1. Public Procurement System in Tanzania Presentation in the SADCOPAC / EAAPAC Accountability Conference 2012 Windhoek Namibia
Welcome
Karibuni
Presentation prepared by:
Mathew N. KILEO
Clerk
Public Accounts Committee
Tanzania
P.O. Box 9133
Tel: /7,
Fax:
Websit:
Dar-es-Salaam Tanzania

2. Reforms in Public Procurement Regime
Procurement reforms in Tanzania started way back in
The reforms led to enactment of Public Procurement Act No. 3 in March 2001 (PPA 2001). It became operational in July 2001.

3. Reforms in Public Procurement Regime
In 2002 a Country Procurement Review Assessment was carried out which suggested further reforms from centralized to decentralized procurement System
The Reforms culminated in enactment of Public Procurement Act 2004.

4. Applicable to all public bodies including those not receiving subvention
Procurement Thresholds
No Procurement Thresholds
Central Tender Board
PPRA
PPA No. 21 of 2004
PPA N0.3 of 2001
Head of PEs chairperson of TB
Head of PEs not chairperson of TB but they appoint members
Not applicable to Parastatals not receiving Gov. subvention
PPAA has chairperson and Four Members
PPAA has chairperson and six members
Major differences between PPA 2001 and PPA 2004

5. Regulatory Framework of Procurement in Tanzania
The Public Procurement (Goods, Works, Non-Consultant Services and Disposal of Public Assets by Tender) Regulations GN. No 97 of 2005
Public Procurement Act No. 21 of 2004
Local Government Tender Board (Establishment and Proceedings) Regulations
Standard Tender Documents
Guidelines for Preparation of Responsive bids
Other Circulars periodically issued by PPRA
Tender Evaluation Guidelines
The Public Procurement (Employment and Selection of Consultants) Regulations GN. No 98 of 2005

6. ACCOUNTING OFFICER PROCUREMENT MANAGEMENT UNIT
PPAA
SET UP OF PROCURING ENTITIES
ACCOUNTING OFFICER
PPRA
TB submits to AO approved
bidder for notification of award
Provisions to
Handle
disagreements
Reports to AO
approved by AO
recommended
by PMU and
Members
TENDER BOARD
PMU Submit Recommendations
to TB for Approval
Evaluation
committees
PROCUREMENT MANAGEMENT UNIT
Evaluation report submitted to PMU
User Departments
initiate Requirements, inputs to
specifications and in evaluation

7. Strong oversight body (PPRA) Proper implementation Guidelines
INTERVENTIONS FOR COMPLIANCE WITH PPA 2004
Capacity of PEs and bidders to implement the Act
Proper system for checking and Monitoring
Proper System of Sharing Information

8. 2015 – 100% COMPLIANCE WITH THE LAW AND ENSURING VALUE FOR MONEY
THE JOURNEY TOWARDS 2015
2015?
2015 – 100% COMPLIANCE WITH THE LAW AND ENSURING VALUE FOR MONEY

9. THE JOURNEY- IS IT ACHIEVABLE ????
Yes it is achievable as long as every PE aims to achieve Vfm

10. The need to improve efficiency – High Expenditure in Public Procurement
216 PEs
Tshs 2.96 trillion
264 PEs
Tshs 3.10 trillion
315 PEs
Tshs 4.52 trillion
VOLUME OF PROCUREMENT CARRIED OUT BY PROCURING ENTITIES SINCE FINANCIAL YEAR 2007/08

11. The need to improve efficiency – Low levels of Compliance
20 PEs
100 PEs
99 PEs
91 PEs
174 PEs
TREND OF PROCURING ENTITIES COMPLIANCE WITH PUBLIC PROCUREMENT ACT AND ITS REGULATIONS SINCE FINANCIAL YEAR 2006/07

12. Efforts to increase efficiency
Many efforts are being undertaken – only few shall be highlighted in this presentation

13. AREAS OF FOCUS

14. Expanding PPRA Outreach
New Structure-
From 51 Staff (2001)
to 142 Staff (2004)
DIVISION OF INFORMATION AND COMMUNICATION TECHNOLOGY
DIVISION OF
CAPACITY BUILDING AND ADVISORY SERVICES
Research and Documentation Section
Guidelines Development and Dissemination Section
Training and Advisory Services Section
Finance and Accounting Section
Administration and Human Resources Section
CORPORATE SERVICES
Contract Performance Section
Monitoring and Evaluation Section
MONITORING AND COMPLIANCE
Systems Development and Maintenance Section
BOARD OF DIRECTORS
CHIEF EXECUTIVE OFFICER
INTERNAL AUDIT UNIT
Systems Support and Administration Section
PROCUREMENT MANAGEMENT UNIT
Planning and Coordination Section
DIVISION OF LEGAL AND PUBLIC AFFAIRS
Public Relations Section
Legal and Secretariat Affairs Section
Investigation and Anti-Corruption Section
Zonal Services Section
NORTHEN ZONE
LAKE ZONE
COAST ZONE
CENTRAL AND SOUTHERN ZONE
Expanding PPRA Outreach

15. PPRA TO REACH LGAs – opening of zonal offices
Mwanza
Arusha
D’Salaam
Iringa

16. SUPPLIER/SERVICE PROVIDER
SYSTEM OF PROCUREMENT OF COMMON USE ITEMS AND SERVICES – REDUCED PROCUREMENT TRANSACTION COSTS
-Aggregates all CUIS from PEs
GPSA
-Decides on the appropriates Procurement Method
-Submits a list of CUIS to GPSA
-Prepares and Maintains CUIS and Suppliers Data Base
-Compiles a list of CUIS
-Submits a list of Framework Agreements
-Maintains Data on placed Call Off orders as received from PEs
-List of CUIS approved
PROCURING ENTITY
PPRA
Enters into Framework Agreement with winners
Invites Tenders
-Submits copies of Call Off Orders to PPRA and GPSA
-Places and pays for Call Off Order
-Supplies and paid for the call off order
SUPPLIER/SERVICE PROVIDER 16

17. Efficiency in sharing procurement information to the public

18. Efficiency in sharing procurement information to the public

19. Efficiency in procurement transactions – e-procurement – Tanzania has done a feasibility study and is currently working on issues relating to system selection, hosting, infrastructure, application, operation and maintenance, as well security

20. Amendments to the Act –Notable Amendments to Complaints Review Mechanism

21. System for Procurement Complaints Review
PPAA-if not satisfied with the decision of PPRA or after the expiry of a 30 days period
PPRA-if not satisfied with the decision or after the expiry of a 30 days period
Suspend procurement proceedings
TOTAL 105 DAYS
Copy of decision submitted to PPRA and the RC
After signing of contract
Before the signing of contract
Conduct investigations
HEAD
OF PE
Decision within 30 days
Bidders complaint
Presented within 28 days from the day of the event leading to complaint
Copy of complaints submitted to PPRA and the RC
System for Procurement Complaints Review

22. Amendments to the Act –Notable Amendments: Integration of procurement plan with budgeting process

23. Challenges
Failure by Some PEs to utilize the opportunity for reducing procurement transaction cost e.g use framework contracts for procurement of CUIS and advertize in the TPJ and Authority website
Corrupt and fraudulent practices in procurement process despite the effort being spent to prevent and combat them

24. Challenges
Commercial operators such as suppliers and service providers, as well as CSOs have not effectively used the opportunities availed by the PPRA to build their capacity
PEs to be encouraged to do procurement capability review assessment and allocate resources for capacity building of their staff

25. Way Forward
Action to be taken against PEs not demonstrating commitment to reduction of procurement transaction cost
Commercial operators should be sensitized to register as appropriate and take part in improving their capacity to withstand the competitive procurement market in the country as well as in the region

26. Way Forward
The CSOs should be empowered to actively participate in advocacy of good governance in public procurement and monitoring of process and outcome in delivery of services
The fight against fraud and corruption in public procurement should be intensified by more collaborative initiatives among key stakeholders

27. WE can all overcome

28. Thank you for listening
The End