7. Procurement OF Goods & NON CONS PDF

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Warning: TT: undefined function: 22TOPIC SEVENPROCUREMENT OF GOODS AND NON CONSULTANCY SERVICESLearners being to:- a)b) Describe goods and non-consultancy services. Explain on the tendering process as the preferred procurement method. c) Prepare tender documents. d) Explain the evaluation of tenders...

Description

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

TOPIC SEVEN PROCUREMENT OF GOODS AND NON CONSULTANCY SERVICES Learners being to:a) b) c) d) e)

Describe goods and non-consultancy services. Explain on the tendering process as the preferred procurement method. Prepare tender documents. Explain the evaluation of tenders for goods and non-consultancy services. Explain other procurement procedures for goods and non-consultancy services Describe goods and non-consultancy services

Goods Means raw materials, products, equipment and other physical objects of every kind and description, whether in solid, liquid or gaseous form, electricity, intangible asset and intellectual property, as well as services incidental to the supply of the goods provided that the value of the services does not exceed the value of the goods themselves; Non consultancy services Means any object of procurement other than goods, works and consultancy services or Are the services which do not require technical expertise knowledge or Profession studies, anyone can perform non consultancy service after training or even without training. Tendering as Preferred Method •

Through competitive tendering PEs complies with all principles of the public procurement. Definition of Competitive bidding

Competitive tendering or tendering means the method of procurement whereby suppliers, service providers, contractors or asset buyers are invited by procuring entity to compete with each other in submitting priced tender for supply of goods, provision of services, execution of works or acquisition of assets Tendering process;

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)

 Preparation stage: specify the requirements, preparation of bidding documents, tender notice, and approval of bidding documents.  Invitation of tender by advertising.  Receiving and custody of tenders till the opening day.  Opening of tenders in presence of bidders or their representatives.  Evaluation of tenders by evaluation committee.  Approval of tender by tender board.  Awarding of contract or contracting.  Contract management. Exception for competition The application of competitive tendering method is mandatory according to PPA 2011 except when: •

Suppliers have been pre- qualified

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Goods or services obtained from sole source

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Requirement is urgent

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Need to achieve social objective- e.g. Local community participation

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Procurement of security or army equipment.

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Extension of the contract.

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Purchasing of compatible spares or equipment etc. Requisite for competitive tendering:

Procuring entity wishes to procure requirements through competitive tendering method must prepare invitation to tender notice, tendering document and advertise the tender. The invitation to tender notice, tendering document and advertisement must be: •

In writing

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Fair, non- restrictive, clear, comprehensive

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)

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Show criteria for evaluation

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Approved by tender board

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Provide sufficient time for bidders to prepare tender Types of tender advertisements

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General Procurement Notice (GPN)

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Specific Procurement Notice (SPN) General Procurement Notice (GPN)

Contains advance information on major procurement packages to be procured by procuring entity or planned procurement for financial year in summary form. The information is intended to alert suppliers, contractors, service providers procurement opportunities. Contents of GPN •

Name of procuring entity

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Estimated amount of bids

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Scope of procurement

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If known the schedule dates for availability of the bidding document.

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Address to obtain details Specific Procurement Notice (SPN)

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SPN are issued either as public invitation for pre-qualification or invitation for tender.

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SPN provides adequate notification of specific contract opportunities or invitation for bids. Contents of SPN

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Heading

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Name and address of procuring entity

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Scope, nature of procurement

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)

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Tender number

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Background of tender- GPN, source of fund

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Statement of invitation

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Method of procurement

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Address to obtain details

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How to obtain tendering document

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Tender security or tender securing declaration

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Submission and opening of tender

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Caution on late, portion, electronic tenders.

Advertisements •

Tender notice is required to be advertised in PPRA’s Journal and Tender Portal, PE website/notice board, one local and international newspaper

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Direct notification of all firms which expressed interested in the procurement in response to GPN. Standard Tendering Documents

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PPRA among other functions is responsible for preparing, updating and issuing authorized versions of the standardized tendering documents.

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Procuring entities are required to use the appropriate Standard Tendering Documents (STDs) issued by PPRA with minimum changes acceptable to PPRA as necessary to address project specific issues. Changes on standard tendering documents

Changes are allowed in: •

Tender Data Sheet

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)

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Special Conditions of Contract

The standard wording of standard tendering documents are not allowed for any changes.

Advantages of standard tendering documents •

Increase predictability/ uniformity;

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Increase efficiency and reduce costs;

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Reduce unresponsive bids;

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Increase competition and thus resulting lower prices; and

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Reduce preparation and review time.

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Facilitate and simplify evaluation and comparison of tenders

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Bidders benefits from using standard documents. Application of Standard Tendering Document:

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Open (International or National) Tendering method of procurement with or without prequalification.

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Restricted (International or National) Tendering methods of procurement.

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Direct Procurement method with appropriate modifications to the documents.

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suitable for any scope under lump sum contract Types of tendering documents for goods •

General goods

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Health Sector Goods

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Textbooks and reading materials

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Petroleum

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Frame work

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)

ETC. Structure of Standard Tendering Document for goods The Standard Tendering Document is divided into ten separate sections and a Preface. Procuring entities are required to use all

Sections to produce an individual tendering document

for issuing to tenderers Section I: Invitation for Tenders This section provides relevant information that enables potential Tenderers to decide whether or not to participate in the tender process. The details are the same as tender advertisement. Section II: Instruction to Tenderers •

This section provides relevant information to help tenderers prepare responsive tenders in accordance with the requirements of tendering document

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It provides information on submission, opening and evaluation of tenders, the award of contracts and on submitting complaints.

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This section contains provisions that are required to be used without any modification.

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The Instructions to tenderers will not be part of the contract and will cease to have effect once the contract is signed. Section III: Tender Data Sheet

Consists of provisions that are specific for procurement and that supplement the information Instructions to Tenderers.

Section IV: General Conditions of Contract Contains general clauses to be applied to all contracts. It shows: •

Rights and obligations of the parties during the execution of the contract.

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)

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The text of the clauses in this section shall not be modified. Section V: Special Conditions of Contract

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Contains clauses which are specific to each contract that modify or supplement Section IV – GCC.

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Amendments, if any, to the GCC should be made through the Special Conditions of Contract.

The Special Conditions of Contract should be filled out by procuring entity prior to issuance of the tendering documents Section VI: Statement of Requirements Shows delivery schedule in either of the terms •

at EXW premises, or

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FOB or CIF terms, or

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FCA or CIP terms.

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It shows description, quantity and delivery schedule Section VII: Specifications

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Contains the specifications for goods and related services to be incorporated in the service contract.

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The specifications must be provided by the Procuring Entity prior to the issuance of the tendering documents. Section IX: Forms of Tender

This section provides Forms which must be filled by bidders: •

Form of Tender

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Price Schedules for Goods and Related Services

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Form of qualification

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)

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Letter of Acceptance which will be issued by the Employer to the successful Tenderers.

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Form of Contract which will be signed by the Employer and the successful Tenderer. Section X: Security Forms

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Tender security or tender securing declaration,

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Performance security

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Bank Guarantee for Advance Payment

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Manufacturer’s Authorization Form The tender security or tender securing declaration, where required, must be furnished by each Tenderers.

Performance security and advance payment should be furnished by the successful Tenderers only.

SECTION XI: INTEGRITY •

Each tenderer must comply on anti-bribery

policy/code of conduct and compliance

program. •

Tenders which do not conform to the shall not be considered. Contents Tendering Document

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Criteria and procedure for evaluation

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Documentary evidence to be submitted by bidders

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Technical and quality characteristics

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Margin of preference

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)

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Alternatives to characteristics if allowed

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Tender if allow portions/lots

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Pricing

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currency

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place and deadline for the submission of tenders;

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clarification of the solicitation documents

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Effective period of tender. EVALUATION OF TENDERS FOR GOODS AND NON CONSULTANCY SERVICE.

Essential features of a supplier to be considered for detailed tender evaluation:1) Eligibility criteria  Legal entity  Licenced entity  Authorized 2) Financial soundness  Sound gross profit  Sound net profit  Sound financial position on balance sheet. 3) Effective management cadre  Reputable managers  Visionary leaders 4) Professional and technical expertise  Professional and technical staffs  Supporting staffs 5) Tools and equipment  Sufficient tools and equipment to support the procurement. Eligibility 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)

Participation in public procurement is open on equal terms to registered: •

Natural person

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Companies

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Firms

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Public or semi public agencies of Tanzania and foreign countries

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Cooperative societies

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Joint venture – consortium or association Exception for participation

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Being bankrupt

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Legal proceedings instituted against bidder

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Convicted of criminal offence

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Guilty of serious misrepresentation

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Breach of contract with other PE

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Black listed by PPRA Exceptions for participation:

Foreign firm or goods manufactured in a foreign country may be excluded if•

as a matter of Law or Regulations of Tanzania prohibits commercial relations with that country; or

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by an act of compliance with a decision of the United Nations Security Council taken United Nations,

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Foreign firm does not satisfy relevant Regulations in Tanzania

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A firm which has been engaged by a procuring entity to provide consulting services with exception under turnkey contract

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)

Tanzanian government enterprises May participate only if they can establish that they are: •

Legally and financially autonomous

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Operate under commercial law

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Registered by the relevant professional registration body or authorities Dependent agency

No dependent agency of the public authority under a public financed project shall be permitted to tender or submit a proposal for the procurement of goods or works under the project other than Force Account. Ineligible by the Government A firm which has been declared ineligible by the Government in shall be ineligible to be awarded a public financed contract during the period of time determined by the Government. Joint venture, consortium or association •

Tanzanian firms or buyers may tender independently or in joint venture with foreign firms, Joint venture, consortium or association

Where Tenderers submits a tender as part of a joint venture, consortium or association, the solicitation or contract document shall state where appropriate: - Parties to a joint venture, consortium or association shall be jointly and severally liable for the performance of the contract; -

Where one party is deemed to be ineligible, the whole joint venture, consortium or

association shall

be declared ineligible; Joint venture, consortium or association

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Members of the joint venture, consortium or association must submit agreement

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)

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Lead member who shall have the authority to bind the joint venture, consortium, or association must be appointment by submission of a power of attorney to the procuring entity;

Tender from a joint venture, consortium or association shall indicate what will be performed by each party. Qualification of bidders •

Possess the necessary professional and technical qualifications, technical competence, financial resources, equipment and other physical facilities, managerial capability, reliability, experience, reputation, and the personnel to perform the assignment; have legal capacity to enter into the procurement contract

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not be insolvent, bankrupt or wound up;

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have fulfilled their obligations to pay taxes and social security contributions and that they abide to employment, environmental, health and safety requirements in Tanzania,

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Directors or officers are not convicted by any criminal offences related to profession

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Bidders must submit evidence of qualification Evaluation Factors

The factors and criteria that will be evaluated must be stated in the bidding document. If there is margin of preference and any criteria other there price to be used shall be states.

Pricing •

Bids for goods shall be invited on CIF (Port of Destination) or CIP (Place of Destination) for imported goods.

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For local supplier Ex-works or off shelf or delivered. Price Adjustment

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)

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Bidding documents must contain statement whether price shall be fixed or subject to adjustment. Where adjustment is required formula for price adjustment will be shown in bidding document. Terms and Methods of Payments

Contracts for supply of goods shall provide for full payment on delivery and inspection. For imported goods the use of LC for effecting payments is encouraged Bids Submission The PE shall fix the place, specific date and time of closing and submission of bids Validity of Bids Tendering document must state period bid validity. In any case it should be valid up completion of evaluation of bids, review the recommendation of award, approvals for award and the 7 days waiting for appeal if any before signing contract with lowest evaluated bidder. Bid Security According to PPA 2011 tender security Means a guarantee or bond from a tenderer’s bank or an insurance company which should be provided by the te...