The company requirements of materials are execution of services need by the company are provided by one of the following methods:
2-7-1 General Competition:
This method is used for purchasing of materials and executing the services if the value of the required material/services exceeds one million Saudi Riyals. The Offers shall be submitted in sealed envelopes, but however, the General Manager may except purchasing of necessary spare parts from submission of price offers in sealed envelopes, but necessary rules shall be made for receiving offers in such cases. The general competition shall be announced at least in one of the local news papers. The company may advertise in foreign newspaper if the transaction requires so. The announcement shall include the whereabouts and date of receiving the terms and conditions of this completion and the deadline for receiving offers. Such competition may be completed in two phases:
- General invitation published in one newspaper for pre qualifications of the eligible suppliers who will take part in this competition.
- Written invitation sent to minimum three of the pre-qualified suppliers asking them to submit their offers.
2-7-2 Limited Competition:
This method is used for purchasing goods or executing services and works of value not exceeding than one million Saudi Riyals by a written invitation for at least three suppliers specialized in the specified field of those who were are already pre-qualified by the company, in order to submit the quotations in sealed envelopes. The general manager may exclude submission of quotations in sealed envelopes but in this case necessary guidelines shall be proclaimed for receipt of offers.
2-7-3 Direct Purchasing:
This method is used to purchase materials or execute services of values not exceeding SR300,000 by soliciting at least three direct offers from competent suppliers working in required field. An only one offer may be sufficient, if the required material is officially priced, has a sole agent/distributor or its value does not exceed (SR 10,000) for materials or (SR100,00) for services.
- In case of General or Limited Competition, the company may requires from the bidders to submit their bids in two offers as follows:
- commercial offer containing the prices and terms of payment.
- Technical offer containing the standards and technical specifications of required materials.
- The required materials shall not be divided into parts as a way to escape from a procurement method to another method, or in order to benefit from the level of powers (authorities).
- A Purchasing Committee shall be formed by a resolution of Board of Directors based on the recommendation of the General Manager. The Purchasing Committee shall be comprised of at least three members of at least supervisory level representign the concerned departments. The duties of the committee shall be as follows:
2-9-1 To look into purchase orders amounted over SR10,000 and discussing the details of this indent with the requesting department in order to identify the real requirements for the provision of the requested items. After the committee is satisfied with justification of this indent, it will transfer the transaction to the Purchase Dept. for completion purchasing procedures.
Opening of envelopes:
- The purchasing committee shall form a technical ad-hoc committee comprising of at least three members in case of general and limited competition to study and analyze the price offers/quoatations. However, in case of direct purchase, the formation of this (technical ad-hoc committee) will be (optional). In order to discharge its duties effectively, the purchasing committee may request the help of any concerned staff of the company.
- Consensus of all purchase committee members are required for awarding orders up to maximum SR100,000. In case of disagreement between the committee members, the matter of subject awar shall be refered to the General Manager for suitable award decision.
- The Purchasing Committee shall submit its recommendations on any transaction/order exceeding than SR 100,000 to the General Manager to decide upon the matter according to the powers and authorities vested unto him.