62 Companies Sign PSA Contracts With SIG/MRD To Supply Materials To Constituencies

The Ministry of Rural Development (MRD) has completed the qualification process and recently signed legally binding agreements with 62 private companies under the Solomon Islands Government Preferred Supplier Arrangement (PSA).

The PSA qualifies these Companies to supply materials, equipment, goods and services to the national government through the 50 constituencies.

This signing marks a significant milestone toward the full implementation of the 2025 Constituency Development Funds (CDF) budget; enabling the mobilisation of essential resources for rural development projects and community improvements.

The PSA is a SIG procurement administrative process designed to streamline and fix procurement procedures particularly for commonly procured goods or equipment by engaging legally registered, genuine, and qualified companies to supply goods and services to the government. The goal is to improve efficiency and ensure the delivery of quality services to both the government and the public.

“The PSA contracts are valid for one year, with procurement of goods and services governed by and in compliance with Sections 73 and 74 of the Public Financial Management (PFM) Act 2013 and Section 28 of the Constituency Development Funds (CDF) Act 2023” MRD said in an official statement.

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“The processes will be closely monitored by MRD in collaboration with the Ministry of Finance and Treasury (MoFT) to ensure all procurement procedures under the relevant sections of the PFM Act 2013, SIG Procurement Manual and the CDF Act 2023 are complied with, guaranteeing that quality goods and services are delivered to the constituencies,” the statement added.

It further explained that, to ensure impartiality, the PSA underwent a rigorous selection and evaluation process, including physical site inspections and assessments on suppliers conducted by the MRD Technical Evaluation Committee (TEC). The process also involved scrutiny by the Ministry of Finance (MoFT) and the Central Tender Board (CTB) before contracts were awarded to successful suppliers.

Regarding pricing, MRD secured fixed prices for various items based on prevailing market rates, ensuring value for money and consistent quality of materials purchased by constituencies for development projects.

Price evaluation was conducted exclusively for the 62 qualified companies across the following categories/items:

• Hardware and Building Materials
• Forestry Milling Products
• Marine, Seagoing, and Fishing Equipment
• Plant & Motor Vehicles
• Electrification Supplies
• Plumbing, Water Supply, and Sanitation Equipment
• Communication, Musical, and Sound Equipment
• Sports Equipment and Accessories
• Agriculture and Gardening Equipment
• Tailoring, Embroidery, and Fabric Printing Equipment
• Cookery, Bakery, and Kitchenware
• Retail Goods

The CTB serves as the awarding authority, responsible for the tender awards following the completion of all technical evaluation processes undertaken by MRD. PSA contracts are prepared by MRD, with signatories including Permanent Secretary of the Ministry of Finance and Treasury (Chairman of the CTB), PS MRD (Chairman of the Ministerial Tender Board, MTB), and the suppliers.

The contracts are valid for one year (12 months), with fixed prices throughout the period. The list of the qualified suppliers for the PSA will be published when all contract documentations are finalised soon.

The Tender for the PSA was publicised in October 2024, with 68 companies submitting bids. After thorough evaluation, six companies were disqualified for failing to meet the minimum technical requirements outlined in the tender documentation, including Section VI, Schedule of Requirements. MRD also undertook a quick review of the selling prices of commonly procured goods under the PSA which resulted in some decrease in pricing on some commonly procured goods under the scheme.

Funding for the 2025 PSA is allocated from the MRD/SIG Development Budget.

The SIG support to the Constituency Development Program totals $250 million, which will be equally shared among the 50 constituencies—each receiving $5 million. Of this amount, $3.2 million is allocated and to be processed via the Preferred Suppliers Arrangement, while $1.8 million is provided as grants to the respective constituencies.

Funding utilisation will follow the sectoral allocations stipulated in the CDF Act 2023, Section 26. Specifically, the funding utilisation will be portioned as follows:

• 40% for the Productive & Resources Sector
• 20% for Essential Services
• 20% for Cross-Sectoral, Inclusivity, and Gender initiatives
• 20% for Social and Cultural Obligations

The implementation of the 2025 CDF program continues to progress smoothly.

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