Angola: Law Prevents Irregular Contracts

Luanda — National Public Procurement Service (SNPC) will suspend contracts with flaws in its procedures to ensure improvement and swiftness in accordance with the new Public Contracts Law, which comes into force on 23 January.

The new law was published on December 23, 2020 and comes up with several innovations.

The novelties includes that on creation of a new procedure called Dynamic Electronic Procedure, which allow quick (in less than 24 hours) and competitive adjudications.

This occurs through the prior registration of companies on the Portal of Public Procurement, and Creation of the emergency hiring regime to deal with situations of calamities, catastrophes and states of emergencies, among others.

Likewise, it introduces flexibility in the contracting process by public companies that do not benefit from public resources, applying the principles of market competition to them.

It will also address some complaints regarding the choice of procedures, such as direct awards, just like the simplified procedure.

In the new Law, the public procurement regulator has the legal power to suspend certain procedures with a view to improving them.

As of January 23 of this year, should the public procurement regulator take notice of that a contracting public body or entity has performed outside the Law, this act will be suspended and the same entity will carry out the improvement, otherwise the process will not proceed .

Public companies which do not benefit from the State Budget subsidies are prevented from joining contracts without the procedures of the new Law.

When these companies intend to purchase services worth up to 182 million kwanzas and contracts starting at 500 million kwanzas must submit to the Law on the public procurement.

The companies that do not benefit from operational contracts coming from State Budget will not apply the Law of public contracts, because these are delivered to the competition and will apply the rules in force in the market, but will require transparency.

The changes owed to some constraints in the application of the Law, namely the need for simplification for greater speed in the processing of public procurement acts (CP), as well as the concern expressed by the Public Contracting Entities (EPC) regarding tender procedures , as they were considered quite bureaucratic and complex.

The changes also include the value limit for choosing the simplified procurement procedure, from Akz 5 million to AKZ 18 million, as well as removing the value limit for competitive procedures.

The new law was published on December 23, 2020 and comes up with several innovations.

The novelties includes that on creation of a new procedure called Dynamic Electronic Procedure, which allow quick (in less than 24 hours) and competitive adjudications.

This occurs through the prior registration of companies on the Portal of Public Procurement, and Creation of the emergency hiring regime to deal with situations of calamities, catastrophes and states of emergencies, among others.

Likewise, it introduces flexibility in the contracting process by public companies that do not benefit from public resources, applying the principles of market competition to them.

It will also address some complaints regarding the choice of procedures, such as direct awards, just like the simplified procedure.

In the new Law, the public procurement regulator has the legal power to suspend certain procedures with a view to improving them.

As of January 23 of this year, should the public procurement regulator take notice of that a contracting public body or entity has performed outside the Law, this act will be suspended and the same entity will carry out the improvement, otherwise the process will not proceed .

Public companies which do not benefit from the State Budget subsidies are prevented from joining contracts without the procedures of the new Law.

When these companies intend to purchase services worth up to 182 million kwanzas and contracts starting at 500 million kwanzas must submit to the Law on the public procurement.

The companies that do not benefit from operational contracts coming from State Budget will not apply the Law of public contracts, because these are delivered to the competition and will apply the rules in force in the market, but will require transparency.

The changes owed to some constraints in the application of the Law, namely the need for simplification for greater speed in the processing of public procurement acts (CP), as well as the concern expressed by the Public Contracting Entities (EPC) regarding tender procedures , as they were considered quite bureaucratic and complex.

The changes also include the value limit for choosing the simplified procurement procedure, from Akz 5 million to AKZ 18 million, as well as removing the value limit for competitive procedures.

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