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Ministry Of Finance and Economy Circulars 3/2004

  • Ministry of Finance Circular No. 3/2004 dated 26 October 2004

  •         Each Ministry has been given the authority to set up their own Mini Tender Board. However, all Departmental tenders under the Ministry of Finance which is not subject to the jurisdiction of the Mini Tender Board of the respective Ministries, shall be processed by the State Tender Board.

    Annually, His Majesty the Sultan and Yang Di-Pertuan shall appoint not more than 5 members (including the Chairman) for the State Tender Board and the Mini Tender Boards. All members of the State Tender Board and the Mini Tender Boards are authorized to initial all tender documents received.

  •          For tender submission valued at $ 250,000.00 and below, the respective Mini Tender Board shall consider the recommendations from the Heads of Departments and in turn shall forward their recommendation to their respective Ministers for approval.

  •          For tender submission valued above $250,000.00, the Heads of Departments shall forward their recommendations direct to the Chairman of the State Tender Board or through the Chairman, Mini Tender Board of their respective Ministry for approval.

  •          The State Tender Board Meeting is held every Monday at 8.30 a.m. and at 1.45 p.m. and receipt of all tender submission under jurisdiction of the State Tender Board shall close on the same day at 2.00 p.m. unless that day falls on a public holiday whereby the meeting shall be held the following working day at 8.30 a.m. and tender submission shall close the following Tuesday at 2.00p.m.

  •          The quorum for the State Tender Board and the Mini Tender Board is 3. One of the Board's members may sit as the Acting Chairman if the Chairman is not present at the meeting.

  •          All tender notices must be publicized at least two weeks before their receipt by the State Tender Board or the Mini Tender Boards of the respective Ministries.

  •          Tenders applications should be processed within a period of not more than 2 months from the closing date of the respective tender. 1% of consultants' fees shall be deducted daily if the said consultant submits their assessment exceeding 35 days after the receipt of the departmental tender documents.

  •          The Chairman, State Tender Board of the Ministry of Finance shall notify in writing to the Heads of Department concerned regarding approval for tender valued above $250,000.00 and a copy shall be forwarded to the Chairman of the respective Mini Tender Boards.

  •          All tender valued above $25,000.00 should be made by open tender. Invited tender, selective tender and waiver of tender procedures may only be considered by the Mini Tender Boards of the respective Ministries if the project/purchase/service is valued at $250,000.00 and below. However if the supplies or services are valued above $250,000.00 and if the supplies or services are required on an urgent basis, then approval is subject to the Chairman of State Tender Board.

  •          Purchases or contract valued between $2,000.00 and $25,000.00 is subject to approval from Heads of Departments including Permanent Secretaries. However, if the purchase or contract is expected to exceed $25,000.00, the Department concerned should invite written quotations from at least 3 qualified tenderers and quotations should be addressed to the respective department's quotation box to be opened and considered by Heads of Departments.

  •          If the supplies or services are required urgently but funds have not been allocated for the purpose, the respective Department/Ministry concerned should submit their application to the Permanent Secretary, Ministry of Finance for consideration.

  •          A Department/Ministry shall only invite tender or incur expenditure only after the budget has been approved.

    All tender should be processed by open tender in order to acquire a competitive price and avoid public accusation of favoritism on the part of the Department/Ministry concerned that could impose negative and unhealthy impact on the Government's administrative system if not suppressed.

    Should an open tender failed to draw response from tenderers, the Department or Ministry concerned may submit an application to the State Tenders Board or the Mini Tender Board of the respective Ministries for selective/invited tender.

    The procedures specified in the Ministry of Finance Circular No. 4/2004 dated 26 October 2004 and the Financial Regulations 1983 (Article 327 to 340) regarding tender matters should be observed.

  •          The payment process by Progress Payment should be observed in order to prevent the Government from incurring losses in the event where a contractor fails to complete a project.

  •         The circular letter can be downloaded here