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<p><strong>According to NPA* Guidelines / Sri Lanka&nbsp;</strong></p>
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<p>Domestic preference is given to local contractors, to encourage the local contractors.</p>
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<h2 class="wp-block-heading"><strong>Eligibility for Domestic Preference</strong></h2>
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<li>Individual/sole proprietor – shall be Sri Lankan.</li>
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<li>Partnerships - more than 50% owned by Sri Lankan.</li>
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<li>Individual  Firms<!-- wp:list -->
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<li>Shall be registered in Sri Lanka.</li>
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<li>More than 50% are owned by Sri Lankans.</li>
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<li>Should not subcontract more than 10% of the work (excluding Provisional Sums and Contingencies) to foreign contractors.&nbsp;</li>
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<li>Joint Ventures<!-- wp:list -->
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<li>Each constituent firm should satisfy the criteria mentioned for individual firms.</li>
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<li>JV must be registered in Sri Lanka.</li>
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<li>Should not subcontract more than 10% of the work (excluding Provisional Sums and Contingencies) to foreign contractors.</li>
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<h2 class="wp-block-heading"><strong>Application of the Preference</strong></h2>
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<li>Preference can be applied only if it is disclosed in the bidding documents.</li>
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<li>The margin of preference is added to the foreign bidder’s price and not deducted from the domestic bidder’s price.</li>
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<h2 class="wp-block-heading"><strong>Domestic Preference</strong></h2>
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<p><strong>Category I</strong><strong> </strong><strong>- </strong>Bids offered by bidders eligible for domestic preference.</p>
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<p><strong>Category II</strong><strong> </strong><strong>- </strong>Bids offered by others.</p>
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<li>The lowest evaluated in each category is selected first.</li>
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<li>These two are compared.</li>
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<li>If the bid from Category I is the lower one it is the preferred bid.</li>
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<li>If the bid from Category II is the lower one then the Domestic preference percetage (for example 10%) of this bid price is added to it and then compared with the Lowest Bid in Category I.</li>
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<li>Even after this, the bid from Category II is lower, then it is the preferred bid.</li>
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<li>Otherwise the bid from Category I is the preferred one.</li>
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<p>*NPA – National Procurement Agency.</p>
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