Gov’t Increasing Procurement Thresholds

The Government is revising the thresholds for the procurement of goods, services and works in public-sector entities.

The move will be facilitated through amendments to the Public Procurement Act 2015 and its Regulations, which are in advanced stages of development and should be tabled early in the new fiscal year, said Finance and the Public Service Minister, Dr. the Hon. Nigel Clarke.

He was opening the 2024/25 Budget Debate in the House of Representatives on Tuesday (March 12).

The Minister noted that the amendments will revise the thresholds below which procuring entities can adopt more nimble contracting procedures, leading to increased pace of contract formation.

“For example, in the case of contracts for goods and services, we will be increasing the threshold below which single-source procurement is permissible from $1.5 million to $3 million. The $1.5-million threshold has been in place for almost a decade. For works, it will go from $2 million to $5 million,” the Minister informed.

In addition, he noted that the limits required for approval from the Public Procurement Commission will move from $30 million to at least $60 million.

“We are going to be empowering procurement entities to have more autonomy and award higher-value contracts without need for external approval. These things will speed up the pace at which the Government can deliver,” the Minister expressed.

As it relates to the mandatory standstill period of 10 days between the date of a procurement decision and the date of award, Dr. Clarke said that this will be abolished for all but the largest procurement awards.

The sector committee stage will also be removed.

“The greatest improvement in efficiency that we will get is by removing the many layers that exist,” he noted.