Presentation on theme: "ZHRC/HTI Financial Management Training"— Presentation transcript:
1 ZHRC/HTI Financial Management Training Session 6: Public Procurement Environment and Legal Framework in TanzaniaINTRODUCE the participants to session 6.
2 Learning ObjectivesBy the end of this session, participants will be able to:Define procurementExplain objectives of procurement for procuring entitiesList categories of procurementIdentify principles of procurement in the public sectorExplain legal framework of the different procurement entitiesDescribe roles and responsibilities of Public Procurement Regulatory Authority (PPRA) and procuring entitiesREAD or ASK participants to read learning objectives and clarify.
3 What is Procurement? ASK participants the question on the slide. ALLOW few participants to respond.ACKNOWLEDGE each of their responses.
4 Definition of Procurement Procurement is the process of buying goods, works and services to satisfy the identified needsBuying, purchasing, renting, leasing or otherwise acquiring any goods, works or services by a procuring entity spending public funds on behalf of a Ministry, Department, Agency or Local Government or public body (PPA, 2004)EXPLAIN that procurement includes all functions that pertain to obtaining goods, works and services including description of requirements, selection, invitation of tenders, preparation and award of contract.4
5 Importance of Procurement Procurement is an important function as it enables an organization to acquire the goods and services needed to fulfill its objectivesThis slide is animated.ASK participants “Why is procurement important?”ALLOW for some responses before you display the bullet.SUMMARISE participant responses, and ADVANCE presentation to show the bullet.EXPLAIN to participants that for Ministries and departments to be able to improve service delivery, they have to acquire goods, services and works of the right quality, at the right time, in the right quantity, from the right source and at the right price.
6 Legal Guidelines for Procurement Public Procurement Regulations, 2005Procurement of Goods, Works, Non- Consultancy ServicesDisposal of Public Assets by TenderSelection and Employment of ConsultantsThe Public Procurement Act 21 of 2004REFER participants to Handout 6.1: Selection and Employment of Consultants.6
7 Procurement in Procuring Entities The overall responsibility for procurement process rests with the Accounting Officer or Chief Executive OfficerAct requires each Procuring Entity to establish a Tender Board for procurementTender Boards have power to award procurement contractsEXPLAIN to participants the following:According to Section 33 of the Public Procurement Act 2004, the overall responsibility for the execution of the procurement process in the procuring entity rest with the Accounting Officer or Chief Executive Officer.Accounting Officer is defined by the Public Procurement Act 2004 as a Government Officer appointed in accordance with the provisions of Public Finance Act, 2001 to hold a vote and account for all monies expected from that vote.The Act, (Section 28(1)) requires each Procuring Entity to establish a Tender Board that will handle all matters concerning the procurement of goods, services and works.Tender Boards have the power to award contracts for procurement of goods, services and works.
8 Objectives of Procurement To provide procuring entities with a flow of goods, services and works to meet its needsTo reduce costs through more efficient and effective purchasing by buying appropriately to obtain “value for money”
9 Categories of Procurement WorksSuppliesNon-Consultancy ServicesConsultancy ServicesEXPLAIN that the procurement procedure choice and, subsequently, the type of contract in a ministry depends on the following categories of procurement:Works: Design, construction, rehabilitation, maintenance and repair of buildings, factories, roads, plant, bridges and others temporary or permanent constructionsSupplies: This should include goods such as materials, drugs, foodstuffsNon-Consultancy Services: Such as cleaning services, revenue collection, security services and repair servicesConsultancy Services: Studies for designs and provision of technical assistance, training, engineering design and supervision
10 Principles of Public Procurement TransparencyAccountabilityEqual treatment/fairnessValue for moneyAppeal rightsIntegrityCompetitionREFER participants to Handout 6.2: Principles of Public Procurement for more detailed information.
11 Activity in Pairs: Procurement Total activity time: 30 minutesTELL participants to pair up.INFORM the participants that they will work in pairs to complete the worksheet.REFER participants to Worksheet 6.1: Procurement at Kibamba District Council.GIVE 20 minutes to work in their small groups.RECONVENNE the participants and lead the discussion for pairs to share their answers.ALLOW one pair to share and invite others to contribute in case they have different opinions.SUMMARIZE the discussion by pinpointing any areas that were not well-covered.
12 Legal Framework for Procurement in Tanzania INTRODUCE participants to session 6 part 2.
13 The Public Procurement Act, 2004 (1) PPA 2004 is applicable to:All public bodiesNon-public bodies that receive or use public fundsDefense and National Security Organs for non-restricted items.PPA 2004 repeals No.3 of 2001TELL participants the following:This part of the session deals with the legal framework governing procurement within the Government of The United Republic of Tanzania.The major legal requirements are contained within the Public Procurement Act, 2004; the Public Procurement (Procurement of Goods, Works, Non-Consultancy services and Disposal of Public Assets by Tender) Regulations, 2005; Public Procurement (Selection and Employment of Consultants) Regulations, 2005.This law came into force on 1st May, 2005, and it governs procurement in the whole public sector in Tanzania.All public entities, including ministries have to follow the relevant provisions of this Act.The Act is divided into eight parts which are themselves divided into 91 sections.
14 The Public Procurement Act, 2004 (2) Establishes a Public Procurement Regulatory Authority (PPRA) in place of the Central Tender BoardDecentralises procurement to Procuring Entities with no limits of authorityChanges the composition of Tender Boards so Accounting Officers are no longer Chairpersons of Tender BoardsChanges the membership of PPRA to include private sector and professional bodiesEXPLAIN to participants the following:The Act requires the Accounting Officer of each procuring entity to establish a tender board to handle matters concerning the procurement of goods, services and works, and to facilitate the execution of the procurement activities in orderly manner.The Act also requires each procuring entity (PE) to establish a Procurement Management Unit (PMU) which should consist of procurement and other technical specialist together with the necessary supporting and administrative staff.The Act emphasizes that PMU should be headed by an officer with sufficient academic qualifications and experience in procurement functions.
15 Procuring Entities: Who are They? MinistriesGovernment DepartmentsAutonomous BodiesRegionsDistrictsParastatal OrganisationsExecutive AgenciesLocal Government AuthoritiesTanzanian Foreign & High Commissions15
16 The Public Procurement Regulatory Authority (PPRA) The Public Procurement Act of 2004 establishes the PPRA as an autonomous body under the Ministry of Finance and Economic AffairsThe PPRA replaces the Central Tender Board
17 Objectives of the Public Procurement Regulatory Authority (PPRA) Ensuring the application of fair, competitive, transparent, non-discriminatory and value for money procurement standards and practicesHarmonization of the procurement policies, systems and practicesSetting standards for public procurementMonitoring of compliance of procuring entitiesBuilding procurement capacity in TanzaniaEXPLAIN the first three bullets on the slide with more detail:Ensuring the application of fair, competitive, transparent, non-discriminatory and value for money procurement standards and practicesHarmonization of the procurement policies, systems and practices of the Central Government, Local Governments and statutory bodiesSetting of standards for the public procurement systems in Tanzania
18 Functions of PPRA (1) Advise on procurement principals and practices Monitor performance of public procurement systems and advise on changesSet training standards, competence levels, and certification requirements for procurement expertsUpdate and issue tendering documents and formsEXPLAIN the bullets on the slide in more detail:Advise central Government, local governments and statutory bodies on all procurement polices, principles and practicesMonitor and report on the performance of the public procurement systems in the United Republic of Tanzania and advise on desirable changesPrepare, update and issue authorized versions of the standardized tendering documents, procedural forms and any other attendant documents to procuring entitiesIn collaboration with relevant professional bodies, ensure that any deviation from the use of the standardized tendering documents, procedural forms and any other attendant documents is effected only after prior written approval of the Authority
19 Functions of PPRA (2)Implement measures to build procurement capacity in TanzaniaStore and disseminate information on procurement opportunities and tender awards on any relevant information on public procurement in the countryFacilitate resolution of procurement complaints
20 Powers of PPRAPPRA is given wide powers that include but are not limited to:Carrying out investigations for alleged mis-procurement (PPA 2004: Sec )Calling for any documents or information regarding procurementRecommending disciplinary actions for those in breach of the Act
21 Disciplinary Actions (Sec. 17) Disciplinary actions include but are not limited to:Discipline or suspension of accounting officers and chief executive officersReplacement of the head of a Procurement Management Unit, the Chairperson, or any member of a Tender BoardTemporary transfer of procurement functions to a third party procurement agent
22 Roles and Responsibilities of the Accounting Officer (1) Establish a Tender BoardAppoint members of the Tender BoardEstablish a Procurement Management UnitAdvertise tender opportunitiesAppoint the tender evaluation committeeCommunicate award decisionsEXPLAIN to participants that Accounting Officer or Chief Executive of a procuring entity shall have the overall responsibility for the execution of the procurement process in the procuring entity, and in particular, shall be responsible for the points listed in this slide.
23 Roles and Responsibilities of Accounting Officer (2) Certify availability of funds to support procurement activitiesSign contracts for procurement activities on behalf of the procuring entityInvestigate complaints by suppliers, contractors or consultantsSubmitting a copy of complaints and reports of finding to AuthorityEnsuring implementation of awarded contract is in accordance with terms and conditions of awardon behalf of the procuring entity;
24 Composition of the Ministerial Tender Board (Sec. 28) Ministerial Tender Board shall consist of:A ChairpersonSix membersA SecretaryEXPLAIN to participants that:There shall be in each Ministry, Independent Department of Government, Region, District, Local Government Authority, and Parastatal Organisation, a tender board for procurement of goods, services and works.The composition of tender board, the method of appointment of members, and the procedures to be followed by such tender boards other than Local Government Authority Tender Board, shall be as prescribed in the second schedule to this Act.PROVIDE more details about the bullets on the slide with the following information. “In the second schedule of PPA, 2004, the Ministerial Tender Board shall consist of:A Chairman, who shall be one of the heads of department or a person of similar standing and who shall be appointed by the Accounting Officer or Chief Executive;Six members who are heads of department or persons of similar standing within the same procuring entity and who shall be appointed by the Accounting Officer or Chief Executive;The Secretary, who shall be a procurement specialist, who shall be head of procurement management unit or department of that procuring entity.”
25 Functions of Tender Board (Sec. 30) A Tender Board is responsible for:Approving tendering and contract documentsApproving procurement and disposal by tender proceduresReviewing applications for variations or amendments to ongoing contracts within its jurisdictionAdjudication of recommendations from the PMU and award of contractsEnsuring best practices are usedEnsuring compliance with the ActLiaising with the Authority on matters within its jurisdictionEXPLAIN the 3rd to last bullet about “best practices” in more detail:Ensuring that best practices in relation to procurement and disposal by tender are strictly adhered by Procuring Entities
26 Procurement Management Unit (Sec. 34) (1) In every procuring entity there shall be established a Procurement Management Unit (PMU) staffed to an appropriate levelPMU shall consist of procurement and other technical specialists together with necessary supporting and administrative staff
27 Procurement Management Unit (Sec. 34) (2) Procuring entities shall:Identify all those engaged in procurement within their organizations and identify skills need in each postSet out strategies to meet the needs of Procurement Management UnitsPMU shall be headed by a person with sufficient academic qualifications and experience in procurement functions
28 Functions of Procurement Management Unit (Sec. 35) Managing and planning procurement activities except adjudication and the award of contractPreparing Tender DocumentsActing as a secretariat to Ministerial Tender BoardImplementing the decisions of the Ministerial Tender BoardRecommending procurement procedurePlanning the procurement activities of the Procuring EntityTELL participants that, additional functions of the PMU include:Preparing advertisements of tender opportunitiesPreparing contract documentsIssuing approved contract documentsMaintaining and archiving records of the procurement processMaintain a list or register of all contracts awardedPrepare monthly reports for the Tender BoardCo-ordinate the procurement and disposal activities of all the departments of the procuring entity; andPrepare other reports as may be required from time to time
29 Functions of User Departments (Sec. 34) (1) User department of a procuring entity shall perform the following functions:Assist Procurement Management Unit with procurement and disposalPropose technical inputs to statements of requirementsAssist with technical evaluation of tenders as requested by the PMUEXPLAIN to participants in more detail the functions of User Departments (Sec. 34):Liaise with and assist the PMU throughout the procurement or disposal by tender process to the point of contract placementInitiate procurement and disposal by tender requirements and forward them to the PMU
30 Functions of User Departments (Sec. 34) (2) Certify payments to suppliers and consultantsReport departures from terms and conditions of an awarded contractForward details of contract amendments to PMU for actionMaintain and archive records of contractsPrepare any reports required for submission to Procurement Management Unit, Tender Board or Accounting Officer
31 Functions of User Departments (Sec. 34) (3) Prepare a procurement work plan for submission to PMU, Tender Board or Accounting OfficerPrepare a work plan for procurement based on approved budget, which shall be submitted to Procurement Management Unit for implementation when required
32 Evaluation Team (Sec. 37) All evaluations shall be conducted by an evaluation committee, which shall report to PMUMembership of evaluation committee shall be recommended by Procurement Management Unit in accordance with the act and approved by Accounting Officer or ChiefNumber of members shall depend on the value and complexity of procurement requirement, but shall be a minimum of three membersEXPLAIN to participants the following;The members shall be of an appropriate level of seniority and experience, depending on the value and complexity of the procurement requirement.Members of the evaluation committee may be external to the procuring entity, where the required skills or experience are not available within the procuring entity or where members are indisposed or have a conflict of interest.All members of the evaluation committee shall sign the Code of Ethics provided under the Regulations made under the Act, declaring that they do not have a conflict of interest in the procurement requirement.The meetings of the evaluation committee, the conduct of the evaluation and the evaluation methodologies shall be executed in accordance with the regulations, guidelines and tendering documents made under this Act.
33 Independence of Functions and Powers (Sec. 38) Subject to provisions of this Act, the following entities shall act independently in relation to their respective functions and powers:Accounting Officer or Chief ExecutiveTender BoardProcurement Management UnitUser DepartmentEvaluation CommitteeASK participants if they have any question and clarify.
34 Procurement Responsibilities Activity in Pairs:Procurement ResponsibilitiesTotal activity time: 40 minutesTELL participants to pair up.INFORM the participants that they will work in pairs to complete the worksheet.REFER participants to Worksheet 6.2: Procurement Responsibilities.GIVE 20 minutes to work together.RECONVENNE the groups and lead the discussion for groups to share their answers.ALLOW one pair and invite others to contribute in case they have different opinions.SUMMARIZE the discussion by pinpointing any areas that were not well-covered.
35 Key Points (1)Procurement is a process of buying goods, services and worksPrinciples of public procurement include:transparencyaccountabilityequal treatmentTypes of procurement regulated by the PPA include: works, supplies, consultancy services and non-consultancy servicesvalue for moneyrights of appealintegrity andcompetition
36 Key Points (2)Functions of Public Procurement Regulatory Authority (PPRA) include:Monitoring performance of public procurement systemsSetting training standards for procurement expertsIssuing tender documents