Free Quotation Generator (Somalia)

A quotation has formal weight in public buying. Article 88 of the Public Procurement, Concessions and Disposal Act (23 November 2015) allows a request for quotations when the estimated value is under the regulatory threshold. The buyer must ask at least three qualified bidders, using a simplified document that states the goods or works, delivery time, deadline and award criteria. Each bidder submits one price, in writing or electronically, cannot change it or negotiate, and the lowest-priced quotation that meets the need wins.

The Ministry of Finance's Procurement Manual (section 7.5) sets shopping for estimated values below USD 2,000 for goods and services and below USD 10,000 for works; national competitive bidding below USD 100,000 for goods, USD 40,000 for services and USD 200,000 for works; and international bidding above those levels. Bidders normally get 7 to 14 days to quote (section 7.1). The Manual dates from 2016, and the Ministry also lists a Procurement Act 2020, so confirm current limits with the buyer.

Once a quote is accepted, tax rules apply. Under Article 51 of the Revenue Administration Regulation, any contract awarding entity, public or private, must ask the contractor for an invoice showing sales tax, withhold 5% of the amount paid and remit it within 24 hours; a buyer that fails is charged 10 times the tax (Article 53). The awarding entity must report each contract to the Ministry within two weeks with a certified copy (Article 54). The Revenue Directorate also lists registration tax of 3% on agreements and projects.