Morocco Proposes Decree to Revise Public Procurement Rules

The Moroccan government is introducing a draft decree aimed at overhauling public procurement regulations, seeking to enhance administrative efficiency and development performance. The proposed amendments to Decree No. 2.22.431 concerning public contracts intend to clarify the roles of all parties involved in the contract awarding process, ensuring greater effectiveness and integrity.

A key focus of the decree is the simplification of procedures for delegated project supervision across various administrative levels. It also seeks to rationalize the use of purchase orders and standard contracts. These changes are designed to foster efficient and transparent management of public finances and optimize the use of public resources. Furthermore, the decree incorporates a significant social dimension by mandating that project cost estimates account for minimum wage requirements and mandatory social contributions, particularly for services like building security and maintenance.

The draft decree also champions regional development by prioritizing local enterprises. It mandates giving preference to companies actively operating within the region where the work is to be executed. This preference extends hierarchically from the local community level to the province, and then to the region associated with the development program. In cases of equal standing among local firms, a lottery system will be used to ensure absolute fairness.

Strategically, the decree shifts the evaluation criteria for financial bids from a "best offer" culture to a "lowest price" approach relative to a reference price. This aims to rationalize state expenditures and meet the expectations of private sector partners in public procurement. It also introduces mechanisms to curb the "price-breaking" phenomenon that can negatively impact the quality of services provided by contractors. The decree encourages competition and facilitates access for very small, small, and medium-sized enterprises, as well as sole proprietors, innovative companies, and cooperatives, by raising financial thresholds for simplified and national tenders and purchase orders, with the latter's ceiling increased to 800,000 dirhams annually.