PPDA User Guide

Public Procurement and Disposal of Assets- User Guide
User Guide
to
The Public Procurement and Disposal
of Public Assets (PPDA) Act 2003 and
Regulations, 2014
Draft Report
July 2015
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Table of Contents
INTRODUCTION ................................................................................................................................ iii
WHO DOES WHAT? ........................................................................................................................... 1
Procuring and Disposing Entities ...................................................................................................... 2
Accounting Officer ............................................................................................................................ 2
Contracts Committee ......................................................................................................................... 3
Procurement and Disposal Unit ........................................................................................................ 3
User Departments .............................................................................................................................. 4
Evaluation Committee ....................................................................................................................... 4
Bidders and Providers ....................................................................................................................... 4
Board of Survey ................................................................................................................................. 5
The PPDA Appeals Tribunal ............................................................................................................ 5
Attorney General/ Solicitor General ................................................................................................. 6
HOW TO CONDUCT PROCUREMENT ............................................................................................ 7
Procurement Planning ....................................................................................................................... 7
Initiating Procurement Requirements .............................................................................................. 7
Selecting a Procurement Method ...................................................................................................... 7
Drafting Solicitation Documents ....................................................................................................... 9
Inviting Bids....................................................................................................................................... 9
Public bid opening ........................................................................................................................... 12
Evaluation ........................................................................................................................................ 12
Post Qualification ............................................................................................................................ 13
Negotiation ....................................................................................................................................... 13
Award Decision ................................................................................................................................ 14
Notice of Best Evaluated Bidder ..................................................................................................... 14
Awarding a Contract ....................................................................................................................... 14
Contracts Management ................................................................................................................... 14
HOW TO CONDUCT DISPOSAL ..................................................................................................... 16
Disposal planning and initiating disposal requirements ................................................................. 16
Selecting a disposal method ............................................................................................................. 16
Drafting solicitation documents ...................................................................................................... 17
Inviting, Receiving and Opening Bids ............................................................................................. 17
Evaluation ........................................................................................................................................ 18
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Negotiations ..................................................................................................................................... 18
Contract Management ..................................................................................................................... 19
Disposal Process for Trade-In ......................................................................................................... 19
Disposal Process for Transfer to another Procuring and Disposing Entity ................................... 19
Disposal Process for Conversion or Classification into another Form .......................................... 19
Disposal Process for Destruction of Assets ..................................................................................... 19
HOW TO FILE A COMPLAINT ....................................................................................................... 20
How to File a Compliant.................................................................................................................. 20
Tier 1: Compliant to Accounting Officer ........................................................................................ 20
Tier 2: Compliant to the Authority ................................................................................................. 20
Tier 3: Complaint to the PPDA Appeals Tribunal ......................................................................... 21
WHAT DOCUMENTS DO I HAVE TO USE? .................................................................................. 22
Standard Forms and Documents for Procurement and Disposal .................................................. 22
Reporting Requirements ................................................................................................................. 22
Obligation to provide information to the Authority ....................................................................... 22
ANNEX A: LEGAL FRAMEWORK FOR PUBLIC PROCUREMENT AND DISPOSAL OF
PUBLIC ASSETS ................................................................................................................................ 23
.............................................................................................................................................................. 23
ANNEX B: WHO DOES WHAT? ...................................................................................................... 24
ANNEX C: THE PROCUREMENT PROCESS ................................................................................ 25
ANNEX D: THE DISPOSAL PROCESS ........................................................................................... 26
ANNEX E: FEES FOR ADMINISTRATIVE REVIEW ................................................................... 27
ANNEX F: SUMMARY OF STANDARD FORMS ........................................................................... 28
Summary of Procurement and Disposal Forms and Regulations from Initiation to Contract
Management Stage .......................................................................................................................... 32
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INTRODUCTION
This User Guide is designed to assist various stakeholders in the procurement process in following
the Public Procurement and Disposal of Public Assets Act 2003 and Regulations. This User Guide
is not intended to be a replacement of the PPDA Act and PPDA Regulations. The User Guide is
intended for guidance purposes. Use of this Guide does not relieve staff of any obligations under
Regulations or the PPDA Act. The details should always be read with the law.
What is the purpose of the Act and Regulations?
The Act provides rules governing all procurement and disposal activities of Procuring and
Disposing Entities. The reprinted Act incorporates all amendments to the Parent Act of 2006 and
2011.
The Regulations provide a comprehensive set of rules governing all procurement and disposal
activities of Procuring and Disposing Entities.
The Regulations are issued under the Public Procurement and Disposal of Public Assets Act, 2003
and give detailed rules to supplement the principles outlined in the Act. The Act takes precedence
over the Regulations, but the Regulations incorporate virtually all provisions of the Act and can
be used as a detailed reference to the government’s rules on public procurement and disposal.
Structure of the Regulations
The Regulations are divided into 11. Each covers a different subject area as summarized below:
The PPDA Regulations, 2014 includes introduction, operations, powers and functions of the
Authority. This regulation also covers details about registration of providers by the Authority (Part
II, Section 5-23 of the Act)
The PPDA (Procuring and Disposing Entities) Regulations, 2014 includes details about Procuring
and Disposing Entities. These include procurement planning, appointment, membership and
operations of Contracts Committee, management of procurement and disposal processes by
Procurement and Disposal Unit, contracting out of procurement and disposal functions to another
Procuring and Disposing Entity or third party and standard documents. It also covers preference
schemes, reservation schemes, due diligence, role of internal audit and procurement and disposal
notice board (Part III, Section 24-42; Part V, Section 59A-59B of the Act).
The PPDA (Rules and Methods for Procurement of Supplies, Works and Non-Consultancy
Services) Regulations, 2014 includes rules and methods for procurement of supplies, works and
non-consultancy services. It gives details about initiation of procurement requirements, methods
of procurement, prequalification, bidding documents, and the bidding process (Part V, Section 55-
78 of the Act).
The PPDA (Evaluation) Regulations, 2014 includes evaluation of bids. It includes the Evaluation
Committee, membership and meetings. It also includes evaluation of bids, request for clarification
of bids and correction of non-conformities and omissions and post qualification evaluation (Part
V, Section 71-75 of the Act)
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The PPDA (Procurement of Consultancy Services) Regulations, 2014 is about procurement of

consultancy services. It includes initiation of procurement requirement, methods for procuring
consultancy services, evaluation of proposals, and selection of individual consultants (Part VI,
Section 88A of the Act).
The PPDA (Procurement of Medicines and Medical Supplies) Regulations, 2014 deals with
procurement of medicines and medical supplies. It includes methods of procurement and the
bidding process. It also provides a schedule of different categories of medical supplies (Part III,
Section 40A of the Act).
The PPDA (Procuring and Disposing Entities outside Uganda) Regulations, 2014 is about
Procuring and Disposing Entities outside Uganda. It provides for Contracts Committee, Evaluation
Committee and Procurement and Disposal Unit and reporting to the Authority procedures. It also
provides for procurement method, minimum bidding period, bid security and selection of disposal
method (Part VIII, Section 96 of the Act).
The PPDA (Disposal of Public Assets) Regulations, 2014 is about disposal of public assets. It
provides conditions and rules for the various methods of disposal, the processes for disposal and
evaluation of bids for disposal (Part VI, Section 87 of the Act).
The PPDA (Contracts) Regulations, 2014 is about contracts. It includes details on awarding of
contract, types of contract, contract pricing and payment and contract management (Part VIA,
Section 88B-88L of the Act).
The PPDA (Force Account Mechanism) Regulations, 2014 is about force account mechanism (use
of internal personnel and equipment to undertake works). It includes details on determination of
costs, procurement of equipment and supplies, appointment of supervisor and other officers (Part
VIII, Section 95A of the Act).
The PPDA (Administrative Review) Regulations, 2014 is about administrative review. It provides
procedures of handling complaints by Accounting Officer, the Authority and Tribunal (Part VII,
Section 89-91 of the Act).
The Regulations also contain Schedules which include all standard Forms 1-4 (Procuring and
Disposing Entity Regulations); 5-12 (rules and methods for procurement of supplies, works and
services); 13-17 (evaluation); 18-26 (consultancy services); 27 (out of the country); 28-48
(disposal); and 49 (contracts).
What the Regulations apply to
The Regulations apply to all public procurement and disposal activities in Procuring and Disposing
Entities in Uganda.
Public procurement is all procurement that is funded by Public Funds including the Consolidated
Fund, any other sources of public funds and any funds generated by a Procuring and Disposing
Entity (Part I, Section 2 of the Act).
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Public disposal is the disposal of any government owned assets, with the exception of those
regulated by the Public Enterprise Reform and Divesture Statute, 1993 (Part I, Section 3 of the
Act).
Where an international agreement, such as a financing agreement with a donor conflicts with the
Regulations, the terms of the international agreement will apply, rather than the Regulations (Part
I, Section 4 of the Act).
Any uncertainty or dispute regarding whether the Regulations apply must be referred to the
Authority for its decision (Part 1, Section 2(2) of the Act).
Where there is need to deviate from the use of standardized bidding documents, procedural forms
and any other attendant documents, this will only be effected after the prior written approval of
the Authority (Part II, Section 7(e) of the Act; PPDA (Procuring and Disposing Entities)
Regulations, 2014, Regulation 26).
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WHO DOES WHAT?

This section describes the institutional framework of the public procurement system, explaining
the different roles and responsibilities of each person or organization. This is shown in Annex B.
Each Procuring and Disposing Entity is responsible for its own procurement and disposal
activities, subject to the guidance and supervision of the Authority.
The Public Procurement and Disposal of Public Assets Authority
The Act created a principal regulatory body called the Public Procurement and Disposal of Public
Assets Authority. Its overall role is to set standards for procurement and disposal systems in
Uganda and enforce them.
The Authority is an autonomous body, governed by a Board of Directors appointed by the Minister
responsible for Finance.
The day to day work of the Authority is carried out by the Executive Director and the staff of its
six departments: Executive Director and Corporate Office, Procurement Audit and Investigations,
Finance and Administration, Internal Audit, Legal and Advisory Services and Compliance and Commented [s1]: Legal and Advisory Services
Training and Capacity Building.
The Authority has the following functions (Part II, Section 7 of the Act, PPDA Regulations, 2014,
Regulations 8-14):
1. Policy functions, which includes advising government and entities on procurement and
disposal, issuing guidelines to the PPDA Act, accreditation of an alternative system for a
procuring and disposing entity procurement and disposal system, specify contracts to be
subject to a reservation scheme.
2. Regulatory functions, which includes compliance with the law, issuing standard
documents, approving any deviations from the use of standard bidding documents,
procedural forms and any other attendant documents, where applicable, issue prices of
common user items, investigating breaches of the PPDA Act, Regulations or guidelines by
Procuring and Disposing Entities or providers, right of entry into an entity premises,
instituting procurement or disposal and performance audits, directing a Procuring and
Disposing Entity to take corrective action and suspension of providers.
3. Data Management functions, which includes maintaining system-wide databases and
technology of providers and other databases and maintaining a website and other systems
for publishing procurement notices on procurement opportunities, awards any other
information.
4. Capacity Building functions, which includes setting standards for the training and
professional development of procurement staff and coordinating capacity building
activities in the area of procurement and disposal, establishing and maintaining institutional
linkages with entities with professional and related interest in public procurement and
disposal, undertake procurement and disposal research and surveys.
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The Authority may contract a third party to carry out procurement audits, investigations and
inspections.
Procuring and Disposing Entities

Procuring and disposing entities include central government departments, statutory bodies, Local
Governments and any other body established by the government or intended to carry out public
functions.
Procuring and disposing entities are responsible for managing their own procurement and disposal
activities. Each Procuring and Disposing Entity consists of: Accounting Officer, the Contracts
Committee, the Procurement and Disposal Unit and the User Departments. There is also an
Evaluation Committee for specific procurement and disposal activities, which is ad hoc. Each of
these five parts must act independently and not to interfere unduly in the operations of others.
Accounting Officer
The Accounting Officer has the overall responsibility for procurement and disposal within the
Procuring and Disposing Entity, but is not involved in detailed procurement or disposal work or
in taking contract decisions.
The Accounting Officer’s functions and powers are given in full in Part III, Section 26 of the Act.
The main areas of responsibility are:
1. Establishment of Contracts Committee: The Accounting Officer appoints the members of
the Contracts Committee (subject to approval of the Permanent Secretary/Secretary to the
Treasury) and has powers of delegation (in writing) of functions within the Procuring and
Disposing Entity.
2. Funding: The Accounting Officer confirms the availability of funds for any procurement
activity, ensures that procurement planning is conducted and integrated with the budgeting
process, commits funds for procurement contracts and authorizes payments.
3. Communications: the Accounting Officer communicates contract award decisions to
successful bidders.
4. Investigations: the Accounting Officer investigates any complaints from bidders.
5. Takes decisions in emergency situations: in the case of emergency situations, the
Accounting Officer signs contracts in emergency situations without approval of Contracts
Committee and thereafter informs the committee.
6. Assessment of market price: the Accounting Officer undertakes an assessment of the
market price of the supplies, services or of the unit costs of the works prior to the
commencement of the procurement process and confirmation that contract price is not
higher than the established market price before signing the contract.
7. Terminate a contract upon consultation with the Attorney General.
8. Submit procurement plan to the Permanent Secretary/Secretary to the Treasury and the
Authority and notify them of any changes made during the financial year.
9. Submit administrative review decisions to the Authority for review. An Accounting Officer
should not sign a contract with a provider during the period of administrative review.
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10. Cause the Entity’s assets to be reviewed each financial year to identify items to be disposed
of.
11. Causing to be established a Procurement and Disposal Unit staffed at an appropriate level.
12. Advertising bid opportunities
13. Signing contracts for procurement and disposal activities on behalf of the Procuring and
Disposing Entity; and
14. Ensuring that the implementation of the awarded contract is in accordance with the terms
and conditions of the award.
Contracts Committee
The Contracts Committee’s main responsibility is to ensure that procurement and disposal
activities are conducted in compliance with the Act and Regulations. This is done by approving or
rejecting recommendations from the Procurement and Disposal Unit at key stages throughout the
procurement or disposal process, particularly contract award decisions. The Contracts Committee
also sends a representative to attend pre-bid meetings and witnesses bid closure and opening (Part
III, Section 27-29 of the Act; PPDA (Procuring and Disposing Entities) Regulations, 2014,
Regulation 9-18).
The chairperson of the Contract Committee chairs the meetings and in the absence of the
chairperson, the members elect from amongst themselves a member to chair the meeting. The
quorum for a meeting of the Contracts Committee is any three members present at a meeting (Part
III, Section 27(2)(b) of the Act PPDA (Procuring and Disposing Entities) Regulations, 2014,
Regulation 15). Commented [s2]: It is only Regulation 15 that provides for
the conduct of meetings of the Contracts Committee and
Details are given below on how submissions should be made to the Committee and how the not Section 27 (2) (b) of the Act.
Committee should conduct and record its meetings,
A Contracts Committee consists up to five members (in their individual capacities):
1. A Chairperson
2. A Secretary
3. A maximum of three other members, including one lawyer.
A Procuring and Disposing Entity which does not have a legal staff to be a member of the
Committee, may request a member from the Ministry of Justice and Constitutional Affairs.
In order to maintain independence of functions between each part of the Procuring and Disposing
Entity, neither the Accounting Officer nor a member of the Procurement and Disposal Unit may
be a member of the Contracts Committee.
Procurement and Disposal Unit

The Procurement and Disposal Unit’s overall function is to manage all procurement and disposal
activities of the Procuring and Disposing Entity, working in conjunction with User Departments
and seeking approval of Contracts Committee where appropriate. The Procurement and Disposal
Unit’s full functions and powers are given (Part III, Section 30-32 of the Act; PPDA (Procuring
and Disposing Entities) Regulations, 2014, Regulation 19).
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The Procurement and Disposal Unit should be staffed with professional procurement staff. The
size and structure of the unit, numbers and grades of staff is determined by the procurement
workload of the Procuring and Disposing Entity.
User Departments
The functions and powers of the User Departments of a Procuring and Disposing Entity are given
in full in Part III, Section 34-36 of the Act; PPDA (Procuring and Disposing Entities) Regulations,
2014, Regulations 3 and 19(2).
The main areas of responsibility are:
1. Preparation of annual procurement plans, initiating procurement and disposal requirements
and defining needs;
2. Providing technical inputs to the procurement and disposal process;
3. Undertake delegated micro procurements; and
4. Managing contracts once placed.
Evaluation Committee
The description, chairperson and conduct of Evaluation Committee meetings are given in Part III,
Section 37 of the Act ; PPDA (Evaluation) Regulations, 2014, Regulations 3-5.
Members of the Evaluation Committee are recommended by the Procurement and Disposal Unit
and approved by the Contracts Committee. They should have the relevant technical skills and
experience. They include a person representing the User Department and a member of the
Procurement and Disposal Unit.
All members of the Evaluation Committee sign a code of ethics to declare that they do not have
conflict of interest in the procurement in question.
Bidders and Providers

Bidders and Providers are essential stakeholders in the Public Procurement and Disposal system.
The Regulations aim to give bidders fair opportunities to participate in government procurement
system, developing the private sector in Uganda as well as obtaining value for money in the use
of public funds (Part II, Section 43-54 of the Act; PPDA (Rules and Methods for Procurement of
Supplies, Works and Non-Consultancy Services) Regulations, 2014, Regulations 8(3), 37(4) and
29(e).
The Authority has an online Register of Providers, which creates a sustainable and vibrant web-
based forum and focal point for entities. The Register website has a range of uses for the collected
data that support entities, the Authority and other agencies in their work. The Register has a
comprehensive database that links providers' data on matters such as past performance, geographic
location and current projects.
Bidders with valid registration status are exempted from the requirement to submit a certificate of
incorporation and a trading license when bidding. The website also provides extra options for
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providers such as direct advertising on the system (Part II, Section 7(h) of the Act; PPDA
Regulations, 2014, Regulation 16(k))
In order to develop the private sector in Uganda, the Regulations provide for Preference and
Reservation schemes. For bidders who meet the requirements for the Preference scheme, a margin
of preference of 15% is granted for goods manufactured, mined, extracted or grown in Uganda
while a margin of preference of 7% is granted for works by Ugandan contractors or services
provided by Ugandan consultants (Part IV, Section 50 of the Act; PPDA (Procuring and Disposing
Entities) Regulations, 2014, Regulation 29).
When the best evaluated bidder notice is displayed, the unsuccessful bidders are notified of the
stage at which their bid failed or was eliminated. The Procuring and Disposing Entity cannot enter
into a contract during the 10 days after display of the best evaluated bidder notice, to allow bidders
sufficient time to lodge complaints with the Accounting Officer if any.
There are grounds and procedures for suspension of providers, who breach the Code of Ethics for
providers. Procuring and Disposing Entities cannot suspend providers, but may recommend to the
Authority, which will investigate and decide (Part VIII, Section 94-95 of the Act; PPDA
Board of Survey
(Part II, Section 28 (1) of the Act; PPDA (Disposal of Public Assets) Regulations, 2014, Regulation Commented [s3]: Its section 28 (1) (ca) (i) that provides
2(2) provides for the Board of Survey. This is a team which identifies the public assets in a for the Board of survey.
Procuring and Disposing Entity to be disposed of. It consists of at least a member with technical
knowledge on the asset being disposed of. It is appointed by the Accounting Officer with the
following specific duties:
1. Carry out physical inspection of assets to be disposed of;
2. Undertake valuation of the assets to be disposed of;
3. Determination of the reserve price;
4. Assess costs and benefits of various disposal methods; and
5. Recommend the best disposal method.
The PPDA Appeals Tribunal Commented [s4]: No reference to the law. Part VIIA, of
The PPDA Appeals Tribunal consists of a Chairperson who is qualified to be a Judge of the High the PPDA Act, 2003 provides for review of decisions of the
Authority and Establishment of the PPDA Appeals Tribunal
Court and four other members with relevant knowledge and experience in public procurement,
finance, commerce, business administration and law.
PPDA Appeals Tribunal reviews PPDA decisions where:
1. A bidder is aggrieved by a decision made by the Authority;
2. A bidder alleges that the Authority has a conflict of interest in respect of a matter before
the Authority and who believes that the matter cannot be handled impartially by the
Authority; and
3. A Procuring and Disposing Entity or any person’s rights are adversely affected by a
decision made by the Authority.
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The PPDA Appeals Tribunal has powers of a High Court and has to issue a decision within ten
working days after receiving an application for review.
Powers of the PPDA Appeals Tribunal
1. Suspend any action by the concerned Procuring and Disposing Entity, until the Tribunal
makes a decision on the matter;
2. Direct the Procuring and Disposing Entity, with respect to anything to be done or redone
in the procurement or disposal process;
3. Order that the procurement or disposal process be terminated;
4. Direct the Procuring and Disposing Entity to cancel the contract of the bidder where the
Tribunal establishes that a bidder is involved in a fraudulent practice;
5. Require the payment of compensation for any costs, reasonably incurred by the bidder who
is a party to the proceedings, as a result of an unlawful act or decision of the Procuring
and Disposing Entity or of the Authority; and
6. May in respect of a decision of the Authority, affirm it, vary it or set it aside and make a
decision in substitution for the decision set aside or refer the matter back to the Authority
for reconsideration in accordance with any directions or recommendations.
A party to proceedings before the Tribunal who is aggrieved by the decisions of the Tribunal may
within thirty days lodge a notice of appeal with the Registrar of the High Court.
Attorney General/ Solicitor General

The role of the Attorney General in public procurement and disposal is executed by the Solicitor
General. The following are the roles (PPDA (Contracts) Regulations, 2014, Regulations 55(6c)
and 56(3) :
1. Providing legal advice to the entities; and
2. Clearing contracts above UGX Two Hundred Million (Exemption of Particular Contracts Commented [s5]: The following should be inserted “In
from Attorney General’s Legal Advice) (Amendment) Instrument, 2014. accordance with The Constitution…”
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HOW TO CONDUCT PROCUREMENT

PPDA (Rules and Methods for Procurement of Supplies, Works and Non-Consultancy Services)
Regulations, 2014 give the basic procurement process from procurement planning right through to
contracts management. Although the procurement process may vary slightly for different methods
of procurement and depending on whether the requirement is for supplies, works, or services, all
procurement processes will follow the same basic steps.
The basic steps of the procurement process are briefly described below, with some key rules or the
options relating to each method or type of procurement. This is shown diagrammatically in Annex
C.
Procurement Planning
Entities must plan their procurements each year, so as to be able to aggregate requirements into
larger contracts, gain economies of scale and avoid emergency procurements wherever possible.
Planning allows the Procuring and Disposing Entity to spread the procurement workload according
to its resources and also allows entities to undertake common procurement, where similar items
are purchased. Annual procurement plans any subsequent updates are submitted to Permanent
Secretary/ Secretary to the Treasury and the Authority and displayed on the entity notice board
and Authority website (Part IV, Section 58 of the Act; PPDA (Rules and Methods for Procurement
of Supplies, Works and Non-Consultancy Services) Regulations, 2014, Regulations 3-7).
Initiating Procurement Requirements
For any procurement process to be started, there should be a signed confirmation and approval
from the authorized official that funds will be available for the purchase. Procurement
requirements must be initiated using Form 5, which requires signature to confirm the availability
of funds and give approval for the procurement to proceed (Part IV, Section 59 of the Act; PPDA
(Rules and Methods for Procurement of Supplies, Works and Non-Consultancy Services)
Regulations, 2014, Regulation 3-4).
Selecting a Procurement Method

There are seven different methods of procurement, each with different conditions of use. The
estimated value of works, services and supplies is usually the key factor in deciding which
procurement method to use. Thresholds for use of each method are given in Guideline Reference
1/2014 as provided under (Section VI, Section 79 of the Act; PPDA (Rules and Methods for
Procurement of Supplies, Works and Non-Consultancy Services) Regulation, 2014, Regulation
6(4).
A summary of the thresholds is in the following table;
Estimated Value (UGX) Estimated Value (UGX) Estimated Value (UGX) Procurement Method
of Works of Consultancy Services of Supplies and Non-
Consultancy Services
Above 500 million Above 200 million (for Above 200 million Open Domestic Bidding
consultancy firms) or Open International
Above 50 million (for Bidding
individual consultants)
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Value greater than 200 Value greater than 100 Restricted Domestic
million but not to exceed million but not to exceed Bidding or Restricted
500 million 200 million International Bidding
Value greater than 10 Value greater than 50 Value greater than 5 Request for Quotation or
million but not to exceed million but not to exceed million but not to exceed Request for Proposal –
200 million 200 million (for 100 million without Expression of
consultancy firms) Interest (in case of
Value less than 50 million Consultancy Services)
(for individual
consultants)
Not to exceed 10 million Not to exceed 5 million Micro Procurement
Special thresholds for the procurement of medicines and other health supplies are in the table
below:
Method of procurement Threshold (Value in UGX) Conditions for use
Open Bidding Default method – may be used irrespective of Providers should be registered by
the value of procurement National Drug Authority except
where no registration has been
done
Restricted Bidding Above 2 billion for National Medical Stores Invite at least 5 bidders, unless
Above 500 million for other entities shortlist has less than 5.
Request for Quotations Above 1 billion for National Medical Stores Invite at least 3 quotations, unless
Above 100 million for other entities shortlist has less than 3 providers
Micro Procurement Above 100 million for National Medical Invite at least 3 quotations, unless
Stores providers are less than three
Above 5 million for other entities
Direct Procurement No limit Where there is only a single or sole
provider, where there is need for
continuity
Other factors may sometimes determine the choice of procurement method e.g. the urgency of the
requirements or limited number of potential providers (Section VI, Section 79 of the Act; PPDA
Regulations, 2014, Regulation 6). Procurements must not be split up to avoid the use of a
procurement procedure.
The methods are:
1. Open Domestic Bidding: Is the preferred method of procurement, as it is open to all bidders
following public advertising and involves maximum competition.
2. Open international bidding: Is similar to Open Domestic Bidding, except that a special
effort is made to attract foreign bidders.
3. Restricted Domestic Bidding: Is similar to Open Domestic Bidding, except that there is no
advertising, so bidders are invited from shortlists. It may be used where only a limited
number of providers exist, in emergency situations and for procurement under a certain value
threshold.
4. Restricted International Bidding: Is the same as Restricted Domestic Bidding, except that
shortlist includes foreign bidders.
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5. Quotations and Proposals Procurement: Is a simplified method, with quicker and simpler
procedures and documentation, intended primarily for low value procurement, which is
under a certain value threshold. It may also be used in emergency situations.
6. Micro Procurement: Is a very quick and simple method for very low value procurement,
which allows items to be purchased directly from a single provider, without competition and
with minimal documentation, where the value is under a certain threshold.
7. Direct Procurement: Is a method which allows items to be purchased directly from a single
provider without competition, regardless of their value, in exceptional circumstances only.
These circumstances include emergency situations, the items only being available from a
single provider and contract extensions within certain limits.
8. Force Account Mechanism: Is undertaking the works of a Procuring and Disposing Entity
using the personnel and equipment of the entity or another entity. The supplies to be used for
the assignment are procured in accordance with the PPDA Act. The Procuring and Disposing
Entity determines that the direct, indirect and overhead costs to be incurred are less than
would be incurred if the assignment was executed by a contractor. However, this condition
does not apply where there is an emergency situation or where no contractor is willing to
execute the assignment.
Drafting Solicitation Documents
All solicitation documents must be drafted using one of the standard solicitation documents issued
by the Authority. The standard documents include documents for high value or complex
requirements and Request for Quotations and Purchase Order documents for simple, low value
requirements. Different documents are provided for works, services and non-consultancy services.
The standard solicitation documents are listed on the Authority website. It is important to select
the most appropriate document before drafting begins. Before issue, the solicitation documents are
authorized by the Contracts Committee (Part III, Section 29 of the Act; PPDA (Rules and Methods
for Procurement of Supplies, Works and Non-Consultancy Services) Regulations, 2014,
Regulation 28(4). The User Guide guides on when each document should be used.
The standard bidding document has sections which must be used without changes e.g. the
instruction to bidders, which may only be modified through special conditions of contract (Part
V, Section 62 of the Act; PPDA (Rules and Methods for Procurement of Supplies, Woks and Non-
Consultancy Services) Regulations, 2014,Regulation 23(3)(b) provide details on solicitation
documents.
Solicitation documents must contain a statement of Requirements, which clearly defines what is
to be purchased by means of specifications, terms of reference, bills of quantities, drawings etc.
Statements of Requirements must include common specification standards issued by the
international recognized trade associations and professional bodies in the appropriate fields (Part
V, Section 61 of the Act; PPDA (Rules and Methods for Procurement of Supplies, Works and Non-
Consultancy Services) Regulations, 2014, Regulation 30).
Inviting Bids
The method for selecting bidders varies according to the procurement method used.
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For Open Bidding, bidders will be selected either by publication of a Bid Notice to offer the
opportunity to all interested bidders or through a prequalification where a short list of prequalified
bidders is generated (See Part V, Section 51, 64, 70 and 71, Part VI, Section 80-81 of the Act;
Regulations, 2014, Regulations 12-13).
For Restricted Bidding and Quotations and Proposals Procurement, bidders will be selected
from a shortlist. Bidders to include on a shortlist can be identified from the Authority’s Register
of Providers, market knowledge, previous experience of providers or through a previous
prequalification for a group of contracts (Part VI, Section 82-84 of the Act; PPDA (Rules and
Methods for Procurement of Supplies, Works and Non-Consultancy Services) Regulations, 2014,
Regulations 14-15 ).
For Direct Procurement, it is a method which allows items to be purchased directly from a single
provider without competition, regardless of their value, in exceptional circumstances only. These
circumstances include emergency situations, the items only being available from a single provider
and contract extensions within the limits with a maximum of 25% (Part VI, Section 85 of the Act;
For Micro Procurement, the item is purchased directly from a single provider and no written bid
is required (Part VI, Section 86 of the Act; PPDA (Rules and Methods for Procurement of Supplies,
Works and Non-Consultancy Services) Regulations, 2014, Regulation 16).
A minimum of three quotations must be sourced and details on how to invite bids and the minimum
bidding periods for various methods of procurement are provided (Part VI, Section 79 of the Act;
Regulations, 2014, Regulation 15):
The minimum periods within which bids must be submitted are as follows:
Method of Procurement Bidding Period (Working Days)
Open International Bidding 30
Open Domestic Bidding 20
Restricted International Bidding 20
Restricted Domestic Bidding 12
Request for Quotations 5
Micro Procurement Not Applicable
Direct Procurement Not Applicable
The minimum bidding period for the restricted bidding for medicines is 15 days (Part III, Section
40A of the Act; PPDA (Procurement of Medicines and Medical Supplies) Regulations, 2014,
Regulation 11(6)(4).
10
The minimum bidding periods for prequalification (Part V, Section 64 of the Act; PPDA (Rules
and Methods for Procurement of Supplies, Works and Non-Consultancy Services) Regulations,
2014, Regulation 20) are as follows:
Method of Procurement Bidding Period (Working Days)
Open International Bidding 20
Domestic Bidding 15
At any time before deadline for bid submission, a procuring and disposing entity may on its own
initiative or in response to a request for clarification by a bidder, modify the solicitation documents
by issuing an addendum. Correspondingly, the procuring and disposing entity should extend the
closing date (Part V, Section 65 of the Act; PPDA (Rules and Methods for Procurement of Supplies,
Works and Non-Consultancy Services) Regulations, 2014, Regulation 49(6).
Submission and receipt of bids
The Procuring and Disposing Entity may invite bids to be submitted using one of the four different
submission methods. The appropriate method will depend on the type of procurement and the
evaluation methodology used (Part V, Section 67 of the Act; PPDA (Rules and Methods for
Procurement of Supplies, Works and Non-Consultancy Services) Regulations, 2014, Regulation
56). The four methods are:
1. One stage – single envelope
2. One stage – two envelope
3. Two stage – two envelope
4. Two stage
Correct management of the receipt of bids is essential to a transparent procurement process, as it
ensures that no late bids are accepted. There are two methods of receiving bids and the choice is
at the discretion of the Procuring and Disposing Entity.
1. Bids can be received in person by staff of the Procuring and Disposing Entity, with the
staff issuing receipts for bids, marked with the date and time of receipt. Bids must be kept
in a secure place until the time for the public bid opening (Part VI, Regulation 59; PPDA
Regulations, 2014, Regulations 62-65).
2. Bids can be received in a Bid Box, bidders are responsible for placing their bid in the box
and staff seals the box at the date and time of the deadline. A Procuring and Disposing
Entity may choose to register bids and issue receipts before they are placed in the bid box.
Whichever method is used, it is essential that sufficient staff is available at the precise time and
date of the deadline to close bidding and ensure that no late bids are received. A member of the
Contracts Committee is required to witness the bid closing. A Procuring and Disposing Entity
should maintain a record of the bids received person on Form 11 or have a member of the
Procurement and Disposal Unit and the Contracts Committee sign the form to confirm that the box
was sealed at the precise time of the deadline. There are detailed rules on the receipt of bids (Part
11
V, Section 69 of the Act; PPDA (Rules and Methods for Procurement of Supplies, Works and Non-
Consultancy Services) Regulations, 2014, Regulations 59-60).
Public bid opening

All methods of procurement under open bidding and restricted bidding methods must have a public
bid opening and the Procuring and Disposing Entity must inform all bidders of the date, time and
location of the opening to enable them attend. At least a member of the Contracts Committee, or a
person nominated by the User Department is required to witness the public bid opening. It is
important that all staff involved in the bid agree on their respective responsibilities prior to the
opening, to ensure that it proceeds smoothly. The information to be read out at the public opening
must also be agreed on in advance and must be in accordance with the solicitation document (Part
V, Section 69 of the Act; PPDA (Rules and Methods for Procurement of Supplies, Wor ks and Non-
Consultancy Services) Regulations, 2014, Regulations 62-65. For Micro Procurement and request
for Proposals/Quotations, closed bid opening is allowed. The bidders are not invited to attend.
Evaluation
Evaluation is the process by which the best evaluated bidder is selected for award of contact from
among all the bids received. The evaluation process has to be concluded within 20 working days
for supplies and non-consultancy services and 40 working days for works, from the date of opening
bids. Evaluations must be conducted by a team of at least three staff, who are approved by the
Contracts Committee (Part V, Section 71 of the Act; PPDA (Evaluation) Regulations, 2014,
Regulation 5).
All evaluations consist of three stages:
1. Preliminary Examination: is a brief assessment of whether each bidder is eligible as per
the requirements of the solicitation document. This is used to eliminate unsuitable bidders,
such as those who are not registered companies or are not complying with legal requirements
such as the payment of tax (Part V, Section 70 of the Act; PPDA (Evaluation) Regulations,
2014, Regulations 16 and 22). .It also eliminates the weakest bids, such as those which don’t
contain the correct bid security or are not signed, etc.
2. Detailed Evaluation: determines whether bids are substantially responsive to the
commercial and technical requirements of the solicitation document and assessing its
technical quality, either by comparison to the specifications in the solicitation document or
by awarding merit points.
3. Financial comparison: Determines the evaluated price of each bid, following the correction
of any errors or inclusion of any necessary adjustments and determines the best evaluated
bid, which may be the lowest price, highest quality or best points score, depending on the
evaluation methodology.
There are five different evaluation methodologies. Depending on type of methodology and
circumstances, an appropriate evaluation methodology should be used (Part V, Section 71 of the
Act; PPDA (Evaluation) Regulations, 2014, Regulations 6-31). The five methodologies are
summarized below.
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1. Quality and Cost Based Selection- considers both the technical quality and the cost of each
bid, with the relative weighting of technical and cost elements decided in advance. In the
first stage, points are awarded to the technical quality of each bid, using predefined criteria
and maximum scores and bids which do not reach a predefined minimum technical score are
rejected. In the second stage, technically acceptable bids are awarded a final score, based on
the lowest best bid. The best evaluated bid is the one with the highest combined technical
and financial score.
2. Quality Based Selection- focuses on quality only, using merit points to determine the best
quality technical bid. The best quality bid is the best evaluated bid, regardless of price and
only the financial bid of the best technical scoring bidder is considered
3. Fixed Budget Selection- is used to obtain the highest quality bid which is within the
Procuring and Disposing Entity’s budget. Bidders are informed of the budget in the
solicitation document. Merit points are used to determine the best quality technical bid. The
best evaluated bid is the one which scores the most points and remains within the given
budget.
4. Least Cost Selection- is used to obtain the lowest priced bid which meets the technical
standard required by the Procuring and Disposing Entity. Merit points are used to determine
which bids meet the minimum technical standard required. The best evaluated bid is the
lowest priced one which meets this minimum technical standard.
5. Technical Compliance Selection- is also used to obtain the lowest priced bid which meets
the technical standard required by the procuring and Disposing Entity. Bids are compared to
the statement of requirements on a pass or fail basis to determine whether they meet the
technical standard required. The best evaluated bid is the lowest priced one which is
substantially responsive.
Post Qualification
The best evaluated bidders may be subject to post qualification to check whether they have the
capability and resources to effectively carry out the contract. Post qualification may only use the
criteria given in the solicitation document. Post qualification will typically look at the provider’s
experience, past performance, equipment of other facilities and financial situation. Where post-
qualification is conducted bidders may be rejected if they fail the post qualification assessment
Part V, Section 70 of the Act; PPDA (Evaluation) Regulations, 2014, Regulation 34.
Negotiation
Negotiations should not be carried out between a Procuring and Disposing Entity and a bidder
except where only one bid was received where competitive procurement method was used, direct
procurement was used or procurement is for consultancy services. Negotiations should only be
carried out where the best evaluated bid or proposal exceeds the budget of the Procuring and
Disposing Entity. In such circumstances, the Procuring and Disposing Entity should investigate
why the cost of the procurement exceeds the budget. The Procuring and Disposing Entity may
cancel the procurement process and request for new proposals; or negotiate with the best evaluated
bidder in order to obtain a reduction of the scope or the quantities of the procurement (Part V,
Section 74 of the Act). Negotiation teams are approved by the Contracts Committee (Part III;
Section 28 of the Act).
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Award Decision
Any recommendation to award a contract (with the exception of Micro Procurement) must be
submitted to the Contracts Committee for approval prior to any commitment being made. The
Contracts Committee will review the recommendations made, including the Evaluation Report and
the results of any post qualification or negotiations.
A decision by the Contracts Committee to approve a recommendation for award does not constitute
a binding contract (Part V, Section 76 (1) of the Act; PPDA (Contracts) Regulations, 2014,
Regulation 11).
Notice of Best Evaluated Bidder

Following an award decision by the Contracts Committee, the Procuring and Disposing Entity
must display a notice of Best Evaluated Bidder on the entity notice board and Authority website
for a certain period of time, before placing a contract. The notice must also be sent to all Bidders.
The notice must be published for a minimum of ten working days under Open Restricted Bidding
and a minimum of five working days under quotations and Proposals Procurement or Direct
Procurement. No notice is required under Micro procurement and where there is an emergency
situation (Part V Section 76(2) a & 76 (4) of the Act; PPDA (Rules and Methods for Procurement
of Supplies, Works and Non-Consultancy Services) Regulations, 2014, Regulation 16(1).
For the procurement of medicines and medical supplies, the notice should be published for a
minimum of five working days for open or restricted procurement method and three working days
for request for quotations method (Part III, Section 40A of the Act; PPDA (Procurement of
Medicines and Medical Supplies) Regulations, 2014, Regulation 13). For procurement of medicine
and medical supplies, notice of best evaluated bidder is not issued in case of direct procurement
method, micro procurement method, where only one bid is received under competitive
procurement and for procurement in an emergency situation.
Awarding a Contract
Following the Contract Committee’s award decision, Accounting Officer’s confirmation that the
contract price is not higher than the market price, the display of the Notice of Best Evaluated
Bidder, Accounting Officer’s conformation that the procurement is not subject to any
administrative review, the full amount of the funding is committed, relevant agencies like Attorney
General have made necessary approvals, a contract may be awarded. It is important to note that a
contact award is the point at which a legally binding contract is formed.
Contracts Management
Once a contract has been placed, it must be managed to ensure that the provider performs in
accordance with the terms and conditions of the contract and that the Procuring and Disposing
Entity meets all its obligations under the contract. Contracts management is the responsibility of
the User Department, but an external contracts manager may be appointed where appropriate.
14
The contracts manager, or other official stated in the contract, may issue contract variations or
change orders, where required, in accordance with the conditions of the contract. Where an
amendment to the contract is required, it must be passed to the Procurement and Disposal Unit for
preparation and must be approved by the Contracts Committee prior to issue. Individual contract
amendments must not increase the original contract value by more than 15%. Where more than
one amendment is issued, the cumulative value of all amendments must not increase the contract
value by more than 25% (Part III, Section 29(a) of the Act; PPDA (Contracts) Regulations, 2014,
Regulation 55(5).
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HOW TO CONDUCT DISPOSAL

PPDA (Disposal of Public Assets) Regulations, 2014 gives all the rules and methods of disposal.
The disposal process is shown diagrammatically in Annex D.
Disposal planning and initiating disposal requirements

Disposal requirements should be planned in order to maximize the number of assets which can be
disposed of at a time and reduce administration costs. Where appropriate, a board of survey can
be used to identify assets which need to be disposed of.
The disposal process must be started by means of a requisition, which must be signed by the
Accounting Officer to confirm that the asset may be sold.
In most cases, a valuation of assets should be obtained before the disposal starts. Where the cost
of obtaining a valuation is likely to be greater than the money obtained from the sale, no valuation
is required. Where appropriate, the valuation should be used to set a reserve price, below which
the asset will not be sold (Part V, Section 58-59 of the Act; PPDA (Disposal of Public Assets)
Regulations, 2014 Regulations 1-3).
Selecting a disposal method

There are eight methods of disposal, each of which is summarized below:
1. Public auction: this may be used where there is a high volume of assets to dispose of/or no
need to control who buys or uses the assets. Auctions must be conducted by a registered
auctioneer in accordance with normal auction practices.
2. Public bidding: this may be used for high value assets or where there are conditions or
restrictions attached to the sale. This follows similar rules as open bidding for procurement.
3. Sale to public officials: this is not encouraged, but may be used in limited circumstances,
such as when the assets are of low value or there is unlikely to be any benefit in using any
other method or where specific items are offered to the public officials of a Procuring and
Disposing Entity subject to internal advertisement and competition (Part V, Section 78 of the
Act; PPDA (Disposal of Public Assets) Regulations, 2014, Regulations 11-12).. It follows a
similar process to public bidding.
4. Direct negotiations: this allows sales directly to a single bidder, without competition, in
exceptional circumstances, such as where a potential buyer is the occupier or user of the asset
and should be given the first option to buy or where public interests are served by disposal
directly to a single bidder.
5. Trade-in: this may be used where it is an economic and efficient way to upgrade equipment.
Once the use of trade-in has been approved, it becomes an integral part of the relevant
procurement process.
6. Transfer to another Procuring and Disposing Entity: this may be used where another
Procuring and Disposing Entity can make further use of an asset. The cost and other
arrangements are agreed between the two entities, in writing, and signed by the Accounting
Officers.
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7. Conversion or classification of assets into another form; this may be used for public interest
reasons for where the assets have no value. This would typically be used for converting assets
into scrap metal.
8. Destruction is the least favored disposal method, but may be used for public interest reasons
or where no other is possible.
9. Donation; this is a new disposal method and will only be applicable for obsolete items where
no other form of payment can be obtained for the asset.
The first four methods follow a process similar to the procurement process of inviting bids,
evaluating and awarding a contract, this is described below. The other four differ more from the
standard process and are described more fully at the end of this section.
A Procuring and Disposing Entity should not dispose of a strategic asset without the consent of
the Minister of Finance Planning and Economic Development. A “strategic asset” means land, a
building, a ship, shares and any other asset as may be prescribed, belonging to the Government,
situated within or outside Uganda (Part VI, Section 87-88 of the Act).
Drafting solicitation documents

Solicitation documents must be drafted using the appropriate standard document issued by the
authority. The document must contain a description of the assets. Normally, the document must
state that the assets are sold on an “as is, where is” basis, which means that the Procuring and
Disposing Entity has no further liability for the condition of the asset after the sale. The Procuring
and Disposing Entity must therefore provide as accurate a description of the asset as possible and
must make arrangements for bidders to be able to inspect the assets prior to submitting bids.
Under Public Auction, no solicitation document is required, but any other document, such as an
auctioneer’s catalogue, must clearly state that the assets are sold on an “as is, where is” basis (Part
VI, Section 87(1) of the Act; PPDA (Disposal of Public Assets) Regulations, 2014 Regulation 12(5)
(b).
Inviting, Receiving and Opening Bids

The method of inviting bids depends on the disposal method used. For Public Auction and Public
Bidding, a public notice must be published, notifying the public of the date of the auction or where
to obtain bidding documents, as appropriate. Under sale to Public Officials, a notice must be
displayed on the procuring and disposing entities notice board in a location where all public
officials can see it.
Under Direct Negotiation, the solicitation document should be sent directly to the selected bidder.
The receipt of bids is the same for disposal as for procurement, with the exception of the Public
Auction method. Under Public Auction, bids are submitted orally to the auctioneer. For other
methods, bids can be received either in person or by use of a Bid Box.
For Public Bidding, a public bid opening must be held. For sale to public Officials, the bid opening
must be open to all public officials and follows the same procedure as a public bid opening (Part
VI, Section 79 of the Act; PPDA (Disposal of Public Assets) Regulations, 2014 Regulation 5-22).
17
Evaluation
Evaluations under disposal must be conducted by a team and an Evaluation Report produced, with
the, where the auctioneers determine the best evaluated bid and awards the contract at the auction.
There are two evaluation methodologies for disposal:
1. Evaluation based on price only; and
2. Evaluation based on price and other factors.
Evaluation based on price only is the preferred methodology. Other factors may only be taken into
account where there are end user or export restrictions or a need to attach conditions to the sale.
Where evaluation is based on price only, the Evaluation Team, or auctioneer, determines the
highest priced bid and this is the best evaluated bid.
Where evaluation is based on price and other factors, the other factors must be assessed on a pass
or fail basis wherever possible, but merit points may be used in exceptional circumstances. Where
other factors are taken into account, the evaluation must be conducted in accordance with the
methodology given in the solicitation document.
Where identical highest priced bids are submitted more than one bidder, the Procuring and
Disposing Entity must organize a re-bidding procedure for those bidders only.
The Evaluation Team must produce an Evaluation Report for the Contracts Committee,
recommending the best evaluated bid. Where the best evaluated bid is less than the reserve price,
if any was set, the Evaluation Team should submit recommendations as to the best action to take
(Part IV, Regulation 52 of the Act; PPDA (Disposal of Public Assets) Regulations, 2014,
Regulations 40-41). Commented [s6]: Section 52 of the PPDA ACT,
REGULATIONS 40 – 41 OF THE PPDA (DISPOSAL OF PUBLIC
Negotiations ASSETS) REGULATIONS
Under competitive methods of disposal, negotiations may be held on any conditions of sales, but
may not relate to the price of the bid. The price may be negotiated under Direct Negotiations.
Negotiations can only be carried in accordance with the. The procedure for negotiations is the
same as under procurement. The negotiations must be conducted by a team, approved by the
Contracts Committee. The team must plan their negotiations in advance and seek Contracts
Committee’s approval of the agreement reached, before committing the entity (Part V, Section 74
of the Act; PPDA (Disposal of Public Assets) Regulations, 2014, Regulation 43).
Contracts Award and Placement

With the exception of Public Auction, where a contract award is made by the auctioneer, all
contract award decisions are made by the Contracts Committee, in response to a recommendation
from the Procurement and Disposal Unit (Part III, Section 28 & 76 (3) of the Act; PPDA (Disposal
of Public Assets) Regulations, 2014, Regulation 41(5).
No notice of Best Evaluated Bidder is required under disposal. Following a Contracts Committee
decision, the contracts should be placed by means of a written contract document.
A procuring and disposing entity should not enter into contract with its members like members of;
Contracts Committee, Evaluation Committee, Board of Survey or employees, Accounting Officer,
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Minister responsible for the entity, member of governing body of the entity and a company where
a prohibited person indicated above has a controlling interest.
Contract Management
Under disposal, the manager’s responsibilities include obtaining payment for the asset from the
successful bidder, handing over the asset and any documentation to the buyer and obtaining a
signed receipt of the asset. The contract manager must also ensure that the Procuring and Disposing
Entity’s asset register is updated, that the payment is credited to the appropriate account and that
the Procuring and Disposing Entity doesn’t have any outstanding liabilities.
Disposal Process for Trade-In

Where the use of Trade–In is approved, the disposal process becomes an integral part of the
relevant procurement rules and certain additional rules on trade-in apply (Part VI, Section 87(1)
(g) of the Act; PPDA (Disposal of Public Assets) Regulations, 2014, Regulation 18).
Disposal Process for Transfer to another Procuring and Disposing Entity

Where the use of Transfer to another Procuring and Disposing Entity is approved, the two entities
should discuss and agree on terms and conditions of the transfer, including any costs to be paid.
The agreement must be recorded in writing, approved by the Contracts Committee and signed by
the Accounting Officers of both entities before the transfer takes place (Part VI, Section 87(1) (h)
of the Act; PPDA (Disposal of Public Assets) Regulations, 2014, Regulation 19).
Disposal Process for Conversion or Classification into another Form

Where the use of conversion or classification into another form method is approved, the Procuring
and Disposing Entity should identify a competent authority or provider to undertake the
conversation or classification. The competent authority or provider shall submit evidence of the
conversion or classification undertaken and this will be part of the record of disposal proceedings
(Part VI, Section 87(1) (f) of the Act; PPDA (Disposal of Public Assets) Regulations, 2014,
Regulation 16).
Disposal Process for Destruction of Assets

Where the use of destruction of assets method is approved, the Procuring and Disposing Entity
should identify a suitable competent authority or provider to undertake the destruction. The
Accounting Officer will give approval prior to destruction. After undertaking the destruction, the
competent authority or provider shall issue a certificate of destruction to the procuring and
disposing entity and this will be part of the record of disposal proceedings (Part VI, Section 87(1)
(e) of the Act; PPDA (Disposal of Public Assets) Regulations, 2014, Regulation 14).
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HOW TO FILE A COMPLAINT
How to File a Compliant

A bidder who is aggrieved by a decision of a Procuring and Disposing Entity or Authority may
file a complaint, and seek administrative review. Once a complaint is filed, it has to be investigated
in specified time (Part VII. Sections 89-91 of the Act; PPDA (Administrative Review) Regulations,
2014, Regulations 6(4) and 10(b)).
A dissatisfied bidder has three possible tiers to go through in seeking an administrative review:
Tier 1: Complaint to Accounting Officer
A bidder, upon payment of a prescribed administrative review fee to the Procuring and Disposing
Entity (Schedule of fees for administrative review is in Appendix E) should, in writing, be
addressed to the Accounting Officer of the Procuring and Disposing Entity, and copy to the
Authority, within ten working days from the date that the bidder first became aware of the
circumstances leading to the complaint.
On receiving the complaint, the Accounting Officer immediately suspends the procurement
proceedings and makes a decision in writing within fifteen working days, which should be copied
to the Authority (Part VII, Section 90(4) of the Act; PPDA (Administrative Review) Regulations,
2014, Regulation 5).
Tier 2: Complaint to the Authority
Where an Accounting Officer does not make a decision within fifteen working days or the bidder
is not satisfied with the decision made, the bidder may make a complaint to the Authority within
ten working days from the date of communication of the decision by the Accounting Officer.
On receiving the complaint, if the Authority does not dismiss the compliant, the Authority should
notify the concerned Procuring and Disposing Entity of the complaint and suspend any further
action thereon by the Procuring and Disposing Entity until the matter is settled.
The Authority should use the records of the procurement or disposal process from the Procuring
and Disposing Entity, consider information and evidence provided, information given by staff of
the Procuring and Disposing Entity and interested bidders and any other relevant information to
review the decision of the Procuring and Disposing Entity and give its decision within twenty one
working days (Part VII, Section 91(4) of the Act). The Administrative Review fee is refundable if
the complaint is upheld, following completion of the Administrative Review process (Part VII of
the Act; PPDA (Administrative Review) Regulations, 2014, Regulations 11).
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Tier 3: Complaint to the PPDA Appeals Tribunal

Where the bidder is not satisfied with the decision of the Authority or who alleges existence of
conflict of interest in respect of the matter before the Authority, such a bidder may appeal against
the decision to the PPDA Appeals Tribunal (Part VIIA of the Act; PPDA (Administrative Review)
Regulations, 2014, Regulation 10). The Tribunal can also review the decision of the Authority
where a Procuring and Disposing Entity or any person whose rights are adversely affected by a
decision made by the Authority.
Once the Tribunal receives a complaint, it may suspend any action by the Procuring and Disposing
Entity till a decision is made, direct the concerned Procuring and Disposing Entity to do or redo
any wrong part of the procurement or disposal process, terminate the procurement or disposal
process, order for compensation to the aggrieved bidder.
The Tribunal will make a decision in writing; to affirm, vary or set aside the decision of the
Authority within ten working days after receiving an application for review.
A party to proceedings before the Tribunal may be aggrieved by the decision of the Tribunal. Such
a party may within thirty days after being notified of the decision of the Tribunal or within such
further time as the Court may allow, lodge a notice of appeal with the Registrar of the High Court.
21
WHAT DOCUMENTS DO I HAVE TO USE?
Standard Forms and Documents for Procurement and Disposal

The authority issues standard forms and documents which must be used for all procurement and
disposal activities. These are listed in the Schedules of the Regulations. Forms 1 -49, sample price
adjustment formula and fees for administrative review. The standard form and documents are
issued electronically, as well as in hard copy, to facilitate their use by procuring and Disposing
Entities.
Annex E contains a summary of all the standard forms, including the purpose of each form and the
procurement or disposal method or other purpose for which it should be used.
Reporting Requirements
Procuring and Disposing Entities are required to submit various reports to the Authority, to enable
it monitor procurement and disposal activities on a government wide basis. Form 2 in the schedule
provides the details to report on and format to be used and the frequency of reporting.
Reports that should be submitted on a monthly basis, on procurement and disposal activities
undertaken by the Procuring and Disposing Entity.
Obligation to provide information to the Authority

Procuring and Disposing Entities are required to provide documents, records and reports to the
Authority in respect of any aspect of the public procurement and disposal process where a breach,
mismanagement or collusion has been alleged, reported or proven against any Procuring and
Disposing Entity or provider. The Authority also powers to summon witnesses, commission or
undertake investigations (Part II, Section 8 of the Act; PPDA Regulations, 2014, Regulation 14).
Procuring and Disposing Entities are also required to submit information which the Authority
needs to display on its website. This includes bid notices (Part VI, Section 79 of the Act; PPDA
Regulations, 2014, Regulation 14), notice of best evaluated bidder (Part VI, Section 79 of the Act;
PPDA (Contracts) Regulations, 2014, Regulation 4(1) public invitation notice and notification of
public auction (Part VI, Section 79 of the Act; PPDA (Disposal of Public Assets) Regulations,
2014, Regulation 5(5).
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ANNEX A: LEGAL FRAMEWORK FOR PUBLIC PROCUREMENT AND DISPOSAL

OF PUBLIC ASSETS
PUBLIC PROCUREMENT Passed by parliament

Establishes by the public procurement and disposal of public Assets Authority, as a regulatory
AND DISPOSAL OF
body
PUBLIC ASSETS ACT 2003 Contains: frame work of rules and procures for both procurement and disposal
Authorises: the issue of Regulations and Guidelines
PUBLIC PROCUREMENT Issued by the ministry of finance

AND DISPOSAL OF PUBLIC Contains detailed rules and procedures for both procurement and disposal for
ASSETS REGULATIONS the operation of both the Authority and Procuring and Disposing Entities.
2014 Includes schedules with standard forms
Issued by the Authority

GUIDELINES Contains additional details, procedures and arrangements which are likely to
change over time
Includes guidelines on thresholds, reference numbers, securities, etc.
Issued by the Minister for Finance as Schedules to the Regulations

PROCUREMENT AND
Used to document and record procurement and disposal process
DISPOSAL FORMS Includes standard forms for submitting reports to the Authority and for
notices for publication
STANDARD Issued by Authority with approval of Solicitor General

Contains standard invitation & contract documents for procurement of all
SOLICITATION
values
DOCUMENT Includes documents for disposal
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ANNEX B: WHO DOES WHAT?
1. Appoints Board members

2. Receives Authority reports and
Minister for submits to Parliament (S. 11 of the Act)
Finance
1. Advises Government on policy
2. Issues standard documents
Board Public Procurement 3. Monitors and audits entities
and Disposal of 4. Coordinates capacity building
ED 5. Records and analyses data
Public Assets
(Section 7 of the Act)
Authority
Staff
Approves appointments of Contracts
Committee members (S.27(2) of the Act)
PS/ST or Board
Supervises procurement and disposal – like market price
checks
Board/ Tribunal Confirm and commit funding
Investigates complaints (S.26 of the Act)
Approves key documents and

recommendations
Reviews reports
Accounting Officer (Section 27-28 of the Act)
Permanent department of professionals (PDU)

Contracts Committee 1. Select procurement methods
2. Prepare solicitation documents
3. Manage evaluation and negotiation teams
4. Prepare contracts & contract amendments -
Procurement User (Section 31-32 of the Act)
and Disposal Dept
Unit Existing Department (Section 34 and 35 of the
Act)
1. Initiate requirements
2. Provide technical input
Evaluation Negotiatio 3. Manage contracts
Teams n Teams Team created for each assignment
Conduct evaluations and negotiations
Section 37 of the Act
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ANNEX C: THE PROCUREMENT PROCESS

Procurement Plans 1. Open Domestic
Bidding
2. Open International
Assessment of Market Price Bidding
Use appropriate 3. Restricted
Standard Solicitation Requisitions International Bidding
Document for Works, 4. Restricted
Services or Supplies Select Procurement Method International Bidding
5. Micro Procurement
6. Direct Procurement
1. In Person Invite Bids
2. By Bid Box 1. Bid Notice
Receive Bids 2. Pre-qualification
3. Shortlist
Three Stages: Public Bid Opening 4. Single or Sole
1. Preliminary Source
Examination
2. Detailed Evaluation 1. Quality & Cost
Evaluation Based Selection
Post Qualification (if applicable) 2. Quality Based
3. Financial
Comparison Selection
Negotiation (if applicable) 3. Fixed Budget
Selection
4. Least Cost Selection
Award Decision 5. Technical
Compliance
Best Evaluation Bidder Notice – if Selection Selection
applicable 6.
1. Contract
Variations Award Contract Letter of Bid Acceptance
2. Contract Contract Document
Amendments Contract Management
25
ANNEX D: THE DISPOSAL PROCESS
Trade-In; include in Compile Details of Items for

Conversion or
procurement Disposal
Classification to
process Requisition
another Form
Transfer to another Destruction of Asset
entity Obtain Valuation (if necessary)
Identify official or
provider and cost
Agree in writing with Select Disposal Method
recipient entity
1. Public Auction Proceed with
2. Public Bidding Conversion or
Transfer
3. Sale to Public Officers Destruction
4. Direct Negotiations
Use appropriate
Standard Solicitation 1. Public Invitation
Document (no Draft Solicitation Document Notice/
document required for 2. Notification of
Public Auction) Invite Bids Auction
Allow Inspection of Assets 3. Non Public
Invitation Notice
Oral for Public Auction 4. Single Source
Written for other
Receive Bids
methods
Bid Opening Public Bid Opening
except for Sale to
1. Based on Price Public Officials
Only Evaluation
2. Based on Price
and other factors 1. By the Auctioneer
Negotiations (if applicable) for Public Auction
2. By the Contracts
Committee for the
Award Decision other methods
Oral Contract for Public
Auction Key Responsibilities
Written contract for Award and Place Contract Obtain Payment
other methods Handover Assets & any
Contract Management Documents
26
ANNEX E: FEES FOR ADMINISTRATIVE REVIEW

No Value of procurement Fees payable for administrative
review in Shillings
1 Procurements or disposal of a value of up to shillings 100,000,00 500,000
2 Procurements or disposal of a value of more than shillings 1,500,000
100,000,000 up to shillings 500,000,000
500,000,000 up to shillings 1,000,000,000
1,000,000,000 up to shillings 50,000,000,000
50,000,000,000 up to shillings 100,000,000,000
100,000,000,000
27
ANNEX F: SUMMARY OF STANDARD FORMS

The Standard Forms are grouped as follows:
Number Sequence Category of Forms
Form 1-4 PDE Regulations
Form 5-12 Rules and Methods for Procurement of Supplies, Works and Services
Form 13-17 Evaluation
Form 18-26 Consultancy services
Form 27 Out of the country
Form 28-48 Disposal
Form 49 Contracts
The table below provides a summary of each of the Forms, including the purpose of the form, the
type and method of procurement for which it should be used. Forms are suitable for works,
services and supplies, unless stated otherwise.
Form Form Name Purpose of the Form Applicable Method
No and Type of
Procurement
PDE Regulations
1 Letter of appointment to ContractsUsed to appoint members of All methods and types
Committee the Contracts Committee
2 Monthly report on procurement To report, on a monthly basis All methods and types
activities undertaken in the
Procuring and Disposing
Entity
3 Delegation of procurement functions by Request of procurement All methods and types
Accounting Officer functions by Contracts
Committee/ Procurement
and Disposal Unit to a sub
division or member of staff,
including conditions of
delegation and decision of
Accounting Officer
4 Delegation of disposal functions by Request of disposal All methods and types
Accounting Officer functions by Contracts
Committee/ Procurement
and Disposal Unit to a sub
division or member of staff
including conditions of
delegation and decision of
Accounting Officer
Rules and Methods for Procurement of Supplies, Works and Services
5 Request for approval of procurement and To start off the procurement All types and methods
submission to Contracts Committee process, by documenting
what is required, confirming
availability of funds and
authorizing the procurement
6 Request by the Procurement and Disposal
Unit for approval of pre- qualification
7 Report of assessment and prequalification To document the pre- Open (Domestic or
evaluation qualification process and International)
results Biddings or a pre-
28
qualification for a
group of contracts
8 Record of sale or issue of bidding documents To record solicitation Open (Domestic or
or addenda document issued to bidders international) Bidding
and payment of the fee restricted (Domestic or
International) Bidding
9 Request for approval of addendum to
bidding document
10 Record of minutes of the pre-bidding To record the proceeds of Open (domestic or
meeting any pre-bid meeting, international) Bidding
including the attendance and Restricted(domestic or
the issues discussed international) Bidding
unlikely under any
other method
11 Record of bids received To record bids receive and All methods
certify that no late bid were
accepted where no bid box
is used
12 Record of bid opening To document public bid All methods
opening, including (Excluding Micro
attendance at the opening, procurements and
bidder’s names and any request for
other relevant details, such Quotations)
as bid securities received or
prices read out.
Evaluation
13 Declaration to abide by Code of Ethical For Evaluation Committee All methods and types
Conduct in business members to declare that they
will do their work as per
code of conduct and that they
have no conflict of interest
14 Technical evaluation report under quality To document the evaluation All methods
and cost based evaluation method process and results under
quality and cost based
evaluation method
15 Record of financial bid opening
16 Evaluation report under technical To document the evaluation All methods
compliance method process and results under
technical compliance
method
17 Financial evaluation report under quality and To document the financial All methods
cost based evaluation method evaluation process and
results under quality and cost
based evaluation method
Consultancy Services
18 Requisition for procurement for consultancy To start the procurement All methods
services and submission to Contracts process and to seek approval
Committee by Contracts Committee
19 Evaluation report for expression of interest To document the evaluation All methods under
for consultancy services process and results under expression of interest
consultancy services
20 Record of issue of request for proposals or To record request for All methods
addenda proposals or addenda issued
21 Record of minutes of pre proposal meeting To record proceedings of the All methods
pre-proposal meeting
29
22 Record of receipt of expression of interest To record which expressions All methods

/proposals of interest/ proposals have
been received
23 Record of opening of technical proposals To document opening of All methods
technical proposals and
relevant details
24 Technical evaluation report for consultancy To document the evaluation All methods
services process and results under
25 Record of financial proposal opening To document opening of All methods
financial proposals
26 Evaluation report for consultancy services To document the evaluation All methods
process and results under
Out of the Country
27 Quarterly report on procurement and To document contracts All methods
disposal contracts awarded, amended or varied,
completed, micro
procurements and disposal
Disposal
28 Requisition for disposal To start off the disposal All methods and types
process and to provide
details of the asset to be
disposed
29 Request by the Procurement and Disposal Request for approval of Public bidding method
Unit to Contracts Committee for disposal by disposal by public bidding
public bidding
30 Record of issue or sale of bidding documents To record the bidding Public bidding, sale to
or addenda documents/ addenda issued public officials, direct
or sold negotiations, public
bidding, direct
negotiations, donation
31 Request by the Procurement and Disposal Request for approval of Public auction
Unit to Contracts Committee for disposal by disposal by public auction
public auction
32 Request by the Procurement and Disposal Request for approval of Direct negotiations
Unit to Contracts Committee for disposal by disposal by direct
direct negotiations negotiations
33 Request by the Procurement and Disposal Request for approval of Sale to public officers
Unit to Contracts Committee for disposal by disposal by sale to public
Sale to public officers officers
34 Request by the Procurement and Disposal Request for approval of destruction
Unit to Contracts Committee for disposal by disposal by destruction
destruction
35 Approval of destruction of public assets To communicate the Destruction method
approval of destruction
decision
36 Request of the Procurement and Disposal Request for approval of Conversion or
Unit to Contracts Committee for disposal by disposal by conversion or classification of asset
conversion or classification of asset into classification of asset into into another form
another form another form
37 Certificate of conversion or classification of Evidence of the conversion Conversion of
asset into another form or classification undertaken classification method
30
38 Request by the Procurement and Disposal Request for approval of Trade-In

Unit to Contracts Committee for disposal by disposal by Trade-In
Trade-In.
39 Request by the Procurement and Disposal Request for approval of Transfer to another
Unit to Contracts Committee for disposal by disposal by Transfer to Procuring and
transfer to another Procuring and Disposing another Procuring and Disposing Entity
Entity Disposing Entity
40 Agreement for the transfer of an asset to To document arrangements, Transfer to another
another Procuring and Disposing Entity terms, or any agreement for Procuring and
the transfer of an asset Disposing Entity
41 Request for Procurement and Disposal Unit Request for approval of Donation
to Contracts Committee for disposal by disposal by donation
donation
42 Confirmation of donation of asset to confirm that the asset has Donation
been donated
43 Record of receipt of bids or bid closing To confirm that the bidding Public bidding, sale to
was closed at the precise public officials, direct
time of the deadline of negotiations
submission of bids
44 Record of bid opening To document key details of Public bidding, sale to
opened bids like name and public officials, direct
address of bidder, currency, negotiations
bid securities and prices read
out
45 Disposal evaluation report To document the evaluation Public bidding, direct
process and results where the negotiations
evaluation is based on price
and other factors
46 Negotiation plan Request by Evaluation Public bidding, sale to
Committee to Contracts public officials, direct
Committee with issues for negotiations
negotiation, objective and
negotiation parameters
47 Record of public auction To record the result of any Public auction
public auction held, where
an alternative format is
provided by the auctioneer.
48 Monthly report on disposal To document monthly All methods
disposal proceedings
Contracts
49 Contract management plan For the contract manager to All methods
record which contract events (excluding Micro
should take place when, to procurement)
facilitate proactive contracts
management
31
Summary of Procurement and Disposal Forms and Regulations from Initiation to Contract
Management Stage
The summary below provides the steps of the procurement and disposal process and the relevant
Regulations and Forms.
Procurement proceedings activity PROVISION IN THE ACT/ REGULATIONS
FORM NUMBER
INITIATION OF PROCUREMENT REQUIREMENT AND CHOICE OF PROCUREMENT METHOD
1 User to document the procurement requirement, confirm Section 59 of the Act

funding and obtain authorization for the procurement by PPDA (Rules and Methods for Procurement of
completing a requisition form. Pass completed form to Supplies, Woks and Non-Consultancy
Procurement and Disposal Unit Services) Regulations, 2014, Regulation 3
Form 5
2 Assess the market price Section 26(4) of the Act
PPDA (Rules and Methods for Procurement of
Supplies, Woks and Non-Consultancy Services)
Regulations, 2014, Regulation 5
3 Select the appropriate method of procurement Section 79 of the Act
4 Consider whether prequalification is required PPDA (Rules and Methods for Procurement of
Regulations, 2014, Regulation 12 and 13
Form 6
5 Request approval from the Contracts Committee for the PPDA (Rules and Methods for Procurement of
choice of procurement method Supplies, Woks and Non-Consultancy Services)
Form 5
6 Obtain Contracts Committee approval for the choice of Section 79 of the Act;
procurement method prior to drafting pre-qualification or PPDA (Rules and Methods for Procurement of
bidding documents Supplies, Woks and Non-Consultancy Services)
PRE-QUALIFICATION (WHERE APPLICABLE)
7 Draft an Invitation to Pre-qualify Notice and if required, PPDA (Rules and Methods for Procurement of
choice of procurement method Supplies, Woks and Non-Consultancy Services)
Regulations, 2014, Regulation 19(1)
8 Consider publication(s) for pre-qualification notice which PPDA (Rules and Methods for Procurement of
must be published in at least one publication of wide Supplies, Woks and Non-Consultancy Services)
national circulation Regulations, 2014. Regulation 19(2)
9 Consider advertising period, which must be a minimum of PPDA (Rules and Methods for Procurement of
4 working days and bidding period, which must be a Supplies, Woks and Non-Consultancy Services)
minimum of 10 working days Regulations, 2014, Regulation 46
10 Request approval from Contracts Committee for the pre- PPDA (Rules and Methods for Procurement of
qualification notice and pre-qualification document, if Supplies, Woks and Non-Consultancy Services)
applicable Regulations, 2014Regulation 19(7)
Form 6
11 Obtain Contracts Committee approval for the pre- PPDA (Rules and Methods for Procurement of
qualification notice and document prior to their issue. Supplies, Woks and Non-Consultancy Services)
32
12 Advertise pre-qualification notice in appropriate PPDA (Rules and Methods for Procurement of
13 publications and on the procurement and Disposal Notice Supplies, Woks and Non-Consultancy Services)
Board. Regulations, 2014, Regulation 19
Issue any pre-qualification document and receive

submissions.
SOLICITATION DOCUMENTS AND SELECTION POTENTIAL BIDDERS
14 Prepare or finalise Statement of Requirements, consisting Section 60 of the Act

of technical specification. PPDA (Rules and Methods for Procurement of
Regulations, 2014, Regulation 24-27
15 Draft bidding document. Section 62 of the Act

16 Draft invitation to bid Notice, unless pre-qualification was PPDA (Rules and Methods for Procurement of
undertaken. Supplies, Woks and Non-Consultancy Services)
Regulations, 2014. Regulation 42
Standard Bid Notice
17 Consider publication (s) for bid notice, which must be at PPDA (Rules and Methods for Procurement of
least in one publication of wide national circulation. Supplies, Woks and Non-Consultancy Services)
Standard Bid Notice
18 Consider the bidding period, which should be sufficient to Section 64 of the Act
allow bidders to prepare and submit their bids. The bidding PPDA (Rules and Methods for Procurement of
period should not be reduced with the aim of limiting Supplies, Woks and Non-Consultancy Services)
competition
19 Consider sale cost, if any, of the bidding document PPDA (Rules and Methods for Procurement of
20 Evaluate pre-qualification submissions, if pre- PPDA (Rules and Methods for Procurement of
qualification was undertaken Supplies, Woks and Non-Consultancy Services)
Form 7
21 Draft shortlist of qualified providers if pre-qualification Section 63 of the Act
was undertaken PPDA (Rules and Methods for Procurement of
22 Consider membership of Evaluation Team PPDA (Evaluation) Regulations, 2014,

Regulation 3
23 Obtain Contracts Committee approval for the (1) draft Section 31(a) of the Act
bidding document, (2) Invitation to Bid Notice or shortlist,
and (3) proposed Evaluation Team.
33
24 Obtain Contracts Committee approval for the (1) draft Section 28-29 of the Act
bidding document (2) Bid Notice or shortlist
BIDDING, BID RECEIPT AND BID OPENING

25 Advertise Bid Notice, if applicable in appropriate Section 28-29 of the Act
publications and on the Procurement and Disposal Notice PPDA (Rules and Methods for Procurement of
Board Supplies, Woks and Non-Consultancy Services)
26 Prepare Addenda to bidding documents if required PPDA (Rules and Methods for Procurement of
27 Request approval from Contracts Committee for any PPDA (Rules and Methods for Procurement of
addenda to bidding documents Supplies, Woks and Non-Consultancy Services)
Form 9
28 Obtain approval from Contracts Committee for any Section 28-29 of the Act
addenda to bidding documents prior to their issue
29 Record the issue of any addenda to bidding documents PPDA (Rules and Methods for Procurement of
Form 8
30 Hold a pre- Bid Meeting where necessary PPDA (Rules and Methods for Procurement of
31 Receive Bids until the deadline for bidding, either in Section 69 of the Act
person or using a bid box PPDA (Rules and Methods for Procurement of
32 Hold a public bid opening Section 69 of the Act
33 Display bid opening record on procurement and disposal Supplies, Woks and Non-Consultancy Services)
Notice Board Regulations, 2014, Regulation 62-65
EVALUATION
34 Obtain approval of the Evaluation Team prior to Section 28, 29 and 71 of the Act
commencement of evaluation. PPDA (Evaluation) Regulations, 2014,
Regulation 3
35 Clarify bid details with bidders if required Section 73 of the Act
PPDA (Evaluation) Regulations, 2014,
Regulation 10
36 Conduct a preliminary examination to determine whether Section 70 of the Act
bidders are eligible and compliant to the instructions and PPDA (Evaluation) Regulations, 2014,
requirements of the bidding document. Reject any non- Regulation 16 & 22
responsive bids
37 Conduct a detailed examination to determine whether PPDA (Evaluation) Regulations, 2014,

bidders are eligible and compliant to the instructions and Regulation 19 & 23
requirements of the bidding document. Reject any non-
responsive bids
34
38 Conduct a financial comparison to determine the lowest PPDA (Evaluation) Regulations, 2014,
priced, eligible, compliant, substantially responsive bid Regulation 30
which will be the best- evaluated bid Form 17
39 Consider whether post-qualification is required PPDA (Evaluation) Regulations, 2014,

Regulation 34
40 Consider whether negotiations are required. If so consider Section 74 of the Act

the membership of the negotiation team and the objectives PPDA (Evaluation) Regulations, 2014,
of the negotiations Regulation 35(2b)
41 Evaluation Team to compile Evaluation Report indicating PPDA (Evaluation) Regulations, 2014,
1) The Best Evaluated Bidder 2)Whether negotiations are Regulation 35
required and 3)Whether Post Qualification is required Form 17
42 Request Approval from the Contracts Committee of the PPDA (Evaluation) Regulations, 2014,
Evaluation Report, including 1) the recommendations of Regulation 35 Form 17, Form 16
the Best Evaluated Bid (2) Any recommended post
qualifications (3) Any recommended negotiations and the
negotiation team
43 Obtain Contracts Committee approval for the evaluation Section 28-29 of the Act
report and recommendations prior to undertaking any post-
qualification or negotiations or awarding the contract.
AWARD OF CONTRACT RECOMMENDATION

44 Undertake post – qualification if required, in accordance Section 71 of the Act
with the criteria in the bidding document PPDA (Evaluation) Regulations, 2014,
Regulation 34
45 Negotiation team to hold negotiation if required PPDA (Evaluation) Regulations, 2014,

Regulation 35(2)
46 Prepare a Notice to Best Evaluated Bidder, unless not Section 76(1) of the Act
required Best Bidder Notice
47 Prepare a Letter of Bid Acceptance if required PPDA (Evaluation) Regulations, 2014,
Regulation 52(3d) Standard Letter of Bid
Acceptance
48 Request the Contracts Committee for 1) the results of any PPDA (Evaluation) Regulations, 2014,
post- qualification (2) the outcome of any negotiations and Regulation 52(3d)
3) the ward of contract recommendation
49 Obtain contract committee approval for the award of Section 28-29 of the Act
contract recommendation
CONTRACT PLACEMENT
50 Publish the Notice of the Best Evaluated Bidder on the Section 76 (1) of the Act
Procurement and Disposal Notice Board and Authority Best Evaluated Bidder Notice
website for a minimum of 10 working days prior to
contract place
35
51 Assess the market price to ensure that the price quoted by Section 26(4) of the Act
the bidder does not exceed the earlier established price PPDA (Contracts) Regulations, 2014,
Regulation 7(1b)
52 If using a letter of bid acceptance, submit it to the Section 76(3) of the Act
Accounting Officer to be signed, with instructions that it PPDA (Contracts) Regulations, 2014,
should not be issued until a minimum of 10 working days Regulation 5
Standard Letter of Bid Acceptance
have elapsed from the date of publication of the Notice of
Section
Best Evaluated Bidder, and subject to confirmation that the
procurement is not subject to administrative review.
53 If using a Letter of bid acceptance, commit funds for the Section 76(3) of the Act
total contract value prior to issuing the letter of bid PPDA (Contracts) Regulations, 2014,
acceptance Regulation 8-9
54 Draft the contract PPDA (Contracts) Regulations, 2014,

Regulation 10
Contract from the bidding document
Section
Section 76 of the Act
55 Request approval of from the Contracts Committee for the PPDA (Procuring and Disposing Entities)
draft contract document Regulations, 2014, Regulation 12
56 Obtain contract committee approval for the contract Section 76(3) of the Act
document prior to its issue PPDA (Procuring and Disposing Entities)
57 If not done previously, commit funds for the total contract Section 76(3) of the Act
value prior to contract placement PPDA (Contracts) Regulations, 2014,
Regulation 8-9
58 Obtain clearance for the contract from the Attorney PPDA (Contracts) Regulations, 2014;
General, where required, prior to issue of contract Regulation 7(f)
document
59 Submit the contract document to the Accounting Officer Section 76(3) and 89-91 of the Act
to be signed, with instructions that it should not be issued Contract from the bidding document
until a minimum of 10 working days have elapsed from the
date of publication of the notice of Best Evaluated Bidder
, and subject to confirmation that the procurement is not
subject to administrative review
60 Display a notice of contract award on the Procurement and Notification of Contract Award
Disposal Notice Board
61 Include all contracts placed on the monthly report to the Section 31(r) of the Act
Authority PPDA (Procuring and Disposing Entities)
Regulations, 2014, Regulation 20.
Form 2
CONTRACT MANAGEMENT
36
62 Hand over a copy of the contract to the User Department – PPDA (Contracts) Regulations, 2014,
transfer responsibility to the User Department Regulation 51
63 User Department to appoint a contract manager PPDA (Contracts) Regulations, 2014,

Regulation 51
64 Contract manager to draft a contract implementation plan PPDA (Contracts) Regulations, 2014,
and copy to the Procurement and Disposal Unit Regulation 51(3)
Form 49
65 User Department to manage the contract PPDA (Contracts) Regulations, 2014,
Regulation 51
66 Contract Manager (or authorized official) to issue any PPDA (Contracts) Regulations, 2014,
variations allowed with the terms and conditions of the Regulation 53(3b)
contract User format specified in contract
67 Contract Manager to pass details of any required contract PPDA (Contracts) Regulations, 2014,
amendments to the Procurement and Disposal Unit Regulation 53(3c)
68 If required, draft any contract amendments. Any additional Section 62 of the Contract
supplies must not increase the value of the contact by more PPDA (Contracts) Regulations, 2014,
than 15% of the original value. The cumulative value of all Regulation 55(4-5)
contract amendments must not increase the value of the
contract by more than 25%of the original value
69 Request approval from the contract committee for any PPDA (Contracts) Regulations, 2014,
contact amendments Regulation 55
70 Obtain Contracts Committee approval for any contract Section 28 and 29 of the Act
amendments prior to their use
71 Commit funds and obtain clearance from the Attorney PPDA (Contracts) Regulations, 2014,
General if required (if value is above UGX 200,000,000) Regulation 7(1f)
72 Include all contract amendments and variations on the PPDA (Contracts) Regulations, 2014,
monthly report to the authority Regulation 53(3g)
73 User Department to report any substantial departures from PPDA (Contracts) Regulations, 2014,
the terms and conditions of the contract to the Procurement Regulation 53(3c)
and Disposal Unit
74 Procuring and Disposing Entity to arrange all payments PPDA (Contracts) Regulations, 2014,
Regulation 42
75 Include all contracts completed on monthly report to the Section 31 (p and r) of the Act
authority
37

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Public Procurement and Disposal of Assets- User Guide

The PPDA (Procurement of Consultancy Services) Regulations, 2014 is about procurement of

WHO DOES WHAT?

Procuring and Disposing Entities

Procurement and Disposal Unit

Bidders and Providers

Attorney General/ Solicitor General

HOW TO CONDUCT PROCUREMENT

Initiating Procurement Requirements

Selecting a Procurement Method

Not to exceed 10 million Not to exceed 5 million Micro Procurement

Public bid opening

Notice of Best Evaluated Bidder

HOW TO CONDUCT DISPOSAL

Disposal planning and initiating disposal requirements

Selecting a disposal method

Drafting solicitation documents

Inviting, Receiving and Opening Bids

Contracts Award and Placement

Disposal Process for Trade-In

Disposal Process for Transfer to another Procuring and Disposing Entity

Disposal Process for Conversion or Classification into another Form

Disposal Process for Destruction of Assets

HOW TO FILE A COMPLAINT

How to File a Compliant

Tier 1: Complaint to Accounting Officer

Tier 2: Complaint to the Authority

Tier 3: Complaint to the PPDA Appeals Tribunal

WHAT DOCUMENTS DO I HAVE TO USE?

Standard Forms and Documents for Procurement and Disposal

Obligation to provide information to the Authority

ANNEX A: LEGAL FRAMEWORK FOR PUBLIC PROCUREMENT AND DISPOSAL

PUBLIC PROCUREMENT Passed by parliament

PUBLIC PROCUREMENT Issued by the ministry of finance

Issued by the Authority

Issued by the Minister for Finance as Schedules to the Regulations

STANDARD Issued by Authority with approval of Solicitor General

ANNEX B: WHO DOES WHAT?

1. Appoints Board members

Approves key documents and

Permanent department of professionals (PDU)

ANNEX C: THE PROCUREMENT PROCESS

ANNEX D: THE DISPOSAL PROCESS

Trade-In; include in Compile Details of Items for

ANNEX E: FEES FOR ADMINISTRATIVE REVIEW

ANNEX F: SUMMARY OF STANDARD FORMS

22 Record of receipt of expression of interest To record which expressions All methods

38 Request by the Procurement and Disposal Request for approval of Trade-In

1 User to document the procurement requirement, confirm Section 59 of the Act

Issue any pre-qualification document and receive

SOLICITATION DOCUMENTS AND SELECTION POTENTIAL BIDDERS

14 Prepare or finalise Statement of Requirements, consisting Section 60 of the Act

PPDA (Rules and Methods for Procurement of

22 Consider membership of Evaluation Team PPDA (Evaluation) Regulations, 2014,

BIDDING, BID RECEIPT AND BID OPENING

37 Conduct a detailed examination to determine whether PPDA (Evaluation) Regulations, 2014,

39 Consider whether post-qualification is required PPDA (Evaluation) Regulations, 2014,

40 Consider whether negotiations are required. If so consider Section 74 of the Act

AWARD OF CONTRACT RECOMMENDATION

45 Negotiation team to hold negotiation if required PPDA (Evaluation) Regulations, 2014,

54 Draft the contract PPDA (Contracts) Regulations, 2014,

63 User Department to appoint a contract manager PPDA (Contracts) Regulations, 2014,

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