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Explain NUPCO's procurement approval hierarchy for contracts over SAR 5M

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Summary

For procurement contracts exceeding SAR 5 million, NUPCO follows a multi-tier approval hierarchy designed to ensure governance and compliance with Saudi government regulations. The approval process involves technical evaluation, financial review, and executive authorization at different thresholds.

Approval Hierarchy

Tier 1: SAR 5M - SAR 20M

• Technical Evaluation Committee approval
• Chief Procurement Officer review
• Finance Director sign-off
• COO final approval
• Timeline: 15-20 business days

Tier 2: SAR 20M - SAR 50M

• All Tier 1 approvals required
• CEO approval mandatory
• Board Procurement Committee notification
• Legal Department review
• Timeline: 25-30 business days

Tier 3: Above SAR 50M

• All Tier 2 approvals required
• Full Board of Directors approval
• Ministry of Health notification
• External audit review may be required
• Timeline: 40-60 business days

Important Notes:

• All contracts require compliance verification regardless of value
• Emergency procurements follow expedited approval process
• Multi-year contracts may require additional Board approval

Source References

NUPCO Procurement Policy Manual

Section 4.2: Approval Authority Matrix

Last updated: December 2025 • Version 3.2

Saudi Government Procurement Regulations

Article 17: Public Entity Approval Thresholds

Royal Decree M/128 • Effective 2019

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