4. Public Procurement Reform IN Tanzania PDF

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Warning: TT: undefined function: 22TOPIC FOURPROCUREMENT REFORMS IN TANZANIALearners being able to:-a) Explain and analyze public procurement reforms in Tanzania.b) Describe the institutional framework for public procurement inTanzania.c) Describe the Tanzania’s legislative frameworks which apply to...

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BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

TOPIC FOUR PROCUREMENT REFORMS IN TANZANIA Learners being able to:a) Explain and analyze public procurement reforms in Tanzania. b) Describe the institutional framework for public procurement in Tanzania. c) Describe the Tanzania’s legislative frameworks which apply to the public sector. d) Describe the role of key players in public procurement in TanzaniaPPPD, PPRA, PPAA, PSPTB, and GPSA.

PUBLIC PROCUREMENT REFORMS IN TANZANIA Introduction • Public procurement reforms means changing or amending of public procurement rules, regulations, policies, and standards so as to make improvements. Public Procurement Reforms in Developing Countries In developing countries public procurement reforms have been attributed from rapid changes of economy, globalization and pressure from international donors’ old regulations proved to be ineffective. The demands for international institutions are to harmonize national and international procurement systems and eliminate weaknesses in public procurement. Public Procurement Reforms in Tanzania BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

• The history of public procurement system in Tanzania traces back to pre and post-colonial era. • Prior to the enactment of the Public Procurement Act No.3 of 2001; public procurement was regulated by the “Exchequer and Audit” Ordinance of 1961 and the Financial Orders Part III in Public sector adopted from British colonial masters. Public Procurement Reforms in Tanzania • Pre - PPA No.3 of 2001 • PPA No.3 of 2001 • PPA No. 21 of 2004 • PPA No. 7 of 2011 • PPA 2016 The history of public procurement system in Tanzania trace back to pre and post-colonial era. Prior to the enactment of the Public Procurement Act No.3 of 2001; public procurement was regulated by the “Exchequer and Audit” Ordinance of 1961 and the Financial Orders Part III in Public sector adopted from British colonial masters. Government of Tanzania in 1989 embarked on public sector management reform process which consisted of: Civil Service Reform Financial Sector Reform, Planning and Budget System Reform. In 1996 the Country Procurement Assessment Report prepared by the World Bank, identified a number of weaknesses in public procurement system in Tanzania and recommended urgent reform. As result of that the Public Procurement Act 2001was enacted as extension of Public Finance Act 2001 to regulate public procurement. The recommendations of Country Procurement Assessment Report 2003 resulted to repeal of the Public Procurement Act 2001 and enactment of the Public Procurement Act 2004 with

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

Issuance of UNCITRAL public procurement model law among other drivers lead to enactment of PPA of 2011. Recently PPA of 2011 has been amended to the PUBLIC PROCUREMENT (AMENDMENT) ACT, 2016 to cover the weaknesses revealed in PPA, 2011 and making the additions discovered to be favourable. Features of Act 2004 Establishment of Public Procurement Regulatory Authority (PPRA) in place of Central Tender Board (CTB); • decentralize procurement to procuring entities with no limits; • changes the composition of tender board of which Accounting Officer/Chief Executives are no longer chairperson of tender boards • Membership of Public Procurement Appeal Authority to include private sector. • Appeal mechanism involves three steps i.e. to AO of PE, to PPRA, and lastly to PPAA. These changes were meant to increase efficiency, accountability in public procurement and foster participation of domestic firms in public procurement market. Establishment of the PPA 2011 Following to the weaknesses of the PPA 2004 more reforms were made which established the PPA 2011 PPA of 2011 and its Regulations GN. No. 446 of 2013 is applicable in all procuring entities  Local Government Authorities are required to comply with all provisions of PPA 2011 and PPR 2013 except Section 31(3)  LGAs on establishment and composition of tender board follows the provisions of LGA Finance Act BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

Highlights on PPA 2011 • Approval to award tenders exceeding budget • Annual Procurement Planning linked to Budget • Cool Off Period before announcing a winner and signing the contract with lowest evaluated bidder is 14 days after notification to both successful and unsuccessful bidders • Used Aircrafts, Railway equipment and Ships • Complaints review mechanism involves two steps i.e. to AO of PE and lastly to PPAA. • In framework agreement PEs use supplies shortlisted by GPSA and select the lowest evaluated one or highest ranked to enter with an agreement. Etc. The Public Procurement (Amendment) Act of 2016 Some amendments of the Act include;  PE or the Agency shall for the purpose of obtaining VFM in terms of price, quality and delivery procure specialized goods or services direct from manufacturer, dealer, wholesaler or service provider.  The tenderer may make a complaint to the appeal within seven days from the date of communication of the decisions of AO.  The decision of appeals Authority shall be binding on the parties to the complaint or appeal and shall be enforceable the same manner as a decree or order of the court.  In the case of an application by a PE or a tenderer challenging the decision of Appeals Authority both parties should state their positions to Attorney General  Open framework agreement instead of priced FWA will be applied to obtain best evaluated and market price Reasons for Public procurement reforms BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

• Delays in the procurement process; • High prices of goods and services • Long procurement complaint process; • Delays in payment to contractors and suppliers; • Limited powers of PPRA and its outreach capacity in the Local Government Authorities; • Non-independence of Public Procurement Appeals Authority in its operations; • High procurement transaction costs ; • Corruption and lack of ethics in the procurement process; • Low level of participation of local firms in the procurement process; • Lack of transparency in the tender award • To make additions of those ware been forgotten in last editions. Tanzania Legislative Frameworks In Tanzania the Tanzania Parliament is the organ having a power and authority for enacting laws including public procurement law. The institutional framework for public procurement in Tanzania The institutional framework or essential supporting structure for public procurement in Tanzania includes the following key players; • Public Procurement Policy Division(PPPD) • Public Procurement Regulatory Authority(PPRA) • Public Procurement Appeal Authority(PPAA) • Government Procurement Services Agency (GPSA)

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

• Procurement and Supplies Professionals and Technicians Board (PSPTB) • Procurement Entities (PEs) Public Procurement Policy Division (PPPD) The Public Procurement Policy Division was established under Section 5 of the PPA 2011 with the following functions: • developing national procurement policy; • reviewing procurement policies, regulations , circulars and other related directives with the view of updating the same; • monitoring the implementation of procurement policies; • To advise the Government and statutory bodies on issues related to procurement policies; an • Developing and managing the procurement cadre. Public Procurement Regulatory Authority (PPRA) The PPRA was established under Section 7 of PPA 2011 as autonomous body under the Ministry of Finance. Functions of PPRA • monitor and report on the performance of the public procurement systems in Tanzania and advice on desirable changes; • prepare, update and issue authorized versions of the standardized tendering documents, procedural forms and any other attendant documents to procuring entities; • Ensure PEs use standard document any deviation from the use of documents must be approved by PPRA; • Issue guidelines in accordance with the Act; • Organize and maintain a system for the publication of data on public procurement opportunities, awards and any other BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

information of public interest as may be determined by the Authority; • Conduct periodic inspections of the records and proceedings of the procuring entities to ensure full and correct application of the Act • Monitor the award and implementation of contracts to ensure that are awarded impartially and on merit; are not awarded or terminated impropriety or irregularity; contract conforms to the terms thereof. • Institute: • Procurement audits during preparation • Contract audits during implementation • Performance audit after the completion of the contract. • Agree on a list of works, services and supplies in common use by PEs which may be subject to common procurement; • Administer and enforce the compliance of Act • Undertake research and surveys nationally and internationally on procurement matters Public Procurement Appeal Authority (PPAA) • PPAA was established under Section 88 the Public Procurement Act No 7 of 2011 as an independent Appeals Authority • The key function of PPAA is to provide an independent avenue through which aggrieved bidders can submit their complaints where they feel that they have been unfairly treated when participating in the public procurement process • The appeal process allows the matter reviewed and corrective measures put in place without having to go to the Law courts to obtain a solution. • It is only where there are disagreements on points of law that court intervention may be required. BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

• This process allows speedy decisions and lower costs while at the same time providing supplementary oversight. Procurement Supplies Professional and Technician Board (PSTB) Procurement and Supplies Professionals and Technicians Board (PSPTB) established in 2007 by Parliamentary Act No. 23 is the successor of both the National Board for Materials Management (NBMM) Functions (PSPTB) • To regulate professional standards and conduct of professionals in the fields of procurement and supplies. • To formulate and advise the government on overall policy relating to the profession of procurement and supplies; • To plan, direct, co-ordinate, monitor and control personnel requirements in procurement and supplies management profession • To provide professional advice to and recognize all trainings institutions within the country offering courses in procurement and other related professions • To formulate and enforce the maintenance of standards of conduct of procurement and supplies specialists • To train or provide opportunities for the training in procurement and supplies management; • To conduct professional examinations leading to the grant professional certificates such as PSMBC, PSMFC, and CPSP. • To register procurement and supplies professionals in different categories such as Technician, Full Technician, Graduate, Approved and Authorized categories. • To keep and maintain registers for the registration of procurement and supplies professionals;

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)

• To sponsor, arrange and provide facilities for conferences, seminars etc. • To ensure standard of conduct and code of ethics are adhered in the performance of the procurement and supplies duties. Government Procurement Services Agency (GPSA) GPSA is mandated by PPA 2011 to arrange for procurement of Common Use Items and Services (CUIS) by PEs through Framework Contracts (FWCs). The following are the functions of GPSA;  To collect requirements of PEs for common use items and services.  To advertise tender for common use items.  To maintain register of approved suppliers for common use items  To provide safe and secure warehousing and storage facilities.  To establish and maintain good relationship with other stakeholders such as PPRA, PEs, and suppliers.  To provide clearing and forwarding and consultancy services on procurement that ensures value for money etc. BEST WISHES, PREPARED BY ABUBAKARI MRISHO, KPS INSTRUCTOR, CONTACT: 0717 58 14 04, EMAIL: [email protected]

BY ABUBAKARI MRISHO/ O717 58 14 04/ [email protected] KP- PROFESSIONAL SERVICES (KPS)...