Govt agencies allowed to obtain Covid-19 supplies without tender

This is under specific conditions, such as to protect public health, and owing to urgency of situation

Fit-out works for community isolation facilities such as Changi Exhibition Centre (left) are contracted through the emergency procurement procedure. ST FILE PHOTO
Fit-out works for community isolation facilities such as Changi Exhibition Centre (above) are contracted through the emergency procurement procedure. ST FILE PHOTO
Fit-out works for community isolation facilities such as Changi Exhibition Centre (left) are contracted through the emergency procurement procedure. ST FILE PHOTO
NATIONAL DEVELOPMENT MINISTER LAWRENCE WONG

Goods and services needed to fight the Covid-19 pandemic can be obtained by government agencies without calling for a tender, owing to the urgency of the situation, two ministers said yesterday.

An emergency procurement procedure allows them to contract directly with suppliers who have the necessary expertise and resources, instead of openly sourcing on the GeBIZ platform which they typically do, said Minister in the Prime Minister's Office Indranee Rajah.

"For example, as we needed to quickly source and fit out premises to house at-risk persons, and also secure essential medical supplies, the agencies concerned established direct contracts with the suppliers outside GeBIZ who were best able to meet the requirements within the shortest timeframe possible."

Her explanation on government procurement processes was given in Parliament in a reply to Nominated MP Walter Theseira.

She said the use of limited tenders, or direct contracting, is permitted under specific conditions, such as to protect public health or for reasons of national security.

This is aligned with international standards laid out in the World Trade Organisation's agreement on government procurement.

Ms Indranee, who is also Second Minister for Finance and Education, added that similar emergency procurement practices are adopted in other countries, including Australia, Britain and the United States, as well as the European Union.

National Development Minister Lawrence Wong told the House that the emergency procurement procedure was used for the contracting of hotels as well as fit-out works for government quarantine facilities, community recovery facilities (CRF) and community care facilities (CCF).

He also said, in his reply to Mr Pritam Singh (Aljunied GRC), that decisions to set up CCFs and CRFs are approved by the multi-ministry task force, while rates for hotels used for those serving stay-home notices are negotiated based on prevailing market conditions.

"The agencies will ensure that the quotes from the commercial partners are reasonable by comparing against market benchmarks, scrutinising the invoices and ensuring that the works meet the standards required by the Government before processing the payments.

"In some cases, we've been able to get private sector companies to support the projects on a cost-recovery basis as part of their contributions to the community," he said.

Ms Indranee said information on the proportion of Covid-19-related procurement done through GeBIZ is not yet available as such procurements are still ongoing since the pandemic is not over.

Regardless of the procurement approach taken, government agencies are required to ensure proper evaluation is done, and necessary approvals are sought, she said.

Ms Indranee added that all transactions done during this period are subject to audit and compliance reviews by the authorities.

Mr Wong also stressed that government agencies do not simply go to one vendor for goods and services. They check quotations from different vendors before making a choice, even though it is not required under the emergency procurement procedure, he said.

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A version of this article appeared in the print edition of The Straits Times on June 06, 2020, with the headline Govt agencies allowed to obtain Covid-19 supplies without tender. Subscribe