ofindividual GPA Parties isavailable on
http://www.wto.org/wto/govt/thresh.htm. Thethresholds asexpressed innational currencies ofParties tothe
Agreement for1996/97 areavailable indocuments GPA/W/12 andAddenda 1-7.
24Model LawArticle 23(b)
25World Bank Guidelines ongoods andworks, paragraph 3.3WT/WGTGP/W/6
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National practice
13. Several countries havestated thatthereisnolegislative orregulatory definition ofgovernment
procurement.26Inmostcases, government procurement isdefined simply astheprocurement ofgoods
andservices bycentral, provincial andlocalgovernments, aswellasbyother public entities, which
incertain cases include "utilities" -e.g.suppliers ofenergy, water, transport andtelecommunications
services.27,28Some countries treattheuseofpublic funds tofinance purchases either fullyorpartially
asadefining criterion.29Some countries havestated thatprocurement byanycontractual means is
covered, including purchases, leasing, rental orhirepurchase, withorwithout anoption tobuy.30
Inoneinstance, government procurement alsoincludes theconcession ofactivities ofpublic entities
among themselves orwithprivate individuals.31Other countries havestated thattheterm"procurement"
includes allstages oftheprocess bywhich government agencies acquire fromexternal sources thegoods
andservices theyneedtofulfil theirmandates.32Others haveindicated, explicitly orimplicitly, that
procurement generally doesnotinclude non-contractual agreements33oranyform ofgovernment
assistance.34
III. PROCUREMENT METHODS
International instruments
14. Various methods ofprocurement areusedbygovernment entities, according tocircumstances.
Allthree oftheinstruments covered bythisnotedescribe thespecific procurement methods thatmay
beusedanddefine theparameters fortheiruse.Theinstruments provide thatmoretransparent methods
ofprocurement aretobefavoured where possible asbeing more likely tobeeffective inrealizing the
objectives ofprocurement systems, buttheseinstruments allow lessinherently transparent means when
26S/WPGR/W/11/Add.4, Add.8
27S/WPGR/W/11/Add.1, Add.2, Add.10, Add.14
28Eg.,withintheCommunity,“governmentprocurement”coverswrittencontractsforpecuniaryinterestawarded
bypublic authorities (including ataregional andlocal level), bodies governed bypublic lawandcertain utilities
inrespect ofthesupply ofgoods andtheprovision ofservices, including construction services. Theentities
covered aresubject toacommon EC-wide regime forprocurement contracts above certain threshold values.
Therulesconcerningprocurementoperationsunderthethresholdvaluesaredefinedbynationallaw,inaccordance
withthegeneral principles oflawlaiddown intheECTreaties. Thethreshold values aresetoutinCommunity
law. These thresholds aredefined withaviewtoensuring thatcompetitive procurement rules apply tocontracts
likely tointerest suppliers from other EUmember States while allowing administrative andprocedural costs on
smaller contracts tobekepttoaminimum. Contracting authorities arenotpermitted tosplitupacontract so
astoreach acontract value below thethreshold (WT/WGTGP/W/5).
29S/WPGR/W/11/Add.12, Add.18, Add.21
30S/WPGR/W/11/Add.10, Add.19
31S/WPGR/W/11/Add.8
32S/WPGR/W/11/Add.3, Add.6, Add.7, Add.11
33S/WPGR/W/11/Add.13, Add.18
34S/WPGR/W/11/Add.6WT/WGTGP/W/6
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circumstances warrant itand,insome instances, subject tospecial conditions often related toensuring
adequate transparency.
15. Asthemethod ofprocurement innormal circumstances, theModel Lawforesees theuseof
tendering forprocurement ofgoods andconstruction services and,forother services, principal method
forprocurement ofservices ,amethod designed togivedueweight intheevaluation process tothe
qualifications andexpertise oftheservice suppliers. Forthepurposes oftheGPA, open tendering
procedures, where allsuppliers maysubmit atender, isapreferred method. TheWorld BankGuidelines
prescribe theuseofInternational Competitive Bidding intheprocurement ofgoods andworks and
Quality- andCost-Based Selection fortheselection ofconsultants 'services asthemain method.
16. Forexceptional andwell-defined circumstances, inwhich theabove preferred methods are
notconsidered bytheprocuring entity tobeanappropriate orfeasible method forprocurement, the
threeinstruments offeralternative methods ofprocurement which provide alesser degree ofcompetition
among suppliers compared totheprincipal method. Therefore, conditions ontheuseofother methods
havebeenincluded inallthreeinstruments toavoid unjustified resort tothesemethods ofprocurement
andtolimittheirusetoexceptional cases, while safeguarding theobjectives ofnon-discrimination among
suppliers andtransparency oftheprocurement process. TheModel Lawgives theoptions oftwo-stage
tendering ,requests forproposals andcompetitive negotiations where itisnotfeasible fortheprocuring
entity toformulate specifications tothedegree ofdetail required under thetendering method forgoods,
forexample intheprocurement ofhightechnology goods orunder theprincipal method ofprocurement
forservices. These methods givetheprocuring entity anopportunity tonegotiate withsuppliers with
aview tosettling upon technical specifications andcontractual terms. With regard totheselection
ofsuppliers, theModel Lawoffers arestricted tendering method which permits theprocuring entity
tosolicit participation onlyfromalimited number ofsuppliers forprocurements ofatechnically complex
orspecialized nature; arequest forquotations orshopping method withsimplified andaccelerated
procedures under which theprocuring entity isallowed tosolicit quotations from asmall number of
suppliers forcases oflow-value procurement ofstandardized goods orservices; andsingle-source
procurementforexceptionalcircumstances,suchasseriouseconomicurgencyduetocatastrophicevents.
Withaviewtoproviding transparency asregards decisions ofprocuring entities touseanexceptional
method ofprocurement rather thanthemethod thatisnormally required, theModel Lawcontains a
requirement thatanysuchdecision should besupported intherecord ofprocurement proceedings
provided under Article 11oftheModel Lawbyastatement ofthegrounds andcircumstances onwhich
theentity hasrelied tojustify theuseofthemethod inquestion.35
17. TheGPAprescribes twomethods ofprocurement otherthanopentendering procedures. Under
selective tendering procedures, those suppliers invited todosobytheentity maysubmit atender.36
Inorder toensure optimum effective international competition under thismethod, purchasing entities
arerequired toinvite tenders fromthemaximum number ofdomestic andforeign suppliers consistent
withtheeffective operation oftheprocurement system. Anumber ofsafeguards toensure non-
discrimination intheprocedures andconditions forqualification ofsuppliers aresetoutinArticle VIII.
Under limited tendering procedures, theentity contacts thepotential suppliers individually.37Because
oftheinherently non-transparent nature ofthismethod, theGPA closely circumscribes thesituations
inwhich itcanbeused; itispermitted, forexample, intheabsence ofresponsive tenders under open
orselective procedures, when theproduct orservice canbesupplied onlybyaparticular supplier,
35Model LawArticle 18(4)
36GPA, Articles VII:3(b) andX
37GPA, Article VII:3(c)WT/WGTGP/W/6
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orforreasons ofextreme urgency brought about byevents unforeseeable totheentity.38TheGPA
subjects thismethod tospecial transparency conditions which require entities toprepare areport in
writing oneachcontract awarded which should include, interalia,astatement oftheconditions referred
toinArticle XVthatjustified thelimited tendering. Furthermore, entities mayholdnegotiations with
suppliers making tenders, provided thisisindicated intheinitial tender notice oritappears fromthe
tender evaluation thatnoonetender isthemostadvantageous, andsubject tospecified safeguards to
ensure thatsuchnegotiations donotdiscriminate between suppliers.39
18. TheWorld BankGuidelines allow Modified International Competitive Bidding withsimplified
advertising andcurrency provisions tobeusedinthecaseofquick disbursement loans orinprocurement
ofcommodities. Other methods ofprocurement which areusedincircumstances which necessitate
departures fromtheInternational Competitive Bidding method procedures are:Limited International
Bidding which isessentially International Competitive Bidding bydirect invitation andwithout open
advertisement andusedwhere thecontract values aresmall orwhere there isonlyalimited number
ofsuppliers orother exceptional reasons40;National Competitive Bidding ,normally usedforpublic
procurement inthecountry oftheBorrower, which isconsidered tobethemostefficient andeconomical
wayofprocuring goods orworks which, bytheir nature orscope, areunlikely toattract foreign
competition41;Shopping (international andnational) which isbased oncomparing price quotations
obtained fromseveral suppliers toensure competitive prices andisappropriate forprocuring readily
available off-the-shelf goods orstandard specification commodities thataresmall invalue42;andDirect
ContractingWithoutCompetition(single-source)43usedunderconditionssimilartothoseofsingle-source
procurement under theModel Laworlimited tendering under theGPA. Asalternatives totheprincipal
method ofselection ofconsultants, Quality- andCost-Based Selection ,theWorld Bank Guidelines
prescribe Quality-Based Selection forcomplex orhighly specialized assignments orforthose which
invite innovations.44Other methods ofselection ofconsultants under theWorld Bank Guidelines, with
specifiedconditionsfortheiruse,includeSelection under aFixed Budget ,Least-Cost Selection ,Selection
Based onConsultants 'Qualifications andSingle-Source Selection .45
19. While many ofthespecific requirements relating totransparency referred tointhelatersections
ofthisnoteconcern transparency under anyoftheallowable procurement methods, itshould benoted
thatsome ofthespecific requirements relate more directly topreferred methods ofprocurement.
National practices
20. Thebasicrange ofpermissible procurement procedures isthesameinmostcountries, although
there aresome variations. Although theterminology employed maydiffer, three broad categories of
38GPA, Article XV
39GPA, Article XIV
40World Bank Guidelines ongoods andworks, paragraph 3.2
41World Bank Guidelines ongoods andworks, paragraph 3.3-3.4
42World Bank Guidelines ongoods andworks, paragraph 3.5-3.6
43World Bank Guidelines ongoods andworks, paragraph 3.7
44World Bank Guidelines onselection ofconsultants, paragraph 3.2-3.4
45World Bank Guidelines onselection ofconsultants, paragraph 3.5to3.11WT/WGTGP/W/6
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procedures arecommonly distinguished: public oropentendering procedures; selective orrestricted
tendering procedures; andlimited tendering ordirect contracting orsingle tendering procedures.
21. Even though thebasic range ofprocurement methods isthesame inmostcountries, there are
significant differences intheconditions under which apurchasing agency canresort todifferent
procedures. Some countries prescribe theprocurement method tobeusedaccording toascale of
threshold values. Insome othercountries, theprocuring agency hasconsiderable discretion inchoosing
theappropriate procurement procedure within theparameters ofthegovernment 'spurchasing policy
andguidelines46andaccording tothecharacteristics andcircumstances oftheprocurement andthe
complexity oftheprocurement.47Inmost countries, openorselective tendering procedures appear
tobethemain procedures.
22. Intheinformation available, typical features ofnational practices inregard toopentendering
procedures areasfollows:
- allinterested suppliers maysubmit atender. However, insomecountries onlyqualified
suppliers areinvited toparticipate, atleastforcertain types ofcontracts48;
- often usedforprocurement withhighthreshold values49;
- longer time-limits forsubmitting tenders areprovided compared toother methods of
procurement50;
- usedforprocurement ofbasic goods andservices thatareeasytocompare andwhere
contracts areawarded according toprice only;
- prior notice ofprocurement opportunities isinvariably given including publication
ofnotices ofinvitation totender.
23. Selective tendering procedures areusedinprocurement under which, because ofthenature
orthepurpose oftheprocurement, participation islimited toacertain number ofselected suppliers.51
These procedures mayhavethefollowing features:
- onlythose suppliers thathavebeeninvited tosubmit atender bythecontracting entity
maydoso;
46S/WPGR/W/11/Add.4, Add.11
47S/WPGR/W/11/Add.6
48S/WPGR/W/11/Add.3, Add.5
49Dominican Republic-TPR 1996, Czech Republic-TPR 1996, Costa Rica-TPR 1995, Venezuela-TPR 1996,
Fiji-TPR 1997, Thailand-TPR 1991, Indonesia-TPR 1991, Uruguay-TPR 1992
50S/WPGR/W/11/Add.1,Add.2,Add.3,Add.4,Add.12,Add.15,Add.16,Add.19;APECSurvey-Thailand
51S/WPGR/W/11/Add.1, Add.2, Add.3WT/WGTGP/W/6
Page11
- suppliers areselected fromalistofqualified suppliers.52Insome cases, theminimum
number ofqualified suppliers thatshould beinvited isspecified intheprocurement
legislation;
- usedtoensure thatexcessive timeisnotspent onevaluation when evaluation ofthe
tenders istime-consuming53;
- priornoticeofprocurementopportunitiesmaybegiven,includingpublicationofnotices
ofinvitation totender.
24. Under limited tendering procedures ,theprocurement entity contacts thesuppliers (orsole
supplier) individually. Itisgenerally usedasanexception andunder conditions andcircumstances
which mayinclude, depending onthecountry:
- where there arenosatisfactory responsive bidsunder other methods54;
- where theadditional procurement isareplacement oftheoriginal procurement orcannot
beseparated from aprevious procurement bytheoriginal supplier55;
- inprocurements involving theprotection ofpatents, copyrights orother exclusive
rights56;
- inunforeseen andcompelling emergency situations57;
- tosafeguard thepublic interest58;
- forcontracts ofbelow specified thresholds59;
- forprocurement ofgoods available incommodity exchange markets60;
- forperishable goods61;
52S/WPGR/W/11/Add.2, Add.3, Add.9, Add.15, Add.17, Add.18
53S/WPGR/W/11/Add.1
54S/WPGR/W/11/Add.5, Add.8, Add.9
55S/WPGR/W/11/Add.2, Add.9, Add.14
56S/WPGR/W/11/Add.9, Add.14, Add.18, Add.19
57S/WPGR/W/11/Add.6, Add.9, Add.14, Add.15; Slovak Republic-TPR 1995, Costa Rica-TPR 1995
58S/WPGR/W/11/Add.14, Add.16
59S/WPGR/W/11/Add.8, Add.12, Add.14, Add.19; Slovak Republic-TPR 1995
60S/WPGR/W/11/Add.8
61Zambia-TPR 1996WT/WGTGP/W/6
Page12
- forprovision ofconsultancy services orperformance ofartistic works62;
- when thespecifications oftheprocurement inquestion cannot bedefined sufficiently
precisely63;
- when tenders submitted havebeencollusive;
- when procurement isconfidential orsensitive64;
- foraprivate group contract withsmall andmedium enterprises65;
- forprocurement under tiedloans66;
- insomeinstancesithasbeenstatedthatpriorpublicnoticeofprocurementopportunities
isnotarequirement under thismethod.67
25. Some countries havespecified that,insome exceptional cases, procuring entities mayconduct
negotiations withoneormoresuppliers todetermine theterms oftheprocurement contract inthecontext
oflimited tendering procedures.68Others seem toallow thepossibility ofnegotiations alsoinother
cases, forexample innegotiating contract terms withservice providers.69Theconditions forresort
tonegotiations varybetween countries. Insome countries, these conditions aresimilar tothose under
which limited tendering ispermitted.70Inonecountry, negotiated procedures aresometimes usedin
theutilities sector afterthepublication ofcallsforcompetition.71Inanother country, negotiations are
undertaken incases ofextreme urgency tomeetthedemand within agiven time-frame where sources
ofsupplies areknown.72
26. Moreover, some countries conduct atwo-stage procedure intheevent ofacomplicated
procurement requiring clarification oftechnical aspects.73Several countries sometimes employ design
62S/WPGR/W/11/Add.3, Add.8, Add.18, Add.19
63Slovak Republic-TPR 1995
64S/WPGR/W/11/Add.16
65S/WPGR/W/11/Add.13
66Colombia-TPR 1996, Cameroon-TPR 1995
67S/WPGR/W/11/Add.2
68S/WPGR/W/11/Add.14, Add.15, Add.17
69S/WPGR/W/11/Add.10, Add.12
70S/WPGR/W/11/Add.15, Add.17
71S/WPGR/W/11/Add.1
72S/WPGR/W/11/Add.14
73S/WPGR/W/11/Add.18; Czech Republic-TPR 1996, Brazil-TPR 1996WT/WGTGP/W/6
Page13
orother"contests".74Underthisprocedure,thecontractingauthority
mayacquire aplanordesign selected byajuryafterhaving beenputintocompetition withorwithout
theaward ofprizes. Design contests canbeorganized asapartofanother procedure leading tothe
award ofacontract, orcanconstitute anindependent procedure ontheirown.75,76
IV. INFORMATION ONNATIONAL LEGISLATION AND PROCEDURES
International instruments
27. Government procurement activities aregenerally regulated through lawsatthecentral orsub-
centrallevelsofgovernmentsupplementedbyadministrativerulingsanddirectivesofgeneralapplication.
TheModel LawandtheGPArequire thepublic accessibility oftherelevant texts.77TheGPAexplicitly
requires theGPA Parties topublish anylaw,regulation, judicial decision, administrative rulings of
general application andanyprocedure regarding government procurement (including standard contract
clauses) insuchamanner astoenable other GPA Parties andsuppliers tobecome acquainted with
them. Thepublications inwhich individual GPA Parties publish theirrespective national legislation
havetobeidentified inAppendix IVtotheGPA.78TheWorld Bank Guidelines arepublished bythe
World Bank andmade available toBorrowers.79
28. TheGPAalsoprovides forothermeans bywhich suppliers and/or othergovernments canobtain
information onnational procurement procedures. Under theGPA, eachentity shall, onrequest from
asupplier ofaGPA Party, promptly provide anexplanation ofitsprocurement practices and
procedures.80TheGPAParties arealsorequired toprovide thechallenge procedures under Article XX
inwriting andmake them generally available.81
National practices
29. Nationalrulesdifferindepth,incertaincasesspecifyingrelativelydetailedproceduralobligations,
while inother cases containing onlygeneral guidelines. Inafewinstances, there arenolawsor
regulations relating specifically toprocurement andeachentity isfreetodetermine itsownprocurement
procedures within thegeneral parameters setbythegovernment purchasing policy.82
74S/WPGR/W/11/Add.3, Add.10
75S/WPGR/W/11/Add.10
76Other countries have mentioned, without further explanation, procedures suchas"competition based on
previous records" and"negotiations-with-retaining-competition".
77Model LawArticle 5;GPA, Article XIX:1
78GPA, Article XIX:1
79WorldBankGuidelinesongoodsandworks,paragraph1.1;WorldBankGuidelinesonconsultants'services,
paragraph 1.1
80GPA, Article XVIII:2(a)
81GPA, Article XX:3
82S/WPGR/W/11/Add.4WT/WGTGP/W/6
Page14
30. Thenational regulatory frameworks forgovernment procurement procedures include oneor
more ofthefollowing:
- national constitutions83;
- procurement laws84;
- regulations, including intheform oflegislative decrees, cabinet orders, ministerial
ordinances implementing various aspects ofthebasic procurement law85,forexample
onprocedures forregistration andqualification ofsuppliers, ontender evaluation
processes oronpublic entities andenterprises providing network services86;
- horizontal guidelines ongovernment procurement policies indecentralized procurement
regimes87;
- horizontal lawsonnational budgets orthepublic sector budget88;
- horizontal lawsonfinancial orbudgetary management89,public sector control oraudit90;
- agency-specific purchasing regulations andguidelines thatimplement national policies
andprocedures onprocurement91;
- specific lawsatthesub-central levels ofgovernment92;
- theprovisions ofregional orother international agreements;
- separate regulations onprocurement ofspecific goods andservices categories and
construction works.93
83S/WPGR/W/11/Add.3, Add.8; Mexico-TPR 1997
84S/WPGR/W/11/Add.12, Add.17; Slovak Republic-TPR 1995, Czech Republic-TPR 1996,
Venezuela-TPR 1996, Mexico-TPR 1997
85S/WPGR/W/11/Add.5, Add.7, Add.8, Add.11, Add.15
86S/WPGR/W/11/Add.13
87S/WPGR/W/11/Add.4
88S/WPGR/W/11/Add.20
89S/WPGR/W/11/Add.20
90E.g., Audit Act1901 inAustralia, LawonNational Budget inSwitzerland, theGeneral Financial Rules
inIndia
91S/WPGR/W/11/Add.6; Costa Rica-TPR 1995, Dominican Republic-TPR 1996
92S/WPGR/W/11/Add.2, Add.5, Add.6, Add.7; Costa Rica-TPR 1995
93S/WPGR/W/11/Add.1, Add.9, Add.10, Add.16, Add.17; Costa Rica-TPR 1995, Brazil-TPR 1996WT/WGTGP/W/6
Page15
31. Inmostcountries, suchlaws, regulations, administrative guidelines, etc.arepublished inthe
official journals.94Theinformation available doesnotspecify howtheyareotherwise made publicly
available.
V. INFORMATION ON PROCUREMENT OPPORTUNITIES, TENDERING AND
QUALIFICATION
32. Thethree international instruments recognize thattimely, sufficiently detailed andreadily
available information onopportunities tobidforspecific contracts isessential forguaranteeing effective
competition. They laydown detailed provisions ontheadvance information thatentities mustprovide
ontheir intended procurements. Where prequalification isanecessary condition fortendering,
information mustbeprovided ontheprocedures andcriteria thathavetobefulfilled inorder foran
interested potential supplier toqualify.95
A. Notice ofInvitation toTender ortoPrequalify
(i) Howpublic notice should begiven
International instruments
33. Therelevant provisions inthethree instruments setforth asetofminimum procedures for
giving public notice oftendering opportunities thattheprocuring entity should follow inorder toobtain
expressions ofinterest inaspecific procurement frompotential suppliers. Under theModel Lawand
theGPA, theinformation onanintended procurement mustbeadvertised primarily through anotice
ofinvitation toparticipate intheintended procurement.96Thepublications inwhich individual GPA
Parties publish theirnotices ofinvitations totender havetobeidentified inAppendix IItotheGPA.97
TheWorld Bank Guidelines require theBorrower country tonotify theprojects which include
procurement ofgoods andworks onthebasis ofInternational Competitive Bidding oranyexpected
consultancy assignments through aGeneral Procurement Notice onthebasis ofadraftprepared and
submitted totheBankbytheBorrower. TheBorrower country mustnotify theinternational community
inatimely manner oftheopportunities tobidforspecific procurement ofgoods andworks through
invitations tobidadvertised intheformofSpecific Procurement Notices.98Forselection ofconsultants,
thepreparation ofrequests forproposals shallinvolve aLetter ofInvitation which shallstatetheintention
oftheBorrower toenterintoacontract forprovision ofconsultancy services.99Publication ofaGeneral
Procurement Notice isnotrequired inthecaseofNational Competitive Bidding (seeChapter VII,
Section A)andadvertising maybelimited tothenational press orofficial gazette. Bidding documents
94Eg., intheECtherelevant legislation (theDirectives) hasbeen published intheOfficial Journal ofthe
European Communities: theDirectives areavailable tosuppliers from theOffice forOfficial Publications of
theEuropean Communities inLuxembourg orthough designated salesoffices. TheDirectives arealsoavailable
ontheInternet through theSIMAP home page athttp://simap.eu.int. Inaddition, adatabase ofallcontracting
entities covered bytheCommunity Directives isbeing developed.
95Model LawArticle 7(3)(a)
96Model LawArticles 24(2), 37(2) and48(2); GPA, Article IX:1
97GPA, Article IX:1
98World Bank Guidelines ongoods andworks, paragraph 2.7,2.8and2.10
99World Bank Guidelines onconsultants 'services, paragraph 2.9WT/WGTGP/W/6
Page16
maybeintheofficial language ofthecountry, andlocalcurrency isgenerally usedforthepurposes
ofbidding andpayment.100
34. Allthreeinstruments foresee thepublication ofanotice ofinvitation toparticipate inanofficial
gazette orother official journal.101Moreover, tocreate awareness oftheprocurement opportunity
intheinternational community, theModel LawandtheWorld Bank Guidelines require thenotice of
invitation totender alsotobepublished inanewspaper orarelevant trade publication inalanguage
customarily usedininternational trade, inatechnical magazine oraprofessional journal ofwide
international circulation.102Under theWorld BankGuidelines, theinvitations tobidforgoods orworks
orlistsofconsultancy assignments which areadvertised intheGeneral Procurement Notice andthe
Specific Procurement Notices arepublished inDevelopment Business .103World Bank Borrowers are
alsoencouraged totransmit invitations toembassies andtrade representatives ofcountries oflikely
suppliers andcontractors.104
35. TheGPA provides thatentities atthesub-central level(Annex 2entities) andpublic utilities
(Annex 3entities) mayuseanotice ofplanned procurement oranotice regarding aqualification system
asaninvitation toparticipate inatender.105
36. TheGPA requires thatanyamendment orre-issue ofanotice ofinvitation totender, after
publication ofaninvitation toparticipate inanintended procurement butbefore thetimesetforthe
opening orreceipt oftenders, shallbegiven thesamecirculation astheoriginal documents uponwhich
theamendment isbased.106
National practices
37. Theinformationavailableindicatesthatpublicationofinvitationstotenderisoftenmandatory.107
Theinformation provided onsome countries describes thepractice butwithout being explicit asto
whether itisarequirement under theprocurement legislation.108Inonecountry there arenocentral
laws, regulations orrulesforthepublication ofnotices.109Theextent andformofpublicity candiffer
according tothetendering procedures applied and/or thevalue oftheprocurement. With certain
100World Bank Guidelines onprocurement ofgoods andworks, paragraph 3.4
101Model LawArticle 24(1) andGPA, Article IX:1
102Model LawArticle 24(2); World Bank Guidelines forgoods andworks, paragraph 2.8andonconsultants '
services, paragraph 2.5
103Development Business (UNDB) isapublication oftheUnited Nations Department ofPublic Information,
UNPlaza, NewYork, NewYork 10017, USA. ADevelopment Business office ismaintained attheWorld Bank,
1818 HStreet, N.W., Washington D.C. 20433, USA.
104World Bank Guidelines ongoods andworks, paragraph 2.8andonconsultants 'services, paragraph 2.5
105GPA, Article IX:3
106GPA, Article IX:10
107S/WPGR/W/11/Add.2, Add.6, Add.8, Add.12, Add.17, Add.18; APEC Survey -Indonesia
108S/WPGR/W/11/Add.6, Add.18, Add.19
109S/WPGR/W/11/Add.4WT/WGTGP/W/6
Page17
exceptions110,publication requirements areusually associated withopen orselective procurement
procedures.111, 112Invitations totender under certain selective tendering procedures maybesentdirectly
toqualified suppliers.113
38. Inmostinstances, requirements forpublication ofinvitations totender, inparticular advertising
intheofficial gazette orinofficial procurement bulletins, onlyconcern procurements above certain
threshold values which maydiffer depending onthetypeofprocurement114,orarelessrigorous for
procurements falling below acertain threshold value.115Forexample, tender notices aresetupina
visible place oftheprocuring entity fortwoconsecutive days.116Some Members havestated thatthe
extent andform ofpublicity does notdepend ontendering procedures117oronthevalue of
procurement.118
39. Procurement opportunities areadvertised through publication ofnotices ofinvitation totender
inprinted media which mayinclude:
- government gazettes orofficial journals.119Insome countries gazetting isrequired
forprocurement above certain threshold values120;
- special supplements toofficial journals121;
110S/WPGR/W/11/Add.5, Add.8, Add.11, Add.14, Add.15, Add.18
111S/WPGR/W/11/Add.2,Add.16,Add.19;WT/WGTGP/W/5;APECSurvey-BruneiDarussalam;Zambia-
TPR 1996
112IntheEC,invitations totender for"non-priority services" contracts arenotpublished and,forinvitations
inthecaseofcertain utilities, aprocedure without prior callforcompetition maybefollowed.
113S/WPGR/W/11/Add.9, Add.20; APEC Survey -Australia
114S/WPGR/W/11/Add.1, Add.7, Add.12, Add.13; GPA/12/Rev.1; Slovak Republic-TPR 1995
115S/WPGR/W/11/Add.6; WT/WGTGP/W/5
116S/WPGR/W/11/Add.19
117S/WPGR/W/11/Add.5, Add.8
118S/WPGR/W/11/Add.5, Add.8, Add.11, Add.14, Add.15
119E.g.,theSingaporeGovernmentGazette,theHongKongSpecialAdministrativeRegionGazette,theOfficial
Journal inChile, Kanpo¯inJapan andNorsk Lysningsblad inNorway andtheSwiss Official Trade Gazette, Pelita
Brunei, Diario Oficial delaFederación inMexico, Kwanbo inKorea, Government Gazettes inZambia and
Mauritius, LaGaceta inCosta Rica
120S/WPGR/W/11/Add.1
121E.g., Supplement StotheOfficial Journal oftheEuropean Communities andthespecial section ofthe
OfficialJournaloftheFederationofMexico,BulletindesAdjudicationsoftheBelgianOfficialJournal,the"Julkiset
hankinnat" oftheFinnish Official GazetteWT/WGTGP/W/6
Page18
- localnewspapers withwidenational circulation.122While gazetting isoften stipulated
bylaw,additional announcements inthelocal press maybeatthediscretion ofthe
procuring entity123;
- specialized daily orweekly publications124;
- tradeorfinancial journals andmagazines125inorder todisseminate information directly
tointerested suppliers. These mayhavestanding-columns foradvertising tenders126;
- bulletinsorotherpublicationsofnationaltradeassociations127orchambersofcommerce,
depending onthetypeofprocurement andtheprocuring entity128;
- specialized publications circulated inanumber ofcountries belonging tothesame
region129;
- foreign press ofwideinternational circulation where anentity 'sprocurement activities
requireinternationalsourcing.130Thenationallegislationofonecountrysetsoutdetailed
requirementsfornon-discriminationinthewaytendernoticesarepublisheddomestically
andinternationally. Forexample, iftheannouncement ofaspecific procurement is
tobepublished inaforeign newspaper, theannouncement maynotbepublished in
thenational publication priortoitspublication abroad. Theannouncements published
abroad andnationally must notcontain conflicting ordifferent details andfacts131;
- sub-central publications equivalent toanofficial gazette132orlocal language
newspapers133maybeusedtopublish invitations forprocurements atsub-central levels
122E.g., ElMercurio inChile, theStraits Times inSingapore, theSeoul Shinmoon, theBahasa Malaysia,
theDominion inNew Zealand
123S/WPGR/W/11/Add.12
124E.g., theOpen Bidding Service (OBS) andtheGovernment Business Opportunities (GBO) publications
inCanada,theCommonwealth(PurchasingandDisposals)GazetteinAustralia,theBulletinofPublicProcurement
inPoland, theCommerce Business Daily intheUnited States, theNew Zealand Tenders Gazette, NewZealand
Government andLocal Body Tender
125E.g., theIndian Trade Journal, Licitationen inDenmark, ElDiario Financiero inChile
126S/WPGR/W/11/Add.11
127S/WPGR/W/11/Add.15
128S/WPGR/W/11/Add.8; Slovak Republic-TPR 1995
129E.g., Revista Licitasur circulated inArgentina, Brazil, Paraguay andChile, Australian andNewZealand
annual joint publication ondefence equipment "The Yellow Book"
130S/WPGR/W/11/Add.19
131S/WPGR/W/11/Add.17
132S/WPGR/W/11/Add.2, Add.5
133S/WPGR/W/11/Add.14WT/WGTGP/W/6
Page19
ofgovernment, suchasStategovernments ormunicipalities. Tender notices areusually
given inthelocal media within theterritorial jurisdiction oftheentity inwhich the
good istobeused, theservice supplied andthework executed.134Onecountry has
indicated that,while itiscompulsory inthecaseoffederal entities, publication oftender
notices ofmunicipalities andcountries intheofficial gazette isonavoluntary basis.135
40. Advertising ofopportunities totender through electronic media isdescribed inChapter IX,
Section Bofthepresent note. Inaddition totheprinted andelectronic media, theprocuring entity
mayuseadditional forms ofadvertising ,forexample periodic handouts136orposting onthenotice boards
oftheprocuring entity.137Tender notices aresometimes published/notified through thecountry 's
embassies abroad andcopies given tothelocalrepresentatives ofother countries.138
41. Inadditiontosettingoutthegeneralrequirementsonproceduresforadvertising,theprocurement
legislation mayinsome cases specify theminimum number ofnewspapers inwhich tender notices
should bepublished andthenumber andthefrequency ofpublication ofthesame tender notice.139
Inonecase, procuring entities arerequired tousetheservices ofacentralized advertising agent for
publication.140
42. Insome instances, inaddition toinvitation totender notices, periodic pre-information notices
announcing procurement plans arepublished, inparticular intheworks orutilities sectors suchaswater,
energy, transport andtelecommunications.141
(ii) Information content ofnotices ofinvitation totender
International instruments andnational practices
43. Allthreeinternational instruments require entities toinclude aminimum amount ofinformation
intheirinvitations totender sufficient toenable prospective suppliers toassess theirinterest inthe
intended procurement, tomake aninformed decision astowhether acopyofthetender document should
134E.g., Sydney Morning Herald andQueensland Government Procurement Gazette; S/WPGR/W/11/Add.8
135S/WPGR/W/11/Add.1
136S/WPGR/W/11/Add.6
137S/WPGR/W/11/Add.8, Add.12, Add.17; APEC Survey -thePhilippines andThailand
138S/WPGR/W/11/Add.14; APEC Survey -Malaysia; Ghana-TPR 1992
139S/WPGR/W/11/Add.8, Add.10
140S/WPGR/W/11/Add.11
141S/WPGR/W/11/Add.1, Add.6, Add.10; APEC Survey -Australia andHong Kong, China; GPA/10.
Forexample, forworks contracts, contracting authorities intheEuropean Community publish indicative notices
containing theessential characteristics oftheworks contracts which theyintend toaward. Forother services
andsupplies contracts above acertain threshold value, contracting authorities arerequired tomake known, by
means ofanindicative notice tobepublished assoon aspossible after thebeginning oftheir budgetary year,
theintended totalprocurement byproduct areaorineachoftheservice contracts which theyenvisage awarding
during thesubsequent 12months (WT/WGTGP/W/5).WT/WGTGP/W/6
Page20
berequested from theprocuring entity andtofacilitate theirparticipation intendering procedures.142
Thethree instruments referbroadly tothesame elements.
44. Under theWorld Bank Guidelines onconsultants 'services, thedocument prepared forthe
assignment called theTerms ofReference shall define theobjectives, goals andthescope ofthe
assignment andprovide background information tofacilitate theconsultants 'preparation oftheir
proposals. TheTerms ofReference shallalsolisttheservices andsurveys necessary tocarry outthe
assignment andtheexpected results, forexample reports, data, maps orsurveys.143
45. Under theGPA, invitations totender shallcontain certain other specific information ,including
information concerning themethod ofprocurement applied (open, selective, negotiated procedures)144
andonthemode ofprocurement (purchase, lease, rental orhirepurchase).145
46. Since theGPA obligations onlyapply toprocurement bythose entities explicitly covered in
theschedules ofindividual GPAParties inAppendix ItotheGPAsubject toexceptions contained therein
andtogoods andservices above specified threshold values, thenotices ofinvitation toparticipate in
intended procurements orthepublication inwhich suchnotices appear should indicate whether the
procurement forwhich tenders aresought issubject totheobligations oftheAgreement.146
47. Finally, under theGPA, being anintergovernmental agreement subscribed tobyParties using
different languages, entities mustpublish inanappropriate publication listed inAppendix II,foreach
caseofintended procurement, asummary notice oftheinvitation totender inoneoftheofficial languages
oftheWTO. Thenotice shallcontain atleastinformation regarding thesubject-matter ofthecontract,
thetime-limits setforthesubmission oftenders oranapplication tobeinvited totender, andthe
addresses from which documents relating tothecontracts mayberequested.147
48. Thedetails oftheinformation thatmust bemade available innotices ofinvitation totender
aresimilar totherequirements ininternational instruments. Theinformation onnational practices
aswellasthespecific elements identified inoneormore oftheinternational instruments, arelisted
below withtheinstrument thatexplicitly contains thatelement identified inthefootnotes. There are
differences among thecountries onwhich information isavailable astothelevel ofdetail required
intender notices.
49. International instruments andmost countries require tender notices tocontain information
regarding intended procurement :
- thetitle,thebusiness name andtheaddress (including address, telephone, telexand
faxnumber) oftheentity responsible forinviting tenders forprocurement and/or
awarding thecontract ordetails oftheclient ofconsultancy services. Thecoordinates
142Model Law25(1); GPA, Article IX:6-8
143World Bank Guidelines onconsultants 'services, paragraph 2.3
144GPA, Article IX:6(b)
145GPA, Article IX:6(h)
146GPA, Article IX:11
147GPA, Article IX:8WT/WGTGP/W/6
Page21
ofacontact point responsible forproviding anycommercial ortechnical
information148, 149, 150;
- thescope oftheprocurement withdetails onthenature andthequantity ofthegoods
andservices tobeprocured ortheconstruction tobeeffected151including thecategory
classificationsofproductsandservicesandadescriptionoftheircharacteristics,product
orservices category classifications152;
- theprocurement method chosen153;
- anyoptions forfurther procurement orjointcontracts154orforsubmitting abidfor
apartofaprocurement155,thenature andquantity ofanyrecurring contracts156and
anyoption tobuyincaseofleasing157;
- thetime-table forthesupply ofgoods, theprovision ofservices orforthecompletion
oftheconstruction.158,159Ifpossible, anestimate ofthetiming when anyoption for
further procurement maybeexercised; inthecaseofrecurring contracts, anestimate
ofthetiming ofthesubsequent tender notices160;
- theplace, thedateandtimeforsitevisits;
148Model LawArticles 25(1)(a) and37(1); GPA, Article IX:6(e); World Bank Guidelines ongoods and
works, paragraph 2.7
149World Bank Guidelines onconsultants 'services, paragraph 2.9; WT/WGTGP/W/5
150S/WPGR/W/11/Add.1, Add.2, Add.3, Add.5, Add.6, Add.7, Add.9, Add.11, Add.12, Add.14, Add.15,
Add.17, Add.18, Add.19; WT/WGTGP/W/5; APEC Survey -Australia, thePhilippines andThailand
151Model LawArticles 25(1)(b) and37(1); GPA, Article IX:6(a); World Bank Guidelines forgoods and
works, paragraph 2.7andonconsultants 'services, paragraph 2.3
152S/WPGR/W/11/Add.2,Add.3,Add.7,Add.9,Add.11,Add.12,Add.14,Add.15,Add.17,Add.18,Add.21;
APEC Survey -Mexico, thePhilippines andThailand. Forexample, intheEuropean Community, entities are
encouraged touseCommon Procurement Vocabulary (CPV) todescribe theobject oftheprocurement.
153WT/WGTGP/W/5
154S/WPGR/W/11/Add.13
155S/WPGR/W/11/Add.10, Add.17
156GPA, Article IX:6(a)
157S/WPGR/W/11/Add.18
158Model LawArticle 25(1)(c); GPA, Article IX:6(c)
159S/WPGR/W/11/Add.1, Add.12, Add.18, Add.20; APEC Survey -Mexico
160GPA, Article IX:6(a)WT/WGTGP/W/6
Page22
- thecriteria forassessing thebidsandother performance requirements andawarding
contracts161,specifically incases where there isnotender documentation;
- theplace ofdelivery ofthegoods tobesupplied, thesiteorlocation where services
aretobeprovided orwhere theconstruction istobeeffected162,163;
regarding suppliers :
- anyeconomic andtechnical conditions, terms andrequirements, financial guarantees
suchassecurity deposits andanyother information required164,165;
- thecriteria andprocedures tobeusedforevaluating thequalifications ofsuppliers166
andassessing thefinancial, economic andtechnical capacity andsuitability ofthe
bidder167;
- indication ofwhether theexecution oftheservice procured isreserved bylawtoa
particular profession168;
- indication ofthenames andprofessional qualifications ofthestafftoberesponsible
fortheexecution oftheservices.169
50. Tofacilitate obtaining tender documents orprequalification documents bysuppliers interested
inbidding fortheintended procurement, theprocuring entity shallalsoprovide information regarding:
- themeans ofobtaining thedocuments containing basictender information andtheplace
from which theymaybeobtained170,171;
161S/WPGR/W/11/Add.18, Add.21; WT/WGTGP/W/5; APEC Survey -Mexico andthePhilippines
162Model LawArticles 25(1)(b) and37(1)
163S/WPGR/W/11/Add.1, Add.2, Add.8, Add.18; WT/WGTGP/W/5; APEC Survey -Australia
164GPA, Article IX:6(f)
165S/WPGR/W/11/Add.1, Add.5, Add.8, Add.12, Add.13, Add.19, Add.21; APEC Survey -Thailand;
GPA/15
166Model LawArticle 25(1)(d)
167S/WPGR/W/11/Add.1, Add.3, Add.5, Add.13, Add.17; APEC Survey -thePhilippines
168WT/WGTGP/W/5
169WT/WGTGP/W/5
170Model LawArticles 25(1)(f), 25(2)(a) and37(1)
171S/WPGR/W/11/Add.1,Add.2,Add.12,Add.14,Add.15,Add.17,Add.19,Add.20,Add.21;APECSurvey
-Australia, thePhilippines, Mexico andThailandWT/WGTGP/W/6
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- theprice charged172andthecurrency andmeans ofpayment fordocuments173,174;
- thescheduled datefortheavailability ofthedocuments175andthefinaldateforrequest
fordocuments176;
- thelanguage orlanguages inwhich thedocuments areavailable177;
information regarding submission ofapplications totender ortoprequalify :
- theaddress forsubmitting anapplication tobeinvited totender ortoqualify forthe
suppliers 'listsaswellasforsubmission orreceipt oftenders178,179;
- theplace andthedeadline forthesubmission orreceipt oftenders180,181;
- tender opening andclosing dates182,183;
- thelanguage orlanguages inwhich applications tobeinvited totender orqualify for
thesuppliers 'listorbidsmust besubmitted184,185;
andcertain other information :
- anindication ofwhether theentity intends toholdnegotiations;
172Model LawArticles 25(1)(g), 25(2)(b) and37(1)
173Model LawArticle 25(1)(h) and(2)(c); GPA, Article IX:6(g)
174S/WPGR/W/11/Add.1, Add.2, Add.14, Add.15, Add.17, Add.19
175World Bank Guidelines ongoods andworks, paragraph 2.7
176S/WPGR/W/11/Add.1, Add.15
177Model LawArticle 25(1)(i) and(2)(d)
178GPA, Article IX:6(d); Model LawArticle 25(1)(j); World Bank Guidelines ongoods andworks,
paragraph 2.43 andonconsultants 'services, paragraph 2.9
179S/WPGR/W/11/Add.5, Add.12, Add.17
180Model Law Article 25(1)(j); GPA, Article IX:6(d); World Bank Guidelines ongoods andworks,
paragraph 2.43 andonconsultants 'services, paragraph 2.9
181S/WPGR/W/11/Add.1, Add.2, Add.5, Add.6, Add.7, Add.8, Add.9, Add.12, Add.13, Add.14, Add.15,
Add.17,Add.19,Add.20,Add.21;WT/WGTGP/W/5;APECSurvey-Australia,MexicoandThailand;GPA/10
182S/WPGR/W/11/Add.1, Add.18
183S/WPGR/W/11/Add.18; WT/WGTGP/W/5
184GPA, Article IX:6(d)
185S/WPGR/W/11/Add.5, Add.1, Add.17, Add.18WT/WGTGP/W/6
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- adescription ofchallenge procedures;
- whether thetender iscovered byatrade agreement.186
51. Theinformation content oftender notices issued byentities incountries which areparties to
plurilateral orregional agreements (e.g.GPA andNAFTA) issubject totherelevant requirements
setoutinthose agreements.187Tender notices indicate whether theprocurement fallsunder anyof
those agreements orwhether thebidisdomestic orinternational.188Forprocurement byentities at
thesub-central levels ofgovernment inacountry, theminimum information tobeprovided isequivalent
totheinformation required ofentities atthecentral government level.189
52. InsomeMembers,entitiesarerequiredtodrawuptendernoticesonthebasisofmodelspecimens
ornotices.190
B. Tender Documents
International instruments
53. Theinformation contained intender documents describes theneeds oftheprocuring entity
andestablishes asetofstandards which enables theprocuring entity tocompare thetenders submitted
inanobjective andfairmanner.191Tender documents alsosetouttherulesandprocedures withwhich
aprospective tenderer should comply inpreparing andsubmitting aresponsive tender. Thelevelof
detail andcomplexity oftender documents mayvarywiththesizeandnature oftheintended procurement
buttheyshould include, atleast, theinformation thatisrequired tobepublished inthenotice ofintended
procurement.192Thethree instruments referbroadly tothesame elements.193Thespecific elements
identified inoneormore ofthethree instruments arelisted below, withtheinstrument thatexplicitly
specifies those elements identified inthefootnotes:
186S/WPGR/W/11/Add.1, Add.7, Add.9; APEC Survey -Mexico
187S/WPGR/W/11/Add.7; APEC Survey -Hong Kong, China
188S/WPGR/W/11/Add.2, Add.7, Add.18
189S/WPGR/W/11/Add.2
190S/WPGR/W/11/Add.10, Add.12
191UNCITRAL Guidelines, page 80
192Model LawArticles 26and27(a); GPA, Article XII:2
193TheWorld Bank Borrowers useStandard Bidding Documents (SBDs) published bytheBank forvarious
types ofprocurement (World Bank Guidelines ongoods andworks, paragraph 2.12). Where noSBDs have
been issued, theBorrower usesother standard conditions ofcontract orcontract forms acceptable totheBank.
Forselection andemployment ofconsultants theBorrower usesthestandard Request forProposals (RFPs) which
includesaletterofInvitation,InformationtoConsultants(ITC),theTermsofReference,andtheproposedcontract
(World Bank Guidelines onconsultants 'services, paragraph 2.8and2.10 andAppendix 2).WT/WGTGP/W/6
Page25
regarding theprocuring entity:
- theaddress oftheentity towhich tenders should besent194;
- theaddress where requests forsupplementary information orrequests forclarification
should besent195andthename, functional titleandaddress ofoneormore officers
oremployees oftheprocuring entity whoareauthorized tocommunicate withsuppliers
inconnection with theprocurement proceedings, without theintervention ofan
intermediary196;
regarding theintended procurement :
- acomplete description oftheproducts orservices orconstruction tobeprocured197,
abriefdescription oftheconsultancy assignment198;
- where theprocurement isforgoods, thequantity oforalistofthegoods tobe
procured199;
- anyrequirements (including technical andquality specifications, standards, minimum
performance requirements, conformity certification) tobefulfilled andthetestmethods
thatwillbeusedtoassess theconformity oftheequipment orworks withthose
specifications200;
- necessary plans, drawings, designs andinstructional materials201;
- ifalternatives tothecharacteristics ofthegoods, construction orservices, designs,
materials, completion schedules, payment terms, contractual terms andconditions or
other requirements setforthinthetender documents arepermitted, astatement tothat
effect, andadescription ofthemanner inwhich alternative tenders aretobeevaluated
andcompared202;
- thewarranty andmaintenance requirements203;
194GPA, Article XII:2(a)
195GPA, Article XII:2(b) andWorld Bank Guidelines onconsultants 'services, Appendix 2(c)
196Model LawArticle 27(u)
197Model LawArticle 27(d); GPA, Article XII:2(g)
198World Bank Guidelines onconsultants 'services, Appendix 2(a)
199Model LawArticle 27(d); World Bank Guidelines ongoods andworks, paragraph 2.11
200Model Law Article 27(d); GPA, Article XII:2(g); World Bank Guidelines ongoods andworks,
paragraph 2.11 and2.16
201Model Law27(d); GPA, Article XII:2(g)
202Model LawArticle 27(d) and(g); World Bank Guidelines ongoods andworks, paragraph 2.17
203World Bank Guidelines ongoods andworks, paragraph 2.16WT/WGTGP/W/6
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- thelocation ofdelivery ofthegoods tobesupplied, services tobeprovided or
installation oftheconstruction204;
- thedelivery timeorschedule ofcompletion ofthegoods, theconstruction tobeeffected
ortheservices tobeprovided205;
- ifsuppliers orcontractors arepermitted tosubmit tenders foronlyaportion ofthe
goods, construction orservices tobeprocured, adescription oftheportion orportions
forwhich tenders maybesubmitted206;
- themanner inwhich thetender price istobeformulated andexpressed, including a
statement astowhether thepriceistocover elements other thanthecostofthegoods,
construction orservices themselves, suchasanyapplicable transportation andinsurance
charges, inspection costsaswellascustoms duties andothercharges ortaxesapplicable
toimported goods207;
- thecurrency orcurrencies inwhich thetender priceistobeformulated andexpressed208
andtheexchange ratethatwillbeusedfortheconversion oftenders intothatcurrency
orastatement thattheratepublished byaspecified financial institution prevailing on
aspecified datewillbeused209;
regarding suppliers :
- anyeconomicandtechnicalrequirements,financialguaranteesandanyotherinformation
orevidence required from suppliers210;
- requirements astodocumentary evidence orother information thatmustbesubmitted
bysuppliers todemonstrate theirqualification211;
- thecriteria andprocedures relative totheevaluation ofthequalification ofsuppliers212;
204Model LawArticle 27(d); World Bank Guidelines ongoods andworks, paragraph 2.16
205Model LawArticle 27(d); World Bank Guidelines ongoods andworks, paragraph 2.11and2.16 and
onconsultants 'services, Appendix 2(p)
206Model LawArticle 27(h)
207Model LawArticle 27(i)
208Model Law Article 27(j); GPA, Article XII:2(h); World Bank Guidelines onconsultants 'services,
Appendix 2(i)
209Model LawArticle 27(s)
210GPA, Article XII:2(f); Model LawArticle 27(c)
211Model LawArticles 7(3)(a)(iii) and27(c)
212Model LawArticle 27(b)WT/WGTGP/W/6
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regarding evaluation oftenders orproposals :
- thecriteria tobeusedbytheprocuring entity indetermining thesuccessful tender and
forawarding thecontract, including anymargin ofpreference andanyfactor other
thanpricetobeconsidered intheevaluation oftenders, suchasinsurance andinspection
costs, customs duties andother import charges, taxes andcurrency ofpayment for
imported goods andtherelative weight ofsuchcriteria213andthewayinwhich such
factors willbequantified orotherwise evaluated214;
regarding submission andreceipt oftenders orproposals :
- themanner, placeanddeadline forthesubmission oftenders, applications toprequalify
orproposals215;
- theclosing dateandtimeforreceipt oftenders andthelength oftimeduring which
anytender should beopenforacceptance216;
- theperiod oftimeduring which tenders shallbeineffect orconsultants 'proposals
shallbeheldvalid217;
- thelanguage orlanguages inwhich tenders must besubmitted218;
regarding opening oftenders :
- theplace, dateandtimeof,andpersons authorized tobepresent at,theopening of
tenders219;
- theprocedures tobefollowed foropening andexamining tenders220;
213Model LawArticle 27(e); GPA, Article XII:2(h)
214World Bank Guidelines ongoods andworks, paragraph 2.11, 2.17and2.51andonconsultants 'services,
paragraph 2.10 andAppendix 2(d)
215Model LawArticles 7(3)(a)(iv) and27(n); World Bank Guidelines onconsultants 'services, Appendix 2(h)
and(l)
216GPA, Article XII:2(d)
217Model LawArticle 27(p); World Bank Guidelines onconsultants 'services, Appendix 2(o)
218GPA, Article XII:2(c)
219Model Law Article 27(q); GPA, Article XII:2(e); World Bank Guidelines ongoods andworks,
paragraph 2.44
220Model LawArticle 27(r)WT/WGTGP/W/6
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regarding theprocurement contract :
- theterms andconditions oftheprocurement contract, bothgeneral andspecial, tothe
extent theyarealready known totheprocuring entity, andthecontract form, ifany,
tobesigned bytheparties221;
- theterms ofpayment222;
- anyformalities thatwillberequired, onceatender hasbeenaccepted, foraprocurement
contract toenter intoforce, including, where applicable, thesigning ofawritten
procurement contract andapproval byahigher authority ofthegovernment together
withtheestimated period oftimefollowing thedispatch ofthenotice ofacceptance
thatwillberequired toobtain theapproval223;
andregarding certain other matters :
- anyrequirements oftheprocuring entity withrespect toanytender security tobe
provided bysuppliers including theissuer andthenature, form, amount andother
principal terms andconditions224;
- anycommitments tobemade bythesupplier orcontractor outside oftheprocurement
contract, such ascommitments relating tocounter-trade ortothetransfer of
technology.225
54. Under theModel Law, atanytimepriortothedeadline forsubmission oftenders, theprocuring
entity may, foranyreason, whether onitsowninitiative orasaresult ofarequest forclarification
byasupplier orcontractor, modify thetender documents byissuing anaddendum. Theaddendum
shallbecommunicatedpromptlytoallsuppliersorcontractorstowhichtheprocuringentityhasprovided
thesolicitation documents andshallbebinding onthose suppliers orcontractors.226
National practices
55. Thedataavailable donotcontain details orexamples oftender documents. Some countries
havestated thattender documentation must contain alltherelevant information toenable suppliers
toprepare andsubmit responsive bids.227
221Model LawArticles 7(3)(a)(ii) and27(f); World Bank Guidelines ongoods andworks, paragraph 2.11
222GPA, Article XII:2(i)
223Model LawArticle 27(y)
224Model LawArticle 27(l) and(m)
225Model LawArticle 27(v)
226Model LawArticle 28(2)
227WT/WGTGP/W/5; APEC Survey -MexicoWT/WGTGP/W/6
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C. Clarification
International instruments
56. UndertheModelLawandtheWorldBankGuidelines,theprocuringentityisrequiredtorespond
toanyrequest byasupplier forclarification ofthetender documents orprequalification documents
within areasonable timepriortothedeadline forthesubmission oftenders orapplication toprequalify
soastoenable thesupplier tomake atimely submission ofitstender orapplication toprequalify.
Theprocuring entity isalsorequired, without identifying thesource oftherequest, tocommunicate
theclarification, anyadditional information, correction oferrors oranyother modifications toallother
suppliers towhich theprocuring entity hasprovided thetender documents. Therecord ofanymeeting
withanysuppliers shallalsobecommunicated toother suppliers.228
57. Under theGPA, entities arerequired toreplypromptly toanyreasonable request fromsuppliers
forexplanations relating totender documentation under openandselective procedures. Entities are
alsorequired toreply toanyreasonable request forrelevant information fromasupplier participating
inthetendering process oncondition thatsuchinformation doesnotgivethatsupplier anadvantage
overitscompetitors intheprocedure fortheaward ofthecontract.229Also, anysignificant information
given toonesupplier regarding invitations totender foraparticular intended procurement shallbe
given simultaneously toallothersuppliers concerned inadequate timetopermit thesuppliers toconsider
suchinformation andtorespond toit.230
58. UndertheWorldBankGuidelines,allprospectivebiddersshallbeprovidedthesameinformation,
andshall beassured ofequal opportunities toobtain additional information onatimely basis.231
Borrowers shallprovide reasonable access toproject sitesforvisits byprospective bidders. Forworks
orcomplex supply contracts, particularly forthose requiring refurbishing existing works orequipment,
apre-bid conference maybearranged whereby potential bidders maymeet withtheBorrower 's
representatives toseekclarifications. Minutes oftheconference shallbeprovided toallprospective
bidders withacopytotheBank.232
National practices
59. Nodetailed information isavailable onnational practices onclarification oftender documents
andprocedures. Inonecountry, theprocurement legislation provides theconditions under which
tenderers mayrequest andobtain further information from theprocuring entity.233
228Model LawArticles 28(1) and(3)and7(4); World Bank Guidelines ongoods andworks, paragraph 2.18
229GPA, Article XII:3(a)-(c)
230GPA, Article IX:10
231World Bank Guidelines ongood andworks, paragraph 2.18
232World Bank Guidelines ongoods andworks, paragraph 2.18
233Tenderers may, forthepurpose ofdrawing uptheirbids, request further information from theprocuring
entity inwriting notlaterthantendaysprior totheexpiry ofthedeadline forsubmitting tenders. Thecontent
oftheinformation shall bemade available toother tenderers. Theprocuring entity isrequired toprovide the
supplementary information related totender documents notlaterthansixdaysprior totheexpiry ofthedeadline
forsubmitting thebidandinamanner thatdoesnotfavour certain bidders overothers (S/WPGR/W/11/Add.17).WT/WGTGP/W/6
Page30
D. Promptness andTimeliness ofPrior Information andDeadlines
International instruments
60. TheModel LawandtheGPAemphasize theimportance ofpromptness intheaccess tonational
legislation andthepublication oftextsofrelevant legislation.234TheWorld Bank Guidelines ongoods
andworks emphasize thatspecific bidding opportunities should beadvertised toallthose interested
inbidding and,inparticular, totheinternational community inatimely manner toenable prospective
bidders toobtain prequalification orbidding documents andprepare andsubmit theirresponses.235
61. Allthreeinstruments provide thatsuppliers mustbegranted asufficient period oftimetoprepare
theirtenders. TheModel Lawrecognizes thatthelength ofthatperiod oftimemayvaryfrom case
tocasedepending onthecircumstances ofthegiven procurement anditislefttotheprocuring entity
tofixthedeadline bywhich tenders must besubmitted.236
62. TheGPA prescribes certain minimum deadlines thatmust beallowed forthepreparation,
submission andreceipt oftenders toenable responsive tendering. Therelevant provisions alsocontain
general considerations thatshould govern when entities settime-limits fortendering anddelivery.
Anyprescribed time-limit shallbeadequate toallow suppliers ofother Parties aswellasdomestic
suppliers toprepare andsubmit tenders before theclosing ofthetendering procedures. Indetermining
suchatime-limit, entities shall, consistent withtheirownreasonable needs, takeintoaccount factors
suchasthecomplexity oftheintended procurement, theextent ofsubcontracting anticipated andthe
normal timefortransmitting tenders bymailfromforeign aswellasdomestic points. Furthermore,
eachParty isrequired toensure thatitsentities takedueaccount ofpublication delays when setting
thefinaldateforreceipt oftenders orofapplications tobeinvited totender.237
63. Paragraphs 2and3ofArticle XIoftheGPA ondeadlines specify theminimum periods that
mustbeprovided forthepreparation andsubmission oftenders bysuppliers aftertheissuance ofnotices
ofinvitation totender. Thedeadlines maybeshortened under certain circumstances specified inthat
Article.
64. TheWorldBankGuidelinesalsorequirethatthetimeallowedforthepreparationandsubmission
ofbidsshallbedetermined withdueconsideration oftheparticular circumstances oftheproject and
themagnitude andthecomplexity ofthecontract and,generally, nolessthansixweeks fromthedate
ofinvitation tobidorthedateofavailability ofbidding documents, whichever islater, shallbeallowed
forInternational Competitive Bidding.238Therelevant provisions require thatsufficient timeshould
beallowed toprospective bidders toprepare theirbidsaftertheyhavebeennotified oftheprocurement
opportunity. Aleadtimeofeightweeks isprescribed between thepublication ofaGeneral Procurement
Notice forprocurement onthebasisofInternational Competitive Bidding andtherelease ofthebidding
documents tothepublic. Thenotifications onopportunities tobidforspecific contracts, ortoprequalify,
234Model LawArticle 5;GPA, Article XIX:1
235World Bank Guidelines ongoods andworks, paragraph 2.7and2.8
236Model LawArticle 30(1)
237GPA, Article XI:1
238World Bank Guidelines ongoods andworks, paragraph 2.43WT/WGTGP/W/6
Page31
intheformofSpecific Procurement Notices, shallbepublished insufficient timetoenable prospective
bidders toobtain prequalification orbidding documents andprepare andsubmit theirresponses.239
65. TheGPA hasdetailed provisions aimed atallowing asufficient period oftimeforpotential
suppliers toprequalify. Tothisend,theGPAprovides thatanyconditions forparticipation intendering
procedures shallbepublished inadequate timetoenable interested suppliers toinitiate andcomplete
thequalification procedures240;thetimerequired forqualifying suppliers shallnotbeusedinorder
tokeepsuppliers ofother GPA Parties offasuppliers 'listorfrom being considered foraparticular
intended procurement241;entities maintaining permanent listsofqualified suppliers shallensure that
suppliers mayapply forqualification atanytime; andthatallqualified suppliers sorequesting are
included inthelistswithin areasonably short time; if,afterpublication ofatender notice, asupplier
notyetqualified requests toparticipate, theentity shallpromptly startprocedures forqualification.242
National practices
66. Most countries 'procurement legislation establishes minimum time-limits, withwhich the
purchasing entities mustcomply. Inacouple ofcountries there arenomandatory requirements and
individual government agencies havediscretion insetting theminimum time-limits.243Some GPA
Parties havestated thattheirtime-limits areinlinewiththerelevant provisions oftheGPA.244The
time-limits allowed between thepublication ofnotices ofinvitation totender andsubmission oftenders
varyfromfiveto45daysdepending ontheprocurement methods used, thecomplexity orsizeofthe
procurement andwhether thetender isadvertised locally orinternationally.245Under openandselective
tendering procedures, aperiod ofnolessthan40daysbetween publication ofnotices ofinvitation
totender andsubmission oftenders isfrequently allowed although some countries mayextend this
period uptothree months.246
67. Theinformation available alsoindicates thefollowing morespecific practices insomecountries:
- under selective procurement procedures, where procurement procedures provide for
thebidtobepreceded byanapplication toparticipate inthetender, thetime-limits
between thepublication oftheinvitation toparticipate inthetender andreceipt ofthe
application maybenolessthan25days247;
239World Bank Guidelines ongoods andservices, paragraph 2.7and2.8
240GPA, Article VIII(a)
241GPA, Article VIII(c)
242GPA, Article VIII(e)
243S/WPGR/W/11/Add.4, Add.11
244S/WPGR/W/11/Add.1, Add.2
245S/WPGR/W/11/Add.3, Add.6, Add.8, Add.13, Add.15, Add.16, Add.21; APEC Survey -Malaysia and
Mexico; South Africa-TPR 1993
246S/WPGR/W/11/Add.1,Add.2,Add.5,Add.6,Add.9,Add.12,Add.13,Add.14,Add.16,Add.17,Add.18;
WT/WGTGP/W/5; Malaysia-TPR 1993
247S/WPGR/W/11/Add.2, Add.6, Add.17; WT/WGTGP/W/5WT/WGTGP/W/6
Page32
- time-limits maybereduced forcommercial off-the-shelf procurement248when the
procuring entity haspublished apre-information notice, forexample inthecaseof
works andservices contracts249andunder accelerated procedures used inurgent
circumstances250;
- injustified cases, theinviter ofbidsmayextend thedeadline forsubmitting bids,
provided thattheextension ofthedeadline ispublished inanannouncement prior to
theexpiry oftheoriginal deadline, andthereason forextending thedeadline is
indicated.251
VI. TRANSPARENCY OFDECISIONS ONQUALIFICATION
A. Transparency ofCriteria
International instruments
68. Allthree instruments contain provisions aimed atensuring thatdecisions onthequalification
ofsuppliers aretaken andseentobetaken onthebasisofcriteria thathavebeenpreviously disclosed,
arecapable ofobjective application andlinked totheabilities ofinterested suppliers toperform.252
69. TheModel Lawsetsforththerange ofcriteria thatprocuring entities mayrequire thesuppliers
tomeetinorder toqualify forparticipation inprocurement proceedings.253TheGPA requires that
anyconditions forparticipation intendering procedures belimited tothose which areessential toensure
thefirm'scapability tofulfil thecontract inquestion. Entities shallrecognize asqualified suppliers
such domestic andforeign suppliers thatmeet theconditions forparticipation inanintended
procurement.254TheGPA alsoprescribes anumber ofprocedures inArticle VIIItoensure thatthe
qualification process isfairanddoesnotleadtodiscrimination among suppliers. TheWorld Bank
Guidelines emphasize thatqualification ofsuppliers bebased entirely ontheircapability andresources
toperform theparticular contract satisfactorily andliststhefactors thatshould betaken intoaccount.255
70. Inorder toguarantee fairness ofandnon-discrimination inthequalification process, theModel
Lawrequires thatthesame criteria mustbeapplied toallsuppliers participating intheprocurement
proceedings; anyqualification criteria shallbepredisclosed intheprequalification documents ortender
documents; theprocuring entity shallevaluate thequalification ofsuppliers inaccordance withthe
qualification criteria setforthintheprequalification ortender documents; and,inreaching adecision
withrespect tothequalification ofeachsupplier, theprocuring entity shallapply onlythecriteria and
248S/WPGR/W/11/Add.6, Add.10
249S/WPGR/W/11/Add.10
250S/WPGR/W/11/Add.17, Add.18; WT/WGTGP/W/5
251S/WPGR/W/11/Add.1, Add.10, Add.17
252Model LawArticle 6;GPA, Article VIIIandWorld Bank Guidelines ongoods andworks, paragraph 2.9
and2.10
253Model LawArticle 6(1)(b)
254GPA, Article VIII(b) and(c)
255World Bank Guidelines ongoods andworks, paragraph 2.9WT/WGTGP/W/6
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procedures setforth insuchdocuments.256TheWorld Bank Guidelines require thatthescope ofthe
contract andaclearstatement oftherequirement forqualification besenttothose whohaveresponded
totheinvitation toprequalify.257
National practices
71. Registration andqualification systems serve tocreate apoolofreadily available information
onsupplier firms which theprocuring entities mayusetorequest proposals forbidsortoevaluate
bids.258
72. Sothatprocuring entities cansatisfy themselves thatthesupplier selected willhavethefinancial
andtechnical capacity toperform theterms oftheprocurement contract, thefollowing national practices
onqualification criteria areemployed inoneormoreofthecountries onwhom information isavailable:
- thefinancial capacity andstability ofasupplier aredetermined byrequiring detailed
records ofaccounting operations andtheproof thatthesupplier hasfulfilled allhis
taxobligations259orhasaprofessional riskindemnity insurance260;
- theassessment ofprofessional capacity andtechnical suitability261based oninformation
relating to:major accomplished projects; availability ofequipment, plants, materials
andkeystaff; managerial competence262;adequate production capacity andavailability
ofthelicence required toperform thecontract; references orcertificates issued by
independent bodies attesting ability tosupply therequired goods andservices in
compliance withappropriate quality standards andquality assurance systems263;
- thelegalcapacity toenter intoprocurement contracts mayhavetobesubstantiated,
forexample byproducing extracts frompenal records, etc.264Insome cases, iftenders
aresubmitted bygroups ofsuppliers, aspecific legalform canberequired oncethe
contract hasbeen awarded even though itmaynotberequired insubmitting the
tender265;
256Model LawArticle 6(3)and(4)andArticle 7(5)
257World Bank Guidelines ongoods andworks, paragraph 2.10
258S/WPGR/W/11/Add.7, Add.16
259S/WPGR/W/11/Add.1, Add.3, Add.9, Add.17, Add.19
260S/WPGR/W/11/Add.10
261S/WPGR/W/11/Add.3, Add.9, Add.12, Add.17
262S/WPGR/W/11/Add.6, Add.9, Add.11, Add.12, Add.13, Add.16; GPA/12/Rev.1
263S/WPGR/W/11/Add.4, Add.11, Add.13
264S/WPGR/W/11/Add.2; Brazil-TPR 1996
265S/WPGR/W/11/Add.10WT/WGTGP/W/6
Page34
- additionally, entities may base their qualification requirements onsome other
considerations,forexampleprotectionofhealthandsafetyofworkers266andemployment
equity formenandwomen267;
- insome cases, tenderers applying forqualification mayberequired toprove their
enrolment inoneoftheprofessional ortrade registers;
- incertain cases, countries make theeligibility ofsuppliers ofother countries to
participate inaprocurement depend onthese countries providing reciprocal treatment
toitssuppliers.268
Thecriteria forqualification mayvaryaccording totheprocurement procedure usedortheprocuring
entity, forexample rules onqualification intheutilities sector maybelessdetailed.269
73. Entities maysometimes usenegative criteria fordisqualifying suppliers, forexample forreasons
ofbankruptcy, criminal conviction, grave professional misconduct270,failure torespect social security
ortaxobligations,misrepresentationorfailingtosupplyinformationthatmayberequired,andinadequate
pastperformance orviolation ofcontractual obligations inaprevious public procurement.271Persons
whoarethemselves public employees orwhohavefamily orbusiness tieswiththeofficials involved
inthespecific procuring process orwhohaveacted asexperts insettlement ofarelated procurement
dispute mayalsobeexcluded from participating intenders.
74. Anyparticular requirements andconditions regarding qualification procedures arenormally
setforthininvitations totender andtender documents, thereby ensuring thatallsuppliers areinformed
sufficiently inadvance oftherelevant requirements.272
75. Inaddition tobeing usedtoensure thecapacity oftenderers toperform, qualification andalso
registration systems maybeusedtobuild upanapproved suppliers 'network andforconsolidating
relationships withreliable suppliers. Theguidelines forprocurement inonecountry advise organizations
which purchase items specifically designed andmanufactured tomeettheirrequirements toconsider
developing alistofapproved suppliers.273Onecountry allows listsofapproved suppliers tobeused
onlyinexceptional cases, andthentherecourse tolistsmust bejustified andapproved.274
76. Registration requirements arecompulsory incertain countries anddonotexistinothers. Their
relation toqualification requirements isnotalways clear. Insome cases, theyseem tobeadditional.
266S/WPGR/W/11/Add.2
267E.g., Affirmative Action (Equal Employment Opportunity forWomen) ActinAustralia
268S/WPGR/W/11/Add.2
269S/WPGR/W/11/Add.10
270S/WPGR/W/11/Add.10
271S/WPGR/W/11/Add.13, Add.17, Add.18
272S/WPGR/W/11/Add.6, Add.15, Add.17, Add.18
273S/WPGR/W/11/Add.4
274S/WPGR/W/11/Add.6WT/WGTGP/W/6
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Incertain countries, allpotential suppliers, bothlocal andforeign, arerequired tobeenrolled ina
centralized registration system asaprerequisite forparticipation ingovernment procurement contracts
incertain categories oftenders.275Registration systems mayinclude thefollowing features, depending
onthecountry:
- designated authorities handle registration systems andclassify suppliers according to
their contracting capacity.276Onecountry hasindicated that, while there isno
compulsory registration requirement, procuring entities mayrequest thatafirmregister
intheroster ofsuppliers bekeptbytheNational General Accounting Office which
willinclude allenterprises thatbidorcontract withtheStatewithin fivedaysfollowing
theopening ofbids.277Insome cases, tenderers arerequired toenrol inaprofessional
ortrade register278;
- insome countries, theregistration requirement maybelimited topublic works279or
tospecific sectors280;
- inanother instance, non-registered firms areallowed toparticipate intenders for
non-recurring goods, services orworks where thelocalcontractors areunable tomeet
therequired standards intheexecution ofcontracts281;
- companiesorfirmsseekingregistrationareusuallyrequiredtomakeadeclarationand/or
havetheirbackground, finances andability toprovide asatisfactory service checked
bytheregistration authorities.282
77. Some countries haveprovided reasons fortheoperation ofregistration systems. Creating
areadily available poolofinformation onbona fidefirms reduces thetimeneeded toexamine
qualifications during thetender evaluation andthusfacilitates thequalification process. Another country
hasstated thattheregistration system helps toreduce theriskthatthedesignated supplier willnotbe
275S/WPGR/W/11/Add.1,Add.5,Add.6,Add.8,Add.9,Add.11,Add.12,Add.13,Add.14,Add.15,Add.16,
Add.20; Pakistan-TPR 1995, Egypt-TPR 1991, Uruguay-TPR 1992; APEC Survey -Malaysia andIndonesia
(e.g.theAuthorized Registers ofQualified Bidders inNewZealand, theUnified Registry ofSuppliers ("SICAF")
inBrazil, theGeneral Contractors Registry inChile, theNational Registry ofContractors inVenezuela)
276E.g.,theUnifiedRegisterofSuppliersmaintainedbythechambersofcommer ceinColombia,theDirectorate
General ofSupplies andDisposals andtheNational Small Industries Corporation inIndia, theExpenditure and
ProcurementPoliciesUnit,Pharmaceu ticalDepartmentorConstructionIndustryDevelopmentBoardinSingapore,
theHigherCouncilofPublicWorks(CONSULCOP)inPeru,theGovernmentProcurementDivisionoftheMinistry
ofFinance ofMalaysia
277S/WPGR/W/11/Add.19
278S/WPGR/W/11/Add.10
279E.g.,theNationalRegisterofPublicWorksBuildingContractorsinArgentina,theRegisterofConstruction
Contractors inChile andtheNational Register ofPublic Works inPeru
280TheUnifiedSuppliersRegistryandtheUnifiedContractorsRegistrymaintainedbythePDVSA(thenational
oilcompany ofVenezuela)
281S/WPGR/W/11/Add.14, Add.16
282S/WPGR/W/11/Add.5, Add.12WT/WGTGP/W/6
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abletoimplement thecontract properly. Ithasbeenstated byonecountry thattheregistered suppliers
alsobenefit because theyarenotburdened bytheneedtoprovide thesame information eachtimethey
participate inapublic tender.283
78. Residence requirements seem toberelatively rareasacondition toparticipate intenders. In
some countries, itisrequired thatforeign natural persons without domicile inthecountry orforeign
legalpersons without abranch inthecountry must accredit anagent domiciled inthecountry who
isdulyempowered tosubmit tenders andsigncontracts andalsotorepresent them legally andin
non-legal matters.284Inacountry, inorder toconclude acontract withtheState, afirmmustnormally
beestablished inthecountry, butforeign firms areexempted from thisrequirement inthecaseof
international tenders.285Insome instances, theprocuring authority might require thecontractor to
bewithin acertain distance ofthesiteofcontract performance where there isalegitimate needfor
thecontracting entity tohavethecontractor inclose proximity.286
79. Onecountry maintains "common usearrangements" which arestanding offers withcompanies
tosupply goods andservices based onpre-negotiated terms andconditions andatagreed prices. Issues
suchastradeterms, delivery arrangements, discount schedules andallother contract details areagreed
prior tosuppliers being added tothelists. Common usearrangements cover mostrequirements for
recurring needs across departments andarecontinually monitored toensure thatsuppliers meetthe
required standards. Thesame country hasputinplace an"endorsed supplier arrangement", under
which suppliers ofinformation technology andmajor office machine products under common use
arrangements havetodemonstrate acommitment toworld bestpractice interms ofquality standards
andservice, andlong-term value-adding activities.287
B. Notification andListing
International instruments
80. Thethreeinstruments havespecific requirements ontheprovision ofinformation ondecisions
toqualify tothesuppliers concerned andtothegeneral public. Under theModel Law, theprocuring
entity shallmake available toanymember ofthegeneral public, uponrequest, thenames ofallsuppliers
orcontractors thathavebeenprequalified.288Each supplier submitting anapplication toprequalify
shallbenotified whether ornotithasbeenprequalified.289Under theModel LawandtheGPA, the
procuring entity shall, uponrequest, communicate tosuppliers whose application toqualify wasrejected
orwhose qualification hasbeenbrought toanendthegrounds therefor.290TheGPArequires theentity
concerned toadvise anysupplier having requested tobecome aqualified supplier ofitsdecision in
283S/WPGR/W/11/Add.16
284S/WPGR/W/11/Add.8,Add.9;DominicanRepublic-TPR1996,Bolivia-TPR1993,thePhilippines-TPR1993
285S/WPGR/W/11/Add.19
286S/WPGR/W/11/Add.6
287S/WPGR/W/11/Add.11
288Model LawArticle 7(6)
289Model LawArticle 7(6)
290Model LawArticle 7(7)andGPA, Article XVIII:2(b)WT/WGTGP/W/6
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thisregard.291TheWorld Bank Guidelines require Borrowers toinform allapplicants oftheresults
oftheprequalification.292Entities maintaining listsofqualified suppliers arerequired topublish the
qualification criteria, themethods ofapplication andassessment up-to-date lists.293
81. Under theprocedures ofArticle XoftheGPA onselective tendering, entities maintaining
permanent listsofqualified suppliers arerequired topublish annually inoneofthepublications listed
inAppendix IIIanotice containing thefollowing294:
- theenumeration ofthelistsmaintained, including theirheadings, inrelation tothe
products orservices orcategories ofproducts orservices tobeprocured through the
lists;
- theperiod ofvalidity ofthelists, andtheformalities fortheirrenewal.
Entities arerequired tonotify thequalified suppliers included onpermanent listsofthetermination
ofanysuchlistsoroftheirremoval from them.295
National practices
82. Many procuring entities maintain either permanent oroccasional listsofqualified suppliers296
forprocurement inspecific categories ofproducts, services andpublic works, inparticular inthecase
ofcomplexprojects.297Inpreparingandmaintaininglistsofqualifiedsuppliers,entitiesgenerallyobserve
thefollowing procedures:
- inorder toavoid exclusivity intheprocurement process, ensuring thatnewsuppliers
areprovided withanopportunity tobeadmitted tothelistsofqualified suppliers at
anytimeoratregular intervals298andthatqualification listsareregularly updated by
procuring entities299byevaluating andapproving potential suppliers300;
291GPA, Article VIII:1(f)
292World Bank Guidelines ongoods andworks, paragraph 2.10
293S/WPGR/W/11/Add.2, Add.9
294GPA, Article IX:9(a)-(c)
295GPA, Article VIII(f)
296S/WPGR/W/11/Add.2, Add.4, Add.5, Add.13, Add.14; APEC Survey -Thailand; GPA/12/Rev.1
297S/WPGR/W/11/Add.1,Add.2,Add.6,Add.7,Add.9,Add.11,Add.15(e.g.,intheutilitiessectorinNorway;
construction sector inChile, Korea andNorway; listsofsuppliers ofinformation technology products andmajor
office machines andtelecommunications hardware under theEndorsed Supplier Arrangement inAustralia; lists
ofapproved suppliers oftheGovernment Supplies Department andtheWorks Branch ofHong Kong, China,
"Common UseArrangements" forrecurring needs ofgoods andservices based onpre-negotiated terms and
conditions withsupplier companies inAustralia)
298S/WPGR/W/11/Add.3, Add.4, Add.5, Add.8, Add.14; APEC Survey -Thailand
299S/WPGR/W/11/Add.5
300S/WPGR/W/11/Add.2, Add.3, Add.4, Add.9; APEC Survey -ThailandWT/WGTGP/W/6
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- theregular publication ofup-to-date approved listsofqualified suppliers, theperiod
ofvalidity ofthelists, thequalification criteria, andmethods ofapplication.301
VII. TRANSPARENCY OFDECISIONS ONCONTRACT AWARDS
A. Transparency ofCriteria
International instruments
83. Government procurement regimes andeachofthethree instruments referred tointhisnote
putgreat emphasis ondecisions ontheaward ofthecontracts notonlybeing objective butalsobeing
seentobeobjective. Thisconcern liesattheheartofthenexus linking transparency andaccountability.
Being seentobeobjective indecision-making requires, first, thattheevaluation criteria, including
technical specifications, beobjective innature andpublicly announced inadvance and,second, that
arrangements forthereceipt andopening oftenders aresuchastoensure theirregularity. Transparency
indecision-making further entails theavailability expostofinformation onthedecisions taken.
84. Asstated above under theSection ontender documents, allthreeinstruments provide thattender
documents should contain thecriteria, including anyfactor other thanprice, tobeconsidered bythe
procuringentityindeterminingthesuccessfultenderandforawardingthecontract.Allthreeinstruments
alsoemphasize thatentities should evaluate tenders onlyonthebasis ofthecriteria thathavebeen
previously published.
85. Theprovisions oftheModel Lawonexamination, evaluation andcomparison oftenders require
theprocuring entity toevaluate andcompare thetenders inorder toascertain thesuccessful tender
inaccordance withtheprocedures andcriteria setforthinthetender documents andprohibit theuse
ofanycriterion thathasnotbeensetforthinthetender solicitation documents.302Theprocuring entity
istoapply thesame criteria toalltenders inagiven procurement proceeding.
86. TheGPA alsoexplicitly provides thatawards should bemade inaccordance withthecriteria
andessential requirements specified inthetender documentation.303Unless inthepublic interest an
entity decides nottoissue thecontract, theentity shallmake theaward tothetenderer whohasbeen
determined tobefullycapable ofundertaking thecontract andwhose tender, whether fordomestic
products orservices, orproducts orservices ofother Parties, iseither thelowest tender orthetender
which interms ofthespecific evaluation criteria setforth inthenotices ortender documentation is
determined tobethemost advantageous.304
87. TheWorld Bank Guidelines require thatbidding documents shallspecify therelevant factors,
inaddition toprice, tobeconsidered inbidevaluation andthemanner inwhich theywillbeapplied
forthepurposeofdeterminingthelowestevaluatedbid.305TheBorrowerisrequiredtoprepareadetailed
301S/WPGR/W/11/Add.9, Add.21
302Model LawArticle 34(4)(a), Article 39(1) andArticle 48(3)
303GPA, Article XIII:4(c)
304GPA, Article XIII:4(b)
305World Bank Guidelines ongoods andworks, paragraph 2.51WT/WGTGP/W/6
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report ontheevaluation andcomparison ofbidssetting forth thespecific reasons onwhich the
recommendation fortheaward ofthecontract isbased.306
88. Particular attention isgiven inthethreeinstruments toensuring thetransparency andobjectivity
oftechnical specifications criteria andtheirevaluation. TheGPA andtheModel Lawstipulate that
technical specifications307prescribed byprocuring entities shallnotbeprepared, adopted orapplied
withaviewto,orwiththeeffect of,creating unnecessary obstacles tointernational trade.308TheGPA
andtheWorld Bank Guidelines require thattechnical specifications prescribed byprocuring entities
shallbebased oninternational standards, where suchexist, otherwise, onnational technical regulations,
recognized national standards orother equivalent standards, orbuilding codes.309TheGPA hasan
explicit preference fortheuseofspecifications based onperformance rather thandesign ordescriptive
characteristics. TheModel Lawrequires thatanyspecifications, plans, drawings, designs and
requirements ordescriptions bebased ontherelevant objective technical andquality characteristics
ofthegoods.310Allthree instruments proscribe theuseofbrand names andother references pointing
to,forexample, apatent, specific origin, producer orsupplier.311Moreover, theGPArequires entities
nottoseekoraccept, inamanner which would havetheeffect ofprecluding competition, advice which
maybeusedinthepreparation ofspecifications foraspecific procurement fromafirmthatmayhave
acommercial interest intheprocurement.312
89. TheModel Lawprovides that,asageneral rule,suppliers andcontractors aretobepermitted
toparticipate inprocurement proceedings without regard tonationality andthatforeign suppliers and
contractors should nototherwise besubject todiscrimination. Atthesame time, theModel Law
recognizes thatgovernments maywishinsome cases torestrict procurement fromforeign sources with
thepurpose ofprotecting certain economic sectors oronaccount ofcertain legalobligations. Such
restrictions should onlybeongrounds specified intheprocurement regulations orshould bepursuant
toother provisions oflaw.313Theobjective oftransparency ispromoted byrequiring aprocuring entity
todeclare anylimitations onparticipation onthebasis ofnationality intheinvitations totender and
toinclude intherecord oftheprocurement proceedings astatement ofthegrounds andcircumstances
onwhich aprocurement entity hasrelied forlimitation ofparticipation onthebasis ofnationality.
Inthesecases, theprocuring entity isexempted fromtheobligation togivewideinternational circulation
totheinvitation totender orinvitation toprequalify andtheinvitation notices donotneedtocontain
306World Bank Guidelines ongoods andworks, paragraph 2.53
307Such asquality, performance, safety anddimensions, symbols, terminology, packaging, marking and
labelling, ortheprocedures andmethods fortheirproduction andrequirements relating toconformity assessment
procedures prescribed byprocuring entities
308GPA, Article VI:1; Model LawArticle 16(1)
309World Bank Guidelines ongoods andworks, paragraph 2.19 and2.20
310Model LawArticle 16(2)
311GPA, Article VI:2-3; Model Law Article 16(2); World Bank Guidelines ongoods andworks,
paragraph 2.19 and2.20
312GPA, Article VI:4
313Guide toEnactment ofUNCITRAL Model Law, page 58andModel LawArticle 8(1)WT/WGTGP/W/6
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certain details, forexample onthelanguages inwhich theyareavailable, which arenecessary only
fordocuments ofinternational circulation.314
90. TheModel Lawalsoprovides thatinevaluating andcomparing tenders, aprocuring entity
maygrant amargin ofpreference infavour oflocalgoods, services andsuppliers which permits the
procuring entity toselect theoverall lowest-priced tender ofalocalsupplier when thedifference in
pricebetween thattender andthelowest-priced tender fallswithin therange ofmargin ofpreference.315
Therulesforcalculation ofsuchpreference margins should besetforthintheprocurement regulations.
Moreover, theuseofamargin ofpreference istobepredisclosed inthetender documents andreflected
intherecord oftheprocurement proceedings.316
91. Under the(ICB) International Competitive Bidding procedures, theWorld Bank Guidelines
provide thatamargin ofpreference maybegranted todomestic goods andconstruction firms inthe
evaluation ofbidsattherequest oftheBorrower andunder conditions tobeagreed under theLoan
Agreement.317Themargin ofpreference forgoods manufactured inthecountry oftheBorrower is
equivalent totheamount ofduties andother related import charges or15%ofthebidprice offoreign
goods ifthesaidduties andcharges exceed 15%ofthebidprice. Tobeeligible foramargin of
preference, goods musthaveadomestic content ofatleast30%. Borrowers mayalsogrant amargin
ofpreference of7.5% tobidsforworks fromeligible domestic contractors inWorld Bank Borrower
countries below aspecified threshold ofGNP percapita when comparing withbidsfrom foreign
countries. Thebidding documents shallclearly indicate anypreferences tobegranted, theinformation
required toestablish theeligibility ofabidforsuchpreference, andthemethod thatwillbefollowed
intheevaluation andcomparison ofbids.318
92. Moreover, forprocurement ofgoods andworks, which byitsnature orscope isnotexpected
tobeofinterest toforeign bidders, thecompetitive bidding procedure normally usedforpublic
procurement inthecountry ofBorrower, theNCB, maybepreferred totheICBprocedures asthe
mosteconomic andefficient method ofprocurement. TheNCB procedure isusedwhere thecontract
values aresmall; works arescattered geographically orspread overtime; works arelabour intensive;
orthegoods orworks areavailable locally atprices below theinternational market. Itmayalsobe
usedwhen theadvantages ofICBareclearly outweighed bytheadministrative orfinancial burden
involved. Under theNCB, thecriteria usedintheevaluation ofbidsandtheaward ofthecontracts
shallbemadeknowntoallbiddersandnotbeappliedarbitrarily.Adequateresponsetimeforpreparation
andsubmissionofbidsshallbeprovided.TobeacceptableforuseinWorldBank-financedprocurement,
theBorrower country 'sprocurement procedures shallbereviewed andmodified asnecessary, toensure
economy, efficiency andtransparency andbroad consistency withtheprinciples oftheWorld Bank
Guidelines.319
93. Under theGPAandinrespect ofprocurement covered bytheAgreement, governments Parties
totheAgreement arerequired togivetheproducts, services andsuppliers ofanyother Party tothe
314Model LawArticle 23
315Guide toEnactment ofUNCITRAL Model Law, page 58;Model LawArticle 34(4)(d) and39(2)
316Model LawArticles 27(e), 34(4)(d) and39(2)
317World Bank Guidelines onprocurement ofgoods andconstruction services, paragraph 2.54 and2.55
318World Bank Guidelines ongoods andworks, paragraph 2.54 andAppendix 2,paragraphs 2-5
319World Bank Guidelines forprocurement ofgoods andworks, paragraph 3.3and3.4WT/WGTGP/W/6
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Agreement treatment "nolessfavourable" thanthattheygivetotheirdomestic products, services and
suppliers andnottodiscriminate among thegoods, services andsuppliers ofotherParties (Article III:1).
Furthermore, eachParty isrequired toensure thatitsentities donottreatalocally established supplier
lessfavourably thananother locally established supplier onthebasisofthedegree offoreign affiliation
orownership anddonotdiscriminate against alocally established supplier onthebasisofthecountry
ofproduction ofthegood orservice being supplied (Article III:2). Certain derogations from the
fundamental principles oftheAgreement areprovided forinnational schedules appended tothe
Agreement. Forinstance, forsectors inAnnex 3andforprocurement byAnnex 1-3entities ofservices
listedinAnnexes4and5,theAppendicesofcertainGPAPartiesenablethemtomakenon-discriminatory
treatment ofother GPA Parties dependent onmaterial reciprocity.
94. Inaddition, special anddifferential treatment fordeveloping countries under Article Vofthe
GPA allows foragreed exclusions from therequirement ofnational treatment under theGPA. The
GPA recognizes theneedofdeveloping countries to:safeguard theirbalance-of-payments position
andensure alevelofreserves adequate fortheimplementation ofprogrammes ofeconomic development;
promotetheestablishmentordevelopmentofdomesticindustriesincludingthedevelopmentofsmall-scale
andcottage industries inruralandbackward areas andeconomic development ofother sectors ofthe
economy; andsupport industrial units solongastheyarewholly orsubstantially dependent on
government procurement. Accordingly, adeveloping country acceding totheAgreement maynegotiate
withother Parties mutually acceptable exclusions from therules onnational treatment withrespect
tocertain entities, products orservices thatareincluded initscoverage lists. After itsaccession to
theAgreement, adeveloping country Party maymodify itscoverage listunder thenormal procedures
oftheAgreement orrequest theCommittee togrant exclusions from therules onnational treatment
forcertain entities, products orservices thatareincluded initscoverage lists.320
95. TheGPA prohibits, inthequalification andselection ofsuppliers, products orservices, or
intheevaluation oftenders andaward ofcontracts, Parties from imposing, seeking orconsidering
offsets. These aredefined asmeasures usedtoencourage localdevelopment orimprove thebalance-of-
payments accounts bymeans ofdomestic content, licensing oftechnology, investment requirements,
counter-trade orsimilar requirements.321However, adeveloping country mayatthetimeofitsaccession
negotiate conditions fortheuseofoffset requirements, tobeusedonlyforqualification ofsuppliers
andnotascriteria forawarding contracts. These offsets shallbesetforth inthecountry 'sschedule
totheAgreement. Theexistence ofsuch conditions shall beincluded inthenotice ofintended
procurement andotherdocumentation relating totendering procedures.322OneGPAParty'sAppendix I
totheGPA contains anoteontheuseofoffset requirements.323
National practices
96. Insome countries, thebasic principles andcriteria forselecting tenders areestablished inthe
procurement legislation324;inothers, there arenocentrally prescribed contract award criteria and
320GPA, Article V:2, 4and5
321GPA, Article XVI:1
322GPA, Article XVI:2; Note toGPA Appendix IofIsrael
323Note toIsrael 'sAppendix ItotheGPA
324S/WPGR/W/11/Add.3, Add.8, Add.12, Add.17, Add.19WT/WGTGP/W/6
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agencies determine thecriteria thatareappropriate inthecontext ofindividual procurements.325The
following criteria andprocedures arecommon totheprocess ofevaluation oftenders:
- itisinvariably required thatallevaluation criteria bemade available inadvance to
suppliers inthetender notice orinthetender documents326;thatonlythose criteria
previously announced betaken intoaccount intheevaluation ofbids327;andthat
selection ofthewinning tender bemade inaccordance withtheevaluation criteria
previously announced andrelative importance ofeachcriterion;
- itmayberequired thatthecriteria thatarecommunicated tothepotential suppliers
intheinvitation totender andtender documents cannot bemodified without notifying
allofthepotential bidders through thesame channels usedtotransmit theinvitations
andthetender documents328;
- contracts areawarded, ingeneral, tothetenders which havethelowest price ortothe
tenders determined tobeeconomically themostadvantageous interms ofthespecific
evaluation criteria. Thelatter mayinvolve suchelements asprice, through-life costs
suchasinstallation, maintenance andother overhead costs, quality, aesthetic and
functional aspects, technical specifications, fitness forpurpose, technical merit,
performance ofthegoods andservices tobesupplied, competence, viability, solvency,
scope ofprior investment andexperience ofprospective suppliers, andother
considerations suchasafter-sale service, guarantees, andtechnical assistance toclients,
environmental impact, associated risks, dateofdelivery, etcetera;
- insome cases procuring entities arerequired tostateclearly inthetender documents
theranking oftheaward criteria thattheyintend toapply byorder ofimportance.329
However, theinformation available doesnotspecify howthecriteria areweighted in
theoverall evaluation.
97. Theprocurement practices ofanumber ofcountries provide foraward criteria totakeinto
account considerations suchasthepromotion ofdomestic supplies and/or suppliers. Tothisend,the
criteria mayinclude factors suchaspricepreference margins, offset requirements, set-asides forsmall
andmedium-sized enterprises orforminority business. Some countries havestated thattheprocuring
entity mustgivesuppliers priorinformation attheinvitation totender stageoftheprocedures ifdomestic
preferences oranyother conditions inaprocurement proceeding areapplied.330
98. With respect tothetreatment ofdomestic supplies and/or suppliers, thefollowing practices
havebeenindicated:
325S/WPGR/W/11/Add.4, Add.11
326E.g., insection "m"oftender documents published intheCommerce Bulletin Daily oftheUnited States
327S/WPGR/W/11/Add.11, Add.12, Add.17, Add.18, Add.20
328S/WPGR/W/11/Add.18
329S/WPGR/W/11/Add.10, Add.12, Add.17; APEC Survey -Thailand andMalaysia
330S/WPGR/W/11/Add.12, Add.17WT/WGTGP/W/6
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- some countries havestated thattheyhavenolaws, regulations, procedures orpractices
thataccord domestic goods, services andpublic works and/or suppliers treatment more
favourable thanthataccorded toforeign goods, services andpublic works and/or
suppliers orthatdiscriminate onthebasisofnationality ofsupplier ororigin ofgoods
orservices.331Insome,thenon-discriminationprincipleisprescribedintheprocurement
legislation orgovernment purchasing guidelines332;
- theprocurement legislation inanother country prohibits procurement subject toan
international agreement from suppliers originating incountries notparties tothat
agreement333;
- insome countries, procurement below certain thresholds maybelimited todomestic
suppliers334;
- preferences tobidsfrom domestic supplies/suppliers, which maytakethefollowing
forms:
- preference margins ,which mayvaryaccording tothecategory ofprocurement
(usually between 3%and20%)335, 336;
- preference maybegiven tosuppliers ofgoods andservices ofdomestic origin
inchoosing between otherwise equal bids,insome cases asa"tie-breaker"337;
331S/WPGR/W/11/Add.5, Add.9, Add.12, Add.14, Add.15; Dominican Republic-TPR 1996,
Mauritius-TPR 1995
332S/WPGR/W/11/Add.4, Add.13, Add.15
333TheTrade Agreement Act(TAA) intheUnited States requires thatprocurement ofproducts fromcountries
thatthePresident hasnotexempted from application oftheBuyAmerican Actbeprohibited forFederal goods
contracts thatarecovered bytheGPA. Amendments totheTAA contained intheUruguay Round Agreements
Act1994 permit thePresident towaive thepurchasing prohibition andapply BuyAmerican preferences inits
place forcountries thatarenotsignatories totheGPA butagree toapply equivalent competitive procurement
procedures andeffective anti-corruption measures. Thepurchasing prohibition doesnotapply toservices that
arecovered under theGPA.
334S/WPGR/W/11/Add.12
335Forexample, theBuyAmerican Actof1933 requires thatdomestic end-products beacquired forpublic
use.TheExecutive Order implementing theUnited States BuyAmerican Actof1933 states thatUnited States
Federal agencies, other thantheDepartment ofDefense, maydetermine thatanaward canbemade foraforeign
product ifanoffered price ofadomestic product isdetermined tobeunreasonable, i.e.ifthedomestic price
exceeds theprice ofaforeign product by6%,or12% forsmall businesses. TheDepartment ofDefense uses
a50% factor.
336S/WPGR/W/11/Add.12, Add.17; APEC Surveys -Malaysia andThailand; Czech Republic-TPR 1996,
SriLanka-TPR 1995
337S/WPGR/W/11/Add.3, Add.8, Add.19, Zambia-TPR 1996WT/WGTGP/W/6
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- nogeneral preferences butspecific preferences apply topurchases bycertain
categories ofentities orprocurement categories.338
99. Some procurement legislation requires procuring entities totakeintoaccount intheaward of
contracts theability oftenderers tomeetcertain "offset"requirements. Inthese cases, theinviter of
bidsistodefine suchconditions intheinvitations tobidandintender documents. Some countries
haveindicated thattheydonotemploy suchpolicies.339Where countries do,offset requirements may
havethefollowing features:
- localcontent requirements expressed interms ofapercentage ofhuman resources and
other inputs, technology transfer, counter-trade, R&D, export, training, national sub-
contracting, strategic investment andventure capital investment requirements. Local
content requirements maybeexpressed interms ofpercentage ofthevalue ofdomestic
rawmaterials andproducts usedintheperformance ofaprocurement.340Insome
instances, localcontent requirements arelimited tospecific sectors.341
100. Some procurement regimes provide forother criteria which discriminate ongrounds unrelated
tothequality ofthetender. Such grounds include:
- theapplication ofdomestic sourcing requirements forinputs intotheexploration and
exploitation ofnatural resources;
- thelimitation oftheparticipation intendering forsmall-size contracts intheservice
andconstruction service sectors onthebasisofthelocation ofthesupplier 'sprincipal
office342;
338Forexample, Article 36oftheECUtilities Directive requires asageneral rulethat,where twoormore
tenders areequivalent inthelightoftheaward criteria (they areequivalent iftheprice difference doesnotexceed
3%), preference shallbegiven tothetenders where theproportion oftheproducts originating inthird countries
doesnotexceed 50%ofthetotalvalue oftheproducts constituting thetender. Another caseisthePreferential
Margin Scheme forConstruction Quality maintained bySingapore forlocal contractors withconsistent good
performance. Under thescheme, alocal contractor whohasbeen assessed tobeeligible onthebasis of
performance intherecent pastisgiven apreference point inthecomputation ofprices. Thecontractor isawarded
thecontract ifhistender price does notexceed thelowest tender bythecomputed preferential margin. In
procurement byPETROBRAS (national oilcompany ofBrazil) andinpublic works contracts inCosta Rica,
amargin ofpreference isgiven tolocal suppliers.
339S/WPGR/W/11/Add.1, Add.2, Add.3, Add.4, Add.5, Add.6, Add.9, Add.13, Add.14, Add.15, Add.16,
Add.18, Add.19, Add.21
340S/WPGR/W/11/Add.8, Add.12, Add.17; Venezuela-TPR 1996, Uruguay-TPR 1992, Tunisia-TPR 1994,
Indonesia-TPR 1991, South Africa-TPR 1993; Note toIsrael 'sAppendix ItotheGPA
341E.g., procurement under theUnited States Cargo Preference ActandtheFlyAmerican Actordefence
procurement mayinvolve localcontent requirements. InAustralia thePartnerships forDevelopment Programme
(PfD) under theumbrella oftheCivil Offsets Agreement andtheFixed Term Arrangements (FTA) encourages
international information technology andtelecommunications companies operating inAustralia tomake useof
domestic products, services andskills. Procurement byPETROBRAS (thenational oilcompany ofBrazil) and
public work contracts inUruguay maybesubject tolocal content requirements.
342S/WPGR/W/11/Add.13WT/WGTGP/W/6
Page45
- criteria favouring aregion oftheeconomy inageneral framework ofregional
development forprocurement notcovered byinternational agreements andabove a
certain threshold value343;
- set-aside policies encouraging procurement inlabour surplus areas344;
- preference inselection oftenders tosmall andmedium-sized enterprises .Such
enterprises mayinclude localcooperatives, micro-enterprises, foundations, communal
action associations andingeneral similar entities oftheplace where thecontract is
tobeimplemented.345,346Inoneinstance, small-scale sectors maybegranted aprice
preference upto15%overthelarge-scale sector, subject tothemerits ofeachcase347;
- set-aside programmes forcreating opportunities fortraining andemployment for
businesses runbyminority groups through government contracts348;
- thegranting ofnational treatment toforeign suppliers onthebasis ofreciprocity349,
inparticular, intheservices sector350,351;
- alarge number ofregional arrangements contain provisions ongovernment
procurement.352TheSecretariat hasnotmade asystematic study ofthismatter to
343S/WPGR/W/11/Add.7
344S/WPGR/W/11/Add.6
345S/WPGR/W/11/Add.5, Add.6, Add.7, Add.8, Add.13, Add.17; Cameroon-TPR 1995
346Forexample, theSmall Business ActintheUnited States requires thatawards ofanysizeshall beset
aside forsmall business participation when there isareasonable expectation thatoffers willbeobtained from
atleast twosmall businesses andawards willbemade atfairmarket prices (so-called "Rule ofTwo").
347S/WPGR/W/11/Add.14
348S/WPGR/W/11/Add.6, Add.7; APEC Survey -Malaysia
349S/WPGR/W/11/Add.2, Add.8, Add.18; Indonesia-TPR 1991
350Covered services inAppendix Iofcertain GPA Parties
351E.g., Article 36oftheECUtilities Directive applies totenders comprising products originating inthird
countries withwhich theCommunity hasnotconcluded, multilaterally orbilaterally, anagreement ensuring
comparable andeffective access forCommunity undertakings tothemarkets ofthose third countries.
352Apart from theEuropean Community Directives, oftheregional arrangements onwhich information has
beensuppliedintheresponsestothequestionnaireongovernmentprocurementservices,onlyNAFTAhasdetailed
provisions ontendering procedures including transparency provisions. Other regional agreements which contain
provisions ongovernment procurement with varying degrees ofdetail include theAustralian-New Zealand
Government Procurement Agreement, theEuropean Economic AreaAgreement (laying down specific provisions
andarrangements concerning theapplication ofcertain ECDirectives relating toprocurement), theEurope
Agreements between theEuropean Union andPoland, Hungary, Romania, Bulgaria, theCzech Republic, the
Slovak Republic, Estonia, Latvia, Lithuania andSlovenia, theCentral European FreeTrade Agreement between
Hungary,Poland,theCzech RepublicandtheSlovakRepublic,theCustomsUnionAgreemen tbetweentheCzech
Republic andtheSlovak Republic, theUS-Israel Free Trade Agreement, theACP-EC Convention ofLomé,
(continued...)WT/WGTGP/W/6
Page46
determine towhat extent theyprovide national treatment orpreferences tosupplies
andsuppliers ofother countries intheregion. However, theinformation available
indicates thefollowing preferences intwosucharrangements. TheASEAN PTA(the
Association ofSouth EastAsian Nations Preferential Trading Arrangement) requires
member countries toaccord eachother apreferential margin of2.5%.353Under the
Government Procurement Agreement between Australia andNewZealand, sixStates
orCommonwealth Territories inAustralia apply preference margins of10%or20%
toprocurement ofgoods andrelated services ofAustralian-New Zealand content.354
B. Receipt andOpening ofTenders
International instruments
101. TheGPAprovisionsrequirethatproceduresandconditionsforthereceiptandopeningoftenders
guarantee theregularity oftheopenings andbeconsistent with thenational treatment and
non-discrimination provisions oftheGPA.355
102. TheModel LawandtheWorld Bank Guidelines setforthdetailed conditions which areaimed
atpreventing anynon-transparent action ordecision bytheprocuring entity intheprocess oftheopening
oftenders andatenabling suppliers toobserve thattheentity complies withtheprocurement criteria
andprocedures. Tothisend,these twoinstruments provide, interalia,that:
- bidsshallbeopened atthetimeandplace stipulated inthenotice ofinvitation totender
orinthetender notice356;
- allsuppliers thathavesubmitted tenders ortheirrepresentatives shallbepermitted by
theprocuring entity tobepresent attheopening oftenders357;
- thetechnical proposals, submitted separately fromfinancial proposals, shallbeopened
immediately byacommittee ofofficials drawn fromtherelevant departments (technical,
finance, legal, asappropriate) aftertheclosing timeforthesubmission ofproposals358;
352(...continued)
theEuro-Mediterranean Agreements between theEUandTunisia andbetween theEUandIsrael, Partnership
andCooperation Agreements between theEUandRussia andUkraine, theCooperation Agreement between the
EUandChile, theFreeTrade Agreement between Colombia, Mexico andVenezuela (Group of3Accord), the
FreeTrade Agreements between Mexico andCosta RicaandMexico andBolivia, theFree Trade Agreements
between theEFTA countries andPoland, Hungary andTurkey andthethree Baltic countries.
353S/WPGR/W/11/Add.16; APEC Survey -thePhilippines
354S/WPGR/W/11/Add.11
355GPA, Article XIII:3
356Model LawArticle 33(1); World Bank Guidelines ongoods andworks, paragraph 2.44
357Model Law33(2); World Bank Guidelines ongoods andworks, paragraph 2.44
358World Bank Guidelines onconsultants 'services, paragraph 2.12WT/WGTGP/W/6
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thefinancial proposals shallremain sealed andshallbedeposited withareputable public
auditor orindependent authority untiltheyareopened publicly359;
- thename andaddress ofeachsupplier whose tender isopened andthetender price
orthetotalamount ofeachbidshallbereadaloud tothose persons present atthe
opening oftenders, andcommunicated onrequest tosuppliers thathavesubmitted
tenders butthatarenotpresent orrepresented attheopening oftenders360;
- thename andaddress ofeachsupplier whose tender isopened andthetender price
orthetotalamount ofeachbidshallberecorded immediately intherecord ofthe
tendering proceedings.361
103. Thethree instruments setforth anumber ofother provisions thatsafeguard transparency at
thebidevaluation stage. Theprocuring entity mayaskbidders forclarifications oftheirtenders that
areneeded toevaluate them, butnochanges aretobeasked orpermitted withaview tomaking
unresponsive bidsresponsive except forthecorrection ofarithmetical errors appearing ontender.362
TheGPA requires thatanyopportunity thatmaybegiven totenderers tocorrect unintentional errors
offormbetween theopening oftenders andtheawarding ofthecontract shallnotbepermitted togive
risetoanydiscriminatory practice.363TheWorld Bank Guidelines preclude thealteration ofbidsafter
thedeadline forreceipt ofbids.364
104. Under theGPA, negotiations withentities mayonlytakeplace where prior notice hasbeen
given orwhere noonetender isobviously themostadvantageous interms ofthespecific evaluation
criteria setforth earlier inthenotices ortender documentation.365Tosafeguard transparency inthe
course ofnegotiations, entities shall ensure thatanyelimination ofparticipants iscarried outin
accordance withthecriteria setforth inthenotices andtender documentation; allmodifications to
thecriteria andtothetechnical requirements aretransmitted inwriting toallremaining participants
inthenegotiations; allremaining participants areafforded anopportunity tosubmit neworamended
submissions onthebasis oftherevised requirements; andwhen negotiations areconcluded, all
participants remaining inthenegotiations shallbepermitted tosubmit finaltenders inaccordance with
acommondeadline.366TheModelLawprohibitsnegotiationsbetweentheprocuringentityandasupplier
withrespect toatender submitted bythesupplier.367
105. TheWorld Bank Guidelines require thatinformation relating totheexamination, clarification,
andevaluation ofbidsandrecommendations concerning awards shallnotbedisclosed tobidders or
359World Bank Guidelines onconsultants 'services, paragraph 2.12
360Model LawArticle 33(3); World Bank Guidelines ongoods andworks, paragraph 2.44
361Model LawArticle 33(2); World Bank Guidelines ongoods andworks, paragraph 2.44
362Model LawArticle 34(1)
363GPA, Article XIII:1(b)
364World Bank Guidelines ongoods andworks, paragraph 2.45
365GPA, Article XIV:1
366GPA, Article XIV:4(a)-(d)
367Model LawArticle 35WT/WGTGP/W/6
Page48
other persons notofficially concerned withthebidding process untilthesuccessful bidder isnotified
oftheaward.368
106. Under theprocedures onnegotiations intheModel LawandintheGPA, entities arerequired
totreat information intenders, inparticular anytechnical, price orother market information,
confidentially andnottoprovide information intended toassist particular participants tobring their
tenders uptothelevelofother participants.369
107. UndertheWorldBankGuidelinesonconsultants'services,informationrelatingtotheevaluation
ofproposals andrecommendations concerning awards shallnotbedisclosed totheother consultants
thathavesubmitted theproposals ortoother persons untiltheaward ofthecontract isnotified tothe
successful firm.370
National practices
108. Thecountries onwhich information isavailable follow procedures thataresetforth inthe
generally applicable procurement laws371orestablished byindividual procuring agencies fortheirown
use.372
109. Most countries require thattenders bereceived andopened atthedate, timeandplace that
werepreviouslyannouncedandspecifiedandpublishedintheinvitationtotenderortenderdocuments.373
110. Practices regarding procedures forsubmission andreceipt oftenders include thefollowing,
depending onthecountry:
- tenders must besubmitted insealed envelopes374withanidentification ofthetender
andtheopening date. Submitted tenders aretoberegistered withthedateofarrival
andpersons delivering tenders provided withreceipts375;
368World Bank Guidelines ongoods andservices, paragraph 2.46
369Model LawArticle 49(3) andGPA, Article XIV:3
370World Bank Guidelines onconsultants 'services, paragraph 2.28
371S/WPGR/W/11/Add.10
372S/WPGR/W/11/Add.4, Add.8, Add.11
373S/WPGR/W/11/Add.5, Add.10, Add.12, Add.16, Add.19
374S/WPGR/W/11/Add.1, Add.5, Add.10, Add.11, Add.14, Add.19, Add.20
375S/WPGR/W/11/Add.8, Add.10WT/WGTGP/W/6
Page49
- tenders mayalsobedeposited inatender boxoranurnthatistobesituated inthe
place specified inthetender documents.376Tenders sentbyregistered mail377areto
bedeposited promptly bytheprocuring entity intothecorrect tender box378;
- tenders mustbekeptstored securely bytheresponsible department ortheprocuring
entity untilthedesignated bidopening timeisreached.379Purchasing entities arenot
permitted tocanvass offers aftertheclosing datefromsuppliers whohavenotsubmitted
bids.380
111. Inregard toprocedures fortheopening oftenders ,practices include, depending onthecountry:
- alltenders aretobeopened ontheduedate,preferably immediately afterthestipulated
closing dateforsubmission oftenders, inthespecified place andsimultaneously.381
Tenders submitted laterthanthestipulated datearenottobeconsidered382andareto
bereturned tothetenderer383;
- tenders aretobeopened byatender opening committee tobedesignated bythetender
body, formally composed ofatleasttworepresentatives oftheprocuring entity384,for
example anofficer serving inapurchasing unitoranindependent member from a
non-purchasingbranch.385Somecountries'proceduresrequirethattendernoticesshould
specify thepersons whoaretobepresent atthetender opening386;
- inmostcountries bidders ortheirproxies areentitled tobepresent atbidopenings387
andinsome others theaward isannounced inapublic meeting andanyperson wishing
toattend maybepresent attheopening oftenders.388Insome countries, ifbidders
arenotallowed tobepresent, theopening hastobewitnessed byatleastthreemembers
376S/WPGR/W/11/Add.8, Add.9, Add.10, Add.16; APEC Survey -Malaysia
377S/WPGR/W/11/Add.10
378S/WPGR/W/11/Add.16
379S/WPGR/W/11/Add.10, Add.11
380S/WPGR/W/11/Add.10
381S/WPGR/W/11/Add.10, Add.16
382S/WPGR/W/11/Add.10, Add.11, Add.16
383S/WPGR/W/11/Add.16
384S/WPGR/W/11/Add.2, Add.4, Add.9, Add.10, Add.16, Add.19; APEC Survey -Chile
385S/WPGR/W/11/Add.10
386S/WPGR/W/11/Add.1, Add.10
387S/WPGR/W/11/Add.5, Add.10, Add.12, Add.13, Add.17, Add.18; WT/WGTGP/W/5
388S/WPGR/W/11/Add.14, Add.19, Add.20; SriLanka-TPR 1995WT/WGTGP/W/6
Page50
ofthestaffoftheprocuring entity389whoarenotinvolved inthetendering procedure.390
Onecountry hasindicated thattheprocuring entities maydecide nottohaveapublic
opening buttocommunicate theaward toeachofthebidders391;
- tender opening procedures mayvaryaccording tothecategory ofprocurement and
theprocurement method chosen.392Forexample, onlytenders under openprocedures393
ortenders above acertain threshold value maybepublicly opened, orbidders may
beallowed tobepresent attheopening oftenders onlyintheareaofpublic works.394
112. Practices applied attheopening oftenders include, depending onthecountry:
- atender protocol istobesetupattheopening395;
- thename ofthebidder, theprice, when thelowest price istheaward criterion, and
other conditions metbythebidder areannounced immediately.396Onecountry has
indicated thatdisqualified bidsarereturned totheinterested parties inclosed
envelopes397;
- opened tenders must beregistered sothatanadditional tender cannot beadded
subsequently without explanation.398Tenders should bestamped withthedateand
thetimeofopening andthestamp must beinitialled bythepersons responsible for
opening tenders399orbyofficial witnesses400;
- announced awards aretoberecorded immediately intheofficial record ofthetendering
proceedings401;
389S/WPGR/W/11/Add.10
390S/WPGR/W/11/Add.5, Add.13
391S/WPGR/W/11/Add.18
392S/WPGR/W/11/Add.1; ,Morocco-TPR 1996
393S/WPGR/W/11/Add.10
394S/WPGR/W/11/Add.10
395S/WPGR/W/11/Add.1, Add.19
396S/WPGR/W/11/Add.10, Add.12, Add.17; Morocco-TPR 1996
397S/WPGR/W/11/Add.3
398S/WPGR/W/11/Add.4
399S/WPGR/W/11/Add.4
400S/WPGR/W/11/Add.3
401S/WPGR/W/11/Add.8, Add.9, Add.12WT/WGTGP/W/6
Page51
- insome cases, minutes oftheofficial record oftheopening proceedings areprepared
andsigned bythemembers ofthecommission andbytenderers whoarepresent.402
Onecountry hasindicated thattheopening procedure hastoberecorded onlyinthe
caseofprocurement ofconstruction services.403Therecord mayinclude thenames
ofthepersons thathaveattended theopening process, names oftenderers, dates of
submission ofoffers, process offered, variety ofoffers. Onecountry hasindicated
thattheminimum information content oftheminutes isspecified initsprocurement
legislation.404Some countries havestated thatalltenderers whohaveparticipated in
thetender havetherighttoexamine therecords.405
113. Moreover, insome countries, where astratified tendering procedure isemployed, tenders are
receivedintwosealedenvelopes.406Thefirstenvelopecontainsthedocumentationbywhichitispossible
toidentify andconfirm theexistence andparticipation ofthebidder andadescription oftherequired
technical specifications oftheproduct orservice inquestion. Thesecond envelope contains thefinancial
bidfortheproduct orservice together withthebidsecurity document. During thefirstphase, known
asthe"technical phase", allofthebidsareopened inthepresence oftheparticipants, andtheircontents
verified. Only theaspects ofbidspertaining totherequired technical specifications oftheproduct
orservice inquestion areexamined andonlythose which meet thetechnical requirements setforth
inthebidding conditions arequalified fortheirsecond orfinancial phase, where thefinaldecision
ismade.407Another country haselaborated that,innegotiated procurements, prices arekeptconfidential
untilanaward ismade. Thereason fordoing sorelates totheproprietary nature ofthepricing
information. Anadditional concern isthattheknowledge ofprices could leadtoasituation inwhich
theincumbent contractor hasanunfair advantage overitscompetitors which could affect theintegrity
oftheprocurement system.408
C. ExPostInformation onContract Awards
International instruments
114. Thethree instruments laydown provisions requiring procuring entities toinform thepublic
and,inparticular,thesuppliersthathaveparticipatedintheprocurementprocessoftheirawarddecisions.
TheModel LawandtheGPA require entities topublish anotice award after theaward ofeach
contract.409Thepublications inwhich individual GPA Parties publish suchnotices areidentified in
Appendix IItotheGPA. TheGPA setsforth indetail thetypeofinformation thatsuchnotices, to
402S/WPGR/W/11/Add.3, Add.12; APEC Survey -Chile
403S/WPGR/W/11/Add.2
404S/WPGR/W/11/Add.12
405S/WPGR/W/11/Add.2, Add.4
406S/WPGR/W/11/Add.18
407Czech Republic-TPR 1996, Brazil-TPR 1996
408S/WPGR/W/11/Add.6
409Model LawArticle 14(1) and(2);GPA, Article XVIII:1WT/WGTGP/W/6
Page52
bepublished within aspecified time-limit after theaward ofeachcontract, must contain. Such
information shallrelate to410:
- thenature andquantity ofproducts orservices inthecontract award;
- thename andaddress oftheentity awarding thecontract;
- thedateofaward ofthecontract;
- thename andaddress ofthewinning tenderer;
- thevalue ofthewinning award orthehighest andlowest offertaken intoaccount in
theaward ofthecontract;
- where appropriate, themeans ofidentifying thenotice ofinvitation totender or
justification fortheuseofalimited tendering procedure; and
- thetypeofprocedure (open, selective orlimited) used.
115. Inaddition tothepublication ofanotice ofcontract award, theGPAgoesontorequire entities
topromptly inform directly those suppliers thathaveparticipated inatender ofthedecision onthe
contract award, inwriting ifrequested.411Under theModel Law, theprocuring entity isrequired to
giveanotice toother suppliers afterithasentered intoacontract withasupplier, specifying thename
andaddress ofthesupplier andthecontract price.412
116. TheGPA confers onunsuccessful tenderers therighttoobtain thenecessary information on
thecontract award. Accordingly, eachentity mustrespond promptly torequests forfurther information
fromasupplier ofaGPAParty regarding itsprocurement practices andprocedures. Inorder tofoster
transparency andaccountability ofthedecisions oftheprocuring entity, theModel LawandtheGPA
allow anunsuccessful tenderer toseekandobtain pertinent information concerning thereasons why
itstender wasnotselected. TheGPAalsorequires theprovision ofinformation onthecharacteristics
andrelative advantages ofthetender selected aswellasthename ofthewinning tenderer. Under
theModel Law, however, theprocuring entity isnotrequired tojustify thegrounds foritsrejection
oftenders.413
117. Asregards thetreatment ofconfidential information oncontract awards, theGPA foresees
thatentities maydecide towithhold certain information oncontract awards where release ofsuch
information mayimpede lawenforcement orotherwise becontrary topublic interest orwould prejudice
thelegitimate commercial interests ofparticular enterprises ormight prejudice faircompetition between
suppliers.414
410GPA, Article XVIII:1(a)-(g)
411GPA, Article XVIII:3
412Model LawArticle 36(6)
413Model LawArticle 12(1) andGPA, Article XVIII:2
414GPA, Article XVIII:4WT/WGTGP/W/6
Page53
118. Theprovisions oftheModel Lawbartheprocuring entity fromdisclosing certain information,
including thatrelating totheexamination, evaluation andcomparison oftenders soastosafeguard
thepublic interest orthecommercial interest ofparties involved intheproceedings.415
National practices
119. Inmostcountries forwhich information isavailable, entities arerequired toannounce publicly
theresults ofthecontract award monthly orwithin atime-period which varies fromthreedaystothree
months.416
120. National practices regarding public notice ofcontract awards include, depending onthecountry:
- frequently, contract award notices arepublished inthesame media asthose inwhich
invitations totender hadbeenpublished417;
- national procurement legislation sometimes provides that,inaddition topublication
ofthecontract award notice intheofficial journal, forthepurposes ofsocial control
andpublicparticipation,entitieshavetopublicize,insimplelayman'sterms,allrelevant
information relating tocontract awards onceamonth inavisible andpublicly accessible
place within thepremises oftheentity concerned.418Inonecase,intheareaofpublic
works contracts, information oncontract awards mayalsobeavailable fromthecontact
points ofprocurement agencies419;
- insome countries, there arenocentral requirements topublish thedetails ofthe
contracts awarded420orcontract awards arepublished onavoluntary basis bythe
procuring entities421;
- insome countries, onlyawards ofcontracts above acertain threshold value are
published.422
415Model LawArticle 45andArticle 34(8)
416S/WPGR/W/11/Add.1, Add.2, Add.3, Add.6, Add.8, Add.9, Add.10, Add.17, Add.18
417E.g., Contract Award Notice (CAN) intheOfficial Journal oftheEuropean Communities andintheTED
database; theCommerce Business Daily intheUnited States; theKanpo ¯oritsequivalents atthelocal level
inJapan; theHong Kong, China Government Gazette; theUnified Journal ofGovernment Procurement which
isanAppendix totheOfficial Journal inColombia; theOfficial Journal oftheFederation inMexico; the
Purchasing andDisposals Gazette inAustralia; theBulletin ofPublic Procurement inPoland; theSwiss Official
Gazette; theOfficial Journal inPeru
418S/WPGR/W/11/Add.8, Add.19, Add.20; APEC Survey -Indonesia
419S/WPGR/W/11/Add.5
420S/WPGR/W/11/Add.4, Add.14
421APEC Survey -Thailand
422S/WPGR/W/11/Add.11WT/WGTGP/W/6
Page54
121. Thetypes ofinformation thatareincluded inthepublic notices ofcontract awards include:
- thedetails oftheawarding authority;
- theidentity anddetails oftheenterprise ornatural person towhom thecontract was
awarded;
- theprocurement procedure used;
- theamount, thecharacteristics andclassification oftheproduct orservice tobe
procured;
- thenumber oftenders received andtheform oftheaward procedure chosen;
- theprice ortherange ofprices tobepaidorthehighest orlowest offer taken into
account;
- thecriteria applied;
- references totherelated tender notice.423
Onecountry hasindicated thatitsprocurement lawprovides aspecimen forpublication ofawards of
contracts.424
122. Inaddition tonotifying thesuccessful tenderer, theprocuring entity mayberequired toinform
allunsuccessful tenderers oftheresult ofthecontract award.425Inregard toinformation made available
tounsuccessful tenderers, thecountry information available indicates thefollowing national practices,
depending onthecountry:
- procuring entities notify suchtenderers oftheircontract award decisions inwriting426,
withanexplanation ofthereasons whytheirbidswere notselected andidentifying
thecharacteristics andrelative advantages ofthetender selected427;
- unsuccessful tenderers arenotified through astandard regret card428;
- insomecountrieswithderegulatedprocurementregimes,communicationtounsuccessful
tenderers ofthereasons fornotbeing selected attherequest ofthetenderer is
encouraged under thegovernment 'spurchasing guidelines429;
423S/WPGR/W/11/Add.2, Add.5, Add.8, Add.9, Add.11, Add.17, Add.18; WT/WGTGP/W/5
424S/WPGR/W/11/Add.17
425S/WPGR/W/11/Add.9
426S/WPGR/W/11/Add.5; Mexico-TPR 1997
427S/WPGR/W/11/Add.1, Add.2, Add.3, Add.8, Add.9, Add.10, Add.12, Add.13, Add.17, Add.18
428S/WPGR/W/11/Add.14
429S/WPGR/W/11/Add.4, Add.15WT/WGTGP/W/6
Page55
- onecountry hasindicated that,while therearenolegalobligations, tenderers mayobtain
information onthesuccessful tender through laws onthefreedom ofaccess to
information orthrough recourse totherightofpetition430;another country hasindicated
that,while there isnolegal requirement, inpractice itiscustomary toprovide the
reasons forrejecting bids431;
- insome countries, entities arenotrequired toprovide eachtenderer individually with
thepertinent reasons forrejection ofitsbid432;
- insome other countries, thereasons fortherejection ofthebidareprovided inresponse
toawritten request byanunsuccessful supplier433;
- insome countries, allsuppliers whohavemade abidareentitled toadebriefing so
astogivetheunsuccessful tenderers theopportunity todiscover whattheyweredoing
wrong andtoassist them toenhance theirperformance infuture bids.434Typically
thedebriefing covers anexplanation ofhowsuppliers performed against theevaluation
criteria435,thesignificantweaknessesordeficienciesinthetenders;theoverallevaluated
costorprice andtechnical rating ofthesuccessful tender andthedebriefed tender;
asummary oftherationale foraward; andwhether tender selection procedures
contained inthetender documents, applicable regulations, andother applicable
authorities were followed436;
- tenderers areadvised ontherelative strengths andweaknesses oftheirownproposals
without apoint-by-point comparison ofthedebriefed supplier 'stenders withthose of
other suppliers 'tenders.437
123. Asregards confidentiality ofinformation onthecontract awarded, some countries havestated
thataprocuring entity maydecide thatcertain information onthecontract award bewithheld where
divulgence ofsuchinformation would prejudice thelegitimate commercial interests ofthewinning
firmorwould becontrary tothepublic interest.438
430S/WPGR/W/11/Add.12
431S/WPGR/W/11/Add.8
432S/WPGR/W/11/Add.3, Add.4, Add.5, Add.7, Add.12, Add.13, Add.16
433S/WPGR/W/11/Add.5, Add.20, Add.21; WT/WGTGP/W/5
434S/WPGR/W/11/Add.11; WT/WGTGP/W/5
435S/WPGR/W/11/Add.11
436S/WPGR/W/11/Add.6; WT/WGTGP/W/5
437S/WPGR/W/11/Add.4, Add.6
438S/WPGR/W/11/Add.4, Add.6, Add.10; WT/WGTGP/W/5WT/WGTGP/W/6
Page56
VIII. REVIEW
International instruments
124. Review procedures areoften considered akeycomponent oftransparency andaccountability
ofgovernment procurement practices. TherulessetoutintheModel LawandtheGPAestablish the
basicfeatures thatnational review mechanisms musthavewithout going intogreatdetail. Thepurpose
ofthese provisions istogivesuppliers believing thatanentity hasbreached national lawor,inthe
caseoftheGPA, therules oftheGPA itself, arightofreview.439
125. Under theModel LawandtheGPA, asaninitial step,complainants areencouraged toseek
resolution oftheircomplaints through consultations withtheprocuring entity itself prior torecourse
toanadministrative review body.440Under theModel Law, unless thecomplaint isresolved bymutual
agreement, theprocuring entity shall, within prescribed time-limits, issueawritten decision including
astatement onthereasons forthedecision andindicating anycorrective measures thataretobetaken.441
126. Ifthematter isnotsettled atthisstage, thecomplainant isentitled, under theModel Law, to
seekanadministrative review.442Thefunctions ofanadministrative review maybevested inanexisting
appropriate administrative body orabody whose competence isexclusively toresolve disputes in
procurement matters andwhich isindependent oftheprocuring entity. Thedecisions ofthereview
bodies orfailure tomake adecision within prescribed time-limits shallbesubject tojudicial review.443
TheModel Lawalsolaysdown certain procedures toensure theopenness andfairness ofreview
procedures.444
127. Under theGPA, Parties mayconfer theauthority tohearchallenges bysuppliers onnational
courts oronanimpartial andindependent review body ofanadministrative nature. Intheevent that
abidchallenge isheard byareview body which doesnothavethestatus ofacourt oflaw,either its
decisions must besubject tojudicial review oritmust follow thecriteria laiddown indetail in
Article XX:6(a)-(g). These minimum standards aremainly designed toensure theopenness, fairness
andequity oftheproceedings.445
128. TheWorld Bank Guidelines allow abidder oraconsultant whowishes toascertain thegrounds
onwhich itsbidorproposal wasnotselected, afternotification ofaward, toaddress arequest for
explanation totheBorrower country oragency. Ifthebidder orconsultant isnotsatisfied withthe
explanation given, itmayseekdebriefing withtheWorld Bank.446
439Model LawArticle 52;GPA, Article XX:1
440GPA, Article XX:1
441Model LawArticle 53
442Model LawArticles 54and55
443Model LawArticle 57
444Model LawArticle 55
445GPA, Article XX:6(a)-(g)
446World Bank Guidelines ongoods andworks, Appendix 4,paragraph 15andonconsultants 'services,
Appendix 4,paragraph 15WT/WGTGP/W/6
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129. Under theGPA, areview body must havetheauthority toorder thecorrection ofabreach
oftheAgreement orcompensation forthelossordamages suffered byasupplier, butthismaybe
limited tocosts fortender preparation orprotest. Pending theoutcome ofthechallenge, thereview
bodymustbeabletoorder rapidinterim measures, including thesuspension oftheprocurement process,
tocorrect breaches oftheGPA andtopreserve commercial opportunities.447However, procedures
mayprovide thatoverriding adverse consequences fortheinterests concerned, including thepublic
interest, maybetaken intoaccount indeciding whether suchmeasures should beapplied. Theprovisions
oftheModel Lawalsoprovide forthesuspension ofprocurement proceedings which takes account
oftheneedoftheprocuring entity toconclude acontract inaneconomic andefficient waywithout
undue disruption anddelay intheprocurement process.448
National practices
130. Many countries haveprocedures which allow aggrieved suppliers tolodge complaints against
anyalleged breaches oftheapplicable rulesandtoseekreview oftheprocurement proceedings ofan
entity, including award decisions. Theprocedures forreview ofcomplaints andremedies available
tosuccessful complainants aresometimes provided explicitly inprocurement legislation449and,inother
cases, mayresult from more general possibilities toappeal administrative decisions.
131. Theconditions ofrecourse toreview maycomprise thefollowing:
- complaints mayberaised onthegrounds thattheapplicable procurement lawsand
regulations havebeenviolated.450Insome cases, where acountry isaparty toan
international agreement, analleged breach oftherules oftheagreement itself may
constitute grounds forrecourse toareview451;
- inmostcases, procedures areavailable toanyperson whohasorhashadaninterest
inobtaining aparticular contract orwhohasbeenorrisksbeing harmed byanalleged
infringement.
132. Principal features ofcomplaint-based procedures generally comprise thefollowing:
- provisions encouraging suppliers, inthefirstinstance, totakeupthematter directly
withtheprocuring entity foranearly resolution.452Forthispurpose, agencies may
haveprocedures inplace forhandling complaints directly;
- insome cases, provisions enabling suppliers toseekthemediation orgood offices of
anindependent authority;
447GPA, Article XX:7(a)-(c)
448Model LawArticle 56
449S/WPGR/W/11/Add.1, Add.3, Add.19
450S/WPGR/W/11/Add.3, Add.17, Add.20
451E.g., GPA, NAFTA andtheGovernment Procurement Agreement between Australia andNew Zealand
452S/WPGR/W/11/Add.3, Add.4, Add.6, Add.9, Add.11, Add.12, Add.20, Add.21; WT/WGTGP/W/5;
APEC Survey -PhilippinesWT/WGTGP/W/6
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- provisions enabling suppliers tobring anaction against theprocuring entity before
anindependent body oracourt.
133. Mostcountrieshavedesignatedadministrativeorjudicialauthoritiestohandleprocurement-related
challenges. Thenature ofthereview authorities varies and,when review bodies arenotjudicial in
character, theirdecisions areoften subject tojudicial review.453Thereview maybehandled bythe
following types ofbodies:
- aspecialized body established toreview challenges intheareaofgovernment
procurement454;
- anadministrative authority withabroader mandate455;
- courts oflaw.456
134. Apart fromcomplaint-based procedures, thefollowing mechanisms areusedinsome instances
formonitoring theprocurement process:
- theinternal audits ofprocuring authorities.457Inthose countries where procurement
procedures aredecentralized, eachentity hasitsownprocedures which mayvaryfrom
oneentity toanother458;
- external control oraudits byanadministrative bodyincharge ofoverseeing theproper
conduct ofprocurement proceedings459;
453S/WPGR/W/11/Add.10, Add.12, Add.13, Add.15, Add.17, Add.18, Add.20
454OGPR (theOffice ofGovernment Procurement Review) andtheGovernment Procurement Review Board
under theOGPR inJapan, apanel ofarbiters selected bytheOffice ofPublic Procurement inPoland, an
independent committee ofpublic procurement commissioners under thePublic Procurement Council inHungary,
theHigher Tribunal ofPublic Works Tenders andContracts (CONSULCOP) inPeru, theInternational Trade
Tribunal inCanada, theInternational Contract Dispute Mediation Committee intheMinistry ofFinance and
Economy inKorea andtheGeneral Accounting Office (GAO), theAgency Board ofContract Appeals andthe
Federal Court ofClaims intheUnited States
455TheMinistry ofCommerce inNewZealand, theMinistry ofFinance inSingapore andtheECCommission,
theCommonwealth Ombudsman orState/Territory Ombudsman inAustralia, theOmbudsman andtheController
andAuditor General inNewZealand, theOffice oftheComptroller General inChile, andtheAccounts Tribunal
orOrgansoftheSystemofInternalControlinBrazil,theMinistryofComptrollerandAdministrativeDevelopment
(SEDOCAM) inMexico, Independent Commissioner Against Corruption inHong Kong, China, theFederal
CommissionforAppealinSwitzerland,theGeneralDirectorateforComplaintsinMexico,theOmbudsmanunder
theOffice oftheCommissioner forAdministrative Complaints (COMAC), theComptroller General 'sOffice
inCosta Rica
456S/WPGR/W/11/Add.1, Add.2, Add.8, Add.10, Add.14, Add.15
457S/WPGR/W/11/Add.4, Add.15, Add.18, Add.19
458S/WPGR/W/11/Add.15
459E.g., theMinistry ofCommerce, Audit Office andSerious Fraud Office inNew Zealand, theMinistry
ofConstruction andPublic Works intheSlovak RepublicWT/WGTGP/W/6
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- inonegroup ofcountries intheutilities sector, contract award procedures andpractices
areperiodically examined byindependent bodies forthepurpose ofattesting totheir
compliance withapplicable rules460;
- oversight bythelegislative authorities insome countries.461
135. Theremediesavailabletosuccessfulcomplainantsdifferfromcountrytocountryandmayinclude
thefollowing:
- interim measures, including thesuspension oftheprocurement procedures andofthe
implementation ofanydecision oftheprocuring authority taken unlawfully inorder
topreserve therights ofsuppliers.462Insome cases, thereview authority isempowered
tosuspend aprocurement before acontract isawarded butnottorevoke acontract
award.463Insome cases, forinstance intheutilities sector, procurement procedures
cannot bestopped464although theentity infringing therules maybeasked topay
damages tothesupplier wronged unlawfully.465National lawssometimes provide for
thepublic interest tobetaken intoaccount indeciding whether tosuspend orcancel
aprocurement decision;
- cancelling ofprocurement procedures orsetting-aside decisions andawards466;
- recommendations toentities tobring theirprocurement proceedings anddecisions in
linewiththerules inforce467;
- theaggrieved supplier maybeawarded damages.468Sometimes these arelimited to
thefinancial costs oftendering.469
460S/WPGR/W/11/Add.10
461New Zealand Parliament 'sSelect Committee public hearing, theChamber ofDeputies inChile
462S/WPGR/W/11/Add.1, Add.2, Add.3, Add.6, Add.13, Add.17
463S/WPGR/W/11/Add.2, Add.8, Add.19
464S/WPGR/W/11/Add.1, Add.20
465S/WPGR/W/11/Add.1
466S/WPGR/W/11/Add.1, Add.3, Add.10, Add.12, Add.18
467InAustralia, while compliance byanentity witharecommendation ofthereview authority foraremedy
isnotmandatory, thereview authority mayreport tothePrime Minister andthentotheParliament iftheentity
does notactupon arecommendation adequately.
468S/WPGR/W/11/Add.1, Add.11
469S/WPGR/W/11/Add.2WT/WGTGP/W/6
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IX. OTHER MATTERS RELATED TOTRANSPARENCY
A. Maintenance ofRecord ofProceedings
International instruments
136. TheModel Lawestablishes anexplicit requirement forthemaintenance ofarecord ofthekey
decisions andactions taken bytheprocuring entity during thecourse oftheprocurement proceedings.
Asisexplained intheGuide totheEnactment oftheModel Law, themaintenance ofarecord isone
oftheprincipal mechanisms forensuring adherence totherulesandalsofacilitates theexercise ofthe
rightofaggrieved suppliers toseekreview.470
137. Under theModel Law, therecord ofproceedings should contain, ataminimum, thefollowing
keyinformation regarding theprocurement ,theprocuring entity andsuppliers andevaluation of
tenders471:
- abrief description ofthegoods, construction orservices tobeprocured, orofthe
procurement needforwhich theprocuring entity requested proposals oroffers;
- thenames andaddresses ofsuppliers thatsubmitted tenders, proposals, offers or
quotations, andthename andaddress ofthesupplier orcontractor withwhom the
procurement contract isentered intoandthecontract price;
- information relative tothequalifications, orlackthereof, ofsuppliers thatsubmitted
tenders, proposals, offers orquotations;
- theprice, orthebasisfordetermining theprice, andasummary oftheother principal
terms andconditions ofeachtender, proposal, offerorquotation andoftheprocurement
contract, where these areknown totheprocuring entity;
- asummary oftheevaluation andcomparison oftenders, proposals, offers orquotations,
including theapplication ofanymargin ofpreference;
- anyinformation onrejection oftenders, proposals, offers orquotations under the
relevantprovisionsoftheModelLawincludingastatementtothateffectandthegrounds
therefor;
- astatement ofthegrounds andcircumstances onwhich theprocuring entity relied to
justify theselection ofthemethod ofprocurement used;
- inprocurement proceedings inwhich theprocuring entity limits participation onthe
basis ofnationality, astatement ofthegrounds andcircumstances relied upon bythe
procuring entity forimposing thelimitation;
470UNCITRAL Model LawonProcurement ofGoods, Construction andServices withGuide toEnactment,
pages 61and71
471Model LawArticle 11(a)-(m)WT/WGTGP/W/6
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- asummary ofanyrequests forclarification oftheprequalification orsolicitation
documents, theresponses thereto, aswellasasummary ofanymodification ofthose
documents.
138. TheGPA stipulates thatinformation ontheopening oftenders shallremain withtheentity
concerned atthedisposal ofthegovernment authorities responsible fortheentity inorder thatitmay
beusedifrequired under theprocedures relating totheprovision ofinformation byentities (GPA,
Article XVIII), between governments (GPA, Article XIX) andunder theprocedures forbidchallenge
(GPA, Article XX)anddispute settlement (GPA, Article XXII).472
139. Moreover, given themore restrictive nature oflimited tendering procedures under theGPA,
entities using thismethod inagiven procurement arerequired toprepare areport inwriting oneach
contract awarded using thelimited tendering method, rather thanopenandselective tendering. Each
report shallcontain thename oftheprocuring entity, thevalue andkindofgoods orservices procured,
country oforigin, andastatement oftheconditions forusing limited tendering asstated inArticle XV:1
which prevailed. Thisreport shallremain withtheentities concerned atthedisposal ofthegovernment
authorities responsible fortheentity inorder thatitmaybeusedifrequired under theprocedures for
information andreview asregards theobligations ofentities andParties (GPA, Articles XVIII and
XIX) andbidchallenge anddispute settlement (GPA, Articles XXandXXII).
National practices
140. Theinformation available onnational practices islimited. Onecountry hasstated thatprocuring
entities arerequired toprepare andkeeprecords ofcertain information related toeachprocurement.473
Inanother case, thecontracting authorities arerequired todraw upawritten report foreachcontract
awarded, which isusedeither formonitoring purposes orinthecaseofcomplaints bysuppliers.474
B. Information Technology
International instruments
141. Information technology canplay, andinsome countries isalready playing, amajor rolein
enhancing transparency. With aview toensuring thattheprovisions oftheGPA donotconstitute
anunnecessary barrier totechnical progress, Article XXIV:8 oftheGPA foresees consultations and,
ifnecessary, thenegotiation ofmodifications totheAgreement inview ofdevelopments intheuse
ofinformation technology ingovernment procurement. Theconsultations intheCommittee shall, in
particular, aimtoensure thattheuseofinformation technology promotes theaims ofopen,
non-discriminatory andefficient government procurement through transparent procedures, thatcontracts
covered under theAgreement areclearly identified andthatallavailable information relating toa
particular contract canbeidentified. Therelevant provision oftheGPA further states that,when a
Party intends toinnovate, itshallendeavour totakeintoaccount theviews expressed byother Parties
regarding anypotential problems. Inthecontext ofthethree-year review oftheAgreement under
Article XXIV:7(b), theCommittee onGovernment Procurement hasinitiated work onpossible
472GPA, Article XIII:3
473GPA/10
474WT/WGTGP/W/5WT/WGTGP/W/6
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amendments totherelevant provisions oftheGPA toreflect recent developments ininformation
technology.475
National practices
142. Countries 'useofelectronic means forpublicizing procurement opportunities isnotuniform.
While some havemade asubstantial investment inthedevelopment ofinformation technology systems,
some others haveonlytaken preliminary, experimental steps inthisdirection. Some countries have
stated thattheirlegislation doesnotexplicitly provide fortheuseofelectronic means toparticipate
intendering procedures.476Insome cases, electronic databases maybeprovided voluntarily bythe
purchasing agencies.477Some countries havepilotprojects forestablishing electronic systems focusing
bothontheprocessing oftenders andonconducting actual procurements.478
143. Information available ontheuseofinformation technology ingovernment procurement mainly
concerns electronic databases479which giveinformation ontendering opportunities inthefollowing
way:
- tender notices areposted through on-line information anddatabase retrieval services
ontheInternet.480Some agencies have"home pages" ontheInternet forspecified types
ofprocurement contracts481;
475GPA/8
476S/WPGR/W/11/Add.18, Add.19
477S/WPGR/W/11/Add.4, Add.16, Add.19
478TheUnited States Government isplanning todevelop aFACNET (Federal Acquisition Computer Network
Architecture) thatwould begovernment-wide andwould provide interoperability among users. FACNET would
beintroduced gradually, withtheinitial focus onpurchases below certain thresholds. Thesystem would allow
theuseofelectronic means inthephases oftheprocurement process including: posting notices ofcontracting
opportunities,sendingtenderdocumentsandreceivingoffers;processingbids,awardingcontracts,postingnotices
ofcontract award; updating inventories, and,where practical, invoicing customers andpaying suppliers. The
EDIRAMinNorwayandFinlandisapilotprojectonelectronicexchangeofinformationbetweenpublicpurchasers
andsuppliers. Thepurchaser willbeabletoorder goods byelectronic mail, andthesuppliers toreturn invoices
aswellasother relevant information indemand tothepurchasers (GPA/IC/W/7/Add.6/Suppl.1).
479TED (Tenders Electronic Daily) intheEC,Norway andSwitzerland under SIMAP (Système d'Information
Marchés Publics) project. Canada hastheOpen Bidding System (OBS), aninternationally accessible electronic
database ongovernment procurement which ismanaged byaprivate company. IntheUnited States, Electronic
Commerce Architecture provides fortheVANs (value-added networks) toreceive calls fortender astheyare
issued; commercial VANs areusedastheinterface tothesuppliers. TheKorean GINS (Goldstar Information
Network Service) isoperated byaprivate firm. TheJETRO database inJapan; GEMS (Government Electronic
Marketplace Service) inAustralia andNew Zealand.
480E.g., Tenders Electronic Daily (TED) intheEC,Switzerland andNorway which istheelectronic version
oftheSupplement StotheOfficial Journal totheEuropean Communities; New Zealand usesAustralian
Commonwealth 'sGEMS; theCanadian Open Bidding Service (OBS). S/WPGR/W/11/Add.4, Add.5, Add.6,
Add.11, Add.15; WT/WGTGP/W/5; GPA/W/24/Add.1-4
481E.g., theWorks Branch inHong Kong, China andNASA intheUnited StatesWT/WGTGP/W/6
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- insome cases, onlytenders above certain threshold values oranoutline oftheintended
tender issoposted482;
- insomeGPAParties,tendernoticesareissuedelectronicallyonallprocurementcovered
bytheGPA.483Acodemaybeusedtoidentify theprocurements covered bytheGPA
andother international agreements484;
- some countries haveelectronic versions oftheirofficial gazettes where tender notices
arepublished485;
- insome cases, on-line subscribers canorder andobtain tender documents
electronically.486
144. Thedatabases mayhavethefollowing features:
- thedatabases aregenerally accessible on-line worldwide through theInternet487;
- thedatabasesofsomecountries488extendtoalllevelsofprocurementwhereasinothers489
theyonlycover central government entities;
- some databases contain information oninternational procurement opportunities,
information andadvice ondoing business withthegovernment, onexport possibilities
andprocurement guidelines atthenational level.490Suppliers canbrowse through the
various listings inthedatabase ordoaquick search using keywords tofind
opportunities thatareofinterest491;
482GPA/W/24/Add.1 andAdd.2
483Available inKorea through GINS; intheEC,Norway andSwitzerland through TED; inCanada through
OBS andthrough thehome page oftheHong Kong Housing Authority
484Each notice advertised intheCanadian OBS (Open Bidding Service) andGBO (Government Business
Opportunities) contains afieldfor"Agreement Type" which identifies GPA- andNAFTA-covered procurements.
485S/WPGR/W/11/Add.1, Add.5
486S/WPGR/W/11/Add.6, Add.7, Add.13
487S/WPGR/W/11/Add.5; WT/WGTGP/W/5; GPA/W/24/Add.1-4
488S/WPGR/W/11/Add.10, Add.13
489S/WPGR/W/11/Add.5, Add.6
490GPA/W/24/Add.1-2. OBS inCanada alsohasabidmatching service which provides suppliers witha
description ofthegoods andservices theysell.Using thisinformation, OBSscans itsdatabase andautomatically
faxes tosubscribers those opportunities thatmatch their profile. Suppliers canthenorder thebiddocuments
from theBidRequest Line.
491OBS inCanadaWT/WGTGP/W/6
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- onecountry 'sdatabase contains information onregistered suppliers andproduct lists492;
- some countries 'databases provide information about government contracts awarded
inthepasttohelpsuppliers withmarket research.493
145. Insome cases, tender documents aredisseminated andtenders aresubmitted electronically.494
Insome other cases, contract awards arealsopublished electronically.495Onecountry hasindicated
thatitprovides information oncontracts awarded through electronic means, butnotontendering
opportunities.496Moreover,somecountriesareworkingtowardselectroniccommerceintheprocurement
proceedings asawhole, including allinformation exchange between suppliers andprocuring entities
andtheactual ordering ofgoods andservices andinvoicing byelectronic mail, andelectronic payment
fortheprocured goods andservices.497
C. Language
International instruments
146. Under theModel Law, there isageneral requirement thatdocuments relating totendering
proceedings shallbeformulated intheofficial language orlanguages oftheenacting Stateand,except
incertain specified cases, inalanguage customarily usedininternational trade. Anadditional rule
intheModel Lawallows theformulation andsubmission oftenders inanylanguage inwhich thetender
documents havebeenissued orinanyother language thattheprocuring entity specifies inthetender
documents.498TheGPA requires thesubmission ofasummary oftheinvitation totender inoneof
theWTO official languages.499TheWorld Bank Guidelines require thatthequalification documents
beprepared ineither English, French orSpanish butallow entering intocontracts withlocalbidders
inthenational language oftheBorrower.500
492Costa Rica-TPR 1995
493E.g.,informationonthedatesforgovernmentauctionsofsurplusgoods,arangeofmaterialaboutAustralian
Government purchasing policies andspecial purchasing opportunities areadvertised intheAustralian GEM.
InKorea, GINS (Goldstar Information Network Services) covers information ontheprocurement ofabout
350procuring entities including Korea Telecommunications, Korea Electric Power Organizations; database of
theNational Supply Agency inCosta Rica.
494GPA/W/24/Add.2
495GPA/W/24/Add.1; e.g.CANs (Contract Award Notices) intheEuropean Community; GINS inKorea;
home pages ofindividual agencies inHong Kong, China
496S/WPGR/W/11/Add.8
497S/WPGR/W/11/Add.6; GPA/W/24/Add.1 andAdd.4
498Model LawArticles 17and29
499GPA, Article IX:8
500World Bank Guidelines ongoods andworks, paragraph 2.15andonconsultants 'services, paragraph 1.21
and1.22WT/WGTGP/W/6
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147. Under theGPA, ifanentity allows tenders tobesubmitted inseveral languages, oneofthose
languages must beoneoftheWTO official languages.501
National practice
148. Generally, tender notices arepublished intheofficial language(s) ofthecountry oftheprocuring
entity.502Insome instances, summaries areprovided inlanguages traditionally usedininternational
trade.503Countries withseveral official languages publish inallofficial languages504orgiveasummary
inother official language(s), theoriginal textalone being authentic.505Itisstated, inonecase, that
thepublic notice maybeinEnglish when thepayment forprocurement istobeinaforeign currency506
andtender announcements maybemade inalanguage used ininternational trade injustified
circumstances.507
X. INFORMATION TOBEPROVIDED TOOTHER GOVERNMENTS
149. TheGPA istheonlyinternational instrument ongovernment procurement thatconfers on
governments thatareParties toitcontractual rights andobligations. Therefore, theprocedures described
inthisChapter concern theexchange ofinformation between governments Parties totheGPAasrequired
under therelevant provisions oftheGPA.
A. Information onNational Legislation
International instruments
150. TheGPAPartiesarerequiredtobepreparedtoexplaintheirgovernmentprocurementprocedures
inresponse toarequest byanyother GPA Party.508More particularly, theprovisions onspecial
treatment fordeveloping countries require developed country Parties toestablish, individually orjointly,
information centres torespond toreasonable requests fromdeveloping country Parties forinformation
relatingto,amongothers,laws,regulations,proceduresandpracticesregardinggovernmentprocurement,
notices about intended procurement which havebeenpublished, addresses oftheentities covered by
theAgreement, andthenature andvolume ofproducts orservices procured ortobeprocured, including
available information about future tenders. TheCommittee onGovernment Procurement established
under theAgreement mayalsosetupaninformation centre torespond toenquiries bydeveloping
countries.509Thecoordinates ofthecontact points ofGPAParties areincluded intherelevant documents
oftheCommittee onGovernment Procurement (Korea -GPA/12/Rev.1, page10,Norway -GPA/10,
501GPA, Article XII:1
502S/WPGR/W/11/Add.8
503S/WPGR/W/11/Add.2
504E.g., Malay andEnglish inBrunei Darussalam andChinese andEnglish inHong Kong, China
505S/WPGR/W/11/Add.2, Add.10
506S/WPGR/W/11/Add.13
507S/WPGR/W/11/Add.12
508GPA, Article XIX:1
509GPA, Article V:11WT/WGTGP/W/6
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page7,Switzerland -GPA/15, page7).Moreover, individual APEC member countries havedesignated
contact points inthecontext ofthework oftheGroup ofExperts onGovernment Procurement. These
areincluded intheAPEC Surveys andcanbeaccessed through theAPEC Home PageonGovernment
Procurement attheInternet (http://www.apecsec.org.sg/gphome.html).
151. TheGPA hasageneral provision inArticle XIX:4, requiring thatconfidential information
provided toanygovernment Party totheGPAshallnotberevealed without formal authorization from
theParty providing theinformation. Thedefinition ofconfidential information isidentical tothatin
Article XofGATT 1994withtheaddition ofareference toinformation "which would prejudice fair
competition between suppliers".510
152. TheCommittee hasadopted aDecision onprocedures forthenotification ofnational
implementing legislation bytheGPA Parties, including responses toachecklist ofissues.511The
Decision requires GPA Parties, interalia,tosupply, inresponse toarequest from another Party, a
copyofanylaw,regulation, finaljudicial decision, administrative ruling orother measure relevant
totheAgreement. EachParty shallnotify theCommittee ofthecoordinates ofacontact pointestablished
forthatpurpose. Through itscontact point, aParty from which atexthasbeenrequested shalluse
itsbestendeavours toassist therequesting Party withanytranslation intoaWTO language.
B. Notification ofNational Legislation
International instruments
153. Under theGPA, eachParty hasanobligation toinform theCommittee onGovernment
Procurement ofanychanges initsnational legislation anditsadministration.512TheDecision requires
GPA Parties, interalia,tosubmit thecomplete textsoftheirbasic legislation (laws andregulations)
ongovernment procurement intheoriginal language totheSecretariat where these textswillbeopen
forinspection byParties. These would include thebasic legalinstruments pursuant towhich effect
isgiven totheprovisions oftheAgreement. EachParty shallprovide asummary ofthatlegislation
inaWTO language. GPAParties arealsorequired todescribe inaWTO language whatotherlegislation
giving effect totheAgreement onGovernment Procurement exists. Thisneednottaketheform of
alisting ofindividual textsbutshould include sufficient information onthenature oflegislation relevant
toeachcategory ofentities tofacilitate another Party requesting atextofinterest toit.
154. InaccordancewiththeDecisionoftheCommitteeonGovernmentProcurement(GPA/1/Add.1),
thefollowing fourGPA Parties havesubmitted dataontheirlegislation asofOctober 1997: Canada
(GPA/10), Korea (GPA/12/Rev.1), Norway (GPA/13) andSwitzerland (GPA/15).
C. Information onContract Awards
155. FurthertotheobligationsofentitiesunderArticleXVIII:2(c)oftheGPArelatingtotheprovision
ofinformation toanunsuccessful tenderer, theGPAallows thegovernment ofanunsuccessful tenderer
which isaParty totheGPA toseeksuchadditional information onthecontract award asmaybe
necessary toensure thattheprocurement wasmade fairly andimpartially. Tothisend,theprocuring
government isrequired toprovide information onboththecharacteristics andrelative advantages of
thewinning tender andthecontract price. Thegovernment maydisclose theinformation thusobtained
510GPA, Article XIX:4
511GPA/1/Add.1
512GPA, Article XXIV:5(a) and(b)WT/WGTGP/W/6
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provided itexercises thisrightwithdiscretion. Incases where therelease ofsuchinformation would
prejudice competition infuture tenders, thisinformation shallnotbedisclosed except afterconsultation
withandagreement oftheParty which gavetheinformation tothegovernment oftheunsuccessful
tenderer.513TheGPAalsoimposes ageneral requirement onParties toprovide, uponrequest, toany
other Party, information concerning procurement bycovered entities andtheirindividual contract
awards.514
D. Statistical Information
International instruments
156. Asameans ofmonitoring procurement covered bytheGPA, Article XIX:5 oftheGPArequires
eachParty tocollect andprovide totheCommittee onanannual basis statistics onitsprocurements
covered bytheGPA. Thetypeofinformation thatsuchreports shallcontain isstipulated indetail
inArticle XIX:5, paragraphs (a)to(d).
157. Themost recent statistical datasubmitted byParties totheTokyo Round Agreement on
Government Procurement arecontained inthefollowing setofdocuments: theEuropean Community
(GPR/72/Add.3/Rev.1) andIsrael (GPR/72/Add.9) for1992; Japan (GPR/75/Add.9), theUnited States
(GPR/75/Add.6), Austria (GPR/75/Add.5) andCanada (GPR/75/Add.4) for1993; Singapore (GPR/78)
andFinland (GPR/78/Add.3) for1994; Switzerland (GPR/80/Add.1) andNorway (GPR/80/Add.2)
for1995; andHong Kong (GPR/81) for1996. Nostatistical datahavebeensubmitted byGPAParties
since theentry intoforce oftheAgreement in1996.
513GPA, Article XIX:2
514GPA, Article XIX:3