The Federal Government has approved new guidelines that could bar contractors, consultants and service providers from participating in federal procurement for up to five years over misconduct and poor contract performance.
The new National Guideline on Debarment of Contractors provides for sanctions ranging from three to five years for firms and individuals found guilty of specified procurement violations.
The directive was contained in a circular signed by the Secretary to the Government of the Federation, George Akume, titled, “Implementation of the National Guideline on Debarment of Contractors.”
The guideline identifies six major grounds for debarment, including bribery, conviction for fraud, wilful failure to fulfil contractual obligations, a record of unsatisfactory performance, falsification of documents and prior debarment by a multilateral organisation.
According to the circular, contractors may be sanctioned for offering money, gifts or other benefits to current or former employees of procuring entities or the Bureau of Public Procurement to influence procurement decisions.
Offering employment or other financially quantifiable benefits for the same purpose is also prohibited.
Contractors convicted of fraud or other offences connected with obtaining or executing public contracts may equally face debarment.
The government also targeted firms that deliberately fail to perform their contractual obligations or have a history of poor performance.
Falsifying documents and being previously debarred by a multilateral organisation are also listed among the grounds for exclusion.
Once debarred, a contractor will be barred from receiving invitations to bid for federal contracts, securing new contracts or participating in subcontracts involving the government.
The contractor will also be prohibited from conducting government business as an agent or representative of another contractor, consultant or service provider.
However, existing contracts may continue where the relevant government agency determines that there are valid reasons to allow their completion.
The guideline also provides that sanctions will extend to partners involved in joint venture arrangements.
How the process will work
The BPP may initiate debarment proceedings where its review, surveillance or audit reveals possible violations of the Public Procurement Act or relevant regulations.
A procuring entity may also recommend debarment after conducting investigations and providing 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 submission within 10 working days.
Where sufficient grounds are established, the affected contractor must receive a notice detailing the allegations and proposed grounds for debarment within five working days.
The contractor will then have 10 working days to respond, with an extension of up to five working days possible upon request.
Responses may be submitted personally or through legal counsel and must include supporting information and a verifying affidavit confirming the accuracy of the information provided.
Where a contractor cannot be reached physically or electronically, the proposed debarment may be published in two national newspapers, the Tenders Journal and the BPP website for at least 10 working days.
If no response is received after publication, the committee may proceed with the case based on the available evidence.
Where a response is submitted, the Debarment Committee is expected to consider it and reach a decision within 15 working days.
If debarment is approved, the BPP must issue a final notice within five working days.
The notice will state the grounds for the sanction, duration of the debarment and its implications.
The name of the affected contractor will subsequently be entered into the BPP database and published on the bureau’s website, the Federal Tenders Journal and other designated platforms.
The new guideline operates within the framework of the Public Procurement Act 2007, which established the BPP and provides the legal basis for regulating federal procurement.
Akume directed all Accounting Officers to ensure that members of Tenders Boards, Procurement Planning Committees, procurement departments and other officials involved in government contracting comply with the new guideline.
The circular stated that implementation of the directive was effective immediately.
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