Issued pursuant to the Board of Directors of the Social Security Corporation (SSC) decision No. 62/2006 on 11.05.2006

Article (1):
These instructions are called "The Executive Instructions of SSIU Supplies for the Year 2006" and should come into force as of the date of adopting them by the Social Security Corporation Board of Directors.

Article (2):
The following words and phrases, wherever mentioned hereinafter, should have the meanings herein below unless otherwise indicated in the context:

Article (3):
The Department should exercise the following duties and authorities:
A- Draw up the plans needed for providing SSIU supplies and determine the means of implementing such plans.
B- Buy the supplies according to the provisions of these instructions.
C- Keep and store the supplies in the warehouses, as well as maintain and computerize them and follow up-to-
   date methods for achieving those tasks.
D- Develop the Supplies Department including the adoption of standard specifications for the supplies,
    particularly those used frequently.
E- Organize the supplies records.
F- Announce the tenders for providing and following up the supplies and invite bids either by traditional
    methods or by online dealing (electronically).
G- Follow up the implementation of the decisions taken by the different committees formed according to the 
    provisions of these instructions.

Article (4)
A- Supplies should be bought according to a purchase order submitted to the Department and should include 
    their quantities and an adequate statement of their specifications. 
B- The purchase order should be submitted early enough to complete the purchase and supply process. Any 
    request described as urgent should be disregarded unless approved by the Chairman.
C- The approval of the purchase order should be according to the authorities stipulated in these instructions.

Article (5)
A- The principle of competition should be applied to all of the purchase processes, as far as possible, in order to 
    obtain the best supplies in terms of quality, price, and conditions, taking into consideration the contractor’s 
    ability to carry out his obligations to providing supplies according to the conditions and specifications within
    the period specified for supply.
B- Identical supplies to be bought should not be divided into multiple transactions

Article (6):
If the specifications, quality, standards and other conditions of the supplies offered were all the same, the competent buyer should consider the following:
A- Preference should be given to the supplies produced in the Kingdom provided that their prices should be 
    calculated on the basis of the price preferential difference determined by the Council of Ministers.
B- Preference should be given to the supplies offered by the bidder permanently residing in the Kingdom in
    case of equal prices.

Article (7):
A- The Commission may purchase the supplies directly from outside the Kingdom in either of the following two  
    cases:
1- If the supplies to be purchased are not available in the Kingdom and could not be purchased through  
   correspondence.
2- If the Committee has recommended that purchasing such supplies directly from outside the Kingdom would
    be beneficial for SSIU in terms of cost, quality and quickness of supply.
 
B- In case of the Commission’s approval for purchasing the supplies from outside the Kingdom, the Chairman 
    should delegate one or more employee(s) to travel outside the Kingdom to purchase the supplies in either
    one of the two cases indicated in both items (1) and (2) of Paragraph (a) of this Article provided that the 
    authorized buyer’s approval to that effect has been obtained according to the provisions of these
    instructions. 

Article (8):
Subject to the authorized buyer’s approval, the Department may replace used supplies with other new or used supplies according to a report prepared by a committee formed by the Chairman for this purpose provided that a fair price should be determined for the exchanged supplies to the best interest of SSIU.

Article (9):
Considering the authority for purchasing supplies according to the provisions of these instructions, the purchasing process should be carried out by announcing a tender; but supplies may be purchased in either of the following two methods:

A. Inviting bids in any of the following cases:

1. In case of an urgent and emergency need for the requested supplies and that does not permit announcing a tender.

2. If there is no more than three sellers, producers, or suppliers of the supplies to be purchased.

3. If the value of the supplies to be purchased does not exceed 20,000 JD (twenty thousand Dinars).

4. If an inadequate or inappropriate number of bids were offered for the tender announced, and the authority who announced the tenders was convinced that the necessity requires to buy the supplies through inviting bids.

5. If the Chairman found, according to the Committee’s recommendation, that it was necessary to attract bids from certain parties for reasons related to professional efficiency or specialty.

B. Purchasing supplies directly through negotiation with their sellers producers or suppliers in any of the
    following cases:

1. If the prices of the supplies to be bought were specified by the official authorities or were of prices internationally determined.

2. If the supplies are required to fulfill an emergency case that does not permit announcement a tender or inviting a bid.

3. If the supplies can be provided from one source only.

4. If the supplies are spare parts, appendages or tools that are not available in more than one source with the same degree of efficiency according to a technical report by the specialists and experts in SSIU.

5. If the purpose of purchasing the supplies was to unify the brands or minimize the diversification of equipments in order to provide acquisition of spare parts, or to consider the professional expertise available for using or maintaining such supplies.

6. Buying services that include maintenance, repair, replacement, or testing without knowing the volume of the work at the time of buying.

7. Buying hospitality services and their materials that are needed for SSIU works.

8. If the tender was announced or bids were invited, but no proper bids could be obtained out of them, or the prices were unreasonable, or when the full quantity of supplies to be bought could not be obtained from the same supplier on time.

9. If the supplies were scientific materials such as computer programs, radio, and television programs, publications, films and items alike.

10. If the supplies were directly purchased as an implementation of a legal provision or an international agreement.

11. If the value of the supplies to be purchased did not exceed 3000 JD (three thousand Dinars).

Purchase Authorities

Article (10):
Supplies should be purchased according to the following authorities of the:
 
A. Chairman:
1. Buying supplies which value does not exceed 3000 JD (three thousand Dinars) in each buying process in
    a way he deems appropriate. 
2. Buying supplies which value does not exceed 50000 JD (fifty thousand Dinars) in each buying process
    througha Tenders Committee composed of five employees from SSIU, and formed by the Chairman
    and headed by the employee with the highest grade or seniority, provided that the Committee
    should be re-formed by other members every two years at most. The Committee’s meeting should
    be legal if attended by at least four members, provided that its Chairman is one of them. The
    Committee should take its decisions on the basis of, at least, the majority of the votes of its
    attending members.
3. The Committee’s decisions stipulated in item (2) of Paragraph (a) of this Article should be subject to the 
    Chairman’s approval.
4. Buying the specialized scientific, cultural, technical, and professional rights and services, and the
    consultations, including courses, preparation and printing of the research, studies, reports and similar
    items, whether the buying was from institutions or from individuals.

B. Director:
1. Purchasing supplies which value does not exceed 500 JD (five hundred Dinars) in each buying process in
    a way he deems appropriate.
2. Purchasing supplies which value does not exceed 10,000 JD (ten thousand Dinars) in each buying process 
    through a purchase committee composed of three employees from SSIU, formed by the Chairman and
    headed by the employee with the highest grade or seniority provided that the committee should be
    re-formed annually at most; and it should set forth its recommendations unanimously.
 
C. The Chairman should name a rapporteur or more for any committee from SSIU staff.
 
D. Subject to the contents of these instructions, supplies which value exceeds 50,000 JD (fifty thousand
    Dinars) may be purchased only through the Central Tenders Committee formed in accordance
    with the provisions of these instructions.

Article (11):
A- The Commission should form a committee called the “Central Tenders Committee” which should be
    re-formed every two years at most, and headed by the Chairman and the membership of:
1- Two Commission members.
2- Two SSIU employees upon the recommendation of the Chairman.
 
B- This Committee should exercise the tasks and authorities stipulated in these instructions and the decisions 
    issued hereby.

C- The Committee should meet at the invitation of its Chairman for considering the matters on its agenda, and
    its meeting would be legal if attended by at least four of its members, provided that the Committee
    Chairman is one of them. 

D- The Committee decisions should be issued unanimously or according to majority vote of the present
    members provided that they should be at least three members, and should not abstain from voting.
    The member who votes against should indicate the reasons.

E- The Chairman should appoint one of SSIU employees as the Committee rapporteur, and should define his 
    duties.

Article (12):
A- Subject to the approval of the Chairman, the committees formed according to the provisions of these 
    instructions may seek the assistance of experts and specialized technicians either from SSIU or from outside
    for benefiting from their expertise in considering the tenders offers submitted to it, or for checking
    the supplies before they are provided to SSIU.

B- The Chairman may grant the experts and technicians as well as the Technical Committee members who are
    not SSIU employees, financial rewards commensurate with the work they do, upon a recommendation by
    the committee which assigned them.

Article (13):
A-Tender procedures, terms of participating therein, methods of studying the bids, awarding, responsibilities
   and obligations of the bidders and contractors in case of their failure to comply with their offers or
   implement the awarding contracts concluded with them according to decisions issued by the Chairman.

B-Transactions executed by electronic means, in announcing tenders and bids, inviting bids, and any purchase 
   transaction through adopting an electronic market for the approved purchases for SSIU, provided that this 
   market should provide all the means and advantages that conform with the approved procurement
   instructions. It should also provide the necessary safety and confidentiality including the electronic
   tender boxes. All the communications and correspondence in this regard should be approved in
   addition to adopting the awarding through this market.

C-Bidders and contractors should commit to submit a bid bond by a percentage not less than 5% of the value
   of the supplies mentioned in their bid along with a performance and maintenance bond by a percentage
   not less than 10% of the total value of supplies.

Article (14):
The Chairman should announce the tender and determine a price for the tender invitation that commensurates with the expenses for preparing the invitation and the documents thereto along with the estimated tender value. However, the invitation may be distributed free of charge.

Article (15):
The Chairman, or his authorized representative, should sign the contracts concluded with the contractors pursuant to the provisions of these instructions.

Article (16):
The supplies contracted on should be provided in the name of SSIU whether they are provided from inside or outside the Kingdom.

Article (17):
A- The final awarding should be submitted to the bidder whose bid complies with the general and special 
    provisions indicated in the tender invitation and is the best in terms of quality, prices, delivery on the time 
    specified, and the availability of financial,commercial and technical, capability. But in case quality and prices
    were the same, the award may be divided between the bidders according to the conditions of securing
    the materials and supplies and the estimation of the authorized decision-maker.

B- If the Committee found that the bid with the cheapest price does not serve the interest of SSIU for
    reasons estimated by the Committee in terms of quality or the bidder's financial, commercial, and
    technical capability, the bidder with the most appropriate bid will be awarded the tender with the necessity
    to explain the reason for this awarding and to negotiate with him, lowering his prices, if possible.

C- The Committee may re-announce the tender if it finds that the bids prices received were high or, for any
    other reasons it deemed to serve the best interest of SSIU.

D- If there was a need to obtain additional supplies in excess of what is required in the tender invitation, the 
    authority empowered to award the the tender is entitled to approve to that provided that such excess
    value of supplies should not exceed 25% of the original tender’s value.

Article (18):
In case the bidder, who had won the final awarding, abstained to execute the tender or delayed in providing the supplies or services on time, failed to provide a quantity of the original tender, could not supply any quantity on time, or if one of the contractors proved to have provided SSIU with supplies, or performed services by cheating, the authority which has awarded the tender may take one of the following actions:
A- Confiscate the bank guarantee or any portion thereof and credit the confiscated amounts as a revenue in
    favor of SSIU account.

B- Buy the supplies from the trade markets according to the current prices and charge the price difference to
    the abstaining bidder.

C- Abide the bidder with the price offer next to that of the abstaining bidder with providing the supplies
    required or re-announcing the tender and charge any difference in the price increase to the abstaining
    bidder. d- Make the abstaining bidder abdie by compensating for any consequent loss or harm
    SSIU has suffered.

D- Deprive the abstaining bidder from participating in SSIU tenders for the period it deems appropriate.

Receiving and Entering Supplies Article

Article (19):
A- The department should undertake receiving the supplies already bought if their value does not exceed 1000     JD (one thousand Dinars).

B- The Chairman should form a committee, to receive the supplies, composed of at least three employees with 
    expertise in this field to be entrusted with the task of accepting the supplies which have been delivered to 
    SSIU by the contractors and which value exceed 1000 JD (one thousand Dinars).

C- 1- Subject to the Chairman’s approval, the Committee may seek the assistance of the technicians or experts 
    from outside SSIU if necessary.
2- Subject to the Committee’s recommendation, the Chairman may grant financial rewards to the experts and 
    technicians referred to in item (1) of this paragraph.

D- The Committee receiving the supplies should do the following:
1- Check the purchases immediately upon arrival to insure their number, quantity, quality, and compliance with 
    the specifications and conditions.
2- Prepare minutes of the received supplies indicating their type, descriptions, quantities, and their number,
    along with any relevant comments. The minutes should be signed by all the members of this Committee.

E- If a dispute arise between the members of the Receiving Committee, the matter should be submitted to
    the Chairman for taking a final decision in this regard.

F- In case the supplies Receiving Committee has decided to reject receiving the delivered supplies that do not 
   comply with the specifications and contract conditions, the contractor who delivered such supplies may
   object to the Committee’s decision within a period of time not exceeding ten days from the date
   the contractor had received the minutes through the authority which issued the purchase decision.
   The Committee’s decision to accept or refuse (the supplies) should be final, and the refused supplies should
    be considered as a trust.

G- The contractor should remove the supplies already rejected at his own expense within a maximum period of 
    fifteen days from the date of notifying him by the necessity of removing them from the place where they
    are, except in case of health or security necessities, supplies should be removed or destroyed before
    this period. In case of delay in doing so, the contractor should be considered waiving these items in favor
    of SSIU, whereas SSUI may charge him with removing or destroying expenses if necessary.

H- Supplies in the form of aids and grants should be received through matching them with the shipping
    documents or invoices or any other document indicating the supplies’ specifications, quantities, and number
    as well as showing any difference in terms of quality and quantity from the specifications and conditions  
    stipulated in the agreement, invoices or shipping documents. Such supplies should be duly entered into
    the records.

Article (20):
The authorities delivering supplies or extending services should submit an original invoice duly signed.

Article (21):
All SSIU supplies bought should be labled immediately upon receipt with a special mark, and should also be numbered in a manner which makes it difficult to change any of them, provided that these supplies should be identified according to decisions issued by the Chairman.

Article (22):
A- Supplies should be entered into the warehouse records once they have been received by the Receiving 
    Committee or the Department provided that it should be supported by the following documents:
1- Entry documents.
2- Receiving Committee minutes.
3- Awarding decision or purchase order.
4- Invoice or bill of lading.
 
B- Supplies should be stored in special warehouses in an orderly manner so that they are ready for delivery
    upon request, taking into consideration their usability period and the nature of each type of the supplies at
    the time of storing them in these warehouses.

Records and Registries

Article (23):
Both of the Department and the warehouses should retain the supplies records and cards, and may adopt the automated systems or the systems related to electronic dealings and any other devices they might find suitable for regulating, controlling, and distributing the movement of each type of the supplies, and retaining the soundness and accuracy of the relevant information.

Article (24):
The warehouseman at SSIU pledges to do the following:
A- Submit a notary warranty according to the employee warranty regulation in force.

B- Prepare periodical reports on the position of the supplies under his custody at least once a year provided
    that the reports should be supported by lists which include unusable, surplus, deficient, and stagnant
    supplies.

Article (25):
A- The employee who has any supplies under his custody should be fined an amount not less than the value of 
     the deficiency or damage as a result of negligence, and the proper actions should be taken against him.

B- In case of forgery in records, embezzlement or shortage in the warehouse assets, the party which discovers 
    such case should notify the Director who in turn should inform the Chairman for taking the necessary actions 
    for the investigation and formation of the necessary committees.

Article (26):
A- Scratching, erasing, altering, or scraping in the records, documents, and cards related to the supplies should
    be prohibited. Any error should be clearly corrected in red ink and duly signed by the person who did such  
    correction.

B- In case of using automated or electronic systems, all the necessary and approved criteria should be used for 
    keeping the data and inputs.

Supplies Maintenance and Conservation

Article (27):
The department should take the necessary measures towards the conservation and maintenance of the supplies.

Article (28):
SSIU may conclude agreements for maintenance of the supplies with their supplier, and if this cannot be done, competent technicians should be contracted for maintenance of the supplies.

Article (29):
The employee should be responsible for conserving the supplies in his custody, using them with care and promptly report any impairment or damage in them for maintenance or repair without any delay. The employee should also inform the relevant authority once any supplies were lost.

Selling, Destroying, and Scrapping of Supplies

Article (30):
Supplies should be sold according to a recommendation of a technical committee of three employees, formed by the Chairman, in any of the following cases:
A- If they are surplus.
B- If they are damaged and unusable.
C- If they are going to be replaced by new or used equipment of a better production.

Article (31):
Subject to the Chairman’s approval, the committee should sell the supplies by auction sale.

Article (32):
Supplies which are unusable or cannot be sold should be destroyed according to the following conditions and procedures:
A- The department should prepare a list of the supplies to be destroyed indicating their type, purchase date, 
    current purchase, book and estimated values, and a description of their condition and the reason for 
    destroying them.

B- The Committee provided for in Article (30) of these instructions should examine the supplies to be
    destroyed before starting to destroy them, and should prepare a report thereon indicating that the
    supplies had become useless and could not be sold. The report should be submitted to the Chairman
    for obtaining his prior approval of the destruction. 

Article (33):
In case of selling or destroying any supplies which are unusable or are surplus, their discharge vouchers should be based on a document confirming their sale or destruction as appropriate.

Article (34):
Sold supplies should be delivered to the buyer after receiving their price according to a prepared regular discharge document showing the document number, date, and value whereby the price has been received.

Article (35):
Any loss or deficiency in the supplies should be deleted, if it had not resulted from negligence or embezzlement, according to a decision taken by the Chairman.
‌

Article (36):
A- Scrapping requests should be reinforced through a detailed report indicating the reasons for the scrapping 
    resulting from usage, expiration of validity, or any other reason.  

B- The Chairman may scrap the supplies which value had been included within the cause of loss, and the receipt 
    number, date, and value should be noted on the scrapping document.

Article (37):
If the Chairman was convinced that the invalid or surplus supplies not needed by SSIU are not useful for selling or that the expenses for selling them exceed the price that can be obtained, he may decide to duly dispose of or destroy such supplies and delete them from the records through a tripartite committee which he forms to check the supplies and make sure that they have become unusable or unfit for selling.

Dispensing the Supplies

Article (38):
Dispensing the supplies should be carried out according to dispensation orders signed by the authorized employee using the forms adopted for this purpose through either traditional methods, automated systems or electronic dealing.

Article (39):
Supplies should be delivered by the Warehouse to the applier according to a discharge document duly signed by the warehouseman and the one who received them.

Lending and Gifts

Article (40):
The Chairman may lend any supplies to any party in need of such supplies, provided that this should be entered in the supplies records

Article (41):
The Chairman may give any supplies, whose estimated value is no more than 2000 JD (two thousand Dinars), as gifts, but if the value of the supplies to be given as gifts exceeds this amount, the Commission’s approval has to be obtained at the discretion of the Chairman based on a recommendation by the committee which the Chairman has formed for this purpose. In any case, SSIU supplies should not be given as gifts except to the ministries, government departments, official public institutions, charitable associations, sports clubs, cultural organizations, and SSIU's official guests.

General Provisions

Article (42):
The Chairman should determine the records and forms related to supplies and organize their management.

Article (43):
The Internal Auditing and Control Department should take a full inventory of SSIU warehouse assets.

Article (44)
The Chairman may form a committee for taking inventory of the SSIU assets annually.

Article (45)
‌A- The Chairman may authorize any of his powers stipulated in these instructions to any of SSIU employee(s).
B- As a condition, authorizing the powers stipulated in this Article should be in writing and specific.

Article (46)
The provisions of supplies regulation in effect should be applicable to the ministries and government departments along with the instructions issued pursuant thereto in cases other than those provided for in these instructions. In order to achieve this objective, the Commission exercises the authorities of the Council of Ministers and the Prime Minister, and the Chairman exercises the authorities of the Minister and the Competent Minister.

Article (47):
According to the Chairman’s recommendation, the Commission should issue the decisions needed for implementing the provisions of these instructions.