the ethiopian federal govt procurement and property administ

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CONTENTS

Proclamation No. 649/2009

The Ethiopian Federal Government Procurement andProperty Administration Proclamation Page 4858

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17/ Special Procurement mean a procurement

of sizable volume carried out in bulk by adecision of the Minister on account of the

national significance of that procurement orto fulfill similar requirements of various

public bodies or requirements of a public

body within a given period of time;

18/ Framework Contract mean a general agreementof procurement establishing unit price and otherterms and conditions of contract which serves as a

basis for supplies to be delivered under futurespecific contract;

19/ Framework Contract Supplier mean a

supplier who has entered in to a contractual

obligation to supply goods or services under

a framework contract;

20/ Board mean an entity established under

this Proclamation to review and decide on

complaints from candidates in regard to the

conduct of procurements and disposal of

property of the Federal Government;

21/ Public Property mean any property of the

Federal Government other than public fund

and land;

22/ Custodial Responsibility mean theresponsibility conferred on a civil servant by

the head of a public body or by a person

delegated by him to protect and maintain

public property until it is disposed or written

off, or transferred to the custody of anothercivil servant or public body;

23/ Fixed Asset mean tangible asset the value

of which is determined by a directive to beissued by the Minister, that is in operational

use and that has a useful economic life of

more than one year, such as furniture,

computers, heavy equipment, vehicles, ships

and aircraft, buildings, roads, sewers,

bridges, irrigation systems, dam and the like;

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4/ accountability for decisions made and

measures taken with regard to public

procurement and property administration;

5/ careful handling and proper use of publicproperty.

6. International Obligations

1/ To the extent that this Proclamation conflicts

with an obligation of the Federal Government

under or arising out of an agreement with one

or more other states or with an international

organization, the provisions of thatagreement shall prevail.

2/ Where an agreement referred to in sub-article(1) of this Article contains a preference orpreferences in favour of national and resident

bidders, the public body shall ensure that the

applicable preference or preferences are

clearly stated in the bidding documents.

7. Public Accessibility of Legal Texts

This Proclamation and the procurement and

property directives to be issued by the Minister as

well as other documents pertaining to publicprocurement and property administration shall be

promptly made accessible to the public and

systematically maintained.

8. Responsibilities of Heads of Public BodiesPublic bodies shall have overall responsibility for

procurements they carry out and the property they

administer. In particular, the head of a public

body shall apart from those specified in the

directives to be issued by the Minister, have the

following responsibilities:

a) cause to be established an adequately staffedunit for procurement and propertyadministration;

b) setup a procurement endorsing committeewhich approves procurements of highervalue; it may also setup ad hoc evaluationcommittee for complex procurement;

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b) with an intention to mislead a procurementproceeding not to present a falsifieddocument or not to withhold information

he/she should have disclosed;

c) not to connive with another candidate in

an act of false competition in order toget unfair advantages;

d) to report to the law enforcement agencies

any intended or completed action of

corruption which he came to knowduring the procurementproceedings and

contribute to the effort to fight

corruption and malpractice.

33. Methods of Procurement

1) The following methods shall be used in

public procurement:

a) Open Bidding;

b) Request for Proposals;

c) Two stage Tendering;

d) Restricted Tendering;

e) Request for Quotation;

f) Direct Procurement.

2) Except as otherwise provided in this

Proclamation, public bodies shall use open

bidding as the preferred procedure of

procurement.

3) Public bodies may use a method other than

open bidding only where conditions for use

of such other method stipulated under this

Proclamation are satisfied.

4) Public bodies shall not split procurement

requirements for a given quantity of goods,

works or services with the intention of

avoiding the preferred procurement

procedure stated under this Proclamation or

in the procurement directive.

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5) Any public body shall not award a contract

when:

a) the bidder has failed to demonstrate, inthe manner provided in Article 28(1) of

this Proclamation, that it is qualified;

b) the bidder does not accept a correction

of an arithmetical error made pursuant to

sub-article (2) of this Article;

c) the bid is not responsive.

6) In the process of selecting the successful

bidder, the public body shall only consider

substantially responsive bids for further

evaluation and comparison, as defined in sub-

article (8) of this Article in accordance with

the criteria set forth in the bidding

documents. No criterion shall be used that

has not been set forth in the biddingdocuments.

7) No bidder may be required to change the

price offered in his bid or otherwise modify

his proposal or to assume obligation to do so

except as set forth in the bidding document.

8) The successful bid shall be:

a) the bid that is found to be responsive to

the technical requirements and with thelowest evaluated price;

b) if the public body has so stipulated in the

bidding documents, the bid offering

better economic advantage ascertained

on the basis of factors affecting the

economic value of the bid which have

been specified in the bidding documents,

which factors shall, to the extent

practicable, be objective andquantifiable, and shall be given a relativeweight in the evaluation procedure or be

expressed in monetary terms whereverpracticable;

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3) The contract shall not be signed by the publicbody prior to the receipt of the notice by the

unsuccessful bidder and before the periodspecified in the directive to be issued by the

Minister has lapsed.

4) The procedures that public body has to followin administering the contract shall beprescribed by a directive to be issued by the

Minister.

47. Contract Security

A supplier shall provide the public body with a

contract security to make good any damage the

public body may sustain as a result of default bythe supplier under the contract. The type of

procurement for which contract security is

required and the type and amount of contract

security shall be determined by a directive to be

issued by the Minister.

48. Advance Payment

1) The amount of advance payment that may beallowed to suppliers in public procurement

and the manner in which it is made availableshall be determined by the directive to be


2) Advance payment may be effected only where

a supplier furnishes advance payment

guarantee in an amount equal to the advancepayment.

CHAPTER FIVE

RESTRICTED TENDERING

49. Conditions for use of Restricted Tendering

Public bodies may use restricted tendering as a

method of procurement only where the following

conditions are satisfied:

1) it is a ascertained that the required object ofprocurement is available only with limitedsuppliers;

2) the cost of procurement does not exceed thethreshold specified in respect of restricted

tendering in the directive to be issued by the

Minister; or

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4) In formulating the revised specification in

accordance with sub article (3) of this

Article, the public body may delete or modifyany aspect, originally set forth in the

solicitation documents of the technical orquality characteristics of the goods, works

or services to be procured and any criterion

originally set forth in those documents forevaluating and comparing bids and for

ascertaining the successful bids and may add

new characteristics or criteria that conform

with this Proclamation. Any such deletion,

modification or addition shall be

communicated to suppliers in the invitationto submit final bids.

5) A supplier not wishing to participate in thesecond stage of tendering in accordance with

the reformulated specification may withdraw

from the proceeding.

6) The public body shall evaluate the bids

submitted at the second stage to ascertain the

successful bidder pursuant to the provisions

of Article 43 of this Proclamation.

7) The public body may engage in negotiation

with the first ranking bidder concerning any

aspect of its bid, except price.

CHAPTER TENINTERNATIONAL COMPETITIVE BIDDING

59. Open International Bidding

1) Open international bidding shall be usedwhenever in national open bidding an

effective competition cannot be obtained

unless foreign firms are invited to bid or for

procurements above a threshold level for

national bidding to be determined by a

directive to be issued by the Minister

2) A procurement may be effected by means ofnational competitive bidding notwithstanding thatthe cost of the procurement exceeds the thresholdestablished in the directive for national bidding ifit is ascertained that the required object ofprocurement is available only locally.

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2) The Agency shall account for, administer and

where necessary, dispose off property of the

Federal Government which are notadministered by any other public body.

64. Use and Maintenance

1) Heads of public bodies shall ensure that all

public property is used as productively as

possible in carrying out of the responsibilities

of the public bodies.

2) Heads of public bodies shall establish a

proper maintenance system for all publicproperty to ensure that it will operate as

economically and effectively as possible in

accordance with the directive to be issued by

the Minister.

65. Management of Public Property

1) The heads of public bodies shall adopt a life-

time approach to the management of publicproperty.

2) Heads of public bodies shall ensure that

items of public property are recorded as to

date, description, quantity and cost from

acquisition to the end of their life-time.

3) Heads of public bodies shall ensure that the

custodial responsibility for each fixed assetacquired is assigned primarily to persons

using such fixed assets and that names of thecustodians, and the locations of the fixed

assets under their custody are recorded in the

register of fixed assets.

4) Heads of public bodies, shall ensure that

supplies, not acquired for immediate

consumption, shall form part of supplyinventories and that custodial responsibilitybe assigned for such inventories.

5) All inventories of public property shall be

physically verified against records at least

annually.

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6) Where the actual cost of public property is

not determinable, its cost shall be estimated

in accordance with the directive to be issuedby the Minister.

7) Depreciation shall be calculated on fixed

assets in accordance with the directive to be


66. Protection and Preservation

The heads and all employees of public bodies are

responsible for the protection and preservation ofpublic property.

67. Disposal

1) Heads of public bodies shall ensure that fixed

assets which are not useful to the

organization are disposed off in the manner

to be prescribed in the directive to be issued

by the Minister.

2) The description and amount received from all

public property disposed off shall be includedin the public accounts.

3) Without prejudice to the provisions of the

directive to be issued by the Minister,

concerning the matter, proceeds from the

disposal of public property shall be deposited

into the account of the central treasury.

68. Deletion

1) Where public property is considered to be ofno use in the public body or elsewhere, and

has no- scrap value, it shall be deleted inaccordance with the directive to be issued by

the Minister.

2) Deletion of public property shall be recorded

when losses take place from inventory

shortages, destruction, theft or any other

reason.

3) The description and book value of all public

property deleted shall be included in thepublic accounts in accordance with thedirectives to be issued by the Minister.

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2) No complaint may be lodged in accordance

with sub- article (1) of this Article in respect

of the following matters:

a) the selection of procurement methodpursuant to this Proclamation;

b) the rejection of bids, proposals orquotations pursuant to Article 30 of this

Proclamation;

c) the selection of method of propertydisposal;

d) the handling and usage of publicproperty.

3) Complaints against an act or omission of a

public body pertaining to a proceedingleading to an award may not be brought

before the head of that public body or theBoard after the contract has been signed with

the successful bidder.

4) The provision of sub- article (3) of this Article

shall apply where the following conditions

are satisfied:

a) where the contract has been signed

without a complaint being filed with the

public body within the time limitprescribed in the directive;

b) where the public body responds to thecomplaint lodged and a contract is

signed because of the expiration of the

time limit for the signing of contract

after the award without the candidatepursuing its complaint further.

5) The procedure to be followed in resolvingcomplaints brought in regard to public

procurement and property disposal shall be

determined in accordance with the directive

to be issued by the Minister.

74. Review of Complaints by the Head of the Public

Body

1) A complaint against an act or omission by

the public body shall in the first instance,

be submitted to the head of the publicbody.

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2) A candidate shall have to submit the

complaint within five working days

from the date he knew or should haveknown the circumstances giving rise to the

complaint.

3) Unless the complaint is resolved by mutual

agreement, the head of the public body shallsuspend the procurement or property disposal

proceedings and shall, within 10 days after

submission of the complaint, issue a written

decision, stating the reasons, and, if the

complaint is upheld, indicating the corrective

measures to be taken.

4) If the head of the public body does notissue a decision within the time stated in

sub-article (3) of this Article, or if the

candidate is not satisfied with the decision

of the head of the public body the

candidate is entitled to submit a complaint

to the Board within five working days from

the date on which the decision has been or

should have been communicated to the

candidate by the public body.

75. Reviews by the Board

1) Upon receipt of a complaint, the Board shall

promptly give notice of the complaint to the

public body concerned. Such action

automatically suspends further action by the

public body until the Board has settled the

matter.

2) The Board, unless it dismisses the complaint,may:

a) prohibit the public body from acting or

deciding unlawfully;

b) order the public body to proceed in a

manner conforming to this Proclamation

other than a decision to award orconclude a contract;

c) annul in whole or in part, an unlawful actor decision by the public body.

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3) The Board shall, before taking any decisionregarding a complaint, notify relevant bodies

of the complaint and shall take into accountinformation and arguments received from

such bodies and from the public body.

4) The Board shall issue its decision within 15

working days of receiving the complaint,stating the reasons for its decision and

remedies granted, if any.

76. Review by the Agency

1) Where a public body believes that anunlawful act or an act prejudicial to its

legitimate interest has been committed bycandidates, suppliers or by buyers of

disposed property, it shall without prejudice

to the measures it is entitled to take against

such persons in accordance with the bidding

document or the contract, notify the matter in

writing to the Agency.

2) Upon receipt of the complaint the Agencyshall send a written notice of the complaintand the content of such complaint to the

candidate, the supplier or the buyer ofdisposed property against whom the

complaint has been lodged.

3) Where the Agency finds it appropriate to theresolution of the complaint it may require

persons concerned with the matter to appear

in person and give evidence or seekprofessional assistance from any appropriate

body.

4) The Agency shall review and give decisionon the complaint within 15 working days ofreceipt of such complaint.

5) The decision to be rendered by the Agency inaccordance with sub-article (4) of this Article

may be one of the following:

a) suspend for a definite or indefiniteperiod the candidate, supplier or buyer ofdisposed property which it finds to be at

fault from participation in any publicprocurement or property disposal;

b) give a written warning;

c) dismiss the complaint.

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6) The Minister shall establish by a directive the

procedure the Agency follows in reviewing

and deciding complaints submitted to it inaccordance with this Article.

CHAPTER FIFTEEN

MISCELLANEOUS PROVISIONS

77. Offences and Punishment

1) Every person appointed to or employed by apublic body in carrying out the provisions of

this Proclamation who:

a) receives any payment for the

performance of his official duty, except

as provided by law;

b) who defrauds a public body, conspires orcolludes with any person to defraud thepublic body or provides an opportunity forany person to defraud the public body in

regard to a public procurement or property

disposal proceeding;

c) contravenes or intentionally permits any

contravention of this Proclamation;

d) willfully makes or signs any false entry

in any document or willfully makes or

signs false certificates;

is liable on conviction to a fine not less thanBirr 25,000 and not more than 35,000 and to

a rigorous imprisonment for a term of not

less than 10 years and not more than 15

years.

2) A procurement and property administration

officer employed in carrying out theprovisions of this Proclamation, except such

information required by this Proclamation to

be official, who:

a) discloses to any person or that persons

representative, any matter in respect ofanother person, that, may, in the exercise ofthe procurement officers powers or the

performance of the procurement officersduties come to the procurement officersknowledge;

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b) permits any other person to have access

to records in the possession or custody of

the public body, except in the exercise ofthe procurement officers powers or the

performance of the procurement officersduties under this Proclamation or by

order of a court or any competent body;

commits an offence and is liable onconviction to a fine of not less than Birr

10,000 and to imprisonment for a term of not

less than 2 years and not more than 5 years.

3) Every person appointed to or employed by apublic body in carrying out the provisions of

this Proclamation who:

a) directly or indirectly asks for or receives

in connection with any of his duties, apayment or gift, whether pecuniary or

otherwise, or promise or security for that

payment or reward; or

b) enters into or acquiesces in an agreement

to do or to abstain from doing, permit,

conceal, or connive at any act or thing

whereby the procurement or propertydisposal is or may be defrauded or which

is contrary to the provisions of thisProclamation or to the proper execution

of the procurement officers duty;

commits an offence and is liable on

conviction to a fine of not less than 50,000

Birr and to imprisonment for a term of notless than ten (10) years and not more than

twenty(20) years.

4). Every person who, promises, offers or gives

any bribe to any person appointed to oremployed in any public procurement and

property administration with intent:

a) to influence the decision or action of that

person on any question or matter that ispending, or may be brought before him

in his official capacity; or

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80. Effective Date

This Proclamation shall enter into force up on thedate of publication in the Federal Negarit Gazeta.

Done at Addis Ababa, this 9tht day of September, 2009

GIRMA WOLDEGIORGIS

PRESIDENT OF THE FEDERALDEMOCRATIC REPUBLIC OF ETHIOPIA

49)0

the ethiopian federal govt procurement and property administ

Documents