ZHRC/HTI Financial Management Training

1. ZHRC/HTI Financial Management Training Session 6: Public Procurement Environment and Legal Framework in Tanzania

2. 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 Learning Objectives

3. What is Procurement?

4. 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) Definition of Procurement

5. Procurement is an important function as it enables an organization to acquire the goods and services needed to fulfill its objectives Importance of Procurement

6. Public Procurement Regulations, 2005 Procurement of Goods, Works, Non-Consultancy Services Disposal of Public Assets by Tender Selection and Employment of Consultants The Public Procurement Act 21 of 2004 Legal Guidelines for Procurement

7. 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 Procurement in Procuring Entities

8. 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” Objectives of Procurement

9. Works Supplies Non-Consultancy Services Consultancy Services Categories of Procurement

10. Transparency Accountability Equal treatment/fairness Value for money Appeal rights Integrity Competition Principles of Public Procurement

11. Activityin Pairs: Procurement

12. Legal Framework for Procurement in Tanzania

13. 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 (1)

14. 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 The Public Procurement Act, 2004 (2)

15. Ministries Government Departments Autonomous Bodies Regions Districts Parastatal Organisations Executive Agencies Local Government Authorities Tanzanian Foreign & High Commissions Procuring Entities: Who are They?

16. 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 The Public Procurement Regulatory Authority (PPRA)

17. 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 Objectives of the Public Procurement Regulatory Authority (PPRA)

18. 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 (1)

19. 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 Functions of PPRA (2)

20. 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 Powers of PPRA

21. 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 Disciplinary Actions (Sec. 17)

22. 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 the Accounting Officer (1)

23. 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 Roles and Responsibilities of Accounting Officer (2)

24. Ministerial Tender Board shall consist of: A Chairperson Six members A Secretary Composition of the Ministerial Tender Board (Sec. 28)

25. 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 Functions of Tender Board (Sec. 30)

26. In every procuring entity there shall be established aProcurement 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) (1)

27. 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 Procurement Management Unit (Sec. 34) (2)

28. 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 Procurement Management Unit (Sec. 35)

29. 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) (1)

30. 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) (2)

31. 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 Functions of User Departments (Sec. 34) (3)

32. All evaluations shall be conducted by an evaluationcommittee, 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 Evaluation Team (Sec. 37)

33. Subject to provisions of this Act, the following entities shall act independently in relation to their respective functions and powers: AccountingOfficer or Chief Executive Tender Board Procurement Management Unit User Department Evaluation Committee Independence of Functions and Powers (Sec. 38)

34. Activity in Pairs: Procurement Responsibilities

35. Procurement is a process of buying goods, services and works Types of procurement regulated by the PPA include: works, supplies, consultancy services and non-consultancy services Principles of public procurement include: transparency accountability equal treatment value for money rights of appeal integrity and competition Key Points (1)

36. Functions of Public Procurement Regulatory Authority (PPRA) include: Monitoring performance of public procurement systems Setting training standards for procurement experts Issuing tender documents Key Points (2)