- Government Tenders and Procurement System: What's New in Regulations and Laws?

Introduction

Government tenders and procurement are fundamental approaches aimed at achieving transparency and protecting public funds. Through this system, the terms of contracting with contractors and suppliers are organized, contributing to a fair and competitive business environment. Given the importance of this topic and the need to keep up with changes, a new system has been issued to organize these competitions, making the business sector aware of the importance of adhering to the practices followed to achieve the desired goals.

Importance of New Regulations and Updates

Some may wonder, why do new regulations and laws matter? The answer is simple: these updates represent a major step towards enhancing efficiency and transparency in government procurement processes. These changes make it easier for companies to understand the requirements, thereby increasing their chances of competition.

1. Achieving equality: The new regulations provide tools that ensure equal opportunities among companies.
2. Enhancing transparency: The system helps reduce corruption opportunities by following clear and announced procedures.
3. Facilitating business: The new regulations provide simplified procedures for companies to comply with, which enhances speed of execution.

New Standards for Contracting

With the new changes, the new standards that companies must adhere to include important amendments, such as:

1. Providing guarantees: Companies are required to provide financial guarantees to protect state rights.
2. Use of modern technologies: Encourage government entities to use electronic portals to facilitate all procedures.
3. Prior approval: Requiring ministry approval before some important decisions.

Why Do New Regulations and Laws Matter?

The new regulations and laws in the field of government tenders and procurement reflect Saudi Arabia's ambitious vision regarding achieving sustainable development and transparency.

Importance of Regulation and Transparency

1. Organizing procedures: By establishing clear rules on how to deal in tenders and procurements, opportunities for exploitation of influence and personal interests can be reduced.
2. Achieving economic efficiency: The new laws encourage the effective use of financial resources.
3. Enhancing competition: These regulations provide a broader space for competition among suppliers, leading to improved quality of services and products offered.

Working to Improve Trust

1. Short period for studying offers: The new law ensures specified periods for reviewing offers.
2. Transparency in processes: Adopting electronic systems such as the "Itimad" portal facilitates participation and enhances transparency.

Key Aspects of the Government Tenders and Procurement System

Definition of the Government Tenders and Procurement System

1. Transparency: Providing clear information about all procedures related to tenders.
2. Competitiveness: Encouraging competition among suppliers to ensure obtaining the best offers.
3. Facilitation: Simplifying procedures through the use of technology.

Objectives and Principles of This System

1. Organizing procedures: Regulating tenders and procurements to prevent control by personal interests.
2. Achieving economic efficiency: Implementing projects at fair competitive prices.
3. Enhancing integrity: Providing fair treatment for contractors and suppliers.

Key Updates and Amendments in Laws

Changes in Public Tender Regulations

1. Increasing transparency: Providing detailed information to competitors about all aspects of tenders.
2. New procedures: Monitoring offers based on objective criteria to ensure fairness.
3. Abolishing some obstacles: Removing administrative hurdles that interrupted the process.

Developments in Government Purchasing Operations

1. The "Itimad" electronic portal: Enhancing transparency and easy access for relevant parties.
2. Accelerating procurement procedures: Completing purchasing procedures more quickly through the electronic platform.
3. Reducing costs: Conducting purchasing operations at competitive prices aligned with the market.

Impact of New Aspects on the Business Field

Enhancing Competitive Opportunities

1. Clear standards: Presenting offers that conform to specified standards reduces ambiguity.
2. Preference for local content: Giving priority to national products and services.

Improving Contracting Procedures

1. Accelerating operations: Completing procedures via the "Itimad" electronic portal more quickly.
2. Reducing costs: Using more efficient purchasing methods to lower cost.

Effects on Transparency and Integrity Levels

1. Mechanisms for performance evaluation: Evaluating contractors based on objective criteria.
2. Education and development outcomes: Programs to enhance government agencies' skills in managing tenders.

How Can Companies Comply with New Laws?

Understanding Laws and Regulations

1. Reviewing legal texts: Reading the new system thoroughly to understand the basic principle.
2. Communicating with experts: Obtaining legal advice to facilitate understanding of the laws.

Updating Documents and Internal Processes

1. Modifying contract templates: Ensuring all contracts include the required terms and specifications.
2. Creating an internal evaluation system: Establishing comprehensive criteria to evaluate performance in line with new requirements.

Utilizing the "Itimad" Electronic Portal

1. Registration and interaction: Registering on the "Itimad" portal to benefit from electronic advantages.
2. Effective communication: Using the platform to communicate with government entities.

Developing Internal Skills

1. Continuous training: Providing training courses for employees to understand new laws and technologies.
2. Knowledge exchange: Encouraging the exchange of ideas to improve processes and effectively implement regulations.