ZHRC/HTI Financial
Management Training
Session 6: Public Procurement
Environment and Legal Framework
in Tanzania
Learning Objectives
•
By the end of this session, participants will be able
to:
• Define procurement
• Explain objectives of procurement for procuring
entities
• List categories of procurement
• Identify principles of procurement in the public sector
• Explain legal framework of the different procurement
entities
• Describe roles and responsibilities of Public
Procurement Regulatory Authority (PPRA) and
procuring entities
What is Procurement?
Definition of Procurement
• Procurement is the process of buying
goods, works and services to satisfy the
identified needs
• Buying, purchasing, renting, leasing or
otherwise acquiring any goods, works or
services by a procuring entity spending
public funds on behalf of a Ministry,
Department, Agency or Local Government
or public body (PPA, 2004)
Importance of Procurement
• Procurement is an important function as
it enables an organization to acquire the
goods and services needed to fulfill its
objectives
Legal Guidelines for Procurement
1.Public Procurement Regulations, 2005
• Procurement of Goods, Works, NonConsultancy Services
• Disposal of Public Assets by Tender
• Selection and Employment of Consultants
2.The Public Procurement Act 21 of 2004
Procurement in Procuring Entities
• The overall responsibility for procurement
process rests with the Accounting Officer
or Chief Executive Officer
• Act requires each Procuring Entity to
establish a Tender Board for procurement
• Tender Boards have power to award
procurement contracts
Objectives of Procurement
• To provide procuring entities with a flow of
goods, services and works to meet its
needs
• To reduce costs through more efficient
and effective purchasing by buying
appropriately to obtain “value for money”
Categories of Procurement
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Works
Supplies
Non-Consultancy Services
Consultancy Services
Principles of Public Procurement
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Transparency
Accountability
Equal treatment/fairness
Value for money
Appeal rights
Integrity
Competition
Activity in Pairs:
Procurement
Legal Framework for Procurement
in Tanzania
The Public Procurement Act, 2004 (1)
• PPA 2004 is applicable to:
• All public bodies
• Non-public bodies that receive or use public
funds
• Defense and National Security Organs for
non-restricted items.
• PPA 2004 repeals No.3 of 2001
The Public Procurement Act, 2004 (2)
• Establishes a Public Procurement Regulatory
Authority (PPRA) in place of the Central Tender
Board
• Decentralises procurement to Procuring Entities
with no limits of authority
• Changes the composition of Tender Boards so
Accounting Officers are no longer Chairpersons
of Tender Boards
• Changes the membership of PPRA to include
private sector and professional bodies
Procuring Entities: Who are They?
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Ministries
Government Departments
Autonomous Bodies
Regions
Districts
Parastatal Organisations
Executive Agencies
Local Government Authorities
Tanzanian Foreign & High Commissions
The Public Procurement
Regulatory Authority (PPRA)
• The Public Procurement Act of 2004
establishes the PPRA as an autonomous
body under the Ministry of Finance and
Economic Affairs
• The PPRA replaces the Central Tender
Board
Objectives of the Public Procurement
Regulatory Authority (PPRA)
• Ensuring the application of fair, competitive,
transparent, non-discriminatory and value for
money procurement standards and practices
• Harmonization of the procurement policies,
systems and practices
• Setting standards for public procurement
• Monitoring of compliance of procuring entities
• Building procurement capacity in Tanzania
Functions of PPRA (1)
• Advise on procurement principals and
practices
• Monitor performance of public procurement
systems and advise on changes
• Set training standards, competence levels,
and certification requirements for
procurement experts
• Update and issue tendering documents and
forms
Functions of PPRA (2)
• Implement measures to build procurement
capacity in Tanzania
• Store and disseminate information on
procurement opportunities and tender
awards on any relevant information on public
procurement in the country
• Facilitate resolution of procurement
complaints
Powers of PPRA
• PPRA is given wide powers that include
but are not limited to:
• Carrying out investigations for alleged
mis-procurement (PPA 2004: Sec. 8 - 16)
• Calling for any documents or information
regarding procurement
• Recommending disciplinary actions for those
in breach of the Act
Disciplinary Actions (Sec. 17)
• Disciplinary actions include but are not limited
to:
• Discipline or suspension of accounting officers
and chief executive officers
• Replacement of the head of a Procurement
Management Unit, the Chairperson, or any
member of a Tender Board
• Temporary transfer of procurement functions to
a third party procurement agent
Roles and Responsibilities of the
Accounting Officer (1)
• Establish a Tender Board
• Appoint members of the Tender Board
• Establish a Procurement Management
Unit
• Advertise tender opportunities
• Appoint the tender evaluation committee
• Communicate award decisions
Roles and Responsibilities of
Accounting Officer (2)
• Certify availability of funds to support procurement
activities
• Sign contracts for procurement activities on behalf
of the procuring entity
• Investigate complaints by suppliers, contractors or
consultants
• Submitting a copy of complaints and reports of
finding to Authority
• Ensuring implementation of awarded contract is in
accordance with terms and conditions of award
Composition of the Ministerial
Tender Board (Sec. 28)
• Ministerial Tender Board shall consist of:
• A Chairperson
• Six members
• A Secretary
Functions of Tender Board (Sec. 30)
• A Tender Board is responsible for:
• Approving tendering and contract documents
• Approving procurement and disposal by tender
procedures
• Reviewing applications for variations or amendments
to ongoing contracts within its jurisdiction
• Adjudication of recommendations from the PMU and
award of contracts
• Ensuring best practices are used
• Ensuring compliance with the Act
• Liaising with the Authority on matters within its
jurisdiction
Procurement Management Unit
(Sec. 34) (1)
• In every procuring entity there shall be
established a Procurement Management
Unit (PMU) staffed to an appropriate level
• PMU shall consist of procurement and
other technical specialists together with
necessary supporting and administrative
staff
Procurement Management Unit
(Sec. 34) (2)
• Procuring entities shall:
• Identify all those engaged in procurement
within their organizations and identify skills
need in each post
• Set out strategies to meet the needs of
Procurement Management Units
• PMU shall be headed by a person with
sufficient academic qualifications and
experience in procurement functions
Functions of Procurement
Management Unit (Sec. 35)
• Managing and planning procurement activities
except adjudication and the award of contract
• Preparing Tender Documents
• Acting as a secretariat to Ministerial Tender
Board
• Implementing the decisions of the Ministerial
Tender Board
• Recommending procurement procedure
• Planning the procurement activities of the
Procuring Entity
Functions of User Departments
(Sec. 34) (1)
• User department of a procuring entity shall
perform the following functions:
• Assist Procurement Management Unit with
procurement and disposal
• Propose technical inputs to statements of
requirements
• Assist with technical evaluation of tenders as
requested by the PMU
Functions of User Departments
(Sec. 34) (2)
• Certify payments to suppliers and consultants
• Report departures from terms and conditions of
an awarded contract
• Forward details of contract amendments to PMU
for action
• Maintain and archive records of contracts
• Prepare any reports required for submission to
Procurement Management Unit, Tender Board
or Accounting Officer
Functions of User Departments
(Sec. 34) (3)
• Prepare a procurement work plan for
submission to PMU, Tender Board or
Accounting Officer
• Prepare a work plan for procurement
based on approved budget, which shall be
submitted to Procurement Management
Unit for implementation when required
Evaluation Team (Sec. 37)
• All evaluations shall be conducted by an
evaluation committee, which shall report to PMU
• Membership of evaluation committee shall be
recommended by Procurement Management
Unit in accordance with the act and approved by
Accounting Officer or Chief
• Number of members shall depend on the value
and complexity of procurement requirement, but
shall be a minimum of three members
Independence of Functions and
Powers (Sec. 38)
• Subject to provisions of this Act, the
following entities shall act independently
in relation to their respective functions and
powers:
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Accounting Officer or Chief Executive
Tender Board
Procurement Management Unit
User Department
Evaluation Committee
Activity in Pairs:
Procurement Responsibilities
Key Points (1)
• Procurement is a
• Principles of public
process of buying
procurement include:
• transparency
goods, services and
• accountability
works
• Types of procurement • equal treatment
• value for money
regulated by the PPA
• rights of appeal
include: works,
• integrity and
supplies, consultancy
• competition
services and nonconsultancy services
Key Points (2)
• Functions of Public Procurement
Regulatory Authority (PPRA) include:
• Monitoring performance of public procurement
systems
• Setting training standards for procurement
experts
• Issuing tender documents