Public Procurement Act 2011
Public Procurement Act 2011
ACT SUPPLEMENT
No. 9 30 December, 2011
to the Gazette of the United Republic of Tanzania No. 52 Vol. 92 dated 30th December, 2011
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY PROVISIONS
Section Title
PART II
PUBLIC PROCUREMENT POLICY DIVISION
PART III
THE PUBLIC PROCUREMENT REGULATORY AUTHORITY
1
No. 7 Public Procurement 2011
PART IV
INSTITUTIONAL ARRANGEMENTS
2
No. 7 Public Procurement 2011
PART V
PUBLIC PROCUREMENT PRINCIPLES
PART VI
METHODS OF PROCUREMENT AND PROCESSES
3
No. 7 Public Procurement 2011
PART VII
PUBLIC PROCUREMENT UNDER PUBLIC PRIVATE PARTNERSHIP
PART VIII
PROHIBITIONS
PART IX
DISPUTES SETTLEMENT
4
No. 7 Public Procurement 2011
PART X
GENERAL PROVISIONS
_________
SCHEDULES
_______
5
No. 7 Public Procurement 2011
NO. 7 OF 2011
I ASSENT,
PART I
PRELIMINARY PROVISIONS
Short title and 1. This Act may be cited as the Public Procurement Act,
commence-
ment 2011 and shall come into operation on such a date as the
Minister may, by notice in the Gazette, appoint.
6
No. 7 Public Procurement 2011
7
No. 7 Public Procurement 2011
8
No. 7 Public Procurement 2011
9
No. 7 Public Procurement 2011
10
No. 7 Public Procurement 2011
11
No. 7 Public Procurement 2011
“Minister” means the Minister for the time being responsible for
finance;
“non consultancy services” means any object of procurement other
than goods, works and consultancy services;
“obstructive practice” means acts intended to materially impede
access to required information in exercising a duty under this
Act;
“parastatal organisation” means -
Cap.212 (i) a body corporate established by or under any Act other
than the Companies Act;
(ii) any corporation registered under the Companies Act,
in which not less than fifty percent of the share capital
is owned by the Government or by another parastatal
organisation, or in the case of a company which is
limited by guarantee, where the Government has
undertaken to meet fifty percent or more of the
liabilities of that company; or
(iii) any company, management, board, association or
statutory body in which the Government has a
12
No. 7 Public Procurement 2011
13
No. 7 Public Procurement 2011
14
No. 7 Public Procurement 2011
15
No. 7 Public Procurement 2011
16
No. 7 Public Procurement 2011
17
No. 7 Public Procurement 2011
PART II
PUBLIC PROCUREMENT POLICY DIVISION
18
No. 7 Public Procurement 2011
19
No. 7 Public Procurement 2011
PART III
THE PUBLIC PROCUREMENT REGULATORY AUTHORITY
20
No. 7 Public Procurement 2011
21
No. 7 Public Procurement 2011
22
No. 7 Public Procurement 2011
23
No. 7 Public Procurement 2011
24
No. 7 Public Procurement 2011
25
No. 7 Public Procurement 2011
26
No. 7 Public Procurement 2011
27
No. 7 Public Procurement 2011
Disciplinary 16.-(1) The Authority shall, where during the course of its
action
against investigation or on the conclusion thereof, it finds the evidence
public of breach of duty, misconduct or criminal offence on the part
officers of an officer or member of a public body, refer the matter to
the competent authority
(2) The Authority shall refer the matter to the person or
persons competent to take disciplinary or any other appropriate
proceedings against the officer or member and submit a
special report to the Minister.
28
No. 7 Public Procurement 2011
29
No. 7 Public Procurement 2011
30
No. 7 Public Procurement 2011
31
No. 7 Public Procurement 2011
32
No. 7 Public Procurement 2011
33
No. 7 Public Procurement 2011
34
No. 7 Public Procurement 2011
35
No. 7 Public Procurement 2011
Annual 28.-(1) The Chief Executive Officer shall, not later than
Manage-
ment Plan three months before the end of each financial year, prepare and
and budget submit to the Board an Annual Management Plan which
include a budget for its approval for the next financial year.
(2) The Chief Executive Officer may at any time before
the end of a financial year prepare and submit to the Board for
approval any estimates supplementary to the budget of the
current financial year.
(3) No expenditure shall be made out of the funds of the
Authority unless that expenditure is part of the expenditure
approved by the Board under the estimates for the fiscal year
in which the expenditure is to be incurred, or in the
supplementary budget for that year.
(4) Upon approval of an annual budget or any
supplementary budget, the Board shall submit such budget to
the Minister for approval.
(5) Subject to subsection (4), the Minister shall determine
in respect of the Authority the amount of money which shall
be treated as public funds to be credited to the Consolidated
Fund and the amount of money which shall remain as funds of
the Authority for its budgetary purposes.
Annual 29.-(1) The Authority shall, within three months after the
Report
end of each financial year, submit to-
(a) the Minister, an Annual Performance Evaluation
Report in respect of that year's activities
consisting of-
(i) evaluation of the operations of the Authority
and the annual management plan;
(ii) an evaluation of operations of procuring
entities in respect to compliance;
(iii) audit findings, complaints investigated and
corrective actions taken;
(iv) any other information the Board may direct;
and
36
No. 7 Public Procurement 2011
PART IV
INSTITUTIONAL ARRANGEMENTS
37
No. 7 Public Procurement 2011
38
No. 7 Public Procurement 2011
Powers of 34. In the exercise of their powers under this Act, tender
tender boards
boards may -
(a) request for any professional or technical advice
from any appropriate body or person in Tanzania or
elsewhere, and
(b) examine such records or other documents and take
copies or extracts therefrom; and
(c) do all such acts and things as they may be
considered reasonable and justifiable to the
attainment of their objects.
39
No. 7 Public Procurement 2011
Functions and 36.-(1) The accounting officer shall have the overall
powers of responsibility for the execution of the procurement process in the
accounting
officer procuring entity, and in particular, shall be responsible for:
(a) establishing a tender board in accordance with this
Act;
(b) appointing the members of the tender board specified
in the Second Schedule;
(c) causing to be established a Procurement Management
Unit staffed to an appropriate level;
(d) approving all procurement opportunities;
(e) appointing the evaluation committee and negotiation
team;
(f) communicating award decisions;
(g) certifying the availability of funds to support the
procurement activities;
40
No. 7 Public Procurement 2011
41
No. 7 Public Procurement 2011
42
No. 7 Public Procurement 2011
43
No. 7 Public Procurement 2011
44
No. 7 Public Procurement 2011
45
No. 7 Public Procurement 2011
46
No. 7 Public Procurement 2011
PART V
PUBLIC PROCUREMENT PRINCIPLES
47
No. 7 Public Procurement 2011
48
No. 7 Public Procurement 2011
49
No. 7 Public Procurement 2011
50
No. 7 Public Procurement 2011
51
No. 7 Public Procurement 2011
52
No. 7 Public Procurement 2011
53
No. 7 Public Procurement 2011
54
No. 7 Public Procurement 2011
55
No. 7 Public Procurement 2011
56
No. 7 Public Procurement 2011
57
No. 7 Public Procurement 2011
58
No. 7 Public Procurement 2011
59
No. 7 Public Procurement 2011
PART VI
METHODS OF PROCUREMENT AND PROCESSES
60
Public Procurement
61
No. 7 Public Procurement 2011
62
No. 7 Public Procurement 2011
63
No. 7 Public Procurement 2011
64
No. 7 Public Procurement 2011
65
No. 7 Public Procurement 2011
66
No. 7 Public Procurement 2011
67
No. 7 Public Procurement 2011
68
No. 7 Public Procurement 2011
69
No. 7 Public Procurement 2011
PART VII
PROCUREMENT UNDER PUBLIC PRIVATE PARTNERSHIP
70
No. 7 Public Procurement 2011
PART VIII
PROHIBITIONS
Fraud and 83.-(1) The procuring entities and tenderers under public
corruption
financed contracts shall proceed in a transparent and
accountable manner during the procurement and execution of
such contracts.
(2) Where a procuring entity is satisfied, after appropriate
investigation, that any person or firm to which it is proposed
that a tender be awarded, has engaged in corrupt fraudulent,
collusive, coercive or obstructive practices in competing for the
contract in question, it may -
(a) reject a proposal for award of such contract;
(b) declare any person or tenderer including its
directors ineligible for a period of not less than
ten years to be awarded a public financed
contract.
71
No. 7 Public Procurement 2011
72
No. 7 Public Procurement 2011
73
No. 7 Public Procurement 2011
74
No. 7 Public Procurement 2011
75
No. 7 Public Procurement 2011
PART IX
DISPUTES SETTLEMENT
76
No. 7 Public Procurement 2011
77
No. 7 Public Procurement 2011
78
No. 7 Public Procurement 2011
79
No. 7 Public Procurement 2011
80
No. 7 Public Procurement 2011
81
No. 7 Public Procurement 2011
82
No. 7 Public Procurement 2011
83
No. 7 Public Procurement 2011
Extension of 98. The Appeals Authority may extend the time limit
time for
submission of set under subsections (2) and (3) of section 97 where it is
complaints or satisfied that failure by a party to lodge an appeal or
appeals complaint was occasioned by being absent from the United
Republic, sickness or other reasonable cause, subject to such
terms and conditions as may be prescribed in the rules.
Certain rules 99.-(1) After the submission of a complaint or dispute
applicable to
review under sections 96 and 97, the Accounting officer, or the
proceedings Appeals Authority, as the case may be, shall notify all
tenderers participating in the procurement or disposal
proceedings to which the complaint or dispute relates, of the
submission of the complaint or dispute and of its substance.
(2) Any tenderer or any public body whose interest is or
may be affected by the review proceedings, shall have a right
to participate in the review proceedings and a tenderer who
fails to participate in the review proceedings shall be barred
from subsequently making the same claim.
84
No. 7 Public Procurement 2011
85
No. 7 Public Procurement 2011
86
No. 7 Public Procurement 2011
PART X
GENERAL PROVISIONS
87
No. 7 Public Procurement 2011
88
No. 7 Public Procurement 2011
Regulations 105.-(1) The Minister may make regulations and rules for
the better carrying out of the provisions of this Act.
(2) Without prejudice to the generality of subsection (1),
the Minister may make regulations prescribing -
(a) procedures and processes for procurement of
common use items under framework agreements;
(b) procedure for procurement of goods and services
by public bodies through third party or Agency;
(c) terms and conditions for delegation of
procurement functions of a procuring entity;
(d) procurement procedures for used railway
machinery, ships and aircrafts;
(e) procedures for tender submission, opening and
evaluation awarding of tender and cancellation of
procurement process;
(f) procedures for investigation under this Act;
(g) procedure for lodging procurement complaints
and appeals;
(h) various methods of procurement and procurement
of commodities of seasonal nature;
(i) qualification of tenderers circumstances and
procedures for prequalification process;
(j) fees for various services rendered by the
Authority or Appeals Authority or the Agency;
and
89
No. 7 Public Procurement 2011
90
No. 7 Public Procurement 2011
FIRST SCHEDULE
_______
91
No. 7 Public Procurement 2011
Composition 2.-(1) The Board of Directors shall consist of the following members -
and (a) a non-executive Chairman who shall be appointed by the
appointment of President; and
the Authority
(b) six members at least three of whom are experts or specialists
in procurement, law, management, engineering, commerce, or
in any other relevant field , who shall be appointed by the
Minister,
(2) The Chief Executive Officer who shall be appointed by the President shall
be the Secretary to the Board.
Tenure 3.-(1) The Chairman and members of the Board shall be appointed for a period
of of three years and shall be eligible for re-appointment for a further period of three
office years.
(2) Under exceptional circumstances, the Appointing Authority may extend
the tenure of the Board member or members for a period not exceeding six months
from the date of expiry of the initial period of appointment.
(3) The Appointing Authority may determine the appointment of the
Chairman, members and Chief executive of the Board at any time for.
(a) abuse of office;
(b) corruption;
(c) incompetence;
(d) any physical or mental incapacity that renders a person
incapable of performing the duties of that office;
(e) failure to attend three consecutive meetings of the Board
meetings without reasonable grounds;
(f) conviction of an offence involving moral turpitude; and
(g) being adjudged bankrupt by a court of law.
(4) Any member of the Board may resign upon giving one month's notice in
writing to the Appointing Authority.
(5) If any member is absent from three consecutive meetings of the Board
without providing reasonable excuse, the Board shall advise the appointing
authority to terminate the appointment of that member and appoint another
member in his place.
Attendance by 4. The Board may invite public officers of procuring entities whose
non-members procurement is under consideration or any other person with a legitimate interest
in the procurement being reviewed to attend its meetings for the purpose of
assisting the Board, but such persons shall have no vote.
Meetings 5.-(1) An ordinary meeting of the Board shall be convened by the Chairman,
or in his absence or inability to act, the Chief Executive Officer, by a notice
specifying the date, time and place of such meeting which shall be sent to each
member at his usual place of business or residence not less than two full working
days before the date of such meeting and the Board shall meet at such times and
such places being not less than once in a month as the Chairman may determine.
92
No. 7 Public Procurement 2011
(2) The Chairman, or in his absence or inability to act, the Chief Executive
Officer, shall convene a special meeting of the Board upon receipt of a request in
writing signed by not less than three members of the Board, save that such
requests shall not be made without justifiable cause.
Quorum 6.-(1) Half of the members of the Board shall form a quorum for a meeting
of the Board.
(2) In the absence of the Chairman, the members present at a meeting of the
Board shall elect one of the members to act as Chairman for that meeting and the
member who is so elected shall be responsible for reporting the findings of such
meeting to the Chairman.
(3) At any meeting of the Board, a decision of the majority of the members
present shall be recorded as a decision of the Board, save that a member who
dissents from that decision shall be entitled to have his dissenting decision and the
reasons for it recorded in the minutes of that meeting.
(4) The validity of any act or decision of the Board shall not be affected by
any vacancy among its members or by any defect in the appointment of any of
them.
Minutes 7. Minutes of each meeting of the Board shall be recorded by the Secretary
in a proper form and shall be confirmed by the Board and signed by the Chairman
and the Secretary at the next following ordinary meeting of the Board and filed at
the offices of the Authority.
Regulation of 9. The Board shall have power to regulate its own proceedings.
proceedings
Subcommittees 10. The Board may establish subcommittees and appoint as members, of
such subcommittees, persons who are or are not, members of the Board for the
purposes of advising the Board on any specific matter.
Fees and 11. The Minister may prescribe fees and allowances which may be payable
allowances to the Chairman and members of the Authority.
93
No. 7 Public Procurement 2011
_______
SECOND SCHEDULE
______
Interpretation 1.-(1) In this Schedule, "the board" means the Tender Board for the Ministry,
Independent Department of Government, Region, Agency and Parastatal
Organisation.
Tenure of 3.-(1) The Chairman and members of the Board shall be appointed for a
Appointment period of three years and shall be eligible for re-appointment for a further period of
three years.
(2) Under exceptional circumstances, the accounting officer may extend the
tenure of the Board member or members for a period not exceeding three years from
the date of expiry of the initial period of appointment.
(3) The accounting officer may terminate the appointment of the Chairman and
members of the Board at any time for:
(a) abuse of office;
(b) corruption;
(c) incompetence;
(d) any physical or mental incapacity that renders a person incapable of
performing the duties of that office;
(e) failure to attend three consecutive meetings of the Board meetings
without reasonable grounds;
(f) conviction of an offence involving moral turpitude; and
(g) being adjudged bankrupt by a court of law.
(4) Any member of the Board may resign upon giving one month's notice in
writing to the accounting officer as the case may be.
(5) If any member is absent from three consecutive meetings of the Board
without providing reasonable excuse, the Board shall advise the accounting officer to
terminate the appointment of that member and appoint another member in his place.
94
No. 7 Public Procurement 2011
Attendance 4. The Board may invite public officers from within the procuring authority
by non– or other public authority to attend its meetings for the purpose of assisting the board,
members but such person shall have no vote.
Quorum 6.-(1) Half of the members of the board shall form a quorum for a meeting of
the board.
(2) In the absence of the Chairman, the members present at a meeting of the
board shall elect one of the members to act as Chairman for that meeting and the
member who is so elected shall be responsible for reporting the findings of such
meeting to the Chairman.
(3) At any meeting of the board, a decision of the majority of the members
present and voting shall be recorded as a decision of the board, save that a member
who dissents from that decision shall be entitled to have his dissenting decision and
the reasons for it to be recorded in the minutes of that meeting.
Minutes 7. Minutes of each meeting of the board shall be recorded by the Secretary in
a proper form and shall be confirmed by the board and signed by the Chairman and
the Secretary at the next following meeting of the board.
Notification 8. Notification of decisions made by the board and all other communications
of decisions sent on its behalf shall be signed by the Secretary or by the Permanent Secretary or
Chief Executive as the case may be.
Regulation 9. A tender board shall conduct its proceedings in accordance with the
of prescribed Regulations.
proceedings
Subcommi- 10. The tender board may establish sub-committees and appoint as members,
ttees of such sub-committees, persons who are, or are not, members of the tender board
for the purposes of advising the board on any specific matter.
Fees and 11. The Minister may prescribe fees and allowances which may be payable to
allowances the Chairman and members of the board.
95
No. 7 Public Procurement 2011
______
THIRD SCHEDULE
________
Tenure of 2.-(1) The Chairman and members of the Appeals Authority shall be appointed
office for a period of three years and shall be eligible for re-appointment for a further period
of three years.
(2) Under exceptional circumstances, the Appointing Authority may extend the
tenure of a member for a period not exceeding six months from the date of expiry of
the initial period of appointment.
(3) The appointing authority may terminate the appointment of the Chairman,
members and Executive Secretary at any time for -
(a) abuse of office;
(b) corruption;
(c) incompetence;
(d) any physical or mental incapacity that renders a person incapable of
performing the duties of that office;
(e) failure to attend three consecutive meetings of the Appeals Authority
meetings without reasonable grounds;
(f) conviction of an offence involving moral turpitude; and
(g) being adjudged bankrupt by a court of law.
(4) Any member of the Appeals Authority may resign upon giving one month's
notice in writing to the Appointing Authority.
Committees 3. The Appeals Authority may establish not more than three
of the Board subcommittees whose membership shall consist of not more than three persons for
purpose of advising the Appeals Authority on any specific matter.
96
No. 7 Public Procurement 2011
Notice of 4.-(1) The hearing of the Appeals Authority shall be convened by the
hearing Chairman or in his absence or inability to act the Executive Secretary, by a notice
specifying the date, time and place of such hearing which shall be sent to each
member at his usual place of business or residence not less than two full working
days before the date of such hearing.
(2) The Chairman or in his absence or inability to act, the Executive
Secretary shall convene a special meeting upon receipt of a request in writing
signed by not less than three members of the Appeals Authority save that such
requests shall not be made without justifiable cause.
(3) The Appeals Authority may act notwithstanding any vacancy in its
membership.
(4) No act or proceeding of the Appeals Authority shall be invalid by
reason of any defect or irregularity in the appointment of any member or by reason
that any person who purposed bona fide to act as a member at the time of the act or
proceeding was in fact disqualified or not entitled to act as a member.
Quorum 6 -(1) In any meeting of the Appeals Authority, three members shall form a
quorum for a hearing of review or an appeal.
(2) In the absence of the Chairman, the members present at a meeting of the
Appeal Authority shall select one of their members to act as chairman for that
meeting and the member who is selected shall be responsible for reporting the
findings of such meeting to the Chairman.
(3) At any hearing of the appeal or complaint, the decision of the majority of
the members present shall be recorded as a decision of the Appeals Authority, save
that a member who dissents from that decision shall be entitled to have his decision
and the reasons thereof be recorded in the minutes of that meeting.
Records of 7.-(1) Proceedings at the hearing by the Appeals Authority shall be recorded
Appeal in writing by the members or by any other authorized person.
(2) The records of every proceedings of the Appeals Authority shall be
signed by the members present and the Chairman or a person presiding over.
Minutes of the 8. Minutes of each meeting of the Appeals Authority shall be recorded by the
meetings Executive Secretary in a proper form and shall be confirmed by the Appeals
Authority and signed by the Chairman and the Executive Secretary or by an officer
of the Secretariat who has been authorized in writing to act on behalf of the
Executive Secretary at the next meeting.
97
No. 7 Public Procurement 2011
Notification 9. Notification of decision made by the Appeals Authority and all other
of decision communications sent on its behalf shall be signed by the Executive Secretary or by
an officer of the secretariat who has been authorized in writing to act on behalf of
the Executive Secretary.
Fees and 10. The Minister may prescribe fees and allowances which may be payable to
allowances the Chairman and Members of the Appeals Authority.
THOMAS D. KASHILILAH,
Clerk of the National Assembly
98