His Highness the Emir issued Law No. 17 of 2024
("Amending Law"), amending certain
provisions of the
law regulating tenders and auctions issued under Law No. 24 of 2015
("Tenders Law"), to ensure transparency
and cost-effectiveness in government tenders and auctions. The key
amendments of the Amending Law are as follows:
- Excluding the National Cyber Security Agency from the scope of application of the provisions of the Tenders Law.
- Granting the Minister of Finance ("Minister") the authority to determine the remuneration of members of committees responsible for conducting tenders, auctions, practices, competitions, direct agreements, and secretarial duties in government entities, as well as the criteria for entitlement and disbursement, pursuant to a decision issued by the Minister.
- Giving the committees the right to negotiate with bidders regarding the modification of their bids after the opening of envelopes, in the event that the best bid price is within the estimated value, and market prices have decreased before the award of the tender. The purpose of this amendment is to reduce the price to a level acceptable to the committees. If rejected, negotiation may take place with the bidder ranked next in order of preference, or the tender may be cancelled.
- The relevant government authority shall announce the final decisions issued in accordance with the provisions of the Tenders Law and its executive regulations, including decisions related to tender acceptance, exclusion, award, or cancellation. The announcement must be made on the standard state procurement website within two working days from the date the decision is approved by a committee or the chairman, as applicable, in accordance with the regulations set forth in the executive regulations of the Tenders Law.
- The Dispute Resolution Committee is authorised to issue a reasoned decision, urgently, in all administrative disputes arising prior to the conclusion of the contract, arising out of applying the provisions of the law and the executive regulations thereof. The committee retains the right to suspend the tender procedures until the grievance is resolved.
Notably, the Amending Law introduces several new provisions, including the following:
- (a) Each bidder has the right to file a grievance against the
award decision before the Dispute Resolution Committee within five
working days from the day following the date of the award
announcement on the standard state procurement website. The
committee is responsible for resolving the grievance within five
working days from the date its secretariat receives a request to
decide it. The concerned authority may not complete the award
process unless this period expires without a grievance, or a
decision is issued by the Dispute Resolution Committee stating the
validity of the award decision.
(b) In all cases, the bidder awarded the contract may not commence the required works before the contract is signed, and is not entitled to claim any compensation if it proceeds with the work in violation of this, even if the work was carried out at the request of the government authority.
- Based on a proposal by the Minister, and with the approval of
the Prime Minister, the Amending Law allows tenders to be conducted
for all or some government authorities through one or more
companies, provided the approval includes a statement outlining the
mechanism for tender selection and the method of their
operation.
- The Amending Law allows the department responsible for
regulating government procurement in the Ministry of Finance to
publish the results of the classification and evaluation of
contractors, suppliers, and service providers on the standard state
procurement website.
- The Amending Law also permits granting small, medium, and micro enterprises, as well as eco-friendly projects, certain benefits and exemptions in accordance with the provisions set forth in the executive regulations of the Tenders Law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
