The PPDA ACT - Part VI- Methods of Procurement and Disposal

9. (1) A procuring and disposing entity in respect of-

(a) each procurement activity shall use any of the methods in sections 80 to 86; and

(b) each disposal activity shall, in addition to the methods in sections 80 to 86, use any of the disposal methods in section 87 whenever the circumstances demand it,

and their conditions for use specified in the Fourth Schedule.
(2) The choice of a procurement or disposal method shall first be approved by the Contracts Committee.

(3) A procuring and disposing entity shall first obtain the consent of the Authority before it uses any other method than the ones set out in this Part of the Act.

80. (1) Except as provided for in this Act or regulations made under this Act, a procuring and disposing entity shall use the open domestic bidding method.

(2) Open domestic bidding is a procurement or disposal method which is open to participation on equal terms by all providers through advertisement of the procurement or disposal opportunity.

(3) Open domestic bidding shall be used to obtain maximum possible competition and value for money.

(4) Nothing shall prevent a foreign or international bidder from participating in open domestic bidding.

81. (1) Open international bidding is the procurement or disposal method which is open to participation on equal terms by all providers, through advertisement of the procurement or disposal opportunity and which specifically seeks to attract foreign providers.

(2) Open international bidding is used to obtain the maximum possible competition and value for money, where national providers may not necessarily make this achievable.

82. (1) Restricted domestic bidding is the procurement or disposal method where bids are obtained by direct invitation without open advertisement.

(2) Restricted domestic bidding is used to obtain competition and value for money to the extent possible, where the value or circumstances do not justify or permit the open bidding procedure.
83. (1) Restricted international bidding is the procurement or disposal procedure where bids are obtained by direct invitation without open advertisement and the invited bidders include foreign providers.

(2) Restricted international bidding shall be used to obtain competition and value for money to the extent possible where the value or circumstances do not justify or permit an open bidding method and the short listed bidders include foreign providers.

84. (1) Quotation and Proposals are simplified procurement and disposal methods which compare price quotations obtained from a number of providers.

(2) The Quotation and Proposal method shall be used to obtain competition and value for money to the extent possible, where the value or circumstances do not justify or permit open or restricted bidding procedures.

(3) Quotations shall be used in works and supplies while Proposals shall be used for services.

85. (1) Direct procurement or disposal is a sole source procurement or disposal method for procurement or disposal requirements where exceptional circumstances prevent the use of competition.

(2) Direct procurement or disposal shall be used to achieve efficient and timely procurement or disposal, where the circumstances do not permit a competitive method.

86. (1) Micro procurement or disposal is a simple direct procurement or disposal method which shall be used for very low value procurement requirements.

(2) Micro procurement or disposal shall be used to achieve efficient and timely procurement where the value does not justify a competitive procedure.
87. (1) Disposal of public assets may also be by way of the following methods-

(a) public auction where the professional valuation of an individual asset or lot does not exceed the value stated in the guidelines;

(b) direct negotiation where disposal on the open market would raise legal or human rights issues and the consideration received is not less than the professional valuation;

(c) destruction of assets where there is no residual value or no grounds of national security or public interest;

(d) conversion or classification of assets into another form for disposal by sale such as scrap metal or land fill;

(e) trade-in; and

(f) transfer to another procuring and disposing entity.

(2) The procedures for the methods in subsection (1) shall be prescribed by regulations made under this Act.

88. The detailed procedures for selection of providers shall be prescribed by regulations.