223. (1) A procurement and disposal unit shall submit a recommendation for award of a contract to the contracts committee after completion of the evaluation process and any post-qualification and negotiation process.

(2) The contracts committee shall consider the recommendation in the same way as any other submission to the contracts committee.

(3) Approval of a recommendation by a contracts committee shall be an award of contract decision.

(4) For the purpose of these Regulations, an award of contract decision by the contracts committee shall not amount to a contract binding a procuring and disposing entity to a provider.

224. (1) A procuring and disposing entity shall, within five days of the decision of the contracts committee to award a contract, display a notice of best evaluated bidder, using the format provided in the Seventh Schedule.

(2) A notice of best evaluated bidder shall not amount to a contract.
(3) A notice of best evaluated bidder shall be displayed on a procuring and disposing entity's notice board and on the Authority's website.

(4) A notice of best evaluated bidder shall be published for a minimum of-

(a) ten working days prior to contract award in the case of open or restricted bidding; and

(b) five working days prior to contract award, in the case of quotations and proposals procurement or direct procurement.

(5) A notice of best evaluated bidder shall, at the time it is displayed in accordance with subregulation (6), be sent to all bidders who participated in the procurement.

(6) A procuring and disposing entity shall obtain proof of receipt of the notice of best evaluated bidder by all bidders.

(7) Where a decision to award a contract is changed after the publication of a notice of best evaluated bidder, a new notice of best evaluated bidder shall be displayed, in accordance with this regulation, prior to contract award or placement.

(8) This regulation shall not apply to micro procurement and procurement in emergency circumstances, irrespective of the procurement method used.

225. (1) The solicitation documents shall state the procedure for award of contract, which shall be-

(a) by placement of a written contract document; or

(b) by issue of a letter of bid acceptance, which shall be confirmed by placement of a written contract document.

(2) A contract document, purchase order, letter of bid acceptance or other communication in any form conveying acceptance of a bid that binds a procuring and disposing entity to a contract with the provider, shall not be issued prior to-
(a) an award of a contract decision by the contracts committee;

(b) the display of a notice of best evaluated bidder;

(c) the elapse of the period of the notice of best evaluated bidder;

(d) confirmation by an accounting officer that the procurement is not subject to any administrative review;

(e) commitment of the full amount of the funding for the period of the proposed contract; and

(f) approval by all relevant agencies, including, the Attorney General.

(3) A contract award shall, except for an award under micro procurement, be displayed, using the format specified in the Seventh Schedule, within one working day of the contract award, on a procuring and disposing entity's notice board and the Authority's website.

(4) After an award of a contract to the successful bidder, the unsuccessful bidders shall be notified of the award and their bids shall be rejected by a procuring and disposing entity.

226. (1) A procuring and disposing entity shall not enter into a contract until the accounting officer or an officer with delegated authority confirms in writing that the required funds have been committed for the proposed contract, except where-

(a) payment to a provider is to be effected in a proceeding financial year;

(b) for framework contracts, funds are committed at the time of issue of each specific call off order; or

(c) the Secretary to the Treasury has issued written instructions confirming that the required funding shall be made available in accordance with a specified schedule of payment.
(2) Where payment to a provider spans more than one year, an accounting officer shall make financial provision for the payment, in the budgets submitted to the Secretary to the Treasury, for the duration of the contract.

(3) In respect of framework contracts, the accounting officer shall ensure that-

(a) the minimum payment guaranteed to the provider is committed prior to the award of contract;

(b) sufficient funds are budgeted for in a financial year to cover the full cumulative costs of all call off orders anticipated for the year; and

(c) the funds required for each call off order are committed prior to its release.

(4) Where the Secretary to the Treasury confirms that the required funds shall be availed, the accounting officer shall make the necessary adjustments to the current and future budgets and comply with any other instructions issued by the Secretary to the Treasury.

227. (1) An accounting officer shall ensure that the total acquisition cost of a procurement is committed prior to contract placement.

(2) The total acquisition cost shall include-

(a) the total contract price;

(b) contingencies, such as anticipated contract variations or permitted exchange rate fluctuations; and

(c) other incidental costs, not included in the contract price, but for which a procuring and disposing entity shall be liable, such as local clearance, inland delivery and import taxes or duties.
(3) A procuring and disposing entity shall, for a contract for supplies using FOB delivery terms, ensure that additional costs are included in the total acquisition cost committed prior to contract placement, where the procuring and disposing entity is liable for payment of the costs.

(4) The additional costs referred to in subregulation (3) shall include-

(a) freight costs;

(b) local clearance and delivery costs;

(c) insurance costs;

(d) taxes, duties and levies due on importation;

(e) inspection costs; or

(f) any other costs,

in the total acquisition cost prior to contract placement.

228. (1) A procuring and disposing entity shall use the standard format for a letter of bid acceptance issued in guidelines.

(2) A letter of bid acceptance shall state-

(a) all items in the bid, which are excluded from the awarded contract; and

(b) all correspondence between a procuring and disposing entity and a bidder since the submission of the bids which shall form part of the awarded contract.

229. (1) A contract form shall be in accordance with the form in the solicitation document, which shall be the appropriate standard document issued by the Authority, and modified during drafting.

(2) A contract document shall-

(a) clearly identify the obligations of each party;
(b) correlate all payments by a procuring and disposing entity with the corresponding input, obligation or deliverables by a provider, in a specific identifiable and measurable manner;

(c) minimise risk for a procuring and disposing entity;

(d) maximise value for money for the procuring and disposing entity;

(e) be fair and equitable to the parties;

(f) provide effective supervision arrangements, where required;

(g) provide adequate monitoring and cost control measures, where required; and

(h) include adequate and clear delivery, acceptance and handover or commissioning arrangements, where required.

(3) A contract signatory shall initial all pages of a contract.

(4) At least three originals of the contract shall be produced and a procuring and disposing entity and a provider shall each get an original signed by both parties.

230. (1) Where a bid is still valid and the letter of bid acceptance or contract document do not contain any counter offer, a contract shall be formed when the letter of bid acceptance or the contract document is signed and issued by a procuring and disposing entity.

(2) Where a contract is formed by the issue of a letter of bid acceptance, the letter shall remain in force until replaced by a contract document which shall state that it replaces the letter of bid acceptance and that it is not a separate or additional contract.
(3) A procuring and disposing entity may require the provider to countersign and return a copy of the contract document, but such signature shall be for confirmation purposes only and shall not constitute acceptance of the contract.

231. (1) Contract effectiveness shall be as specified in the contract but may depend upon the fulfilment of one or more conditions which may include, but are not limited to receipt by-

(a) a procuring and disposing entity of a performance security;

(b) a procuring and disposing entity of an advance payment guarantee;

(c) a provider of an advance payment; or

(d) a provider of an acceptable letter of credit.

(2) A procuring and disposing entity shall promptly fulfil all its obligations relating to contract effectiveness.

(3) Where a provider-

(a) fails or refuses to sign a contract without due cause;

(b) fails to provide the required performance security within the specified time; or

(c) fails to fulfil any other condition of contract effectiveness,

the procuring and disposing entity shall proceed to award a contract to the next best evaluated bidder from among the remaining bidders.

232. (1) A performance security may be requested to protect against non performance of a contract.

(2) Solicitation documents shall state the requirement for a performance security.
(3) The amount of performance security shall be as specified in guidelines.

(4) A performance security shall be-

(a) in a format provided by the Authority and included in the solicitation documents;

(b) in a form and from an institution that is wholly acceptable to the Bank of Uganda in accordance with the guidelines; and

(c) valid for a period prescribed in the solicitation documents.

(5) Where a provider is required to provide a performance security, a bid security from that provider shall not be released until a satisfactory performance security is received by a procuring and disposing entity.

(6) A performance security shall not be released by a procuring entity until all the provider's obligations which are subject to the performance security have been fulfilled.

(7) A performance security may cover warranty obligations if stated in the solicitation documents.

(8) A proposed release of a performance security shall be communicated to the provider and returned in accordance with the provider's instructions.

Division II-Types of Contract.

233. (1) A procuring and disposing entity shall use any of the following types of contracts, in accordance with the provisions of this Division-

(a) lump sum;

(b) time-based;

(c) admeasurement;

(d) framework;
(e) percentage;

(f) cost reimbursable;

(g) target price;

(h) retainer;

(i) contingency or success fee; or

(j) a combination of any of these types of contracts.

(2) A procuring and disposing entity shall obtain the written approval of the Authority to use any other type of contract, other than the type specified in subregulation (1), prior to the issue of solicitation documents.

(3) A procuring and disposing entity shall select the contract type which is most appropriate to the procurement requirement, most advantageous to the procuring and disposing entity and which offers an equitable contract to the provider.

(4) The choice of a contract type shall be determined in accordance with regulations 270, 281 and 289 as applicable and shall take into account -

(a) the nature of the procurement requirement;

(b) the need for effective competition;

(c) the need to minimise risk for a procuring and disposing entity;

(d) the need to maximise value for money for a procuring and disposing entity;

(e) the likelihood of any delays or unforeseen circumstances requiring contract extensions, or variations of change of orders; and

(f) the need for effective contract management and cost control.
234. (1) A lump sum contract shall be used where the content, duration and outputs of the procurement are well defined.

(2) A lump sum contract may include either, fixed prices or price adjustment, in accordance with regulation 245.

(3) A lump sum contract may include interim or stage payments in accordance with regulation 250.

(4) Payment for a lump sum contract shall be linked to clearly specified outputs or deliverables, which may include-

(a) deliveries of supplies, evidenced by the appropriate delivery documentation;

(b) reports;

(c) drawings;

(d) bills of quantities;

(e) activity schedules;

(f) payment schedules;

(g) bidding documents;

(h) software programs; or

(i) any other outputs or deliverables appropriate to a contract.

235. (1) A time-based contract shall be used where the scope and duration of the procurement requirement is difficult to define.

(2) Payment for a time-based contract shall be based on agreed hourly, daily, weekly, or monthly fees for either nominated personnel or a certain type or grade of personnel and reimbursable items using either actual expenses or agreed unit prices.

(3) Payment rates for personnel may include salary, social costs, overhead, fee or profit and, special allowances.

(4) Reimbursable items may include-

(a) subsistence, such as per diem or housing;
(b) transport, which may be international or local;

(c) monies for mobilisation and demobilisation;

(d) services and equipment such as vehicles, office equipment, furniture and supplies;

(e) office rent;

(f) insurance;

(g) printing of documents;

(h) surveys;

(i) training, if it is a major component of the assignment; and

(j) any other appropriate items.

(5) A time-based contract shall include a maximum amount of total payments to be made which may include a contingency allowance for unforeseen work and duration.

(6) A time-based contract may include interim or stage payments in accordance with regulation 250.

(7) A contract manager shall closely monitor the progress of a time-based contract and that the payments claimed by the provider are appropriate and in accordance with the contract terms.

236. (1) An admeasurement contract means a re-measurement, unit rate or bill of quantities contract and shall be used for works-

(a) which are not well defined;

(b) which are likely to change in quantity or specification; or

(c) where difficult or unforeseen site conditions, such as hidden foundation problems, are likely.

(2) Works shall be split into various items and the quantity of each item needed to complete the assignment shall be estimated and indicated in a solicitation document.
(3) A bidder shall price each work item by indicating a unit rate for each item in the bill of quantities.

(4) The initial total contract price shall be calculated by multiplying the unit rate by the estimated quantity to give a total for each item, and then calculating the sum of the line item totals.

(5) The actual work done shall be measured during the performance of the contract and shall be finally reconciled upon completion of the contract.

(6) Payment shall only be made for the final contract price, which shall be the total of the actual quantity of work performed.

(7) An admeasurement contract may include fixed prices or price adjustment in accordance with regulation 245.

(8) An admeasurement contract may include interim or stage payments in accordance with regulation 250.

237. (1) A framework contract is a schedule of rates or indefinite delivery contract and shall be used-

(a) where a requirement is needed "on call", but where the quantity and timing of the requirement cannot be defined in advance; or

(b) to reduce procurement costs or lead times for a requirement which is needed repeatedly or continuously over a period of time by having them available on a "call off" basis.

(2) A bidder shall indicate the unit rate for each item.

(3) A procuring and disposing entity shall indicate the estimated quantity or value where this is possible or necessary to obtain competitive bids, but shall not make a commitment to purchase the full quantity or value.
(4) Notwithstanding subregulation (3), a procuring and disposing entity may make a commitment to purchase a minimum quantity or value or to purchase all similar requirements from a successful bidder, where this is necessary or preferable to obtain competitive prices.

(5) A framework contract shall state the arrangements for obtaining specific requirements during the period of the contract, using placement of "call-off" or delivery orders where appropriate.

(6) Payment shall be made on the basis of the works, services or supplies actually delivered or performed.

(7) A framework contract may include fixed prices or price adjustment in accordance with regulations 244 and 245.

238. (1) A percentage-based contract shall be used where it is appropriate to relate the fee paid directly to the estimated or actual cost of the subject of the contract.

(2) A percentage-based contract shall clearly define the total cost from which the percentage is to be calculated.

(3) A bidder shall be required to indicate his or her fee rate as a percentage of the total cost of the requirement.

(4) A percentage contract may include-

(a) a fixed target cost;

(b) minimum or maximum fees;

(c) sliding scales of fees, related to the value of the subject of the contract; or

(d) incentive fees, related to any savings made through economic design, discounts obtained, cost reductions or similar fees.
239. (1) A cost reimbursable contract shall be used-

(a) for emergency works, where there is insufficient time to fully calculate the costs involved; or

(b) for high risk works, where it is more economical for the procuring and disposing entity to bear the risk of price variations than to pay a provider to accept the risk or where a provider will not accept the risk.

(2) A procuring and disposing entity shall pay a provider-

(a) for the actual cost of the works, as evidenced by receipts and other appropriate documentation; and

(b) a fee or profit to be agreed upon and as specified in the contract.

240. (1) A target price contract may be used instead of a cost reimbursable contract where a target price can be agreed and cost savings may be achieved by offering an incentive payment to the provider for any cost savings below the target price.

(2) A procuring and disposing entity shall pay a provider for the actual cost of the works, as evidenced by receipts and other appropriate documentation and a fee, profit or agreed percentage of any cost savings below the target price.

241. (1) A retainer contract is used to retain a provider to provide services over a prescribed period of time, without defining the level and actual amount of services required.

(2) Payment for a retainer contract may include a flat fee-

(a) which represents the total payment due, irrespective of the level and amount of services provided during the prescribed period; or

(b) as a retainer for the prescribed period plus a pre-agreed unit rate for services provided.
242. (1) A contingency or success fee contract is used to link a provider's fee to an achieved objective to provide an incentive to the successful completion of a particular task, event or action.

(2) Payment for a contingency or success fee, may be a-

(a) pre-agreed amount linked to the successful completion of a target or event;

(b) percentage of a predetermined amount or proceeds; or

(c) a basic flat rate, which is not linked to the successful completion of a particular task, event or action.

(3) A contingency or success fee contract shall describe the nature of the success to which a success fee shall be applicable and the timescale in which the task, event or action shall be achieved.

243. (1) Where a procuring and disposing entity wishes to use another type of contract or contracting arrangement, including, acquisition by rental, lease, hire purchase, licence, tenancy or franchise, it shall seek guidance from the Authority on the applicable procurement procedures and documents.

(2) Where a project is to be financed or partially financed under a Build Own Operate (BOO), Build Own Transfer (BOT), Build Own Operate Transfer (BOOT), Public Private Partnership (PPP) or similar type of private sector arrangement, a procuring and disposing entity shall seek guidance from the Authority on the applicable procurement procedures and documentats.

(3) The applicable procurement procedures shall be in accordance with the basic procurement principles of public procurement in the Act and these Regulations.

(4) The Authority may, issue guidelines for private sector contracting arrangements.

Division III-Contract pricing and payment.

244. (1) A procuring and disposing entity shall place a contract based on fixed and firm prices for a procurement requirement that is to be completed within eighteen months from the placement of a contract.

(2) A procuring and disposing entity may place a contract with price adjustment provisions for a procurement requirement that will not be completed within eighteen months from the placement of a contract, in accordance with regulation 245.

(3) The Authority shall provide a procuring and disposing entity with advice in connection with internationally accepted practices in relation to pricing standards for differing procurement requirements.

245. (1) A price adjustment provision may be included in a contract extending beyond eighteen months, where it is more economical for a procuring and disposing entity to accept the inflation risk than to pay an additional cost for the supplier to accept the risk.

(2) Where a price adjustment provision is included, the method for calculating adjustments, and any restrictions or conditions on adjustments, shall be clearly stated in the solicitation documents.

(3) A price adjustment shall be calculated using a predefined formula, which shall separate the total price into components, such as labour, equipment, materials, and fuel, adjusted by price indices specified for each component.

(4) Where the payment currency is different from the source of the input and corresponding index, a correction factor shall also be applied in the formula, to avoid incorrect adjustment.

(5) The formula, price indices, correction factors and base date for application shall be clearly stated in the solicitation documents and in the contract.
(6) The formula and price indices shall be appropriate to the type of procurement and source of the inputs and shall use industry standards wherever possible.

(7) Where no industry standard or other appropriate formula is available, a procuring and disposing entity shall use the sample formula in the Eighth Schedule.

246. Solicitation documents and the resulting contracts shall specify the payment terms that shall apply to a contract and these shall include-

(a) payment method;

(b) payment structure;

(c) payment documents;

(d) payment period; and

(e) payment currency.

247. (1) A procuring and disposing entity shall agree with a provider on the method of payment for a contract.

(2) Where a bidder proposes a payment method, the bidder shall include the full cost of the method in the bid price.

(3) The method of payment shall be comprehensively defined in a contract and shall indicate the person who pays any costs associated with the agreed method.

248. (1) A procuring and disposing entity shall state in the solicitation documents and the resulting contract, the structure of the payment to be made.

(2) A payment structure and amount of payment for each procurement requirement shall be determined by best practices.

(3) A payment structure may include-

(a) advance payments;
(b) stage payments, which shall be linked to specific deliverables or milestones and which may be stated in percentage terms of the defined amount or in specific amounts;

(c) regular interim payments, which shall be based on general progress or the work performed and may relate to a specified time period or a measurement of work performed; or

(d) a retained payment, which shall be linked to a specific contract event, such as installation or warranty.

249. (1) Except where best practices or market forces dictate, a procuring and disposing entity shall not enter into a contract which requires an advance payment.

(2) Where an advance payment is consistent with best practices, an advance payment security shall be required and the requirement for a payment security shall be stated in the solicitation documents in accordance with regulation 252.

(3) An advance payment shall be recovered from subsequent payments made to a provider, which shall be subject to a percentage deduction equal to the percentage paid as advance payment.

(4) An advance payment may be made for-

(a) mobilisation or start up costs for the provision of works or services; or

(b) the provision of supplies, such as items that have to be specially or custom manufactured.

250. (1) Where best practices dictate, a procuring and disposing entity may enter into a contract in which an interim or stage payment is permitted.

(2) Where an interim or stage payment is permitted, it shall comply with the following conditions-

(a) the payment shall be linked to specific and verifiable deliverables, contract event, time period, or work which should be stated in the solicitation documents and the resulting contract;

(b) individual payments shall not exceed the cost or value of the deliverable, period or work to which it is linked; and

(c) payment may require the provision of a payment security if, during the delivery of the works, services or supplies, risk or title remains with the provider.

(3) Where a payment security is deemed appropriate under paragraph (2) (c), regulation 252 shall apply.

251. (1) Where a procuring and disposing entity has determined that a retained payment is appropriate, the contract shall state-

(a) the percentage or amount of the total contract value to be retained;

(b) the period or the event at which the retention is to be released; and

(c) the documents that shall prove or certify the period or event in paragraph (b).

(2) A provider may be permitted to substitute a payment security for a retention payment in accordance with regulation 252.

252. (1) No payment shall be made to a provider under a contract for works, services or supplies, without receipt of the deliverables specified in the contract.

(2) Notwithstanding sub-regulation (1), payment may be made to a provider prior to receipt of deliverables where an appropriate payment security is obtained.
(3) The solicitation documents and contract shall state the requirement for a payment security.

(4) A payment security shall-

(a) be in a format provided by the Authority which shall be included in the solicitation documents;

(b) be in a form and from an institution that is wholly acceptable to the Bank of Uganda in accordance with the guidelines;

(c) be valid for a prescribed period beyond the expected final transaction date of a contract or expected release date; and

(d) where appropriate, allow for the progressive reduction of the secured sum, where a successive payment is released against the secured sum.

(5) The period in subregulation (4)(c) shall be determined taking into account the circumstances of a procurement requirement and the likelihood of extensions or delays to the final completion date.

(6) The validity period for a payment security for procurement for works shall be for three to six months after the final expected transaction date.

(7) The validity period for a payment security for procurement for services or supplies shall be for one to three months after the final expected transaction date.

(8) A payment security shall be released promptly by a procuring and disposing entity upon expiry of the term of the security or upon reduction of the secured sum to zero, whichever comes later.

(9) The proposed release of a payment security shall be communicated to a provider and returned in accordance with the provider's instructions.
253. (1) A procuring and disposing entity shall clearly state in the solicitation documents, the documents against which each payment shall be made.

(2) A payment document may include a document certifying or proving-

(a) the delivery or receipt of goods, works or services in accordance with the terms of the contract;

(b) the content of the consignments delivered;

(c) the insurance coverage of the delivered items;

(d) the successful inspection of the delivered items;

(e) the origin or eligibility of the delivered items;

(f) payment of costs specified in a contract, such as duties, levies or taxes that may be due and payable by a provider on the delivered items;

(g) the acceptance of installation or commissioning of the delivered items by a user;

(h) the receipt or acceptance of reports, manuals, guides, or other documents;

(i) the actual time period worked;

(j) the actual works or services completed;

(k) the payment of sums due to sub-contractors; or

(l) the actual sums paid for reimbursable costs, such as air tickets.

(3) A payment request from a provider shall require an original invoice from the provider certifying the payment due.

254. (1) Payment for any sum of money due under a contract may only be made in the name of a provider stated in a contract through recognised banking channels and practices.

(2) No payment shall be made to any person other than a provider, unless the provider requests and confirms in writing the details of the recipient of a payment.
255. The period for payment shall be thirty days from certification of invoices, except where this is varied in the special conditions of contract.

256. (1) A procuring and disposing entity shall ensure that all payment requests are processed promptly within the payment period specified in a contract.

(2) A provider shall make a request for payment to a procuring and disposing entity in accordance with the terms of a contract placed by the procuring and disposing entity.

(3) A procuring and disposing entity shall, within five working days of receipt of a payment request from a provider, examine and ascertain that the request is correct, accurate and in accordance with the terms of a contract.

(4) Where a payment request is accurate and in accordance with the terms of a contract, a procuring and disposing entity shall certify it for payment and make payment in accordance with the terms of the contract.

(5) Where a payment request contains errors or discrepancies or is supported by incorrect or incomplete documentation or is not in accordance with the terms of a contract the payment request shall not be certified but it shall be returned to a provider, specifying the reasons for the rejection.

(6) A provider whose payment request is rejected shall be entitled to present a new or amended payment request, which shall be treated as the original payment request.

(7) Notwithstanding subregulation (5), where a procuring and disposing entity queries any part of a payment invoice from a provider, that query shall not delay payment of the unchallenged portion of the invoice to the provider.

257. (1) Payment shall be made in the currency stated in the contract.

(2) When permitted under a contract, where a payment to a provider is to be made in Uganda, and he or she is required to remit all or part of the amount outside Uganda, the contract amount in Ugandan shillings shall be paid to the provider, less or plus, as the case may be, an amount specified in the provider's invoice representing any of the following exchange movements-

(a) the fluctuations which may have occurred between the date of conversion of the payment to Uganda Shillings, reflected in the solicitation documents and bid, and the date of invoice, except that the invoice date shall not be more than ten days after the date of delivery or shipment; and

(b) any further fluctuation in the rate of exchange, which may occur between the invoice date and the actual date of remittance abroad, except that such further fluctuation shall be more than three percent, and the remittance is made within ten days of the date of a contract or purchase order.

(3) A claim by a provider for exchange rate movements shall be accompanied by-

(a) a copy of the relevant invoice from the foreign supplier;

(b) a copy of the bank remittance voucher;

(c) a copy of the purchase order;

(d) a certificate of audit, or similar document, in cases where amounts that are not related to a specific order are included in the remittance voucher; and

(e) any other information which may be reasonably requested by a contract manager.

(4) Where a bidder fails to comply with the requirements of a contract affecting the admissibility of a claim, the cost of exchange rate movements shall be borne by the provider.

Division IV-Contract management.

258. (1) After a contract has been placed, contract management, except the capacity to amend or terminate, shall pass from a procuring and disposal unit to a user department.

(2) A procurement and disposal unit shall provide a copy of the contract to a user department.

(3) Upon receipt of a contract, a contract manager shall prepare a contract implementation plan, using PP Form 60 in the Ninth Schedule, and forward a copy to the to the procurement and disposal unit for monitoring purposes.

(4) Where a user department has any reservations or difficulties with the terms or conditions of the contract, they shall be discussed and resolved with the procurement and disposal unit.

(5) A user department shall report to a procurement and disposal unit-

(a) any departure from the terms and conditions of a contract; and

(b) any alterations to the conditions of a contract, either before or during the course of implementation, that in effect could have impacted on the evaluation and rankings of the bid and the choice of provider.

259. (1) A user department shall nominate an existing member of staff with appropriate skills and experience, or who is supervised by a member of staff with appropriate skills and experience, as a contract manager.

(2) A user department may nominate a member of staff of another user department as contract manager, where appropriate.

(3) A contract of high value or which is complex or forms part of a larger project, may be assigned to a contract management team, which shall have the same responsibilities as a contract manager.
(4) A contract may be managed by a body or person external to a procuring and disposing entity, provided the user department supervises the external contract manager.

260. (1) A contract manager shall-

(a) manage the obligations and duties of the procuring and disposing entity specified in the contract; and

(b) ensure that the provider performs the contract in accordance with the terms and conditions specified in the contract and a procuring and disposing entity's requirements.

(2) The functions of the contract manager are-

(a) to ensure that-

(i) a provider meets all performance or delivery obligations in accordance with the terms and conditions of a contract;

(ii) a provider submits all required documentation in accordance with the terms and conditions of a contract;

(iii) a procuring and disposing entity meets all payment and other obligations in accordance with the terms and conditions of a contract;

(iv) there is adequate cost, quality and time control where appropriate;

(v) there is compliance with the provisions of the Act, these Regulations, the guidelines and best practices;

(vi) all contract obligations are complete prior to closure of the contract file; and

(vii) all contract management records are kept and archived as required;
(b) to issue any required variations or change orders, in accordance with the terms and conditions of a contract;

(c) to provide full details of a required contract amendment to the procurement and disposal unit and to obtain a contracts committee's approval prior to issue of any amendment;

(d) to manage handover or acceptance procedures;

(e) to provide full details of any proposed termination of a contract to a procurement and disposal unit and to obtain the approval of the contracts committee prior to termination; and

(f) to submit reports on the progress or completion of a contract as required by a procurement and disposal unit or an accounting officer.

261. (1) A contract variation or change order is a change to the price, completion date or statement of requirements of a contract, which is provided for in the contract to facilitate adaptations to unanticipated events or changes in requirements.

(2) A contract variation or change order may be issued with the approval of the contracts committee.

(3) Notwithstanding subregulation (2), any additional funding required for a variation or change order shall first be committed.

(4) A contract may be varied in accordance with a compensation event or the issue of a variation, change order or similar document, as provided in the contract.

(5) A variation or change order shall be in accordance with the terms and conditions of a contract and shall be authorised by a competent officer.
(6) A contract which provides for a variation or change order shall include a limit on a variation or change order which shall not be exceeded without a contract amendment.

(7) A competent officer, for purposes of this regulation, shall be defined in the contract.

262. (1) An amendment to a contract refers to a change in the terms and conditions of an awarded contract.

(2) Where a contract is amended in order to change the original terms and conditions, the amendment to the contract shall be prepared by the procurement and disposal unit.

(3) A contract amendment shall not be issued to a provider prior to-

(a) obtaining approval from a contracts committee;

(b) commitment of the full amount of funding of the amended contract price over the required period of the revised contract; and

(c) obtaining approval from other concerned bodies including the Attorney General, after obtaining the approval of a contracts committee.

(4) A contract amendment for additional quantities of the same items shall use the same or lower unit prices as the original contract.

(5) No individual contract amendment shall increase the total contract price by more than fifteen percent of the original contract price.

(6) Where a contract is amended more than once, the cumulative value of all contract amendments shall not increase the total contract price by more than 25 percent of the original contract price.
263. (1) Where the contract manager or a procurement and disposal unit believe that a contract should be terminated, the contract manager or the procurement and disposal unit shall submit a recommendation for termination with a copy of the contract to a contracts committee.

(2) A recommendation for termination of a contract shall state-

(a) the name of a provider and the procurement reference number;

(b) reasons for the termination;

(c) the actions taken to avoid termination, where applicable;

(d) the contractual grounds for the termination;

(e) the costs, if any, resulting from the termination; and

(f) any other relevant information.

(3) No contract shall be terminated prior to obtaining the approval of a contracts committee.

(4) Where a contract is terminated, a procuring and disposing entity shall, where appropriate, inform the Authority of the provider involved, the reasons for the termination and make a recommendation on the provider's registration status.