Learn about government business opportunities and procedures involved.

 

Overview of Government Contracts and Tenders

Types of Goods & Services in Contracts & Tenders

A.   Goods

  • All materials, manufactured items, consumables and non-consumables, e.g. computers, furniture, machinery, office equipment and supplies, etc.

 

B.   Services

  • Cleaning, maintenance, repairing, overhauling and testing of goods.
  • Consultancy, publishing, advertising, training, etc. 

 

C.   Construction Services

  • Renovation, maintenance works and building works on buildings.
  • Installation, maintenance of electrical and mechanical facilities in buildings.

 

Who Is In Charge of Purchasing

  • Each Government ministry, statutory board or department is in charge of purchasing its own goods and services.
  • The Expenditure and Procurement Policies Unit (EPPU), Defence Science and Technology Agency (DSTA), and Infocomm Media Development Authority (IMDA) purchase goods and services that are commonly used by the entire public sector. For instance, paper, cleaning services, IT security services, courier services, etc.

 

How Does the Government Buy

The Government buys products and services through 3 procedures, based on the value of the contract.

A.   Small Value Purchases (Up to S$5,000)

  • The Government buys directly from suitable suppliers or “off the shelf” provided the prices assessed reflect fair market value.
  • Usually, the Government agency which requires the product or service will ask around for quotations and make a direct purchase.
  • These small value purchases are not publicised on Government Electronic Business (GeBIZ) - the Government's procurement portal.
  • Sourcing methods include:
    • Verbal or written quotes
    • Off the shelf purchase
    • GeBIZ Mall Catalogues

 

B.   Invitation to Quote (S$3,001 to S$70,000)

  • The Government publishes a quote online at GeBIZ inviting suppliers to quote.
  • All businesses that wish to supply can submit a quote on GeBIZ.
  • In order to submit a quote, you must first register as a Government Supplier (GeBIZ Trading Partner) on GeBIZ.
  • Sourcing methods include:
    • Invitation to Quote (ITQ)
    • Request for Quotation (RFQ)
    • Period Contracts
    • Framework Agreements

 

C.   Invitation to Tender (Above S$70,000)

  • To tender for a project, you must also be a GeBIZ Trading Partner. There are 3 types of tenders:
    • Open 
      All interested parties can bid. Tenders are posted on GeBIZ.
    • Selective 
      A pre-qualification exercise is held to shortlist applicants who are then invited to bid. Tenders are posted on GeBIZ.
    • Limited 
      These tenders are by invitation only as they concern national security or are impractical for open tenders.

 

Looking for Contracts and Tenders

On GeBIZ

  • View available Government quotations and tenders online at Government Electronic Business (GeBIZ) - the Government's procurement portal.
  • You can also receive daily alerts on the latest Government procurement opportunities from GeBIZ Alerts by signing up with your preferred email and selecting areas of interest.
  • You cannot submit a quote or bid unless you are registered with GeBIZ as a Trading Partner. 
  • GeBIZ website lists: 
    • Invitations-to-Tender (Tender Notices) - Government contracts above S$70,000.
    • Invitations-to-Quote (Quotation Notices) - Government contract up to S$70,000.

 

At Industry Briefings

  • You may look out for industry briefings organised by agencies such as SPRING, the Building and Construction Authority (BCA) and the Infocomm Media Development Authority (IMDA).
  • These briefings will help you to understand the requirements of Government agencies and provide a glimpse of the potential procurement opportunities for the year.
  • For example, IMDA organises an annual Industry Briefing usually held in May, on infocomm business opportunities in the public sector. 

 

Registering as a Government Supplier

In order to bid for Government projects, you need to first register with GeBIZ (Government Electronic Business) as a Government Supplier (GeBIZ Trading Partner).

For some tenders, you may also need to be registered as an Expenditure and Policies Procurement Unit (EPPU) Supplier or Building and Construction Authority (BCA) Supplier.

 

GeBIZ Trading Partner

  • All suppliers, both local and foreign, must register on GeBIZ as a GeBIZ Trading Partner before you can respond to electronic tenders and quotations.
  • If you are an ACRA-registered supplier, you will be approved immediately. 
  • Registration is free for the first account. Each additional account costs S$280 per year (inclusive of GST).
  • Besides being able to bid and tender for projects on GeBIZ, your account also gives you:
    • access to archives of tender and quotation awards
    • RSS alert notifications

See: 

 

EPPU Supplier

  • Some tenders require suppliers to be registered with the EPPU in order to qualify.
  • The EPPU is the Expenditure and Procurement Policies Unit. This unit is in charge of evaluating whether suppliers of goods and services have sufficient financial resources to undertake Government contracts.
  • Your application will be evaluated according to fixed criteria. You must meet the criteria in order to qualify. For instance, newly formed companies must have paid-up capital of at least S$5,000.
  • You need to be a GeBIZ Trading Partner before you can apply to be an EPPU supplier.
  • Effective 28 Oct 2011, the Government has best sourced the provision of Government Supplier registration services to CrimsonLogic Pte Ltd. The mode of registration (i.e. online via GeBIZ) and the registration criteria remains unchanged.
  • The processing fee for each application is S$37 (excluding GST).
  • The validity period of any approved registration is 3 years as long as you meet the minimum criteria.

See:

 

BCA Supplier

  • Suppliers must be registered with the BCA Contractors Registration System (CRS) in order to take part in construction or construction-related Government projects.
  • You have to read through the Terms of Registration and Specific Registration Requirement before submitting an online application.
  • There are 7 major registration categories:
    • Construction Workhead (CW)
    • Construction-Related Workhead (CR)
    • Mechanical & Electrical Workhead (ME)
    • Maintenance Workhead (MW)
    • Supply Head (SY)
    • Trade Head (TR) and
    • Regulatory Workhead (RW)
  • The requirements include employment of full-time technical personnel, various company certification and licences, minimum financial resources and track record to meet the respective workheads and grades.
  • You are required to submit scanned references from your clients or consultants.
  • It costs SGD552 – SGD3672 to register, depending on the Supply Head or Financial Grade workhead and grade you are applying for.
  • You can contact CRS at:
    Local Toll-Free: 1800 342 5222
    Email: bca_ebacs@bca.gov.sg

See:

Submitting Quotations

Who Can Submit

  • All GeBIZ Trading Partners can bid.

 

How to Submit a Quote via GeBIZ

  • Login to GeBIZ with your ID and Password.
  • Select the quotation from the list of Quotation Notices.
  • Read through the Quotation Notice to make sure you understand exactly what is required.
  • Click on the “Bid” button.
  • Submit your offer and attach required supporting documents (if any).
  • You will be given a Response Number.

 

Things to Take Note Of

  • Attend tender briefings or site show-rounds. You are strongly encouraged to attend these briefings to ensure that you have all the necessary information before you prepare your bids.
  • Apply for required accreditations and qualifications. Some Government agencies may require suppliers to have professional qualifications or accreditations to ensure that the products or services delivered conform to industry standards. For example, cleaning companies must obtain at least a ‘Clean Mark Silver Award’ under the Enhanced Clean Mark Accreditation Scheme before they can be awarded a cleaning contract.
  • You need to submit your quotation on time. Late submissions will not be entertained. If possible, submit your quotation early to avoid a last-minute rush.
  • Double-check the price before submitting. You cannot amend your price after submitting your quote.
  • You should receive a Response Number after you have submitted your quote. Please print this out for future reference.
  • All submissions are confidential until the Invitation-to-Quote is closed. Once the contract is awarded, the details will be posted in “Award Notice”.

 

Evaluation & Approval

  • At least 2 officers from the Government department, board or ministry who put up the quotation will be involved.
  • The first officer is responsible for putting up the quotation notice, receiving and evaluating the quotations.
  • The second officer is responsible for approving the choice of the first officer.
  • The Singapore Government procurement process is open, fair and competitive.
  • All suppliers are evaluated according to whether they can meet the requirements in the quotation notice and whether the offer is value for money.

 

Getting More Information

 

Tendering for Government Contracts

Who Can Bid

  • All GeBIZ Trading Partners can bid.
  • Some tenders may require suppliers to be Expenditure and Procurement Policies Unit (EPPU) or Building and Construction Authority (BCA) registered.
  • You may put in a bid in your own capacity or form a consortium of suppliers to submit a bid.
    • Forming a consortium is useful for tenders of larger value where small suppliers may not be able to meet the financial and operational requirements on their own.
    • Consortiums can be made up of several businesses. They can combine their financial health and turnover to meet tender requirements.
    • For instance, to meet the Net Tangible Assets (NTA) requirement of a tender, the NTA of the consortium is equal to the NTA of the company with the highest NTA plus 50% of the sum of NTAs of all the other member companies.

 

How to Bid

  • Login to GeBIZ with your ID and Password.
  • Select the tender from the list of Tender Notices.
  • Read through the Tender Notice to make sure you understand exactly what is required. The Tender Notice contains the specifications, payment and delivery terms and conditions.
  • Click on the "Next" button and follow the on-screen instructions.
  • Submit your bid and attach supporting documents (if any).
  • You will be given a Response Number.

 

Things to Take Note Of

  • You may also be required to submit hard copies. Please read the tender instructions carefully.
  • You can revise your bid after submitting as long as the tender remains open. You will not be allowed to make any changes after the tender has closed.
  • Always submit your bids early. GeBIZ does not allow for late submissions.
  • After submitting your bid, you should receive a Response Number. Please print this out for future reference.
  • All submissions are confidential until the Invitation-to-Tender is closed.
  • Three hours after a tender is closed, your tender details will be published under "Tender Schedule" on GeBIZ alongside other tenderers.

 

Requirement to Put Up a Security Deposit

  • Some tenders may ask for security deposits.
  • The security deposit will be refunded to you at the end of the contract according to the terms of the contract.
  • The amount of security deposit for goods and services contracts depends on the value of the contract.
    • Below S$500,000 - no security deposit
    • Above S$500,000 - 0%-5% of the contract value
  • For construction contracts, the security deposit is usually 0%-5% of the contract value.

 

Evaluation & Approval

  • The Tender Evaluation Committee evaluates while the Tender Approving Authority approves.
  • Members of the Evaluation Committee will not be part of the Tender Approving Authority.
  • A Tender Evaluation Committee will evaluate the bids based on value for money and critical criteria stated in the tender documents.
  • If you do not meet the critical criteria, you will be disqualified from further evaluation. The critical criteria will not be waived or changed during the evaluation.
  • Suppliers may be asked to give a presentation as part of the evaluation process.
  • The Tender Evaluation Committee will then make a recommendation to the Tender Approving Authority.

 

Possible Outcomes of a Tender

  • The Tender Approving Authority may choose :
    • to award the tender to one or more tenderers
    • not to award the tender
    • to abort the tender
  • Once the tender is awarded, it will be published under “Tender Award Notices” on GeBIZ.

 

Getting More Information

When to Partner with Other Companies

  • Form a ‘consortium’ or partnership when the potential procurement opportunity:
    • is too large for your company to manage
    • requires you to have alternative capabilities or expertise (e.g. systems integrator for mission critical projects)

 

Evaluation Guidelines for Consortium

  • The procuring Government agency will evaluate the consortium based on their combined financial health, i.e. the annual turnover or revenue of its members.
  • The consortium will be evaluated on their Net Tangible Asset (the sum of paid-up capital, revenue reserves and preference shares, among others) and annual turnover/sales/revenue based on the individual member’s EPPU registration.
  • The annual turnover of the consortium will be checked against the turnover/sales/revenue of the member with the highest turnover among the consortium members plus 50% of the sum of turnover of the remaining members.
  • For more details, please see Government Procurement Guidebook for SMEs.

 

Getting More Information

  • The Ministry of Finance (MOF) is in charge of the Government's procurement policy. If you have any concerns over a Quotation or Tender, or would like to give feedback on how to improve procurement processes and practices, you may direct them to MOF via mof_qsm@mof.gov.sg.

 

Give your business that extra edge by subscribing to GeBIZ Alerts. Just sign up with your preferred mailbox to receive alerts of Government procurement opportunities posted on the Government Electronic Business (GeBIZ) portal. It’s easy, fast and FREE.

 

 

Give your business that extra edge by subscribing to GeBIZ Alerts.

Last Modified Date: 23 Oct 2017