Gov’t single source procurement threshold moving from $1.5 million to $3M

Finance Minister Dr Nigel Clarke says the Government will increase the threshold for single source procurement from $1.5 million to $3 million.

Clarke says with the move procuring entities can adopt more nimble contracting procedures, leading to the increased pace of contract formation.

Additionally, Clarke announced that in the case of works, the $2 million threshold will be revised upwards to $5 million.

He made the disclosure during the opening of the 2024/25 Budget Debate in Parliament, noting that the increase stems from a review of the Public Procurement Act 2015 and its Regulations.

He said that the $1.5 million threshold has been in place for more than a decade.

Clarke said that given the developments in the use of e-procurement and other capacity-building outcomes, the Government is moving the limits required for the Public Procurement Commission approval from $30 million to at least $60 million.

“We are leaving procuring entities to award higher value contracts without the need for external approval. These changes will speed up the pace at which the Government can deliver for the Jamaican people,” said Clarke.

He said that given existing and past experiences, the Government must ensure that taxpayer benefits more quickly from the allocations made to the programmes of the Government.

Additionally, Clarke said there was a mandatory standstill period of 10 days between the date of a procurement decision and the date of award.

“We will abolish this for all but the largest procurement awards. Again, shaving unnecessary delay, speeding up the pace at which the Government can deliver for the Jamaican people,” he said.

- Kimone Francis 

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