The permission of higher authorities has been issued for the control of state bodies concluding contracts with companies that do not have a regional headquarters in the Kingdom, with the ministries of investment – finance – the General Directorate of Foreign Trade, in setting standards and controls, taking into account the relevant international obligations of the Kingdom. The control aims to regulate the conclusion of contracts by public authorities with companies that do not have a regional headquarters in the Kingdom, or with any related party. The Control has confirmed that it is unacceptable for public authorities, in carrying out their work and securing their purchases, to enter into contracts with companies that do not have a regional headquarters in the Kingdom, or with any related party, except in accordance with the provisions of the control. All government agencies are required to exercise control, whether or not they are subject to the provisions of the Public Tenders and Procurement Act or any other laws or regulations. their purchases, with the exception of works and purchases, the estimated cost of which does not exceed the amount (one million rials). The Minister may, in accordance with the requirements of the public interest, decide to change this amount, cancel this exception or temporarily suspend work with him or work that is carried out outside the Kingdom.
General Controls
The Ministry of Investment, in consultation with the Ministry and the Directorate General of Foreign Trade, on the basis of agreed standards and controls, will prepare a list of companies that do not have a regional headquarters in the Kingdom. The list is updated periodically – or as needed, and the list is published on the electronic portal.
Without prejudice to what is required by the statutory provisions applied by public authorities. In carrying out their business and securing their procurement, the controls do not prevent companies not having a regional headquarters in the Kingdom, or any related party, from submitting proposals to any public competition offered by any of these organizations, provided that these organizations do not accept that, what is represented by these companies or related parties, except for one of the following two cases:
There is no more than one technically acceptable proposal.
– An offer submitted by a company that does not have a regional headquarters in the Kingdom or a relevant party is the best offer after the overall evaluation from a technical point of view and is financially less (25%) or more than the cost of the second best offer.
Without prejudice to what is required by the legal provisions applied by public authorities in carrying out their work and securing their procurement, public authorities may not invite companies that do not have a regional headquarters in the Kingdom, or any related party, to participate in restricted competitions. they offer, except in one of the following two cases:
– Absence of more than one qualified competitor other than companies not having a regional headquarters in the Kingdom or related parties to conduct business or provide necessary procurement.
– The presence of an emergency that can only be handled by inviting companies that do not have a regional headquarters in the Kingdom or relevant parties.
Government agencies that have contracted with any company that does not have a regional headquarters in the Kingdom or a related party, in accordance with the provisions, are required to prepare a report stating the reasons that prompted them to enter into a contract and provide the Audit Office and the Office for Cost Efficiency and state projects with a copy within a period not exceeding (thirty) business days.
Since the signing of the contract.
The Committee is chaired by a representative of the Ministry, consisting of:
Representative of the Ministry of Investments.
– Representative of the Department of Local Content and Public Procurement
Representative of the Office for Public Expenditure and Project Efficiency
– Representative of the Committee on Emiratization and Balance of Payments
– The number, not exceeding (three) members with experience and specialization, is appointed by the decision of the Minister.
In accordance with the rules, a committee, called the Committee for exemption from the rules of public institutions that enter into contracts with companies that do not have a regional headquarters in the Kingdom, and related parties, which is associated with the Ministry, must be formed.
The Committee is considering applications from government agencies to exclude from control companies that do not have a regional headquarters in the Kingdom, and related parties, and making decisions on them.
– The committee should have a general secretariat based in the ministry, headed by a general secretary appointed by the minister.
– The committee may form working groups from among its members or other persons to support the committee in its work.
– If necessary, the Committee may seek assistance from someone it considers experienced and specialized, locally or internationally.
Public authorities may submit a request to the committee to exclude a company that does not have a regional headquarters in the Kingdom, or a related party, from the control of a project or projects or for a certain period of time, provided that the application is submitted before a tender is announced or direct procedures are initiated. conclusion of the contract, and that the application includes the following:
– The name of a company that does not have a regional headquarters in the Kingdom, or the relevant party to be excluded.
Reasons and justifications for the request and studies or reports supporting it
– The project (or projects) under consideration or its time period
Goods and services in question
– Estimated cost of contracts that are expected to be concluded after the approval of the application.
– The public authority may attend a meeting of the commission appointed to consider its application to discuss the application without the right to vote on the decision to be made on it, provided that the subject expresses a desire to be present when the application is submitted.
– If the state body expresses a desire to attend the meeting, and its representative is absent, the committee completes its work and the body is not entitled to demand a re-convening of the meeting.
The public authority submitting the application may object to the decision of the commission made on this matter before the Minister, and the Minister will issue his decision on the objection, and the decision will be final and effective from the date of its issuance.
The implementation of these control measures will take effect from the date of 19/6/1445 AH.