Page 1 of 29

PUBLIC PROCUREMENT – PROFESSINAL LEVEL IV

(Topics: Competitive Bidding, advertisement and methods of procurement)

The fundamental policies of public procurement on: best use of public funds taking into
account honestly and fairness.
In implement the above policies public officers and members of tender boards are required to
observe the following principles:
(i) Economy and efficiency
(ii) Equal opportunity
(iii) Equity- encouragement of local suppliers
(iv) Integrity, accountability, fairness and transparency.

Most of stated principles can be attained through properly administered competitive tendering.

Competitive bidding
Definition
“Competitive tendering or tendering “Means the method of procurement of goods, works or
disposal of public asset whereby suppliers, service providers contractors or asset buyers are
invited by procuring entity to compete with each other in submitting priced tender for supply
of goods, provision of services, execution of works or acquisition of assets.

In accordance with S. 43 of PPA 2004 tender boards and procuring entities in execution of their
duties are required to achieve highest standards of equity, taking into account: equality,
fairness and need to obtain best value for money.

Sec.58 (2) of PPA 2004 requires application of basic principles for procurement and disposal:
maximize competition, achieve economy, efficiency, transparency and value for money.
Sec.59 stipulates that procuring entities in procurement requirements shall apply competitive
tendering methods prescribed in Regulations depending on type and value of procurement
with exception:
 Suppliers have been pre- qualified
1|prepared and compiled by: Sadru Mustafa kajuna, p.o.box 695,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 2 of 29

 Urgency
 Need to achieve social objective- e.g. Local community participation
Section 60 of the Public Procurement Act No.21 of 2004 states that a procuring entity wishing to
commence competitive tendering shall provide all eligible prospective suppliers or contractors’
timely adequate notification of requirement.

Why Competitive Tendering?

1. To abide with the PPA S. 59
2. To maximize competition
3. Achieve economy
4. Efficiency, transparency and value for money
5. Competitive bidders actuate and timely notification
Gives equal opportunity for eligible suppliers to compete for required goods and services
Invitation to tender and advertising
- Competitive tendering requires the following issues to be fulfilled:
1) Invitation to tender shall be made in writing. The bidding documents must be fair, non-
restrictive, clear and comprehensive. The bidding documents and technical specification
relating to the project should clearly describe the criteria and methodology for
evaluation of bids and selection of successful bidder.

2) Prepare tender notice inviting suppliers, contractors, service providers or asset buyers of
goods, undertaking works or provision of services or for buying assets disposed off.

3) The draft text for invitation for tender must be tabled to the respective tender board for
comment and approval.

4) Invitations which are issued prior Tender Board approval are considered to be null and
raid.

2|prepared and compiled by: Sadru Mustafa kajuna, p.o.box 695,

b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 3 of 29

5) Advertise the approved tender notice at least twice in one or more Newspapers of
National Circulation. For International tendering the notice published in international
publication or professional trade formal.

6) Sufficient time for tender notice will be the same or immediately thereafter. The place
for opening bids must be shown clearly in the tender notice and tendering documents.

Advertisements
Type of advertisements
- Specific Procurement Notice (SPN)
- General Procurement Notice (GPN)
Timely notification of procurement opportunities for goods, works and consulting services is
essential for economic and efficient project execution and it is the basis for eliciting maximum
competition with fair opportunities for all eligible potential bidders.

GPN - Contains advance information on major procurement packages to be procured by

procuring entity. The information is intended to alert suppliers, Contractors service providers’
procurement opportunities.

Information to be included in GPN

(a) Name of procuring entity
(b) Estimated amount of bid
(c) Scope of procurement
(d) If known the schedule dates for availability of the bidding document.
- Prior to issuing the GPN must be approved by respective tender board

GENERAL PROCUREMENT NOTICE (GPN)

3|prepared and compiled by: Sadru Mustafa kajuna, p.o.box 695,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 4 of 29

Procurement Plan for Works, in the Financial year:

1.0 The Government of the United Republic of Tanzania has set aside funds
for the operations of the PE during the financial year :

2.0 The PE are now issuing the General Procurement Notice in accordance with the
requirement of Public Procurement Act 2004 and related Regulations for the purpose of
informing bidders,
and the general public tender opportunities during the financial year:

3.0 Potential bidders desiring additional information on the procurement of works should
contact the Director General, PE
, Millennium Towers, P.O. Box 89 Dar es Salaam. From 7.30 am to 3.30 pm. Monday to
Friday
inclusive except Public Holidays

Further to this publication of the General Procurement Notice, subsequent announcement of specific
tenders will be advertised in the local newspapers and website:

Description Tender L Procu PRE-QUALIFICATION Invitation for Bids and contract signature
No. ot reme
N nt
O Meth Invitation Closing- Notificatio Bid Bid Notificatio Award
od Date Opening n of Invitatio Closing- n of Notification
Applicants n Date Opening Award Date

1 2 3 4 5 6 7 8 9 10 11

4|prepared and compiled by: Sadru Mustafa kajuna, p.o.box 695,

b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 5 of 29

Specific Procurement Notice (SPN)

Specific Procurement Notices are issued either as public invitation for prequalification or
invitation for bids.
- SPN provides adequate notification of specific contract opportunities or invitation for
bids.
SPN should be issued in the following way:
 As an advertisement in at least one newspaper of general circulation
 Official gazette
 Direct notification of all firms which have express interested in the procurement in response
to GPN.
Sample of Specific Procurement Notice (SPN)
[Insert Name of Procuring Entity]

[Insert Logo]

Tender No. …………………….

For

[Insert title or brief description of the goods]

Invitation for Tenders

Date: ………………..

1. This Invitation for Tenders follows the General Procurement Notice for this Project which
appeared in [insert media] Issue no. [Insert the issue No] dated [insert dates of issue of GPN].

2. The Government of Tanzania has set aside funds for the operation of the [insert the name of the
Procuring Entity] during the financial year [insert the year under financing]. It is intended that part
of the proceeds of the fund will be used to cover eligible payment under the contract for the
[insert the name of the contract]

Or

The [insert name of Procuring Entity] has received/has applied for/intends to apply for a

5|prepared and compiled by: Sadru Mustafa kajuna, p.o.box 695,

b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 6 of 29

[loan/credit /grant] from the [name of financing institution] towards the cost of [insert name of
project], and it intends to apply part of the proceeds of this [loan/credit/grant] to cover eligible
payments under the contract for [insert name of the contract].

3. The [Insert the name of the procuring Entity] now invites sealed tenders from eligible [insert
‘National’ if exclusive preference is applicable] Suppliers of [insert brief description of the goods to be
procured]

4. Tendering will be conducted through the [insert method of procurement] procedures specified in
the Public Procurement (Goods, Works, Non Consultant Service and Disposal of Public Assets
by Tender) Regulations, 2005 – Government Notice No. 97 and is open to all Tenderers as
defined in the Regulations.

5. Interested eligible Tenderers may obtain further information from and inspect the Tendering
Documents at the office of the [Insert the physical and postal address of the Tender Board Secretary of
the procuring entity] from [start and end of working hours] on Mondays to Fridays inclusive except
on public holidays.

6. A complete set of Tendering Document(s) in [insert language of the tender documents] and
additional sets may be purchased by interested Tenderers on the submission of a written
application to the address given under paragraph 5 above and upon payment of a non-
refundable fee of [insert the currency and amount]. Payment should either be by Cash, Banker’s
Draft, or Banker’s Cheque, payable to [state organ to which payments are to be made].

7. All Tenders must be accompanied by a Tender security [if Tender security so requires] in an
acceptable form in the amount of [insert the amount in local currency] or freely convertible
currencies in case of foreign Tenderers.

Or

All tenders must be accompanied by a tender securing declaration in the format provided in the
tendering documents.

8. All tenders in one original plus [Insert the number of copies required], properly filled in, and
enclosed in plain envelopes must be delivered to the address below [state address at the end of
document] at or before [insert time and date].Tenders will be opened promptly thereafter in public
and in the presence of Tenderers’ representatives who choose to attend in the opening at the
[insert the physical address of the place for tender opening].

9. Late Tenders, Portion of Tenders, Electronic Tenders, Tenders not received, Tenders not opened
and not read out in public at the tender opening ceremony shall not be accepted for evaluation
irrespective of the circumstances.

6|prepared and compiled by: Sadru Mustafa kajuna, p.o.box 695,

b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 7 of 29

Standard bidding documents:

 One of the functions of Public Procurement Regulatory Authority (PPRA)

in accordance with Section 7 (1) (d) of the Public Procurement Act (PPA),
2004 is to prepare, update and issue authorized versions of the
standardized tendering documents, procedural forms and any other
attendant documents to procuring entities.

 Further Regulation 83(3) of the Public Procurement (Goods, Works, Non-

Consultant Services and Disposal of Public Assets by Tender), Regulations,
2005 (GN. No. 97) requires procuring entities to use the appropriate
Standard Tendering Documents (STDs) issued by PPRA with minimum
changes acceptable to PPRA as necessary to address project specific issues.

 Regulation 83(4) allows changes to be introduced only through tender or

contract data sheets or through special conditions of contract and not by
introducing changes in the standard wording of PPRA’s STDs. The same
regulation allows the use of internationally recognized STD’s acceptable
to PPRA where there are no relevant STDs issued by PPRA.

The use of STDs has the following advantages to the procuring entities:
Increase predictability/ uniformity;
Increase efficiency and reduce costs;
Reduce unresponsive bids;
Increase competition and thus resulting lower prices; and
Reduce preparation and review time.

Bidders can also benefit from STDs through

Understanding common requirements for tender submissions;

General nature of contracts, etc.
The revised SBD of July 2007 have been amended to accommodate the recent Local
Government Authorities Tender Boards (establishment and proceedings) Regulations, 2007 and
the comments received from procuring Entities.

The SBD are placed in the following seven(7) main directories:

1. Works with the following sub-categories:
a. Smaller Works

7|prepared and compiled by: Sadru Mustafa kajuna, p.o.box 695,

b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 8 of 29

b. Medium and Large Works

2. Goods with the following sub-categories:
a. Goods
b. Health Sector Goods
c. Framework Contracts
3. Supply and Installation of Plants and Equipment

4. Non Consultant Services

5. Consultant Services

6. Disposal of Public Assets by Tender

7. Standard Invitation for Quotation

Other SBDs

Standard Pre-qualification Document (SPD); Procurement of Works; International

Competitive Bidding of July, 2007;

For procurement which is funded by Development Partners, there could be a requirement to

use their Standard Bidding Documents. The most common STD in use are those prepared by
the World bank and are available at www.worldbank.org and those prepared by African
Development Bank which are available at www.afdb.

Def: “Goods” Means products, equipment, raw materials and other physical objects of every kind and
description whether solid, liquid or gaseous, electricity, intangible assets and intellectual property as well
as services incident to supply of goods provided that the services does not exceed the value of the goods.
Contents of Solicitation Documents -Procurement Of Goods
Purpose of the Standard Tendering Document
 The purpose of the STD is to provide Procuring Entities with one common standard
draft containing basic contractual provisions and safeguards which are required by the
Government of Tanzania in the execution of public procurement and the use of public
Funds.

The Standard Tendering Document for the Procurement of Goods has been designed to:
(i) Simplify the drafting of a specific tendering document for Procurement of Goods by
Procurement Management Units;

8|prepared and compiled by: Sadru Mustafa kajuna, p.o.box 695,

b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 9 of 29

(ii) Minimize the time required by the Tender Boards to approve Tendering Documents prior to
release.
(iii) Reduce Tenderers’ time and effort in the preparation of Tenders; and
(iv) Facilitate and simplify the evaluation and comparison of tenders and Contract award; by
the Procuring Entity.

The key feature of the STD is that it can be used with minimum changes, as it does not
contain explanations, footnotes or examples that should not form part of the Tendering
Document. The STDs contain completion notes only for Tenderers; these are primarily in
the Tendering Forms.

Use of Standard Tendering Document for Goods

Procurement Method
The STD for the Procurement of Goods is suitable for use under:
 Open (International or National) Tendering method of procurement with or without
pre-qualification.
 Restricted (International or National) Tendering methods of procurement.
 The STD may also be used for procurement under the Direct Procurement method with
appropriate modifications to the documents.
 suitable for any scope of intended contract where the services are pre-defined and the
period of the Services are fixed enabling a total lump sum amount to be calculated
representing the total amount payable under the Contract

Structure of the Standard Tendering Document

The STD is divided into ten separate Sections and a Preface. Procuring Entities are required to
use all Sections to produce an individual Tendering Document for issue to Tenderers. The
Standard Tendering Document comprises:

a) Section I: Invitation for Tenders

 This section provides relevant information that enables potential Renderers’ to
decide whether or not to participate in the tender process.
 The Invitation for Tenders should also include, specific details such as the name of the
Procuring Entity and address for Tender submission, scope of service to be provided,
deadline for Tender submission.
 How the Tendering documents are to be obtained by prospective Tenderers
 Minimum level of experience required by Tenderers to be eligible.

NB: The final document should contain neither blank spaces nor options.

9|prepared and compiled by: Sadru Mustafa kajuna, p.o.box 695,

b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 10 of 29

b) Section II: Instruction to Tenderers

 This section provides relevant information to help Tenderers prepare responsive
tenders in accordance with the requirements of the Procuring Entity.

 It also provides information on the submission, opening and evaluation of tenders, the
award of contracts and on submitting complaints regarding the tender process.

 This section contains provisions that are to be used without modification.

 The Instructions to Tenderers will not be part of the Contract and will cease to have
effect once the Contract is signed.

c) Section III: Tender Data Sheet

 This section consists of provisions that are specific for procurement and that
Supplement the information or requirements included in section II – Instructions to
Tenderers.

 Amendments, if any, to the Instructions to Tenderers should be made through the

Tender Data Sheet (TDS).
 If duplication of a subject is inevitable in the different sections of the document, care
must be exercised to avoid contradiction between clauses dealing with the same matter.

d) Section IV: General Conditions of Contract

 This section contains the general clauses to be applied to all contracts.
 The General Conditions of Contract, form a complete document expressing all the rights
and obligations of the parties during the execution of the contract.
 The text of the clauses in this section shall not be modified.

e) Section V: Special Conditions of Contract

 This section contains clauses specific to each contract that modify or supplement Section
IV – General Conditions of Contract.
 Amendments, if any, to the General Conditions of Contract should be made through the
Special Conditions of Contract.
 The Special Conditions of Contract should be filled out by the Procuring Entity prior to
issuance of the tendering documents.

f) Section VI: Specifications and Statement of Requirements

 This section contains the specifications for the services and supplies to be incorporated
in the service contract.
 The specifications must be provided by the Procuring Entity prior to the issuance of the
tendering documents.
 The notes for preparing specifications are intended only as information for the Procuring
10 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 11 of 29

Entity or the person drafting the tendering documents.

 The notes should not be included in the final documents.

g) Section VII: Activity Schedule

 This section contains the description of the various activities in the form of Activity
Schedule. The Activity Schedule should be prepared and furnished by the Procuring
Entity prior to the issuance of the tendering documents. The notes for preparing an
Activity Schedule are intended only as information for the Procuring Entity or the
person drafting the tendering documents. The notes should not be included in the final
documents.

h) Section VIII: Standard Forms

 This section provides the Form of Tender which must be filled out by each Tenderer and
Qualification Information which must be provided by each Tenderer
 In addition this section contains a Standard Form of Letter of Acceptance which will be
issued by the Employer to the successful Tenderer
 Standard Form of Contract which will be signed by the Employer and the successful
Tenderer at a later stage.

i) Section IX: Security Forms

 This section contains the security forms for the tender security, tender securing
declaration, performance security, and advance payment security. The tender security or
tender securing declaration, where required, must be furnished by each Tenderer while
the performance security and advance payment security, where required, should be
furnished by the successful Tenderer only.

j) Section X. Undertaking by Tenderer on Anti - Bribery Policy / Code of Conduct and

Compliance Program.
This section contains the undertaking to be made by each Tenderer on anti-bribery
policy/code of conduct and compliance program. Each Tenderer must submit, together with its
tender a statement as provided for under this section. Tenders which do not conform to the
requirements under this section shall not be considered.
Care should be taken to check the relevance of the provisions of the STD against the
requirements of the specific services to be procured.

The following general directions should be observed when using the documents. In addition,
each section is prepared with notes intended only as information for the Procuring Entity or the
person drafting the Tendering documents. They shall not be included in the final documents,
except for the notes introducing Section VIII, Forms, where the information is useful for the
Tenderer.
11 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 12 of 29

(i) Specific details, such as the “name of the Procuring Entity” and “address for Tender
submission,” should be furnished in the Invitation for Tenders, in the Tender Data Sheet, and
in the Special Conditions of Contract.

The final documents should contain neither blank spaces nor options.

ii) Amendments, if any, to the Instructions to Tenderers and to the General Conditions of
Contract should be made through the Tender Data Sheet and the Special Conditions of
Contract, respectively.

iii) Footnotes or notes in italics included in the Invitation for Tenders, Tender Data Sheet, and
Special Conditions of Contract and in the Schedule of Requirements are not part of the text of
the document, although they contain instructions that the Procuring Entity should strictly
follow.

The final documents should contain no footnotes.

iv) The criteria for Tender evaluation and the various methods of evaluation in the Instructions
to Tenderers should be carefully reviewed. Only those that are selected to be used for the
procurement in question should be retained and expanded, as required, in the Tender Data
Sheet or in the Technical Specifications, as appropriate.

The criteria that are not applicable should be deleted from the Tender Data Sheet.

v) Clauses included in the Special Conditions of Contract are illustrative of the provisions that
should be drafted specifically by the Procuring Entity for each procurement.

vi) The forms provided in Section VIII should be completed by the Tenderers or the Supplier;
the footnotes in these forms should remain, since they contain instructions which the Tenderer
or the Supplier should follow.

Bidding Documents General information

Bidding documents shall furnish information necessary for prospective bidder to prepare bid
for requirement of procuring entity; The detail and complexity of bid documents shall vary
with size and nature of proposed bid package
Language
 Bid as well as all correspondence related to the bid shall be in English Language
 Exception may be applied where the tender are entered with Tanzania where bid

12 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 13 of 29

document may be prepared in Swahili.

Clarity of bidding documents
 Bid document must be clear and precise to encourage competition
Specification and Standards
As much as possible the use of brand names, catalogue numbers, or type of
equipment for specific manufacturer should be avoided when specifying
requirements. It is advisable to use Standard specification or using relevant
characteristics and make reference to performance requirements.
 Standard Specifications for motor vehicles, IT hard and software may be obtained
from the PPRA.
Origin of goods and services
 Origin of goods and related services must be stated on the bidding documents
Eligible bidders
Public Procurement (Goods Works, Non-consultant Services and Disposal of Public assets by
Tender)G.N. No. 97

Eligible suppliers, contractors, service providers and asset buyers

6.-(1) Any supplier, contractor, service provider or asset buyer who qualifies for consideration
further to Regulations 10 and 14 of these Regulations shall be eligible to take part in
procurement or disposal proceedings, regardless of their nationality except where this is
limited further to Regulations 25 and or by other provisions of other written Laws.

(2) A procuring entity shall not deny pre-qualification, if required; to a firm for reasons
unrelated to its capability and resources to successfully perform the contract.

(3) As exceptions to the foregoing:

(a) a foreign firm or goods manufactured in a foreign country may be excluded if-
(i) as a matter of law or official regulation, Tanzania prohibits commercial relations with that
country; or
(ii) by an act of compliance with a decision of the United Nations Security Council taken
United Nations, Tanzania prohibits any import of goods from that country or any payments to
persons or entities in that country.
(b) a firm which has been engaged by a procuring entity to provide consulting services for the
preparation or implementation of a project, and any of its affiliates, shall be disqualified from

13 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 14 of 29

subsequently providing goods or works (other than a continuation of the firm's earlier
consulting services) for or acquiring assets from the same project. This provision does not apply
to the various firms (consultants, contractors or suppliers) which together are performing the
contractor’s obligations under a turnkey or design and build contract;

(c) Tanzanian government owned enterprises may participate only if they can establish that
they:
(i) are legally and financially autonomous, and
(ii) operate under commercial law and
(iii) are registered by the relevant registration boards or authorities

4. No dependent agency of the public authority under a public financed project shall be
permitted to tender or submit a proposal for the procurement of goods or works under the
project other than Force Account units, as permitted under Regulation 73.

5. A firm which has been declared ineligible by the Government in accordance with Section
72 of the Act or Regulations 8(3) and 101(9) shall be ineligible to be awarded a
public financed contract during the period of time determined by the Government.

6. Tanzanian manufacturers, contractors, or buyers may tender independently or in joint

venture with foreign firms, but joint ventures or other forms of association between
National and foreign firms shall not be made mandatory.

7. Where a tenderer submits a tender as part of a joint venture, consortium or association, the
solicitation or contract document shall state where appropriate:

(a) that a party to a joint venture, consortium or association shall be jointly and severally liable
for the performance of the contract;

(b) that a party to a joint venture, consortium or association shall be eligible to participate in
the procurement or disposal by tender and where one party is deemed to be ineligible, the
whole joint venture, consortium or association shall be declared ineligible;

(c) that a copy of the joint venture, consortium or association agreement, or the proposed
agreement, shall be required to be submitted as part of the tender or as a condition of contract
effectiveness;

(d) that a joint venture, consortium or association shall appoint a lead member who shall have
the authority to bind the joint venture, consortium, or association and the lead member shall at
the time of contract award confirm the appointment by submission of a power of attorney to
the procuring entity;
(e) that any tender from a joint venture, consortium or association shall indicate the part of
proposed contract to be performed by each party and each party shall be evaluated or pre-
14 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 15 of 29

qualified or post qualified with respect to its contribution only; or

Qualification of bidders R.14

Qualification of suppliers, contractors, service providers or consultants

1) To qualify to participate in procurement or disposal proceedings, suppliers, contractors, service

providers or asset buyers shall meet the following criteria:

(a) They possess the necessary professional and technical qualifications, and technical
competence, financial resources, equipment and other, managerial capability, reliability,
experience, and the personnel
(b) They have legal capacity
(c) They are not insolvent, in receivership, bankrupt or being wound up, business activities have
not been suspended
(d) Have fulfilled their obligations to pay taxes and social security contributions and that they
abide to employment, environmental, health and safety
(e) Their directors or officers have not been convicted of any criminal offences related to their
profession,

(2) To protect their intellectual property or trade secrets, a procuring entity may require suppliers,
contractors, service providers or buyers participating in procurement or disposal proceedings to
provide such appropriate documentary evidence or other information as it may deem useful to
satisfy they are qualified in accordance with the criteria referred to in sub-regulation (1) (b).

(3) Any requirement established pursuant to this Regulation shall be set forth in the pre-
qualification documents, if any, and in the solicitation documents or other documents for
solicitation of proposals, offers or quotations, and shall apply equally to all suppliers, contractors,
service providers or buyers.

(4) A procuring entity shall impose no criterion, requirement or procedure with respect to the
qualifications of suppliers, contractors, service providers or buyers other than those provided for in

15 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 16 of 29

this Regulation.

(5) The procuring entity shall evaluate the qualifications of suppliers, contractors, service providers
or buyers in accordance with the qualification criteria and procedures set forth in the pre-
qualification documents, if any, and in the solicitation documents or other documents for
Solicitation of proposals, offers or quotations.

(6) Subject to Regulation 16(1) and Regulation 25(1) the procuring entity shall establish no
criterion, requirement or procedure with respect to the qualifications of suppliers or contractors
that discriminates against or among suppliers, contractors, service providers, buyers or against
categories thereof on the basis of nationality, or that is not objectively justifiable.

(7) Local suppliers, contractors, service providers or buyers wishing to participate in any
procurement or disposal proceeding shall satisfy all relevant requirements for registration with
appropriate current professional statutory bodies in Tanzania.

(8) Foreign suppliers, contractors, service providers or buyers wishing to participate in the
procurement or disposal proceedings are exempted for the requirement under sub regulation

(7), But where, foreign supplier, contractor, service providers or buyers is selected shall be required
to register with the appropriate professional statutory body before signing the procurement
contract.

Evaluation Factors
The facts and criteria that will be evaluated must be stated in the bidding
document. If there is margin of preference and any criteria other there price to be
used shall be states.
Pricing
 Bids for goods shall be invited on CIF (Port of Destination) or CIP (Place of
Destination) for imported goods.

16 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 17 of 29

 For local supplier Ex-works or off shelf or delivered.

Price Adjustment
 Bidding documents shall contain statement whether price shall be fixed or subject
to adjustment (PPR of 2005 Reg. 23)
Insurance and Transportation
 Bidding documents shall state type of insurance to be provided by successful
bidder and indicate risks to be recovered.
Currency of Bids
 Currency for bids must be stated Bidder are free to quote price of currency used
internationally
Terms and Methods of Payments –
 Contracts for supply of goods shall provide for full payment on delivery and
inspection. For imported goods the use of LC for effecting payments is
encouraged
Bids Submission
 The PE Shall fix the place, specific date and time of closing and submission of
bids
Validity of Bids
The validity period shall be specified in invitation to bid. Bid shall be valid for
such period to enable the purchaser complete evaluation of bids, review the
recommendation of award, obtain necessary approvals and finalize award.
Bid Security
 Bid securities are requested for purpose of deterring irresponsible bids and
encourage bidders to fulfill the conditions of their bids.
 Bid security shall be in format specified by Authority.
 The amount of bid security shall be specified
 Bid validity
 Release of bid security – upon completion of contract

17 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 18 of 29

 Bid security of successful bidder shall not be returned until submission of

performance security.

Conditions for bid security forfeiture

 Bidder withdraws its bid during bid validity period.
Successful bidder fails:
 Accept the correction of bid price
 Sign contract within the specified time
 Furnish required performance bond within specific time

Bid Security And Bid Securing Declaration

Section 89 of PPA 2004 gives PPRA the mandates PPRA to issue guidelines from time to time
for the better carrying out of the objectives or any functions under

In this regards, PPRA is hereby issuing guidance on the use of “Bid Securing Declaration” in
place of “Bid Security”. Introduction of bid securing declaration is based on a very important
consideration of basic principles of public procurement, namely equity.

It is intended to reduce, if not remove, barriers to local SMEs penetrating the public
procurement market. The decision has a legal basis pursuant to Section 53(2) of the PPA 2004;

“The Authority shall issue guidelines, which shall be updated from time to time,
On the minimum and modalities for provision of tender security and other forms of
guarantees or bonds”. The bid securing declaration is essentially a bid security of a different
form and modality.

Despite not involving paying money, bid securing declaration is more binding, in terms of the
possible sanctions, than a bid security, of which the only loss is the amount of money spent on
getting it. Bid securing declaration shall apply only where Section 50 of the PPA 2004 is

18 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 19 of 29

applicable, that is exclusive preference to local firms or persons. The limits for application of
bid securing declaration shall be the thresholds for project values below which exclusive
preference will be applied as per the

Fourth Schedule (c) of the Public Procurement (Goods, Works, Non Consultant
Services, and Disposal of Public Assets by Tender) Regulations, G.N. No. 97 of
2005.Procuring entities are required to start implementing this circular beginning in the
Financial Year 2007/2008.

Guarantee and performance bonds

 Suppliers may be required to submit performance bonds as security in case they
default. The Performance security may be in form of Bank Guarantee or
Insurance Bond issued reputable financial institution
 Failure to submit performance bond the award will be annulled and Tender
Security will be forfeited.

Advance Payment
Normally, payments to suppliers are made after delivery, completion of works or
execution of service. Where supplier asks for payment in advance the request
must be accompanied by acceptable advance payment security (Guarantee)

Condition of Contract
Condition of Contract shall cover inter alias definitions, the contract’s obligation terms.
There will be General Condition and special conditions.

The General Conditions of Contract shall express all rights and obligation of parties
during execution of contract. The text will not be modified
The special conditions of contract
Contains specific details for each contract that modify General Conditions
Amendments if any to General Conditions may be made through special conditions of
contract.
The special conditions of contract should be filled by procuring Entity prior issuance of
19 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 20 of 29

bid documents.

Settlement of Disputes –
Review of Tendering Decision
The Public Procurement Act 2004 provides mechanism for bidders to appeal for what they
consider to be unfair procurement decisions by the procuring entities or tender boards. A
three-tier appeal mechanism is provided in the Act.

First an aggrieved bidder may seek review of the tender decision by the Head of the Procuring
Entity or of the Approving Authority (section 80 of PPA 2004)

Still if the bidder is not satisfied with the decision of the Head of the procuring entity or the
Approving Authority he may seek administrative review by the PPRA (section 81 of PPA 2004)

Complaints not settled by PPRA and those against PPRA shall referred to the Public
Procurement Appeals Authority (PPAA) (Section 82 of PPA 2004)
A bidder, who is not satisfied through the above dispute review system, may still seek judicial
review in accordance with Section 85 of PPA, 2004.

Bidders should refer to the relevant sections of the PPA 2004 and its regulations to understand
how they can forward their complaints. Particular reference is made on what they may seek
review of [Section 79 (2) of PPA 2004] and the time limits within which they can make a
complaint.

Relevant section and Regulations for the purposes of dispute review are as follows: Part VI (i.e.
Sections 77 to 85) of Public Procurement Act 2004;
Part IX (i.e. Regulation 109 to 114) of Public Procurement (Goods, Works, Non-Consultant
Services and Disposal of Public Assets by Tender) Regulations of April 2005 (GN.No.97) and

20 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 21 of 29

Part XII (i.e. Regulations 104 to 109) of Public Procurement (Selection and Employment of
Consultants) Regulations of April 2005 (G.N. No.98)
For procedures of forwarding complaints to PPRA and the Public Procurement Appeals
Authority click the links below.
Administrative Review of disputes by the PPRA Review of Disputes by the PPAA
Qualification of Bidders
The criteria and award procedure for eligible bidders must be in conformity with provisions of
Regulations 14.
Methods Of Procurement
A regulation provides a range of methods to be used and circumstances to use. However there
must be justification on the use of other methods (restrict competition)

 It is up to PE to decide method and give reasons to justify the method of selection.

 Because of lack of planning, PE fails to start procurement process early and resort to restricted
procurement process.

 Choice of Procurement Methods. The choice of procurement methods is interlinked with

contract packaging and scheduling the tree aspects is interlinked.

 Depending on nature and size of procurement procuring entity may use any method of
procurement stipulated in PPA 2004. However, the most preferred method is competitive
tendering.

The choice of procurement depends on:

(1) The nature of the goods and services to be procured.
(2) The value of the procurement
(3) The like hood of interest by foreign tenderers which is function of the local availability
and cost of goods and service.
(4) Critical date for deliver and
(5) Transparency of procedure
21 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 22 of 29

(6) Pre-qualifications results.

International Competitive Tendering R. 65

Under International Competitive Tendering, a procuring entity shall invite suppliers,
contractors, service providers or asset buyers regardless of their nationality, by means of
tender notice that shall be advertised nationally and internationally requesting for tenders.

Suitable application:
(1) Payment may be in whole or part in foreign currency
(2) Large contracts where estimated cost exceeds the threshold for such tenders provided in
second schedule of Regulations.
(3) There is interest to attract wide range of suppliers – Foreign Suppliers

To attract foreign supplier the procuring entity shall advertise the invitation to tender notice
in the Authority’s website and Journal at least one newspaper of wide circulation in
Tanzania and in any International Newspaper. For specialized contracts the notice may be
advertised in well known magazine or trade publication or newspapers.
Approximate Times
International Tendering requires 45 days.

National Competitive Tendering R. 66

Under the National Competitive Tendering, procurement method procuring entity shall
invite suppliers, service providers, contractors or asset buyers of tender notice advertised in
Tanzania only.
Suitable application
(a) Where the project is financed by Tanzania Government – or payment is made wholly in
Tanzania shillings.
22 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 23 of 29

(b) The goods, works or services are available within the country at lower price than
International price
(c) The estimated cost of procurement does not exceed the threshold shown in the second
schedule of Regulation
(d) The contract is labour intensive
(e) Works or services are scattered geographically or spread over time
(f) The capability and competitiveness of local bidders makes it unattractive for foreign
bidders to compete for contractors below a certain value
- Tender documents may be in Kiswahili language
- The invitation to tender notice shall be advertised in local newspapers.
- Domestic or national preference shall apply in evaluation of tenders where foreign firms
here participated.

Limit Of Application
GOODS WORKS NON CONSULTANCY DISPOSAL OF ASSET
800 MILL 3,000 MILL 500 MILL 3,000 MILL

Standard Procurement Processing Time in accordance with Third Schedule of Regulation of

the Public Procurement (Goods, Works Non Consultant Regulations, 2005 (GN. No. 97)
1. Preparation of documents 7 days
2. Advertise and issue documents 7 days
3. Evaluation of pre-qualification 14 days
4. Preparation of tender documents 14 days
5. Review and approval by tender board 30 days
6. Advertise and issue tender 14 days

23 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 24 of 29

7. Evaluation of tenders + Notification

Of award 30 days
8. Award of contract 7 days
123 days
Tendering stage 30

Restricted Tendering R. 67
Procuring entity may restrict the issue of tender documents to limited number of suppliers
under the following circumstances:
(1) Suppliers, contractors and service providers have been pre-qualified.
(2) Specialized items i.e. can be obtained from limited number of suppliers.
(3) Estimated value is within limit of restricted tendering
(4) Urgency

NB: Justification for restriction must be shown in the Record of

Procurement Proceedings.
 PE may seek tenders for list of suppliers pre-qualified
 PE shall use Standard Tendering Documents under restricted tendering
procurement method.

International And National Shopping R. 68

1) Procurement Method of comparing quotations from several suppliers.
 It is appropriate method for off-the shelf goods or standard specification of small
value
2) A Tender Board may approve competitive quotations where:-
 The goods procured are so diversified that it would be of no commercial value for
single supplier to tender then,
 Goods are readily available – off-the shelf or standard specification.

24 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 25 of 29

3) PE shall not divide procurement to avoid tendering method.

4) Quotations must be obtained from at least three suppliers
5) The list of suppliers to be conducted must be approved by Tender Board.
6) The minimum period for preparation of quotation stipulated in third schedule must be
adhered. For National shopping 7 days while for International Shopping 14 days.
7) The invitation for quotation shall be made in writing.
8) Assure same information is provided to all bidders at same time.
9) Suppliers are permitted to submit only one bid/quotation
10) The contract shall be award to the lowest price quotation meeting the requirement of PE.

The limit of Authority

Goods Works Non Consultancy Disposal
80mill 100mill 50 N/A

Single Source R. 69
The use of single source procurement method must be approved by Tender Board
Circumstances:
(a) Goods or Services are available for a particular supplier or has exclusive right sole
source.
(b) Urgency
(c) Proprietary Item – Purchase of parts from original supplier of equipment.
(d) Research, experiment study
(e) Procurement involving National defense or National Security.
(f) Purchase of critical items from specialized suppliers
(g) Where standardization equipment is essential for economic and technical reasons.
Compatibility with existing equipments.
(h) Standardization of parts.
(i) Additional items required for on going project.

25 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 26 of 29

NB:
 Invitation for quotation shall be in writing
 The quotation shall be examined carefully to ensure the requirements are property
address and prices charged are reasonable.
 The quality of goods must not be compromised for sake of cost reductions.
 The justification for single source procurement must be shown in the record of
procurement proceeds.

Direct Contracting For Works

The PE may obtain quotation from single contractor and enter into direct contract when:
(i) Urgency
(ii) Limited number – only one contractor
(iii) The advantage of using the particular contractor
who is at site.
(iv) Extension of work done satisfactory.
The contractor must be the one who was award competitively.
NB:
 The Invitation of quotation must be in writing
 The quotation received shall be examined to ensure the meet the required and prices
quoted are reasonable. If necessary negotiation will be done.
 Quality should not be compromised because of cost.
 Record of Procurement Proceedings must be shown to justify the used of procurement
method.

Minor Value Procurement

Circumstances:
(i) The value does not exceed the limit stipulated in Regulations
(ii) Prices are reasonable.
(iii) No advantage for seeking quotations

26 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 27 of 29

The contract for provision such goods, services or works may be LPO
Turnkey R. 72
PE Contractors Supplier to perform all activities until completion Turnkey Contracts may be
issued for contracts involving specialized work such as construction of industrial plan
where supply of goods and performance of installation done by one contractor.
 Procurement may be done through National/International competitive tendering.
Alternatives:
(i) PE prepares design and engineering and contracts single contractor to
undertake the responsibility for supply and installation.
(ii) Design and build contract supply of goods by other supply
(iii) Issue a single tender for Management of Contractor who shall
subcontract all design, engineering supply and works.
Force Account R. 73
Is construction by use of public or semi-public agencies or departments own personnel and
equipment.
Circumstances:
1) Small works scattered or in remote locations.
2) Works is required to be carried without disrupting ongoing operations.
3) Emergency cases
4) Better performed by PE

Public Private Partnership R. 74

Public Private Partnership (PPP) is contractual arrangement between public agency (at
central or local government level) and private sector entity. Through this agreement the
skill and assets of each sector (public and private) are shared in delivering a service or
facility for the use of the general public. In addition to sharing resources, each party
shares in the risks and rewards potential in the delivery of the service and /or facility.
Public Private Partnership(PPP include different forms:
 Service contract
27 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 28 of 29

 Management contract
 Leasing
 Joint venture
 Partnership
 Build Operate, Build Own Operate
 Design Build Operate and concessions
Advantages
- It is an alternative means of developing infrastructure
- PPP promotes overall efficiency which lead to high development
- Reduces public borrowing
Services for which there are no governmental, legal or operational limitations that dictate to
be performed by public sector may be outsourced under PPP
Things to be done by PE in order to enter into PPP contract:
 Ensure it has expertise to proceed
 Appoint project team and transaction advisor
 Undertake feasibility study
 Advertise the request for qualification in form of SPN in wide and general
circulation
 The selection of service provider shall be done in accordance with
Regulations of Public Procurement (Selection and Employment of
Consultants) Regulations, 2005
Community Participation R. 75
Community participation may be feasible where interest of project sustainability or to
achieve certain specific social objectives:
 Participation of local community is required
 Increase local know how utilization
 Labour intensive
 Procurement function performed by members of community

28 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355
 Page 29 of 29

29 | p r e p a r e d a n d c o m p i l e d b y : S a d r u M u s t a f a k a j u n a , p . o . b o x 6 9 5 ,
b u k o b a Ta n z a n i a
Phone, 0762299355