ALCC Appeals Boakai: Public Procurement Barriers for Liberia Firms

• The Association of Liberian Construction Contractors (ALCC) has appealed to President Joseph Boakai regarding significant barriers preventing qualified Liberian-owned firms from securing government contracts.
• ALCC President Kimberly K. Toure highlighted substantial financial burdens, including a documented US$2,202.50 in registration and certification fees for one company, without guaranteed contract access.
• The association advocates for stronger implementation of domestic preference measures, proportionate qualification requirements, and greater transparency in Liberia's public procurement process.
• ALCC asserts that strengthening local businesses through public works contracts would foster economic growth, create jobs, and retain economic activity within Liberia.
• The appeal underscores that the ALCC seeks fair competition for qualified Liberian companies, not a lowering of procurement standards.

The Association of Liberian Construction Contractors emphasized that qualified Liberian-owned firms deserve a transparent and meaningful opportunity to compete for public contracts, rather than seeking reduced procurement standards.

The Association of Liberian Construction Contractors (ALCC) has formally appealed to President Joseph Nyuma Boakai, urging his intervention regarding significant obstacles that prevent qualified Liberian-owned companies from securing government contracts. In a letter dated September 21, ALCC President Kimberly K. Toure articulated that numerous local contractors possess the requisite experience, personnel, equipment, and financial capacity to undertake public works projects, yet they consistently struggle to gain meaningful access to these government-funded opportunities.

Toure acknowledged the vital contributions of foreign investors and international contractors to Liberia's infrastructure development. However, she underscored the importance of leveraging public investment to simultaneously bolster domestic businesses and generate employment within the country. The ALCC's position is that Liberia's public infrastructure program should actively cultivate substantial opportunities for qualified Liberian enterprises to expand, employ Liberian citizens, enhance technical capabilities, and retain a larger share of economic activity domestically.

A primary concern highlighted by the ALCC is the substantial financial outlay local companies incur to maintain compliance with government regulations, often without any assurance of ultimately securing contracts. The association provided specific figures from one Liberian-owned construction firm, which documented US$2,202.50 in expenses solely for registration and certification. This amount included US$50 for a Liberia Business Registry certificate, US$150 for Articles of Incorporation, US$1,400 for Ministry of Public Works CCCS certificates, US$102.50 for a NASSCORP certificate, and US$500 for PPCC vendor registration.

Ms. Toure clarified that these figures represent only a fraction of the total financial commitment required for a locally owned company to remain compliant and competitive, excluding additional operational costs such as transportation, salaries, equipment maintenance, and bid preparation. Despite these considerable investments, the ALCC noted that mere compliance does not guarantee access to government projects, emphasizing that qualified Liberian firms must be afforded a fair and meaningful chance to participate in the public procurement process.

The ALCC is not advocating for a reduction in procurement standards or for contracts to be awarded to unqualified companies. Instead, the association seeks a transparent opportunity for Liberian-owned firms that can demonstrate technical competence, financial capability, and a strong performance record to compete for public contracts. To achieve this, the ALCC called for more robust implementation of existing domestic preference and reservation measures within public procurement.

Specific recommendations include a government review of the participation and success rates of Liberian-owned construction companies, encompassing contract values, qualification requirements, evaluation outcomes, and the application of domestic preference provisions. The ALCC also proposed that requirements related to experience, turnover, bid-security, and equipment should be proportionate to the specific size and complexity of individual projects. Furthermore, it suggested that larger projects could be divided into smaller, manageable lots to enable qualified local contractors to compete effectively. The association also pressed for enhanced transparency in procurement, advocating for easier access to procurement plans, bidding opportunities, evaluation criteria, and contract award notices, alongside meaningful explanations for unsuccessful bidders.

The ALCC underscored that restricted access to public construction contracts carries broader economic ramifications for Liberia. The construction sector is a significant employer, providing livelihoods for a diverse range of professionals and skilled workers, including engineers, architects, surveyors, masons, carpenters, electricians, plumbers, and equipment operators. Beyond direct employment, construction projects stimulate economic activity across various ancillary sectors.

These projects generate business for suppliers of materials, transport operators, workshops providing maintenance and repairs, and other small enterprises throughout the economy. By strengthening the participation of Liberian-owned firms in public works, the ALCC argues, the government can foster a more robust domestic economy, create sustainable jobs, and ensure that a greater share of public investment circulates within the country.

Lawyers advising construction companies or involved in public procurement in Liberia should monitor the government's response to this appeal. It signals potential policy shifts towards stronger domestic preference, increased transparency, or adjustments to qualification requirements, which could impact bidding strategies and compliance obligations for clients seeking government contracts.

Source: Reporting based on a recent appeal from the Association of Liberian Construction Contractors.