Their Excellencies the Ministers,

En accordance with the Prime Minister’s Resolution No. 6 for 1978 which delegates to the Civil Service Bureau the Central authority for total management and control of all personnel providing services to the Government of Bahrain, and with Resolution No. (3) for 1978 which requires that services contracts have the specific written approval of the Civil Service Bureau.

The attached Policy and Procedures Manual for Services Contracts is provided for the use and guidance of the Ministries in preparing, renewing and extending services contracts. Each ministry is also required to provide a copy of every services contract currently in effect to the Organization and Manpower Management Section, Civil Service Bureau, by 30th September, 1979.

This Circular, and the attached Manual, are effective on the date of Issue.

JAWAD SALIM AL-ARAYED
MINISTER OF STATE FOR CABINET AFFAIRS

INRODUCTION

This brief manual is designed to be a part of that assistance. It presents a set of guidelines for reasonably sound contracts and explains the procedures which must be followed by the Ministries in securing approval of services contracts. The procedures aid the Government in its efforts to achieve effective use of our total manpower resources.

The Civil Service Bureau’s interest in services contracts is a part of its general responsibility for the quantity, quality and equitable distribution of the Government’s manpower resources, Its purpose is to assist Ministries in assuring the most economical and effective manpower utilization. Services contracts are one essential method fur obtaining needed manpower and often provide the most cost-effective means for conducting government business, Contracting may not be used to circumvent normal Civil Service procedures, pay scales, government manpower ceilings or budget limitations.

The Ministry of Finance and National Economy is responsible for adherence to authorized budget limitations and related financial arrangements and is concerned about services contracting as that process affects government spending levels and payment procedures.

The term Services Contracts applies to all contracts carried in the recurrent budget (Chapters 2 & 3) under which work is performed for the Government. The term applies to alt advisors, technicians, specialists, consultants, training, Specialists, or other workers (skilled or unskilled), whose services are obtained either directly or indirectly, by secondment or contract or agreement, with consultant firms, companies, associations, universities, other governments, or international agencies. As used in this manual the term does not cover the services of individuals contracted for through direct hire Civil Service Bureau employment procedures.

APPROVAL PROCEDURE

Approval of Services Contracts most be obtained from the Civil Service Bureau and the Ministry of Finance & National Economy before final signature. The procedure for this approval is outlined herein

The approval procedure is not designed to discourage the use of services Contracts since in many cases contracting is the most efficient and effective method for obtaining the services to carry on Government functions. The Civil Service Bureau must be assured, however, that the Ministry proposing a contract:

1. does not have sufficient direct hire employee qualified to do the work.

2. Cannot train , within a reasonable length of time existing employees to do time work.

3. is not using the contract device to circumvent manpower ceilings.

4. is proposing expenditures for wages and salaries and support services which are reasonable and in line with government guidelines, and provide the most economical return on investment.

   The ministry of Finance & National Economy must be assured that the ministry proposing the contract is:

5. proposing expenditures for wages and salaries and support services which are within authorized budget limitations for the full term of the contract.

6. following payment procedures which are compatible with government financial systems and capabilities.

   Renewals of existing contracts must be approved.

   Inter-Ministry agreements need not be approved.

1. Clearance from the Civil Service Bureau before issuing tender notices or selecting a contractor. Submit Contract Approval Form 1 to Civil Service Bureau.

   Clearance at this stage is to inform the Civil Service Bureau of the Ministry’s intention to obtain personal services through a contractor. The Civil Service Bureau will, at this step, examine the proposal for the questions covered in point a, b and c, listed above. At this step the Civil Service Bureau may be able to assist the Ministry in suggesting the names of contractors who have been effective contractors for other Ministries.

2. Issue tender notices and select contractors.

3. Prepare proposed contract.

4. Submit proposed contract with Form 2 (see Attachment II) to the Civil Service Bureau and Ministry of Finance & National economy. Reviews of proposed contracts will be undertaken as promptly as possible and in no case will the review process take longer than 30 days.

   Form 2 and proposed contract should be submitted first to the Civil Service Bureau which will review the contract and, when in its judgment the proposal is appropriate, refer it to the Ministry of Finance & National economy which will, after final approval, return contract to the Civil Service Bureau who will inform the initiating Ministry.

COMPETITIVE BIDDING

Ministries should secure at least three competitive bids (tenders) on all projected contracts whenever feasible and practicable

An advertisement or advertisements asking for tenders should be published once a week for two consecutive weeks in newspapers of general circulation, national or international. A reasonable length of time between the publication of the advertisement and the date of submission of tenders must be provided to give contractors sufficient time to prepare tenders.

The Ministry of Finance & National Economy, through the office of the tinder Secretary for Financial Affairs, shall be informed of all tender openings expected to above BD. 10.000. The Ministry will have a representative present at such openings. Normally, contracts will be awarded to the lowest responsible bidder meeting specifications.

When formal advertising is not feasible and/or practical , efforts should still be made to obtain competitive bids. For example, in seeking consultation expertise competitive bids may be obtained by mailing specifications and requests for proposals to various reputable individuals or firms whose performance has been adequately demonstrated.

The method of obtaining competitive bids will vary with the type of service being procured and will not necessary be limited to price comparison alone. Although price must always be a key factor, the quality of the service to be rendered must also be considered.

A brief summary list of all Tenders secured, together with copies of the tender notices, must accompany the contract when submitted to the Civil Service Bureau for final approval. Where three tenders could not be procured, an explanation must accompany the proposed contract, including the names and addresses of the firms or individuals requested to submit tenders (An explanation such as “no other bids obtainable” will not suffice).

Competitive bids will not be required in the following circumstances:

1. When the amount of the contract does not exceed BD. 1000/- in a year’s time.

2. When an emergency or other acute condition requires the immediate use of contracts services to safeguard human life, to insure or restore the delivery of essential services to the public, or to protect government property.

   In such cases, the affected ministry may request immediate, verbal approval from the Civil Service Bureau to contract for services. The contract terms, conditions, and justification will be provided within a reasonable period of time, to be mutually agreed upon.

Awarding more than one contract to avoid the intent of the monetary limitation specified is prohibited.

Preference for Bahraini Contractors

In cases where comparable (approximately equal) bids are received from both Bahraini and Expatriate contractors the Bahraini contractor should be given preference, provided the quality of service to he provided is expected to be the same.

A suggested Form of Notice to Contractors is shown as Attachment III.

WHAT AN ACCEPTABLE CONTRACT SHOULD NORMALLY INCLUDE

A contract is a legal document which places certain obligations on the Government of the State of Bahrain and on the contractor. It is essential that contracts be prepared in a manner which will insure that the best interests of both parties are adequately protected and that the Interests of all personnel involved are also protected as prescribed by law and reasonable standards of fairness and equitability. All contracts must be clearly stated, incorporate competitive prices and clearly set forth high standards of performance.

Different kinds of contracts require different forms; it is not possible to apply a single standard contract form.

There are basically three types of contracts which incorporate personal services provisons:

1. Hire of Labour

   In this type of contract the object is the recruitment and supply of labour (usually skilled or semi-skilled) by a contractor. For this kind of contract a simple standard form of agreement incorporating the key guidelines set forth herein can be used.

2. Hire of Expertise

   In this type of contract the object is the supply of skilled personnel by the contractor. For this kind of contract a standard farm cannot be used since the particular types of expertise required and the duties of the experts must be described as an integiral part of the contract.

3. Hire of Services, etc. which involve Personnel Expenditures

   In this type of contract the object is th suppiy of services (for example; maintenance, research, design, management ,traning, etc.) by the contractor .This is the most complicated type of contract and the most difficult to assign appropriate cost arrangements sice it usually coovers materials, equipment, support services, administrative overhead and other subsidiary costs as well as personnel costs for providing the services. Each contract must be individually designed to define clearly the scope and quality of services required and the full costs.

Regardless of the form utilized every contract should, as a minimum, include certain common provisions. The preparation of all types of contracts.

1. Duration of contract

   Beginning and ending dates should be specified.

2. Legally authorized parties

   The parties to the contract should be clear (i.e. Ministry, company, partnership, individual).

3. Services to be provided

   This section is the heart of the contract and should clearly outline the work to be performed or the labour services to be provided.

   Simple Type A contracts must include the number, types and skills of labourers to be supplied, their hours of work and rates of pay including regular and overtime and arrangements for supervision.

   Type B and C contracts must contain a clear description of the work to be performed or services to be provided. Performance specifications msut be listed in detail, including the type, quality and scope of services to be provided, time schedules for commencement and completion of work, and delineation of specific products or services to be delivered.

4. Contractor’s Obligation

   Type A must include the contractor’s obligations for: equipping workers, protecting the health and safety (If workers, inssuring workers, and regular reporting of personnel and wage lists to the employing Ministry.

   Type B and C contracts must include the contractor’s obligations for all those items listed above ( when applicable) plus the contractor’s obligations for work performance, including time-tables for delivery of services and quality of work.

5. Ministry Obligation

   Ministry obligations under all types of contracts will include responsibility for supervision and monitoring of performance meeting specified payment schedules, making available information pertinent to job applicable, the supply of work and rest facilities , and the supply of specified equipment or a other materials.

6. Cost Provisions

   Cost details under type A contracts should be straight-forward and need only be a listing of numbers of workers required and their rates of pay.

   Under types B and C contracts cost estimating is more difficult. Cost will include the costs of various support services and overhead in addition to the directcosts of salaries. The contractor will propose costs and the role of Ministry is to analyse and question the cost estimates presented. The civil services contract used for the hire of expatriate labour may provide some useful guidelines for various kinds of travel, housing, transportation and other costs.

   Vague references to the Ministry's obligations to supply transport or housing or other services without cost details must be avoided.

   Provisions for circumstances under which rates might required adjustment (such as exchange control changes, inflation etc.) should be detailed, if applicable. Constraints on cost reimbursements should be outlined. Advice should be sought from the Ministry of Finance & national economy.

7. Terms and Methods of Payment

   Payment schedule and method of payment should be described in detail. The Ministry of Finance & National Economy should be consulted when necessary.

8. Reappraisal Possibilities

   In cases of changing requirements contracts may need to be renegotiated. Circumstances under which a contract can be reopened should be specified.

9. Contract Extension Provisions

   Conditions for considiration of any extension should be specified.

10. Non-Performance Provisions

    Penalties for non-performance and procedures for termination for non-performance or inadequate performance should be specified.

11. Training Provisions

    When contracts are used because regular employees lack the skill to do the jobs it is desirable to require, as a part of the contract, that the contractor provide for the training of Bahraini Civil Service Employees in the course of providing the services. The training component then become an essential part of the contract, especially if clearly stated and supported by evaluation criteria.

Certain provisions are needed in all contracts. Suggested texts for these general provisions are provided for the convenience of the Minitstries at Appendix A.