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Main Page FAQs By Division Government Procurement Division General
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 1. What are the principles of government procurement?
   
  Government procurement principles are as follows:
   (a) Public Accountability
   (b) Transparent
   (c) Best value for money
   (d) Open competition
   (e) Fair Dealing
     
 2. What are the methods of government procurement?
   (a) Procurement through petty cash
   (b) Procurement through central contract
   (c) Direct Purchase
   (d) Procurement through quotation
   (e) Procurement by tender (open / restricted)
     
 3. What is the limit value of procurement through petty cash and its terms?
   
  Procurement through petty cash has a limit value  of not exceeding RM500.00 in a single receipt. Procurement through petty cash is for immediate use. No purchase document is required (receipt is  sufficient).
   
 4. How can the information on Government procurement be obtained?
   
  Information on government procurement offer by tender can be obtained through major local newspapers. However, for information on quotation or direct purchase, the company can communicate directly with the Government Agency concerned or view the notice board / website of the Agency. Information can also be obtained from the portals of  MyGovernment or MyProcurement.
   
 5. How does a company / contractor be eligible and participate in the tender / quotation offered by Government agencies?
   
  Companies must be registered with the Ministry of Finance under the relevant codes to participate in the tender / quotation  of supplies / services. For companies that wish to participate in the tender / quotation that involves the procurement of works, the companies must be registered with the Construction Industry Development  Board Malaysia (CIDB) and has a Certified Contractor Registration (PPK)  plus  a Government Works Procurement Certificate (SPKK) with the related grades, categories and specialisation,  the Contractor Service Centre (PKK) and holds a  Bumiputera Status Certificate (STB)  if applicable / Works Contractors Central Registration, Sabah State Supply and Services  (PUKONSA) / Contractor  and Consultant Registration Unit  (UPKJ) in the related grades, categories and specialisation .

   
 6. What are the laws and financial regulations related to Government procurement?
   
  Laws and regulations related to Government procurement, including:
   (a) Financial Procedure Act 1957 (Revised 1972)
   (b) Government Contracts Act 1949 (Act 120)
   (c) Treasury Instructions
   (d) Treasury Circular Letters
   (e) Treasury Contract Circulars
   (f) Treasury Instruction Letters
     
 7. What are the government procurement policies?
     
   (a) To promote the growth of local industries through the use of local materials / products and the use of local services;
   (b) Enhancing the capacity of local industries through technology transfer;
   (c) To encourage the participation of Bumiputera entrepreneurs; and
   (d) To protect and defend the interests of government procurement policies in order to achieve national objectives in facing the challenges of globalisation and liberalisation.
     
 8. What are the relevant Treasury Instructions related to Government procurement?
     
  Treasury Instructions related to Government procurement are the Treasury Instructions (AP) 166 to 206 and 229 to 300. Apart from the APs, Treasury Circulars(PP), the Treasury Circular Letters (SPP) and Treasury Contract Circulars (PKP), issued from time to time also should be referenced.
   
 9. If Treasury Instructions, SPP or PKP could not be observed due to certain reasons, what action should be taken?
   
  All agencies must comply with financial regulations relating to procurement. If the agency could not do so because of certain reasons, the agency shall obtain an exemption from the Ministry of Finance (Federal procurement) or the State Financial Officer (State procurement) in advance.
   
 10. How can Treasury Circulars, Circular Letters and  Contract Circulars be obtained?
   
  All Treasury Circulars, Circular Letters, Contract Circulars and  Instructions are available at  Treasury's website.
   
11. What are the financial regulations on the invitation to Grade G1 contractors for works under RM200, 000?
   
  All works under RM200,000 will be reserved for Grade G1 Bumiputera contractors  registered with related CIDB  grades, categories and specialisation and have a Certified Contractor Registration (PPK), a Government Works Procurement Certificate (SPKK) and Bumiputera Status Certificate (STB) issued by the Contractor Service Centre (PKK). Grade G1 contractor registration is done by region and thus only contractors in the area concerned will be offered jobs below RM200,000.
   
 12. What is meant by each type of item?
   
  Each type of item refers to the direct purchase of supplies /  services up to RM50,000 per annum from any registered or unregistered with the Ministry of Finance with or without  Bumiputera status.It can be interpreted based on the following examples:

   (a) A variety of parts that can be derived from the same source of supply is considered one item type.
   (b) Items of assorted sizes should be interpreted as one item type. Example purchase various sizes of nails (1 inch or 1 ½ inches), mirrors, shoes and flags.
   (c) Sofa set which includes various types of chairs (either single seater or 3 seater) with tables, interpreted as one type of item. If the purchase of furniture consists of banquet chairs and sofa sets, then the banquet chairs and sofa set can be considered as different items. However, if the two can be purchased from the same supplier, it can be interpreted as one type of item(furniture).
   (d) Purchase of various toners is interpreted as a type of item because it can be obtained from the same supplier (one source).
   (e) Purchase of stationery (pen, pencil, ruler, scissors, staplers, erasers, glue, etc.) be interpreted as a kind items.
   (f) A variety of paper sizes (A4, A3) and multi-colored paper is interpreted as a type of item.
   (g) Computer, printer, monitor, keyboard and CPU is one type of item.
   (h) A variety of drugs is one type of item.
   (i) Building materials such as cement, wood, board, ceiling, nails is interpreted as a type of item.
   (j) Various electrical appliances such as kettles, fans, televisions, radios, irons, blenders, refrigerators, is interpreted as a type of item because it can be obtained from the same supplier (electrical store).
   (k) Purchase of different kinds of vegetables and various types of fish are also interpreted as a type of item because it can be obtained from the same supplier (market).
   
13. How long should tender documents / quotation should be kept?
  National Archives of Malaysia (ANM) has issued a Financial and Accounting Records Disposal Schedule (JPRKP). That book can be purchased or obtained from the ANM website. According to the JPRKP pages 52 and 53 correspondence regarding the procurement of supplies, services and works, including advertisements, tender documents, tender schedule and the tender / quotation report may be disposed of after action has been completed and the records are destroyed after the retention period of 7 years after obtaining the approval of the ANM.
   
14. What works contractor registration system  used at present?
  The Government has decided on the implementation of a Single Contractor Registration (SSPK) from 15 October 2012 that coordinates all contractors registration under the CIDB and PKK. PKK is responsible for overseeing and managing the Bumiputera status to qualified contractors.
   
15 What certificates are issued by CIDB and PKK?
  With the enforcement of SSPK, certificates that will be issued by CIDB and PKK are as follows:
   (a) Contractor Registration Acknowledgement(PPK) by CIDB;
   (b) Government Works Procurement Certificate(SPKK) by CIDB, and
   (c) Bumiputera Status Certificate (STB) by PKK.
   
16 What are the grades and financial limit values in effect for contractors working for government procurement?
 


Grades and financial limits in effect are as follows:

    BUILDING WORKS CONTRACTOR / CIVIL / MECHANICAL
Grade Financial Limit
G1 RM200,000 and below
G2 Exceeding RM200,000 up to RM500,000
G3 Exceeding RM500,000 up to RM1,000,000
G4 Exceeding RM1,000,000 up to RM3,000,000
G5 Exceeding RM3,000,000 up to RM5,000,000
G6 Exceeding RM5,000,000 up to RM10,000,000
G7 Exceeding RM10,000,000
   
  ELECTRICAL WORKS CONTRACTOR
 
Grade Financial Limit
G1 Up to RM200,000
G2 Up to RM500,000
G3 Up to RM1,000,000
G4 Exceeding RM200,000 up to RM3,000,000
G5 Exceeding RM200,000 up to RM5,000,000
G6 Exceeding RM200,000 up to RM10,000,000
G7 Exceeding RM200,000 and above
   
17 What are qualifications for contractors to participate in government procurement?
  Contractors must be registered with CIDB and have a  Government Work Procurement Certificate(SPKK) with related grades, categories and  specialisation to take part in government work procurement . For Bumiputera status, the contractor must have a Bumiputera Status Certificate (STB) from PKK.
   
 18 Can contractors registered with the Works Contractor Registration Centre, State of Sabah Supply and Service  (PUKONSA) or the Sarawak Contractor and Consultant Registration Unit (UPKJ) participate in the works procurement?
  Contractors registered with the Works Contractor Registration Centre , State of Sabah Supply and Service (PUKONSA) or the Sarawak Contractor and Consultant Registration Unit (UPKJ) can participate in the following works procurement:
  i. Contractors registered with CIDB and PUKONSA or UPKJ along with contractors registered with the CIDB and possessing SPKK can be invited to participate in works procurement  using Federal budget in Peninsula ;
  ii. Contractors registered with the CIDB and UPKJ along with the contractors registered  with the CIDB and possessing SPKK can be invited to participate in works procurement using Federal budget in Sarawak. Works contractors registered with the CIDB and possessing SPKK along with contractors registered with the CIDB and UPKJ can be invited to participate in works procurement  using the state budget  in Sarawak , and
  iii. Contractors registered with CIDB and PUKONSA along with contractors registered with the CIDB and possessing SPKK can be invited to participate in works procurement  using Federal budget in Sabah. Works contractors registered with the CIDB and possessing SPKK along with contractors registered with the CIDB and PUKONSA can be invited to participate in works procurement  using the state budget in Sabah.
   
 19 Which authorities  set out the criteria and conditions for the registration of contractors? 
  New criteria and conditions for the registration of works contractor  by grade, category and specialisation is set by CIDB.
   
 20 If there are any questions regarding the registration of contractors, grade, category or specialisation which party should be contacted?
  If there are any questions regarding the registration of contractors, further information can be referred to:
   
Chief Executive

Construction Industry Development Board Malaysia (CIDB)
Level 7, Grand Seasons Avenue
No. 72, Jalan Pahang
53000 Kuala Lumpur
Tel : 03-2617 0200
Fax : 03-2617 0220
Email : This e-mail address is being protected from spambots. You need JavaScript enabled to view it
  or:
    Director
Contractor Service Centre
Works Ministry Malaysia
Level 5, Tower Block
No. 18, Persiaran Perdana, Presint 2
62652 Putrajaya
Tel : 03-8880 5200
Fax : 03-8880 5204
Email : This e-mail address is being protected from spambots. You need JavaScript enabled to view it
   
 21 What are the procedures to be followed for the procurement of imported materials / goods?
  Agencies should fully utilise local materials / goods / services  in their procurement. Procurement by import will only be considered after ensuring it cannot be sourced locally.
  MITI approval must be obtained prior to any importation of material / goods valued at more than RM50 thousand. The Agency shall apply for endorsement and approval during the planning stage i.e before the procurement.
  Procurement of materials / finished goods that are imported into the country (ex-stock) worth more than RM50 thousand must have the advance approval of the Ministry of Finance before the procurement of materials / goods are made.
  Materials / items valued at more than RM200 thousand for one contract that can be imported is to be implemented by Free On Board (FOB) except for procurement of drugs (SPP 18/2002), procurement of imported ICT software (SPP 16/2001) and the procurement of training equipment , and research and medical  not exceeding RM5 million for one contract (SPP 10/2007).
Last Updated on Tuesday, 19 March 2013 11:23
 

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