ICV certifications will now be necessary as a measurement tool when organisations are awarded bids.
Procurement processes in Qatar will now use the in-country value system, which requires enterprises to include ICV or local value certificates with their financial bids, after a new ruling by authorities.
According to authorities, the most notable innovation to the law is the incorporation of the ICV system into the country’s entire procurement operations.
“Perhaps one of the most important additions to the regulation is defining the local value of companies, which means the total amount spent by the contractor, supplier or service provider within the country to develop national business, services or human resources to stimulate productivity in the local economy,” said Nayef Al Hababi, Director of Government Procurement Regulations Department at the MoF.
“The local value is determined through a certificate of previously executed contracts and the plan presented by the bidder within his bid.” he added.
ICV certifications will now be necessary as a measurement tool when organisations are awarded bids. The system is supposed to generate lucrative economic prospects for local entrepreneurs while also attracting investors to set up shop in the country.
Tenders will be granted to the best offers using the ICV system, with preference given to those with the lowest monetary bids after computing the local value ratio.
The revisions also contained precise time limitations to organise the offering procedures and up to a decision within 60 working days, as well as signing the contract within a period not exceeding 20 working days from the date of the contractor presenting the final insurance.
The contract’s implementation must begin within 90 working days after its signing, but no later than 180 days. The goal of determining the duration of the actions required in the rule is to speed up procedures, increase tender efficiency, and avoid losses caused by the length of the preceding procedures time.
The ICV procedure was formerly used for various government bids in the oil and gas sector. National products, enterprises with strong local value, and those presenting the least costly monetary bids following ICV calculation would be prioritised throughout procurement procedures.
Officials from the Ministry of Finance (MoF) stated at a news conference on Wednesday that micro, small, and medium-sized firms (MSMEs) will now be afforded additional rights and exemptions, with more tenders accessible to them.
According to the MoF, MSMEs, as constituted by the Ministry of Commerce and Industry (MoCI), are now able to participate in restricted bids for less than QAR 5 million. National micro firms and SMEs are also exempt from bid and performance bonds, as well as tender costs, if their annual revenue is less than QAR 1 million.
Furthermore, micro and small-sized businesses will be free from paying half of the categorisation cost.
The revisions are intended to increase non-oil industry and private sector engagement in the Qatari economy.
The revision came after Amir Sheikh Tamim bin Hamad Al Thani has ratified Cabinet Resolution No. (11) of 2022 revising several articles of the Executive Regulations of the Tenders and Auctions Law No. (24) for the year 2015.
The MoF launched the TAHFEEZ programme in 2021, which includes three main pillars: the Qatar In-Country Value (QICV) programme, which promotes the development of SMEs, and environmental, social, and general governance (ESG) for the financial sector, which promotes the development of the country’s private sector.