Professional Documents
Culture Documents
Prepared By:
Maziku, A.P
School of Business
Mzumbe University
September 2011
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1.0 Overall Topic Objective
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1.1 Specific Objectives-1
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1.2- Understanding the Procurement
Environment
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1.3 Major Laws and Regulations
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1.4 Procurement in Public Institutions
Who is Responsible?
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1.6 Categories of Procurement in
Public Institutions
(a) Transparency:
openness and clarity on procurement policy
all interested parties know and understand the actual procedures and
processes by which contracts are awarded and managed.
clear regulations and procedures,
standardized tender documents,
standardized tender contracts
fair process.
(b) Accountability:
The public officials who are dealing with procurement activities have
responsibilities and obligations for performance and stewardship.
A good procurement system should have clear lines of responsibility in
decision making and public officials responsible for procurement
should be made accountable for their decisions.
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1.7 Principles of Public Procurement-2
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1.7 Principles of Public Procurement-3
(f) Integrity:
The public officials abstain from corruption or
collusion with suppliers or others.
(g) Competition
Procurement should be carried out by
competition unless there are convincing
reasons to the contrary.
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1.7 Principles of Public Procurement-4
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1.8 The Public Procurement
Institutional Framework
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Procuring Entities Structure
Accounting Officer
Tender Board
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1.8.1 The Public Procurement
Regulatory Authority-1
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1.8.1 The Public Procurement
Regulatory Authority-2
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1.8.2 Procuring Entities
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1.9 The Public Procurement
Regulations (2005)
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1.10 Duties and Roles: Tender Boards-1
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1.10 Duties and Roles:
Accounting Officer- 2
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1.10Duties and Roles:
Accounting Officer- Cont’d
Certifying the availability of funds to support the procurement
activities.
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1.10 Duties and Roles:
User Departments- 5
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Procurement Planning: Legal Provisions
under PPA 2004- 1
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1.11Procurement Planning- 2
Economies of scale
Aggregate the requirements of different user departments within
the organisation to achieve economies of scale and thus lower
costs. This is subject to considerations like storage facilities,
available cash flow and the like.
Maximum Limits
Avoid splitting requirements into smaller amounts to be ordered
more times in order avoid tendering.
Flexibility
The procurement plan may be reviewed every six months to take
into account any new procurement.
Budgeting
An Organisational comprehensive annual procurement plan is
28 part of the Organisation Budget.
Formats for APP-4
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Methods of Procurement and their use- 1
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1.12 Procurement Methods:
International Competitive Tendering-2
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1.12 Procurement Methods:
Competitive Quotations- 4
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1.12 Procurement Methods:
Single Source Procurement for
Goods- 5
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1.12 Procurement Methods:
Minor Value Procurement - 6
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1.13 Influences on Procurement
Method: Summary
Urgency
Nature of the requirement
Limited number of supply sources
Currency of payment
Standardization
Contract Extensions
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Choice of Procurement
Method- Other Factors
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Tendering Process: Detailed Key steps
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Tender documents generally include the
following components:
International Competitive
Tendering
(Reg. 65) – Observe requirement to
apply Margin of Preference in favour
of local firms
1Other methods also exist: Competitive Quotations up to Tshs. 100 million and Minor
Value Procurement up to 20 mil.
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Prequalification
Identify qualified contractors/suppliers/service providers
prior to calling tenders
Open tendering
TB must approve tender Notice and adequate time be
provided for eligible bidders to collect tender
INVITE documents. Later post-qualification must be carried
ELIGIBLE out
Provide eligible contractors/suppliers/service
BIDDERS providers with timely and adequate notice and time
to tender
Clarifications on enquiries be made within
reasonable time using method described in the
Bidding Document – should be strictly in writing
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PE to fix place, date and time of
submission of tenders
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Deposit tenders in specified place
and under the care of Secretary of TB
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Accounting Officer (AO) to appoint
evaluation Team with members above
three – external experts may be
included
EVALUATION
OF TENDERS Evaluation Team (ET) shall first
establish the responsiveness of the
bids – non responsive bids shall be
rejected.
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Commercial and technical responsive
bids shall be subjected to financial
evaluation. The lowest evaluated
tender shall be subjected to Post-
qualification
Cont’d
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TB shall review the evaluation and
recommendation and may:
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Methods of Selection (Contd..)
7 Evaluation of Proposal 30 30
and notification of
award and obtaining
necessary approvals
8 Award of contract 7 7
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Assessment Criteria: General –Regulation 58(4)
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Corruption in Procurement
Definition
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Corruption in Procurement
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Corruption in Procurement
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Corruption in Procurement
Identification of Corruption
Some “red flags” in the purchasing office:
- Poor record keeping;
- Deviations from procedures without written
justification;
- Poorly defined roles/responsibilities;
- Lack of controls;
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“Red flags” in procurement-cont’d
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