This document summarizes a presentation given on sensitizing the private sector on opportunities within the CARICOM Single Market and Economy (CSME) public procurement regime. The presentation covered the objectives and scope of the CSME procurement regime, including covered entities and thresholds. It discussed current procurement opportunities for businesses in CARICOM states as well as challenges and additional opportunities that may arise from full implementation of the regime, such as greater market access and joint venture opportunities across borders. Information sharing and capacity building were highlighted as important factors for businesses to take advantage of the regional procurement market valued at $25-32 billion annually.

1. SENSITIZATION OF THE PRIVATE SECTOR ON THE CSME PUBLIC
PROCUREMENT REGIME
THE CSME PUBLIC PROCUREMENT REGIME – OPPORTUNITIES AND
CHALLENGES FOR THE PRIVATE SECTOR
BY
Philip McClauren,
Deputy Programme Manager, CSME
June 28, 2016
Knutsford Court Hotel
Kingston, Jamaica

2. CONTENT OF PRESENTATION
 Objectives of the CSME Public Procurement Regime
 What Areas and Entities are Covered
 Scope of Application of the Regime
 The CSME Public Procurement Thresholds
 Public Procurement Opportunities in Member States Challenges and
Opportunities – Current Situation and under the Implementation of
the Regime

3. OBJECTIVES OF THE CSME PUBLIC PROCUREMENT REGIME
 Establish the conditions necessary for full integration of the national
procurement markets of Member States into a single, unified and open area for
Public Procurement to bolster the CSME
 Creation of the necessary competitive and non-discriminatory conditions to
facilitate achievement of value for taxpayers’ money.
 Provision of opportunities for access to a single market with regional sales
opportunities.
 Strengthening the competitiveness of the regional supplier base and
encourage the rational use of scarce resources.

4. WHAT ENTITIES AND AREAS ARE COVERED
 Entities
Central Government Entities
 Sub-Central Government Entities
 Other State Owned companies that procure goods, services and works by
using public funds
What is Covered
 Goods.;
Services and
Works

5. SCOPE OF APPLICATION OF THE REGIME
 Public procurement that are at and above the agreed thresholds
for goods, services and works
 Public procurement that are not otherwise excluded from coverage
in paragraph 2 or in the Annex to this Protocol.

6. The CSME PUBLIC PROCUREMENT THRESHOLDS
REGIME GOODS (US$) SERVICES (US$) WORKS (US$)
FRIP 100,000 100,000 1,000,000
Proposed Thresholds 150,000 150,000 3,000,000
Comparative Thresholds in the CARIFORUM –EC EPA
CARIFORUM – EC EPA 248,000 248,000 10,400,682
European Union: Central
Government (Directive
2004/18/EC)
€134,000 €134,000 €5,186,000
Other Public Sector Authorities
€207,000 €207,000 €5,186,000

7. PUBLIC PROCUREMENT OPPORTUNITIES IN CARICOM MEMBER STATES–
CURRENT SITUATION
Public Procurement Opportunities for the Private Sector including
SMEs’
 Some Member States have implemented a procurement policy which include
for example: offsets, set aside system, margin of preference, quota or a
percentage of annual procurement expenditure for SMEs
 There is also a policy in some Member States to allow an undisclosed fair share
of public procurement of goods and services for MSMEs’
 There are Member States that have Set Aside between 20-40 percent of
procurement budgets for SMEs in order to access to procurement opportunities.

8. PUBLIC PROCUREMENT CHALLENGES IN CARICOM MEMBER STATES –
IMPLEMENTATION OF THE REGIME
 Prohibition of the imposition of offsets in the qualification and
selection of suppliers for tender awards in relation to CARICOM
Suppliers
However, a margin of preference may be applied to extra-regional
tenderers
 CARICOM suppliers in relation to public procurement should be
given a different meaning than what obtains in Article 32 of the RTC
 SMEs and larger companies can engage in joint-bidding on cross-
border procurement opportunities

9. PUBLIC PROCUREMENT OPPORTUNITIES IN CARICOM MEMBER
STATES – IMPLEMENTATION OF THE REGIME
 Procurement opportunities below the threshold would give
Member States policy space for domestic suppliers
 National Treatment for all CARICOM suppliers in relation to
procurement opportunities in Member States
 Opportunities for development of joint ventures, consortiums,
associations, joint bidding on procurement opportunities with
suppliers in Member States

10. PUBLIC PROCUREMENT OPPORTUNITIES IN CARICOM MEMBER STATES –
IMPLEMENTATION OF THE REGIME
Procurement opportunities funded by International Financial Institutions (IFIs),
Third States and other Agencies are not covered by the Regime. Member States
would be able to impose offsets permissible by these agreements.
Request for quotations (RFQs) and Shopping under these IFI arrangements
would give Member States the latitude to consider a fair share of procurement
expenditure for domestic suppliers.
 The Private Sector can also participate in procurement opportunities funded by
IFIs both through thresholds that are at National Competitive Bidding (NCB) and
International Competitive Bidding (ICB) levels.

11. PUBLIC PROCUREMENT CHALLENGES IN A CSME PROCUREMENT REGIME –
INFORMATION AND COST CONSTRAINTS
 Lack of information and awareness on procurement opportunities
 Onerous Pre-qualification criteria and volume of information required to fill
out bidding documents
 High cost associated with Security Bids and Bid Guarantees
 Lack of capacity to bid on high level procurement and therefore sub-
contractors for most projects do most of the work for less than full payment
 Over-emphasis on price which gives larger suppliers/companies a competitive
advantage over SMEs for public contacts.

12. PUBLIC PROCUREMENT OPPORTUNIITES IN A CSME PROCUREMENT
REGIME – INFORMATION AND OTHER RELATED MATTERS
Development of the Community Public Procurement Notice Board (CPPNB) for
e-publication and e-awards of procurement opportunities
 Centralized Register of Community Suppliers and National Register of Suppliers
in Member States
 Integration of CPPNB with existing National eProcurement Portals (Jamaica and
Barbados)
 Provision of National eProcurement Portals in other Member States for
publication of procurement opportunities including those below the thresholds
and procurement opportunities funded by IFIs

13. PUBLIC PROCUREMENT OPPORTUNIITES IN A CSME PROCUREMENT
REGIME – INFORMATION AND OTHER RELATED MATTERS
 Availability of information regarding Public Procurement
Opportunities in all Member States
 Simplified Bidding document forms available online for each
Member State making the application process less onerous
 Transparency and accountability in the bidding and awards process
 The availability of historical data on Public Procurement which can
inform policy on SMEs

14. CLOSING THOUGHT
 The integration of fourteen (14) national markets into a single
unified CSME regional procurement market
 Opportunities for the regional private sector to access public
contracts for goods, services and works at an estimated value of
approximately USD $25 billion to USD $32 billion per annum
 E-Learning platform with courses, videos and demos and training
opportunities for employees of the private sector in public
procurement.

15. END OF PRESENTATION
THANK YOU