Division I-Preliminary. 1. These Regulations may be cited as the Public Procurement and Disposal of Public Assets Regulations, 2003. 2. Subject to the provisions of the Act, these Regulations shall apply to all public procurement and disposal activities. 3. (1) A dispute under the Act and these Regulations relating to the application of the Act or the Regulations shall be submitted in writing to the Authority by the accounting officer or Chief Executive Officer of the procuring and disposing entity within fifteen working days from the date the entity first became aware of the circumstances giving rise to the dispute. (2) The submission in sub-regulation (1) shall include- (a) the full details of the procuring and disposing entity, including its legal status and a copy of the legislation or other document by which it is established or governed; (b) full details of the entity's funding, including the source and amount of its funds and any legislation, document or other agreement applicable to the funding; (c) a clear statement of which aspect of the Act or Regulations is disputed, including- (i) the status of the entity as a procuring and disposing entity; or (ii) the status of the funding as public funds; and (d) any other relevant information. (3) The Authority shall issue its decision in writing within ten working days from receipt of the dispute. (4) The decision shall indicate- (a) whether or not the Act and Regulations apply to the procurement and disposal activities of the entity, giving reasons; and (b) if the Act and Regulations apply to only a part of the procurement and disposal activities of the entity, the part to which they apply, including a clear definition of the funding, activity or expenditure which is subject to the Act and Regulations. 4. In these Regulations, unless the context otherwise requires- "accounting officer" means the accounting officer defined in section 3 of the Act; "Act" means the Public Procurement and Disposal of Public Assets Act, 2003; "Authority" means the Public Procurement and Disposal of Public Assets Authority established by section 5 of the Act; "Board" means the Board of Directors of the Authority established by section 10 of the Act; "competent authority" means a government office which has the mandate to perform a specified function; "consultancy service" means a service of an intellectual or advisory nature, provided by a practitioner who is skilled and qualified in a particular field or profession and includes, but is not limited to, engineering design or supervision, accountancy, auditing, financial services, procurement services, training and capacity building services, management advice, policy studies and advice and assistance with institutional reforms; "contracts committee" is the committee provided for under sections 27 and 28 of the Act; "contract management" means the management of a contract including, but not limited to, performance and compliance with the terms and conditions of the awarded contract by the provider and the procuring and disposing entity; "currency point" has the meaning assigned to it in the First Schedule to the Act; "day" means any day of the week, except Saturday, Sunday and public holidays; "framework contract" means a contractual arrangement which allows the procuring and disposing entity to procure works, services or supplies that are needed continuously or repeatedly at an agreed price over a period of time, through the placement of a number of orders; "guidelines" means directives issued by the Authority under section 97 of the Act; "INCOTERMS" means international commercial terms issued by the International Chamber of Commerce; "non-consultancy service" means a service of a skilled or non-skilled nature, which is not a consultancy service, and includes, but is not limited to, cleaning, security and maintenance and repair services; "public asset" means any property owned by the Government of Uganda, tangible and intangible, including but not limited to physical property, land, shares or proprietary rights; "public officer" means any officer employed in the public service, and includes an officer employed in a statutory body, a department of the central government, local government and any other body established by government to carry out public functions; "record" means any document relating to any stage of a procurement or disposal process and shall be the original document, unless otherwise stated in writing by the Authority; "registered provider" means a provider registered by the Authority in accordance with the Act; "resident provider" means a provider registered in Uganda who is not a national provider; "specification" means the description of an object of procurement or disposal in accordance with national and international standards adopted and approved by the Authority after consultation with the National Bureau of Standards or other appropriate trade associations and professions, which shall be mandatory in all bidding documents; "statement of requirements" means a document that contains a full and complete description of the requirement that is the subject of the procurement or disposal; "third party procurement provider" means a provider pre-qualified by the Authority and contracted independently by a procuring and disposing entity on a competitive basis to offer specific services which shall in each instance be defined by the procuring and disposing entity. 5. (1) Where an international agreement requires a procuring and disposing entity to use an alternative procurement or disposal method, the entity shall inform the Authority in writing with supporting documents, including a copy of the international agreement embodying the obligation. (2) The Authority shall issue its opinion within fifteen working days from receipt of an application made under sub-regulation (1). (3) Where an international agreement contains provisions favourable to a national or resident provider, a procuring and disposing entity shall bring these provisions to their attention through a notice in a local newspaper of wide circulation, and shall also detail the favourable terms in the solicitation documents. Division II-The Public Procurement and Disposal of Public Assets Authority. 6. In the exercise of its functions under the Act, the Authority shall undertake procurement and disposal audits, inspections and investigations and shall- (a) analyse procurement and disposal performance data and reports from a procuring and disposing entity; (b) analyse information and data received from providers; (c) consider all deviations requested by a procuring and disposing entity to the use of- (i) the basic procurement or disposal rules or methods by the issue of deviations in accordance with regulation 340; (ii) the solicitation documents in accordance with regulation 129; and (iii) any provisions of these Regulations; prior to their use or issue; (d) consider all requests for accreditation of an alternative procurement or disposal system in accordance with regulation 342; and (e) investigate the following- (i) the conduct or performance of providers of works, services and supplies; (ii) the conduct or performance of procuring and disposing entities and their subsidiary bodies, including the conduct of procurement proceedings, procedure for contracts placement or the management of awarded contracts; (iii) compliance with the use of guidelines, solicitation documents and specification standards issued by the Authority; and (iv) any breach, wrongdoing, mismanagement or collusion that has been alleged, reported or proven against any procuring and disposing entity or provider. 7. (1) The Authority shall avail the documents listed in the Third, Fourth, Fifth, Sixth and Seventh Schedules to a procuring and disposing entity in both paper and electronic form. (2) The standard solicitation documents issued by the Authority shall include, where appropriate- (a) instructions to bidders; (b) a bid data sheet; (c) evaluation qualification criteria; (d) bidding forms; (e) a statement of requirements; (f) general conditions of contract or a statement of the general conditions of contract that will apply; (g) special conditions of contract; and (h) contract forms or a statement of the contract form that will apply. 8. (1) The Authority shall obtain the approval of the Attorney General to the standard bidding documents prior to their issue for use by a procuring and disposing entity. (2) The Authority, in consultation with the Attorney General, shall determine the procedure for the review and approval of alternative standard bidding documents, where requested by a procuring and disposing entity in accordance with regulation 129. 9. (1) The Authority shall- (a) organise and maintain a system for the publication of data on public procurement and disposal opportunities, contract awards and other information of public interest as may be determined by the Authority from time-to-time; (b) ensure that the system for publication of a bidding opportunity, and the results of public procurement proceedings, take into account the principle of the efficient and economic use of the media; and (c) ensure that a bid notice is widely disseminated to the general public through a local newspaper of wide circulation or any other appropriate information medium. (2) The Authority shall issue guidelines to procuring and disposing entities detailing the procedures and other cost arrangements agreed with local and international newspapers and publications where applicable. (3) The Authority shall compile a database for providers of works, services and supplies, which shall be systematically maintained and made accessible to the public for ease of reference. (4) The Authority shall determine, introduce, develop, maintain and update a database of information, including staff responsible for procurement and disposal in a procuring and disposing entity, a procurement and disposal record of each procuring and disposing entity, assets sold to public officers, trends in public procurement and disposal, procurement budgets and disbursement patterns. 10. (1) The Authority shall position a notice board at a location, within its premises, which is freely accessible to members of the public. (2) The notice board shall display the following information- (a) a list of documents comprising current legislation on public procurement and disposal, including but not limited to the Act, these Regulations and guidelines; (b) a list of standard forms issued by the Authority; (c) a list of solicitation documents issued by the Authority; (d) a list of specification standards; (e) a list of registered providers; (f) a list of suspended providers; (g) a list of common user items; (h) a list of training courses available; (i) a list of training institutions from which accredited training is available; (j) information on registration procedures and procedures for updating registrations; and (k) any other information which may be of interest to the public. (3) The Authority shall create and maintain a website which shall have the information listed in subregulation (2). (4) The procedures relating to access and use of the Authority's website by a procuring and disposing entity shall be detailed and issued in the guidelines. 11. In carrying out its capacity-building functions under the Act, the Authority shall- (a) set training standards, competence levels, certification requirements and professional development paths in consultation with the competent authority in respect of staff employed in procurement and disposal discipline within the public sector; (b) develop and maintain an operational plan on capacity building, both for institutional and human resource development; (c) develop, establish and maintain institutional relationships, alliances or agreements with- (i) academic or training entities with direct or related interest in public sector procurement and disposal; and (ii) professional, research, charitable or any other entity having a direct or related interest in public sector procurement and disposal including, but not limited to, ethical conduct, professional and personal development; and (d) undertake surveys, investigations, reviews or any other related activity nationally or internationally to meet the objectives of the Authority, and in furtherance of best practices to enhance and develop standards of procurement and disposal in Uganda. 12. (1) The Authority shall investigate any public procurement or disposal process where a breach, wrong doing, mismanagement or collusion has been alleged or reported against a procuring and disposing entity or provider. (2) Upon conclusion of an investigation of a procuring and disposing entity, the Authority shall produce a written report detailing its findings and recommendations, if any, to the competent authority. (3) The recommendations of the Authority referred to in subregulation (2) may include one or more of the following- (a) suspension of the officer concerned with the procurement or disposal process in question; (b) replacement of the head or member of a procurement and disposal unit; (c) replacement of the chairperson or selected member of the contracts committee; (d) disciplining of the accounting officer; (e) transferring the procurement and disposal function of a procuring and disposing entity to a third party procurement provider or any other procuring and disposing entity; (f) withholding the funds of a procuring and disposing entity which continuously contravenes the Act, these Regulations or the guidelines made under the Act. (4) In this regulation, competent authority shall be- (a) in respect of recommendations in subregulation (3)(a), (3)(b) and (3)(c), the accounting officer; (b) in respect of subregulation (3)(d), the head of the Public Service; and (c) in respect of subregulation (3)(e) and (3)(f), the Permanent Secretary or the Secretary to the Treasury. (5) The competent authority shall respond in writing to the Authority's report within a period of ten working days from the date of receipt of the report of the Authority, indicating the action that will be taken or any disagreement with the report or both. 13. (1) The Authority shall cooperate and work closely with any other authority responsible for investigation and for that purpose may establish a mechanism for sharing information and methodologies with other authorities. (2) In undertaking any investigation or administrative review, the Authority shall use a method or documentation, which is consistent with and satisfy the standards of those used by other government bodies responsible for investigations. (3) The Authority shall initiate or participate in existing periodic joint meetings with other oversight agencies, in order to exercise its supervisory and monitoring role for the public procurement and disposal system. (4) The Authority shall contribute agenda items regarding public procurement and disposal issues and, unless otherwise agreed, shall be responsible for follow-up and conclusion on procurement and disposal matters. 14. (1) Where a competent authority disagrees with the findings or the recommendations of the Authority, the competent authority shall state- (a) the findings or recommendations of the report with which it disagrees; (b) the reasons for the disagreement; and (c) any alternative recommendations or measures proposed. (2) Upon receipt of a response stating a disagreement, the Authority shall, within a period of ten working days, call a meeting with the competent authority seeking to resolve the disagreement. 15. (1) Where the Authority recommends the transfer of a procurement and disposal function from a procuring and disposing entity, it shall recommend- (a) the body to which the function should be transferred; (b) the functions and powers which should be transferred; and (c) the period of time for which the transfer is recommended or the conditions which need to be fulfilled before the functions and powers are returned to a procuring and disposing entity. (2) A recommendation made under subregulation (1) shall ensure that independence of functions and powers is maintained. (3) An accounting officer shall put in place appropriate arrangements for the transfer, which shall be confirmed in writing and which shall state- (a) the functions or powers to be transferred; (b) the mechanisms for implementation of the procurement and disposal requirement; (c) reporting and monitoring procedures and responsibilities; (d) any limitations or exceptions to the transfer; and (e) any costs to be paid. (4) A transfer to a third party procurement or disposal provider shall be in accordance with regulations 81 and 82. 16. The Authority may contract a third party to carry out procurement audits, investigations and inspections. 17. The Executive Director shall prepare an annual management plan which shall include- (a) business and development objectives for the following year; (b) a detailed plan describing how the business development objectives are to be achieved; and (c) a budget for implementation of the detailed plan. 18. (1) The Authority shall be responsible for contract management, once a contract is placed. (2) The procurement and disposal activities of the Authority shall be audited by an independent auditor. 19. (1) In the absence of the Chairperson, the Executive Director shall call the meetings and the members present shall elect, from among themselves, an acting Chairperson. (2) A notice of a Board meeting shall be given in writing to each member at least five days before the date of the meeting. (3) A notice of a meeting shall contain, as a minimum, details of the time and date of the meeting and the proposed business to be transacted at the meeting. (4) A special meeting of the Board may be called, giving notice of not less than five days, upon written request of at least two members addressed to the Chairperson. (5) The Chairperson in consultation with the Secretary and the Executive Director shall be responsible for the preparation and distribution of the agenda. (6) The Board shall appoint a non-voting secretary, who shall be responsible for the servicing of the board, including the preparation of the agenda, minutes of the previous meeting of the board and relevant discussion papers or proposals. (7) Board papers shall be separated into information papers and decision papers. (8) The minutes of each Board meeting shall be clearly and concisely taken with full regard to their potential use as legal documents. (9) The minutes of a Board meeting shall be signed by the Chairperson and the Secretary at the next meeting of the Board and shall then be adopted as a true record of the preceding meeting. (10) A decision of the Board may be taken without a formal meeting but by circulation of the relevant papers among the members of the board and the expression of the views of the majority of members in writing, but any member shall be entitled to request that the decision be deferred and that the matter on which a decision is sought be considered at a formal meeting of the Board. (11) A member, on receiving the agenda of the meeting of the Board, or on notification of a matter being brought to the attention of the Board shall sign the standard declaration form specified in the Second Schedule to the Act, indicating whether he or she has, or intends to acquire, a direct or indirect personal interest in any agenda item or in a specific matter requiring the Board's consideration and decision. (12) A member with an interest shall not participate in the deliberations or decision-making process of the Board in relation to the agenda item or the matter in which he or she has an interest. (13) Where there is no quorum for the continuation of a meeting because of the exclusion of a member from the deliberations on a matter in which he or she has declared a personal interest, the other members present shall postpone the consideration of the matter until a quorum, without that member, is realised. 20. (1) In the exercise of its powers under subsection (2) of section 5 of the Act, the Authority shall only acquire or dispose of assets or borrow money on the authority of a written resolution of the Board , using the format provided in the First Schedule to these Regulations. (2) The resolution in subregulation (1) shall not be valid unless it is signed and sealed by the Chairperson of the board and the executive director. 21. The executive director shall be the custodian of the seal of the Authority. Division III-Registration of Providers and Preference and Reservation. 22. (1) The Authority shall establish and maintain a register of providers of works, services and supplies. (2) The purpose of the register of providers is to offer to a procuring and disposing entity- (a) reliable and up-to-date information on the competencies of existing providers in the market, and the structure of the market for various works, services and supplies; and (b) a record of current and past contracts and performance by a provider. (3) A provider shall not be required to register with the Authority as a condition of participation in any procurement or disposal process except where a provider wishes to benefit from a reservation or preference scheme. (4) The register of providers shall not be a pre-qualification list and shall offer no entitlement to a registered provider. (5) The register of providers shall be reviewed and updated on a regular basis. 23. (1) The procedure which shall govern registration in the register of providers shall be in accordance with guidelines issued by the Authority. (2) The Authority shall- (a) from time-to-time, publish a notice advertising the registration scheme; (b) state in the notice the procedure and criteria for registration; and (c) make application for registration forms available for collection by a provider. (3) The registration documents issued by the Authority to a provider shall fully describe the rules, procedures and process of registration, classification and disciplining of providers. (4) Registration shall be open to all qualified providers and shall be continuous. 24. (1) A registered provider shall be classified by- (a) physical and financial capacity (size); (b) core operational area (disciplines or codes); (c) performance track record (record); (d) certificate of compliance with applicable national, regional or international quality standards in the relevant disciplines or codes (certification); and (e) ownership or control (ownership). (2) The Authority's register of providers shall indicate- (a) the qualifications of a provider; (b) the physical and financial capacity of a provider; (c) the core operational area and disciplines of a provider; (d) the provider's performance record, if any; (e) the ownership and control of providers, including names of directors; and (f) whether a provider is suspended, or has previously been suspended in accordance with regulation 351. 25. (1) The Authority shall inform each applicant for registration, in writing, of the results of the application and, if registered, the registration reference. (2) An applicant whose application for registration is rejected shall be informed of the Authority's decision, including the reasons for the decision, within twenty-one working days from the date of receipt of the application for registration as a provider. (3) An applicant whose application for registration is rejected may resubmit an application for registration as a provider. 26. (1) A registered provider shall inform the Authority of any material change in the circumstances or details relating to the registration within ten working days of the change. (2) Where a provider fails to notify the Authority of any change, the Authority may delete that provider from the list of registered providers and notify the provider of the fact of their de-registration. (3) A deregistered provider may submit a new application for registration. 27. (1) A procuring and disposing entity may use the Authority's register of providers in the preparation of a shortlist in accordance with the Act and these Regulations. (2) The selection of a provider from the register of providers maintained by the Authority shall not relieve a procuring and disposing entity of the need to pre-qualify or post-qualify a provider, where appropriate, in accordance with regulations 120 and 218 respectively. 28. (1) The procurement of works, services or supplies may be subject to a preference scheme consistent with the Government economic and social policies, or with international obligations. (2) A preference scheme shall have as its objective the development of local businesses, giving local businesses a competitive advantage when competing for public procurement contracts, by adding a specified margin to the evaluated price of non-local bidders during the financial comparison stage of the evaluation. (3) A preference scheme shall- (a) only be determined and developed by a competent authority; (b) be based only on the bid price; (c) apply to all competitive procurement methods; (d) clearly state- (i) the target group of providers and eligibility requirements; and (ii) the period of the scheme and arrangements for phasing in and out; (e) contain quantifiable objectives to be achieved and benchmarks to assess progress; (f) compare the estimated costs of implementing the scheme against the costs of implementing the relevant procurement activities without the preference scheme; and (g) be non-discriminatory in terms of the capacity, specialisation and ownership classifications of eligible providers. (4) Eligibility for participation in a preference scheme shall require certification by a competent authority. (5) The band or level of preference to be accorded to a provider shall- (a) be related to the percentage of a procurement activity to be undertaken as local inputs; (b) be proportional to the percentage of the contract to be actually executed by a national or resident provider and a national or resident sub-contractor; and (c) take into account the complexity of a procurement activity to be assigned to a national or resident provider in terms of technology transfer, on-the-job training; and (d) be in accordance with guidelines prescribed by the Authority. (6) For the purpose of evaluation, comparison and ranking of bids, the applicable percentage preference shall be added to the bids of all bidders not entitled to the preference or the full measure of the preference. (7) The preference margin shall be clearly stated in the standard bidding documents. 29. (1) A preference scheme shall apply in the following order- (a) a sole national provider or joint venture or association agreement between national providers; (b) a joint venture or association agreement between a national provider and a resident provider; (c) a sole resident provider or joint venture or association agreement between resident providers; (d) a joint venture or association agreement between a national provider and a foreign provider; (e) a joint venture or association agreement between a resident provider and a foreign provider; and (f) a sub-contracting arrangement between a national or resident sub-contractor and a foreign provider. (2) The preference to be accorded shall be proportional to the percentage of the contract to be actually executed by national or resident providers or sub-contractors. 30. (1) The procurement of works, services and supplies, may be subject to a reservation scheme. (2) A reservation scheme shall have as its objective the development of a target group and community, by reserving certain public procurement contracts for such groups and communities. (3) Membership of a target group or community shall be a requirement for eligibility to participate in a reservation scheme. (4) A reservation scheme shall apply to- (a) a targeted provider of works and services, both consultancy and non-consultancy; and (b) a specific disadvantaged community and geographic area that is subject to conflict, calamity or neglect. (5) A competent authority may determine and develop a reservation scheme. (6) A reservation scheme shall- (a) clearly state the target group of providers and eligibility requirements; (b) clearly state the period of the scheme and arrangements for phasing in and out; (c) contain quantifiable objectives to be achieved and benchmarks to assess progress; (d) compare the estimated costs of implementing the scheme against the costs of implementing the relevant procurement activities without the preference scheme; (e) be non-discriminatory in terms of the capacity, specialisation and ownership classifications of eligible providers; and (f) be in accordance with the guidelines issued by the Authority. (7) A procurement under a reservation scheme shall, at all times, be based on- (a) competition among the eligible providers; and (b) qualification of a provider to fully satisfy the requirements of each procurement activity. 31. Eligibility for participation in a reservation scheme shall- (a) require the provider to register in the register of providers maintained by the Authority; (b) be based on the capacity, area of specialisation and ownership classifications obtained at the time of registration with the Authority; and (c) require certification by the competent authority. 32. (1) A disposal requirement may be subject to a reservation scheme, where limiting participation on the basis of nationality is necessary or preferable due to- (a) end-user restrictions; (b) export restrictions; (c) national security or public interest issues; (d) legal or human rights issues; (e) environmental considerations; (f) a need to monitor compliance with the conditions of the sale contract; or (g) any other reasonable ground. (2) A procuring and disposing entity shall apply to the Authority in writing for permission to use a reservation scheme for a disposal requirement and shall state in the application- (a) the requirement to which the scheme shall apply; (b) the reason for limiting participation on the basis of nationality; and (c) the nationality which shall be eligible to bid. (3) The Authority shall issue its decision within ten working days and shall state whether the reservation scheme is approved with or without modifications or is rejected. 33. A procuring and disposing entity shall include details of the reservation scheme it shall apply, in the solicitation documents and invitation notice. 34. (1) A procuring and disposing entity may at any time during a procurement and disposal process carry out a due diligence test on a bidder or a provider. (2) A due diligence test may cover any area of a provider's operations that a procuring and disposing entity determines requires verification or checking in exercising an obligation of due care in a procurement or disposal process. (3) A due diligence test may be carried out at any stage of a procurement or disposal process and shall not be confined to the pre- or post-qualification stage or the procedure or content relating to these stages. (4) The nature and extent of the due diligence test conducted shall be determined by the nature, size and type of the potential contract, the risks associated with non performance of the bidder or provider and the procuring and disposing entity's existing knowledge or past association with the bidder or provider. 35. (1) Unless otherwise specified in the solicitation document, a bidder shall be permitted to submit bids as part of a joint venture, consortium or association. (2) Where a bidder submits a bid as part of a joint venture, consortium or association, the solicitation or contract document shall state where appropriate- (a) that a party to a joint venture, consortium or association shall be jointly and severally liable for the performance of the contract; (b) that a party to a joint venture, consortium or association shall be eligible to participate in the procurement and where one party is deemed to be ineligible, the whole joint venture or association shall be declared ineligible; (c) that a copy of the joint venture, consortium or association agreement, or the proposed agreement, may be required to be submitted as part of the bid or as a condition of contract effectiveness; (d) that a member of a joint venture, consortium or association shall nominate a lead member who shall have authority to bind the joint venture, consortium or association and shall at the time of contract award confirm the appointment by submission of a power of attorney to the procuring and disposing entity; (e) that any bid from a joint venture, consortium or association shall indicate the part of the proposed contract to be performed by each party and each party shall be evaluated or pre- or post-qualified with respect to its contribution only; (f) that the responsibilities of each party in paragraph (e) shall not be substantially altered without the prior written approval of the procuring and disposing entity; or (g) that association between short-listed bidders is only permitted with the prior written approval of the procuring and disposing entity. 36. Where sub-contracting of a procurement activity is permitted, the solicitation or contract document shall state where appropriate- (a) that the bidder is permitted to subcontract a part of the proposed contract and the limits on sub-contracting; (b) that a subcontractor must be eligible, in the same way as the prime contractor; (c) the information required in the bid relating to a subcontractor; (d) the approval required before entering into a subcontract, or before amending a subcontract agreement or the proportion of work allocated to a subcontractor, if not specified in the bid; (e) that the approval is required before substantially changing any other condition, agreement or details of the bid relating to subcontracting; (f) that subcontracting shall not relieve the prime provider of any of its obligations, duties, responsibilities or liabilities under the contract; (g) the obligations or conditions imposed on a provider, which the provider shall also impose on a subcontractor, including an undertaking of confidentiality or a requirement to maintain adequate liability insurance; (h) that a provider shall not impose onerous obligations or conditions on a subcontractor, including 'pay when paid' clauses; and (i) the manner in which a preference scheme shall be applied to a national or resident subcontractor.
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