Trade Agreement Limited Tendering Cannot Be Used: What You Need to Know
When it comes to procurement in the public sector, rules and regulations are in place to ensure a fair and competitive bidding process. One of these regulations is trade agreement limited tendering, which allows for a contract to be awarded without the usual open bidding process. However, there are certain circumstances where this method cannot be used, and it`s important to understand when that is the case.
Trade agreement limited tendering is often used when there is a need for urgency, or when there are only a limited number of suppliers who can provide the required goods or services. The process typically involves inviting a select group of suppliers to submit a bid, rather than opening it up to the public as with open tendering.
But there are limitations to when this method can be used. Under the World Trade Organization`s Agreement on Government Procurement (GPA), trade agreement limited tendering is only permitted under specific circumstances. The agreement sets out rules and thresholds for the use of limited tendering, and it is important for public authorities to ensure they comply with these rules or risk breaching international agreements.
One of the key restrictions is that it can only be used in certain circumstances, such as when there is an urgent need for goods or services or where there are only a limited number of qualified suppliers available. The GPA also sets out monetary thresholds which limit the value of contracts that can be awarded through limited tendering.
Another limitation is that the use of limited tendering must be transparent and fair. This means that the selection of suppliers must be based on objective criteria, and that all eligible suppliers must be invited to bid. If there are only a limited number of suppliers who can provide the required goods or services, the selection of those suppliers must be done in a way that ensures open and fair competition.
It`s also worth noting that while trade agreement limited tendering can be a useful tool in certain circumstances, it`s not always the best option. Open tendering can often be a more effective way to ensure competitive bidding and to get the best value for money.
In summary, trade agreement limited tendering is a procurement method that can be used under specific circumstances, but it`s important to ensure that it meets all the requirements set out by international agreements. If you`re unsure about whether limited tendering is appropriate for your procurement needs, it`s best to seek advice from a procurement professional who is experienced in navigating these regulations.