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.