PUBLIC PROCUREMENT. BPLM II, BPSAF II, BAC III - 2019 by Tubeti Mwita

PUBLIC PROCUREMENT
BAC III FT & EV
By
Tubeti Mwita Waise
0657949454/0758506650
[email protected]
Msc-PSCM (MU)
ADPS (TIA)
CPSP(T)-PSPTB Tubeti Mwita
Learning content
 Introduction to public procurement
 Institutional Arrangement
 Public Procurement Process for goods, works
and non-consultancy
 Procurement methods for goods, works and
non-consultancy services
 Tendering process for goods works and non
consultancy service/and disposal of public

assets by tender
 Procurement of consultancy services
 Specifying requirements
 Procurement in Local Government Authorities
(LGA)
Tubeti Mwita
Learning content
 Introduction to public procurement
 Institutional Arrangement
 Public Procurement Process for
goods, works and non-consultancy

 Procurement methods for goods,
works and non-consultancy services

 Procurement of consultancy services
 Procurement in Local Government
Authorities (LGA)
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CHAPTER ONE
INTRODUCTION TO PROCUREMENT
 Introduction
1) Defintion of some key procurement terms
All organisation needs input of in terms of goods,
materials, components and services from external
suppliers or providers to run their activities in the
most effective and efficient manner.
 For example, manufacturing organisation needs raw
materials to convert them into finished goods for sale
and generate more profit.
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Introduction….
 Also public organisation calls for
supplies, services, and works for
better provision of services to their
esteemed customers.
How do these organisations get
their goods, works or services?
 Here is where procurement and
supply chain comes in to facilitate

organisations obtaining their
requirements for fulfillment of
various obligations.
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 Definition of key Procurement terms..
i. Procurement is the legal acquisition
of goods, services, or works in the
most effective and efficient manner
from an external source to fulfill
organization’s objectives.
 This means that goods, services or
works are appropriate and they are
procured at the best possible cost to
meet the needs of the business in
terms of quality and quantity, time,
and location.
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Defintion of procurement terms…
 Procurement is the full range of
activities related to acquisition
of goods, works and services.
 Procurement is the process of
buying materials of the right
quality, in the right quantity
from the right source delivered
to the right place at the right
time in the right price.
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Definition of procurement….
 Procurement is the process of
acquiring goods, works, and services
covering both acquisition from third
parties and from in-house providers.
The process spans the whole cycle
from identification of needs, through
to the end of a service contract or the
useful life of an asset. The process of
procurement starts from need
identification to the contract closure.
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Procurement is the process of obtaining goods or
services in any way including borrowing, leasing
and even by force (Lyson and
Farrington,2006).Procurement and purchasing
sometimes used synonymously but Purchasing
means acquisition of goods, or services in return
for the monetary or equivalent payment.
ii. Price: Is the value of the commodity or service
measured in terms of the standard monetary
unit.
iii. Lead time. The time lapse between when place
an order until the order is delivered
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Defintion of key procurement terms…
iv. Tender: Means an offer, proposal or
quotation made by a supplier, contractor or
consultant in response to invitation to tender
made by a procuring entity (PE) regardless of
the procurement method used.
v. Procurement Management Unit (PMU): Is a
division, department or a Unit in each
procuring entity (PE) responsible for
undertaking procurement proceedings.
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Definition of key procurement terms…
 Procuring Entity (PE): Means Public
body or Unit established and
mandated by government to carry
out public functions. e.g.Local
Government Authorities, Regional
Secretariats, Parastatals, Agencies,
Independent,Government
departments, Ministries etc.
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vii. Supplier(Vendor): Someone who supply
goods or provide services to a
Company or to a procuring entity (PE).
viii.Inventory. All the goods and materials
held by an Organisation for sale or use.
ix. Inventory Control: Is a technique of
controlling materials in an Organisation
in order to avoid overstocking,
understocking and running out of
stock.
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Definition of key procurement terms
x. Specification: Is the
detailed method of
describing requirements.
x.Negotiation. Is an occasion
where two or parties interact
in an attempt to reach a
jointly acceptable position.
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Definition of key procurement terms…
xii.Corrupt practice: Means offering,
giving, receiving or soliciting of
anything of value to influence the
action of public officer in the
procurement process or contract
execution.
xiii.Competitive tendering: Is a means in
procurement whereby suppliers,
contractors or consultants are invited
by the procuring entity to compete
with each other in submitting priced
tenders for goods, works or services.
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Definition of key procurement terms..
xiv. Goods: Means raw materials,
products, equipment and
other physical objects of every
kind and description, whether
in solid, liquid or gaseous
form.eg, Stationeries, Cereals,
furniture, Computers, Vehicles
etc.
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Defintion of procurement…
xv. Procurement is the process of
obtaining goods or services in
any way including borrowing,
leasing and even by force
(Lyson and Farrington,2006).
 Procurement and purchasing
sometimes used synonymously but
Purchasing means acquisition of
goods, or services in return for the
monetary or equivalent payment.
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xvi. Services: Means anything of
procurement rather than goods, or
works e.g. Provision of cleaning
services, security services, catering,
research, teaching etc.
xvii.Works: This means works associated
with construction, reconstruction,
demolition, repair or renovation of
buildings, structure, roads or any
other civil works like bridge
constructions, site preparation, plant
installation etc.
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xviii. Consultancy Services: Means
services of an intellectual or
advisory nature provided by a
practitioner who is skilled and
qualified in a particular field or
professional e.g. Provision of
engineering service,
Accountancy, auditing, financial
services, management services,
teaching etc.
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xviii.Non consultancy service. These are non
intellectual services provided, e.g provision
of cleaning services, security services,
catering services etc.
xix.Accounting Officer. Means a government
officer appointed in accordance with the
provision of Public Finance Act 2004 to hold
a Vote and Account for all monies expended
from such a vote.
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xx. Terms of reference (TOR).
Statement issued by the
procuring entity giving
the definition of the
objectives, goals and
scope of the services to
be procured
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xxi.Procurement Contract: Is a
written agreement that allocate
the risks and rewards of a
transaction made between buyer
and supplier.
xxii.Lowest evaluated Cost. Means
the cost offered by the supplier,
contractor or consultant that is
found to the lowest after
consideration of all relevant
factors
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xxiii.Procurement process.
Means the successive stages
in the procurement cycle. This
include planning, choice of
procedure, measure to solicit
offers from tenderers,
examination and evaluation of
those offers, award of
contract and contract
management.
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xxiv.Disposal process: Means the successive
stage in the disposal of cycle, including
planning, choice of the procedure, measures
to solicit offers from tenderers, examination
and evaluation of those offers and award of a
contract.
xxv.Contractor: Means a firm, company,
corporation, organization, partnership or
individual person engage in civil, electrical or
mechanical engineering or in construction of
building work of any kind including repairs
and renovation
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xxvi.E-Procurement. Means
the using of internet to
operate the transaction
aspects of requisition,
authority, ordering,
receipting and payment
process for the required
service or works.
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xxviii.Procurement
planning. Is
the process of determining
what is needed, how is
needed, how much, where,
how and when
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xxviii. Closed Framework agreement is a
contractual arrangement which allows a PE
to procure goods, services, or works that
are needed continuously or repeatedly at
an agreed price over an agreed period of
time through placement of number of
orders.
xxix. Open framework agreement is an
agreement with specified terms and
conditions without an agreed price
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xxx. Tender price is the sum stated by a tenderer
in his tender for carrying out the contract.
xxxi. Tender security is a guarantee or bond from
the tenderer’s bank or Insurance Company
which should be provided by the tenderer as
a part of its bid with the aim of protecting
the PE against the risks of tenderer’s
conduct during the tender period which
would warrant the security’s forfeiture or
otherwise returned to the tenderer after
tender process.
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xxxii.Tender securing declaration is the security
by way of declaration provided by the tender
when the procurement is within the
exclusive preference limits, provided under
the ninth and thirteenth schedules to these
regulation.
xxxiii. Tender period is the period between the
date of the first publication of the invitation
to tender or the date of the mailing of the
invitation to tender and the closing date for
the submission of tenders
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xxxiv.Tender validity period is the period of time
subsequent to the closing date for submission
of tenders for which the tender price and the
conditions of the tender shall not be subject
to any change by the tenderer.
xxxv.Highest evaluated price is the price offered by
a tenderer for revenue collection services or
for the asset to be disposed of ,that is found
to be the highest after considering relevant
factors specified in the tender documents and
apportioning weight for such factors.
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xxxvi.False representation: Means a
misrepresentation of fact made by one
person to another with intent to deceive and
with the knowledge that it is false.
xxxvii.Pre-qualification. Is a formal procedure
whereby suppiers, contractors or consultants
are inivited to submit details of their
resources and capabilities which are screened
prior to invitation to tender on the basis of
meeting minimum criteria on experience,
resources, capacity and financial standing.
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xxxviii.Post-qualification. Means due diligence
procedure applied after tenders have been
evaluated prior to award of a contract to
determine whether or not the lowest
evaluated tenderer has the experience,
capability and resources to carry out the
contract effectively.
xxxix.Collusive practices means impairing or
harming or threatening to impair or harm
directly or indirectly, any part or the property
of the Party for the purpose of influencing
improperly the action or part or in contracting
or in furtherance of a corrupt practice or
fradululent Practie.
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xl. .Procurement proceeding , means
the proceedings/procedure to be
followed by a PE or any approving
authority when engaging in
procurement;
xli. Procurement Process, means the
successive stage in the procurement
cycle, including planning, choice of
procedure, measures to solicit offers
from tenderers, examination and
evaluation of those offers, award of
contract and contract management.
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xlii. Public Private Partnership (PPP). Is a long-term
contract between a private party and a
government entity, for providing a public asset
or service, in which the private party bears
significant risk and management
responsibility, and remuneration is linked to
performance.
xliii. Solicited Private partnership projects means
proposals for public Private Partnership
Projects that are initiated by public bodies and
represent government’s priorities.
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Unsolicited Private partnership
xliv.
 Project means a proposal that are initiated by
a private sector party to a public institution

for consideration as a public private
partnership project.
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 Procurement is a wider term than
purchasing, the term purchasing
simply means acquisition of
goods or services in return for
monetary or equivalent payment
while Procurement is a process of
obtaining goods or services in
any way including borrowing,
leasing and even by force or
pillage
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 Procurement function
comprises essential activities
associated with the acquisition
of the materials, services and
equipment used in the
operation of the organisation
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xlv. Public procurement. Means buying,
purchasing, renting, leasing or otherwise
acquiring any goods or works or services
by a procuring entity spending public
funds on behalf of a ministry, department
or regional administration of the
Government or public body and includes
all functions that pertain to the obtaining
of any goods or works or services
including description of requirements,
selection and invitation of tenderers and
preparation and award of contract
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
Procurement activities include
purchasing, market research,
vendor appraisal, supplier
performance evaluation,
negotiation of contracts, value
analysis,supplier development,
Supplier involvement in new
product design, disposal of
products/scraps.
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Procurement process include the
identification of need,
investigating and selecting a
supplier, preparation and issue of
purchase order, follow up of the
order, receipt and inspection of
material, auditing the invoices
and authorization of payment and
closing the order.
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2.Types of Requirement(Categories
of procurement)
 Procurement, is classified into
four categories as mentioned
hereunder:-
a. Works: Procurement of works involves but
not limited to the following;-Construction,
rehabilitation, maintenance and repair of
building, bridges, roads, plant installation,
electrical installation, any kind of civil works
etc.
b) Goods. This includes items such as materials,
drugs, food stuff, stationeries, computers
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c) Non-consultancy services.
E.g. Provision of cleaning
services, security services,
revenue collection, catering
etc.
d) Consultancy service.
E.g.Engineering design,
drawing, research, teaching
etc
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3. Types of Procurement
a) Public Procurement
b) Private Procurement
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Public Procurement
 Public Procurement is defined as
the legal acquisition of goods,
services or works in the most
effective and efficient manner by
using taxpayer’s money.
 Public Procurement is done by the
government and its institutions,
ministries, agencies and
independent departments which
receive funds from the
government. Tubeti Mwita
Public Procurement cont.....
 Examples of organisation,
institutions, agency, or company
financed by the government are
like UDSM, MUNICIPALS, MU, TIA,
IFM, TANESCO, TRA, TPA etc.
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Meaning cont...
 Public procurement is financed by country’
taxpayers who are the chief source of various
government taxes. The final impact of public
procurement is felt by citizens/taxpayers who
mandated the government on hand to run it.
 Procurement in public sector is regulated by
the Public Procurement Act (PPA No.7 of 2011)
and Public Procurement Regulations (PPR GN.
446 OF 2013) together with Public
procurement (Amendment) Act No. 5 2016
with its Reg. of 2017 through enforcement by
Public Procurement Regulatory Authority
(PPRA).
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Meaning cont...
 In addition, there is also Public Procurement
Appeal Authority (PPAA) that review various
appeals from unsatisfied parties with public
procurement process.
 Public Procurement Policy Division (PPPD) is
also involved in regulating public
procurement by formulating various policies
related to procurement in the public sector.
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 Objectives of public procurement
 Primary /Main Objective.
 The main objective s of public
procurement includes acquisition
of supplies of right quantity, of
right quality,of right price, from
right supplier/source and
delivered at the right time
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 Secondary objectives of public
procurement.
i. It is through public procurement
sysytem which gvt provides service
ii. Demonstrate accountability and gain
ligitimacy from form its citizen
iii. Achieving value for money in
government expenditure
iv. Reducing corruption,through
competition, budgetary savings
v. Reduce debt levels.
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Meaning cont....
 Benefits of efficient public procurement

i. Good health facilities, i.e. buildings, medical-equipment,
medicines & drugs, etc
ii. Good roads, airports, seaports and railways
iii. Good education facilities, e.g. schools building and
related facilities
iv. Enhances the effective use of public financial resources.
v. Improves the availability, quality, reliability and cost of
public services.
vi. Encourage development of private sector
vii. It supports social economic or political objectives
viii. It is used to stimulate economic activities, protection of
industry sector,removing disparate,creation of
employment, environment protection.
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vi. Encourages accountability and responsibility
in the supply management process.
vii. Improves participation and growth of the
private sector.
viii. Is an integral part of any Good Governance
process
 In simple words public procurement increases
the national wealth through acquisitions and

maintenance of various assets and properties
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 Implication of inefficient
procurement
i. Encourage corruption
ii. Delay in delivery
iii. De-motivate private sector
iv. Increase cost of goods and
services
v. Loss of public financial
resources. Tubeti Mwita
Policies of Public Procurement
Public procurement processes and
procedures are centered on the policies which
give directives on how to safeguard the public
interests.
There are four major policies as explained
below;
i. The need for economy and efficiency in the
use of public funds.
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Policies of Public Procurement
Major policies cont...
ii. Giving all eligible suppliers , contractors,
and service providers equal opportunities to
compete
iii. Encouragement of national manufacturing,
contracting and service industries;
iv. To foster integrity, accountability, fairness
and transparency in the procurement
process
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Pillars or Principles of Public Procurement
1. Equal Opportunities
2. Fair treatment/Equality
3. Transparency
4. Accountability & Responsibility
5. Value for Money
6. Integrity/probity and ethics
7. Appeal right
8. Competition
9. Economy
10. Professionalism
11. Promotion of domestic suppliers
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Pillars or Principles cont..
1. Equal opportunities
 A fair public procurement system provides
all participants an equal chance to
participate and compete in procurement
activities by avoiding discrimination among
potential bidders.
 That means full and clear information will
be given to all interested bidders with a
certain procurement proceedings in the
same means. e.g. through letters, news
papers, etc
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Pillars or Principles cont..
2. Fair treatment
 That means all the offers from
bidders will be assessed against the
same criteria, using same methods.
 Therefore, the specification of
requirements, procedures or
methods used in the procurement
should not be designed to favour
some suppliers at the detriment of
others i.e. specification should
neutral.
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Pillars or Principles cont....
2. Fair treatment cont..

 Suppliers should be selected
on the basis of their

qualifications and merit of
their offer and not otherwise.
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3. Transparency
 Procurement process should be
conducted in such away there is
openness and clarity on
procurement policy and all
interested parties know in advance
the actual procedures, process,
methods, and criteria by which
contracts will be awarded and
managed.
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3. Transparency cont.....
 It is required that all evaluation criteria,
methods, procedures and area of

assessment be made known to all the
bidders during the solicitation process.
 The documents related to procurement
proceedings like Tender documents, etc

should contain simple clear and complete
information.
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4. Accountability and responsibility
 These procurement officials
should be made liable for their
doings and decision made when
procuring, meaning that those
executed their task effectively,
efficiently, legally and ethically or
wrongly doings would be
rewarded accordingly.
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4. Accountability and responsibility
cont....
Unethical officials will be
punished through termination
from civil service, and if possible
fined, jailed or all punishments
given at the same time through
disciplinary hearings or court of
law depending on the level
misconduct or abuse the office.
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5. Value for money
Procurement activities should aim at
acquiring the right items at the right time,
and at right price to support the
organization.
This means minimum resources should be
used to achieve the procurement intention.
This insist on ensuring that whichever that is
paid for and received should worth the sum
paid out.
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Pillars or Principles cont...
6. Competition
 Procurement system should be
able to attract high quality
suppliers, service providers and
contractors capable of meeting
government or organisational
needs through competition in
order to obtain quality goods,
services or works at reasonable
price. Tubeti Mwita
6. Competition cont.....
 Media with wider geographical
circulation will be used to provide
information to many vendors about
the public requirements in order to
influence sound competition.
 Therefore, procurement should be
carried out by competition unless

there are convincing reasons to the
contrary.
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7. Integrity
 The public officials should carry out their
duties according the laid down policies,

procedures and laws in general.
The public officials must be honest in all of
their procurement dealings with tenderers
and general public. They should not get
involved into corrupt, fraudulent or any
issues that might paint bad the image of the
public office.
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8. Appeal rights
 Potential suppliers should be
provided with the mechanism for
review of grievances and correct
failures of the system.
 That means all the tenderers who
felt dissatisfied by the way

procurement process carried out,
have room to make an appeal in
writing to relevant independent
body within the time specified.
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9) Promotion of domestic suppliers
 Includes defining target group and
eligiblity,reservation,application of tender
securing declaration.
10) Economy
 Means achieving desired goals at minimum
cost.
11) Professionalism. Acting professionally
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Private Procurement
 Private procurement refers to the acquisition
of requirements from vendors/suppliers for
particular organization use by using its own
fund other than public fund or taxpayer’s
money.
 This procurement type is normally done in
various companies, non-government
organizations, banks, individuals, etc using
fund from their own source, loans and or
grants quite different from taxpayer’s
money/public fund.
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Private Procurement
All the entities must not be owned or
procure by money from the public.
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Private Procurement
Private procurement cont...
 The instances of private
organizations are TBL, TCC, Coca
Company ltd, Exim Bank, Swiss
Port ltd, TAYOA
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Similarities between Public and
Private Procurement
i. They both aim to acquire quality goods,
works and services at the lowest cost.
ii. Both ensure continuity supply of
requirements to their organization.
iii. They both adhered to the principles of
procurement
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Difference between Public and Private sector
Procurements
i. Magnitude of spending or
Volume of purchase
 The magnitude of the public
procurement is big, over 80% of

government revenue is spent on
procurement, while for the
private sector it is not so big as
for the public sector.
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Difference cont...
ii. Regulations.
 The activities and decision
making process of public
institutions are governed by the
regulations set aside e.g. PPA
2011. While for the private sector
the decision process is guided by
the owner of the enterprise or
management of the enterprise.
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Difference cont.....
iii.Sources of funds
The sources of funds for the
public procurement are taxes
paid by the citizens. Where
this is not the case for the
private sector their source is
the owner’s capital and profit
obtained from the business.
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iv. Sovereignty
 In public procurement powers
are in the public or people
who are tax payers, they can
change rules. While on private
sector the power is in the
owner of the company
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v. Accountability
 Public officials engaged in
public sector procurement, are
accountable to tax payers or to
the public. Whereas for the
private sector procurement
officials are accountable to the
management/ or the owner of
the entity.
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vi.Budget limitation
 Budget is strictly followed in
public sector procurement

whereas is not the case for the
private sector procurement
where changes can be made
as per management decision
to suit their needs.
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Difference cont...
vii. Objective
 Public sector procurement aim at
providing requirements to users,
members and general public
when needed at the best value for
money but in private
procurement, the aim is to
provide requirements needed that
enable the organization to
generate more profit which then
make business firms competitive.
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4.Evolution of Public procurement
 Evolution of public procurement in

Tanzania- the background to present
 Government in 1996 commissioned
Crown Agent as Consultant to study
the country’s procurement system
and assess its adequacy.
 The study concluded that there was
no uniform system of procurement in
place as each entity operated
differently using un-regulated public
procurement system
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Evolution of public procurement…
 Evolution cont…
 There were no standard documents
or records used in the procurement
function
 There was no central organ
responsible for coordination and
regulation of the government
 The Government undertook measures
to reform public procurement by
enacting the Public Procurement Act
No. 3 of 2001 (PPA 2001).
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 Evolution cont….
 This act provided for the
establishment of the central
Tender Board (CTB) as the central
coordinating body for public
procurement activities within the
government.
 As a result, public procurements
undertaken in the country from
2001 was governed by the PPA
2001 and its Regulations.
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 The regulations used were Public
Procurement(Selection and
Employment of Consultants)
Regulations-Government Notice
No. 137 and Procurement of
Goods and Works Regulations-
(Government Notice No. 138)
both published on 13th July, 2001
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 The Local Government Authorities
(LGAs) used the regulations made
under section 65 of the Local
Government Finance Act 1982.
Local Government (Selection and
Employment of Consultants)
Regulations 2003 (Government
Notice No. 48) and the Local
Government (Procurement of
Goods and Works) Regulations of
2003 (GN No 49).
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 The same Act established Public
Procurement Appeal Authority (PPAA)
to deal with resolution of complaints
and disputes arising from the
government procurement process.
 In 2002 the World Bank engaged a
Consultant to carry out a country
Procurement assessment. The Country
Procurement Assessment Report
(CPAR, 2003) came up with a number
of recommendations which related to
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 The CPAR 2003 report recommended
the following as a way of improving
procurement system in the country:
i. To disseminate Local Government
Regulations 2003
ii. Establishment of procurement journal
iii. To amend PPA No 3 of 2001 to
decentralize procurement undertakings
iv. To establish a Procurement Regulatory
Board,
v. Introduce time limits to process
procurement
vi. Provide protection to whistleblowers
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 Since CPAR 2003, the
procurement system has
undergone tremendous reform
accommodating the
recommendations made on the
assessment. e.g.
 Enactment of the Public
Procurement Act, (PPA No. 21
of 2004) which repealed the
PPA No. 3 of 2001. Tubeti Mwita
 The PPA No.21 of 2004, fully
decentralized the procurement
functions to procuring
entities.Established the procurement
oversight body, The Public Procurement
Regulatory Authority (PPRA).
 Government has fully operationalized
the Public Procurement Appeals
Authority (PPAA).
Tubeti Mwita
 Bidders now are given equal
opportunity to compete
 Corruption chances are
minimized(?)
 Standardized procurement
procedures have been
established
 Institutional arrangement is
well laid down Tubeti Mwita
Evolution of public procurement..
 Current situation.
 Despite the significant changes and
achievement made with the application of PPA
No.21 of 2004 with its Reg. of 2005, the act
had its weakness which lead to its
replacement made in 2011 with enactment of
public procurement act # 7 of 2011 and its
regulations of 2013.
 The following were the weaknesses of PPA
No.21 of 2004.
Tubeti Mwita
Evolution of public procurement..
 Current Situation cont….
 Weaknesses cont…
i. Procurement transactional costs still

increased
ii. Corruption in public procurement still a
problem
iii. Lack of value for money procurement
iv. Act did not provide room for procurement
of used equipment
v. The need to establish national policy
division (Public Procurement Policy
Division) (PPPD) Tubeti Mwita
 Despite its strength, PPA No. 7 of 2011 was
amended to some of its sections, this lead to
the enactment of new PPA known as:
 Public procurement (Amendment Act),No.5 of
2016, with its regulations of 2017.
 Hence we now have PPA No7.of 201 1 with its
Reg. of 2013 (GN.446) which read together
with Public Procurement (Amendsment) Act,
No 5 of 2016 with its Reg.
 In LGA also we have also Local Government
Tender Board Regulations of 2014 (GN 330).
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 Areas covered in the Amendment Act
i. Inclusion of local firms and experts in
consultancy contract (sect 55A)
ii. Use of local experts in goods, works and non
consultancy service contract (Sect 55B)
iii. Preference to local goods (Sect 55C)
iv. Capacity building of local firms (Sect.55D)
v. Preference to local communities and social
groups.
vi. Procurement directly from manufacturer, Dealer
or service provider (Sect.65A)
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vii. The use of approved procurement standard for
goods(Sect 65B)
viii. Procurement of lifesaving health commodities
(Sect 67A)
Tubeti Mwita
CHAPTER 2
INSTITUTIONAL ARRANGEMENT IN PUBLIC
PROCUREMENT
 In order for public procurement to
be undertaken in accordance with
the law for any PE, the following
parts are directly and or indirectly
involved in one way or another.
The following parts of the PE are
directly involved in Public
procurement as parts of the PE.
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1. Accounting Officer
2. Procurement Management Unit
(PMU)
3. Tender Board
4. User department
5. Evaluation committee
6. Budget approving authority
 Other organs which are indirectly
involved as regulators of public

procurement are:-
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1. Public Procurement Regulatory
Authority (PPRA)
2. Public Procurement Appeals Authority
(PPAA)
3. Procurement and Supplies
Professional and Technicians Board
(PSPTB)
4. Public Procurement Policy Division
(PPPD)
5. Government Procurement Services
Agency (GPSA) Tubeti Mwita
1. Accounting Officer
 Accounting officer means a
government officer appointed in
accordance with the provisions of
the Public Finance Act or public
officer statutorily appointed to
hold a vote or subvention and
accounts for all monies expended
from that vote or subvention.
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Accounting Officer….
 Functions and Powers of Accounting
Officer (PPA No7. sect 36 (1)).As far as
procurement is concerned, Accounting
officer shall have the following
responsibilities:-
i. Establish tender board.
ii. Appointing members of the tender Board.
iii. Establishing PMU and staffed to an
appropriate level.
iv. Approving all procurement opportunities
v. Appointing evaluation committee and
negotiation team.
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Accounting Officer….
vi. Communicating award decision.
vii. Certify the availability of funds to
support the procurement activities.
viii. Signing the contracts for the
procurement activities on behalf of
the PE
ix. Handling complaints by Suppliers,
contractors or consultants.
x. Submitting a copy of complaints
and reports of the finding to PPRA
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Accounting Officer…..
xi. Ensure that the implementation of the
contracts is in accordance with the terms
and conditions of the award.
xii. Submit to PPRA a list of contracts awarded,
annual procurement plan and a list of
blacklisted firms.
xiii. Implement the decisions made by PPRA and
PPAA after investigation or adjudication of a
complaints.
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Accounting Officer…..
xiv. Providing feedback on the

implementation of the PPRA or
PPAA within 14 days of receiving
communication of the decision
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Powers of A/O…
i. A/O may request for any

professional or technical advice
from any appropriate body or
person in Tz or elsewhere if his
entity does not have the required
technical experts {Sect 36(2)}
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Powers of A/O…
ii. A/O may, before communicating
award decision, require the tender
board to provide a briefing of the
award of a particular tender and
may require the Chairman, any
member of tender board or
evaluation team or the PMU to
produce any record or other
documents relating to any tender
and to answer all relevant questions.
{Sect 36(3)} Tubeti Mwita
iii. Where A/O is not satisfied with the
decision of the tender board, he shall:-
a. Return the decision to the tender board
for review giving reasons for
dissatisfaction and
b. Where not satisfied with the outcome of
the review, refer the matter to PPRA
{ Sect 36 (4)}
NB: A/O shall be responsible for
procurement decisions made by his PE
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2. Procurement Management Unit (PMU)
 PMU means a division or department in
each PE responsible for the execution of
the procurement functions.
 PMU shall be established in every PE and
staffed to an appropriate level(PPA No7
of 2011 Sect 37(1)
 PMU consist of procurement and other
technical specialist together with the
necessary supporting and administrative
staff PPA No.7 of 2011 sect 37 (2)
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 PMU shall be headed by a person with
appropriate academic and professional
qualifications and experience in
procurement function registered by
the procurement professional body.
 The procurement professional body is
called Procurement and Supplies

Professionals and Technicians
Board(PSPTB),formerly was as known
as National Board For Materials
Management (NBMM).
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 The Head of PMU Shall report direct to the
Accounting Officer of Procuring entity (PE),this
is in accordance to Sect 37(4) of PPA No.7 of
2011.
 The Accounting officer shall ensure that ,PMU
has a Sub Vote and is allocated fund in the
budget to carry out its responsibilities (Sect
37(5) of PPA No 7 of 2011.
 PMU shall be established to every Public entity
regarding it undertake procurement, this is in
accordance of the requirements of law.
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Functions of Procurement Management
Unit(PMU).Sect. 38 (PPA No.7 2011
a) Manage all procurement and disposal
by tender activities of the PE except
adjudication and award of the contract.
b) Support the functioning of the tender
Board.
c) Implement the decisions of the tender
Board
d) Plan the procurement and disposal by
tender activities of the PE.
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e. Recommend procurement and disposal by
tender procedures.
f. Check and prepare statement of
requirements.
g. Prepare tendering document.
h. Prepare advertisement of tender
opportunities.
i. Prepare contract documents
j. Issue approved contract documents
k. Act as secretariat to the tender Board
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l. Maintain and archive records of the procurement
and disposal process.
m. Maintain a list or register of all contracts
awarded.
n. Prepare monthly reports for the tender Board
o. Prepare and submit to the management meeting
quarterly reports on the implementation plan
p. Co-ordinate the procurement and disposal
activities of all departments
q. Prepare other reports as may be required from
time to time.
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3. Tender Board
 Each Public Body shall establish Tender
board for procurement of goods, services
works and disposal of public assets by
tender.(Sect 31. (1),PPA No.7 2011
 Tender Boards of public entities other
than Local government Authorities
composed of eight people as follows:-
i. Chairman who shall be one of the
heads of department or a person of a
similar standing and who shall be
appointed by the Accounting officer
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ii. Six members who are the heads of
department or person of similar standing
within the same procuring entity (PE) and
who shall be appointed by the accounting
officer.
iii. The secretary of the tender Board who shall
be the head of PMU.
 The composition of the Local government
Authorities Tender Board was made in
accordance of the Local Government
Authorities Tender Board Regulation of 2014
(GN.330).
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 The composition of the Local Government Authorities
Tender Board is as follows:-
i. The chairman who shall be the Head of
department in the Council but not one that
frequently initiates procurement
proceedings.
ii. Four other heads of department
iii. The council legal officer or his
representative shall attend all tender Board
meetings as advisor but shall note vote in
any decision.
iv. The secretary of tender board who shall be
the Head of PMU in the Council and shall
be appointed by Accounting Officer..
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 Members of Tender Board shall be appointed
with regard to their technical competence and
skills required for the discharge of the
functions of the Tender Board.
 In LGAs, after appointing a member or
members of the Board, the A/O shall submit
to the Finance committee the names and
qualification of the members of the Tender
Board for ratification and approval.
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 Note. The law insisted that for the purpose of
strengthening good governance, Council
Treasurer shall not be appointed a member of
the tender Board.
 The Chairman and members of the Tender
board regardless of Local government or
Central government shall be appointed for
period of three years and shall be eligible for
reappointment for further period of three years.
After the completion of the two tenures a
tender Board member shall not be reappointed.
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 Under exceptional circumstances, A/O may
extend the tenure of the Board member or
members for a period not exceeding three
months from the date of expiry of the initial
period of appointment.
 The A/O may terminate the appointment of
the Chairman and members of the Board at
any time for the following reasons:-
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a. Abuse of office
b. Corruption
c. Incompetence
d. Any physical or mental incapacity that
renders a person incapable of preforming
the duties of that office.
e. Failure to attend three consecutive
meetings of the Board without reasonable
ground
f. Conviction of an offence
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 Any member of the Board may
resign upon giving one month’s
notice in writing to the A/O.
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 Functions of the Tender Board.
i. Approve tendering and contract
documents
ii. Review all application for variations,
addenda or amendments to ongoing
contracts.
iii. Deliberate on the recommendations
from PMU and award of contracts
iv. Approve procurement and disposal by
tender procedure.
v. Ensures that the best practices in
relation to procurement and disposal by
tender are strictly adhered by PE.
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 Powers of tender Board
a) Request from any professional or
technical advice from any appropriate
body or person in Tanzania or
elsewhere.
b) Examine procurement records and
documents.
c) Do all the things as they me be
considered reasonable.
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4. User department
 User department is any
department/division/Unit in a PE that
initiate procurement.
 No procurement or disposal can be
undertaken if not initiated by user

department.
 User department initiate procurement,
after getting an approval by responsible

officials of the organisation, PMU goes
on with procurement procedures.
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Functions of User department in
procurement
i. Liaise with and assist PMU
throughout procurement or
disposal by tender process to the
point of contract placement.
ii. Initiate procurement and disposal
by tender requirements and
forward them to PMU.
iii. Prepare technical inputs to
statements of requirement
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 Functions of User department in
procurement….
iv. Propose technical specifications to PMU
v. Participate in tender evaluation.
vi. Certify for payments to suppliers,
contractors or consultants.
vii. Report any departure from terms and
condition of an awarded contract to the PMU.
viii. Forward details of any required contract
amendments to PMU for action.
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Functions of User department in
procurement…
ix. Maintain and archive records of
contracts management
x. Prepare reports required by PMU,
Tender Board or Accounting
officer.
xi. Oversee contract implementation.
xii. Liaise with PMU during budgeting
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5. Evaluation committee
 All evaluations shall be conducted by an
evaluation committee, which shall report
to the procurement Management Unit
(PMU) (Tender Board Reg. 27(1),2014
 Evaluation committee shall be formed
while evaluating
tenders/proposal/quotations in
accordance to Sect 40 of the PPA No.7 of
2011
Tubeti Mwita
 Evaluation committee shall be
formed for each tender and conduct
evaluation and prepare a report to
the PMU.
 The membership of the evaluation
committee shall be recommended by

PMU and approved by Accounting
officer.
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 An Accounting officer shall form a tender
evaluation committee comprising of not less than
three (3) and not more than five members
(Reg.202(1))
 In exceptional circumstances, the accounting
officer may form an evaluation committee of
more than five members depending on the value
and complexity of procurement
 Members of the evaluation committee may be
external to the PE, where the required skills or
experience are not available.
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 All members of evaluation
committee shall sign the code of
ethics (Personal covenant form)
declaring that they do not have
any conflict of interest in the
procurement requirement.
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 Evaluating tenders
 Tenders shall be evaluated by tender
evaluation committee nominated by A/O.
 All tenders received before or at tender
submission deadline shall be opened in
public in the presence of bidders or their
representatives and evaluated using
criteria prescribed in the bid document.
 Tenders received after submission
deadline shall be returned unopened to
respective bidders.
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Evaluation team shall prepare for
submission to PMU a detailed
evaluation report giving specific
reasons on which its
recommendations for the award
are based.
PMU shall review the evaluation
report submitted and submit
report and recommendations to
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 Tender Board shall review the
evaluation and recommendation
made by PMU and may either
a. Approve the recommendation and
authorize acceptance of the tender
and award a contract or
b. Refuse to authorize
recommendation for award of the
tenders and refer the evaluation to
PMU with instruction to re-evaluate
or re-tendering or other action.
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 If tender board approve
recommendation of evaluation team,
inform A/O of its award decision
within three working days of making
the decision.
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 Upon receipt of the notification of award decision
from the tender board, the A/O shall having
satisfied himself that proper procedures have
been followed and within three(3) working days
shall issue a notice of intention to award the
contract to all tenderers who participated in the
tender in question giving them seven (7)
working days within which to submit a
complaint if any.
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 NB. In LGAs A/O shall before issuing notice of
intention to award a contract, submit the
award decision to Finance committee for
scrutiny and where the committee is
dissatisfied by the decision of the tender
board, it shall request PPRA to conduct
investigation.
 Where no complaints have been lodged, A/O
shall issue notice of acceptance of a succefully
bidder.(Contract)
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 A procurement contract enter into
force when a formal contract is signed
by the parties to the contract.{ Sect
60(11) PPA No.7 2011 which reads
together with Public Procurement
(Amendment Act) No.5 2016 Sect.
18(b)}
 Note: No person or firm shall sign a
contract with any public body unless
the award has been approved by
tender board. Tubeti Mwita
6. Budget approving authority.
 This is an authority to every PE
responsible for approving budget of

the Public Body (PE), E. g. Full
Council in LGAs
 The authority has the following
responsibilities in relation to
procurement:-
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i. Review and approving of Annual
procurement Plan and based on its budget
and action plan.
ii. Reviewing of quarterly procurement report
submitted by the accounting officer
iii. Ensuring that the organisation complies
with the provisions of the Act and
regulations.
iv. Ensuring that the Tender Board’s
recommendations with respect to
established wrongdoings in procurement
activities are implemented.
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 Powers of Budget approving
authority
 Disciplining of the staff implicated
on wrong doing
 May request PPRA to carry out
procurement Audit or investigations

where it is not satisfied with the
implementation of any procurement
in the organisation .sect (33) PPA
No.7 (2011)
Tubeti Mwita
 Other organs involved in Public procurement
sometime we call them procurement
management organs/external players as
mentioned above are:-
i. PPRA
ii. PPAA
iii. PPPD
iv. PSPTB
v. GPSA
 These are independent organs regulating public
procurement in one way or another as follows:
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i. Public Procurement Regulatory Authority (PPRA)
 PPRA is established under sect 7 of PPA No. 7 of
2011
 Objectives of PPRA (Sect 8,PPA No.7, 2011)
i. Ensure the application of fair, competitive,

transparent, non-discriminatory and value for
money procurement standards and practices
ii. Set standards for the public procurement
systems in the United Republic of Tanzania
iii. Monitor compliance of procuring entities(PEs)
iv. Build, in collaboration with Public Procurement

Policy Division and other relevant professional
bodies, procurement capacity in the United
Republic
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 Functions of PPRA ( Sect,9(1))
i. Advise Government and statutory bodies on issues
pertaining to procurement principles and practices.
ii. Monitor and report on the performance of the
public procurement systems in the United Republic
of Tanzania and advise on desirable changes
iii. Prepare, update and issue authorized versions of
the standardized tendering documents, procedural
forms and any other attendant documents to
procuring entities
iv. Ensure in collaboration with relevant professional
bodies, that any deviation from the use of the
standardized tendering documents, procedural
forms and any other attendant documents is
effected only after prior written approval of the
Authority
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Functions of PPRA…..
v. Issue guidelines under this Act;
vi. Organize and maintain a system for the
publication of data
vii. Conduct periodic inspections of the
procurement related records
viii. Monitor the award and implementation of
public contracts
ix. Undertake research and surveys nationally
and internationally on procurement matters
x. Administer and enforce compliance with the
provisions of PPA ,PPR and guidelines issued
And others.
Tubeti Mwita
2. Public Procurement Appeals
Authority (PPAA)
 Public Procurement Appeals
authority is established under
Sect 88(1) of PPA
Tubeti Mwita
 Functions of PPAA
i. To receive complaints and appeals of
procurement process or decisions made
by the government or its institutions in
relation to public procurement.
ii. To review decisions made by A/O in
relation to procurement process
iii. To review decisions made by PPRA with
respect to blacklisting of tenderers
iv. To order for a corrective action where it
is found that there breach of
procurement procedure.
Tubeti Mwita
3. Government Procurement Services
Agency(GPSA)
Functions.
The Agency is responsible for:-
i. Procurement storage and
distribution of stock items for
re-sale to Government and
Non-government institutions.
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ii. Provision of clearing and forwarding
and consultancy services
iii. Provision of warehousing facilities.
iv. Arranging for procurement of
common use items and services by
Ministries, Independent Department
and Agencies (MDAs) and Local
Government Authorities (LGAs) using
framework contracts.
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4.Procurement and Supplies
Professionals and Technicians Board
(PSPTB)
Functions:-
i. Formulate and advice the government on policy
relating to procurement and supplies professional
ii. Plan, direct, coordinate, monitor and control
personnel requirements in procurement and
supplies management
iii. Provide professional advice to and recognize all
training institutions offering courses in procurement
iv. Provide training on issues related to procurement
and supplies
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v. Conduct professional
examinations
vi. Register procurement and supplies
professionals and technician
vii. Maintain a register of registered
professionals and technicians
viii. Evaluate academic and practical
qualifications for the purpose of
registration
Tubeti Mwita
5. PUBLIC PPROCUREMENT POLICY DIVISION
(PPPD)
 Public Procurement (Act PA 2011), provide that
Sect 5(1) There shall be established, under the

Ministry responsible for Finance a Public
Procurement Policy Division.
Sect 5(2) The Public Procurement Policy Division
shall be headed by a person with appropriate
academic and professional qualifications and
experience of not less than ten years in
procurement related functions.
Currently the PPPD is headed by Dr. Mwakibinga
Tubeti Mwita
 Functions of PPPD.
 According to sect. 6(1) of PPA No 7 of 2011
PPA,PPPD carries the following functions:-
i. Develop a National Procurement Policy
ii. Review procurement policies, regulations,
circulars and other related directives with a
view of updating the same.
iii. Monitor the implementation of Public
Procurement Policies
iv. Advise the Central Government, local
governments and statutory bodies on issues
related to procurement policies.
v. Develop and manage procurement cadre
Tubeti Mwita
CHAPTER THREE
PUBLIC PROCUREMENT PROCESS FOR GOODS WORKS AND NON-
CONSULTANCY SERVICE
 PMU procure different types of goods, works
and services but the procedures used in
completing a total cycle normally vary
depending on the type, nature, value and
volume of the purchase. Procurement process
follow sequential steps to complete the
cycle( Procurement cycle).
 Procurement process. Is a system of sequential
steps which procurement and other
departments follow when procure goods, works
or services for the PE. The following are the
procedures (sequential steps) to be followed
when we procure in public organizations.
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1. Recognize, define and describe the need
2. Preparation of Annual Procurement Plan
(APP)
3. Approval of the APP by Tender Board
4. Issue of General Procurement Notice
(GPN)
5. Preparation of bid documents/quotation
forms
6. Inviting tenders
7. Selling the bid documents to interested
and eligible bidders
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8. Receiving of bids/quotations/proposal
9. Opening of tenders
10. Evaluation of Bids
11. Negotiation (if any)
12. Notification of award
13. Signing the contract
14. Execution of Contract & procurement contract
mgt
15. Payment to supplier
16. Close the contract
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i. Recognize, define and describe
the need
The need for purchase typically originate from one
of the operating department/user department.
When the need have been recognized, the user in
collaboration with procurement department
specify the requirements using different methods
of specification e.g. Engineering drawing, brand
name, sample etc. The need is incorporated in the
Organisation budget (MTEF)
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Public Procurement Cycle & procedures….
2. Preparation of Annual Procurement Plan (APP)
• - what is needed; goods, works or service?
• - how much is needed; quantification
• - when is it needed; timing of process
• - where to obtain it from; sourcing methods &
procedure
3. Approval of the APP by Tender Board.
 Once a procurement plan is prepared by PMU in
collaboration with user department shall get an
approval of the Tender Board before
implemented. In local government procurement
a procurement plan shall get an approval of
Finance and planning committee (FPC) of the
respective council before published.
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 Procurement planning is the
process of deciding what to buy,
when and from what source.
 During the procurement planning
process the procurement method

is assigned and the expectations
for fulfillment of procurement
requirements determined.
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Procurement planning process follow
the following sequence (Steps in
procurement planning process)
a) Identification of needs (user)/Determine what to
procure
b) Description of inputs (user/PMU)
c) Situation analysis (PMU)
d) Categorization of requirements(user/pmu)
e) Aggregation of requirements(user/pmu)
f) Preparation of procurement packages(User/pmu)
g) Selection of procurement methods
h) Preparation of procurement schedule(PMU)
i) Presentation and approval
j) Submission to PPRA( A/O, Tubeti Mwita
 Objectives of procurement planning as
per PPA
a) Avoid emergency procurement
b) Aggregate the requirements to obtain value
for money
c) Make use of framework contract whenever
possible
d) Avoid splitting order to defeat the use of
inappropriate procurement method unless
the split provides advantages to supplier and
PE.
e) Integrate procurement budget with
expenditure program. Tubeti Mwita
 Importance of procurement
planning
a) It is an opportunity for all stakeholders involved
in the processes to meet in order to discuss
particular procurement requirements.
b) It permits the creation of a procurement
strategy for procuring each requirement that
will be included in the procurement plan
c) Planners can estimate the time required to
complete the procurement process and award
contract for each requirement.
Tubeti Mwita
Importance of procurement planning cont…..
d) Planners can assess feasibility of combining or
dividing procurement requirements into
different contract packages.
e) Procurement scheduling in public procurement
is all about timing of when orders are to be
delivered, and at what schedule…
f) It has to respond to the questions such as
when to place order, such that when delivery is
to be done is also known in advance.
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 Annual procurement plan Format
 According to PPRA, Annual Procurement plan
exists in three different fomarts
i. Annual Procurement plan for
Internal use ( APP-IU)
ii. Annual Procurement plan to be
submitted to PPRA (APP-PPRA)
iii. Annual Procurement plan for
External use- APP-EU . APP-EU
once published in newspaper,
tender portal, PE website etc. is
called GPN
Tubeti Mwita
EXTERNAL USE
Description Tender Lot Procurement PRE-QUALIFICATION Invitation for Bids and contract signature
No. Number Method Invitation Closing- Notificatio Bid Bid Closing- Notification of
Date Opening n of Invitation Opening Award
Applicants Date
1 2 3 4 5 6 7 8 9 10

Tubeti Mwita
Description

1
Cost
Total

2
Tender No.

3
Lot Number

Estimated Amount in '000 Tshs

Procurement Method
5
DATA
BASIC

General Procurement Notice
6
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Preparation by PMU

NT

Approval by Tender Board

Invitation Date

N
Closing-Opening

10

Submission

11
Evaluation Report
PRE QUALIFICATION
ON

12
DOCUME INVITATIO EVALUATI

Preparation & Submission
13 by PMU

nt

14
Bidding
Docume

INTERNAL USE
Bid Invitation Date

15

n for
Bid Closing-Opening
16
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Submission
17
Bids and
Bid Evaluation Report

Evaluation

Invitation for
Bid
al of
Bidding award
Approval by TB
Invitatio approv
ion and
Evaluat

Contract Amount in Tshs. 000

Date Contract Award

18 19 20

Date Contract Signature

Contract
21
Finalization

al
vs.
Plan
Plan
Plan
Plan
Actual
Actual
Actu

1
Total Cost
Description

2
Tender No.

3
Lot Number

Estimated Amount in '000 Tshs

Procurement Method
5
BASIC DATA

General Procurement Notice
6
Advertisement

Preparation by PMU

8
DOCUMENT

Invitation Date

Closing-Opening

10
INVITATION

Submission

11
Evaluation Report
PRE QUALIFICATION

12
EVALUATION

Preparation & Submission
13
by PMU


Bidding
14
Document

Tubeti
Bid Invitation Date
15

SUBMISSION TO PPRA
Mwita Bid Closing-Opening

Invitation
16
for Bidding

Submission
Evaluation
17
Bid Evaluation Report

Bid

and
Invitation for Bids and
award
Approval by TB
18
Evaluation
approval of

Contract Amount in Tshs. 000

19

Date Contract Award

20

Contract
Finalization
Date Contract Signature

21

Plan
Plan
Plan
Actual
Plan vs.
Actual
Actual
4. Issue of General Procurement Notice
(GPN)
 Once a procurement plan is developed and
approved, General procurement notice
(GPN) is issued to the news papers of wide
circulation, tender portals, website of PE or
PPRA, Procurement Journals etc.
 The issue of GPN is mandatory and
requirement of the procurement law (PPA
No. 7 of 2011).
 Issuing of GPN is important as it notifies tax
payers that itemized items in the GPN have
to be procured by such a PE in that FY.
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 Contents of GPN.
 GPN - Contains advance information on
major procurement packages to be procured
by procuring entity. The information is
intended to alert suppliers, Contractors
service providers’ procurement opportunities.
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 Information to be included in GPN
 Name of procuring entity
 Procurement method to be used for package
 Estimated amount of bid (?)
 Scope of procurement
 Date of advertising pre-qualification (if any)
 Date of opening pre-qualifications
 Date of notifying applicants
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 Date of advertisement of a specific
tender( Specific procurement Notes(SPN)
 Date of specific tender opening
 Tender number
 Package/Lot number
 Date of notification of award
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5. Preparation of bid
documents/quotation forms
 When time to procure approaches,
PMU prepare a bid document or
quotation form depending on the
complexity of procurement. For minor
and routine procurement quotations
forms are used instead of bid
document. Bid documents must get
prior approval of Tender board before
issued. Tubeti Mwita
6. Inviting tenders (SPN)
 Potential suppliers are invited to
participate in tender proceedings.

Invitation might be done either using
a tender notice issued in the
newspaper of wide
circulation(Specific procurement
Notice), tender portal, procurement
journal or issuing quotation forms or
quotation document to pre-qualified
suppliers. Tubeti Mwita
7. Selling the bid documents to
interested and eligible bidders
 When a tender notice(SPN) is
issued, interested suppliers come
to PE and buy bid document. In
case suppliers are pre-qualified
(shortlisted) tender/quotation
documents/quotation forms are
not sold, they are freely issued to
suppliers.
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8. Receiving of bids/quotations
 Suppliers who bought or freely issued
tender/quotation document or quotation forms,
prepare their tenders and submit to PE.
 PE receive tenders and keep them to the tender
box until the tender submission deadline which
all tenders are opened publicly in the presence
of all bidders who choose to attend tender
opening ceremony.
 Tenders might be submitted by post using
address indicated in the tender notice or by hand
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9. Opening of tenders
 All tenders received before tender
submission deadline shall be opened in
public in the presence of the bidders
who choose to attend tender opening
ceremony. Tenders shall be opened
immediately after tender submission
deadline.
 When you open tenders go with the
following sequence:-Withdrawals, then
Modification then Substitution then
Actual tenders(unmodified teders).
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 Tenders shall be opened by tender opening
adhoc committee
 The public opening of tenders shall be
attended by :-
i. The secretary of the tender board who shall
be the chairperson
ii. Not more than two staff from PMU who shall
be the secretariat
iii. One co-opted member from any user dept.
iv. Tenderers/Bidders or their representative
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 All tenders received after tender submission
deadline shall not be opened, instead they shall
be returned to the respective suppliers
unopened.
 Different particulars have to be read loudly
during tender opening e.g.Tender price, tender
security/tender securing declaration, Tenderers’
names and address, Alternative tender (if any)
Number of envelopes submitted, Discount if
any, Power of Attorney , TIN,VAT ,certificate of
registration, Business license,form of tender(Bid
form),CRB certificate.
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10. Evaluation of Bids
 After tenders have been opened, PMU
forms a tender evaluation committee
comprising of not less than three and
not more than five members. Evaluation
committee members might be more
than five if the project is so complex.
 The main objective of bid evaluation is
just to compete bidders for the criteria
set in the bid document ultimately we
get only one supplier who will be a
winner of the tender.
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The following are some of the factors to be
considered while evaluating tenders/suppliers
a) Legal entity (j) compliance to bid validity
period
b) Machinery/Machines (k)Tender security
c) Skilled man power (l) Signature on
the bid form
d) Financial capacity
e) Ethics
f) Reliability
g) Communication
h) Progressive management
i) Experience etc. Tubeti Mwita
 Factors that might lead to rejection of tenders
during evaluation:-
i. Failure to sign form of bid and price
schedules by the authorized person or
persons
ii. Failure to satisfy eligible requirements
iii. Failure to submit tender security as
prescribed in the tendering documents
iv. Failure to satisfy the tender validity period
v. Inability to meet the critical delivery
schedule
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vi. Failure to comply with minimum experience
prescribed in the tender document
vii. Inability to accept price adjustment formulae of
tender document
viii. Subcontracting amount than permitted
ix. Failure to submit major supporting document
x. Failure to tender for required scope of work
xi. Failure to meet major technical requirement.
xii. Failure to quote for major items in the package
xiii. Presentation of absolutely unrealistic
implementation plan.
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11. Negotiation (if any)
Negotiation means conferring,
discussing or bargaining to reach
agreement in business transaction.
 After tenders are evaluated and lowest
bidder is identified,PMU recommends

negotiation team in accordance with
Reg.226 (PPR 2013,GN 446). The A/O
shall approve the names and among
members appoint the chairman.
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 The number of members of negotiation team
shall be a minimum of three but not
maximum of five and may include members
of original evaluation.
 The negotiation team shall comprise of
members who have:-
i. Knowledge of end-user requirements
ii. Negotiation skills
iii. Procurement and contracting skills
iv. Financial mgt skills
v. Technical skills relevant to the subject of
procurement or disposal
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 A member of negotiation team may be external
to the PE {R.226 (4)}
 The chairman of negotiation team shall be
responsible for:-
Arrangement for negotiation meetings
Chairing negotiations
The conduct of negotiation in accordance with all legal
requirements
Ensuring that all members are aware of their
responsibilities, including the need for confidentiality
Ensuring that all members have a common
understanding of negotiation process and objectives to
be achieved.
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Managing communication btn
negotiation team and the tenderer
Ensuring that members understand
their own role in negotiation
Ensuring that the negotiation team
has access to necessary information
Preparing final report on the
negotiation or ensuring that it is
prepared
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 Negotiation team prepare a negotiation plan
which shall specify issues to be negotiated and
objectives to be achieved
 Tender board shall approve the negotian plan
prior negotiation is taking place
 Negotiation shall produce minutes of the
meeting and obtain the tender’s written
agreement that is true and accurate record of
negotiations held and submit minutes to the
PMU.
 PMU submit recommendations of negotiation to
Tender Board.
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 Tender board after receiving negotiation
report shall:
i. Proceed with the contract award to the
recommended tenderer
ii. Revise the negotiation objectives and hold
further negotiation or
iii. Terminate the negotiation and reject the
tenderer
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 Negotiations may be undertaken with the lowest
evaluated tenderer/bidder relating to:-
i. Minor alteration to the technical details of the
statement of requirement
ii. Reduction of quantities for budgetary reasons
iii. Minor amendment to the special conditions of
contract
iv. Finalizing payment arrangements
v. Mobilization arrangements
vi. Agreeing final delivery or work schedule
vii. Methodology or staffing
viii. Clarifying details that were not apparent or could
not be finalised at the time of bidding
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12. Notification
of award
 Once negotiation is successfully
supplier is selected/obtained, the
procurement department prepares and
issues a serially numbered purchase
order or letter of acceptance to a
successful bidder.
 In most cases purchase order/letter of
acceptance forms a contract between

buyer and supplier. Purchase order is
prepared in different copies as follows:-
Tubeti Mwita
 Copy 1: Sent to supplier (Justify contract
between buyer and supplier)
 Copy 2: Sent to user department
 Copy 3: Sent to stores dept.
 Copy 4: Remains PMU
 According to PPA No. 7 of 2011,copies of Letter
of acceptance are sent to:-

 Controller and Auditor General (CAG)
 Attorney General (AG)
 Internal Auditor General (IAG)
 PPRA
Tubeti Mwita
13. Signing the contract
 Once a letter of acceptance is issued to supplier,
arrangement is made to sign a contract between
parties to a contract.
 According to the requirement of the law once a
letter of acceptance is issued ,a Supplier is given
28 days to fulfil conditions for him to sign a
contract including submission of performance
security.
 Performance security might be in the form of
Bank guarantee or Performance bond.
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 In case a supplier fail to submit
Performance security within 28 days
from the day where letter of
acceptance was issued, it is
fundamental breach which leads to
contract termination.
 When contract is automatically
terminated due to fundamental
breach, tender security is forfeited or
tender securing declaration is
executed
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14. Execution and mgt of procurement
Contract
 After the purchase order/letter of acceptance
has been issued to supplier or the contract is
signed, the buyer shall make follow up or
manage the contract to ensure that
goods/works/service are delivered at the right
time and shall be in the right quality and
quantity. The supplier shall do the following;-
Visit the supplier's plant/Site,E-mail, fax,
telephone call etc.
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15. Payment to supplier
 If delivered goods/project meet the stipulated
standard are accepted , a supplier is paid.
 Payment will depend on the contract entered, it
might be full or in partial basis.
 Note: Payment in Project contracts is done
depending on the works performed. A contractor
raises a an interim payment certificate (IPC) for
the work done to request for payment.
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16.Close the order/contract. This
entails a consolidation of all
documents and correspondence
relevant to the order. The
completed order/contract is
then filed in the closed-
order/contract file.
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CHAPTER FOUR
BIDDING/TENDERING PROCESS FOR GOODS, WORKS AND NON-
CONSULTANCY AND DISPOSAL OF PUBLIC ASSETS BY TENDER
 Tendering is the procurement process where,

suppliers are invited to compete for supply of
goods, undertaking works or provision of services.
 Tender means an offer proposal, or quotation made
by the supplier, contractor or consultant in
response to a request by a procuring entity (PE)
 Tenderer means a natural or legal person or group
of such persons participating or intending to
participate in procurement proceedings with a view
to submitting a tender in order to conclude a
contract and includes a supplier, contractor, service
provider, consultant or asset buyer.
Tubeti Mwita
 Tendering process for goods,works,non consultancy
service and disposal of public asset by tender follows the
following sequence.
a) Preparation of tender document(Solicitation doc)
b) Invitation for tender (IFT) and advertising
c) Selling the bid documents to interested and eligible
bidders
d) Submission of tenders
e) Receipts and opening of tenders
f) Evaluation of tenders
g) Post-qualification
h) Negotiation( If any )
i) Award the contract to a successful bidder
j) Signing the contract
Tubeti Mwita
a) Preparation of tender document (Solicitation
document)
 Tender document means a written or electronic
document or request for proposal inviting
tenderers to participate in procuring or disposal
by tender proceeding and includes document
inviting potential tenderer for pre-qualification.
 Before potentials suppliers are invited to tender,
PMU prepares a tender document and it gets
approve by the tender board of the PE.
Tubeti Mwita
 Main parts of tender for Works. These are the
documents constituting a tender document for
Works.( Visit www.ppra.go.tz)
i. Invitation for Tender (IFT)
ii. Instruction to Tenderers (ITT)
iii. Tender Data Sheet (TDS) -supplement ITT
iv. General Conditions of Contract (GCC)
v. Special Conditions of Contract (SCC)-
Supplement GCC
vi. Specifications (SPEC)
vii. Drawings (DRG)
viii. Bill of Quantities (BOQ)
ix. Tender forms
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 Forms classified into four parts
a. Form of tender
b. Form of qualification information
c. Letter of acceptance (template)
d. Form of agreement (template)
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x. Forms of security
a) Tender securing declaration
b) Performance bank guarantee
c) Performance bond
d) Bank guarantee for advance payment
xi. Integrity
a) Memorandum format 1
b) Memorandum format 2
Tubeti Mwita
 Main parts of tender for Goods. These are the
documents constituting a tender document for
Goods.( Visit www.ppra.go.tz)
Supplement GCC
vi. Specifications (SPEC)
vii. Drawings (DRG)
viii. Schedule of Requirement
ix. Tender forms
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a. Form of tender
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c) Performance bond
xi. Integrity
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 Main parts of tender doc for non
consultancy service.These are the
documents constituting a tender document
for Non consultancy service. (Visit
www.ppra.go.tz)
Supplement GCC
vi. Performance specification and Drawings if
applicable
vii. Activity Schedule
viii. Form of tender
Tubeti Mwita
a. Form of tender
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c) Performance bond
xi. Form of integrity
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Invitation for tender….
i. Invitation to tender
 Invitation should be made in writing and contain the
following information at a minimum:-
1. the name and address of the procuring entity
2. The nature, quantity and place of delivery.
3. The desired or required time for the supply of
the goods or for the completion of works or for
the provision of services.
4. A declaration, which shall not later be altered,
that tenderers may participate in the
procurement proceedings regardless of the
nationality.
5. The means or condition of obtaining the
solicitation document and the place from which
they may be obtained
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Invitation for tender….
6. Fees if any, to be charged by the for the

tender document
7. The currency and means of payment for the
tender/solicitation document
8. The language in which the tender document
are available
9. The physical address for the submission of
tenders
10. The deadline for submission of tenders
11. The physical address, hour and date for the
opening of tenders
12. The source of financing.
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 Are the specific instruction given to bidders to
assist them preparing responsive bid. They
contain at a minimum the followings;-
1. the criteria and procedures for evaluation of
qualification of bidder
2. the requirements as to documentary evidence
that must be submitted by bidders to
demonstrate their qualifications
3. the nature and required technical and
quality characteristics
4. the criteria to be used by the procuring entity
in determining the successful tender
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5. the currency or currencies in which the tender
price is to be formulated and expressed, and
others
 These are the specific data which supplement or
amend the information on ITTs sections

 They contain at minimum the followings;
1. Name of Procuring Entity

2. Description of the requirement in question
3. Duration of the supply contract
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Tender Data Sheet…
4. Financial year of such supply contract
5. Cost of the project ?.
6. Joint venture(jv) if applicable
7. Ineligible countries
8. Number of copies to be completed and
returned by each bidder
9. Language to use on bidding
10. Attachments required
11. Bid validity period
12. Alternative tender.(if allowed)
Tubeti Mwita
 This part of the bid provide at a
minimum the following information:-

1. Definitions of various terms as used
in such contract, e.g. contract,
completion, suppliers etc.
2. Governing language
3. Applicable laws
4. Country of origin of the goods
supplied (if necessary)
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v. Special conditions to a contract (SCC).
 This is a supplement to GCC
 This section of the bids is for
amendment of the general condition
of a contract if any; they contain at a
minimum the following information;
1. Names of purchaser and supplier on
such contract
2. Specific name/title of the project
3. Governing language
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Special conditions of contract…
4. Applicable laws
5. Country of origin of the supplies
(if necessary)
6. Performance security, the amount
and how it shall be reduced as the
executing proceeds.
7. How inspection and test shall be
made and whether it will be prior
to or after shipment or both
8. Packing of the goods etc.
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vi.Specifications ( SPEC)/Technical
Spec
 This part of the tender document
explain in detail the requirement of

the goods, works or non
consultancy service.
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What is specification?
• Specification is clear and
accurate description of
technical requirement for
material, products or services”.
• “A specification is a statement
of necessary details sufficient

to identify that which is to be
procured”
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Definitions
 What is specification?
 Description of the physical or
functional characteristics, or of the
nature of a supply, service, or
construction item; the
requirements to be satisfied by a
product, material, or process
indicating, if appropriate, the
procedures to determine whether
the requirements are satisfied.
Tubeti Mwita
Specification for Desktop computers
System Processor and chipset Pentium IV Processor at 3.2 GHz
Memory 512 MB DDR

Hard drive 80 GB
Keyboard + Mouse 80 GB Standard PS/2 Keyboard and
Mouse
Network card Integrated Broadcom Gigabit LOM
Floppy Drive 3.5” Floppy Drive
DVD/ CD ROM Drive CD-RW/DVD combo drive
Monitor 17" TFT
Operating System pre-loaded Windows XP Professional
Brand Branded Computers

Warranty One year
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Specifications for works must satisfy the
following requirement:
i. Design and marketing requirements of the construction .
ii. Manufacturing requirement for workability of
construction materials.
iii. Inspection requirements to test materials and
performance of the construction quality for compliance
with the specifications.
iv. Stores’ needs to receive, store and issue the construction
materials
v. Construction control’s and purchasing’ ability to
substitute materials when such materials become
necessary.
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vii.Drawings (DRG)
 This part of the tender
document carries the drawings
of the project or an item to be
procured
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Drawings (DRG)
This is the major part of specification in the procurement of

works.
The purpose of drawings
• Specifies locations, dimension, materials to be used, in
construction details of hidden parts, and other characteristics of
work or construction.
• Drawings must be included in the Bidding documents and are
part of contract. On some occasions contractor may be
requested to provide drawings either with its bid or for approval
during contract execution.
• Drawings are normally prepared by Architects.
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viii. Bill of quantities (BOQ)/schedule of
requirement.
 Bill of quantities (BOQ) is a
document that provide
information of work to be
performed so as to enable
tenderers to be sufficiently and
accurately prepared for a
contract.
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Bills of Quantities(BOQ)
Definition:
Bills of Quantities (BOQ) are the
statements, which state the
quantities of materials and labour
for the various sections of
works.They state the general
condition of works, workmanship
required and quantity of materials.
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DESCRIPTION UNIT QUANTITY RATE AMOUNT
ITEM (TSHS)
1 Element NO.1 substructure
2 Element No. 2 Frame
3 Element No. 4 Walling
4 Element No.5 Doors
5
Element no.6 windows
6 Element no. 7 Roofing
7 Element no. 8 Finishing
8 Element no.9 Decorations
9
Element no.10 Fitting & fixtures
10 Element no. 11 Plumbing and
Engineering Installation
11 Element No. 12 Drainage
TOTAL ACCOMODATION UNIT CARRIED TO GENERAL SUMMARY
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Example of Bill of Quantity (BOQ)
Bill No. -------------- Construction of VIP Latrine
ITEM DESCRIPTION QNT UNIT RATE AMOUNT

(TSHS)
ELEMENT No. 1: SUBSTRUCTURE (All
Provisional)
EXCAVATION AND EARTHWORK
A Excavate foundation trench commencing at

formation
B Level and not exceeding 1.50 miters deep 4 CM 1,000.00 4,000.00
Excavate pit commencing at stripped level not

exceeding
G Selected excavated material filling, well

rammed and
consolidated to make up levels under floor, 5 CM 2,000.00 10,000.00

100mm thick
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H Load up surplus excavated material and 53 CM 1,500.00 79,500.00
remove from site
excavations ITE
Hardcore M
K 200mm Bed leveled and blinded to receive

concrete bed
Measured separately). 21 SM 3,500.00 73,500.00
L 200mm Bed laid to slope and blinded to receive 2 SM 3,500.00 7,000.00

concrete bed
Tubeti Mwita
Functions of Bills of Quantities
i. Helps bidders to quote in a uniform manner
ii. Used in correcting errors during tender evaluation
iii. Assists and act as the base for valuation during work
progress or construction (interim valuation)
iv. Means of valuing variations issued by client during

work progress.
v. Used as basis for cost analysis.
vi. Provides unit of measure for individual items under

the works contracts
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ix. Tender forms. These are the
important forms to be filled
by the bidder/tenderer.
These forms are of four
types as follows:-
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 Form of tender; It is very important document
to be filled by the supplier. An offer is provided
by the supplier using this form. If this form is
not filled, legally it is said that the suppler did
not give an offer.
 Form of qualification information. In this form
a supplier is required to fill information on his

competency and experience.
 Letter of acceptance (template). This letter is
as template and used to award a tender to

only successful bidder.
 Form of agreement (template). This form used
for signing a contract with a successful bidder.

It is found in tender document as a template.
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 Importance of standard bid
document
i. increasing predictability and
uniformity in the bidding process
ii. increasing efficiency of the bidding
process and reduce costs,
iii. reducing unresponsive bids and
thus increasing competition
iv. reducing preparation and review
time
Tubeti Mwita
.
b) Invitation for tender/Tender
advertising
 Once tender documents are prepared
and complete, potential suppliers are

invited to tender so they can
compete.
 Invitation may be done either by
advertising a tender to a wide

circulation news paper, tender portal,
website, or journal or by issuing
shortlisted suppliers a letter of
invitation to tender. Tubeti Mwita
c) Selling the bid documents to
interested and eligible bidder
 If bidders were not shortlisted
(Pre-qualified),and tender is
advertised to the media,
interested bidders come and by
bid documents.
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d) Submission of tenders
 Bidders shall submit their
tenders before tender
submission deadline. All tenders
received after deadline are
rejected and returned to
suppliers unopened.
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e) Receipt and opening of tenders.
 All tenders received within the time specified in
the invitation for tender are opened
immediately thereafter submission deadline
day.
f) Evaluation of tenders. All tenders received
within the deadline shall be evaluated.
Evaluation shall be made in accordance with
the criteria set in the tender doc and not
otherwise. Evaluating tenders using criteria
not set in the bid doc is prohibited by the law.
g) Post-qualification.
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h) Negotiation. Negotiation shall be done before
award. Some important areas to a contract shall
be discussed in detail and consensus reached.
i) Awarding a contract to a successful bidder.
After successful negotiation being done, a
successful bidder shall be provided a letter
of acceptance. A letter of acceptance given
to a supplier justify that a contract between
buyer and supplier has already been entered.
j) Signing the contract. After a letter of
acceptance is given, arrangement to sign a
contract starts. As the requirement of the law a
supplier has to submit a performance security
within 28 days before signing contract from the
day being issued a letter of acceptance.
Tubeti Mwita
CHAPTER V
PROCUREMENT METHODS FOR GOODS,WORKS, NON-
CONSULTANCY SERVICES AND DISPOSAL OF PUBLIC
ASSETS BY TENDER
 These are the methods used in public
procurement for goods, works and
non consultancy service and disposal
of public assets by tender
 There are numerous methods of
procurement as mentioned
hereunder:-
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Procurement Methods….
i. International competitive tendering
(ICT).This is the procurement method
where PE shall through a notice
advertised nationally and
internationally invite tenderers
regardless of their nationality, to
submit priced tenders for goods,
works or non-consultancy services
or sale of public assets.Minimun
number of days of tender notice is 21
days. Tubeti Mwita
Procurement Methods…
 Conditions for use of International
Competitive Tendering( ICT).
a) Payment, in whole or in part is
made in foreign currency.
b) It is desired to attract tenders
from the widest range of
tenderers regardless of the
tender value.
c) No limitation of value.
d) If the requirements are not
domestically available.
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ii. National competitive tendering
(NCT)
 In NCT ,PE shall through a notice
advertised only in the United
Republic ,invite tenderers regardless
of their nationality, to submit priced
tenders for goods, works, non
consultancy service or sale of public
assets.Minimum numbers of days for
tender notice is 14 days.
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 Conditions for Use of National Competitive Tendering
(NCT)
a) Payment is made wholly in Tanzania shillings
b) Goods, works or services are available locally at
prices below the international market.
c) The estimated costs of the goods, works or
services does not exceed the threshold for open
International tendering.(Refer Seventh schedule
of procurement (amendment) regulation).Up to
5bn for goods, up to 15 for works, up to 5bn
non consultancy service and up to 5bn for
disposal of public assets.
d) Works or services are scattered geographically
or spread over time. Tubeti Mwita
e) Works are labour intensive
f) Advantage of International
competitive tendering are clearly
outweighed by the administrative
or financial burden involved.
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Restricted Tendering
iii.
This is the procurement method where the PE
restrict the issue of tender documents to a limited
number of specified tenderers.Minimun No. of
days for RCT is for IRCT is 14 and 7 for NRCT
 Conditions for use of Restricted tendering.
a) Suppliers, contractors or service providers

have been pre-qualified.
Pre-qualification means a formal procedure
whereby suppliers, contractors or consultants are
invited to submit details of their resources and
capabilities which are screened prior to invitation
to tender.
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 The aim in pre-qualification is to find
suppliers meeting the minimum
criteria on experience,resources,
capacity and financial standing.
b) Goods, works or services are of a
specialized nature or can be
obtained from a limited number of
specialized contractors, service
providers or suppliers.
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Procurement Methods…..
c) There is an urgent need such that

there would be insufficient time to go
for ICT or NCT.
d) There is a need to achieve certain
social objectives by calling for
participation of local communities or
local firms.
 Note: Restricted tendering is used for
the purpose of building the capacity of

local firms. Also no limit of value, it
only need justification Tubeti Mwita
iv.Single Source procurement for

goods or services.
 This is the procurement method
where PE request quotation or

tender from only one supplier.
 Conditions for use of single source
procurement for good or services

a) Goods or services are available
to only one supplier.
b) There is an urgent need for the
goods or services. Tubeti Mwita
Procurement methods….
c) The previous goods/services were
procured using NCT or ICT hence you
need to buy other goods/services of the
same type.
d) The PE seek to enter into the contract
with a tenderer for research,
experiment, study or development.
e) Procurement involving national defense
or national security.
f) Where critical items need to be
purchased from specified supplier.
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g) Where standardization of spare

parts is required that they be
compatible with existing
equipment.
h) Where there is an ongoing project
and there is addition of the items.
Note: No limitation of value in single
source procurement, only
justification is required.
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v. Single Source Procurement for works.
 In this method of procurement, PE may
obtain a price quotation from a single

contractor, negotiate and enter into a
direct contract.
 Conditions for use of single source
procurement for works.
a) There is an urgent need for works
b) There is only one particular contractor.
c) There are advantages to a PE in using a
particular contractor who has undertaken
or undertaking similar works.
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d) Works which are under execution are to
be extended.
Note: No limitation of value in single
source procurement, only justification is
required. Also this method N/A for disposal
vi. Shopping.
 This is the procurement method where
bidders are invited to participate in tender

competition through request for quotation
at International or national level. No of
days for IS is 8 days and for NS is 4 days
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Procurement Method…
 Conditions for use of Shopping
a) The goods to be procured are
diversified hence there is no
commercial interest for any single
supplier to tender for them.
b) Goods are readily available off-the shelf
or standard specification commodities.
c) If suppliers are shortlisted (pre-
qualified)
 This method N/A for disposal
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Minor value Procurement
vii.
This is the procurement method where PE procure
goods, services or minor works directly from
supplier.
 Conditions for use of Minor Value Procurement.
a) The value does not exceed 10M for goods,20M

for works and 10M for Non-consultancy service.
(This method not applicable for disposal)
b) The price quoted is reasonable
c) There is no advantage a PE is likely to obtain by
using other procurement methods
d) The contract for the provision of such goods,
services or works is a Local Purchase Order
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viii. Micro
value procurement.
 This is the procurement method
where PE purchases directly from

established supermarkets, shops
or drug store or similar
establishments if the value of such
procurement does not exceed 5M
for goods,10M for works,5M for
non consultancy service. This
method also N/A for disposal.
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Procurement methods…
 Micro value procurement process does not
require:-
 A written tender document
 Written tender (bid)
 Public bid opening
 Notice of best evaluated bidder
 Signed contract.
 Micro value may need an original invoice or
receipt for the procurement to be

undertaken.
 In Micro value, the PE may use a petty cash,
imprest or purchase card to effect payment.

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 The PE may delegate authority to a user
department to undertake micro value
procurement of not exceeding the value
specified in the seventh schedule of
procurement (amendment regulations).
 All micro value procurement shall be reported
to the tender board on monthly basis using
the appropriate procedural forms issued by
PPRA.
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ix.Force Account (Direct labour).This

means construction by the PE itself or
use of public or semi public agencies or
department concerned, where PE or the
public or semi- public agency uses its
own personnel and equipment or hired
labour.
 Conditions for use of Force Account.
a) The required works are scattered or are

remote locations for which qualified
construction firms are unlikely to
tender at reasonable price.
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b) Work is required to be carried out

without disrupting ongoing
operations.
c) There are emergencies which
require a prompt attention
d) The PE has qualified personnel to
carry out and supervise the required
work
e) The maintenance or construction is
part of the routine activity of the PE
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x. Community participation in procurement
 In this procurement method, in the interest
of the project sustainability or to achieve

certain specific social objectives of the
project components the community is
called to participate in the procurement
process.
xi. Procurement of commodities. The
procurement of grain, animal feed,
cooking oil, fuel, fertilizer and metals, the
market prices of which fluctuate
depending upon the demand and supply.
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 Hence procurement of commodities may
involve multiple awards for partial quantities
to assure security of supply and multiple
purchases over a period of time to take
advantage of favourable market conditions.
 PE may prepare a list of pre-qualified
suppliers to whom periodic invitations for
the supply of commodities may be used.
 The pre-qualified suppliers may be invited to
quote prices linked to the market price.
 If suppliers have been pre-qualified by GPSA,
they have to be used.
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XII. Procurement under Public Private
partnership (PPP), (PPP Act ,2010)
 This is procurement arrangement where
public entities enters a partnership with a
private sector to undertake a project.
Under this procurement arrangement, the
buyer is not directly involved in the finding
of the supplier but what the buyer do is to
find a private partner who ultimately find
the supplier. University of Dodoma was
constructed using this procurement
arrangement. Tubeti Mwita
 Procurement under PPP arrangement is
simply stated in the PPP Act of 2010
 The objective of the Act is to promote
private sector participation in the
provision of public service through
public-private partnership projects in
terms of investment capital.
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 Procurement under Public Private partnership
(PPP)
 The projects referred to in the PPP Act of
2010 Sect 6 shall be undertaken in
productive and non productive sector
including but not limited to the following
sector:
a) Agriculture
i. Crop farming
ii. Livestock
iii. Poultry
iv. Fisheries
v. Irrigation Tubeti Mwita
b) Infrastructure
i. Roads
ii. Bridges
iii. Railway
iv. Airports
v. Aviation
vi. Shipping and navigation
vii. Energy
viii. Buildings
Tubeti Mwita
c) Industry and manufacturing
d) Exploration and mining
e) Education
f) Health
g) Environment and waste management
h) Information and Communication
Technology (ICT)
i) Trade and
j) Sport, Entertainment Recreation
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XIII. Emergency procurement.
 Emergency procurement may be made where
the accounting officer determines that it is in
the public interest that goods, works or
services be procured as a matter of
emergency.
 Conditions for use of emergency
procurement
a) Compelling emergency that create
threats to life, health, warfare, or safety
of the public by reason of major natural
disaster, epidemic, war, fire or others of
similar nature. Tubeti Mwita
b) Situation whereby, without the

emergency procurement, the
continuing functioning of the
Government or Organisation would
suffer irreparable loss.
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xiv. National, international and restricted
competitive tendering on fixed budget.
 This method is used when the procurement
budget is fixed
 The invitation for tender shall indicate the
available budget and require the tenderer to bid
within the budget.
 Tenders shall be subjected to evaluation
 Tenders that exceed the indicated budget shall
be rejected.
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xv.Procurement direct from
manufacturers,dealers or service
providers.
 PE shall in its annual procurement
plan, identify goods or services to

be procured direct from
manufacturer, dealer or service
provider
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Procurement methods
XVI. Turnkey contract
With turnkey contract PE award project contract
with diversified activities to one contractor.
For instance supply & installation of an
industrial plant
Activities such as the followings are done by
single contractor selected competitively;
a. the design and engineering
b. the supply of goods
c. supply and installation of equipment
d. the construction of the complete plant or
works
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 Factors to be considered while you choose a
procurement method.
i. Value of the goods/works/service
ii. Urgency
iii. Non availability of the goods locally
iv. Number of suppliers available
v. Lack of funds (Think about PPP arrangement)
vi. Need of new technology (go for ICT)
vii. Type and nature of the items (Goods for
security purposes)
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CHAPTER SIX
EMPLOYMENT AND SELECTION OF CONSULTANT
 Consultant means a firm company,

corporation, organisation, partnership or a
individual person engaged in or able to be
engaged in the business of providing
services in architecture, economics,
engineering, surveying or any field of
professional services and who is according
to the context, a potential party or the party
to a contract with the PE.
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Chapter six….
i. Methods of Procurement of
consultant.
 The following are the procurement
methods for consultant:-

a) International competitive selection (ICS)
 In this procurement method,PE shall
invite consultants regardless of their

nationality, by means of expression of
interest notice (EOI) that shall be
advertised nationally and internationally,
to submit expression of interest for
consultancy service. Tubeti Mwita
International competitive selection….
 Conditions for use of ICS
1. Payment may be made in whole or part in
foreign currency
2. It is desired to attract more consultants
3. Value (If above 1.5 bn, use ICS)
b) National Competitive Selection (NCS)
 Under this procurement arrangement,PE shall
invite consultants to submit expression of
interest (EOI) for the required services
regardless of their nationality by means of
expression of interest notice advertised
nationally only.
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National competitive selection…
 Conditions for use of NCS
1. Payment may be made wholly in Tanzanian
shillings.
2. Services can be obtained locally at prices
below the international market.
3. The estimated cost of the service (1.5bn or
below).
4. The advantages of ICS are outweighed by
the administrative or financial burden
involved.
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c) Restricted competitive selection(RCS)
 Under this procurement method, PE may
restrict the issue of request of proposal(RFP)
to a limited number of specified consultants.
 Condition for use of RCS

1. Consultants are pre-qualified/shortlisted
2. The services are within the competence of
a limited number of specialized
consultants.
3. There is an urgent need.
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d) Single source selection(SSS)
 Under this procurement method,
only one consultant is provided with
request for proposal(RFP).
 Conditions for use of SSS.
1. Continuation of previous work

carried out by the firm.
2. If there is emergency
3. Only one firm is qualified or has
experience
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ii. Selection methods for a consultant
 The following are the principal
selection methods for consultant:
a. Selection based solely on technical
quality
b. Selection based on technical quality
with price consideration.
c. Selection based on the
compatibility of technical proposal
and least cost consideration.
d. Selection based on quality and fixed
budget. Tubeti Mwita
a) Selection based solely on technical quality
 Under this selection method, consultants may be

requested to submit technical proposal alone or both
technical and financial proposals but in different
envelopes.
 Technical proposals are evaluated and ranked.
 In the selection procedure based solely on technical
quality, the firm which has submitted the best
technically acceptable proposal shall be the first to be
invited for negotiations.
 The envelope containing financial proposal shall be
opened in the presence of the firm’s representative and
whose content are examined and where no agreement is
reached, then the consultant whose technical proposal is
ranked the second shall be invited for negotiation .
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Selection based solely on technical quality….
 The exercise continues until an
agreement is reached with the one of
the firms whose technical proposal is
considered satisfactorily and retained.
 The financial proposal envelopes
containing the proposals of firms not
invited for negotiations will be
returned unopened to the firms.
 This selection method is appropriate
for the following type of assignments:-
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Selection based solely on technical quality….
i. Complex or highly specialized assignments
for which it is difficult to define price terms of
reference and required input from the
consultants.
ii. Assignment that have a high downstream
impact and in which the objective is to have
the best expert.eg structural engineering
drawing of major infrastructure like large
dams, policy studies of national significant
etc.
iii. Architectural services.
iv. Assignment such as management advice and
policy studies.
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b. Selection based on technical quality with price consideration
 Under this selection method, consultants may

be requested to submit technical proposal
alone or submit both technical and financial
proposals but in different envelopes.
 After evaluation, technical proposals found to
be satisfactory whose financial proposals are
opened and evaluated and score are provided
to each proposal.
 Thereafter a combined evaluation of technical
and financial proposal is made and weight is
given to each firm.
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Selection based on technical quality
with price consideration…..
 Aftera combined evaluation and
assigning score to each firm,
negotiation is arranged starting a
firm with highest combined
score until an agreement is
reached with one of the firms.
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c. Selection based on compatibility of technical
proposals and least cost consideration
 This selection method is used in the
selection of consultants for assignments of
standard or routine nature where well
established practices and standards exist
and in which the contract amount is small.
 The procedure starts with the evaluation of
the technical proposal and firms whose
technical proposals are retained shall be
those who scored equal or above the
minimum specified threshold.
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Selection based on compatibility of technical proposals
and least cost consideration…
 The firms whose technical proposals
scored equal or above the minimum, shall
be called for opening of their financial
proposals.
 Arithmetic corrections are made to the
financial proposals during evaluation and
the consultant whose proposal found to be
the lowest shall be invited for negotiations.
 The process of negotiation continues until
the successful consultant is obtained.
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d) Selection based on quality and fixed budget
 This selection method is used when the
assignment is simple and can be precisely
defined and when the budget is fixed.
 The request for proposals (RFP) shall
indicate the available budget and request
the consultants to provide their technical
and financial proposals in separate
envelopes, within the budget.
 The Terms of reference (TOR) shall be
prepared to make sure that the budget is
sufficient for the consultants to perform
the expected tasks.
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Selection based on quality and fixed budget….
 Technical proposals are evaluated first and the
financial proposals for those scored above the
minimum shall be opened in public.
 Proposals that exceed the indicated budget
shall be rejected.
 The consultant who has submitted the highest
ranked technical proposal among the rest shall
be selected and invited for negotiation.
 The process continues until the successful
consultant is obtained.
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iii. Basic steps for selection of consultant
 The selection of consultant shall comprise
of the following process (steps):-
a) Preparation of terms of reference (TOR)
b) Preparation of cost estimate and budget
c) Advertising the request for expression
(EOI) or prequalification of consultancy
service
d) Preparation of shortlist of consultants
e) Determination of selection procedures
and criteria for selection
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Basic steps for selection of consultant….
f) Preparation and issuance of Request for
proposals (RFP)
g) Inviting the consultants to submit proposal
h) Receipt of the proposals
i) Evaluation of technical proposals
j) Evaluation of financial proposal
k) Final evaluation of quality and cost
l) Post-qualification where necessary
m) Negotiations
n) Award of the contract to the selected consultant
o) Signing the contract
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a) Preparation of terms of reference
(TOR)
 TOR is statement issued by the
procuring entity giving the definition

of the objectives, goals and scope of
the services to be procured.
 TOR are used only in procurement of
consultancy service
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 Preparation of terms of reference
(TOR…
 Contents of terms of reference:-
i. Statement of the objectives and

goals sought.
ii. Clear description of the nature and
scope of services required.
iii. Description of the duties and
responsibilities of consultant.
iv. Information on any counterpart staff
and its role. Tubeti Mwita
Preparation of terms of reference (TOR…
v. Information on training and

transfer of technology where
necessary.
vi. A summary of the data available
vii. A clear statement of the criteria to
be used in the selection procedure
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b).Preparation of cost estimate and budget
 The cost estimate prepared may be based on

the following:-
i. The consultant’s staff, time spent at HQs
and in the field
ii. Other professional and support staff
iii. Direct cost such as per diem, travel,
transport etc.
iv. The costs of physical inputs and materials
such as equipment, vehicles and office
supplies
v. Expenses of offices communication,
services
vi. Costs of special services.etc. Tubeti Mwita
c. Advertising the request for expression of
interest (EOI)
 In the advertisement, the PE shall request the
applicants to submit adequate information for

the PE to make decision on the firms
suitability and the advertisement shall not be
complex to discourage consultants from
expressing interest.
 Minimum no of days for advertisement of
expression of interest is 14 for NCS and 30

days for ICS
 Expression of interest submitted by
consultant does not oblige the PE to include
the applicant in the shortlist.
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d. Preparation of shortlist of consultants
 The shortlist shall be made of the
consultants possess the required capability
and experience for a particular service.
 Shortlist must be approved by the tender
board and may require PMU to expand or to
reduce a shortlist and once approved PMU
shall not add or delete names.
 The shortlist shall be five to ten consultants.
 Before the issue of Request for proposal
(RFP) document, the consultant shall be
requested to confirm their desire to
participate in the competition.
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e. Determination of selection procedures and
criteria for selection.
 Guideline for fixing weights for evaluating
technical proposal
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a) General
S/N CRITERIA WEIGHTS
1. Firm’s general experience ,reputation 5% to 15%
and experience in previous similar
assignment
2. Understanding of the terms of
reference, methodology and overall 20% to 40%
quality of the proposal
3 Qualification of key personnel 30% to 60%
4 Local firms participation 15%
5 Participation by national experts 10%
6 Knowledge of the country 5% to 10%
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b) Pre-qualification (Expression of Interest)
1 Overall experience in the field of the 20% to 50%

assignment and in comparable assignment
2 Professional reputation of the firm and its 20% to 40%

experience in the previous assignments
3 Knowledge of project environment in 10% to 20%

Tanzania and of the regional countries and
their implications for the project
4 Inclusion of local firms and experts in the 10% to 20%
assignment
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c) Request for proposal (or evaluation of
proposal.)
S/N Criteria Weight
1 Understanding Terms of Reference 10% to 20%
2 Overall quality of the offer, quality of the work 20% to 30%

and methodology
3 Qualification of experts and experience in the 40% to 60%

field of the assignment
4 Inclusion of local experts 10% to 20%
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d) Individual consultant
1 General qualification and 30% to 60%

suitability of the tasks to be
performed
2 Experience in the specific 30% to 50%
assignment described in the
terms of reference
3 Language proficiency 5% t0 15%
4 Knowledge of the country 5% to 10%
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f. Preparation and issuance of request for proposal.
 Shortlisted firms shall be invited to submit proposals.

 Standard RFP document issued by PPRA shall be used
Standard (RFP) doc.downloard www.ppra.go.tz
 The request for proposal(RFP) document shall contain the following
documents (Main parts/sections of RFP doc.)
i. Letter of invitation to Consultants
ii. Instructions to Consultants (ITC)
iii. Proposal Data Sheet (PDS)
v. Special Conditions of Contract (SCC)
vi. Proposal and Contract Forms
vii. Terms of Reference
viii. Undertaking by Consultant on Anti – bribery policy / code of conduct
and compliance program Tubeti Mwita
g. Inviting consultants to submit proposals
 The letter of invitation shall be
issued to every shortlisted
consultant and who has proved that
shall participate to the competition.
 The invitation letter shall state:-the
source of funds, details of the client,

the date, time and address for
submission of the proposal.
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h. Receipt of the proposal
 The PE shall decide if both technical and
financial proposals are to be submitted in
the same day but at different envelopes or
receive first technical proposal and financial
proposal to be submitted other days for
the consultants who qualified for technical
evaluation. Both techniques are allowed by
the law.
 The technical proposal shall be opened
immediately after the closure of the time for
proposal submission.
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Receipt of the proposal ….
 If both technical and financial
proposal are submitted on the same
day,technical proposals are opened
in the day of proposal submission
deadline while financial proposal
shall remain sealed and deposited
with the secretary of the tender
board until they are opened publicly
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i. Evaluation of technical proposal
 Technical proposals shall be evaluated
using criteria set in the RFP document.
 Some of the criteria to be used during
evaluation of technical proposals are:-

i. Experience of consultant
ii. Previous performance and
professional reputation
iii. Knowledge of the project environment
iv. Inclusion of the local firms and
experts in the assignment
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Evaluation of technical proposal
v. Understanding of the terms of reference
vi. Quality of the proposal, plan and
methodology proposed
vii. Qualification of experts and experience
in the field of the assignment.
viii. Ability to deal with national personnel
and agencies and language proficiency
 Note. Weights are assigned to each of the
criteria mentioned above.
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j. Evaluation of financial proposal
 Evaluation committee shall review the
financial proposals and where there are
arithmetic errors, such errors shall be
corrected and consultants are notified on
the respective errors.
 All costs shall be converted to a common
currency selected by PE.
 For the purpose of evaluation ‘’costs’’
includes other reimbursable expenses such
as travel, translation, report printing or
secretarial expenses.
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k. Final evaluation of quality and cost
 The proposal with the lowest cost shall be
given a financial score of one hundred
and other proposals given financial scores
that are inversely proportional to their
prices.
 Quality and cost scores are combined to
obtain only one score.
 The consultant with highest combined
score will be the winner.
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Procurement method cont........
Tender/proposal rejection
Sometimes tenders received from suppliers
may be rejected by the procuring entity.
Circumstances or reasons for rejection
a. There is lack of effective competition
b. Tenders or proposals are not substantially
responsive to the tender document or to the
request for proposal
c.The economic or technical data of the project
has been altered
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d.Tenders or proposal involve costs
substantially higher than the original budget
or estimates
e. Exceptional circumstances render normal
performance of the contract impossible
f. Tenders received contain serious
irregularities resulting in interference with
the normal play of market forces
g. Funds voted or earmarked for the
procurement have been withheld, suspended
or have otherwise not been made available
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Note:
Lack of competition shall not be determined
solely on the basis of the number of
tenderers or persons who made proposals.
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Whenever all the tenders/proposals rejected,
the procuring entity should think of the
following
a. Making revision to the conditions of the
contract, design and specification, scope of
the contract, or a combination of these
before new tenders
b. Revising the request for proposal (including
the short-list) and the budget
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Where the rejection was due to lack of
competition, wider advertising should be
considered.
If it was due to most tenders or proposals
being non-responsive , new tenders,
proposals may be invited from initially pre-
qualified firms.
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l. Post qualification of consultants
 In this stage, the PE want to determine if
consultant has the capability, legal capacity
and resources to carry out the contract. The
following are the important criteria used
during post qualification:-
i. Legal requirements
ii. Technical requirements
iii. Knowledge of local working conditions
iv. Capabilities with respect to equipment
v. Current commitment
vi. Litigation records etc
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vii. Financial capability to perform the contract
viii. Compliance with health and safety laws, tax
and employment laws.
ix. Experience and past performance on similar
contracts
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m. Negotiation
 After tender board has approved the award
recommendations, the PE shall promptly invite the
selected consultant to negotiate in order to finalise
the terms of the contract.
 The following are the important areas for
negotiation:-
i. Terms of reference( TOR)
ii. Comments made by consultant on the scope of
service
iii. The methodology
iv. Staffing
v. Counter part staff and training
vi. PE’s input and special condition of contract
vii. Consultant’s proposed work program Tubeti Mwita
etc
n. Award of the contract to the selected
consultant.
 After negotiation, a letter of acceptance
is issued to a consultant. Letter of
acceptance declares that a contract has
been entered between two parties.
 The approved consultant shall not be
required, as a condition of award to
undertake responsibilities not stipulated
in the request of proposal or otherwise.
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o. Signing the contract
 Once a letter of acceptance is issued to a
successfully consultant, arrangement to sign
the contracts starts.
 A contract document is a tool that describes
obligations of the buyer and a supplier
 The contract shall be signed by both parties to
a contract and every part shall remain with one
copy
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 Selection of individual consultants
 Individual consultants shall be employed on
assignments for which:-
a. Terms of personnel are not required
b. No additional outside professional support is
required
c. The experience and qualifications of the
individual are the paramount requirement
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 Individul consultants are selected on the
basis of their qualifications for the
assignment and may be selected on the basis
of references or through comparison of
qualifications among those expressing
interest in the assignment or approached
directly by the PE
 Individual consultant shall be fully capable of
carrying out the assignment
 Capability shall be judged on the basis of
professional competence, experience and
knowledge of the local working conditions.
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 Types of services that my require individual
consultant:-
i. Preparation of terms of reference (TORs)
ii. Opening and evaluation of tenders
iii. Preparation of the brief where architecture
services are to be procured
iv. Revision and updating of feasibility studies
v. Preliminary project or engineering design
vi. Planning( Preparation of Procurement
plan )
vii. Preparation project completion report
viii. Training
ix. Monitoring and supervision of projects etc.
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 Selection process of individual consultant
a. Preparation of terms of reference and
contract format
b. Preparation of estimated budget
c. Advertisement of consultancy job
d. Preparation of shortlist
e. Evaluation of qualification and experience
f. Negotiation of fees and contract terms
g. Signing of contract and
h. Supervision and evaluation of services
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 Types of services contract
a. Lumpsum (Fixed price contracts)
 This type of the contracts are used for
assignments in which the contents and the
duration of the services and the required
output of the consultants are clearly defined.
 This type of contract may be used for simple
planning and feasibility studies,environment
studies, detailed design of standard or
common structures,preparation of data etc.
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 Payment shall be linked to outputs
(deliverables) such as
reports,drawings,Bill of
quantities(BOQ),bidding
documents,software programs etc.
b. Time based contracts.
 This type of the contract shall be used
when it is difficult to define the scope

and the length of services either
because the services are related to
activities by others for which the
completion period may vary. Tubeti Mwita
 Time based contracts may be used for
complex studies, supervision of construction,
advisory services and most training
assignments and payments are based on
agreed hourly, daily,weekly or monthly rates
for staff (who are named in the contract)
c. Retainer and/success fee contract
 These contracts may be used where
consultants such as banks or financial firms
are required for preparation of companies for
sale or merger of firms, notably in
privatization operations
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 The remuneration of the consultant may
include a retainer fee,the latter being
normally expressed as percentage of the sale
price of the assets
d. Percentage contract.
 The percentage based contract shall clearly
define the total cost from which the
percentage is to be calculated and the
consultant or service provider shall be
required to indicate his cost as a percentage
of the total cost of the assignment.
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e. Indefinite delivery contract (Price
agreement).
 The indefinite delivery contracts shall be
used where a PE needs to have on “call”
specialized services to provide advice on a
particular activity, the extent and timing of
which cannot be defined in advance. These
contracts may be used to retain advisors for
implementation of complex projects experts
adjudicators for dispute resolution panels,
institutional reforms, procurement advice etc.
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f) Running contracts. A running contracts shall
be used for contracts in which continuity of
experts service is desirable such as financial
auditing, procurement agency contracts and
inspection agency.
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CHAPTER SEVEN
PROCUREMENT IN LOCAL GOVERNMENT
AUTHORITIES (LGAs)-INSTITUTIONAL
ARRANGEMENT IN LGAs.
 This topic sometimes also refers to as
Institutional arrangement in LGAs
This chapter discusses the institutional
structure and arrangements of public
procurement in the Local Government
Authorities(LGAs). The chapter includes
the mandates and approval levels, roles
and responsibilities of e oversight
institutions as well as the established
organs and committees within LGA..
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 This is in line with the institutional
arrangement of Procuring Entity in
compliance with the provisions of PPA
2011 as amended in 2016. Guidance is
provided on functionality of the
procurement structure including the
required independence of the organs
and committees in undertaking
procurement tasks including decision-
making, how to handle disagreements
and delegation of procurement
authorities
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 Within the LGA the following actors,
bodies and committees are involved in
one way or another in the
procurement processes as per
procurement legislation (Internal
players in LGAs procurement).
 The following are the internal players
in Local government procurement):-
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i. Budget Approving Authority which is
the Full Council;
ii. Finance and Planning Committee;
iii. Accounting Officer (Council Director);
iv. Council Tender Board;
v. Procurement Management Unit;
vi. User Department;
vii. Evaluation Committee
viii. Inspection and Acceptance Committee;
ix. Internal Auditors; and
x. Legal Officer
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 In their functioning, the above
institutions, organs and committee
shall observe independence of powers
and responsibilities as provided in the
public procurement legislation.
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 The institutional arrangements of public
procurement in a Councils (LGA) also
comprise the External Oversight Bodies
(external players) which includes:-:
i. Public Procurement Regulatory Authority
(PPRA)
ii. President’s Office Regional Administration
and Local Government
iii. Regional Secretariat (RS)
iv. Public Procurement Appeals Authority
(PPAA); and
v. Attorney General (AG).
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 Council Procurement Organs and
Committees (Internal players in LGAs
procurement).
1) Accounting Officer
 The Accounting Officer (Council Director)
shall have the overall responsibility for the

execution of the procurement processes
in the LGAs in accordance with the
provisions of the PPA 2011, PPR 2013 and
GN 330 for the Local Government
Authorities’ Tender Boards (Establishment
and Proceedings) Regulations, 2014.
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 Roles and responsibilities of the Council Director include:-
i. Establishing a Tender Board in accordance with

the Act
ii. Appointing the members of the Tender Board;
iii. Causing to be established a Procurement
Management Unit staffed to an appropriate level;
iv. Causing to be prepared Procurement Plan for the
Council based on its Annual Plan and Budget and
submitting the same to the Full Council;

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v. Causing to be prepared quarterly
procurement reports submitting the same to
the Finance Committee for approval;
vi. Appointing the evaluation committees;
vii. Having satisfied himself that proper
procedures have been followed,
communicating award decisions;
viii. Certifying the availability of funds to support
the procurement activities;
ix. Signing contracts for the procurement
activities,
x. Investigating complaints by suppliers,
contractors or consultants
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xi. Submitting a copy of complaints and
reports of the finding to the PPRA;
Ensuring that the implementation of
the awarded contract is in
accordance with the terms and
conditions of the award; and
xii. Responsible for the provision of
periodic reports to PPRA through the
Procurement Management
Information System (PMIS).
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2) Council Tender Board
 The Council Tender Board (CTB) shall
be established in accordance with
Section 31 of PPA 2011. Further, the
composition and the method of
appointment of the members and the
procedures to be followed by such a
Tender Board are prescribed under GN
330 the Local Government Authorities’
Tender Boards (Establishment and
Proceedings) Regulations, 2014
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Composition of Council Tender Board
The Composition of Council Tender Board shall as
follow:-
a.Chairman, who shall be a Head of Department in
the Council, but not one that frequently initiates
procurement proceedings
b.Four other Heads of Department.
c.The Council Legal Officer or his representative shall
attend all Tender Board Meetings as advisor but
shall not vote in any decision
d.The Secretary of the Board shall be the Head of the
Procurement Management Unit in the Council and
shall be appointed by the Accounting Officer
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 The Accounting Officer is required to
inform PPRA timely in writing on all
CTB appointments and/or changes in
the CTB’s composition.
 The Accounting Officer shall submit to
the Finance Committee the names and
qualifications of the members of the
Tender Board for ratification and
approval
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 Roles of Council Tender Board (CTB)
 The roles and responsibilities of CTB
are provided in Section 33 of PPA
2011 read together with Regulations
18 of GN 330 of 2014 as follows:-
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i. Adjudication of recommendations
from the PMU and award of
contracts;
ii. Review of all applications for
variations, addenda or amendments
to ongoing contracts;
iii. Approval of tendering and contract
documents;
iv. Approval of procurement and
disposal by tender procedures
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v. Ensuring that best practices in
relation to procurement and disposal
by tender are strictly adhered by
Council;
vi. Compliance with the Public
Procurement Act and Regulations
thereof; and
vii. Liaise directly with the PPRA on
matters within its jurisdiction
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3) Budget Approving Authority
 The Full Council is the Budget Approving
Authority of a Local Government Authority
responsible for:-
i. Reviewing and approving the Annual

Procurement Plan based on its budget and
action plan;
ii. Reviewing of quarterly procurement
reports submitted by the Accounting
Officer;

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iii. Ensuring that the Council complies
with the provisions of the Act and
regulations;
iv. Ensuring that the PPRA’s
recommendations with respect to
established wrongdoings in
procurement activities are
implemented; and
v. Disciplining of the staff implicated
on wrongdoings.
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4) Finance Committee
 The Finance Committee is the
standing committee of the Council
responsible for overseeing all financial
matters and in this capacity
responsible for:
i. Scrutinising award of contracts;
ii. Review of the quarterly procurement
reports submitted by the Council
Director;
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iii. Overseeing contract implementation
through inspection of project works
and goods received;
iv. Instructing the Council Director to
carry out procurement or value for
money audits where not satisfied with
explanations received;
v. Approve names of the members of the
Tender Board; and
vi. Oversight on public procurement
matters. Tubeti Mwita
5) Procurement Management Unit
 Each Council is required to establish a
Procurement Management Unit (PMU) in
accordance with Section 37 of PPA 2011. The
roles and responsibilities of the PMU in the
Council include the following:-
i. Manage all procurement and disposal of

assets by tender activities of the Council
except approvals done by the Tender Board;
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ii. Support the functioning of the
Tender Board;
iii. Implement the decisions of the
Tender Board;
iv. Act as a secretariat to the Tender
Board;
v. Plan the procurement and disposal
by tender activities of the Council;
vi. Check and prepare statements of
requirements;
vii. Prepare contract documents;
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viii. Issue approved contract documents;
ix. Maintain and archive records of the
procurement and disposal process;
x. Maintain a list or register of all
contracts awarded;
xi. Prepare and submit to the
management meeting quarterly
reports on the implementation of the
Annual Procurement Plan;
xii. Co-ordinate the procurement and
disposal activities of all the
departments of the Council;
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6) User Department
 The User Departments of the Council are
required to perform their functions according
to the provisions under PPA 2011 and GN
330 of 2014 including:-
i. Liaise with and assist the PMU throughout

Action Plans, Annual Procurement Planning,
procurement or disposal of assets by tender
process to the point of contract placement;
ii. Initiate procurement and disposal by tender
requirements and forward them to the PMU;
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iii. Prepare technical inputs to statement
of requirement (SOR) and or Terms of
Reference (ToR) for procurement
requirements to the PMU;
iv. Propose technical specifications to the
PMU
v. Participate in tender evaluation (Note:
This overrides the contradiction found
in GN 330);
vi. Certify for payments to suppliers,
contractors or consultants
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vii. Report any departure from the terms
and conditions of an awarded
contract to the PMU;
viii. Forward details of any required
contract amendments to the PMU for
action;
ix. Maintain and archive records of
contracts management
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7) Evaluation Committee
 This is a Committee which is not permanent
and is required to be formed for each
tender to be evaluated. PMU liaises with
User Departments to obtain the names of
competent staff to form the evaluation
team.
 The names of the recommended team by
PMU are submitted to the Council Director
for approval. The team is notified of their
appointment. The evaluation team shall
report to the PMU.
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 The number of members of the
Evaluation Committee with appropriate
level of expertise and experience shall
depend on the value and complexity of
the procurement (ranging from 3 to 5 or
more) for Goods, Works and NCS while
evaluation of consultants’ proposals
range from (5) five to (7) seven members.
The evaluation team shall be required to
sign the Code of Ethics undertaking.
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 Members of the Evaluation Committee
may be external to the Council where
the required skills or experience are
not available within the Council.
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8) Inspection and Acceptance Committee
 The Council Director shall for each
procurement contract for goods,

including call-off orders, appoint an
Inspection and Acceptance Committee
(IAC) tasked to inspect the goods at the
office of the Council, or at the site
specified in the contract. Any inspection
conducted at any other site not specified
in the contract shall be with a prior
consent of the Council Director.
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 The committee is required to inspect
and count the goods in order to
ascertain whether they are correct,
complete and of required quality in
accordance with the agreement. A
checklist containing items to be
inspected and counted (where
applicable) should be developed to
ensure all parameters are covered.
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9) Internal Audit Unit
 The Internal Auditor is responsible
for:-
i. Independent assessment of the
effectiveness of procurement
systems and processes in the
Council.
ii. Submission of quarterly procurement
audit reports to the Council Director,
PPRA or any other authority as the
case may be.
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10. Council Legal Unit
 The Council Legal Officers from the
legal Unit are recognised by the law as

being responsible for all legal matters
as;-
i. advisors to the Accounting Officer.
ii. The Legal Officers are also required
to vet all procurement contracts of
the Council below the threshold set
(currently Tsh 1.0 billion).
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 Independence of Powers and
Responsibilities
 Each Body, Actor and Committee
including the Council Director, CTB,
PMU, User Department and Evaluation
Committee shall act independently in
relation to their respective functions
and powers as provided in section 41
of PPA of 2011and its amendments of
2016.
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 Responsibilities of LGAs external
oversight boardies:-
1. Public Procurement Regulatory
Authority.
 The oversight functions of PPRA
pursuant to Section 9 of the PPA of
2011 as amended in 2016 provides
that PPRA shall provide oversight
services to all include among others
the following:-
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i. Advise Government, local government
authorities and statutory bodies on
procurement principles and practices;
ii. Monitor and report on the performance of
the public procurement systems in the
United Republic of Tanzania and advise on
desirable changes.
iii. In collaboration with the Attorney General’s
Chamber Prepare, update and issue
authorized versions of the standardized
tendering documents, procedural forms
and any other attendant documents to PEs
iv.
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iv. Build capacity to Stakeholders involved in
procurement issues;
v. Obtain price for standardized common use
items from relevant bodies with a view to
ensure that they conform to the prevailing
market prices.
vi. Determine , develop, introduce, maintain
and update related system to support
public procurement by means of
information and communication
technologies including the use of public
electronic procurement
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vii. Administer and enforce compliance with the
provisions of the Act, regulations and
guideline issued under the Act.
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2) Attorney General
 The PPA, 2011 assigns various roles to
the Attorney General in oversight of
procurement contract, including:-
i. Vetting of contracts above the thresholds
specified in the regulations arising out of
the acceptance of a tender, offer or
proposal under the PPA;
ii. Provide advice to the Legal Officer who
seeks for an advice of the Attorney General
in respect of the contract required to be
vetted by that Legal Officer;

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i. Receive copies of award letters and
all contracts entered by Procuring
Entities; and
ii. Receive information on termination
of contract for abandoning works or
services and take appropriate action.
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3) President’s Office Regional
Administration and Local
Governments (PO-RALG)
 It is the responsibilities of the
President’s Office Regional
Administration and Local Governments
(PO-RALG) to ensure that the
procurement in LGAs is done in
compliance with the various acts,
regulations, guidelines, including
public procurement legislation.
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 The roles of PO-RALG include
amongst others the following :-
i. Ensuring that LGAs are staffed with
sufficient number of qualified
personnel in the area of
procurement.
ii. Ensuring that LGAs comply with
procurement procedures as provided
by laws.
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iii. Ensuring capacity building to
procurement staff and other
staff with roles and
responsibilities in LGA
procurement; and
iv. To take disciplinary actions to
those who performs their
procurement duties contrary to
requirements of law.
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4) Regional Administrative Secretariat
 The Regional Administrative Secretariat
provides overall coordination of all
LGAs’ procurement plans and
supervision role on procurement
implementation in the region as
prescribed in Local Government
Financial Memorandum and other
guidelines issued by the Ministry
responsible for Local Governments.
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 The role of the Regional
Administrative Secretariat through the
Local Government Authorities
Management Services Section
(LGAMSS) is to provide expertise and
service in developing good
governance in LGAs by performing the
following activities:-
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i. Advice and facilitate proper use of
public finances in LGAs;
ii. Build capacity and promote good
governance in procurement; and
iii. Take part in routine inspections of
LGA’s performance and conducting
ad hoc inspections.
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 Value for Money procurement
 Value for money means the maximum benefit
from goods, works or services procured with
the resources available worth the cost incurred.
 The purpose of public procurement is to obtain
the best value for money and to achieve this it
is important to consider, among other factors,
the optimum combination of life cycle costing
(i.e. acquisition cost, cost of maintenance and
running costs, disposal cost) of a purchase and
its fitness for purpose (i.e. quality and ability to
meet the contracting authority’s requirements).
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 In order to obtain best value for money,
procurement practitioners must ensure to:-
i. Maximize competition;
ii. Keep the procurement process simple e.g.,
good planning and clear specifications and
minimize financial risk, e.g. thorough
background checks on capacity (technical and
financial) of bidders;
iii. Carefully establish the evaluation criteria (in
order to select the offer with the highest
expectation to meet partners’ needs in
accordance with the evaluation parameters set
forth in the tender documents)

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iv. Consider all costs, e.g. life cycle costs, transportation
costs, installation costs, maintenance costs,
sustainable procurement considerations
Documentation of the procurement process);
v. Ensure, whenever possible, that social and
environmental benefits are optimized and adverse
impacts are minimized
vi. Ensure impartial and comprehensive evaluation of
offers in a timely manner.
vii. Ensure selection of the contractor whose offer has
the highest degree of realism and whose
performance is expected to best meet the specified
requirements at the lowest overall expense to the
organization.
viii.
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 Value for Money is the difference between
the total benefit derived from a good or a
service against its total cost, when assessed
over the period the goods or services are to
be used.
 VALUE FOR MONEY = TOTAL LIFETIME
BENEFIT – TOTAL LIFETIME COST
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 Essential Requirements of Public
Procurement.
 The essentials of effective and efficient
Public procurement are consistent with
the basic principles that govern the use
of all LGA funds.
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i. Compatibility with National Laws
 All procurements of LGAs shall be conducted as
provided in:
  Public Procurement Act No. 07 of 2011 as
amended 2016;
  Public Procurement Regulation GN 446 of 2013;
  Local Government Finance Act (Cap 290) of
1982; and
  LGAs TB Establishment and Proceedings GN 330
of 2014.
 The Public Procurement Act prevails as primary
legislation for procurement in Local Government
Authorities.

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ii. Conflict of Interest
 Section 84(3) of PPA 2011 provides
that, a Council shall not procure from
a member of its staff or a person who
has direct influence on the decision of
a Procuring Entity acting in a private
capacity, either alone or as a partner
in a partnership or as an officer of a
company
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iii.Awarding Principles
 Section 75 of PPA 2011 stipulates that, the
Council Tender Board shall review the evaluation
and recommendation made by the Procurement
Management Unit (PMU) and may either:
a) Approve the recommendation and authorize
acceptance of the tender and award a contract in

the form specified in the tender documents.
b)Refuse to authorize recommendation for award
of the tenders and refer the evaluation to the

Procurement Management Unit with an
instruction to re-evaluate the tenders or
retendering or other action
c)
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iv. Use of Standard Bidding and Contract
Documents .
 Section 70(1) of PPA 2011 provides that,
the Council shall use the appropriate
standard model tender documents
specified in the Regulations for the
procurement in question.
 Authorized versions of the standardized
tendering and contracts documents,
regularly updated, for use by Procuring
Entities are available from the website
of the Authority.
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v. Availability of Funds
 Local Government Authorities shall ensure
that funds are allocated or committed
before commencing procurement
proceedings especially for “Large” projects
exceeding one year. For contracts whose
funds are exclusively budgeted for during a
particular financial year, the contract can
only be signed when funds are available.
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CHAPTER EIGHT
SPECIFYING REQUIREMENTS
Specification is a statement of requirements to
be satisfied by a product or service.
Specification is a pre-requisite to good
purchasing
• Specification refers to the description of
characteristics of the items to be procured
• A statement of attributes of a product or
services
Specification is a statement of requirements
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• Specification is clear and accurate
description of technical
requirement for material, products
or services”.
• “A specification is a statement of
necessary details sufficient to
identify that which is to be
procured”.
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 Determining and specifying requirements means
being able to answer questions such as:
 What exactly is required (in terms of quality,
type, size, performance, etc)?

 How much is required?
 When is it required?
 When should it be delivered?
 How should it be transported?
 How should the quality be tested?
 Specifying requirements correctly is
fundamental, since it is a major determining

factor of cost and effectiveness, and hence of
profitability.
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 Functions of specification
(a) Act as a basis of communication both within
and outside the organizations
(b) Used as a basis of conducting inspection and
testing
(c) Basis of formation of contract
(d) Basis of acquiring items of the right quality
(e) Basis of evaluation and comparison of
suppliers
(f) Present a clear statement of required standard
of workmanship, materials and performance
(g) It is a prerequisites for bidders to respond
realistically and competitively
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Rules of specification/Tips of preparing
specifications?
1. Use common language
2. Use clear, precise and comprehensive
statement
3. Avoid ambiguous(vague/confusing) words
4. Avoid words with two meaning
5. Avoid partial or incomplete
details/information
6. Adhere to the policy of the firm and/or state
7. Avoid focusing on a certain make, supplier
8. Do not use unknown acronyms,
abbreviations. Tubeti Mwita
 Stages of developing specification
i. Identification and full description
of need
ii. Resources mobilization
iii. Compilation of schedule of
requirements
iv. Compilation of procurement plan
v. Development of specifications
based on items planned for
procurement.
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 Challenges in compiling specification
i. Complexity of product or input
ii. Targeted delivery time, cost, quality and
quantity
iii. Governing industrial procedures and
distribution channels
iv. Available implementation and administrative
arrangement
v. Availability of right information or data at the
right time
vi. Some specification may lack clarity,
corrosiveness and thus wrong interpretation
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 Methods of specifying requirements.
1.Brand names
 This is the method that uses brand of the item
or maker, e.g. Coca-Cola, Pepsi, Toyota etc.

 One can simply specify his need by using brand
names.
Advantages
1. It is simple to use
2. It does not demand great expertise
3. Buyer get items that he has great confidence
with
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 Circumstances under which brand description
is desirable.
i. When the manufacturing process is secret or
covered by a patent
ii. When the manufacturers process call for a
high degree of workmanship or skill that can
not be defined exactly in specification
iii. When only small quantities are ought so that
the preparation of specifications by the buyer
is impracticable
iv. When testing by the buyer is impracticable
v. When there is a strong preference for the
branded item on the part of the design staff.
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 Disadvantages of using brand name
1. It hinders competition
2. It may lead to unreasonable price
3. Quality of such product may have been
altered from the original one.
4. Buying from established brand names
may get you incompatible quality
sometimes
5. Brand names may be popular to some
group of people
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2. Samples
 These are the goods/item that resemble to
the ones you want to buy. Buyer display the
sample to the supplier and ask him(supplier)
to bring the buyer with the same and exact
item. This method is used when buyer find
difficult to clearly describe the item he need.
Advantages of sample
1. It is simple way to portray the need
2. It does not demand great expertise
3. It simplify the process of buying
4. It saves time
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 Disadvantages of sample
1. It may hinder competition if the
sample provided bear the brand
name
2. It give supplier substantial role in
meeting the quality desired
3. Buyer may not be able to get the
necessary knowledge of the need
4. Buyer has a little chance of
influencing price
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3) Physical or Chemical composition
 Composition specifications refer to the make-up
of an item, and are generally stated in terms of
physical and/or chemical characteristics.
 In specifying requirements, the buyer describes
the items in terms of their physical appearance or
their chemical compositions. When preparing its
specifications, the company should make sure
that specifications are closely related to the
industry standards
 E.g. Chemical contents such as hydrogen, carbon,
oxygen
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4.Functional or performance
specification
This involves stating the functional
purpose, an item or material
required is described its quality by
specifying what is required to do or
perform or accomplish.
For example; I need a car for
transportation of farm products.
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 Function and performance
specification…
 These two terms are sometimes used
interchangeably however functional
specifications often state in very basic
terms what function a purchased
product is required to carry out or
achieve.
 A performance specification often states
certain additional requirements in terms
of how well the function is to be
achieved Tubeti Mwita
 Performance specification can include
 What is to be achieved?
 The process input
 Quality levels
 Safety levels
 The maximum required levels of
maintenance and servicing

 The specifically required levels of output
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 Functional and Performance specification is
appropriate where:
i. Suppliers have greater expertise than purchaser
ii. Innovation is valued
iii. Technology is changing rapidly In the supply
industry
 Advantages of functional and performance
specification
a) Ease to prepare specifications
b) Assurance of specification of attaining the
intended purpose.
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5. By market grade
 Is a method used in grading natural
product which have been determined
previously and agreed upon quality.
Is a method of determining the
quality of commodities. E.g. Grade I,
Grade II
Example coffee, cotton, tobacco,
Cocoa
E.g .Grade A, Grade B, Grade C
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 6. Specifications by standards
 Standards are documents that stipulate or
recommend minimum levels of performance

and quality of goods and services and
optional conditions for operations in a given
environment.
 Standards may be distinguished according to
their subject matter, purpose and range of

applications
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 There are well over 100 bodies promoting
standards in the world. Some of the
important standards producing bodies are
listed below:
 ANSI: American National standards Institute
 API: American Petroleum Institute
 ASME: American society of mechanical
engineers
 BSI: British standards institution
 CEN: European Committee for
Standardization
 CSA: Canadian standards association
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• SABS: South Africa Bureau of standards
• SAE: Society of Automotive Engineers
• TBS: Tanzania bureau of standards
International standards organization (ISO)

• The international standards organization (ISO)
is the specialized international agency for

• standardization. Its members are bodies of
more than 100 countries, representing more
than 95% of the world’s industrial production
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7.Engineering drawings or blue prints
Refers to technical drawing which
portray the shape or spatial relationship
• Engineering drawings are extensively
used in describing the quality for

construction projects, for foundry and
machine workshop.
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 Advantages of using engineering
drawing/brueprint
i. They are accurate and precise
ii. They are the most practical way of
describing mechanical items
iii. They permit wide competition
iv. They clearly establish the standards
for inspections.
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8) Material and method of manufacture
specifications
 This type of Specifications/description
is at the opposite end of the spectrum
relative to performance specifications.
When this method is used, prospective
vendors are instructed precisely as to
specific materials and how they are to
be processed.
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 The buyer assumes full responsibility
for the product performance. Further,
the buyer assumes that his/her firm
have the latest knowledge concerning
materials, techniques and
manufacturing methods.
 This method is most used primarily by
the armed services and the

department of energy
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9. Technical specification
 A technical specification is highly prescriptive;
as it needs to fully define what is a required,
technical specification generally includes a
combination of the following :-
 Physical characteristics (dimensions, strength,
etc).
 Design details
 Tolerances
 Material used
 Processes/methods involved in production
 Maintenance requirements
 Operational requirements
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 The technical specification may
include both written information and
detailed drawings, as these can
sometimes avoid the need for
excessive descriptive text.
 The buying firm is responsible for
producing the detailed technical

specification, and supplier is simply
responsible for manufacturing the
product in accordance to the
specifications.
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 Technical specifications are appropriate where:-
i. The suppliers do not possess the required
design expertise.
ii. The buyer is prepared to accept the risk of the
design not resulting in the required
performance
iii. The organization wishes to maintain the
design expertise in-house (e.g. to protect its
competitive advantage)
iv. There are complex interfaces with existing
equipment
v. Make sure your technical specifications are
clear and precise
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.Combination method
10)
That is mixture of two or more of the above
methods
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 Standard vs Specification
 . Specification
 A specification is typically a company specific
document which sets parameters for an item. An
example of a specification would be geometric,
electrical and other parameters for a specific
device a specific manufacturer makes. However, a
company (or other entity such as a government)
may develop a specification for something such
as a device or part which will be purchased.
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 Thus, a specification may be developed for
many companies as a requirement by one
company (or a few companies) which is
applicable to a device or part produced by
any company accepting a contract
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 Standard
 A standard is typically
specifications/parameters applicable
to many things or types of things. An
example of a standard would be ISO
9001 which is applicable to just about
any organization
 Standard is a specification intended
for current use
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 Standard differ from specifications in that
while every standard is specification not every
specification is a standard.
 Qn .Compare and contrast between Standards
and Specifications
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• Contents of specification document
i. Identification-title,
designation,number,authority
ii. Issue number-publication history, and state of
issue,earlier related specifications
iii. Contents list-guide to layout
iv. Foreword- the reason for writing specification
v. Introduction-description of the content in

general and technical aspects of objectives
vi. Scope- Range of objectives/content
vii. Definitions-terms used with meanings special

to the text
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viii. Requirements/guidance/methods/elements
-The main body of specification
ix. Index-cross references
x. References to national,Eropean or
international standard or other internal
company specifications.
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CHAPTER NINE
INTERNATIONAL LEGAL INSTRUMENTS GOVERNING
PUBLIC PROCUREMENT.
 The worldwide public procurement is guided by
the United Nations Commission on International

Trade Law (UNCITRAL)
 The guide is considered to be the mother law of
enactment of public procurement. Currently,2011

model law is in place. It is intended to enable
government purchasers to take advantage of
modern commercial techniques such as e-
procurement and framework agreement and to
enhance integrity in public procurement and assist
states in formulating a modern procurement law.
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 Many developing countries faces governance
challenges,citizens are demanding
transparency,accountability and a greater say
in their govenments.
 There is a great need to improve the
efficiency of managing public finances
 The challenges can be viewed as
opportunities change and fundamental
improvements through public procurement
reforms
 Public procurement is vital to the delivery of
public services,results and performance. Used
as strategic tool to enhance government
performance and the quality of services.
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 It requires a multifaceted approach for reform
 The key event during the period that served as
important drivers in performing procurement
are;-
i. The creation of the European Union (EU)
 The European Comission issued a green paper on
public procurement to open the discussion with private
sector,the contracting bodies and other stakeholders.
ii. The General agreement on Trade and Tarrifs
(GATT)
 The government Procurement Agreement (GPA) in 1994
and the creation of the World Trade Organization
(WTO) IN 1995.The GPA introduced framework for
government procurement that aimed to achieve greater
liberal isation and expansion of world trade..
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iii. In 1994, UNCITRAL published the model
law on procurement of Goods,contruction
and services.
 The existing legislation governing
procurement is inadequate and
uotdated resulting in inefficiency and
ineffectiveness in the procurement
process. patterns of abuse and the
failure of the government to obtain
Value for Money in the use f public
funds.
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iv. In the mid 1990’s International
Development Institutions.
 Shifted the focus of procurement due
diligence form supervising borrower
compliance with their policies and procedures
v. Technological Innovation
 These technologies made it possible to
minimize or eliminate interaction between

procurement officials and bidders, thus
reducing the opportunity for collusive
practices
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vi. In 2006 the OECD/DAC’S joint Venture on
procurement (JVP)
 Prepare diagnistic tool to assess
public procurement systems.
 The tool has evolved into an
intermediary accepted set of
standards utilization by governments
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 Public procurement systems should
be measured not merely by formal
compliance with procedures but also
by the achievement of development
and other policy objective
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 Public procurement Reforms in Developing
Countries.
 In developing Countries, public Procurement
Reforms have been attributed from rapid
changes of economy,globalization and
pressure from international donors. The
demands for international institutions is to
hamornize national and internation
procurement systems and eliminate
weakness in public procurement.
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 PUBLIC PROCUREMENT REFORMS IN
TANZANIA.
 The history of public procurement systems in
Tanzania traces back to PRE an POST colonial
era.
 Prior to the enactment of the Public
procurement Act 03 of 2001, procurement
was regulated by the Exchequer and Audit
Ordinance of 1961 and the financial order
Part III in public sector adopted from British
colonial masters.
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 Pre-PPA No 3 of 2001
 PPA No. 3 of 2001
 PPA No. 21 0f 2004
 PPA No 7 of 2011 and
 PPA ( Amendment) 2016
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 Features of PPA No.21 of 2004
i. Establishment of PPRA to replace CTB
ii. To decentralize procurement to PEs
iii. Changes in the composition of Tender
Board where A/O/ CEOs are no longer
chairpersons of Tender Board.
iv. Membership of PPAA Board to include
private sector and Professional Boards.
 These changes were meant to increase
efficiency, accountability in public

procurement and foster participation of
domestic firms in public procurement
market. Tubeti Mwita
 Establishment of the PPA 2011
 Following the deficiency of the PPA 2004, more reforms
were made including establishment of PPA no.7 of 2011.

 Reasons for repeal of PPA No 21 of 2004
i. Delay in procurement process

ii. High price of goods and services
iii. Long procurement complaint process
iv. Delay in payment to suppliers
v. Limited powers of PPRA and its outreach capacity in the
LGAs
vi. High procurement transaction cost
vii. Corruption and lack of ethics in the procurement
process
viii. Low level of participation of local firms in the
procurement process
ix. Inadequate transparency in the tender award
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 WORLD BANK (IBRD)
 Is an International financial institution
whose purposes includes assisting the
development of its member nations
territories,promoting and
supplimenting private foreign
investment and promoting long range
balance growth in International Trade.
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 Functions of World Bank
i. Providing loans to government for
agriculture,irrigation,power,transport,
water supply,education,health etc.
ii. Provide advice and technical
assistance.
iii. To serve as catalyst to stimulate
investment in developing countries.
iv. Granting reconstruction loans to war
devastated countries
v. Granting developmental loans to
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 World Trade Organization ( WTO)
 Is the only International
Organisation dealing with the
global rules of trade organisation.
 Its main function is to ensure that
trade flows as smoothly,

predictably and freely as possible
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 Functions of WTO
i. To implement rules and provisions related to
trade policy review mechanism
ii. To provide platform to member countries to
decide future strategies related to trade and
tariff.
iii. To provide facilities for implementation,
administration and operation of multilateral and
bilateral agreements of the World Trade
iv. To administer the rules and process related to
dispute settlement.
v. To ensure the optimum use of world resources
vi. To assist International Organisation such as IMF
and IBRD for establishing coherence in Universals
economic policy determination.
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 UNITED NATIONS TRADE LAWS (UNCITRAL)
 Recognized as the core legal body of the United
Nation Sysytem in the field of International

Trade Law.
 Functions
i. It is a legal body with universal membership

specializing in commercial law reform world
wide
ii. It is responsible for business modernization
and harmonization of rules on international
business
iii. It formulates modern,fair and harmonized
rules on commercial transactions
iv. Prepare model laws and rules which are
acceptable worldwide Tubeti Mwita
v. Provide legal and legislative guides and
recommendations of great practical value
vi. Updated information on case law and
enactments of uniform commercial law
vii. Technical assistance in law reform projects
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ROLE OF EUROPEAN UNION (EU) IN PROMOTING
PUBLI C PROCUREMENT
 EU laws sets out minimum harmonized
public procurement rules which organize the
way public institutions procure goods, works
and services.
 Same principle applies when dealing with
International Procurement
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 AGA AFRICAN MACHINERY
 The African Governance Architecture (AGA) is
a constitutive Act of the African Union

(AU),that promotes and protect human and
people’s rights, consolidate democratic
institutions and culture and ensure good
governance and the rule of law.
 I terms of governance AGA Promote
i. Public service and administration

ii. Local governance and decentralization
iii. Anti-corruption and accountability
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CHAPTER 10
ETHICS IN PROCUREMENT
 Ethics is referred to as moral principles that
govern a person’s behavior or the consulting
of an activity.
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 Ethics is the moral principles governing
or influencing conduct.
 Ethics is the branch of knowledge
concerned with moral principles.
 Ethics is referred to as moral principles
that govern a person’s behavior or the
conducting of an activity.
 Ethics is the principle of conduct
governing an individual or groups,
concern for what is right or wrong, good
or bad.
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 Professional Ethics
 Are guidelines/best practices that
represent ideas and responsibilities that
inform practitioners as the principle and
conduct they should adopt.
 Professional ethics refers to the
behaviour of a member of a
professional body towards the members
of the public. In other words,
professional ethics are detailed rules,
guidelines and standards of conduct of
behaviour for professional members.
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 The code of professional ethics (Code of
conduct) is a set of rules that guide members
of a profession when dealing with colleagues,
clients, and/or superiors. It is often seen as
the "Guidebook" every member, owner or
employee should follow in order to act in the
public interest, provide services of highest
standards of performance and prepare
information and reports that are reliable.
 Code of ethics and conduct” means a written
set of rules governing the behavior of
procurement and supplies professionals and
technicians made pursuant to the provisions
of the Act.
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 Medicine, law, engineering, architecture, and
theology are some examples of disciplines
long accorded professional status. All of the
recognized professions have several common
characteristics. To a great extent, it is these
characteristics which distinguish the
professions from the disciplines.
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 Unethical behaviour results when
one does not consider what is
good for others.
 For example, being ethical means
treating suppliers/contractors
equal, fair, honest and fitting
manner. Preferential treatment or
personal buying can be
considered unethical.
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 Ethics” and “Morality” are two
terms used interchangeably
 Ethics concerns itself with what is
good or right in human

interaction.
 It may also be construed as what
is right and wrong, moral and

immoral.
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 Ethics and the Law
 There are similarities between ethics and
the law, but there are also significant
differences.
 Both Law and ethics strive towards
determining what is right or wrong in the
Society.
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 Unethical behaviour results when
one does not consider what is
good for others.
 For example, being ethical means
treating suppliers/contractors
equal, fair, honest and fitting
manner. Preferential treatment or
personal buying can be
considered unethical.
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 Ethics” and “Morality” are two
terms used interchangeably
 Ethics concerns itself with what is
good or right in human

interaction.
 It may also be construed as what
is right and wrong, moral and

immoral.
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 Ethics and the Law
 There are similarities between ethics
and the law, but there are also
significant differences.
 Both Law and ethics strive towards
determining what is right or wrong in

the Society.
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 The law does so through a public and political
process and employs power of state to ensure all
abide the law.
 Ethics emanates from personal values:
–sense of obligation to what is right or
wrongs
– it is internal as opposed to external
pressure.
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 Sources of Ethics
i. Internal values
ii. Learned values
iii. Religion
iv. Law
v. Public opinion
vi. Other sources
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 Importance of Ethics in Procurement
i. Help people to interact and live their
daily lives in functional way.
ii. Govern person’s code of behaviour
iii. Prevent moral wrongs from occuring
iv. Allows suppliers/contractors to
compete.
v. Enable buy organizations to achieve
value for money in procurement.
vi. Foster trust from suppliers and other
stakeholders.
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 Principles of professional
Ethics.
i. Impartiality/objectivity
ii. Openness and full disclosure
iii. Confidentiality
iv. Due diligence,competency and
duty of care
v. Fidelity to professional
responsiblities
vi. Avoiding potential/apparent
conflicts of interest.
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 Principles of Professional Ethics
 Some ethical concepts and principles that relate to
the procurement professionals are:-
i. Loyalty and respect for rules and regulations
ii. Integrity
iii. Impartiality and fairness
iv. Transparency
v. Confidentiality
vi. Avoidance of appearance of impropriety
vii. Due diligence.
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i. Loyalty and respect for rules and regulations
 Under this principle procurement officers shall
 Stand by decisions that are in the

organization’s interest even if they are
unpopular.
 Understand the rules and regulations
pertaining to his or her profession and
organization.
 Know why the rules and regulations are
necessary.
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 Know what caused the rules and regulations
to be enacted.
 Respect the need for the formality of rules
and regulations.
 Interpret and apply rules in accordance with
their intent.
 Be able to perform procurement
responsibilities effectively and efficiently and
still abide by the pertinent rules.
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 Under this principle, the existing regulations,
rules and procedures must be followed. The
procurement officer must perform regulated
tasks consistently according to the specified
procedures and take a leadership role to help
co-workers and stakeholders understand and
follow them as well.
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ii. Integrity
 This must be judged on the basis of the
total behaviour of the person concerned.
Such elementary personal or private
qualities as honesty, truthfulness,
fidelity, probity and freedom from
corrupting influences, are clearly
included.
 This includes all aspects of behaviour of
civil servant, including such qualities as
honesty, truthfulness, impartiality, and
incorruptibility.
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iii. Impartiality and fairness
 “Impartiality implies objectivity, lack of bias,
tolerance, restraint. Treat all bidders/suppliers

fairly.Ensure equal treatment to all bidders
iv. Transparency
 Transparency means unimpeded visibility.
Because public procurement involves the use of
and accountability for public funds,
transparency is, perhaps, paramount in all
procurement activities. Transparency means
lack of hidden agenda and conditions
accompanied by availability of full information
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v. Confidentiality
 Staff members shall exercise the utmost
discretion with regard to all matters of official
business. They shall not communicate to any
Government, entity, person or any other
source of information known to them by
reason of their official position that they know
or ought to have known has not been made
public except as appropriate in the normal
course of their duties or by authorisation of
the Secretary General. These obligations do
not cease upon separation from service.
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vi. Avoidance of the appearance of impropriety
 Employee behaviour is judged according to
legality and the satisfaction of owners or
customer. Avoid to appear improper.
 Procurement officers must be constantly
aware of how their actions appear to outside
observers. Observers may not understand the
pressures of their professionals.
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 What people think of the procurement
officer’s behaviour can be the basis of major
scandals based on misunderstandings and
erroneous information that can damage an
organization’s effectiveness in achieving its
mission.
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vii. Due diligence
 This refers to carrying out duties carefully and
thoroughly and avoiding careless practices or
techniques. Due diligence requires that all
activities by procurement officers be pursued
in a manner that goes beyond the minimum
effort.
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 Ethical risks in procurement process
i. Conflict of interest
ii. Fraud
iii. Corruption
iv. Coercion
v. Collusion
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i. Conflict of interest
 A very common risk situation related to ethics in
procurement is the risk of a conflict of interest.
Conflict of interest can be defined as a direct or
mutually exclusive clash between the interest of
the entity/company and the private or personal
interest of a procurement officer.
 Staff members shall not use their office or
knowledge gained from their official functions
for private gain, financial or otherwise, or for the
private gain of any third party.
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 In the context of procurement, a procurement
officer should:
 Declare with immediate effect any potential
conflict of interest.
 Not use information obtained for professional
reasons for personal profit.

 Disclose and dispose the financial interest
involved.
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 Not participate in any conflicting
 Excuse or withdraw from any procurement
process where the procurement officer may

have a conflicting interest
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ii. Fraud
 Fraud means the intentional, false
representation or concealment of a material
fact for the purpose of inducing another to
act upon it to his/her detriment, for example
in order to influence the competitive selection
process or the execution of a contract.
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 Common fraud in procurement
 A person with responsibility for buying defrauds
his or her employer.

 Suppliers defraud their customers.
 Suppliers and buyers work together to defraud
the buyer’s employer.

 Buyers make personal gain at the expense of the
supplier.
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iii. Corruption
 Corruption means the practice of offering,
giving, receiving, or soliciting, directly or
indirectly anything of value to influence the
action of a public official in the competitive
selection process or in contract execution.
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• Types of corruption in procurement
a) Direct corruption
e.g.
 Cash paid to the procurement officer, to
settle the buyer’s personal debts or paid to

a third party for the buyer’s benefit.
 Cheques paid directly to the buyer or
members of his family, paid to businesses

in which the buyer has an interest.
 Cheques paid to settle the buyer’s personal
debts.
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 Shares and share options.
 Free or discounted goods or services
b) Indirect corruption
 Employment of a member of the buyer’s
family, or employment of the buyer on a

consultancy basis.
 Future offers of the same.
 Inside information which will benefit the
buyer.
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 Threats of blackmail or violence.
 Free travel and expenses to visit exhibitions
or to visit suppliers’ factories.

 Invitation to entertainment events
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iv. Coercion.
 Coercion means harming or threatening to
harm, directly or indirectly, persons, or their

property to influence their participation in
the procurement process, or affect the
execution of a contract.
v. Collusion
Collusion means a scheme or arrangement
between two or more suppliers to establish
prices at artificial, non-competitive levels.
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 Potential areas of risk in the procurement
cycle.
a) Budgeting
 Fraud and corruption must be paid for from
somewhere. Lack of proper budgetary
control, for example when all funds are not
allocated to a specific purpose, can provide
the necessary funds.
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b) Specification development
 Specifications can be written to favour a
specific supplier. Clarifications on
specifications can be provided to one of the
invitees only during the tendering process
c) Evaluation criteria
 Evaluation criteria can be written, or
amended, after receipt of offers to favour a
particular supplier.
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d) Pre-qualification
 This process can be used to limit the field of
competition to give a favoured supplier an
advantage.
e) Invitation to tender/sourcing
 This process can be used to give the illusion
of competition where it does not really exists
by inviting tenders from companies who are
known to be unsatisfactory, or by not sending
out complete specifications to all tenders at
the same time etc.
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f) Offer evaluation
 Fraud at this stage occurs mainly when
objective evaluation criteria have not been
agreed in advance. It can also occur where
technical staff is able to use their specialist
knowledge to mislead other members of the
evaluation team.
g) Negotiation
 Favoured suppliers can be assisted or given
useful information during negotiations.
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h) Contract award
 There are opportunities for fraud by
the supplier either through
deliberately fraudulent acts or through
buyer incompetence.
i) Post award changes to specifications
 This allows suppliers to increase
profits, particularly when awarded the
contract on an attractively low offer
price.
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j) Goods receipt
 Examples are: Allowing under-deliveries of
goods or non-performance to specifications,
or drafting false goods inward notes;
deliberate over ordering; allowing inventory
to dwindle so that emergency orders at a
higher price will have to be processed.
k) Invoice certification
 Deliberate overcharging, backdating orders to
allow benefit from price changes, paying
twice, failing to insist on or monitor
retentions
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l) Decentralized procurement organization
 In decentralized organizations the
responsibilities are delegated to a large number
of people, and it is difficult for the central
procurement function to exercise total control
and to be aware of what is going on in the
decentralized units. Although decentralization
can often improve efficiency and reduce costs, it
can also increase the risks of corruption.
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 Potential warning signs of unethical practices
 There are some typical signs that may indicate or
warn of unethical practices. These include, but

are not limited to the following:-
 deviations from correct procedures
 overcharging by the supplier
 poor record keeping
 missing files
 poor or no separation of duties (for example, the
same person issues the order and approves the

payment)
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 poor control (for example, only one
person signs a contract)
 buyer’s extravagant life style
 buyer’s frequent absence from the
office
 excessive entertaining by suppliers
 resistance to audit
 reluctance to delegate
 excessive secrecy
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 dictatorialmanagement style
 unnecessary meetings with suppliers
 not allowing other staff to deal with
certain suppliers
 established suppliers’ reluctance of
entering competitive tendering

 supplier cartels.
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 Tools and mechanisms to prevent and detect
unethical practices.
 Some tools and mechanisms that may be
used to prevent and detect the occurrence of
unethical practices are listed below :-
i. Management responsibility
 Management should maintain the highest
standards of integrity in its everyday
dealings. Where senior management behaves
dishonestly, corruption and fraud will spread
to all levels.
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 Management’s responsibility is to set the
highest standards of integrity and be an
example for everybody in the organization to
follow. Managers should also point out
correct behaviour to employees and draw the
line between acceptable and unacceptable
behaviour.
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ii. Code of ethics
 All organizations should develop a code of
ethics for all staff to follow. A code of ethics
is a formalized statement containing ethical
codes of conduct for the organizations’
members to follow. The Code of Ethics will
clearly state what type of behaviour is
expected from the members, and what type
of behaviour is unacceptable.
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iii. Organizational procedures
• To prevent fraud and corruption an
organization should have in place the
following organizational procedure:-
Pre-employment screening. The
background of all job applicants should
be checked before they are employed and
granted access to premises and assets .
Classification and protection of
information- Clear desk policy’, secure
filing cabinets for all employees,
sufficient number of paper shredders,
secure disposal of all waste paper.
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Data security standards-
Procedures should be introduced
for all data processing resources.
Instructions on minimum standards
should be enforced.
Incident reporting- All employees
should be responsible for reporting
losses and security incidents.
 All incidents, regardless of how
small they are, should be reported
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iv. Personnel policies and procedures.
 Fair, open, and efficient personnel policies
and procedures reduce the organization’s
exposure to fraud
 Policies and procedure
a) Job descriptions-Security responsibilities should
be drafted into contracts and job descriptions to
deter personnel from being dishonest-
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b) Education and training
 Awareness training can clarify what is meant by ethical
conduct, short cuts, and fraud and contribute to the
prevention of fraud.
 Training programs can be supported by booklets on
the organization’s business ethics and security
policies, articles in internal newsletters or magazines,
newsletters including reports on frauds discovered and
the lessons learned from them, as well as films and
videos.
 New employee induction training can cover security
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c) Investigation
– Set down organizational rules for
conducting investigations into
suspected or reported incidents of
fraud or breaches of security, including
employee obligations to assist in such
investigations.
– Criminal offences or reasons for
disciplinary action should be brought to
the attention of all staff.
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v. Accounting controls
 The integrity of accounting systems is an
essential element in preventing fraud. Controls
should ensure that details of all goods and
equipment moving in and out of the
organization are recorded on serially
numbered documents or computer records,
and copies of documents recording
movements are retained securely. Maximum
use should be made of numerical controls,
using documents with pre-printed serial
numbers.
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vi. Segregation of duties
 This is the most basic and one of the most
effective ways of preventing fraud, since it
removes the possibility of ‘closed loops’, that
is, one person having the authority to budget,
provision, order and pay. Each transaction
should be divided into a number of stages
and no one person should ever have the
authority to handle all of the stages.
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vii. Control systems
• Control systems in procurement protect honest
buyers and suppliers from false accusations of
dishonesty, encourage them to work honestly
and effectively, and prevent and detect
corruption.
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 It is often difficult to get the right balance
between under- and over-control and many
organizations have control systems which are
either too restrictive or too lax. An effective
and well-balanced control system needs to
be flexible, allowing honest buyers and
suppliers to operate efficiently, while at the
same time minimising the risks of dishonesty
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viii. Financial approval policy
• The policy on financial approval for
procurement actions should be clearly
communicated to all relevant staff.
The consequence of abuse should be
defined. Approval levels should not be
set artificially low, but at a realistic
level sufficient to enable employees to
do their jobs efficiently.
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ix. Control over goods and services received
 Controlling the receipt and storage of goods
is a vital aspect of eliminating opportunities
for fraud.
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CHAPTER ELEVEN
PROCUREMENT AND CORRUPTION
World Bank defines fraud and corruption as
solitation, payment or receipt of bribes, gratuity or
kickbacks or the manipulation of loans WB financed
contracts through any form of misrepresentaion.
 Any situation in which tariff members have abused
their position or misused WB funds or other public

fund or public gain.
 Misuse of entrusted power for private gain
 PPA 2011defines corruption as offering, giving,
receiving or soliciting of anything of value to

influence the action of public officer in
procurement process/contract execution.
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 Indicators of corruption
i. Acceptance of money/other rewards for
awarding contract
ii. Violation of procedures to advance personal
interest.
iii. Diversion of public resources for private use
iv. lllegal activities or intervening justice
v. Nepotism, common theft overpricing
establishing non existing projects payroll
padding, tax collection.
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 Causes of corruption
i. Poverty
ii. Social pressure/peer pressure/everyone is
doing
iii. Supplier pressure/influence/
iv. Culture factors
v. Greed and selfishness
vi. Distorted policy
vii. Opportunities to be corrupt exist
viii. Reward structure when salaries are low
ix. Laxity in enforcing controls
x. Feeling of not hurting anybody
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 Impact of corruption
i. Poor delivery of goods and services
ii. Poor workmanship
iii. Contribute environmental degradation
iv. Hamper economic growth
v. Raises transaction costs
vi. Distorts competition
vii. Discourage foreign suppliers
viii. Discourage growth of domestic firms
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 Combating corruption
i. Reject award contract to bidder who has
been engaged corruption or fraudulent
practice
ii. Declare firm ineligible
iii. Create political will to combat corruption
iv. Create anti-corruption watch dog bodies
v. Reform public sector
vi. Enhance corporate governance
vii. Strengthen the legal and justice systems
viii. Be honest and open
ix. Introduce whistle blowing systems
x. Create public awareness on evil of corruption
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 PUBLIC PRIVATE PARTNERSHIP (PPP)
 Building and rebuilding cities and new
communities is a complex and challenging
endeavor under the best of circumstances.
Among other things, it requires merging public
and private interests and resources. However,
the traditional process of urban and suburban
development can be inherently confrontational
—an arm-wrestling contest between the local
government and the developer to see which will
win distinctly different prizes.
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 Today, public/private partnerships are considered
“creative alliances” formed between a government entity
and private developers to achieve a common purpose.
Other actors have joined such partnerships—including
non governmental institutions, such as health care
providers and educational institutions; non profit
associations, such as community-based organizations;
and intermediary groups, such as business improvement
Districts. Citizens and neighborhood groups also have a
stake in the process. Partnerships around the country
have successfully implemented a range of pursuits from
single projects to long-term plans for land use and
economic growth. Partnerships have completed real
estate projects such as mixed-use developments, urban
renewal through land and property assembly, public
facilities such as convention centers and airports, and
public services such as affordable and military housing.
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 PRINCIPLES OF SUCCESSFUL PUBLIC PRIVATE PARTNESHIPS.
i. Prepare Properly for Public/Private Partnerships.
ii. Create a Shared Vision
iii. Understand Your Partners and Key Players
iv. Be Clear on the Risks and Rewards for All
Parties
v. Establish a Clear and Rational Decision-Making
Process
vi. Make Sure All Parties Do Their Homework
vii. Secure Consistent and Coordinated Leadership
viii. Communicate Early and Often
ix. Negotiate a Fair Deal Structure
x. Build Trust as a Core Value
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i. Prepare Properly for Public/Private
Partnerships.
◦ Early and comprehensive preparation by both the
public and private sectors is the key to successful
public/private partnerships. The tasks of the public
and private partners described here should not be
perceived as sequential; all are necessary for a
successful partnership. Preparation entails creating
and constantly updating a plan for development
showing specific sites for private investment
opportunities. In addition, the public partner must
identify development goals and resources, including
commitments for inducements and incentives for
prioritized projects in the plan. This specificity will
enable developers to understand the true scope of
the development opportunities in the community.
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ii. Create a Shared Vision
 All successful projects start with a vision.
Without a vision, the project will most likely
fail. The vision is the framework for project
goals and serves as the benchmark to ensure
the realization of joint objectives.
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iii. Understand Your Partners and Key Players.
 The beginning point of any successful
partnership is for all prospective partners to
invest the time and effort necessary to gain a
full appreciation of, and respect for, their
counterparts in a deal—their background,
reputation, experience, needs, financial
strength, motivations, expectations, and
goals. Choose wisely, because you want
partners who will work with you, not against
you. Everyone is not in the deal for the same
reasons, and without such understanding,
trust will never be built, and distrust may
cause the deal to unravel.
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iv. Be Clear on the Risks and Rewards for All
parties.
 Nothing ventured, nothing gained.” This old
proverb captures the essence of the
risk/reward relationship inherent in
public/private partnerships.Key to having
such a partnership produce tangible, positive
results is for each partner to understand and
appreciate the nature and scope of the
opposite party’s potential risks and rewards,
as well as its own, so that mutual success is
achieved.
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v. Establish a Clear and Rational Decision-
Making Process.
 All parties need to articulate and agree upon
the process to be followed and the rules of
engagement to be used to structure a deal with
public and private dimensions as early as
possible. Agreement on process helps ensure
that partnerships establish effective policies
and implement them efficiently and
collaboratively. Furthermore, a documented
decision-making process increases
transparency and facilitates the sharing of
information about the project.
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vi. Make Sure All Parties Do Their Homework
 For any public/private partnership to be
successful, all parties must do their
homework—at the onset as well as
throughout the project. The partners need to
understand that they will have to invest time,
energy, and resources at all phases of the
project.
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vii. Secure Consistent and Coordinated Leadership.
 Any public/private partnership deal needs a
champion, whether it is an individual or a small
group. Why? To define clear goals; to build broad
constituencies; to bring the right parties around
the table; to coordinate process; to bridge
private project management with political
leadership; to provide stakeholders who are not
financially involved but have an interest in, and
expectations about, a project, with a forum to
express their views; and to keep everyone on
point and not let a project languish. Leadership
creates positive change.
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viii. Communicate Early and Often
 The more open the communication channels
and the more they are used by each partner,
the greater the prospects for a successful
project outcome and lasting public/private
partnership. Regular communication within
the partnership assists in the recognition of
joint interests and ensures a more efficient
decision-making and implementation
process.
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ix. Negotiate a Fair Deal Structure
 Fairness” is a value subject to judgment by
both sides in any negotiation. Legal
documentation provides evidence of the
terms that all parties agreed to at closing, but
fairness is often determined by subsequent
changes in fact. Because we cannot anticipate
all future changes, fairness will often remain
an elusive goal.
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x. Build Trust as a Core Value.
 Trust is one of the overarching values to be
realized from the beginning and throughout the
public/private partnership process. To endure,
partnerships require a foundation of trust in
each partner’s commitment to the project and its
objectives. Given the complex public/private
partnership process and structure, trust is
required between the multiple actors and entities
to enable shared decision making and taking of
financial risks. Partners must also ensure that
other stakeholders, such as financial investors,
as well as the public are dedicated to and trust
the project and the partnership.
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 Review questions
1. TIA invited proposals from consultants for a
contract of designing proposed multi-storey
administrative block. Basing on public
procurement selection and Employment of
consultants Regulation of 2013,PE shall
maintain a record of the selection
proceedings. State and briefly explain the
minimum information to be maintained
during selection proceedings.
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2. What are the key stages in developing
specifications
3. Clearly explain the challenges an MDA/PE
may face in compiling appropriate
specification
4. Critically appraise the applicability of forms
of Public Private Partnership
5. a)Itemize the set of bidding documents used
in public procurement
b)Briefly describe the contents of each of
the documents itemized in (a) above
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6. Discuss on the various procurement
methods as applied in public procurement in
Tanzania
7. Identify the structure and responsibilities of
the organizing framework used in the
procurement for local governments in
Tanzania vide the Local Government
Authorities Tender Board Regulation of 2014
(GN. 330).
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8. What is procurement plan in the context of
public procurement and explain why it is an
important aspect to any public organisation.
9. Outline steps involved in procurement
planning
10. Identify challenges faced by PEs in
implementing a procurement plan in
Tanzania
11. Explain the situation which may warrant
restrictive tendering in procuring goods and
services in public organisation
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12. According to PPA No 7 of 2011 and PPR of
2013 there are four principal types of
selection procedures of selecting consultants
according to the characteristics of the
service required. Briefly mention and discuss
them
13. The bidder whose tender is lowest
sometimes may be invited to negotiate for a
contract with employer before award
decision is reached.Discuss the areas which
negotiation shall focus.
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14. Blue Builders Ltd (BBL) are tendering for
construction of a sports complex in Arusha
City. At a tender opening, BBL turns out to
be the lowest, in fact their tenders is 30%
below the second lowest tender.During
evaluation it is found that BBL has quoted
very low for the roof of the sports complex
which is a major item. The clients informs
BBL of the problem and BBL noting the error
offers to withdraw from tender.
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 After two weeks BBL receives a letter of
acceptance from the client for the job. BBL
refuses to accept the job after which the client
decides to withhold the BBL tender security, BBL
takes client to the court.
a) As advocate for this client give your
defense
b) What was the fear of client about very
low quote on the roof
15.Post qualification is an important
aspect in tendering process. Discuss
the importance and the focal point
for qualification in tendering process.
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16. a) What do you understand by ‘’Instructions
to tenders”
b) There are instructions to tenderers that
would normally draw attention when
preparing tender document, Briefly discuss
them.
17. Define specification, appraise functions of
specification
18. Elucidate tips of preparing specification
19. What are the main stages of preparing
specification
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20. Explain methods of specifying requirements
and appraise merits and demerits of each
method
21. Deduce circumstances under which brand
description is desirable
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PUBLIC PROCUREMENT

BAC III FT & EV

consultancy service/and disposal of public

goods, works and non-consultancy

works and non-consultancy services

supply chain comes in to facilitate

a private sector party to a public institution

 Benefits of efficient public procurement

the national wealth through acquisitions and

2. Fair treatment cont..

on the basis of their

methods, procedures and area of

proceedings like Tender documents, etc

carried out by competition unless

duties according the laid down policies,

felt dissatisfied by the way

procurement is big, over 80% of

public sector procurement

 Evolution of public procurement in

i. Procurement transactional costs still

involved as regulators of public

xiv. Providing feedback on the

i. A/O may request for any

called Procurement and Supplies

undertaken if not initiated by user

after getting an approval by responsible

committee shall be recommended by

responsible for approving budget of

procurement Audit or investigations

procurement in one way or another as follows:

i. Ensure the application of fair, competitive,

iv. Build, in collaboration with Public Procurement

Sect 5(1) There shall be established, under the

process the procurement method

Approval by Tender Board

Bid Invitation Date

Bid Evaluation Report

Contract Amount in Tshs. 000

Date Contract Award

Date Contract Signature

Approval by Tender Board

Mwita Bid Closing-Opening

Bid Evaluation Report

Contract Amount in Tshs. 000

Date Contract Award

Date Contract Signature

participate in tender proceedings.

bidder is identified,PMU recommends

acceptance forms a contract between

of acceptance are sent to:-

 Tendering is the procurement process where,

6. Fees if any, to be charged by the for the

amend the information on ITTs sections

1. Name of Procuring Entity

minimum the following information:-

explain in detail the requirement of

of necessary details sufficient

Memory 512 MB DDR

Brand Branded Computers