lcgpa_gov_sa · regulation · processed · 4 chunks
Companies: Companies wholly owned by the state - or any of its government agencies - or in which it owns more than (50%) of its capital and whose commercial registration is in the Kingdom. Authority: Local Content and Government Procurement Authority. Small and medium enterprises: Local enterprises (micro, small and medium) according to the classification of the General Authority for Small and Medium Enterprises. Local content: Total spending in the Kingdom through the participation of Saudi elements in the workforce, goods, services, assets, technology, and the like. Qualification: Verifying the availability of the necessary qualifications and capabilities to carry out work and supply purchases among competitors. The list: A list of national products issued by the Authority and updated periodically, and companies - when applicable - shall supply them in accordance with the relevant provisions. National product: Every product produced in the Kingdom, including extractive, agricultural, animal and industrial products, whether in their initial form or at any subsequent stage of assembly, processing or manufacturing. Mixed contracts: contracts that contain items related to supply and other items related to other works or services, such as supply and installation contracts, construction contracts, and infrastructure development contracts in all their forms and forms. Target local content percentage: The percentage of local content that the competitor pledges - when submitting the bid - to commit to achieving before the end of the contract. Gradual plan for local content: A mandatory plan prepared and submitted by the contractor to clarify the target percentage of local content during the contract implementation stages. Baseline: The percentage of local content - approved by the Authority - for the competitor’s facility when submitting its bid. Developing local content and small and medium enterprises in the companies business and procurement. The companies actions and purchases except for what is excluded. 1- Ensure in advance that no more than one qualified local person is available to purchase or carry out the required work when dealing with other persons to purchase or carry out their business within the Kingdom. 2- Include competition documents with the terms and conditions of local content - as the case may be. 3- Not exclude the national product that meets the actual need when setting the technical conditions and specifications for the proposed works and purchases. 4- Ensure that national and foreign products conform to approved national specifications, or international specifications when there are no approved national specifications. 5- When carrying out their work and purchases, and when applicable, companies apply the list, through the contractor supplying national products that fall within the list, and it is applied in all contracts that include products included in the list, if the price difference between the national product does not exceed And the foreign product (10%), after inviting at least three local factories to supply or implement the required purchases. LCGPA shall establish the necessary controls for exceptions from the list. Companies may - in circumstances determined by them - supply national products that fall within the list and whose price difference with a foreign product exceeds 10%. 6- The contractor applies all the aforementioned provisions when carrying out work and purchases on behalf of companies. When evaluating offers, companies - where applicable - apply the following: 1- The mechanism for weighing local content in the financial evaluation, in all contracts with an estimated value of (fifty million) riyals or more - except for supply contracts - and the weight of local content in the financial evaluation is set at no less than (30%), and does not exceed the price difference stated in The competitor’s offer with the highest final evaluation and the lowest price contained in the offer of any of the technically qualified competitors; The percentage of (10%). However, the company may, in circumstances determined by it, choose the competitor’s offer with the highest final evaluation, even if the price difference exceeds 10%. 2- The criterion for preferring small and medium enterprises, in all contracts whose estimated value is less than (fifty) million riyals - except for supply contracts - by granting small and medium enterprises a preference consisting of assuming the prices of other enterprises’ offers are (10%) higher than what is stated in theOffer. Companies may, in circumstances determined by them, increase this percentage. 3- The criterion of preference for the national product not included in the list, in supply contracts or mixed contracts, assuming that the price of the foreign product is 10% higher than what is stated in the offer documents. Companies may, in circumstances determined by them, increase this percentage. Companies shall - when applicable - include in their contracts a clear text for the contractor to supply the materials or tools he needs for the contract under implementation from national products, in accordance with the mechanism of preferring national products that are not included in the list stipulated in Paragraph (3) of (Fifth) above. When applying the list, companies do the following: 1- Excluding the offer in which the competitor did not adhere to the list. Where the competition is divisible, items where the competitor has not complied with the list shall be excluded. 2- Establishing mechanisms to monitor the contractor’s performance in implementing his commitment regarding the list during the implementation of the contract, and not receiving any supplied products that violate the list except in cases where companies believe that it is in their interest to receive those products, while fining the contractor in accordance with what is required by the companies’ policies and the contract concluded with him. This does not include excluded products according to controls determined by the Authority. When applying the mechanism of weighing local content in the financial evaluation, the competitor and the contractor provide the following: 1- The baseline and the target percentage of local content at the contract level or at the facility level according to what is stated in the competition documents. Companies shall exclude the competitor who does not commit to submitting it. 2- The gradual plan for local content, within (sixty) days from the date of its award. 3- Periodic reports - in accordance with the terms and conditions of competition documents - to determine the extent of his commitment to achieving the targeted local content percentage and the gradual plan for local content. 4- A final report that includes the percentage of local content achieved by the contractor - after its approval by the Authority - for the purpose of ensuring its compliance with the targeted percentage of local content. Competitors and contractors must use the forms for measuring the baseline, the target percentage, and the periodic and final reports for local content prepared by the Authority, and companies must save and document the forms when they receive them from competitors and contractors. Companies shall prepare special forms for evaluating competitors’ offers that include evaluation criteria and the percentage of each criterion counted in the evaluation process. The forms may be paper or electronic and must be saved and documented. Companies - when applicable - establish a mechanism to exclude contractors who do not adhere to local content requirements in future contracts. - when applicable - Companies shall - as much as possible - establish objective and measurable qualification standards, and take into account - as much as possible - the technical, financial and administrative capabilities of small and medium enterprises in a manner commensurate with the nature of the project or work, its size and value. Companies provide those wishing to enter into their business and purchases with their qualification conditions and procedures and a mechanism for communicating with the relevant departments.