For Procurements Subject to the Trade Agreements Limited Tendering Cannot Be Used

For those unaware, limited tendering is a procurement method that allows a contracting authority to invite only a select list of suppliers to bid on a particular project or service. In recent years, there has been an increased focus on free trade agreements and their impact on procurement processes, particularly the use of limited tendering.

In short, for procurements subject to trade agreements, limited tendering cannot be used. This is because trade agreements aim to promote fair competition and equal access to procurement opportunities for all suppliers. By limiting the tendering process to a select few suppliers, a contracting authority risks violating the principles of fair competition and potentially discriminating against foreign suppliers.

It`s worth noting that not all procurements are subject to trade agreements and therefore may still be eligible for limited tendering under certain circumstances. For example, in situations where the goods or services required are of a highly specialized nature and only a limited number of suppliers are capable of providing them, limited tendering may be justified. However, this justification must be clearly documented by the contracting authority and subject to transparency and accountability measures.

In addition to potentially violating trade agreements, the misuse of limited tendering can also result in increased costs and reduced value for money. By limiting competition, the contracting authority may miss out on the opportunity to receive bids from other suppliers that could provide a better quality product at a lower cost.

Ultimately, the use of limited tendering in procurement processes should be approached with caution and only used when it is both legally justifiable and the most efficient option. For those subject to trade agreements, it`s important to carefully review and follow the guidelines to ensure compliance and promote fair competition.

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