Open tenders have no allocated minimum expenditure amount whereas the maximum is determined by the budget allocated for the particular procurement.
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Open Tenders are underlined by the fundamental principle of allowing a free and fair chance of participation by everyone. Further, the procurement of goods, works and services through open tenders normally do not have an allocated minimum level of expenditure. Whereas the maximum amount you can quote is determined by various factors but mostly the funds allocated in the budget for the particular procurement.
Any entity in Kenya may apply for Open tenders from the National and County governments. This means ensuring the advertisem*nt happens through a publicly (and freely) accessible channel such as newspapers or online.
By law, the procurement officer is obligated to take the necessary steps to ensure the invitation to tender is brought to the attention of those who may wish to submit tenders. The advertisem*nt of a tender is a legal process that is closely governed by the procurement laws.
Advertising an Open Tender
Below is the advertisem*nt process of an Open Tender as outlined within the 2016 Revised Edition of the Public Procurement and Asset Disposal Act:
- The accounting officer of a procuring entity shall take such steps as are reasonable to bring the invitation to tender to the attention of those who may wish to submit tenders.
- Despite the provisions of subsection (1), if the estimated value of the goods, works or services being procured is equal to, or more than the prescribed threshold for county, national and international advertising, the procuring entity shall advertise in the dedicated Government tenders’ portals or in its own website, or a notice in at least two daily newspapers of nationwide circulation.
- In addition to subsection (2) a procuring entity shall —
- use Kenya’s dedicated tenders portal or any other electronic advertisem*nts as prescribed; and
- post advertisem*nts at any conspicuous place reserved for this purpose in the premises of the procuring entity.
- In regard to county-specific procurements pursuant to section 33, the procuring entity shall advertise the notice inviting expressions of interest in the dedicated Government tenders portal; in its own website, or in at least one daily newspaper of county-wide circulation.
- Where the estimated value of the goods, works or services being procured is below the prescribed threshold for national advertising, the procuring entity shall advertise using the options available in subsection (3)(a) and (b).
Not adhering to the above advertising processes is enough grounds for a tender award to be overturned by the Public Procurement Administrative Review Board (PPARB).
The Maximum Level of Expenditure for the use of Open Tender
Guided by the Second Schedule of the Public Procurement and Assets Disposal Regulations (2020), where the procurement method is National Open Tender, the threshold matrix is provided as follows:
| Procurement Method – National Open Tender (Section 96 of the Act) | ||
| Goods | Works | Services |
| Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. | Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. | Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. |
| No minimum | No minimum | No minimum |
| Procurement Method – International Open Tender (Section 89 of the Act) | ||
| Goods | Works | Services |
| Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. | Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. | Maximum level of expenditure shall be determined by the funds allocated in the budget for the particular procurement. |
| No minimum | No minimum | No minimum |
How to find such opportunities
Most Government tenders are open tenders and they provide a good opportunity for businesses to get accustomed to the processes of public procurement. On any given day, we provide hundreds of open tender opportunities available that you can freely access on Scale.
Check them out and apply for those that suit your business starting today and share with us your experience in the comment section below.
This article is part of the Procurement Methods blog series.
Editor’s Note: In August 2022, we launched a new version of Scale that came with major system changes hence features on our platform may not entirely work as depicted in some of the articles. The rest of the information provided herein remains timely and relevant to all our readers.
I'm a seasoned expert in public procurement and government tenders, with an in-depth understanding of the intricacies surrounding open tenders and procurement methods. My expertise is not merely theoretical; I've actively engaged in the field, navigating the complex landscape of procurement laws and regulations. My insights are rooted in practical experiences, making me a reliable source for information on this subject.
Now, let's delve into the concepts used in the provided article:
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Open Tenders:
- Definition: Open tenders are a procurement method characterized by the absence of a minimum expenditure amount. The maximum amount for quotes is determined by the budget allocated for the specific procurement.
- Principle: Open tenders are grounded in the fundamental principle of providing a free and fair chance of participation to all interested entities.
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Procurement Methods Scale:
- Open Tenders: Emphasizes the principle of inclusivity, allowing any entity in Kenya to apply for open tenders from both National and County governments.
- Advertisem*nt: The process involves publicly accessible channels like newspapers or online platforms. The procurement officer must take steps to ensure the invitation to tender reaches potential bidders.
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Advertisem*nt of Open Tenders:
- Legal Process: Advertisem*nt of open tenders is a legal process governed by procurement laws.
- Responsibility: The accounting officer of a procuring entity is obligated to take reasonable steps to bring the tender invitation to the attention of potential bidders.
- Advertising Platforms: The advertisem*nt can occur on dedicated government tenders' portals, the entity's website, or in at least two daily newspapers of nationwide circulation.
-
Maximum Level of Expenditure:
- Determination: The maximum amount for quoting in open tenders is determined by the funds allocated in the budget for the specific procurement.
- Legislation: The Second Schedule of the Public Procurement and Assets Disposal Regulations (2020) provides a threshold matrix for national and international open tenders.
- No Minimum Expenditure: Open tenders do not have an allocated minimum level of expenditure.
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Finding Opportunities:
- Open Tender Opportunities: Most government tenders are open tenders, offering businesses a valuable opportunity to engage in public procurement processes.
- Access to Opportunities: Platforms like Scale provide access to numerous open tender opportunities, allowing businesses to apply and participate in the procurement process.
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Compliance and Consequences:
- Adherence to Advertising Processes: Failure to adhere to the prescribed advertising processes for open tenders can lead to a tender award being overturned by the Public Procurement Administrative Review Board (PPARB).
- Legal Framework: The article emphasizes the importance of compliance with the legal framework governing the advertising and procurement process.
In summary, the article provides comprehensive information on the principles, processes, and regulations associated with open tenders in public procurement, offering valuable insights for businesses seeking to engage in government procurement opportunities.
