Ministry of Finance announces Federal Decree-Law No. 11 of 2023 on Federal Government Contracting
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He Ministry of Finance announced the issuance of Federal Decree-Law No. 11 of 2023 on Federal Public Procurement, which establishes the general framework for the procurement of products and services in the UAE government.
The law, based on advanced and flexible international best practices, aims to define the principles, controls and standards for public procurement operations, improving and guiding procurement processes within federal government entities.
It aligns with the UAE’s digital agenda and enables its drive to implement digital procurement systems using world-class policies and practices, as well as ensuring equality and equity among participating suppliers, engaging relevant stakeholders and participants in the purchasing process in federal entities, and ensuring that they implement operations efficiently and effectively to ensure quality and achieve efficiency in spending.
He Federal Decree-Law No. 11 of 2023 It also aims to improve integrity, trust, transparency and competitiveness in all procurement procedures, while providing public value and public interest that align with global quality standards and sustainable development. It also supports Small and Medium Businesses and the national economy, provides flexibility, improves the performance of purchasing and contracting operations, and improves the efficiency of planning and procurement management at the federal level.
The law applies to all procurement and contracting activities and procedures of the federal entities mentioned in article (3), including central ministries, authorities and agencies, as well as their affiliates. Additionally, the law applies to independent and autonomous federal entities that are established to carry out specific government responsibilities or services, operate under the supervision of the government through their own administrative and organizational structure and their own budgets, and have no profit.
The law also specifies the exempt entities in article (4), due to the nature of these entities and the special regulations that exist to govern their acquisitions. However, the law recommends that these exempt entities refer to Federal Decree-Law No. 11 of 2023 as a guide to achieving the best value for your purchases.
This law and its executive regulations standardize the governance of the procurement process, including the roles and responsibilities of relevant federal entities, boards, committees, and organizational departments. It establishes that all contracting operations, at all stages, are subject to the principles of transparency, competitiveness and equal opportunities, and must be executed in accordance with the standards provided for in this law and its executive regulations.
To ensure flexibility and business continuity, the Federal Decree-Law No. 11 of 2023 stipulates that Cabinet Resolution No. (1/1) of 2022 on the adoption of the Digital Procurement Policy for the federal government, and Cabinet Decision No. (4) of 2019 on the regulation of procurement and warehouse management In the federal government, they will continue to apply as long as they do not conflict with its provisions until the executive regulation that develops this law is issued.
Furthermore, to mitigate interference in the execution of projects, the law, which entered into force on December 1, 2023, does not apply to procurement contracts of federal entities entered into before the aforementioned date. However, the provisions of Federal Decree-Law No. 11 of 2023 must be followed upon modification, renewal or extension of these existing contracts.
News source: Emirates News Agency
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