Laws on Procurement

DECREE LAW NO. 28/2014

 24th September

 Special Procurement Regime for the Oe-Cusse Ambeno Special Administrative Region

 

Law No. 3/2014 of 18th June approved the creation of the Oe-Cusse Ambeno Special Administrative Region and established the Special Zone of Social Market Economy (ZEESM), of which the district of Oe-Cusse Ambeno and the sub-district of Ataúro are a part of, based on a new administrative and financial organizational model, as a means of ensuring greater participation of the population and greater efficiency and quality of the services provided to citizens, companies, tourists and investors.

 

In the context of the development of the Strategic Development Plan, ZEESM is a crucial instrument to reach the strategic objectives of industrialization, regional development and job creation. In this context, it is deemed necessary to create a special procurement regime to facilitate the process of public procurement, with the purpose of stimulating and promoting investment in these areas.

 

The Government therefore decrees that under the terms of point e) of paragraph 1 of article 115, and of points a) and d) of article 116 of the Constitution and of article 3 of Law No. 3/2014, of 18th June, the following shall have the force of the law:

 

Article 1

Subject and scope of enforcement

 

The present document aims to establish special norms under which expenses may be carried out, with a view to purchasing goods and services or to carryout works, within the geographic scope established under article 3 of Law no. 3/2014, of 18 June.

 

Article 2

Contracting Authority

 

 

  1. The Contracting Authority with power to authorize procurement procedures and to approve the award of contracts in an amount up to 5,000,000 USD, is the President of the Oe-Cusse Ambeno Regional Authority.
  2. Above 5,000,000 USD the Contracting Authority with power to authorize procurement procedures and to approve the award of contracts in such amounts, is the Oe-Cusse Ambeno Regional Administrative Authority.
  3. The President of the Oe-Cusse Ambeno Regional Authority always holds the power to sign public contracts, after their award.
  4. The Contracting Authority is technically supported by a subunit in the scope of a National Procurement Committee that supports the procurement procedures authorized by the Contracting Authority, whenever support is requested.

 

Article 3

Approval modalities

 

  1. The ZEESM procurement procedure can be carried out through:
    1. A limited tender process by an international initial pre-qualification process;
    2. Request for Quotation;
  2. The choice for one or other of the above procedures should be duly supported.

 

Article 4

Pre-qualification

 

  1. The pre-qualification procedure evaluates and qualifies competing companies to participate in any procurement procedure being undertaken by ZEESM.
  2. Companies that hold at least:
  1. Legal capacity to sign contracts;
  2. Professional competencies;
  3. Technical capacity;
  4. Commercial viability and financial resources to carryout the contracts.
  1. All pre-qualified entities should ensure they fulfil the requirements of pre-qualification and make available all supporting information of its fulfilment whenever this is requested.

 

Article 5

Limited tender

 

  1. The C ontracting Authority may call for a limited tender based on an official list of building contractors, service providers or suppliers approved through the pre-qualification process defined in the above article.
  2. The Contracting Authority shall issue tender documents for all bidders invited to submit bids under this article.
  3. The tender documents shall specify the requirements applicable to the bidders, as well as the characteristics of goods, works and services being contracted, submission deadlines and evaluation criteria for proposals, and prevailing contractual terms.

 

Article 6

Request for Quotations

 

  1. Request for Quotations may be used by the Contracting Authority in procurement procedures of reduced technical complexity.
  2. Under the terms of the above paragraph, the Contracting Authority should request proposals from at least three selected bidders, based on the official list, as established under paragraph 1 of the previous article.
  3. The Contracting Authority should issue tender documents to all bidders that have been invited to submit bids under this article.
  4. The tender documents shall specify the requirements applicable to the bidders, as well as the characteristics of goods, works and services being contracted, submission deadlines and evaluation criteria for proposals, and prevailing contractual terms.

 

Article 7

Publication and filing requirements

 

  1. The publication of notices for pre-qualification and tender documents is subject to the following rules:
  2. Pre-qualification notices should be published in at least two national newspapers, in one of the official national languages and in English, as well as other means of electronic or print distribution;
  3. The tender documents should be made available in the Contracting Authority’s website.
  4. All documents relating to the procurement procedures should be kept by the Contracting Authority for a period of five years from the time of its completion.

 

Article 8

Evaluation criteria for procurement procedures

 

  1. The main objective of the procurement procedures undertaken under the scope of this diploma is to obtain the best price/quality option for the Contracting Authority.
  2. To determine which proposal offers the best price/quality option, the Contracting Authority should consider the following:
  3. Technical considerations, that is, the suitability of the goods, works or services for fulfilment of the operational and performance requirements identified in the tender documents, as well as the quality and maintenance conditions of these;
  4. Commercial considerations, including the capacity for financial implementation of the signed public contract;
  5. Local development considerations, promoting industrial and business capacity in the Democratic Republic of Timor-Leste by signing consortium contracts or by subcontracting national companies, whenever this is technically possible.
  6. The evaluation mechanism may be numeric or based on minimum requirements, as specified in the tender documents.

 

Article 9

Audits

 

The Chamber of Auditors will carry out periodic audits to the Contracting Authority with the purpose of reviewing compliance of practices with the present diploma, under paragraph 2 of article 42 of Law no. 3/2014, of 18 June, and in agreement with the prevailing legal regime in terms of concurrent and successive supervision.

 

Article 10

Subsidiary regime

 

The general rules in terms of public procurement and contracts will apply in all that does not contradict the provisions in this diploma.

 

Article 11

1st amendment to Decree-Law no. 14/2011, of 30th March

 

Article 2 and 3 of Decree-Law no. 14/2011, of 30th March, are replaced by the following:

 

“Article 2

Mission

 

  1. (…)
  2. The CNA is also responsible for supporting the provision of procurement processes in the Oe-Cusse Ambeno Special Administrative Region, independently of the, respective value, when requested to do so.

 

Article 3

Duties

 

(…):

 

  1. (…);
  2. (…);
  3. In particular, support the provision of procurement processes in the Oe-Cusse Ambeno Special Administrative Region, independently of the respective value, when requested to do so.
  4. Collaborate with the National Development Agency, the Secretariat for Large Projects, Ministries and other public entities, in compliance with the law;
  5. Any other, as awarded under the law.”

 

Article 12

Entry into force

 

This diploma will enter into force the day after it is published.

 

Approved by the Council of Ministers on 8th July, 2014.