18uesday submit procurement information on...

ISSN: 1821 - 6021 Vol VII - No. 7 February 18, 2014 Free with Daily News every Tuesday

Tanzania

Procurement Journal

INSI

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Tanzania

Procurement Journal

Tanzania

Procurement Journal

www.ppra.go.tzNOT FOR SALE

Procurement JournalProcurement Journal

Procurement opportunities

page ... 3

Procurement news

page ... 2

Public notice

page ... 8

Procurement Journal

PPA 2011 requires the annual procurement plan to be approved by the

budget approving authority.Did you know ?

A maximum value per contract allowed for individualconsultancy services.

150,000,000

Submit procurement information on time

The Public Procurement Appeals

Authority (PPAA) has dismissed

the appeal against Kahama

Town Council, which was lodged by

Palemo Beta Bidding JV in respect of

tender for upgrading of Kahama town

roads to bitumen standard, TPJ has

learnt.

According to the facts of the case,

whose copy of the proceedings was

seen by TPJ, Palemo Beta Bidding

claimed that the tender in question was

not widely advertised as the law

requires hence it lacked transparency

and the need to maximize competition

was not achieved. The company further

claimed that the award of the tender

was made to a foreign firm which was

not supposed to tender, since the value

of the tender was below the minimum

threshold of TZS 10 billion. The com-

pany was of the view that the tender

only suited for local contractors since

the government had changed the mar-

gin of exclusive preference for local

contractors from TZS 1 billion to 10

billion. The company also alleged that

the award of the tender was marred by

procedural irregularities, favoritism

and political interference.

Having reviewed the documents and

submission by the parties, PPAA con-

sidered five issues namely; Whether it

was justifiable for a foreign firm to par-

ticipate in the tender; Whether the ten-

dering procedures for the tender were

adhered to by Kahama Town Council;

Whether the disqualification of Palemo

Beta Bidding was proper at law;

Whether the award of the tender to the

successful tenderer was proper at law

and what reliefs, if any, were parties

entitled to.

In determining the first issue, PPAA

observed that Palemo Beta Bidding

relied upon the letter by Contractors

Registration Board (CRB) addressed to

them showing that a margin for exclu-

sive preference had been changed from

one billion to 10 billion shillings. The

PPAA dismisses appeal against Kahama Town Council

The Public Procurement Act,

2011 and the Public Procure-

ment Regulations which

came into operation recently have

introduced a requirement for timely

submission of procurement related

information, TPJ has learnt.

Speaking to this journal on the

changes brought about by the law,

PPRA’s Acting Chief Executive

Officer, Dr. Laurent Shirima, said

that PPA, 2011 requires procuring

entities wishing to commence com-

petitive tendering proceedings to

first publish a tender notice in the

Tanzania Procurement Journal,

PPRA’s Tender Portal, procuring

entity’s website and/or notice board

and at least in one local newspaper

and if it is an international tendering

proceeding, in one international

newspaper.

Dr. Shirima contrasted this with the

previous law, which required

procuring entities to publish tender

notices in the Journal and at least

twice in one or more newspapers of

national circulation and in the case

of international tendering in foreign

or international publications or pro-

fessional or trade journals.

Dr. Shirima said that the new

requirements mean lower advertise-

ment costs for procuring entities

since they will now be advertising

tender notices only once in one

local or international newspaper.

However, he further pointed out that

the requirements apply both in pre-

qualification as well as in competi-

tive tendering proceedings.

The Acting Chief Executive Officer

took the opportunity to remind

procuring entities that they should

ensure that general procurement

notices and contracts award infor-

mation are submitted to PPRA for

publication in the Journal and

PPRA’s Tender portal as well as in

the procuring entity’s website and

/or its notice board. He said that

publishing all tender notices in the

Journal makes it a one-stop center

where entities and prospective bid-

ders easily access information on

procurement opportunities.

Lastly, he urged all procuring enti-

ties to comply with requirements on

publication and disclosure of pro-

curement information and ensure

that annual procurement plans, gen-

eral procurement notices, tender

notices and contracts award infor-

mation are timely submitted to

PPRA for publication.

Continues on page 4

Dr. Laurent Shirima, PPRA’s acting Chief Executive Officer.

Regulations

2013, made under

Public Procurement

Act 2011, are now

available for down-

load on PPRA’s

website

www.ppra.go.tz

22 Tanzania Procurement JournalTuesday, Sept 29, 20092 Tanzania Procurement Journal Tuesday December 28, 2010Tanzania Procurement Journal Tuesday February 18, 2014

PROCUREMENT NEWS

Sheria ya ununuzi wa umma ya mwaka 2011 inataka mpango wa ununuzi wa

mwaka kuidhinishwa na mamlaka inayoidhinisha bajeti ya mwaka ya taasisi

husika.Je wajua?

Kiwango cha juu cha thamani ya fedha kinachoruhusiwa kwa kila mkataba wa mtaalammshauri.

150,000,000

1.0 Background

In February 2012, the Public Procurement Regulatory

Authority (PPRA) carried out Value For Money (VFM)

Audit to the construction projects of the Government

Employees Provident Fund (GEPF) House and the

Registration Insolvency Trusteeship Agency(RITA)

Tower pursuant to its mandate under Sub-sections 7(1)

of Public Procurement Act, 2004 (PPA 2004). The

objective of the audit was to determine whether the

projects have been implemented in accordance with the

stipulated contract terms and conditions and whether

“Value for Money” has been achieved in spending pub-

lic funds for the projects.

GEPF House project is on Plot No.37 along new Bag-

amoyo Road and RITA Tower on Plot No.727/11 along

Makunganya and Simu Streets in Dar es Salaam.The

GEPF project is a 12 storey building with a total gross

floor area of 13,334 m2, offering office spaces, confer-

ence hall, meeting rooms, shopping mall and car park-

ing.

RITA Tower project is a joint venture development

between RITA and NSSF. The project is a 29 storey

building comprising office accommodation, office

spaces for letting, shopping malls, conference halls,

meeting rooms, car parking facilities and associated

external works.

2.0 Projects costs

GEPF engaged M/s Group Six International Ltd as the

project main contractor at a revised contract amount of

TZS 14,973,622,845.00(VAT inclusive) and M/s Ardhi

Institute as the project Managers for TZS 27,002,200

(VAT exclusive) for concept design and TZS

614,000,000 (VAT exclusive) for design and supervi-

sion.

RITA engaged M/s China Railway Jiangchang Engi-

neering Co. (T) Ltd as the project main contractor for

TZS 35,862,550,578.57 (VAT inclusive) and M/s

Design Concern – dc (Project Architect), in association

with M/s UNDI Consulting Group Ltd (Project Engi-

neers) and KAMU Cost Engineering Centre (Project

Quantity Surveyors) as the project consultants for TZS

2.5 billion.

3.0 Audit Findings

3.1 The audit findings for GEPF project revealed dubi-

ous payments to the Contractor (M/s Group Six

International Ltd) amounting to about TZS 7.37

billion arising out of un-contractual payments,

which included repetition of work items, premature

payment of preliminary items, not adjusting Import

Duty and VAT exemptions, unjustified variation

orders, overpayments due to wrong assumptions,

and paying for non-existing works.

3.2 The audit findings for RITA project revealed dubi-

ous payments to the Contractor (M/s China Rail-

way Jiangchang Engineering Co. (T) Ltd) amount-

ing to about TZS 2,31 billion arising out of un-con-

tractual payments, repetition of work items, prema-

ture payment of preliminary items, not adjusting

Import Duty and VAT exemptions, unjustified vari-

ation orders, overpayments due to wrong assump-

tions, and paying for non-existing works.

3.3 Following GEPF and RITA disagreements to some

audit findings, PPRA engaged another Consultant

to verify the audit findings. The Verifier confirmed

the audit findings and established additional dubi-

ous payments of TZS 1.6 billion in GEPF project

which made total dubious payments of TZS 9.01

billion. Out of the total dubious payments detected

by the Auditor and the Verifier, GEPF accepted

only TZS 3.23 billion which is equivalent to 36%

of the total payments.

3.4 As for RITA project, the Consultant (Verifier) con-

firmed the audit findings and revealed new dubious

payments amounting TZS 5.36 billion making a

total dubious payments of TZS 7.67 billion. How-

ever, RITA agreed to only 49% of the dubious pay-

ments established by the Verifier.

4.0 PPRA Board Decision

In view of the verification findings and disagreements

to some of the audit findings by GEPF and RITA, the

Technical Committee of the Board of Directors of

PPRA at its 8th Extra Ordinary meeting held on 21st

October, 2013 directed the PPRA Management to form

a team of professionals to assess and provide its profes-

sional opinion on the issues which were raised by the

auditor and the verifier, including and any other anom-

alies that may be observed in the course of the assess-

ment. Members of the professional team were drawn

from the PPRA’s individual consultants, National Con-

struction Council, Engineers Registration Board and

Architects and Quantity Surveyors Registration Board

(AQRB).

5.0 Findings by the Professional

Team

GEPF Project5.1 The Team confirmed dubious payments of TZS

8.43 billion equivalent to about 93.5% of the total

dubious payments detected by the Auditor and Ver-

ifier which are associated to un-contractual pay-

ments and or overpayments. The un-contractual

payments include the Import Duty and VAT for

extra reinforcement bars and bamboo (marine)

boards imported but not used in the prject.

5.2 The Import Duty and VAT for extra reinforcement

bars were TZS 208,152,080.47 and TZS

412,141,119.33, respectively. As for extra bamboo

marine boards, the Import Duty was TZS

119,822,647.30 and VAT TZS 107, 097,783.80. The

total taxes for both extra reinforcement bars and

marine boards were TZS 847 million.

5.3 The Team also observed some weaknesses in the

procurement process of both the contractor and

consultant and contract execution. The weaknesses

include:

a) Changing of the rate of advance payment prior to

contract award from 15% to 30% of the contract

price. Also changing of the requirement for

advance payment from bank guarantee to bond

contrary to section 43(b) of PPA 2004 which

requires procuring entities to strive to achieve the

highest standards of equity, taking into account

fairness of treatment to all parties. Advanced pay-

Public notice on Value for Money Audit findingsfor GEPF house and RITA tower projects

Continues on page 5

Tuesday December 21, 2010 Tanzania Procurement Journal 3

GOODSProcuring entity: Ministry ofCommunication, Science and TechnologyTender No: ME/006/RCIP/2013-14/HQ/G/04Tender Name: Supply Installation of VideoConferencing System for Zanzibar RegionalAdministration Offices and Zanzibar StateHouse under the Tanzania CommunicationInfrastructure and E - Government ProjectSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Ministry of Communication, Science andTechnology, P.O. Box 2645, Dar es SalaamDeadline: 4th March 2014, 10:00 hours

Procuring entity: National HousingCorporationTender No: PA/066/2013-2014/HQ/G/20Tender Name: Supply of Fabrication ofBillboards Around the Design and BuildProjects in Ushindi Place ~ Plot Number36/37 Along Ally Hassan Mwinyi Plot Number 300 ~ Victoria ~ NewBagamoyo Road, Morocco Square ~ PlotNumber 1,2,3,& 44 ~ Morocco/Mwai KibakiRoad, Source of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: Secretary, Tender Board,Secretary, NHC Tender Board, P.O. Box2977, Dar es SalaamDeadline: 7th March 2014, 10:00 hours

Procuring entity: Tanzania Electric SupplyCompanyTender No: PA/001/13/HQ/G/09Tender Name: Supply of Drinking Waterfor Head Office StaffSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs100,000Contact Address: The Secretary TB,Tanzania Electric Supply Company, P.O.Box 9024, Dar es SalaamDeadline: 14th March 2014, 14:30 hours

Procuring entity: Tanzania Electric SupplyCompanyTender No: PA/001/13/HQ/G/149Tender Name: Supply of Local AreaNetwork Materials for Construction andRehabilitation of LAN in New TANESCODistrict Office Hydro and Thermal PowerStationSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Tanzania Electric Supply Company, P.O.Box 9024, Dar es SalaamDeadline: 14th March 2014, 14:30 hours

Procuring entity: Ministry of Energy andMineralsTender No: ME/008/2013-2014/SMMRP/G/57Tender Name: Supply of Lot 1: Field Survey EquipmentLot 2: Field Protective GearsSource of Fund: International DevelopmentAssociationEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 150,000Contact Address: The Secretary TB,Ministry of Energy and Minerals, P.O. Box2000, Dar es Salaam

Deadline: 06th March 2014, 10:00 hours

Procuring entity: Tanzania Ports AuthorityTender No: AE/016/2013-14/CTB/G/59Tender Name: Supply and Commissioningof one Unit of 30Ton Bollard Pull Towingunder Supplier’s or Export Credit FinancingSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Tanzania Ports Authority, P.O. Box 9184,Dar as SalaamDeadline: 13th March 2014, 10:00 hours

Procuring entity: Tanzania Ports AuthorityTender No: AE/016/2013-14/CTB/G/58Tender Name: Supply and Commissioningof Two Units of 55Ton Bollard Berthing TugUnder Suppliers Credit/Export FinancingSource of Fund: Government of TanzaniaEligible Firms: National and InternationalMethod of Procurement: ICSPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Tanzania Ports Authority, P.O. Box 9184,Dar as SalaamDeadline: 13th March 2014, 10:00 hours

Procuring entity: Bank of TanzaniaTender No: OD/447/01Tender Name: Supply of Research BuildingEquipment for Lot 1: Basic Tools and Hardware for

Production CenterLot 2: Material for Interlocking MachinesLot 3: Materials for Tile Vibrating MachinesLot 4: Materials for Tile Molds, Plastic andTimber Ridge CoverSource of Fund: Government of Tanzaniaand Development PartnersEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB, BankOf Tanzania, P.O. Box 2939, Dar es SalaamDeadline: 10th March 2014, 11:00 hours

Procuring entity: Bank of TanzaniaTender No: OD/290/446/01Tender Name: Procurement of Lot 1: Data Processing and Back-Up

EquipmentLot 2: Design and Data Processing SoftwareSource of Fund: Government of Tanzaniaand Development PartnersEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs.100,000Contact Address: The Secretary TB, BankOf Tanzania, P.O. Box 2939, Dar es SalaamDeadline: 10th March 2014, 11:00 hours

WORKSProcuring entity: Njombe Water Supply andSanitation AuthorityTender No: AE-073/NJ/WKS/02-2013/14Tender Name: Works for Construction ofNyenga Water Supply Project Phase 2Source of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 150,000Contact Address: The Secretary TB, NjombeWater Supply and Sanitation Authority, P.O.Box 11491, Dar es SalaamDeadline: 12th March 2014, 10:00 hours

Procuring entity: Tanzania Ports AuthorityTender No: AE/016/2013-14/DSM/W/03Tender Name: Design and Construction of

Jetty at PanganiSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Tanzania Ports Authority, P.O. Box 9184,Dar as SalaamDeadline: 06th March 2014, 10:00 hours

Procuring entity: Singida District CouncilTender No: LGA/116/2013-14/MIVARF/SDC/W/31Tender Name: Works for Construction ofMtinko Warehouse in Singida DistrictSource of Fund: Africa Development BankEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs100,000Contact Address: The Secretary TB, SingidaDistrict Council, P.O. Box 27, SingidaDeadline: 11th March 2014, 10:00 hours

Procuring entity: Kigoma Ujiji MunicipalCouncilTender No: LGA/042/W/2013-14//17Tender Name: Works for Constriction of Lot 2: Completion of Balance of Works for

Rehabilitation Airport - Mwasenga -Gungu, Job Lusinde and Mji MwemaRoads

Source of Fund: international DevelopmentAssociationEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 200,000Contact Address: The Secretary TB,Kigoma Ujiji Municipal Council, P.O. Box44, KigomaDeadline: 15th March 2014, 10:00 hours

Procuring entity: Busokelo District CouncilTender No: LGA/157/BDC/W/2013-14/04Tender Name: Works for Construction of Lot 3: Administration Block Lot 12: Ward Resource CenterSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Busokelo District Council, P.O. Box 2,TukuyuDeadline: 11th March 2014, 10:00 hours

Procuring entity: Tanzania Electric SupplyCompanyTender No: PA/001/13/HQ/W/077Tender Name: Works for Supply,Installation and Commissioning of chillerPlant for New Pangani Falls HydropowerStationSource of Fund: Government of TanzaniaEligible Firms: National and InternationalMethod of Procurement: NCSPrice of Bid Document: USD. 100Contact Address: The Secretary TB,Tanzania Electric Supply Company, P.O.Box 9024, Dar es SalaamDeadline: 14th March 2014, 14:30 hours

Procuring entity: Tanzania Electric SupplyCompanyTender No: PA/001/13/HQ/G/150Tender Name: Supply for Various PowerHouse and Tools for Mtera HydropowerPlantSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Tanzania Electric Supply Company, P.O.Box 9024, Dar es Salaam

Deadline: 7th March 2014, 14:30 hours

Procuring entity: Tanzania Electric SupplyCompanyTender No: PA/001/13/HQ/G/151Tender Name: Supply of Labyrinth Sealfor New Pangani FallsSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Tanzania Electric Supply Company, P.O.Box 9024, Dar es SalaamDeadline: 7th March 2014, 14:30 hours

Procuring entity: Rugwe District CouncilTender No: LGA/071/2013-14/HQ/W/03,20Tender Name: Works for Tender 03: Construction of Piped Systemand Civil Works for Lukata Village. Tender 20: Construction of Piped Systemand Civil Works for Lot 1:Simike Village Lot 2: Ilaolo VillageLot 3: Lugombon VillageSource of Fund: Development Partners andGovernment of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Rungwe District Council, P.O. Box 148,TukuyuDeadline: 12th March 2014, 10:00 hours

Procuring entity: Tanzania Electric SupplyCompanyTender No: PA/001/13/HQ/W/076Tender Name: Supply, Installation andCommissioning of an Integrated SecurityManagement System for TANESCO HQ,National Grid Control Center and KurasiniCentral StoreSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB,Tanzania Electric Supply Company, P.O.Box 9024, Dar es SalaamDeadline: 28th March 2014, 14:30 hours

Procuring entity: Nsimbo District CouncilTender No: LGA/161/2013-14/W/03 Lot 1-8Tender Name: Works for Construction ofTwo Teachers Houses and Construction ofone Staff HousesSource of Fund: Government of TanzaniaEligible Firms: National and InternationalMethod of Procurement: ICSPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB, NsimboDistrict Council, P.O. Box 688, NsimboKataviDeadline: 17th March 2014, 10:00 hours

Procuring entity: Ministry of Energy andMineralsTender No: ME/008/2013-2014/SMMRP/W/04Tender Name: Works for Rehabilitation ofthe Office Building at the Geological Surveyof Tanzania (GST) in DodomaSource of Fund: International DevelopmentAssociationEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 200,000Contact Address: The Secretary TB,Ministry of Energy and Minerals, P.O. Box2000, Dar es SalaamDeadline: 13th March 2014, 10:00 hours

This section provides summaries of open tender opportunities in Procuring Entities (PEs). More details of the tenders may be found on PPRA web-

site www.ppra.go.tz. Prospective bidders are required to confirm the information provided hereunder or seek further details from respective PEs.

PROCUREMENT OPPORTUNITIES

Tuesday December 28, 2010 Tanzania Procurement Journal 3Tuesday February 18, 2014 Tanzania Procurement Journal 3

Continues on page 4


PROCUREMENT OPPORTUNITIES

Procuring entity: Ministry of Energy andMineralsTender No: ME/008/2013-2014/SMMRP/W/09Tender Name: Works for ProposedRehabilitation for Canteen, Library andAdministration Block t Mineral ResourcesInstitute (MRI), DodomaSource of Fund: International DevelopmentAssociationEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 200,000Contact Address: The Secretary TB, Ministryof Energy and Minerals, P.O. Box 2000, Dares SalaamDeadline: 13th March 2014, 10:00 hours

Procuring entity: Tanzania National RoadsAgencyTender No: AE/001/2013-14/RV/W/51Tender Name: Works for PeriodicMaintenance Work along Songea - Peramihojctn Road SectionSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs100,000Contact Address: The Secretary TB,Tanzania National Roads Agency, P.O. Box31, SongeaDeadline: 21st March 2014, 10:00 hours

Procuring entity: Ngorongoro ConservationArea AuthorityTender No: AE/055/2013-14/HQ/W/12Tender Name: Survey for Deep Water WellDrilling and Installation of Water Pump atLoduare Gate at NCAASource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs 50,000Contact Address: The Secretary TB,Ngorongoro Conservation Area Authority,P.O. Box 1, Ngorongoro Crater,Deadline: 27th February 2014, 11:00 hours

CONSULTANCYProcuring entity: Ministry of Health andSocial WelfareTender No: ME/007/2013-14/HQ/C/19Tender Name: Consultancy Services forDesigning, Preparation for BiddingDocument and Construction Supervision ofthe National Public Health Laboratory in Dares Salaam

Source of Fund: World BankEligible Firms: National and InternationalMethod of Procurement: NCSPrice of Bid Document: N/AContact Address: The Secretary TB,Ministry of Health and Social Welfare, P.O.Box 9083, Dar es SalaamDeadline: 26th February 2014, 11:00 hours

Procuring entity: Public ProcurementRegulatory AuthorityTender No: AE/018/2013-14/HQ/C/04Tender Name: Provision of IndividualConsultancy Services for Implementation ofa System for Checking and MonitoringProcurement in TanzaniaSource of Fund: Government of TanzaniaEligible Firms: National and InternationalMethod of Procurement: NCSPrice of Bid Document: N/AContact Address: The Secretary TB, PublicProcurement Regulatory Authority , P.O. Box49,Dar es SalaamDeadline: 26th February 2014, 10:00 hours

Procuring entity: Nsimbo District CouncilTender No: LGA/161/2013-14/C/01Tender Name: Expression of Interest forArchitectural Design, Preparation of WorkingDrawings and Bid Documents for NsimboDistrict Council Head QuarterAdministration Office Block - Single StoreyBlockSource of Fund: Government of TanzaniaEligible Firms: National and InternationalMethod of Procurement: NCSPrice of Bid Document: N/AContact Address: The Secretary TB, NsimboDistrict Council, P.O. Box 688,NsimboKataviDeadline: 17th March 2014, 10:00 hours

NON - CONSULTANCYProcuring entity: Tanzania AirportsAuthorityTender No: AE/027/2013-14/HQ/JINA/N/50Tender Name: Provision of GroundHandling Services at Julius NyerereInternational Airport, Dar es SalaamSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 150,000Contact Address: The Secretary TB,Tanzania Airports Authority, P.O. Box 18000,Dar es Salaam.Deadline: 28th March 2014, 10:00 hours

Procuring entity: Surface and MarineTransport Regulatory AuthorityTender No: AE/025/2013-14/HQ/NC/14Tender Name: Provision of Survey Servicesfor Registered Vessels in the Indian Ocean,Lake Victoria, Lake Tanganyika and LakeNyasaSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 100,000Contact Address: The Secretary TB, Surfaceand Marine Transport Regulatory Authority,P.O. Box 3093, Dar es SalaamDeadline: 12th March 2014, 14:00 hours

Procuring entity: Iringa Municipal CouncilTender No: LGA/025/2013-14/NC/1 LOT 2Tender Name: Ukusanyaji wa Ushuru waStendi na Maegesho ya MagariSource of Fund: Government of TanzaniaEligible Firms: NationalMethod of Procurement: NCBPrice of Bid Document: Tshs. 50,000Contact Address: Secretary TB, IringaMunicipal Council, P.O. Box 162, IringaDeadline: 13th March 2014, 10:30 hours

Continued from page 3

Editorial Board of TanzaniaProcurement Journal

Dr. Laurent M. Shirima... Chairman

Mr. Christopher E. Mwakibinga...Vice Chairman

Mrs. Bertha H. Soka ... Member

Mr. Awadhi J. Suluo ... Member

Eng. Eva M. Lupembe ... Member

Eng. Nestor H. Ilahuka ... Editor

TPJ is published by PPRA every Tuesday

Contacts:

Public Procurement Regulatory Authority

(PPRA), PPF Tower, 8th Floor,

PO Box 49, Dar es saalam.

Tanzania

Tel: +255 22 2121236;

Fax: +255 22 2121238;

email: [email protected];

Website: www.ppra.go.tz

letter was responding to their request for

clarification on the eligibility of a foreign

contractor to participate in the tender under

appeal. However, in reviewing CRB’s letter

PPAA noted that the exclusive preference

would have been applicable only if the proj-

ect was fully funded by the Government of

the United Republic of Tanzania. PPAA

noted from the documents submitted that

there was a memorandum of understanding

between Kahama Town Council and African

Barrick Gold (ABG), the later to fund the

project for almost 90% hence the tender was

co-financed by the Government of the Unit-

ed Republic of Tanzania and ABG. PPAA

therefore concluded that participation of a

foreign firm in the tender in question was

justified.

In determining the second issue, PPAA con-

sidered five sub-issues as guidance; whether

it was justified for the tender not to be wide-

ly advertised. On this sub-issue, PPAA con-

sidered the view that the law allows procur-

ing entity to choose a procurement method

depending on the circumstances, the Coun-

cil’s decision to invite four tenderers includ-

ing Palemo Beta Bidding to participate in

this tender was justified.

Another sub-issue was whether there was

unequal treatment of tenderers. Accordingly,

PPAA conclusion on this sub-issue was that,

there was no equal treatment of tenderers in

the tender process. On whether Kahama

Town Council was under an obligation to

take necessary actions on CRB’s letter,

PPAA observed that the council was not

under obligation to take action based on

CRB’s letter since Palemo Beta Bidding did

not seek for clarification from the Council

regarding the participation of a foreign firm.

PPAA further observed that the award of the

tender was not influenced by favoritism or

political interference because when Palemo

Beta Bidding asked to prove the same he

failed to substantiate their assertions.

On the third issue, PPAA concluded that the

disqualification of Palemo Beta Bidding

was proper at law since they failed to com-

ply with instructions provided in the tender

document, which required bidders to indi-

cate their experience in works of similar

nature for the last three years.

Regarding the fourth issue, PPAA took cog-

nizance of the findings that the successful

tenderer had met all the criteria provided in

the tender document. PPAA therefore con-

cluded that the award of the tender to the

successful tenderer was proper at law.

On the reliefs the parties were entitled to,

PPAA dismissed the appeal and ordered

each party to bear its own costs.

PPAA dismisses appeal againstKahama Town CouncilContinued from page 1

Tuesday December 21, 2010 Tanzania Procurement Journal 5

PROCUREMENT NEWS

Tuesday December 28, 2010 Tanzania Procurement Journal 5Tuesday February 18, 2014 Tanzania Procurement Journal 5

ment can only be secured through a bank guar-

antee and not otherwise

b) Procurement of the consultant through the single

source method which contravened Regulation

35(2) and Second Schedule of G.N. No. 98 of

2005 as it exceeded its limit of application.

c) Delay in project completion by the contractor for

127 days (from 30th June 2013 to 4th November

2013). This delay was supposed to attract liqui-

dated damages of TZS 1.9 billion based on the

revised contract sum of TZS 14,973,622,845.00.

Since the Special Conditions of Contract limits

the maximum amount of liquidated damages to

10% of the contract value, The Contractor

should have been charged liquidated damages

amounting to TZS to almost 1.5 billion. This

may be considered as a loss occasioned by poor

contract administration.

RITA Project

5.2 The Team confirmed dubious payments of TZS

5.06 associated with un-contractual payments or

overpayments due to overstated quantities in the

Bills of Quantities (BOQ), double entries in the

BOQ, use of un-contractual rates, non adjustment

of Import Duty and VAT exemptions, unjustified

variation orders and payment for non-existing

works.

5.3 In addition, the Team established other additional

dubious/un-contractual payments of TZS 10.67

million to the Contractor. Furthermore, TZS 22.9

million were overpaid on preliminaries, hence

making an additional dubious payment totaling

TZS 33.6 million.

5.4 In procurement process and contract execution,

the Team observed the following weaknesses:

a) Participation of the Head of Procurement Man-

agement Unit in evaluation of technical and

financial proposals contrary to Sections 37 (1) &

(2) and Section 38 of the PPA 2004 which

requires independence of functions between an

accounting officer, procurement management

unit, user department and evaluation committee;

b)The contract was signed after the bid validity

period had expired in violation of Section 64 of

PPA 2004;

c)An advanced payment guarantee to the Contrac-

tor of TZS 7.2 billion which was valid from 1st

January 2011 to 1st July 2013 had not been fully

recovered by the expiry date of the advance pay-

ment bond.

d)PPRA will conduct quality review of the inputs

of the Dar es Salaam Institute of Technology due

to its professional negligence observed in these

projects.

e)PPRA will take appropriate actions against any

procuring entity which floats tenders while

designs are incomplete.

6.0 PPRA Board Decisions on the

Professional Team Findings.

The Team presented its assessment report to the Tech-

nical Committee of PPRA Board of Directors on 7th

February, 2014 during the 13th ordinary meeting. The

Technical Committee reviewed and discussed the

assessment report and issued instructions to both enti-

ties as follows:

1) GEPF and RITA Accounting Officers have been

instructed to conduct investigation on the observed

audit queries in order to identify staff of their enti-

ties who were involved in one way or the other in

the observed audit queries and take appropriate dis-

ciplinary measures against them.

2) GEPF and RITA have been instructed, through

appropriate contractual procedures, to recover

immediately in the subsequent payments to the con-

tractors or in the Final Accounts all un-contractual

payments and overpayments reported by the Audi-

tor and verified by the Verifier and which have been

confirmed by the Professional Team.

3) GEPF has been instructed to deduct from the Con-

tractor’s payment, TZS 1,497,362,284.50, as liqui-

dated damages for delaying the project through

appropriate contractual procedures on deduction of

liquidated damages.

4) GEPF has been instructed to refund the Tanzania

Revenue Authority (TRA) the money deducted

from the Contractor’s payments as Import Duty &

VAT for extra reinforcement and bamboo boards

which received TRA’s Import Duty & VAT exemp-

tion. The Verification Team estimated the total

amount to be TZS 847,213,630.90. i.e TZS

620,293,199.80 for extra reinforcement and TZS

226,920,431.10 for extra bamboo (marine) boards.

5) GEPF has been instructed to make proper account-

ing of waste for the excess reinforcement bars and

bamboo marine boards.

6) GEPF has been instructed to recover from the Con-

tractor’s outstanding payments the cost of TZS

47,232,500.00 due to the omission of one meter of

raft foundation.

7) The Project Manager, M/s Ardhi Institute has been

instructed to show cause why it should not be

blacklisted by PPRA from participating in public

procurement for advising GEPF to make payments

to the contractor which were not contractual as

revealed in the Professional Team report.

8) In order to enable PPRA to monitor and ensure that

the adjusted dubious payments are maintained to

the end of the project, GEPF and RITA have been

instructed from now onwards to submit Interim

Payment Certificates (including all details) and the

final accounts at the end of the projects.

9) GEPF has been instructed to charge the Contractor

interest on the amount paid as a loan for importa-

tion of reinforcement bars for a total of 313 days

(from 8th September 2011 when payments were

made to 17th July 2012 when payments were recov-

ered).

10) GEPF and RITA have been instructed to revisit all

claims and variations to ensure that the quantities

are correct and the price offered is reasonable (com-

petitive).

11) PPRA has recommended to AQRB to take discipli-

nary measures against the project consultants for

both GEPF and RITA as a competent body to pro-

mote and enforce professional conduct, ethics and

integrity of architects, quantity surveyors and firms

practicing or operating in Tanzania.

12) GEPF and RITA have been instructed to submit to

PPRA implementation status of the above instruc-

tions within a period of two months from the date

of communication of the Technical Committee

decisions.

13) RITA has been instructed to recover from the Con-

tractor’s payments the additional dubious payment

of TZS 33.56 million which was revealed by the

Professional Team.

14) The project consultants, M/s Design Concern – dc

(Project Architect), in association with M/s UNDI

Consulting Group Ltd (Project Engineers) and

KAMU Cost Engineering Centre (Project Quantity

Surveyors) have been instructed to show cause why

they should not be blacklisted by PPRA from par-

ticipating in public procurement for advising RITA

to make payments to the contractor which were not

contractual as revealed by the Professional Team.

15) PPRA will conduct quality review of the inputs of

the Dar es Salaam Institute of Technology in these

projects as some negligence has been observed by

the Team during the assessment.

16) PPRA will take appropriate actions to procuring

entities which call tenders for big projects such as

these ones without ensuring that all designs have

been completed.

In view of the observed audit findings for the two

projects and the magnitude of the established dubious

payments, PPRA is planning to conduct special audits

to similar projects that are being implemented else-

where in the country.

Issued by:

Dr. L. M. Shirima

ACTING CHIEF EXECUTIVE OFFICER


Public notice on Value for Money Audit findingsfor GEPF house and RITA tower projects


PROCUREMENT NEWS

By Dr. Ramadhan S. Mlinga

PART 3

Preamble

This is the third part of an article titled

“Basic Elements of Public Procurement Act

2011 and Public Procurement Regulations

2013” which started appearing in the Tanza-

nia Procurement Journal Vol VII – NO. 5 of

4th February 2014.

In the second part which appeared in the Tan-

zania Procurement Journal Vol VII- No. 6 of

11th February 2013, the Author discussed

Part I of PPR 2013 – Preliminary provisions

and Part II of PPR 2013 – General Provi-

sions with regard to Public Procurement

Principles and Exclusive Preference to Local

Persons or Firms.

In this part the Author continues with discus-

sion of Part II of PPR 2013 with regard to the

following: Delegation of procurement

authority and handling of disagreements;

approval authority for procurement and dis-

posal by tender; procedure for handling

emergency procurement; procurement and

disposal planning and financial controls; pro-

hibitions; and monitoring by PPRA.

Note that the numbering of Tables, Figures

and Boxes continues from the previous arti-

cle since it is the intention of the author to

have this article treated as one document.

This third part is therefore a continuation of

the previous article which appeared in Vol.

VII- No. 6 of Tanzania Procurement Journal

of 11th February 2013. If you have not read

the previous part you can obtain your copy

from PPRA’s website www.ppra.go.tz.

As was mentioned earlier, in these articles

heavy reference shall be made to various sec-

tion of PPA 2011 and PPR 2013 and there-

fore the reader of these articles is expected to

have a copy of the Act and Regulations so

that he/she may make references while going

through the articles to get a clear understand-

ing of the concept being discussed. The

author has decided to designate section of the

Act as PPA-S , for example Section 1 of PPA

2011 will be designated as PPA-S1. Regula-

tions will designated be as PPR-R, for exam-

ple Regulation 1 of PPR 2013 will be desig-

nated as PPR-R1.

DELEGATION OF PROCUREMENT

AUTHORITY AND HANDLING OF DIS-

AGREEMENTS – PART II(c).

PPA –S42 allows an accounting officer to

delegate procurement function of a PE to a

sub-division of that entity, another PE or to a

third part procurement agency. Further PPA

S43 provides that where a PE lacks technical

capacity is given a choice of using either the

Government Procurement Services Agency

or third party procurement services.

Provisions of PPR 2013 for delegation of

procurement authority shown in Figure 3 as

well handling disagreements in the PEs have

almost remained the same as was provided

for in Part III of GN. No. 97 of 2005 and Part

IX of GN. No. 98 of 2005 save for the fol-

lowing:

• While previously it was provided that func-

tions of the Tender Board and Procurement

Management unit could be delegated to a

sub-division of the PE or member of staff,

such delegation shall now be delegated

only to a sub-division of a PE because prac-

tically the functions of TB and PMU cannot

be delegated to an individual – PPR-

R48(1).

• While previously it was prohibited to con-

tract out both procurement and disposal by

tender functions and contract management

functions to the same procurement agent,

such prohibition is now placed only when

there is likely to be a potential of conflict

between these two functions- PPR-R50(8).

This provision is to allow for the existing

practice in works contracts where a con-

sultant employed for the design of the

works is engaged to assist the client in the

procurement process of contractors for the

works, and is later involved in the supervi-

sion of the works carried out by the select-

ed contract. Normally under such circum-

stances any potential conflict of interest

between assisting the client in the procure-

ment process of selection of a contractor

and later on participating in the supervision

of the works is mitigated through the con-

tract entered between the Client and the

Consultant in which the obligations of the

consultant in the pre-contract and post-con-

tract services are clearly stipulated with

clear penalties in case of abuse.

• While previously it was provided that dis-

agreement between TB and PMU shall be

referred to PPRA, it is now provided in

PPR-R52(2) that such disagreement be

referred first to the Accounting Officer who

shall resolve the matter, failure of which it

shall then be referred to PPRA. This provi-

sion is in recognition of the fact that the

Accounting Officer is the highest authority

in procurement matters in the organization

in accordance with PPA-S6(4) and PPA-

S48, and therefore any disagreement

between organs working under him/her can

only be referred outside the organization if

he/she fails to resolve them.

• Previously disagreement between PMU

and Evaluation Committee was not cov-

ered. It is now covered under PPR-R54 in

which such disagreement shall be referred

to TB.

PEs need to take advantage of these provi-

sions for delegation of procurement authori-

ty to enable efficient handling of procure-

ment activities in their organization. Experi-

ence obtained by PPRA through procurement

audits and Procurement Capability Review

Assessments shows that, large organizations

like Tanzania National Parks, Tanzania

Roads Authority, Bank of Tanzania, Tanzania

Revenue Authority, Tanzania Ports Authority

have very heavy procurement workload and

problems of delay of procurement processes

both at headquarters and at zonal or regional

offices because of failure to delegate pro-

curement authority to the zonal or regional

offices. Here is now a chance to improve pro-

curement operations through delegation of

procurement authority. Important thing to

note is that if a decision is made to delegate

to regional or zonal office, then the Account-

ing Officer must ensure that there is a dele-

gated tender board as well as procurement

management unit at that level.

Table 3 summarizes the provisions of PPR

2013 on how to handle disagreements. These

provisions are in accordance with PPA-S45.

It is seen that in two cases, disagreements

between the Accounting Officer and the Ten-

der Board and between Tender Board and

PMU may end up being referred to PPRA

for directives. This was one of the reasons

why PPRA was removed from complaints

handling procedure to avoid potential con-

flict of interest that could arise since direc-

tives given by PPRA could be the subject of

a complaint by a bidder.

Basic elements of Public Procurement Act 2011 andPublic Procurement Regulations 2013

Continues on page 7

Dr. Ramadhan Mlinga, Lecturer,

University of Dar es Salaam

Figure 3: Summary of Delegation of Procurement Authority as Contained in PPR 2013

Tuesday December 21, 2010 Tanzania Procurement Journal 7Tuesday December 28, 2010 Tanzania Procurement Journal 7Tuesday February 18, 2014 Tanzania Procurement Journal 7

PROCUREMENT NEWS

APPROVING AUTHORITY OF PRO-

CUREMENT AND DISPOSAL BY TEN-

DER- PART II (d)

In relation with PPA-S6(4) and PPA-S48

which makes the Accounting Officer to be

accountable for all procurement carried out

in his organization, PPR-R55(1) makes it

mandatory for all procurements to be author-

ized by the Accounting Officer. Such author-

ization shall be made through the manage-

ment’s approval of Annual procurement Plan

or through approval of an individual procure-

ment if not included in the procurement plan

– PPA-S49.

PPR-R55 and PPR-R57 makes it mandatory

for the Tender Board to approve:

• An Invitation for Tender, tender/proposal

and draft contract documents - PPR-

R55(2);

• Modifications to tender/proposal and draft

contract documents – PPR-R55(3);

• The recommendations for award of con-

tract submitted to it by the PMU – PPR-

R55(4). Note a time limit of 14 days

imposed on the PMU to submit the evalua-

tion report to Tender Board. This is intend-

ed to minimize delays of procurement

process within PEs for in the past there

were cases of delays caused by failure of

PMU to submit evaluation report to TB for

adjudication.

• The list of pre-qualified firms, in the case

where pre-qualification was used – PPR-

R55(7).

The membership of Tender Opening ad hoc

committee in a PE has been limited to a max-

imum of four members and the participation

of members of TB in the opening is prohibit-

ed as stipulated in PPR-R56 as shown in

Box 18. This provision aims at reducing pro-

curement transaction costs which were being

incurred by PEs in paying members of tender

opening committee, of which in some PEs

they could be even more than ten members.

It should be noted that at the tender opening

there is no value addition necessitating atten-

dance of many members of the PE since no

evaluation is done at that stage. In order to

ensure fairness and transparency of the ten-

der opening process normally those who sub-

mitted tenders are invited to attend the tender

opening ceremony.

Similarly approval through circular resolu-

tion has been given prominence through

PPR-R58 and PPRA is required to issue

guidelines with that regard, particularly on

what type of procurements can be approved

through circular resolution. This provision

aims at minimizing delays in procurement

approvals which were being occasioned by

PEs due to failure of TB to meet, sometimes

due to heavy work load of its members.

Although the guidelines are not yet prepared,

PEs need immediately to take advantage of

this provision to improve procurement per-

formance in their organization. PEs can make

judgment of type of procurement approvals

where they can make use of circular resolu-

tion, and if in doubt they can seek clarifica-

tion from PPRA. Potential areas of approval

through circular resolution include approval

of service providers to be invited to tender

and award of contracts obtained through

competitive quotations, minor value and

micro procurement.

To minimize delays which were being expe-

rienced with vetting of contracts by the

Attorney General, a maximum period of 21

days PPR-R59(4) has been fixed for the vet-

ting process and Legal Officers of PEs are

allowed to ratify contracts of value up to

Tshs. 50 mil – PPR-R60. This provision is in

accordance with PPA-S60(9) & 10.

The role of user department in preparation of

contract amendments is emphasized in PPR-

R61(1) in which it is required to prepare such

amendments in consultation with PMU for

submission to the TB. All amendments of

contracts must obtain the approval of TB and

other relevant bodies including the Attorney

General and the PE must ensure that it has

funds to finance those amendments – PPR-

R61. In case where the amendments relate to

quantities, then the same or lower units rates

as per original contract shall be used- PPR-

R61(3); and where the amendment exceed

15% of the original contract price, the

approval of budget approving Authority must

be sought- PPR-R61(4) as shown in Box 19.

The provision of PPR- R61(3) aims to pre-

vent existing practice where some bidders

tenders low with the expectation that during

the implementation of the contract they will

be given extra work through variations and

be given an opportunity to amend their rates

above the one they tendered for when they

were awarded the contract. Also provisions

of PPR-R61(4) of seeking approval of budg-

et approving authorities for variations

exceeding 15% aims at ensuring that man-

agement of a public entity does not commit

an organization to an expenditure whose

budget was not approved by relevant author-

ities. It reinforces the requirement of PPR-

R75 which requires PEs to ensure that funds

are allocated or committed before commenc-

ing procurement proceedings.

Validity of procurement authorization

remains the same as was in GN. No. 97 and

98 0f 2005. The TB’s approval, provided that

the approved tenderer has not been notified,

shall remain valid for 90 days with a further

possible extension of 90 days – PPR-R62.

This provision is only valid if the value of the

product or the scope of services or works is

not varied significantly compared with the

original submission. After the expiry of Ten-

der Board’s approval all tenders or proposals

shall be rejected and the procurement pro-

ceedings annulled and new tenders may be

invited from at least all who submitted ten-

ders/proposals initially and new ones.

PROCEDURE FOR CONDUCTING

EMERGENCY PROCUREMEN.- PART

II(e)

The provision for handling of emergency

procurement is covered under PPA-S65 as

well as in this Section of the Regulations.

The criteria which may necessitate emer-

gency procurement are given in PPA-S65(2)

and are shown in Box 5 of this article1.

Despite of the approval procedure which is

discussed below, PPA-S65(4) gives a waiver

with regard to procurement limits, methods,

tender processing periods and advertisement,

implying that a PE will not be compelled to

comply with the provisions of the PPA 2011

and PPR 2013 as provided, however the ten-


Basic elements of Public Procurement Act 2011 andPublic Procurement Regulations 2013

Ser. No.

Type of

Disagreement How to Handle the Disagreement Reference 1. Accounting Officer

and Tender Board

(i) AO to return decision for TB Review

giving reasons for disagreement.

(ii) Review by TB and issue a decision

and re-submit to AO.

(iii) AO if not satisfied with decision

reached by TB after review, shall

refer the matter to PPRA for inde-

pendent review giving reasons for

disagreement.

PPA-S36(4)

PPR-R51

2. Tender Board and

PMU

(i) TB to return recommendation to

PMU giving reasons for disagree-

ment.

(ii) Review by PMU and re-submit to

Tender Board.

(iii) TB if not satisfied with re-submis-

sion, Chairman of TB to refer the

matter to Accounting officer for fur-

ther review.

(iv) TB if not satisfied with outcome of

review by the AO, shall refer the

matter to PPRA for directives.

PPR-R52

PPR-R57(3)

3 PMU and User

Department

(i) PMU and UD shall jointly consult two

members of TB for review of the

matter.

(ii) If further disagreement, the matter

shall submit the issue to TB for its

formal Decision.

PPR-R53

4 PMU and

Evaluation

Committee

(i) PMU to return evaluation report to

EC for re-evaluation

(ii) If PMU disagrees with re-evaluation,

shall refer the matter to TB for

Decision.

PPR-R54

Table 3: Summary of Disagreement Handling Procedure as Provided in PPR 2103

Box 18: Membership of Tender

Opening

56.-(1) The public opening of tenders

shall be attended by-

(a) the secretary of the tender board

who shall be the chairperson;

(b) not more than two staff from the

procurement management unit

who shall be the secretariat;

(c) one co-opted member from any

user department or unit within a

procuring entity; and

(d) the tenderers or their representa-

tives.

(2) The co-opted member shall not be a

member of the tender board.

Box 19: Approval of Budget

Approving Authority

for contract amend-

ments in excess of

15%

61(4) A contract amendment shall not

increase the total contract price by

more than fifteen percent of the

original contract price without the

approval of budget approving

authority.

Continues on page 8

PES SHOULD NOTE THAT ACCORDING

TO PPA –S35(3) AND PPA-S65(6) NO

AWARD OF TENDER INCLUDING THOSE

CONDUCTED UNDER EMERGENCY

PROCUREMENT SHALL BE VALID WITH-

OUT THE APPROVAL OF THE TENDER

BOARD


PROCUREMENT NEWS

PROCUREMENT AND SUPPLIES PROFESSIONALSAND TECHNICIANS BOARD

PUBLIC NOTICE

UNLAWFUL EMPLOYMENT IN

PROCUREMENT AND SUPPLIES

FUNCTION

ATTENTION IS MADE TO ALL EMPLOYERS THAT

IT IS CONTRARY TO THE LAW (PSPTB Act No. 23

of 2007) TO EMPLOY A PERSON IN THE CAPAC-

ITY OF PROCUREMENT AND SUPPLIES PRACTI-

TIONER (REGARDLESS OF RANK AND TITLE) IF

SUCH PERSON IS NOT DULLY REGISTERED BY

THE PROCUREMENT AND SUPPLIES PROFES-

SIONALS AND TECHNICIANS BOARD (PSPTB).

ANY EMPLOYER, BEING AN INDIVIDUAL, FIRM

OR ANY OTHER ORGANIZATION OR BODY THAT

EMPLOYS AN UNREGISTERED PERSON TO

WORK IN PROCUREMENT AND SUPPLIES

FUNCTION, COMMITS AN OFFENCE.

THE BOARD INTENDS TO CARRY OUT A MAS-

SIVE INSPECTION EXERCISE TO BOTH PUBLIC

AND PRIVATE ENTITIES TO ASCERTAIN THE

LEVEL OF COMPLIANCE TO THIS LAW. STERN

LEGAL MEASURES WILL BE TAKEN AGAINST ALL

DEFAULTERS WHO WILL BE FOUND.

For more information, contact:

Executive Director,

PSPTB,

P.O. Box 5993,

DAR-ES-SALAAM.

Tel. No. 255-22-2865860

Fax. No. 255-22-2862138

E-mail: [email protected]

Website: http://www.psptb.go.tz

ders must be evaluated and award

must be approved by the Tender

Board – PPA-S65(6).

Approval procedure of emergency

procurement:

• Approval to proceed with emergency

procurement shall be granted by the

Government Procurement Agency

(GPSA) within 5 days after receiv-

ing the application for approval for

the same from the Accounting Offi-

cer – PPR-R63(3);

• When it is impracticable to seek

approval of GPSA, the Accounting

Officer may proceed with emer-

gency procurement in accordance

with chosen procurement method

and notify GPSA and PPRA, and

later on seek retrospective approval

of the Paymaster General within 7

days of the award of Contract –

PPR-R63(5-9).

• PPRA is required to issue a format

which shall be used to prepare a

report on emergency procurement

PPR-R64(2) which is required to be

submitted within 14 days to the Pay-

master General, Controller and

Auditor General, Internal Auditor

General, PPRA and GPSA.

• Emergency procurement shall not

apply for common use items and

services PPR-R66(1) and where a

procurement was not included in the

procurement plan, but is reasonable

and justified, the Accounting Offi-

cer may approve re-allocation with-

in his authority in order to carry out

such procurement within the limits

of minor and micro procurement

values shown in 6th and 10th

Schedule of PPR 2013.

• Accounting Officer shall be held

accountable where the so called

emergency procurement is proved to

be unnecessary and extravagant and

was undertaken by lack of sight and

timely action. A contract entered

under such circumstances, even if

not approved retrospectively, shall

be valid and the Accounting Officer

shall be responsible for the payment

of the price involved PPR-R67.

This provision is to safeguard a

service provider who may not have

the knowledge that a particular pro-

curement in which he was awarded

a contract did not follow procedures

required under the law.

PROCUREMENT AND DISPOS-

AL PLANNING AND FINANCIAL

CONTROLS - PART II(f)

This section of Regulations deals with

procurement and disposal planning.

Important issues covered include:

• Planning of procurement of re-cur-

rent items should be based on an

adequate stock control system –

PPR-R68(2)- implying that one

should check stock levels before

planning procurement of such

items;

• Procurement process times provid-

ed in the 8th and 12th Schedule of

PPR 2013 for goods works and

non-consultancy services, and for

consultancy services respectively

have only shown the time given to

bidders to prepare and submit their

tenders/proposals without giving

the internal time to process tenders

by PE as shown in Box 20 - PPR-

R68(3). This was intended to over-

come the a practice which existed

whereby PEs were complaining

that the time frame provided under

Third Schedule of GN. No. 97 of

2005 including that of preparation

of tender documents, review of ten-

der documents, evaluation of ten-

ders, obtaining necessary approvals

was very long. Under GN. No. 97

and 98 of 2005 the provided time

for those activities was maximum

rather than the minimum and the

PEs were required to use as short

time as possible, but that was mis-

interpreted by some PEs.

Basic elements of Public Procurement Act 2011and Public Procurement Regulations 2013Continued from page 7

To be continued on the next release of TPJ

1Refer to Part 1 of this article which appeared Vol. VII- No. 5 of Tanzania Procurement Journal of 4th February 2014

Box 20: Minimum Tender Processing Times for

Goods, Works and Non-Consultancy

Services

Minimum Tender Processing Times for Consultancy

Services

Ser.

No.

Method of procurement Period

(calendar days)

PREQUALIFICATION STAGE

1 International competitive tendering 30

2 National competitive tendering 21

TENDERING STAGE

3 National competitive tendering 21

4 International competitive tendering 30

5Restricted national competitive ten-

dering21

6 National shopping 4

7 International shopping 8

8 Where large works are involved 90

S/No Activity Time (Calendar days)

National

Competitive

Selection

International

Competitive

Selection

1

(i) Inviting for expression of

interest up to submission of

the same by consultants or

14 30

(ii) Invitation of Application for

Prequalification up to the

submission of the same by

Consultants

30 45

2Preparation and submission of

proposals by the consultants30 45

The Editorial Board of TPJ wishes to

invite from the general public, procure-

ment related news and articles for publi-

cation in the Journal. The invited articles

could be either in English or Kiswahili.

Please submit the article through thefollowing e-mail address: [email protected]

The Editorial Board reserves the right toapprove articles for publication in TPJ.