There is no doubt that the challenges facing the governments of the world in the field of public procurement were the reason for establishing a system for public procurement, which is meant to be the set of rules and principles that regulate the process of purchasing goods, services, and projects carried out by government entities, with the aim of ensuring transparency and equality, enhancing competition, obtaining the best value for public money, as well as promoting economic development. (1)
Since procurement constitutes a large part of public expenditure in most countries of the world, this prompted the United Nations Commission on International Trade Law to prepare model legislative provisions on the procurement of goods, construction, and services. It prepared the UNCITRAL Model Law on Public Procurement in 1994, (2) with the aim of reforming public procurement systems. This Model Law ensured the incorporation of elements of objectivity, fairness, participation, competition, and integrity, and made transparency a fundamental principle among its principles.
As the 1994 Model Law on Public Procurement was and still is an important international reference in the field of procurement law reform, and in view of the development of economic conditions and modern technological advancement, the United Nations Commission on International Trade Law saw in 2004 that it was necessary to work on updating the 1994 Model Law on Public Procurement so that it would keep pace with new practices, especially those resulting from the use of electronic communications in public procurement. Accordingly, the UNCITRAL Model Law on Public Procurement of 2011 was prepared as an update of the rules set out in the 1994 Law in accordance with the latest legal systems for procurement.
There is no doubt that the UNCITRAL Model Law on Public Procurement of 2011 enjoys great importance, as procurement under its provisions is characterized by involving discretionary decisions taken on behalf of the government, and procurement represents 10–20% of gross domestic product and up to 50% of total government expenditure. It also enables the State to develop procurement in a way that achieves revenue generation and prevents irregularities at the same time, thereby achieving economic development. (3)
Definitions relating to some terms of the 2011 Model Law on Public Procurement
The 2011 Model Law on Public Procurement set out several definitions in Article 2 thereof for the purposes of the Law, and we will limit ourselves to mentioning the most important of them as follows:
- The Model Law defined public procurement as: the acquisition of goods, construction, or services by the procuring entity. (4)
- It also defined domestic procurement as: procurement that is limited to local suppliers or contractors.
- It defined competition as: an invitation to submit tenders or proposals, or to participate in request-for-proposals proceedings or in electronic reverse auctions. (6)
- It also defined solicitation documents as: documents issued by the procuring entity, including any amendments thereto, that set out the terms and conditions of the required procurement. (7)
- It then defined the procurement contract as: the contract concluded between the procuring entity and the supplier or contractor, or suppliers or contractors, at the end of the procurement proceedings. (8)
- It defined an electronic reverse auction as: an online procurement method used by the procuring entity to select the winning bid, and that involves suppliers or contractors submitting successively lowered bids during a specified time period, and the automatic evaluation of bids.
- It also defined pre-qualification as: the proceedings referred to in Article 18 of this Model Law, by which, prior to competition, the suppliers or contractors that are eligible are identified. (9)
- It also defined pre-qualification documents as: the documents issued by the procuring entity pursuant to paragraph (3) of Article 49 of this Model Law, setting out the terms and conditions of the pre-qualification proceedings. (10)
Scope of application of the Model Law
This Law applies to every process by which government entities obtain goods, services, and construction, that is, it applies to every (public procurement process). (11)
But the question that arises is the following: in the event of a conflict between this Model Law and a prior obligation on the State arising from a treaty or international agreement or an internal agreement in the State, which one applies? Article (3) of this Law answered this, stating that in the event of such conflict, the requirements of that treaty or agreement shall prevail, provided that procurement in all other respects remains subject to the provisions of this Model Law. (12)
Rules on the description of the object of procurement
The 2011 Model Law on Public Procurement laid down the rules necessary for describing the object of procurement in Article 10 thereof, as follows:
- As to the rules:
- The pre-qualification documents, where used, shall set out a description of the object of procurement.
- The procuring entity shall in the solicitation documents set out in detail the characteristics of the object of procurement that it will use to examine the tenders submitted, including the minimum requirements that the tenders must meet in order to be considered as complying with the requirements and the manner in which those minimum requirements will be applied.
- Except for any criterion, requirement, or procedure that the procuring entity may impose pursuant to Article (8) of this Law, no description of the object of procurement shall be included or used in the pre-qualification documents, where used, or in the solicitation documents that may have the effect of restricting the participation of suppliers or contractors in the procurement proceedings or their access thereto, including any restriction based on nationality.
- The description of the object of procurement may include specifications, plans, drawings and designs, requirements, tests and test methods, packaging, marking or labeling or conformity certification, and symbols and terminology.
- The description of the object of procurement shall be, to the extent possible in technical terms, objective, functional, and generic, and that description shall set out the relevant technical and performance characteristics of that object. A specific trademark, trade name, patent, design or type, place of origin, producer, or supplier shall not be required, or a reference be made to any of them, except where there is no sufficiently precise or intelligible way of otherwise describing the characteristics of the object of procurement, provided that words such as “or equivalent” are included.
- As to:
- In formulating the description of the object of procurement to be included in the pre-qualification documents, where used, and in the solicitation documents, standardized features, requirements, symbols, and terminology shall be used, where available, in relation to the technical and performance characteristics of the object of procurement.
- The use of standardized commercial terms, where available, shall be taken into account in formulating the terms and conditions of procurement, the terms and conditions of the procurement contract to be concluded as a result of the procurement proceedings, and all other relevant aspects of the pre-qualification documents, where used.
Rules on evaluation criteria and procedures
The evaluation of tenders submitted, and the determination of the winning tender shall be in accordance with the rules and procedures set out in Article (11) of the Model Law on Public Procurement, as follows:
- The evaluation criteria shall be related to the object of procurement, except for those set out in paragraph (3) of Article (11) of the Model Law on Public Procurement.
- The evaluation criteria related to the object of procurement may include the following:
- Price.
- The costs of operating, maintaining, and repairing the goods or construction, the time for delivery of the goods, completion of construction, or provision of services, the characteristics of the object of procurement such as the functional characteristics of the goods or construction and the environmental characteristics of the object of procurement, and the terms of payment for the object of procurement and the guarantees related thereto.
- The experience and professional and managerial competence of the supplier or contractor, as well as the experience, reliability, and competence of the staff who will provide the object of procurement, where such matters are relevant to the procurement carried out pursuant to Articles (47, 49, 50) of this Model Law.
- In addition to the criteria set out in paragraph (2) of this Article, the evaluation criteria may include the following:
- Any criteria whose consideration is authorized or required by the procurement regulations or other provisions of the law of the State.
- A margin of preference in favor of local suppliers or contractors, or in favor of goods produced locally, or any other form of preference, if the procurement regulations or other provisions of the law authorize or require such preference, and the margin of preference shall be calculated in accordance with the procurement regulations.
- All non-price evaluation criteria shall, to the extent possible in technical terms, be objective, quantifiable, and expressed in monetary terms.
- The procuring entity shall indicate in the solicitation documents the following:
- Whether the winning tender will be determined on the basis of price criteria alone or on the basis of both price and non-price criteria.
- All evaluation criteria established in accordance with this Article, including the price as adjusted by any form of preference.
- The relative weight of each evaluation criterion, except in cases where the procurement is carried out pursuant to Article (49) of this Model Law, in which case the procuring entity may set out a list of all evaluation criteria in descending order of importance.
- How those criteria will be applied in the evaluation proceedings.
- In evaluating the tenders submitted and determining the winning tender, the procuring entity shall use only the criteria and procedures set out in the solicitation documents and shall apply those criteria and procedures as disclosed in those documents, and no criterion or procedure shall be used that has not been set out in accordance with this provision.
What were the primary goals for establishing a system for public procurement?
The primary goals for establishing a public procurement system—which consists of the rules and principles regulating how government entities purchase goods, services, and projects—include the following:
- Ensuring Transparency and Equality: Transparency is considered a fundamental principle of the procurement framework. The system is specifically designed to ensure both transparency and equality among those involved in the process.
- Enhancing Competition: A central objective is to foster and enhance competition throughout the procurement proceedings.
- Obtaining Best Value: A major driver for establishing these rules is to ensure that the government obtains the best value for public money.
- Promoting Economic Development: Because procurement represents 10–20% of a country’s gross domestic product and up to 50% of total government expenditure, the system is a vital tool for promoting economic development and achieving revenue generation.
- Incorporating Integrity and Fairness: The system aims to reform procurement by ensuring the incorporation of objectivity, fairness, participation, and integrity.
- Preventing Irregularities: The framework enables the State to manage discretionary decisions taken on behalf of the government in a way that prevents irregularities
Why did the United Nations Commission on International Trade Law decide to update the 1994 Model Law in 2011?
The United Nations Commission on International Trade Law (UNCITRAL) decided to update the 1994 Model Law in 2011 for several key reasons:
- Technological Advancement: There was a critical need to keep pace with modern technological advancement, specifically the widespread adoption of electronic communications in the procurement process.
- New Procurement Practices: The update allowed the law to incorporate new practices that had emerged since 1994, such as electronic reverse auctions, which are online methods where suppliers submit successively lower bids in real-time.
- Economic Changes: The Commission recognized that evolving economic conditions required a more modern legal framework.
- Alignment with Modern Systems: The 2011 Model Law was prepared to ensure that the rules governing public procurement were in accordance with the latest legal systems globally.
While the 1994 version remained an important reference for reform, these updates were necessary to ensure the framework remained a relevant and effective tool for governments to achieve transparency, competition, and the best value for public money in a digital age.
What criteria, other than price, can a procuring entity use to evaluate tenders?
In addition to price, a procuring entity can utilize a variety of other criteria to evaluate tenders, provided they are related to the object of procurement or authorized by law. According to the 2011 Model Law, these criteria include:
- Technical and Operational Criteria
- Life-Cycle Costs: This includes the costs associated with operating, maintaining, and repairing the goods or construction.
- Timeframes: The specific time required for the delivery of goods, the completion of construction, or the provision of services.
- Functional and Environmental Characteristics: Entities may evaluate the functional performance of the goods or construction, as well as their environmental impact.
- Financial Terms: This covers the terms of payment and any guarantees offered regarding the object of procurement.
- Supplier Competence and Experience
When relevant to the specific procurement proceedings, the entity can evaluate:- The professional and managerial competence and experience of the supplier or contractor.
- The reliability, experience, and competence of the specific staff who will be responsible for providing the object of procurement.
- Legal and Regulatory Preferences
- Margins of Preference: If authorized by the state’s procurement regulations, an entity may apply a margin of preference in favor of local suppliers or goods produced locally.
- State-Authorized Criteria: Any other criteria specifically authorized or required by the procurement regulations or other laws of the State.
- Application Standards
To ensure fairness and transparency, the Model Law requires that all non-price evaluation criteria be objective, quantifiable, and expressed in monetary terms to the extent possible. Furthermore, the procuring entity must disclose all criteria, their relative weight, and the manner of their application in the solicitation documents beforehand.
Overview of the UNCITRAL Model Law on Public Procurement
The text outlines the UNCITRAL Model Law on Public Procurement, a framework designed to help governments manage public spending through fairness, transparency, and competition. Originally established in 1994, the law was significantly updated in 2011 to integrate modern technological advancements and electronic communication methods. These regulations aim to maximize the value of public funds while supporting economic growth and preventing administrative irregularities. Detailed definitions are provided for key industry terms, including electronic reverse auctions and pre-qualification procedures, to ensure international legal consistency. Furthermore, the text dictates strict rules for describing procurement objects and establishing objective evaluation criteria to prevent discriminatory practices. Ultimately, this framework serves as a vital international reference for nations seeking to reform their legislative systems regarding the acquisition of goods and services.
Sources:
- General Guide to Public Contracts for the Online Public Procurement System “TUNEPS”, published on the Raqabah Observatory website (raqabah.org), date of access: 21/9/2025, at five o’clock.
- United Nations resolution adopting the Commission’s Model Law on Public Procurement issued on 9/12/1994, published on the Document Viewer website, date of access: 21/9/2025, at five o’clock.
- Preamble of the UNCITRAL Model Law on Public Procurement of 2011 issued by the United Nations Commission on International Trade Law, published online: UNCITRAL Model Law on Public Procurement (2011) | United Nations Commission on International Trade Law, date of access: 21/9/2025, at five o’clock.
- Article (2)(c) of the UNCITRAL Model Law on Public Procurement of 2011 translated into Arabic.
- Article (2)(d) of the same Model Law.
- Article (2)(f) of the same Law.
- Article (2)(sh) of the same Model Law.
- Article (2)(m) of the same Law.
- Article (2)(h) of the same Model Law.
- Article (2)(r) of the same Law.
- Article 1 of the same Model Law.
- Article 3 of the same Law.