Call for tenders

 How to submit tenders in response to invitations to tender in Algeria

Contracts awarded for the implementation of infrastructure projects or any procurement of capital goods on behalf of government institutions observe the rules of the tender procedure laid down by the « Government Contracts Regulation ». This applies to all contracts of more than 6 million Algerian Dinars. The details of this regulation can be viewed at the following internet addresses:

Public tenders- as well as provisional and final awarding of contracts- are advertised in dailies and in the official contract bulletin of the public agency (BOMOP), published weekly. The latter is available online with a subscription at http://www.anep.com.dz. The energy and mines sector publishes its own bulletin, i.e. the Bulletin of Invitations to Tender for the Energy and Mines Sector (BAOSEM), available with a subscription at http://www.baosem.com or at http://www.mem-algeria.org.

The trade section of the South African Embassy in Algiers reviews the invitation to tender notices on a daily basis and if there is sufficient bidding time, informs the International Business Opportunities Centre (IBOC) at the Department of International Relations and Co-operation and the Department of Trade and Industry of any tenders of particular interest. The Embassy also sends notices directly to the South African firms that have indicated their interest.

Companies should be aware that it generally takes more than just bidding on a tender to obtain a contract. Companies are strongly advised to visit state organisations to introduce their products and their capabilities and to get a better idea of what the product is to be used for. Customers making visits often obtain information that will help them prepare the technical specifications for the tender, making it easier to prepare a bid when a tender is finally announced.

Most tenders have a deadline of 30 to 60 days depending on the size of the project. It is advisable that companies contact the institution that issued the invitation to tender to confirm the cut-off date. Generally speaking, deadlines are firm, but companies may make an official request for extension which is subject to approval. It is extremely important that the South African companies respond as soon as possible so that tendering documents may be obtained and forwarded rapidly. Companies should begin to prepare their tenders before the documents are received and should use special courier services such as UPS, FEDEX or DHL, which ensure delivery in less than one week. Companies that do not have local representatives-and therefore cannot obtain the specifications directly- must do business with specialized local firms. The following companies are the most specialized:

The most important elements to be complied with when bidding in Algeria are:

  • Strict compliance with the submission date of the tender;

  • Bids are to be placed in double-sealed envelopes in compliance with the specifications. If either of the two envelopes bears any mark which might identify the company, the tender shall be rejected without being opened. Tenders sent by registered letter or private mail may be considered null and void if the name of the company is identified on the receipt.

    • Outer envelope addressed to the buyer indicating the references of the tender and marked with « DO NOT OPEN »;

    • Anonymous interior envelope containing the bid;

  • Compliance of the bid in relation to the tender documents, including as much information as possible on the supplier (experience, associates, main clients, list of similar work, etc.);

  • Bids should be prepared in French and if necessary, documentation should be translated, even if it is not requested;

In most cases, companies are requested to send their technical and financial bids separately. Only financial bids from companies having met the technical requirements will be examined. The technical and financial bids are opened in the presence of the bidders or their representatives. Following the official publication date of provisional awarding of the contract, bidders will have a period of 10 days to protest the selection made if they feel they have been unjustly discriminated against.

The following documents are required for all bids submitted:

  • A tender letter (sample provided in the specifications)

  • A declaration (sample provided)

  • The tender itself prepared according to the specifications

  • Any document specifying the qualifications of the company or the bidder in the field in question, including professional and banking references

  • The status of the company (letters patent for South African companies)

  • A list of the company's principal shareholders

  • The financial statements for the last two years

  • A bank bond to be prepared by the head office of the bidder's bank This bond will only be released after the contract is awarded

  • The tax status in Algeria for South African firms that have already carried out projects in that country

  • All other documents required in the specifications

Apart from the tender letter and declaration which must accompany the bid, the other documents may be supplied after the bids have been submitted, with the authorisation of the bid opening commission, but before the contract is signed.

A foreign supplier may be selected, even at a higher price, if it offers better guarantees for performance of the contract and on condition that it accumulates the maximum number of points based on a scoring scale established by the contracts commission. The scoring scale takes both technical and financial requirements into account. It should be noted that the following points may be constituted as additional assets when selecting a partner:

  • Participation of an Algerian company;

  • Transfer of skills - training is very highly valued - or technologies;

  • Presentation of finances and/or investments;

  • Bank bond issued by a reputable foreign bank, when requested;

  • Reasonably reduced time frames

Advantages in participating in invitations to tender, even if the company is not selected:

  • exposure with local companies and institutions;

  • possibility of being registered on a supplier's list and being contacted for directly negotiated contracts or for drawing up specifications;

  • Cognisance of current market competitors.