1.0 Definition

Unless the context otherwise requires, the following words and phrases in the Terms of Reference shall have the meaning given below:

“KPJ” means KPJ Healthcare Berhad and/or the respective Subsidiary Companies where KPJ’s own the majority stake, but excluding Associate Companies.

“Procurement” means

1. the award of contract,
2. the appointment of consultants and/or advisors from an outside external source,
3. the purchases of assets,
4. the acquisition and disposal of assets

“Procurement Report” means report regarding procurement matters for evaluation by the TEC and approval by the TBC.

“TEC” means Tender Evaluation Committee.

“TBC” means Tender Board Committee.

“TOR” means Terms of Reference

2.0 Principles, Objectives and Method of Procurement

The principles, objectives and method of procurement to be implemented should be in line with KPJ’s corporate governance, vision, mission and values.

2.1 The Principles of Procurement

• Accountability
• Transparency
• Best value for money
• Just and fair

2.2 The Objectives of Procurement

• Best price for the KPJ without loss to others
• Growth of the KPJ’s Group of Companies
• Effective acquisition and disposal of assets
• A mean to achieve KPJ’s policies

2.3 The Methods of Procurement

• Direct Purchase
• Quotation
• Tender
• Direct Negotiation

This TOR shall be accepted and adopted by KPJ, which carries with it endorsement by the Board of Directors.

3.0 Tender Board Committee (TBC)

3.1 Composition of Member
The Board of Directors shall elect amongst themselves four (4) members to be on the TBC to represent the Board of Directors.

3.2 Secretary
The Secretary of TBC shall be the Company Secretary of the Company

3.3 Meeting
TBC shall meet together for the despatch of business, adjourn and otherwise regulate their meetings subject to the availability of TBC papers for approval.

The Secretary shall, on the request of the members of TBC, summon a meeting. Except in the case of emergency, reasonable notice of every TBC meeting shall be given in writing.

The TBC must cause the Secretary to be prepared minutes of all its meetings proper

3.4 Quorum
Quorum shall be three (3) members.

3.5 Duties and Responsibilities
The TBC shall deliberate and approve the procurement report.

3.6 Coverage
The threshold value of the tender is proposed to be RM5 million and above.

3.7 Decision
Decisions of the TBC are made through unanimous decision. Where any member of the TBC has a direct or indirect interest in any matter, he or she must declare his or her interest in the matter and must not participate in the deliberations or decisionmaking process of the committee in relation to that particular matter.

All decision made by TBC shall be ratified by KPJ Healthcare Berhad and/or the respective Subsidiary Companies that the procurement being accounted for.

4.0 Tender Evaluation Committee (TEC)

4.1 Composition of Member
The Tender Board Committee (TBC) shall appoint five (5) members to be on the TEC which may include senior staff of KPJ and its subsidiary or associate as the case may require.

4.2 Secretary
TEC shall appoint its own Secretary.

4.3 Meeting
TEC shall meet together for the despatch of business, adjourn and otherwise subject to the availability of TEC report for approval.

The TEC must cause the Secretary to be prepared minutes of all its meetings proper.

4.4 Quorum
Quorum shall be three (3) members

4.5 Duties and Responsibilities

The TEC shall evaluate procurement report presented to them and give recommendation to the Tender Board Committee (TBC) for their consideration and approval.

Member of the TEC may or may not concur with the procurement report and members are free to express their recommendation for the consideration of the TBC for a final decision.