KEY DEFINITIONS AND INTRODUCTION

“Procurement” means acquisition by purchase, rent, lease, hire purchase,

licence, tenancy, franchise, or any other contractual means, of any type of
works, services or supplies or any combination;
“Procurement process” means the successive stages in the procurement cycle
including planning, choice of procedure, measures to solicit offers from
bidders, receipt and opening of bids, evaluation, award of contract and contract
management;
Disposal; Divestiture of public assets, including intellectual and proprietary
rights and goodwill, and any other rights of a procuring and disposing entity by
any means, including the sale, rental, lease, franchise, auction, or any
combination however classified other than those regulated by the Public
Enterprise Reform and Divestiture Statute, 1993.
Accounting Officer The “in-charge” of a procuring and disposing entity, Local
Government or a statutory body.
Contracts committee A team of individuals appointed by the authorised
officer to oversee the procurement and disposal of assets on behalf of the
procuring agency.
A Contract An agreement between a procuring and disposing entity and a
provider in pursuance of a bid award decision of a Contracts Committee or any
other appropriate authority
A Bid; An offer to provide or to acquire works, services or supplies or any
combination thereof, and shall include prequalification where applicable.
Pre-Qualification. A screening process designed to ensure that invitations to
bid are confined to capable providers.
An award A decision to determine the successful bidder consistent with the
provisions under the Local Governments Act, 1997 and PPDA Act, 2003
LEGAL FRAMEWORK OF PUBLIC PROCUREMENT
The Public Procurement and Disposal of Public Assets Act No. 1 of 2003 as
Amended in 2021
The Local Government Act Cap 243 as amended by the LG (Amendment) Act,
2006;
The Public Procurement and Disposal of Public Assets, Regulations 2014 (for
Central Government entities);
The Local Government (Public Procurement and Disposal of Public Assets)
Regulations, 2006;
Guidelines issued by PPDA for Central & Local Governments;
Standard Bidding documents issued by PPDA for Central and Local
Governments

The Public Procurement and Disposal of public Assets Authority (PPDA)

Authority” means the Public Procurement and Disposal

of Public Assets Authority established in section 5 of this Act as per the
interpretation section of the principal Act. The Authority is an autonomous
body, literally meaning that it is free from any control and that in itself gives it
a heavy independence while it executes its mandate.
Section 6 of the Principal Act provides for the Objectives and they are as
follows
(a) ensure the application of fair, competitive, transparent,
nondiscriminatory and value for money procurement and disposal standards
and practices;
(b) advise Government, local governments and other procuring and
disposing entities on procurement and disposal policies, systems and practices
and where necessary, on their harmonization;
(c) set standards for the public procurement and disposal systems in
Uganda;
(d) monitor compliance of procuring and disposing entities; and
(e) build procurement and disposal capacity in Uganda.

The authority’s functions can be summarized under four main headings as

a summary of Section 7 of the Principal Act
 Policy functions, which include advising Government on procurement
and disposal policy.
 Regulatory functions, which includes compliance with the law, issuing
standard documents, granting exceptions to regulations where
 appropriate and audit/investigating breaches of the Regulations by
procuring and disposal entities or providers.
 Data management functions, which includes maintaining a database of
providers and other databases and organising a website and other
systems for publishing procurement notices.
 Capacity Building functions, which includes setting standards for
training and professional development of procurement staff and
coordinating capacity building activities in the area of procurement and
disposal.
The Procuring and Disposing Entities (PDE)
There are 105 procuring and disposing entities at the central government level
to which the procurement function was decentralized. According to the PPDA
act, 2003, each procuring and disposing entity is composed of;
(i) An accounting officer,
(ii) A contracts committee
(iii) The procurement and disposal unit, and
(iv) The user departments.
The Accounting Officer (AO) is appointed by the secretary of Treasury, (PPDA
Act, and section 26). He/She has the overall responsibility of the execution of
the procurement and disposal process in the procuring and disposal entity.
The accounting officer performs the following functions:

 Establishing a Contracts Committee in accordance with the act.

 Appointing the members of a Contracts Committee.
 Causing to be established a procurement and disposal unit staffed at an
appropriate level.
 Advertising bid opportunities
 Communicating award decisions.
 Establishing a Procurement and Disposal Unit.
 Communicating awards decisions.
 Certifying the availability of funds to support the procurement or
disposal activities.
 Investigating complaints by providers.
 Submitting a copy of the complaints and reports of findings to the Public
Procurement and Disposal of Public Assets Authority; and ensuring that
the implementation of the awarded contracts is in accordance with the
terms and conditions of the awards.
ii) The Contracts Committee (CC) is detailed in section 28-29 of the PPDA
Act.
It consists of a chairperson, a secretary and a maximum of other three
members, (one who must be a lawyer) and it approves all procurements. A
Contract Committee for each procuring entity performs the following roles:

 Adjudicating of recommendations from the procurement and disposal

unit and award of contracts.
 Approving the evaluation committee.
 Approving bidding and contract documents.
 Approving procurement and disposal procedures.
 Ensuring that the best practice in relation to procurement and disposal
are strictly adhered to by procuring and disposal entities.
 To authorize the choice of the procurement procedure, solicitation
documents, technical and financial reports, contract documents and
amendments to an awarded contract.
 To propose delegation of authority to the accounting officer whenever the
need arises.
 To award contracts in accordance with applicable procurement or
disposal procedures as the case may be.
iii) The Evaluation Committee
Section 37 of the PPDPA provides that all evaluations shall be conducted by
an evaluation committee which shall later report to the procurement and
disposal unit.
Note that the membership of the Evaluation Committee shall be recommended
by the procurement and disposal unit but approved by the contracts committee
in accordance with the regulations under the Act. The number of the members
of the Evaluation committee shall depend on the value and complexity of the
procurement requirement and shall be of an appropriate level of seniority and
experience.
All members of this committee shall sign a code of ethics provided under the
regulations declaring that they do not have any conflict of interest in the
procurement requirement.

iv) According to PPDA Act section 31-32 and Regulations 57-61, A

Procuring and Disposal Unit (PDU) established are by the Accounting Officer
to manage and execute all the procurement and disposal activities, support the
contracts committee and advice the user Department. The specific roles of this
entity include:
  Manage all procurement activities of the procuring and disposing entity
except adjudication and the award of contracts.
 Support the functions of the Contracts Committee and implement its
decisions.
 Implement the decisions of the Contracts Committee.
 Liaise directly with the Authority on matters within its jurisdiction.
 Act as a secretariat to the Contracts Committee.
 Plan the procurement and disposal activities of the procuring and
disposing entity.
 Recommend disposal and procurement methods.
 Check and prepare statements of requirements.
 Prepare bid documents.
 Prepare advertisement of bid opportunities.
 Issue bidding documents.
 Prepare contract documents.
 Issue approved contract documents.
 Maintain and archive records of the procurement and disposal process.
 Prepare monthly reports for the contracts committee.
 Co-ordinate the procurement and disposal activities of all the
departments of the procuring and disposal entities.
iv) The User department is provided for under Section 34 of the PPDA
Act.
The user Department of Parliament shall perform the following functions:
 liaise with and assist the PDU throughout the procurement or
disposal process to the point of contract placement and thereafter
contract management;
 Initiate procurement and disposal requirements and forward them to
the PDU;
 Propose technical inputs to statements of requirements for
procurement to the PDU;
 Propose technical specifications to the PDU where necessary;
 Input with technical evaluation of bids received as required by the
PDU;
 Arrange for payments to the providers;
 Report any departures from the terms and conditions of an awarded
contract to the PDU;
 Forward details of any required contract amendments to the PDU;
 Maintain and archive records of contract management;
 Prepare any reports required for submission to the PDU, CC or AO.
In the exercise of its functions, a User Department shall:
 I. Initiate procurement and disposal requirements;
II. Recommend Statements of Requirements to the PDU;
III. Undertake conformity assessments;
IV. Issue change orders in accordance with the terms and conditions of the
contract; and
V. Certify invoices for payments to providers

PROCUREMENT AND DISPOSAL PRINCIPLES

a) Non-discrimination; A bidder should not be excluded from participating
in public procurement and disposal on basis of nationality, race, religion,
gender or any other criteria. b) Transparency; all Procurement and
Disposal shall be conducted in a manner which promotes transparency
like giving all the bidders the same information in relation to particular
procurement or disposal.
b) Transparency; all Procurement and Disposal should conducted in a
manner which promotes transparency like giving all the bidders the
same information in relation to particular procurement or disposal.
c) Accountability; all procurement and disposal activities should be
conducted in a manner which promotes accountability among all the
stake holders in the procurement and disposal cycle.
Every stake holder in the procurement process have their roles defined
and their checks and balances for each one roles, producing
procurement monthly reports by the PDU, approving award by the
Contract committee, identification of needs by the user department.
d) Fairness; all procurements and disposal activities should be conducted
in a manner which promotes fairness to all prospective bidders. PDU will
issue the same solicitation document to all the providers participating in
any procurement process. Using one methodology in the evaluation
process of bids, rotation of suppliers on the prequalified list, issuing the
same solicitation document to providers.
e) Competition; all the procurement and disposal shall be conducted in a
manner to msaximize competition and achieve value for money. It
exhibited by bid opportunities in the print media for both open domestic
bidding and international open bidding, Invitation under restricted,
request for quotations and/or proposals from prequalified suppliers.
f) Confidentiality; Parliament shall not, except when required to do so by
an order of court, disclose any information relating to any procurement
or disposal process.
At the evaluation process all information relating to the bid is not
disclosed by the evaluation committee members until an award has been
made by the contracts committee.
 For the disposal process, the reserve prices shall not revealed to any
potential buyer (s).
g) Economy and efficiency; all procurement and disposal shall be
conducted in a manner which promotes economy, efficiency and value
for money. The use of local providers in getting supplies as opposed to
suppliers who are abroad reduces transportation costs and import duty
taxes.
h) Ethics; all procurement and disposal activities shall be carried out in
accordance with the codes of ethics that may be specified in the human
resource manual. Any staff participating in any evaluation will sign a
code of ethical conduct form.
i) Environmental protection; all procurement and disposal activities
should be carried out
in a manner that promotes green procurement principles of recycling of
the product.
The PDU should always insert clauses in the solicitation document that
promotes the
environment and certification bodies.
j) Conflict of interest; Parliament staff should reveal/disclose and declare
any personal interest that may impinge or might reasonably be deemed
by others to impinge on an employee’s business dealings with an
industry
PROCUREMENT METHODS
Procurement methods are described under Sec. 79-86 of the PPDA Act,
2003 as determined by the thresholds and they include
 Open Bidding
 Open International Bidding
 Restricted Domestic Bidding
 Restricted International Bidding;
 Quotation and Proposal Method;
 Micro Procurement;
 Direct Procurement;
 Community Purchase
 Force Account Mechanism

The estimated value of the supplies, works or services is usually the key factor
in deciding which procurement procedure to use and thresholds for the use of
each procurement procedure are given by the PPDA. A summary of these
thresholds is given below;
Summary of the Threshold
SUPPLIES SERVICES WORKS PROCUREMENT
SUPPLIES METHOD
Above SHS 200m Above SHS Above SHS Open Domestic
200m 500m Bidding or Open
International
Bidding
(Advertising+
Bid opening )
Value greater than Value greater Value greater Restricted
SHS 100m but than SHS 100m than SHS 200m Domestic
does not exceed but does not but does not Bidding or
SHS 200m exceed SHS exceed SHS Restricted
200m 500m International
Biding
(Shortlist or
Public Bidding)
Value greater than Value greater Value greater Quotation or
SHS 5m but does than SHS 5m than SHS 5m Proposal
not SHS 100m but does not but does not bidding
SHS 100m SHS 200m
Not exceeding SHS Not exceeding Not exceeding Micro
5m SHS 5m SHS 10m Procurement
(Internal bid
opening and No
contracts
committee
approval)
No threshold No threshold No threshold Direct
Procurement

Thresholds for Consultancy Service

For Procurement from consultancy firms:
Publication of a notice inviting expression of interest and developing a
shortlist shall be used if the estimated value of the consultancy services
exceeds Shs,200,000,000=
Short listing without publication of expression of interest shall be used if
the estimated value of the consultancy services does not exceed
Shs.200,000,000=.
Procurement of individual consultant:
 Publication of a notice inviting expression of interest and
developing a shortlist shall be used if the estimated value of the
consultancy services exceeds Shs.50,000,000=.
 Short listing without publication of expression of interest shall be
used if the estimated value of the consultancy services does not
exceed Shs.50,000,000=.

PROCUREMENT METHOD CONDITIONS/ RULES FOR USE

Open Domestic Bidding  Open to all bidders following
a public advertisement of a
bid notice
 Bidding documents maybe
issued to prospective bidders
at a fee
 Public bid opening shall be
held in accordance with
procedures prescribed
Open International Bidding  Used instead of open
domestic bidding where
competition will not be
effective without foreign
bidders or where foreign bids
increase value for money
 Open to all bidders following
the Public advertisement of
the bid notice
 Bidding documents may be
issued at a fee Public bid
shall be held
Restricted Domestic Bidding May be used where:
 The supplies, works or
services are available only
from a limited number of
providers

There is insufficient time for
an open bidding procedure
in an emergency situation
 The Estimated value of
Procurement or disposal
does not exceed the
threshold stated in the
procurement guidelines
issued
The process shall conform with the  The invitation to bid shall be
following procedures addressed to a limited number of
potential bidders without
advertising the opportunity in a
 bid notice
 The selection of bidders shall be
in accordance with the
procedures prescribed by
regulations
 A public bid opening shall be
held. Restricted to international
bidding used where the supplies,
works or services are available
only from a limited number of
bidders
 Invitation to bid shall be
addressed to a limited number of
potential bidder
 Selection of bidders shall be in
accordance with the procedure
prescribed
 Public bid opening shall be held
Quotations and Proposal Used where:
 There is insufficient time for
an open or restricted bidding
procedure such as in an
emergency situation
 The estimated value of the
procurement or disposal
does not exceed the
threshold
Micro Procurement  Used where the estimated
value of the procurement
does not exceed the
established threshold
Direct Procurement Used where
 There is insufficient time for
any other procedure such as
in an emergency situation
 The works, services or
supplies are available from
only one provider an existing
contract could be extended
for additional works, services
or supplies of a similar
nature and no advantage
could be obtained by further
competition, if the prices on
the extended contract are
reasonable
 additional works, services or
supplies are required to
becompatiable with the
exisisting supplies, works or
services and its
advantageous or necessary
to purchase the additional
services or supples from
original supplies provided
the prices on the additional
contract are reasonable
 The value of the new works,
services or supplies shall not
exceed 15% of the original or
existing contract value
 The original or existing
contract shall have been
awarded through a
competitive procurement
process
Methods of disposal are provided for under Sec. 87 of the Act and Regulation
123 of the LG (PPDA) Regulations, 2006 and they are

 Public auction;
 Public bidding;
 Sale to public officer;
 Destruction;
 Direct negotiations;
 Conversion;
 Trade-in;
 Transfer to another PDE and Donation
Practical Steps of ensuring that structure constructed stands.
Procurement Plan
Section 58 of the PPDPA Act is to the effect that a procuring and disposing
unit shall plan its procurement and disposal in a rational manner.
Further, Section 59(2) of PPDA Act provides that the procurement shall only
be initiated or continued after confirming that funding is available.
Section 59(3) PPDPA gives the Accounting Officer authority to approve the
procurement or disposal requirements before the procurement process
commences.
After approval by the accounting officer, he or she then sends their acquisition
to the Procurement and Disposal Unit.
The procurement and disposal unit is required to prepare solicitation
documents and renew specifications in accordance with Section 62 of the
PPDPA Act and under Section 31(g) the PDU is also required to recommend
the Procurement and disposal procedures.
Assessment of market price by the Accounting officer.
Section 26(4) of the PPDPA Act provides that prior to procurement process,
an Accounting officer shall undertake an assessment of the market price.
Regulation 5 of the PPDPA (Rules and method for procurement of
supplies, works and non-consultatory services) Regulations provides how
the Accounting Officer ascertains market price which include comparing
similar bids or contracts, prices published or advised by a potential adviser
and through a buildup of estimate of prices of components of the works.
Procurement requisition.
Once the procurement plan is prepared and approved, the requisition is then
prepared having requirements for processing. It should include specification of
the items required so as to enable bidders understand the item required.
Section 59 of the PPDPA Act provides that all procurement and disposal
requirements shall be documented prior to the commencement of any
proceedings either procurement or disposal.
Proper description as provided for under Section 60 of the PPDPA Act of the
procurement required is essential at the beginning of the procurement and
enables bidders to understand what they are to supply.
Confirmation of the availability of funds.
The Accounting officer under Section 26(f) confirms the availability of funds in
the procuring and disposing entity.
Preparation of biding documents.
The procurement and disposal unit prepares the biding documents under
Section 31(i) of the PPDPA Act
Proposing a Procurement method.
By virtue of Section 31(g), the Procurement and Disposal unit proposes the
method and procure.
Even Regulation 6 the PPDPA (Rules and method for procurement of
supplies, works and non-Consultation services) Regulations, 2014,
provides that the Procurement and Disposing entity will use one of the
procurements provided by the Act but the choice of procurement to be
employed is determined by the estimated value of the requirement,
circumstances of the required supply and type of supply needed.
Approval of bidding documents, procurement method, and shortlist
bidders.
The Contracts Committee by virtue of Section 28(c) and (d) of the PPDPA Act
approves the bidding documents and the procurement method proposed by the
Procurement and disposal Unit.
The Committee is established by the Accounting officer under Section 26(1)(a).
Section 33 of the PPDPA Act, provides for a situation where the contractual
committee disagrees with the submissions of the Procurement and Disposal
Unit have a disagreement. The committee will return the submission to the
PDU for review or request for independent advice from the PPDPA authority
Submission for approval to the contracts committee;
The choice of the procurement method shall then be subject to approval by the
contracts committee as provided for under S.79 (2) of the Act.
Drafting and Advertising Bid Notices;
Section 31 (j) of the Act is to the effect that the procurement and disposal unit
is responsible for preparing advertisements of bid opportunities to the
Procurement and Disposal Unit. The bid notices are placed in newspapers of
wide circulation and standard solicitation documents are issued by PDU
Receiving of and opening Bids;
Bids are received by the PDU as provided for by Section 32(f) of the Act.
Regulation 65 (1) Of the PPDA (Rules and Methods for procurement of
Supplies, works and non-consultancy Services) Regulations No. 8 of 2014
provides that the public opening of bids is managed by the PDU and witnessed
by a member of the contracts committee or a nominee of the user department.
Evaluation of the Bids;
Once bids are opened, they are evaluated by the Evaluation Committee
appointed by the Contracts Committee. Section 71 of the Act is to the effect
that evaluation method used is dependent on the type, value and complexity of
the procurement or disposal.
The Evaluation’s committee report
The Evaluation Committee makes a report to the contracts committee which
either approves or rejects it. Regulation 35(4) of the PPDPA (Evaluation)
Regulations, 2014 is to the effect that the evaluation report shall be submitted
to the contracts Committee for approval. The best evaluated bidder is picked by
the contracts committee and all bidders are informed by the accounting Officer.
Contract awarded to the best evaluated offer
S.52 of the PPDA Act provides that a contract shall be awarded to the bidder
with the best evaluated offer ascertained on the basis of the methodology and
criteria detailed in the bidding documents.
S. 76(2) PPDA Act provides that an award shall not be confirmed by a
procuring and disposing entity until the period specified by regulations made
under this Act has lapsed and funding has been committed in the full amount
over the required period.
Further, Regulation 7 of Public Procurement and Disposal of Public Assets
(Contracts) Regulations provides for the procedure for awarding a contract. A
procuring and disposing entity shall not issue a contract document, purchase
order, or other communication in any form, conveying acceptance of a bid that
binds a procuring and disposing entity to a contract with a provider, until—
 the contracts committee makes a decision to award the contract;
 the accounting officer confirms that the contract price is not higher than
the market price established prior to the commencement of the
procurement process;
 the accounting officer confirms that the procurement is not subject to
any administrative review
 the full amount of the funding for the period of the proposed contract is
committed; and
 all relevant agencies, including, the Attorney General make the necessary
approval of the contract.
The accounting officer or a person appointed by the accounting officer shall
monitor the performance of the contract in accordance with Regulation 51 of
the PPDPA (Contracts) Regulations, 2014.
Regulation 53(3) (g) of the PPDPA (Contracts) Regulations, 2014 is to the
effect that contracts manager shall submit to the accounting officer and the
procurement and disposal unit. A monthly report on the progress of the
contract.
Emergency procurement.
Section 3 of the Procurement and Disposal of Public Assets Act (PPDPA) states
that “emergency” means circumstances which are urgent, unforeseeable and
not caused by dilatory conduct.
Emergency situation means a circumstance which is urgent or unforeseeable
or a situation which is not caused by dilatory conduct where –
 Uganda is seriously threatened by or actually confronted by a disaster,
catastrophe, war or an act of God.”
Section 55 of Public Procurement and Disposal of Public Assets Act
(PPDPA) stipulates that public procurement and disposal of assets shall be
done in accordance with the rules set out in this Part of Act, any regulations
and guidelines made under this Act.
In addition, Section 58(1) Public Procurement and Disposal of Public Assets
Act (PPDPA) is to the effect that a procuring and disposing entity has to
prepare and submit the secretary to the treasury and to the authority its
annual procurement plan for the following year in accordance with the budget
procurement procedures issued by the Minister.
However, there are exceptional circumstances where a procuring and disposing
entity can acquire the services without having submitted its annual
procurement plan as per Section 58(7) Public Procurement and Disposal of
Public Assets Act (PPDPA).
Section 58(7); “Procurement shall not be carried out outside the procurement
plan except in cases of emergency situations,”
Emergency situations as seen earlier as per Section 3 include disaster,
catastrophe, war or an act of God.
ADMINISTRATIVE REVIEW PROCESS IN THE PROCUREMENT CYCLE
The Procurement tribunal is a quasi-Judicial body established by the PPDA Act
2003 as amended.
Administrative review is a statutory relief provided to a bidder under Sec 89 of
the PPDDA Act as amended for any omission or breach by a PDE of the Act or
any regulation or provision of bidding documents including practices.
The Administrative review process under the Act has two progressive levels;
The first level being review by the accounting officer pursuant to sec 89 of
PPDA (Amendment) Act 2021. This is restricted to only the Bidder
The Second level being the review of the decision of the PDE by the Tribunal
pursuant to Section 91 of the PPDA (Amendment) Act 2021
Sections 89(8) and (9), Sec 91 I (1)(a)-(c) provides for circumstances under
which the Tribunal can exercise its jurisdiction to review decisions of a PDE.

ROLE OF THE LEGISLATIVE AND PROCEDURAL SERVICES DEPARTMENT

IN THE PROCUMENT PROCESS.
It must be noted that the department in itself is a user department.
Generally, as the user department it has the functions listed in the PDDA Act
as listed above.
During the Legislative Process, say in the process of having a Bill drafted, the
Department prepares the Local Purchase Order requisitioning for copies of the
proposed Bills and Publishing in the Gazette.
After the Bill is passed, the Department Prepares Copies of Assent and this
goes through the procurement process as well