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PART 6 - MISCELLANEOUS 16. 17. 18. 19. 20. 21. SCHEDULE 1 Principles of Procurement SCHEDULE 2 Director of the Central Procurement Office SCHEDULE 3 Constitution of the Public Procurement Committee SCHEDULE 4 The Responsibilities of the Public Procurement Committee SCHEDULE 5 Meetings of the Public Procurement Committee SCHEDULE 6 Roles and Functions ENDNOTES Procurement Act (2023 Revision) (2023 Revision) PART 1 - PRELIMINARY\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Short title 1. This Act may be cited as the Procurement Act (2023 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Interpretation 2. In this Act \u2014 \u201cbid\u201d means a formal submission in response to a competition document; \u201cbidder\u201d means a supplier that submits a bid; \u201cbusiness case\u201d means a document that provides a justification for undertaking a project or programme, to support decision-making for an investment;1 \u201ccapital project\u201d means any item that will be capitalised on the balance sheet in accordance with generally accepted accounting practice, and includes the construction or purchase of physical assets and the purchase or development of computer hardware or software; \u201cChief Executive Officer\u201d includes Managing Director or such other title by which the head of a statutory authority or government company is called; \u201ccompetition document\u201d means the document used to solicit bids and includes an invitation to tender, a request for proposals, a request for quotations, and a request for supplier qualifications; Procurement Act (2023 Revision) \u201ccompetitive process\u201d means any of the methods of procurement recognised under the UNCITRAL Model Law on Public Procurement (2011) or as may be prescribed, except single source procurement; \u201cdirect award\u201d means a contract award outside of a competitive process and includes single source procurement; \u201cDirector\u201d means the Director of the Central Procurement Office; \u201cemergency\u201d means a situation where \u2014 (a) a state of emergency is proclaimed under the Emergency Powers Act (2006 Revision); (b) an exceptional circumstance occurs with an immediate risk to the safety or health of an employee or a member of the public; or (c) there is an immediate risk of serious damage to public or private property; \u201centity\u201d means any governmental body or party acting on behalf of a governmental body and includes a ministry, portfolio, statutory authority, government company, the Office of the Ombudsman and the Audit Office; \u201centity procurement committees\u201d means the procurement committee for an entity; \u201clife time value\u201d means the discounted net present value of financing obligations calculated using a discount rate of 3.5% which is subject to periodic review to assess its appropriateness and includes the systematic consideration of all relevant costs and revenues associated with the life cycle of the goods, services or works; \u201clocal benefits test\u201d means a request that suppliers, as part of the response to a government competition document, set out \u2014 (a) the benefit to the economy of the respective bid; and (b) specific commitments to benefit local business; \u201cmajor project\u201d means a project that is of a value, complexity, risk level or profile that requires that it is given a significant allocation of time and resources from the entity as well as the involvement of stakeholders, other entities, and the Central Procurement Office; \u201cprocurement\u201d means the process by which an entity acquires goods, services or works from an external supplier to support the delivery and maintenance of government programmes, services and infrastructure, such process spanning the complete life cycle from initial concept and definition of the business need to the effective management of markets, through to the end of the useful life of an asset or end of services contract; \u201cprocurement project\u201d means any purchase of goods, services or works by an entity and includes major projects and direct awards; Procurement Act (2023 Revision) \u201cprocurement valuation\u201d means the estimated purchase or contract value prior to initiating a procurement project; \u201cpublic officer\u201d includes an employee of a statutory authority, government company, the Office of the Ombudsman, the Audit Office or any other governmental body which is required to comply with this Act; \u201crelevant costs and revenues\u201d means the costs and revenues that are attributable to owning and using the goods, services or works and includes, but is not limited to, planning design, acquisition, use, maintenance and final disposition; and \u201csupplier\u201d means any person who has submitted a bid, offer, or arrangement or who may submit a bid, offer or arrangement or who has been awarded a contract, including subcontractors, owners, directors, officers, employees, agents, or any affiliated body or any other related parties;\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Application 3. (1) This Act applies to procurement by any entity except \u2014 (a) procurement between government entities; (b) procurement by entities during an emergency as defined in this Act; (c) contracting for employment; (d) contracting with an entity established by public sector employees to carry out contracted services for government, this exception applying only to the initial awarding of a fixed term contract for a period up to a maximum of five years; (e) acquisition or disposition of land or any immovable property or rights in relation thereto; (f) purchasing original works of art or artefacts; (g) insignias for the award of national honours; (h) remittances relating to insurance premiums, pensions and benefits; (i) education, accreditation or conferences; (j) postage and subscriptions for newspapers, magazines and periodicals; (k) purchases from regulated utilities including electricity, water and sewage; and (l) purchase agreements with community or social groups supplying outputs to government; (2) Entities carrying on procurement to which this Act does not apply, shall ensure there is \u201cvalue for money\u201d in accordance with the principles set out in section 4 and Schedule 1. Procurement Act (2023 Revision) PART 2 - PRINCIPLES OF PROCUREMENT\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Principles 4. Every entity shall carry out procurement of goods and services in accordance with this Act and the principles set out in Schedule 1 shall be observed at all times by public officers involved in procurement.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Procurement Code of Conduct 5. (1) The Director, after consultation with the Chief Officer in the Ministry of Finance, shall by order published in the Gazette, establish a code of conduct for entities, such code providing for \u2014 (a) conflict of interest in public procurement; (b) the conduct of persons employed to carry out public procurement or persons who are otherwise involved in procurement; (c) the conduct of suppliers seeking to conduct business with an entity; (d) record-keeping and disclosure requirements; and (e) such other matters that the Director or the Chief Officer in the Ministry of Finance may determine are necessary. (2) The standard of conduct set out in the code of conduct shall constitute the minimum standard required for the diligent and competent discharge of public service duties and responsibilities. (3) A public officer shall comply with the procurement code of conduct and failure to do so in a material respect shall be grounds for disciplinary proceedings. (4) A supplier shall comply with the code of conduct and a supplier who fails to do so shall be liable to sanctions, including disqualification from participating in the public procurement process for a period of time or permanently, as the Chief Officer or the Chief Executive Officer may determine. PART 3 - CENTRAL PROCUREMENT OFFICE AND PUBLIC PROCUREMENT COMMITTEE\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Central Procurement Office 6. The Central Procurement Office is established and the Office shall be responsible for providing training, advice and guidance to all entities and persons involved in public procurement.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Director 7. There shall be appointed a Director of the Central Procurement Office whose responsibilities shall be as set out in Schedule 2. Procurement Act (2023 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Public Procurement Committee 8. (1) There is established a Public Procurement Committee the constitution of which shall be as set out in Schedule 3. (2) The Committee shall provide external oversight of the public procurement process in accordance with the prescribed thresholds and shall have the responsibilities set out in Schedule 4. (3) No Member of the Cayman Islands Parliament or of the Judiciary is eligible for appointment to the Public Procurement Committee. (4) Members of the Public Procurement Committee, except public officers may, at the discretion of the Deputy Governor, be paid such remuneration, whether by way of salary or fees and such reasonable allowances in respect of expenses properly incurred by a member in the performance of duties under this Act. (5) Meetings of the Public Procurement Committee shall be in accordance with Schedule 5. (6) The Chief Officer of the Ministry of Finance shall appoint a person, not being a member of the Committee, to be the recording secretary of the Public Procurement Committee. (7) The recording secretary shall be responsible for preparing and distributing the agenda for meetings of the Committee and the taking of minutes. (8) The remuneration and expenses of the recording secretary shall be an expense of the Ministry of Finance. (9) In the event that a Chief Officer or a Chief Executive Officer does not accept the assessment of the Public Procurement Committee or the entity procurement committee, in a given procurement project, the Chief Officer or the Chief Executive Officer, as the case may be, shall inform the Director of Procurement of the reasons for departing from the recommendation of the committee.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Roles and functions 9. The roles and functions of the Cabinet, the Ministry of Finance, the Chief Officer, the Chief Executive Officer and entity procurement committees are set out in Schedule 6. PART 4 - ENTITY PROCUREMENT COMMITTEES\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Entity procurement committees 10. Every entity shall establish an entity procurement committee to undertake the process of procurement in the respective entity. Procurement Act (2023 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Constitution of committees 11. (1) A Chief Officer or Chief Executive Officer, or the person designated by either Officer, shall appoint a chairman and at least two persons to be members of an entity\u2019s procurement committee, such committee handling procurements within the entity. (2) The Chief Officer or Chief Executive Officer in making an appointment under subsection (1) shall be satisfied that the person \u2014 (a) has the requisite knowledge and skills in law and finance and the integrity and good reputation to carry out the duties in a competent and politically neutral manner; and (b) has no financial or other interest likely to affect the carrying out of the duties as a member of the committee. (3) Where the entity is a statutory authority or government company, the Chief Executive Officer shall include the respective Chief Officer\u2019s nominee as a member of the entity procurement committee, provided that the nominee meets the criteria for appointment set out in this Act. (4) A Chief Officer, a Chief Executive Officer, a member of the board of a statutory authority or a government company, a Member of the Cayman Islands Parliament and a member of the Judiciary is not eligible for appointment as a member of an entity procurement committee. (5) The Chief Officer shall ensure that no members of the committee have a direct \u201csupervisor-supervisee\u201d relationship to avoid the perception or possibility of undue influence.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Operations of committee 12. (1) An entity procurement committee shall operate in line with this Act and shall report to the Chief Officer, or the Chief Executive Officer, as the case may be, the outcome of any competitive bidding process carried out under a procurement project. (2) The Chief Officer or the Chief Executive Officer shall inform the bidders, within such time frame as may be prescribed, of the outcome under subsection (1). PART 5 - PROCUREMENT METHODS AND LIMITS\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Procurement methods 13. The Cabinet shall, by way of regulations, prescribe the respective thresholds, approval processes and the methods of procurement to be utilised in the Islands. Procurement Act (2023 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Procurement valuation 14. (1) An accurate estimate of the total value of a procurement project, including the delivery, installation, training and other fees integrally linked to the acquisition, is required prior to the start of the competitive process and shall include all of the costs payable to the supplier by the entity which is involved in the procurement process. (2) An entity shall not split or subdivide a contract to acquire goods, services or works in order to limit competition or to avoid the requirements under this Act, except where \u2014 (a) it can be demonstrated that the splitting or subdividing of a contract will facilitate economic development in accordance with the Islands\u2019 development preference; and (b) the decision to split or subdivide a contract is included in an approved written business case.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Direct award process 15. (1) A direct award process shall be documented and justified based on the specific circumstances and shall be subject to the prescribed thresholds. (2) Approval for commencing a direct award process shall be obtained by the respective procurement committee depending on the threshold limit set for the procurement project. (3) Every contract awarded pursuant to a direct award process shall be reported in such form as may be prescribed. PART 6 - MISCELLANEOUS\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Economic development preference 16. (1) In assessing value for money, an entity shall consider the socio-economic impact and benefits that a procurement project may create, particularly as it relates to small and medium sized suppliers that are operating in the Islands. (2) Subject to the requirement to adhere to the principles of procurement, an entity shall give preference to suppliers who are businesses operating in accordance with the Trade and Business Licensing Act (2021 Revision). (3) The Cabinet may prescribe such criteria, including thresholds, for entities to \u2014 (a) undertake pre-procurement impact assessments on local suppliers; (b) where adequate local capability exists, solicit bids from businesses operating in accordance with the Trade and Business Licensing Act (2021 Revision); Procurement Act (2023 Revision) (c) consider disaggregation of major procurement projects where value for money is achievable, such disaggregation being included in the business case and being subject to approval by the appropriate procurement committee; (d) adopt a local benefits test for all procurements within specified thresholds; and (e) undertake a plan for local industry participation, as may be prescribed, prior to embarking on major procurement projects.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"Local benefits test 17. (1) Entities shall take into account in the evaluation process information provided by a supplier as a result of any requirement for a local benefits test. (2) Submission of the information by a supplier is voluntary, however, where the relevant information is excluded the committee shall not be able to score the respective bid in relation to the criteria.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_18\", \"num\": \"18.\", \"text\": \"Confidentiality 18. (1) A procuring entity shall not, in its communications with suppliers or contractors or with any person, disclose any information if the disclosure of such information threatens the essential security interests of the Government or the disclosure of such information would \u2014 (a) be contrary to law; (b) impede law enforcement; (c) prejudice the legitimate commercial interests of the suppliers or contractors; or (d) impede fair competition, except where the disclosure of that information is required by law or ordered by a court and, in such case, subject to the conditions of such an order. (2) A procuring entity shall treat submissions in such a manner as to avoid the disclosure of their contents to competing suppliers or contractors or to any other person not authorised to have access to the information, other than when providing or publishing information required by law. (3) Any discussions, communications, negotiations or dialogue between a procuring entity and a supplier or contractor shall be confidential and a party to such discussions, communications, negotiations or dialogue shall not disclose to any other person any related technical, price or other information without the consent of any other party or parties to such discussions, communications, negotiations or dialogues, unless the disclosure is ordered by a court or required by law. Procurement Act (2023 Revision) (4) Subject to subsection (1), in procurement involving confidential information, a procuring entity may \u2014 (a) impose on suppliers or contractors requirements aimed at protecting confidential information; and (b) require that suppliers or contractors ensure that their sub-contractors, directors, officers and employees comply with the requirements aimed at protecting confidential information. (5) Every public officer involved in a public procurement project shall keep all information, deliberations and decisions relating to the procurement project confidential, subject to any disclosure required by law or by order of a court, and shall be required to sign a confidentiality statement for each procurement project that the public officer is involved with. (6) Every Chief Officer or Chief Executive Officer shall be responsible for the disclosure of pertinent and permissible information relating to the award of a contract.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_19\", \"num\": \"19.\", \"text\": \"Immunity 19. A member of the Public Procurement Committee, an entity procurement committee or the staff of the Central Procurement Office, shall not be personally liable in damages for any act done or omitted to be done in the discharge or purported discharge of the member\u2019s respective duties under this Act unless it is shown that the act or omission was in bad faith.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_20\", \"num\": \"20.\", \"text\": \"Regulations 20. The Cabinet may make regulations prescribing all matters that are required or permitted under this Act to be prescribed, or are necessary or convenient to be prescribed for giving effect to the purposes of this Act and, notwithstanding the generality of the foregoing, the Cabinet may make regulations providing for \u2014 (a) the procurement methods; (b) the procedure for the selection of an appropriate procurement method; (c) the training of persons involved in public procurement; and (d) the reporting of contract awards.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_21\", \"num\": \"21.\", \"text\": \"Savings and transitional 21. (1) Every procurement project being carried out that has not been started on 1st May, 2018, the commencement date of the Procurement Act, 2016 (Law 47 of 2016), shall be deemed to be a procurement project under this Act and this Act shall apply accordingly. (2) Notwithstanding section 20, the Cabinet may make regulations to provide for such further savings, transitional or consequential provisions to have effect in Procurement Act (2023 Revision) connection with the coming into operation of any provision of this Law as may be necessary or expedient. (3) Regulations made in accordance with this section may be given retrospective operation to a day not earlier than 1st May, 2018, the commencement date of the Procurement Act, 2016 (Law 47 of 2016) and shall expire one year after they come into force. Procurement Act (2023 Revision) SCHEDULE 1 (Section 3, 4) Principles of Procurement 1. Accountability Effective mechanisms must be in place in order to enable Chief Officers and Chief Executive Officers to discharge their personal responsibility on issues of procurement risk and expenditure. 2. Competitive Supply Public procurement must be carried out by competitive process unless specifically justified in accordance with this Act or Government policy. 3. Consistency Procurement policy shall be similar and consistent across the public sector. 4. Effectiveness Public sector entities should maximise the contribution to the commercial, regulatory and socio-economic goals of Government in a balanced manner appropriate to the procurement requirement. 5. Value for Money The procurement processes should be carried out to achieve the most advantageous combination of cost, quality and sustainability over the life cycle of the project. 6. Fair-dealing Suppliers should be treated fairly and without unfair discrimination, including protection of commercial confidentiality where required. Public sector entities should not impose unnecessary burdens or constraints on suppliers or potential suppliers. 7. Integration Procurement policy should pay due regard to its impact on the Cabinet's other economic and social policies. 8. Integrity There shall be no corruption or collusion with suppliers or other persons involved in a procurement project. 9. Informed decision-making Public sector entities are required to base decisions on accurate information and are required to monitor obligations to ensure that they are being met. 10. Legality Public sector entities shall conform to legal requirements. Procurement Act (2023 Revision) 11. Responsiveness Public sector entities should endeavour to meet the aspirations, expectations and needs of the community served by the procurement. 12. Transparency Public sector entities should ensure that there is openness and clarity in the conduct of the procurement policy including in the carrying out of all actions and decisions. Procurement Act (2023 Revision) SCHEDULE 2 (Section 7) Director of the Central Procurement Office The Director of the Central Procurement Office shall be responsible for \u2014 (a) developing, implementing and carrying out the periodic review and recommendations for adjustment of policies and procedures for procurement to be used by all entities including requirements for business case preparation; (b) Ensuring all procurement laws, regulations, policies and procedures are promoted, publicised and easily accessible to public servants, suppliers and the general public; (c) developing and maintaining standard contract forms, bidding documents, business case templates and any other public procurement related documents to be used by all government entities; (d) monitoring the operation of the public procurement process and compliance with this Act, procurement policies and procedures, and issuing guidance to entities, as required, in any form, including directives, guidelines, instructions, technical notes or manuals, with respect to the conduct of public procurement and the implementation of the Law, policies and procedures; (e) developing and implementing a Code of Conduct, in consultation with the Chief Officer in the Ministry of Finance, for suppliers, procuring entities and all public officers engaged in procurement activities at all stages, such Code specifying standards of conduct, procedures and best practices; (f) advising Chief Officers on the procurement of Major Projects; (g) establishing and maintaining a common, accessible, electronic platform for use by all entities for the purpose of advertising and reporting results of all public procurement opportunities required; (h) establishing and maintaining a contract performance monitoring database; (i) conducting appropriate orientation, training and education for government officials, entity employees, suppliers and interested members of the public on the government\u2019s procurement process; (j) identifying opportunities and establishing government-wide contracts for commonly used goods and services where it can be demonstrated that there is potential for savings through bulk purchasing or consolidation of entity requirements; Procurement Act (2023 Revision) (k) reviewing and advising on the use of the intranet and electronic procurement tools to reduce or replace manual procurement processes and maximise efficiency; (l) co-ordinating and reporting post implementation reviews to demonstrate whether major projects have achieved the objectives of the business case and projects are completed within agreed financial and timeline commitments; (m) compiling statistics on government-wide procurement and preparing an annual public report to be published in the Annual Public Procurement Report; and (n) advising the Public Procurement Committee and entity procurement committees. Procurement Act (2023 Revision) SCHEDULE 3 (Section 8) Constitution of the Public Procurement Committee (1) The Public Procurement Committee shall consist of eight persons and a recording secretary who shall not be entitled to vote. (2) The Governor, acting in accordance with the advice of the Premier, shall appoint from persons in the private sector the chairman and three other members of the Public Procurement Committee, one of whom shall be an attorney-at-law. (3) The Governor acting in accordance with the advice of the Leader of the Opposition shall appoint from persons in the private sector one member of the Public Procurement Committee. (4) The Governor acting in accordance with the advice of the Deputy Governor shall appoint three members of the civil service to the Public Procurement Committee. (5) Each appointee shall be provided with a letter of appointment setting out the terms and conditions of the appointment. (6) Every appointment of a committee member shall be published in the Gazette. (7) Prior to appointing any person to the Committee, the Governor shall be satisfied that \u2014 (a) the person has the skills, knowledge, (procurement, legal and financial) and integrity to carry out the required duties in a highly competent and politically neutral manner; and (b) the person has no financial or other interest likely to affect the exercise of the functions negatively. Procurement Act (2023 Revision) SCHEDULE 4 (Section 8) The Responsibilities of the Public Procurement Committee The Public Procurement Committee shall be responsible for \u2014 (a) ensuring that a business case has been produced and reviewed by the Entity Procurement Committee, and approved in accordance with the appropriate financial thresholds;2 (b) repealed by section 3(b) of the Procurement (Amendment) Act, 2022 [Act 1 of 2022].3 (c) receiving and providing receipts for all bid submissions expected to exceed the specified thresholds; (d) ensuring fairness, impartiality and confidentiality in the treatment of bid submissions in its possession; (e) reviewing the recommendations of the entity procurement committees and verifying that the evaluation process was conducted in accordance with the terms and requirements of the original competition document; (f) providing assurance to the Chief Officers or Chief Executive Officers that the procurement process has complied with the Law and procurement policy; (g) approving applications for \u201cdirect award\u201d procurement; and (h) assessing the recommendation for award of contract and formally communicating this assessment to the Chairman of the respective entity procurement committee. Procurement Act (2023 Revision) SCHEDULE 5 (Section 8) Meetings of the Public Procurement Committee (1) The Public Procurement Committee shall meet at least once every month and at such other times as may be necessary to expedite the work of the Committee and such meetings shall be held at such place and time and on such days as the Committee may from time to time determine. (2) The recording secretary of the Committee shall circulate the agenda and accompanying documents for the meeting to members five working days prior to the meeting. (3) In the absence of the chairperson, a Committee member who is elected by the members present shall preside and perform the functions of the chairperson of the meeting provided that there is a quorum. (4) The quorum of the Committee shall be a simple majority of the Committee members entitled to vote however where a member declares a conflict of interest the quorum will be a simple majority of the remaining members who are entitled to vote. (5) In the event of an equality of votes at any meeting, the chairperson at that meeting shall have a second or casting vote. (6) Where there is a possible or perceived conflict of interest with respect to any matter for discussion, a Committee member shall \u2014 (a) disclose any interest in that matter; and (b) as soon as the matter comes up on the agenda, immediately leave the place in which the deliberations are taking place and shall not participate, directly or indirectly, in the deliberations and shall not return until a decision has been taken on the matter, and the member\u2019s declaration of interest and the absence of the member concerned shall be recorded in the minutes of the meeting. (7) The Committee may establish its own meeting rules and procedures, and establish sub-committees, as it thinks fit including procedures for dealing with items not included on the agenda. (8) Minutes shall be kept in such form as the Committee determines, and shall be confirmed as soon as practicable at the next following meeting of the Committee and signed by the chairperson or other person who presided at the meeting at which the minutes were taken. (9) The minutes must include, at a minimum, the date, time, location of meeting, a list of the Committee members in attendance, the substance of all matters Procurement Act (2023 Revision) discussed or decided, and at the request of any committee member, a record by individual members of any votes taken.4 (10) Within 30 days of the approval of the minutes, the minutes shall be posted on the Public Procurement Committee website. To the extent that any information is exempted in law, the minutes shall be presented with the relevant information in a redacted form.5 (11) The Committee shall provide the Chief Officer of the Ministry of Finance with an unredacted copy of the minutes upon the confirmation of the minutes.6 Procurement Act (2023 Revision) SCHEDULE 6 (Section 9) Roles and Functions A - Role of the Cabinet The role of the Cabinet is to formulate and implement procurement policy that promotes the government\u2019s economic and social objectives, encourages trade and investment in the economy and expands employment opportunities in the Cayman Islands. B - Role of the Ministry of Finance (1) The role of the Ministry of Finance is to develop, implement and maintain macro-economic and budgetary policies and maintain measures, to manage the finances of the Government and exercise supervision and control in all matters relating to the financial affairs of the Cayman Islands. (2) The Chief Officer in the Ministry of Finance is responsible for implementing and monitoring compliance with this Act and shall be responsible for \u2014 (a) providing appropriate resources for and oversight of the Central Procurement Office; (b) providing appropriate resources and oversight of the Public Procurement Committee; (c) ensure that centralised procurement, where appropriate, delivers value for money. C - Role of the Chief Officer in a given Ministry or Portfolio The Chief Officer is responsible for delivering the outputs of government that contribute to the overall outcomes that have been established by the Cabinet. The Chief Officer shall be responsible for \u2014 (a) identifying the need for inputs and directing employees to develop requirements and specifications to be satisfied through procurement; (b) ensuring the creation of and authorising of a documented business case in the prescribed format for procurement, prior to proceeding to market or soliciting bids; (c) ensuring an available and approved funding source prior to soliciting bids; (d) acquiring goods, services and works required to deliver Ministry or Portfolio outputs; (e) authorising Ministry or Portfolio expenditures and the awarding of contracts; Procurement Act (2023 Revision) (f) ensuring Ministry or Portfolio employees involved in procurement have the appropriate procurement related education and training; (g) implementing and ensuring compliance with this Act, and all associated legislation, policies and procedures within the Ministry or Portfolio; (h) ensuring that all procurement related documents are retained and secured at all times and disposed of in accordance with existing records management laws and policy; (i) ensuring the results of all procurement projects within the Ministry or Portfolio are publicly reported in the prescribed format and timeframe specified in regulations and policy; (j) ensuring unsuccessful bidders are notified in writing following the award of contract and provided with an opportunity for a full debriefing by evaluators in the prescribed format and timeline as may be prescribed. D - Role of the Chief Executive Officer (1) The Chief Executive Officer is responsible for delivering the outputs of the public authority that contribute to the overall outcomes that have been established by the Cabinet. (2) The Chief Executive Officer of each public authority will be responsible for \u2014 (a) identifying the need for inputs and directing their employees to develop requirements and specifications to be satisfied through procurement; (b) ensuring the creation of and authorising of a documented business case in the format prescribed in regulations for the procurement, prior to proceeding to market or soliciting bids; (c) ensuring an available and approved funding source prior to soliciting bids; (d) acquiring the goods, services and works required to deliver the public authority outputs; (e) authorising public authority expenditures and the awarding of contracts; (f) ensuring public authority employees involved in procurement have appropriate procurement-related education and training; (g) implementing and ensuring, within their public authority, compliance with this Act, and all associated regulations, policies and procedures; (h) ensuring all procurement related documents are retained and secured at all times and disposed of in accordance with existing records management laws and regulations; (i) ensuring the results of all procurement projects within the public authority are publicly reported in the format and timeframe specified in regulations and policy; Procurement Act (2023 Revision) (j) ensuring unsuccessful bidders are notified in writing following the award of contract and provided with an opportunity for a full debriefing by evaluators in the format and timeline as may be prescribed. E - Role of the Entity Procurement Committees (1) The role of an entity procurement committee is to support the Chief Officer, or the Chief Executive Officer, as the case may be, in delivering the outputs of government that contribute to the overall outcomes that have been established by the Cabinet including the acquisition of goods, services and works within prescribed limits and its principal accountability shall be to the Chief Officer for Ministry or Portfolio procurement or the Chief Executive Officer for Statutory Authority or Government Company procurement. (2) An entity procurement committee shall be responsible for \u2014 (a) reviewing the business case for goods, services or works being procured in accordance with prescribed thresholds; (b) ensuring that competition documents are reviewed prior to them being issued, in order to ensure that they are consistent with the relevant business case;7 (c) reviewing and providing a receipt for all eligible bids; (d) ensuring fairness, impartiality and confidentiality in the treatment of bid submissions in its possession; (e) providing assurance to the Chief Officers or Chief Executive Officers, as the case may be, that the procurement process has complied with the Law and procurement policy; (f) ensuring that the evaluation process is conducted in accordance with the terms and requirements of the competition documents; (g) presenting the evaluation report and recommendation to the Public Procurement Committee when exceeding prescribed thresholds and verifying that the evaluation process was conducted in accordance with the terms of the original competition document; (h) making the recommendation for award of contract to the Chief Officer or Chief Executive Officer as the case may be; (i) forwarding reports on procurement projects to the Director of Central Procurement for informational and statistical purposes; (j) reporting the results of all procurement projects in the prescribed format and timeframe; (k) reviewing the draft contract to ensure that the tender price and scope are consistent with the original competition document; and Procurement Act (2023 Revision) (l) reviewing the draft contract prior to contract signing to ensure that the agreed scope is consistent with the original competition document. Publication in consolidated and revised form authorised by the Cabinet this 10th day of January, 2023. Kim Bullings Clerk of the Cabinet Procurement Act (2023 Revision) ENDNOTES ENDNOTES Table of Legislation history: SL # Law\/Act #  Legislation Commencement  Gazette 1\/2022 Procurement (Amendment) Act, 2022 28-Jun-2022 LG24\/2022\/s1 56\/2020 Citation of Acts of Parliament Act, 2020 3-Dec-2020 LG89\/2020\/s1 14\/2018 Procurement Law, 2016 (Commencement) Order, 2018 12-Mar-2018 G6\/2018\/s1 47\/2016 Procurement Law, 2016 1-May-2018 GE96\/2016\/s4 Table of Endnote references: 1 S.2 inserted by S.2 of Act 1 of 2022. 2 Sch 4(a) replaced by S.3 of Act 1 of 2022. 3 Sch 4(b) repealed by S.3 of Act 1 of 2022. 4 Sch 5(9) amended by S.4 of of Act 1 of 2022. 5 Sch 5(10) amended by S.4 of of Act 1 of 2022. 6 Sch 5(11) amended by S.4 of of Act 1 of 2022. 7 Sch 6(E)(2)(b) amended by S.5 of of Act 1 of 2022. 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\u2014\nLaw 47 of 2016-24th October, 2016\nAct 56 of 2020-7th December, 2020\nAct 1 of 2022-8th June, 2022.\n\nConsolidated and revised this 31st day of December, 2022.\n\nProcurement Act (2023 Revision)\nArrangement of Sections\n\nc\nRevised as at 31st December, 2022\nPage 3\n\nCAYMAN ISLANDS\n\nPROCUREMENT ACT\n(2023 Revision)\nArrangement of Sections\nSection\nPage\nPART 1 - PRELIMINARY\n1.\nShort title ...................................................................................................................................5\n2.\nInterpretation .............................................................................................................................5\n3.\nApplication .................................................................................................................................7\nPART 2 - PRINCIPLES OF PROCUREMENT\n4.\nPrinciples ...................................................................................................................................8\n5.\nProcurement Code of Conduct ...................................................................................................8\nPART 3 - CENTRAL PROCUREMENT OFFICE AND PUBLIC\nPROCUREMENT COMMITTEE\n6.\nCentral Procurement Office .......................................................................................................8\n7.\nDirector ......................................................................................................................................8\n8.\nPublic Procurement Committee .................................................................................................9\n9.\nRoles and functions ...................................................................................................................9\nPART 4 - ENTITY PROCUREMENT COMMITTEES\n10.\nEntity procurement committees ..................................................................................................9\n11.\nConstitution of committees ....................................................................................................... 10\n12.\nOperations of committee .......................................................................................................... 10\n\nArrangement of Sections\nProcurement Act (2023 Revision)\n\nPage 4\nRevised as at 31st December, 2022\nc\n\nPART 5 - PROCUREMENT METHODS AND LIMITS\n13.\nProcurement methods ............................................................................................................. 10\n14.\nProcurement valuation ............................................................................................................. 11\n15.\nDirect award process ............................................................................................................... 11\nPART 6 - MISCELLANEOUS\n16.\nEconomic development preference .......................................................................................... 11\n17.\nLocal benefits test .................................................................................................................... 12\n18.\nConfidentiality .......................................................................................................................... 12\n19.\nImmunity .................................................................................................................................. 13\n20.\nRegulations ............................................................................................................................. 13\n21.\nSavings and transitional ........................................................................................................... 13\nSCHEDULE 1\n15\nPrinciples of Procurement\n15\nSCHEDULE 2\n17\nDirector of the Central Procurement Office\n17\nSCHEDULE 3\n19\nConstitution of the Public Procurement Committee\n19\nSCHEDULE 4\n20\nThe Responsibilities of the Public Procurement Committee\n20\nSCHEDULE 5\n21\nMeetings of the Public Procurement Committee\n21\nSCHEDULE 6\n23\nRoles and Functions\n23\nA - Role of the Cabinet ...................................................................................................................... 23\nB - Role of the Ministry of Finance ..................................................................................................... 23\nC - Role of the Chief Officer in a given Ministry or Portfolio ............................................................... 23\nD - Role of the Chief Executive Officer .............................................................................................. 24\nE - Role of the Entity Procurement Committees ................................................................................ 25\nENDNOTES\n27\nTable of Legislation history: ............................................................................................................... 27\nTable of Endnote references: ............................................................................................................ 27\n\nProcurement Act (2023 Revision)\nSection 1\n\nc\nRevised as at 31st December, 2022\nPage 5\n\nCAYMAN ISLANDS\n\nPROCUREMENT ACT\n(2023 Revision)\n\nPART 1 - PRELIMINARY\n1.\nShort title\n1.\nThis Act may be cited as the Procurement Act (2023 Revision).\n2.\nInterpretation\n2.\nIn this Act \u2014\n\u201cbid\u201d means a formal submission in response to a competition document;\n\u201cbidder\u201d means a supplier that submits a bid;\n\u201cbusiness case\u201d means a document that provides a justification for undertaking\na project or programme, to support decision-making for an investment;1\n\u201ccapital project\u201d means any item that will be capitalised on the balance sheet\nin accordance with generally accepted accounting practice, and includes the\nconstruction or purchase of physical assets and the purchase or development of\ncomputer hardware or software;\n\u201cChief Executive Officer\u201d includes Managing Director or such other title by\nwhich the head of a statutory authority or government company is called;\n\u201ccompetition document\u201d means the document used to solicit bids and includes\nan invitation to tender, a request for proposals, a request for quotations, and a\nrequest for supplier qualifications;\n\nSection 2\nProcurement Act (2023 Revision)\n\nPage 6\nRevised as at 31st December, 2022\nc\n\n\u201ccompetitive process\u201d means any of the methods of procurement recognised\nunder the UNCITRAL Model Law on Public Procurement (2011) or as may be\nprescribed, except single source procurement;\n\u201cdirect award\u201d means a contract award outside of a competitive process and\nincludes single source procurement;\n\u201cDirector\u201d means the Director of the Central Procurement Office;\n\u201cemergency\u201d means a situation where \u2014\n(a)\na state of emergency is proclaimed under the Emergency Powers Act (2006\nRevision);\n(b) an exceptional circumstance occurs with an immediate risk to the safety or\nhealth of an employee or a member of the public; or\n(c)\nthere is an immediate risk of serious damage to public or private property;\n\u201centity\u201d means any governmental body or party acting on behalf of a\ngovernmental body and includes a ministry, portfolio, statutory authority,\ngovernment company, the Office of the Ombudsman and the Audit Office;\n\u201centity procurement committees\u201d means the procurement committee for an\nentity;\n\u201clife time value\u201d means the discounted net present value of financing\nobligations calculated using a discount rate of 3.5% which is subject to periodic\nreview to assess its appropriateness and includes the systematic consideration\nof all relevant costs and revenues associated with the life cycle of the goods,\nservices or works;\n\u201clocal benefits test\u201d means a request that suppliers, as part of the response to a\ngovernment competition document, set out \u2014\n(a)\nthe benefit to the economy of the respective bid; and\n(b) specific commitments to benefit local business;\n\u201cmajor project\u201d means a project that is of a value, complexity, risk level or\nprofile that requires that it is given a significant allocation of time and resources\nfrom the entity as well as the involvement of stakeholders, other entities, and\nthe Central Procurement Office;\n\u201cprocurement\u201d means the process by which an entity acquires goods, services\nor works from an external supplier to support the delivery and maintenance of\ngovernment programmes, services and infrastructure, such process spanning the\ncomplete life cycle from initial concept and definition of the business need to\nthe effective management of markets, through to the end of the useful life of an\nasset or end of services contract;\n\u201cprocurement project\u201d means any purchase of goods, services or works by an\nentity and includes major projects and direct awards;\n\nProcurement Act (2023 Revision)\nSection 3\n\nc\nRevised as at 31st December, 2022\nPage 7\n\n\u201cprocurement valuation\u201d means the estimated purchase or contract value prior\nto initiating a procurement project;\n\u201cpublic officer\u201d includes an employee of a statutory authority, government\ncompany, the Office of the Ombudsman, the Audit Office or any other\ngovernmental body which is required to comply with this Act;\n\u201crelevant costs and revenues\u201d means the costs and revenues that are\nattributable to owning and using the goods, services or works and includes, but\nis not limited to, planning design, acquisition, use, maintenance and final\ndisposition; and\n\u201csupplier\u201d means any person who has submitted a bid, offer, or arrangement or\nwho may submit a bid, offer or arrangement or who has been awarded a contract,\nincluding subcontractors, owners, directors, officers, employees, agents, or any\naffiliated body or any other related parties;\n3.\nApplication\n3.\n(1) This Act applies to procurement by any entity except \u2014\n(a)\nprocurement between government entities;\n(b) procurement by entities during an emergency as defined in this Act;\n(c)\ncontracting for employment;\n(d) contracting with an entity established by public sector employees to carry\nout contracted services for government, this exception applying only to the\ninitial awarding of a fixed term contract for a period up to a maximum of\nfive years;\n(e)\nacquisition or disposition of land or any immovable property or rights in\nrelation thereto;\n(f)\npurchasing original works of art or artefacts;\n(g) insignias for the award of national honours;\n(h) remittances relating to insurance premiums, pensions and benefits;\n(i)\neducation, accreditation or conferences;\n(j)\npostage and subscriptions for newspapers, magazines and periodicals;\n(k) purchases from regulated utilities including electricity, water and\nsewage; and\n(l)\npurchase agreements with community or social groups supplying outputs\nto government;\n(2) Entities carrying on procurement to which this Act does not apply, shall ensure\nthere is \u201cvalue for money\u201d in accordance with the principles set out in section 4\nand Schedule 1.\n\nSection 4\nProcurement Act (2023 Revision)\n\nPage 8\nRevised as at 31st December, 2022\nc\n\nPART 2 - PRINCIPLES OF PROCUREMENT\n4.\nPrinciples\n4.\nEvery entity shall carry out procurement of goods and services in accordance with\nthis Act and the principles set out in Schedule 1 shall be observed at all times by\npublic officers involved in procurement.\n5.\nProcurement Code of Conduct\n5.\n(1) The Director, after consultation with the Chief Officer in the Ministry of\nFinance, shall by order published in the Gazette, establish a code of conduct for\nentities, such code providing for \u2014\n(a)\nconflict of interest in public procurement;\n(b) the conduct of persons employed to carry out public procurement or\npersons who are otherwise involved in procurement;\n(c)\nthe conduct of suppliers seeking to conduct business with an entity;\n(d) record-keeping and disclosure requirements; and\n(e)\nsuch other matters that the Director or the Chief Officer in the Ministry of\nFinance may determine are necessary.\n(2) The standard of conduct set out in the code of conduct shall constitute the\nminimum standard required for the diligent and competent discharge of public\nservice duties and responsibilities.\n(3) A public officer shall comply with the procurement code of conduct and failure\nto do so in a material respect shall be grounds for disciplinary proceedings.\n(4) A supplier shall comply with the code of conduct and a supplier who fails to do\nso shall be liable to sanctions, including disqualification from participating in\nthe public procurement process for a period of time or permanently, as the Chief\nOfficer or the Chief Executive Officer may determine.\nPART 3 - CENTRAL PROCUREMENT OFFICE AND PUBLIC\nPROCUREMENT COMMITTEE\n6.\nCentral Procurement Office\n6.\nThe Central Procurement Office is established and the Office shall be responsible for\nproviding training, advice and guidance to all entities and persons involved in public\nprocurement.\n7.\nDirector\n7.\nThere shall be appointed a Director of the Central Procurement Office whose\nresponsibilities shall be as set out in Schedule 2.\n\nProcurement Act (2023 Revision)\nSection 8\n\nc\nRevised as at 31st December, 2022\nPage 9\n\n8.\nPublic Procurement Committee\n8.\n(1) There is established a Public Procurement Committee the constitution of which\nshall be as set out in Schedule 3.\n(2) The Committee shall provide external oversight of the public procurement\nprocess in accordance with the prescribed thresholds and shall have the\nresponsibilities set out in Schedule 4.\n(3) No Member of the Cayman Islands Parliament or of the Judiciary is eligible for\nappointment to the Public Procurement Committee.\n(4) Members of the Public Procurement Committee, except public officers may, at\nthe discretion of the Deputy Governor, be paid such remuneration, whether by\nway of salary or fees and such reasonable allowances in respect of expenses\nproperly incurred by a member in the performance of duties under this Act.\n(5) Meetings of the Public Procurement Committee shall be in accordance with\nSchedule 5.\n(6) The Chief Officer of the Ministry of Finance shall appoint a person, not being a\nmember of the Committee, to be the recording secretary of the Public\nProcurement Committee.\n(7) The recording secretary shall be responsible for preparing and distributing the\nagenda for meetings of the Committee and the taking of minutes.\n(8) The remuneration and expenses of the recording secretary shall be an expense\nof the Ministry of Finance.\n(9) In the event that a Chief Officer or a Chief Executive Officer does not accept\nthe assessment of the Public Procurement Committee or the entity procurement\ncommittee, in a given procurement project, the Chief Officer or the Chief\nExecutive Officer, as the case may be, shall inform the Director of Procurement\nof the reasons for departing from the recommendation of the committee.\n9.\nRoles and functions\n9.\nThe roles and functions of the Cabinet, the Ministry of Finance, the Chief Officer, the\nChief Executive Officer and entity procurement committees are set out in Schedule\n6.\nPART 4 - ENTITY PROCUREMENT COMMITTEES\n10.\nEntity procurement committees\n10. Every entity shall establish an entity procurement committee to undertake the process\nof procurement in the respective entity.\n\nSection 11\nProcurement Act (2023 Revision)\n\nPage 10\nRevised as at 31st December, 2022\nc\n\n11.\nConstitution of committees\n11. (1) A Chief Officer or Chief Executive Officer, or the person designated by either\nOfficer, shall appoint a chairman and at least two persons to be members of an\nentity\u2019s procurement committee, such committee handling procurements within\nthe entity.\n(2) The Chief Officer or Chief Executive Officer in making an appointment under\nsubsection (1) shall be satisfied that the person \u2014\n(a)\nhas the requisite knowledge and skills in law and finance and the integrity\nand good reputation to carry out the duties in a competent and politically\nneutral manner; and\n(b) has no financial or other interest likely to affect the carrying out of the\nduties as a member of the committee.\n(3) Where the entity is a statutory authority or government company, the Chief\nExecutive Officer shall include the respective Chief Officer\u2019s nominee as a\nmember of the entity procurement committee, provided that the nominee meets\nthe criteria for appointment set out in this Act.\n(4) A Chief Officer, a Chief Executive Officer, a member of the board of a statutory\nauthority or a government company, a Member of the Cayman Islands\nParliament and a member of the Judiciary is not eligible for appointment as a\nmember of an entity procurement committee.\n(5) The Chief Officer shall ensure that no members of the committee have a direct\n\u201csupervisor-supervisee\u201d relationship to avoid the perception or possibility of\nundue influence.\n12.\nOperations of committee\n12. (1) An entity procurement committee shall operate in line with this Act and shall\nreport to the Chief Officer, or the Chief Executive Officer, as the case may be,\nthe outcome of any competitive bidding process carried out under a procurement\nproject.\n(2) The Chief Officer or the Chief Executive Officer shall inform the bidders, within\nsuch time frame as may be prescribed, of the outcome under subsection (1).\nPART 5 - PROCUREMENT METHODS AND LIMITS\n13.\nProcurement methods\n13. The Cabinet shall, by way of regulations, prescribe the respective thresholds,\napproval processes and the methods of procurement to be utilised in the Islands.\n\nProcurement Act (2023 Revision)\nSection 14\n\nc\nRevised as at 31st December, 2022\nPage 11\n\n14.\nProcurement valuation\n14. (1) An accurate estimate of the total value of a procurement project, including the\ndelivery, installation, training and other fees integrally linked to the acquisition,\nis required prior to the start of the competitive process and shall include all of\nthe costs payable to the supplier by the entity which is involved in the\nprocurement process.\n(2) An entity shall not split or subdivide a contract to acquire goods, services or\nworks in order to limit competition or to avoid the requirements under this Act,\nexcept where \u2014\n(a)\nit can be demonstrated that the splitting or subdividing of a contract will\nfacilitate economic development in accordance with the Islands\u2019\ndevelopment preference; and\n(b) the decision to split or subdivide a contract is included in an approved\nwritten business case.\n15.\nDirect award process\n15. (1) A direct award process shall be documented and justified based on the specific\ncircumstances and shall be subject to the prescribed thresholds.\n(2) Approval for commencing a direct award process shall be obtained by the\nrespective procurement committee depending on the threshold limit set for the\nprocurement project.\n(3) Every contract awarded pursuant to a direct award process shall be reported in\nsuch form as may be prescribed.\nPART 6 - MISCELLANEOUS\n16.\nEconomic development preference\n16. (1) In assessing value for money, an entity shall consider the socio-economic\nimpact and benefits that a procurement project may create, particularly as it\nrelates to small and medium sized suppliers that are operating in the Islands.\n(2) Subject to the requirement to adhere to the principles of procurement, an entity\nshall give preference to suppliers who are businesses operating in accordance\nwith the Trade and Business Licensing Act (2021 Revision).\n (3) The Cabinet may prescribe such criteria, including thresholds, for entities to \u2014\n(a)\nundertake pre-procurement impact assessments on local suppliers;\n(b) where adequate local capability exists, solicit bids from businesses\noperating in accordance with the Trade and Business Licensing Act (2021\nRevision);\n\nSection 17\nProcurement Act (2023 Revision)\n\nPage 12\nRevised as at 31st December, 2022\nc\n\n(c)\nconsider disaggregation of major procurement projects where value for\nmoney is achievable, such disaggregation being included in the business\ncase and being subject to approval by the appropriate procurement\ncommittee;\n(d) adopt a local benefits test for all procurements within specified thresholds;\nand\n(e)\nundertake a plan for local industry participation, as may be prescribed,\nprior to embarking on major procurement projects.\n17.\nLocal benefits test\n17. (1) Entities shall take into account in the evaluation process information provided\nby a supplier as a result of any requirement for a local benefits test.\n(2) Submission of the information by a supplier is voluntary, however, where the\nrelevant information is excluded the committee shall not be able to score the\nrespective bid in relation to the criteria.\n18.\nConfidentiality\n18. (1) A procuring entity shall not, in its communications with suppliers or contractors\nor with any person, disclose any information if the disclosure of such\ninformation threatens the essential security interests of the Government or the\ndisclosure of such information would \u2014\n(a)\nbe contrary to law;\n(b) impede law enforcement;\n(c)\nprejudice the legitimate commercial interests of the suppliers or\ncontractors; or\n(d) impede fair competition,\nexcept where the disclosure of that information is required by law or ordered by\na court and, in such case, subject to the conditions of such an order.\n(2) A procuring entity shall treat submissions in such a manner as to avoid the\ndisclosure of their contents to competing suppliers or contractors or to any other\nperson not authorised to have access to the information, other than when\nproviding or publishing information required by law.\n(3) Any discussions, communications, negotiations or dialogue between a\nprocuring entity and a supplier or contractor shall be confidential and a party to\nsuch discussions, communications, negotiations or dialogue shall not disclose\nto any other person any related technical, price or other information without the\nconsent of any other party or parties to such discussions, communications,\nnegotiations or dialogues, unless the disclosure is ordered by a court or required\nby law.\n\nProcurement Act (2023 Revision)\nSection 19\n\nc\nRevised as at 31st December, 2022\nPage 13\n\n(4) Subject to subsection (1), in procurement involving confidential information, a\nprocuring entity may \u2014\n(a)\nimpose on suppliers or contractors requirements aimed at protecting\nconfidential information; and\n(b) require that suppliers or contractors ensure that their sub-contractors,\ndirectors, officers and employees comply with the requirements aimed at\nprotecting confidential information.\n(5) Every public officer involved in a public procurement project shall keep all\ninformation, deliberations and decisions relating to the procurement project\nconfidential, subject to any disclosure required by law or by order of a court,\nand shall be required to sign a confidentiality statement for each procurement\nproject that the public officer is involved with.\n(6) Every Chief Officer or Chief Executive Officer shall be responsible for the\ndisclosure of pertinent and permissible information relating to the award of a\ncontract.\n19.\nImmunity\n19. A member of the Public Procurement Committee, an entity procurement committee\nor the staff of the Central Procurement Office, shall not be personally liable in\ndamages for any act done or omitted to be done in the discharge or purported\ndischarge of the member\u2019s respective duties under this Act unless it is shown that the\nact or omission was in bad faith.\n20.\nRegulations\n20. The Cabinet may make regulations prescribing all matters that are required or\npermitted under this Act to be prescribed, or are necessary or convenient to be\nprescribed for giving effect to the purposes of this Act and, notwithstanding the\ngenerality of the foregoing, the Cabinet may make regulations providing for \u2014\n(a)\nthe procurement methods;\n(b) the procedure for the selection of an appropriate procurement method;\n(c)\nthe training of persons involved in public procurement; and\n(d) the reporting of contract awards.\n21.\nSavings and transitional\n21. (1) Every procurement project being carried out that has not been started on 1st\nMay, 2018, the commencement date of the Procurement Act, 2016 (Law 47 of\n2016), shall be deemed to be a procurement project under this Act and this Act\nshall apply accordingly.\n(2) Notwithstanding section 20, the Cabinet may make regulations to provide for\nsuch further savings, transitional or consequential provisions to have effect in\n\nSection 21\nProcurement Act (2023 Revision)\n\nPage 14\nRevised as at 31st December, 2022\nc\n\nconnection with the coming into operation of any provision of this Law as may\nbe necessary or expedient.\n(3) Regulations made in accordance with this section may be given retrospective\noperation to a day not earlier than 1st May, 2018, the commencement date of\nthe Procurement Act, 2016 (Law 47 of 2016) and shall expire one year after they\ncome into force.\n\nProcurement Act (2023 Revision)\nSection 21\n\nc\nRevised as at 31st December, 2022\nPage 15\n\n SCHEDULE 1\n(Section 3, 4)\nPrinciples of Procurement\n1.\nAccountability\nEffective mechanisms must be in place in order to enable Chief Officers and Chief\nExecutive Officers to discharge their personal responsibility on issues of procurement risk\nand expenditure.\n2.\nCompetitive Supply\nPublic procurement must be carried out by competitive process unless specifically justified\nin accordance with this Act or Government policy.\n3.\nConsistency\nProcurement policy shall be similar and consistent across the public sector.\n4.\nEffectiveness\nPublic sector entities should maximise the contribution to the commercial, regulatory and\nsocio-economic goals of Government in a balanced manner appropriate to the procurement\nrequirement.\n5.\nValue for Money\nThe procurement processes should be carried out to achieve the most advantageous\ncombination of cost, quality and sustainability over the life cycle of the project.\n6.\nFair-dealing\nSuppliers should be treated fairly and without unfair discrimination, including protection\nof commercial confidentiality where required. Public sector entities should not impose\nunnecessary burdens or constraints on suppliers or potential suppliers.\n7.\nIntegration\nProcurement policy should pay due regard to its impact on the Cabinet's other economic\nand social policies.\n8.\nIntegrity\nThere shall be no corruption or collusion with suppliers or other persons involved in a\nprocurement project.\n9.\nInformed decision-making\nPublic sector entities are required to base decisions on accurate information and are\nrequired to monitor obligations to ensure that they are being met.\n10. Legality\nPublic sector entities shall conform to legal requirements.\n\nSection 21\nProcurement Act (2023 Revision)\n\nPage 16\nRevised as at 31st December, 2022\nc\n\n11. Responsiveness\nPublic sector entities should endeavour to meet the aspirations, expectations and needs of\nthe community served by the procurement.\n12. Transparency\nPublic sector entities should ensure that there is openness and clarity in the conduct of the\nprocurement policy including in the carrying out of all actions and decisions.\n\nProcurement Act (2023 Revision)\nSection 21\n\nc\nRevised as at 31st December, 2022\nPage 17\n\nSCHEDULE 2\n(Section 7)\nDirector of the Central Procurement Office\nThe Director of the Central Procurement Office shall be responsible for \u2014\n(a)\ndeveloping, implementing and carrying out the periodic review and\nrecommendations for adjustment of policies and procedures for\nprocurement to be used by all entities including requirements for business\ncase preparation;\n(b) Ensuring all procurement laws, regulations, policies and procedures are\npromoted, publicised and easily accessible to public servants, suppliers\nand the general public;\n(c)\ndeveloping and maintaining standard contract forms, bidding documents,\nbusiness case templates and any other public procurement related\ndocuments to be used by all government entities;\n(d) monitoring the operation of the public procurement process and\ncompliance with this Act, procurement policies and procedures, and\nissuing guidance to entities, as required, in any form, including directives,\nguidelines, instructions, technical notes or manuals, with respect to the\nconduct of public procurement and the implementation of the Law,\npolicies and procedures;\n(e)\ndeveloping and implementing a Code of Conduct, in consultation with the\nChief Officer in the Ministry of Finance, for suppliers, procuring entities\nand all public officers engaged in procurement activities at all stages, such\nCode specifying standards of conduct, procedures and best practices;\n(f)\nadvising Chief Officers on the procurement of Major Projects;\n(g) establishing and maintaining a common, accessible, electronic platform\nfor use by all entities for the purpose of advertising and reporting results\nof all public procurement opportunities required;\n(h) establishing and maintaining a contract performance monitoring database;\n(i)\nconducting appropriate orientation, training and education for government\nofficials, entity employees, suppliers and interested members of the public\non the government\u2019s procurement process;\n(j)\nidentifying opportunities and establishing government-wide contracts for\ncommonly used goods and services where it can be demonstrated that there\nis potential for savings through bulk purchasing or consolidation of entity\nrequirements;\n\nSection 21\nProcurement Act (2023 Revision)\n\nPage 18\nRevised as at 31st December, 2022\nc\n\n(k) reviewing and advising on the use of the intranet and electronic\nprocurement tools to reduce or replace manual procurement processes and\nmaximise efficiency;\n(l)\nco-ordinating and reporting post implementation reviews to demonstrate\nwhether major projects have achieved the objectives of the business case\nand projects are completed within agreed financial and timeline\ncommitments;\n(m) compiling statistics on government-wide procurement and preparing an\nannual public report to be published in the Annual Public Procurement\nReport; and\n(n) advising the Public Procurement Committee and entity procurement\ncommittees.\n\nProcurement Act (2023 Revision)\nSection 21\n\nc\nRevised as at 31st December, 2022\nPage 19\n\nSCHEDULE 3\n(Section 8)\nConstitution of the Public Procurement Committee\n(1) The Public Procurement Committee shall consist of eight persons and a\nrecording secretary who shall not be entitled to vote.\n(2) The Governor, acting in accordance with the advice of the Premier, shall appoint\nfrom persons in the private sector the chairman and three other members of the\nPublic Procurement Committee, one of whom shall be an attorney-at-law.\n(3) The Governor acting in accordance with the advice of the Leader of the\nOpposition shall appoint from persons in the private sector one member of the\nPublic Procurement Committee.\n(4) The Governor acting in accordance with the advice of the Deputy Governor\nshall appoint three members of the civil service to the Public Procurement\nCommittee.\n(5) Each appointee shall be provided with a letter of appointment setting out the\nterms and conditions of the appointment.\n(6) Every appointment of a committee member shall be published in the Gazette.\n(7) Prior to appointing any person to the Committee, the Governor shall be satisfied\nthat \u2014\n(a)\nthe person has the skills, knowledge, (procurement, legal and financial)\nand integrity to carry out the required duties in a highly competent and\npolitically neutral manner; and\n(b) the person has no financial or other interest likely to affect the exercise of\nthe functions negatively.\n\nSection 21\nProcurement Act (2023 Revision)\n\nPage 20\nRevised as at 31st December, 2022\nc\n\nSCHEDULE 4\n(Section 8)\nThe Responsibilities of the Public Procurement Committee\nThe Public Procurement Committee shall be responsible for \u2014\n(a)\nensuring that a business case has been produced and reviewed by the Entity\nProcurement Committee, and approved in accordance with the appropriate\nfinancial thresholds;2\n(b) repealed by section 3(b) of the Procurement (Amendment) Act, 2022 [Act\n1 of 2022].3\n(c)\nreceiving and providing receipts for all bid submissions expected to exceed\nthe specified thresholds;\n(d) ensuring fairness, impartiality and confidentiality in the treatment of bid\nsubmissions in its possession;\n(e)\nreviewing the recommendations of the entity procurement committees and\nverifying that the evaluation process was conducted in accordance with the\nterms and requirements of the original competition document;\n(f)\nproviding assurance to the Chief Officers or Chief Executive Officers that\nthe procurement process has complied with the Law and procurement\npolicy;\n(g) approving applications for \u201cdirect award\u201d procurement; and\n(h) assessing the recommendation for award of contract and formally\ncommunicating this assessment to the Chairman of the respective entity\nprocurement committee.\n\nProcurement Act (2023 Revision)\nSection 21\n\nc\nRevised as at 31st December, 2022\nPage 21\n\nSCHEDULE 5\n(Section 8)\nMeetings of the Public Procurement Committee\n(1) The Public Procurement Committee shall meet at least once every month and at\nsuch other times as may be necessary to expedite the work of the Committee\nand such meetings shall be held at such place and time and on such days as the\nCommittee may from time to time determine.\n(2) The recording secretary of the Committee shall circulate the agenda and\naccompanying documents for the meeting to members five working days prior\nto the meeting.\n(3) In the absence of the chairperson, a Committee member who is elected by the\nmembers present shall preside and perform the functions of the chairperson of\nthe meeting provided that there is a quorum.\n(4) The quorum of the Committee shall be a simple majority of the Committee\nmembers entitled to vote however where a member declares a conflict of interest\nthe quorum will be a simple majority of the remaining members who are entitled\nto vote.\n(5) In the event of an equality of votes at any meeting, the chairperson at that\nmeeting shall have a second or casting vote.\n(6) Where there is a possible or perceived conflict of interest with respect to any\nmatter for discussion, a Committee member shall \u2014\n(a)\ndisclose any interest in that matter; and\n(b) as soon as the matter comes up on the agenda, immediately leave the place\nin which the deliberations are taking place and shall not participate,\ndirectly or indirectly, in the deliberations and shall not return until a\ndecision has been taken on the matter,\nand the member\u2019s declaration of interest and the absence of the member\nconcerned shall be recorded in the minutes of the meeting.\n(7) The Committee may establish its own meeting rules and procedures, and\nestablish sub-committees, as it thinks fit including procedures for dealing with\nitems not included on the agenda.\n(8) Minutes shall be kept in such form as the Committee determines, and shall be\nconfirmed as soon as practicable at the next following meeting of the Committee\nand signed by the chairperson or other person who presided at the meeting at\nwhich the minutes were taken.\n(9) The minutes must include, at a minimum, the date, time, location of meeting, a\nlist of the Committee members in attendance, the substance of all matters\n\nSection 21\nProcurement Act (2023 Revision)\n\nPage 22\nRevised as at 31st December, 2022\nc\n\ndiscussed or decided, and at the request of any committee member, a record by\nindividual members of any votes taken.4\n(10) Within 30 days of the approval of the minutes, the minutes shall be posted on\nthe Public Procurement Committee website. To the extent that any information\nis exempted in law, the minutes shall be presented with the relevant information\nin a redacted form.5\n(11) The Committee shall provide the Chief Officer of the Ministry of Finance with\nan unredacted copy of the minutes upon the confirmation of the minutes.6\n\nProcurement Act (2023 Revision)\nSection 21\n\nc\nRevised as at 31st December, 2022\nPage 23\n\nSCHEDULE 6\n(Section 9)\nRoles and Functions\nA - Role of the Cabinet\nThe role of the Cabinet is to formulate and implement procurement policy that promotes\nthe government\u2019s economic and social objectives, encourages trade and investment in the\neconomy and expands employment opportunities in the Cayman Islands.\nB - Role of the Ministry of Finance\n(1) The role of the Ministry of Finance is to develop, implement and maintain\nmacro-economic and budgetary policies and maintain measures, to manage the\nfinances of the Government and exercise supervision and control in all matters\nrelating to the financial affairs of the Cayman Islands.\n(2) The Chief Officer in the Ministry of Finance is responsible for implementing\nand monitoring compliance with this Act and shall be responsible for \u2014\n(a)\nproviding appropriate resources for and oversight of the Central\nProcurement Office;\n(b) providing appropriate resources and oversight of the Public Procurement\nCommittee;\n(c)\nensure that centralised procurement, where appropriate, delivers value for\nmoney.\nC - Role of the Chief Officer in a given Ministry or Portfolio\nThe Chief Officer is responsible for delivering the outputs of government that contribute\nto the overall outcomes that have been established by the Cabinet. The Chief Officer shall\nbe responsible for \u2014\n(a)\nidentifying the need for inputs and directing employees to develop\nrequirements and specifications to be satisfied through procurement;\n(b) ensuring the creation of and authorising of a documented business case in\nthe prescribed format for procurement, prior to proceeding to market or\nsoliciting bids;\n(c)\nensuring an available and approved funding source prior to soliciting bids;\n(d) acquiring goods, services and works required to deliver Ministry or\nPortfolio outputs;\n(e)\nauthorising Ministry or Portfolio expenditures and the awarding of\ncontracts;\n\nSection 21\nProcurement Act (2023 Revision)\n\nPage 24\nRevised as at 31st December, 2022\nc\n\n(f)\nensuring Ministry or Portfolio employees involved in procurement have\nthe appropriate procurement related education and training;\n(g) implementing and ensuring compliance with this Act, and all associated\nlegislation, policies and procedures within the Ministry or Portfolio;\n(h) ensuring that all procurement related documents are retained and secured\nat all times and disposed of in accordance with existing records\nmanagement laws and policy;\n(i)\nensuring the results of all procurement projects within the Ministry or\nPortfolio are publicly reported in the prescribed format and timeframe\nspecified in regulations and policy;\n(j)\nensuring unsuccessful bidders are notified in writing following the award\nof contract and provided with an opportunity for a full debriefing by\nevaluators in the prescribed format and timeline as may be prescribed.\nD - Role of the Chief Executive Officer\n(1) The Chief Executive Officer is responsible for delivering the outputs of the\npublic authority that contribute to the overall outcomes that have been\nestablished by the Cabinet.\n(2) The Chief Executive Officer of each public authority will be responsible for \u2014\n(a)\nidentifying the need for inputs and directing their employees to develop\nrequirements and specifications to be satisfied through procurement;\n(b) ensuring the creation of and authorising of a documented business case in\nthe format prescribed in regulations for the procurement, prior to\nproceeding to market or soliciting bids;\n(c)\nensuring an available and approved funding source prior to soliciting bids;\n(d) acquiring the goods, services and works required to deliver the public\nauthority outputs;\n(e)\nauthorising public authority expenditures and the awarding of contracts;\n(f)\nensuring public authority employees involved in procurement have\nappropriate procurement-related education and training;\n(g) implementing and ensuring, within their public authority, compliance with\nthis Act, and all associated regulations, policies and procedures;\n(h) ensuring all procurement related documents are retained and secured at all\ntimes and disposed of in accordance with existing records management\nlaws and regulations;\n(i)\nensuring the results of all procurement projects within the public authority\nare publicly reported in the format and timeframe specified in regulations\nand policy;\n\nProcurement Act (2023 Revision)\nSection 21\n\nc\nRevised as at 31st December, 2022\nPage 25\n\n(j)\nensuring unsuccessful bidders are notified in writing following the award\nof contract and provided with an opportunity for a full debriefing by\nevaluators in the format and timeline as may be prescribed.\nE - Role of the Entity Procurement Committees\n(1) The role of an entity procurement committee is to support the Chief Officer, or\nthe Chief Executive Officer, as the case may be, in delivering the outputs of\ngovernment that contribute to the overall outcomes that have been established\nby the Cabinet including the acquisition of goods, services and works within\nprescribed limits and its principal accountability shall be to the Chief Officer for\nMinistry or Portfolio procurement or the Chief Executive Officer for Statutory\nAuthority or Government Company procurement.\n(2) An entity procurement committee shall be responsible for \u2014\n(a)\nreviewing the business case for goods, services or works being procured\nin accordance with prescribed thresholds;\n(b) ensuring that competition documents are reviewed prior to them being\nissued, in order to ensure that they are consistent with the relevant business\ncase;7\n(c)\nreviewing and providing a receipt for all eligible bids;\n(d) ensuring fairness, impartiality and confidentiality in the treatment of bid\nsubmissions in its possession;\n(e)\nproviding assurance to the Chief Officers or Chief Executive Officers, as\nthe case may be, that the procurement process has complied with the Law\nand procurement policy;\n(f)\nensuring that the evaluation process is conducted in accordance with the\nterms and requirements of the competition documents;\n(g) presenting the evaluation report and recommendation to the Public\nProcurement Committee when exceeding prescribed thresholds and\nverifying that the evaluation process was conducted in accordance with the\nterms of the original competition document;\n(h) making the recommendation for award of contract to the Chief Officer or\nChief Executive Officer as the case may be;\n(i)\nforwarding reports on procurement projects to the Director of Central\nProcurement for informational and statistical purposes;\n(j)\nreporting the results of all procurement projects in the prescribed format\nand timeframe;\n(k) reviewing the draft contract to ensure that the tender price and scope are\nconsistent with the original competition document; and\n\nSection 21\nProcurement Act (2023 Revision)\n\nPage 26\nRevised as at 31st December, 2022\nc\n\n(l)\nreviewing the draft contract prior to contract signing to ensure that the\nagreed scope is consistent with the original competition document.\nPublication in consolidated and revised form authorised by the Cabinet this 10th\nday of January, 2023.\nKim Bullings\nClerk of the Cabinet\n\nProcurement Act (2023 Revision)\n\nENDNOTES\n\nc\nRevised as at 31st December, 2022\nPage 27\n\nENDNOTES\nTable of Legislation history:\nSL #\nLaw\/Act #  Legislation\nCommencement  Gazette\n\n1\/2022\nProcurement (Amendment) Act, 2022\n28-Jun-2022 LG24\/2022\/s1\n\n56\/2020\nCitation of Acts of Parliament Act, 2020\n3-Dec-2020 LG89\/2020\/s1\n14\/2018\n\nProcurement Law, 2016 (Commencement) Order, 2018\n12-Mar-2018\nG6\/2018\/s1\n\n47\/2016\nProcurement Law, 2016\n1-May-2018 GE96\/2016\/s4\n\nTable of Endnote references:\n1 S.2\n\ninserted by S.2 of Act 1 of 2022.\n2 Sch 4(a)\n\nreplaced by S.3 of Act 1 of 2022.\n3 Sch 4(b)\n\nrepealed by S.3 of Act 1 of 2022.\n4 Sch 5(9)\n\namended by S.4 of of Act 1 of 2022.\n5 Sch 5(10)\n\namended by S.4 of of Act 1 of 2022.\n6 Sch 5(11)\n\namended by S.4 of of Act 1 of 2022.\n7 Sch 6(E)(2)(b)\n\namended by S.5 of of Act 1 of 2022.\n\nENDNOTES\nProcurement Act (2023 Revision)\n\nPage 28\nRevised as at 31st December, 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