PUBLIC PROCUREMENT

What is Public Procurement?

• The term procurement refers to the processes involved in the
acquisition of goods, works and services
• Public procurement relates to procurement undertaken by central
government, MDAS, boards, commissions, authorities, public
universities, local government entities and to the extent of the use of
public funds in acquiring goods, works and services by commercial
entities
• Public procurement constitute about 60% – 70% of the annual budget
after compensation for employees in developing countries
• Public procurement is an important element to tackle in public
financial management strategies
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Principles of Public Procurement
• General principles in public procurement include:
• Competition
• Accountability
• Transparency
• Fairness/non-discrimination
• Economy
• Efficiency
• Environmental sustainability
• Social impact

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Why Regulating Public procurement?
• Public Procurement (PP) is among the most dynamic areas of anti-
corruption reforms being championed by the World Bank and many
countries including Ghana.
• PP is a high level risk area in public financial management, particularly
in developing countries.
• Source of leakages in PP include:
• Bribery and inducement (10%?)
• Inflation of prices of goods, services and works,
• Acquisition of inferior goods, works and services at exorbitant prices
• Cronyism and favouritisms etc.

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Why Regulate Public Procurement (cont)
• Laws on PP have been scattered in several legislation making
enforcement difficult.
• They include:
• The District Tender Board Regulations. 1995 (L.I 1606)
• The Ghana National Procurement Agency Decree.,1976 (SMCD, 55)
• Ghana Supply Commission Law, 1990 (PNDCL 245)
• In 2003, the Public Procurement Act 2003 (Act 663) was passed to
provide a single source of procurement rules for the entire public
sector.
• Further in 2016, the Act 663 was amended by Public Procurement
Amendment Act 2016, Act 914.
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Outline of Act 914
Part Heading
I Establishment of the Authority
II Procurement Structures
III Procurement Rules
IV Methods of Procurement
V Tendering Procedures
VI Methods and procedures to engage the services of consultants
VII Complaints and administrative reviews
VIII Disposal of stores, vehicles, plant and equipment
IX Miscellaneous provisions

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Public Procurement Authority
• The authority is a body corporate.
• The object of the creating the authority is to harmonize the public
procurement in the public service to secure a judicious, economic and
efficient use of state resources and to ensure that public procurement
is carried out in a fair transparent non-discriminatory,
environmentally, and socially transparent manner

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Functions of the PPA
• Section 3 of Act 914 provides for the following functions:
• To make proposal for formulation of public procurement policies
• To develop draft rules, instructions and other regulatory documents on PP
and format for relevant documents
• To establish and implement public procurement information systems
• To facilitate the training and professional development of public officers
involved in public procurement at various levels
• To develop, promote and support training and professional development of
persons engaged in public procurement

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Functions of PPA
• Section 3 (cont):
• To publish by the end of each month a public procurement bulletin.
• To assist the local business community to become competitive and efficient
suppliers.
• To maintain a list of firms that have been barred from participating in public
procurement and communicate the list to procurement entities.
• Read from the Act all the functions of PPA

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PPA Board
• The governing body of the PPA is a board of nine members:
• Chairperson – competent and experience in public procurement
• Four person – one from Attorney General’s Dept. and three nominated by the
Minister of Finance of whom one is a woman (all must be experience in public
procurement.
• Three from private sector, one be a woman
• The CEO

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Funds to the Authority
• The funds to the PPA is made up of:
• Moneys provided by parliament
• Administrative fines, fees and other income accruing to the authority
• Donations, grants and gifts
• Other moneys provided by the Minister of Finance
• The PPA may retain part or all of the IGR under an L.I.

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Scope and Application of Act 914
• Act 914 should be applied to these activities
• Procurement of Goods, Works and Services (GWS) financed wholly or in part
from the public funds
• Functions pertaining to the procurement of GWS (e.g. tender related
activities)
• Disposal of public stores, vehicle and equipment
• Procurement by public funds with loans by government, grants, foreign aids
and IGF, unless exempted by the Act.
• In connection to entities:
• All covered entities under the PFM Act are required to apply the Act 914,
including BOG and statutory funds

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• These entities include:
• central management agencies;
• government ministries, departments and agencies;
• subvented agencies;
• government institutions;
• state-owned enterprises to the extent that they utilise public funds;
• public universities, public schools, colleges and hospitals;
• the Bank of Ghana and financial institutions such as public trusts, pension funds, insurance
companies and building societies that are wholly owned by the state or in which the state has
a majority interest;
• institutions established by the government for the general welfare of the public or
community;
• statutory funds, commissions and other bodies established by the government for a special
purpose; and
• phases of contract administration.

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• In addition, any other institution as far as it is engaged in the
procurement of goods, works and services financed in whole or in
part from public funds must comply with the Act.
• By implication, any institution that does not fall into any of the
categories above, and whose procurement is not financed in whole or
in part from public funds is not required to comply with the Act.

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• The application of the Act is, however, subject to two key exceptions.
• The first is the power vested in the minister of finance to direct the use of a
different procurement procedure where the minister determines that it is in
the ‘national interest to do so’. Where the minister makes such a
determination, the procurement method shall be published in the Ghana
Gazette.
• The second exception is in respect of the procurement of goods, works and
services financed by loans taken or guaranteed by the state, or aid granted
under an international agreement that prescribes the procurement
procedures to be employed.

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Scope and Application
• Use of Established commercial practices
• By approval of the Board, a procurement entity may undertake procurement
in accordance with established commercial practices if:
• The entity is legally and financially autonomous and operates under commercial law
• It is beyond contention that public procurement practices are not suitable, given the
strategic nature of the procurement.
• The proposed procurement method will ensure value for money, provide competition
and transparency to the extent possible.
• Board approval to use commercial method must be published in a gazette.

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Procurement Structures
• The Act provides for these structures in the conduct of public
procurement:
• Procurement entity
• Procurement unit
• Entity tender committee
• Tender evaluation panel
• Tender review committee

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Procurement Entity
• Procurement entity is an entity conducting procurement under the
Public Procurement Act
• Procurement entity is responsible for procurement subject to
provisions of Act and any other regulations issued by MOF
• Head of entity is the Head of Procurement entity
• Head of entity and the officer to whom responsibility has been
delegated (Procurement Officer) are responsible and accountable for
procurement actions and decisions made under the Act 914
• The liability of the head of entity and procurement officer are limited
to acts that are inconsistent with the Act 914

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Procurement entity
• Functions of the Head of procurement entity:
• Ensure compliance to the Act 914 and concurrent approval from a tender review
committee does not absolve the accountability of the head for contracts made.
• Establish procurement unit within entity, staffed with qualified personnel.
• Empanel competent and qualified evaluation panels
• Ensure that procurement procedures are followed (due process)
• Ensure stores, vehicles and equipment are disposed off according to the Act
• Exercise sound judgement in making procurement decisions
• Seek concurrent approval from the tender review committee when threshold is
exceeded.
• Facilitate contract administration and ensure compliance to contract reporting
requirements

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Procurement Unit
• Procurement unit is a unit or person within the entity that is
dedicated to providing technical procurement services to the tender
committee
• The Head of entity establishes a procurement unit within the entity
• The head of procurement entity appoints the head of procurement
unit, who shall be a qualified procurement personnel
• Head of procurement unit is the secretary to the entity tender
committee

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Entity Tender Committee
• Tender Committee refers to a body within an entity with the
responsibility for planning, processing and generally making
procurement decisions and ensuring compliance with the public
procurement law, among others
• A procurement entity shall establish entity tender committee in
accordance with the Act and the composition shall be as determined
by the Schedule of the Act
• The ETC must ensure to work within the thresholds specified by the
Act

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General Function of ETC
• All entity tender committees perform these functions:
• Ensure that each stage of the procurement process is followed through
• Ensure that it works within the thresholds established in the law
• Exercise sound judgement in procurement decisions
• Review procurements above its threshold that have been duly processed by
the procurement unit and evaluated by the evaluation panel and seek
concurrent approval from the central tender committee
• The laws allows for delegation of duties by the chairman and
members of ETC &TRC

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Specific Functions (depending on the class) of
entity
• MDAs, Subvented agency and Central management agency has these
functions
• Review and approve procurement plans and quarterly update of the plan to ensure
connection with the objectives and operations of the entity
• Approved cost of items in the plan and ensure they fit into the budget amounts.
• Review procurement schedules and specifications and ensure compliance with law
• Secure concurrent approval from the relevant TRC
• Facilitate contract admin and ensure compliance with all reporting requirements
• Ensure that stores and equipment are disposed off according to the law.
• Functions for RCCs & MMDAs are largely same to these ones

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Tender Evaluation Panel
• This is an expert group appointed by the entity to evaluate tenders
and assist the TC in its works
• The head of entity appoints a tender evaluation panel with the
required expertise to evaluate tenders
• The evaluation panel must evaluate tenders based on only
predetermined and published evaluation criteria

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Tender Review Committee
• The tender review committee is established for all central
management agency, MDAs, and the MMDAs in accordance with the
Act.
• Two Review Committees
• Central tender review committee –for the MDAs
• Regional tender review committee –for MMDAs
• Decisions of the TRC may be reviewed by the Board of the authority,
upon written complaints from the procurement entity or tenderer.
• Dissatisfied with the ruling of the board, the complainant may
proceed to court.
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Functions of tender Review Committee
• Review the activities carried out in a particular procurement at each
step of the procurement cycle to ensure compliance with the law,
instructions and guidelines
• Give concurrent approval or otherwise to enable the procurement
entity continue with the procurement process
• Review decisions of heads of entities in respect of a complaint
• Participate in public procurement fora

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Procurement Rules
• Procurement rules covers the following
• Procurement plan*
• Qualification of tenders*
• Suspension of supplier or consultant*
• Prequalification proceedings and decisions*
• Participation in procurement proceedings
• Form of communication
• Documentary evidence in procurement proceeding
• Recording of procurement proceedings
• Cancellation of procurement proceedings*
• Rejection of tenders, proposal and quotations*
• Entry into force of the procurement contract
• Public notice of procurement contract award
• Inducements from supplier, contract and consultants
• Confidentiality
• Description of goods, works and services
• Language

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Procurement plan
• A procurement entity is required to prepare a procurement plan to support its approved
programme.
• A procurement plan must indicate the following:
• – Contract packages, descriptions or lots
• – Estimated cost for each package
• – The procurement method and approvals needed
• – Processing steps and time lines
• Procurement plan must be submitted to the entity tender committee for approval not
later than one month to the end of the financial year.
• Procurement plan must be updated after budget approval and every quarter and
submitted to the entity tender committee as well
• Procurement plan of the entity shall be posted on the website of the Authority.
• Procurement order breaking in lower parts to avoid the application of procedures is
prohibited.

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Qualification of tenderers
• A tenderer in public procurement shall
• Possess necessary competences (technical and environmental), capabilities
(reliability, experience, reputation) and resources (equipment and personnel)
• Have the legal capacity to enter into the contract and meet ethical and other
applicable standards
• Be solvent, not be in receivership, bankrupt or in the process of being wound up, not
having its business activities suspended
• Have fulfilled its obligations to pay taxes, social security contribution and pollution
compensation
• Have directors who have no criminal records or have been disqualified by
administrative suspension or debarment
• Meet other justifiable criteria set by the procurement entity which are not
discriminatory

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Suspension of a supplier or consultant
• The governing board may suspend a supplier or consultant from
engaging in any public procurement or disposal process for a period
determined by the board.
• Suspended action may be based on
• the recommendation of a procurement entity
• Investigation initiated by the board itself

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• Ground of suspension
• –unsatisfactory performance by Auditor General
• –Failures to substantially perform its obligation under the contract
• –Suspension of supplier by a professional body for misconduct
• –Non-compliance to obligations under an Act of Parliament.
• –Conviction of corrupt practices or fraudulent act under this Act.

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Prequalification
• Prequalification is the procedure engaged by procurement entity in
identifying tenderers who are qualified prior to submission of tenders
• Prequalification should be conducted in accordance to the methods
and procedures of procurement under the Act
• Procurement entity undertaking prequalification must supply a set of
prequalification document to suppliers or contractors at a fee
• Decision on prequalification must be based on only the
prequalification criteria in the document
• Notice of Decision on prequalification should be made to prequalified
suppliers, otherwise on request

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Cancellation of Procurement Proceeding
• A procurement entity may cancel procurement proceedings before
the expiry of the deadline for submission of tenders where there is:
• Discovery of an imperfection in the wording of request for submission of
tenders which could mislead supplier
• Decision to carry out the work in house by itself
• A cut in the budget for the contract
• No bid submission
• Exceptional circumstances or forced majeure render the normal performance
of the contract impossible
• The economic or technical data of the project has fundamentally changed

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Cancellation of procurement
• Head of procurement entity may after the expiry of the deadline for the
submission of tenders, cancel a procurement proceeding where:
• No tender has been submitted within the specified deadline;
• Tender procedure has been unsuccessful;
• Tender documents contain term or technical specifications that cannot be met by any of
tenderers
• Prices that meet the terms and technical requirements of the tenderer documents are
unrealistic or appear to be a product of collusion between tenders, circumvention of healthy
competition.
• Circumstance under which the procurement procedures was announced have changed to the
extent that procurement is no longer necessary.
• Exception circumstances or a forced majeure render normal performance of the contract
impossible.
• Any other serious justifiable unforeseeable reason
• NB: Cancellation of procurement proceeding shall not impose any liability to the
procurement entity

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Rejection of tenders, proposal and quotations
• A procurement entity may reject tenders, proposal and quotations at
any time prior to acceptance if the grounds for the rejection are
specified in the tender documents.
• Ground for rejection should be communicated to the tenderer but
justification for rejection is not required.
• No liability arises upon rejection.
• Notice of rejection must be given to participating tenders within two
days from the date the procurement entity decides to discontinue
with the tender process.

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Methods of Procurements
• The methods of procurement are put into four categories:
• Competitive tendering
• Single source procuring
• Consultant selection
• Framework contracting
• These methods shall be used subject to and in according with the
thresholds

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Competitive tendering
• Competitive tendering methods include
• International competitive tendering (open)
• National competitive tendering (open)
• Two-stage tendering
• Request for quotation
• Restricted tendering
• A procurement entity shall procure goods, services or works by competitive
tendering except provided by the Act.
• If a procurement entity uses the method of procurement other than
competitive tendering, it shall include in the record required a statement of
the grounds and circumstances on which it relied to justify the use of that
method.

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International Competitive Tendering
• ICT is used whenever open competitive tendering is used and
effective competition cannot be obtained unless foreign firms are
invited to tender.
• In ICT, foreign firms are invited to submit tenders so as to deepen
competition among tenders,
• Remember that both local firms and foreign firms participate in ICT.

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National competitive tendering
• In NCT, locally registered firms are openly invited to participate in the
procurement proceedings
• Generally, NCT does not consider the nationality of the local firm, however
a procurement entity may decide to consider only domestic suppliers
• A procurement using NCT is not required to conduct prequalification unless
thresholds set in the Act is met
• In the invitation for participation, the procurement entity that decided to
limit the proceedings to domestic supplier must notify the prospective
tenders
• Procurement entity that decided to limit participation to domestic supplier
must provide the reasons and circumstances on which it relied
• Submission period is between 2 to 6 weeks

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Two stage tendering
• TST is a two fold competitive method.
• A procurement may use two stage tendering where:
• Not feasible to formulate detail specification, characteristics of goods, works
and services (may due to rapid technological advances)
• Entering into a contract for research, experiment, study or development,
except where commercial viability to recover cost is established.

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Two Stage Tendering
• Procedures
• First stage
• –Invitation document call upon suppliers to submit initial tenders which
contains proposal without tender price
• –The invitation document may solicit proposal on technical, quality or other
characteristics of the goods, works and services.
• –In this stage the procurement entity may engage in negotiation with the
suppliers whose tenders has not been rejected under specified grounds on an
aspect of its tenders.

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Two-stage tendering
• Procedure
• Second stage
• –Invite suppliers whose tenders have been accepted to submit final tenders
with prices on a single set of specification
• –Procurement entity may review the specification and criteria and notify
prospective supplier accordingly,
• –A supplier who wishes to withdraw for submitting the final tender may be
permitted without forfeiting the tender security.
• –Final tenders are evaluated and compared in order to ascertain the
successful tenderer.

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Restricted Tendering
• Restricted tendering (RT) is a method of procurement in which only few
firms are invited to tender for supply of goods, works and services.
• RT is used for the reason to economy and efficiency of the procurement.
• The use of RT requires the approval of the Board, probably for a fee.
• RT is appropriate method when
• –The goods, works and services could only be obtain from one or few suppliers due
to complexity and specialised nature of the supply.
• –Cost and time needed to process the tender is disproportionate to the value of
goods being procured.
• –If an offer for competitive tendering fails to receive any response after publication.

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Restricted Tendering
• Procedure for RT are:
• –Invite suppliers who can supply the goods, works and services.
• –Select in a non-discriminatory manner, a number of suppliers to ensure
effective competition.
• –Evaluate and compare tenders
• –Select successful tender
• –Offer contract
• –Contract administration and reporting.

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Request for Quotation
• This is a method in which the entity request invoices from as many suppliers but
at least three and pick the supplier with the lowest invoice or quotation
• The quotation should not be related in terms of ownership, shareholding and
directorship
• Principle of conflict of interest between procurement entity and the members
should be considered in the evaluation
• Here there should be no negotiation between the entity and the supplier
• Successful quotation is the one with lower prices
• Conditions for use
• Where the goods are readily available (they are not specially made for the entity)
• Where established market exist for the goods and services, and the amount falls within the
threshold
• Where low cost goods and services are required

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Request for quotation
• Procedure
• Invite quotation (pro forma invoice) from at least 3 suppliers of the goods and
works.
• Compare the prices of the invoices considering the relations of quotation and
conflict of interest issues.
• Select the invoice with lower price
• Place order and follow up on delivery.

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Single Source Procurement
• SSP allow for offering contract to a single supplier to supply goods,
works and services.
• SSP can only be used upon the approval of the board, for a fee.
• It is non-competitive method and therefore must be used only under
exceptional circumstances.

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Single source procurement
• Exceptional circumstances for use of SSP
• Goods or services are only available from a single supplier or the supplier has
exclusive right
• Urgent need for the GWS, not caused by dilatory conduct of the procurement entity,
making it impracticable to use competitive methods
• Occurrence of catastrophic event making the use of competitive method
impracticable
• Contract for research, experiment, study or development not for commercial
purpose
• Procurement has implications for National security
• Where additional supplies need to be procured from a supplier who had made
supply in the immediate to ensure standardization and compatibility with existing
goods or equipment

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Single source procurement
• Procedures
• –Seek approval from the Board, making clear justification of the grounds or
circumstances in accordance with the Act.
• –Invite quotation from the single supplier
• –Enter in to agreement
• –Contract administration and reporting

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Selection of Consultants
• The methods of selecting consultants include:
• –Quality and cost based selection
• –Quality based selection
• –Selection based on qualification of consultant
• –Least cost selection
• –Fixed budget selection
• –Single source selection

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Framework contracting
• Under this method, the board in consultation with the Minister of
Finance introduces a framework contracting agreements and other
methods for a specific entity where the context permits until such
time that is possible to do so nationally
• A procurement entity applying framework contracting procedure
must comply with the Regulations or guidelines issued by the board

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THRESHOLDS FOR PROCUREMENT METHODS
PROCUREMENT METHOD CONTRACT VALUE THRESHOLD
1. INTERNATIONAL COMPETITIVE TENDER
A. Goods Above GHC 10 million
B. Works Above GHC 15 million
C. Technical Services Above GHC 5 million
2. NATIONAL COMPETITIVE TENDER
A. Goods More than GHC 100,000 up to GHC 10 million
B. Works More than GHC 200,000 up to GHC 15 million
C. Technical Services More than GHC 50,000 up to GHC 5 million
3. PRICE QUOTATION
A. Goods Up to GHC 100,000
B. Works Up to GHC 200,000
C. Technical Services Up to GHC 50,000
Restricted Tender Subject to approval by the Board
Single Source Procurement and Selection Subject to approval by the Board
Consultancy Services No Threshold Limits
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• PRICE QUOTATION
• Services – Below 50,000
• Goods – Below 100,000
• Works – Below 200,000
• NATIONAL COMPETITIVE TENDERING
• Services – 50,000 – 5 million
• Goods – 100,000 – 10 million
• Works – 200,000 – 15 million
• INTERNATIONAL COMPETITIVE TENDERING
• Services – Above 5 million
• Goods - Above 10 million
• Works – Above 15 million

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Tendering Procedure
• The major stages in the tendering procedures are:
• –Invitation of tenders and prequalification
• –Submission of tenders
• –Evaluation of tenders
• –Comparison of tenders and selection of a tender
• –Contract offer and acceptance
• –Contract administration and reporting

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Invitation of tenders and prequalification
• NCT and ICT differ in terms of some invitation rules and requirements
• NCT
• –Notice to tenders must clearly indicate whether NCT is limited to only
domestic supplier, contractors etc.
• –Procurement entity may indicate that tenders should be quoted only in the
local currency and payment must be made in local currency
• –Procurement entity must state a minimum period of 2 weeks to maximum of
6 weeks for submission of tenders.

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Invitation to tender (cont)
• ICT
• The invitation to tender and the invitation document must be in English
• Invitation must be placed in a newspaper of adequate circulation to attract
foreign competition
• At least 6 weeks should be given for the submission of tenders
• Technical specification, to the extent compatible with national requirements,
must be based on international standards or international conventions.
• Tenders must be presented in freely convertible currency stated in the
invitation documents.

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Invitation to tender and prequalify
• Procedures:
• Procurement entity makes invitation to tender/prequalify by publication on the
public procurement bulletin and the website of the Authority
• Procurement entity also publishes the invitation in at least one daily newspaper of
national circulation or for ICT, newspaper or other publications) of wide international
circulation
• The content of the invitation to tender or prequalify should comply with S 48
• The procurement entity also provides a specified tender document to the suppliers
at a fee
• Tender document content must comply with S (50) (3)
• Supplier has a right to seek clarification on the document
• The procurement entity may modify the document by issuing an addendum prior to
submission and notify all suppliers provided with the document

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Submission of tenders
• Language
• –Tenders should be made and submitted in English, but supporting
documents and other literature may be in another language if translated in
English
• Place, Date and Time
• The procurement entity must specify the place, date and time as deadline for
the submission.
• Minimum of 6 weeks should be allowed for submission for ICT.
• Deadline for submission may be extended prior to the deadline for
submission when modification is made or when procurement thinks
appropriate at least 10 days before expiry of the deadline.
• In all cases, supplier must be notified using expedient means.

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Submission
• Mode of submission
• A tender shall be in writing, signed and be submitted in sealed envelops.
• However, it may be submitted in other forms in accordance with the tender
document.
• The procurement entity shall provide the tenderer with receipt showing date
and time when the tender was received.
• Tenders received after the submission deadline shall not be opened but
return to the tenderer.
• Supplier may modify or withdraw his tender prior to the submission deadline
without forfeiting his tender security unless it is stipulated by the tender
document.
• Withdrawal of tender is effective if it is received by the procurement entity
prior to the deadline for submission.
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Submission (cont)
• Tender security
• Tender security is the security provided to the entity as a pledge against fulfilment of
an obligation under the law
• It may include bank guarantee, surety bonds, stand by letter of credit, cheque issued
by banks, cash deposits and bill of exchange
• The procurement entity shall specify the principal terms and conditions of the
required tender security, including issuer and confirmer in the invitation document
• Circumstances under which Tender security is returned
• Tender security expires
• Entry into force of the procurement contract and provision of security for performance of the
contract
• Termination of the contract process
• Withdrawal of tender prior to deadline for submission

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Tender Evaluation and Comparison
• Opening of the tenders
• –Tenders shall be opened at the time, date and place specified in the tender
document.
• –The time for opening shall be same as the deadline of submission.
• –Tender opening shall take place in the presence of all tenderers or proxy.
• –The name and address as well as the tender price of each tenderer must be
openly announced and recorded immediately in the tender proceeding.

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Tender evaluation and Comparison
• Examination of tenders
• The objective of examination is to determine responsive tenders.
• In course of examination, the respective tenders are matched to the
requirements of the tender documents.
• The procurement entity may seek writtening clarification on the tender
submitted by a supplier.
• The procurement entity may correct purely arithmetical errors in the tender
and inform the tenderer promptly, however the tender have the right to
object leading to non-acceptance of the tender.
• Substantial changes in tenders that are capable of making unresponsive
responsive is not allowed.

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Tender evaluation and comparison
• Examination of tenders (cont)
• At the examination stage, tenders are not accepted if:
• Tenderer is not qualified.
• Tenderer refuses minor corrections suggested by the procurement entity
• Tender is not responsive
• Inducement from tenderer.

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Tender evaluation and comparison
• Evaluation of tenders
• The entity evaluates the responsive tenders to arrive at the successful tender.
• Evaluation must be done using only the criteria set out in the invitation document.
• Evaluation criteria are in line with S.59-2.
• Margin of preference is also factored into the criteria to benefit domestic suppliers
or local content.
• Margin of preference must be authorised by the Board and approved by the Board
• It involves rank
• Comparison of tenders
• Comparison of tenders is based on evaluation results towards the selection of
successful tender.

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Selection and contract offer
• A successful tender is the one with lowest tender price.
• Where the invitation document stipulates bases other than price, then the
lowest evaluation tender shall be ascertained objectively and quantified,
given due regard to relative weights in the evaluation procedure.
• To determine lowest evaluated tender consideration must be given to
• tender price,
• cost of operating e.t.c,
• national security and
• impact of the tender on other factors like balance of payment, counter trade
agreements, local content, employment, technology transfer, skills development etc.

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Selection and contract offer
• Contract offer
• Successful tender is accepted and notice of acceptance served on the supplier
within 30 days after the acceptance of the tender
• Where a singed written contract is required, the entity and supplier shall sign
within 30 days after the notice of acceptance
• The contract is entered into force on the commencement date stated in the
contract
• Where supplier fails to sign the contract within 30 working days or fails to
provide tender security, the procurement entity will select successful supplier
from among remaining tenders that are in force, subject to the right of the
entity to reject the remaining tenders

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Methods and procedures for consultants
• Consultants may be procured through either competitive method or
direct invitations
• A procurement entity causes a notice seeking expression of interest in
submitting a proposal to be published in the public procurement
bulletin for consultancy contract and in the newspaper
• Direct invitation is used when economy and efficiency is considered
• Approval of the Board is necessary
• Where services needed are available from limited consultants
• Time and cost variant
• Confidentially in to protect national security

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Method and procedures for consultants
• Shortlisting of candidates
• The procurement entity is responsible for preparation of shortlist of
consultants to be considered to participate in the selection process ( at least 3
and not more than 6 are required).
• Invitation of proposal will be made to the shortlisted consultants
• The content of the request for proposal for consultancy services shall be in
line with S.68-2.
• Selection criterial should be stipulated in the invitation of proposal document
in line with S.69-2.

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Complaints and Administrative Review
• Right to compliant and review
• Any contractor or supplier that claims to have suffered, or that may suffer loss
or injury due to breach of a duty imposed on the procurement entity by this
Act, may seek redress compliant and administrative review
• A complaint may be made by an application to the procurement entity
• Request for administrative review may be made by an application to the
Board
• The decision of the board may be appealed against in court

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Complaints and Administrative Reviews
• Matters not subjected to Complaints or admin Review:
• Selection of method of procurement in accordance with the Act.
• Choice of selection procedures in accordance with the Act.
• Limitation of procurement proceeding to domestic firms in accordance with
the Act.
• Decision of procurement entity to reject a tender in accordance with the Act.

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Complaints and Admin Review
• Complaint procedures
• This review is exercised only when the contract in question is not already in
force
• Procurement entity should not enter into force a contract when complaints
have been received about that contract.
• Complaint in writing should be submitted to the head of the entity within 20
days after becoming aware or should become aware of the matter.
• HOE should attempt to resolve the complaints by mutual agreement of the
supplier.
• HOE issues his written decision within 21 after submission of the complaints,
including the reason for the decision as well as corrective actions to be taken
• The complainant may appeal against the decision with the Board.

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Complaints and Admin Review
• Administrative Review procedures
• Administrative review may be evoked by a supplier when:
• The contract has been entered in to force prior to the time that the supplier became
aware of the matter.
• Suppliers claimed to be adversely affected by the decision of the head of
procurement entity.
• •Procedures
• The supplier submits complaint to the PPA within the required period (21 days) or
when he becomes aware of it after decision by head of procurement entity.
• The Board notifies the HOE about the complaints against him enters review process
and other interests affected may be permitted to participate
• Board within 21 days issues a written decision on the complaints and gives reason
• Please read more on the powers of the board in this matters.

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Disposal of Stores, Vehicle and Equipment
• Authority to Dispose
• Head of procurement entity shall convene a board of survey comprising
representative of the departments with vehicle, unserviceable, obsolete or
surplus stores, plant and equipment which shall report on the items and
subject to a technical report from them, recommend the best method of
disposal after the officer in charge has completed the board of survey form.
• The board of surveys recommendation shall be approved by the head of
procurement entity and the items shall be disposed of as approved.
• For item that become unserviceable for reasons other than wear and tear,
disposal guidelines issues by the Board of procurement authority shall be
followed.

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Disposal of stores…
• Procedures for disposal
• Transfer to government department or other public institution with or
without financial adjustment
• Sale by public tender to the highest bidder, subject to reserve price
• Sale by public auction, subject to reserve price
• Destruction, dumping or burying as appropriate.

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