PART D.

Mr.Karerengabo Asuman the Executive Director of the Uganda Metrological Authority that the only
Vehicle that was used by his predecessor to travel to and from work coupled with frequent up country
visit to the Metrological Authority’s zonal offices has since broken down which has to be replaced and
due to the inquiries made from Toyota they advised that a brand new double-cabin vehicle that fits the
Executive Director cost UGX 350,000,000/= with a 3 year warranty together with a free service .
TASK 4(a) Illustrate the process of getting rid of the old vehicle.
According to section3 of the Public Procurement And Disposal Of Public Assets Act,2003 “Disposal” to
mean the divestiture of public assets, including intellectual and proprietary rights and goodwill, and any
other rights of a procuring and a disposing entity by any means, including sale, rental, lease, franchise,
auction, or any combination however classified other than those regulated by the Public Enterprise
Reform and Divestiture statute, 1993.
The word getting rid of(Disposal) means the actual releasing of a formerly publically owned assets like
companies, commercial buildings, and so many others to private entities or individuals.
There are many reason why Government entities dispose of their assets to private entities or individuals
and these include;
When the entity has acquired a new asset they end up getting rid of the old asset.
Sometimes the assets may have completed their useful lives.
When the asset has served its purpose fully. This applies in situations where the entity has under taken
projects and they are finalized.
Disposal can sometimes be a source of finance to the entity and to the government.
In some situations it’s policy to dispose of the public asset after a specified period of time.
For the term Disposal practically means “getting rid of assets” or item which have ceased to be of value to
the controlling entity, such entities acquire fixed assets like machinery, equipments, furniture and such
other fittings that are held and controlled by for the purposes of generating economic benefits for
controlling the entities, However at the end of their useful lives, the potential to generate the benefit
detoriates and ceases to have value and benefit to the entity and the entity has to get rid of them so that
the entities make use of other alternative available.
The Disposal of assets should be done according to the Public Procurement And Disposal Of Public
Assets Act,2003 as Amended 2014 and Public Procurement And Disposal Of Public Regulations of 2014
and the disposing entity has to adopt ;
The meaning of disposal and instances that necessitates the disposal of the public assets.
The process of disposal
The different methods of disposal and instances in which each is appropriate.
The Disposal process as per PPDA Regulations has a number of stages and they include the following
just as discussed below;
The Accounting officer initiates.
Accounting Officer is provided for under section 26 of the Public Procurement And Disposal Of
Public Assets Act 2003 which stipulates that the Accounting Officer shall shall have the overall
responsibility for execution of the procurement and disposal process in a procuring and disposing entity,
According to Regulation 2(1) of the Public Procurement and Disposal of Public Assets (Disposal of
Public Assets) Regulations 2014stipulates that the Accounting Officer shall in each financial year cause
the public assets of procuring and disposing entity to be reviewed and identify the public asset to be
disposed of in the following financial year .
According to sub-regulation 2 is to the effect that a procuring and disposing entity may use the board
of survey or a user department to identify the public assets to be disposed of At this stage the item to be
disposed of are identified by the user department that makes a disposal request and gives it to the
accounting officer.
Section 3 of the PPDA ACT 2003, defines User Department to mean any department, division, branch
or section of the procurement and disposing entity which initiates the procurement and disposal
requirements and is the user of the requirements.
Section 59(1) of the PPDA Act,2003 stipulates that the disposal requirements should be documented prior
to the commencement of the disposing process
The preparation of disposal plan.
According to Regulation 2(3) of the Public Procurement and Disposal of Public Assets (Disposal of
Public Assets) Regulations 2014, It stipulates that for the purposes of maximizing competition and
archiving value for money a procuring and disposing entity shall group the public assets to be disposed of
in contract or lots .
The user department initiates the disposal process. According to Regulation 3(1)of the Public
Procurement and Disposal of Public Assets (Disposal of Public Assets) Regulations 2014 stipulates
that A user department or appropriate department of procuring and disposing entity that is responsible for
the management of public asset shall initiate the process of for disposal of a public asset by making
request for the disposal of the public asset to the accounting officer.
According to sub-regulation 4, stipulates that The accounting officer of procuring and disposing entity
shall approve a request for the disposal prior to the commencement of the disposal process.
Sub-regulation 5 stipulates that every disposal process shall have a reference number allocated using the
referencing in the guidelines and be identified by the reference number of the asset in the asset register of
the procured and disposing entity
The Procurement and Disposal Unit prepares the bidding documents. According to Regulation 4,
public bidding shall be used as the method for disposal.
According to Regulation 5 of the Public Procurement and Disposal of Public Assets (Disposal of
Public Assets) Regulations 2014, the PDU shall make a request to the contracts committee for the use of
public bidding method using Form 29 in the Schedule and the contracts committee shall make its decision
on the form submitted under sub-regulation 1. However if disposing of is by method of sale to the public
officers, the PDU under regulation 12(1) and (2) shall make a request to the contracts committee for sale
to the public officers using form 33 in the schedule and the contract committee shall also make its
decision on the on that form.
Drafting and Advertising of Bid notices.
According to Regulation 5(3) of thePublic Procurement and Disposal of Public Assets (Disposal of
Public Assets) Regulations 2014, stipulates that The procurement and disposing entity shall solicit for
bids to dispose of public assets by public bidding by publishing an invitation notice to the public which
invitation notice to the public shall be published in at least one newspaper of national circulation and may
be communicated to the public using any other appropriate media which offers effective communication
to the potential bidders.
According to sub-regulation 5 and 6 stipulates that the invitation notice shall be displayed on the
procurement and disposal notice board of the procuring and disposing entity and on the website of the
authority which invitation notice shall indicate that the interested bidder shall obtain the bidding
documents from the procuring and disposing entity respectively.
Section 31(j) of the PPDA ACT 2003 give responsibility of preparing and advertisement of the bids to
the Procurement and Disposal Unit.
Receiving and Opening of Bids.
Bids are received and opened by the PDU as provided for under section 32(f) of the PPDA Act 2003 and
Regulation 65(1) of the PPDA (Rules and Methods for Procurement Of Supplies, Works and no
consultancy Services) Regulations No;8 of 20114 provides that the public opening of bids is managed
by the PDU and witnessed by a member of the contracts committee or nominee of the User Department.

According regulation 5(7) stipulates that the bidding document for disposal by public bidding shall
indicate.
(a) A description of public asset to be disposed of.
(b) The documentation required for bidding
(c) Eligibility requirements.
(d) The procedure for signing and authorizing bids.
Regulation 26 of the PPDA (DISPOSAL OF ASSETS) Regulations 2014 stipulates that the written bid
shall submitted in a plain outer envelope which shall be sealed securely in such a manner that opening
and resealing the envelope cannot be achieved undetected and the procuring and disposing entity shall at
the opening of the bids reject an envelope that is not sealed.
Evaluation of bids,
according to regulation 39 of the Public Procurement and Disposal of Public Assets (Disposal of
Public Assets) Regulations 2014, stipulates that shall with necessary modifications apply to
evaluation of bids under these regulations.
Award of Contract after evaluation.
The best Evaluated bidder is picked by the contracts committee and all bidders are informed by the
Accounting Officer and the award as well, According to section 52 of the PPDA Act 2003 stipulates that
the contract shall be awarded to the bidder with best evaluated offer ascertained on the basis of the
methodology and the criteria detailed in the bidding documents then the asset (old vehicle) will be
disposed of.
Finally subject to section 76(2) of the PPDA Act As Amended all awards are to be confirmed by a written
contract signed by the provider and the procuring and disposing entity.

b) A new vehicle was procured by the authority, on inspection, it was realized that it needs accessories
such as a modern car radio, tinting of windows, installing better functioning air conditioning, buying
sports rims, installing a strong bumper to ward off errant boda boda cyclists., among other enhancements
to make it look elegant. The chief Transport officer advised that these additions will cost about UGX 9
million.

Legal Issues.

What process is to be adopted by the Executive Director obtain the accessories for a new procured
vehicle?.

Law Applicable.

1) The Public Procurement And Disposal Of Public Assets Act 2003 As Amended

2) The public procurement and disposal of public assets guidelines 2014.

Resolution

According to section 86(1) of the PPDA Act 2003 stipulates that micro-procurement is the
procurement method which shall be used for very low value procurement requirements.

Sub-section 2 stipulates that micro-procurement shall be used to achieve efficient and timely
procurement where the value does not justify a competitive procedure.

According to regulation 16 stipulates that the micro-procurement process shall not require;

 Issuance of a bidding document

 Does not also require submission of bid
 Does not require a public bid opening session
 It also does not require the use of an evaluation committee
 Does not require the issuance of the best evaluated bidder
 Does not require issuance of notice of account of a contract

According to guideline 1.4 of the public procurement and disposal of public assets guidelines 2014.
Is to the effect that micro-procurement shall be used if the estimated value of the works does not
exceed Ten million (10) UGX. Therefore in relation to the above facts at hand the ED was advised
by the transport officer that the all accessories costs about UGX 9 million, therefore micro-
procurement method will be used to obtain the above accessories.