Reform of the national procurement system

1. Reform of the national procurement system

2. Why the reform • Implementing the principles of the new constitution: • Fight against corruption (art 36 and 167) • Accountability and management control (art 1, 154); • Good governance • Addressing the inadequacies of the 2007 regulation; • Answering to the expectations of public procurement stakeholders and citizens; • Taking charge of the recommendations and propositions of international partners.

3. The method followed • A concerted and inclusive reform; • Information and compilation od proposals (website of SGG); • Progressive and pragmatic; • Integrated and global reform: • Legal dimension; • Governance dimension; • Capacities reinforcement dimension; • Dematerialization of procedures;

4. Reform major axes • The unity of the public procurement legal framework:

5. Major Axes • New tools at the service of the contracting authority: • A call for expression of interest: identification of potential competitors • Design-build contracts (turnkey basis) awarded through competition after the Prime Minister authorization

6. Major Axes • New tools at the service of the contracting authority: • Collective purchasing: • Mechanism reserved for purchasing supplies of the same nature • Composed of two or more contracting authority who shares the bidding phase; • Signing of an agreement creating the collective agreement and determining the coordinator and the modalities of the functioning of the collective

7. Major Axes • Simplifying the procedures and encouraging the competition: • Documents of the administrative file: • Tax certificate, certificate from National Social Security (CNSS), commercial register… • Are not required except from the bidder to whom the awarding of the contract is considered; • Documents of the technical file: • Current services: score indicating the human and technical resources of the bidder; • Non current and complex services, in addition to the resources score, letters of reference about achieved services

8. Major Axes • Simplifying the procedures and encouraging the competition: • Reorganising the composition of the call for tenders committee and the jury: • Removal random draw for the representatives of the contracting authority • Removal of the convening of the representative of the Ministry of Commerce • Presence of the representative of Ministry of Finance for procurements of more than fifty millions DH • The necessity of the presence of an architect from the administration in the jury.

9. Major Axes • Reinforcement of the transparency and the information of the bidders: • Publication of the estimate of the services cost; • Evaluation of the tender offer abnormally low or excessive in relation to the estimate of the contracting authority: • Excessive offer: more than 20%; • Offer abnormally law: less than 25% for works contracts and 35% for supply contracts and contracts for services other than studies.

10. Major Axes • Reinforcement of the transparency and the information of the bidders: • Procurement Methods: • Restricted tender: • Raising the threshold of this procedure to 2 millions DH; • Issuing an administrative certificate explaining the reasons of using restricted tender

11. Major Axes • Reinforcement of the transparency and the information of the bidders: • Procurement Methods: • Negotiated contract: • Dedication of the collegiality through the establishment of a “ negotiation committee”; • Abandoning contracts negotiated according trade usages. • Negotiated contracts with prior publication and competition: • Accuracy of the content of the negotiation report explaining specially the content of the negotiations, the value of the offers and the bidder chosen. • Signing of the report by the negotiation committee instead of the contracting authority • Publication in at least one national newspaper as well as in the public procurement portal.

12. Major Axes • Reinforcement of the transparency and the information of the bidders: • Procurement Methods: • Competition: • Granting of bonus to the best five projects whatever is the competition consistency; • Convocation of a representative from the ministerial department concerned with competition field to be in the jury; • Reduction of the timeframe: • For publishing the competition to 15 days instead of (21 and 40 as the case may be) • For informing the candidates with eligibility results to 5 days instead of 10 days • Extending the timeframe for inviting the competitors chosen from the eligibility phase to submit their projects to 40 days minimum • In case of consortium: the composition of the consortium cannot be modified between the date of submission of the application and the submission of the offers

13. Major Axes • Clarification of certain provisions related to framework agreement and renewable contracts: • Renewal for a maximum period of 3 and 5 years depending on the type of services; • The first year: the commitment is on the amount corresponding to the needs to be satisfied or the prorate of the considered period; • The final year: the commitment is on the amount corresponding to the needs to be satisfied or the remaining period; • The cancellation of the contract is imposed when the foreseen amount for a financial year is not committed

14. Major Axes • Clarification of provisions regarding study procurement: • Obligation to obtain the opinion of the government general secretariat before launching any legal studies for the drafting of legislative and regulatory texts; • Possibility of having a preliminary phase “ of definition” of goals and performance to achieve. • Awarding study procurement on the basis of weighting technical and financial scores for choosing the most economically beneficial offer.

15. Major Axes • Clarification of provisions regarding consortium: • The contracting authority cannot limit the participation in procurement exclusively to consortiums or require their form; • Each member of the consortium severally or jointly liable must have a certificate of qualification and classification or of approval when they are required; • Obligation for the leader of the consortium jointly liable to justify the required qualifications and class • Obligation for each member of the consortium jointly liable to justify the required qualification(s) and the class immediately < than required class

16. Major Axes • Encouragement of the national enterprise: • Reservation of 20% of the estimated amount of procurements to be launched in the financial year for the benefit of the national SME; • Assignment of procurement for the SME access • Subcontracting in favour of the SME; • Confirmation of the national preference; • Reviewing prices for works contracts whatever are their execution deadline. • Study contracts can be reviewed if the deadline ≥ 4 months

17. Major Axes • Moralization and good governance: • Annulment of the procedure: • By a signed decision of the competent authority • Publication of the annulment decision at the level of the public procurement portal • Communication of a copy of the annulment decision to the members of the call for tenders committee. • Obligatory audit and control for contracts that exceed: • Five millions DH inclusive of all taxes for state and public establishments contracts; • Three millions DH inclusive of all taxes for local authorities contracts • One million DH inclusive of all taxes for negotiated contracts • Development of aspects on which control and audit are based • Publication of the summary of the audit report at the public procurement portal

18. Major Axes • Moralization and good governance: • Limitation of the designation of authorised persons to the authorized officer and sub authorised officer • Determining the conditions of production or non production of contradictory estimates in case of orders forms; • Production of a note justifying the impossibility or the incompatibility of the service with having a competition • Limitation of derogations from 200.000,00 DH inclusive of all taxes to 500.000,00 DH inclusive of all taxes for orders forms

19. Major Axes • Moralization and good governance: • Preparation of the completion report for the contracts of more than one million DH in 3 months maximum after the final receipt of the services; • Prohibition of conflicts of interest for the members of the call for tenders committee on pain de nullity; • A certificate by the bidder in this solemn declaration that he is not in a conflict of interests situation; • Reinforcement of the fight against corruption

20. Major Axes • Competitive call for architectural services: • Procurement methods are: • Architectural consultations for the projects with global budget less than 20 millions DH excluding taxes and for developments operations; • Architectural competition is obligatory for projects with global budget more than or equal to 20 millions DH excluding taxes; • Negotiated architectural consultations in the same conditions of the negotiated contracts; • The cases of negotiated architectural consultations are notably: • National secret defence or public security, extreme urgency, contract holder default • Building repair and maintenance contracts

21. Major Axes • Competitive call for architectural services: • Architect remuneration: • Between 4 and 5% of the estimated amount of work for construction or work development and restoration services; • Between 3 and 4% for maintenance services and buildings reparation; • Fixed price per hectare in the architectural contract for developments operations; • Calculation of fees of the architect on the basis of the actual work achieved exclusive of: • VAT • Reviewing the prices • Compensation given to the successful tenderer • Penalties imposed on the successful tenderer • The architect fees are increased by the amount of the VAT • The fees amount can be modified by a decision of the prime minister upon the proposition of the minister in charge of finance

22. Major Axes • Progressive dematerialisation: • Publication of information and documents of call for competition at the public procurement portal; • Electronic bidding; • Electronic reverse auction; • Database of suppliers; • Electronic joint purchasing; • Modalities fixed by a decision from the minister in charge of finance

23. Conclusion • Roadmap for the implementation: • Texts preparation and accompanying measures: • GCC • Architect contract • Decisions • Reorganizing the procurement committee; • Launching of a training program • Project of the National Monitoring Office for Public Procurement

24. Thank you for your attention