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National Government implements new procurement procedures

Department of Finance and Administration

The National Department of Finance and Administration announces that the Financial Management Regulations have been amended to include a new Procurement Procedure for the Government of the Federated States of Micronesia.

According to the amended Regulations, all National Government purchases of non-construction supplies and materials - less than $25,000 are to be subjected to the new procedures. Under the new procedures, all purchases under $25,000 are to be submitted for compilation by the National Treasury Division for open bidding by local vendors.

It is anticipated that the new procedures will not only improve the use of government funds, but also reduce the administrative time and cost normally related to government procurements. In addition, the new procedures would parallel the requirements as set out in the amended Compact.

The amendment to the Financial Management Regulations went into effect Fiscal-Year 2006, which began October 2005.

For more information, please contact:

National Treasury Division
Department of Finance and Administration
FSM National Government
Palikir, Pohnpei 96941
(691)320-2640
e-mail: fsmsofa@mail.fm