A performance security is a guarantee that the successful bidder will:
1. Not default on its offer, and
2. Enter into contract with the Procuring Entity within specified calendar days, from receipt of the Notice of Award, and furnish the performance security provided for in 142 of the PPDAA (2015)

A performance security must be submitted with every bid. It must be operative on the date of bid opening, and payable to the Procuring Entity. The amount of any tender security under section 142 (1) of the Act shall be expressed either as a fixed amount or as a percentage of the estimated value of the contract and shall not in either case exceed Ten per cent (10%) of the estimated value of the contract. In determining the amount of tender security, a procuring entity shall take into account) The cost to tenderers of obtaining a tender security;

  • The estimated value of the contract; and
  • The risk of tenderers failing to fulfill the conditions of their tenders.

The tender security to be provided under section 142 of the Act shall be in any of the following forms only-

  • Cash;
  • A bank guarantee;
  • Such insurance company guarantee as may be approved by the Authority;
  • A letter of credit.

No tender security shall be accepted under the Act unless such security is valid for a period of at least thirty days after the expiry of the tender validity period. The procuring entity shall, where it extends the tender validity period, request the tenderers‘ to extend the period of validity of their tender securities. A procuring entity may, where it deems necessary, verify the authenticity of
any tender security.

Inquiries relating to tender documents
Where a tenderer makes an inquiry relating to the tender documents the procuring entity shall promptly reply in writing. The procuring entity shall not be bound to reply to inquiries received after the deadline for submitting inquiries stipulated in the tender documents.

Form of tender box
A procuring entity shall, for purposes of the Act, ensure that) A tender box has one lock;

  • the key for the lock is kept by an appointed person from procurement department ; and
  • the tender box remains locked until the time for tender opening.

Opening of tenders
The Accounting Officer of a procuring entity shall appoint a tender opening committee specifically for the procurement in accordance with the following requirements and such other requirements as may be prescribed:

  • The committee shall have at least three members; and
  • At least one of the members shall not be directly involved in the process or evaluation of the tenders

Any bid withdrawn in writing shall not be eligible for evaluation or consideration in the tender process. Immediately after the deadline for submitting tenders, the tender opening committee shall open all tender received before the deadline. Those submitting tenders or their representatives may attend the opening of tenders. The tender opening committee shall an identification number to each tender and record the number of pages received.

As each tender is opened, the following shall be read out loud and recorded in a document to be called the tender opening register:-

  • The name of the person submitting the tender;
  • The total price, where applicable including any modifications or discounts received before the deadline for submitting tenders;
  • If applicable, what has been given as tender security.

No tender shall be disqualified by the procuring entity during opening of tenders The Accounting Officer of a procuring entity shall on request, provide a copy of the tender opening register to a person submitting tender.
Each member of the member of the tender opening shall:-

  • Sign each tender on one page or more pages as determined by the tender opening committee; and
  • Initial, in each tender, against the quotation of the price and any modifications or discounts, where applicable.

The tender opening committee shall prepare tender opening minutes which shall set out:-

  • A record of the procedure followed in opening the tenders
  • The particulars of those persons submitting tenders or their representatives, who attended the opening of the tenders.

To acknowledge that the minutes are true reflection of the proceedings held, each member of the tender opening shall:-

  • Initial each page of the minutes;
  • Append his or her signature as well as initial to the final page of the minutes indicating their full name and designation
  • A tender is responsive if it conforms to all the eligibility and other mandatory requirements in the tender documents.
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