SEMINAR

PAPER
By: Eyob Muhdin ▪ Coopw /027/05 ▪ eyobmuhdin@gmail.com

Ethiopian tender Practice

Seminar Paper

For the attainment of academic degree of post graduate program in Cooperative

development and leadership, Entrepreneurial leadership

Submitted to:

Hawassa University

Faculty of Business and Economic

Department of Cooperative

Course instructor of Entrepreneurial leadership; CODL 512

Submitted by:

Eyob Muhdin

Coopw/027/05

E-mail: eyobmuh1984@hotmail.com, eyobmuhdin@gmail.com

Submission date:

Monday, September 16, 2013

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Contents
Introduction .................................................................................................................................................. 4
Critical literature Review............................................................................................................................... 5
Type and Scope of Contract .......................................................................................................................... 5
Selection of Bidders ...................................................................................................................................... 5
Preparing and Issuing a Bidding Document .................................................................................................. 6
Bid Preparation and Submission ................................................................................................................... 7
Bidding Period and Bid Receipt ..................................................................................................................... 7
Bid Opening................................................................................................................................................... 7
Bid Evaluation ............................................................................................................................................... 7
Bid Acceptance and Contract Award and Placement ................................................................................... 8
Invitation to Bid Notices ............................................................................................................................... 8
Invitation to Bid Letters ................................................................................................................................ 9
Bid Data Sheet............................................................................................................................................... 9
Evaluation and Qualification Criteria ............................................................................................................ 9
Additional Evaluation Factors ..................................................................................................................... 10
Qualification Criteria ................................................................................................................................... 10
Example Financial Capability Criteria...................................................................................................... 11
Example Experience Criteria ................................................................................................................... 11
Example Supply Capacity Criteria ........................................................................................................... 11
Bidding Forms ............................................................................................................................................. 11
Country Eligibility ........................................................................................................................................ 12
Statement of Requirements........................................................................................................................ 12
Delivery and Completion Schedule ............................................................................................................. 13
Technical Specifications and Compliance Sheet ......................................................................................... 13
Drawings ..................................................................................................................................................... 14
General Conditions of Contract .................................................................................................................. 15
Special Conditions of Contract .................................................................................................................... 15
Notes on the Letter of Acceptance ............................................................................................................. 15
Letters to Unsuccessful Bidders .................................................................................................................. 15
Bid Preparation and Submission ................................................................................................................. 16

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Bidding Period and Bid Receipt ................................................................................................................... 16

Bid Opening................................................................................................................................................. 16
[Conclusion and recommendation] ............................................................................................................. 17
Bibliography ............................................................................................................................................... 18

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Introduction
Procurement of goods and services, essential to the operation of a company or an organization,
often involves substantial expenditure. Past corruption cases shows that it is an area most
vulnerable to corrupt manipulation and malpractice. Any corruption in procurement would not
only bring financial losses upon a company or an organization, but also adversely affect its
reputation as a trustworthy partner for business. To ensure “value for money” when making
purchases and to prevent impropriety in the process, it is important for the company or
organization to put in place adequate safeguards in the system.

Hence, it is a common practice in the business environment that organizations require work done for
them, or are supplied with goods/services in bulk. In such cases, it would be of great help to familiarize
yourself with the existing tender guides and bid procedures. Accordingly this paper will present the
existing tender and bidding practices in Ethiopia.

But before that, we should have to look at the meaning of tender. Tender is a means by which an
organization invites suppliers to submit competitive offers for prices to render their services. There are
different types of tenders practice in Ethiopia: Open tendering through which public bodies prepare the
documents and follow the steps required for open tendering provided for in articles 22 – 51 of the
procurement manual of the Ministry of Finance (MoF). The following steps should be followed when
procuring under alternative methods of procurement, except where specifically provided for. Here, the
Procurement Unit is responsible for the preparation and issue of the Bidding Document, but must
obtain approval of the document from the Tender Committee, before issuing the document or
publishing any Invitation to Bid Notice. The second type of tendering practice is two-stage tendering
which has three steps to be followed. The third type is known as restricted tendering. This type of
tendering practice is applied ; when public bodies engage in restricted tendering on the grounds referred
to in article 16(a) of the procurement manual of the MoF, it shall solicit tenders from all suppliers from
whom the goods, construction or services to be procured are available; and when the public body engages
in restricted tendering on the grounds referred to in article 16(b) of the procurement manual of the MoF, it
shall select suppliers from whom to solicit tenders in a non-discriminatory manner and it shall select a
minimum of 3 suppliers from the approved suppliers list. For details on Tender procedures you may refer
to the booklet of EBDSN entitled "Marketing Strategies".

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Critical literature Review

Under Federal Democratic Republic of Ethiopia Public Procurement and Property Disposal
Service, the Proclamation and Directives on Public Procurement detail the full procurement
processes, rules and procedures and the procurement methods to be followed by Procuring Entities.
Accordingly, there is standard bidding document (SBD) at national level developed by the federal
democratic republic of Ethiopia. This SBD for the Procurement of Goods is suitable for use under Open
International Tendering, either with or without pre-qualification. It is also suitable for use under
Restricted Tendering and hence show all the tendering practice undertaken in Ethiopia. In addition an
alternative SBD is available for Open and Restricted National Tendering. Hence, to see the overall
practice, let’s begin with the Type and scope of contract.

Type and Scope of Contract

This SBD is suitable for any scope of intended contract including simple supply and deliver contracts and
those for supply, delivery, installation and commissioning. Alternative specialized SBDs are available for
the procurement of text books, health sector goods and IT systems.

Selection of Bidders
The method for selection of Bidders will depend on the procurement method being used and whether
or not a pre-qualification has been conducted. Where Open Tendering is used without pre-
qualification, the PE must publish an Invitation to Bid notice, so that bidding is open to all interested
bidders. A standard format, with guidance notes on its completion, is provided later in this User
Guide. The Invitation to Bid Notice must be approved by the Tender Committee before publication.
The notice must be published in at least one national newspaper of general circulation. Where
tendering is international, the notice must also be published, in a newspaper using the same language
as the notice and of sufficient circulation to attract foreign competition. Notices should also be
published on the internet, wherever possible. PEs should also ensure that bidding documents are
finalized and approved before publishing the Invitation to Bid notice, to avoid any delays in the
process.

Where Open Tendering is used with pre-qualification, the bidders invited will be those selected
during the pre-qualification process. There is therefore no need to publish an Invitation to Bid notice,
but the bidding document should be accompanied by an Invitation to Bid letter. A sample letter, and
guidance notes on completing it, are included later in this User Guide. The letter should be approved
by the Tender Committee, at the same time as the bidding document.

Where Restricted Tendering is used, the bidders invited will be those included on the shortlist. There
is normally no need to publish an Invitation to Bid notice, but the bidding document should be
accompanied by an invitation to bid letter. However, where restricted tendering is used on the
grounds that there are a limited number of bidders able to supply the goods, a notice must be

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published at least 15 days before the issue of the bidding document. This notice will offer any
additional bidders the opportunity to express their interest in being added to the shortlist. A sample
letter and guidance notes on completing an invitation to bid letter are included later in this User
Guide. The letter should be approved by the Tender Committee, at the same time as the bidding
document. The shortlist must include sufficient bidders to ensure effective competition and should be
approved by the Tender Committee at the same time as the bidding documents.

Preparing and Issuing a Bidding Document

The Procurement Unit is responsible for the preparation and issue of the Bidding Document, but
must obtain approval of the document from the Tender Committee, before issuing the document or
publishing any Invitation to Bid Notice. The Procurement Unit must use the appropriate SBD, as this
is a mandatory requirement for contracts to be funded by the Government of the Federal Democratic
Republic of Ethiopia. In deciding the deadline for Bid Submission, the Procurement Unit shall allow
Bidders sufficient time for obtaining and studying the Bidding Document, preparing complete and
responsive bids and submitting the bids. Procuring Entities are required to comply with the minimum
bidding periods given in the Regulations.

Where a Bid Notice has been published, the PE must issue Bidding Documents promptly to all
Bidders who request them and pay any required fees. A record must be kept of the Bidders to whom
Bidding Documents have been issued. Receipts must be issued for all fees paid. Where the Bidding
Document is issued to pre-qualified or short-listed bidders, the documents must be issued to all
bidders at the same time and must be issued early enough to ensure compliance with the minimum
bidding period given in the Directives. A record must be kept of the issue of all bidding documents.

The Procuring Entity and Bidder should keep in mind that:

‚ The Procuring Entity is responsible for the preparation and issuing of the Bidding
Document.
‚ The Procuring Entity shall use the SBD issued by the Public Procurement Agency, as this is
a mandatory requirement for contracts funded by Public Funds.
‚ The Procuring Entity should prepare Bidding Documents using the published version of the
SBD without suppressing or adding text to the sections of the document to be used without
modification.
‚ The Procuring Entity shall allow Bidders sufficient time for studying the Bidding
Document, preparing complete and responsive bids and submitting the bids.

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Bid Preparation and Submission

The Bidder is responsible for the preparation and submission of its Bid. During this stage, the
Procuring Entity shall:
‚ Promptly respond to requests for clarifications from Bidders and amend, as needed, the
Bidding Documents.
‚ Amend the Bidding Documents only with the appropriate approvals in accordance with the
Procuring Entity’s procedures and the Public Procurement Proclamation.

Bidding Period and Bid Receipt

The Bidder is responsible for the preparation and submission of its Bid. During the bidding period,
the Procuring Entity shall:
1. Hold any pre bid meeting and issue minutes promptly;
2. Promptly respond to requests for clarifications from Bidders;
3. Issue amendments to the Bidding Documents if necessary;
4. Receive and record sealed bids from Bidders or make a Bid Box available up to
the deadline for bid submission;
5. Close bidding at the precise date and time of the deadline and ensure that no late
bids are received;
6. Keep all bids received secure until the time for bid opening.

Bid Opening
The Tender Committee of the Procuring Entity is responsible for the Bid Opening, which is a critical
event in the bidding process. The Tender Committee must remember that inappropriate procedures at
Bid Opening are usually irreversible and may require cancellation of the Bidding Process with the
consequent delays and waste of time and resources.

Bid Evaluation
The Tender Committee, assisted by a Technical Committee if required, is responsible for the
evaluation of all bids received. The Tender Committee must remember that mistakes committed at
bid evaluation may later prompt complaints from Bidders, requiring reevaluation of the bids, with the
consequent delays and waste of time and resources. The Tender Committee shall:
‚ Maintain the bid evaluation process strictly confidential
‚ Reject any attempts or pressures to distort the outcome of the evaluation, including fraud and
corruption
‚ Strictly apply only and all of the evaluation and qualification criteria specified in the Bidding
Documents to determine the lowest evaluated bid and to make a recommendation for award
of contract.

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Upon completion of the Bid Evaluation, the Tender Committee shall be requested to make a Contract
Award recommendation to the head of the Procuring Entity. It is important to note that the Contract
Award decision by the head of the Procuring Entity is not a contract, it is a decision to award a
contract to the bidder who submitted the lowest evaluated bid.

Bid Acceptance and Contract Award and Placement

Bid acceptance and award and placement of a contract can be confusing for both parties if there is
not a precise and specified procedure for award of contracts. The procedure specified in the
Proclamation and Directives provides a sequence of events based on the need to recognize Bidders’
rights to appeal against the conduct of the evaluation and the need for a contract to be placed as soon
as is practical after a decision to award has been approved. The following procedure is required under
the Proclamation and Directives:
‚ The head of the Procuring Entity makes a contract award decision, based on the
recommendation of the Tender Committee.
‚ The Procuring Entity notifies all Bidders of the result of the evaluation.
‚ After a period of five working days, if no complaint has been received by the Procuring
Entity, the PE awards the contract by issuing a Letter of Acceptance to the successful bidder.
‚ The contract will be confirmed by issue of a full conformed Contract Document.
PEs should note that the Letter of Acceptance and the Contract Document should not contain any
provisions or conditions which vary from those in the Bidding Document, or the Bidder’s Bid,
including any subsequent clarifications. Any such modifications should be agreed by the Bidder in
writing before a contract award decision is made. The Contract Document comprises those papers
contained at Section 9 of the Bidding Document and it is at the stage of contract award that these can
be completed.

Invitation to Bid Notices

Invitation to Bid Notices must be published under the Open Tendering method, unless a
prequalification has been conducted. They are designed to provide information that enables potential
bidders to decide whether to participate in a bidding process. Apart from the essential items listed in
the draft below, the Invitation to Bid Notice should also indicate any important bid evaluation criteria
(for example, the application of a margin of preference in bid evaluation) or qualification
requirement (a minimum level of turnover or experience).

The Invitation to Bid Notice is for publication purposes only and is not a part of the Bidding
Documents. A brief description of the type of Goods and Related Services should be provided,
including quantities, location of project, and other information necessary to enable potential bidders
to decide whether to respond to the invitation.

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Invitation to Bid Letters

Invitation to Bid letters are issued to short-listed bidders under Restricted Tendering or where bidders
have been pre-qualified. They are used to invite specific Bidders who are felt to have the prerequisite
skills, capacity or qualifications to fulfil a requirement. The letter should be signed and the seal of the
Procuring Entity should be affixed. A brief description of the type of Goods and Related Services
should be provided, including quantities, location of project, and other information necessary to
enable potential bidders to decide whether to respond to the invitation. If Bidding Documents require
bidders to have specific experience or capabilities, such restrictions should be included in this
paragraph.
It should be noted that the Invitation to Bid Letter should be addressed to all Bidders that have either
pre-qualified or have been selected for restricted tendering so that each Letter indicates the names of
all Bidders that have been invited to bid. Additional information such as details of any proposed pre-
bid meeting should also be included in the invitation to bid letter.

Bid Data Sheet

The Bid Data Sheet (BDS) contains information and provisions that are specific to a particular
bidding process. The Procuring Entity must specify in the BDS only the information that the ITB
request be specified in the BDS. All information shall be provided, no clause shall be left blank. To
facilitate the preparation of the BDS, its clauses are numbered with the same numbers as the
corresponding ITB clause. This Guide provides information to the Procuring Entity on how to enter
all required information, and includes a BDS format that summarizes all information to be provided.

Evaluation and Qualification Criteria

The purpose of the Evaluation and Qualification Criteria (EQC) is to specify the criteria that the
Procuring Entity will use to evaluate the bids and post-qualify the lowest-evaluated bidder. The
Procuring Entity must prepare the EQC and include it as a part of the Bidding Documents. The EQC
is not a Contract document and, therefore, it is not a part of the Contract. The purpose of the
Evaluation and Qualification Criteria (EQC) is to inform Bidders of the criteria that the Procuring
Entity will use to evaluate the bids and post-qualify the bidder submitting the lowest evaluated bid.
This is to ensure that the evaluation is fair and treats all Bidders in the same manner. It also should
assist Bidders to prepare responsive bids which meet the PE’s needs and are competitive. The
Procuring Entity must prepare the EQC and include it as a part of the Bidding Documents.

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The EQC is not a Contract document and, therefore, it is not a part of the Contract. Hence, is to be
added in four main areas:
‚ Additional evaluation factors to be included in the evaluated price;
‚ The evaluation of multiple contracts, where bidders are permitted to bid for separate lots or
packages;
‚ The application of a margin of preference; and
‚ Post-qualification criteria.

Additional Evaluation Factors

In addition to the bid price, the financial evaluation will sometimes take into account other factors.
‚ The cost of inland transportation, insurance, and other costs within the Federal Democratic
Republic of Ethiopia incidental to delivery of the goods to their final destination. [NB this
factor should not be used if the price for these services has already been requested as part of
the bid price as per ITB Clause 14.6(a) (iii).]
‚ The delivery schedule offered in the bid.
‚ Any deviations in the payment schedule from that specified in the Special Conditions of
Contract.
‚ The cost of components, mandatory spare parts, and service.
‚ The availability in the Federal Democratic Republic of Ethiopia of spare parts and aftersales
services for the equipment offered in the bid.
‚ The projected operating and maintenance costs during the life of the equipment.
‚ The performance and productivity of the equipment offered.

Qualification Criteria
The Procuring Entity should indicate in this part whether or not post-qualification criteria will be
applied to the bidder submitting the lowest evaluated bid and the criteria which will be applied.
Where a pre-qualification has been conducted or post-qualification is not considered necessary, this
should be stated here, with the words “No post-qualification criteria will be applied.” Where post-
qualification is applied, the criteria should be evaluated on a pass or fail basis only. Criteria will
normally fall into three categories of financial capability, experience and supply capacity, but others
may be included if appropriate.

Financial capability criteria are used to determine whether a Bidder has the financial capacity to
successfully perform the Contract. They should not be used in relation to the financial evaluation in
any way.
Experience criteria are required to ensure that the Bidder has sufficient experience to perform the
contract properly, but should not be excessive or restrict competition unnecessarily.

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Supply capacity criteria are used to ensure the Bidder is capable of supplying the type, size, and
quantity of the Goods required within the delivery periods required. Typical examples are given
below, but the actual criteria included must be relevant to the goods being procured. The Procuring
Entity must state the documents required from Bidders, as evidence of their qualifications.

Example Financial Capability Criteria

Financial Situation
The Bidder shall provide audited statements of accounts for the last 3 years, demonstrating:
‚ a liquidity ratio
‚ an indebtedness ratio
‚ a profitability ratio
‚ Availability of Financial Resources
The Bidder shall provide bank references, demonstrating the availability of sufficient funds and/or
credit to successfully perform the contract. Litigation The Bidder shall provide details of all claims,
arbitration, or other litigation, pending or already resolved, for the past 5 years. All pending litigation
shall in total not represent more than [insert percentage] percent of the Bidder's net worth.

Example Experience Criteria

The Bidder shall provide details of the successful completion contracts of a value greater than for
similar Goods and Related Services in the Federal Democratic Republic of Ethiopia/the region during
a period of three years ending on the bid submission deadline. The Bidder shall provide evidence that
it has at least [insert number] years’ experience of providing the Goods and Related Services
required.

Example Supply Capacity Criteria

The Bidder shall demonstrate that it has available production capacity to successfully perform the
assignment. The proposed contract shall not represent more than [insert percentage] percent of the
Bidders annual turnover. The Bidder shall demonstrate that it has facilities or representation in and is
able to provide full maintenance and servicing facilities to support the goods.

Bidding Forms
The Procuring Entity must include all bidding forms that the Bidder must complete and include in its
bid in the Bidding Document. As specified in Section 4 of the Bidding Document, these forms are the
Bid Submission Form, the Price Schedules, the Bid Security Form and the Manufacturer’s
Authorization. As the Bidder (or a financial institution or manufacturer) is required to complete these
Forms, guidance notes are included on the forms (in bold between square brackets) in the SBD.
These guidance notes should not be deleted by the Procuring Entity prior to the issue of the Bidding
Document.

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Country Eligibility
All countries are eligible except countries subject to the following provisions.
‚ A country shall not be eligible if:
‚ As a matter of law or official regulation, the Government of the Federal Democratic Republic
of Ethiopia prohibits commercial relations with that country, provided that the Government is
satisfied that such exclusion does not preclude effective competition for the provision of the
goods required; or
‚ By an act of compliance with a decision of the United Nations Security Council taken under
Chapter VII of the Charter of the United Nations, the Government of the Federal Democratic
Republic of Ethiopia prohibits any import of goods from that country or any payments to
persons or entities in that country.
The list of eligible countries may differ, where the procurement is funded by a donor or where other
restrictions are imposed by Government policy. In such cases, the Procuring Entity should amend the
text accordingly, inserting either a list of eligible countries or a list of ineligible countries. The list of
countries should be checked directly with the Government or donor.

Statement of Requirements
The Statement of Requirements (SR) shall provide sufficient information as to enable bidders to
efficiently and accurately prepare bids that are realistic and competitive. The Statement of
Requirements (SR) is a Contract document and, therefore, it is a part of the Contract. The Procuring
Entity must prepare the SR and include it as a part of the Bidding Documents. The SR should be
complete, precise, and clear. An incomplete, imprecise, or unclear SR may prompt bidders to require
clarifications from the Procuring Entity or to submit conditional bids or bids that may be based on
different understandings of the Procuring Entity’s requirements. Depending on the nature of the
clarifications, the Procuring Entity may need to amend the Bidding Documents and eventually to
extend the bid-submission deadline. Conditional bids may have to be rejected. Bids that are not
comparable could not be evaluated.

The Procuring Entity shall assign experienced staff to draft the SR in a manner permitting the widest
possible competition, while at the same time clearly specifying the required standards of
workmanship, the characteristics of materials and performance of the Goods, and the delivery and
completion of the Goods and Related Services. Only by following this approach will the Procuring
Entity ensure that the objectives of economy, efficiency, and fairness in procurement can be realized
as envisaged under open tendering procedures. The Statement of Requirements consists of four parts:
‚ List of Goods and Related Services
‚ Delivery and Completion Schedules
‚ Technical Specification and Compliance Sheet
‚ Drawings

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Delivery and Completion Schedule

The purpose of the Delivery and Completion Schedule (DCS) is to specify the delivery dates and
places for each of the Goods and the delivery places and completion dates for each of the Related
Services as listed in the List of Goods and Related Services. The DCS, as part of the Statement of
Requirements, constitutes a Contract document and, therefore, will form part of the Contract. The
Procuring Entity must prepare the DCS and include it as a part of the Statement of Requirements. In
preparing the DCS, the Procuring Entity should take into account the following:
‚ The delivery and completion dates should be realistic. Unrealistically short delivery or
completion expectations may result in restricted competition or may prompt complaints from
prospective bidders.
‚ The date or period for delivery should be carefully specified, taking into account that the
delivery terms stipulated must be consistent

Technical Specifications and Compliance Sheet

The purpose of the Technical Specifications and Compliance Sheet (TSCS) is twofold. Firstly it is
used to define (in column b) the technical characteristics of the Goods and Related Services required
by the Procuring Entity. Secondly it provides the facility for the Bidder to compare the specification
of the goods offered (in column c) with those required. This facilitates later technical evaluation and
focuses Bidders on compliance to the specification required.

The TSCS, as a part of the Statement of Requirements, constitute a Contract document and will,
therefore, form part of the Contract. The Procuring Entity must prepare the TSCS and include them
as a part of the Bidding Documents, as applicable to each Contract. In preparing the TSCS, the
Procuring Entity should take into account the following:
‚ ¨ Well-prepared TSCS will facilitate the examination, evaluation, and comparison of the bids
by the Procuring Entity, as the TSCS constitute the benchmarks against which the Procuring
Entity will verify the technical responsiveness of bids and subsequently evaluate the bids.
‚ The TSCS should require that all goods and materials to be incorporated in the goods be new,
unused, and of the most recent or current models, and that they incorporate all recent
improvements in design and materials, unless provided for otherwise in the contract.
‚ The TSCS should make use of best practices. Samples of specifications from successful
similar procurements in the same country or sector may provide a sound basis for drafting the
TS.
‚ The use of metric units is encouraged.
‚ Standardizing technical specifications under General Technical Specifications may be
advantageous, depending on the complexity of the goods and the repetitiveness of the type of
procurement. Technical Specifications should be broad enough to avoid restrictions on
workmanship, materials, and equipment commonly involved in manufacturing similar kinds
of goods, even if these may not necessarily apply to a particular procurement. Particular

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technical requirements for a particular procurement would be in each case specified through
deletions or addenda to the Technical Specifications.
‚ The specification of standards for equipment, materials, and workmanship shall not be
restrictive. Recognized international standards should be specified as much as possible.
Reference to brand names, catalogue numbers, or other details that limit any materials or
items to a specific manufacturer should be avoided as far as possible.
Where unavoidable, such item description should always be followed by the words “or substantially
equivalent.” When other particular standards or codes of practice are referred to in the TSCS,
whether from the Borrower’s or from other eligible countries, a statement should follow other
authoritative standards that ensure at least technical Specifications shall be fully descriptive of the
requirements in respect of, but not limited to, the following:
‚ Standards of materials and workmanship required for the production and manufacturing of
the Goods.
‚ Detailed tests required (type and number).
‚ Other additional work and/or Related Services required to achieve full delivery/completion.
‚ Detailed activities to be performed by the Supplier, and participation of the Procuring Entity
thereon.
‚ List of detailed functional guarantees covered by the Warranty and the specification of the
liquidated damages to be applied in the event that such guarantees are not met.
The TSCS shall specify all essential technical and performance characteristics and requirements,
including guaranteed or acceptable maximum or minimum values, as appropriate. Whenever
necessary, the Procuring Entity shall include an additional ad-hoc bidding form (to be an Attachment
to the Bid Submission Sheet), where the Bidder shall provide detailed information on such technical
performance characteristics in respect to the corresponding acceptable or guaranteed values.

When the Procuring Entity requests that the Bidder provides in its bid a part or all of the Technical
Specifications, technical schedules, or other technical information, the Procuring Entity shall specify
in detail the nature and extent of the required information and the manner in which it has to be
presented by the Bidder in its bid.

Drawings
The purpose of drawings is to specify locations, dimensions, materials to be used, stages of
manufacturing, and other characteristics of the Goods and Related Services. The Procuring Entity
should prepare appropriate drawings, as needed, and include them in the Bidding Documents. Such
drawings, as part of the Statement of Requirements, are Contract Documents and, will therefore,
form part of the Contract. Similarly, the Procuring Entity may request the Supplier to provide
drawings either with its bid or for approval.

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General Conditions of Contract

The GCC contain standard provisions that have been designed to remain unchanged and to be used
without modifying their text. The GCC clearly identify the provisions that may normally need to be
specified for a particular bidding process and require that such specification be introduced through
the SCC. The GCC are Contract documents and, will therefore form part of the Contract.

Special Conditions of Contract

The Special Conditions of Contract (SCC) contain provisions that the GCC require be specified for a
particular bidding process. The Procuring Entity should include at the time of issuing the Bidding
Documents all information or specification that the GCC indicate shall be provided in the SCC. No
SCC Clause should be left blank. To facilitate the preparation of the SCC, its clauses are numbered
with same numbers as the corresponding GCC clauses. This Guide helps the Procuring Entity on how
to input all information required. It includes a SCC format that summarizes all information to be
provided. The SCC are Contract will form part of the Contract.

Notes on the Letter of Acceptance

The Letter of Acceptance does not form part of the Bidding Document. However, it is the document
normally used to accept a bid, and therefore to form a contract, so it is essential that it is used
correctly by Procuring Entities. A Letter of Acceptance must not be issued prior to obtaining all
required approvals, including from the Tender Committee and head of the Procuring Entity and
ensuring that sufficient funds have been committed for the contract. A sample wording for a Letter of
Acceptance is included below. The letter should be signed and the seal of the Procuring Entity should
be affixed.

Letters to Unsuccessful Bidders

Procuring Entities are required to inform unsuccessful Bidders that their bids have been unsuccessful
and to inform them of the successful Bidder and provide brief reasons why their bid has failed.
Unsuccessful Bidders must be informed of the successful Bidder at least five working days prior to
contract award. A sample wording for a letter to an unsuccessful Bidder is included below. The letter
should be signed and the seal of the Procuring Entity should be affixed.

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By: Eyob Muhdin ▪ Coopw /027/05 ▪ eyobmuhdin@gmail.com

Bid Preparation and Submission

The Bidder is responsible for the preparation and submission of its Bid. During this stage, the
Procuring Entity shall:
‚ Promptly respond to requests for clarifications from Bidders and amend, as needed, the
Bidding Documents.
‚ Amend the Bidding Documents only with the appropriate approvals in accordance with the
Procuring Entity’s procedures and the Public Procurement Proclamation.

Bidding Period and Bid Receipt

The Bidder is responsible for the preparation and submission of its Bid. During the bidding period,
the Procuring Entity shall:
• Hold any pre bid meeting and issue minutes promptly;
• Promptly respond to requests for clarifications from Bidders;
• Issue amendments to the Bidding Documents if necessary;
• Receive and record sealed bids from Bidders or make a Bid Box available up to the
‚ deadline for bid submission;
‚ Close bidding at the precise date and time of the deadline and ensure that no late bids are
received;
‚ Keep all bids received secure until the time for bid opening.

Bid Opening
The Tender Committee of the Procuring Entity is responsible for the Bid Opening, which is a critical
event in the bidding process. The Tender Committee must remember that inappropriate procedures at
Bid Opening are usually irreversible and may require cancellation of the Bidding Process with the
consequent delays and waste of time and resources.

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By: Eyob Muhdin ▪ Coopw /027/05 ▪ eyobmuhdin@gmail.com

[Conclusion and recommendation]

In general the Ethiopian tender practice can be depicted in short like above description. Accordingly,
the standard bidding document of Ethiopia developed to provide Procuring Entities (PEs) with one
standard draft containing basic contractual provisions and safeguards which are required by the
Government of the Federal Democratic Republic of Ethiopia in the execution of public procurement
and the use of public funds.
The Standard Bidding Document for the Procurement of Goods has been designed to:
1. Simplify the drafting of a specific bidding document for Procurement of Goods and
Related Services by Procurement Units;
2. Minimize the time required by the Tender Committee to approve Bidding Documents
prior to release;
3. Reduce Bidders’ time and effort in the preparation of Bids; and
4. Facilitate and simplify the evaluation and comparison of bids and Contract award; by the
Procuring Entity.

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By: Eyob Muhdin ▪ Coopw /027/05 ▪ eyobmuhdin@gmail.com

Bibliography
Ministry of Revenue www.mor.gov.et
Ethiopian Customs Authority www.mor.gov.et/ecaweb/index.html

Ministry of Finance and Economic Development, Addis Ababa 1996

ABC of Taxes in Ethiopia (1942 – 1996)

Heidelberg Germany, 2008, Training Modules for Small and Medium Enterprises (SMEs), www.bds-
forum.net/training-modules

Federal Government of Ethiopia Ministry of Finance and Economic Development, PUBLIC FINANCE
MANAGEMENT ASSESSMENT AMHARA REGIONAL GOVERNMENT, October 17, 2010 (Final)

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