292. (1) Disposal of public assets, including assets identified by a board of survey, shall be carried out in accordance with the Act, these Regulations and the guidelines.

(2) Subject to the provisions of the Act and these Regulations, the provisions of Parts IV and V of these Regulations, shall apply equally, to all activities of disposal of public assets.
293. (1) A procuring and disposing entity shall maintain a record of its disposal proceedings and contract management for a period of seven years from the date of a decision to terminate a disposal activity or the date of completion of a disposal activity, whichever comes first.

(2) Where a contract is on going or is challenged, the records shall be kept for one additional year after the completion of the contract or the settlement of the dispute, whichever comes earlier.

(3) The records of a procuring and disposing entity specified in this regulation shall be open to inspection by the Authority during working hours -

(a) records of a disposal process;

(b) records relating to contracts management;

(c) records of the contracts committee; and

(d) records of an accounting officer which relate to disposal, contracts management, disagreements with the contracts committee, investigations of complaints or any other matter related to the Act or these Regulations.

(4) Records of disposal of a public asset shall contain the following documents, where appropriate-

(a) a request to initiate disposal proceedings, including a report of a board of survey;

(b) a copy of an invitation notice, if any;

(c) copies of solicitation documents, their amendments or clarifications and any additional information such as an auctioneer's catalogue or general descriptive literature;

(d) a report of inspection of the assets by potential bidders;
(e) a record of the bid openings;

(f) a copy of all bids evaluated, clarifications requested and responses received;

(g) the evaluation report, if any;

(h) minutes of meetings on the disposal, including negotiation proceedings;

(i) a copy of a letter of bid acceptance to a successful bidder, if any;

(j) the contract, if any;

(k) all documents related to contracts management, including records of receipts of payment and handing over certificates;

(l) a copy of the update to the procuring and disposing entity's asset register;

(m) all correspondence between a procuring and disposing entity and a bidder, an auctioneer or a third party disposal agent; and

(n) a copy of all submissions to the contracts committee and all decisions related to the disposal, including, the choice of disposal method, approval of solicitation documents, approval of an evaluation report, approval of negotiations, contract award decision, approval of contract documents and any decision to suspend or cancel disposal proceedings.

(5) A procuring and disposing entity shall submit a monthly report to the Authority on all disposal contracts awarded during the preceding month using PP Form 201 in the Ninth Schedule to these Regulations.

294. (1) The medium of communication shall be specified in the invitation documents.

(2) English shall be the language of communication.
(3) Notwithstanding subregulation (2), communications may also be in other appropriate languages, where these languages offer an efficient means of communicating with a potential bidder or increasing competition.

(4) Subject to the provisions of these Regulations, meetings and agreements between a procuring and disposing entity and a bidder or a provider shall be minuted and confirmed in writing.

295. (1) The accounting officer shall ensure that the assets of a procuring and disposing entity are reviewed on an annual basis, to identify those which are obsolete and should be subject to disposal.

(2) Assets to be disposed of shall be grouped in contracts or lots in a manner which attracts maximum possible competition.

(3) Where an asset is to be disposed of through a public auction, a procuring and disposing entity shall maximise the number of assets to be disposed of at a time in order to reduce the administration and transaction costs.

(4) A procuring and disposing entity may pool assets for purposes of common disposal.

(5) A procuring and disposing entity may use a board of survey to identify assets to be disposed of on a periodic basis.

296. (1) A user department or a procuring and disposing entity responsible for the management of materials shall initiate the disposal process for assets under its management.

(2) Initiation of disposal requirement may follow the recommendation of a board of survey.

(3) A disposal requirement shall use DPA Form 120 in the Ninth Schedule, and shall include a clear indication of the assets to be disposed of and the approval to commence disposal proceedings for the specified assets.

(4) Approval to commence disposal proceedings shall be approved by an accounting officer, or any authorised officer.
(5) A disposal requirement shall be allocated a specific reference number, using the referencing system in the guidelines.

(6) Documentation related to the disposal requirement shall state the appropriate reference number from the asset register.

Division II-Methods for disposal of public assets.

297. (1) A procuring and disposing entity shall select one of the following disposal methods in accordance with the provisions of this Division-

(a) public auction;

(b) public bidding;

(c) sale to public officers;

(d) direct negotiations;

(e) trade-in;

(f) transfer to another procuring and disposing entity;

(g) conversion or classification of assets into another form; or

(h) destruction of assets.

(2) A procuring and disposing entity shall take into account the following factors in selecting a disposal method-

(a) the potential market value of the asset;

(b) the volume of the asset, whether one-off or bulk;

(c) the number and location of potential bidders;

(d) the location of the asset;

(e) restrictions on export or end-users;

(f) national security and public interest issues;

(g) health and safety issues;

(h) legal or human rights issues;

(i) environmental considerations;
(j) the trade-in value of the asset; and

(k) the possibility of transferring the asset to another procuring and disposing entity.

298. A public auction may be used where-

(a) there are no conditions of end-user or export restrictions attached to the sale; or

(b) there is a large number of potential bidders or assets to be disposed of in one location and where an on site auction is arranged to avoid transport costs.

299. Public bidding may be used-

(a) for high-value or unusual assets;

(b) for assets located in remote areas;

(c) for assets that have a geographically dispersed potential market;

(d) for assets with end-user or export restrictions attached to their sale;

(e) where conditions need to be attached to the sale of the asset; or

(f) where post-bid negotiations may be required.

300. (1) To promote probity, fairness and competition, a procuring and disposing entity shall not dispose of a public asset outside of a public process where an open and competitive process may be successful.

(2) Disposal may be by sale to a public officer-

(a) where there is no likely benefit or financial advantage to a procuring and disposing entity, in using any other disposal method;

(b) where the assets for disposal are a small number of low value items which are unlikely to attract public interest;
(c) where the personal use of disposal assets would directly benefit the performance of a public officer in the execution of his or her duties within a procuring and disposing entity; or

(d) in remote locations, where any other method of disposal would be difficult.

(3) Disposal by sale to public officials shall be contracted to an independent agent.

(4) Assets for sale to public officers shall be for personal use but not business or commercial use.

(5) An asset shall be considered as an asset for business or commercial use where-

(a) an excessive number of purchases of a similar asset is made within a limited time period;

(b) there is frequent resale of assets purchased within a limited time period following the disposal; or

(c) there is purchase of more than one similar asset during the same disposal process.

(6) A public officer shall not be permitted to participate in any disposal process as a bidder, except under the sale to public officers method.

301. (1) Direct negotiations may be used where-

(a) the market is limited and a single buyer who is willing to pay the reserve price has been identified;

(b) national security, public interest, legal or human rights issues or environmental considerations are served by selling to a particular company, group or individual;
(c) a potential buyer is a tenant, occupier or user of an asset at the time the decision to dispose of the asset is made, and it is reasonable to give that person first option to buy the asset at a market rate; or

(d) an asset is located on a potential buyer's premises on a hire or free-use basis and it is reasonable to give that person first option to buy the asset at a market rate.

(2) A contracts committee shall approve the use of direct negotiations disposal method prior to the commencement of disposal proceedings.

302. (1) Trade-in may be used where the trade-in of surplus assets to offset the purchase price of new items provides a convenient, economic and efficient way of upgrading equipment.

(2) Notwithstanding subregulation (1), trade-in shall not be used where it prevents the operation of open and fair competition or where it reduces the value for money in a procurement process.

(3) Trade-in shall not be used where factors other than price have to be taken into account in the disposal process.

303. (1) Transfer to any other procuring and disposing entity may be used where the other procuring and disposing entity shall make further use of the asset.

(2) The cost of the asset shall be agreed between the two procuring and disposing entities.

(3) Transfer may be at no cost, if it is uneconomic to charge for the asset.

304. Conversion or classification of an asset into any other form may be used-

(a) on grounds of national security or public interest, legal or human rights issues or environment considerations; or
(b) where the asset has no residual value in its current form, but where some sale value can be obtained through conversion or classification into any other form.

305. Destruction of an asset shall be the least favoured method of disposal, but may be used-

(a) on grounds of national security or public interest, health and safety, legal or human rights issues or environment considerations; or

(b) where the asset has no residual value and it cannot be transferred to any other procuring and disposing entity or converted or classified into another form with any value.

306. (1) The disposal process under public auction shall follow the disposal process in Divisions III and IV of this Part, as modified by this regulation.

(2) A submission to a contracts committee for a public auction shall be made using DPA Form 101 in the Ninth Schedule to these Regulations.

(3) A procuring and disposing entity shall appoint a registered auctioneer to conduct a public auction on its behalf in accordance with regulation 307.

(4) A bid for a public auction shall be solicited through the publication and display of a notification of public auction in accordance with regulation 319.

(5) The period between the publication of the notification of public auction and the date of the auction shall be at least ten working days to allow sufficient time for potential bidders to inspect the asset.

(6) No formal solicitation document shall be issued for a public auction and any information, including an auctioneer's catalogue, shall be used for information purposes only.
(7) Bids shall be oral and the procedure for bidding shall be specified by the auctioneer in accordance with auction practice.

(8) There shall be no minimum bidding period.

(9) A bid shall be presented orally and a bid shall be evaluated on the basis of price only.

(10) Negotiations shall not be permitted.

(11) A contract shall be awarded to the bidder offering the highest price as determined by the auctioneer and the successful bid shall be declared at the auction.

(12) A contract shall be awarded orally to the successful bidder by the auctioneer and the successful bid shall be announced at the auction.

(13) A successful bidder shall pay at least fifty percent of the contract price immediately after award of contract, and the balance shall be paid within five working days of award of contract.

(14) Where a bidder fails to make payment, in accordance with subregulation (12) or (13), the contract may be terminated.

307. (1) A procuring and disposing entity shall appoint a registered and licensed auctioneer to conduct the disposal process on its behalf when undertaking a disposal by public auction.

(2) An auctioneer shall be appointed using the appropriate procurement method for services and the procurement of auctioneer services shall take into account-

(a) the auctioneer's commission rates;

(b) the location of an auctioneer and cost of transportation of the asset to be disposed of;

(c) an auctioneer's facilities;

(d) an auctioneer's ability to achieve optimum returns;

(e) past performance and integrity of an auctioneer;

(f) viability of the auctioneer's businesses; and
(g) the provision of a performance security in the format and form required by a procuring and disposing entity.

(3) The appointment of an auctioneer shall be confirmed by a written contract, which shall include-

(a) the payment terms and commission rate and any other fees payable to an auctioneer;

(b) the method and timing for payment of proceeds to a procuring and disposing entity;

(c) responsibility for and payment of transport costs, and costs for any assets returned unsold;

(d) the period within which an auction shall be held;

(e) the information and conditions of sale to be included in the notification of public auction, an auctioneer's catalogue or any other similar document;

(f) the documentation required by a procuring and disposing entity for each individual sale, such as a copy of receipts for payment and handing over certificates; and

(g) the details of any performance security to be lodged with a procuring and disposing entity upon commencement of the contract.

(4) A procuring and disposing entity shall be issued with a receipt by the auctioneer for any asset delivered to or collected by an auctioneer.

308. (1) The disposal process under public bidding shall follow the disposal process in Divisions III and IV of this Part, as modified by this regulation.

(2) A submission to a contracts committee for public bidding shall be made using DPA Form 102 in the Ninth Schedule to these Regulations.
(3) A bid shall be solicited by the publication and display of a public invitation notice, indicating that an interested bidder may obtain the solicitation document from a procuring and disposing entity.

(4) A public invitation notice shall be published and displayed in accordance with regulation 319.

(5) An advertisement for public bidding shall be for at least four working days.

(6) A solicitation document shall be drafted in accordance with regulation 318 and may be sold.

(7) The minimum bidding period shall be ten working days.

(8) A procuring and disposing entity shall request for a written sealed bid from a bidder.

(9) Evaluation based on a price only methodology shall be the preferred evaluation methodology for public bidding.

(10) Evaluation based on price and other factors methodology, may be used in accordance with regulation 327(3).

(11) Post-bid negotiations may be undertaken in accordance with regulations 332 and 333.

(12) Contract award shall be by a decision of a contracts committee, in response to a recommendation from a procurement and disposal unit.

(13) Contract placement shall be by issue of a contract to a successful bidder.

(14) A notice of award of contract shall be displayed in accordance with regulation 336(5).

309. (1) The disposal process under sale to public officers shall follow the disposal process in Divisions III and IV of this Part, as modified by this regulation.

(2) A submission to a contracts committee for sale to a public officer shall be made using DPA Form 103 in the Ninth Schedule to these Regulations.
(3) A public officer involved in initiating the disposal process, valuations or managing the disposal process shall not participate as a bidder.

(4) Assets shall not be grouped in lots, but sold as separate items, except where-

(a) a group of items is of a very low value;

(b) a group of items form a natural set; or

(c) the items would have no value or a lower value if sold separately.

(5) A public officer shall not be permitted to purchase more than one similar item under a single disposal process.

(6) A bid shall be solicited by the publication of a non-public invitation notice, indicating that a public officer interested in bidding may obtain the solicitation documents from a procurement and disposal unit.

(7) A non-public invitation notice shall be displayed in accordance with regulation 319(4).

(8) The advertising period for sale to public offices shall be at least four working days.

(9) Solicitation documents shall be drafted in accordance with regulation 318 and shall not be sold.

(10) The bidding period for sale to public officers shall be ten working days.

(11) A procuring and disposing entity shall request for written sealed bids from a public officer.

(12) Evaluation for sale to a public officer shall be based on price only.

(13) Notwithstanding subregulation (12), an evaluation committee shall consult the Authority's register of sales to public officers, prior to recommending award of contract, to verify that the best evaluated bidder is not purchasing the asset for business or commercial use.
(14) Where the best evaluated bidder is judged to be purchasing the asset for business or commercial use, the evaluation committee shall report this to the contracts committee and undertake the same check on the second best evaluated bidder.

(15) A post-bid negotiation shall not be permitted.

(16) Contract award shall be by a decision of a contracts committee in response to a recommendation from the procurement and disposal unit.

(17) Contract placement shall be by issue of a contract to the successful bidder.

(18) An accounting officer shall forward to the Authority, within seven working days of the contract award, a copy of-

(a) all bids received;

(b) the evaluation report; and

(c) the contract awarded.

(19) The Authority shall maintain a register of all sales to public officers, which shall include for each contract at least-

(a) the name of the public officer;

(b) the date of the disposal contract;

(c) the type of asset sold; and

(d) any other relevant information.

310. (1) The disposal process under direct negotiations shall follow the disposal process in Divisions III and IV of this Part, as modified by this regulation.

(2) A submission to the contracts committee for disposal by direct negotiation shall be made using DPA Form 104 in the Ninth Schedule to these Regulations.

(3) A valuation shall be obtained where an asset is to be disposed of through direct negotiations.
(4) Bids shall be solicited through the issue of written solicitation documents, using the format issued by the Authority, modified as necessary to suit the requirement.

(5) There shall be no minimum bidding period.

(6) A procuring and disposing entity shall require a bidder to submit a written sealed bid.

(7) Evaluation based on price only shall be the preferred evaluation methodology for direct negotiations.

(8) Evaluation based on price and other factors may be used in accordance with the conditions in regulation 327(3).

(9) Post-bid negotiations may be undertaken in accordance with regulations 332 and 333.

(10) Contract award shall be by a decision of the contracts committee, in response to a recommendation from a procurement and disposal unit.

(11) Contract placement shall be by issue of a contract.

(12) A notice of award of contract shall be displayed in accordance with regulation 336(5).

311. (1) A valuation shall always be obtained where an asset is to be disposed of using trade-in.

(2) Under trade-in, the disposal process shall be an integral part of the procurement process and shall follow the procurement rules in Parts IV and V.

(3) A disposal process shall use the appropriate disposal method in accordance with the provisions of Division III of Part IV.

(4) The estimated trade-in value shall not be deducted from the estimated value of the procurement in selecting the appropriate disposal method.
(5) Approval shall be obtained from a contracts committee to include a trade-in requirement as a procurement requirement prior to the commencement of the procurement proceedings, using DPA Form 105 in the Ninth Schedule to these Regulations.

(6) A solicitation document and a bid notice shall clearly state that the procurement involves a trade-in arrangement.

(7) A solicitation document shall be drafted using the appropriate procurement document issued by the Authority, and shall include the information in regulation 318.

(8) Advertisement of the trade-in, issue of solicitation documents, the bidding period and receipt and opening of bids shall be in accordance with the relevant procurement rules.

(9) Evaluation shall follow the appropriate methodology for a procurement requirement.

(10) The trade-in value offered for an asset shall be included in the financial comparison only in the manner stated in the solicitation documents.

(11) The way in which trade-in offers have been evaluated shall be clearly stated in the evaluation report.

(12) Negotiations may be permitted in accordance with the relevant rules on procurement.

(13) Award of contract shall be in accordance with the relevant rules on procurement.

(14) A contract shall use the appropriate procurement document issued by the Authority and shall include the information in regulation 336(4).

(15) Responsibility for management of procurement contract and a disposal element shall be clearly defined and where different public officers are responsible for each element, they shall work together as and when appropriate.
312. (1) A submission to a contracts committee for a transfer to another procuring and disposing entity shall be made using DPA Form 106 in the Ninth Schedule to these Regulations.

(2) Where disposal is by transfer to another procuring and disposing entity, the arrangements for the transfer shall be discussed and agreed between the two procuring and disposing entities.

(3) The agreement in subregulation (2) shall include-

(a) the cost to be paid by the recipient procuring and disposing entity, which cost may be omitted if it is uneconomic to charge for the asset;

(b) any subsidiary or linked assets to be included in or excluded from a transfer;

(c) the date for the transfer;

(d) responsibility for transporting an asset;

(e) the hand-over procedure and any documentation to be transferred;

(f) the mechanism and date for payment of any cost; and

(g) responsibility for any legal obligations linked to an asset.

(4) The arrangements for the transfer shall be confirmed in writing using DPA Form 161 in the Ninth Schedule, and shall be approved and signed by the accounting officers of both procuring and disposing entities.

(5) A recipient procuring and disposing entity shall issue an authorised receipt for the asset to the originating procuring and disposing entity.

313. (1) A submission to a contracts committee for conversion or classification of assets into another form shall be made using DPA Form 107 in the Ninth Schedule to these Regulations.

(2) Where conversion or classification into another form is used, a procuring and disposing entity shall identify a competent authority or an appropriate provider to undertake the conversion or classification.
(3) Approval shall be obtained from an accounting officer, prior to the commencement of the disposal proceedings using Part 1 of DPA Form 167 in the Ninth Schedule to these Regulations.

(4) Documentary evidence of the conversion or classification shall be obtained from a competent authority or provider using Part 2 of DPA Form 167 in the Ninth Schedule and shall be kept as part of the record of disposal proceedings.

314. (1) A submission to a contracts committee in respect of destruction of assets shall be made using DPA Form 108 in the Ninth Schedule to these Regulations.

(2) Where destruction of assets is used, a procuring and disposing entity shall either undertake the destruction itself or identify a competent authority or an appropriate provider to undertake the destruction.

(3) Approval shall be obtained from an accounting officer, prior to the destruction being undertaken using Part 1 of DPA Form 168 in the Ninth Schedule to these Regulations.

(4) The method of destruction shall be appropriate to-

(a) the asset being disposed of; and

(b) the circumstances giving rise to the destruction, including national security or public interest, health and safety and legal or human rights issues or environment considerations.

(5) A signed certificate of destruction shall be obtained from a procuring and disposing entity, competent authority or provider using Part 2 of DPA Form 168 in the Ninth Schedule and shall be kept as part of the record of disposal proceedings.

(6) Where a procuring and disposing entity needs to dispose of perishable items using the destruction of assets method on a regular basis, the contracts committee may give a running approval to conduct all such disposals without further submissions to it.
Division III-Disposal rules and processes.

315. (1) A procuring and disposing entity shall obtain two valuations of an asset prior to the commencement of any disposal proceedings as follows-

(a) if required by law, a first valuation shall be obtained from a competent authority and a second independent, market-based valuation shall be obtained from an appropriate authority or provider; or

(b) where there is no legal requirement, two independent valuations shall be obtained from appropriate authorities or providers.

(2) The two valuations shall be confidential and the identity and recommendations of each valuer shall not be revealed to the other.

(3) Notwithstanding subregulation (1), no valuation of an asset shall be required where the cost of the valuation is likely to be in excess of the money expected to be realised through the disposal process.

(4) Where the valuation is within a range specified in these Regulations, a procuring and disposing entity shall use an average of the two valuations to determine a reserve price for the asset, which shall be the minimum sale price of the asset subject to regulation 334.

(5) Where the valuations differ by more than the range specified in the guidelines, the valuers shall be informed of significant difference in their valuation, without specifying the values, and shall be asked to revise their valuation.

(6) Where a revised valuation is submitted which is within a range specified in the guidelines, a procuring and disposing entity shall proceed to set a reserve price, in accordance with subregulation (4).
(7) Where the valuer confirms the original valuation, or where the revised valuation still differs by more than the range specified in the guidelines, a third independent valuation shall be obtained.

(8) Where a third valuation is obtained, a procurement and disposal unit shall recommend a reserve price, using all three valuations and the range of variation between them.

316. (1) Solicitation documents or notices, and any additional information made available to a prospective bidder, shall specify that the asset is to be sold on an "as is, where is" basis and shall disclaim all liability after sale.

(2) Any additional information, such as an auctioneer's catalogue, shall be for information purposes only and shall not be considered as part of a solicitation document.

(3) Notwithstanding subregulation (1), a procuring and disposing entity shall give a full and accurate description of an asset to be disposed of.

(4) The description of an asset shall, where appropriate, address the risk and cost of dismantling and removing the asset upon completion of the disposal proceedings.

(5) A warranty shall not be offered on an asset to be disposed of, except where the increase in price received for the assets is likely to be greater than any costs associated with providing the warranty.

317. Bids shall be solicited through-

(a) a public invitation notice or notification of auction;

(b) solicitation documents;

(c) a non-public invitation notice;

(d) discussions with another procuring and disposing entity;
(e) inclusion in a solicitation document for a procurement requirement, as a trade-in;

(f) discussions with a third party responsible for conversion, reclassification or destruction; or

(g) a combination of the methods in paragraphs (a), (b), (c), (d), (e) and (f).

318. (1) Solicitation documents shall be drafted using the formats issued by the Authority and shall include-

(a) a description of the asset to be disposed of;

(b) a statement that the asset is sold on an "as is, where is" basis or an alternative basis for sale;

(c) the location of the asset and arrangements for a potential bidder to inspect the asset;

(d) the requirement for a bid security;

(e) the deadline, location and method for submission of a bid;

(f) the arrangements for a public bid opening;

(g) qualification requirements to be met by a bidder;

(h) the method for evaluating bids and awarding a contract;

(i) conditions of sale;

(j) the payment procedure and handing over arrangements;

(k) a statement confirming that the risk and cost of dismantling and removing an asset shall be the responsibility of a successful bidder, or any other arrangements; and

(l) details of any reservations scheme in operation.

(2) Solicitation documents may be sold at a price to cover the costs of copying and issuing the documents but shall not include any element of profit for a procuring and disposing entity.
(3) A procuring and disposing entity shall record the issue or sale of solicitation documents using-

(a) DPA Form 130 in the Ninth Schedule, where a fee is payable for the document; or

(b) DPA Form 131 in the Ninth Schedule, where no fee is payable for the document.

319. (1) A public invitation notice and a notification of a public auction shall use the format in the Seventh Schedule and shall be published in at least one publication of wide national circulation.

(2) A public invitation notice and notification of public auction shall be displayed on a procuring and disposing entity's notice board and on the Authority's website.

(3) A public invitation may also be communicated to the public using any other appropriate media, including the radio, where the media offers an efficient means of communicating with potential bidders or increases competition.

(4) A non-public invitation notice shall use the format in the Seventh Schedule and shall be displayed-

(a) on the Authority's website; and

(b) at locations, within a minimum of five procuring and disposing entities, which are freely and easily accessible to all public officers within a procuring and disposing entity.

320. (1) Advertising and bidding periods shall be based on-

(a) the need to allow sufficient time for a potential bidder to inspect an asset prior to bidding;

(b) the time needed to obtain written solicitation documents;

(c) the level of detail required in a written bid; and
(d) the time required for preparation and submission of a written bid.

(2) The minimum advertising and bidding period shall be as specified in Division II of this Part.

321. (1) A procuring and disposing entity shall offer a reasonable opportunity to potential bidders, to inspect an asset before the date or deadline for bidding.

(2) Arrangements for the inspection of the assets shall be included in the invitation notice or solicitation documents, where appropriate.

322. (1) A bid may be oral, in case of auctions or written in all other cases.

(2) Where a bid is written, a procuring and disposing entity shall require a bidder to submit a written sealed bid.

(3) Solicitation documents shall contain instructions to a bidder on the following-

(a) format and documentation required for bidding;

(b) procedure for signing and authorising bids; and

(c) number of copies of bids to be submitted, which shall include one original bid, marked 'ORIGINAL', and a specified number of copies, of the bid marked 'COPY'.

323. (1) Where a bid is oral, the procedure for bidding shall be specified by the auctioneer.

(2) A written bid shall be submitted in plain outer envelopes which shall be securely sealed in such a manner that opening and resealing cannot be achieved undetected.

(3) A bidder shall use choose his or her preferred method of envelope sealing, but a procuring and disposing entity shall at the opening of bids, reject an envelope that is unsealed.
(4) Solicitation documents shall contain instructions on the details of labelling and references to be detailed on each envelope, which shall include-

(a) the disposal reference number;

(b) the name of a bidder;

(c) the words "WITHDRAWAL" or "REPLACEMENT" where a bid is withdrawn or replaced; and

(d) the words "NOT TO BE OPENED BEFORE THE DATE AND TIME OF BID OPENING".

324. (1) A bidder may withdraw a written bid at any time before the deadline for submission of bids by submission of a letter notifying a procuring and disposing entity of the withdrawal.

(2) A withdrawal letter shall be authorised and submitted in the same way as the bid and shall be opened, read out and recorded at the bid opening.

(3) A bidder withdrawing his or her bid may submit a new bid in accordance with the provisions of the solicitation documents.

(4) A submitted bid may be amended at any time before the deadline for submission of bids and the amendment shall be by withdrawal of the original bid and submission of a new bid.

(5) An oral bid shall not be withdrawn.

325. (1) Where a written bid is required, the receipt of the bid and the bid closing process shall be in accordance with the provisions of regulations 157, 158 and 159.

(2) The bid closing shall be recorded using DPA Form 134 in the Ninth Schedule to these Regulations.
326. (1) Where a written bid is required, public bid opening shall be held in accordance with regulations 160, 161, 162 and 163.

(2) The bid opening shall be recorded using DPA Form 135 in the Ninth Schedule to these Regulations.

(3) Except where otherwise provided for in these Regulations, a procuring and disposing entity shall not declare the best evaluated bid or award a contract at the bid opening or at any re-bidding process.

327. (1) Evaluation of a bid shall be based on price only, or based on price and other factors.

(2) Evaluation of bids based on price only shall be the preferred evaluation methodology.

(3) Other factors may be taken into consideration in the evaluation of bids, where-

(a) there are end-user restrictions;

(b) there are export restrictions; or

(c) there is a need to attach conditions to a sale.

(4) The other factors referred to in subregulation (3) include-

(a) nationality, under a reservation scheme;

(b) environmental impact;

(c) risks or conditions associated with health and safety, legal or human rights issues, national security or public interest;

(d) the need to maintain an asset within Uganda or within a given region;

(e) the need to maintain an asset in working order or to maintain accessibility for the public; or

(f) any other performance conditions and means of monitoring compliance with such conditions.
328. (1) Where the highest-priced bid has been submitted by more than one bidder, a procuring and disposing entity shall invite the bidders who submitted identically priced bids to submit a revised bid.

(2) No bidder, other than those who submitted the identical highest priced bid, shall be permitted to submit a revised bid or participate in the re-bidding procedure in any way.

(3) A revised bid shall only contain a revised price and a bidder shall not be permitted to change the terms and conditions, technical details, documentation or any other aspects of their original bid, in any way.

(4) A revised bid shall be written and sealed and submitted in the same way as the original bid.

(5) A bidder shall be given a reasonable period of time prior to the deadline for submission of their revised bid.

(6) Where evaluation is based on price only in accordance with regulation 329 and it is reasonable to conduct and conclude the evaluation immediately in the presence of a bidder at a public bid opening, a procuring and disposing entity may, if the bidder agrees, conduct the re-bidding procedure immediately.

(7) Where the re-bidding procedure is conducted immediately, a bidder shall be given access to a private location in which to discuss and prepare the revised bid and the bidder shall be provided with all reasonable assistance, such as writing and sealing materials, calculators and access to a telephone.

(8) The bid opening procedure for the revised bid shall be the same as that for the original bid.

(9) Evaluation shall be conducted in the same manner as the original evaluation, except that the price contained in the revised bid shall replace the original price.

(10) Where identical highest priced bids are received during a re-bidding process, further re-bidding shall be held in accordance with this regulation.
(11) Where it is subsequently discovered that an error was made in the original evaluation, including, an arithmetic error or application of an exchange rate, and that as a result bidders had not submitted identical highest priced bids, the re-bidding procedure shall be declared null and void and the revised bids shall not be considered.

(12) Where re-bidding fails, the whole process shall be cancelled and re-tendered.

329. (1) Where the evaluation is based on price only, a contract shall be awarded to the bidder with the highest price.

(2) Where written bids are received, the evaluation committee shall -

(a) correct any arithmetic errors in accordance with regulation 192;

(b) convert the bids to a common currency; and

(c) compare the bid price with the value of an asset or reserve price, where appropriate.

(3) Where it is reasonable to conduct and conclude an evaluation immediately in the presence of a bidder at a public bid opening, a procuring and disposing entity may do so for the purpose of establishing whether the highest priced bid was submitted by more than one bidder so that a re-bidding procedure is done in accordance with regulation 328.

(4) Notwithstanding subregulation (3), a procuring and disposing entity shall not declare the best evaluated bid or contract award at the bid opening or re-bidding process.

(5) Contract award shall be recommended to the best evaluated price, subject to any reservations in regard to the valuation or reserve price.
330. (1) Where the evaluation is based on price and other factors, the eligibility requirements, evaluation criteria and methodology shall be stated in the solicitation documents.

(2) Eligibility requirements shall be evaluated on a pass or fail basis.

(3) A procuring and disposing entity may include nationality as an eligibility requirement.

(4) Compliance with other factors shall be evaluated on a pass or fail basis wherever possible.

(5) Notwithstanding subregulation (4), evaluation of compliance with other factors may include an evaluation of the relative merits of each bid in exceptional circumstances.

(6) The other factors shall be stated and the reasons for evaluating them justified and approved by a contracts committee, prior to the issue of solicitation documents.

(7) An evaluation committee shall-

(a) use a preliminary examination to assess the eligibility of a bidder on a pass or fail basis and shall reject a bidder who fails to meet the eligibility criteria;

(b) evaluate other factors in the manner stated in the solicitation document; and

(c) use a price evaluation to-

(i) correct any arithmetic errors in accordance with regulation 192;

(ii) convert the bids to a common currency if necessary; and

(iii) compare the bid price with the valuation of the asset or reserve price where appropriate.
(8) A recommendation for contract award shall be in accordance with the methodology in the solicitation document.

(9) Contract award shall be recommended to a bidder with the best evaluated price, and who meets the eligibility requirements and passes the evaluation criteria, subject to any reservations in regard to the valuation or reserve price.

(10) Notwithstanding subregulation (9), where the evaluation criteria includes an evaluation of the relative merits of each bid in accordance with subregulation (5), a contract award shall be recommended to the bidder with the best evaluated price, in accordance with the methodology in the solicitation documents.

331. (1) Where a bid is oral under the public auction method, no evaluation committee or evaluation report shall be required.

(2) Notwithstanding subregulation (1), the name of the successful bidder and the contract price shall be reported to a contracts committee using DPA Form 160 in the Ninth Schedule to these Regulations.

(3) Where a written bid is required-

(a) the evaluation shall be conducted by an evaluation committee appointed in accordance with regulation 169;

(b) the evaluation shall be recorded using DPA Form 141 in the Ninth Schedule; and

(c) an evaluation report shall be submitted to the contracts committee for approval prior to contract award.

(4) Where evaluation is based on price only, the evaluation report shall be drafted using DPA Form 141 in the Ninth Schedule and shall include-

(a) the price of each bid;
(b) the correction of any arithmetic errors and the conversion to a common currency where necessary;

(c) a statement of the best evaluated bid;

(d) a comparison of the best evaluated bid with the valuation or reserve price, if any; and

(e) a recommendation, which may be-

(i) to award the contract to the best evaluated bidder;

(ii) to hold negotiations with the best evaluated bidder;

(iii) to cancel the disposal process;

(iv) to dispose of the asset using an alternative disposal method; or

(v) any other appropriate recommendation.

(5) Where evaluation includes factors other than price, the evaluation report shall be drafted using DPA Form 142 in the Ninth Schedule and shall indicate-

(a) whether a bidder is eligible;

(b) the results of the application of any other evaluation criteria relevant to public interest;

(c) the price of each bid;

(d) the correction of any arithmetic errors and the conversion to a common currency where necessary;

(e) a statement of the best evaluated bid;

(f) a comparison of the best evaluated bid with the valuation or reserve price, if any; and

(g) a recommendation, which may be-
(i) to award the contract to the best evaluated bidder;

(ii) to hold negotiations with the best evaluated bidder;

(iii) to cancel the disposal process;

(iv) to dispose of the asset using an alternative disposal method; or

(v) any other appropriate recommendation.

332. (1) Under public bidding, negotiations may relate to the conditions of sale, where evaluation is based on factors other than price, and shall not relate to the price of the bid.

(2) Under direct negotiations, negotiations may relate to the conditions of sale, where evaluation is based on factors other than price or the price of the bid.

333. (1) Negotiations shall be held after a contracts committee has approved the evaluation committee's recommendation of the best evaluated bidder and the need to hold negotiations in the case of a public bidder, or that the single bidder should be considered for contract award, subject to negotiations in the case of direct negotiations.

(2) Negotiations shall only be held with the best evaluated bidder.

(3) An evaluation committee shall prepare a negotiations plan, using DPA Form 150 in the Ninth Schedule to these Regulations.

(4) A negotiations plan shall specify the issues to be negotiated and the objectives to be achieved and where possible shall quantify the objectives and set maximum and minimum negotiating parameters for a negotiation team.

(5) A contracts committee shall approve the negotiations plan and the membership of the negotiation team, prior to any negotiations taking place.
(6) A negotiation team shall be appointed in accordance with regulation 221, and recorded using DPA Form 140 in the Ninth Schedule to these Regulations.

(7) A negotiation team shall not commit a procuring and disposing entity to any proposed arrangements or agreements, but shall seek the approval of the contracts committee prior to confirming any agreement reached.

(8) A negotiation team shall produce minutes of the meeting with a bidder using DPA Form 151 in the Ninth Schedule and shall obtain a bidder's written agreement that the minutes are a true and accurate record of the negotiations held.

(9) A negotiation team shall report to the contracts committee the results of the negotiations and state whether the objectives of the negotiations plan have been achieved and shall submit minutes of the meeting.

(10) A negotiation team shall submit a recommendation to a contracts committee to either proceed with contract award to the recommended bidder, incorporating the agreements reached during negotiations, revise the negotiation objectives and hold further negotiations or terminate the negotiations and reject a bidder.

(11) Where a negotiation team recommends rejection of the bidder, it may also, where appropriate, recommend the invitation of the next ranked bidder for negotiations in the case of public bidding or a new bidder to submit a bid in the case of direct negotiations.

(12) A contracts committee may-

(a) approve the recommendations;

(b) request further negotiations on a specific point;

(c) reject the recommendations with reasons; or

(d) cancel the negotiations, in their entirety.

(13) The results of approved negotiations shall be incorporated into the contract.
(14) Where negotiations are commenced with the next ranked bidder or where a new bid is invited, the procuring and disposing entity shall not reopen earlier negotiations and an original bidder shall be informed of the reasons for termination of the negotiations.

334. (1) Where the best evaluated bid is less than the reserve price, a contracts committee in consultation with an accounting officer may-

(a) obtain a further valuation from an independent source;

(b) negotiate the