ISSN 0856 – 034X

Supplement No. 48 20

December, 2013

SUBSIDIARY LEGISLATION

to the Gazette of the United Republic of Tanzania No. 48 Vol 94 dated 20

December, 2013

Printed by the Government Printer, Dar es Salaam by Order of Government

GOVERNMENT NOTICE No. 446 published on 20/12/2013

THE PUBLIC PROCUREMENT ACT

(CAP.410)

________

REGULATIONS

_______

(Made under Section 105)

_______

THE PUBLIC PROCUREMENT REGULATIONS, 2013

ARRANGEMENT OF REGULATIONS

Regulation Title

PART I

PRELIMINARY PROVISIONS

1. Citation

2. Application

3. Interpretation

PART II

GENERAL PROVISIONS

(a)Public Procurement Principles

4. Basic principles for undertaking or approving procurement

5. Economy and efficiency

Public Procurement

GN. No. 446 (contd.)

6. Eligible tenderers

7. Probity and ethics in procurement or disposal by tender

8. Equality of participation

9. Eligibility

10. Transparency and fairness

11. Donor funded procurement

12. Form of Communication

13. Clarification and modifications of solicitation documents

14. Rules concerning documentary evidence provided by tenderers

15. Record of procurement or disposal proceedings

16. Rejection of all tenders

17. Rejection of abnormally low tender

18. Publication of General Procurement Notice

19. Publication of procurement notice

20. Publication of procurement awards and contract execution

21. Fees for services rendered by the Authority

22. Rules concerning description of goods, works, services or assets

23. Tender security

24. Validity of tender security or declaration

25. Release of tender security for unsuccessful tenderers

26. Discharge of tender security or tender securing declaration

27. Application of tender securing declaration

28. No claim by procuring entity to tender security amount

29. Performance security

(b)Preference and exclusive preference to local persons or firms

30. Promotion of local industry

31. Eligibility

32. Registration for purposes of preference schemes

33. National preference

34. Preference to local persons or firms

35. Inclusion of local firms and experts in consultancy contracts

36. Use of local experts and goods in works and non consultancy

service contracts

37. Preference to local goods

38. Evaluation of tenders

Public Procurement

GN. No. 446 (contd.)

39. Exclusive preference scheme to local persons or firms

40. Preference to local communities

41. Tender securing declaration

42. Splitting of contracts

43. Capacity building of local firms

44. Timely payment of certificates or invoices

45. Monitoring of compliance

Disagreements

46. Delegation and contracting out procurement functions

47. Delegation of the accounting officer’s own functions

48. Delegation of the functions of tender board or procurement

management unit

49. Contracting out to another procuring entity

50. Contracting out to a procurement agent

51. Disagreements between the accounting officer and the tender

board

52. Disagreements between the tender board and procurement

management unit

53. Disagreements between the procurement management unit and the

user department

54. Disagreement between the procurement management unit and the

evaluation committee

(d) Approving Authority for Procurement and Disposal by Tender

55. Approval of procurement

56. Tender opening and adhoc committee

57. Approval by tender boards

58. Approval through circular resolution

59. Vetting of contracts by the Attorney General

60. Ratification of contracts by Legal Officer of a procuring entity

61. Contract alteration and amendment

62. Validity of procurement or disposal authorisation

Public Procurement

GN. No. 446 (contd.)

(e) Procedure for conducting emergency procurement

63. Emergency procurement

64. Report on Emergency Procurement

65. Prohibition to Tender Board

66. Application of Emergency Procurement

67. Liability of Accounting Officer

(f) Procurement and Disposal Planning and Financial Controls

68. Planning implementation

69. Procurement Planning

70. Timeframe for preparation and submission of annual procurement

plan

71. Procedures for submitting tender for packages or lots

72. Aggregating requirements

73. Prohibition of splitting tenders and contracts

74. Establishment of contract period

75. Commitment of funds

76. Selection of a method of procurement

77. Procurement procedures of the Authority and Appeals Authority

(g) Prohibition

78. Fraud and corruption

79. Improper inducement

80. Disability of members of procuring entity and member of the

approving authority on account of interest in contracts

81. Pecuniary interests

82. General notices and recording of disclosure information

83. Prohibition of running contracts

84. Non anticipation of contracts

85. Tampering with submitted tenders

(h) Monitoring by the Authority

86. Monitoring within the procuring entity

Public Procurement

GN. No. 446 (contd.)

87. Continuous monitoring

88. Procurement contract and performance audit

89. Procurement investigation

90. Cooperation with other authorities

91. Actions to be taken after investigation

92. Response and implementation of the Authority’s

recommendations

(i) Debarment from Participating in Public Procurement

93. Initiation and grounds for debarment

94. Procedures for debarment

95. Inquires by the Authority

96. Issuance of notice of debarment

97. Suspension pending completion of the debarment proceedings

98. Decision on debarment

99. Disclosure of the decision

100. Register of debarred and suspended tenderers

101. Effects of suspension or debarment

102. Effects on existing contracts

103. Right to appeal against debarment decision

(j) Review of Procurement or Disposal Decisions and Disputes

Settlement

104. Right to review

105. Submission of applications for review to the accounting officer

106. Administrative review by accounting officer

107. Review by the Appeals Authority

(k) Miscellaneous Provisions

108. Procedure for amendment of standard contract

109. Submission of contract documents

110. Amendments after signature

111. Time extension orders

Public Procurement

GN. No. 446 (contd.)

112. Liquidated damages

113. Termination of contract for abandoning works or services

114. Management of contracts

115. Public bodies participating in tenders floated by public or private

sector

PART III

PROCEDURES FOR PROCUREMENT OF GOODS,

WORKS AND NON-CONSULTANCY SERVICES

(a)Conditions for Participation

116. Qualification of Tenderers

117. Criterion, requirement, procedure etc not to be discriminatory

118. Participation of local and foreign tenderers in procurement

proceedings

119. Pre-qualification proceedings

120. Contents of invitation for pre-qualification

121. Contents of pre-qualification document

122. Clarifications and evaluation of applications for pre-qualification

123. Notification of results of pre-qualification process

124. Confirmation of verification information

125. Waiver of certain requirements

126. Tender relating to public security

127. Appointment of a consultant for procurement of works

128. Types of works or service contracts

129. Turnkey contracts

PART IV

PROCUREMENT OF SECTOR SPECIFIC GOODS AND SERVICES

(a) Procurement of common use items and services

(b)

130. Procurement from the Agency

131. Procurement of common use items and services

132. Obligations of parties to framework arrangements

133. Agency may make price adjustment

Public Procurement

GN. No. 446 (contd.)

134. Payment of fees to Agency

135. Procurement procedures of the Agency

(c)Procurement of maintenance and repair of motor vehicles,

plant and equipment, and the installation of electrical,

refrigeration, air conditioning and electronic services in

buildings owned by Government

136. Procurement of motor vehicles, heavy plant, equipment and spare

parts

137. Procurement of electrical mechanical and electronic services

(d)Procurement of Information and Communication Technology

Equipments

138. Procurement of computers and other related information

technology equipment and tools

(e)Procurement of Medicines and Medical Supplies

139. Definition

140. Procurement of catalogue items

141. Procurement of non catalogue items

142. Procurement procedures of the Department

143. Department may make price adjustment

144. General criterion procurement of catalogue and non catalogue

item

145. Publication of list of suppliers

146. Specifications for medicines and medical supplies

147. Procurement of other sector specific goods

PART V

METHODS OF PROCUREMENT AND THEIR

CONDITIONS FOR USE

(a) Rules applicable to the selection of procurement method

148. Pre-qualification

Public Procurement

GN. No. 446 (contd.)

149. Method of procurement

(b) Open tendering procedures

150. International competitive tendering

151. National Competitive tendering

152. Restricted tendering

(c)Procurement method involving negotiations

153. Conditions for use of two-stage tendering, request for proposals or

competitive negotiations

154. Two-stage tendering

155. Request for proposal with simultaneous negotiations

156. Conducting simultaneous negotiations

157. Request for proposal with consecutive negotiations

158. Competitive negotiations

159. Single source procurement for goods or services

160. Procedure for single source

161. Single source procurement for works

(d) Procurement method that does not involve negotiations

162. Requests for proposals without negotiations to be arranged

163. Shopping

164. Procedure for shopping

165. Minor value procurement

166. Micro value procurement

167. Force Account

168. Community participation in procurement

169. Procurement of commodities

170. Procurement of food stuff for schools, training institutions,

hospitals and prisons

171. Power of Agency to set price adjustment

172. Inspection agents

Public Procurement

GN. No. 446 (contd.)

PART VI

PROCUREMENT OF USED RAILWAY MACHINERY,

AIRCRAFTS AND SHIPS

173. Interpretation

174. National interest

175. Criteria for deciding on procurement of used item

176. Opportunity for competitions

177. Quality of used item

178. Credibility of suppliers

179. Approval by Minister

180. Special Technical Advisory Committee

PART VII

TENDERING PROCEEDINGS

181. Invitation to tender and advertising

182. Contents of invitation to tender

183. Issue of solicitation documents

184. Contents of solicitation documents

185. Approval of tender documents

186. Number of sets of tender documents

187. Tender period

188. Price adjustment formula

189. Pre bid meeting

190. Submission of tenders

191. Period of effectiveness of tender

192. Extension of the period of effectiveness of tender

193. Modification and withdrawal of tenders

194. Tender sample or inspection of goods

195. Receipt of tenders

196. Tender opening

197. Discounts

198. Tenders to be numbered consecutively

199. Records of the tender opening

200. Restriction for disclosure to tenderers

201. Influence by tenderers

Public Procurement

GN. No. 446 (contd.)

202. Evaluations committee

203. Examination, evaluation and comparison of tenders

204. Checking of substantial responsiveness to commercial terms and

conditions

205. Checking of substantial responsiveness to technical requirements

206. Determination of tender responsiveness

207. Request for clarification of tender

208. Expression of factors

209. Tender below or above pre-determined value

210. Power to reject tender

211. Evaluation and acceptance of tenders

212. Successful tender

213. Determination of lowest evaluated tender

214. Determination of highest evaluated tender

215. Conversion of currency

216. Rates of exchange to be used in evaluation

217. Use of CIF or CIP in evalua tion and comparison of tenders

218. Demonstration of qualification

219. Obligation of contractor in works and turnkey contracts

220. Report on evaluation and comparison of tenders

221. Evaluation with margin of preference for goods

222. Goods forming part of contract package

223. Evaluation with preference for works or non-consultant service

contracts

224. Post-qualification and denial of award in a case of limited

resources

225. Negotiations with tenderers

226. Negotiation Team

227. Approval of negotiation plan by tender board

228. Minutes and recommendation of negotiation team

229. Results of approved negotiations

230. Negotiations with next ranked tenderer

231. Approval of award of contract

232. Award of contract

233. Acceptance of tender and entry into force of procurement contract

234. Submission of procurement report

235. Copies of acceptance notices to be forwarded to Authority

Public Procurement

GN. No. 446 (contd.)

236. Publication of results of tender award

237. Reasons for not accepting lowest tender

238. Request for information

239. Selection of sub-contractors and suppliers for provisional and

prime cost sums in works contracts

240. Process to be confidential

241. Environmental issues

PART VIII

CONTRACT MANAGEMENT

242. Management of goods contracts

243. Management of services and works contracts

244. Inspection and acceptance of goods

245. Inspection and acceptance of committee

246. Technical or scientific test

247. Goods found to be correct and complete

248. Goods acceptance certificate

249. Inspection and acceptance of goods in set or unit

250. Refusal to accept delivery

251. Period of inspection and acceptance

252. Appointment of a works supervisor

PART IX

PROCEDURES FOR SELECTION AND EMPLOYMENT OF

CONSULTANTS

(a) Methods of Procurement

253. Selection of a method of procurement

254. International competitive selection

255. National competitive selection

256. Restricted competitive selection

257. Single source selection

Public Procurement

GN. No. 446 (contd.)

(b) Selection Methods, Procedures and Conditions for Application

258. Selection methods and procedures

259. Selection based solely on technical quality

260. Selection based on combined technical quality and price

consideration

261. Selection based on compatibility of technical proposals and least

cost consideration

262. Selection based on quality and fixed budget

263. Selection based on consultants qualification

264. Selection of public bodies, agencies as consultants

265. Selection of United Nations agencies as consultants

266. Selection of Non-governmental organisations

267. Selection of procurement agents

268. Selection of inspection agents

269. Auditors

270. Selection of transaction advisor

271. Terms of reference for transaction advisor

272. Service delivery contracts

(d) Basic Steps for Selection of Consultants

273. Recruitment of consulting firms

274. Selection process

275. Terms of reference

276. Procuring entity’s contributions

277. Counterpart staff

278. Associations between consultants

279. Cost estimate and budget

280. Advertisement for request of expression of interest

281. Preparation of short list

282. Provision of final shortlist

283. Criteria to be used where no expression of interest is provided

284. Elements of shortlist

Public Procurement

GN. No. 446 (contd.)

285. Tender board not to object consultant

286. Pre-qualification

287. Preparation and issuance of the request for proposals

288. Letter of invitation

289. Instructions to consultants

290. Contract

291. Role of the consultant

292. Curriculum vitae of staff

293. Deviations from basic requirement

294. No change of price or substance of proposal once opened

295. Receipt and opening of proposals

296. Minutes

297. Formulation of evaluation committee

298. Approval of tender board where evaluation recommends rejection

299. Evaluation of technical proposals

300. Notification of results of technical evaluation

301. Date of opening of financial proposals

302. Procedure at the opening of financial proposal

303. Evaluation of financial proposals

304. Combined quality and cost evaluation

305. Post qualification of consultants

306. Confidentiality

307. Submission to the Tender Board

308. Contract negotiations

309. Approval of award of contract

(e) Selection of Individual Consultants

310. Selection of individual consultants

311. Types of services

312. Selection process

(f) Types of Contracts and their Conditions for Use

313. Lumpsum (fixed price) contract

314. Time based contract

315. Retainer and/or success fee contract

Public Procurement

GN. No. 446 (contd.)

316. Percentage contract

317. Indefinite delivery contract (price agreement)

318. Running contracts

(g) Implementation and Management of Consultancy Contracts

319. Management of consultant contracts

320. Evaluation of consultant’s performance

321. Professional liability

322. Liquidated damages

PART X

PROCEDURES FOR DISPOSAL OF PUBLIC ASSETS BY TENDER

(a) Conditions for Participation in Disposal of Public Assets by Tender

323. Qualification of asset buyers

324. Participation by an asset buyer

(b) Disposal Process

325. Approval for disposal of public assets by tender

326. Disposal plan

327. Environmental issues

328. Methods of disposal

329. Competitive tendering for disposal of assets by tender

330. International competitive tendering

331. National competitive tendering

(d) Tendering Proceedings

332. Invitation to disposal by tender and advertising

333. Contents of invitation to disposal by tender

Public Procurement

GN. No. 446 (contd.)

334. Contents of solicitation documents

335. Examination, evaluation and comparison of tenders

336. Negotiations with highest evaluated tenderers

337. Acceptance of tender and entry into force of disposal contract

338. Process to be confidential

339. Record of disposal proceedings

PART XI

PROCEDURES FOR CONDUCTING ELECTRONIC

PROCUREMENT

340. Interpretation

341. Objectives and usage

342. Scope and application

343. Major modules of e-PPs

344. Access to e-PPs features

345. Registration of users of e-PPs

346. Tender preparation

347. e-advertisement for e-tendering and e-auction

348. Uploading tender document for e-tendering

349. Clarification and pre-tender meeting

350. Amendment to tender documents

351. e-submission

352. Online tender opening

353. Formulation of evaluation committee

354. Use of e-PPs by evaluation committee

355. Approval, notification of award and contract signing

356. Application of e-auction

357. System preparation for e-auction

358. Bidding instructions

359. Advertising in e-auction

360. Operation of e-auction

361. Correspondence, amendments and clarifications

362. Access to e-auction process

363. Contract award under e-auction

364. Contract progress and monitoring and control

365. Certification and payment processing

Public Procurement

GN. No. 446 (contd.)

366. Dispute resolution

367. Fees

368. Payment arrangements

PART XII

PROCEDURES FOR CONDUCTING PROCUREMENT UNDER

PUBLIC PRIVATE PARTNERSHIP

369. Procurement of solicited PPP

370. Advertisement of request for qualification

371. Selection process of a private partner

372. Evaluation of proposals

373. Conduct of due diligence

374. Procurement of unsolicited PPP

375. Invitation of counter proposals

376. Obligations, liabilities and confidentiality

377. Issues of PPP request for proposals

378. Contents of unsolicited PPP proposals

379. Negotiation, agreement and award

380. Revocation

________

SCHEDULES

________

Public Procurement

GN. No. 446 (contd.)

THE PUBLIC PROCUREMENT ACT

(CAP. 410)

_________

REGULATIONS

_________

(Made under Section 105)

_________

THE PUBLIC PROCUREMENT REGULATIONS, 2013

PART I

PRELIMINARY PROVISIONS

Citation

1. These Regulations may be cited as the Public

Procurement Regulations, 2013.

Application

2.-(1) Subject to sub-regulation (2), these Regulations shall

apply to-

(a)

all procurement of goods, works and non-

consultancy services undertaken by a procuring

entity except where the context provide

otherwise in which case the provisions of the

Act shall prevail;

(b) selection and employment of consultants;

(d) procurement under public private partnership.

(2) These Regulations shall not apply to disposal of

public assets by other methods.

Interpre-

tation

3. In these Regulations, unless the context requires

otherwise-

“accounting officer” means a government officer appointed in

Public Procurement

GN. No. 446 (contd.)

Cap 348

accordance with the provisions of the Public Finance

Act or a public officer statutorily appointed to hold a

vote or subvention and accounts for all monies

expended from that vote or subvention;

Cap 410

“Act” means the Public Procurement Act;

“Agency” means Government Procurement Services Agency;

“Appeals Authority" means the Public Procurement Appeals

Authority established under section 88 of the Act;

“approving authority” means an accounting officer or a tender

board of a public body;

“Authority” means the Public Procurement Regulatory

Authority established by section 7 of the Act;

“best net outcome” means to maximize the overall benefit to

the government from the disposal of an asset;

“call off order” means an order placed by a procuring entity

under general terms and pricing on a range of goods

under framework agreement, without having to

negotiate terms every time;

“closed framework agreement” means an agreement with

specified terms and conditions with an agreed price;

“common use items and services” means goods, works and

services that are required continuously or repeatedly

over a set period of time and are common to more than

one procuring entity and are subject to common

procurement;

“company" means a company or firm constituted under civil

or commercial law, including corporations, whether

public or otherwise, co-operative societies and other

legal persons and partnerships governed by public or

private law;

“contract" means a contract or agreement made between a

procuring entity and a tenderer as a result of

procurement proceedings;

Cap. 103

“contracting authority” shall have the meaning ascribed to it

under the Public Private Partnership Act;

“contractor" means a firm, company, corporation,

organisation, partnership or an individual person

Public Procurement

GN. No. 446 (contd.)

engaged in civil, electrical or mechanical engineering

or in construction or building work of any kind

including repairs and renovations, and who is,

according to the context, a potential party or the party

to a procurement contract with the procuring entity;

“corrupt practice" means the offering, giving, receiving, or

soliciting anything of value to influence the action of a

public officer in the procurement process or contract

execution;

“counter proposal” means the offer given by other interested

tenderers to counter-march with the original project

proponent’s proposal;

“foreign consultant” means an individual consultant whose

nationality is that of a foreign country or a consulting

firm whose majority of its share capital, as far as the

ownership thereof is or can be publicly known, is

owned by citizens of foreign countries;

“framework agreement ” means a contractual arrangement

which allows a procuring entity to procure goods,

services or works that are needed continuously or

repeatedly at an agreed price over an agreed period of

time, through placement of a number of orders;

“Journal” means the Tanzania Procurement Journal;

“limit of authority” means the maximum value of any single

contract that may be approved by an accounting officer

without prior approval of tender board;

“micro procurement” means acquisition of standard and low

value goods or services of the aggregate amount of

which does not exceed the micro procurement

threshold specified in these Regulations;

“minor value” means an amount of money up to a maximum

limit for the procurement of goods, works or

consultancy of a minor nature;

“national tenderers” means a firm whose nationality is that of

the United Republic or firm whose majority share

capital, as far as the ownership thereof is or can be

publicly known, is owned by citizens of the United

Public Procurement

GN. No. 446 (contd.)

Republic;

“open framework agreement” means an agreement with

specified terms and conditions without an agreed

price;

“original project proponent” means a private party who

submits a Public Private Partnership proposal to the

contracting authority with respect to any project which

has not yet been approved or notified;

“parastatal organisation” means-

(a) a body corporate established by or under any Act

other than the Companies Act;

Cap. 212

(b) any corporation registered under the Companies

Act, in which not less than fifty percent of the

share capital is owned by the Government or by

another parastatal organisation or in the case of a

company which is limited by guarantee, where

the Government has undertaken to meet fifty

percent or more of the liabilities of that

company; or

Cap 245

statutory body in which the Government has a

majority or controlling interest and includes a

government agency established under the

Executive Agencies Act;

“performance security” means a guarantee or a bond from a

successful tenderer’s bank or an Insurance Company,

which should be provided by the successful tenderer to

the procuring entity with the aim of compensation for

any loss resulting from the tenderer’s failure to

complete its obligations under the contract;

Cap 103

“private party” shall have the meaning ascribed to it under the

Public Private Partnership Act;

“procurement agent” means a person, a private or public firm

specialised in procurement, acting for another person

called the principal in dealing with third parties in

matters relating to procurement;

“procurement expert or specialist” means a person who is

Public Procurement

GN. No. 446 (contd.)

engaged in a profession, occupation or calling in which

recourse to procurement is directly or indirectly

involved and has such knowledge and experience of

the practice of procurement and has been certified or

registered by the Procurement and Supplies

Professional and Technician Board;

“procuring entity” means a public body or any other body, or

unit established and mandated by the government to

carry out public functions;

“public asset” means any property owned by a public body

tangible and intangible, including but not limited to

physical property, land, shares or proprietary rights;

Cap.103

“Public Private Partnership” shall have a meaning ascribed to

it under the Public Private Partnership Act;

“running contract” means a contract extending over a period

of time for an estimated or variable quantity of goods,

services or works obtained through request for

submission of unit rates which are applied over an

extended period of time and which offer the procuring

entity to engage such tenderers without further

competitive tendering;

“service provider” means a natural person, an incorporated

body or a duly registered body licensed by a competent

authority to provide the services and who is, according

to the contract, a potential party or the party to a

procurement contract with the procuring entity;

“solicited project proposal” means any proposal relating to the

implementation of a project which is submitted in

response to a request or solicitation issued by the Unit

or a contacting authority within the context of a

competitive selection procedure;

“solicitation for expression of interest” means the process

whereby consultants are invited to submit details of

their resources and capabilities so that a procuring

entity can determine which consultants meet the

minimum criteria necessary for being considered for

competitive selection of consultants;

Public Procurement

GN. No. 446 (contd.)

“tender board” means a tender board established under section

31 of the Act;

“tender or solicitation document” means a written or electronic

document or request for proposal inviting tenderers to

participate in procuring or disposal by tender

proceeding and includes document inviting potential

tenderers for pre-qualification;

“tender period” means the period between the date of the first

publication of the invitation to tender or the date of the

mailing of the invitation to tender and the closing date

for the submission of tenders;

“tender price” means the sum stated by a tenderer in his tender

for carrying out the contract;

“Tenders Portal” means a web portal of the Authority

containing all information relating to public tenders;

“tender security” means a guarantee or bond from a tenderer’s

bank or an insurance company which should be

provided by the tenderer as part of its bid with the aim

of protecting the procuring entity against the risk of

tenderer’s conduct during the tender period which

would warrant the security’s forfeiture or otherwise

returned to the tenderer after tender process.

“Tender Securing Declaration” means a security by way of

declaration provided by the tenderer when the

procurement is within the exclusive preference limits;

provided under the Ninth and Thirteenth Schedules to

these Regulations;

“tender validity period” means the period of time subsequent

to the closing date for submission of tenders for which

the tender price and the conditions of the tender shall

not be subject to any change by the tenderer;

“unsolicited project proposal” means any proposal relating to

the implementation of a project which is not submitted

in response to a request or solicitation issued by the

Unit or a contracting authority within the context of a

competitive selection procedure.

Public Procurement

GN. No. 446 (contd.)

PART II

GENERAL PROVISIONS

(a)Public procurement principles

Basic

principles

for

undertaking

or approving

procurement

and disposal

of public

assets

4.-(1) The basic principles of public procurement

shall be to make the best possible use of public funds with

honesty and fairness.

(2) All public officers including accounting officers

and members of tender boards shall, when undertaking or

approving procurement, be guided by the following basic

considerations:

(a) the need for economy and efficiency in the use of

public funds in the implementation of projects,

including the provision of related goods and

services;

(b) the best interests of a public body in giving all

eligible tenderers equal opportunities to compete in

providing goods or executing works or providing

services;

contracting and service industries;

(d) the importance of integrity, accountability, fairness

and transparency in the procurement process.

(3) The principles of disposal of public assets shall

base on the need to achieve the best available net return when

disposing off public assets by tender, while conducting all

disposals with honesty and fairness.

(4) All public officers including accounting officers

and members of tender boards shall, when undertaking or

approving disposal of public assets, be guided by the

following basic considerations:

(a) the need for best net outcome and efficiency in

the use of public funds in the implementation of

projects including disposal of assets;

Public Procurement

GN. No. 446 (contd.)

(b) the best interests of a public authority, in giving

all eligible buyers equal opportunities to

compete in buying the assets; and

economic and environmental interests are

protected.

Economy

and

efficiency

5.-(1) Public officers and members of tender boards

shall, when undertaking or approving procurement or disposal

of public assets by tender, choose appropriate procedures and

cause the procurement or disposal of assets to be carried out

diligently and efficiently, so that the prices paid or received by

the procuring entity represent the best value or net outcome

that can reasonably be obtained for the funds applied for or the

assets disposed off.

(2) In furtherance to sub-regulation (1), public

officers and members of tender boards shall ensure that-

(a) the goods, works or services procured are of

satisfactory quality;

(b) the goods, works, or services are appropriate to

the public body requirements and, where

necessary, goods or consultancy services or

services are compatible with any similar goods

or services already supplied or provided for

public authority's use or for a particular project;

provided, or the works are completed in a timely

manner in accordance with the procuring entity’s

priorities; and

(d) the public assets to be disposed of by tender are

disposed in a manner which attracts maximum

competition while reducing the administration

and transaction costs.

Eligible

tenderer

6.-(1) A tenderer who qualifies for consideration

under these Regulations shall be eligible to participate in

procurement or disposal proceedings unless the tenderer is

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GN. No. 446 (contd.)

precluded by the Act or these Regulations.

(2) A procuring entity shall not deny pre-

qualification, if required, to a firm for reasons other than legal

capacity, financial capability and experience to successfully

perform the contract.

(3) Notwithstanding sub-regulation (2)-

(a) a foreign firm, goods manufactured in a foreign

country, a contractor or a consultant from a

foreign country shall be excluded if-

(i) as a matter of law or Regulations, the United

Republic prohibits commercial relations with

that country;

(ii) by an act of compliance with a decision of the

United Nations Security Council taken under

Chapter VII of the Charter of the United

Nations, the United Republic prohibits any

import of goods from that country or any

payments to persons or entities in that

country; or

(iii) it is proved beyond reasonable doubt that, the

foreign supplier, contractor or consultant

does not satisfy relevant Regulations

governing the procurement of goods, works

or services in the United Republic;

(b) a tenderer who is engaged by a procuring entity

for provision of goods, works or services and any

of its affiliates, shall be disqualified from

subsequently providing goods, works or services

(other than a continuation of earlier contract) or

acquiring assets from the same project.

(4) Sub-regulation (3) shall not apply to tenderers

who perform the contractors’ obligations under a turnkey or

design and build contract.

(5) A government owned enterprise may participate if

the enterprise-

(a) is legally and financially autonomous;

(b) operates under commercial law; and

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GN. No. 446 (contd.)

registration body or authority .

(6) A dependent agency of the procuring entity under

a public financed project shall not tender or submit a proposal

for the procurement of goods or works under a project within

the procuring entity other than force account units, as

prescribed under regulation 167.

(7) A tenderer who is declared ineligible by the

Government in accordance with the Act or these Regulations

shall be ineligible to be awarded a public financed contract.

Probity and

ethics in

procurement

or disposal

by tender

7.-(1) All public officers and members of tender

boards concerned with procurement or disposal of public

assets by tender shall be scrupulous and honest in their

dealings with tenderers, members of the public and with the

procuring entity itself.

(2) A procuring entity shall conduct procurement and

disposal by tender proceedings with complete probity and in a

manner that the procuring entity is respected and trusted as a

client or customer while maintaining good reputation with

tenderers.

(3) A procuring entity shall reject a tender of a

tenderer who gives or agrees to give directly or indirectly to

any public officer or other public authority, a gratuity in any

form, an offer of employment or any other thing of service or

value, as an inducement with respect to an act or omission or

decision of or procedure followed by the procuring entity in

connection with that tender or proposal or any other tender or

proposal.

(4) Procurement or disposal shall not be made to a

member of staff of a procuring entity or a person who has

direct influence on the decisions of the procuring entity acting

in private capacity, either alone or as a partner in a partnership

or as an officer of a company.

(5) A procuring entity shall not include in any tender

document any condition or specification such as to favour any

tenderer.

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GN. No. 446 (contd.)

(6) Any person or a member of staff of a procuring

entity who is involved in procurement or disposal by tender

proceedings of a procuring entity shall declare any interest that

he may have in any tenderer and shall not take any part in, nor

seek to influence in any way procurement or disposal by

tender proceedings in which that tenderer is involved or likely

to be involved.

(7) The disclosure of interest made under this

regulation shall be recorded in the minutes of the meeting at

which it is made.

Equality of

participation

8. In order to ensure widest possible participation by

tenderers on equal terms in inviting tenders for goods, works,

services, provision of consultancy services or disposal of

assets, procuring entities shall take the necessary measures to-

(a) ensure publication of invitations to tender or to

submit expression of interest or proposal in the

Journal, Tenders Portal, newspapers of wide

circulation and other appropriate means as

prescribed in the First Schedule to these

Regulations;

(b) eliminate discriminatory practices, technical

specifications or description of services which

may limit participation on equal terms;

in the tender documents or prequalification and

request for proposal; and

(d) ensure that the tender or proposal selected

conforms to the requirements of the tender

documents or request for proposal and meets the

prescribed selection criteria.

Eligibility

9.-(1) Unless otherwise specified in these

Regulations, participation in the invitations to tender or

proposal and awarding contracts shall be open on equal terms

to-

(a) natural persons, companies or firms or public or

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GN. No. 446 (contd.)

semi-public agencies of Tanzania and foreign

countries;

(b) cooperative societies, community based

organisation, civil society organisations, farmers’

associations and other legal persons governed by

public or private law;

(2) A tenderer shall be permitted to participate in the

selection proceedings without regard to nationality, except in

cases where the procuring entity decides, on grounds specified

in these Regulations or according to the provisions of any

written law, to limit participation in selection proceedings on

the basis of nationality.

(3) A procuring entity that limits participation on the

basis of nationality pursuant to sub-regulation (2), shall

include, in the record of the selection proceedings, a statement

of the grounds and circumstances on which it relied in making

limitation.

(4) The procuring entity shall, when first soliciting

the participation of tenderers in the selection proceedings,

declare to foreign tenderer that they may participate in the

selection proceedings regardless of nationality and such a

declaration shall not later be altered, but if the procuring entity

decides to limit participation pursuant to sub-regulation (2) it

shall so declare to tenderers.

(5) An eligible tenderer shall provide to the procuring

entity evidence of his eligibility, proof of compliance with the

necessary legal, technical and financial requirements and their

capability and, adequacy of resources to carry out the contract

effectively.

(6) The procuring entity shall prepare a document in

respect of all tenders submitted and the document shall be

dated and set out in accordance with the applicable laws or

practice and shall certify whether or not provisions of sub-

regulation (8) applies to the tenderers.

(7) A natural person, company or firm shall not be

eligible for the award of contract if-

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GN. No. 446 (contd.)

(a) such person is declared bankrupt or, in the case

of company or firm, insolvent;

(b) payments in favour of the person, company or

firm is suspended in accordance with the

judgement of a court of law other than a

judgement declaring bankruptcy and resulting, in

accordance with the national laws, in the total or

partial loss of the right to administer and dispose

of its property;

person, company or firm involving an order

suspending payments and which may result, in

accordance with the national laws, in a

declaration of bankruptcy or in any other

situation entailing the total or partial loss of the

right to administer and dispose of the property;

(d) the person, company or firm is convicted, by a

final judgement, of any offence involving

professional conduct;

(e) the person, company or firm is found guilty of

serious misrepresentation with regard to

information required for participation in an

invitation to tender or to submit proposals;

(f) the person, company or firm is in breach of

contract with the procuring entity or other

procuring entities;

(g) the person, company or firm is blacklisted in

accordance with section 62 of the Act or

ineligible in accordance with section 84(7) of the

Act.

(8) A firm which has been declared ineligible by the

Government in accordance with section 84 of the Act shall be

ineligible to be awarded a public financed contract.

(9) A tenderer who is a citizen of Tanzania may

tender independently or in joint venture with foreign firm save

that joint ventures or other forms of association between

national and foreign firms shall not be made mandatory.

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GN. No. 446 (contd.)

(10) Where a solicitation document allows a tenderer

to submit a tender as part of a joint venture, consortium or

association, the solicitation document shall require , where

appropriate, that-

(a) a party to a joint, consortium or association shall

be jointly and severally liable for the

performance of the contract;

(b) a party to a joint venture, consortium or

association shall be eligible to participate in the

procurement or disposal by tender and where

one party is deemed to be ineligible, the whole

joint venture, consortium or association shall be

declared ineligible;

association agreement, or the proposed

agreement, shall be required to be submitted as

part of the tender or as a condition of contract

effectiveness;

(d) a joint venture, consortium or association shall

appoint a lead member who shall have the

authority to bind the joint venture, consortium,

or association and the lead member shall at the

time of contract award confirm the appointment

by submission of a power of attorney to the

procuring entity;

(e) any tender from a joint venture, consortium or

association shall indicate the part of proposed

contract to be performed by each party and each

party shall be evaluated or pre-qualified or post

qualified with respect to its contribution only; or

(f) the responsibilities of each party in paragraph (e)

shall not be substantially altered without prior

written approval of the procuring entity.

(11) A tender to be submitted shall contain the

following information:

(a) copies of original documents defining the

constitution or legal status, and establishing the

Public Procurement

GN. No. 446 (contd.)

place of registration or statutory seat and, if it is

different, the place of central administration of the

company, firm or partnership or, if a joint venture,

of each party constituting the tenderers;

(b) details of the experience and past performance of

the tenderer or of each party to a joint venture on

contracts of a similar nature and details of other

contracts in hand including details of the actual and

effective participation in each such contract;

proposed for use in carrying out the contract; the

qualifications and experience of key personnel

proposed for administration and execution of the

contract, both at and away from the place of

execution of the contract;

(d) proposals relating to the nature, conditions and

modalities of sub-contracting wherever the sub-

contracting of any elements of the contract

amounting to more than ten percent of the tender

price is envisaged;

(e) reports on the accounting and financial standing of

the tenderer or of each party to a joint venture such

as profit and loss statements, balance sheets and

auditor's reports, an estimated financial projection

for the next two years, and an authority from the

tenderer or authorised representative of a joint

venture to seek references from the tenderer’s

bankers; and

(f) information regarding any current legal or

arbitration proceedings or dispute in which the

tenderer is involved, provided that the information

referred to shall be confined to matters of direct

interest to the award or performance of the

contract.

Transparenc

y and

fairness

10.-(1) A procuring entity shall maintain adequate

written records of all procurement, selection or disposal

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GN. No. 446 (contd.)

proceedings in which it is involved, and such records shall

prescribe tenderers who have responded to advertisements or

were approached to tender or to submit expression of interest

or proposal, the successful tenderers, the unsuccessful

tenderers and the reasons.

(2) Subject to sub regulation (1), the records shall be

made accessible to any authorised person or body, and part of

it, as specified in these Regulations, shall be published in the

Journal and Tenders Portal.

(3) Without prejudice to sub-regulation (2),

information relating to project particulars shall be made

available to the general public in a manner and format as shall

be prescribed in the guidelines issued by the Authority

(4) A procuring entity shall ensure that payments due

to tenderer are made properly and promptly in accordance

with the terms of each procurement contract entered into, with

a view to maintain the credibility and creditworthiness of a

procuring entity, and the procuring entity shall ensure that the

commitments are recorded against the allocated funds before

any contract is signed.

Donor

funded

procurement

11.-(1) In dealing with donor funded procurement, the

procuring entity shall observe the provisions of section 4(1) of

the Act.

(2) A procuring entity shall not seek clearance of

tender documents or award recommendations from a foreign

government, agency or institution that extended the loan,

credit or grant before obtaining internal clearance of the same

from an appropriate approving authority.

(3) To the extent that the clearance or approval of the

appropriate internal approving authority conflict with the

external clearance or approval of an external approving

authority arising out of the loan or credit or grant agreement,

the clearance or approval of the external approving authority

shall prevail, but in all other respects, the internal clearance or

approval shall prevail.

Public Procurement

GN. No. 446 (contd.)

Form of

communicati

12.-(1) Subject to the provisions of these Regulations

communication between tenderers and a procuring entity shall

be in written or electronic form that provides a record of the

content of the communication.

(2) Communications between a tenderer and a

procuring entity may be made by means of communication

that does not provide a record of the content of the

communication, provided that, immediately thereafter,

confirmation of the communication is given to the recipient of

the communication in a form which provides a record of the

confirmation.

(3) The procuring entity shall not discriminate against

or among tenderers on the basis of the form in which they

transmit or receive documents, notifications, decisions or other

communications.

(4) All communications to a tender board shall be

addressed to the secretary of tender board through the postal,

physical or electronic means.

Clarification

and

modification

s of

solicitation

documents

13.-(1) A tenderer may request a clarification of the

solicitation documents from a procuring entity, provided that

such request is submitted to a procuring entity at least:

(a) in the case of competitive tendering methods,

fourteen days prior to the deadline for the

submission of the tenders; and

(b) in the case of non competitive tendering methods,

three days prior to the deadline for the submission

of the tenders.

(2) The procuring entity shall, within three working

days after receiving the request for clarification, communicate

in writing to all tenderers to which the procuring entity has

provided the solicitation documents without identifying the

source of the request so as to enable the tenderers to take into

account the clarification received in the preparation of their

tenders.

(3) At any time prior to the deadline for submission

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GN. No. 446 (contd.)

of tenders, the procuring entity may, for any reason, whether

on its own initiative or as a result of a request for clarification

by a tenderer, modify the solicitation documents by issuing an

addendum.

(4) The addendum shall be communicated promptly

to all tenderers to which the procuring entity has provided the

solicitation documents and shall be binding on those tenderers

provided that the procuring entity shall extend the tender

period if deemed necessary.

(5) Where it is decided to extend the submission date,

the notice of any extension of the deadline shall be given

promptly to tenderers to which the procuring entity provided

the solicitation documents.

Rules

concerning

documentary

evidence

provided by

tenderers

14. Where a procuring entity requires the

authentication of documentary evidence provided by tenderers

to demonstrate their qualifications in procurement or disposal

proceedings, the procuring entity shall not impose any

requirements as to the authentication of the documentary

evidence other than those provided for in the relevant written

laws.

Record of

procurement

or disposal

proceedings.

15.-(1) A procuring entity shall maintain a record of

the procurement or disposal proceedings containing at a

minimum, the following information:

(a) a brief description of the goods, works or

services to be procured, or of assets to be

disposed of;

(b) the names and addresses of tenderers who were

pre-qualified, short listed or selected and invited

to submit tenders including the procedure used

to select them;

submitted tenders and the name and address of

the tenderers with whom the procurement or

disposal contract is entered into and the contract

price;

Public Procurement

GN. No. 446 (contd.)

(d) information relating to the qualifications, or lack

thereof, of tenderers that submitted tenders;

(e) the price, valuation of assets or the basis for

determining the price, and a summary of the

other principal terms and conditions of each

tender and of the procurement or disposal

contract, where these are known to the procuring

entity;

(f) a summary of the evaluation and comparison of

tenders, including the application of any margin

of preference pursuant to these Regulations;

(g) where all tenders are rejected pursuant to

regulation 17, a statement to that effect and the

grounds thereof, in accordance with regulations

17(1) and 17(2);

(h) where procurement, selection or disposal

proceedings did not result in a procurement or

disposal contract, a statement to that effect and

of the grounds thereof;

(i) the information required for rejection of a

tender as provided under regulation 7(3);

(j) method of selection used and justification, if

other than competitive selection process;

(k) a statement required of the grounds and

circumstances on which the procuring entity

relied to justify the selection of the method of

procurement used in procurement proceedings as

provided to regulation 141 (3);

(l) a statement of the grounds and circumstances

relied upon by the procuring entity for imposing

the limitation in procurement or selection

proceedings in which the procuring entity limits

participation on the basis of nationality, as

provided in regulation 9(3);

(m) a summary of any requests for clarification of

the pre-qualification, request for expression of

interest or solicitation documents or request for

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GN. No. 446 (contd.)

proposals, the responses thereto as well as a

summary of any modification of those

documents; and

(n) a summary of all complaints lodged by tenderers

before the award of the contract and decisions

thereof.

(2) The procuring entity shall, within fourteen days

from the date of contract award, submit to the Authority, the

records referred to in sub regulation (1) for publication in the

Journal and Tenders Portal.

(3) The record referred to in of sub-regulation (1) (a)

and (b) shall, on request, be made available to any person

within fourteen days of the submission of such request.

(4) The part of the record referred to in sub-

regulation (1) (c) to (i) shall, on request, be made available to

tenderers that submitted tenders or applied for pre-

qualification, or to any other user of such information within

fourteen days after:

(a) a tender has been accepted; or

(b) procurement selection or disposal proceedings

have been terminated without resulting in a

procurement or disposal contract.

(5) The procuring entity shall not disclose

information referred to in sub regulation (1) (d) to (e) except

when ordered by the Authority, Appeals Authority or a

competent court and subject to the conditions of such order,

and where-

(a) the disclosure of such information would-

(i) be contrary to law;

(ii) impede law enforcement;

(iii) not be in the public interest;

(iv) prejudice legitimate commercial interests of

the parties; or

(v) inhibit fair competition; or

(b) the information relates to the examination,

evaluation and comparison of tenders and tender

prices, other than the summary referred to in sub-

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GN. No. 446 (contd.)

regulation (1) (f).

(6) The records under this regulation shall be kept for

a period of not less than five years from the date of completion

of the contract and may be made available within a reasonable

time during that period to the Minister and the Controller and

Auditor General, the Authority or any other officer authorised

by the accounting officer; provided that where special

circumstances demand such records may be kept for not less

than seven years.

(7) The procuring entity shall not be liable to

tenderers for damages owing solely to a failure to maintain a

record of the procurement or selection proceedings in

accordance with these Regulations.

Rejection of

all tenders

16.-(1) Subject to approval by the tender board, and if

so specified in the solicitation documents, the procuring entity

may, prior to awarding the contract and notwithstanding the

stage reached in the proceedings leading to the conclusion of

the contract:

(a) either decide to reject all tenders at any time or

annul the tender or selection proceedings in

accordance with sub-regulation (2) and order that

the proceedings be recommenced, if necessary,

using another method; or

(b) where the project is divided into lots, award only

certain lots and possibly decide that the others be

the subject of another tender or other tenders, if

necessary, using another method.

(2) Rejection of a tender or selection proceeding may

take place where:

(a) no tender or proposal is responsive to the tender

documents or request for proposals;

(b) no tender or proposal satisfies the criteria for the

award of the contract as set out in the tender

documents or request for proposal;

been altered;

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GN. No. 446 (contd.)

(d) exceptional circumstances render normal

performance of the contract impossible;

(e) every tender or proposal received exceeds the

budgetary resources available;

(f) the tenders or proposals received contain serious

irregularities resulting in interference with the

normal play of market forces;

(g) funds voted or earmarked for the procurement have

been withheld, suspended or have otherwise not

been made available; or

(h) there has been no competition.

(3) The accounting officer shall apply for the

approval of the Authority prior to rejecting all tenders.

(4) The Authority shall consider the application for

rejection of all tenders and shall respond to the procuring

entity within five days of receipt of such application.

(5) In the event of rejection of all tenders or

annulment of selection proceeding, all tenderers who

submitted tenders or proposals shall be notified by the

procuring entity within seven days after approval from the

Authority.

(6) Neither the Authority nor the procuring entity

shall incur liability solely by virtue of invoking sub-

regulations (1) and (3) towards tenderers that submitted

tenders.

(7) When the rejection of all tenders or annulment of

selection proceeding is caused by circumstances which do not

necessitate the opening of tenders, the unopened and sealed

envelopes containing the price proposals, where appropriate,

and in any event, the other elements of the tender or proposal

shall be returned to the tenderers.

(8) Where all tenders are rejected pursuant to this

regulation:

(a) the procuring entity shall review the causes

justifying the rejection and consider whether

revision of the specifications or terms of reference

or modification in the project or both are required

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GN. No. 446 (contd.)

before inviting new tenders or opt for another

procurement method;

(b) new tenders shall be requested from tenderers who

were invited to submit tenders in the first instance

plus new tenderers, and a reasonable amount of

time shall be allowed for the submission of the new

tenders; or

appropriate, require that the whole tender or

selection proceeding be recommenced.

Rejection of

abnormally

low tender

17.-(1) A procuring entity may reject a submission if

the procuring entity has determined that the price in

combination with other constituent elements of the submission

is abnormally low in relation to the subject matter of the

procurement and raise concerns with the procuring entity as to

the ability of the tenderer that presented that submission to

perform the procurement contract.

(2) Before rejecting an abnormally low tender the

procuring entity shall:

(a) request an explanation of the tender or of those

parts which it considers contribute to the tender

being abnormally low;

(b) take account of the evidence provided in

response to a request in writing; and

tender being abnormal.

(3) The decision of the procuring entity to reject a

submission in accordance with this regulation and reasons for

the decision shall be recorded in the procurement proceedings

and promptly communicated to the tenderer concerned.

(4) The accounting officer shall seek the approval of

the Authority prior to rejecting a tender under this regulation.

(5) Neither the Authority nor the procuring entity

shall incur liability solely by virtue of invoking sub-

regulations (1) and (4) towards tenderers that submitted

tenders.

Public Procurement

GN. No. 446 (contd.)

(6) For purposes of this regulation “an abnormally

low tender” means, in the light of the procuring entity’s

estimate and of all the tenders submitted, the tender appears to

be abnormally low by not providing a margin for normal

levels of profit.

Publication

of general

procurement

notice

18.-(1) A procuring entity intending to procure goods,

works or services shall prepare its general procurement notice

based on its annual procurement plan and submit it together

with its summary to the Authority for publication in the

Journal and Tenders’ Portal.

(2) The summary shall indicate the name of the

procuring entity, total approved budget, the budget for all

planned procurement, the number of tenders and total

estimated values in each category of works, goods,

consultancy services, non consultancy services and disposal

of public assets and where the full tender details should be

obtained.

(3) A procuring entity shall publish the summary in

the Journal and a full general procurement notice in the

Tenders’ Portal at least one month prior to any publication or

notification of a tender or a request for proposals to

prospective tenderers.

(4) Any revisions made by the procuring entity to the

general procurement notice shall be posted in the Journal and

Tenders Portal.

Publication

of specific

procurement

notice

19.-(1) Procuring entities shall prepare a tender notice

for national and international tenders and submit the same to

the Authority for publication in the Journal and Tenders

Portal.

(2) Subject to sub-regulation (1), procuring entities

shall advertise each approved tender notice in accordance with

the First Schedule to these Regulations.

(3) In the case of international tendering, procuring

entities may publish a similar notice in appropriate foreign or

international publications or professional or trade journals

Public Procurement

GN. No. 446 (contd.)

which are likely to be seen by the greatest number of potential

tenderers.

Publication

procurement

awards

and contract

execution

20.-(1) A procuring entity shall submit contract award

information in respect of any procurement made without

regard to the method of procurement used to the Authority

within fourteen days from the date of award for publication in

the Journal and Tenders Portal.

(2) Subject to sub-regulation (1), the contract award

information shall be in a prescribed form issued by the

Authority and shall contain the-

(a) names of participants of the tender in question;

(b) read out tender price;

(d) name of the winner of the tender and the

contract amount;

(e) date when the award was made; and

(f) contract period.

(3) After completion of the contract, the accounting

officer shall, within twenty one days from the date of

completion of the contract, provide the Authority with

complete information on contract implementation including

the original contract period, the final contract period, original

approved contract sum and the final contract amount paid to

the tenderer, and any deductions made by the procuring entity.

Fees for

services

rendered by

the

Authority

21. The Authority shall charge fees for services

rendered by it as prescribed in the Second Schedule to these

Regulations.

Rules

concerning

description

of goods,

works,

services or

assets

22.-(1) Any terms, specifications, plans, drawings and

designs prescribing the-

(a) technical or quality characteristics of the goods,

works or services to be procured, and

(b) requirements concerning testing and test methods,

packaging, marking or labelling or conformity

certification, and

Public Procurement

GN. No. 446 (contd.)

(d) description of services that create obstacles to

participation, including obstacles based on

nationality of tenderers in the procurement

proceedings,

shall not be included or used in the pre-qualification

documents, solicitation documents or other documents for

solicitation of tenders.

(2) Any terms, specifications, plans, drawings,

designs and requirements or descriptions of goods,

construction or services shall be based on the relevant

objective, technical and quality characteristics of the goods,

construction or services to be procured and no reference to a

particular trade mark, name, patent, design, type, specific

origin or producer shall be issued.

(3) Where no other sufficiently, precise or intelligible

way of describing the characteristics of the goods, works or

services to be procured is provided, the words “or equivalent”

shall be used.

(4) Standardized features, requirements, symbols and

terminology relating to the technical and quality

characteristics of the goods, works or services to be procured

shall be used, where available, in formulating any statement of

requirements, specifications, plans, drawings and designs to be

included in the pre-qualification documents, solicitation

documents or other documents for solicitation of proposals,

offers or quotations.

(5) Due regard shall be made for the use of

standardized trade terms, where available, in formulating the

terms and conditions of the procurement contract to be entered

into as a result of the procurement proceedings and in

formulating other relevant aspects of the pre-qualification

documents, solicitation documents or other documents for

solicitation of tenders.

(6) Solicitation documents or notices for disposal of

assets by tender, and any additional information made

available to a prospective tenderer shall specify that the asset

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GN. No. 446 (contd.)

is to be sold on “as is, where is” basis and shall disclaim

liability after sale.

(7) Notwithstanding sub-regulation (6), a procuring

entity shall give a full and accurate description of an asset to

be disposed of.

(8) The description of an asset shall, where

appropriate, address the risk and cost of dismantling and

removing the asset upon completion of the disposal

proceedings.

Tender

Security

23.-(1) Where the procuring entity requires tenderers

submitting tenders to provide a tender security-

(a) the requirement shall apply to all tenderers;

(b) the solicitation documents shall stipulate that

the issuer of the tender security and the

confirmer, if any, of the tender security, and the

form and terms of the tender security, have to be

acceptable to the procuring entity;

proposed issuer or of any proposed confirmer

does not preclude the procuring entity from

rejecting the tender security on the grounds that

the issuer or the confirmer, as the case may be,

has become insolvent or otherwise lacks credit

worthiness.

(2) Notwithstanding the provision of sub-regulation

(1) (b) and unless the acceptance by the procuring entity of a

tender security would be in violation of laws of Tanzania, a

procuring entity shall not reject a tender security on the

grounds that the tender security was not issued by an issuer in

Tanzania if the tender security and the issuer otherwise

conform to the requirements prescribed in the solicitation

documents,.

(3) Prior to submitting a tender, a tenderer may

request the procuring entity to confirm the acceptability of a

proposed issuer of a tender security, or of a proposed

confirmer and the procuring entity shall respond promptly to

Public Procurement

GN. No. 446 (contd.)

such request.

(4) The tender security or tender securing declaration

shall be in accordance with the form of the bid security or bid

securing declaration included in the solicitation documents or

any other form approved by the procuring entity prior to the

tender submission.

(5) The tender security, at the tenderer’s option, shall

be in the form of a certified cheque, a letter of credit, a bank

guarantee from a reputable bank or an insurance bond from a

reputable insurance firm.

(6) The procuring entity shall specify, in the

solicitation documents, any requirements with respect to the

issuer and the nature, form, amount and other principal terms

and conditions of the required tender security.

(7) Any requirement that refers directly or indirectly

to conduct by a tenderer submitting the tender shall not relate

to conduct other than:

(a) withdrawal or modification of the tender after

the deadline for submission of tenders, or before

the deadline, if so stipulated in the solicitation

documents;

(b) disagreement to arithmetical correction made to

the tender prices;

contract if required by the procuring entity to do

so;

(d) failure to provide a required security for the

performance of the contract or to comply with

any other condition precedent to signing the

procurement or disposal contract specified in the

solicitation documents.

(8) Tenderers shall be allowed to submit bank

guarantees directly issued by a bank of their choice, or

insurance bonds issued directly by a firm of their choice

located in any country.

Public Procurement

GN. No. 446 (contd.)

Validity of

tender

security or

declaration

24. The tender security or tender securing declaration

shall remain valid for a period of not less than twenty eight

days beyond the validity period of the tender, in order to

provide the procuring entity time to act if the security is called

for.

Release of

tender

security for

unsucceful

tenderers

25. The tender securities of unsuccessful tenderers

shall be released not more than thirty days after the expiration

of the tender validity period, as extended where appropriate in

accordance with regulation 191 (3) and (4) or upon the award

of contract, whichever is earlier.

Discharge of

tender

security or

tender

securing

declaration

26. The tender security or tender securing declaration

of the successful tenderer shall be discharged when the

tenderer has signed the contract and furnished the required

performance security to the satisfaction of the procuring

entity.

Application

of tender

securing

declaration

27. Tender securing declaration shall apply for

procurement the value of which does not exceed the threshold

for exclusive preference as provided in the Ninth and

Thirteenth Schedules to these Regulations.

No claim by

procuring

entity to

tender

security

amount

28. The procuring entity shall make no claim to the

amount of the tender security, and shall promptly return, or

procure the return of the tender security document, after

whichever of the following that occurs earliest:

(a) the expiry of the tender security;

(b) the entry into force of a procurement contract

and the provision of a security for the

performance of the contract if such a security is

required by the solicitation documents;

tenders pursuant to these Regulations;

(d) the withdrawal of the tender prior to the deadline

for the submission of tenders, unless the

solicitation documents stipulate that no such

Public Procurement

GN. No. 446 (contd.)

withdrawal is permitted.

Performance

security

29.-(1) The procuring entity shall require the

successful tenderer to submit a performance security to

guarantee the faithful performance of the contract and

payment of all labourers, suppliers, mechanics and

subcontractors, if any.

(2) The procuring entity shall specify in the

solicitation documents any requirements with respect to the

issuer and the nature, form, amount and other principal terms

and conditions of the required performance security.

(3) Within a period prescribed in the tender

documents, the successful tenderer shall, after receipt of the

notice of acceptance, furnish the procuring entity with the

performance security in accordance with conditions of

contract and in the form prescribed in the tender documents.

(4) The procuring entity may require the successful

tenderer to submit the performance security in any of the

following forms:

(a) cash, certified cheque, cashier’s or manager’s

cheque, or bank draft;

(b) irrevocable letter of credit issued by a reputable

commercial bank or in the case of an irrevocable

letter of credit issued by a foreign bank, the

letter shall be confirmed or authenticated by a

reputable local bank;

bank or, in the case of a successful foreign

tenderer, bonded by a foreign bank;

(d) surety bond callable upon demand issued by any

reputable surety or insurance company; or

(e) any other forms.

(5) Where circumstances necessitate the amendment

of the contract after signature, and such amendment is

effected, the procuring entity shall require the successful

tenderer or consultant to provide additional performance

Public Procurement

GN. No. 446 (contd.)

security to cover any cumulative increase of more than ten

percent of the contract price.

(6) The performance security shall be kept by the

procuring entity until the final completion of the contract and

shall be released after issuance of the certificate of acceptance

of the final report or certificate of completion of works or

services if there is no claim filed against the tenderer, contract

guarantor or the surety company.

(b) Preference and exclusive preference to local persons or firms

Promotion

of local

industry

30. The purpose of these Regulations is to promote

local industry and support socio-economic development by

defining the-

(a) target group and eligibility requirements for

benefitting from the preference and reservations

schemes;

(b) percentage margin of preference, where

applicable;

for specified target groups; and

(d) means of measuring its effectiveness in

achieving the objectives.

Eligibility

31. A person or a firm is qualified to benefit from the

preference schemes if that person or firm meets the criteria

specified in section 54 of the Act and-

(a) has the necessary qualifications, capability, experience

and, where appropriate, resources, equipments and

facilities to provide the goods or services intended to be

procured;

(b) has the legal capacity to enter into procurement

contract;

process of being wound up, and is not the subject of

legal proceedings relating to any subject matter under

this paragraph;

Public Procurement

GN. No. 446 (contd.)

(d) is not debarred from participating in procurement

proceedings under section 62 of the Act; and

(e) is registered by the Authority under regulation 32.

Registration

for purposes

preference

schemes

32.-(1) A tenderer who wishes to be granted

preference according to these regulations shall apply for

registration with the Authority in the form set out in the

Eighteenth Schedule.

(2) In order to avoid duplication of efforts, where a

particular group of tenderers are registered by a statutory

body, the Authority shall liaise with such statutory body to

obtain necessary information required to establish eligibility

for the preference scheme.

(3) The Authority shall request all necessary details to

establish eligibility for preference scheme for tenderers who

are not registered by the Authority or any statutory body.

(4) In addition to registration to qualify for

preference, the Authority shall for the purpose of

understanding the procurement market, establish and maintain

a register of tenderers and shall post the register in the Journal

and Tenders Portal, which shall contain-

(a) reliable and up-to-date information on the

competency of existing tenderers in the market,

and the structure of the market for various

services, supplies or specialities; and

(b) a record of current or past contracts and

performance by tenderers.

(5) Except where a tenderer intends to benefit from a

preference scheme pursuant to regulations 33 and 39, a

tenderer shall not, as a condition of participation in any

procurement or disposal process, be required to register with

the Authority.

(6) A procuring entity shall, in granting a margin of

preference or applying exclusive preference, use the

Authority’s register of tenderers to determine whether or not

tenderers are qualified for margin of preference or exclusive

preference.

Public Procurement

GN. No. 446 (contd.)

National

preference

33.-(1) A procuring entity shall, when procuring

goods, works or services by means of international and

national competitive tendering or selection, grant a margin of

preference for the benefit of local firms or association between

local and foreign firm tendering for works or services and for

certain goods manufactured, mined, extracted or grown in the

United Republic.

(2) Tenderers who are citizens of Tanzania or

associations between local and foreign firms, shall be eligible

to be granted a margin of preference as provided for in sub-

regulation (1) only if they meet the criteria provided in section

54 of the Act, and are registered by the Authority pursuant to

regulation 32 or any other statutory body acceptable to the

Authority.

Preference

to local

persons or

firms

34. A procuring entity shall grant a margin of

preference of up to ten percent to local firms or association

between local and foreign firms as prescribed in the Ninth

Schedule to these Regulations where the contracts for works,

consultancy or non consultancy services are to be awarded on

the basis of-

(a) international tendering or selection; or

(b) national competitive tendering or selection in

which foreign firms are participating.

Inclusion of

local firms

and experts

consultancy

contracts

35.-(1) In the case of consultancy assignments carried

out by foreign firms, procuring entities shall ensure that

inclusion of local experts and local firms in the assignments is

achieved through apportioning proper weight in the criteria for

evaluation to encourage partnering of foreign and local firms.

(2) A procuring entity shall, for the purpose of sub-

regulation (1), assign weights as follows:

(a) in the criteria for participation of local firms in the

assignment a maximum weight of fifteen percent

shall be included in the request for proposal, and

firms that demonstrate inclusion of local firms up

Public Procurement

GN. No. 446 (contd.)

to fifty percent shall be granted a full score;

(b) in the criteria for participation of national experts in

the assignment a maximum weight of ten percent

shall be included in the request for proposal, and

firms that demonstrate that more than sixty percent

of their key staff are Tanzanian shall be granted a

full score.

Use of local

experts in

goods,

works and

non-

consultancy

services

contracts

36. When applying the margin of preference in

respect of works or non-consultancy services, a procuring

entity shall comply with the guidelines issued by the

Authority, and shall consider-

(a) in addition to shareholding structure in the joint

venture, the extent of inclusion of key local staff

in the joint venture;

(b) the extent of use of materials locally

manufactured, produced or mined.

Preference

to local

goods

37. In contracts for goods and related services to be

awarded on the basis of international competitive tendering or

national competitive tendering, procuring entities shall grant a

margin of preference of up to fifteen percent to domestically

manufactured or produced goods and related services as

prescribed in the Ninth Schedule to these Regulations.

Applicability

of margin of

preference

38.- The margin of preference shall only be applied in

the cost comparison of the submitted tenders and the

calculation of the margin of preference in the course of

evaluating tenders, and shall, in addition, be in accordance

with the conditions and methods prescribed in Ninth Schedule

to these Regulations.

Exclusive

preference

scheme to

local persons

or firms

39.-(1) The procurement of works, goods,

consultancy or non consultancy services with a value not

exceeding the amount prescribed in the Ninth and Thirteenth

Public Procurement

GN. No. 446 (contd.)

Schedules to these Regulations, shall be reserved exclusively

for local persons or firms who meet the requirements of

section 51 of the Act.

(2) A joint venture or an association between a

foreign and local firm in which the contribution of the local

firm in that joint venture or association is greater than sixty

percent, shall also be eligible to participate in the exclusive

preference scheme.

(3) In applying exclusive preference to local

contractors, consultants or service providers, a procuring

entity shall ensure that the selected person or firm is capable

of providing quality works or services.

(4) The Minister may, on the advice of the Authority,

grant special consideration for procurement of goods, services

or works for the purpose of promoting the growth of local

companies or public owned local companies in which the

Government has shares.

Preferences

to local

communities

40. A procuring entity may reserve works, goods,

consultancy or non consultancy services with a value not

exceeding the amount prescribed in the Ninth and Thirteenth

Schedules to these Regulations to local firms who are based

and operate in local government authorities or regions, except

where it is established that local capacity is not available.

Tender

Securing

Declaration

41.-(1) Tender securities shall not be required from

tenderers participating in the exclusive preference scheme.

(2) Notwithstanding sub-regulation (1), tenderers shall

be required to complete and sign the Tender Securing

Declaration Form set out in the Nineteenth Schedule.

(3) Any tenderer who fails to comply with the terms

of the Tender Securing Declaration Form shall be liable to

debarment pursuant to section 62 of the Act.

Splitting of

tenders

42.- (1) A procuring entity may, for the purpose of

ensuring maximum participation of local firms in public

procurement, split tenders in practicable size and quantities

Public Procurement

GN. No. 446 (contd.)

in accordance with Section 49 of the Act.

(2) A procuring entity shall divide a tender into

several lots of the same size and invite firms to tender for a

single or several lots, but shall limit the award of contract to a

number of lots that will allow many firms to participate.

(3) The size of the packages shall depend on the

capability of local firms targeted to benefit from the exercise.

(4) A procuring entity shall submit to the Authority

details of the tender that is targeted for splitting, and the

Authority shall, within seven days, give its approval to the

procuring entity to proceed with the tender process.

Capacity

building of

local firms

43.-(1) A procuring entity may, after consultation

with relevant statutory bodies, set aside contracts to be used

for the purpose of capacity building of local firms.

(2) Where individual firms lack the capacity to

execute the contracts, the firms may form joint ventures with a

view to enhancing their capacity.

(3) Reserved contracts for capacity building shall not

be subjected to competitive tendering and in such case the

procuring entity shall use negotiated procurement methods

stipulated in these Regulations.

(4) The relevant statutory bodies shall ensure that

necessary support is provided to the local firms involved in the

capacity building scheme to enable them perform in

accordance with the terms of contract.

Timely

payment of

certificates

or invoices

44.-(1) For purposes of supporting the growth of local

firms and enabling such firms to meet their contractual

obligations, procuring entities shall ensure that timely

payments are made to the tenderers.

(2) A procuring entity shall, before signing a contract

under the preference or reservation scheme, ensure that

commitments are recorded against voted funds as stipulated in

regulation 10(3) of these Regulations.

Public Procurement

GN. No. 446 (contd.)

Monitoring

Compliance

45.-(1) Application of the preference schemes by

procuring entities shall be monitored by the Authority through

procurement audits.

(2) All procurement awards by procuring entities

where exclusive preference scheme was applied shall be

reported to the Authority..

(3) The Authority shall maintain a database of all

contract awards under preference scheme and shall publish it

in the Journal and Tender Portal.

Delegation

and

contracting

out

procurement

functions

46.-(1) Subject to the provisions of the Act and these

Regulations, an accounting officer may-

(a) delegate certain procurement and disposal by

tender functions of the accounting officer to a

member of staff of that entity;

(b) delegate certain procurement and disposal by

tender functions of the tender board or

procurement management unit to a sub-division

of that entity; and

tender functions of the tender board,

procurement management unit or user

department to another procuring entity,

procurement agent or the Agency

(2) Delegation of functions referred to under

paragraphs (a) and (b) of sub-regulation (1) shall be within the

procuring entity and contracting out of functions referred to

under paragraphs (c) of sub-regulation (1) shall be outside the

procuring entity.

(3) Notwithstanding delegation under sub-regulation

(1), the accounting officer shall remain accountable for all

decisions taken under the delegated authority.

Public Procurement

GN. No. 446 (contd.)

(4) Where a function is delegated or contracted out,

an accounting officer shall ensure the independence of

functions and powers in accordance with section 41 of the

Act.

(5) A function may be delegated or contracted out

where it is cost effective because of the work load or nature of

work or lack of technical capacity or where the structure of the

procuring entity does not allow the formation of the tender

board or a procurement management unit.

(6) Delegation shall not be used for the purpose of

avoiding responsibilities and accountability under the Act,

these Regulations or guidelines issued under the Act.

(7) A person to whom a procurement function is

delegated or a firm or procuring entity to which the

procurement functions has been contracted out shall, at all

times, comply with the Act, these Regulations, guidelines

issued under the Act and any conditions of the delegation or

contracting.

Delegation

of the

Accounting

Officer own

functions

47.-(1) An accounting officer may delegate in writing

his functions to a member of staff of the procuring entity

except for the following functions:

(a) establishment of and appointment of members of a

tender board;

(b) establishment of a procurement management unit;

(d) submission of reports of findings in respect of

complaints to the Authority

(2) Where the functions of accounting officer of a

procuring entity are delegated to a member of tender board or

a staff of a procurement management unit, such member or

staff, as the case may be, shall not be involved in the activities

of the respective tender board or procurement management

unit while exercising the delegated authority.

(3) An accounting officer shall not appoint a person

to a tender board if he delegates to that person his functions on

a regular basis.

Public Procurement

GN. No. 446 (contd.)

Delegations

of the

functions of

tender board

procurement

management

unit

48.-(1) An accounting officer may delegate any of the

procurement or disposal by tender functions of the tender

board or procurement management unit to a sub-division of

the procuring entity subject to any value limitations or other

exceptions where:

(a) the procuring entity has a large procurement or

disposal by tender workload which would be

more effectively managed by the sub-division;

(b) the procuring entity has a specialized

procurement or disposal by tender workload

which would be more effectively managed by

the sub-division;

the head office of the procuring entity and a

delegation would reduce practical and logistical

problems or reduce costs;

(d) the sub-division operates in practical terms as an

independent entity and would operate more

effectively under delegated authority; and

(e) any other reasonable circumstances arises.

(2) Where an accounting officer delegates to a sub-

division, he shall-

(a) appoint a delegated tender board for the

respective sub-division; and

(b) cause to be established a delegated procurement

management unit for the respective sub-division.

(3) When procurement or disposal functions are

delegated to a sub-division of the procuring entity, the tender

board and procurement management unit of the procuring

entity shall-

(a) ensure the process is in compliance to the

provisions of the Act and remain responsible for

work and decisions of the bodies to whom the

procurement or disposal function by tender is

delegated;

Public Procurement

GN. No. 446 (contd.)

(b) submit consolidated reports covering all the

procurement or disposal activities of the

procuring entity to the Authority or any other

body;

behalf of the body to whom the procurement or

disposal by tender functions are delegated; and

(d) advise the body to whom the procurement of

disposal functions are delegated on all matters

relating to public procurement and disposal of

public assets by tender.

(4) A delegated tender board and procurement

management unit shall-

(a) submit such reports to the main tender board of

the procuring entity as may be required;

(b) give a copy of the minutes of all its meetings to

the main tender board of the procuring entity;

procurement management unit on all matters

relating to public procurement and disposal of

public assets by tender;

(d) request the main tender board and procurement

management unit to act on its behalf on matters

requiring liaison with the Authority or any other

body.

(5) An accounting officer shall not delegate any of

the following functions of procurement management unit to a

sub-division of the procuring entity:

(a) preparing reports required for submission to the

tender board or accounting officer;

(b) providing overall guidance on procurement

development within the procuring entity;

officer in respect to delegation of functions;

(d) coordinating the procurement and disposal

activities of all the departments of the procuring

entity;

Public Procurement

GN. No. 446 (contd.)

(e) maintaining a list or register of all awarded

contracts;

(f) planning and managing all procurement and

disposal by tender process of the procuring

entity.

(6) An accounting officer may revoke the delegation

of the authority through written instructions to the holder of

the delegated function in the case-

(a) the holder of the delegated functions is not

complying with the Act, these Regulations,

guidelines made under the Act and conditions of

the delegation;

(b) the circumstances prompting the delegation have

changed;

(d) of any other justifiable reason.

Contracting

out to

another

procuring

entity

49.-(1) Subject to the provisions of the Act, an

accounting officer may contract out entire procurement or

disposal by tender process to another procuring entity:

(a) where the procuring entity is unable to comply

with the Act, these Regulations or guidelines due

to its size or any other factor;

(b) where the accounting officer decides that it

would be more economical or efficient to

contract out the function; or

(2) The accounting officer may contract out limited

procurement or disposal by tender function to another

procuring entity where-

(a) other procuring entity has specialized

knowledge, expertise or experience in the

subject matter of the procurement or disposal by

tender;

(b) a requirement is subject to common

procurement or disposal by tender;

Public Procurement

GN. No. 446 (contd.)

(d) it would be more economical or efficient to

contract out a requirement; or

(e) any other reasonable circumstances.

(3) Where the procurement or disposal by tender

function is contracted out to another procuring entity, the

accounting officers of the two procuring entities shall agree

on-

(a) any function that may be excluded from the

contract in the case of entire contracting out;

(b) the type of requirements or projects to be subject

of the contract, in the case of limited contracting

out;

procurement or disposal by tender requirement;

(d) reporting, monitoring, procedures and

responsibilities;

(e) any limitations or exceptions to the contract ;

and

(f) any costs to be paid.

(4) An agreement for contracting out shall be

confirmed in writing and signed by the accounting officers of

the two procuring entities.

(5) Where a limited procurement or disposal by

tender requirements are contracted out to another procuring

entity, the institutional arrangements for the approval of the

requirements shall be agreed upon by the accounting officers,

but may include-

(a) approval of the tender board of the procuring

entity initiating the requirements;

(b) approval of the tender board of the procuring

entity to which the procurement has been

contracted;

initiating tender board may observe or

participate in the meetings of the tender board to

which the procurement is contracted;

Public Procurement

GN. No. 446 (contd.)

(d) a requirement for approval by a joint tender

board established by both procuring entities

(6) The procuring entity shall furnish the Authority

with the copy of the contract entered between the two entities.

Contracting

out to

procurement

agent

50.-(1) A procuring entity may procure the services

of a procurement agent to undertake any or all of those

procurement or disposal functions which would otherwise be

carried out by that entity if the procurement functions are

carried out in conformity with the Act and in accordance with

these Regulations.

(2) A procuring entity may contract out any of the

following procurement and disposal by tender functions of a

procuring entity to a procurement agent:

(a) advising user department on an individual

procurement or disposal by tender methods or

practice;

(b) recommending appropriate procurement and

disposal methods;

(i) a statement of requirements or terms of

reference;

(ii) solicitation documents and any

clarifications or amendments;

(iii) contract documents;

(iv) contract amendments;

(v) receiving bids;

(vi) coordinating bid openings; and

(vii) managing the bid evaluation process.

(3) A procuring entity may contract out the following

contract management functions of a user department to a

procurement agent:

(a) administering and managing contracts;

(b) reporting to the procurement management unit

any departure from the terms and conditions of

the awarded contract;

Public Procurement

GN. No. 446 (contd.)

terms and conditions of the contract; or

(d) certifying invoices for payment to consultants.

(4) A procuring entity shall-

(a) be responsible for instructing any procurement

agent that may be appointed to observe the

relevant provisions of the Act and of these

Regulations; and

(b) authorise a procurement agent to act on its

behalf to ensure that any procurement is

reviewed and authorised by the appropriate

approving authority before any contract is

placed.

(5) The procurement agent shall, on behalf of the

procuring entity, comply with the procurement procedures

prescribed in these Regulations including the use of standard

tender documents and guidelines issued by the Authority.

(6) Where the procurement, disposal by tender or

contract management function is contracted out to a

procurement agent, the accounting officer and the

procurement agent shall enter into an agreement specifying-

(a) type of requirements or projects to be subject of

the contract;

(b) the mechanism for implementation of a

procurement, disposal by tender or contract

management functions;

procedures and responsibilities;

(d) any limitations or exceptions to the contract ;

and

(e) the payment conditions for any costs involved.

(7) An agreement for contracting out shall be

confirmed in writing and signed by the accounting officers of

a procuring entity and the procurement agent or their duly

authorized representatives.

(8) A procuring entity shall not contract out both the

procurement and disposal by tender functions and the contract

management functions to the same procurement agent where

Public Procurement

GN. No. 446 (contd.)

potential conflict of interest is likely to arise.

(9) The functions of the accounting officer and the

tender board shall not be contracted out to a procurement

agent.

(10) The procuring entity shall furnish the Authority

with a copy of the contract entered between the procuring

entity and the procurement agent.

Disagreemen

t between

the

Accounting

Officer and

the Tender

Board

51. Where the accounting officer disagrees with the

decision of the tender board regarding application or

interpretation of any procurement method, process or practice

by tender under these Regulations, the accounting officer

shall-

(a) return the decision to the tender board for review

giving written reasons for the dissatisfaction;

and

(b) where the accounting officer is not satisfied with

the outcome of the review, request for an

independent review by the Authority stating the

reasons for disagreement.

Disagreemen

ts between

the Tender

Board and

the

procurement

management

unit

52.-(1) Where a tender board disagrees with the

recommendations of the procurement management unit, the

tender board shall return the submission to the procurement

management unit for review and shall, in addition, give

reasons, in writing, for such decision.

(2) Where the tender board is dissatisfied with an

outcome of the review, the chairperson of the tender board

shall refer the matter to the accounting officer for further

review.

(3) Where the tender board disagree with the outcome

of the review by the accounting officer, the tender board shall

refer the matter to the Authority for directives.

Public Procurement

GN. No. 446 (contd.)

Disagreemen

ts between

the

procurement

management

unit and the

user

department

53.-(1) Where a procurement management unit

disagrees with the user department concerning any decision

pertaining to the application or interpretation of any

procurement method, process or practice, the two parties may

jointly consult any two members of the tender board for

review and guidance in resolving the disagreement.

(2) Where the review under sub-regulation (1) fails to

resolve the disagreement, either party may forward the cause

of the disagreement as a submission to the tender board for its

formal decision.

Disagreemen

ts between

the

procurement

management

unit and the

evaluation

committee

54.-(1) Where the evaluation and preparation of the

report is not conducted in accordance with evaluation

guidelines, the procurement management unit shall return the

evaluation report to the evaluation committee for re-

evaluation.

(2) Where the re-evaluation fails to resolve the

disagreement or, where procurement management unit

disagrees with the evaluation committee on any other matter

pertaining to the evaluation report, the procuring management

unit shall refer the matter to the tender board for decision.

(d) Approving authority of procurement and disposal by tender

Approval of

procurement

55.-(1) Any procurement by a procuring entity shall

be authorised by an accounting Officer.

(2) The procurement management unit shall, before

inviting tenders, furnish to the tender board for its approval,

the text of the invitations to tender and the specifications or

the expression of interest and terms of reference, other tender

or proposal and draft contract documents together with a

description of the advertising procedure to be followed for the

tender or proposal, and shall make such modifications in the

said documents or procedures as the tender board shall direct.

(3) Any further modification of the tender or proposal

documents shall require the tender board's approval before it is

issued to the prospective tenderers.

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GN. No. 446 (contd.)

(4) Where tenders are received and evaluated, the

procurement management unit shall furnish to the tender

board, within fourteen day for its review, a detailed report on

the evaluation and comparison of the tenders or proposals

received together with the recommendations for award and

such information as the tender board may request.

(5) The tender board shall, if it determines that the

intended award would be inconsistent with the Act or these

Regulations, promptly inform the procurement management

unit and state the reasons for such determination.

(6) In cases where pre-qualification is required, the

procurement management unit shall, before pre-qualification

is invited, inform the tender board the procedure to be

followed, and shall introduce such modifications in such

procedure as the tender board shall direct.

(7) The list of pre-qualified tenderers, together with a

statement of their qualification and of the reasons for the

exclusions of any applicant for pre-qualification, shall be

furnished by the procurement management unit to the tender

board for the approval of the recommendation and the tender

board shall advise the accounting officer to approve the list

before the applicants are notified of the procuring entity’s

decision.

(8) Subject to sub-regulation (7), the procurement

management unit shall make additions, deletions or

modifications in the list as the tender board may direct except

where the tender board determines that such modifications are

in contradiction with the provisions of the Act and these

Regulations.

Tender

opening

adhoc

committee

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;

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GN. No. 446 (contd.)

or unit within a procuring entity; and

(d) the tenderers or their representatives.

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

the tender board.

Approval by

tender

boards

57.-(1) Tender documents shall be issued with the

approval of the appropriate tender board, which shall examine

the draft tender documents before approving the issue of the

tender.

(2) A tender board shall establish a time and place for

the return of the tenders which shall be specified in the tender

documents.

(3) The tender board shall review the evaluation and

recommendation made by the procurement management unit

and may either-

(a) approve the recommendation and authorise

acceptance of the tender and award a contract in

the form specified in the tender documents; or

(b) refuse to authorise recommendation for award of

the tenders and refer the evaluation back to the

procurement management unit with the reasons

for re-evaluation of the tenders, re-tendering or

other action.

Approval

through

circular

resolution

58.-(1) A decision of the tender board may be made

by the tender board without convening a meeting through a

circular resolution pursuant to the guidelines issued by the

Authority.

(2) For purpose of this regulation, “a circular

resolution” means issuance of the tender board’s decision

without a meeting by circulation of the relevant papers among

members of the tender board for approval, and the expression

of the views of the majority in writing.

(3) Notwithstanding sub-regulation (2), any member

of a tender board is entitled to require the decision be deferred

and the subject matter be considered at a meeting of the tender

board.

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GN. No. 446 (contd.)

(4) Half of the members of the tender board shall

form a quorum of the decision of the tender board through

circular resolution.

Vetting of

contracts by

the Attorney

General

59.-(1) Any formal contract arising out of the

acceptance of tender whose value is fifty million shillings or

more shall be vetted by the Attorney-General before the

contract is signed by the parties.

(2) Subject to sub-regulation (1), a contract whose

value is fifty million shillings and above, which is not vetted

by the Attorney General shall be void.

(3) The accounting officer shall, within three working

days after being notified by the tender board of its award

decision, submit to the Attorney General the draft contract for

vetting.

(4) The Attorney General shall, within twenty one

working days upon receiving the draft contract from the

accounting officer, vet the draft contract and provide

comments to the accounting officer, if any.

(5) The accounting officer shall, upon receiving the

comments on the draft contract from the Attorney General,

incorporate them in the draft contract.

Ratification

of contracts

by Legal

Officer of a

procuring

entity

60.-(1) Any formal contract arising out of the

acceptance of tender and whose value is below fifty million

shillings shall be vetted by a legal officer of a procuring entity

before it is signed by the parties.

(2) A legal officer of a procuring entity shall within

fourteen working days upon receiving the draft contract from

the accounting officer, vet the draft contract and provide

comments to the accounting officers, if any.

(3) Without prejudice to sub-regulation (1), a legal

officer may seek for an advice of the Attorney General in

respect of the contract required to be vetted by that legal

officer.

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GN. No. 446 (contd.)

Contract

alteration

and

amendment

61.- (1) Any amendment to the contract that may

change the original terms and conditions of such contract shall

be prepared by the procurement management unit in

consultation with the user department before it is submitted to

the tender board for approval.

(2) A contract amendment shall not be issued to a

tenderer prior to-

(a) obtaining approval from a tender board;

(b) commitment of the full amount of funding of the

amended contract price over the required period

of the revised contract; and

including the Attorney General.

(3) A contract amendment for additional quantities of

the same items shall use the same or lower unit prices as the

original contract.

(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.

Validity of

procurement

authorisation

62.-(1) Where an approval to award a contract and to

enter into a written contract is issued but the procuring entity

is unable to conclude the contract with the approved tenderer,

the approval given shall be valid for ninety days and the

procuring entity may, after ensuring that the value of the

product or the scope of service or works is not varied

significantly with the original submission, extend the validity

period for ninety days without changing the terms and

conditions of the original contract.

(2) The provision of sub-regulation (1) shall apply

where the approved tenderer has-

(a) agreed to extend the tender validity period

pursuant to regulation 192; and

(b) not been notified of the award of contract.

(3) Where the approval granted by a tender board

expires and the approved tenderer has not been notified of the

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GN. No. 446 (contd.)

award of contract-

(a) all tenders or proposals received shall be rejected;

and

(b) the procurement proceedings shall be annulled and

new tenders or proposals shall be invited from at

least all who submitted tenders or proposals in the

first instance and the new ones.

(e) Procedures for conducting Emergency Procurement

Emergency

procurement

63.-(1) Subject to the provisions of the Act, where

public interest demands the emergency procurement of any

goods, services or works, the accounting officer shall-

(a) evaluate the need for the emergency procurement

and decide the preferred procurement method in

order to guarantee economy and efficiency;

(b) ensure the criteria prescribed under section 65 (2)

of the Act are complied with;

procurement activities which may be used in the

period of the emergency;

(d) where possible, identify other government bodies

that can provide immediate assistance; and

(e) specify the time frame within which the emergency

procurement will be undertaken.

(2) Upon satisfying the requirements under sub

regulation (1), the accounting officer shall submit such

information to the Agency for approval pursuant to section

65(3) of the Act and shall, in addition, serve a copy of the

information to the Authority.

(3) After receiving an application from the

accounting officer pursuant to sub regulation (2), the Agency

shall consider the merits of the application and grant approval

within five working days.

(4) Once the approval is obtained, the accounting

officer shall proceed to procure the goods, works or services in

accordance with the method of procurement selected and

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GN. No. 446 (contd.)

pursuant to section 65 (6) of the Act.

(5) In a situation where an application for approval for

emergency procurement is impracticable, the accounting

officer may proceed with the emergency procurement in

accordance with the chosen procurement method and shall

immediately notify the Agency and the Authority.

(6) Subject to sub regulation (5), the accounting

officer shall submit an application to the Paymaster General

for retrospective approval within seven working days from the

date of award.

(7) In the application referred to in sub regulation (6),

the accounting officer shall state the circumstances which

precluded him from complying with sub regulation (2) of this

regulation.

(8) Upon receipt of an application for the retrospective

approval, the Paymaster General shall seek for the advice of

the Authority.

(9) Subject to sub regulation (8), the Authority shall,

in collaboration with the Government Assets Management

Department and the department responsible for technical audit

of the Ministry responsible for finance or, where necessary,

with any other competent body, advise the Paymaster General

on the appropriate action to be taken.

(10) Where the Paymaster General acts upon the

advice given under sub-regulation (9), he shall not be held

personally liable for his actions.

Report on

Emergency

Procurement

64.-(1) The accounting officer shall, within fourteen

days after completion of the procurement process, prepare and

submit a report on emergency procurement to the Paymaster

General, the Authority, the Controller and Auditor General,

Internal Auditor General and the Agency.

(2) The report under sub-regulation (1) shall be in the format

prescribed in the guidelines issued by the Authority.

Prohibition

to Tender

Board

65. A tender board shall not grant retrospective

approval for emergency procurement.

Public Procurement

GN. No. 446 (contd.)

Application

Emergency

Procurement

66.- (1) A procuring entity shall not use an

emergency procurement method if-

(a) goods or services fall under common procurement

arrangement; or

(b) the specific event was anticipated and planned.

(2) Notwithstanding sub-regulation (1), where the

procurement is reasonably and justifiably necessary, and is

inadvertently not included in the annual procurement plan but

is within the authority of the accounting officer to approve

reallocation within the procuring entity’s budget, the value of

such procurement shall not exceed the limits for minor and

micro values prescribed in the Sixth and Tenth Schedules to

these Regulations.

Liability of

Accounting

Officer

67.-(1) Subject to regulation 63 (6), where it is proved

that-

(a) the accounting officer has engaged in

unnecessary or extravagant procurement; or

(b) the procurement was undertaken by lack of

foresight or timely action,

the accounting officer shall be liable to

disciplinary action and shall, in addition to any

penalty imposed on him, be ordered to pay the

difference between the actual cost of the

procurement and what the costs would have

been through the appropriate channels.

(2) An award of a contract made by an accounting

officer and not approved retrospectively shall be valid and the

accounting officer who approved it shall be responsible for the

payment of the price involved.

(f) Procurement and disposal planning and financial controls

Planning

implementati

68.-(1) Planning for implementation shall involve

preparation of a project work plan and identifying the

resources necessary to carry out the various project activities.

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GN. No. 446 (contd.)

(2) Proper planning of procurement of recurrent items

shall be based on an adequate stock control system.

(3) The timescale for each procurement shall be

calculated on the basis of the standard processing times

prescribed in the Eighth and Twelfth Schedules to these

Regulations, allowing any necessary margin for delays in

transmission of documents or clarification of tenders or

proposals.

(4) Subject to sub-regulation (3) the commencing

dates and critical points in the procurement process shall be set

out in the procurement plans.

Procurement

Planning

69.-(1) Procurement planning shall commence at the

design stage during the identification and preparation stages of

the project cycle.

(2) A procuring entity shall take a strategic decision

whether or not the most economic and efficient procurement

can best be achieved by separating contracts for each

component.

(3) A procuring entity shall forecast its requirements

for goods, services and works as accurately as is practicable

with particular reference to services or activities already

programmed in the annual work plan and included in the

annual estimates.

(4) Subject to sub regulation (3) the forecasts shall

include an estimate of the optimum time to the nearest month

of performance and completion of services.

(5) The estimate of such requirements shall be

compared with the likely availability of voted or donor funds

so that priorities for procurement may be determined in

accordance with available funds.

(6) The procuring entity shall prepare its estimates

based on prevailing market prices as provided by the

Authority and updated from time to time.

(7) A procuring entity shall draw up procurement

plans for those requirements for which sufficient funds have

been included in the approved budget in the current financial

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GN. No. 446 (contd.)

year or if payment will be due in subsequent financial year,

such payment have been budgeted for.

(8) In compiling such plans, a procuring entity shall

establish the appropriate method of procurement to be

employed for each requirement.

(9) Approval of the accounting officer shall be

obtained either by inclusion of that procurement in a

procurement plan or by request as an individual item of

procurement when not included in the procurement plan.

Timeframe

for

preparation

and

submission

of annual

procurement

plan

70. A procuring entity shall prepare its annual

procurement plan as part of budget process and submit the

plan to the Authority within fourteen days after the completion

of the budget process.

Procedures

for

submitting a

tender for

packages or

lots

71.- (1) In considering how a project may be carried

out, account shall be taken of the advantage, for economic and

technical reasons, of dividing the project into homogeneous

lots or packages which are as large as possible.

(2) Where procurement is divided into packages, the

size of the package should be appropriate so as to foster

maximum competition and obtaining the most economic

contract.

(3) Where similar items of equipment are to be

procured for several sub-components in a project or for several

projects, it may be convenient to combine them all into one

procurement package in order to achieve economies of scale.

(4) Where a project is divided into lots or packages,

the instructions to tenderers shall state-

(a) the number of lots or packages;

(b) the nature, location and size of each lot; and

number of lots or packages for which a tenderer

may tender.

(5) The procedure for submitting a tender for package

Public Procurement

GN. No. 446 (contd.)

tenders shall be as follows:

(a) tenderer may submit a tender for each lot or

package;

(b) unless the instructions to tenderers provide

otherwise, a tenderer may include, in his tender,

the overall rebate he would grant in the event of

amalgamation of some or all of the lots or

packages for which he has submitted individual

tenders;

or packages apportioned to the same tenderer

shall form a single contract, each lot shall form a

separate contract;

(d) where lots or packages are to be apportioned to

different tenderers, the invitation to tender

document or the instructions to tenderers may

provide that the tenderer for a particular lot or

packages shall ensure the coordination of the

execution of all the lots or packages.

(6) For purposes of maximising participation in such

tenders, tenderers may be permitted to submit tender in

separate lots but required to tender for all items in a lot, or

individual contracts or a combination of contracts for works or

services.

Aggregation

requirements

72.-(1) For purposes of maximizing economy and

efficiency in its procurement or disposal process, a procuring

entity may group goods, works or services of a broadly,

similar or related nature, or pool assets for purposes of

common disposal into a single tender or number of tenders of

a size and type that may be likely to attract a reasonable

number of tenderers if such grouping is practicable and may

not cause unreasonable delay in the procurement or disposal

process.

(2) Where several services to be procured require

coordination or collective responsibility of the consultants, a

procuring entity shall group these services and seek to employ

Public Procurement

GN. No. 446 (contd.)

a single consultant for the performance of those services.

(3) The requirements to be debited to different vote

sub-heads shall only be combined into one tender if all costs

of the procurement can be easily identified and separately

debited.

(4) The tenders or proposals under sub-regulation (3)

shall be received and opened by the same deadline and

evaluated simultaneously with a view to determine the tender

or proposal or combination of tenders or proposals that offers

the lowest evaluated cost, or the highest evaluated price.

(5) Assets to be disposed of shall be grouped into

contracts or lots in a manner that attracts maximum possible

competition.

Prohibition

of splitting

tenders and

contracts

73.-(1) A procuring entity shall not divide its

procurement into separate contracts for the purpose of

avoiding international or national competitive tendering or

selection.

(2) The accounting officer of a procuring entity

proved to have divided its procurement in contravention of

sub-regulation (1) shall be personally liable in accordance with

section 104 of the Act.

(3) Notwithstanding the provisions of sub-regulations

(1) and (2), a procuring entity shall be allowed, with prior

approval of the Authority, to split contracts to enable

participation of local firms or persons.

Establishme

nt of

contract

period

74.-(1) The contract period allowed shall be a

realistic assessment of the time in which a reasonable tenderer

could be expected to complete delivery of the goods, complete

the works, or complete providing the services, having regard

to the desired completion date and the locality.

(2) Where the circumstances dictate a shorter than

desirable contract period, the prospective tenderers shall be

notified of this requirement in the documents.

(3) For particular types of contracts and particular

weather conditions, sufficient time shall be allowed for

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GN. No. 446 (contd.)

seasonal changes.

(4) Where, after the preparation of tender or proposal

documents, there is delay for any reason in inviting tenders or

proposals, the contract period allowed for completion shall be

reviewed immediately prior to invitation for tenders or

proposals.

Commitment

of funds

75.-(1) Procuring entities shall ensure that funds are

allocated or committed before commencing procurement

proceedings.

(2) Notwithstanding the provision of sub-regulation

(1), the procuring entity may commence procurement

proceedings for scheduled or routine activities if the procuring

entity is certain of funds availability in its budget for such

activities.

(3) Where the contract extends over several years, an

allocation of funds may be issued annually so that the total

amount issued does not exceed the contract price plus a

percentage for price and physical contingencies, unless

specific approvals are obtained for additional work and cost

price increase.

Selection of

a method of

procurement

76. Except as otherwise provided for by these

Regulations, a procuring entity engaging in procurement of

goods, works, services, non-consultant services or public

private partnership, and disposal of public assets by tender

shall do so by means of competitive tendering.

Procurement

procedures

of the

Authority

and Appeals

Authority

77.-(1) Procurement activities of the Authority and of

the Appeals Authority other than minor and micro value

procurement shall be contracted out to the Agency.

(2) Where a procurement or disposal by tender

function is contracted out to the Agency, the accounting

officer of the Authority or the Appeals Authority, shall

respectively enter into the agreement with the Agency

specifying-

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GN. No. 446 (contd.)

(a) the functions that are subject of the agreement;

(b) the reporting and monitoring procedures and

responsibilities;

(d) rights and obligations of the parties to the

agreement;

(e) any costs to be paid; and

(f) the mechanism for implementation of a

procurement plan on respective procurement or

disposal by tender requirement.

(3) The procurement or disposal contract shall

respectively be entered in writing between the accounting

officer of the Authority or the Appeals Authority and the

successful tenderer.

(4) The Agency shall be responsible for the whole

process during the tender preparatory stage prior to contract

signing of the awarded tender.

(5) The Accounting Officer of the Authority and the

Appeals Authority shall respectively be responsible for the

execution of the awarded contract.

(6) Complaints or disputes between the Agency and

tenderers arising out of the procurement proceedings shall be

resolved in accordance with the procedures prescribed in the

Act.

(g) Prohibition

Fraud and

corruption

78.-(1) Procuring entities, tenderers and procurement

agents under public financed contracts shall proceed in a

transparent and accountable manner during the procurement or

disposal process and execution of contracts.

(2) A procuring entity and a tenderer shall, in any

tender for public contracts, not engage in fraud and corruption

including bribery in competing for and executing a contract as

per memorandum provided in the Third Schedule to these

Regulations and shall abide with the laws of the country.

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GN. No. 446 (contd.)

Improper

inducement

79.-(1) Procuring entities and tenderers shall take

measures reasonably within their power to ensure that:

(a) no part of any payment made in connection with a

procurement or disposal contract is received

directly or indirectly by or for the benefit of a

public officer with decision making responsibility

or influence, or of their relatives or business

associates;

(b) subcontracts and purchase orders relating to a

procurement contract transactions are not used as a

device to channel payments or other benefits

directly or indirectly to or for the personal benefit

of public officers with decision making

responsibility or influence, or of their families

relatives or business associates;

consultant or other intermediary represents no more

than appropriate compensation for legitimate

services, and that no part of any such payment is

passed on by an agent, tenderer or other

intermediary as an improper inducement in

contravention of these Regulations.

(2) Procuring entities, approving authorities and

tenderers shall take appropriate measures to ensure that agents,

consultants and other intermediaries are not employed to gain

any improper influence in connection with obtaining or

retaining any business.

(3) A procuring entity shall not include in any tender

document or request for proposal any condition or

specification such as to favour any one tenderer.

(4) Any member of a procuring entity shall declare

any interest that they may have in any tenderer and shall

neither take part in, nor influence, in any way, any

procurement or disposal proceedings in which a tenderer is

involved or liable to be involved.

(5) A member of staff or an officer of the procuring

entity shall be disqualified for being nominated for, or

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GN. No. 446 (contd.)

appointed or being a member of a tender board if such

member or officer, or any partnership in which he is

interested, enters into or has entered into any contract in force

with any public body for the supply of any goods, the

provision of any service, non-consultant service, the execution

of any work, the acquisition of any public asset by tender or

any other contract in which such member or his firm has any

financial interest.

(6) Any effort by a tenderer to influence the procuring

entity in the processing of tenders or award decisions may

result in the rejection of his tender.

(7) Any tender proved to have been awarded on the

basis of inducement shall be revoked and shall be reported to

the Authority and any other competent authorities for

necessary actions.

(8) A tenderer whose tender or proposal is rejected or

revoked on the grounds of inducement, corrupt, fraudulent,

collusive, coercive or obstructive practices shall not be able to

qualify or pre-qualify in any procurement or disposal

proceeding during the ten years following the date of the

notice of such rejection or revocation.

(9) The Authority shall notify all procuring entities of

tenderers whose tenders or proposals have been rejected

pursuant to sub-regulation (8).

Disability of

members of

the

procuring

entity and

members of

the

approving

authority on

account of

interest in

contracts

80.-(1) Where a member of the procuring entity or a

member of an approving authority has any pecuniary interest,

direct or indirect, in any tender, contract, proposed contract or

other matter and is present at a meeting of the procuring entity

at which the contract or other matter is the subject of

consideration, the member shall, at the meeting and as soon as

practicable after its commencement, disclose the fact and shall

not take part in the consideration or discussion of the contract

or other matter or vote on any question with respect to it.

(2) A member of a procuring entity or a member of

an approving authority who has disclosed an interest in

accordance with this regulation shall immediately retire from

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GN. No. 446 (contd.)

the meeting.

(3) A person who contravenes the provisions of this

regulation commits an offence and shall be liable in

accordance with the provisions of section 104 of the Act

unless he proves that he did not know that the contract,

proposed contract or other matter in which he had a pecuniary

interest was the subject of consideration at that meeting.

Pecuniary

interests

81.-(1) For the purposes of regulation 80 and subject

to sub- regulations (2) and (3) of this regulation, a person shall

be considered, as having indirectly a pecuniary interest in a

contract, proposed contract or other matter if-

(a) he or his nominee is a member of a company or

other body with which the contract was made or is

proposed to be made or which has a direct

pecuniary interest in the other matter under

consideration; or

(b) he is a partner, or is in the employment of a person

with whom the contract was made or is proposed to

be made or who has a direct pecuniary interest in

the other matter under consideration.

(2) Sub-regulation (1) shall not apply to membership

of, or employment under, any public body and a member of a

company or other body shall not, by reason only of his

membership, be treated as having an interest in any contract,

proposed contract or other matter if he has no beneficial

interest in any securities of that company or other body.

(3) In the case of married persons, the interest of one

spouse shall, if known to the other, be considered, for the

purposes of regulation 80, to be an interest of the other.

General

notices and

recording of

disclosure

information

82.-(1) A general notice given in writing to the

accounting officer, in case of an employee of the procuring

entity to the effect that he or his spouse is a member or is in

the employment of a specified company or other body, or that

he or his spouse is a partner or in the employment of a

specified person, shall, unless the notice is withdrawn, be

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GN. No. 446 (contd.)

considered to be a sufficient disclosure of his interest in any

contract, proposed contract or other matter relating to that

company or other body, or to that person which may be the

subject of consideration after the date of the notice.

(2) The accounting officer, in the case of an employee

of the procuring entity, shall cause to be recorded in a book to

be kept for the purposes, particulars of any disclosure made

under regulation 80 and of any notice given under these

Regulations, and the book shall be open at all reasonable time

for inspection by any member of the public.

Prohibition

of running

contracts

83.-(1) A procuring entity shall not invite, accept or

place a running contract for the supply of goods, for provision

of services or for the execution of works.

(2) The Authority shall issue guidelines in the case of

necessity to carry out running contracts.

Non

anticipation

of contracts

84. Acceptance of any tender shall not be anticipated,

and orders shall not be placed or an inception report shall not

be prepared until the necessary approval is received from the

appropriate approving authority.

Tampering

with

submitted

tenders

85.-(1) A person shall not-

(a) open an envelope or other container in which a

tender is contained, other than in the due and

proper execution of his duties under these

Regulations,

(b) burn, tear or otherwise destroy any tender; or

incomplete or misleading any tender.

(2) A person who is proved to have contravened sub-

regulation (1) shall be personally liable in accordance with

section 104 of the Act.

(3) For the purposes of this regulation, “tender”

includes documents or things submitted together with the

tender and which are relevant to the tender and which are in

the possession of a, procuring entity or any other person.

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GN. No. 446 (contd.)

(h) Monitoring by the Authority

Monitoring

within the

procuring

entity

86.-(1) The head of internal audit unit of each public

body shall prepare and submit to the accounting officer a

quarterly audit report which shall include a report on whether

the Act and these Regulations have been complied with.

(2) After receiving the report under sub-regulation (1),

the accounting officer shall, within fourteen days, submit to

the Authority a copy of such report.

(3) Upon receiving the report, the Authority may, if it

considers necessary, require the accounting officer to submit a

detailed report on any procurement implemented in violation

of the Act and these Regulations for review and necessary

action.

(4) Upon the request by the Authority, the accounting

officer shall submit the requested report within fourteen days

after receiving the request.

(5) The report under this regulation shall be in the

format prescribed by the Authority.

Continuous

monitoring

87.-(1) For the Authority to continuously monitor

procurement activities and contract implementation, procuring

entities shall submit to the Authority annual procurement

plans, information on tender notices, invitations for quotations,

request for proposals, contract award, contract termination and

monthly, quarterly and annual procurement implementation

reports in the prescribed format and through systems

developed by the Authority.

(2) Procuring entities shall submit to the Authority-

(a) annual procurement plans not later than

fourteen days after their approval by

appropriate budget approving authorities;

(b) information on tender, quotation invitations

and request for proposals within seven days

after the invitation or request;

Public Procurement

GN. No. 446 (contd.)

implementation reports within seven days

after the end of the respective month or

quarter; and

(d) annual procurement implementation reports

within thirty days after the end of the

respective financial year.

(3) The accounting officer shall-

(a) not later than seven days after the award of

contract resulting from an emergency

procurement, direct contracting or single

source selection, submit a detailed report to

the Authority of the procurement process in

the format prescribed by the Authority;

(b) within thirty days from the date of award,

notify the Authority the name of the person

or body to whom the contract is awarded,

the amount of tender or proposal and the

date on which the award was made;

days from the date of terminating any

contract, giving details of measures taken by

the procuring entity before terminating the

contract;

(d) not later than seven days after issuing the

instruction to amend, alter or vary any

procurement contract, submit a report to the

Authority of any amendment, alteration or

variation of a procurement contract giving

details on the reasons, cost implication and

approvals.

(4) The accounting officers of procuring entities and

the chief executive officer of the Appeals Authority shall

submit to the Authority not later than fourteen days after

issuing their decisions, copies of the decisions concerning

complaints or disputes in procurement proceedings.

(5) The Authority may, upon receipt of reports of

findings from the accounting officer or decision of the

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GN. No. 446 (contd.)

Appeals Authority, recommend to the competent authority to

take disciplinary measures against the concerned person or

body implicated in the report or decision, as the case may be,

in accordance with the provisions of the Act.

Procurement

, contract

and

performance

audits

88.-(1) Subject to the criteria as may be prescribed by

the Authority, the Authority may, at any time and where

circumstances requires, select a procuring entity, project, or

contract for audit.

(2) Before the audit, the Authority shall inform the

relevant procuring entity on the intention, objectives and

compliance indicators to be used for the audit.

(3) For the purpose of enabling the Authority to

efficiently carry out the audit, procuring entities shall make

available all the documents requested for the audit in a timely

manner.

(4) For ease of procurement information retrieval,

procuring entities shall be required to keep procurement

records in a proper manner as prescribed in the Procurement

Records Guideline prepared by the Authority.

(5) Upon completion of the audit and before issuing

the final audit report, the Authority shall submit, in writing,

the audit findings to the audited procuring entity.

(6) A procuring entity shall submit to the Authority

detailed responses to the audit findings within fourteen days of

receiving the audit findings.

(7) After approval by the appropriate committee of

the Board, the Authority shall submit the audit report to the

procuring entity together with recommendations of the

Authority.

Procurement

investigation

89.-(1) The Authority shall conduct investigation on

any matter it considers necessary or desirable or on any

submitted application for retrospective approval or any matters

stipulated in the Act.

(2) The budget approving authority may submit to the

Authority a request to carry out investigation on any

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GN. No. 446 (contd.)

procurement if it is not satisfied with the implementation of

any procurement or disposal in the organization.

(3) Subject to the provisions of the Act, the Authority

may require any officer or member of a public body or any

other person, who, in its opinion, is able to give any assistance

in relation to the investigation of any matter, to furnish

information and produce any document under his control and

such information shall be submitted within seven days from

the date of the request.

Cooperation

with other

authorities

90. In the course of, or after conducting an

investigation, or procurement, contract and performance audit,

the Authority may cooperate with the law enforcement organs,

and for that purpose the Authority may establish a mechanism

for sharing of information relating to the investigation or

procurement, contract and performance audit, or enforcing the

findings.

Actions to

be taken in

the course of

monitoring

procurement

activities

91.-(1) The Authority shall, after conducting an

investigation or procurement, contract and performance audit,

produce a written report containing its findings and

recommendations to the competent authority.

(2) The recommendations may include the-

(a) disciplining of the accounting officer, chairman

or member of the tender board, the head of

procurement management unit, a member of the

tender evaluation committee or any other officer

concerned with the procurement process;

(b) replacement of the head of procurement

management unit, the chairman, or any member

of the tender board, as the case may be;

(d) rectification of the contravention by taking such

actions as may be necessary to rectify the same;

(e) suspension of the officer concerned to

participate in procurement related activities for a

specified period.

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GN. No. 446 (contd.)

Response

and

implementati

on of

Authority’s

recommenda

tions

92. The competent authority shall respond in writing

to the recommendations of the Authority within fourteen days

from the date of receipt of the recommendations indicating the

actions to be taken and shall, in addition, prepare and submit

to the Authority a report on implementation status within three

months from the date of receiving the recommendations.

(i) Debarment from participating in public procurement

Initiation

and grounds

for

debarment

93.-(1) Debarment proceedings may be initiated by

the Authority as a result of audit or investigation conducted

by the Authority or where a debarment proposal is submitted

to it, by any person.

(2) Any debarment by a procuring entity shall be

pursuant to section 83 of the Act.

(3) Subject to the provisions of the Act, a tenderer

shall be debarred from participating in public procurement or

disposal proceedings if-

(a) corrupt, fraudulent, collusive, coercive or

obstructive practices or inducement is established

against the tenderer, in which case he shall be

barred for a period of ten years;

(b) the tenderer fails to abide with a bid securing

declaration, in which case he shall be barred for a

period of not less than six months and not

exceeding two years;

a procurement or disposal contract, in which case

he shall be barred for a period of not less than one

year and not exceeding five years;

(d) the tenderer makes false representation about his

qualification during tender proceedings, in which

case he shall be barred for a period of not less than

one year and not exceeding five years;

(e) the tenderer is declared ineligible by a procuring

entity to participate in public procurement or

disposal in accordance with section 83 of the Act.

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GN. No. 446 (contd.)

(4) Where a tenderer is barred from participating in

public procurement or disposal on grounds other than those

specified in sub-regulation (3), the period of debarment may

be determined by the Authority depending on the gravity of

the offence.

Procedures

for

debarment

94.-(1) A person who wishes to submit a proposal for

debarment of a tenderer to the Authority shall do so within

twenty eight days of becoming aware of the circumstances or

grounds which give rise to the debarment.

(2) Where a procurement proceeding is in progress, a

proposal for debarment may include a recommendation that

the potential tenderer be suspended from participating in

procurement pending the determination of debarment

proposal.

(3) A recommendation for debarment as a result of

audit or investigation by the Authority or a debarment

proposal submitted pursuant to sub-regulation (1) shall

specify-

(a) the name and address of the potential tenderer

recommended for debarment;

(b) the grounds for the proposed action;

information and documents; and

(d) any other information or documents in the

possession of, or known to, the person

submitting the debarment proposal.

Inquiries by

the

Authority

95.-(1) The Authority may require any public body or

person to produce information, documents or any evidence

concerning possible grounds for debarment of a potential

tenderer.

(2) A public body or a person required under sub-

regulation (1) to produce information, documents or evidence,

shall produce the documents or evidence within fourteen days

from the date of receiving the request.

Public Procurement

GN. No. 446 (contd.)

Issuance of

notice of

debarment

96.-(1) Where the Authority determines that there are

grounds for debarment on the basis of the produced

information, documents and evidences, the Authority shall,

within twenty one days from the date of receiving the

evidence, issue to the respective tenderer a notice of

debarment.

(2) The notice of debarment shall inform the tenderer

of the facts constituting grounds for the proposed debarment.

(3) The notice shall require the tenderer to make

written representation showing cause why he should not be

debarred from participating in public procurement for a period

specified pursuant to the Act and these Regulations.

(4) The tenderer shall respond to the notice referred

to in sub-regulation (3) of this regulation within fourteen days

from the date of receiving the notice.

(5) Any representation made under sub-regulation (3)

shall contain a certificate signed by the tenderer that the

information contained in the representation is true to the best

of the knowledge of such tenderer.

Suspension

pending

completion

of the

debarment

proceedings

97.-(1) Upon receipt of the representation under

regulation 96, the Authority may, depending on the

circumstances of the case, determine whether or not the

tenderer should be suspended from participating in

procurement proceedings pending the completion of

debarment proceedings.

(2) Where the Authority determines that the tenderer

should be suspended in accordance with sub-regulation (1),

the Authority shall suspend the tenderer for a period that the

Authority may determine or, until the final determination of

debarment proceedings.

(3) The Authority may terminate the suspension

where it considers that the grounds for the suspension are no

longer valid.

(4) Any suspension under this regulation shall remain

in effect until a decision on the proposed debarment is taken or

where a suspension is terminated pursuant to sub-regulation

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GN. No. 446 (contd.)

(3).

(5) The Authority shall send a copy of its decision

under sub-regulations (1) and (2) to the tenderer and where

applicable, to the person who proposed the debarment.

Decision on

debarment

98.-(1) The Authority shall decide on the proposed

debarment within thirty days-

(a) from the date of receiving the representation from

the tenderer;

(b) from the date of the decision for suspension where

the suspension is determined pursuant to

regulation 97(1); or

96(4).

(2) The period of debarment of the tenderer shall be

decided in accordance with regulation 93(3) and (4).

(3) The decision of the Authority shall be in writing

and shall include a summary of the findings of fact and

reasons for the decision.

(4) The Authority shall send a copy of its decision

under sub-regulation (3) to the tenderer and to any other

person who has legitimate interest on the procurement in

question.

Disclosure

of the

decision

99. The Authority shall notify procuring entities on

the decision made pursuant to regulation 98, and shall publish

such decision in the Gazette, Journal and Tenders Portal.

debarred and

suspended

tenderers

100.-(1) The Authority shall maintain a register of all

suspended or debarred tenderers which shall, among other

things, specify the name and address of each tenderer under

suspension or debarment, grounds for suspension or

debarment and the period under which the tenderer is on

suspension or debarment, as the case may be.

(2) The register shall, at all times during office hours,

be made available to the public.

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GN. No. 446 (contd.)

Effect of

suspension

debarment

101.-(1) A tenderer who is blacklisted under these

Regulations shall not be permitted to start a new supplies,

contracting or consulting firm during that period.

(2) Procuring entities shall not procure from, contract

with, or engage a tenderer who is blacklisted from

participating in public procurement proceedings pursuant to

the Act and these Regulations.

(3) Where a tenderer is debarred under the provisions

of these regulations, any person who, at the time of debarment,

was concerned with the management of the affairs of the

debarred company or firm as director, partner, agent or an

officer, shall be barred from participating in public

procurement or disposal by tender for the same period.

(4) The Authority shall inform the relevant statutory

bodies upon debarring and blacklisting a tenderer.

Effect on

existing

contracts

102. Any suspension or debarment of a potential

tenderer under these regulations shall not affect any existing

contracts entered into between the tenderer and any public

body before the debarment decision except where fraud and

corruption is established.

Right to

appeal

against

debarment

decision

103.-(1) A tenderer who is dissatisfied with the

debarment decision made by the Authority under these

Regulations, may appeal against the decision to the Appeals

Authority within twenty one days from the date of becoming

aware of such decision.

(2) The Appeals Authority shall conduct a hearing of

appeal or review in accordance with the rules and procedures

made under the Act.

(j) Review of procurement or disposal decisions and dispute settlement

Right to

review

104. A tenderer who claims to have suffered or who

may suffer any loss or injury as a result of breach of a duty

imposed on a procuring entity or an approving authority by the

Act or these Regulations may apply for a review in accordance

Public Procurement

GN. No. 446 (contd.)

with section 95 of the Act.

Submission

applications

for review to

the

Accounting

Officer

105.-(1) Any application for administrative review

shall be submitted in writing or electronically to the

accounting officer of a procuring entity and a copy shall be

served to the Authority within twenty eight days of the

tenderer becoming or should have become aware of the

circumstances giving rise to the complaint or dispute.

(2) The requirements of sub-regulation (1) shall not

apply to complaints submitted in response to the notice of

intention to award the contract issued to tenderers pursuant to

section 60(3) of the Act.

(3) The application for administrative review shall

contain-

(a) details of the procurement or disposal

requirements to which the complaint relates;

(b) details of the provisions of the Act,

Regulations or provisions that have been

breached or omitted;

Act, Regulations or provisions have been

breached or omitted, including the dates and

name of the responsible public officer, where

known;

(d) documentary or other evidence supporting the

complaint where available;

(e) remedies sought; and

(f) any other information relevant to the

complaint.

(4) The accounting officer of a procuring entity

shall not entertain a complaint or dispute or continue to do so

after the procurement or disposal contract has entered into

force.

Administrati

ve review by

accounting

officer

106.-(1) An accounting officer shall, upon receipt of

an application for administrative review-

(a) suspend the procurement or disposal

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GN. No. 446 (contd.)

proceedings of the tender in dispute, until he

delivers a written decision on the complaint;

and

(b) notify all tenderers who participated in the

tender, of the complaint and of its substance

within three working days of receipt of such

application and the tenderers who opt to join in

the proceeding shall submit written responses

within three working days of receipt of such

notification.

(2) Sub-regulation (1) (a) shall not apply where

certification has been provided by the procuring entity and

accepted by the Authority pursuant to section 100(2) of the

Act.

(3) Upon receiving an application for review, an

accounting officer shall institute an investigation to consider-

(a) the information and evidence contained in the

application;

(b) the information in the records kept by a

procuring entity;

and

(d) any other relevant information.

(4) The investigation instituted in accordance with

sub-regulation (3) may be conducted by a review panel

appointed in accordance with section 96(2) of the Act.

(5) In appointing members of a review panel

pursuant to sub-regulation (4), the accounting officer shall

consider their expertise and experience on the subject matter

of the tender.

(6) An accounting officer shall, within fourteen

days after receipt of the complaint or dispute, deliver a written

decision to a complainant and other tenderers who participated

in the proceedings.

(7) The decision of accounting officer shall address

fully the tenderer’s grounds of complaints and shall indicate-

(a) whether the application is upheld in whole, in

Public Procurement

GN. No. 446 (contd.)

part or rejected;

(b) the reasons for the decision; and

(8) The accounting officer shall submit a copy of

the decision to the Authority within seven days from the date

of its delivery.

(9) Where the accounting officer does not issue a

decision within the time specified in sub-regulation (6), the

tenderer submitting the complaint or dispute shall within

fourteen days after such specified time, institute proceedings

under section 97 of the Act, and upon instituting such

proceedings, the competence of the accounting officer to

entertain the complaint or dispute shall cease.

(10) Where the complainant is not satisfied with the

decision of the accounting officer or, where the accounting

officer does not issue a decision within the specified time, the

complainant shall submit his complaint to the Appeals

Authority within fourteen days from the date of

communication of the decision by the accounting officer.

Review by

the Appeals

Authority

107.-(1) Complaints or disputes which-

(a) are not settled within the specified period

under regulation 106(6);

(b) are not amicably settled by the accounting

officer; or

entered into force pursuant to section 60(11) of

the Act,

shall be referred to the Appeals Authority within

fourteen days from the date when the tenderer received

the decision of the accounting officer or, in case no

decision is issued after the expiry of the time stipulated

under regulation 106 (6) or when the tender become

aware or ought to have become aware of the

circumstances giving rise to the complaint or dispute

pursuant to section 97 (3) of the Act.

Public Procurement

GN. No. 446 (contd.)

(2) In determining procurement or disposal

disputes, the Appeals Authority shall be guided by its rules

made under section 105 (2) (g) of the Act.

(k) Miscellaneous provisions

Procedure

for

amendment

of standard

contract

108.-(1) Every effort shall be made to utilize as far as

possible, the samples of standard contract documents prepared

by the Authority.

(2) Any deviation from the use of standard tender

documents shall obtain prior written approval of the Authority.

Submission

of contract

documents

109. The Accounting Officer shall ensure that copies

of all contracts are sent to the Authority, Attorney General,

Controller and Auditor General, Internal Auditor General or

Government Asset Management Division as the case may be,

and the Tanzania Revenue Authority within thirty days from

the date of signing a contract.

Amendment

s after

signature

110.-(1) Once signed, the contract or written

agreement shall not be altered, except when an alteration is

necessary for the benefit of the procuring entity or when an

alteration does not prejudice the procuring entity.

(2) The contract extension which includes the

remission or reduction of penalties in favour of the tenderer

shall be permitted only in the case of force majeure or default

or shortcoming on the part of the procuring entity.

(3) The proposed variations such as additions or

deductions which are not incidental to or arising out of the

contract, and which alter the scope, extent or intention of the

contract shall, in every case, be referred to the appropriate

tender board for approval before instructions are issued to the

tenderer.

(4) The procuring entity shall have no power to

authorise additions beyond the scope of the contract without

having obtained prior written approval from the Paymaster

General or appropriate budgetary approving authority for

Public Procurement

GN. No. 446 (contd.)

additional financial authority to meet the cost of such work.

(5) Where the execution of contract has commenced,

the cost increases involving all changes which alter the scope,

extent or intention of such contracts shall have the prior

written approval of the tender board.

(6) For the purposes of this regulation, “changes in

the scope of the contract” includes all changes in the quantity

or quality of goods to be supplied, services to be provided or

work to be performed by a tenderer with whom a contract has

been entered into and such changes shall generally be changes

of a policy nature such as an increase in the area of a building

or finishing to a higher standard than originally specified.

(7) No changes of a policy nature in the scope of the

contract shall be made after a financial authority is granted

except where it is considered that the scope of the contact be

extended because of a change of circumstances.

(8) Without prejudice to sub-regulation (7), the

additional financial authority shall be obtained before the

increase in the scope of the contract is committed and ordered.

(9) In the case of works projects carried out under the

supervision of the ministry responsible for works on behalf of

another ministry or department, all changes requested by a

client shall be regarded as changes of a policy nature and the

term “changes in the scope of contract” shall be regarded as

covering the difference between the price to be paid for the

prime cost items or provisional sum items and the allowance

included for such items in the contract price.

Time

extension

orders

111.-(1) An order for extension of time may be issued

only by the accounting officer, and that the reasons for

granting such an order shall be fully documented in the

contract implementation records.

(2) The order shall state the section of the general

conditions of contract under which it is issued, the duration of

the extension and the special circumstances which have been

taken into account.

(3) Where, for any special circumstances, an

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GN. No. 446 (contd.)

extension of time is claimed by a tenderer, the claim for such

extension shall be submitted in accordance with the conditions

of contract.

(4) The orders for extension of time shall be treated

strictly and fairly if the procuring entity is to have reasonable

prospects of enforcing liquidated damages and if the tenderer

resort to arbitration.

(5) For purposes of avoiding invalidation of the

procuring entity’s right to impose liquidated damages and

claims for time extensions, a tenderer shall not be requested to

carry out further work on the contract where the contract

completion certificate is issued.

(6) A procuring entity shall ensure that any extra

work required is arranged independently of the original

contract after the contract is accepted and complete

Liquidated

damages

112.- (1) A procurement entity shall impose on a

tenderer, a liquidated damages for undelivered materials or

goods, undelivered or delayed services or delayed works.

(2) The rates of liquidated damages per day shall be-

(a) in the case of procurement of goods or materials,

0.10 to 0.20 percent of the contract value per day

of delayed materials or goods, up to a sum

equivalent to the amount of the performance

guarantee;

(b) in the case of procurement of works, 0.10 up to

0.15 per cent of the contract value per day up to

a sum equivalent to the amount of the

performance guarantee; and

to 0.20 percent of the contract value per day up

to a sum equivalent to the amount of the

performance guarantee.

(3) The liquidated damages rates shall be specified in

the request for proposals or tender documents and in the

contract, and the maximum amount of the liquidated damages

shall be equal to the amount of the performance bond or

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GN. No. 446 (contd.)

guarantee established in the contract.

Termination

of contract

for

abandoning

works or

services

113.-(1) Where a successful tenderer fails to execute

the contract or agreement within the specified time or fails to

comply with the contract or agreement without a justifiable

and acceptable reason which result into the termination of

such contract or agreement, the accounting officer shall refer

the matter to the Authority and to the Attorney General for

information and appropriate action.

(2) Except with the prior written approval of the

Authority, a procuring entity shall not procure from, contract

with, or engage a tenderer or firm whose contract is terminated

pursuant to sub-regulation (1).

Management

of contracts

114. A procuring entity shall be responsible for the

effective management of any procurement of goods, services

or works for which it is undertaking and shall-

(a) monitor the costs and timely delivery of goods

and services in the correct quantities and to the

quality specified in each contract;

(b) monitor the progress and timely completion of

works in accordance with the terms of each

contract;

deviations from observance of contract

condition; and

(d) ensure that the responsibilities imposed on it by

the contract are fully discharged.

Public

bodies

participating

in tenders

floated by

public body

or private

entity

115.-(1) A public body which participates in tenders

floated by another public body or private entity for purposes

of carrying out works contracts or obtaining goods and

services shall ensure-

(a) the economy and efficiency in the use of public

funds;

(b) an approval of budget for the purpose of

carrying out works contracts or obtaining goods

Public Procurement

GN. No. 446 (contd.)

and services; and

market rates.

(2) The offer shall be approved by the accounting

officer before it is submitted in response to the invited tender.

(3) The accounting officer shall maintain all

necessary records on how the offer price was arrived at for

inspection by the Authority, Controller and Auditor General or

any other body with interest on efficient use of public funds.

(4) The accounting officer shall furnish the Authority

with the name of the client, date of entering into a contract and

contract amount for publication in the Journal and Tenders

Portal.

PART III

PROCEDURES FOR PROCUREMENT OF GOODS, WORKS AND

NON-CONSULTANCY SERVICES

(a)Conditions for participation

Qualification

tenderers

116.-(1) For the purpose of qualifying to participate

in procurement proceedings, a tenderer shall-

(a) possess the necessary professional and

technical qualifications, professional and

technical competence, financial resources,

equipment and other physical facilities,

managerial capability, reliability, experience

and reputation, and the personnel to perform

the assignment;

(b) have legal capacity to enter into the

procurement contract;

wound up;

(d) have fulfilled their obligations to pay taxes and

social security contributions and that they

abide to employment, environmental, health

and safety requirements in Tanzania, where

Public Procurement

GN. No. 446 (contd.)

required;

(e) not, and their directors or officers have not,

been convicted of any criminal offences

relating to their profession, or the making of

false statements or misrepresentations as to

their qualifications to enter into a procurement

contract within a period of ten years preceding

the commencement of the procurement

proceedings, or have not been otherwise

disqualified pursuant to administrative

suspension or disbarment proceedings.

(2) Subject to the right of tenderers to protect their

intellectual property or trade secrets, a procuring entity may

require tenderers participating in procurement to provide such

appropriate documentary evidence or other information as it

may consider useful to satisfy itself that the tenderers are

qualified in accordance with the provisions of sub-regulation

(1).

(3) Any requirement established pursuant to this

regulation shall be set out in the pre-qualification documents,

if any, and in the solicitation documents or other documents

for solicitation of proposals, offers or quotations, and shall

apply equally to all tenderers.

(4) A procuring entity shall impose no criterion,

requirement or procedure with respect to the qualifications of

tenderers other than those provided for in this regulation.

(5) The procuring entity shall evaluate the

qualifications of tenderers in accordance with the qualification

criteria and procedures prescribed in the pre-qualification

documents, if any, and in the solicitation documents or other

documents for solicitation of proposals, offers or quotations.

Criterion,

requirement,

procedure

etc not to be

discriminato

117. Subject to regulations 33(1) and 39(1), the

procuring entity shall establish no criterion, requirement or

procedure that discriminates tenderers on the basis of their

nationality, or that is not objectively justifiable.

Public Procurement

GN. No. 446 (contd.)

Participation

of local and

foreign

tenderers in

procurement

proceedings

118.-(1) A local tenderer who wishes to participate

in any procurement proceeding shall comply with all relevant

requirements for registration required by an appropriate

statutory body.

(2) A foreign tenderer who wishes to participate in

the procurement or proceedings shall be exempted from the

provisions of sub-regulation (1).

(3) Where, as a result of the procurement

proceedings, any foreign tenderer is selected as the lowest

evaluated responsive tender, such tenderer shall, in addition to

the requirement for registration with the appropriate

professional statutory body, be required to comply with the

criteria for post-qualification under regulation 224.

(4) A foreign tenderer shall be required before

signing procurement contract be registered or submit evidence

of eligibility to register with the relevant professional statutory

board

Pre-

qualification

proceedings

119.-(1) The pre- qualification proceedings may be

conducted if-

(a) an invitation to tender requires capable

contractors to carry out large or complex

contracts or turnkey contracts or build, own

and transfer contracts;

(b) the quality and performance is of primary

importance for supply of goods or equipment

or suppliers’ back up and maintenance services

are critical; or

tendering.

(2) The shortlist prepared pursuant to sub-

regulation (1) (c) of this regulation shall be updated on regular

basis.

(3) The provisions of regulation 116 shall apply to

pre-qualification proceedings.

(4) Where a procuring entity engages in pre-

qualification proceedings, it shall provide a set of pre-

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GN. No. 446 (contd.)

qualification documents to each tenderer who requests for the

documents in accordance with the invitation to pre-qualify and

upon payment of prescribed fee.

Contents of

invitation for

pre-

qualification

120.-(1) An invitation to pre-qualify shall contain-

(a) the name and address of the procuring entity;

(b) the nature, quantity and place of delivery of

the goods to be supplied or the nature, quantity

and location of the works to be effected or the

nature of the services and the location where

they are to be provided;

the goods or for the completion of the works or

the timetable for the provision of the services;

(d) the criteria and procedures to be used for

evaluating the qualification of suppliers,

service providers or contractors in conformity

with regulation 116;

(e) a declaration which may not later be altered

that tenderers may participate in the

procurement proceedings regardless of

nationality or declaration that participation is

limited on the basis of nationality pursuant to

regulations 33 and 39;

(f) the price, currency and terms of payment for

the pre-qualification documents;

(g) the means of obtaining the pre-qualification

documents and the place from which they may

be obtained;

(h) the language in which the pre-qualification

documents are available;

(i) the place and deadline for the submission of

application to pre-qualify;.

(j) any other information as the Authority

consider necessary and as prescribed in the

standard pre-qualification document .

(2) The invitation to pre-qualify shall be prepared

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100

by the procurement management unit and approved by the

tender board, and shall be advertised in accordance with the

method of procurement prescribed in the First Schedule to

these Regulations.

(3) A minimum period for national competitive

tendering and for international competitive tendering shall be

allowed for the preparation and submission of pre-

qualification applications as prescribed in the Eighth Schedule

to these Regulations.

(4) The pre-qualification documents shall be

prepared by the procurement management unit in consultation

with the user department and shall be approved by the tender

board before issued to tenderers.

(5) Invitations to pre-qualify which are issued

without prior approval of the tender board and which do not

satisfy these Regulations shall not be considered valid.

Contents of

pre-

qualification

document

121.-(1) The pre-qualification documents shall

contain-

(a) instructions for preparing and submitting pre-

qualification applications;

(b) a summary of the principal required terms and

conditions of the procurement contract to be

entered into as a result of the procurement

proceedings;

information that must be submitted by

tenderers to demonstrate their qualifications;

(d) the manner and place for the submission of

applications to pre-qualify and the deadline for

the submission, expressed as a specific date

and time and allowing sufficient time for

suppliers, service providers or contractors to

prepare and submit their applications, taking

into account the reasonable needs of the

procuring entity; and

(e) any other requirements that may be established

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101

by the procuring entity in conformity with

these Regulations relating to the preparation

and submission of applications to pre-qualify

and to the pre-qualification proceedings.

(2) When a pre-qualification is undertaken,

qualification of tenderers by a procuring entity shall be based

on the legal capacity, capability and resources of the

applicants to perform the particular contract and shall

consider-

(a) experience and past performance on similar

contracts;

(b) knowledge of local working conditions;

equipment and construction or manufacturing

facilities;

(d) financial position;

(e) current commitments; and

(f) compliance with required statutory obligations.

Clarification

and

evaluation of

applications

for pre-

qualification

122.-(1) A procuring entity shall, at least fourteen

days prior to the deadline for the submission of applications to

pre-qualify, respond to any request by a tenderer for

clarification of the pre-qualification documents that is received

by the procuring entity.

(2) The response by the procuring entity under sub-

regulation (1) shall-

(a) be given within three working days with a

view to enabling the tenderer to make a timely

submission of his application to pre-qualify;

(b) without identifying the source of the request,

be communicated to all tenderers to whom the

procuring entity has provided the pre-

qualification documents.

(3) Upon receiving the applications for pre-

qualification, the appointed evaluation team shall evaluate

such application using criteria for qualification prescribed in

the invitation to qualify and shall, in addition, prepare an

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evaluation report consisting of a list of firms recommended for

consideration to pre-qualify.

(4) The evaluation report shall be submitted to the

procurement management unit for scrutiny before it is

submitted to the tender board for approval, and shall prescribe

the criteria used and the justification for the choice made in

respect of the pre-qualified and the non pre-qualified firms.

(5) A pre-qualification shall not be used to limit the

number of tenderers and that all firms which are capable of

performing the contract in accordance with the approved pre-

qualification criteria shall be pre-qualified, unless the pre

selection proceeding is initiated.

(6) If a procuring entity intends to limit the number

of tenderers from which to request proposals pursuant to

regulation 15 the procuring entity may engage in pre-selection

proceeding

(7) The provision of regulation 116 of these

regulations shall apply mutatis mutandis to the pre-selection

proceedings, except to the extent that those provisions are

derogated from in regulation 15.

(8) All tenderers who pre-qualify to participate in a

tender shall be invited to do so unless otherwise disqualified

by regulation 9.

(9) Firms which have been individually pre-

qualified may form a joint venture and submit a tender, and

firms which are pre-qualified as partners in a joint venture

shall not be allowed to submit individual tenders.

Notification

of results of

pre-

qualification

process.

123.-(1) An applicant who has complied with the

pre-qualification criteria and who is approved by the tender

board shall, within seven days after the approval, be notified in

writing by the procuring entity and invited to tender.

(2) The notification shall indicate the terms and

conditions under which tender documents shall be obtained

and the date, hour and place for latest delivery of tenders by

the tenderer, and of the tender opening.

(3) An applicant who is not successful in the pre-

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103

qualification shall be informed by the procuring entity within

seven days after receipt of all the required approvals to the

pre-qualification.

(4) A tenderer who is pre-qualified shall be entitled

to participate in the procurement proceedings.

(5) A procuring entity shall, upon request -

(a) furnish any member of the general public with

the names of all tenderers who are pre-

qualified;

(b) communicate to tenderers the ground for their

rejection to pre-qualify, and the procurement

entity shall not be required to specify the

evidence or give the reasons.

Confirmatio

n of

verification

information

124. The verification of the information provided in

the submission for pre-qualification shall be confirmed

through a post – qualification process before the notice of

intention to award the tender is communicated to the tenderers,

and award may be denied to a tenderer who is assessed to have

no capability or resources to successfully perform the contract.

Waiver of

certain

requirements

125.-(1) In a situation where all firms fail to pre-

qualify on the basis of the prescribed requirements, the

procuring entity may revise some of the requirements and

evaluate all firms on the basis of the revised requirements with

a view to ensuring that they satisfy the conditions during the

tendering of the goods, works or services.

(2) In revising the requirements under sub-

regulation (1), the procuring entity may vary, waive or alter

the prescribed requirements.

(3) Notwithstanding sub regulation (1), the

procuring entity shall not revise requirements establishing the

tenderer’s experience in carrying out assignments of similar

nature and his capability to finance the assignment.

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104

Tender

relating to

public

security

126. Where the contract involves access to

confidential information-

(a) a procuring entity shall notify the tenderer of

the security classification of the contract,

elements of the contract and any subsequent

revisions in such security classification;

(b) the tenderer shall, prior to the commencement

of the contract, safeguard all classified

elements of the contract and shall provide and

maintain a system within his own organisation;

and

security or police force shall have the right to

inspect the procedures, methods and facilities

utilised by the tenderer or the compliance by

the tenderer with the security requirements

under the contract.

Appointment

of a

consultant

for

procurement

of works

127.-(1) Where the appointment of a consultant is

considered necessary for the effective procurement of works,

which has not already been undertaken, a procuring entity

shall complete selection proceedings and enter into a contract

with the selected consultant in accordance with the provisions

of these Regulations in sufficient time for that consultant to

review the tender documents prior to the issue of tender.

(2) The responsibilities of a consultant in terms of

their employment agreement may include the preparation of

tendering documents.

(3) Subject to sub-regulation (2) the requirements

affecting the procuring entity shall be detailed in writing to the

consultant, including the need to use standard tendering

documents and associated forms in all tendering documents.

(4) The draft tendering documents prepared by a

consultant shall be scrutinized by the procurement

management unit to ensure compliance with sub-regulation (3)

before they are submitted to the tender board for approval.

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105

Types of

works or

services

contracts

128. Works and non-consultant contracts may be

separated into types specified in the Seventeenth Schedule to

these Regulations.

Turnkey

contracts

129.-(1) A procuring entity may issue a tender for a

turnkey contract involving a major specialised works project if

the supply of goods and the performance of various works

need to be closely integrated.

(2) Without prejudice sub-regulation (1), the design

and engineering, supply and installation of equipment and the

construction of the complete plant or works shall be provided

by a single contractor under one contract procured through

international or national competitive methods of procurement

approved by the tender board.

(3) A procuring entity may-

(a) remain responsible for the design and

engineering, and may, in addition, invite tenders

for a single contractor to take responsibility for

the supply and installation of all goods and for

the works required for a project;

(b) issue a tender for a single contract for all

components of the design and works (“design

and build”) contract, and may, in addition, issue

separate tenders for the supply of the goods

required for a project;

contractor who may subcontract all the design,

engineering, supply and works components of a

project and who shall be responsible for the

timely completion of the project and all

attendant risks which may be involved.

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106

PART IV

PROCUREMENT OF SECTOR SPECIFIC GOODS AND SERVICES

(a) Procurement of common use items and services

Procurement

from the

Agency

130.-(1) A procuring entity shall procure from the

Agency any item included in the approved current stores

catalogue where such item is available at lower prices than

current market prices.

(2) The Agency shall, on quarterly year basis, publish

in the Gazette, Journal and Tenders Portal, the descriptions of

items available on the stores catalogue.

(3) Where the procuring entity submits to the Agency

a request for purchase of items in the store catalogue and such

items are not available, the Agency shall, within one working

day of receipt of the request, issue a non availability certificate

to the procuring entity.

(4) On receipt of the certificate referred to in sub-

regulation (3), a procuring entity may opt for another

appropriate procurement method.

(5) A procuring entity shall procure from the Agency

clearing and forwarding service where such service is

available at lower prices than current market prices.

Procurement

of common

use items

and services

131.-(1) The Agency shall arrange for procurement of

common use items and services by procuring entities through

framework agreements.

(2) A framework agreement under this regulation

shall not be less than one year and not more than three years.

(3) The Agency shall publish in the Journal and

Tenders Portal the list of suppliers and service providers

awarded framework agreements.

(4) A procuring entity shall-

(a) by the end of January each year, submit to the

Agency, their provisional annual estimates of the

required common use items and services which

shall include descriptions, specifications,

statement of requirements and quantities;

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107

(b) procure common use items and services from

tenderers awarded framework agreements by the

Agency through placing of call off orders

prepared by the procurement management unit

and approved by the accounting officer or any

delegated officer;

reports on procurement made through

framework agreements indicating the names of

suppliers, description of goods or services,

quantity and the value.

(5) In the case of common use items and services

falling under open framework agreements, the procuring entity

shall seek approval of the tender board to conduct a mini

competition amongst the suppliers or services providers

awarded framework agreements.

(6) Where the procuring entity contracts out the

procurement and disposal by tender functions to the Agency,

procurement procedures to be followed shall be in accordance

with these Regulations.

(7) The Agency may on annual basis provide an

opportunity to new tenderers to participate in tendering

process for common use items and services and the names of

successful tenderers shall be included in the current list of

suppliers and service providers.

Obligations

of parties to

the

framework

arrangement

132.-(1) A tenderer who has entered into framework

agreement with the Agency shall comply with terms and

conditions of the agreement, and shall-

(a) honour call off orders prepared and submitted by

procuring entities in respect of framework

agreements signed;

(b) supply and deliver all goods and services to the

procuring entity at the rates, prices and at places

stated in the framework agreement and call off

order;

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108

for approval, and all goods supplied shall be in

accordance with the approved samples;

(d) indemnify the procuring entity in the case of

damage or loss of benefit caused by delay in

delivery or any other act;

(e) prepare and submit to the Agency a monthly sales

report indicating the value of goods and services

sold to procuring entity through call off orders;

(f) pay fees to the Agency as prescribed in the Fifth

Schedule to these regulations.

(2) The procuring entity shall prepare and place call

off orders to tenderers who are awarded framework

agreements, and, in particular, shall be responsible for-

(a) effecting payments for goods and services

delivered and accepted;

(b) claiming for damages caused by delayed delivery

or any other act; and

breach of contract or unsatisfactory performance by a

tenderer under framework agreements.

(3) The Agency shall prepare and sign framework

agreements with tenderers, and, in particular, shall be

responsible for receiving and reviewing reports on default of

framework agreements from procuring entities and where a

breach of contract is determined, submit a proposal for

debarment of a tenderer to the Authority.

(4) Where reported cases of non performance by

tenderer persist, the Agency may terminate framework

agreement and report the matter to the Authority.

Agency may

make price

adjustment

133.-(1) The Agency may, at any time during the

contract execution, accept a request to make price adjustment

and shall make a comparison of the prices requested against

the international price indicator guides and verify the

justification for such price adjustment.

(2) The Agency shall determine the factor or

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109

percentage for price adjustment which shall be approved by

the Authority.

(3) The Agency shall, in each financial year, prepare

and make available to procuring entities, a schedule of prices

to be adhered to by such procuring entities in procurement of

common used items and services.

(4) The Minister responsible for works shall, in each

financial year, prepare and make available to the Agency a

schedule of unit rates to be adhered to by procuring entities in

procurement relating to construction works.

Payment of

fees to

Agency

134. The Authority, Appeals Authority, procuring

entities and tenderers shall pay fees to the Agency for

procurement services rendered by the Agency as prescribed in

the Fifth Schedule to these Regulations.

Procurement

procedures

of the

Agency

135.-(1) The Agency shall procure stock items for re-

sale for inclusion in the stores catalogue from manufacturers,

whole sellers or any other source which offer best value for

money.

(2) The Agency may procure petroleum products

directly from any source where such products meet the

required standards and are available at competitive prices.

(3) Subject to sub-regulation (2), the authorised

procurement limit for the Agency shall be as prescribed in the

Fourth Schedule to these Regulations.

(b) Procurement of maintenance and repair of motor vehicles, plant and

equipment, and the installation of electrical, refrigeration, air

conditioning and electronics services in buildings owned by Government

Procurement

of motor

vehicles,

heavy plant,

equipment

and spare

parts.

136.-(1) The ministry responsible for electrical, and

mechanical engineering shall prepare detailed and acceptable

schedule of requirements and specifications which shall be

made available to the Authority for use by procuring entities

when procuring such items.

(2) The Secretary to the Cabinet may, on the direction

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110

of the Cabinet and on the advice of the ministry responsible

for electrical, and mechanical engineering, determine the type,

make and size of motor vehicles or other motorised equipment

to be procured for official use of specified state officials or

other senior Government officers and shall issue a circular for

that purpose.

(3) The preferred motor vehicles or other motorised

equipment under sub-regulation (2) of this regulation shall be

procured directly from the manufacturer of the motor vehicles

or through competitive quotations from reputable authorised

local and international suppliers or dealers of the specified

vehicles.

(4) The Authority shall liaise with the ministry

responsible for electrical, and mechanical engineering to

produce standard specification documents for use by the

procuring entities.

(5) Notwithstanding the provisions of sub regulations

(2) and (3) of this regulation, the approval of the Government

or any organisation for any specific department of

Government, ministry or region to increase the fleet of

equipment or vehicles shall not specify the make of such

equipment or vehicles and equipment or vehicle shall be

procured through competitive tendering.

(6) For the purposes of this regulation, “motor

vehicles and heavy plant” include both fixed and movable

plant and machinery such as engines, generators boilers,

lories, motor cars, motor cycles, tractors, road rollers and

motor graders.

Procurement

of Electrical,

Mechanical

and

Electronics

services

137.-(1) The agency responsible for-

(a) maintenance and repair of government-owned

motor vehicles, plant and equipment; and

(b) maintenance, repair and installation of electrical,

air conditioning and refrigeration, and

electronics services in government owned

installations,

shall on annual basis, prepare a standing short-

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111

list of services providers through pre-

qualification.

(2) The agency shall-

(a) carry out maintenance or repair of Government

owned motor vehicles, plant and equipment,

maintenance, repair and installation of electrical,

air conditioning and refrigeration and electronics

services;

(b) arrange, through open or closed framework

agreements, for procurement of-

(i) maintenance and repair services of

government – owned motor vehicles,

plant and equipment;

(ii) maintenance, repair and installation of

electrical, air conditioning and

refrigeration, and electronics services;

list of service providers awarded framework

agreements;

(d) conduct inspection prior and after the service is

provided and shall issue a certificate of approval.

(3) Subject to sub regulation (2)(a), where the agency

is unable to carry out the repair and maintenance due to non

availability of spare parts, technical knowhow or other

resource constraints, it may procure such services from

service providers awarded closed framework agreements by

call off orders in consultation with the procuring entity.

(4) Every procuring entity shall-

(a) maintain a record of maintenance, repairs and

replacement of each motor vehicle, piece of

plant and equipment, maintenance, repair and

installation of electrical, air conditioning and

refrigeration, and electronics services for

inspection by the ministry responsible for

electrical, machinery and mechanical

engineering, the Controller and Auditor General,

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112

the Authority and the agency;

(b) submit to the agency quarterly reports on

procurement made through framework

agreements indicating the names of service

providers, description of services and value.

Equipment

Procurement

of computers

and other

information

technology

Equipment

and tools

138.-(1) The ministry responsible for information

technology services shall prepare detailed and acceptable

schedule of requirements, standards and specifications which

shall be made available to the Authority for use by the

procuring entities in the procurement of computers and other

related information technology equipment and tools.

(2) For the purposes of this regulation “computers

and other related information technology equipment and tools”

includes computers of any type, computer printers, scanners,

servers, storage media, software and local area networks.

(d) Procurement of medicines and medical supplies

Definition

139. For purpose of this Sub-Part-

Cap. 219

“catalogue items” means approved list of medicines and

medical supplies stocked by the Department;

“Department” means the Medical Stores Department;

“medicines” shall have the meaning ascribed to it by the

Tanzania Food, Drugs and Cosmetics Act.

“medical supplies” or “medical devices” shall have the

meaning ascribed to it by the Tanzania Food, Drugs

and Cosmetics Act; and

“non catalogue items” means the list of medicines and

medical supplies which are not stocked by the

Department;

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113

Procurement

of Catalogue

items

140.-(1) The Department shall maintain a list of

catalogue items which shall be published on a yearly basis in

the Tenders Portal and Journal.

(2) Procuring entities shall, by the end of January

each year, submit to the Department the provisional annual

estimates of the required catalogue items including

descriptions, specifications, statement of requirements and

quantities.

(3) The Department shall arrange for procurement of

catalogue items which are required continuously or repeatedly

over a set period of time and which are common to more than

one procuring entity and may be procured through framework

agreements by placing call off orders.

(4) A procuring entity shall place order to the

Department for any item included in the price catalogue

within one working day after reaching the buffer stock.

(5) Where the catalogue items requested to be

purchased by the procuring entity are not available, the

Department shall, within one working day of receipt of the

request, issue a non availability notice to the procuring entity.

(6) Upon receipt of the non availability notice, the

procuring entity may opt for another appropriate procurement

method.

Procurement

of non

catalogue

items

141.-(1) Procuring entities shall, by the end of

January each year, submit to the Department the provisional

annual estimates of the required non catalogue items which

shall include descriptions, specifications, statement of

requirements and quantities.

(2) The Department shall arrange for procurement of

non catalogue items that are required continuously or

repeatedly over a set period of time and are common to more

than one procuring entity and are subject to common

procurement.

(3) The Department shall procure non catalogue

items for use by procurement entities from suppliers awarded

framework agreements through placing of call off orders.

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114

Procurement

procedures of

the

Department

142.-(1) The Department shall procure catalogue and

non catalogue items from manufacturers, wholesalers or any

other source which offer best value for money using

framework agreements.

(2) In the case of common use items and services

falling under open framework agreements, the Department

shall, upon prior approval of the tender board, conduct a

mini-competition amongst the providers who are awarded

framework agreements.

(3) The framework agreements may be concluded

with more than one provider for one product where in the

opinion of the tender board, one provider cannot meet the full

requirements of the Department.

(4) Where the Department intends to conclude a

framework agreement with more than one provider, the tender

documents shall clearly state that the contract shall be

awarded to more than one provider.

(5) A Framework agreement under this regulation

shall not exceed three years.

Department

may make

price

adjustment

143.-(1) The Department may, at any time during the

contract execution, accept a request to make price adjustment

and shall make a comparison of the prices requested against

the international price indicator guides and verify the

justification for such price adjustment.

(2) The Department shall determine the factor or

percentage for price adjustment which shall be approved by

the Authority.

General

criterion on

procurement

of catalogue

and non

catalogue

item

144. The Department may procure catalogue and non

catalogue items from any prequalified source if the items

meet the required standards and are available at competitive

prices.

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115

Publication of

list of

suppliers

145. The Department shall publish, in the Tenders’

Portal and the Journal, the list of suppliers who are awarded

framework agreements in accordance with regulation 20 of

these Regulations.

Specifications

for medicines

and medical

supplies

146. The Department shall prepare a detailed and

acceptable schedule of requirements and specifications for

medicines and medical supplies which shall be submitted to

the Authority for use by procuring entities for the

procurement of the supplies.

Procurement

of other

sector

specific

goods

147. The Ministries responsible for specific sector

goods shall prepare detailed specifications which shall be

made available to the Authority for use by procuring entities

in the procurement of goods.

PART V

METHODS OF PROCUREMENT AND THEIR CONDITIONS FOR

USE

(a) Rules applicable to the selection of procurement method

Pre-

qualification

148. Before inviting open tenders, a procuring entity

may consider pre- qualifying tenderers in accordance with

regulation 120 with a view to identify tenderers who possess

the necessary resources and competence for completion of the

eventual contract.

Method of

procurement

149.-(1) The procurement of goods, works and non

consultancy services through international and national

competitive tendering prescribed in these Regulations shall be

considered before other methods of tendering prescribed in

these Regulations are used.

(2) Subject to the prior approval, in writing, of the

tender board, other methods of procurement may be used

where it is established that such methods may have due

regard for transparency, economy and efficiency in the

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116

implementation of the project.

(3) Where a procuring entity uses a method of

procurement pursuant to sub-regulation (2), the procuring

entity shall include, in the record required under regulation

15, a statement of the grounds and relied circumstances with a

view to justify the use of the method.

(4) A procuring entity may select an appropriate

alternative method of procurement if-

(a) the competitive tendering is not considered to be

the most economic and efficient method of

procurement; and

(b) the nature and estimated value of the goods,

works, or services permit.

(b) Open tendering procedures

International

competitive

tendering

150.-(1) In international competitive tendering, a

procuring entity shall, through a notice advertised nationally

and internationally, invite tenderers regardless of their

nationality, to submit priced tenders for goods, works or

services or purchase of public assets.

(2) The international competitive tendering shall be

used if-

(a) payment, in whole or in part, is made in a foreign

currency; or

(b) it is desired to attract tenders from the widest

range of tenderers regardless of the estimated

value of the goods or works to be procured.

(3) A procuring entity shall advertise tenders under

international competitive tendering in accordance with the

First Schedule to these Regulations.

(4) For large or specialised contracts, the appropriate

tender board may, in addition, require the invitation to tender

to be advertised in technical magazines, trade publications or

in newspapers of wide international circulation.

(5) Notification shall be given in sufficient time to

enable prospective tenderers to obtain pre-qualification or

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117

tender documents and prepare and submit their responses.

(6) Domestic or national preference shall apply in the

evaluation of tenders if stated in the solicitation documents.

National

competitive

tendering

151.-(1) In national competitive tendering, a

procuring entity shall, through a notice advertised only in the

United Republic, invite tenderers regardless of their

nationality, to submit priced tenders for goods, services,

works or purchase of public assets.

(2) The national competitive tendering may be used

if-

(a) payment is made wholly in Tanzanian shillings;

(b) the goods, works or services are available locally

at prices below the international market;

services does not exceed the threshold for open

international tendering prescribed in the Seventh

Schedule to these Regulations;

(d) works or services are scattered geographically or

spread over time;

(e) works are labour intensive;

(f) the advantages of international competitive

tendering are clearly outweighed by the

administrative or financial burden are involved;

(3) Notification of the invitation to tender shall be

given in sufficient time to enable prospective tenderers to

obtain pre-qualification or tender documents and prepare and

submit their responses.

(4) Domestic or national preference shall apply in the

evaluation of tenders under the national competitive tendering

where foreign firms have participated.

Restricted

tendering

152.-(1) A procuring entity may restrict the issue of

tender documents to a limited number of specified tenderers

if-

(a) the suppliers, contractors or service providers

have already been pre-qualified further to

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118

regulations 119 of these Regulations;

(b) the goods, works, or services required are of a

specialised nature or can be obtained from a

limited number of specialised contractors, service

providers or reputable sources;

services such that there would be insufficient time

for a procuring entity to engage in open national

or international tendering, and that the

circumstances giving rise to the urgency could

not have been foreseen by a procuring entity and

have not been caused by dilatory conduct on its

part; or

(d) there is a need to achieve certain social objectives

by calling for participation of local communities

or local firms.

(2) Restricted tendering may, in particular, be used by

a procuring entity for setting aside contracts for the purpose

of building the capacity of local firms.

(3) The justification for restricting procurement under

sub-regulation (1) and (2) shall be prescribed in the record of

procurement proceedings made pursuant to regulation 15.

(4) Except where tenderers have already been pre-

qualified, a procuring entity issuing a restricted tender shall

seek tenders from a broad list of potential tenderers with a

view to assuring competitive prices.

(5) In cases where only a limited number of tenderers

are expected to tender, the list shall include all such tenderers.

(6) Except for advertisement and issuance of tenders,

the procedures for competitive tendering prescribed in these

Regulations shall apply.

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(b) Procurement methods involving negotiations

(c)

Conditions

for use of

two-stage

tendering,

request for

proposals or

competitive

negotiations

153.-(1) A procuring entity may engage in

procurement by means of two-stage tendering if-

(a) the procuring entity establishes that prior

discussions with suppliers or contractors are

needed to refine aspects of the description of the

subject matter of the procurement and to formulate

them with the detail required in order to obtain the

most satisfactory solution to its procurement

needs;

(b) the tendering proceedings have been engaged in

but no tenders were submitted, or all tenders were

rejected by a procuring entity pursuant to

regulation 16, and in the judgment of the

procuring entity, engaging in new tendering

proceedings would be unlikely to result in a

procurement contract.

(2) A procuring entity may engage in procurement by

means of request for proposals with simultaneous

negotiations if-

(a) it is not feasible for the procuring entity to

formulate a detailed description of the subject

matter of the procurement, and in its assessment,

simultaneous negotiation with tenderers is needed

to obtain the most satisfactory solution to its

procurement needs;

(b) the procuring entity seeks to enter into a contract

for the purpose of research, experiment, study or

development, except where the contract includes

the production of items in quantities sufficient to

establish their commercial viability or to recover

research and development costs;

procurement of goods, works or services for

national defence or national security;

(d) the tendering proceedings have been engaged in

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120

but no tenders were submitted, or all tenders were

rejected by a procuring entity pursuant to

regulation 16, and in the judgment of the

procuring entity, engaging in new tendering

proceedings would be unlikely to result in a

procurement contract;

(e) due to the technical character of the goods or

works, or the nature of the services, it is necessary

for the procuring entity to negotiate with tenderers.

(3) A procuring entity may engage in procurement by

means of request for proposal with consecutive negotiation

if-

(a) it needs to consider the financial aspects of

proposals separately and only after completion of

examination and evaluation of the quality and

technical aspects of the proposals, and

(d) it establishes that consecutive negotiations with

tenderers are needed in order to ensure that the

financial terms and conditions of the procurement

contract are acceptable to the procuring entity.

(4) A procuring entity may engage in procurement by

means of competitive negotiation if-

(a) there is an urgent need for the goods, works or

services, and engaging in tendering proceedings

would be impractical, and the circumstances

giving rise to the urgency were neither foreseeable

by the procuring entity nor the result of dilatory

conduct on its part; or

(b) owing to a catastrophic event, there is an urgent

need for the goods, works or services, making it

impractical to use other methods of procurement

because of the time involved in using the methods;

(e) the procuring entity seeks to undertake

procurement of goods, works, or services for

national defence or national security.

(f)

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121

Two- stage

tendering

154.-(1) The provisions of these regulations for open

tendering shall apply to two-stage-tendering proceedings,

except where those provisions are derogated from, in this

regulation.

(2) The solicitation documents shall call upon

tenderers to present, in the first stage of two-stage-tendering

proceedings, initial tenders containing their proposals without

a tender price.

(3) The solicitation documents may solicit proposals

relating to the technical, quality or performance

characteristics of the subject matter of the procurement,

contractual terms and conditions of supply and, where

relevant, the professional and technical competence and

qualifications of the tenderers.

(4) A procuring entity may, in the first stage, engage

in discussions with tenderers whose initial tenders have not

been rejected pursuant to the provisions of these Regulations

concerning any aspect of their initial tenders.

(5) Without prejudice to sub-regulation (4), when a

procuring entity engages in discussions with any tenderers, it

shall extend an equal opportunity to participate in discussions

to all tenderers.

(6) In the second stage of two-stage-tendering

proceedings, a procuring entity shall invite all tenderers

whose initial tenders were not rejected in the first stage to

present final tenders with prices in response to a revised set of

terms and conditions of the procurement;

(7) In revising the relevant terms and conditions of

the procurement, the procuring entity shall not modify the

subject matter of the procurement but may refine aspects of

the description of the subject matter of the procurement by-

(a) deleting or modifying any aspect of the technical,

quality or performance characteristics of the

subject matter of the procurement initially

provided and adding any new characteristics that

conform to the requirements of these regulations;

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122

(b) deleting or modifying any criterion for examining

or evaluating tenders initially provided and adding

any new criterion that conforms to the

requirements of these regulations, only to the

extent that the deletion, modification or addition is

required as a result of changes made in the

technical, quality or performance characteristics of

the subject matter of the procurement.

(8) Any deletion, modification or addition made

pursuant to sub-regulation (7) shall be communicated to

tenderers in the invitation to present final tenders.

(9) A tenderer who does not wish to present a final

tender may withdraw from the tendering proceedings without

forfeiting any tender security that the tenderer may have been

required to provide.

(10) The final tenders shall be evaluated with a view

to ascertaining the successful tender.

Request for

proposal with

simultaneous

negotiations

155.-(1) In the request for proposals with

simultaneous negotiations, a procuring entity shall solicit

proposals by causing an invitation to participate in

proceedings to be published unless an exception is expressly

provided for under open tendering applies.

(2) The invitation shall include-

(a) the name and address of a procuring entity;

(b) a description of the subject matter of the

procurement, to the extent known, and the desired

or required time and location for the provision of

such subject matter;

contract, to the extent that they are already known

to the procuring entity, and the form of the

contract, if any, to be signed by the parties;

(d) the intended stages of the procedure;

(e) the criteria and procedures to be used for

ascertaining the qualifications of tenderers and any

documentary evidence or other information that

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123

must be presented by tenderers to demonstrate

their qualifications, in conformity with Regulation

116;

(f) the minimum requirements that proposals must

meet in order to be considered responsive in

accordance with Regulation 122(2) and the terms

and conditions of the procurement contract, and a

statement that proposals that fail to meet those

requirements will be rejected as non-responsive;

(g) a declaration pursuant to conditions for

participation of tenderers;

(h) the means of obtaining the request for proposals

and the place where it may be obtained;

(i) the price, if any, to be charged by the procuring

entity for the request for proposals;

(j) if a price is to be charged for the request for

proposals, the means and currency of payment;

(k) the language or languages in which the request for

proposals is available;

(l) the manner, place and deadline for presenting

proposals.

(3) For the purpose of limiting the number of

tenderers who request for proposals, a procuring entity may

engage in prequalification or pre-selection proceedings.

(4) The procuring entity shall specify in the

prequalification or pre-selection documents that it will request

proposals from only a limited number of pre-selected

tenderers that best meet the qualification criteria specified in

the prequalification or pre-selection documents.

(5) The prequalification or pre-selection documents

shall set out the maximum number of pre-selected tenderers

from which the proposals will be requested and the manner in

which the selection of that number will be carried out, and the

procuring entity shall bear in mind the need to ensure

effective competition.

(6) The procuring entity shall rate the tenderers that

meet the criteria specified in the prequalification or pre-

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124

selection documents according to the manner of rating that is

set out in the invitation to prequalify or pre-selection and the

prequalification or pre-selection documents, respectively.

(7) A procuring entity shall pre-select tenderers that

acquired the best rating, up to the maximum number indicated

in the prequalification or pre-selection documents but shall

not be less than three, wherever possible.

(8) A procuring entity shall promptly notify each

tenderer whether it has been pre-selected and shall, upon

request, communicate to tenderers that have not been pre-

selected the reasons thereof and shall make available to any

person, upon request, the names of all tenderers that have

been pre-selected.

(9) A procuring entity shall issue the request for

proposals where-

(a) an invitation to participate in the request-for-

proposals-with simultaneous negotiations

proceedings has been published in accordance

with the provisions of these Regulations, to each

tenderer responding to the invitation in accordance

with the procedures and requirements specified

therein;

(b) pre-qualification has been conducted, to each

tenderer

pre-qualified in accordance with prequalification

proceedings set out in these Regulations;

each

pre-selected tenderers in accordance with the

procedures and requirements specified in the pre-

selection documents;

(d) in case of single source selection, to each tenderer

selected by a procuring entity;

(e) a tenderer has paid the fee, if any, charged for the

request for proposals, which shall reflect only the

cost of providing it to tenderers.

(10) The request for proposals shall include, in

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125

addition to the information referred to in sub-regulation (2)(a)

to (f) and (l) of this regulation, the following information:

(a) instructions for preparing and presenting

proposals;

(b) if tenderers are permitted to present proposals for

only a portion of the subject matter of the

procurement, a description of the portion or

portions for which proposals may be presented;

price is to be formulated and expressed, the

currency that will be used for the purpose of

evaluating proposals and either the exchange rate

that will be used for the conversion of proposal

prices into that currency or a statement that the

rate published by a specified financial institution

and prevailing on a specified date will be used;

(d) the manner in which the proposal price is to be

formulated and expressed, including a statement as

to whether the price is to cover elements other

than the cost of the subject matter of the

procurement itself, such as reimbursement for

transportation, lodging, insurance, use of

equipment, duties or taxes;

(e) the means by which, pursuant to regulation 13,

tenderers may seek clarification of the request for

proposals and a statement as to whether the

procuring entity intends to convene a meeting of

tenderers at this stage;

(f) any element of the description of the subject

matter of the procurement or term or condition of

the procurement contract that will not be the

subject of negotiations during the procedure;

(g) where the procuring entity intends to limit the

number of tenderers that it will invite to

participate in the simultaneous negotiations, the

minimum number of tenderers, which shall be not

less than three, wherever possible, and, where

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126

appropriate, the maximum number of tenderers

and the criteria and procedure, in conformity with

the provisions of these regulations, that will be

followed in selecting either number;

(h) the criteria and procedure for evaluating the

proposals;

(i) references to the Act, these Regulations, and other

laws and regulations directly pertinent to the

procurement proceedings, including those

applicable to procurement involving classified

information, and the place where those laws and

regulations may be found;

(j) the name, functional title and address of the person

authorized to communicate directly with and to

receive communications directly from tenderers in

connection with the procurement proceedings

without the intervention of an intermediary;

(k) notice of the right provided under Section 95 of

the Act to challenge or appeal against decisions or

actions taken by a procuring entity that are

allegedly not in compliance with the provisions of

the Act or these regulations, together with

information about the duration of the applicable

standstill period and, if none will apply, a

statement to that effect and the reasons thereof;

(l) any formalities that will be required, once a

successful offer has been accepted, for a

procurement contract to enter into force,

including, where applicable, the execution of a

written procurement contract, and the estimated

period of time following dispatch of the notice of

acceptance that will be required to obtain the

approval;

(m) any other requirement that may be established by

the procuring entity in conformity with the Act

and these Regulations relating to the preparation

and presentation of proposals and to the

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127

procurement proceedings;

(11) A procuring entity shall examine all proposals

received against the established minimum requirements and

shall reject each proposal that fails to meet these minimum

requirements on the ground that it is non-responsive.

(12) Where a maximum limit on the number of

tenderers that can be invited to participate in the dialogue has

been established and the number of responsive proposals

exceeds that limit, the procuring entity shall select the

maximum number of responsive proposals in accordance with

the criteria and procedure specified in the request for

proposals.

(13) A notice of rejection and the reasons for the

rejection shall be promptly dispatched to each respective

tenderers whose proposal was rejected.

Conducting

simultaneous

negotiations

156.-(1) A procuring entity shall invite each tenderer

that presented a responsive proposal, within any applicable

maximum number of tenders, to participate in the

simultaneous negotiations.

(2) A procuring entity shall ensure that the number of

tenderers invited to participate in the simultaneous

negotiations, which shall be at least three, is sufficient to

ensure effective competition.

(3) The negotiations shall be conducted by the same

representatives of the procuring entity on a concurrent basis.

(4) In the course of the negotiations, a procuring

entity shall not modify the subject matter of the procurement,

any qualification or evaluation criterion or any minimum

requirements established pursuant to regulations 116 and

121(2) of these Regulations any element of the description of

the subject matter of the procurement or any term or

condition of the procurement contract that is not subject to the

dialogue as specified in the request for proposals.

(5) Any requirements, guidelines, documents,

clarifications or other information generated during the

negotiations that is communicated by the procuring entity to a

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128

tenderer shall be communicated at the same time and on an

equal basis to all other participating tenderers, unless such

information is specific or exclusive to that tenderer or such

communication would be in breach of the confidentiality

provisions of Regulation 306.

(6) Following the negotiations, the procuring entity

shall request all tenderers remaining in the proceedings to

present a best and final offer with respect to all aspects of

their proposals. The request shall be in writing and shall

specify the manner, place and deadline for presenting best

and final offers.

(7) No negotiations shall take place between the

procuring entity and tenderers with respect to their best and

final offers.

(8) The successful offer shall be the offer that best

meets the needs of the procuring entity as determined in

accordance with the criteria and procedure for evaluating the

proposals set out in the request for proposals.

Request for

proposals

with

consecutive

negotiations

157.-(1) Except where it is derogated by this

regulation, regulation 162 (1) and (2) shall, with minimum

variations, apply to procurement conducted by means of

request for proposals with consecutive negotiations.

(2) Proposals whose technical, quality and

performance characteristics meet or exceed the relevant

minimum requirements shall be considered to be responsive

and the procuring entity shall rank each responsive proposal

in accordance with the criteria and procedure for evaluating

proposals set out in the request for proposals, and shall-

(a) promptly communicate to each tenderer presenting

a responsive proposal the score of the technical,

quality and performance characteristics of its

respective proposal and its ranking;

(b) invite the tenderer that has attained the best

ranking, in accordance with such criteria and

procedure, for negotiations on the financial aspects

of its proposal; and

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129

proposals that their proposals may be considered

for negotiation if negotiations with the tenderer

with a better ranking do not result in a

procurement contract.

(3) Where it is apparent to the procuring entity that

the negotiations with the invited tenderer may not result in a

procurement contract, the procuring entity may terminate the

negotiations and shall, thereafter, communicate to the

tenderer its decision to terminate the negotiations.

(4) The procuring entity shall, where it has terminated

negotiations under sub-regulation (3), invite for negotiations a

tenderer who has attained the second-best ranking and, where

the negotiations with that tenderer do not result in a

procurement contract, the procuring entity shall invite the

other tenderer still participating in the procurement

proceedings for negotiations on the basis of the ranking until

the procuring entity concludes a procurement contract or

rejects all remaining proposals.

(5) In the course of negotiations, the procuring entity

shall not modify the subject matter of the procurement,

qualification, examination or evaluation criterion, including

any established minimum requirements, an element of the

description of the subject matter of the procurement or term

or condition of the procurement contract other than financial

aspects of proposals which are subject to the negotiations as

specified in the request for proposals.

(6) The procuring entity shall not re-open negotiations

with any tenderer to whom it has terminated negotiations

under these Regulations.

Competitive

negotiations

158.-(1) Where the procuring entity engages in

procurement by means of competitive negotiations, it shall

engage in negotiations with a sufficient number of tenderers

to ensure effective competition.

(2) Prior to the solicitation, the procuring entity shall

cause a notice of the procurement to be published in the

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130

Journal and Tenders Portal.

(3) The notice shall contain the following

information:

(a) the name and address of the procuring entity;

(b) a summary of the principal required terms and

conditions of the procurement contract or the

framework agreement to be entered into in the

procurement proceedings, including the nature,

quantity and place of delivery of the goods to be

supplied, the nature and location of the

construction to be effected or the nature of the

services and the location where they are to be

provided, and the desired or required time for the

supply of the goods, the completion of the

construction or the provision of the services;

tenderers in the procurement proceedings is

limited and on which ground; and

(d) the method of procurement to be used.

(4) Any requirements, guidelines, documents,

clarifications or other information relative to the negotiations

that is communicated by the procuring entity to a tenderer

before or during the negotiations, shall be communicated at

the same time and on an equal basis to all other tenderers

engaging in negotiations with the procuring entity relative to

the procurement.

(5) Notwithstanding sub-regulation (4), the procuring

entity shall not communicate the information under sub-

regulation (4) to all other tenderers if the information is

specific or exclusive to the particular tenderer or the

communication would be in breach of the confidentiality

provisions of the Act and these regulations.

(6) Following completion of negotiations, the

procuring entity shall request all tenderers remaining in the

proceedings to present, by a specified date, a best and final

offer with respect to all aspects of their proposals.

(7) Negotiations shall not take place between the

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131

procuring entity and tenderers in respect of the best and final

offers submitted by the tenderers.

(8) The successful offer shall be the offer that best

meets the needs of the procuring entity.

Single source

procurement

for goods or

services

159.-(1) Subject to approval by the tender board, a

procuring entity may engage in a single-source procurement

in accordance with sub-regulation (3) under the following

circumstances:

(a) the goods or services are available only from a

particular tenderer who has exclusive rights in

respect of the goods or services, and no reasonable

alternative or substitute exists (sole-sourcing); or

(b) there is an urgent need for the goods or services,

and engaging in tendering proceedings or any

other method of procurement would therefore, be

impractical, provided that the circumstances

giving rise to the urgency were neither foreseeable

by the procuring entity nor the result of dilatory

conduct on its part; or

equipment, technology, services or spare parts

from a supplier, following national or international

competitive tendering satisfactory to these

Regulations, determines that additional supplies of

the same type as those purchased under an existing

contract are required; or

(d) a procuring entity seeks to enter into a contract

with a tenderer for the purpose of research,

experiment, study or development, except where

the contract includes the product of goods in

quantities to establish their commercial viability or

to recover research and development costs; or

(e) procurement involving national defence or

national security and where it is determined that a

single - source procurement is the most

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132

appropriate method of procurement; or

(f) where critical items need to be purchased from a

specified supplier to ensure that the output of a

process plant shall be guaranteed by the contractor

responsible for the process design; or

(g) where standardization of equipment is essential for

economic and technical reasons and it has been

proved to the tender board’s satisfaction that

compatibility of the existing equipment with

another make of equipment cannot be established

and that there is no advantage in having an

alternative supplier; or

(h) where standardization of spare parts is required so

that they may be compatible with existing

equipment or spare parts or stock items related to

specific and specialized equipment or machinery;

(i) where an on-going project, additional items need

to be purchased for the completion of

implementation.

(2) For purposes of these Regulations, standardization

is considered to be appropriate if the original equipment is

suitable for the purposes of the project being financed and

have been acquired at reasonable prices through national or

international competitive tendering satisfactory to the tender

board and that the number of the new items to be added is less

than the existing value and cannot be obtained from other

sources.

(3) In the circumstances prescribed under sub-

regulation (1), a procuring entity may procure the goods or

services, by soliciting proposal or price quotation from a

single supplier.

Procedure for

single source

160.-(1) Subject to approval by the tender board a

procuring entity may engage in single-source procurement

when procurement from a particular supplier or service

provider is necessary and in such a case, the letter of

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133

invitation to the selected tenderer shall contain-

(a) the full name and address of the procuring entity;

(b) instructions for submission of a quotation;

procured, including the required technical or

quality characteristics, specifications, designs,

plans and drawings, as appropriate;

(d) the quantities of any goods, or the desired results

of any service to be supplied or provided and the

required time and place of delivery, any

requirements for minimum performance, warranty

and maintenance for such goods or management

and reporting requirements of a service provider;

(e) whether any alternatives to the required

specifications or characteristics of the goods or

services, or to other contractual conditions, are to

be permitted;

(f) the period during which the quotation is to remain

valid;

(g) the form of contract or Local Purchase Order, to

include all conditions and terms of payment;

(h) a statement of the currency in which the supplier

or service provider will be paid;

(i) fees if any, to be charged by the procuring entity

for the tender document;

(j) a statement that the procuring entity does not bind

itself to accept the quotation.

(2) The procuring entity shall scrutinize any quotation

received and, where necessary, negotiate with the supplier

with a view to ensuring that the requirement for the goods or

services are complied with, and the price quoted is not

excessive and is in line with reasonable expectations.

(3) The procuring entity shall not make undesirable

reductions in the quality of the goods or services in order to

achieve cost savings.

(4) The justification for single source procurement

further to sub-regulations (1) to (5) shall be prescribed in the

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134

record of procurement proceedings made pursuant to

regulation 15.

Single source

procurement

for works

161.-(1) A procuring entity may obtain a priced

quotation from a single contractor, negotiate and enter into a

direct contract if-

(a) there is an urgent need for the works such that

there would be insufficient time for a procuring

entity to engage in tendering or any other method

of procurement, provided that the circumstances

giving rise to the urgency could not have been

foreseen by the procuring entity and have not been

caused by dilatory conduct on its part; or

(b) there is only one particular contractor which a

procuring entity can reasonably expect to

undertake the required works; or

a particular contractor who has undertaken or is

undertaking similar works or who may have

already been mobilised with plant, equipment and

staff in the vicinity or any other resources as may

be appropriate; or

(d) works which are under execution are to be

extended, and the corresponding contract is

awarded following national or international

competitive tendering.

(2) The letter of invitation to the selected contractor

shall contain-

(a) the full name and address of the procuring entity;

(b) instructions for submission of a quotation;

including the required technical or quality

characteristics, specifications, designs, plans and

drawings;

(d) bills of quantities, the location and the required

time for their completion;

(e) any alternatives to the required specifications or

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135

characteristics of the works, or to other contractual

conditions, if such alternatives are to be permitted;

(f) the period during which the quotation is to remain

valid;

(g) the form of contract or Local Purchase Order, to

include all conditions and terms of payment;

(h) a statement of the currency in which the contractor

will be paid;

(i) fees if any, to be charged by the procuring entity

for the tender document; and

(j) a statement that the procuring entity does not bind

itself to accept the quotation.

(3) A procuring entity shall scrutinize any quotation

received and, where necessary, negotiate with the contractor

with a view to ensuring that the requirement for the works is

properly addressed and the price quoted is not excessive and

is in line with reasonable expectations.

(4) A procuring entity shall not make undesirable

reductions in the quality and scope of the works in order to

achieve cost savings.

(5) The justification for direct contracting pursuant to

sub-regulation (1) shall be set out in the record of

procurement proceedings made in accordance with

Regulation 15.

(d) Procurement method that does not involve negotiations

Requests for

proposals

without

negotiation to

be arranged

162.-(1) A procuring entity may engage in

procurement by means of request for proposals without

negotiation where the procuring entity needs to consider the

financial aspects of proposals separately and only after

completion of examination and evaluation of the quality and

technical aspects of the proposals.

(2) Except where it is expressly provided otherwise

under these Regulations, a procuring entity shall invite

proposals through the request-for-proposals-without-

negotiation proceedings to be published in accordance with

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136

these Regulations.

(3) The invitation shall contain-

(a) the name and address of the procuring entity;

(b) a detailed description of the subject matter of the

procurement, and the desired or required time

and location for the provision of such subject

matter;

contract, to the extent that they are already

known to the procuring entity, and the form of

the contract, if any, to be signed by the parties;

(d) criteria and procedures to be used for

ascertaining the qualifications of tenderers and

any documentary evidence or other information

that must be presented by tenderers to

demonstrate their qualifications;

(e) criteria and procedures for opening the proposals

and for examining and evaluating the proposals,

including the minimum requirements with

respect to technical, quality and performance

characteristics that proposals must meet in order

to be considered responsive, and a statement that

proposals that fail to meet those requirements

will be rejected as non-responsive;

(f) a declaration whether the participation of

tenderers in the procurement proceedings is

limited and on which ground;

(g) the means of obtaining the request for proposals

and the place where it may be obtained;

(h) the price, if any, to be charged by the procuring

entity for the request for proposals;

(i) in the case a price is to be charged for the

request for proposals, the means and currency of

payment;

(j) the language in which the request for proposals

is available; and

(k) the manner, place and deadline for presenting

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137

proposals.

(4) Upon payment of the prescribed fee, if any, the

procuring entity shall issue the request for proposals-

(a) in the case of an invitation to participate in the

request-for-proposals-without-negotiation

proceedings has been published, to each tenderer

responding to the invitation in accordance with

the procedures and requirements specified in the

proposal;

(b) in the case of pre-qualification, to each tenderer

pre-qualified in accordance with these

regulations;

selected by the procuring entity.

(5) The request for proposals shall include, in addition

to the information referred to in sub-regulation (3) (a) to (e)

and (k) of this regulation, the following information:

(a) instructions for preparing and presenting

proposals, including instructions to tenderers to

submit simultaneously to the procuring entity

proposals in two envelopes, one envelope

containing the technical, quality and

performance characteristics of the proposal, and

the other envelope containing the financial

aspects of the proposal;

(b) in the case tenderers are permitted to present

proposals for only a portion of the subject matter

of the procurement, a description of the portion

or portions for which proposals may be

submitted;

price is to be formulated and expressed;

(d) the currency that will be used for the purpose of

evaluating proposals and either the exchange rate

that will be used for the conversion of proposal

prices into that currency or a statement that the

rate published by a specified financial institution

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GN. No. 446 (contd.)

138

and prevailing on a specified date will be used;

(e) the manner in which the proposal price is to be

formulated and expressed, including a statement

as to whether the price is to cover elements other

than the cost of the subject matter of the

procurement itself, such as reimbursement for

transportation, lodging, insurance, use of

equipment, duties or taxes;

(f) the means by which, tenderers may seek

clarification of the request for proposals, and a

statement as to whether the procuring entity

intends to convene a pre-bid meeting at this

stage;

(g) the name, functional title and address of one or

more officers or employees of the procuring

entity who are authorized to communicate

directly with, and to receive communications

directly from, tenderers in connection with the

procurement proceedings without the

intervention of an intermediary;

(h) notice of the right to complain on, or appeal

from, decisions or actions done by the procuring

entity that are allegedly not in compliance with

the provisions of the Act, together with

information on the duration of the applicable

standstill (cool off) period, a statement to that

effect and the reasons;

(i) any formalities required, where the successful

proposal is accepted, for a procurement contract

to enter into force, including, where applicable,

the execution of a written procurement contract

and approval by tender board, and the estimated

period of time following the dispatch of the

notice of acceptance that will be required to

obtain the approval;

(j) any other requirement that may be established by

the procuring entity in conformity with the Act

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GN. No. 446 (contd.)

139

and these regulations relating to the preparation

and presentation of proposals and to the

procurement proceedings.

(6) Before opening the envelopes containing the

financial aspects of the proposals, the procuring entity shall

examine and evaluate the technical, quality and performance

characteristics of proposals in accordance with the criteria

and procedures specified in the request for proposals.

(7) The results of the examination and evaluation of

the technical, quality and performance characteristics of the

proposals shall immediately be included in the record of the

procurement proceedings.

(8) Proposals whose technical, quality and

performance characteristics fail to meet the relevant minimum

requirements shall be considered to be non-responsive and

shall be rejected on that ground.

(9) A notice of rejection and the reasons for the

rejection, together with the unopened envelope containing the

financial aspects of the proposal, shall promptly be dispatched

to each respective tenderer whose proposal was rejected.

(10) The proposals whose technical, quality and

performance characteristics meet or exceed the relevant

minimum requirements shall be considered to be responsive

and the procuring entity shall promptly communicate to each

tenderer presenting the proposal the score of the technical,

quality and performance characteristics of its respective

proposal and shall invite all such tenderers to the opening of

the envelopes containing the financial aspects of their

proposals.

(11) The score of the technical, quality and

performance characteristics of each responsive proposal and

the corresponding financial aspect of that proposal shall be

read out in the presence of the tenderers invited to the

opening of the envelopes containing the financial aspects of

the proposals.

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GN. No. 446 (contd.)

140

(12) The procuring entity shall, subject to sub-

regulation (2), compare the financial aspects of the responsive

proposals and, on that basis, identify the successful proposal

in accordance with the criteria and the procedure set out in the

request for proposals,

(13) The successful proposal shall be the proposal

with the best combined evaluation in terms of the price and

the criteria specified in the request for proposals.

Shopping

163.-(1) A tender board may approve and invite

competition through request for quotations at international or

national level if-

(a) the goods to be procured are so diversified that it

would be of no commercial interest for any

single supplier to tender for them; or

(b) the goods are readily available off-the-shelf or

standard specification commodities.

(2) A procuring entity shall not divide its procurement

into separate contracts for the purpose of invoking sub-

regulation (1) of this regulation.

(3) Procuring entities shall obtain a list of suppliers

from a shortlist prepared in accordance with guidelines issued

by the Authority or from the shortlist in the Tenders Portal.

(4) The list of tenderers to be contacted shall be

submitted to the tender board for approval and the procuring

entity shall, thereafter, address a request for quotations to all

approved tenderers simultaneously.

(5) The period for international shopping and for

national shopping prescribed in the Eighth Schedule to these

Regulations shall be allowed for the preparation of

quotations.

Procedures

for shopping

164.-(1) Quotations shall be obtained from at least

three suppliers and may include qualified agents of foreign

suppliers in Tanzania,

(2) The letter of invitation for quotations and any

attachments shall contain-