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THE UNITED REPUBLIC OF TANZANIA

MINISTRY OF FINANCE

THE NATIONAL PUBLIC PROCUREMENT POLICY

FIRST DRAFT

BY

A POLICY DRAFTING TEAM

SEPTEMBER 10, 2012

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Table of Contents

List of Abbreviations… …………………….……………….……………………………….………iiiExecutive Summary...……………………………….……………………………………..…………iv

Section One: Carrying Forward Procurement Reforms through a NationalProcurement Policy…………………………………..………………....1

1.1 Preamble………………………………….……..………………………………….………….11.2 Definition of Public Procurement …………………………………………………………11.3 Background to the National Public Procurement Policy………..…………..11.4 Significance and Rationale.........................................................................................................31.4.1 The Government’s Obligation for Effective Public Service Delivery….…...………..……….31.4.2 The Size of Public Procurement Expenditure………………………………..………………..31.4.3 Public Procurement Role in National Socio-Economic Development………………………...4

Section Two: Vision, Mission, Goal and Objectives….……………………………..5

2.1 Policy Vision…………………………………………………………………………………..52.2 Policy Mission…………………………………………………………………………………52.3 The Goal of the Policy……………………………………….………………………………..52.4 Objectives of the Policy………………………………...……………………………………..52.5 The Scope of the Policy……………………………………………………………………….6

Section Three: Public Procurement Models and Principle………………………..7

3.1 Approaches to the Setting of a National Public Procurement Policy……………………...…..73.2 A Rationale for the Principles Model………………………………………………………….73.3 Core Principles of the Policy……………………………………………………..……………73.3.1 Value for Money……………………………………………………..………………………..73.3.2 Economy……………………………………………………………..……………….………..83.3.3 Efficiency………………………………………………………………………….…………..83.3.4 Equity……………………………………..……………………….…………………………..83.3.5 Integrity and Ethics……………………………………………………………………………83.3.6 Fairness………………………………………………………..…………………..…………..93.3.7 Transparency………………………………..…………………………………….….…..……93.3.8 Accountability…………………………………………………..……………………………103.3.9 Reliability……………………………………………………….……………………………103.3.10 Competition…………………….…………………………………………………………….103.3.11 Expertise and Probity……………….………………………………………………………. 10

Section Four: Management of the Public Procurement Function..……….……...11

4.1 Tying the Procurement Planning to the National Budgeting………………….…….………124.2 Handling of Emergency Public Procurement Events..............................................................134.3 Mobilization of Adequate Financial Resources ……………………………….……………134.4 Professional and Human Resource Capacity Development……..…………………….……134.5 Compliance with Public Procurement Laws and Regulations…………….…………………14

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4.6 Development and Use of Electronic Procurement (e-Procurement) System...........................154.7 A Positive Bias and Preference for Suppliers or Vendors……………………………………164.8 Conditions on Considerations for Casual Purchases……………...…………………….……164.9 Requirements for Vendor Insurance……………………………………...…….……….……174.10 Contract Administration, Vendor Performance Monitoring and Management………………214.11 Blacklisting Fraudulent Tenderers……………………………………………………...……214.12 Handling of Abnormally Priced Tenders………………………………………………….…224.13 Requirements for Vendor Insurance, Performance Bonds and Bid Bonds…….………….…204.14 Complaint Mechanisms in the Public Procurement System…………………………………244.15 Disposal of Public Assets…………………………………………………………………….244.16 Public Procurement and Conflict of Interest………………………………..………………..254.17 Public Procurement Policy Awareness Creation.....................................................................274.18 Limited Direct Invitation as Exemption from Open Competition…………..………….……174.19 Restrictions on Considerations for Casual Purchases………………………..……………....194.20 A Requirement for Notification to Tenderers and Information Disclosure…….……………234.21 Working with Procurement Framework Agreement................................................................29

Section Five: Areas of Strategic National Procurement Concerns…………..…..25

5.1 Reliable and Effective Construction Procurement…….………………………..…………....255.2 Public Procurement Policy as a Tool for Development ……...…………………….………..255.3 Promoting Sustainable Public Procurement............................................................................ 265.4 Developing Socially Responsible Procurement System..........................................................275.5 Participation of Small and Medium Enterprises in Public Procurement Market

Opportunities…………………………………………………………………….…………..285.6 Leveraging an Increased Local Business Accessibility to Procurement Markets………..…..295.7 Public-Private Partnership and Private Sector Participation in Public Procurement…..….…295.8 Public Procurement and Affirmative Action…………………………..…………………..…315.9 Good Governance in Public Procurement……………………..…………………………..…315.10 Prevention of Corruption in the Public Procurement Transactions…...……………………...325.11 Public Procurement and Supporting Poverty Alleviation…………………………..………..335.12 Development of a Legislative and Regulatory Framework……………...………………..….345.13 Institutional Framework for the Management of Public Procurement Policy…..……………355.14 Monitoring and Evaluation……………………………………………………………….…..36

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List of Abbreviations

AO Accounting OfficerBSD Bid Security DepositCTB Central Tender BoardDCPs Development Cooperation PartnersEP Electronic ProcurementEPP Emergency Public ProcurementGAMD Government Asset Management DivisionGDP Gross National ProductGN Government NoticeGPSA Government Procurement and Supplies AgencyIAGD Internal Audit General's DivisionIAU Internal Audit UnitLGAs Local Government AuthoritiesLGFA Local Government Finances ActMDAs Ministries, Departments, AgenciesMKUKUTA Mkakati wa Kukuza Uchumi na Kupunguza Umasikini Tanzania

(National Strategy for Growth and Reduction of Poverty-NSGRP)MMCC Materials Management Caretaker CommitteeNBMM National Board for Materials ManagementNBS National Budgetary SystemNEEA National Economic Empowerment ActNPPP National Public Procurement PolicyPCCB Prevention and Combating of Corruption BureauPE Procuring EntityPFA Procurement Frame AgreementPMU Procurement Management Unit (PMU)PPA Public Procurement ActPPAA Public Procurement Appeal AuthorityPPPA Public-Private Partnership ActPPPD Public Procurement Professional DevelopmentPPPM Public Procurement Principle ModelPPPs Public-Private PartnershipsPPPU Public Procurement Policy UnitPPRA Public Procurement Regulatory AuthorityPSA Public Service ActPSE Public Service EthicsPSP Private Sector ProcurementPSPTB Procurement and Supplies Professionals and Technicians BoardSMEs Small and medium EnterprisesTRR Tender Risk RegisterUNCITRAL United Nation’s Commission on International Trade LawURT United Republic of Tanzania

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Executive Summary

The government of the United Republic of Tanzania has long realized the importance of the publicprocurement function and its role in the socio-economic development of the country; as well as itscontribution to poverty reduction. As a response to that need, the government, beginning in the mid1990s, has initiated a number of procurement reforms in its public procurement system with the aimof making it more efficient and transparent in line with requisite and basic procurement guidelinesand best practices; but in many ways, trying to make it more focused on economic development andpoverty reduction with apparent limitations that this policy tries to address.

There is in Tanzania an elaborate structure of public procurement system for works, services andgoods. The system has resulted from the adoption of a rather universal United Nations Commissionon International Trade Law (UNICITRAL) model (Model Law) which, by and large, has informedthe procurement reforms. The country has also witnessed a transformation from a segregated andcompartmentalized system of the form of procurement system through the Government StoresDepartment, Medical Stores, and Water Stores etc, to a better coordinated and synchronized publicprocurement system. Therefore the government has moved fast with the reforms to the extent ofputting in place a legislative framework for public procurement even though there has not been aPubli procurement policy to guide the implementation of the reforms which have resulted into thecurrent laws and regulations.

Aside from public procurement been more associated with markets and business in the theacquisition of goods and services on the best possible terms, it also has broader social, economic andpolitical implications which can only be appropriately addressed through a National PublicProcurement Policy. Unfortunately reforms on public procurement in the country have not been asfocused as intended. It would have been more prudent to have constructed a procurement policybefore thinking of legislation (derivable procurement policy instrument).Therefore a formulation of aprocurement policy is considered as a first step in the establishment of an effective publicprocurement system. It is this reform oversight and gap which have prompted the initiative offormulating a National Public Procurement Policy.

This policy has resulted from a study of how the practice of procurement has been done in thecountry, how it is currently done and other experiences around the world that are relevant toTanzania. A team of consultants undertook a study which resulted into what is titled “A NationalPublic Procurement Policy Paper”. This paper identified the key gaps and priority issues to beaddressed by this policy. The issues raised were discussed, ratified and validated before becomingstudied further so as to draft this policy. The gaps and issues were discussed and ratified at specialsessions organized by the Public Procurement Regulatory Authority which were attended by a“Special Committee on the Preparation of National Public Procurement Policy”. The resultingpolicy has therefore gone through an initial participative process navigated for the purpose of thispolicy.

A major concerned of this policy is to create a public procurement system that is derived from, andbeen a vehicle or driver for, the national socio-economic concerns such as poverty reduction, valuefor money, industrial development, equity concerns and a mechanism focused on opening up apropensity for increased local participation in the procurement market opportunities. It is a policypursuing the government’s objectives of good governance, fighting and preventing corruptprocurement, and safeguarding Tanzanian national interests in the procurement market competitionwithout obliterating the core principles of good procurement practice.

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The policy appears in five sections. The first section gives the background and the rationale for thepolicy. The second section states the policy’s vision, mission, goal and objectives. It emphasizes thatthe policy shall strive to ensure prudent use of public resources in procuring works, goods andservices at the right and competitive prices in order to realize value for money.

The third section addresses itself to the core principles of the policy. The principles include value formoney, economy, efficiency, integrity and ethical procurement, fair competition, transparency,reliability and accountability which should constitute and guide the national public procurementfunction at all time.

The fourth section gives procedural premises guiding elements for managing the public procurementfunctions. Emphasis is placed on closely relating the procurement actions to planning that isinterlocked into approved budgetary expenditure system, so as to keep out of unnecessary incidencesof unplanned and emergency procurement. The section calls for public procurement professional andhuman resources training and development in the country. It also emphasizes the need to adopt anelectronic-procurement in line with electronic government agenda (e-government program) andinformation and communication technology policy.

The issues of probity, professionalism and avoidance of conflict of interest are also emphasized.How various and unavoidable forms of exemption from competition in the procurement marketshould be managed are also addressed; as is the issue of contract making, management andperformance evaluation and monitoring of the public procurement function.

The last section concerns strategic public procurement areas. These include construction, public-private partnerships, procurement as a tool for national socio-economic development, procurementconcerns for sustainable environment, as well as a socially responsible procurement management.Emphasis is also put on enforcing the anti-corruption initiatives already in place. This section endswith subsections on the need to continuously develop or reform procurement institutional and legalframeworks for efficiency, effectiveness and pursuit of value for money. A call for the need for aMonitoring and Evaluation Framework ends this subsection.

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THE NATIONAL PUBLIC PROCUREMENT POLICY

Section One

1.0 Carrying Forward Procurement Reforms through a National ProcurementPolicy

1.1 Preamble

The government of the United Republic of Tanzania has long realized the importance of the publicprocurement function and role in the economic development of the country and its contribution topoverty reduction. As a response to that need, the government, beginning in the mid 1990s, hasinitiated a number of procurement reforms in its public procurement system with the aim of makingit more efficient and transparent in line with requisite and basic procurement guidelines and bestpractices, but in many ways, trying to make it more focused on economic development and povertyreduction with apparent limitations that this policy tries to address. One of the driving forces to thisinitiative was the urgent need for strengthening institutions involved in public procurement, as theseinstitutions lacked technical and human resources capabilities. The government has moved fast withthe reforms to the extent of putting in place a legislative framework for public procurement. Asidefrom public procurement been more associated with business i.e. the acquisition of goods andservices on the best possible terms, it also has broader social, economic and political implicationswhich can only be appropriately addressed through a National Public Procurement Policy.Unfortunately reforms on public procurement in the country have not been as focused as intended .Itwould have been more prudent to have constructed a procurement policy before thinking oflegislation (derivable procurement policy instrument).Therefore a formulation of a procurementpolicy is considered as a first step in the establishment of an effective public procurement system. Itis this reform oversight and gap which have prompted the initiative of formulating a National PublicProcurement Policy.

1.2 Definition of Public Procurement

Public procurement means an acquisition, whether under formal contract or otherwise, of works,supplies and services by public bodies using publicly sourced finances. It involves the purchasing,hiring or obtaining by any contractual means of publicly needed goods, construction works andservices by the public sector. It also includes situations in which public funds are mobilized toprocure works, goods and services even if the government does not get directly involved.

1.3 Background to the National Public Procurement Policy

The National Public Procurement Policy emanates from the ongoing public sector reforms in thecountry. Before the present system, public procurement functions were executed through anextremely compartmentalized procurement system with multiple authorities such as GovernmentStores, Medical Stores, Veterinary Stores, Water Stores, Government Press and Printer, andElectrical and Mechanical Division of Communication and Works (Comworks). All the procurementfunctions using local or central government funding had to be processed through them. Theprocurement system was fragmented, and there was no uniform system of procurement in place as

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each entity operated differently using weakly coordinated public procurement system. Moreover, theprocurement system had little or no room for active private sector participation; and in case ofcompetition between public and private institutions, preference was always given to publicinstitutions.

This policy is formulated against a background of some notable public procurement reformachievements. Some of the most important achievements include, inter alia, the enactment of thePublic Procurement Act (PPA) No. 3 of 2001 and its Regulations which provided for theestablishment of the Central Tender Board (CTB) as the central coordinating body for the new publicprocurement system; and the establishment, under the same Act, the Public Procurement AppealAuthority (PPAA) to deal with resolution of complaints and disputes arising from the new publicprocurement process. As a way of improving procurement system in the country, the governmentrepealed the PPA No.3 of 2001 by enacting the new PPA of 2004 which was further repealed by thePPA of 2011. These changes decentralized the procurement functions to procuring entities andestablished the procurement oversight body, the Public Procurement Regulatory Authority (PPRA).Further to this important reform, the Government has operationalized the Public ProcurementAppeals Authority (PPAA) with the function of resolving complaints and disputes arising from theprocurement process.

Despite improvement in performance, public procurement sector is still facing a number ofchallenges. They include:

a) Lack of a national public procurement policy that sets the modus operandi, defines thenational values, norms and socio-economic aspirations of the country and provides guidelinesand procedures for development of public procurement sector in the country.

b) Limited financial capacity and inadequate human resources to effectively and efficientlymanage public procurement functions.

c) Lack of public procurement professional development plan and strategy

d) Lack of compliance of the Procuring Entities with the Public Procurement Act, Regulationsand Guidelines and irregularities in the use of existing standard procurement procedures

e) Absence of procurement planning among Procuring Entities and incoherence between PublicProcurement Planning and budgeting which often result into recurring emergencyprocurement.

f) Poorly organized domestic private sector and inadequate public procurement preferentialregulations and incentives to promote its contribution to the country’s socio-economicdevelopment.

g) Absence of coordinated mechanisms of ensuring value for money and poor quality assuranceframeworks as well as control mechanisms to ensure effective administration of procurementprocess.

h) Lack of public awareness about the benefit of prudent public procurement and its laws,regulations, guidelines, procedures and regulatory instruments.

i) Lack of public awareness on public procurement complaints review mechanisms.

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j) Poor enforcement of public procurement monitoring and evaluation mechanisms.

k) Existence of rampant corruption and weak integrity and poor enforcement mechanisms in thepublic procurement system.

l) Poor or non existence of contract management framework and skills as well as poorenforcement procedures, administrative review processes, monitoring and evaluation ofawarded contracts to ensure compliance and to rectify performance practices to attain the bestin the public interest.

m) Weak public procurement staff incentive structure and mechanisms. This tends to lower staffmorale and a high propensity for corrupt behavior which decreases staff morale.

n) Lack of confidence in the procurement system resulting from lack of trust by suppliers andcontractors on the way procurement and complaints are being handled by Procuring Entities.

o) Weakness on Applications for Retrospective Approvals and abuse of emergency procurementfunctions.

1.4 Significance and Rationale

The importance and rationale for public procurement policy can be understood through three aspectsof public procurement functions: the government’s obligation for effective public service delivery;the size of public procurement expenditure relative to the national budget or GDP; and the role thepublic procurement policy is expected to play in national socio-economic development.

1.4.1 The Government’s Obligation for Effective Public Service Delivery

The Government is a principal provider of essential public services, such as health, education,defense and infrastructure. The effective provision of these public services often requires thecoordinated delivery of materials which the state purchasing apparatus must accomplish. Thus, inorder to meet its obligations, the government becomes a major purchaser of works, supplies andservices from the open market. The business operation of the government in the marketplace or thepublic procurement function has therefore both economic and socio-political implications whichneed to be guided by a public policy. Laws and regulations are expected to be the policyimplementation instruments in realizing the objectives of national development policy.

1.4.2 The Size of Public Procurement Expenditure

The importance of public procurement can also be seen in terms of the size of expenditure relative tonational budget and GDP or the magnitude of government purchases. In Tanzania publicprocurement of goods, services and works is the second largest expenditure after personnelemoluments. In 2011 the Controller and Auditor General’s Report indicated that the total value ofcentral government procurement expenditure stood at 41 per cent for the financial year 2010/2011.According to the Tanzania’s PPRA Annual Report and Audited Accounts for the financial years2007 to 2011, while in the 2007/08 financial year contracts worth Tshs. 1,800 trillion were awarded,the value of procurement expenditure increased to Tshs. 2.963 trillion during the financial year2008/09, Tshs. 3.075 trillion in 2009/10 and 4.532 trillion in 2010/11. The figures represent aconsiderable proportion of the total government budgets for the financial years 2007/08, 2008/09 and

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2009/10 which were Tshs. 5.27 trillion, Tshs.7.27 trillion, Tshs. 9.51 trillion and 11.61 trillionrespectively. These figures indicate that public procurement is vital in the economy of the countryand therefore this colossal public expenditure needs to be guided by a set of public principles, values,best practices, laws, regulations and procedures that are driven from a National Public ProcurementPolicy.

1.4.3 Public Procurement Role in National Socio-economic Development

In general, a public procurement policy is important from a development perspective. Achieving theMillennium Development Goals, National Development Vision 2025 and the National Strategy forGrowth and Reduction of Poverty (NSGRP) goals and other development objectives, requires gettingthe most out of the limited resources available for public procurement. While, efficient publicprocurement practices contribute towards the sound management of public expenditures moregenerally, procurement planning enables the identification of major investment expenditures, whichin turn facilitates budgetary decision-making. Thus, it is difficult to imagine how a state can deliversubstantial improvements in the well being for its citizens without a public expenditure (purchasing)system that includes effective public procurement policy.

There is also a growing appreciation of the linkages between specific national objectives and publicprocurement practices. These include, inter alia, realizing that:

a) State contracting to procure works, goods and services is often a central focus of campaignsto tackle corruption and to ensure that appropriate distance is kept far from the environmentsthat induce corrupt behaviour in contracts making and management.

b) Procurement policy is part of an industrial policy or an instrument to attain social objectivessuch as support for small and medium enterprises, disadvantaged groups, and reduction ofregional inequality.

c) As procurement is a planned budgetary expenditure to attain national socio-economicobjectives, procurement decisions can be strategically geared to facilitate market accessibilityand development of domestic industry.

The national public procurement policy is expected to be an important driver of nationaldevelopment and public welfare.

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Section Two

2.0 Vision, Mission, Goal and Objectives

2.1 Policy VisionThe NPPP strives to create a well-functioning, competitive, accountable and transparent procurementsystem that engenders and secures the confidence of the Tanzanian people, and the national and theinternational community in the procurement market and functions.

2.2 Policy MissionThe NPPP strives to foster adherence to the procurement principles of transparency, accountability,fair competition, fair treatment, and value for money by improving capacity of the procurementsystem through training, staff development, and education for compliance, informationdissemination, instituting mechanisms for dispute resolution and providing procurementopportunities for local contractors in support of national economic enterprise participation anddevelopment.

2.3 The Goal of the Policy

In ensuring that the government achieves the best value for money, the policy goals include:

(a) Ensuring efficient, well planned and governed procurement, fairness in the treatment ofsuppliers according to the principles of equal treatment, transparency, quality and efficientdelivery; accountability; social responsibility and environmentally sensitive procurement.

(b) The policy shall ensure promotion of a national economy and public welfare during theprocesses of planning for procuring services, goods and works.

a) The policy shall work to uphold and enhance the core principles of good procurementpractice and building capacity for better informed and an economical procurement system ina competitive market.

2.4 Objectives of the Policy

a) The policy shall strive to ensure that the government procures works, goods and servicesat the:

i. Right and competitive market pricesii. Right source

iii. Right timeiv. Right quantityv. Right pre-determined quality

b) The policy shall ensure that the procurement processes are effected through proceduresthat are clear as to what, how, where and when works, goods and services are bought anddelivered.

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c) Ensure that the process of procurement shall not adversely affect or negatively impact onsustainable environment and the ecosystem composure.

d) Ensure that the procurement process shall have an in-built monitoring and evaluation ofwhat is bought, how it is bought, and why it is bought.

2.5 The Scope of the Policy

This policy applies to the procurement function in the central and local governments includingRegional Secretariats, government agencies and others who happen to be using government sourcedfunds. The regulations derived from this policy shall specify the categories of restricted and nonrestricted procurement of works, goods and services, and those relating to strategic and securitymatters.

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Section Three

3.0 Public Procurement Policy: Models and Principles

3.1 Approaches to the Setting of a National Public Procurement Policy

What is seen as procurement laws and regulations are more or less a result of the country’sprocurement reforms which have been informed by the process of globalization. In particularTanzania’s procurement reforms and the derived laws and regulations have been informed by andsubscribe to the United Nations Commission on International Trade Law (UNCITRAL) model on theprocurement of works, goods and services. The Model Law contains procedures and some principleswhich started to be applied in 1994. The Model Law tries to set up laws and procedures whichemphasize fairness, transparency integrity as espoused in the 2011 UNCITRAL model lawprinciples.

There is a second model called the “Principles Model” which emphasizes more of the principles ofprocurement in accordance with good governance practice. The National Public Procurements Policyis based on the Principles Model which has enshrined the universality of the UNCITRAL model law,but it is more adapted into Tanzania’s good governance reform programs and the anti-corruptionstrategies that find relevance to country’s current situation.

This model is relevant and useful in a decentralized procurement system because in all stages theprimary responsibility rests with the decision-makers in the purchasing entities. They are onlyrequired by the law to comply with the principles, policies and guidelines. The aptness, rationality,levels of compliance in procurement decision-making can be monitored systematically, and or withscheduled evaluations by agents of the apex procurement authority.

3.2 Rationale for the Principles Model

The underlying philosophy of the Principle Model is that once a body is spending public money therefollows an obligation on that body to account for that specific public expenditure. It provides anoverarching framework for all agencies involved in procurement using public money with immutableparameters in which the operating principles and guidelines are not negotiable, but they have to beupheld to ensure a proper management of scarce public resources along public procurementfunctions.

3.3 Core Principles of the Policy

The following are the core principles to be adhered to at all stages of public procurement process.

3.3.1 Value for Money

(a) Value for Money is a core principle underlying public sector procurement. Value for Money in aprocurement function is a good measure of an economy and efficiency with which publicfinancial resources are converted into procured quality goods, services and works. It is evaluatedon a whole-of-life basis of the good or service being procured and is influenced by a number offactors which procuring entities have to observe:

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i. Adoption of procurement methods which are economical.ii. Maturity of the market for the works or service sought, and the knowledge of the market.

iii. Performance history of each prospective supplier through a product search and maintenance ofdatabase of best performers.

iv. Relative risk of each proposal gets duly calculated in the entire process of procurement.v. Financial considerations, including all relevant direct and indirect benefits and costs.

vi. The anticipated price that could be obtained at the point of disposal of procurement items shouldbe estimated.

vii. Maintenance cost of procurement items should be taken into account and be justified in theprocurement process decisions.

viii. Evaluation of contract options that takes value and quality on balance.

3.3.2 Economy

Public procuring entities must recognize that they are involved in a major function of the nationaleconomy in which a large amount of the government money is spent through procuring goods, worksand services. This is why they are required to ensure that prudent economic decisions are made toopen up market opportunities to Tanzanian business entities (big, medium and small), to increasetheir participation in the domestic and competitive international markets.

3.3.3 Efficiency

All procuring entities shall ensure efficiency gains in the procurement function at all levels and in allprocurement stages. The management of the procurement function should be made simple and swift,providing positive results without much delay. Efficiency also implies practicality in terms ofcompatibility with the Government laws and administrative procedures. All efforts shall be made toreduce the lead time spells in the procurement function to avoid risks and unstable inflationaryevents characteristic of delayed procurement process actions and consequently a poor economicperformance.

3.3.4 Equity

All efforts shall be made to give equal opportunity for all qualified actual and potential competitorsor contractors including Small and Medium Enterprises (SMEs).Where prudently possible all actionsshall be made to ensure an increased use of local inputs and participation of local actors in theprocurement market.

3.3.5 Integrity and Ethics

(a) Various stages and decisions in the procurement processes are prone to corruption. Among thestages and decision events are the short listing of consultants, proposal evaluation, selection ofcontractors and suppliers contract awards, contract evaluation and payments to contractors. In theabove and all others related to the procurement function, procuring entities are obliged to ensurecorruption-free processes during the execution of such actions and authoritative decisions of theprocurement processes.

(b) Public service authorities and practitioners are compelled to adhere to professional code of ethics,conduct and values. The procurement function and process must be operated in consistency withthe standards and values that have been established by the law, regulations and publicexpectations of a public servant. This is in addition to existing code of procurement ethics whichinclude avoidance of practices related to conflict of interest.

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(c) The execution of the procurement functions shall adhere to the sets of ethics and rules governingpublic servants on Tanzania: the Code of Ethics and Conduct for the Public Service as directedtowards all public servants; and the Leadership Code of Ethics addressed specifically to publicservice managers. Efforts shall be made to develop specific code of ethics for professional publicprocurement leaders, officers and other members of the workforce.

In the pursuit of the above procurement requirements, the Government shall:

i. Strengthen institutions charged with anti-corruption enforcement in public procurementsector.

ii. Develop a comprehensive framework for promoting high quality public procurementgovernance in terms of transparency and accountability as well as effective managementthat can minimize corruption and deliver optimum risk management and value-for-moneyoutcomes.

iii. Institute transparent public procurement procedures to limit bribery and corruption in thepublic procurement sector.

iv. Develop and perfect proper codes of conduct within the field of public and privateprocurement.

v. Promote sufficient transparency and competition in procurement processes to limitavenues for corruption and violation of the laid down procurement rules, procedures andregulations.

vi. Establish professional body that would oversee and instil discipline among procurementofficers.

vii. Promote proper understanding of the best practices in public procurement to limitopportunities for procurement actors to engage in corrupt activities.

viii. Establish the Specific Code of ethics for Public procurement Officials.

ix. Institute public procurement anti-corruption strategy and effective public procurementaccountability mechanisms.

3.3.6 Fairness

At all stages in the execution of the procurement function, a high degree of impartiality, consistencywith values and standards of practice, as well as reliability, shall be ensured. With fairness in theprocurement function all the interested tenderers and contractors will be at a level playing ground onwhich to compete, and therefore expanding competitors’ business opportunities existing at theprocurement market place.

3.3.7 Transparency

The government of Tanzania subscribes to principles and ethos of good governance and specificallytransparency in the conduct of public affairs. The procurement function and all its processes shall bemade clear and open to public scrutiny.

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3.3.8 Accountability

Accountability is one of the ethos of good governance highly pursued by the Government ofTanzania. It is required that the public procurement practice shall always hold its practitionersresponsible for enforcing and obeying the law, rules and regulations. It makes the practitionerssubject to challenge and to sanction where appropriate, for neglecting or breaching those laws, rulesand regulations. Accountability is fundamental to individual and institutional integrity and probityand to deterrence to collusive procurement, conflict of interest and corruption. The procurementfunction at all stages and in all processes shall ensure adherence to professional, technical,administrative and political forms of accountability. In pursuing all forms of accountability,procuring entities are bound to:

a) Ensure that all procurement entities adopt good governance principles and practices as a wayof contributing to proper and efficient management of public resources.

b) Strengthen all forms and dimensions of public accountability mechanisms in PublicProcurement Service in the country.

c) Institute mechanisms for effective enforcement of the public procurement laws, principlesand ethics.

d) Strengthen the capacity of public procurement oversight institutions and organizations toensure and administer all forms of accountability.

3.3.9 Reliability

Procurement Officers shall at all the times strive to ensure reliability of the vendors, thatprocurement is contracted with providers who can deliver on quality and timely. A goodprocurement function that is adequately institutionalized will strive to establish and consistentlyapply rules, regulations and procedures that are easily accessible and unambiguous. The procuringentities should procure only those items they require and are useable in the public welfare.

3.3.10 Competition

With a liberalization of the markets, potential contractors should be allowed to compete in atransparent and fairly managed environment that allows each eligible contractor an opportunity toparticipate in public procurement contract offerings. Competition allows for access to fair pricing,quality and efficient service delivery.

3.3.11 Expertise and Probity

Procurement authorities at all levels are required to ensure that the staff involved in procurement,contract making and contract administration are equipped with the requisite skills; are conversantwith the relevant policies, laws and regulations within which specific procurement events take place.The government shall ensure existence of mechanisms required to safeguard against improper andunethical behaviour and practices that may undermine the principles, laws and regulations governinga procurement cycle, from ordering to receiving, and to the payment for goods, services and works.

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Section Four

4.0 Management of Public Procurement Functions

4.1 Coordination of Procurement Planning and Budgeting

Policy Issue

Procurement planning and associated activities are part of the annual government budget formulationprocess, and it contributes to multiyear planning. Often times procuring officers make request forunplanned approval to purchase works, goods and services. Unless there are compelling situations ofemergency, such requests can undermine financial discipline. This situation often occurs where therehas been a disjunction between planning and budgeting. There must therefore be a strong interactiverelationship between program planning and a procurement of inputs into the planned activities. Thisorientation shall help Procuring Entities to move away from numerous casual purchases that areunplanned.

Policy Objectives

a) To ensure a proper linkage and mutual coordination between procurement planning andbudget formulation processes in order to facilitate procurement process by integratingprocurement expectations in the public budgeting processes.

b) To help Procuring Entities to move away from numerous casual and unplanned purchases.

Policy Statements

To achieve the above objectives the Procuring Entities shall:

a) Ensure that procurement planning is carried out by all the Procurement Entities (PEs) as apart of their program, service planning and development process.

b) Ensure that there is an assured source of funding to complete a planned program beforesoliciting for suppliers or vendors.

c) Evade making ad hoc, unplanned and casual purchasing part of the procurement process,unless they occur as emergency procurement.

d) Develop a linkage between procurement planning and the budget formulation process, suchthat Procuring Entities can integrate procurement expectations in the public budgetingprocesses and approval.

e) Ensure that their corporate procurement plans specify as to how the purchasing entity’sprocurement objectives will be measured. The performance measurement shall be simple,specific and agreeable by stakeholders, and within the control of the purchasing entity.

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4.2 Handling of Emergency Public Procurement

Policy Issue

Often in Tanzania there are situations necessitating an emergency procurement. Expectations foremergencies call for an effective contracting support. Timely response may save lives, reduceproperty loss, enable greater continuity of services, and enhance logistical capability in the wake ofan emergency. Emergencies are not often predictable. However, Procurement Entities should have areasonable idea of how to respond to a given emergency incident or situation. Establishingorganizational priorities and planning effectively before an emergency arises will help to avoiddelays in meeting requirements, reduce complexities, and eliminate redundancy of effort when acontract action is required. To ensure timely and effective decision making, functional roles andresponsibilities for individuals supporting emergency operations must be clearly defined. Contractingprofessionals should work closely with others involved in the process to develop a common andcoordinated understanding to meet the government’s needs during an emergency.

Policy Objectives

a) To ensure timely and effective response to an emergency procurement action

b) To develop a common and coordinated understanding among public procurementprofessionals to meet the government’s needs during an emergency.

Policy Statements

a) An emergency purchase shall only apply to an unavoidable, unexpected and pressingsituation which requires swift and immediate procurement action, like events of essential topublic safety and life saving, health, public welfare etc.

b) Emergency purchasing shall not be allowed for meeting certain preferences, conveniences, orpreventing remaining budgeted funds from reverting to the National Treasury at the end ofthe fiscal year; or any other reasons aiming at circumventing regular procurement proceduresor methods. Purchases (if allowed) shall be limited to the quantity necessary to meet theemergency addressed.

c) It has to be determined that the emergency purchase to be undertaken is necessary andbeneficial to the procuring entity and to the public at large.

4.3 Mobilization of Adequate Financial Resources

Policy Issue

Financing public procurement management and operations has increasingly been inadequate.According to PPRA Annual Reports, delayed release of funds and inadequate funding in publicprocurement management and operations is often a major challenge in Tanzania. Publicprocurement authorities suffer from budgetary constraints and financial dependency andinsolvency. Given the importance of achieving value for money in public procurement, there is aneed, in the long run, to find a funding mechanism which will be fully dedicated to supportplanned procurement events, capacity building and monitoring.

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Policy Objective

To mobilize adequate financial resources for public procurement management and operations andfor supporting efficient procurement processes, capacity building and monitoring and evaluation.

Policy Statements

In order to achieve the above objective the Government shall:

a) Continue to mobilize financial resources for the purpose of supporting the management ofpublic procurement functions in the country.

b) Ensure proper use of all dedicated funds, loans and grants with a target of realizing valuefor money.

4.4 Professional and Human Resource Capacity Development

Policy Issue

Development of adequate human resources and procurement professional practice are essentialstrategic actions if the public procurement sector is to meet the demands of national developmentgoals and the needs for its growth and market competitiveness. As more people and otherstakeholders have become aware of the importance of the procurement sector, there has been anincrease in demand for more professional public procurement services. According to PPRAannual reports, the current manning level is not adequate to cope with the increase in demand,taking into account the large size of the country. In other words, the current size and capacity ofhuman resources in public procurement management need to be improved to meet the increasingdelivery pressure and demands.

Policy Objective

To train and develop a professional procurement cadre and an equipped capacity in the publicprocurement sector to cope up with a growing procurement market and its expected role in thenational economic development.

Policy Statements

To achieve this objective, the government shall:

a) Institute deliberate efforts to develop a public procurement professional cadre in thecountry through concerted staff training and development programs.

b) Ensure the transformation of Public Procurement professional work force enabling it tomove from its current routine tactical practice to strategic procurement practices, and topromote sustainable public procurement professional responsibility and advancement.

c) Ensure the development of a specialized procurement cadre within the civil service careersystem in the country.

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d) Establish an incentive schemes for public procurement professionals to uphold their workmorale and ethics.

e) Ensure that relevant training institutions are urged to develop public procurementdemand driven training curricula targeting specific procurement functions.

f) Ensure continuous training on public procurement as part of the national education policyto promote learning.

g) Develop and implement a sustainable public procurement training and staff developmentstrategy.

h) Establish and manage a sustainable financial scheme for public procurement careerdevelopment.

4.5 Compliance with Public Procurement Laws and Regulations

Policy Issue

Compliance of Procuring Entities (PEs) with Public Procurement Laws and Regulations isfundamental if public procurement goals and objectives are to be realized. Almost all PublicProcurement Regulatory Authority (PPRA) annual reports reveal incidences of lack ofcompliance (on the part of the PEs) with Public procurement Acts and its Regulations. While theAuditor and Controller General’s Report for financial year 2010/11 reported a procurementcompliance rate of about 60 per cent, the PPRA annual audit reports indicated that a combinedaverage level of compliance for the same financial year was 68 per cent. Although according tothe latter report the level of compliance has improved compared to 39 per cent of financial year2006/7, the PPRA has a daunting task of ensuring that more and more PEs comply with theexisting Procurement Legislation and regulations.

Policy Objective

To ensure that more and more PEs comply with the Procurement Act and the Regulations.

Policy Statements

In order to enhance procurement compliance, the government shall, among other things:

a) Strengthen the capacity and authority of the regulatory institutions and compliancemechanisms.

b) Ensure adequate funds to implement various capacity building and monitoringinterventions.

c) Institutionalize a systematic Monitoring and Evaluation framework targeting the trackingof trends in compliance, at least once quarterly.

d) A procurement Monitoring and Evaluation tracking function shall be used to give writtenreports on compliance with the panned procurement as reflecting what is approved in thenational budget and other levels of government procurement decisions.

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4.6 Development of Electronic Procurement

Policy Issue

Since 2003 Tanzania has adopted an Information and Communication Technology (ICT) policyframework to enable Tanzanians to participate meaningfully in the knowledge economy andminimize existing high costs of participation in various socio-economic opportunities includingpublic procurement market. Electronic procurement is a procurement system that utilizes thepossibilities created by information and communication technology to increase procurementprocessing efficiency. Public procurement is potentially and practically an information-intensivefunction of government. It has to satisfy requirements for goods, work systems and services in atimely manner. To do this efficiently, the government has to be supported by information andcommunication technology and a reliable database in the public procurement system. Within theframework of information and communication technology, an electronic procurement system canoffer a number of advantages over a normal paper work based system of procurement. The mainadvantages are easy and cost effective access to procurement information. There is currently no wideuse of electronic public procurement practice in Tanzania. Electronic procurement is an innovationto uphold information and communication technology in the country and increase publicprocurement efficiency and effectiveness.

Policy Objective

To develop and promote a wide use of electronic public procurement through a well developedinformation and communication technology system in the country.

Policy Statements

To achieve the above objective the government in collaboration with other partners shall:

a) Promote a public procurement system supported by electronic information technology with areliable database been established at each Procuring Entity at all levels as a subsystem of anational public procurement data base.

b) Establish an electronic procurement information and communication technology frameworkand strategy in the country.

c) Train and encourage procurement professionals to revert more to e-procurement options andgradually moving away from manual procurement processing.

d) Encourage Procurement professionals to make use of an e-procurement facility as much aspossible in the search of suppliers as well as record keeping and retrieval.

e) The current paper work volumes at the various government levels are gradually becomingelectronically stored in the national and sub-national data bases for easy retrieval andutilization where a need arises.

f) Embark on training programs to build the capacity of its procurement officers and operationalstaff to cope up with e-procurement demands.

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4.7 Management of Exemption from Competition

Policy Issue

In any open competition for procurement opportunities there is always a cardinal requirement forexception in few and justifiable cases. The extenuating and compelling situations to justify anexemption from competitive bidding are those in which competition would have lesser value thannon-competition. When, and where necessary, exemption to this requirement can be judiciouslyconsidered.

Policy Objectives

a) To provide an opportunity for exemption in few and justifiable public procurement caseswhere competition may not add value or provide the best option for some kinds of purchases.

b) To provide opportunity for public procurement under limited sources of supply and less costfor procurement of works, good and services.

Policy Statements

To achieve the above objectives the government shall:

a) Uphold public procurement competition appropriate to the value and complexity of thegoods, services and works acquired in procurement process.

b) Ensure that competitive processes are always used unless there are compelling and justifiablyexceptional circumstances.

c) Ensure any minimum standards required in public procurement competition exemption areconsistent with existing legal obligations and regulations.

d) Allow exemption decision where competition is normally not practicable or available forsome kinds of purchases for goods.

4.8 Restrictions on Considerations for Casual Purchases

Policy Issue

Tanzania has many experiences whereby accounting officers request for budget funds to be directedto be expended on hitherto unplanned expenditures. Such after-budget approval decisions can be anindicator of poor procurement planning and/or poor implementation.

Policy Objectives

a) To minimize incidences of casual purchases in the public procurement system.

b) To promote effective corporate procurement planning process.

c) Policy Statements

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a) The government shall ensure that procurement authorities avoid casual or “once off”purchases that have not been planned and approved in the relevant annual budget process.

b) Procurement authorities with recurring casual purchases in which there are recurringrequirements shall be required to analyze their short, medium and long term needs so as tohave them included in the corporate procurement planning process

4.9 Requirements for Vendor Insurance, Performance Bonds and Bid Bonds

Policy Issue

In Tanzania’s procurement market practice there have been experiences in which contracts have beenunilaterally breached. There have been numerous complaints concerning poor quality of procuredconstruction works, imported supplies of drugs with shorter shelf life than expected and poor levelsof professional and technical accountability. In order to guard against such malpractices, bondingshall be a standard requirement in the tendering process.

Policy Objective

To guard against malpractices in public contracts and to assure commitment to delivery point at anexpected quality and quantity.

Policy Statements

a) Whenever work is to be performed on public property or facilities, the government shallensure that contractors have Workers’ Compensation, Employer’s Liability, CommercialGeneral Liability and Professional Liability/Errors and Omissions insurance coverage.

b) The stipulated insurance cover must be obtained prior to commencing work, and bemaintained during the entire term of the contract.

4.10 Contract Administration, Vendor Performance Monitoring andManagement

Policy Issue

There have been situations where projects have been initiated without a planned follow-up or closemonitoring of the implementation process. This leads to entering into a project agreements withoutthe procuring entity’s management commitment to ensure a return on investment.

Policy Objective

To put in place an effective contract administration and management system.

Policy Statements

a) The government shall ensure existence of effective contract administration and managementsystem with adherence to fundamental principles of public purchasing, quality assurance andgovernance mechanisms in the procurement of works, goods and services.

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b) The government shall ensure existence of a technically competent contract writing andeffective contract administration and management system throughout contractimplementation period.

c) Contracts shall be assigned to responsible officers to monitor their implementation withrespect to time, quality and return on investment.

d) The government shall ensure existence of effective contract monitoring and evaluationsystem throughout contract implementation period.

e) Where contract management is contracted out to a private sector person or agency, theProcuring Entity is bound to appoint or designate a “contract administration monitor” basedin the Procuring Entity’s offices. That is, the procuring entity shall assign a qualified deskofficer or agent for a procured project under implementation.

4.11 Blacklisting Fraudulent Tenderers

Policy Issue

Often there have been appointment of tenderers who have failed to deliver on quality and time in thepast; or contracts been given to contractors known to have been involved in fraud. Such events mayundermine integrity in business and procurement transactions and exacerbate corruption and poordelivery. It also puts the PEs at great risk when contracting with such tenderers, and this should beavoided in advance of calling for proposals.

Policy Objective

To promote integrity and prevent fraud, unnecessary risks and corruption in the public procurementsystem.

Policy Statements

a) Procurement entities shall be required to desist from, and avoid the use of, vendors of poorrecords of performance integrity in the procurement market as a matter of risk avoiding andprevention.

b) The Public Procurement Authorities shall have powers to blacklist tenderers who will havepreviously and evidently been involved in fraudulent actions during procurement processes.

c) The blacklisting shall bar fraudulent firms and/or consultants from participating in publicprocurement bids or tendering events for periods to be determined by public procurementlaws and regulations.

d) Tenderers already blacklisted in other projects or countries shall be evaluated to establishtheir reliability and business integrity before allowed to tender in the country.

e) The Public Procurement Authorities shall develop a list of reasons for blacklist and makethem publically known.

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4.12 Handling of Abnormally Priced Tenders

Policy Issue

Sometimes low priced tenders or highly priced tenders are thrown out of competition without aproper and careful analysis. Procurement Entities can benefit from examining the underlying reasonsfor the abnormally priced tenders. There can be valid and useful reasons for what appears to beabnormal pricing and this can be useful information.

Policy Objective

To minimize costs and maximize the benefits from lower priced tenders that might have some addedvalue to delivery.

Policy Statements

a) Any tender that is evaluated and found to be abnormally low or high shall not be just rejectedwithout establishing reasons, or a lack of reasons for out-of-range pricing.

b) There shall be an investigation and a consideration of the elements that may have given riseto a particularly low or high bid price. This is because the causal elements might have beentechnical innovations to reduce inputs such as finances, time and labor.

c) Abnormally low or high tenders shall be considered alongside with other provided that theyhave qualified on their technical proposals. They shall be re-evaluated to establish reasons forsuch abnormal offers, and such reasons should be documented for review.

d) The government shall provide verification mechanisms and opportunity for bidders ofabnormally low or high tenders to make clarifications about their low or high bid prices incases where decision-makers cannot discern the reasons for the abnormally low or high pricetendering.

4.13 A Requirement for Notification to Tenderers and Information Disclosure

Policy Issue

Good governance requires transparency, fairness and accountability. It is therefore a right of thebidders and other stakeholders to know decisions made on what have tendered.

Policy Objectives

a) To uphold good governance principles of transparency in public procurement processes.

b) To promote confidence in the public procurement system.

c) Policy statements

a) Unsuccessful candidates and tenderers for any public contract shall be informed of the resultsof their candidature or tendering process without delay.

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b) The procurement authorities shall not release tendering information if it, inter alia, impedeslaw enforcement, is contrary to the public interest, would prejudice legitimate commercialinterests of particular undertakings, or might prejudice fair competition.

c) The government shall ensure that relevant laws concerning the freedom of information arecomplied with, and in which case the procuring authority must judiciously analyze andpromptly respond appropriately to any enquiry on the tendering process and results.

4.14 Complaints Management Mechanisms in the Public Procurement System

Policy Issue

Trust by suppliers and contractors on the way procurement and complaints are being handled by PEsis vital as it facilitates cooperation between the former and public procurement authorities in variousinitiatives of improving the procurement system. Moreover, there are situations where tenderers havevalid reasons to complain against the tendering process and decisions. This is quite in order withrights to information, fair market competition, suspicions on corrupt events and other maltreatments.Thus, a functioning public procurement system requires effective complaints managementmechanisms.

Policy Objective

To put in place effective complaints management mechanism that is easily accessible.

Policy Statements

a) The government shall ensure an existence of effective complaints management mechanismsin public procurement processes that is transparently managed.

b) In case of pre-contract award complaints, the government shall establish effective inquiry andarbitration mechanisms.

c) The Government shall ensure mutual communication and information sharing mechanismsbetween public procurement authorities, procuring entities and suppliers and contractors.

d) Develop effective complaints mitigation mechanisms and strategies.

4.15 Disposal of Public Assets

Policy Issue

An uncritical disposal of public assets can result into corruption and a big loss. Disposal of publicassets is an important activity in public procurement system in which some key questions have to beasked and answered. A disposal of hitherto publicly owned property is also politically sensitivebecause it addresses the distributive justice in a governance system. There is in place an institutionalmechanism for a disposal of public asset and is assumed that its functions are consonant to theprovision of this section.

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Policy Objective

Policy Statements

To assure appropriate disposal of public assets:

a) The Government shall create and manage an asset disposal framework in which decisional andcritical questions are answered. Such questions shall include:

i. What are public assets? A clear definition and description of the asset(s) to bedisposed of

ii. What kind of public assets can be disposed, and why is it necessary to dispose?

iii. In what circumstances can public assets be disposed, and are there some interestedbeneficiaries in relevant decisional organs that are to decide whether to dispose of?

iv. What principles should guide public asset disposal?

v. What agreeable and approvable criteria are to be used to identify what needs to bedisposed off?

b) The government shall ensure that procedures and practices of disposal of public assets shall beused in public entities that are financed in whole or in part by public funds in accordance with thepublic financial management regulations.

c) Procedures for disposal of public assets are conducted in a fair, transparent and justifiablemanner after a careful and unbiased validated evaluation.

d) The government shall ensure that public procurement entities including beneficiaries ofgovernment funded projects, observe the highest standard of integrity and ethics during thedisposal and execution of such contracts.

e) In the disposal of public property, public entities shall be required to ensure that the bestvalue for money is obtained for whatever is being disposed of by whatever method adopted toso do.

f) Failure to observe the operating principles of Value for Money, Transparency andAccountability during a disposal of public assets will result in remedies available to thepublic under the relevant laws, including the economic sabotage law.

g) Disposal operating principles and objectives will apply not only to the acquisition of propertyand services involving public money, but also to disposal of public assets including lands,buildings, intellectual property rights, and other assets, real estate and financial, fixed andmoveable, owned or managed by the State or State agencies, whether by sale, lease,concession or license are involved as option.

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4.16 Public Procurement and Conflict of Interest

Policy Issue

Conflict of interest is one of the challenges facing public procurement managers and the procurementsystem as a whole in Tanzania. Procurement authorities should be aware of actual and potentialconflicts of interest in the tendering process, and be ready to take appropriate action to avoid suchsituations. A conflict of interest is defined, and it arises where and when such members, whetherisolated, recurring or continuous, is to the direct financial advantage of this individual, a directrelative or their spouse, parent or child. A direct relative shall mean a spouse, parent grandparent,grandchild, brother, sister, son, or daughter.

Policy Objectives

a) To prevent an occurrence of conflict of interest in the management of public procurementfunctions.

b) To prevent corruption and to promote integrity of the procurement system.

Policy Statements

a) Public procuring authorities shall require operations and processes to take place in a state offull disclosure when dealing in procurement events. In that regard the procurementauthorities’ employees and advisory staff must strictly avoid any conflict of interest orappearance of conflict of interest.

b) Public procurement authorities’ employees and advisors, as well as members to variouscommittees of the organization, must at all time provide full disclosure of their actions orrelationships with prospective suppliers, contractors and consultants. In an event that thereappears to be the slightest doubt as to the propriety of a procurement action, then theresponsible and accountable officer be contacted immediately.

c) The government shall institute appropriate mechanisms for assessing and minimizingpotential conflicts of interest in the tendering process.

d) The government shall ensure that the tendering processes are as procedurally transparent, inwhich efforts are made to ensure project specifications and criteria are open and generic, aspossible in order to avoid favoring any one party.

e) Procurement authorities’ employees shall not engage in any conduct resulting in a real,potential or apparent conflict of interest. A conflict of interest may be seen to arise when andwhere any action by the procuring entity’s employee or agent, whether isolated, recurring, orcontinuous, is to the direct financial advantage of this employee or agent, of their spouse,parent or child.

f) Procurement authority employees shall never solicit or accept gratituities, favours or anythingof monetary value from contractors, sub-recipients, parties of project contractors or entities ofthe contracting parties.

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g) Committee members, other members, Board of Director Members etc. of the public procuringentities, shall not engage in conduct resulting in a real, potential or apparent conflict ofinterest.

h) An employee of a procuring entity must not participate in a contracting decision if thecontract involves a direct relative or a person married to a direct relative. An employee whois exposed to an actual, perceived or potential conflict of interest in relation to an actual orpotential or proposed solicitation must disclose the matter to his or her supervisor or contractmanager.

4.17 Public Procurement Awareness Creation

Policy Issue

One of the challenges facing the public procurement sector in the country is a lack of publicawareness about the benefit of public procurement and its laws, regulations, guidelines, proceduresand regulatory instruments. There is also a lack of awareness on public procurement markets,complaints review mechanisms among stakeholders. In this regard, awareness creation andsensitization on public procurement functions, laws, regulations and procedures should be extendedto all segments of society and stakeholders including potential bidders.

Policy Objective

To create awareness to Procuring Entities and other stakeholders on the role and the importance ofthe public procurement function, markets, laws, regulations and procedures.

Policy Statements

a) The Government, in collaboration with other stakeholders, shall establish effectivecommunication and awareness creation mechanisms.

b) Public Procurement Authorities shall ensure that information about the benefit of publicprocurement and its laws, regulations, guidelines, procedures and regulatory instruments arewell known to the public.

4.18 Working with Procurement Framework Agreements

Policy Issue

Public procuring entities have been facing problems of increasing clerical and routine works inprocurement process. Other associated problems include: increased in price differences amongprocuring entities, long lead time, high inventory levels, recurring stock out situation and price riseduring the period of contract coverage. These problems have resulted into cost increase in tenderingprocesses. The call for the use of Framework Agreements is conceived as a solution to thoseproblems. Framework agreements are contracts under which procurement entities enter intoarrangements with suppliers or service providers to supply goods or services under agree conditionsfor a specified period of time, normally two to four years. The conditions or requirements underframework agreements concern quality, quantity, price, precise price specifications and conditionsfor review of the contract requirements.

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Policy Objectives

a) To ensure continuous and effective supply of regular goods and services under agreed publicprocurement conditions.

b) To reduce procurement function workloads and ensure economical and better use of publicmoney.

Policy Statements

To achieve the above objectives, the Government shall:

a) Ensure the use of Framework Agreements for all items and services specified as common useitems and services as a way of benefiting economically and better use of public money.

b) Strive to reduce clerical and routine works, minimize price differences among procuringentities, shorten lead time and keep inventory levels of procuring entities low without facingstock out situation.

c) Promote the ability of procuring entities to implement their procurement plans as per flow ofpublic procurement funds in line with Public Procurement Acts and Regulations.

d) Use Framework Agreements to protect procuring entities against price rise during the periodof contract coverage and cost reduction in tendering process.

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Section Five

Areas of Strategic National Procurement Concerns

5.1 Reliable and Effective Construction Procurement

Policy Issue

The construction industry is a fundamental economic sector which permeates most of the othersectors as it transforms various resources into constructed physical economic and socialinfrastructure necessary for socio-economic development. It embraces the process by which thephysical infrastructure are planned, designed, procured, constructed or produced, altered, repaired,maintained, and demolished. Thus, the realization of sustainable socio-economic development partlydepends on the existence of a reliable and effective local construction industry that is capable ofdelivering quality services and value for money in the development and maintenance of the physicalinfrastructure.

Policy Objective

To establish and ensure reliable and effective construction procurement system in the country.

Policy Statements

To realise the above objective the Government shall:

a) Ensure that public procurement system addresses itself to specific requirements ofprocurement in construction industry.

b) Through the Ministry responsible for the Construction Sector provide specific guidelines foreffective procurement in construction industry.

5.2 Public Procurement Policy as a Development Tool

Policy Issue

The Public Procurement Policy is inherently a national development tool for achieving social andeconomic objectives. The procurement market is significantly huge to an extent that it can be astimulus to a nation’s entrepreneurial development, and hence contributing to the nation’s economicgrowth.

Policy Objective

To ensure that Public Procurement Policy becomes a national development tool for achieving socio-economic objectives

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Policy Statements

In order to achieve the above objective the Government shall:

a) Create local opportunities for employment in the areas of project location or service delivery.

b) Create increasing opportunities for the participation of local producers in the procurementmarket as a way of promoting local industry.

c) Craft contracts that give a positive bias in favour of local labour, expertise, raw materials andother inputs into procured contracts.

d) Integrate the actions of public entities’ procurement with the national budgetary process withemphasis on planned procurement and effective public budget performance.

e) Promote the welfare of local populations to support Mkukuta objectives.

5.3 Promoting Sustainable Public Procurement

Policy Issue

Sustainable Procurement is a process whereby organizations meet their needs for goods, services andworks in a way that achieves value for money on the whole life basis, whilst minimizing damage tothe environment and ensuring healthy society. Development of green procurement policies since1990s has been seen as one part of a raft of initiatives to promote the general goal of sustainabledevelopment. The aim is to ensure that a public procurement policy is sensitive to environmentalresponsibility as well as consistent with the national and international principles of environmentalprotection and conservation. In Tanzania, most legislations and institutions which are responsible forpromoting sustainable environmental conservation and protection have not been effective due to theiroversight on environmental impacts of public procurement. Thus, the role of government purchasesas a stimulus for sustainable environment and instrument for achieving environmental goals cannotbe overemphasised.

Policy Objective

To establish a public procurement system that is consistent with the principles of safe and sustainableenvironment for a healthy Tanzanian society.

Policy Statements

In view of the above objective the Government shall at all times:

a) Ensure that environmental impacts of public procurement are addressed by all legislationsand institutions which are responsible for promoting sustainable environmental conservationand protection.

b) Ensure the establishment of public procurement system which is sensitive to environmentalresponsibility as well as consistent with the national and international principles ofenvironmental protection and conservation and appropriately response to effects of climatechange.

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c) Ensure a minimization of environmental impacts of the contracts, including the production ofwaste, use of resources, emissions to air, releases to water, contamination of land anddestruction of habitats, wildlife and biodiversity.

d) In the process of tender evaluation, appraise the projects’ potential for environmental andsocial improvements, attainment of local and national economic opportunities, and availingeconomic opportunities to local communities.

e) Ensure that environmental sustainability is an explicit and an implicit consideration during allthe stages of the procurement process, and underline the concern that procurement activitiesare expected to support wider economic, social and environmental objectives in a manner thatcan offer real long-term benefits to present and future generations.

f) Ensure the harmonization of public procurement policy with other environmentally sensitivepolicies to help to achieve national environmental protection and conservation goals` in acoordinated manner.

5.4 Developing Socially Responsible Procurement

Policy Issue

Given the importance of the role of procurement function plus the monetary value involved, thegovernment can use public procurement to achieve both economic and social objectives. Sociallysensitive procurement is procurement that is consistent with the principles of social justice. There isalways a tendency for Procuring Entities to be more concerned with money part, and lesser with thesocial value such as socio-economic empowerment of the marginalized groups, and implications ofprocurement process on social wellbeing of the people. Thus, integrating social criteria in publicprocurement practices is imperative in developing socially responsible procurement. The Tanzania’sexperience indicates that little effort has been put up with regard to government developmentinitiatives concerning socially responsible public procurement. Complaints are also increasing onhow new investments are spelling negative impacts on social wellbeing of the local populations.

Policy Objectives

a) To produce desired social policy outcomes through public procurement functions.

b) To promote procurement projects that enhance local livelihoods.

Policy Statements

a) The government shall use public procurement to achieve social objectives like increasedemployment and better standards of living for its citizens as well as enhancing socialinclusion at the level of project choice, location and benefits accruing thereto.

b) The government shall provide a useful framework for ensuring that all necessary aspects ofsocially responsible public procurement policy options are translated into practice for thebenefit of the population, including sensitivity to gender balance and poverty reduction.

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c) The government shall continuously reform and establish a public procurement system that issocially sensitive and consistent with the principles of equality, social justice andenhancement of equity across population and gender categories.

d) The government shall ensure the integration of all necessary social criteria in publicprocurement procedures and practices, avoiding socio-economic exclusion, gender baseddiscrimination and population displacement.

5.5 Participation of SMEs in Public Procurement Market

Policy Issue

Many problems exist in developing and transition countries that keep local suppliers from takingadvantage of the local country level marketplace opportunities. Most public procurement systemsaddress in one way or another issue of how to provide support for the domestic supplier base. Whilein Tanzania the procurement system has in one way or the other tried to address the problem ofincreased participation by SMEs by providing support for the domestic supplier base, support for thissector has remained weak and the actual participation of SMEs in public procurement continue to belimited. Government procurement is mainly undertaken mostly by larger firms, both local andinternational. The SMEs are facing major challenges due to the lack of access to information, credit,skills and a supportive institutional arrangement. Given the fact that SMEs can be enabled to growinto bigger enterprises and that they constitute a substantial section of the national economicmanagement, there is a need for the country to institute affirmative action to support this sector.

Policy Objectives

a) To enhance effective participation of SMEs in public procurement activities.

b) To enhance SMEs contribution to socio-economic development in the country.

Policy Statements

In order to achieve the above objectives:

a) The government shall ensure the creation of cost-effective public procurement system toencourage, involve and promote locally based SMEs in as wide a spectrum of public servicesas possible where assessed, informed and found to have the requisite capability.

a) The government shall provide support, such as effective access to information, credit andskills, to local service providers and contractors, to build enough capacity to participate intenders advertised internationally and locally.

b) The government shall ensure existence of friendly and accessible procedures andinstitutional arrangement to encourage participation of the local private sector in publicprocurement.

c) The government shall adopt public procurement methodologies and strategies which willpromote the prosperity or survival of many businesses or industries in the country withoutcompromising quality and value for money.

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a) When procuring goods, services and works, the procuring authorities shall be required to makedeliberate efforts for a positive bias granting preference for a utilization of local qualifiedexpertise and other inputs.

b) Efforts shall be made to ensure that certain goods and services available on the local(Tanzanian) markets are used as inputs in a tendered project. Such resources include qualifiedand competent human resources and raw materials.

c) International bidders shall deliberately be required to team up with Tanzanian firms orconsultants in as much as it is technically possible. They shall further be required to considersubcontracting (if provided for) to firms incorporated and registered in the country.

d) The government shall develop a public procurement strategy for promoting SMEsparticipation in public procurement market.

5.6 Promoting Local Business Accessibility to Procurement Markets

Policy Issue

Opening up procurement markets to foreign firms in especially developing countries like Tanzaniahas exposed the domestic firms to large foreign firms with a better experience and competitiveadvantage over the local firms. This event renders many local competitors out of business, leading tojob losses. This may exacerbate poverty in the country. There is a clear concern in many countriesthat governments have an obligation to encourage and facilitate an increasing local and country levelparticipation in the procurement market.

Policy Objective

To promote and ensure local business access to procurement markets and enhance their contributionto the national socio-economic development.

Policy Statements

a) The government shall establish public procurement mechanisms to promote domesticcompanies’ capacity to engage in the competitive national and internationalprocurement markets through training and selected preferential considerations.

b) The government shall establish various procurement procedures which promoteNational Preferences by setting margins of preference in domestic contract bidevaluation processes.

c) The government shall establish effective inter-sectoral procurement mechanisms topromote locally based industries.

5.7 Public-Private Partnership and Private Sector Participation in PublicProcurement

Policy Issue

Public-Private-Partnerships are contractual agreements between a public entity and a private sectorentity where the private sector take on or agree to share the risk of financing and executing a project.

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A well functioning and competitive private sector is a key partner an alternative source of projectcapitalization and risk management across all levels of public procurement system. Tanzania’sexperience indicates that procurement practices in the private sector are generally weak. Acontinuous effort to build procurement capacity within private sector would improve itscompetitiveness and effective delivery of public services. Moreover, some actors in private sectorhave very strong procurement practices both for national and international procurement andpurchasing experiences which the public sector can benefit from.

Policy Objectives

a) To make use of the private sector as one of the sources of project financing and riskmanagement.

b) To encourage and build domestic procurement capacity within the private sector in order toimprove its competitiveness and effective contribution to public service delivery.

c) To ensure that through public procurement, both the private and the public sector contributeto the economic development of Tanzanians.

Policy Statements

a) The government shall institute mechanisms to improve and strengthen procurement practiceswith the private sector including entering into public-private partnerships in large scale publicworks procurement.

b) The government shall ensure existence of comprehensive policies, legal and institutionalframeworks that provide clear guidelines and procedures for development andimplementation of Public-Private Procurement Partnership.

c) The public-private partnerships shall be use where it is considered that private sectorinvolvement in such projects may provide a more timely or cost-effective results, lead toproductivity or efficiency improvements in the public entities’ functional processes and, ordelivery of services.

d) The government shall ensure a continuous effort to build procurement capacity to improvethe competitiveness of the local private sector.

e) The government shall establish mechanisms to ensure utilization of domestic strong privateprocurement practices, competencies and experience in the development of publicprocurement profession in the country, especially during public-private partnershipprocurement events.

f) The government shall, as needs arise, utilize private procurement incentive schemes forpublic procurement sector as a measure to improve procurement efficiency.

g) Promote public awareness about public-private partnerships and their benefits to socio-economic development.

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5.8 Public Procurement and Affirmative Action

Policy Issue

Affirmative action is used to describe approaches to dealing with positive discrimination that goesbeyond simply enforcing a prohibition of discrimination in economic engagement, and itencompasses a wide variety of proactive measures seeking to achieve greater socio-economicequality and access to development opportunities for disadvantaged groups. The importance of theissue of equality in socio-economic engagement in 1990s and 2000s has given rise to a developmentof considerable importance to current development initiatives in the country in a form of affirmativeaction through the National Economic Empowerment Policy and other related policy initiatives.

Policy Objective

a) To promote the role of public procurement sector and using it as a springboard to acceleratesocio-economic empowerment of the majority Tanzanian citizens.

b) To promote equality and effective participation of various disadvantaged groups in socio-economic engagements through public procurement market.

Policy Statements

a) Establish regulatory mechanisms to promote affirmative action in employment in governmentcontracts.

b) Build appropriate mechanisms to ensure that some proportions of government contracts arealso secured by marginalized groups-owned businesses.

c) Encourage the participation of the marginalized groups in public procurement processes as ameans for their socio-economic empowerment.

d) Ensure that in all affirmative public procurement initiatives, the value for money is notcompromised.

e) Incorporate economic empowerment related public procurement initiatives into the NationalEconomic Empowerment Policy and Strategies.

5.9 Good Governance in Public Procurement

Policy Issue

Good governance is a fundamental building block of a just and economically efficient publicprocurement system. Objective and transparent procedures can help enhance the efficiency of localsuppliers as they compete for public contracts, thereby improving trade prospects by making thesesuppliers more competitive. Transparent procurement procedures limit bribery and corruption, whichare main problems facing many public procurement sector.

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Policy Objectives

a) To promote good governance in public procurement management system in accordance withthe existing laws and good governance programs.

b) Promote the integrity of public procurement through proper use of accountability andtransparency public procurement procedures.

Policy Statements

In order to achieve the above objectives the Government in collaboration with other stakeholdersshall:

a) Establish and adopt good governance institutions, principles and practices in the conduct ofpublic procurement functions.

b) Strengthen public procurement oversight and regulatory institutions.

c) Develop participatory public procurement monitoring and evaluation mechanism.

d) Develop good governance strategy and program for public procurement in the country.

5.10. Prevention of Corruption in the Public Procurement Transactions

Policy Issue

Public procurement sector in Tanzania is perceived as one of the most corrupt sectors of theeconomy. The daily mass media have found topical headlines pointing fingers against someprocurement entities pointing out questionable procurement in areas such as energy, roadconstruction and buildings. The 2009 report on the state of corruption survey concluded that about54% of the respondents were of the opinion that in Tanzania corruption is a very major problem.Those who rated corruption as a major or very major problem were about 81% of the country widesurvey. When compared with a similar 2005 survey, about 44% were of the opinion that the state ofcorruption is even worse today. Despite of the existence of codes of conduct within the field ofpublic procurement, public procurement officials do not always operate within those parameters.Corruption inhibits the government capacity to effectively ensures proper control and utilization ofpublic resources and achieve greater value in national budgets. Some corrupt activities are believedto be caused by a lack of understanding of the best practices in public procurement, lack of aprofessional body that would oversee and instil discipline among procurement officers and weakoversight institutions. The need for prevention of corruption in public procurement sector cannottherefore be overemphasized.

Policy Objectives

a) To promote the prevention of corruption in Public procurement sector alongside other effortsbeen undertaken by other national anti-corruption institutions.

b) To uphold ethics and integrity in the management of public procurement functions inaccordance with public service codes of professional ethics.

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Policy Statements

To achieve the above mentioned objective the government shall:

a) Ensure an improved rate of payment for contracts under proper public procurementregulations and procedures.

b) Develop public procurement anti-corruption strategy to minimize opportunities for corruptionin the management of public procurement functions and public contract decision makingprocesses.

c) Develop specific Codes of Conduct to public procurement officials.

d) Develop effective public procurement accountability mechanisms.

e) Strengthen existing public procurement oversight and regulatory institutions.

f) Develop mechanisms for independent control and audit of public procurement operations.

5.11. Public Procurement Support to Poverty Alleviation

Policy Issue

Public procurement is one of the sectors that can contribute to poverty alleviation through linkagesbetween specific pro-poor development initiatives and public procurement policy. Publicprocurement policy may be part of an industrial policy or an instrument to attain social objectivessuch as support for small and medium sized enterprises, disadvantaged groups-owned businesses, orcertain geographic regions through set-asides and preferential policy initiatives. Opening upprocurement markets and adopting procurement affirmative action to various economic activitiesowned by vulnerable groups may facilitate genuine and positive economic empowerment to theTanzanian population. Access to public finance through procurement market promotes SMEsdevelopment, equitable distribution of income, and participation in the national economy. InTanzania the government has adopted some procurement procedures that allow for what is called‘National Preferences’.

Policy Objective

To use the national and local level public procurement functions to support poverty alleviation

Policy Statements

To achieve the above objective, the Government in collaboration with other stakeholders shall:

a) Promote employment creation in public procurement related activities through access andparticipation in public procurement market.

b) Promote linkages between specific pro-poor development initiatives and public procurementpolicy.

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c) Adopt a variety of proactive and affirmative measures seeking to achieve greater participationof majority Tanzanians in public procurement activities.

d) Create public awareness on the importance of and available opportunities in the publicprocurement sector necessary for poverty eradication.

e) Incorporate pro-poor public procurement measures in the national poverty eradicationstrategy.

f) Continue to promote national preferences to domestic contracts as a measure for economicempowerment.

g) Effectively use public procurement to achieve justice and wellbeing of the Tanzanian society.

5.12 Development of a Legislative and Regulatory Framework

Policy Issue

The Legislative and Regulatory Framework sets the basic conditions for the manner in whichprocurement may be undertaken procedurally, including the results that can be expected andpotential efficiency gains that can be achieved. Crucial in this respect is a sound enforcementmechanism that ensures that Procuring Entities comply with the laws and regulations. One of thereasons why public procurement in Tanzania has been in disorder is because of the legal frameworkthat has been rather unclear and ineffective in ensuring efficient and economical public procurement.These tendencies are exacerbated by lack of compliance of Procuring Entities with PublicProcurement Acts, Regulations and Guidelines and irregularities in the use of existing standardprocurement procedures. It is little wonder therefore that, the procurement reforms in the countryhave focused more on the legislative framework as featured by a recurring tendency of repealing andamending Public Procurement Acts.

Policy Objectives

a) To establish stable and effective public procurement legislative and regulatory framework.

b) To ensure compliance of Procuring Entities with Public Procurement Acts, Regulations andGuidelines.

c) To promote regular application by Procuring Entities of existing standard procurementprocedures.

Policy Statements

To realize the above objectives the Government, in collaboration with other stakeholders, shall:

a) Establish comprehensive, legal and regulatory frameworks that provide clear guidelines andprocedures for development and management of public procurement functions in the country.

b) Improve the effectiveness of regulatory institutions and other procurement law enforcementorgans to ensure compliance to best public procurement procedures and practices.

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5.13 Institutional Framework for the Management of Public ProcurementPolicy

Policy Issue

Reforming and maintaining a country’s public procurement system is an ongoing and complicatedprocess that benefits strongly from the existence of focal institutional points in governmentadministration with sufficient capacity and qualifications to manage the procurement system, and thepublic funds utilized by it, and monitor procurement implementation. Moreover, handling publicprocurement functions requires multi-sectoral approach as substantial amount of effort is neededbeyond the ability of one organization.

Policy Objective

To establish a coherent and effective institutional framework for the management of PublicProcurement Policy functions in the country.

Policy Statements

The institutional arrangements for the Public Procurement Policy shall take into consideration thefollowing key issues:

a) Establishment of an institutional framework that will embrace all sectors dealing with publicprocurement functions. The framework will facilitate the designing, planning, monitoring andevaluation of various procurement functions.

b) The institutional framework shall define the functions and responsibilities assigned to playersat all levels of public procurement system.

c) Establishment of an enabling institutional environment that takes into considerationgovernance principles and practices.

d) Creation of various institutions, boards, and agencies to deal with specific procurementfunctions, roles and responsibilities in order to facilitate the management and implementationof public procurement policy objectives.

e) The institutions for the management of public procurement functions shall include:

i. The Ministry as an apex body with the overall responsibility for the public sectorprocurement system including direct responsibilities for developing and informingpublic procurement policy, evaluation, and monitoring the implementation of thosepolicies particularly with regard to public expenditure on procurement function. Itshall establish various departments and divisions to deal with specific publicprocurement management functions in the national procurement governance system.

ii. The Regulatory Authority as an oversight body established by Act of Parliament andcharged with the responsibility of regulating and overseeing the implementation ofPublic Procurement Policy and Act by Procuring Entities (PEs). The authority shallbe responsible for monitoring procurement activities in order to ensure that thefunds disbursed by the government for procurement of goods, non-consultancy

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service, disposal of public assets by tender and consultancy services are utilizedin accordance with procedures laid down in the Act and its regulations. It shallalso ensure that there is application of fair, competitive, transparent, non-discriminatory and value for money procurement standards and practices in publicprocurement system.

iii. The Appeal Authority established by an Act of Parliament and charged with theresponsibility of providing for an independent mechanism to deal with the handling ofcomplaints and appeals arising in the public procurement process. It shall also provideclarification on disputes among parties as well as advice to the Public ProcurementRegulatory Authority on areas requiring improvement within the public procurementprocess.

iv. Procuring Entities responsible for conducting the procurement processes in keepingwith the procedures outlined in the Public Procurement Policy and Act.

v. Audit organs responsible for the provision of independent, objective assurance andadvisory services in area of risk management, control and governance processes.

vi. Technical Procurement Management organs established by every procuring entityresponsible for provision of expertise and services in procurement, storage and supplyof goods and services for the Procuring entities.

vii. Asset Management Organs charged with the responsibility of providing expertise andservices towards enhancing transparency and accountability in management ofGovernment assets.

viii. Procurement Services Agency establish by an Act of Parliament and charged with theresponsibility of procurement, storage and distribution of stock items for re-sale togovernment and non-government institutions, provision of clearing and forwardingservices, and warehousing facilities, arranging procurement of common use items andservices by government authorities.

ix. Any other organ that the government shall deem necessary for effective execution ofthe Public procurement Policy.

5.14 Monitoring and Evaluation

Policy Issue

Procurement is a process committing huge amounts of scarce public resources whose value must berealized in terms of quantity, quality, time frame, effectiveness, outcome and, or impact. Havinggood indicators and tools to measure quality against agreed public procurement standards andenabling the government to reliably monitor ongoing procurement performance in its sectors makean essential foundation of any good procurement system. In order to ensure that the desiredobjectives of the policy are being achieved, the effectiveness of the policy and the procurementprocedures must be continuously monitored and evaluated. This process will help to determinewhether there is need for a complete policy review or adjustment that is necessary. Therefore aProcurement Monitoring and Evaluation Framework needs to become a primary concern of the

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Procurement Entities, and it is essential that this public procurement policy be continuouslymonitored and evaluated periodically.

Policy Objective

To develop an effective public procurement policy monitoring and evaluation mechanisms.

Policy Statements

To realize the above objective the Government in collaboration other stake holders shall:

a) Develop result based public procurement monitoring and evaluation framework.

b) Establish baseline monitoring and evaluation indicators, benchmarks and time frame forevaluation based on widely accepted national and international standards for a publicprocurement system.

c) Establish an effective and participatory monitoring and reporting system for the overallpublic procurement sector management processes.

d) Review of the policy and associated legislations as and when need arises.

e) Ensure that Procuring Entities create frameworks to systematically and periodically monitorand evaluate procured works, goods and services to report on the levels of achievement,losses and options to continue implementing or adjusting or terminating specific projectcontracts where necessary.