The resolution regulates procurement procedures, supply contracts, service provisions and undertaking work for government entities. It ensures efficiency and effectiveness of such work as well as reducing costs and to protect public money. The resolution also regulates and monitors the operations and procedures of storing and releasing material in accordance with the best international practices.
The resolution sets the powers of the Minister, Under Secretary and CEO in regard with the procedures for approving purchase orders, assignments, supply contracts, services and undertaking work in tenders and auctions. However, it excludes all procurements related to the military and security sectors, and those related to international agreements and obligations of the UAE.
The resolution prohibits piecemeal purchases that aim to override the powers. Federal entities must adhere to the following:
- Maintain professional integrity, follow open competitiveness procedures, and treat competitors fairly and equally.
- Take into account the ongoing development and changing needs, and attract the best qualified suppliers.
- Preserve impartiality and autonomy.
- Announce purchases and tenders.
- Avoid conflict of interest and acceptance of gifts or monetary and in-kind donations
The system aims to achieve the best value for money. It also requires not to rely only on the price factor when evaluating tenders and awarding contracts to bidders who offer the lowest price. Thus encouraging the best economic potentials based on the actual needs for supplies, work and services required, as well as the availability of necessary appropriations.
The resolution details the organisational units responsible for procurements, including committees of procurements, biddings, receiving and opening tenders, plus the competencies of each.
The text of Cabinet Resolution NO. 32 of 2014