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Benefits to Local Sector in the KPC Mechanism
The KPC Mechanism aims to ensure many benefits
for the local sector during the tendering, bidding, and work
execution processes. Following are some examples of these benefits:
Preparation of Specifications
·
Specifications of the local product
should be considered while preparing the requirements (Clause 1.1).
Suppliers/Contractors limiting
·
In case of limiting the bidding to a
selected list of qualified contractors, a reasonable percentage of
local contractors or manufacturers should be included in such a
list. And if that limiting led to a monopolistic behavior, the
tender should be cancelled and re-issued to the whole range of
qualified suppliers and/or contractors (Clause 2.1).
Preparation of technical, commercial and
contractual documents of a tender and the qualified
supplier/contractor list
·
All tender documents that are open to
general contractors should include lists of local
suppliers/contractors qualified as subcontractors (Clause 3.1).
·
Priority is encouraged to be given by
contractors to local products over the similar imported products (Clause
3.2).
·
The share of local products, and
activities assigned to local suppliers/contractors, should be no
less than 20% of the signed contract’s total value (Clause 3.3.a).
Evaluation of bids by KNPC
·
If the total prices for all bids are
close, preference should be given to the supplier/contractor with
the highest estimated total proportion of local products and
activities assigned to local suppliers/contractors (Clause 5.1).
Execution
·
Contractors shall include in their
progress reports a periodical report that illustrates the local
products supplied and the activities subcontracted to local
subcontractors (Clause 7.1).
For additional detail, local KNPC Suppliers
(manufacturers, contractors, and vendors) are strongly encouraged to
refer to The KPC Mechanism in the ‘Important Links’ section of this
newsletter.
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