PROCUREMENT
PROCESS
GROUP 3
KEY DEFINITIONS AND
INTRODUCTION
• Procurement” means acquisition by purchase, rent, lease, hire purchase, licence,
tenancy, franchise, or any other contractual means, of any type of works, services or
supplies or any combination;
• “Procurement process” means the successive stages in the procurement cycle including
planning, choice of procedure, measures to solicit offers from bidders, receipt and
opening of bids, evaluation, award of contract and contract management;
• Disposal; Divestiture of public assets, including intellectual and proprietary rights and
goodwill, and any other rights of a procuring and disposing entity by any means,
including the sale, rental, lease, franchise, auction, or any combination however
classified other than those regulated by the Public Enterprise Reform and Divestiture
Statute, 1993.
• Accounting Officer The “in-charge” of a procuring and disposing entity, Local
Government or a statutory body.
LEGAL FRAMEWORK OF PUBLIC
PROCUREMENT
• The Public Procurement and Disposal of Public Assets Act No. 1 of 2003 as
Amended in 2021
• The Local Government Act Cap 243 as amended by the LG (Amendment) Act,
2006;
• The Public Procurement and Disposal of Public Assets, Regulations 2014 (for
Central Government entities);
• The Local Government (Public Procurement and Disposal of Public Assets)
Regulations, 2006;
• Guidelines issued by PPDA for Central & Local Governments;
• Standard Bidding documents issued by PPDA for Central and Local Governments
The Public Procurement and Disposal of public Assets Authority
(PPDA)
• Authority” means the Public Procurement and Disposal of
Public Assets Authority established in section 5 of this Act as per the
interpretation section of the principal Act. The Authority is an
autonomous body, literally meaning that it is free from any control
and that in itself gives it a heavy independence while it executes its
mandate.
CONTINUED
• Contracts committee A team of individuals appointed by the authorised officer to
oversee the procurement and disposal of assets on behalf of the procuring agency.
• A Contract An agreement between a procuring and disposing entity and a provider
in pursuance of a bid award decision of a Contracts Committee or any other
appropriate authority
• A Bid; An offer to provide or to acquire works, services or supplies or any
combination thereof, and shall include prequalification where applicable.
• Pre-Qualification. A screening process designed to ensure that invitations to bid
are confined to capable providers.
• An award A decision to determine the successful bidder consistent with the
provisions under the Local Governments Act, as amended and PPDA Act, 2021
OBJECTIVES OF THE AUTHORITY
ensure the application of fair, competitive, transparent,
nondiscriminatory and value for money procurement and disposal
standards and practices;
advise Government, local governments and other procuring and
disposing entities on procurement and disposal policies, systems and
practices and where necessary, on their harmonization;
set standards for the public procurement and disposal systems in
Uganda;
monitor compliance of procuring and disposing entities; and
build procurement and disposal capacity in Uganda.
FUNCTIONS OF THE AUTHORITY
Policy functions, which include advising Government on procurement and disposal
policy.
Regulatory functions, which includes compliance with the law, issuing standard
documents, granting exceptions to regulations where appropriate and
audit/investigating breaches of the Regulations by procuring and disposal entities
or providers.
Data management functions, which includes maintaining a database of providers
and other databases and organising a website and other systems for publishing
procurement notices.
Capacity Building functions, which includes setting standards for training and
professional development of procurement staff and coordinating capacity building
activities in the area of procurement and disposal
PROCUREMENT AND
DISPOSAL UNIT
Procurement and Disposal Unit” means a division in each
procuring and disposing entity responsible for the execution of the
procurement and disposal function;
WHAT MAKES UP THE PROCURING
& DISPOSING UNITS
An accounting officer,
A contracts committee
The procurement and disposal unit, and
The user departments.
ACCOUNTING OFFICER
Is appointed by the secretary of Treasury, (PPDA Act, and section 26).
He/She has the overall responsibility of the execution of the
procurement and disposal process in the procuring and disposal
entity.
FUNCTIONS OF THE ACCOUNTING
OFFICER
Establishing a Contracts Committee in accordance with the act.
Appointing the members of a Contracts Committee.
Causing to be established a procurement and disposal unit staffed at an appropriate level.
Advertising bid opportunities
Communicating award decisions.
Establishing a Procurement and Disposal Unit.
Communicating awards decisions.
Certifying the availability of funds to support the procurement or disposal activities.
Investigating complaints by providers.
Submitting a copy of the complaints and reports of findings to the Public Procurement and
Disposal of Public Assets Authority; and ensuring that the implementation of the awarded
contracts is in accordance with the terms and conditions of the awards.
CONTRACTS COMMITTEE
• Contracts committee is provided for under section 27 &28 of PPDA
Act. The committee has the following functions; the functions of the
committee include
Award of contracts
Approving evaluation committee
Approving negotiation teams
Approving bid documents and contract documents
Ensuring compliance with the Act
EVALUATION COMMITTEE
• EVALUATION COMMITTEE
This is provided for under sec.37 of the Act(supra) and under section
39, all thecommittees on procurement act independently.
The Major role of evaluation committee is to evaluate the bids
submitted by bidders
USER DEPARTMENTS
User Department” means any department,division, branch
or section of the procuring and disposing entity, including any project
unit working under the authority of the procuring and disposing entity,
which initiates procurement and disposal requirements and is the user
of the requirements.
Examples National Water and Sewarage Coperation , LDC, Ministries of
Government, the Department of Legislative and Procedural Services
among others
FUNCTIONS OF THE USER
DEPARTMENT
liaise with and assist the Procurement and Disposal Unit throughout the procurement or
disposal process to the point of contract placement;
initiate procurement and disposal requirements and forward them to the Procurement
and Disposal Unit;
propose technical inputs to statements of requirements for procurement requirements
to the Procurement and Disposal Unit;
propose technical specifications to the Procurement and Disposal Unit when
necessary;
input with technical evaluation of bids received as required by the Procurement and
Disposal Unit;
arrange for payments to providers;
CONT’D
• report any departure from the terms and conditions of an awarded
contract to the Procurement and Disposal Unit;
• forward details of any required contract amendments to the
Procurement and Disposal Unit for action;
• maintain and archive records of contracts management; and
• prepare any reports required for submission to the Procurement and
Disposal Unit, the Committee or the Accounting Officer.
PROCUREMENT AND DISPOSAL
PRINCIPLES
transparency, accountability and fairness;
maximisation of competition and ensuring value for money;
confidentiality;
economy and efficiency; and
promotion of ethics.
PROCUREMENT METHODS
Open Bidding
Open International Bidding
Restricted Domestic Bidding
Restricted International Bidding;
Quotation and Proposal Method;
Micro Procurement;
Direct Procurement;
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ROLE OF THE LEGISLATIVE AND PROCEDURAL
SERVICES DEPARTMENT IN THE PROCUMENT
PROCESS.
• Ensuring that procurement procedures as laid down in the PPDA Act
are followed.
• Guiding the clerk to parliament on different procurement methods,
laws and regulations provided
• Any other legal related duty in regard to procurement
