III.Trade Policies and Practices by Measure39

SINGAPORE

WT/TPR/S/67, 29th February 2000

III.trade policies and practices by measure39

(2)Measures Directly Affecting Imports40

(viii)Government procurement53

(a)Introduction

1. Singapore deposited its instrument of accession to join the WTO Agreement on Government Procurement on 20 September 1997.[1] The Government Procurement Act, 1997, was gazetted on 2January 1998. There is no centralized procurement agency in Singapore; procurement is carried out by individual ministries, departments and statutory bodies. Procurement policies are formulated by the Ministry of Finance, which seeks to ensure that public procurement remains transparent, open, and fair. Some centralized purchasing is carried out by the Ministries of Finance (the Expenditure and Procurement Policies Unit, EPPU), Defence, and Health, and by the NationalComputer Board.
2. The annual value of government procurement has been declining since 1995, falling from almost 6% of GDP in 1995 to around 3% in 1998 (Table AIII.3).

(b)Tendering procedures

1. With the exception of a 2.5% preference margin granted to ASEAN members, for the procurement of goods and auxiliary services, under the ASEAN Preferential Trading Arrangement, Singapore grants national treatment to all suppliers, with tenders open to domestic and foreign suppliers alike. The preferential ASEAN margin of 2.5% may not exceed US$40,000 pertender and is applied on the basis of the lowest evaluated and acceptable tender.
2. Depending on the overall value of the purchase, one of three procurement procedures are generally followed: small value purchases, quotations, or tendering. For procurement of goods and services with a value up to S$1,000, procurement may be carried out by direct purchases from known sources. For goods or services valued between S$1,000 and S$30,000, quotations are invited from three or more domestic and/or foreign suppliers. The suppliers are approached directly by the procuring agency. Responsibility for such purchases lies with two officials, one to invite, receive, evaluate and recommend a supplier, and the other to approve the choice made by the first official. For procurement valued at above S$30,000, formal tenders are called.
3. Three different types of tender may be invited by procurement agencies: open, selective or limited. Open tenders are advertised in the local newspapers and published in either the NationalGazette or the Government Internet Tendering Information System (GITIS). Any supplier may participate in such tenders. Optionally, particularly for more complex tenders, procurement agencies may call for a two-stage, selective tender. For such tenders, an open invitation is first published in the local newspapers, inviting interested suppliers to submit themselves for pre-tender qualification. All qualified suppliers may apply for such pre-tender qualification. Following an evaluation of their capabilities to fulfil the tender requirements, a shortlist is drawn up from among the suppliers who responded to the initial invitation from which suppliers are invited to submit their tenders. Limited tenders are used in exceptional circumstances, in accordance with the criteria in Article XV of the WTO Government Procurement Agreement. The circumstances and reasons for granting the procurement agency use of limited tenders are endorsed by the Permanent Secretary and submitted for approval to the Tenders Board.[2]
4. Apart from making available notices of open and selective tenders, the GITIS also publishes related details of tender offers received and the subsequent awards. The GITIS site also contains information on suppliers who have been evaluated by the relevant Government Registration Authorities for procurement purposes. Singapore has also developed the Mindef Internet Procurement System (MIPS), which allows electronic submission of quotations, issuing of purchase orders to suppliers, and invoicing by suppliers. The MIPS, currently used by the Ministry of Defence, is being enhanced and extended to all other Singapore public sector procurement agencies. Singapore participated in demonstrations of the Use of Information Technology in Government Procurement at the WTO in June 1998.
5. All suppliers are required to be evaluated and registered with the relevant Government Registration Authorities as a criterion for award of tender. There are three registration authorities: the Expenditure and Procurement Policies Unit (EPPU), for general goods and services; the Pharmaceutical Department of the Ministry of Health, for medical supplies and healthcare related goods and services; and the Construction Industry Development Board, for construction and construction services. The financial and track records of the suppliers are evaluated by these registration authorities, which issue suppliers with certificates allowing them to participate in future procurement tenders without undergoing separate evaluation for each tender. Registration, which requires payment of processing fees, is valid for three years.[3]
6. Complaints related to Government procurement may be directed to the Ministry of Finance, which investigates all complaints and appeals from suppliers, and initiates any remedial action if judged necessary. In addition, a Government Procurement Adjudication Tribunal, set up under the Government Procurement Act, will handle complaints of non-compliance with the WTO Agreement on Government Procurement.[4]

[1] WTO document WT/Let/179, 26 September 1997. The Government Procurement Agreement entered into force for Singapore on 20 October 1997.

[2] WTO document, GPA/W/10, 5 March 1996.

[3] The requirements for registration include: proof of financial and technical competence; a record of previous supplies of the product for which the contractor wishes to register; a summary record of trading transactions undertaken in the past; the names and addresses of two reputable clients who can attest to the quality and reliability of services provided by the contractor; and registration with the Registry of Companies and Businesses. In addition, in some cases, foreign contractors intending to register for a financial category above S$500,000 need to be incorporated under Singapore Law (Endeshaw, 1999).

[4] APEC Secretariat (1998).