Reforms in Public Procurement Regime in Tanzania Public Procurement Regulatory Authority P.O. Box 49 Tel: /7, Fax: Website: karibuni Karibuni Welcome Recepción bienvenue To PPRA To ARUSHA To TANZANIA

Background 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.

Background 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.

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

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

PUBLIC PROCUREMENT REGULATORY AUTHORITY Offer advisory services to public bodies and any other person Coordinate Capacity Building of PEs and bidders monitor and enforce compliance with the Act; Issue standard bidding documents and guidelines Resolution of disputes Store and disseminate information on procurement opportunities, tender awards

DIVISION OF CAPACITY BUILDING AND ADVISORY SERVICES Research and Documentation Section Guidelines Development and Dissemination Section Training and Advisory Services Section Finance and Accounts Section Administration and Human Resources Section DIVISION OF FINANCE AND ADMINISTRATION Contract and Performance Audits Section Investigations and Procurement Audits Section DIVISION OF MONITORING AND COMPLIANCE Data Base Administration Section DIVISION OF INFORMATION TECHNOLOGY BOARD OF DIRECTORS CHIEF EXECUTIVE LEGAL UNIT INTERNAL AUDIT UNIT PROCUREMENT MANAGEMENT UNIT Systems and Network Administration Section

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

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

Preparation of a Procurement Capacity Building Strategy (PCBS) – this guides the operations of the Division of Capacity Building and Advisory Services Strong PPRA Recruitment of 51 out of 51 staff completed and acquisition of various working tools – HOWEVER MORE STAFF ARE REQUIRED Preparation of a System of Checking and Monitoring – this guides the operations of the Division of Monitoring and Compliance Preparation of Procurement Management Information System (PMIS) to guide operations of the Division of Information Technology Preparation of Financial and Staff Regulations to guide Financial and Staff matters Preparation of Internal Audit Manual

Proper implementation Guidelines Preparation of STD, Procurement of Works of Smaller Works Contracts Procurement of Medium and Large Work Contracts Procurement Goods: National and International Competitive Tendering Procurement of Health Sector Goods (Pharmaceuticals, vaccines, and condoms) Procurement of Supplies and Services using Framework contracts Supply and Installation of Plant and Equipment Procurement of Non Consultant Services Quotations for Small Works up to Tshs. 100 million Quotations for Goods up to Tshs. 80 million Disposal of Public Assets by Tender Templates for preparation of APP Guidelines for: preparing responsive bids, Tender evaluation Standard Request for Proposals for Consultancy Services,

Prepared Procurement Capacity Building Strategy Capacity of PEs to implement the Act Training to PEs Staff in 5 Modules Module 1: Introduction to the Public Procurement Act, 2004 and the Regulation. Module 2: Introduction to the General Principles of Procurement of Goods. Module 3: Introduction to the General Principles of Procurement of Works. Module 4: Introduction to the General Principles of Procurement of Consultancy Services. Module 5: Introduction to the General Principles of Procurement of Non Consultancy Services. Offering Advisory Services Proposal on structure of PMUs and Manning Levels and Scheme of Service for Procurement Experts

CORE STRATEGIC INTERVENTIONS FOR CAPACITY BUILDING IN PROCUREMENT Training is a core intervention in the PCBS. A structure of training has been put forward to impart skills necessary for enhancement of procurement practice. Training strategy is also concerned with all the support structures that are necessary to realize a strong and sustainable procurement workforce and systems Regulatory Harmonization intended to address policy disjunctures which may affect public procurement performance. Strategic interventions in this area are designed to ensure that the law allows for the necessary linkages and joint action between agencies in order to ensure enhanced performance in procurement.

CORE STRATEGIC INTERVENTIONS FOR CAPACITY BUILDING IN PROCUREMENT Oversight Efficiency refers to the effectiveness and efficiency in which the PPRA undertakes its oversight responsibilities for the procurement process. It addresses legal compliance, capacity development to enhance performance and the overall integrity of the public procurement process. Professionalizing Procurement concerned with the standards that are developed and enforced, and the manner in which the procurement field is governed to ensure that practitioners are properly qualified and always ready to perform effectively and that the management process is managed with integrity.

CORE STRATEGIC INTERVENTIONS FOR CAPACITY BUILDING IN PROCUREMENT Regularizing Staffing Levels With the establishment of PMUs in all government entities, and with the many changes which are taking place in the field, both in professional practice and in respect to its regulatory framework, MDAs, LGAs and parastatals must adjust their staffing to meet the new requirements. This proposed intervention sets out a strategy to do so Maximizing Procurement Performance addresses the organizational systems and structures which will constitute an acceptable vehicle for effective performance management. This strategy also addresses other delivery options which may be considered for improving public procurement.

Proper system for checking and Monitoring Adhoc investigations carried out following complaints by bidders A system of Checking and Monitoring Developed by a Consultant Identified all PEs to be monitored by PPRA Carrying out Procurement Audits

System for Checking and monitoring Procurement activities

PPRA Procuring Entities Annual Procurement plans Monthly reports on Procurement carried out Auditing of Procurement Computation of CPIs Checking and verifying records submitted by PES Random check with bidders (and other stakeholders?) on their views on conduct of certain tenders Procurements initiated as per plan Procurements completed – attach procurement report as per developed Monitoring Checklist and Reporting Tool Ongoing contracts and problems if any Reasons for Procurements not initiated Completed contracts – attach execution report as per MCRT

Proper System of Sharing Information Established a website Developed a Procurement Management Information System And very recently, introduced a bi-monthly

PPRA website,

Assessment of Tanzania Procurement Regime using OECD/DAC Baseline IndicatorsBaseline

Assesment of Tanzania Procurement System using the Methodogy

Performance of the Audited PEs

Observed areas of good performance

Observed areas of poor performance

Observed areas of good performance as revealed by the procurement Audits

Observed areas of poor performance as revealed by the procurement Audits

Corrupt Free Procurement Delivers Value for Money to the Public LET’S JOIN HANDS TO CREATE A CORRUPT FREE PUBLIC PROCUREMENT REGIME – TOGETHER IT CAN BE DONE

Asanteni kwa kunisikiliza Mwisho Asanteni Sana Kwa kunisikiliza Thank you for your attention Merci de votre attention Gracias por tu atención Mwisho End Extrémité Extremo