Understanding Procurement
With Hamat B. Bah
In today’s article we intend to elaborate on the different steps to follow in becoming a successful government Supplier, Consultant or Contractor.
- Register Your Business Properly
Registering a business in The Gambia is done through the Registrar General’s Department/Office(RGD) under the Ministry of Justice. The process is relatively straightforward and can usually be completed in a few days if all documents are readily available. Here is a clear step-by-step guide
- Choose Your Business type
The first thing you need to do prior to starting the business registry process is to choose the type of business you want to establish. Depending on the business structure one understands and thinks will work, any of the following can be chosen:
- Sole Proprietorship – This is a business type/ structure that is owned by one individual. This is the commonest business type in government buying. It is the easiest type of business to start. However, it is associated with challenges like limited resources and risk of discontinuity in case of death or incapacity.
- Partnership – A business partnership is a formal arrangement where two or more people (or entities) collaborate to own and operate a business, sharing profits, losses, and management responsibilities. This type of business structure involves a lot of legal and administrative paperwork.
- Limited Liability Business (LTD) – A Limited liability is a business structure that limits an owner’s or shareholder’s personal financial responsibility for business debts or liability to only the capital they invested. In the event a business goes bankrupt, assets like houses or savings owned by the proprietor(s) are generally protected. In the same way, when the proprietor(s) are indebted and liable, the business and its assets are protected. A limited liability establishes the business as a separate legal entity from its owner(s).
Most growing businesses choose Limited Liability business because it protects personal assets.
- Branch of a Foreign Company – International businesses/companies may have interest in doing business in a foreign country. As a general requirement, the foreign business would have to follow the domestic rules and regulations to register their business in order to benefit from government buying of goods, services and works. The registration process may slightly be more challenging that locally established businesses.
- Understand Procurement Categories
Following the establishment of your business as a legal entity, you need to understand the different government procurement categories and choose the one that aligns best with your business strategy.
Government procurements are categorised as follows?
- Goods: These are tangible items whose delivery can be easily verified by touching. When goods are delivered, usually delivery Notes and Goods Receive Notes are presented for signature.
Examples of goods include equipment, office supplies, vehicles, IT hardware etc.
- Services: These are intangible and can be verified by feeling or seeing the outcome/effect of having them rendered. To verify the delivery of services, reports are often provided.
Example of services include consulting, petty constructions painting, designing, maintenance, hospitality, IT services, communication etc.
- Works: This involves the use of tools, equipment and machinery to either construct buildings and facilities or install pre-fab structures.
- Example infrastructure, public works projects, installations etc
- Register your business with The Gambia Public Procurement Authority (GPPA)
The Gambia Public Procurement Authority (GPPA) is the government oversight body established by an Act of parliament with the mandate to oversee and regulate public procurement. It is this same Act that requires businesses intending to do business with government to register with the Authority. Without a valid GPPA registration a business cannot get a contract from government.
Prior to attempting to register your business with the Gambia Public Procurement Authority (GPPA), you should ensure that your business is registered at the attorney General Chambers as a legal entity. In addition to the registration of your business as a legal entity, the GPPA would consider your tax payment compliance as pre-requisite for your registration.
Businesses registration at the GPPA under categories. Business owners have the liberty to choose one two or more categories to register their businesses. However, it is important align the business with category for which it has capacity.
Your registration with GPPA would indicate your business category. For example your business will be registered as a Vendor for goods, Consultancy, Contractor, Catering services etc. Registering under a category that you do not have capacity can affect your contract execution which will in the long wrong send out of business.
It is important to note that you can only offer for the category you are registered for. For example, if you are registered as a vendor, you can only offer for the supply of goods but not works, consultancy or catering services.
Non- GPPA registered business entities are not allowed by the Gambia Public Regulations to participate in any bidding process.
- Get Required Certifications (If Applicable)
The presentation of certificates during bidding may sometimes not be part of the documents requested. However, when submitting them is a requirement, then doing so could give you an added advantage. For some procurements, a competitive advantage is given to businesses such as Small and Medium Enterprises, Businesses Owned by Women or Minority Groups. Some of the certificates may include the following:
- Small business certification
- Minority Group/women-owned business certification
- ISO certification
- Authorisations
- Environmental compliance certificates
- Monitor Tender advertisements Regularly
Once you complete the registration of your business with the Registrar of Companies, The Gambia Public Procurement Authority (GPPA) any other legal body, you should farmiliarise yourself with the public procurement terminologies. You should also establish contacts and pay attention to advertisements on print media and online platforms.
Government contracts of high volume are published as:
- RFQ (Request for Quotations): This is where the buyer would request interested bidders to submit their quotations within a stipulated time frame during which all submission should be done.
Request For Quotation is mostly used in the procurement of goods and simple works
- RFP (Request for Proposals). Proposals are requested when the buyer need services such as consultancy.
- ITB (Invitation to Bid/ Tender). When procurements fall within the Open Tender procurement method, Invitations to Bid are published to invite bidders to participate in a bidding process for an initiated procurement.
- REOI (Request Expression of Interest). When service procurements are initiated, a Request for Proposals is published to encourage service providers to manifest to the buyer that they are interested in that procurement.
- Learn How to Prepare Winning Bids
More often than not businesses participating in a bidding process fail to win a contract because they will take for granted, overlook some important issues, or assume that the buyer knows what is not explained. As a bidder provide all requested information, be brief, clear and avoid ambiguity.
Government bids require:
- Detailed technical proposal. Follow the given instruction in providing your technical specifications.
- Pricing breakdown. Unless a lumpsum price is requested, breakdown your cost. Separate unit cost from total cost.
- Company profile. Briefly tell the buyer about your business, its human, financial and material resources.
- Past performance references. Provide as many related references to your past performance as possible. These may be certificates of completion or recommendations from past clients. Never forge your reference! Most buyers will verify the information you give them.
- Compliance documents. Document such as bid security, insurance, manufacturer’s authorisation, warranty, tax clearance, audited Financial Statements or proof of financial viability etc are often part of the documents requested by the buyer. Make you submit with your offer.