1. 1 AN OVERVIEW OF POLICY AND LEGISLATIVE FRAMEWORK GOVERNING PUBLIC PROCUREMENT By Zitto Z. Kabwe, MP Chairperson, PAC - TANZANIA SADCOPAC/EAAPAC TRAINING 4 th – 6 th November, 2013 Nairobi, KENYA TANZANIAN EXPERIENCE

2. 2 OUTLINE OF PRESENTATION  Introduction  Background to the National Public Procurement Policy  Vision, Mission, Goal and Objectives of the Public Procurement Policy  Core Principles of the Policy  Management of the Public Procurement Function  Areas of Strategic National Procurement Concerns  The legislative framework governing Public Procurement

3. 3 INTRODUCTION  Definition of Public Procurement Public procurement means an acquisition, whether under formal contract or otherwise, of works, supplies and services by public bodies using publicly sourced finances. It involves the purchasing, hiring or obtaining by any contractual means of publicly needed goods, construction works and services by the public sector.

4. 4 BACKGROUND TO THE NATIONAL PUBLIC PROCUREMENT POLICY  The National Public Procurement Policy emanates from the ongoing public sector reforms in the country.  Before the present system, the procurement system was fragmented, and there was no uniform system of procurement in place as each entity operated differently using weakly coordinated public procurement system.  The procurement system had little or no room for active private sector participation

5. 5 BACKGROUND TO THE NATIONAL PUBLIC PROCUREMENT POLICY (Cont’d)  This policy was formulated against a background of some notable public procurement reform achievements.  Some of the most important achievements include, inter alia, the enactment of the Public Procurement Act (PPA) No. 3 of 2001 and its Regulations which provided for the establishment of the Central Tender Board (CTB) as the central coordinating body for the new public procurement system;

6. 6 BACKGROUND TO THE NATIONAL PUBLIC PROCUREMENT POLICY (Cont’d)  The establishment, under the same Act, the Public Procurement Appeal Authority (PPAA) to deal with resolution of complaints and disputes arising from the new public procurement process. As a way of improving procurement system in the country,  the government repealed the PPA No.3 of 2001 by enacting the new PPA of 2004 which was further repealed by the PPA of 2011.

7. 7 BACKGROUND TO THE NATIONAL PUBLIC PROCUREMENT POLICY (Cont’d)  These changes decentralized the procurement functions to procuring entities and established the procurement oversight body, the Public Procurement Regulatory Authority (PPRA).  Further to this important reform, the Government has operationalized the Public Procurement Appeals Authority (PPAA) with the function of resolving complaints and disputes arising from the procurement process.

8. 8 BACKGROUND TO THE NATIONAL PUBLIC PROCUREMENT POLICY (Cont’d)  Significance and Rationale The importance and rationale for public procurement policy can be understood through three aspects of public procurement functions: -the government’s obligation for effective public service delivery (health, education, defence and infrastructure); -the size of public procurement expenditure relative to the national budget or GDP (its economical importance); and -the role the public procurement policy is expected to play in national socio-economic development.

9. 9 THE NATIONAL PUBLIC PROCUREMENT POLICY (NPPP)  Policy Vision The NPPP strives to create a well-functioning, competitive, accountable and transparent procurement system that engenders and secures the confidence of the Tanzanian people, and the national and the international community in the procurement market and functions.

10. 10 THE NATIONAL PUBLIC PROCUREMENT POLICY (NPPP) ……Cont’d  Policy Mission The NPPP strives to foster adherence to the procurement principles of transparency, accountability, fair competition, fair treatment, and value for money by improving capacity of the procurement system through training, staff development, and education for compliance, information dissemination, instituting mechanisms for dispute resolution and providing procurement opportunities for local contractors in support of national economic enterprise participation and development.

11. 11 THE NATIONAL PUBLIC PROCUREMENT POLICY (NPPP) ……Cont’d  The Goal of the Policy In ensuring that the government achieves the best value for money, the policy goals include: (a) Ensuring efficient, well planned and governed procurement, fairness in the treatment of suppliers according to the principles of equal treatment, transparency, quality and efficient delivery; accountability; social responsibility and environmentally sensitive procurement.

12. 12 THE NATIONAL PUBLIC PROCUREMENT POLICY (NPPP) ……Cont’d  The Goal of the Policy (b) The policy shall ensure promotion of a national economy and public welfare during the processes of planning for procuring services, goods and works. c) The policy shall work to uphold and enhance the core principles of good procurement practice and building capacity for better informed and an economical procurement system in a competitive market.

13. 13 THE NATIONAL PUBLIC PROCUREMENT POLICY (NPPP) ……Cont’d  Objectives of the Policy a) The policy shall strive to ensure that the government procures works, goods and servicesat the: i. Right and competitive market prices ii. Right source iii. Right time iv. Right quantity v. Right pre-determined quality market. b) The policy shall ensure that the procurement processes are effected through procedures that are clear as to what, how, where and when works, goods and services are bought and delivered.

14. 14 PUBLIC PROCUREMENT POLICY; MODELS AND PRINCIPLES  Principle Model The National Public Procurements Policy is based on the Principle Model which emphasizes more of the principles of procurement in accordance with good governance practice. The underlying philosophy of the Principle Model is that once a body is spending public money there follows an obligation on that body to account for that specific public expenditure.

15. 15 PUBLIC PROCUREMENT POLICY; MODELS AND PRINCIPLES (Cont’d)  Core Principles of the Policy The following are the core principles to be adhered to at all stages of public procurement process; -Value for Money -Economy -Efficiency -Equity -Integrity and Ethics -Fairness -Transparency -Accountability -Reliability -Competition

16. 16 MANAGEMENT OF PUBLIC PROCUREMENT FUNCTIONS  Coordination of Procurement Planning and Budgeting  Handling of Emergency Public Procurement;  Mobilization of Adequate Financial Resources;  Professional and Human Resource Capacity Development;  Compliance with Public Procurement Laws and Regulations;  Development of Electronic Procurement;  Management of Exemption from Competition;  Restrictions on Considerations for Casual Purchases

17. 17 MANAGEMENT OF PUBLIC PROCUREMENT FUNCTIONS (Cont’d)  Requirements for Vendor Insurance, Performance Bonds and Bid Bonds;  Contract Administration, Vendor Performance Monitoring and Management;  Blacklisting Fraudulent Tenderers;  Handling of Abnormally Priced Tenders;  A Requirement for Notification to Tenderers and Information Disclosure;  Complaints Management Mechanisms in the Public Procurement System;  Disposal of Public Assets;

18. 18 MANAGEMENT OF PUBLIC PROCUREMENT FUNCTIONS (Cont’d)  Public Procurement and Conflict of Interest;  Public Procurement Awareness Creation;  Working with Procurement Framework Agreements;

19. 19 AREAS OF STRATEGIC NATIONAL PROCUREMENT CONCERNS  Reliable and Effective Construction Procurement;  Public Procurement Policy as a Development Tool;  Promoting Sustainable Public Procurement;  Developing Socially Responsible Procurement;  Participation of SMEs in Public Procurement Market;  Promoting Local Business Accessibility to Procurement Markets;  Public-Private Partnership and Private Sector Participation in Public Procurement;  Public Procurement and Affirmative Action;

20. 20 AREAS OF STRATEGIC NATIONAL PROCUREMENT CONCERNS (Cont’d)  Good Governance in Public Procurement;  Prevention of Corruption in the Public Procurement Transactions;  Public Procurement Support to Poverty Alleviation;  Development of a Legislative and Regulatory Framework;  Institutional Framework for the Management of Public Procurement Policy;  Monitoring and Evaluation;

21. 21 LEGISLATIVE FRAMEWORK GOVERNING PUBLIC PROCUREMENT  Public Procurement Act No. 7 of 2011  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  Local Government Tender Board (Establishment and Proceedings) Regulations  Standard Tender Documents

22. 22 LEGISLATIVE FRAMEWORK GOVERNING PUBLIC PROCUREMENT  Tender Evaluation Guidelines;  Guidelines for Preparation of Responsive bids;  Other Circulars periodically issued by PPRA.  The Public Audit Act No. 11 of 2008 revised in 2013

23. 23 REFERENCES - Public Procurement Act No. 7 of 2011 -Public Procurement Act No. 21 of 2004 -The National Public Procurement Policy (NPPP) of 2012 -The PPRA Website (http://www.ppra.go.tz)http://www.ppra.go.tz