Cabinet Resolution On Executive Regulation of Federal Law on Procurement in the Federal Government

Cabinet Resolution No. (122) of 2024 On Executive Regulation of Federal Law No. (11) of 2023 on Procurement in the Federal Government

Issued Date: 04 Nov 2024
Effective Date: 14 May 2025
Official Gazette Date: 14 Nov 2024
Official Gazette No: 787
Legislation State: Active
Last update on this law: 04 Nov 2024

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Full Index (Table of Contents):
Article (1) Definitions
Article (2) Central Procurement Unit Tasks
Article (3) Tasks of the Procurement Organizational Unit in Federal Agencies
Article (4) Formation and Tasks of the Procurement Committee in Federal Agencies
Article (5) Powers Delegation Matrix
Article (6) Federal Agencies Obligations
Article (7) Procedures of Procurement System Usage
Article (8) Prequalification of Suppliers
Article (9) Suppliers Registration and Acceptance
Article (10) Impartiality
Article (11) Cases of Conflict of Interest and Reporting Mechanism
Article (12) Cases of Disclosing Supplier Information
Article (13) Small and Medium Enterprises (SME)
Article (14) National In-Country Value (ICV) Program
Article (15) Emiratisation
Article (16) Green Procurement
Article (17) Procurement Methods and Approaches
Article (18) Public Tender
Article (19) Limited Tender
Article (20) Direct Order and Exclusive Source
Article (21) Price Agreement
Article (22) Catalogue
Article (23) Low Value Procurements
Article (24) Petty Cash Card
Article (25) Emergency Procurements
Article (26) Duration of Submissions and Response to The Announcement
Article (27) Tender Announcement Content
Article (28) Bid Evaluation Criteria
Article (29) Cases of Negotiation with Suppliers
Article (30) Exclusion of Suppliers from Participating in the Tender
Article (31) Award Procedures
Article (32) Award Decision
Article (33) Justification of the Award Decision
Article (34) Types of Procurement Contracts
Article (35) Procurement Contracts for Federal Agencies
Article (36) Contract Signing Procedures
Article (37) Contracts Amendment
Article (38) Contract Renewal
Article (39) Contract Suspension
Article (40) Contract Termination
Article (41) Contract Revocation
Article (42) Contract Closure
Article (43) Subcontracting
Article (44) Direct Payment in Subcontracting
Article (45) Suppliers Alliance
Article (46) Grievance Committee
Article (47) Competences of the Grievances Committee
Article (48) Grievance Procedures
Article (49) Decisions of the Grievances Committee
Article (50) Cases of Non-Compliance
Article (51) Anti-Competitive Practices and the Resulting Penalties
Article (52) Applicable Law and Dispute Resolution
Article (53) Final Provisions
Article (54) Repeals
Article (55) Resolution Publication and Entry into Force

Preamble:
The Cabinet:
− Upon reviewing the Constitution;
− Federal Law No. (1) of 1972 on the Competences of Ministries and the Powers of Ministers [and further recitals, preview truncated]
Has resolved as follows:

Article (1) Definitions
The definitions stated in the aforementioned Federal Law No (11) of 2023 shall apply to this Resolution, in addition to the following terms: Law; Federal Agency; Chairman of The Federal Agency; A Business Day; Digital Procurement Platform; Central Procurement Unit; Procurement Organizational Unit; Requesting Organizational Unit; Grievance Committee; Procurement Committee; Contract Management Officer; Procurement Strategy; Procurement Opportunity; Tender Documents; Request for Proposals (RFP); Supplier Prequalification; Request for Pre-Qualification (RFPQ) Documents; Supplier Registration; Suppliers Registry; Suppliers Acceptance; The Registered and Accepted Supplier; The Nominated Supplier; The Winning Supplier; The Contracted Supplier; Award Decision; Exclusion Decision; Performance Bond; Scope Of Work; Bid Evaluation Criteria; Purchase Order; Procurement Contract; Standard Procurement Contracts; Subcontracting; Suppliers Alliance; Credit Note; Limited Tender; Direct Order; Exclusive Source; Price Agreement; Catalogue; Federal Procurement Catalogue; Local Catalogue; Technical Competition; Low Value Procurements; Reverse Auctions; Petty Cash Card; Conflict of Interests; Small and Medium Enterprises (SME); Green Procurement; Sustainable Products; Anti-Competitive Practices; Manual of Federal Government Procurement Procedures; Segregation of Powers Manual in The Federal Government.
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Article (2) Central Procurement Unit Tasks
Central Procurement Unit shall undertake the following tasks: 1. Preparing and suggesting procurement... [preview truncated]. Includes a table defining: Credit Note (a financial document issued by the supplier to the contracting Federal Agency to document the return...); Limited Tender (a tender in which the procurement opportunity is offered to a limited number of registered and accepted suppliers...); Direct Order (an exceptional procurement method where the Federal Agency contracts directly with a supplier from...); Exclusive Source (an exceptional procurement method where the Federal Agency contracts directly with the sole qualified...); Price Agreement (a framework agreement concluded by the Federal Agency with the winning supplier to fix the prices of...); Catalogue (a procurement method that includes a unified list of procurement items, detailing the unit price for...); Federal Procurement Catalogue (a unified list of the items required by the Federal Government, categorized under specific procurement...). 3. Managing central procurement activities. This shall include, but is not limited to, managing catalogues... [preview truncated]

Article (3) Tasks of the Procurement Organizational Unit in Federal Agencies
Procurement Organizational Unit shall undertake the following tasks: 1. Managing the procurement process... [preview truncated]

Article (4) Formation and Tasks of the Procurement Committee in Federal Agencies
1. The Procurement Committee in each Federal Agency shall be formed by a decision from the Head of the Federal Agency... a. Review and approve the award of contracts to suppliers whose value exceeds the amount specified in... [preview truncated]

Article (5) Powers Delegation Matrix
1. The Powers Delegation Matrix, issued by a resolution of the Minister, defines the powers of authority... a. Compliance with the limits of powers defined within the Powers Delegation Matrix and the Segregation... [preview truncated]

Article (6) Federal Agencies Obligations
In addition to the obligations stipulated in Article (7) of the Law, Federal Agencies shall adhere to... [preview truncated]

Article (7) Procedures of Procurement System Usage
The Federal Agency shall comply with the following provisions and controls when initiating any procurement... [preview truncated]

Article (8) Prequalification of Suppliers
The Federal Agency may, when wishing to solicit offers, conduct a prequalification process for participating suppliers, considering: a. Financial solvency. b. Technical capabilities. c. Expertise. d. Size, nature, and estimated cost of... 3. The prequalification criteria must be clear, objective, and for the public interest. 4. The Federal Agency shall include: a. Name of the Federal Agency. b. Type, nature, and location of the project. c. Prequalification criteria... 5. After completing the evaluation of the suppliers participating in the prequalification process: a. If one or more suppliers pass the prequalification process, the Federal Agency shall use the limited tender... 6. If a supplier successfully passes the prequalification process, the Federal Agency requesting the... [preview truncated]

Article (9) Suppliers Registration and Acceptance
1. All suppliers must register and must be accepted in the supplier registry in order to participate... [preview truncated]

Article (10) Impartiality
Subject to the provisions of Article (10) of the Law, the Federal Agency shall follow procurement procedures... [preview truncated]

Article (11) Cases of Conflict of Interest and Reporting Mechanism
1. An actual conflict of interest occurs when an employee's personal interests, whether direct or indirect... [preview truncated]

Article (12) Cases of Disclosing Supplier Information
The Federal Agency shall protect confidential or sensitive commercial information of suppliers, and... [preview truncated]

Article (13) Small and Medium Enterprises (SME)
1. Federal Agencies shall allocate (10%) ten percent of the annual procurement spend to small and medium... [preview truncated]

Article (14) National In-Country Value (ICV) Program
1. The Federal Agency shall comply with the requirements of the National In-Country Value (ICV) Program... [preview truncated]

Article (15) Emiratisation
1. The Federal Agency must take the necessary measures before starting any stage of the procurement... [preview truncated]

Article (16) Green Procurement
1. The Federal Agency must encourage green procurement and sustainable products wherever possible... [preview truncated]

Article (17) Procurement Methods and Approaches
The Federal Agency may utilize the following procurement methods and approaches:
1. Procurement Methods: a. Public Tender. b. Limited Tender. c. Direct Order and Exclusive Source.
2. Procurement Approaches: a. Price Agreement. b. Catalogue, including the Federal Procurement Catalogue and Local Catalogue. c. [preview truncated]

Article (18) Public Tender
1. Public tenders shall be announced through the Procurement System. Procurement opportunities for public tenders... [preview truncated]

Article (19) Limited Tender
Federal Agencies may request for proposals via limited tenders for procurement opportunities requiring... [preview truncated]

Article (20) Direct Order and Exclusive Source
1. The Federal Agency may utilize direct order procurement by contracting directly with a supplier from... a. The Federal Agency shall complete the justification form for procurement via direct order or exclusive source... 4. Procurement through direct order or exclusive source may not be permitted in the following cases: a. Absence of acceptable justification. b. Insufficient planning for procurement and the availability of... [preview truncated]

Article (21) Price Agreement
A unified agreement entered into by the Ministry with a registered and approved supplier on behalf of... [preview truncated]

Article (22) Catalogue
1. Procurement through a catalogue refers to the process in which Federal Agencies purchase products... [preview truncated]

Article (23) Low Value Procurements
The following controls shall be considered when conducting a low value procurement: 1. Necessary approval... [preview truncated]

Article (24) Petty Cash Card
The following controls shall be considered when conducting a Petty Cash Card: 1. The Petty Cash Card... [preview truncated]

Article (25) Emergency Procurements
1. Emergency procurements are allowed upon obtaining the approval specified in the Powers Delegation... a. Operational emergency, which involves an immediate disruption in operations due to a shortage of... 2. Emergency procurements are exclusively allocated to meet the essential needs arising from the emergency... [preview truncated]

Article (26) Duration of Submissions and Response to The Announcement
1. Suppliers shall be granted an adequate time to respond to the tender announcement, and the following applies: a. The response period is determined based on the type and size of the procurement, the nature of the... 2. If the Federal Agency issues clarifications or amendments to the tender, the deadline for submitting... [preview truncated]

Article (27) Tender Announcement Content
In addition to the details specified in Article (18) of the Law, the Federal Agency shall provide the... [preview truncated]

Article (28) Bid Evaluation Criteria
1. In addition to the criteria specified in Clause (1) of Article (22) of the Law, bids for tenders... a. The supplier's capacity to meet the requirements. b. Innovation and creative solutions presented... 2. The Manual of Procurement Procedures in the Federal Government shall specify the technical and financial... [preview truncated]

Article (29) Cases of Negotiation with Suppliers
1. Negotiation with participating suppliers is mandatory in the following cases: a. If the total value of the contract exceeds the value specified in the Manual of Procurement Procedures... 2. The requesting Federal Agency may negotiate with suppliers in any of the following cases: a. If the request for proposals specifies that the requesting Federal Agency may engage in financial... [preview truncated]

Article (30) Exclusion of Suppliers from Participating in the Tender
1. In addition to the reasons specified in Clause (1) of Article (24) of the Law, the requesting Federal... a. If the supplier engages in unethical practices or any practices that violate competition, including... 2. The decision to exclude a supplier is made by the Procurement Committee of the requesting Federal Agency... [preview truncated]

Article (31) Award Procedures
The bid shall be awarded based on the evaluation criteria outlined in the tender announcement, in accordance with... [preview truncated]

Article (32) Award Decision
1. The Federal Agency shall prepare and send the award decision to the winning supplier, ensuring the... a. The name and address of the contracting Federal Agency. b. A brief description of the contract. c. [preview truncated]. 2. The details of the award decision may be published on the procurement system within (30) thirty days... a. The name and address of the contracting Federal Agency. b. A brief description of the contract. c. [preview truncated]

Article (33) Justification of the Award Decision
1. The requesting Federal Agency must respond to any inquiry from the unsuccessful supplier or any relevant... a. If there are emergencies or exceptional circumstances that require quick decisions, where detailed... [preview truncated]

Article (34) Types of Procurement Contracts
1. The types of procurement contracts include the following: a. Framework Agreement: A comprehensive agreement concluded between the Federal Agency and an approved... 2. The standard procurement contract templates provided by the Ministry for use by Federal Agencies include: a. Service Agreement Template. b. Product Supply Contract Template. c. Technology Product Supply Contract... [preview truncated]

Article (35) Procurement Contracts for Federal Agencies
Federal Agencies may draft special contracts that meet their needs and the nature of their procurement... [preview truncated]

Article (36) Contract Signing Procedures
Federal Agencies and suppliers shall adhere to the following procedures for signing contracts: 1. Upon... [preview truncated]

Article (37) Contracts Amendment
Procurement contracts may be amended according to the following provisions and controls: 1. Amendment... a. When there is a need to amend the contract or make any changes related to the scope of the contract... 2. Amendment relevant to the contract schedule (Contract Extension): a. The contract may be extended when there is a need to amend the contract schedule (only the duration...). 3. Any additional amendments to the terms and conditions in the standard procurement contracts that... [preview truncated]

Article (38) Contract Renewal
The following controls must be observed when renewing contracts with the same supplier: 1. If there... [preview truncated]

Article (39) Contract Suspension
Federal Agencies may decide to temporarily suspend a contract for a period deemed appropriate, based... [preview truncated]

Article (40) Contract Termination
1. The Federal Agency may terminate the Contract in the following cases: a. If the supplier fails to fulfil its contractual obligations and does not rectify its status upon... 2. If the contract is terminated under any of the conditions mentioned in Paragraph (1) of this Article... [preview truncated]

Article (41) Contract Revocation
1. The Federal Agency is entitled to revoke the contract promptly upon its sole discretion if it is... [preview truncated]

Article (42) Contract Closure
1. The contract shall be closed as an action when all the following conditions are met: a. The period of the contract expires, or it is terminated in accordance with the provisions of this... 2. The Contract Manager must close the contract by verifying the completion of all receipt procedures... [preview truncated]

Article (43) Subcontracting
Subcontracting shall be subject to the following conditions: 1. The contracting supplier must indicate... [preview truncated]

Article (44) Direct Payment in Subcontracting
The Federal Agency may, upon its sole discretion and by way of exception, make direct payments to sub... [preview truncated]

Article (45) Suppliers Alliance
1. The Federal Agency may accept proposals from supplier alliances for procurements that require collaboration... [preview truncated]

Article (46) Grievance Committee
1. A Grievances Committee shall be established in each Federal Agency by a resolution issued by the... [preview truncated]

Article (47) Competences of the Grievances Committee
Each supplier has the right to file a grievance regarding the decisions or actions taken by the Federal... [preview truncated]

Article (48) Grievance Procedures
1. Supplier may file a grievance against a decision or action to the Grievances Committee of the Federal... [preview truncated]

Article (49) Decisions of the Grievances Committee
1. The Grievances Committee shall issue its decisions on grievances relevant to actions or decisions... [preview truncated]

Article (50) Cases of Non-Compliance
1. Federal Agencies shall adhere to the provisions of the Law and this Resolution. A Federal Agency... a. Violation of any provision stipulated in the Law, this Resolution, or the Manual of Federal Government... 2. Suppliers shall comply with the provisions of the Law and this Resolution. A supplier shall be deemed... a. Participating in a procurement process without following the approved registration and acceptance... [preview truncated]

Article (51) Anti-Competitive Practices and the Resulting Penalties
1. All suppliers shall be prohibited from engaging in any anti-competitive practices, alliances, or... a. Restricting procurement prices directly or indirectly by artificially increasing, decreasing, or... 2. Federal Agencies shall report any violations committed by suppliers that fall under the violations... 3. The Federal Agency or the Central Procurement Unit may, if one of them is the contracting party... a. A financial penalty to be determined by the Federal Agency, not exceeding 10% of the annual total... 4. Supplier may appeal the administrative penalties outlined in paragraphs (A) and (B) of Clause (3)... [preview truncated]

Article (52) Applicable Law and Dispute Resolution
1. Any dispute, conflict, or claim arising from or relating to procurement contracts, including their... [preview truncated]

Article (53) Final Provisions
1. The Minister shall issue the Resolutions necessary to implement the provisions of this Resolution... [preview truncated]

Article (54) Repeals
1. Cabinet Resolution No. (4) of 2019 on Procurement Regulation and Storehouse Management in Federal... [preview truncated]

Article (55) Resolution Publication and Entry into Force
This Resolution shall be published in the Official newspaper and shall implement after six (6) months... [preview truncated]

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