Approval of Contract Award

A Procuring Entity (PE) sought guidance as follows:

1. The PE highlights section 44 (5)(b) of the Public Procurement Act 2015 (as amended) (“the Act”) in part, which states:

 “… the notice of acceptance… shall constitute the award of contract”

The PE is of the view that this section appears to permit contract award following the issuance of the notice of acceptance, and thus requires guidance as to the veracity of this position;

2. The PE further posits that they have always awaited all requisite approvals prior to the execution of a contract, in keeping with sections 43(5) and 44(6) and (7);

3. However, guidance is required relating to whether the execution of a procurement contract without the prior approval of Cabinet would constitute a  breach of GoJ procurement rules;

4. The PE further states that they are in possession of the PPC’s endorsement and it is expected that a Cabinet Submission will be made before the end of the month. The current contract for the service in question (Group Health) expires on March 31, 2022.