Aug 13, 2022 News
OIL SERIES Pt 1…
By Kiana Wilburg
Kaieteur News – In keeping with this newspaper’s objective to empower the populace with knowledge about its oil and gas sector, Kaieteur News has embarked on yet another weekly series which will focus on what is required of oil companies during the procurement of goods and services. These requirements are noted in the Local Content Secretariat’s Guidelines.
Today’s installment will focus on the protocols to be followed for competitive bidding and the unbundling of contracts.
GUIDELINES ON BIDDING AND UNBUNDLING
Guyana’s Local Content Secretariat has issued strict guidelines which require all Contractors, Sub-contractors, or Licensees to not only award contracts through a competitive bidding process, but also, unbundle as far as possible, large contracts into smaller units so that Guyanese can have greater opportunities for participation.
Specifically, Section 13 (3) of the Local Content Act provides that any contract awarded by Contractors, Sub-contractors or Licensees shall be on the basis of a competitive bidding process that has been initiated by a widely circulated public tender process; except where prior approval has been sought and granted by the Minister for the use of the sole sourcing method of procurement. As such, and in keeping with the definition of a competitive bidding process, the Local Content Secretariat requires that all Contractors, Subcontractors and Licensee must advertise all Request for Information (‘RFI’), Request for Quotations (‘RFQs’) or Request for Proposals (‘RFPs’) through at least two mediums that are widely circulated throughout Guyana.
These mediums may include:
(a) Local daily newspaper publications;
(b) Social Media platforms of the company such as Facebook, Instagram and twitter;
(c) The company’s website; or
(d) The local content Secretariat’s web page.
As for the unbundling of contracts, the Secretariat’s guidelines state that a Contractor, Subcontractor, Licensee shall, as far as reasonably possible, unbundle the proposed scope of works/services into smaller units so as to enable Guyanese companies and Guyanese nationals to participate in the tender.
To ensure verification of compliance to the requirements of the Act, the Guidelines state that Contractors, Subcontractors, or Licensees should ensure that the Sectors and Sub-sectors specified in the First Schedule of the Act are not bundled during the planning process. These include, but are not limited, to the following: rental of office space, accommodation services (apartments and houses), equipment rental, surveying, pipe welding-onshore, construction work for buildings-onshore, waste management services, storage services, catering services, janitorial and laundry services, food supply, administrative support, medical services, security services, dredging services, local insurance services, and public relations work.
Guyana’s Local Content Act prioritizes Guyanese nationals and Guyanese companies in the procurement of goods and services for the enhancement of the value chain of the sector.
The Act also serves to enable local capacity development and provide for the investigation, supervision, co-ordination, monitoring and evaluation of, and participation in, local content in Guyana.
The Local Content Secretariat is mandated to ensure that the provisions of the Act are implemented. It functions as the regulatory arm for the monitoring, evaluation, coordination and reporting of local content in the petroleum operations of Guyana.
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