Cabinet / Council of Ministers,
Having reviewed the Constitution,
and the Law Regulating Tenders and Bids promulgated by Law No. (24) of 2015, as amended by Decree-Law No. (18) of 2018,
and Amiri Decision No. (29) of 1996 concerning Council of Ministers decisions submitted to the Amir for ratification and issuance,
and Council of Ministers Decision No. (22) of 2016 issuing the Executive Regulations of the Law Regulating Tenders and Bids,
and upon the proposal of the Minister of Finance,
has decided as follows:
Framework Contracts must include the following data:
1- The parties to the Contract.
2- The term of the Contract.
3- Prices during the term of the Contract.
4- The required items, works, or services, and their minimum and maximum quantities, as the case may be.
5- Implementation mechanisms.
6- The method of payment and refund of the value of the Performance Bond, in accordance with what is determined by the Department / Directorate.
In all cases, and without prejudice to the provisions and procedures stipulated in this Regulation and the provisions of the framework Contract, government entities may, after the approval of the Committee, contract for items, works contracts, or services outside the scope of the framework Contract, if they are able to obtain better value for the same item, service, or contracted works contracts.
The requesting Department / Directorate shall, in coordination with the competent Department / Directorate, determine an estimated value for the framework Contract, calculated on the basis of the prices of the items, works contracts, or services subject to contracting during the period specified therein. The Tender Bond and Performance Bond shall be calculated on the basis of one fifth of the maximum value of the items, works contracts, or services.
As an exception to the Ruling of Article (47) of this Regulation, preference in awarding framework Contracts relating to the supply of items or services whose price is fixed by the State or by their source may be given to the tenderer who submitted the lowest profit margin on the specified amount, or the highest discount percentage, according to the nature of the tender.
The Chairman / President may, based on the recommendation of the Committee and in accordance with the requirements of the public interest, amend the quantities or volume of contracts concluded pursuant to the provisions of the Law / Act and these Regulations, by increase or decrease, under the same conditions and prices, by a percentage not exceeding (20) twenty percent of the value or duration of the Contract. If the total increase amendment exceeds (50,000,000) fifty million Riyals, the approval of the Minister must be obtained, all in accordance with the following controls:
1 - The public interest must require that no new tender be issued, if the change is an increase.
2 - The necessary Financial Appropriations must be available.
3 - The amendment must be made during the period of performance of the works and before the start of the maintenance or warranty period. As an exception, the Chairman / President may, based on a reasoned recommendation from the Committee and with the contractor’s approval, make the amendment during the maintenance or warranty period.
4 - The amendment must be necessary and unforeseen when preparing the conditions and specifications of the original tender.
5 - The details and quantities of the request must be submitted, the Bases and rules of pricing must be stated, and the original tender Contract must be attached.
As an exception to the amendment percentage referred to, by decision of the Chairman / President, based on a reasoned recommendation from the Committee, in urgent or emergency cases, the quantities or volume of construction, building and infrastructure works contracts and the related consulting Service Contracts may be amended by an increase exceeding (20%) twenty percent of the value or duration of the Contract, provided that the Minister, the contractor, and the availability of the financial appropriation are approved.
The government entity may also, based on a reasoned recommendation from the Committee and with the contractor’s approval, amend the quantities or volume of concluded contracts by reducing them by more than (20) twenty percent of the value or duration of the Contract.
In all cases, the competent Department / Directorate must study and evaluate the request, provide its reasoned recommendation thereon, and state the serial Number of the request, its value and percentage of the total value of the Contract, and the total previous changes made to the Contract, their values and percentages.
In contracts for the supply of spare parts, if the public interest so requires, and not exceeding the amendment percentage referred to in the first paragraph of this Article, and with the approval of the Committee by unanimous vote of its members present, the amendment may include the addition of spare parts from outside the Contract, provided that the items are related to the subject of the original Contract and that the spare parts are available from a single source.
The calculation of amendments to the quantities or volume of contracts by increase shall be separate from amendments by reduction, and the percentage of the net change orders may not be calculated, nor may the amendments made by reduction be deducted from those made by increase.
The Department / Directorate shall, after the approval of the Minister, determine the percentages of change orders that government entities are permitted to make without submission to the Committee