Checks for government agencies contracting with companies that do not have a regional office in the Kingdom

The authorization of the superior authorities on controls has been issued for public bodies that enter into contracts with companies that do not have a regional office in the Kingdom, with the Ministries of Investments – Finance – General Authority for Foreign Trade, in the definition of standard and checks, assuming the relevant international obligations of the Kingdom have been taken into account. The checks aim to regulate the contracting of public bodies with Companies that do not have a regional office in the Kingdom, or with any related party. The checks confirmed that it is not eligible for the government bodies, in the conduct of their work and in securing their purchases, to contract with businesses which do not have a regional office in the Kingdom or any related party other than in compliance with the provisions of the controls. All government agencies are obliged to implement controls, whether they are subject to the provisions of the Government Procurement and Procurement Act or any other law or regulation. The controls are complementary to the provisions applied by government agencies in carrying out their work and in putting in secure their purchases, with the exception of works and purchases whose estimated cost does not exceed an amount of (one million riyals). The Minister may, for needs of the public interest, decide on the modification of tale amount, suppress tale derogation or temporarily suspend the works with it, or those carried out outside the Kingdom.

General controls

The Ministry of Investments, in agreement with the Ministry and the General Authority for Foreign Trade, on the basis of rules and controls to be agreed upon, prepares the list of companies that do not have a regional office in the Kingdom. The list is updated periodically – or whenever the need arises and the list is published in the electronic portal

Without prejudice to the provisions of the statutory provisions applied by public bodies. In carrying on their business and in securing their purchases, the controls do not prevent companies which do not have a regional office in the Kingdom or any related party from bidding for any public tender offered by any of these entities, provided that they subjects not to accept what is communicated by such companies or related parties, unless in One of the following two cases:

There is no more than one technically acceptable proposal.

– The offer submitted by the company that does not have a regional office in the Kingdom or by the interested party is the best offer after the overall evaluation from a technical point of view, and is economically lower (25%) or higher than the value of the second best offer .

Without prejudice to the provisions of the statutory provisions applied by public bodies in carrying out their work and in ensuring purchases, public bodies cannot invite companies that do not have a regional office in the Kingdom or related subjects to participate in limited-number tenders. , except in one of the following two cases:

– The absence of more than one qualified competitor other than companies that do not have a regional office in the Kingdom or related parties to carry on the business or secure the required purchases.

– The existence of an emergency situation which can only be addressed by inviting companies that do not have a regional office in the Kingdom or interested parties.

Government bodies contracting with any business that does not have a regional office in the Kingdom or a related party – in compliance with the law – they are required to draw up a report including the reasons that prompted them to contract, and to provide the Public Control Office and the Authority for Spending Efficiency and the Public Administration with a copy of the same, within a deadline greater than (thirty) working days

From the date of signing the contract.

The commission is chaired by a representative of the Ministry, made up of:

A representative of the Ministry of Investments.

– A representative of the Local Content and Government Procurement Authority

A representative of the Authority for the efficiency of public spending and projects

– A representative of the Committee on Emiratisation and Balance of Payments

– a number not exceeding (three) members with experience and specialization, to be appointed by resolution of the Minister

Pursuant to the regulation, a committee called the Committee for exemption from the discipline of public entities affiliated with companies that do not have a regional office in the Kingdom and related parties, connected to the Ministry, must be set up.

The commission is responsible for examining requests from government entities to exclude companies that do not have a regional headquarters in the Kingdom and related parties from controls, and to resolve in merit.

– The committee has a general secretariat based in the ministry, chaired by a general secretary designated by the minister

– The committee can form working groups among its members or others, to support the committee in its work.

– The Committee can ask for assistance when necessary – from whom it deems expert and specialized, at a local or international level.

Governmental entities may submit to the Committee a request for exclusion from inspections of a project or projects or a specific period of time of a company that does not have a regional office in the Kingdom or a related party, provided that the request is made before the the tender or direct procurement procedures are launched and that the application contains the following:

– The name of the company that does not have a regional office in the Kingdom or the data subject to be excluded

Reasons and justifications for the request and any studies or reports to support it

– The project (or projects) in issue or related time period

Goods and services in question

– Estimated cost of the contracts that should be concluded after the approval of the application.

– The public body may participate in the meeting of the committee designated to examine its application to discuss the application without having the right to vote on the decision to be taken in this regard, provided that the body expresses its willingness to participate at the time of the submission of the application.

– In case in if the public body expresses its willingness to participate in the meeting, and its representative is absent, the committee will complete its work and the body will not have the right to request the reconvening of the meeting.

The government body submitting the application can oppose the decision of the commission issued on this matter before the minister, and the minister will issue his decision in regarding the objection and the decision will be final and effective from the date of its issuance.

The implementation of these controls will be effective as of 6/19/1445 AH.