Parliament to vote on doubling tender caps, curbing Cabinet powers

TDT | Manama

Email : editor@newsofbahrain.com

Parliament is set to vote on a bill that would double procurement tender caps and limit the Cabinet’s authority to adjust them, as lawmakers consider broader changes to the procurement law on Tuesday.

The bill, attached to Decree 94 of 2024, raises the ceiling for ministries and authorities from BD25,000 to BD50,000 and for wholly state-owned companies from BD50,000 to BD100,000, while still requiring procuring bodies to submit quarterly purchase lists to the Tender Board. In addition to raising limits, the revisions introduce electronic auctions and tightly controlled post-tender negotiations, giving public bodies more flexibility while ensuring oversight and protecting public funds.

The Financial and Economic Affairs Committee backs the bill in principle but seeks to remove a clause that would allow the Cabinet to change these caps by decision. Revisions to disposal rules would allow public auctions to be conducted in person or online, with scope for the private sector to manage auction procedures under the Executive Regulations. The draft also strikes the second paragraph of Article 33, which currently limits price negotiations to a narrow case, and removes Article 64, which applies tender rules to auctions. A closing clause brings the law into force the day after publication in the Official Gazette. The committee proposes dropping “2024” from the bill’s title and accepts the preamble as drafted.

Two new articles would be added. One permits the Cabinet to exclude certain overseas contracts from the law where a procuring body has Board-approved internal rules and submits a list of such deals every three months for Board review. The other sets clear grounds for negotiation, subject to Board approval: a sole bid, the best-conditioned lowest-priced bid above the estimate, or talks with the top-scoring bid and any others within five per cent of its score. The Executive Regulations would define the steps and checks required.

The Tender Board argues that higher caps and controlled negotiations are needed in light of price swings and the realities of contracting abroad, saying the changes would help public bodies get better value while protecting public funds. The National Audit Office reports no constitutional issues, no conflict with existing laws, and no impact on its remit.

The Bahrain Chamber of Commerce and Industry supports the objectives but urges keeping a bar on price talks after bids are opened, warning that this could disadvantage firms that priced keenly from the start and undermine sealed bidding, particularly for small and medium-sized enterprises. The Bahrain Businessmen’s Association backs the bill as a necessary update to procurement and sales rules.