IC wants probe of single-source contracts

Declaring that competition was the exception in the awarding of government contracts last year, Kevon Stephenson, director of investigation at the Integrity Commission, says in 2025, single-source procurement, including emergency contracting, accounted for 69.2 per cent of contracts by number and 27.3 per cent by value.

By contrast, open competitive bidding accounted for 4.1 per cent of contracts by number.

In a special report to Parliament, Stephenson highlighted that single-source procurement has accounted for about two-thirds of contracts in every year since 2017.

Stephenson reported that of the 22,646 contracts recorded as single source last year, 3,052, valued at $51.6 billion, were above the single-source threshold in force on the date of award – being $1.5 million for goods and services and $2 million for works until May 15, 2025, and $3 million and $5 million respectively, thereafter.

Above the threshold, the Public Procurement Act permits single-source procurement only in the circumstances set out in Section 25.

Section 25 of the legislation states, among other things, that a procuring entity may engage in single-source procurement only where “the goods, works or services to be procured are available from a particular supplier or approved unregistered supplier only”.

Also, if a particular supplier has exclusive rights in respect of such goods, works or services, such that no reasonable alternative or substitute exists, and the use of any other method of procurement would not be practicable.

Stephenson said the Quarterly Contract Award Report does not record which of those circumstances set out in the legislation was relied upon and as such the awards cannot be assessed from the returns alone.

“Having regard to the finding that fewer than eight per cent of single source awards relate to requirements for which there is often only one supplier, these awards warrant examination by the appropriate authorities,” he said.

edmond.campbell@gleanerjm.com