22.1 Low Value Contracts may only be used for the implementation of works, or the provision of services, which are of a non-recurring nature. Under no circumstances shall major works be carried out using a series of Low Value Contracts.
22.2 The provision of Article 1 of the Supreme Council for Petroleum No. 1/2005 dated 7.9.2005 prohibits the making of contractual arrangements for the execution of low value works of a similar nature more than once in a period of one month. Controlling Team therefore has a responsibility to ensure that such regulationS Sis complied with at all times. In accordance with the provisions of Resolution No. 1/2005 of the Supreme Council for Petroleum, Contracts Services Team shall prepare a monthly return of all Contracts let directly by the Company i.e. upto KD. 1 Million (including Low Value Contracts) and shall submit this to the Minister of Energy.
22.3 Low Value Contracts (L Type) shall not exceed KD. 30,000/- in value. Any works or services performed whose value does not exceed KD. 1000/- may be handled on an “approved invoice” basis with no formal contract for such works/services being required, in line with the Company’s Executive Delegation of Authority.
22.4 The Controlling Team shall be responsible for the preparation of Request for Proposal (RFP) documents, bidders’ list and invitation to bid.
22.5 The Team Leader of the Controlling Team shall have the authority to invite quotations for and to award Low Value Contracts, subject to Team Leader Contracts’ endorsement.
22.6 The Controlling Team shall ensure that all Low Value Contracts are handled in accordance with the following procedures:
22.6.1 All Invitations to RFP for Low Value Contracts must contain a statement that it is a “minor work/material contract.
22.6.2 The Controlling Team shall ensure that a reasonable number of registered contractors/ vendors are given the opportunity to compete. Unless there is specific justification for limiting the number, this should not normally be less than five (5). It should be noted that past performance or Company experience with a particular contractor/vendor should not be considered as the sole criteria for selection. In all cases, the originator of a Low Value Contract shall act in such a way as to give potential contractors/vendors fair and equal opportunity to compete for works/services required by the Company.
22.6.3 The Controlling Team shall forward the LVC draft, the proposed bidder’s list and the Invitation to Tender to the Contracts Team for vetting and shall incorporate the Contracts Team’s comments. The Controlling Team shall forward the LVC documents to the Contracts Team as soon as practicable. If the Contracts Team has any comments, these shall be brought to the Controlling Team’s attention without delay.
22.6.4 Tenderers/vendors shall submit their bids by the closing date and time specified in the RFP through sealed envelopes to be deposited in the tender box located in Commercial Affairs Group’s premises.
22.6.5 Other than in emergency circumstances, all bids should be received in sealed envelopes and not opened until the designated time of opening. In this regard, faxed bids shall not be acceptable other than where specifically approved by the Team Leader concerned. In any event, the tenderer shall furnish a hard copy of the bid as soon as possible thereafter.
22.6.6 Bids Opening Committee shall open the Tender box for the sealed bids for the RFP. Received bids shall be recorded in the “Schedule of Bids” and forwarded to the Controlling Team for necessary action.
22.6.7 The Controlling Team shall carry out a complete and comprehensive technical and commercial evaluation of all bids received as appropriate.
22.6.8 Following the evaluation and its approval by the Team Leader of the Controlling Team, he shall present the recommendation for award of the Contract to his Group Manager for approval prior to forwarding the same to Team Leader Contracts for review and endorsement.
22.6.9 Following the Team Leader Contracts endorsement, the Controlling Team shall prepare the Contract together with any other documents that may be appropriate.
22.6.10 The Company’s signatory shall be the Controlling Team Leader.
22.6.11 Where appropriate, the Controlling Team shall ensure that all necessary insurance coverage is in place for the duration of the contract and any extension thereto. .
22.6.12 The Controlling Team shall maintain detailed records of all Low Value Contracts including the tendering details. In particular, records shall contain clear justification for award, especially where a Contract has been let to a contractor other than the lowest bidder. Progress reports must also be maintained in order to monitor completion of the Works and, in particular to justify any extension or variations that may be necessary during the term of the Contract.
22.6.13 All Amendments to Low Value Contract shall be handled by the Controlling Team subject to approval by its Group Manager and agreement by Team Leader Contracts.
22.6.14 In the event Team Leader Contracts is unable to agree with the Controlling Team’s recommendation for awards and Amendments to Low Value Contracts, the case, together with the Team Leader Contracts’ remarks shall be referred by Team Leader Contracts to the KOC Tender Committee for ruling, copied to the Group Manager concerned.
22.6.15 KOC Tender Committee approval is required if the cumulative value of Amendments raises the total Contract Price to more than KD. 30,000/-.