CAPT outlines four conditions for awarding contracts to SMEs
The Central Agency for Public Tenders (CAPT) has announced four key conditions that public entities must follow when allowing small and medium-sized enterprises (SMEs) to participate in government tenders under the Public Tenders Law.
The agency stated that all four conditions must be met before recommending the award of a contract to SME bidders. Their bids must comply with all specifications and tender requirements, and their proposed prices must not exceed 20 percent of the lowest accepted bid.
The first condition requires submitting a valid registration certificate from the National Fund for Small and Medium Enterprises Development.
The second condition calls for providing certified and audited financial statements prepared by an accounting firm accredited by the Ministry of Commerce and Industry for the past three years. If the company has been established for less than three years, it must submit financial statements for the available period.
To qualify as a small enterprise, total assets must not exceed 250,000 dinars and annual revenues must not exceed 750,000 dinars. For medium-sized enterprises, assets must not exceed 500,000 dinars and revenues must not exceed 1.5 million dinars. Companies that surpass these limits will not be granted the preferential percentage.
The third condition involves presenting a certificate from the Public Authority for Manpower confirming the total number of registered employees across all government contracts. The workforce must not exceed 50 employees for small enterprises and 150 for medium enterprises.
The fourth condition requires submitting a commercial registration certificate and a valid commercial license that includes an activity consistent with the nature of the tendered project.
The agency’s decision aims to enhance fair competition, promote transparency, and strengthen the participation of small and medium enterprises in Kuwait’s public procurement sector.
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