In 2018, Abu Dhabi National Oil Company (ADNOC) launched the In-Country Value (ICV) program to increase its ICV contribution through a procurement-led strategy. The initiative focuses on developing UAE nationals, choosing local suppliers, and localizing essential functions for the oil and gas sector. The purpose of this article is to explain all you need to know about the ADNOC-ICV program, including how to obtain ICV certificate in UAE and what benefits you’ll receive from it.
The primary goals of the ADNOC ICV initiative are:
The ADNOC tender procedure requires all providers to get an ICV Certificate from the MoIAT, which stands for the Ministry of Industry and Advanced Technology. Suppliers who have earned the ICV Certificate have proven their dedication to and capacity to aid in the economic and social development of the United Arab Emirates.
The ICV Certification Program offers three tiers of accreditation: Bronze, Silver, and Gold. A supplier’s certification level is determined by how well they contribute to the UAE’s economy, which is determined by the following criteria:
| Area of Consideration | Weightage | |||
|---|---|---|---|---|
| Goods Manufactured/ Third Party Spend | 50% | |||
| Investment | 25% | |||
| Emiratization | 15% | |||
| Expatriate contribution | 10% | |||
| ICV Bonus – Revenue from Outside UAE, Emirati Headcount, and Investment Growth | 5% | |||
| Advanced Technology and Sustainability Bonus | 3-6% | |||
To be certified, suppliers need to reach the minimum score standards for each pillar as well as the total ICV % objectives given by MoIAT.
Suppliers that have obtained an ICV Certificate have many advantages when competing for contracts with ADNOC and its affiliated companies:
In assessing offers from suppliers, ADNOC takes both financial and technical factors into account. A bidder’s ICV score is an independently assessed business metric. During the commercial review, bidders with higher levels of ICV Certification, such as Gold or Silver, benefit more than those with lower levels, such as Bronze, or no certification at all.
For the purpose of technical bid evaluation, ADNOC has included ICV sub-criteria to further encourage suppliers to enhance their ICV contribution over time. Considerations for ICV are included in technical criteria such as “Implementation Methodology” or “Health, Safety, and Environment Plans” in order to evaluate the potential effects of the technological solution on ICV.
Suppliers doing business in the UAE might get an advantage and access more prospects with a better ICV score. To improve their ICV performance, companies may do the following:
FAQs
1. How often does the ICV Certification need renewal?
Answer: The duration of an ICV certification is fourteen months. Suppliers that want to keep bidding on ADNOC contracts must submit another application for recertification before the end of the contract period.
2. Can a supplier’s ICV level be downgraded?
Answer: Yes, upon review, MoIAT retains the authority to lower the ICV Certification level if a supplier’s ICV performance substantially falls below the initial certified level.
3. What are the penalties for non-compliance?
Answer: Penalties for suppliers that do not meet their ICV obligations may include terminating the contract, being placed on a blacklist, and being prohibited from bidding for a certain amount of time. Failure to comply on repeatedly may lead to the cancellation or suspension of ICV Certificate UAE.
In conclusion, suppliers should think about collaborating with expert ICV consulting companies in the UAE if they want to optimize their ICV scores and certification levels. When it comes to ADNOC bids, these specialists can guide you through the regulations, find the gaps, and provide tailored solutions to boost your contributions across all pillars of ICV certification.