THE DIFFERENCE BETWEEN PUBLIC

• Focus
PROCUREMENT AND PRIVATE PROCUREMENT
Public procurement focus on value for money while private procurement focus on the use of
procurement as the strategic weapon in cost minimization while maximizing customer
satisfaction
• Source of authority
 Source of authority under the public procurement is from the laws and
regulations while under the private procurement source of authority is from
the owner of the firm.
 • Budget limitation
 Under the public procurement is strictly followed while under the private
there is the high flexibility.
• Objectives

 Under the public procurement the objectives is satisfying the public needs while under
the private procurement the objectives is to make profits.
• Time In public procurement it takes long time to accomplish procurement process while
under the private procurement it takes short time to accomplish procurement process
• Regulations

Decision governed by regulations and act (public procurement act and regulations 2011
and 2013 consecutively.
• Sources of funds

 The source of Government Revenue is taxes paid by citizens and businesses etc.
SIMILARITIES BETWEEN PUBLIC PROCUREMENT AND PRIVATE
PROCUREMENT

• All aims at ensuring continuity of supply to meet services needed

• Maintaining the required quality standards

• Avoiding duplications and wastes standardizations

• All aims at purchasing in low cost

• All aimed to obtain maximum saving

Evolution of Public Procurement

 Good public procurement is essential to the delivery of public services and

central to a sound and accountable fiduciary approach.
 The background of procurement can be traced as far back to 1961, when the
exchequer and Audit ordinance No 21, CAP 439 was enacted as a legal
mechanism for controlling public procurement and supplies activities in the
government
 At this time procurement was highly centralized and the Central Tender Board
adjudicated almost every tender
Evolution of Public Procurement

 1965 - the Financial order part three (store regulations was enacted by the
parliament as the guideline to the use of public fund by the Government
 These Stores Regulations were used in accordance with Section 7 of the
Exchequer and Audit Ordinance, CAP 439 of 1961
 The Government’s effort to undertake public procurement reform in Tanzania
Mainland started in 1992 by commissioning Crown Agent a consultancy to
undertake the Public Procurement and Supply Management Study.
 The Crown Agent report was implemented by the enactment of the Public
Procurement Act No. 3 of 2001 (PPA 2001) which came into effect on 1st July
2001
Overview of PPA No.3 2001

 The PPA is applicable to all procurement financed by public funds, with a

slight exception to Defense and National Security
 The Regulations used were Public Procurement(Selection and employment of
Consultants)Regulations Government Notice NO.137
 Procurement of goods and works Regulation, Government Notice NO.138
 This act provided for the establishment of the Central Tender Board (CTB) as
the central coordinating body for public procurement
 Although the Act was effective, it had its own weaknesses on its applications
that includes the following ;
Weakness of PPA 2001

i. The Central Tender Board was a tender board as well as overseer of other
procuring entities tender board. Thus there was no regulatory body to monitor
it.
ii. Procurement was centralized and PEs were given a certain limit of
procurement. This had a lot of delays and was not efficient due to
bureaucracies.
iii. Accounting officer/Chief Executive Officer of procuring entities were also
Chairpersons of Tender Board.
Overview of PPA No.21 of 2004

 In 2002 a country procurement review was carried to assess and address the
execution and implementation of Public Procurement Act of 2001 and its
weaknesses.
 The outcome of the review resulted into enactment of Public Procurement
Act No.21 of 2004 and its two Regulations published on 15th April 2005.
 These Regulations includes
o PPR GN. 97 of Goods, Works and non-consultant services and disposal of public
assets by Tender
o PPR GN.98 of selection and employment of the Consultants
 It is the legal framework that regulates public procurement of goods, works,
non-consultancy services and consultancy services, The Public Procurement
Act NO. 21 of 2004 and come out with the following as follows
Overview of PPA No.21 of 2004

 Established the Public Procurement Regulatory Authority in place of the

Central Tender Board.
 Changed the composition of the Tender Board, Accounting Officer is no longer
the chairman of the Tender Board.
 Decentralized procurement to procuring entities with no limits.
 Establishment of Public Procurement Appeals Authority (PPAA) to carter for
settlement of tender disputes
 Introduction of Monetary thresholds, Time Limits and separation of powers
and responsibilities in the procurement process.
PPA No.7 of 2011

 In 2011 new Act was enacted repealing PPA 2004.

 The Public Procurement Act (PPA) No. 7 of 2011 (Cap. 410) with attendant
regulations Public Procurement Regulations (PPR) Government Notice (GN)
No. 446 of 2013
Application of PPA 2011 (Sec.2)

 The PPA 2011 became operational after issuance of Regulations in December

2013
 As per Section 2 of the PPA 2011, the Act applies to:
o All public bodies and any other body, or unit established and mandated by
government to carry out public functions;
o Non-Government entities, for procurement financed from specific public finances
o PPP projects, in their relevant (procurement) stages;
o Defense and National Security Organs covering items using open procurement or
disposal methods (not for restricted items)
Features of PPA 2011

 Introduction of the Public Procurement Policy Division (PPPD) in the Ministry

of Finance with the responsibilities of developing a national procurement
policy.
 PPRA has been given more powers to execute its regulatory functions
including cancellation of procurement proceeding where a serious breach of
the law is established.
 The functions of Procurement Management Unit (PMU) have been enhanced
and status of the Head of PMU elevated. According to the PPA 2011, the Head
of PM shall report directly to the Accounting Officer of the procuring entity.
Features of PPA 2011

 PPA 2011 has provided for the integration of the preparation of the APP with
the budget process in which it has made it mandatory for the approval of the
APP to be done by the appropriate budget approving authority
 A new part has been introduced in PPA 2011 to cover for the procurement
under Public Private Partnerships (PPPs) arrangements
 A new section has been added to PPA 2011 to articulate the functions of
Budget Approving Authorities of a procuring entity
Major features of the Public Procurement Act No .7 of 2011

 Arrangement of sections
 Part I (preliminary provisions).
 Part II (public procurement policy division)
 Part III (The Public Procurement Regulatory Authority, PPA 2011 S. 7-30).
 Part IV (Institutional Arrangements such as Tender Board, PMU, Evaluation committee, user
department PPA 2011 S.31-46).
 Part V (Public Procurement Principles,PPA2011 S.47-62)
 Part VI ( Methods of Procurement and Process,PPA2011 S.63-78)
 Part VII (Public Procurement under Public Private Partnership, PPA S.79-82)
 Part VIII ( Prohibitions ,PPA 2011 S.83-87)
 Part IX (Disputes Settlement, PPA 2011 S.88-102)
 Part X ( General Provision ,PPA2011 S.102-108)
 schedules
PUBLIC PROCUREMENT REGULATIONS OF
2013

 PPR, 2013 has been divided into TWELVE (12) parts and NINETEENTH (19)
schedules.
 PPR, 2013 has 380 provisions of regulations that are applicable to the
PPS(Procurement for Public Sector)
Parts and Regulations of PPR, 2013

 Part I: Preliminary Provisions (Reg. 1 to 3)

 Part II: General Provisions (Reg. 4 to 115)
 Part III: Procedures for Procurement of Goods, Works and Non-Consultancy
Services (Reg. 116 to 129)
 Part IV: Procurement of Sector Specific Goods and Services (Reg. 130 to 147)
 Part V: Methods of procurement and their Conditions for Use (Reg. 148 to 172)
 Part VI: Procurement of Used Railway Machinery, Aircraft and Ships [Reg. 173
to 180]
 Part VII: Tendering Proceedings [Reg. 181 to 241]
 Part VIII: Contract Management [Reg. 242 to 252]
 Part IX: Procedures for Selection and Employment of Consultants [Reg. 253 to
322]
 Part X: Procedures for Disposal of Public Assets by Tender (Reg. 323 to 339)
 Part XI: Procedures for Conducting Electronic Procurement (Reg. 340 to 368)
 Part XII: Procedures for Conducting Procurement under PPP (Reg. 369 to 380)
PPR, 2013 Schedules

 1st : Advertisement of Tenders and Disclosure of Tender Award Information

 2nd : Fees and Services Rendered by the Authority
 3rd : Anti-Bribery Policy/Code of Conduct and a Compliance Program
 4th : Authorized Agency Procurement Limits for Petroleum Products
 5th : Fees for Services Rendered by the Agency
 6th : Authorized Procurement Limits for Accounting Officers for Goods, Works
and Non-Consultancy Services [Category A to F]
 7th : Methods of Selection and Limit of Application per Contract for Goods,
Works and Non-Consultancy Services
 8th : Minimum Procurement Processing Time for Tendering for Goods, Works
and No-Consultancy Services
 9th : Preference Scheme for Local Suppliers, Contractors and Service
Providers
 10th : Authorized Procurement Limits for Accounting Officers for Consultancy
Services [Category A to F]
 11th : Methods of Selection and Limit of Application per Contract for
Consultancy Services
 12th : Standard Procurement Processing Time for Consultancy Services
 13th : National and Exclusive Preference for Local Consultants
 14th : Guidelines for Fixing Weights for Evaluating Technical Proposals
 15th : Methods of Selection and Limit of Application for Disposal by Tendering
 16th : Minimum Essential Information for Unsolicited PPP Proposal
 17th : Types of Works or Contracts
 18th : Registration of Suppliers, Contractors, Consultants and Service
Providers to be Eligible to Participate in Preference Scheme
 19th : Tender Securing Declaration Form
Overview of 2016 Amendment

 In 2016, the PPA 2011 and its Regulations 2013 were amended with the
following features
 Established and Approved Standards for Procurement of goods and
Construction of government buildings [ sect. 4A]
 Procurement of goods shall be done in conformity with the established and
approved standards as issued by the relevant government organs through the
PPRA
 Any exemption from the established and approved standards requires
approval of the minister responsible for approving government standards
[Reg.22 A (1)]
 The established and approved standards for Construction of government
buildings and procurement of furniture, shall be issued by the minister
responsible for works [ Reg. 22B (1)]
 PPRA has been given additional function of obtaining price information for
standardized common use items and services in order to ensure that the
prices paid by the PEs conform with the prevailing market prices [ Sect.9
(1) (n)]
 Information from the Procuring Entities to the PPRA to be submitted
promptly and electronically [Sect.36(n)]
 THE END

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