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Procurement Procedures

PROCUREMENT METHODS

The procurement of Goods, Services, Consultants and Works is done through the various procurement methods defined and governed by the Public Procurement and Disposal of Public Assets Act [CAP 22:23]

1. Domestic and International bids

Section 10 (3) of the Procurement Regulations requires that procuring entities may invite only Zimbabwean (domestic) suppliers to bid where the price of the procurement requirement is

  • above US$20 000.00 but does not exceed US$5 000 000.00, in the case of construction works; or
  • above US$10 000.00 but does not exceed US$300 000.00, in the case of goods; or
  • above US$5 000.00 but does not exceed US$200 000.00, in the case of consultancy and non-consultancy services;

 Section 10 (4) of the Procurement Regulations further state that procuring entities shall invite bids in accordance with the Act from both Zimbabwean (domestic) and foreign (international) bidders where the price of the procurement requirement exceeds—

  • US$5 000 000.00, in the case of construction works; or
  • US$300 000.00, in the case of goods; or
  • US$200 000.00, in the case of consultancy and non-consultancy services;

2. Selection of Procurement Methods

  1. Subject to Section 30 of the Procurement Regulations, competitive bidding method of procurement is the normal method to be employed by procuring entities unless circumstances demand that other methods be employed.
  2. When a method of procurement other than competitive bidding is used, the procuring entity shall include in the record of the procurement proceedings a written justification of the decision to utilise the procurement method, including the grounds for taking that decision.

2.1 Competitive bidding method

  • In competitive bidding method of procurement, all qualified bidders should be allowed to participate in the procurement, and should be treated equally.
  • a bidding document is published in accordance with Section 38 of the Act; and
  • all eligible and qualified bidders are permitted without discrimination to submit their bids; and
  • all bids from eligible and qualified bidders are assessed according to the same criteria;
  • Competitive bidding may be held in two stages, in accordance with prescribed procedures, where—
  • it is not feasible to define fully the technical or contractual aspects of the procurement to elicit competitive bids; or because of the complex nature of the procurement requirement, the procuring entity wishes to consider various technical or contractual solutions and to discuss them with bidders before deciding on the final technical or contractual specifications.

Where the procurement requirement is of particularly high value or complexity, competitive bidding may be preceded by prescribed pre-qualification procedures, with a view to identifying qualified bidders prior to the submission of bids.

 2.2 Restricted bidding method

  • This is a procurement method where the right to bid is limited to bidders who are selected or invited by the procuring entity.
  • The restricted bidding method may be used—
  • when the time and cost of considering a large number of bids is disproportionate to the estimated value of the procurement requirement; or
  • where urgency renders impracticable the time-limit prescribed for the purpose of bidding period (Section 39 of the Act), provided that the urgency shall not be due to the procuring entity’s unjustifiable delay; or
  • for procurement contracts with an estimated value that does not exceed the prescribed threshold.

2.3 Direct procurement method

  • The procuring entity procures its requirements from one bidder or supplier without having received bids from other bidders (Section 33 of the Act)
  • A procuring entity may use the direct procurement method—
  • where no responsive bids have been submitted in response to a competitive bidding procedure: Provided that the procuring entity shall not substantially modify the requirements of the initial bid; or Public Procurement and Disposal of Public Assets
  • where, for technical or artistic reasons, or for reasons connected with protection of exclusive rights, the contract can be performed only by a particular supplier and no reasonable alternative or substitute exists; or
  • where, for reasons of extreme urgency not attributable to, and unforeseen by the procuring entity, the procurement requirement cannot be obtained in time by means of competitive bidding procedures; or
  • for additional supplies of goods or services by a supplier, where a change of supplier would cause problems of inter-changeability or incompatibility with existing equipment or discontinuity of services, which would cause significant inconvenience or substantial duplication of costs to the procuring entity; or
  • where a procuring entity procures a prototype or a first product or service from a research institute which is then developed at its request for a particular procurement contract for research, experiment, study or original development; or
  • where additional services which were not included in an initial procurement contract but which were within the objectives of the original bidding documents have, through unforeseen circumstances, become necessary to complete the services described in those documents: Provided that the total value of contracts awarded for the additional services shall not exceed fifty per centum of the amount of the original contract; or
  • for new services that repeat similar services provided under a procurement contract awarded following the competitive bidding method of procurement, where the procuring entity indicated in the original procurement notice that a direct procurement method might be used in awarding contracts for such new services; or
  • for acquisitions made under exceptionally advantageous conditions from unusual disposals such as legal forfeitures, liquidation, insolvency, judicial sale in execution or other forced sale or disposal; or
  • for the procurement of immovable property; or
  • for the procurement of spare parts of a proprietary nature.

 2.4 Request for quotations method

The procuring entity solicits at least three competitive quotations for its procurement requirement from reputable suppliers, where the price of the procurement requirement for items not covered in a framework agreement is below:-

  • US$20 000.00, in the case of construction works; or
  • US$10 000.00, in the case of goods; or
  • US$5 000.00, in the case of consultancy and non-consultancy services;

Quotations shall be sourced by way of a notice board advertisement, email, and the procuring entity website.

   In terms of Section 17 of the Regulations

  • bidders shall be given not less than three days, to prepare and submit their quotations;
  • each bidder shall be permitted to submit only one quotation, which may not be altered or negotiated;
  • sealed quotations shall be deposited unopened in a tender box which shall be opened at the end of the bidding period by a member of the procuring entity’s procurement management unit and internal audit section or by any senior officer appointed by the entity’s accounting officer: Provided that, where quotations made by e-mail or in some other electronic form are received before the end of the bidding period, they shall be printed out, marked appropriately and deposited in the tender box without delay;
  • the quotations taken from the tender box shall be opened, stamped and signed by the officers appointed to preside over the opening;

3.0 Form of communication

Section 36 provides that all communications between bidders and the procuring entity shall be in writing, and a procuring entity shall not entertain or respond to a communication from a bidder that is not in writing: Provided that a procuring entity may comply with an oral or telephonic request for the supply of a document that is generally available to bidders.

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