With reference to estimation and value of procurement, section 32(1) of the Act, what exactly is splitting of procurement?
According to section 27 (1) (a) of the Act a procuring entity shall publish on its website or any other electronic format, information regarding all planned procurement activities for the following twelve months, no later than six (6) weeks after the approval of the National Budget. Therefore, you are required to indicate in your plan your
various procurement activities to be executed in the said period based on allocated funding and your strategic
It is important in the planning process to develop a reasonable estimate of the value of your procurement. Additionally you should not divide the procurement to deliberately limit competition and/or avoid obligations under the Act. If this is done, it is considered splitting of procurement and will be subjected to – investigation by the Office.
Offences and Penalties (Schedule 1) – Splitting of Procurement carries on summary conviction a fine of Five Hundred Thousand dollars ($500,000) and one (1) year imprisonment.