RESTRICTED
WORLD TRADE S/WPGR/W/11/Add.16
6March 1997
ORGANIZATION
(97-0903)
Working Party onGATS Rules Original: English
COMMUNICATION FROM SINGAPORE
Response totheQuestionnaire onGovernment Procurement ofServices
Thefollowing communication isbeing circulated attherequest ofSingapore toMembers of
theWorking Party onGATS Rules.
_____________
I. EXISTING PROCUREMENT REGIMES
Definition
1. What isthedefinition ofgovernment procurement employed incompleting this
questionnaire?
Government procurement isdefined asprocurement ofgoods andservices bytheMinistries
andDepartments oftheGovernment ofSingapore aswellasStatutory Boards.
Administrative structure
2. Howaregovernment procurement activities administered? Towhatextent areprocurement
activities centralized? Please specify theidentity ofanycentral procurement agencies and
theirrespective responsibilities.
Thebulkofgovernment procurement activities hasbeendecentralised toindividual Government
Ministries andDepartments aswellasStatutory Boards, whowillmake theirownarrangements.
However, thereareseveral centralised government procurement functions which areperformed
bythefollowing entities:
(i) Ministry ofFinance (Budget Division)
- Formulate thegovernment procurement policies andguidelines which need
tobecomplied withbyallGovernment Ministries andDepartments aswell
asStatutory Boards.
(ii) Expenditure &Procurement Policies UnitoftheMinistry ofFinance (Budget Division)
- Perform centralised purchasing ofaverylimited number ofproducts suchas
paper andriceforGovernment Ministries andDepartments.S/WPGR/W/11/Add.16
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- Register thesuppliers forgovernment procurement inrespect ofgeneral goods
andservices.
(iii) Pharmaceutical Department oftheMinistry ofHealth
- Perform centralised purchasing ofcertain pharmaceutical products for
Government Ministries, Departments andStatutory Boards.
- Register thesuppliers forgovernment procurement inrespect ofpharmaceutical
products.
(iv) Construction Industry Development Board
- Register thesuppliers forgovernment procurement inrespect ofconstruction
services.
Laws andregulations inforce
3.(a) Please specify thelaws, regulations, rules, guidelines, decrees, decisions andother measures
governing government procurement. What isthescope oftheirapplication? Inparticular,
please describe anyexemptions thatexist. Please provide abrief summary ofthecontent
ofeachofthese measures.
Section BoftheInstruction Manual No.3issued bytheMinistry ofFinance (Budget Division)
setsdown thepolicies andguidelines inrespect ofgovernment procurement. Thisisan
administrative procedure anditapplies toallGovernment Ministries andDepartments aswell
asStatutory Boards.
Currently, there isonlyonelawwhich isrelated togovernment procurement. Itisthe
GovernmentContractsAct(Chapter118)whichprovidesalistofpublicofficerswhocanexecute
andsigncontracts onbehalf ofGovernment. ThisActapplies toGovernment Ministries and
Departments.
(b) Does theprocurement regime distinguish between theprocurement ofgoods andservices?
Ifso,thenhowistheapplication ofrulesdetermined incases ofjointprocurement involving
bothgoods andservices?
Thesame procurement regime isapplied regardless ofwhether theprocurements aremade
forgoods orservices.
Procurement procedures applied
4.(a) What procedures arefollowed intheprocurement process?
TheSingapore Government adopts thefundamental principles offairness, openness and
competitiveness foritsgovernment procurement policies. Thegovernment procurement
procedures arebased onatendering system. Tenders areinvited byusing theopen, selective
orlimited tendering procedures.
(i) Open procedures areusedforalltenders exceeding S$30,000. Anopentender requires
thatthetender begiven thewidest possible circulation toattract thelargest numberS/WPGR/W/11/Add.16
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oftenderers. Ontheaverage, opencompetition accounts forabout 85percentofthe
totalnumber oftenders called orabout 60percentofthevalue oftenders, when
excluding defence procurement contracts.
(ii) Selective tendering isnormally conducted foralltenders under S$30,000. Itisalso
used inexceptional cases where theproject isconfidential orsensitive. Insuch
instances, invitations totender aresenttoselected firms.
(iii) Limited tendering isusedincases involving purchase ofspecialized systems and
equipment from solesuppliers. Itisalsousedincases ofemergency orwhen itis
manifestly inthepublic interest. Thecircumstances andreasons forgranting such
waivers areendorsed bythesenior management oftheprocuring entities andsubmitted
forapproval totherelevant tenders approving authority.
(b) Under whatcircumstances aredifferent procedures used? Forinstance, ifthemethod used
depends onthevalue oftheprocurement, thethresholds should begiven.
Please refertotheanswer 4.(a)above.
(c) What arethetimelimits forsubmission ofbids?
Theminimum timelimits forsubmission ofbidsforcontracts which areadvertised locally
arenotlessthan3or8weeks forconventional anddesign-and-build projects respectively.
Andifthecontracts areadvertised bothlocally andoverseas, thentheminimum period isnot
lessthan12weeks. (Theexisting procedures arenowunder review toensure compliance with
theWTO-AGP (1994 Agreement onGovernment Procurement under theWorld Trade
Organization)).
Publicity forinviting tenders
5.(a) How areintended procurements publicised? Areinvitations totender published? Ifso,
where, andinwhat languages?
Under theopen tendering procedure, thetender isrequired tobegiven thewidest possible
circulation toattract thelargest number oftenderers. Thisisdonebyadvertising thetenders
inthelocalorinternational press. Publishing intheSingapore Government Gazette maybe
doneifitisadvantageous todoso.English isthepreferred language forthenotices published.
(Theexisting procedures arenowunder review toensure compliance withtheWTO-AGP).
(b) Dotheextent andformofpublicity differ according totendering procedures applied and/or
onthevalue ofprocurement?
Please refertotheanswer 4.(b) above .
(c) What details oftheintended procurement arenormally published? Isthere aminimum set
ofinformation thatisrequired tobepublished? Ifso,please specify.
Theadvertisements onintended procurement willprovide theminimum information necessary
forfirms toknow what isrequired, overwhat period, andwhether theissue oftenders is
restricted toregistered suppliers under specific Supply and/or Financial categories.S/WPGR/W/11/Add.16
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Advertisements willasktenderers toapply totheprocuring entities fortender forms. (The
existing procedures arenowunder review toensure compliance withtheWTO-AGP).
(d) Arethere anycharges forobtaining thefullsetoftender documents? Ifso,please specify
anddescribe howthese charges areset?
Charges arenormally imposed forobtaining thefullsetoftender documents. Thecharges
aresetbased onthecostrecovery basis.
(e) Areelectronic means usedtoadvertise procurement opportunities? What isthenature of
systems thatareinplace? Aredifferent tendering provisions applied tocontracts advertised
inthismanner? Ifso,please describe.
Currently, theinteractive computer network "Teleview", which isSingapore 'sownhybrid
version ofvideotex, provides information ongovernment procurement opportunities. However,
astheparticipation inTeleview isvoluntary, notalltheprocurement opportunities canbefound
inTeleview.
Amore advance electronic tendering information system isnowbeing developed. Itwillallow
allgovernment procurement opportunities through opentendering procedures tobepublished
intheInternet.
Thesame tendering provisions areapplied regardless ofwhether thecontracts areadvertised
inthetraditional orelectronic means.
Requirements laiddown forpossible suppliers
6.(a) Arethere registration, residence orother requirements forpotential suppliers?
Alllocalandforeign suppliers interested inparticipating inSingapore 'spublic sector tenders
arerequired toregister asgovernment contractors under theappropriate Supply andFinancial
categories withtheExpenditure &Procurement Policies Unit, Pharmaceutical Department or
Construction Industry Development Board.
Companies orfirms seeking registration willhavetheirbackground, finances andability to
provide asatisfactory service checked bytheregistration authorities, andarerequired topay
anon-refundable registration fee.Theapproved registration willbevalid for3years. Non-
registered firms could beallowed toparticipate onlyintenders fornon-recurring goods, services
orworks where localexpertise islacking, orincases where thelocalcontractors areunable
toexecute theircontracts, orareunable toreach acertain highstandard.
Thecurrent compulsory registration system isnon-discriminatory. Itisapplicable tobothlocal
andoverseas suppliers. Theobjective oftheregistration system istofacilitate thequalification
process. Itensures thatthesameobjective criteria arebeing applied inthequalification process.
Thecompulsory registration process means thatthere isapoolofinformation oneachregister
firmalready inthepossession oftheprocuring entity. Thisreduces thetimeneeded toexamine
thequalifications ofafirmduring thetender evaluation. Theregister suppliers alsobenefit
astheyneednotprovide thesame information alloveragain eachtimetheyparticipate ina
public tender.
(Taking intoaccount theconcerns expressed bysome WTO-AGP members, Singapore will
review itscurrent compulsory registration system withtheview toremove anyunintendedS/WPGR/W/11/Add.16
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effects ofdiscrimination andoflimited tendering initsopentendering system thattheexisting
registration system mayhaveonWTO-AGP members).
(b) What isthenature ofanyconditions forparticipation required from suppliers -such as
financial guarantees, commercial standing andtechnical qualifications? Dotheconditions
ofparticipation varyaccording tothenature ofthetender process and/or thevalue ofthe
intended procurement?
Forthefirstquestion, please refertotheanswer 6.(a)above. Asforthesecond question, the
conditions ofparticipation varyaccording tothetypeoftendering procedures asindicated in
theanswer 4.(a) above. These conditions arenotaffected bythevalue oftheintended
procurement.
(c) Dothere existlistsofapproved suppliers? Ifso,what aretheprocedures forchecking the
capability offirms applying forinclusion ontenderers 'mailing lists? Arelistsofapproved
suppliers, ifany,regularly reviewed/updated?
Please refertotheanswer 6.(a)above. Thelistofapproved suppliers isupdated asandwhen
aneworrenewal application isapproved. Interested suppliers mayapply fortheregistration
process atanytime. Thelistisavailable toalltheGovernment Ministries andDepartments
aswellasStatutory Boards.
Criteria forassessing bidsandawarding contracts
A. Commonwealth Procurement
7.(a) What criteria aretaken intoaccount intheaward oftenders? Arecriteria foraward of
contracts made available inadvance topotential suppliers?
Tenders areawarded tothelowest bidmeeting tender specifications infullorverysubstantially.
(b) Isprocurement subject toanyoffset provisions, suchaslocal content, technology transfer
orcountertrade requirements?
Theprocurement isnotsubject toanyoffset provisions.
(c) Ispreference given toanyparticular enterprises orgroup ofenterprises? Ifso,please specify.
Singapore doesnotgivespecific preferences todomestic suppliers ingovernment procurement
exceptforlocalcontractorswithconsistentgoodperformanceingovernmentconstructionworks.
(Theexisting procedures arenowunder review toensure compliance withtheWTO-AGP).
(d) Dotheprocurement criteria differ according tosector orregion oftheeconomy?
Thesame procurement criteria arebeing used.
(e) What isthemargin ofchoice ordiscretion allowed tothepurchasing authority? What does
theextent, ifany,ofdiscretion allowed depend upon?
Generally, nodiscretion isallowed asthegovernment procuring entities arerequired toaward
tenders tothelowest bidmeeting tender specifications infullorverysubstantially. UnderS/WPGR/W/11/Add.16
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exceptional circumstances, theaward maybemade toother thanthelowest complying tender.
However, suchaward would usually betothemost advantageous tender.
Disclosure ofbidsreceived andcontracts awarded
8.(a) How aretenders received, registered andopened?
Tenders willbereceived attheoffice ofthegovernment procuring entity issuing thetender
invitation uptothestipulated timeontheclosing date. They arerequired tobedeposited in
designated tender boxes which willbemade accessible totenders during normal working hours
andwillremain locked. Every effort willalsobemake bytheprocuring entity todeposit the
tendersreceivedthroughthepostpromptlyandintothecorrecttenderbox.Anytenderdelivered
afterthestipulated time, fromwhatever cause arising willnotbeconsidered andwillbereturned
tothetenderer withthereason stated. Theprocuring entities areprohibited fromopening the
tender boxes before thestipulated closing dates. Thetenders willbeopened byaTenders
Opening Committee. (Theexisting procedures arenowunder review toensure compliance
withtheWTO-AGP).
(b) Areentities required topublish details ofthecontracts awarded and/or notify unsuccessful
tenderers?
Thegovernment procuring entities arerequired topublish details ofthecontracts awarded.
They arenotrequired tonotify theunsuccessful tenderers. (Theexisting procedures areunder
review toensure compliance withtheWTO-AGP).
(c) Areentities required topublish, orprovide tounsuccessful bidders, pertinent reasons why
theirbidwasrejected?
Thegovernment procuring entities arenotrequired topublish, orprovide tounsuccessful
bidders, pertinent reasons whytheirbidwasrejected. (Theexisting procedures arenowunder
review toensure compliance withtheWTO-AGP).
Treatment granted todomestic andforeign services and/or suppliers
9. What laws, regulations, procedures orpractices accord domestic services and/or suppliers
treatment more favourable thanthataccorded toforeign services and/or suppliers, oraccord
services and/or suppliers ofaMember more favourable treatment thanthose ofanother
Member? Please specify how, ifatall,more favourable treatment isaccorded. Please also
specify theworking definition of"domestic" inrelation todomestic services andsuppliers.
(i) Singapore isamember ofthe1977Agreement onASEAN (Association ofSouth East
Asian Nations) Preferential Trading Arrangement. Article 7oftheAgreement requires
theASEAN countries toaccord eachother apreferential margin of2,5percent,which
should notexceed US$ 40,000 worth ofpreferences pertender, inrespect of
international tenders forgovernment procurement ofgoods andauxiliary services from
untied loans. Thepreferential margin should beapplied onthebasis ofthelowest
evaluated andacceptable tender.
(ii) Preferences aregiven tolocal contractors with consistent good performance in
government construction works. Under Singapore 'sPreferential Margin Scheme for
Construction Quality, localcontractors which meettheeligibility criteria ofobtainingS/WPGR/W/11/Add.16
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anAverage CONQUAS (Construction Quality Assessment System) Score of65for
his3mostrecently completed projects, willbegiven apreference of0.2percentfor
every point itscores above 65.Acontractor 'sperformance intheexecution ofthe
contract willbeassessed bytheprocuring agency andtheConstruction Industry
Development Board. Thecontractor willbeawarded thecontract ifhistender price
doesnotexceed thelowest tender bythecomputed preferential margin. Theamount
ofpremium issubject toaceiling based onthetotalvalue ofthescored projects that
qualify thecontractor forthepremium, themaximum amount thatacontractor can
enjoy being 5percentorS$5million, which everislower. Ifafirmisgiven
preferential margin under building works, itwillnotbeabletousethistendering
advantage forprojects under civilengineering works andviceversa. (Theexisting
procedures arenowunder review toensure compliance withtheWTO-AGP).
Procedures forhearing andreviewing complaints/appeals
10. What, ifany, aretheprocedures available forparties, domestic andforeign, tolodge
complaints against theaward ofacontract? Please provide details.
TheMinistry ofFinance (Budget Division) investigates complaints/appeals fromthesuppliers
andinitiates anyremedy action ifthisisdeemed necessary. (Theexisting procedures areunder
review toensure compliance withtheWTO-AGP).
II. MEMBERSHIP OFPLURILATERAL, REGIONAL AND/OR BILATERAL AGREEMENTS
11. IstheMember party toanyplurilateral, regional and/or bilateral agreements withprovisions
ongovernment procurement? Ifso,please describe therelevant provisions.
Memberships:
(i) Memberofthe1979AgreementonGovernmentProcurementundertheGATT(General
Agreement onTariffs andTrade);
(ii) Member ofthe1977 Agreement onASEAN Preferential Trading Arrangements;
(iii) Member oftheAPEC (Asia-Pacific Economic Cooperation); and
(iv) Observer totheWTO-AGP. On20September 1996, theCommittee onGovernment
Procurement accepted Singapore 'saccession totheAgreement. Singapore willhave
uptoOctober 1997 toadjust itsgovernment procurement policies andprocedures so
astoensure conformity withtherequirements oftheAgreement.S/WPGR/W/11/Add.16
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III. ECONOMIC IMPORTANCE OFSERVICES PROCUREMENT
12.(a) Please provide statistics (ifavailable) onthenumber andvalue ofservices procurements
- onbothanaggregate andsectoral basis;
- byorigin ofservices andsuppliers.
Thegovernment procurement statistics fortheyear1995 areasfollows:
Contracts
Total S$Goods
S$Services
S$Construction
Services S$
9.6billion 3.8billion 5billion 18.4billion
(b) Please provide statistics (ifavailable) onthe
- share ofservices procurement intotalprocurement;
- share ofprocurement ofeachservice intotaldomestic output oftheservice;
- share ofprocurement ofeachservice intotaldomestic consumption oftheservice.
Information notavailable.