According to NPA* Guidelines / Sri Lanka
Domestic preference is given to local contractors, to encourage the local contractors.
Eligibility for Domestic Preference
- Individual/sole proprietor – shall be Sri Lankan.
- Partnerships – more than 50% owned by Sri Lankan.
- Individual Firms
- Shall be registered in Sri Lanka.
- More than 50% are owned by Sri Lankans.
- Should not subcontract more than 10% of the work (excluding Provisional Sums and Contingencies) to foreign contractors.
- Joint Ventures
- Each constituent firm should satisfy the criteria mentioned for individual firms.
- JV must be registered in Sri Lanka.
- Should not subcontract more than 10% of the work (excluding Provisional Sums and Contingencies) to foreign contractors.
Application of the Preference
- Preference can be applied only if it is disclosed in the bidding documents.
- The margin of preference is added to the foreign bidder’s price and not deducted from the domestic bidder’s price.
Domestic Preference
Category I – Bids offered by bidders eligible for domestic preference.
Category II – Bids offered by others.
- The lowest evaluated in each category is selected first.
- These two are compared.
- If the bid from Category I is the lower one it is the preferred bid.
- If the bid from Category II is the lower one then the Domestic preference percetage (for example 10%) of this bid price is added to it and then compared with the Lowest Bid in Category I.
- Even after this, the bid from Category II is lower, then it is the preferred bid.
- Otherwise the bid from Category I is the preferred one.
*NPA – National Procurement Agency.