To allow small businesses access to 20% of government procurement, the National Procurement and Tender Administration Board (NPTAB) has implemented a 5% margin of preference to those businesses that qualify under law.
“What we have done is included in the bidding document that there be a 5% margin of preference advantage to small businesses. So if big businesses bid bigger, because of the economies of scale the small businesses can now compete,” Chairman of the National Procurement and Tender Administration Board, Tarachand Balgobin, told the Sunday Stabroek in an interview last Friday.
“When you award, you are awarding to the lowest responsive bidder. If this other person is not registered and his (bid) is 5% above yours, as a small business, you are deemed to be above him. The law allows for a margin of preference, up to 10%, for small businesses and we have started at 5%,” he explained.