New Procurement Law for Up To $1M

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FINANCE Minister Colm Imbert has signed into law the Public Procurement and Disposal of Public Property (Simplified Procurement) Regulations, 2024 towards streamlining procurement processes for goods, services, and works valued up to $1 million.

In a press release from the Ministry of Finance on Tuesday, Imbert said that these regulations would enhance the ease of doing business within procurement proceedings while ensuring adherence to the objectives of the Public Procurement and Disposal of Public Property Act.

The regulations, published as Legal Notice No. 65 of 2024, are the culmination of months of collaborative efforts between the Finance Minister and the Office of Procurement Regulation (OPR).

They are built upon an amendment in section 58A of the Public Procurement and Disposal of Public Property Act, which was enacted by Parliament in July 2023.

The release stated that a key aspect of the regulations is the introduction of a streamlined procurement process for both public bodies and participating suppliers, contractors, and consultants, particularly for transactions up to $1 million.

 These transactions will be categorised into micro-procurements, for values not exceeding $75,000, and small-scale procurements, for values between $75,000 and $1 million, inclusive of taxes, duties, and other charges.

Imbert noted that these regulations do not diminish the regulatory oversight of the OPR.

Minister Imbert highlighted that they enhance the institution’s role. The OPR will now issue guidelines on due diligence requirements for micro and small-scale procurements, maintain registries of suppliers/contractors/consultants, and oversee the registration processes for procurement entities.

The regulations preserve the applicability of existing procurement methods to micro and small-scale procurements. 

They also introduce new provisions such as direct contracting and the utilisation of verbal quotations, which must be documented in writing and maintained in prescribed formats.

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