Public Procurement

Kwame Aboagye
MLNR
aboagyekwame1@gmail.com
 Objective

• To draw attention to amendments made to

Public Procurement Act 2003, Act663 by
Public Procurement Act (amended) 2016,
Act914

2
 Outline

• Recap Act663
• Amendment introduced by Act914

3
 Declaration of procurement
entity

• 15. (1) The Minister in consultation with

the Board may, by notice in the Gazette,
declare an entity, a subsidiary or agency of
an entity or a person to be a procurement
entity.

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 Procurement entity

• 16 (2) Procurement decisions of an entity

shall be taken in a corpo- rate manner and
the internal units concerned shall
contribute to the deci- sion-making
process.

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 Functions of the head of a
procurement entity

• 18. (1) The head of entity shall ensure that

provisions of this Act are complied with.
• (2) The concurrent approval by a tender review
committee shall not absolve the head of entity
from accountability for a contract that may be
determined to have been procured in a manner
that is inconsis- tent with a provision of this Act.
• (3) (d) ensure that stores, vehicles and equipment
are disposed of in compliance with this Act;

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 Procurement unit

• 19. (1) The head of a procurement entity

of each ministry, depart- ment and agency
and Metropolitan, Municipal and District
Assembly, shall establish a procurement
unit within the entity which shall be headed
and staffed by qualified procurement
personnel.

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 Entity tender committee

• 20. (1) A procurement entity shall

establish a tender committee in the
manner set out in the First Schedule and
in accordance with the catego- ries set out
in Schedule 1A.

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 functions of an entity tender
committee

• 20A (c) exercise sound judgment in making

procurement decisions;
• (d) review and refer to the central tender
review committee for concurrent approval,
procurement above the entity tender
committee’s threshold, that has been duly
– (i) processed by the procurement unit: and
– (ii) evaluated by the appropriate evaluation
panel constituted by the head of entity.

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 Meetings of entity tender
committees

• 20D. An entity tender committee shall

meet at least once each quarter and notice
of the meetings shall be given at least two
weeks before the date of the meeting.

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 Tender evaluation panel

• 20E. (1) A procurement entity shall appoint

a tender evaluation panel with the required
expertise to evaluate tenders.
• (2) A tender evaluation panel shall, in the
performance of its functions, proceed
according to the predetermined and
published evalu- ation criteria

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 The answer

• Mention three creatures that go

out in the night.
• Answer:
–Bat,
–Owl
–Daddy.
12
• Effective date of PPA (amendment) Act914
is 1st July,2016

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 Schedule 1A.

• CATEGORY A (SPECIAL CONSTITUTIONAL

BODIES)
1. Legislature
2. Judiciary
3. Council of State
4. Bank of Ghana

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 Composition of ETC (Cat A)
Item Legislature Judiciary

Chair Chief Administrator Judicial Sec.

Members Head, Finance Head, Finance

Majority Leader 2 members, Judicial Council

Minority Leader 3 members, Superior Court

Chair, PAC

Chair, Works C’tte

Chair, C’ttee selected by Speaker

2Reps, Prof Bodies 2Reps, Prof Bodies

Total 9 9

Sec Head, Pro’rement Head, Pro’rement

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Quorum Chair + 4 others Chair + 4 others
 Composition of ETC (Cat A)
Item Council of State Bank of Ghana

Chair Chief Director Governor/First Dep.

Members Head, Finance Head, Finance

3 Heads of Dept. incl user Head, Legal

Rep, MOF

Rep, Office Of President

1 Dept. Head

2Reps, Prof Bodies 2Reps, Prof Bodies

Total 7 9

Sec Head, Procurement Head, Procurement

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Quorum Chair + 3 others Chair + 4 others
 Schedule 1A.

• CATEGORY B
• 1. Independent Constitutional Bodies1
• 2. Office of the President
• 3. Central Management Agencies
• 4. Ministries
• 5. State Owned Enterprises
• 6. Regional Coordinating Councils
• 7. Statutory fund management bodies

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 Independent Constitutional
Bodies1
• Public Services Commission,
• National Development Planning Commission,
• Office of the Head of Civil Service,
• Electoral Commission,
• Office of the District Assemblies Common Fund
Administrator,
• Commission On Human Rights and Administrative
Justice,
• National Media Commission,
• Lands Commission and
• National Commission for Civic Education. 18
 Composition of ETC(CatB)
Item Ministries SOE Fund Mgt Bodies
Chairperson Minister Chief Executive Chief Executive
Members Head, Finance Head, Finance Head, Finance
Attorney, A-G Dept Head, Legal Head, Legal
3 Heads inl. user Sector Ministry Rep Sector Ministry Rep
Finance ministry Rep

Chief Director + 2 3 Heads inl. user 2 Heads inl. user

members Pro bodies

Secretary Head, Procurement Head, Procurement Head, Procurement

Total 9 9 9
Quorum Chair +4 members Chair +4 members Chair +4 members
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 Threshold (MDA)-approving
authority(CAT A&B)
Authority Goods (GH¢) Services (GH¢) Works (GH¢)

TRC Above 1,000,000.00 Above 1,000,000.00 Above 2,000,000.00

ETC Above 100,000.00 – Above 100,000.00 – Above 150,000.00 –

1,000,000.00 1,000,000.00 1,000,000.00

Head, Entity Up to 100,000.00 Up to 100,000.00 Up to 150,000.00

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 Live Demo

• A man brings his best friend home for dinner at

7.30pm after work. He hadn’t announced to his
wife so she was very upset. Wife begins
screaming at him and the friend just sit there
looking shocked.
• Wife: the dishes are not done, the home is a
mess, there is no grocery and I can’t be bothered
with cooking tonight! Why the hell did you bring
him home?
• Husband: because he is thinking of getting
married and I promised him a live demo.
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 Schedule 1A.

• CATEGORY C
1. Head Office of subvented agencies and
government departments2
2. Teaching Hospitals
3. Tertiary Institutions including autonomous
schools, institutes, colleges and campuses of
universities.

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 Category C1, D1 and E1

• Ghana Education Service,

• Ghana Health Service,
• Ghana Police Service,
• Ghana Prisons Service,
• Ghana Immigration Service,
• Ghana National Fire Service,
• Ghana Revenue Authority and
• Local Government Service. 23
 Composition of ETC(CatC)
Item Sub vented Teaching Hospitals Tertiary Instituitions
Agencies/Depts
Chairperson Chief Executive Chief Executive VC/Rector/Principal
Members Head, Finance Head, Finance Head, Finance
Attorney, A-G Dept Head, Legal Head, Legal
3 Heads inl. user 3 Heads inl. user 3 Heads inl. user

2 members Pro bodies 2 members Pro bodies 1 member Pro bodies +1 rep
National Council Tertiary Edu

Sector Ministry Rep Rep of Private sector Registrar

Secretary Head, Procurement Head, Procurement Head, Procurement

Total 9 9 9
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Quorum Chair + 4 members Chair + 4 members Chair + 4 members
 Threshold (MDA)-approving
authority(CAT C)
Authority Goods (GH¢) Services (GH¢) Works (GH¢)

TRC Above 800,000.00 Above 800,000.00 Above 1,500,000.00

ETC Above 60,000.00 – Above 60,000.00 – Above 90,000.00 –

800,000.00 800,000.00 1,500,000.00

Head, Entity Up to 60,000.00 Up to 60,000.00 Up to 90,000.00

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 Schedule 1A.

• CATEGORY D
• 1 . Regional office of subvented agencies and
government departments
• 2. Regional hospitals
• 3. Training Colleges (Nursing & Agricultural or
similar Colleges).

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 Composition of ETC(CatD)
Item Regional Sub vented Regional Hospitals Colleges
Agencies/Depts
Chair Regional Head Med. Sup/Director Head
Members Head, Finance Head, Finance Head, Finance
Attorney, A-G Dept Attorney, A-G Dept Lawyer apt by Council
3 Heads inl. user Head, Health Services 3 Heads inl. user
Administrator

Head, Pharmacy, Nursing, 1 member Pro bodies +1 rep

Clinical National Council Tertiary Edu
RCC Rep Rep of Reg. Health Rep of Reg. Education
Directorate.+ RCC Rep Directorate + RCC Rep

Sec Head, Procurement Head, Procurement Head, Procurement

Total 7 9 7
Quorum Chair + 3 members Chair + 4 members Chair + 3 members 27
 Threshold (MDA)-approving
authority(CAT D)
Authority Goods (GH¢) Services (GH¢) Works (GH¢)

TRC Above 400,000.00 Above 400,000.00 Above 800,000.00

ETC Above 45,000.00 – Above 45,000.00 – Above 75,000.00 –

400,000.00 400,000.00 800,000.00

Head, Entity Up to 45,000.00 Up to 45,000.00 Up to 75,000.00

For Regional Offices of subvented Agency, procurement

above the Regional ETC shall be handled by its Head Office
ETC
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 The Recall

• Honda recalls faulty products to fix them.

• Samsung recalls Note7 to fix battery
issues.
• Every time I read about a manufacturer
recalling their faulty products….
• I hope that one day our in-laws will recall
their faulty products….

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 Schedule 1A.

• CATEGORY E
• 1 . District office of subvented agencies and
government departments4
• 2. District hospitals
• 3. Second cycle schools or institutions

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 Composition of ETC(CatE)
Item District Sub vented District Hospitals Colleges
Agencies/Depts
Chairperson District Head Med. Sup/Director Head
Members Head, Finance Head, Finance Bursar/ Finance Officer
Attorney, A-G Dept Attorney, A-G Dept Lawyer apt by Council
3 Heads inl. user Head, Nursing, 3 Heads inl. user
Pharmacy

Regional Rep Rep of Reg. Health Rep of District Education

Directorate. Directorate.
DCC Rep
Secretary Head, Procurement Head, Procurement Head, Procurement
Total 7 7 7
Quorum Chair + 3 members Chair + 3 members Chair + 3 members
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 Threshold (MDA)-approving
authority(CAT E)
Authority Goods (GH¢) Services (GH¢) Works (GH¢)

TRC Above 200,000.00 Above 200,000.00 Above 400,000.00

ETC Above 30,000.00 – Above 30,000.00 – Above 45,000.00 –

200,000.00 200,000.00 400,000.00

Head, Entity Up to 30,000.00 Up to 30,000.00 Up to 45,000.00

District hospitals and schools shall use the ETC and CTRC as appropriate
for procurement above the ETC’s threshold. The District ETC shall
operate under the threshold guidelines of its Head Office
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 Schedule 1A.

• CATEGORY F
• Metropolitan Assemblies
• Municipal Assemblies and District Assemblies

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 Composition of ETC(CatF)
Item Metro Municipal/District Assembly

Chair MCE MCE/DCE

Member Head, Finance Head, Finance

Head, Legal/ apt by Assembly Head, Legal/ apt by Assembly

2 Chair (Works/Finance) Cttee 2 Chair (Works/Finance) Cttee

2 Head of dept incl. user dept 2 Head of dept incl. user dept

Budget Officer Budget Officer

Co-ordinating Director Co-ordinating Director

Total 9 9

Secretary Head, Procurement Head, Procurement

Quorum Chair + 4 members Chair + 4 members 34

 Threshold (MDA)-approving
authority(CAT F1-RCC)
Authority Goods (GH¢) Services (GH¢) Works (GH¢)

Regional-TRC Above 750,000.00 Above 750,000.00 Above 1,000,000.00

ETC Above 100,000.00 – Above 100,000.00 – Above 150,000.00 –

750,000.00 750,000.00 1,000,000.00

Head, Entity Up to 100,000.00 Up to 100,000.00 Up to 150,000.00

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 Threshold (MDA)-approving
authority(CAT F2-Metro)
Authority Goods (GH¢) Services (GH¢) Works (GH¢)

Regional-TRC Above 550,000.00 Above 550,000.00 Above 750,000.00

ETC Above 75,000.00 – Above 75,000.00 – Above 125,000.00 –

550,000.00 550,000.00 750,000.00

Head, Entity Up to 75,000.00 Up to 75,000.00 Up to 125,000.00

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 Threshold (MDA)-approving
authority(CAT F3-Municipal & District)

Authority Goods (GH¢) Services (GH¢) Works (GH¢)

Regional-TRC Above 400,000.00 Above 400,000.00 Above 550,000.00

ETC Above 50,000.00 – Above 50,000.00 – Above 90,000.00 –

400,000.00 400,000.00 550,000.00

Head, Entity Up to 50,000.00 Up to 50,000.00 Up to 90,000.00

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 Alcohol na wa ooooo.

• I began to fear alcohol from yesterday. I saw

my neighbour spend the whole night dancing
to the sound of my generator set thinking he
was at the night club. Intermittently he would
shout “this DJ go kill person oooooo”.
• When I turned off the gen set, he asked “who
sang that song”
• I replied na Yamaha featuring Petrol.
• He promised to get a copy of the song for
himself. 38
 Threshold

Mandatory Pre- Contract Value

Qualification

Goods Above GH¢10,000,000.00

Services Above GH¢5,000,000.00

Works Above GH¢15,000,000.00

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 Threshold for Procurement
methods(ICB)

Procurement Contract Value

Method
Goods Above GH¢10,000,000.00

Service Above GH¢5,000,000.00

Works Above GH¢15,000,000.00

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 Threshold for Procurement
methods(NCB)

Procurement Contract Value

Method
Goods More than GH¢25,000.00
up to 10,000,000.00
Service More than GH¢25,000.00
up to 5,000,000.00
Works More than GH¢50,000.00
up to 15,000,000.00 41
 Threshold for Procurement
methods(Price Quote)

Procurement Contract Value

Method
Goods Up to GH¢100,000.00

Service Up to GH¢50,000.00

Works Up to GH¢200,000.00
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 Threshold for Procurement
methods

Procurement Contract Value

Method
Restricted Tendering Subject to PPA
approval
Single source Subject to PPA
procurement & approval
selection 43
 Consultancy Services – No
threshold limits
Quality Based Selection Refer to PPA manual for
procedure
Quality & Cost Based Selection Refer to PPA manual for procedure

Consultant’s Qualification Refer to PPA manual for procedure

Fixed Budget Selection Refer to PPA manual for procedure

Least Cost Selection Refer to PPA manual for procedure

Individual Consultant Refer to PPA manual for procedure

Single Source Subject to PPA Approval

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 Consultancy Services – No
threshold limits

• Mandatory use of EOI for all except Single

Source
• Entities may advertise internationally
where the skills may not be available
locally.

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 The Surgery

• Male brain cost RS5,000.00, female brain

cost RS200.00. why so much difference?
• Because the female brain have actually
been used…..the male brains are hardly
ever used by the owners. So they are as
good as new.

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 Conclusion

• Revised Approval Thresholds;

• Re-Constitution of Entity Tender Committees;
• Dissolution of District and Ministerial Tender
Review Boards;
• Categorization of Entity Tender Committees ;
• Revised Thresholds for Procurement
Methods;

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Thank you.

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 Quality and Cost Based
Selection (QCBS)

• The standard method of selection for most consultant

services, and uses a merit-point score system. The
technical capabilities and experience of the Consultants
and Personnel, and the quality of the proposal
submitted in response to the Terms of Reference, will
receive the major percentage of the total points to be
awarded.
• Only firms/consultant whose technical proposals
achieved a minimum technical score will have their
financial proposal considered. The general practice in
Ghana is that, the best compromise between technical
quality and cost of the services is often achieved by
allocating 80% of the total points to the technical
features of the proposal and 20% to the financial score.
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 Quality-Based Selection (QBS)

• may be suitable for complex, difficult to define,

or highly specialised assignments, where the
best expertise available is required without
consideration of the price.
• In this case, only technical proposals are
evaluated, with the winning tenderer being
invited for detailed negotiations to agree the
price of the services and the contract.
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 Fixed Budget Selection (FBS)

• may be used when the assignment is simple,

can be clearly defined, and there is only a
strictly limited budget available for the
services.
• Consultants are invited to submit their best
technical proposal within the fixed budget
price and award of contract is made to the
highest scoring technical proposal
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 Least cost selection

• This method is more appropriate to selection of

consultants for assignments of a standard or
routine nature (audits, engineering design of
noncomplex works, etc.) where well-established
practices and professional standards exist, and
when the contract value is small.

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 Selection Based on Consultants’
Qualifications

• This method may be appropriate for very small

assignments where the need for submission
and evaluation of detailed competitive
proposals is not justified.

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 Single-source selection

• of consultants lacks the benefit of competition

in regard to quality and cost, the selection is
not transparent, and may encourage
unacceptable practices.
• Therefore, Single-source selection should
only be used in exceptional circumstances.
The justification for Single-source selection
must be examined carefully to ensure
economy and efficiency.

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