Citing six reasons, justify why an accounting officer of a procuring entity, may, at any time, prior to notification of tender award, terminate or...

      

Citing six reasons, justify why an accounting officer of a procuring entity, may, at any time , prior to notification of tender award, terminate or cancel procurement or asset disposal proceedings without entering into a contract.

  

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Mr.
TERMINATION OR CANCELLATION OF PROCUREMENT AND ASSET DISPOSAL PROCEEDINGS:
1.If No Tender Was Received; after the specified time for a specific tender that was advertised lapses without receiving any bids from suppliers who might be interested, the accounting officer of the procuring entity can terminate the procurement/asset disposal proceedings.

2. Inadequate Budgetary Provisions; when the accounting officer realizes that the amount allocated in the budget for that particular procurement is not enough and cannot match the least responsive bid price, the officer will be still within the law to terminate or cancel the proceedings.

3. When there is evidence that prices of the bids are above the market price; Many procuring entities carry out their own market survey, by comparing the received bid prices and their own findings about prices from the conducted market survey, and they realize that the bid prices are higher, the accounting officer can terminate the proceedings as required by law.

4. When all Evaluated Tenders are non-responsive; after going through the evaluation process that is evaluating the bids received from suppliers, and they realize that all received bids do not meet the required/set financial and technical standard guidelines, the accounting officer can terminate/cancel the procurement/asset disposal proceedings.

5. Upon receiving subsequent evidence of engagement in fraudulent or corrupt practices by the tenderer; if it comes to the attention of the accounting officer that the tenderer gave gifts or kickbacks that can influence the outcome of the tendering process and enough evidence is availed to the officer, then the officer can terminate the procurement/asset disposal proceedings.

6. Civil Commotion, Hostilities or An Act of War; certain situations can heavily impact on both the production and distribution of certain products in a negative way. For instance, post-election violence in countries, tribal community clashes, hurricanes and earthquakes. The accounting officer can terminate the procurement/asset disposal proceedings if the required products can be affected by this natural disaster/unavoidable circumstances.

Supply Chain Expert answered the question on October 3, 2018 at 20:01


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