Scribd
Upload
114 views

Procurement

The document discusses key aspects of public procurement contracts and proceedings in Tanzania. It outlines the stages of procurement, relevant legislation, and principles of contracts that apply. The Public Procurement Act of 2004 is the primary law governing public procurement and establishes procedures, offenses, and penalties. A procurement contract involves a public body and a supplier/contractor and is guided by general contract principles. The document also describes the contents of tendering documents, requirements for guarantees, dispute resolution processes, and important records to maintain for procurement proceedings.

Uploaded by

Evarist Lema Member
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
114 views

Procurement

The document discusses key aspects of public procurement contracts and proceedings in Tanzania. It outlines the stages of procurement, relevant legislation, and principles of contracts that apply. The Public Procurement Act of 2004 is the primary law governing public procurement and establishes procedures, offenses, and penalties. A procurement contract involves a public body and a supplier/contractor and is guided by general contract principles. The document also describes the contents of tendering documents, requirements for guarantees, dispute resolution processes, and important records to maintain for procurement proceedings.

Uploaded by

Evarist Lema Member
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 5

LEGAL ASPECTS OF PUBLIC PROCUREMENT

The Procurement Contract and its legal implication:-

Procurement process involve successive stages: Stages of Procurement


 Initiation of requirement for goods or services
 Description of requirements and transmission
of need
 Selection and invitation to tenders
 Receiving and opening tenders
 Evaluation of tender
 Award of contracts
 Management of contract
 Closure of contracts

The Public Procurement Act No. 21 of 2004 is principal PPA 2004 principal
legislation which was enacted to regulate public legislation for regulation
procurement in the Government of United Republic of of public procurement.
Tanzania. The law provides procedures for carrying out The law provides:
procurement, creates offences and penalties. The  Procedures
legislation is a penal law.  creates offences
 Penalties.

In conducting public procurement other laws such Other laws related to


agency, sale of goods and general principles of common procurement
law of contract apply. It is important for officials dealing
with procurement to be familiar with relevant laws.

The Procurement Contract

A contract of procurement is governed by general principle Principles of contract


of contract like:

 Free consent
 Consideration
 Capacity to enter into contract
 Lawful object and consideration
 Offer and acceptance
 Intention to create legal relation

A procurement contract means any license, permit or other


concessions of authority issued by public body or entered
into between a public body and a supplier, contractor or
consultant resulting from procurement proceedings for
carrying out construction or related works or for supply of
any goods and services

Parties to the procurement contract: Parties to the


In general principles of law of contract a contract is an procurement contract
agreement between two parties or more persons. In any
contract there must be two parties or more. For purpose of
PPA the parties to contract are public bodies on one hand
and supplier, consultant or contractor on the other. Public
body can be the Government, a body corporate or statutory
or authority established for purposes of the Government.

Parties to the procurement contract must undergo some


formalities before they come to a formal agreement. The PE
for example invites for tender from prospective tenderers

Offer made by the supplier Offer


There can not be an offer from supplier; consultant or
contractor without procurement proceedings.

 An invitation to tender is invitation to treat and


not any offer
 The letter of invitation is just an intention of
procuring entity to enter into a contract with a
supplier
 The supplier or contractor and not the
employer is making the offer
 The employer is therefore obliged to accept the
lowest bid or indeed any bid or none

Acceptance by procuring entity Acceptance

Where the tender or proposal is successful the tenderer is


notified by the procuring entity of acceptance – Regulation
97.

 The notice should be in writing and signed by


authorized officer
 Enter into formal contract
 Where the solicitation documents stipulate that
the procurement contract is subject to approval
by higher authority. Must indicate the period
of time will take to obtain the approval.

2
Procurement Proceedings: Procurement
Proceedings:
A procurement proceeding means the events to be followed Events to
by a procuring entity or any approving authority when followed in
engaging in procurement. procurement

 Procurement process means successive stages


in the procurement cycle, including planning,
choice of procedure measure to solicit offers
from tenderers, examination and evaluation of
those offers, award of contract and contract
management.
 It is required that the records of the
procurement proceedings be preserved for
future reference.

The records that will be maintained:-


(a) Brief description of goods, works or service to Records
be procured or assets to be disposed off
(b) Names and address of suppliers – pre-qualified
or selected
(c) Name of winners
(d) Information of qualification and lack of
(e) Price or valuation of assets
(f) Evaluation Summary
(g) Rejection
(h) Other procurement methods
(i) Guarantee

Standard Procurement Documents (Goods) Contents of tendering


document
Section I Invitation for Tenders
Section II Instruction to Tenders
Section III Tender Data Sheet
Section IV General Condition of Contract
Section V Special Condition of Contract
Section VI Specification and Statement of Requirement
Section VII Activity Schedule
Section VIII Forms
Section IX Security Forms
Section X Undertaking by Tenderer an Anti-bribery
Policy/Code of Conduct and Compliance
Program

Guarantee Guarantee

3
 A formal contract entered between PE and successful
tenderer may require some guarantee, refuge or bond
for satisfactory performance of contract. If there is
such requirement, should apply to all suppliers.
 A Guarantee is a promise to answer for a debt where
third party contracts as surety. There three parties to
contract of guarantee i.e. Principal Creditor and
Guarantor
 The Guarantor is totally unconnected with the
contract

If the supplier, service provider or contractor whose tender


has been accepted fails to sign a written procurement
contract or fails to provide security for performance of
contract, procuring entity will select another supplier after
approval of tender board.

The result of award shall be published in Authority’s


website and journal Government Gazette and in at least two
newspapers

Dispute Settlement
The Public Procurement Act 2004 provides mechanism for Dispute Settlement
bidders to appeal for what they consider to be unfair
procurement decisions by the procuring entities or tender
boards.

A three-tier appeal mechanism is provided in the Act.


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

Still if the bidder is not satisfied with the decision of the


Head of the procuring entity or the Approving Authority he
may seek administrative review by the PPRA (section 81 of
PPA 2004)

Complaints not settled by PPRA and those against PPRA

4
shall referred to the Public Procurement Appeals Authority
(PPAA) (Section 82 of PPA 2004)
A bidder, who is not satisfied through the above dispute
review system, may still seek judicial review in accordance
with Section 85 of PPA, 2004.

Bidders should refer to the relevant sections of the PPA 2004


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

Relevant section and Regulations for the purposes of dispute


review are as follows: Part VI (i.e. Sections 77 to 85) of Public
Procurement Act 2004;
Part IX (i.e. Regulation 109 to 114) of Public Procurement
(Goods, Works, Non-Consultant Services and Disposal of
Public Assets by Tender) Regulations of April 2005
(GN.No.97) and Part XII (i.e. Regulations 104 to 109) of
Public Procurement (Selection and Employment of
Consultants) Regulations of April 2005 (G.N. No.98)

You might also like