PRINCIPLES OF PUBLIC PROCUREMENT AND DISPOSAL IN UGANDA

 Non- discrimination and fairness

 Transparency
 Accountability
 Completion (open competitive bidding)
 Economy and efficiency
 Confidentiality
 Integrity
 Ethical behavior
 Public accessibility
 Best evaluated bidder-contract should be strictly given to the bidder best evaluated.
 Publication of opportunities and information

Non Discrimination and Fairness

 The procurement and disposal process should not only be fair, but seen to be fair and should
all parties evenly handedly.
 Non -acceptance of gifts and hospitality by staff in procurement section.
 Assurance of confidentiality and accuracy of information.
 Clear separation of responsibilities among players.
 All providers to be treated fairly and in a non-discriminator manner, including protection of
commercial confidentiality where required.
 A bidder not to be excluded from participating in public procurement and disposal on the
basis of nationality, race, religion, sex, location etc.
 Clarification if any to be given to all bidders and at the same time.
 Public bodies should not impose unnecessary burdens or constrains on providers.
Transparency is being open about activities and transactions that are carried out.
 All activities purchasing to public procurement and disposals should be done in an open
manner for public scrutiny.
 All relevant information should be made available to all interested parties consistently,
timely, at no or minimum cost and through a readily accessible and widely covered medium.
 Public bodies should ensure that there is openness and clarity on procurement policy and its
delivery.
Accountability
 Accountability means a written or spoken description of something that has happened.
 It may also mean the reason or basis for making a certain decision or doing something.
 It is based on principle of information sharing among all the interested parties.
Competition
Competitions a situation where all bidders compete/contend with one another under same terms
and conditions.
 All procurement should be carried out by competition unless there are convincing reasons to
the contrary.
 The process should be conducted to maximize competition and achieve value for money
(VFM)
 Relevant procurement method here include;
 Open bidding
 Restricted bidding
 Request for quotation / proposals
Key element of competition
 Public procurement opportunities are accessible to all interested providers.
 Procurement processes are designed to encourage levels of competition.
 Use of Standard Bidding documents (SBDs)
 Sufficient time for bidding.
 No use brand name or Trade names.
 Therefore there should no collusion with providers or others.

Economy and Efficiency

Economy means controlling and managing public resources in a way to have and achieve value
for money.
Public bodies should meet the commercial regulatory and social-economic goals of government
in a balanced manner appropriate to the procurement and disposal requirement.
 Efficiency means achieving ones goals with the smallest possible costs.
 It is therefore the quality of achieving ones goals very satisfactorily and with no waste of
time effort or money.
 Procurement and disposal processes should therefore be carried out as cost effectively as
possible.
Confidentiality
 Any information that is not public should be kept confidential.
 Information relating to evaluation should be kept confidential until the best evaluated
bidder has been notified of the award.

Public accessibility
All relevant information on public information on public procurement and disposal should be
made public e.g.
 Law Regulation guidelines
 Bids/bid opportunities
 Specification TOR
 Evaluation criteria
 Award decision
 Pre-qualification
  Providers lists
 Procurement and disposal reports

Availability of procurement and disposal work plan

 Displaying information on public procurement disposals notice boards, websites, print, media
etc.
 And reports on procurement and disposal.

Intergrity
Integrity refers to a quality of person’s character.
It comprises the personal sense of “wholeness” deriving their honesty and consistent uprightness
of character.

Ethical Behaviour
Adherence to the code of ethical conduct in business is a measuring of ethical behaviours.

Ethical principles include;

 Not using ones authority of office for personal gain (corruption)
 Maintaining impeccable standards of intergrity in business relationships.
 Fostering the highest possible standards of competence.
 Plying with the law regulations guidance acceptable business practices and contractual
conditions.
 Declaring conflict of interest that may influence ones decision.
 Adherence to confidentiality and accuracy of information and ensuring it is true fair and not
meant to mislead.
 Avoiding or refusing business gifts and hospitality.
 Adherence to the restrictiveness phenomenon.

Best evaluated bidder (BEB)

Contract should be awarded to the best evaluate offer, ascertained on the basis of the
methodology and criteria specified in the standard bidding Document (SBD). The BEB is not
necessary the lowest offer, but one with the combination of say the highest quality, appropriate
delivery period, the required quantity, longest guarantee.

Conflict of interest
A conflict of interest is a situation in which financial or other personal considerations have the
potential to compromise or bias professional judgment and objectivity. An apparent conflict of
interest is one in which a reasonable person would think that the professionals judgment is likely
to be compromised. A potential conflict of interest involves a situation that may develop into an
actual conflict of interest. It is important to note that a conflict of interest exists whether or not
decisions are affected by a personal interest a conflict of interest implies only the potential for
bias, not likelihood.

Consequences for not upholding the principles

Fraud
Bribery
Emergencies
Wastage
Cost of overruns
Collusion (secret agreement to do something dishonest) you can spate collusion with infighting
among the key players.

The effect of renumization/Motivation on employee performance.

The above analysis of procedure used in purchasing is a clear indication that purchasing
complicates and therefore may require some form of support.
Documents assist in guiding purchasing is a clear indicator that purchasing is;
 Complicated and therefore may require some form of support.
 Documents assist in guiding purchasing staff managing related complications. For
purposes of this study we shall focus on purchasing manuals.
 An essential document in any entity is a purchasing manual containing the policies
governing the how to of purchasing. The manual can contain a variety of topics, from
basic instructions on how to prepare a purchase order to the procedures used to take
telephone quotations submit a sole source justification, make an emergency purchase or
negotiate a contract. A manual makes it easier to enforce purchasing policy.
Possible Contents of a purchasing manual

Principles of purchasing Establishing New Contracts

Responsibilities of the purchasing agent How to Use State Contracts
Purchasing policy Personal Service Agreement
Agency responsibilities Sole Source Procurement
Business relations with suppliers Emergency Purchases
Unauthorized purchases Disposal of Surplus Material
Preparing purchase orders The payment process
Blanket purchase orders The Receiving process
The purchase order return form Informal Bidding Process
Purchasing Order Changes Formal Bidding Process
Cancellation of purchase orders The Contract and its use
Arrears Exempt from Competitive Bidding Appendices
Follow-up and Expediting  Dictionary of Purchasing and shipping Term
Telephone Quotation Procedures  The purchasing resolution
Telephone Quotation Procedures from  Minority Business Policy
Rental Items  Proposal Evaluation Guidelines
Procuring Professional and Consultant  Contract Insurance
 Negotiating Contract
In the circumstances set out in paragraph (a) where the value of the new works , services or
supplies does not exceed 15% of the value of the original or existing contract and the original or
existing contract has been awarded through a competitive process and

(2) A procuring and disposing entity may engage in micro procurement or disposal where the
goods or services are below the threshold stated in regulations.

(3) Where a procuring and disposing entity engages in micro procurement.

(a) The original invoice or receipt evidencing the supplies procured and the price paid shall be
obtained and signed by the official procuring the supplies and
(b) it shall be responsible for ensuring that value for money as obtained to the extent practical
section 93 (1)

FIFTH SCHEDULE
CODE OF ETHICAL CONDUCT IN BUSINESS

1(i) Employees shall not use their authority or office for personal gain and shall seek to uphold
and enhance the republic of Uganda Government at home and abroad by

(a) Maintaining an impeccable standard of integrity in all business relationships both inside and
Outside the organisations in which they are employed.
(b) Fostering the highest possible standards of competence.
(c) Optimizing the use of resources for which they are responsible to provide the maximum
Benefit to Uganda and
(d) Complying both with the letter and the spirit of;
(i) The laws of Uganda and regulatory guidance;
(ii) Accepted business practices in commercial markets and
(iii) Contractual conditions

2. Employees shall reveal any personal interest that may impinge or might reasonably be deemed
by others to impinge on an employee’s dealings with an industry.

3. (1) Employees shall respect the confidentiality of information received in the course of
business dealings and shall never use such information for personal gin

(2) Information given by employees in the course of business dealings shall be true and fair and
not designed to mislead.
4) Employees shall not accept business gifts from current or potential government suppliers
business such gifts are of very small intrinsic value such as a calendar or a pen.
5) Employees shall refrain from any business hospitality that might be viewed by others as having
an influence in making a government business decision as a result of accepting that hospitality.

6. A member of the Authority, a procuring and disposing entity or expert contracted to deliver
specific services shall not use to his or her personal or organizational advantage, information
acquired by him or her by virtue of his or her association with the authority or a procuring and
disposing entity for a period of one year after vacating office or ceasing to render the specific
services.