Understanding government procurement procedures

By Lindsey Turnbull

In June, the Central Procurement Office(CPO) produced a seminar for small and medium-sized business owners to understand the necessary procedures they must take in order to win government bids. This is the second such offering this year, furthering the CPO’s aim to engage with suppliers more frequently. Victor Crumbley, Procurement Manager with the CPO, gave some useful insight to help business owners get prepared for success.

Government contracts can be a lucrative source of income for a wide variety of businesses across the Cayman Islands. From photography to cleaning services, building surveying to food and beverage provision, there is a huge range of goods and services that government needs on a consistent basis. There must, therefore, be a process for the awarding of government contracts to ensure fairness and that government is getting the best value for money and the best services possible.

The Procurement Act (2023 Revision) & Procurement Regulations (2022 Revision) provide a legal framework of how government departments must obtain goods and services on behalf of the Cayman Islands citizens.

Mr Crumbley explained that the structure set out in the Act and Regulations lays out protections and principles for all parties that must be adhered to.

“Some of these principles include informed decision-making, fair dealing, competitive supply, and transparency,” he explained. “Contracts should be given fairly; a process ensures delivered value for money. This is not just about the lowest price but also a vendor’s capability, quality of goods and services, etc. There are also provisions for the inclusion of small and medium-sized businesses to ensure they are equally considered in public procurement and are afforded the same access to opportunities as larger-scale organisations.” 

All businesses wishing to offer their goods or services to the government need to undertake the procurement process.

“The process is laid out by the government entity with respect to the threshold amount, as different values require specific criteria,” Mr Crumbley said. “To participate, the respective business must comply with the requirements for all bid submissions, which will consist of the eligibility, technical, and pricing components.”

He advised that should a local business wish to bid for a government contract, they should sign up online to the government’s Bonfire Portal (www.cayman.bonfirehub.com) for public procurement.

“All procurements valued over $100,000 must be listed on this platform as stated in the Procurement Regulations. The online portal also has projects for lower values, and businesses do not have to pay for access to these opportunities. Registration is straightforward, and businesses should monitor the site daily as projects open and close frequently,” he explained.

To provide goods and services to the government, a business must be licensed to do so and should possess a valid trade & business licence from the Department of Commerce and Investment. Being familiar with the local Licensing, Labor & Pensions Acts, along with the Procurement Act and Regulations, would be advantageous, Mr Crumbley stated. 

Business owners should know that every procurement is different, and businesses should treat them as such.

“They must pay close attention to what the tendering document is requesting and the weighted scores attributed to each section,” he advised. “Some items are for eligibility, such as a trade & business licence, child protection training certifications, insurance/pension coverage documentation, etc. Technical items, such as product warranties or product specifications documentation, can be required. Before pricing is checked, a detailed proposal or quote is requested from the business on how they will deliver the goods and/or services tendered.”

When it comes to the length of time it takes for the bid to be processed, Mr Crumbley acknowledged that the answer was not as straightforward as most would like.

“The process will vary depending on the contract amount and its respective threshold’s approval processes as required by the Act and Regulations. For example, a project valued at $250,000 and above can range from 6 to 8 months from start to finish, while a project of a lesser value of $60,000 can take a mere few weeks. It will boil down to the entity’s ability to conduct evaluations and the administration of processing the procurement documentation, and of the approving committee’s meeting schedules,” he said.