What kind of information do Accounting Officers need to look at when assessing market price?
The AO canl use all appropriate sources of information including:
- Prices obtained on previous similar bids or contracts taking into account any difference in the quantities purchased, inflation and location of delivery among others.
- prices published or advised by potential providers; (e.g supplier catalogues, average prices and list of common user items) or
- a buildup of estimates of prices of components of the cost of BOQs established by the user department, non-consultancy services or supplies
- consultants rates obtain from professional association
What will happen where the price of the best evaluated bidder is higher than the market price established at the commencement of the procurement?
The Accounting Officer shall re-assess the market price, if the price is still valid the procurement should be cancelled, if it has changed the AO will go ahead and sign the contract if the entity has funds.
What is a preference scheme?
A Preference scheme is an arrangement where advantage is given to local bidders at the financial evaluation for bids of works, goods and services in a public procurement process.
When is a preference scheme used?
- Where the open domestic or open international bidding methods are used during financial evaluation works, supplies and non-consultancy services ;
- In respect of consultancy services, where proposals are invited from both national and foreign consultants and the quality and cost based selection method or the least cost selection methods are used during financial evaluation.
How is the margin of preference applied to a bid?
It is applied by adding a specified percentage margin to a financial bid or proposal price of those bidders who do not qualify for preference (a foreign bid/ proposal) thereby raising their bid or proposal price.
When procuring goods, works or services under open bidding the following shall apply:
Margin of preference shall be 15% in respect of goods and 7% in respect of works or services.
Do all locally made and imported goods qualify for preference schemes?
Only locally made goods qualify for preference schemes where:
- The labor or the value addition to the goods is more than 30%;and
- The production facility in which the goods are manufactured, assembled or processed is in Uganda and is engaged in the manufacturing, assembling or processing of the goods at the time of submission of the bid.
Under what circumstance do providers qualify for preference schemes?
A contractor and a consultant qualify for preference scheme where:
- If the contractor or consultant is an individual , is a Ugandan citizen;
- where the Company is registered in Uganda and more than 50% is owned by Ugandan citizens (share allotment Form A3); and
- Where a bidder is a legal entity and more than 50% of the share capital is owned by the Government or a Procuring and Disposal Entity
What is a reservation scheme?
A reservation scheme serves to set aside procurement opportunities to benefit for a target group of providers depending on the objectives of the scheme.
PPDA in consultation with a competent Authority and relevant stakeholders is mandated to specify the public procurement contracts to be subjected to a reservation scheme and PPDA shall designate the particular sectors, within a specified geographical area, that are eligible to participate in the reservation scheme.
What purpose does a reservation scheme serve?
- To promote the use of local expertise and materials;
- To promote the participation of local communities or local organizations; or promote the application of specific technologies.
What can Procuring Entities do to promote use of reservation scheme?
- Encourage providers that are not registered to register their businesses with Uganda Registration Services Bureau ;
- Build capacity of the local providers.
- Approach PPDA on potential areas for reservation
What is a bid securing declaration?
A bid securing declaration is an undertaking in writing that a bidder will not withdraw the bid or reject to sign the contract.
Does PPDA continue to issue waivers and deviations under the amended law?
The Authority no longer grant waivers/ deviations. The Authority only consider applications by PDEs to deviate from the use of standard bidding documents, procedural forms or any other attendant documents which are not suitable for a procurement and disposal process.
Does the display of the procurement plan on the PDEs’ notice board affect the confidentiality of the procurement process?
The display of the procurement plan does not affect the procurement process since the award of contract is not only based on price but follows the evaluation criteria stated in the bidding document. The bidders will still be subjected to competition to determine the best offer.
Does the 10 days display period of best evaluated bidders apply in cases of emergency procurement where the Accounting Officer has constituted himself into the Contracts Committee?
The circumstances of an emergency procurement are such that the entity cannot wait for lapse of the standstill period. The regulations provide that the BEB notice does not apply to micro and direct procurements as well as emergencies procurement.
In the case of disposal by Donation, does the Act & Regulations define who should be donated to?
The law does not specify who to donate to. However, donation should be done to private entities to benefit the community.
How is expired bid security and bid validity handled for procurements which are initiated before release of funds?
There is a provision for extension of bid security and bid validity period in case of delays. It’s null and void to enter into a contract where the bid validity or bid security has expired.
Should the Local Government entities follow Regulations and thresholds under the new amended PPDA Act 2003 and Regulations 2014?
Amended PPDA Act 2003 applies to all Government entities. Local Government are advised to use their current Regulations and Thresholds of 2006 until the Local Government Regulations are amended.
Is it prudent to communicate reserve prices for revenue centers to the bidders?
Reserve prices for revenue centers should be communicated both in the adverts and bidding documents for transparency purposes and as a best practice.
Is it allowed to request for eligibility documents that were not submitted.
It is allowed to ask for clarification from bidders either to clarify or submit eligibility documents. This will increase competition and enhance performance and result in value for money. Only documents that the bidder had at the time of bidding will be accepted. Bidders will not be allowed to submit new documents which were not available at the time of bidding.
Are members of PDU allowed to evaluate bids?
Yes, provides that an evaluation committee shall, among its members, have a member of the Procurement and Disposal Unit.
What is the Register of Providers?
The register of providers is an on- line database of providers of works, services and goods to government. The register is maintained by the PPDA.
What are the benefits of the Register of Providers?
- Increased visibility for Providers. The providers’ profile is an opportunity for providers to show case their skills and experience
- Identify eligible Providers to participate in preference and reservation schemes
- Instant on-line access to all bid opportunities in Government for all registered providers
- Avail e-mail and SMS- alert service for Providers
- Communicate with PDEs and other providers online.
- Reliable source of information on Providers for PDEs
- Offer a more transparent and reliable Providers’ data bank to PDEs
- Provide PDEs with a record of current and past contract performance of the Providers
- Expedite short listing for routine procurement
- Conveniently publish procurement notices
Are the Districts Officials allowed to compete in the procurement opportunities within their respective District?
No the PPDA law prohibits Contracts Committee members, staff and employees of council from being bidders in the entities where they work.
Should PDEs use PPDA Act and Regulations when procurering donor funded projects?
The PPDA law is applicable, especially where it does not conflict with the conditions of the donor. Otherwise, in case of conflict between the condition of the donor and the PPDA law, the donor conditions prevail as per Section 4 of the PPDA Act 2003.
Does repetitive awarding of contracts to one bidder limits competition, especially where the prequalification list has more than one provider?
The PDEs should rotate their prequalified bidders and also use the PPDA register of providers or providers from other PDEs to increase on the competitiveness, as this will promote fairness and competition.
Do PDEs need to ask for eligibility documents from pre-qualified providers under restricted bidding
PDEs should not ask pre-qualified providers to re-submit all the eligibility requirements, unless the documents vary from those requested for during pre-qualification especially annual documents like a trading license.
Providers are threatened to be blacklisted whenever they make complaints to the entities, do PDEs have power to blacklist providers?
Entities are advised to accommodate and respond to the complaints made by the providers. PDEs have no powers to blacklist providers it’s only PPDA which has powers to blacklist providers after giving them a fair hearing.
Where should Procuring and disposing entities (PDEs) keep the original procurement documents?
All procurement records should be kept by PDU as per Sec. 31 (0) of the Act.
What should PDEs do when dominant Providers require more than 30% advance payment before providing service?
PDEs are required to follow Reg. 44(3) of PPDA contracts Regulations 2014. However, entities are advised to apply for accreditation to the Authority in specific areas/industries where the above regulation cannot apply and it becomes a practice in the industry.
Software providers have their standard agreements that entities are compelled to use contrary to the one issued by PPDA
It’s okay for entities to use standard agreements of software providers after clearance by PPDA as per Sec. 7 (e) of the Act and also cleared by solicitor general where applicable as per Reg 7 (f) of PPDA contracts Regulations 2014.
How best should amended PPDA Regulations 2014, be cited?
PPDA Regulations are cited as follows:
- The Public Procurement and Disposal of Public Assets Regulation, 2014 (page 21 to34)
- The Public Procurement and Disposal of Public Assets Regulations (Procuring and Disposing Entities) Regulations, 2014 (page 35 to70)
- The Public Procurement and Disposal of Public Assets Regulations (Rules and Methods for Procurement of Supplies, Works and Non-consultancy Services) Regulations, 2014 (page 71 to142)
- The Public Procurement and Disposal of Public Assets Regulations (Evaluation) Regulations, 2014 (page 143 to 202)
- The Public Procurement and Disposal of Public Assets Regulations (Procurement of Consultancy Services) Regulations, 2014 (page 203 to316)
- The PPDA (Procurement of medicines and medical supplies) Regulations, 2014 (page 317 to32)6
- The PPDA ( Procuring and Disposing Entities outside Uganda) Regulations, 2014 (page 327 to337)
- The Public Procurement and Disposal of Public Assets Regulations 2014 (page 337 to434)
- The Public Procurement and Disposal of Public Assets Regulations (Contracts) Regulations, 2014 (page 435 to854)
- The Public Procurement and Disposal of Public Assets Regulations (Administrative Review) regulations, 2014 (page 495 to504)