Article 34 of the Saudi Government Tenders and Procurement Law
المادة 34 من نظام المنافسات والمشتريات الحكومية · الفصل السادس: المزايدة العكسية الإلكترونية
The article allows the government entity to use the electronic reverse auction on conditions: detailed specifications, a competitive market, bids received and ranked automatically through the portal, set dates, and information given to competitors.
Official text (Arabic)
This article has not been amended since the law was issued.
للجهة الحكومية استخدام أسلوب المزايدة العكسية الإلكترونية وفقاً لما توضحه اللائحة، مع مراعاة الآتي:
1- أن تعد الجهة الحكومية مواصفات فنية مفصلة.
2- أن يكون هناك سوق تنافسية تكفل التنافس الفعّال.
3- أن تستقبل العروض عن طريق البوابة وترتبها بشكل آلي.
4- أن تحدد تاريخ بداية المزايدة ونهايتها.
5- أن يزوَد المتنافسون بالمعلومات اللازمة وإرشادات استخدام البوابة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 34 explained in plain English
This article governs the electronic reverse auction, which under the definition in Article 1 is an electronic method of submitting successively reduced bids within a set period in order to select the lowest-priced bids. That is, competitors lower their prices one after another instead of submitting a single fixed price.
The government entity may use this method as the Implementing Regulations explain, taking five matters into account:
- The entity prepares detailed technical specifications, so the comparison on price is for something clearly specified.
- There is a competitive market that ensures effective competition.
- Bids are received through the portal (the unified electronic portal for government procurement supervised by the Ministry of Finance) and ranked automatically.
- The start and end dates of the auction are set.
- Competitors are provided with the necessary information and instructions for using the portal.
It follows from these conditions that the method suits procurement that can be described precisely and for which enough suppliers are available, because the comparison in it rests on price.
It is a method independent of the framework agreement in Article 33. Anyone who takes part in a reverse auction and faces a problem with its procedures may consult a lawyer who specializes in administrative disputes and government contracts.
Practical example
A government entity in Riyadh put out the supply of computers with detailed technical specifications through the portal by reverse auction, and set the start and end times. Ahmed's company submitted a price and then lowered it twice during the period, and the portal ranked the bids automatically to select the lowest-priced.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 34 of Government Tenders and Procurement Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Administrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributor
Unwan Law Firm
Frequently asked questions about Article 34 of the Saudi Government Tenders and Procurement Law
What is an electronic reverse auction?
An electronic method of submitting successively reduced bids within a set period in order to select the lowest-priced bids.
What are the conditions for using a reverse auction?
Detailed technical specifications, a competitive market that ensures effective competition, bids received and ranked automatically through the portal, set start and end dates, and giving competitors information and instructions for using the portal.
Can reverse auction bids be submitted on paper?
The text requires bids to be received through the portal and ranked automatically.
More articles on Framework Agreements and Reverse Auctions
- Article 14
The article sets the powers of the unified procurement entity, including consolidating common procurement, concluding framework agreements, reviewing feasibility studies, preparing forms and training.
دون إخلال باختصاص الهيئة العامة للصناعات العسكرية، وتنفيذاً لأحكام النظام؛ تختص الجهة المختصة بالشراء الموحد بما يلي: 1- تحديد الأعمال والمشتريات التي تحتاج إلي
- Article 15
The article requires entities to buy what is on the unified procurement lists through its framework agreements unless it approves otherwise, and to submit feasibility studies and tender documents to it before putting them out, with specific exceptions.
1- لا يجوز للجهة الحكومية تأمين المشتريات أو تنفيذ الأعمال الواردة في القوائم التي تعدها الجهة المختصة بالشراء الموحد إلا من خلال الاتفاقيات الإطارية التي أبرمت
- Article 33
The article allows the government entity to conclude a framework agreement with the winner of the tender if quantities, the volume of works or services, or the time of execution cannot be determined.
للجهة الحكومية إبرام اتفاقية إطارية مع من رست عليه المنافسة تتضمن الأحكام التي سيجري في إطارها تنفيذ العقد، وذلك في الحالات التي يتعذر فيها تحديد كميات الأصناف
- Article 35
The article allows the Local Content and Government Procurement Authority, on its own initiative or at a government entity's request and with the Ministry of Finance's approval, to contract for localizing an industry and transferring knowledge.
للهيئة من تلقاء نفسها أو بناءً على طلب من إحدى الجهات الحكومية -بعد موافقة الوزارة- التعاقد على توطين صناعة ونقل معرفة وفقاً للضوابط التي تحددها اللائحة.
- Article 36
The article allows the government entity to contract for the best idea and design or other intellectual property rights by way of a competition, as the Implementing Regulations explain.
للجهة الحكومية أن تتعاقد على أفضل فكرة وتصميم، أو غيرها من حقوق الملكية الفكرية، عن طريق أسلوب المسابقة، وفقاً لما توضحه اللائحة.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.