Laws of Zambia Active 2008The Public Procurement
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Public Procurement [No. 12 of 2008 309
THE PUBLIC PROCUREMENT ACT, 2008
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title and commencement
2. Interpretation
3. Application
4. Approval required for international agreements on procurement
PART II
THE ZAMBIA PUBLIC PROCUREMENT AUTHORITY
5. Continuation and renaming of Zambia National Tender Board
6. Powers and functions of Authority
7. Director-General of Authority
8. Secretary and other staff
9. Inspectorate unit
10. Co-operation with other authorities
PART III
PROCURING ENTITIES
11. Composition of procuring entities
12. Functions of procuring entities
13. Duties of Controlling Officer and chief executive officer
14. Establishment of Procurement Committees
15. Powers and functions of Procurement Committee
16. Composition of Procurement Committees
17. Tenure of office of Procurement Committee
18. Proceedings of Procurement Committee
19. Subcommittees of Procurement Committee
20. Establishment of Procurement Units
21. Functions of user departments
22. Procurement authorisation and levels of authority
23. Procurement of common use items
24. Use of procurement agent or procurement service provider
22. Procurement authorisation and levels of authority
23. Procurement of common use items
24. Use of procurement agent or procurement service provider
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Copies of this Act can be obtained from the Government Printer, P.O. Box 30136, 10101 Lusaka. Price K13,000 each.
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PART IV
METHODS OF PROCUREMENT
25. Open bidding
26. National and international bidding
27. Open selection
28. National and international selection
29. Limited bidding
30. Limited selection
31. Simplified bidding
32. Direct bidding
33. Force account
34. Purchases from other procuring entities
35. Procurement of infrastructure for private financing and award of
concessions
36. Community participation in procurement
PART V
GENERAL PROCUREMENT RULES
37. Participation and non-discrimination
38. Records of procurement
39. Communications
40. Confidentiality
PART VI
PROCUREMENT PROCESS
nications
40. Confidentiality
PART VI
PROCUREMENT PROCESS
41. Initiation of procurement requirements
42. Procurement planning
43. Choice of procurement method
44. Statement of procurement requirements
45. Solicitation documents
46. Selection of bidders
47. Invitation of bids
48. Receipt of bids
49. Opening of bids
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50. Evaluation
51. Negotiations
52. Decision to award contract
53. Publication of best evaluated bidder
54. Award of contract
55. Contract
56. Information of unsuccessful bidder
57. Contract management
58. Amendment of contract
59. Deviations
60. Accreditation of alternative procurement system
dment of contract
59. Deviations
60. Accreditation of alternative procurement system
PART VII
BIDDERS AND SUPPLIERS
61. Eligibility of bidders
62. Qualification of bidders
63. Preference and reservation
64. Supplier databases or lists
65. Suspension
66. Grounds for suspension
67. Permanent bar of bidder or supplier
68. Inducement by bidder or supplier
69. Appeal against suspension
PART VIII
ARBITRATION
70. Review of decision by procuring entity
71. Dispute to be determined by arbitration
70. Review of decision by procuring entity
71. Dispute to be determined by arbitration
PART IX
GENERAL PROVISIONS
72. Code of conduct
73. Restriction on public officers
74. Conduct of bidder and supplier
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75. Offences by public officers and other persons
76. Responsibilities of Controlling Officers and chief executive officers
77. General penalty
78. Offences committed by body corporate or un-incorporate body
79. Compensation
80. Transfer of functions of procuring entity to other body
81. Circulars and publications
82. Regulations
83. Repeal of Cap 394
84. Savings and transitional provisions
FIRST SCHEDULE
SECOND SCHEDULE
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Public Procurement [No. 12 of 2008 313
GOVERNMENT OF ZAMBIA
ACT
No. 12 of 2008
Date of Assent: 24th September, 2008
313
GOVERNMENT OF ZAMBIA
ACT
No. 12 of 2008
Date of Assent: 24th September, 2008
An Act to continue the existence of the Zambia National
Tender Board and re-name it as the Zambia Public
Procurement Authority; revise the law relating to
procurement so as to ensure transparency and accountability
in public procurement; regulate and control practices relating
to public procurement in order to promote the integrity of,
fairness and public confidence in, the procurement process;
repeal and replace the Zambia National Tender Board Act,
1982; and provide for matters connected with or incidental
to the foregoing.
[26th September, 2008
ENACTED by the Parliament of Zambia.
PART I
Preliminary
1. This Act may be cited as the Public Procurement Act, 2008,
and shall come into operation on such date as the Minister may, by
statutory instrument, appoint.
be cited as the Public Procurement Act, 2008,
and shall come into operation on such date as the Minister may, by
statutory instrument, appoint.
2. In this Act, unless the context otherwise requires—
“ approvals authority ” means the body or individual with
authority to grant prior authorisation of certain key steps in
the procurement process in accordance with section twenty-
two;
“ Authority ” means the Zambia Public Procurement Authority
referred to under section five;
“ best evaluated bidder ” means the bidder ranked as first,
following the application of the specified evaluation
methodology and criteria;
“ bid ” means an offer to provide goods, works or services
submitted by a bidder in response to an invitation from a
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submitted by a bidder in response to an invitation from a
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2. In this Act, unless the context otherwise requires—
“ approvals authority ” means the body or individual with
authority to grant prior authorisation of certain key steps in
the procurement process in accordance with section twenty-
two;
“ Authority ” means the Zambia Public Procurement Authority
referred to under section five;
“ best evaluated bidder ” means the bidder ranked as first,
following the application of the specified evaluation
methodology and criteria;
“ bid ” means an offer to provide goods, works or services
submitted by a bidder in response to an invitation from a
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submitted by a bidder in response to an invitation from a
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procuring entity and includes a tender, proposal, quotation
and, where applicable, an application to pre-qualify;
“ bidder ” means a person or group of persons that offers to
provide goods, works or services in response to an invitation
from a procuring entity and includes, where applicable, a
potential bidder and applicant to pre-qualify;
“ Board ” means the Board of Directors of the Authority;
“ Central Tender Committee ” means the Central Tender
Committee established under paragraph 2 of the Second
Schedule;
“ chief executive officer ” means the chief executive officer of
a parastatal, statutory body or a local authority;
“ citizen bidder or supplier ” means a citizen-empowered
company, citizen-influenced company or citizen-owned
company;
“ citizen-empowered company ” means a company where
twenty-five to fifty percent of its equity is owned by citizens,
and is licenced to undertake business activities in Zambia;
“ citizen-influenced company ” means a company
where five to twenty-five percent of its equity is owned by
citizens and in which citizens have significant control of the
management of the company, and is licensed to undertake
business in Zambia;
“ citizen-owned company ” means a company
where at least fifty point one percent of its equity is owned
by citizens and in which the citizens have significant control
of the management of the company, and is licensed to
undertake business in Zambia;
“close relative ” means a spouse, child, sibling, uncle, cousin,
aunt, niece, nephew, parent or a child of a spouse, child,
sibling or parent;
“ coercive practices ” means harming or threatening to harm,
directly or indirectly, a person, or a person’s property, to
influence that person’s participation in a procurement
process or affect the execution of a contract;
“ collusive practices ” means a scheme or arrangement
between two or more bidders, with or without the knowledge
of the procuring entity, designed to establish bid prices at
artificial, non-competitive levels;
“ consulting services ” means services of an intellectual or
advisory nature, the delivery of reports, drawings or designs
including engineering designs, supervision, accountancy,
lectual or
advisory nature, the delivery of reports, drawings or designs
including engineering designs, supervision, accountancy,
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auditing, financial services, procurement services, training and capacity building services, management advice, policy studies and advice, assistance with institutional reforms and software development;
“contract” means an agreement between a procuring entity and a supplier for the provision of goods, works or services;
forms and software development;
“contract” means an agreement between a procuring entity and a supplier for the provision of goods, works or services;
“Controlling Officer” has the meaning assigned to it in the Public Finance Act, 2004; Act No. 15
of 2004
“corrupt practice” means the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence the action of a public officer in the procurement process or in contract execution;
“direct bidding” means a procurement method where a bid is obtained directly from a single bidder, without competition;
“Director-General” means the person appointed as such under section seven;
“due diligence” means the assessment of a bidder or supplier’s technical, financial and management capabilities and the bidder’s or supplier’s governance record to effectively execute a contract;
der or supplier’s technical, financial and management capabilities and the bidder’s or supplier’s governance record to effectively execute a contract;
“e-procurement” means the process of procurement using the internet or other information and communication technologies;
“foreign bidder or supplier” means a bidder or supplier who is not licensed to undertake business activities in Zambia;
“fraudulent practice” means a misrepresentation or omission of facts in order to influence a procurement process or the execution of a contract;
“goods” means objects of every kind and description including raw materials, products, equipment, objects in solid, liquid or gaseous form, electricity, and works and services incidental to the supply of the goods if the value of those incidental works and services does not exceed that of the goods themselves;
“Government agency” has the meaning assigned to it in the Public Finance Act, 2004; Act No. 15
of 2004
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of 2004
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“procurement” means acquisition by purchase, rental, lease,
hire purchase, licence, tenancy, franchise or any
combination thereof;
“Procurement Committee” means the Committee established
under section fourteen;
“Procurement Unit” means the division or department in
each procuring entity responsible for the execution of the
procurement function;
“procuring entity” means a Government agency, parastatal
body or any other body or unit established and mandated
by Government to carry out procurement using public funds;
“post-qualification” means the conduct of due diligence to
determine whether the bidder is qualified to perform the
contract effectively;
“public funds” has the meaning assigned to it in the Public
Finance Act, 2004; Act No. 15
of 2004
“public office” includes an office the emoluments of which
are a charge on or paid out of the revenues of the Republic;
“public officer” means a person holding or acting in any public
office;
“repealed Act” means the Zambia National Tender Board
Act, 1982; Cap. 394
a person holding or acting in any public
office;
“repealed Act” means the Zambia National Tender Board
Act, 1982; Cap. 394
“services” means any object of procurement other than goods
or works, which involve the furnishing of labour, time or
effort;
“simplified bidding” means a procurement method which
compares quotations from a number of bidders;
“solicitation document” means a bidding document, a request
for proposals, request for quotation and, where applicable,
a pre-qualification document or document of any kind issued
by a procuring entity, inviting bidders to participate in
procurement proceedings;
“supplier” means a contractor, consultant, service provider
or a natural person or incorporated body that is party to a
contract with a procuring entity for the provision of goods,
works or services;
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"user department" means any department, division, branch,
section or project unit of the procuring entity which initiates
procurement requirements and is, or represents, the end-
user of the goods, works or services; and
of the procuring entity which initiates
procurement requirements and is, or represents, the end-
user of the goods, works or services; and
“works” means all work associated with the construction,
re-construction, demolition, repair or renovation of a building,
road, structure or works, such as site preparation, excavation,
erection, building, installation of equipment or materials,
decoration and finishing, as well as services incidental to
construction such as drilling, mapping, satellite photography,
seismic investigations and similar services provided pursuant
to a contract, if the value of those services does not exceed
that of the works themselves.
Application 3. (1) This Act applies to all procurement carried out by procuring
entities using public funds, except as otherwise provided under
subsection (2).
curement carried out by procuring
entities using public funds, except as otherwise provided under
subsection (2).
(2) A procuring entity may, where any procurement involves or
relates to the security, defence or international relations of the
Republic, modify the application of the rules and procedures of
procurement set out in this Act only to the extent necessary to
protect the public interest and in accordance with such procedures
as the Authority may determine.
(3) Where a procuring entity undertakes any procurement that
is related to or involves the security, defence or international relations
of the Republic, the procuring entity shall—
(a) agree with the Authority on the type of goods, works or
services to be subject to modified rules and procedures of
procurement;
ype of goods, works or
services to be subject to modified rules and procedures of
procurement;
(b) agree with the Authority on the modifications to be made
to the rules and procedures provided for in this Act and to
be applied to the goods, works and services referred to
under paragraph (a); and
(c) apply the rules and procedures provided for in this Act to
the procurement of goods, works and services in a manner
that is not prejudicial to the security, defence and
international relations of the Republic.
(4) The type of goods, works and services subject to modified
rules and procedures of procurement and the modified rules and
procedures of procurement referred to in subsections (2) and (3)
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shall be reviewed and updated by the procuring entity and the
Authority on an annual basis or as need arises.
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shall be reviewed and updated by the procuring entity and the
Authority on an annual basis or as need arises.
(5) Any procurement that is subject to the modified rules and
procedures of procurement under subsection (2) shall be subject to
classified audit.
4. (1) A procuring entity shall, before entering into any Approval
international agreement relating to procurement, obtain the approval required for
of the Authority, and the advice of the Attorney-General. international
agreements on
(2) Any agreement purportedly entered into without the approval procurement
of the Attorney-General is void.
PART II
THE ZAMBIA PUBLIC PROCUREMENT AUTHORITY
orney-General is void.
PART II
THE ZAMBIA PUBLIC PROCUREMENT AUTHORITY
5. (1) The Zambia National Tender Board established under Continuation
the repealed Act shall continue to exist as if established under this and re-naming
Act and for purposes of this Act is hereby re-named the Zambia of Zambia
Public Procurement Authority. National
Tender Board
(2) The Authority shall be a body corporate with perpetual Cap. 394
succession and a common seal, capable of suing and of being sued
in its corporate name, and with power, subject to the provisions of
this Act, to do all such acts and things as a body corporate may, by
law, do or perform.
(3) The provisions of the First Schedule apply to the Authority.
do all such acts and things as a body corporate may, by
law, do or perform.
(3) The provisions of the First Schedule apply to the Authority.
6. (1) The Authority shall be an independent regulatory body Powers and
with responsibility for policy, regulation, standard setting, compliance functions of
and performance monitoring, professional development and Authority
information management and dissemination in the field of public
procurement.
(2) Without prejudice to the generality of subsection (1), the
functions of the Authority are to—
(a) regulate the procurement of goods, works and services
by procuring entities and ensure transparency and
accountability in public procurement;
(b) monitor compliance with this Act and the procurement
performance of the procuring entities and make
recommendations to the Minister on the performance
and functioning of the public procurement system;
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(c) issue standard bidding documents and other standard
procurement documents for use by procuring entities;
Public Procurement
(c) issue standard bidding documents and other standard
procurement documents for use by procuring entities;
(d) advise the Government and procuring entities on
procurement policy and other matters relating to public
procurement;
(e) consider applications for deviations to public procurement
processes, methods and rules and for the accreditation
of alternative procurement systems;
(f) commission and undertake investigations in public
procurement matters and institute procurement audits;
(g) promote economy, efficiency and maximum competition
to ensure value for money in the use of public funds;
(h) promote private sector participation, through fair and non-
discriminatory treatment of bidders;
(i) formulate preference and reservation schemes to promote
the economic development of citizen bidder and suppliers
in collaboration with the appropriate Government
institutions;
(j) maintain a register of bidders and suppliers who are
suspended or debarred from participating in public
procurement;
(j) maintain a register of bidders and suppliers who are
suspended or debarred from participating in public
procurement;
(k) coordinate and promote capacity building and professional
development in the public procurement system;
(l) monitor the execution of contracts entered into by
procuring entities;
(m) organise and maintain systems for the management of
procurement data, statistics and information and for the
publication of data on public procurement opportunities,
contract awards and other information of public interest;
and
(n) do all such other acts and things as are incidental to the
foregoing or conducive to the attainment of the objectives
of the Authority.
(3) The Authority may—
(a) collect any data and report from procuring entities for
purposes of this Act;
(b) access information, documents, records and reports of a
procuring entity in respect of any public procurement
process;
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orts of a
procuring entity in respect of any public procurement
process;
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(c) access, at any reasonable time, the premises of any
procuring entity whose procurement is being monitored
and request for any relevant information from any person
responsible for the financial administration of the
procuring entity; and
suspend or debar any bidder or supplier from participating
in public procurement in accordance with the provisions
of this Act.
(4) Subject to subsection (5), the authority shall not access any
information, document, record or report, or enter upon any premises
of the Zambia Defence Force or the Zambia Security Intelligence
Service.
ccess any
information, document, record or report, or enter upon any premises
of the Zambia Defence Force or the Zambia Security Intelligence
Service.
(5) The Authority may, where the circumstances of a
procurement audit so require, with the written consent of the
President, access any information, document, record or report, or
enter upon any premises, of the Zambia Defence Force and the
Zambia Security Intelligence Service.
Director-
General of
7. (1) The President shall appoint, on such terms and conditions Authority
as the President may determine, a Director-General who shall be
the chief executive officer of the Authority.
(2) The office of Director-General shall be an office in the
public service.
(3) The Director-General shall attend all meetings of the Board,
and shall be entitled to address such meetings, but shall not vote on
any matter under discussion:
Provided that the Board may, for good cause, request
the Director-General to withdraw from any meeting of the
Board.
8. (1) There shall be a Secretary to the Board who shall be Secretary
appointed by the Board on such terms and conditions as the Board and other
may determine. staff
(2) The Board may appoint, on such terms and conditions as it
may determine, such other staff as it may consider necessary for
the performance of its functions under this Act.
, on such terms and conditions as it
may determine, such other staff as it may consider necessary for
the performance of its functions under this Act.
9. (1) In order to ensure due compliance with the provisions of Inspectorate
this Act, the Board shall establish under the general supervision of unit
the Director-General, an inspectorate unit which shall monitor, in
accordance with the rules or regulations made under this Act, the
procurement performance of procurement entities.
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(2) The Board may appoint such inspectors and other staff to
the inspectorate unit as may be necessary for the performance of
its functions under this Act.
Cooperation 10. (1) The exercise by the Authority of its functions under
with other this Act shall not affect in any manner any functions exercised by
authorities other authorities under any other written law.
(2) The Authority shall co-operate with other organs exercising
oversight functions over public procurement in Zambia and may,
for that purpose, establish mechanisms for sharing information and
working jointly with those organs.
ons over public procurement in Zambia and may,
for that purpose, establish mechanisms for sharing information and
working jointly with those organs.
(3) A procuring entity and any person involved in public
procurement shall co-operate with the Authority and any other
authority exercising monitoring and oversight functions over public
procurement.
PART III
Procuring Entities
Composition 11. For the purposes of this Act, a procuring entity shall consist
of procuring of—
entities
(a) a Controlling Officer or Chief Executive Officer;
(b) a Procurement Committee;
(c) a Procurement Unit; and
(d) user departments.
Functions of 12. (1) A procuring entity shall be responsible for the
procuring management of all procurement activities within its jurisdiction in
entities accordance with this Act.
(2) Any functions related to procurement shall be carried out
only by persons qualified and knowledgeable in procurement in
accordance with the Zambia Institute of Purchasing and Supply
Act, 2003.
carried out
only by persons qualified and knowledgeable in procurement in
accordance with the Zambia Institute of Purchasing and Supply
Act, 2003.
Act No. 15 (3) A person who contravenes subsection (2) commits an
of 2003 offence and is liable, upon conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both.
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units or to imprisonment for a term not
exceeding two years, or to both.
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Duties of
13. (1) A Controlling Officer or a chief executive officer, as Controlling
the case may be, shall be responsible and accountable for ensuring Officer and
that all the procurement of the procuring entity is conducted in chief
accordance with this Act. executive
officer
(2) Without prejudice to the generality of subsection (1), the
functions of a Controlling Officer and a chief executive officer are
to—
(a) appoint the members of a Procurement Committee;
(b) act as chairperson of the Procurement Committee;
(c) certify the availability of funds, prior to the commencement
of any procurement activity or designate an officer or
officers to whom this function shall be delegated;
(d) authorise contract awards which fall within their level of
authority;
(e) authorise contract documents; and
(f) submit such reports as are required by the Authority for
purposes of this Act.
14. There shall be established in every procuring entity a Establishment
Procurement Committee. of
Procurement
Committees
his Act.
14. There shall be established in every procuring entity a Establishment
Procurement Committee. of
Procurement
Committees
15. (1) A Procurement Committee shall ensure that all Powers and
procurement of the procuring entity is conducted in accordance functions of
with the provisions of this Act. Procurement
Committee
(2) A Procurement Committee shall be the highest approvals
authority for the procuring entity, and shall be responsible for
providing prior authorisation of the procurement process in
accordance with the procedure specified in section twenty-two.
(3) Subject to paragraph 7 of the Second Schedule, a
Procurement Committee shall have an unlimited level of authority.
16. (1) A Procurement Committee shall consist of — Composition
(a) a Controlling Officer or chief executive officer, who shall of
be the chairperson; Procurement
(b) not less than four and not more than eight members, Committees
appointed by the Controlling Officer or chief executive
officer in writing; and
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ommittees
appointed by the Controlling Officer or chief executive
officer in writing; and
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(c) the head of the Procurement Unit, who shall be an ex-
officio member of and the secretary to the Procurement
Committee.
(2) Where a procuring entity is too small to be able to constitute
a Procurement Committee, the Authority shall prescribe the
procedures to be followed by the procuring entity.
itute
a Procurement Committee, the Authority shall prescribe the
procedures to be followed by the procuring entity.
(3) Members of a Procurement Committee shall be officers of
the procuring entity with not more than two appointed from outside
the procuring entity:
Provided that members of the Procurement Committee who
are not officers of the procuring entity shall not be public
officers or employees of any parastatal body.
(4) Members of the Procurement Committee shall be appointed
with regard to their —
(a) technical and professional competence;
(b) procurement skills and knowledge required for the
discharge of the functions of the Procurement
Committee; and
(c) proven integrity and sound decision making abilities.
ge of the functions of the Procurement
Committee; and
(c) proven integrity and sound decision making abilities.
(5) A Controlling Officer or chief executive officer shall, in
selecting the members of a Procurement Committee, seek to
establish a balance of skills and experience among the members to
ensure that the Procurement Committee—
(a) has an appropriate level of seniority and experience in
decision making;
(b) includes knowledge and experience
in public procurement and other relevant professional
disciplines; and
(c) includes persons with knowledge and experience of the
procuring entity's operations.
(6) Notwithstanding the provisions of subsection (4), when
appointing members of the Procurement Committee for the first
time after the commencement of this Act, a Controlling Officer or
chief executive officer shall appoint half the members for a tenure
of two years, in order to ensure both continuity and rotation in the
membership of the Procurement Committee.
nure
of two years, in order to ensure both continuity and rotation in the
membership of the Procurement Committee.
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17. (1) A member of the Procurement Committee appointed
under paragraph (b) of subsection (1) of section sixteen shall hold
office for a period of three years and may be re-appointed for a
further like period.
Tenure of
office of
Procurement
Committee
(2) A Controlling Officer or chief executive officer shall inform
the Authority of the membership of the Procurement Committee
not later than fourteen days from the date of its appointment or of
any change in its membership.
(3) A Controlling Officer or chief executive officer, as the case
may be, may terminate the appointment of a member of the
Procurement Committee if the member—
(a) abuses the member’s office;
(b) is involved or participates in corrupt or coercive practices;
(c) is incompetent;
(d) becomes physically or mentally incapable of performing
the duties of a member of the Procurement Committee;
s incompetent;
(d) becomes physically or mentally incapable of performing
the duties of a member of the Procurement Committee;
(e) is absent from three consecutive meetings of the
Procurement Committee of which the member has had
notice without the prior approval of the Procurement
Committee;
(f) is convicted of an offence involving dishonesty; or
(g) is adjudged or declared bankrupt.
(4) A Controlling Officer or chief executive officer, as the case
may be, may remove or substitute any member of the Procurement
Committee prior to the expiry of the member’s term of office
where—
(a) it is necessary in order to maintain a balance of skills and
experience on the Procurement Committee in
accordance with section sixteen;
(b) the structure or status of the procuring entity has changed;
(c) the post of an incumbent member has changed, or the
member has resigned; or
(d) the member dies.
18. (1) Subject to the other provisions of this Act, a Procurement
Committee shall regulate its own procedure.
(2) A member or person who is present at a meeting of a
Procurement Committee or a subcommittee of a Procurement
its own procedure.
(2) A member or person who is present at a meeting of a
Procurement Committee or a subcommittee of a Procurement
Proceedi
of
Procurer
Commit
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Committee at which any matter, in which that person or any member
of the person's close relative, is directly or indirectly interested in a
private capacity, is the subject of consideration, shall, as soon as is
practicable after the commencement of the meeting, disclose that
interest and shall not, unless the Procurement Committee or the
subcommittee otherwise directs, take part in any consideration or
discussion of, or vote on any question relating to, that matter.
(3) A disclosure of interest made under this section shall be
recorded in the minutes of the meeting at which it is made.
Subcommittees of Procurement Committee
erest made under this section shall be
recorded in the minutes of the meeting at which it is made.
Subcommittees of Procurement Committee
Subcommittees 19. A Procurement Committee may—
of Procurement
Committee (a) establish a sub-committee with delegated level of
authority to provide procurement authorisation for a sub
division of the procuring entity, where the sub division’s
procurement would be more effectively managed by a
sub-committee; and
(b) establish a subcommittee to carry out particular functions
of the Procurement Committee:
Provided that—
(i) the appointment of the members of the
subcommittee shall meet the requirements of
section sixteen; and
subcommittee shall meet the requirements of
section sixteen; and
(ii) the Procurement Committee shall be responsible
and accountable for the activities of any
subcommittee.
Establishment of Procurement Units
Establishment 20. (1) There shall be established in every procuring entity a
of Procurement Procurement Unit which shall be responsible for managing all
Units procurement activities of the procuring entity in accordance with
the provisions of this Act and obtaining all required approvals from
the appropriate approvals authority.
(2) Without prejudice to the generality of subsection (1), the
functions of a Procurement Unit are to
(a) plan the procurement activities of a procuring entity and
recommend the appropriate method of procurement;
(a) plan the procurement activities of a procuring entity and
recommend the appropriate method of procurement;
(b) prepare solicitation documents, bid notices, short-lists,
evaluation reports, contract award recommendations and
contracts;
(c) manage the bidding process, including pre bid meetings,
clarifications, receipt and opening of bids;
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Public Procurement [No. 12 of 2008 327
(d) manage the evaluation of bids and any post qualification
or negotiations;
(e) manage contracts and oversee contracts management by
the designated contracts manager; and
(f) prepare any procurement reports required by the Authority,
a Controlling Officer, chief executive officer or a
Procurement Committee for purposes of this Act.
Functions of
user
21. The functions of a user department, in relation to
departments
procurement, are to—
Committee for purposes of this Act.
Functions of
user
21. The functions of a user department, in relation to
departments
procurement, are to—
(a) provide information on forecast procurement requirements
to the Procurement Unit for the purposes of procurement
planning;
(b) initiate procurement requirements;
(c) provide technical inputs to the procurement process;
(d) represent the end-user of the goods, works or services in
the procurement process; and
(e) manage contracts or assist the designated contract
manager as required.
Procurement
authorisation
and levels of
authority
22. (1) The following stages of the procurement process shall
require the prior authorisation of the relevant approvals authority:
of
authority
22. (1) The following stages of the procurement process shall
require the prior authorisation of the relevant approvals authority:
(a) the use of the limited or direct bidding methods of
procurement, except where direct bidding is on the
grounds of the low value;
(b) solicitation documents prior to their issue;
(c) evaluation reports prior to any further bid opening, the
subsequent stage of evaluation or notification of award;
(d) any other documents incorporating contract award
recommendations, such as reports on negotiations, prior
to any notification of award;
(e) amendments to contracts prior to their issue;
(f) the cancellation of procurement proceedings; and
(g) the termination of a contract.
(2) The approvals authority shall be—
(a) a Controlling Officer or chief executive Officer where
the value of the procurement does not exceed the level
of authority specified in regulations issued under this Act;
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328 No. 12 of 2008] Public Procurement
the level
of authority specified in regulations issued under this Act;
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328 No. 12 of 2008] Public Procurement
(b) a Procurement Committee for all other procurement,
subject to the level of authority specified in paragraph 7
of the Second Schedule during the interim period only;
and
(c) the Central Tender Committee for any procurement in
excess of the level of authority specified in Paragraph 7
of the Second Schedule during the interim period only.
(3) Contract documents shall be authorised by a Controlling
Officer or chief executive officer prior to their issue:
Provided that the contracts are in line with the contract
award recommendations previously authorised by the
Procurement Committee.
award recommendations previously authorised by the
Procurement Committee.
(4) A Controlling Officer or chief executive officer may delegate
a level of authority, up to the maximum specified in paragraph (a)
of subsection (2), to any designated senior officer or officers,
including the head of the Procurement Unit.
(5) Any delegation made by a Controlling Officer or chief
executive officer, as the case may be under sub-section (4) shall be
in writing and copied to the head of the Procurement Unit.
(6) For purposes of subsection (2), the value of the procurement
shall be—
(6) For purposes of subsection (2), the value of the procurement
shall be—
(a) the estimated value in the case of paragraphs (a), (b)
and (f) of subsection (1) and technical evaluation reports
under paragraph (c) of subsection (1);
(b) the proposed contract value, in the case of paragraph
(d) of subsection (1) and financial evaluation reports
under paragraph (c) of subsection (1); and
(c) the original or amended contract value, whichever is
higher, in the case of paragraph (e) and (g) of subsection
(1).
higher, in the case of paragraph (e) and (g) of subsection
(1).
(7) Where the proposed or actual value of a contract exceeds
the value originally estimated for the procurement and thereby
exceeds the level of authority of the approvals authority who
authorised any previous stage in the procurement process, a
procuring entity shall make a subsequent request for authorisation
by the appropriate approvals authority, with details of the earlier
stages and prior authorisation.
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Public Procurement [No. 12 of 2008 329
h details of the earlier
stages and prior authorisation.
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Public Procurement [No. 12 of 2008 329
(7) Where the proposed or actual value of a contract exceeds
the value originally estimated for the procurement and thereby
exceeds the level of authority of the approvals authority who
authorised any previous stage in the procurement process, a
procuring entity shall make a subsequent request for authorisation
by the appropriate approvals authority, with details of the earlier
stages and prior authorisation.
[Page 21]
Public Procurement [No. 12 of 2008 329 (8) The authorisation of the appropriate approvals authority shall
be obtained for all subsequent stages in the procurement process,
save that a procurement shall not be cancelled or restarted purely
on the grounds that the authorisation was given by an approvals
authority not authorised to do so under this Act. 23.
cancelled or restarted purely
on the grounds that the authorisation was given by an approvals
authority not authorised to do so under this Act. 23.
(1) The Minister may, on the recommendation of the
Authority, by statutory instrument—
(a) designate a central agency or unit with responsibility for
the procurement of common use items for a procuring
entity or for a group of procuring entities; and
(b) specify the procedure for the use of a central agency or
unit, the common use items subject to the arrangements,
the procedure for determining such items and the
procuring entities subject to the rules. (2) A procuring entity shall, until the Minister establishes a central
agency or unit pursuant to subsection (1), procure common use
items in accordance with the provisions of this Act. 24. A procuring entity may, in such manner as may be
prescribed, appoint a procurement agent or procurement service
provider to carry out procurement functions on its behalf:
Provided that—
(a) the procurement agent or procurement service provider
shall be appointed in accordance with the provisions of
this Act; and
(b) all procurement by the procurement agent or procurement
service provider shall be undertaken in accordance with
the provisions of this Act. PART IV
METHODS OF PROCUREMENT
25.
ent agent or procurement
service provider shall be undertaken in accordance with
the provisions of this Act. PART IV
METHODS OF PROCUREMENT
25.
(1) The objective of open bidding shall be to obtain value
for money and promote private sector participation through the
maximum possible competition. (2) Except as provided for in this Act, a procuring entity shall
use open bidding for the procurement of all goods, works and non
consulting services. (3) A procuring entity shall use open national bidding or open
international bidding in accordance with section twenty-six.
Procurement
of common
use items
Use of
procurement
agent or
procurement
service
provider
Open bidding
[Page 22]
Sure, here is the transcription of the document:
use items
Use of
procurement
agent or
procurement
service
provider
Open bidding
[Page 22]
Sure, here is the transcription of the document:
(1) The objective of open bidding shall be to obtain value
for money and promote private sector participation through the
maximum possible competition. (2) Except as provided for in this Act, a procuring entity shall
use open bidding for the procurement of all goods, works and non
consulting services. (3) A procuring entity shall use open national bidding or open
international bidding in accordance with section twenty-six.
Procurement
of common
use items
Use of
procurement
agent or
procurement
service
provider
Open bidding
[Page 22]
Sure, here is the transcription of the document: 330 No. 12 of 2008] Public Procurement
National and international bidding
26. (1) Subject to subsection (2), a procuring entity shall use open national bidding for all procurement.
rement
National and international bidding
26. (1) Subject to subsection (2), a procuring entity shall use open national bidding for all procurement.
(2) A procuring entity shall use open international bidding where—
(a) the estimated value of the procurement exceeds the prescribed threshold;
(b) the goods, works or services are not available under competitive price and other conditions from at least three suppliers in Zambia; or
(c) regional or international participation is required in accordance with an agreement entered into by the Government. (3) Participation in open national bidding shall be limited to citizen and local bidders. (4) Participation in open international bidding shall be open to all bidders, including citizen, local and foreign bidders. (5) Where open international bidding is used—
(a) a bid notice shall, in addition to the national media, be published in any regional or international media; and
(b) the period for submission of bids or pre-qualification applications shall be increased to allow sufficient time for foreign bidders to respond. (6) A foreign bidder shall partner with a citizen or local supplier or bidder.
l be increased to allow sufficient time for foreign bidders to respond. (6) A foreign bidder shall partner with a citizen or local supplier or bidder.
Open selection
27. (1) The objective of open selection is to promote private sector participation to obtain the best possible shortlist in order to obtain value for money.
(2) Except as provided for in this Act, a procuring entity shall use open selection for the procurement of all consulting services.
National and international selection
28. (1) Subject to subsection (2), a procuring entity shall use open national selection in all procurements.
(2) A procuring entity shall use open international selection where—
(a) the estimated value of the procurement exceeds the prescribed threshold;
(b) the consulting services are not available under competitive price and other conditions from at least three suppliers in Zambia; or
(c) regional or international participation is required in accordance with an agreement entered into by the Government.
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Public Procurement [No. 12 of 2008 331
(3) Participation in open national selection shall be limited to
citizen and local bidders.
No. 12 of 2008 331
(3) Participation in open national selection shall be limited to
citizen and local bidders.
(4) Participation in open international selection shall be open to
all bidders, including citizen, local and foreign bidders.
(5) Where open international selection is used—
(a) a bid notice shall, in addition to the national media, be
published in any regional or international media; and
(b) the period for submission of expressions of interest shall
be increased to allow sufficient time for foreign bidders
to respond.
(6) A foreign bidder shall partner with a citizen or local supplier
or bidder.
29. (1) The objective of limited bidding is to obtain competition Limited
and value for money to the extent possible where the circumstances bidding
do not justify or permit the use of open bidding.
and value for money to the extent possible where the circumstances bidding
do not justify or permit the use of open bidding.
(2) Limited bidding may be used where—
(a) the goods, works or services are only available from a
limited number of suppliers; or
(b) there is an urgent need for the consulting services and
engaging in open bidding would therefore be impractical
30. (1) The objective of limited selection is to obtain competition Limited
and value for money to the extent possible where the circumstances selection
do not justify or permit the use of open selection.
(2) Limited selection may be used where—
(a) the consulting services are only available from a limited
number of suppliers; or
(b) there is an urgent need for the consulting services and
engaging in open selection would therefore be
impractical.
r the consulting services and
engaging in open selection would therefore be
impractical.
31. (1) The objective of simplified bidding is to obtain competition Simplified
and value for money to the extent possible, while maintaining bidding
economy and efficiency, where the circumstances do not justify
the use of open bidding.
(2) Simplified bidding may be used where the estimated value
of the goods, works or consulting or non consulting services does
not exceed the prescribed threshold.
32. (1) The objective of direct bidding shall be to achieve Direct bidding
timely and efficient procurement, where the circumstances or value
do not justify or permit the use of competition.
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332 No. 12 of 2008] Public Procurement
rcumstances or value
do not justify or permit the use of competition.
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332 No. 12 of 2008] Public Procurement
31. (1) The objective of simplified bidding is to obtain competition Simplified
and value for money to the extent possible, while maintaining bidding
economy and efficiency, where the circumstances do not justify
the use of open bidding.
(2) Simplified bidding may be used where the estimated value
of the goods, works or consulting or non consulting services does
not exceed the prescribed threshold.
32. (1) The objective of direct bidding shall be to achieve Direct bidding
timely and efficient procurement, where the circumstances or value
do not justify or permit the use of competition.
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332 No. 12 of 2008] Public Procurement
rcumstances or value
do not justify or permit the use of competition.
[Page 24]
332 No. 12 of 2008] Public Procurement
(2) Direct bidding may be used where—
(a) the goods, works or consulting or non-consulting services
are only available from a single source and no reasonable
alternative or substitute exists;
(b) due to an emergency, there is urgent need for the goods,
works or services making it impractical to use other
methods of procurement because of the time involved in
using those methods;
(c) additional goods, works or services must be procured from
the same source because of the need for compatibility,
standardisation or continuity;
(d) an existing contract could be extended for additional goods,
works or services of a similar nature and no advantage
could be obtained by further competition; or
(e) the estimated value of the goods, works or services does
not exceed the prescribed threshold.
(e) the estimated value of the goods, works or services does
not exceed the prescribed threshold.
Force account 33. (1) Force account, which is construction by the use of the
procuring entity’s own personnel and equipment, may be the only
practical method of constructing some kind of works. (2) The use of force account may be justified where—
(a) the quantities of work involved cannot be defined in
advance;
(b) the works are small and scattered or in remote locations
for which qualified construction firms are unlikely to bid
at reasonable prices;
(c) work is required to be carried out without disrupting
ongoing operations;
(d) risks of unavoidable work interruption are better borne
by the procuring entity than by a bidder or supplier; and
(e) there are emergencies needing prompt attention.
by the procuring entity than by a bidder or supplier; and
(e) there are emergencies needing prompt attention.
Purchase 34. (1) Where a procuring entity is able to fulfil a procurement
from other requirement through purchase from a Government agency and there
procuring would be no benefit in purchasing from a supplier, the procuring
entities entity may purchase directly from the Government agency without
the application of any other method of procurement:
Provided that the Government agency must be able
to meet all the procuring entity’s requirement as specified
in the statement of requirements.
[Page 25]
Public Procurement [No. 12 of 2008 333
e statement of requirements.
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Public Procurement [No. 12 of 2008 333
(2) A statutory corporation or body or company in which the Procurement
Government has a majority or controlling interest shall be eligible to of
infrastructure
participate as a bidder or supplier in public procurement in
for private
accordance with the provisions of this Act, if the statutory financing
corporation, body or company is legally and financially autonomous. and award
of
35. (1) Any award of contract for— concessions
(a) the construction, rehabilitation or operation of public
infrastructure and other public goods on the basis of
private investment;
(b) service concessions; and
infrastructure and other public goods on the basis of
private investment;
(b) service concessions; and
(c) comparable forms of contracting;
shall be subject to such special procedures as the Minister may
prescribe by statutory instrument.
(2) An award of contract made under subsection (1)—
(a) shall be consistent with the general procurement rules
set out in Part V of this Act; and
(b) may vary the procurement process set out in Part VI of
this Act to the extent necessary to meet the requirements
of the contract under this section.
36. (1) Where, in the interest of project sustainability, or to Community
achieve certain specific social objectives of the project, it is desirable participation
in selected project components to— in
procurement
(a) call for participation of local communities and non-
governmental organisations;
procurement
(a) call for participation of local communities and non-
governmental organisations;
(b) increase the utilisation of local know-how and materials;
and
(c) employ labour-intensive and other appropriate
technologies;
the procurement procedures, specifications, and contract packaging
shall be suitably adapted by the Authority to reflect these
considerations, provided these are efficient.
(2) The procedures under subsection (1) shall be specified by
statutory instrument.
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