|Tender Procurement Process|
Evaluation committees will evaluate all tenders based on the criteria set in the tender document. Evaluation is normally done
by two separate committees i.e. Technical Evaluation Committee and Financial Evaluation Committee. The evaluation of
both committees will result in the ranking of tenders received and the tender secretariat will apply the pre-determined
weightage for the final evaluation of all tenders. This tender evaluation report will then be submitted to the Procurement
Boards of Ministries/Departments (Agency Procurement Boards) for consideration and decision.
The Agency Procurement Boards will consider and select the successful bidder. Selection of tenders will be based on the
and decided by Agency Procurement Boards. The Minister of Finance appoints all Federal Government Procurement
Boards and the Chief Ministers of the respective states appoints the State Government Procurement Boards. The
chairperson is usually a Head of Department or a Controlling Officer who under the Financial Procedure Act 1957 is
empowered to manage the annual allocation given to a particular Ministry or Department.
Currently two (2) Agency Procurement Boards have been established in all federal ministries i.e. Agency Procurement
Board ‘A’ and Agency Procurement Board ‘B’. The Agency Procurement Board ‘A’ is empowered to decide on tenders
up to RM50 million for supplies and services, and up to RM100 million for works. The representative from the Ministry of
Finance is the permanent member of the Agency Procurement Board ‘A’ and his presence is mandatory to validate the
decision of the Board. This requirement is mainly to ensure that all procurement principles, policies, rules and regulations
and procedures are strictly adhered to. The Agency Procurement Board ‘B’ is empowered to decide on all tenders below
RM20 million without the presence of a representative from the Ministry of Finance.
Tenders above the values of RM50 million for supplies and services and RM100 million for works for Government
Ministries/Departments and tenders above RM100 million for statutory bodies must be forwarded to the Ministry of
Finance for final decision. Any decisions of the Agency Procurement Boards which are not unanimous must also be
forwarded to the Ministry of Finance for final decision.
and conditions, mostly safeguards and important for the successful implementation of the contract. The Letter of Intent is
not legally binding. The final decision on acceptance of the tender depends upon the successful negotiation and/or
acceptance of additional terms and conditions.
required to attest and return the Letter of Acceptance to the Government. If negotiations are necessary where the
Letter of Intent so requires, then upon completion of negotiations, the Letter of Acceptance is issued to the successful
bidder and it must be returned to the Government for the formalisation of contract. The Letter of Acceptance forms
a part of the contract documents and is legally binding.
to forward Performance Bonds based on stipulated rates according to the value of a contract. Performance Bonds must be
obtained from locally incorporated banks, insurance companies and financial institutions that are licensed to operate in
Malaysia. The current rates are as follows:
a) For Supplies and Services contract
i) 2.5 percent of contract value for contracts exceeding RM200,000 and less than RM500,000; and
ii) 5.0 percent for contracts exceeding RM500,000.
b) For Works contract 5.0 percent of the contract value exceeding RM200,000.
|Last Updated on Monday, 15 March 2010 16:58|