The Federal Government has approved new guidelines that will see contractors, consultants and service providers barred from participating in Federal Government procurement for between three and five years for fraud, poor performance and other procurement-related offences.

The new policy is contained in a circular titled “Implementation of the National Guideline on Debarment of Contractors,” signed by the Secretary to the Government of the Federation, George Akume.

According to the guideline, the measure is designed to strengthen integrity, transparency and accountability in public procurement, ensure value for money and protect government from fraudulent and non-performing contractors.

The government identified six grounds for debarment, including bribery or offering benefits to influence procurement decisions, conviction for fraud or related offences, wilful failure to fulfil contractual obligations, a record of unsatisfactory performance, falsification of documents and prior debarment by a multilateral organisation.

A contractor may be sanctioned if found to have offered or promised money, gifts or other tangible benefits to current or former officials of a procuring entity or the Bureau of Public Procurement (BPP) to influence a procurement decision.

Offering employment or other benefits with monetary value for the same purpose is also listed as grounds for debarment.

The guidelines further provide for sanctions against contractors convicted of fraud or other offences connected with obtaining, attempting to obtain or executing a public contract or subcontract.

Contractors who wilfully fail to perform according to the terms of their contracts or have a history of poor or unsatisfactory performance may also be excluded from government procurement.

Falsification of documents is another ground for debarment, while a contractor already sanctioned by a multilateral organisation may also be considered for debarment by the Federal Government.

A debarred contractor will not be eligible to submit bids for government contracts, receive contract awards or participate in subcontracts with Ministries, Departments and Agencies.

The contractor will also be prohibited from conducting business with the government as an agent or representative of another contractor, consultant or service provider.

However, an existing contract or subcontract may continue if the relevant government agency determines that there are sufficient reasons to allow its execution. The sanction may also extend to partners in a joint venture.

The Debarment Committee may impose a sanction for a minimum of three years and a maximum of five years, subject to the procedures established by the guideline.

The process begins when the BPP, following a review, surveillance or audit, has reason to believe that a contractor has violated the Public Procurement Act or relevant regulations.

A procuring entity may also recommend debarment after conducting investigations and obtaining evidence approved by its Accounting Officer.

The BPP is required to acknowledge a debarment request within seven working days, while the Secretary of the Debarment Committee must review the submitted information within 10 working days.

Where a case is established, the BPP must issue a notice to the affected contractor within five working days, stating the allegations and grounds for the proposed debarment.

The contractor will have 10 working days to respond and may request an extension of up to five additional working days.

Where the notice cannot be delivered physically or electronically, the BPP may publish the proposed debarment in two national newspapers, the Tenders Journal and on its website for at least 10 working days.

After receiving a response, the Debarment Committee is expected to consider the case and reach a decision within 15 working days. If debarment is approved, the BPP must issue the final notice within five working days.

The final notice will state the grounds for the sanction, duration of the debarment and its implications.

The name of the sanctioned contractor will subsequently be entered into the BPP database and published on the Bureau’s website, the Federal Tenders Journal and other relevant platforms.

The new guidelines operate within the framework of the Public Procurement Act 2007, which established the BPP as the regulatory authority for Federal Government procurement.

The circular directs all Accounting Officers to ensure that Tenders Boards, Procurement Planning Committees, Procurement Departments and other officials involved in procurement are fully acquainted with the new requirements.

The Federal Government said the guidelines take immediate effect, directing all relevant institutions to ensure strict compliance.