House Approves Public Procurement Competition Thresholds Order 2025 Resolution

The House of Representatives, on Tuesday (April 29,) approved the Public Procurement Competition Thresholds Order 2025, Resolution.

In her remarks, Minister of Finance and the Public Service, Hon. Fayval Williams, said the Public Procurement Act was passed in 2015 and amended in 2018 and in March 2025.

She indicated that the amendments were necessary to rectify conceptual or fundamental deficiencies, address ambiguities in the legislation, establish a new competition threshold, increase contract approval limits and ensure greater alignment between the Act and the Regulations and the Government’s strategic objectives.

“The competition threshold allows a procuring entity to restrict competition in the manner that best accommodates the circumstances of the procurement and, in particular, provides for restriction of competition on the basis of the estimated contract price,” Mrs. Williams outlined.

Additionally, she said, “the competition threshold also recognises the important distinctions between procurement methods and the levels of competition to which they may be deployed”.

“This coherent and proportionate approach to method selection is expected to increase overall efficiency in public procurement,” the Minister further stated.

Mrs. Williams noted that in the previous regime, a similar approach to thresholds was taken. However, that regime did not provide a full range of available methods at different levels of competition.

The Minister said the competition threshold will now rationalise and increase some of those previous values.

Mrs. Williams informed that Section 22 (b)(3) of the Public Procurement Act, as amended, provides that the Minister may, by Order, prescribe threshold values to be applied to the newly created competition threshold.

“With the affirmation of this Order, I intend to operationalise this provision,” she stated.

Providing details on the Order, Mrs. Williams said it begins by addressing preliminary issues, such as the enabling powers in the Act, which establish the Minister’s authority to make this Order.

Paragraph two of the Order provides for the application of the value limits in the first column of the schedule to the level of competition specified in the second column, and the method specified in the third.

“You will see that, for example, for the procurement of contracts for works, a procuring entity would be able to invite an offer from a single supplier if the estimated contract price does not exceed $5 million. Similarly, for the procurement of goods and services, the procuring entity would be able to invite an offer from a single supplier, if the estimated contract price does not exceed $3 million. Indeed, if the market conditions and time allow, even at these levels, the procuring entity may request quotes from multiple suppliers,” the Minister stated.

“Giving this discretion to procuring entities is an important step in ensuring a system that delivers for the people of Jamaica. In the levels above, as the contract value increases, procuring entities are now obligated to increase competition, as a means of increasing value for money. This is consistent with existing practice and with international practice,” she added.

Mrs. Williams said the Government intends to continue to fulfil its commitment to maximise economy and efficiency in public procurement, promote economic development through public procurement, obtain value through public procurement, foster transparency, and encourage participation in public procurement.