It regulates the procedures and methods for providing the needs of the authorities ... and it will be implemented on the first of January

Mohammed bin Rashid issues the contract law and warehouse management in the Dubai government

  • The law defines the functions of the Finance Department and the Dubai Smart Government Foundation.

    Photography: Ashok Verma

picture

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, in his capacity as Ruler of the Emirate of Dubai issued the “Contract and Warehouse Management Law in the Government of Dubai No. 12 of 2020”, with the aim of establishing a modern and modern framework that regulates rules, procedures and methods for providing government agencies' needs. From procurement, in line with the emirate's vision, government policies, current and future directions, and in line with international best practices in this regard.

The law aims to create an effective system that enables government agencies to achieve quality, efficiency and effectiveness in providing their purchases and managing their warehouses, and to encourage the method of providing unified purchases to government agencies, to achieve financial effectiveness and efficiency of procurement, and to achieve maximum economic efficiency to obtain purchases at fair competitive prices.

The law enhances integrity and transparency, achieves the principle of equality and equal opportunities among suppliers in providing procurement, and provides a legal framework for automating the procurement and inventory management process for government agencies, in line with the government's vision towards smart transformation in organizing its various business and activities, as well as standardizing the rules and procedures governing the conclusion of contracts and inventory management. In government efficiently and effectively.

Terms of reference of «Finance»

Promote integrity and transparency and achieve the principle of equality and equal opportunities among suppliers.

- The establishment of the "Central Supplier Register" within the unified electronic system of the Dubai government.

Determine the principles, rules and methods of procurement and the conditions that must be met by the bidders.

The law achieves the highest levels of economic efficiency by ensuring fair competitive prices.

The second chapter of the law defines the terms of reference of the Dubai Finance Department and the Dubai Smart Government Corporation, in addition to the organizational units concerned with the procurement and inventory management of the government agency.

The functions and powers of the Finance Department include: preparing a guide for the governance of purchases, disposing of assets and inventory management, preparing policies related to common procurement, fixed price, and any other means that achieve effectiveness for joint purchases of materials and services for government agencies, and concluding the necessary contracts for this.

As well as preparing a guide on how government agencies can dispose of their assets, whether for or without compensation, and preparing indicative forms for the general conditions of contracts, and government agencies may use the forms approved by them provided that they do not conflict with the Department's models.

Smart Dubai government

The law stipulates that the Dubai Smart Government Corporation, in coordination with government agencies, shall establish the unified electronic system for government to manage contracts and inventory, including the systems and programs it contains, operate, maintain, update and supervise it, and follow up on government agencies ’commitment to it.

The law includes preliminary procedures for the purchase and disposal of assets, and the preparation of documents and documents for the purchase or disposal of assets, provided that the documents include detailed specifications for the required purchases, or a detailed statement of the assets to be disposed of, the conditions for the purchase or disposal of assets, in addition to the general and special conditions of the contract And its annexes, and it is not permissible for the concerned unit or any of the entity’s employees to disclose any information or data that might prejudice the interest of the government entity, public money or the principle of competition between bidders.

The law stipulates the establishment of a "Central Supplier Register" within the government's unified electronic system for managing contracts and inventory. The Dubai Smart Government is responsible for managing, supervising and updating it periodically, and government agencies provide it with the necessary data.

Form committees

The law defined the principles, rules and methods of procurement, and detailed the conditions that must be met by the bidders, the prohibitions against them, the authority to purchase and the formation of committees in terms of the authority concerned with purchasing, forming committees and their system of work.

The law defines the conditions for tenders, the study of market prices, the mechanism for announcing them, the conditions and considerations for submitting bids, the method for submitting and receiving the bids, the period of validity of the offer, the initial insurance, the mechanism for opening bids, the financial and technical study of the offers, the negotiation cases, the criteria for selecting the winning bid, and the cases of excluding the offer. And the mechanism for approving the award letter, documenting procedures, fulfilling the final insurance, and the elements that must be included in the contract between the government entity and the winning bidder.

Choose a supplier

Law No. (12) of 2020 defined the concept of practice, which is a special method for providing the government entity’s procurement needs, through which the supplier is chosen from among a number of bidders in view of its efficiency, specialization and the price provided by it, and the law separates cases of resorting to it, rules and procedures Practice.

The law included the concept of direct agreement and its conditions, and methods of selecting a supplier through the method of direct agreement, and also defined the concept of competition, which is a special method of purchase, which is used to prepare studies, or develop designs or technical plans for a specific project, or for a specific purpose, and explained its rules and procedures.

The law clarified the contract implementation mechanism, including the date of providing purchases, change orders that can be directed to the supplier by the government agency and their statuses, the basis for the supplier’s commitment to the contract, and the rules for assignment or termination of the contract.

Works contracts

The law included provisions for works contracts, including maintenance of the work site, plans and designs, the supplier’s obligations in the contract, measures taken in case the supplier breaches the contract, the mechanism for disbursing the supplier’s dues, the fine for late implementation, responsibility for maintenance and essential defects, and the mechanism for final receipt. For the works.

The law also includes provisions related to contracts for the supply of materials, including inspection and examination, delay in supplying materials, stages of receiving supplied materials, presentation to the procurement committee, and rejected materials.

The third chapter was concerned with contracts that achieve revenue for government agencies, and included types of contracts and methods of disposing of assets, auctions, their rules and procedures, disposal of assets by practice and direct agreement, relevant rules and procedures, and provisions for disposing of assets.

Warehouse and asset management

Chapter Four deals with inventory management, in terms of creating and renting inventory with the government agency, and the powers of the organizational unit responsible for warehouse and asset management.

The law stipulates the formation of a committee called the "Inventory and Valuation Committee", consisting of a chairperson, a vice president and a number of members, provided that none of them is an employee of the organizational unit responsible for the stores.

The committee is concerned with ensuring the correctness of the store's records, comparing the materials actually stored in the store with the balances recorded in the records, inspecting the stored materials, determining their condition and value, recommending disposal of stored materials, whether by selling, destroying, recycling or donating, and preparing a report on the outcome of the inventory and valuation process.

The provisions of this law are without prejudice to the government agencies' securing their purchases of projects or programs that the government decides to provide support for, and in particular the projects registered in the Hamdan bin Mohammed Program to Support Youth Projects, which are covered by Law No. (23) of 2009 regarding the Mohammed bin Rashid Foundation for Development Small and medium enterprises.

The law will come into effect on January 1.

Electronic transactions

The Contracts Law and Warehouse Management included a set of general provisions related to emergency conditions and force majeure, electronic transactions and their validity and grievance, removal of damages and compensation for them, applicable law and settlement of disputes, and the mechanism for dealing with minerals, fossils and antiquities discovered by the contractor during the implementation of the contract, which are considered property To the government.

Authority delegation rules

The Contracts and Warehouse Management Law grants the director general of a government agency the right to delegate any of his powers stipulated in this law to any of that entity’s employees, provided that the powers to be delegated fall within the powers of the general manager under this law, and that the delegation is in writing, and that the delegate is delegated to him. In his capacity and not in his person, and that the delegation is of a limited period, so that this period does not exceed two years each time the delegation is executed, and that the delegation is not absolute with full powers, and that the delegation does not negatively affect the process of tightening control over public funds or breach the rules of internal control The authorization process must take place in accordance with a schedule of delegation of powers, and the Department of Finance and the Dubai Financial Supervision Authority shall be notified of a copy.

Follow our latest local and sports news, and the latest political and economic developments via Google news