CHAPTER 394 - ZAMBIA NATIONAL TENDER BOARD ACT: SUBSIDIARY LEGISLATION

INDEX TO SUBSIDIARY LEGISLATION

Tender Regulations

TENDER REGULATIONS

[Section 27]

[Re-denominate the currency as stipulated under S 4 of Re-denomination Act, 8 of 2012, read with Bank of Zambia Act, 43 of 1996.]

Arrangement of Regulations

   Regulation

PART I
PRELIMINARY

   1.   Title

   2.   Interpretation

PART II
CENTRAL TENDER COMMITTEE

   3.   Establishment of Central Tender Committee

   4.   Composition of Central Tender Committee

   5.   Functions of Central Tender Committee

   6.   Proceedings of Central Tender Committee

PART III
PROVINCIAL TENDER COMMITTEES

   7.   Establishment of provincial tender committees

   8.   Composition of provincial tender committees

   9.   Functions of provincial tender committees

   10.   Proceedings of provincial tender committees

PART IV
PARASTATAL TENDER COMMITTEES

   11.   Establishment of parastatal tender committees

   12.   Small parastatal bodies

   13.   Composition of parastatal tender committees

   14.   Functions of parastatal tender committees

   15.   Proceedings of parastatal tender committees

PART V
MINISTRY TENDER COMMITTEES

   16.   Establishment of ministry tender committees

   17.   Composition of ministry tender committees

   18.   Functions of ministry tender committees

   19.   Proceedings of ministry tender committees

   20.   Procedure where tender committee not established in terms of parts III and V

   21.   <FT:Verdana,SN>Consultations on procurement under international agreement

   22.   Board to settle disputes

   23.   Delegation to other persons

<FT:Verdana,SN>   23A.   Constitution of procurement unit

<FT:Verdana,SN>   23B.   Certification of procurement unit

PART VI
FINANCIAL LIMITS FOR GOVERNMENT PURCHASES

   24.   Financial limits for Government purchases

   25.   Perishable or fragile goods

   26.   Special equipment

   27.   Purchase from Government Stores Department

   28.   Running contracts at fixed prices

   28A.   Application of procurement limits in parastatal bodies without tender committee or without certified procurement unit

PART VII
FINANCIAL LIMITS FOR PURCHASES BY PARASTATAL BODIES

   29.   Application of procurement limits in parastatal bodies

   30.   Perishable or fragile goods

PART VIII
GENERAL PROVISIONS FOR GOVERNMENT AND PARASTATAL BODIES

   31.   Formal tenders

   32.   Documents for formal tenders

   33.   Numbering of tenders

   34.   Date of submission of tenders

   35.   Reduced time limit

   36.   Extended time limit

   37.   Late tenders

   38.   Withdrawal of tenders

   39.   Procedure, etc., on opening of tenders

   40.   Tender documents

<FT:Verdana,SN>   40A.    Variation in works contracts

   41.   Tenders evaluation

   42.   Special formal tenders

   43.   Informal tenders

   44.   Tender samples

   45.   Proprietary articles as samples

   46.   Tender committee sample materials

   47.   Product specifications

   48.   Financing of works contract

   49.   Correspondence upon errors

   50.   Notification to successful tenderer

   51.   Non-anticipation of tenders

   52.   Amendment, alteration or substitution of samples, etc.

   53.   Price adjustment formulae

   54.   Invoices, etc.

   55.   Signing of contract

<FT:Verdana,SN>   55A.   Validity of purchase authorisation

   56.   Letter of intent etc.

   57.   Tenders relating to public security

   58.   Disposing of contract documents

   59.   Variation in quantities

   60.   Inspection of goods delivered

   61.   General conditions of contract

PART IX
GENERAL PROVISIONS

   62.   Offences and penalties

   63.   Tenders to be invited and approved only by board

   64.   Spent

      FIRST SCHEDULE

      SECOND SCHEDULE

      THIRD SCHEDULE

      FOURTH SCHEDULE

      FIFTH SCHEDULE

[Regulations by the Minister]

SI 151 of 1995,

SI 132 of 1996,

SI 116 of 1997,

SI 43 of 1998,

SI 59 of 1998,

SI 14 of 2007.

PART I
PRELIMINARY

 

1.   Title

These Regulations may be cited as the Tender Regulations.

 

2.   Interpretation

In these Regulations, unless the context otherwise requires—

“Board Secretary” means the Secretary to the Board appointed under section 15 of the Act;

“Central Tender Committee” means the Central Tender Committee established by regulation 3;

“certified procurement unit” means a procurement unit which has been certified by the Zambia National Tender Board under regulation 23B;

[Ins by reg 2(a) of SI 116 of 1997.]

“Controlled price” means a price of a commodity or service which is prescribed under the Control of Goods Act;

“Controlling Officer” shall have the meaning assigned to it under section 2 of the Finance (Control and Management) Act;

“formal tender” means a tender which is advertised in the Gazette;

“informal tender” means a tender which is not advertised in the Gazette, but for which competitive quotations have been obtained;

“non-responsive offer” means an offer whose contents do not conform with what is required in a tender document;

“official price” means the price of a commodity or service approved by the Central Tender Committee in a running contract;

“parastatal body” means any company, management board, association or statutory body in which the Government has a majority or controlling interest and includes a city, a municipality or a district council established under the Local Government Act;

“procurement unit” means a unit constituted under regulation 23A;

[Ins by reg 2(a) of SI 116 of 1997.]

“purchasing officer” means any officer whose responsibility it is to sign an order for the purchase of any goods or the supply of any service;

“running contract” means a contract extending over a period of time for an estimated or variable quantity of goods or services;

“supplies officer” means any person appointed as such by the Board under section 15 of the Act;

“tender committee” means a tender committee established by regulation 3, 7, 11 or 16;

....

["ZCCM" rep by reg 2(b) of SI 116 of 1997.]

PART II
CENTRAL TENDER COMMITTEE

 

3.   Establishment of Central Tender Committee

There is hereby established the Central Tender Committee, in Lusaka, which shall perform such functions of the Board as are set out in these Regulations.

 

4.   Composition of Central Tender Committee

   <FT:Verdana,SN>(1) The Central Tender Committee shall consist of the following members:

       (a)   The Permanent Secretary responsible for financial management and accounting;

      (b)   The Permanent Secretary responsible for administration at Cabinet Office;

      (c)   The Permanent Secretary responsible for Works and Supply;

      (d)    the permanent Secretary responsible for budget and economic affairs;

      (e)    the Permanent Secretary responsible for Agriculture, Food and Fisheries;

      (f)    the Permanent Secretary responsible for education;

      (g)    the Permanent Secretary responsible for Local Government

   (h)      the Director of Zambia National Tender Board;

      (i)    the Deputy Governor of the Bank of Zambia;

      (j)    the Permanent Secretary in the Ministry responsible for health.

      (k)    the Commissioner-General of the Zambia Revenue Authority; and

      (l)    the Secretary to the Zambia National Tender Board;

   

[Reg 4(1) subs by reg 3(a) of SI 116 of 1997; 4(1)(j) subs by reg 2 of SI 14 of 2007.]

   (2) There shall be a Vice-Chairman who shall be elected by the Central Tender Committee.

   (3) A member appointed under subsection (1) may in writing appoint a senior officer from the organisation he represents to be the alternate and to attend and participate in his stead at any meetings of the Tender Committee which he is unable to attend.

[Reg 4(3) ins by reg 3(b) of SI 116 of 1997.]

 

5.   Functions of Central Tender Committee

   (1) The functions of the Central Tender Committee shall be to <FT:Verdana,SN>invite, examine and where appropriate, authorise all procurement of goods, works and services for both Government and parastatal bodies whose value is above the limits authorised in these regulations for tender committees established by regulation 7, 11 or 16.

[Reg 5(1) am by reg 4(a) of SI 116 of 1997.]

   (2) Without prejudice to the generality of sub-regulation (1) the functions of the Central Tender Committee shall be to—

      (a)   <FT:Verdana,SN>invite, examine and where appropriate, award running contracts on common user goods or services;

[Reg 5(2)(a) am by reg 4(b)(i) of SI 116 of 1997.]

      (b)   <FT:Verdana,SN>examine and where appropriate, authorise the variation of tender procedures for the tender committees established under these Regulations;

[Reg 5(2)(b) am by reg 4(b)(ii) of SI 116 of 1997.]

      (c)   undertake and regulate registration of suppliers of goods, works and services.

 

6.   Proceedings of Central Tender Committee

   (1) Except as otherwise provided for in these Regulations, the Central Tender Committee shall determine its own procedure.

   (2) The Central Tender Committee shall meet at such times and such places being not less than once in a month as the Chairman may determine.

   (3) The Central Tender Committee shall cause minutes to be kept of the proceedings of every meeting and such minutes shall be transmitted to the Board as soon as practicable after the meeting at which they are confirmed.

   (4) The Central Tender Committee may establish sub-committees and may appoint as members of such sub-committees, persons who are, or are not, members of the Central Tender Committee for any specific matter.

   (5)The quorum of the Central Tender Committee shall be one half of the members.

[Reg 6(5) ins by reg 5 of SI 116 of 1997.]

   (6) The Central Tender Committee shall communicate the decisions including any refusal and the grounds for the refusal to the Chief Executive Officer or the Controlling Officer, within seven days from the date of the meetings where such a decision is made.

[Reg 6(6) ins by reg 5 of SI 116 of 1997.]

PART III
PROVINCIAL TENDER COMMITTEES

 

7.   Establishment of provincial tender committees

There is hereby established, in each province, a provincial tender committee for the procurement of goods, works and services in respect of provincial heads of expenditure falling under controlling officers designated as such in terms of section 4 of the Finance (Control and Management) Act.

 

8.   Composition of provincial tender committees

   (1) A provincial tender committee shall consist of the following members:

      (a)   the Permanent Secretary for the Province, who shall be Chairman;

      (b)   The Deputy Permanent Secretary for the Province, who shall be Vice-Chairman;

      (c)   the head of the Provincial Accounting Unit;

      (d)   the Provincial Agricultural Officer;

      (e)   the Provincial Commissioner of Works;

      (f)   the Provincial Education Officer;

      (g)   the Provincial Marketing and Co-operative Officer;

      (h)   the Provincial Medical Officer; and

      (i)   <FT:Verdana,SN>two other members of high standing, other than civil servants, who are ordinarily resident in the province and who shall be appointed by the Board for a period not exceeding two years.

[Reg 8(1)(i) am by reg 6(a) of SI 116 of 1997.]

   (2) The <FT:Verdana,SN>procurement or supplies officer, shall be appointed Secretary of the tender committee.

[Reg 8(2) am by reg 6(b) of SI 116 of 1997.]

   (3) A provincial tender committee may invite any person, whose presence is in its opinion desirable to attend and participate in the deliberations of the meetings of the Committee, but such person shall have not vote.

[Reg 8(3) ins by reg 6(c) of SI 116 of 1997.]

 

9.   Functions of provincial tender committees

   (1) The functions of a provincial tender committee shall be to <FT:Verdana,SN>invite, examine and where appropriate, authorise tenders relating to the procurement of goods, works and services for the Government within the limits provided for in Part VI.

[Reg 9(1) am by reg 7(a) of SI 116 of 1997.]

   (2) Without prejudice to the generality of sub-regulation (1), a provincial tender committee shall within limits provided for in Part VI of these Regulations <FT:Verdana,SN>invite, examine and where appropriate, award running contracts on foodstuffs to be supplied to Government institutions whose expenditure heads fall under the control of the Provincial Permanent Secretaries.

[Reg 9(2) am by reg 7(b) of SI 116 of 1997.]

   (3) A provincial tender committee shall perform its functions in accordance with the provisions of <FT:Verdana,SN>Part VI, VIII and IX.

[Reg 9(3) am by reg 7(c) of SI 116 of 1997.]

 

10.   Proceedings of provincial tender committees

   (1) Except as provided for in these Regulations, a provincial tender committee shall determine its own procedure.

   (2) A provincial tender committee—

      (a)   shall meet at such times and such places being not less than once in a month as the Chairman may determine;

      (b)   shall cause minutes to be kept of the proceedings of every meeting and such minutes shall be transmitted to the Board as soon as practicable after the meeting at which they are confirmed; and

      (c)   may establish sub-committees and appoint as members, of such sub-committees persons who are, or are not, members of the provincial tender committee for the purpose of advising the committee on any specific matter.

   (3) The quorum at any meeting of a provincial tender committee shall be one half of the members.

[Reg 10(3) ins by reg 8 of SI 116 of 1997.]

   (4) The secretary of a provincial tender committee shall communicate all decisions, including any refusal and the grounds for the refusal, to heads of departments or organisations within seven days of such decision.

[Reg 10(4) ins by reg 8 of SI 116 of 1997.]

PART IV
PARASTATAL TENDER COMMITTEES

 

11.   Establishment of parastatal tender committees

There is hereby established in the governing body of every parastatal body a parastatal tender committee.

 

12.   Small parastatal bodies

Notwithstanding regulation 11, where the physical structure of a particular parastatal body is too small to be able to constitute a tender committee in accordance with these Regulations, the Board shall prescribe the procedures to be followed by such a parastatal body.

 

13.   Composition of parastatal tender committees

   (1) A city or municipal council tender committee shall consist of the following members;

      (a)   The Town Clerk, who shall be Chairman;

      (b)   the Director of Administration, who shall be Vice-Chairman;

      (c)   the Director of Finance;

      (d)   the Director of Engineering;

      (e)   the Director of Housing and Social Services;

      (f)   the Director of Legal Services;

      (g)   the Director of Public Health; and

      (h)   two other members, other than members of the council, who are ordinarily, resident in the district, and who shall be appointed by the Board for a period of two years.

   (2) The head of the section responsible for purchasing and supply in the council shall be appointed <FT:Verdana,SN>as the Secretary of the tender committee.

[Reg 13(2) am by reg 9(a) of SI 116 of 1997.]

   <FT:Verdana,SN>(3) A district council tender committee shall consist of-

      (a)    the Chief Executive of the local authority who shall be the Chairman;

      (b)    the Head of Administration of the local authority;

      (c)    the Director of Works;

      (d)    the Head of Finance

      (e)    the Chief Executive of the District Health Board;

      (f)    the District Education Officer;

      (g)    the District Agricultural Officer;

      (h)    the Headmaster of one of the secondary schools in the district; and

   (i)    the administrative officer of the District Council, who shall be the secretary.

[Reg 13(3) subs by reg 9(b) of SI 116 of 1997.]

   (4) A tender committee for a parastatal body, other than a local authority established under the Local Government Act, shall consist of eight members appointed by the Board, on the recommendation of the Chief Executive:

Provided that-

      (a)    five of the members shall be heads of departments from the key departments of the parastatal body of which one shall be head of the purchasing department; and

      (b)    two shall be from outside the parastatal body.

[Reg 13(4) subs by reg 9(b) of SI 116 of 1997.]

   (5) The Chief Executive of a parastatal body shall be the Chair-man of the tender committee established under sub-regulation (4);

[Reg 13(5) subs by reg 9(b) of SI 116 of 1997.]

   (6) The Vice-Chairman of a tender committee established under sub-regulation (4) shall be appointed by the members of the tender committee.

[Reg 13(6) am by reg 9(c) of SI 116 of 1997.]

   (7) The head of the department responsible for purchasing and supply in a parastatal shall be the secretary to the tender committee.

[Reg 13(7) ins by reg 9(d) of SI 116 of 1997.]

   (8) Notwithstanding sub-regulation (7) a person employed in the accounting or finance department of a parastatal shall not be appointed as secretary to the tender committee.

[Reg 13(8) ins by reg 9(d) of SI 116 of 1997.]

 

14.   Functions of parastatal tender committees

   (1) The functions of a parastatal tender committee shall be to invite, examine and where appropriate, authorise the procurement of goods, services and works within limits specified in Part VII:

Provided that the operating expenditure in the form of trading, investments or business nature shall not be subject to the limits specified in Part VII.

[Reg 14(1) subs by reg 10(a) of SI 116 of 1997.]

   (2) Without prejudice to the generality of sub-regulation (1), a parastatal tender committee shall—

      (a)   invite, examine and where appropriate, award running contracts; and

[Reg 14(2)(a) am by reg 10(b)(i) of SI 116 of 1997.]

      (b)   examine and where appropriate, authorise the variation of tender procedures.

[Reg 14(2)(b) am by reg 10(b)(ii) of SI 116 of 1997.]

   (3) A parastatal tender committee, other than that of a local authority established under the Local Government Act, shall perform its functions in accordance with the provisions of Part VIII and IX.

[Reg 14(3) subs by reg 10(c) of SI 116 of 1997.]

   (4) A local authority tender committee shall perform the functions in accordance with the provisions of Part VI, VII and IX.

{mprestriction ids="1,2,3,5"}

[Reg 14(4) ins by reg 10(d) of SI 116 of 1997.]

 

15.   Proceedings of parastatal tender committees

   (1) Except as provided for in these Regulations a parastatal tender committee shall determine its own procedure.

   (2) A parastatal tender committee shall meet at such times and places being not less than once in a month as the Chairman may determine.

   (3) A parastatal tender committee may establish sub-committees which shall consist of persons who are, or are not, members of the committee for the purpose of advising the committee on any specific matter.

   (4) A parastatal tender committee shall cause minutes to be kept of the proceedings of every meeting and such minutes shall be transmitted to the Board as soon as practicable after the meeting at which they are confirmed.

   (5) A parastatal tender committee may invite any person, whose whose presence is in its opinion desirable to attend and to participate in the deliberations of the meetings of the committee, but such a person shall have no vote.

[Reg 15(5) ins by reg 11 of SI 116 of 1997.]

   (6) The secretary of the parastatal tender committee shall communicate all decisions to heads of departments or organisations, including any refusal and the grounds for the refusal within seven days of the decision.

[Reg 15(6) ins by reg 11 of SI 116 of 1997.]

   (7) At any meeting of the parastatal tender committee, one half of the members shall form a quorum.

[Reg 15(7) ins by reg 11 of SI 116 of 1997.]

PART V
MINISTRY TENDER COMMITTEES

 

16.   Establishment of ministry tender committees

There is hereby established in each ministry of Government a tender committee for the procurement of <FT:Verdana,SN>goods, services and works.

[Reg 16 am by reg 12 of SI 116 of 1997.]

 

17.   Composition of ministry tender committees

A ministry tender committee shall consist of—

      (a)   the controlling officer, who shall be the Chairman;

      (b)   an officer of at least deputy permanent secretary rank, who shall be Vice-Chairman;

      (c)   the Head of the accounting unit;

      (d)   the Head of the procurement unit;

   (<FT:Verdana,SN>e) the heads of not more than four key departments;

[Reg 17(e) subs by reg 13(a) of SI 116 of 1997.]

      (f)   a <FT:Verdana,SN>procurement or supplies officer, who shall be the Secretary.

[Reg 17(f) am by reg 13(b) of SI 116 of 1997.]

 

18.   Functions of ministry tender committees

   (1) The functions of a ministry tender committee shall be to <FT:Verdana,SN>invite, examine and where appropriate, authorise tenders relating to the procurement of goods and services for its ministry within the limits provided for in Part VI.

[Reg 18(1) am by reg 14(a) of SI 116 of 1997.]

   (2) A ministry tender committee shall perform its functions in accordance with Part VI, VIII and IX.

[Reg 18(2) am by reg 14(b) of SI 116 of 1997.]

 

19.   Proceedings of ministry tender committee

   (1) Except as otherwise provided for in these Regulations, a ministry tender committee shall determine its own procedure.

   (2) A ministry tender committee shall meet at such times and such places as the Chairman may determine, but not less than once a month.

   (3) A ministry tender committee shall cause minutes to be kept of the proceedings of every meeting and the minutes shall be transmitted to the Board as soon as practicable after the meeting at which they are confirmed.

   (4) A ministerial tender committee, may establish sub-committees which shall consist of persons who are, or are not members of the committee to advise on any specific matter.

[Reg 19(4) ins by reg 15 of SI 116 of 1997.]

   (5) A ministerial tender committee may invite any person, whose presence is in its opinion desirable to attend and participate in the deliberations of the meetings of the committee, but such person shall have no vote.

[Reg 19(5) ins by reg 15 of SI 116 of 1997.]

   (6) At any meeting of a ministerial tender committee, one half of the members shall form a quorum.

[Reg 19(6) ins by reg 15 of SI 116 of 1997.]

   (7) The secretary of the ministerial tender committee shall communicate all decisions made to the heads of departments of Government ministries or organisations including any refusal and grounds for the refusal, within seven days from the date of decision.

[Reg 19(7) ins by reg 15 of SI 116 of 1997.]

 

20.   Procedure where tender committee not established in terms of Parts III and V

The Board shall prescribe the procedure to be followed by a Government ministry or department where a tender committee has not been established in terms of Part III and this Part.

 

21.   <FT:Verdana,SN>Consultations on procurement under international agreement

The Controlling Officer or Chief Executive shall consult the Zambia National Tender Board for its approval on the procurement provisions under any international, bilateral or multilateral agreement.

[Reg 21 subs by reg 16 of SI 116 of 1997.]

 

22.   Board to settle disputes

Where a dispute between a tender committee and a contractor arises and the two parties fail to resolve the dispute amicably, either of the parties may refer the dispute to the Board for a decision.

 

23.   Delegation to other persons

The Board shall delegate to a tender committee such of its functions relating to the procurement of goods and services as provided in these Regulations.

 

23A.   Constitution of procurement unit

   (1) Each tender committee established under regulations, 7, 11 and 16 shall constitute a procurement unit which shall consist of the heads of purchasing and supplies and not more than six other officers responsible for purchasing and supplies.

   (2) The functions of the procurement unit shall be to invite, receive, process and make recommendations on tenders for the procurement of goods, works and services whose value is above the limits authorised in these Regulations for tender committees established by regulations 7, 11 and 16.

[Reg 23A ins by reg 17 of SI 116 of 1997.]

 

23B.   Certification of procurement unit

The Zambia National Tender Board shall on such terms and conditions as it thinks fit, certify a procurement unit constituted under regulation 23A in categories as specified in the Fifth Schedule in the Appendix to these Regulations.

[Reg 23B ins by reg 17 of SI 116 of 1997.]

PART VI
FINANCIAL LIMITS FOR GOVERNMENT PURCHASES

 

24.   Financial limits for Government purchases

   <FT:Verdana,SN>(1) Where the estimated value of goods, services or works for Government purchases—

      (a)   does not exceed two hundred thousand kwacha, informal tenders shall be invited, examined and where appropriate, authorise for acceptance for the purpose by the Controlling Officer;

      (b)   exceeds two hundred kwacha but does not exceed two million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the Head of Department with the approval the Controlling Officer;

   (c)    exceeds two million kwacha but does not exceed five million kwacha, informal tenders shall be invited, examined an where appropriate authorized for acceptance by the Controlling Officer;

[Reg 24(1)(c) subs by reg 2 of SI 43 of 1998.]

      (d)   exceeds five million kwacha but does not exceed fifteen million kwacha informal tenders shall be invited, examined and where appropriate, authorized for acceptance by the Ministry or Provincial Tender Committee;

[Reg 24(1)(d) subs by reg 2 of SI 43 of 1998.]

      (e)    exceeds fifteen million kwacha but does not exceed twenty-five million kwacha, informal tender shall be invited, examined and where appropriate, authorized by the Central Tender Committee; and

[Reg 24(1)(e) subs by reg 2 of SI 43 of 1998.]

      (f)    exceeds twenty-five million kwacha, formal tenders shall be invited, examined and where appropriate authorized for acceptance by the Zambia National Tender Board.

[Reg 24(1)(f) ins by reg 2 of SI 43 of 1998.]

   <FT:Verdana,SN>(2) The financial limits specified in sub-paragraph (1) shall be administered under the following conditions—

      (a)    the estimated value shall include the total value of all items which can reasonably be obtained at any one time in one requisition or in one contract;

      (b)    the supply or service shall not be sub-divided or deliberately underestimated in order to bring the total value within the limits set in sub-paragraph (1); and

      (c)    procurement of the same type of goods and services within the limits given to Controlling Officers and their subordinate staff shall not be undertaken more than once in every three months.

   (3) Notwithstanding sub-regulation (1)-

      (a)    the Zambia National Tender Board shall procure for ministries without procurement units for values exceeding fifteen million kwacha;

      (b)    ministries with procurement units which have not yet been certified by the Zambia National Tender Board under regulation 23B, shall procure as follows:

      (i)    where the value of goods, works and services exceed fifteen million kwacha, but does not exceed twenty-five million kwacha formal tenders shall be invited, examined and where appropriate, authorised for acceptance by the Ministry or provincial tender committee; and

      (ii)    where the value of goods, works or services exceeds twenty-five million kwacha formal tenders shall be invited, examined and where appropriate, authorised for acceptance by the Central Tender Committee;

      (c)    ministries with certified procurement units shall procure as follows:

      (i)    where the value of the goods, services or works exceeds fifteen million kwacha but does not exceed one hundred million kwacha, forma tenders shall be invited, examined and where appropriate authorised for acceptance for a procurement unit certified as category “A”, by the Ministry or provincial tender committee;

      (ii)    where the value of the goods, services or works exceeds one hundred million kwacha, formal tenders shall be invited, examined and where appropriate authorised for acceptance for category “A” procurement units by the Central Tender Committee;

      (iii)    where the value exceeds fifteen million but does not exceed two hundred and fifty million kwacha, formal tenders shall be invited, examined and where appropriate authorised for acceptance as category “B”, by the Ministry or provincial tender committee;

      (iv)    where the value exceeds two hundred and fifty million kwacha, formal tenders shall be invited, examined and where appropriate authorised for acceptance for a procurement unit certified as category “B” by the Central Tender Committee;

      (v)     where the value exceeds fifteen million kwacha, but does not exceed six hundred million kwacha, formal tenders shall be invited, examined and where appropriate authorised for acceptance for a procurement unit certified as category “C” by the Ministry or a provincial tender committee;

      (vi)    where the value exceeds six hundred million kwacha, formal tenders shall be invited, examined and where appropriate authorised for acceptance for a procurement unit certified as category “C” by the Central Tender Committee.

[Reg 24 subs by reg 18 of SI 116 of 1997.]

 

25.   Perishable or fragile goods

Contracts for the supply of articles of a fragile or perishable nature shall, so far as may be practicable, be awarded to a supplier nearest to the point where the supplies are required.

 

26.   Special equipment

Equipment including vehicles, machinery, tools and spares for Government, shall, as far as it is practicable, be obtained by the ministry responsible for works and supply.

 

27.   Purchase from Government Stores Department

   (1) A purchasing officer shall purchase from the Government Stores any items included in the approved current Stores Catalogue unless such items are not available.

   (2) Where items are not available at Government Stores, a certificate of non-availability from Government Stores shall be obtained.

 

28.   Running contracts at fixed prices

   (1) A purchasing officer may place orders directly with suppliers at agreed rates under such contracts as may have been arranged either by the Central Tender Committee or a provincial tender committee.

   (2) Controlling Officers, purchasing officers and provincial Permanent Secretaries shall ensure that the fullest advantage is taken of running contracts.

 

28A.   Application of procurement limits in parastatal bodies without tender committee or without certified procurement unit

   (1) where the estimated value of goods, services and works for a parastatal body without a tender committee or without a certified procurement unit

      (a)    does not exceed two hundred thousand kwacha informal tenders shall be invited, examined and where appropriate, authorised for acceptance by a senior officer generally designated for the purpose by the Chief Executive;

      (b)     exceeds two hundred thousand kwacha but does not exceed two million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the head of department;

      (c)    exceed two million kwacha but does not exceed five million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the Chief Executive; or

      (d)    exceed five million kwacha, but does not exceed million kwacha, formal tenders shall be invited, examined and where appropriate, authorised for acceptance by the Chief Executive; or

       (e)    exceed fifteen million kwacha, formal tenders shall be invited, examined and where appropriate, authorised for acceptance by the Central Tender Committee.

   (2) Notwithstanding sub-regulation (1) where the estimated value of goods, services or works for a parastatal body with a procurement unit certified as category “A”-

      (a)    does not exceed two hundred thousand kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by a senior officer generally designated for the purpose by the Chief Executive;

      (b)    exceeds two hundred thousand kwacha but does not exceed two million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the head of department;

      (c)    exceeds two million kwacha but does not exceed five million kwacha, informal tenders shall be invited, examined and where appropriate authorised for acceptance by the Chief Executive;

      (d)    exceeds five million kwacha but does not exceed fifteen million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the tender committee;

      (e)    exceeds fifteen million kwacha but does not exceed one hundred milliom kwacha, formal tenders shall be invited, examined and where appropriate, authorised for acceptance by the tender committee;

      (f)    exceeds one hundred million kwacha, formal tenders shall be invited, examined and where appropriate, authorised for acceptance by the Central Tender Committee.

   (3) Any tender under the provisions of paragraph (e) of sub -regulation ( 2) shall be subject to the granting of a no objection certificate by the Director, Zambia National Tender Board for-

      (a)    the proposed tender documents and tendering process; and

      (b)    the review of evaluation and recommendations accepted by the tender committee.

   (4) Notwithstanding sub-regulation (2) where the estimated value of goods, services or works for a parastatal body with a procurement unit certified as category “B”-

      (a)    does not exceed two hundred thousand kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by a senior official designated for the purpose by the Chief Executive;

      (b)    exceeds two hundred thousand kwacha but does not exceed two million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the head of department;

      (c)    exceeds two million kwacha but does not exceed five million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the Chief Executive;

      (d)    exceeds five million kwacha but does not exceed fifteen million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the tender committee; or

      (e)    exceeds fifteen million kwacha but does not exceed two hundred and fifty million kwacha, formal tenders shall be invited, examined and where appropriate authorised for acceptance by the tender committee;

      (f)   exceeds two hundred and fifty million kwacha, formal tenders shall be invited, examined and where appropriate authorised for acceptance by the Central Tender Committee.

   (5) any tender under the provisions of paragraph (e) of sub-regulation (4) shall be subject to the granting of a no objection certificate by the Zambia National Tender Board for-

      (a)   the proposed tender documents and recommendations accepted by the tendering process; and

      (b)    the review of the evaluation and recommendations accepted by the tender committee.

   (6) Notwithstanding sub-regulation (2) where the estimated value of goods, services or works for a parastatal body with procurement unit certified as category “C”-

      (a)    does not exceed two hundred thousand kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by senior officers generally designated for the purpose by the Chief Executive;

      (b)    exceeds two hundred thousand kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the head of department;

      (c)    exceeds two million kwacha but does not exceed five million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the Chief Executive;

[Reg 28A(6)(c) am by reg 3 of SI 43 of 1998.]

      (d)    exceeds five million kwacha but does not exceed twenty-five million kwacha, informal tenders shall be invited, examined and where appropriate, authorised for acceptance by the tender committee;

      (e)    exceeds twenty-five million kwacha but does not exceed six hundred million kwacha, formal tenders shall be invited, examined and where appropriate, authorised for acceptance by the tender committee;

      (f)     exceeds six hundred million kwacha, formal tenders shall be invited, examined and where appropriate authorised for acceptance by the Central Tender Committee;

   (7) Any tender under the provisions of paragraph (e) of sub-regulation (6) shall be subject to the granting of no objection certificate by the Zambia National Tender Boar for-

      (a)    the review of evaluation and recommendations accepted by the tender committee; or

      (b)    the proposed tender documents and tendering process.

[Reg 28A ins by reg 19 of SI 116 of 1997.]

PART VII
FINANCIAL LIMITS FOR PURCHASES BY PARASTATAL BODIES

 

29.   Application of procurement limits in parastatal bodies

   (1) Where the estimated value of goods, works and services for a city or municipal council—

      (a)   does not exceed <FT:Verdana,SN>two hundred thousand kwacha, informal tenders shall be invited and authorised for acceptance by a senior officer generally or specially designated for that purpose by the Town Clerk;

[Reg 29(1)(a) am by reg 20(a)(i) of SI 116 of 1997.]

      (b)   exceeds <FT:Verdana,SN>two hundred thousand kwacha, but does not exceed <FT:Verdana,SN>five million kwacha, informal tenders shall be invited and authorised for acceptance by the relevant Head of Department;

[Reg 29(1)(b) am by reg 20(a)(ii) of SI 116 of 1997.]

      (c)   exceeds<FT:Verdana,SN>five million kwacha, but does not exceed <FT:Verdana,SN>fifteen million kwacha, informal tenders shall be invited and authorised for acceptance by a tender committee;

[Reg 29(1)(c) am by reg 20(a)(iii) of SI 116 of 1997.]

      (d)   exceeds <FT:Verdana,SN>fifteen million kwacha, but does not exceed <FT:Verdana,SN>one hundred million kwacha” respectively, formal tenders shall be invited and authorised for acceptance by a tender committee; or

[Reg 29(1)(d) am by reg 20(a)(iv) of SI 116 of 1997.]

      (e)   exceeds <FT:Verdana,SN>one hundred million kwacha, formal tenders shall be invited and authorised for acceptance by the Central Tender Committee.

[Reg 29(1)(e) am by reg 20(a)(v) of SI 116 of 1997.]

   (2) Where the estimated value of goods, works or services for a district council—

      (a)   does not exceed <FT:Verdana,SN>two hundred thousand kwacha, informal tenders shall be invited and authorised for acceptance by a senior officer generally or specially designated for that purpose by the Secretary;

[Reg 29(2)(a) am by reg 20(b)(i) of SI 116 of 1997.]

      (b)   exceeds <FT:Verdana,SN>two hundred thousand Kwacha, but does not exceed five million kwacha, informal tenders shall be invited and authorised for acceptance by the Secretary;

[Reg 29(2)(b) am by reg 20(b)(ii) of SI 116 of 1997.]

      (c)   exceeds <FT:Verdana,SN>five million kwacha, but does not exceed <FT:Verdana,SN>fifteen million kwacha, informal tenders shall be invited and authorised for acceptance by a tender committee;

[Reg 29(2)(c) am by reg 20(b)(iii) of SI 116 of 1997.]

      (d)   exceeds <FT:Verdana,SN>fifteen million kwacha, but does not exceed <FT:Verdana,SN>one hundred million kwacha, formal tenders shall be invited and authorised for acceptance by a tender committee;

[Reg 29(2)(d) am by reg 20(b)(iv) of SI 116 of 1997.]

      (e)   exceeds <FT:Verdana,SN>one hundred million kwacha, formal tenders shall be invited and authorised for acceptance by the Central Tender Committee.

[Reg 29(2)(e) am by reg 20(b)(v) of SI 116 of 1997.]

   (3) Where the estimated value of goods and services for parastatal bodies other than those provided for under sub-paragraphs (1), (2) and (4)—

      (a)   does not exceed <FT:Verdana,SN>one hundred thousand kwacha, informal tenders shall be invited and authorised for acceptance by a senior officer generally or specially designated for that purpose by the Chief Executive;

[Reg 29(3)(a) am by reg 20(c)(i) of SI 116 of 1997.]

      (b)   exceeds <FT:Verdana,SN>two hundred thousand kwacha, but does not exceed <FT:Verdana,SN>five million kwacha, informal tenders shall be invited and authorised for acceptance by the relevant Head of Department;

[Reg 29(3)(b) am by reg 20(c)(ii) of SI 116 of 1997.]

      (c)   exceeds <FT:Verdana,SN>five million kwacha, but does not exceed <FT:Verdana,SN>fifteen million kwacha, informal tenders shall be invited and authorised for acceptance by a tender committee;

[Reg 29(3)(c) am by reg 20(c)(iii) of SI 116 of 1997.]

      (d)   exceeds <FT:Verdana,SN>fifteen million kwacha, but does not exceed one hundred million kwacha, formal tenders shall be invited and authorised for acceptance by <FT:Verdana,SN>a tender committee.

[Reg 29(3)(d) am by reg 20(c)(iv) of SI 116 of 1997.]

(e) exceeds one hundred million kwacha, formal tenders shall be invited, examined and where appropriate, authorise for acceptance by the Central Tender Committee;

[Reg 29(3)(e) ins by reg 20(c)(v) of SI 116 of 1997.]

   (4) Where in ZCCM—

      (a)   operating expenditure which is not of a capital nature, and the estimated value of goods or services—

      (i)   does not exceed <FT:Verdana,SN>one hundred million kwacha, tenders shall be invited and authorised for acceptance by any senior officer deisgnated for the purpose by the Chief Executive;

[Reg 29(4)(a)(i) am by reg 20(d)(i) of SI 116 of 1997.]

      (ii)   exceeds <FT:Verdana,SN>one hundred million kwacha, tenders will be invited and authorised for acceptance by the ZCCM tender committee;

[Reg 29(4)(a)(ii) am by reg 20(d)(ii) of SI 116 of 1997.]

      (b)   capital expenditure involves Government funding or guarantees, and the estimated value for goods, works and services—

      (i)   does not exceed <FT:Verdana,SN>one hundred million kwacha, tenders shall be invited and authorised for acceptance by the ZCCM tender committee;

[Reg 29(4)(b)(i) am by reg 20(d)(iii) of SI 116 of 1997.]

      (ii)   exceeds <FT:Verdana,SN>one hundred million kwacha, formal tenders shall be invited and authorised for acceptance by the Central Tender Committee.

[Reg 29(4)(b)(ii) am by reg 20(d)(iv) of SI 116 of 1997.]

 

30.   Perishable or fragile goods

Contracts for the supply of articles of a fragile or perishable nature shall, so far as may be practicable, be awarded at the centre where the supplies are required.

PART VIII
GENERAL PROVISIONS FOR GOVERNMENT AND PARASTATAL BODIES

 

31.   Formal tenders

When formal tenders are to be invited a tender committee shall ensure that—

      (a)   there is a concise description of the goods or services required;

      (b)   an estimate of costs and completion time for building and construction works has been obtained;

      (c)   the point of delivery of goods or the place where work is to be performed is specified;

      (d)   the name and address of the office from which tender documents, detailed specifications or further particulars may be obtained has been specified;

      (e)   the closing date for receipt of tenders by the tender committee has been stated;

      (f)   the names of newspapers, trade papers, periodicals or other media in which it is suggested that tenders be further advertised has been specified; and

      (g)   written assurance has been obtained by the Controlling Officer or the Chief Executive, as the case may be, that funds have been voted for such project, works or services and such funds as are required to make stage payments shall be made available on time.

 

32.   Documents for formal tenders

Each application to a tender committee for the advertisement of a tender shall be accompanied by copies of the tender documents, specifications and other relevant particulars applicable to the type of tender.

 

33.   Numbering of tenders

   (1) Each application to a tender committee for the advertisement of a tender shall be given a separate reference number by the tender committee

   (2) The reference number referred to under sub-regulation (1) shall identify the tender, and the tenderer shall quote it on all tender documents and print it on the envelop or other document in which formal tenders are submitted.

 

34.   Date of submission of tenders

   (1) An offer to tender shall be in the form set out in the First Schedule.

   (2) An offer to tender shall be submitted within a period of—

      (a)   not less than four weeks after the date of publication of the invitation to tender, or

      (b)   not less than eight weeks after the date of publication of the invitation to tender in the case of tenders invited from outside Zambia.

 

35.   Reduced time limit

Where a Controlling Officer or Chief Executive intends to reduce the time allowed for tender under paragraph 34 he shall inform the appropriate tender committee and give full reasons, in writing, for the proposed reduction.

 

36.   Extended time limit

   (1) If, after the invitation to tender has been published, a Controlling Officer or Chief Executive wishes to have the published time limit extended, he shall inform the appropriate tender committee of his proposed date and give full reasons, in writing, for the extension.

   (2) The extension, if granted, shall be published through the same media that published the original invitation to tender.

 

37.   Late tenders

A tender received after the closing time shall be stamped, recorded in a register and returned to the tenderer concerned without being considered.

 

38.   Withdrawal of tenders

   (1) A notification of a withdrawal of a tender shall be in the form set out in the Second Schedule.

   (2) A withdrawal of a tender shall only be valid if received before the closing time of the tender.

   (3) A withdrawal of a tender received after the closing date shall be stamped, recorded in a register and returned to the tenderer concerned.

   (4) The tender that was submitted and letter of withdrawal shall be announced at the public opening, after which, the withdrawn tender shall be declared non-responsive and recorded as such.

 

39.   Procedure etc., on opening of tenders

   (1) All tenders shall be opened—

      (a)   by the Secretary of the tender committee or any person authorised by the tender committee in that behalf;

      (b)   in public, at the offices of the tender committee; and

      (c)   on a day, other than a public holiday, or the day following a public holiday.

   (2) The tender committee shall scrutinise tenders for completeness and the following tenders shall be considered non-responsive—

      (a)   a tender submitted after the closing date;

      (b)   a tender sent by telex, telephone or telegraph;

      (c)   a tender not accompanied by tender security, where required;

      (d)   a tender with insufficient information concerning specifications, prices and delivery;

      (e)   unsolicited offers; or

      (f)   a tender upon which the tenderer has made revisions on his own after the tender opening.

   (3) Any person may attend to witness the opening of tenders.

   (4) The following procedure shall apply when tenders are being opened:

      (a)   each priced page shall be embossed;

      (b)   the name of the tenderer and the tender number shall be announced; and

      (c)   the total tender price, quantity offered and delivery period shall be read out, but where unit prices are quoted these need not be announced.

   (5) A record of persons attending each tender opening and those who have tendered, shall be maintained.

   (6) Envelopes in which tenders and tender modifications are received shall be retained in a temporary file until all the awards have been made.

 

40.   Tender documents

Tender documents shall state the following–

      (a)   that the lowest tender shall not necessarily be accepted;

   

[Reg 40(a) am by reg 21(a) of SI 116 of 1997.]

      (b)   that no tender shall be considered unless it is delivered to the tender committee by the closing date and time published and that this shall apply notwithstanding that the tender may be delayed in the post;

      (c)   that tenders shall not be considered unless they comply fully with the advertised specifications and other requirements;

      (d)   that tenderers shall be at liberty to tender for less goods or services than required only when the notice of tender so provides;

      (e)   that each tender shall be submitted in a separate sealed envelope or other container to the tender committee and that the tenderer shall print the number of the advertised tender notice and a brief description of the goods, works or services being tendered for on the envelope or container;

      (f)   that tenders for goods shall state—

      (i)   the country of manufacture and the name of the manufacturer of the goods;

      (ii)   for goods manufactured outside Zambia, whether the supply is offered from stocks on which import duty and value added tax have been charged or from stocks which will be directly imported free of duty and value added tax; if the former is the case, the value of goods on which import duty and value added tax have been calculated shall be stated;

      (iii)   if import duty and value added tax have been paid, either on the items offered or on the material imported for their manufacture, the amount of duty and value added tax paid shall be stated;

      (iv)   for goods tendered for by tenderers within Zambia, whether reserve stocks are held in Zambia and whether any kind of after sales service is available;

      (g)   that the contractor shall be responsible for the safe arrival or delivery of supplies; and in order to mitigate his responsibility, if the contractor insures the supplies and any other liability under the contract, the cost of which shall be borne by him, than the contract price shall be deemed to be inclusive of all insurance charges;

      (h)   that the contractor shall bear the full financial consequences of any material damage or personal injuries which, through his action or his agent’s, may be suffered by himself, his agents or any third party during the performance of the contract, either on the contractor’s premises, purchaser’s premises or anywhere else;

      (i)   that priced bills of quantities contained in a separate envelope endorsed with the tenderer’s name shall be submitted together with the tender:

Provided that, the lowest tenderer may still be asked to submit his bills if any are not received by the due date:

      (j)   that for tenders that have been advertised, the rates set out in the Third Schedule shall be used as non-refundable tender document charges;

      (k)   that tender and performance securities as set out in Part I and II of the Fourth Schedule shall be required on all procurement of goods and services in excess of twenty five million kwacha, and that performance securities shall be required on all building and construction works in excess of one hundred million kwacha; the tender securities shall be in the sum equal to two per cent of the amount of the tender and performance securities shall be equal to ten percent of the contact price;

      (l)   that tender securities shall be furnished by the date the tender is being opened and performance securities shall be furnished within fourteen days of the signing of the contract;

      (m)   that failure to furnish tender security or performance security within the time specified shall constitute grounds for termination of the contract for default;

      (n)   that tenders securities shall be returned to unsuccessful tenderers as soon as an award has been made; tender security or performance security submitted by a successful tenderer shall be retained until the tenderer has executed all his contractual obligations;

      (o)   that the Secretary to the tender committee shall determine the validity of the tender security or performance security;

      (p)   that the performance security shall be discharged by the purchaser and returned to the contractor not later than ninety days after the date of receipt of the goods or services by the consignee, in terms of the contract; and

      (q)   that goods—

      (i)   manufactured in Zambia, i.e. goods whose cost of materials, labour and services constitute not less than forty percent of the finished product, shall be given price preference of fifteen percent;

      (ii)   imported and held in stock by merchants in Zambia shall be given price preference of five percent; and

      (iii)   produced by small business enterprises with a paid up capital <FT:Verdana,SN>not exceeding fifteen million kwacha shall be given preference of twenty percent.

   

[Reg 40(q)(iii) am by reg 21(b) of SI 116 of 1997.]

 

40A.   Variation in works contracts

   (1) A Controlling Officer or Chief Executive shall authorise variations in works contracts amounting to-

      (a)    twenty-five per centum of the value of the works;

      (b)    not more than five million kwacha or the aggregate value of works; or

      (c)    not less than ten per centum of the additional tender sum as a result of a variation in design, alteration in design, alteration or amendments.

   (2) A Controlling Officer or Chief Executive may extend the completion period for a further period not exceeding two months.

   

[Reg 40A ins by reg 22 of SI 116 of 1997.]

 

41.   Tenders evaluation

   (1) A tender committee shall ensure—

      (a)   that the criteria used in evaluating tenders is fully consistent with information given in the tender documents;

      (b)   that tenders are scrutinised for completeness in accordance with sub-paragraph (2) of paragraph 39; and

      (c)   that the period, not exceeding twenty-one days, within which an evaluation report is to be submitted to it for consideration, is stated.

   (2) Where an offer elapses as a result of a purchasing institution failing to meet the provisions of item (1) of sub-paragraph (1) and a revalidation of the offer is necessitated, the costs of the revalidation shall be met by the purchasing institution.

 

42.   Special formal tenders

   (1) Special formal tenders are those which shall not be advertised in the Gazette or in any other publication and for which tenders shall be invited from nominated firms in accordance with this paragraph.

   (2) Except as specifically provided for in these Regulations, the requirements applying to formal tenders shall apply to special formal tenders.

   (3) A tender committee may authorise special formal tenders or negotiations where—

      (a)   there is a proclamation in force declaring a state of emergency or threatened emergency under the Constitution;

      (b)   it is in the interest of public order, public safety or public security;

      (c)   building works of a specialised or complex nature are involved, or equipment to be obtained is highly specialised;

      (d)   the goods and services to be obtained are of a personal or professional nature;

      (e)   services are to be rendered by an educational or training institution;

      (f)   evidence is furnished that there are no other competing institutions or organisations in respect of the goods or services to be supplied or rendered and that the supplier is the sole franchise holder;

      (g)   the goods or services to be supplied or rendered are to be used in, or are in the nature of, research work;

      (h)   equipment to be supplied is technical and is of a nature that requires standardisation and inter- changeability of parts; or

      (i)   there has been no acceptable tender from all formal tenders previously invited.

 

43.   Informal tenders

Informal tenders shall be invited from at least three contractors or suppliers.

 

44.   Tender samples

   (1) Tender samples shall be—

      (a)   submitted as part of the tender, in the quantities, sizes and other details requested in the invitation to tender;

      (b)   carriage paid;

      (c)   received within seven days after the date set for opening of tenders if submitted separately from tender offers; and

      (d)   evaluated to determine compliance with all characteristics listed in the invitation.

   (2) Failure of samples to conform to all characteristics referred to in the invitation for tenders and failure to furnish samples by the time specified shall entitle a tender committee to reject the tender.

   (3) Notwithstanding the other provisions of this regulation, the Secretary to the tender committee shall call for samples where the tenderer’s offer is competitive.

 

45.   Proprietary articles as samples

Where it is not possible to avoid using a proprietary article as a sample, the tenderer shall make it clear that the proprietary article is displayed only as an example of the type or quality of the goods being tendered for and that competition shall not thereby be limited to that article only.

 

46.   Tender committee sample materials

   (1) Samples made up from materials supplied by a tender committee shall not be returned to the tenderer nor shall the tender committee be liable for the cost of making them.

   (2) All samples produced from materials belonging to the tenderer which are not claimed by the tenderer within a period of three months from the date of the award of tender, shall be the property of the Board and shall be sent to the Director who shall dispose of them in such a manner as may be directed by the Board.

 

47.   Product specifications

   (1) The description of the goods or services in the tender invitations shall be clear and broad based.

   (2) Specifications issued by the Zambia Bureau of Standards or any other international standards being used shall be clearly stated.

   (3) A brand name shall not generally be used when tenders are being invited.

   (4) It shall be essential to indicate the brand name or quality of the article required; and words such as “or other article of comparable quality” shall be included in the invitation to tender.

 

48.   Financing of works contracts

When the value of goods or services exceeds one hundred million kwacha, tender documents shall include the following particulars-

      (a)   how (for example, in terms of working capital and capital equipment) and to what extent the project shall be financed from the purchasing institution’s own resources;

      (b)   if finance from a foreign country is necessary the extent to which and how, the purchasing institution intends to raise funds in Zambia for the financing of the project both before and during the course of works;

      (c)   if funds for the financing of the project are to be raised by foreign borrowing—

      (i)   the terms and conditions of such loans;

      (ii)   to what extent the purchasing institution will request repatriation of “progress” payments to cover the loans other than the repatriation of profits on the completion of a contract by the tenderer;

      (d)   the proportion of the tender sum, in the case of works contracts expected to be paid out in foreign currency.

 

49.   Correspondence upon errors

   (1) Copies of all correspondence entered into with tenderers upon the subject of errors in their tenders between the time of opening of the tenders and the decision of a tender committee shall be sent to the Secretary of the tender committee with recommendations and comments thereon.

   (2) Except with the express permission of the Secretary to the tender committee no other communication shall take place with the tenderer upon the subject of his tender during this period.

 

50.   Notification to successful tenderer

   (1) The successful tenderer shall be advised by letter or by telegraph of the receipt of notice of ward, which notice shall include information relating to the invitation, description of the items, quantity, price and contract number.

   (2) An advance notice of award may be given by the Secretary of the tender committee to the successful tenderer only where—

      (a)   a tender is about to expire and it is necessary to issue an award promptly;

      (b)   prompt action is necessary to give the contractor an opportunity to obtain materials;

      (c)   delivery or performance is urgent and cannot await formal contract documents; or

      (d)   prompt action is necessary to permit a contractor to proceed with preparation of necessary catalogue and other contract data.

   (3) Advance notices shall be followed by formal contract documents as soon as possible.

   (4) Telegraphic notices shall contain all of the information as directed by the tender committee and, in addition, a statement that written confirmation shall follow.

   (5) Oral notices may be given only when circumstances surrounding the procurement or performance would not allow time for telegraphic notice, and shall include all information normally included in written notices and shall also include a statement that written confirmation shall follow.

   (6) Where an award for a formal tender is made the Secretary to the tender committee shall publish a notice in the Government Gazette stating who has been awarded the tender.

 

51.   Non-anticipation of tenders

Acceptance of any tender shall not be anticipated and orders shall not be placed until the necessary authority has been received from the tender committee.

 

52.   Amendment, alteration or substitution of samples, etc.

   (1) Where it is necessary to amend or alter conditions or specifications or substitute samples after the original date for the submission of tenders, fresh tenders shall be invited so that all tenderers may have an equal opportunity of tendering on the new basis:

Provided that, a Controlling Officer or Chief Executive may recommend and a tender committee may approve an increase or decrease in the number of articles involved without calling for fresh tenders.

   (2) Where it is necessary to alter the substance of a tender after it has been accepted, a tender committee may authorise negotiations with the contractor within the general framework of the accepted tender, but any proposed variation of contract involving either an increase or a decrease of the tendered sum be submitted to the tender committee for approval.

 

53.   Price adjustment formulae

   (1) In periods of inflation, a price adjustment formula shall apply in order to arrive at a reasonable price.

   (2) Tenderers shall quote on a present-day-value using price adjustment based on official statistics of Government agencies basis or United Nations agencies and the formula shall accommodate both rises and falls in price levels.

 

54.   Invoices etc.

A Controlling Officer, a Chief Executive or a tender committee may request a contractor to submit invoices and other related documents for examination.

 

55.   Signing of contract

A successful tenderer shall within fourteen days from the date of the receipt of contract forms sign and submit the contract and where it is a tender requirement to provide security the security shall be issued within fourteen days of the date of signing of the contract.

 

55A.   Validity of purchase authorisation

Any authority given by the Board or a tender committee shall be valid for a period of-

      (a)   six months for a local contract, which may be extended for a further period of three months, without changing the terms and conditions of the original contract; or

      (b)   six months for an international contract, which may be extended for a further period of six months without changing the terms and conditions of the original contract.

   

[Reg 55A ins by reg 23 of SI 116 of 1997.]

 

56.   Letter of intent etc.

A letter of intent shall only be issued to a supplier or contractor after all the terms and conditions have been agreed upon by the tender committee.

 

57.   Tenders relating to public security

Where the contract involves access to confidential information—

      (a)   A Government ministry or department or body institution shall notify the contractor of the security classification of the contract and the elements thereof and of any subsequent revisions in such security classification;

      (b)   the contractor shall, prior to the commencement of the contract, safeguard all classified elements of the contract and shall provide and maintain a system of strict security control within his own organisation; and

      (c)   authorised representatives of the armed, security or police forces shall have the right to inspect, the procedures, methods and facilities utilised by the contractor or the compliance by the contractor with the security requirements under the contract.

 

58.   Disposing of contract documents

The original tender documents and related correspondence of the successful tenderer shall be retained by the Ministry or parastatal body and a copy of the contract or agreement shall be forwarded to the Board and the relevant tender committee.

 

59.   Variation in quantities

In contracts for the supply of goods which run for a considerable period, the requirements of which cannot accurately be estimated, provision shall be made in the contract for a variation in the quantity of the goods to be supplied by twenty-five per centum over or under the contract figure.

 

60.   Inspection of goods delivered

   (1) Goods delivered shall be inspected, sampled and tested by the receiving Ministry or parastatal body and they shall not be accepted unless they comply with the stipulations of the contract.

   (2) Contracts shall contain a clause that the supplier shall be responsible for all costs and expenses incurred due to a justified rejection of his goods on the ground that they do not comply with the stipulation of the contract.

 

61.   General conditions of contract

The Board shall prescribe general conditions of contract for Government and parastatal bodies which may, with the approval of the Board be varied generally or with references to a particular contract.

PART IX
GENERAL PROVISIONS

 

62.   Offences and penalties

(1) Any person who-

      (a)   opens an envelope or other container in which a tender is contained, other than in the due and proper execution of his duties under these regulations;

      (b)   burns, tears or otherwise destroys any tender, or

      (c)   erases or does any other act which falsifies or renders incomplete or misleading any tender;

shall be guilty of an offence and shall be liable, upon conviction, to a fine not exceeding thirty thousand penalty units or to imprisonment for a term not exceeding one year or to both.

[Reg 62(1) am by reg 2(a) of SI 59 of 1998.]

   (2) Any Controlling Officer of Chief Executive or member of a tender committee who fails to comply with the provisions of sections eighteen of the Act shall be guilty of an offence and shall be liable upon conviction to a fine not exceeding five thousand penalty units or for a term of imprisonment not exceeding three months or to both.

   (3) Any person who-

      (a)   varies the decision of the Zambia National Tender Board, without their approval;

      (b)    makes any unauthorised purchase commitment; or

      (c)   without the approval of the Controlling Officer or Chief Executive, knowingly enters into a contract when sufficient funds are not available;

shall be guilty of an offence and liable upon conviction to a fine not exceeding five thousand penalty units or to imprisonment for a term not exceeding three years or to both.

   

[Reg 62 subs by reg 24 of SI 116 of 1997; 62(3) am by reg 2(b) of SI 59 of 1998.]

 

63.   Tenders to be invited and approved only by board

The Board may, in its discretion, direct that all tenders or any class of tenders shall be invited or approved only by the Board.

 

64.   Spent

FIRST SCHEDULE

[Regulation 34]

TENDER FORM

Date:.................................................................

Contract No. .....................................................

To:..............................................................................

(Name and Address of Purchaser)

Gentlemen.

   Having examined the Conditions of Contract and Specifications including Addenda Nos .................................................................................................. the receipt of which is hereby duly acknowledged, I (We)*, the undersigned, offer to supply and deliver ........................................................................................................................................ .................................................. (a) in conformity with the said Drawings, Conditions of Contract and Specifications for the sum of…………………………................................................, (b) or such other sums as may be ascertained herewith and made part of this tender.

   I (We) undertaken, if the tender is accepted, to commence delivery of the goods or services* within................................................................................... (c) and to complete delivery of all the items specified in the Contract within ................................................ ........................................................ (c) days calculated from date of receipt of your letter of Acceptance or letter of Credit.

   If the tender is accepted I (We) will obtain the guarantee of a Bank in a sum not exceeding..............................................% (d) of the Contract sum for the due performance of the Contract.

   I (We) agree to abide by this tender for a period of ...................................................... (c) days from the date fixed for tender opening and it shall remain binding upon me (us) and may be accepted at any time before the expiration of that period.

   Until a formal contract is prepared and executed, this tender together with your written acceptance thereof in your notification or award shall constitute a binding contract between us.

   I (We) understand that you are not bound to accept the lowest or any tender you may receive.

   Dates this..........................................day of ..................................................19............

....................................................................

Signature

................................................................................

(In the Capacity of)

   Duly Authorised to sign tender for and on behalf

.............................................................................................................................................

Witness................................................................................................................................

Address................................................................................................................................

........................................................

Signature

      (a)   description of goods or services

      (b)   total tender amount

      (c)   number of days

      (d)   percentage

*delete whichever is not applicable

SECOND SCHEDULE

[Regulation 38]

WITHDRAWAL OF TENDERS

“I .................................................................................. of (address) being duly authorised in that behalf by .................................................................................................................. and occupying the position of ......................................................................................... in (employer) ......................................................................................................................... .................................................................................................................. whose tender is scheduled for opening on ..................................................................................................

.................................................................................................................. hereby withdraw that tender from consideration;...........................................................................................

.............................................................................................................................................

Signature ...........................................................................................................

Telephone No. ....................................................................................................

Date ....................................................................................................................

THIRD SCHEDULE

[Regulation 40]

[Third Sch subs by reg 25(a) of SI 116 of 1997.]

 

<FT:Verdana,SN>1. Non-Refundable Tender Document Charges

Estimated Tender Cost 

Tender Document Charges 

 

   (a) Up to fifteen million kwacha 

2,000.00 

   (b) Each additional ten million kwacha or part thereof 

2,000.00 

   (c) All tenders above two billion kwacha 

400,000.00 <FT:Verdana,SN>2. Cost of Postage or Hand Delivery of Tender Document

<FT:Verdana,SN>Where a prospective tenderer requests the Board to send the tender document by post or by hand delivery, the tenderer shall be charged the actual cost of the postage on delivery.

<FT:Verdana,SN>3. Where the non-refundable tender document charges are made by the tender committee:

      (a)   In the case where Ministry or Provincial Tender Committees, call for formal tenders, 60 per cent of the charges shall be retained and used by the Secretary to the Committee to meet part of the preparation and printing costs. The 40 per cent balance shall be remitted to the Director, Zambia National Tender Board.

      (b)    In the case of parastatal tender committees, the secretary shall retain and use the tender document charges to meet part of the preparation and printing costs.

FOURTH SCHEDULE

[Regulation 43 (l)]

PART I
TENDER SECURITY FORM

   WHEREAS ........................................................................................................ (hereinafter called “the Tenderer”) has submitted its tender dated ........................................................... ................................................................................................................................................ for the supply of ................................ (hereinafter called “the tender”) ............................................................................................................

   KNOW ALL MEN by these presents that we .................................. of ................................... ................................................................ having our registered office at .............................. .......................................................................................................... (hereinafter called “the Bank”) are bound unto ..................................................................................................... for which payment well and truly to be made to the said purchaser, the Bank binds itself, its successors and assigns by these presents.

   Sealed with the Common Seal of the said Bank this .......................................................... day of .......................................................................................................... 19...............

   THE CONDITIONS of this obligation are:

      (a)   if the tenderer withdraws its tender during the period of tender validity specified by the Tenderer on the Tender Form; or

      (b)   if the tenderer having been notified of the acceptance of its tenderer by the Purchaser during the period of tender validity;

      (i)   fails or refuses to execute the Contract Form, if required; or

      (ii)   fails or refuses to furnish the Performance Security, in accordance with the instructions to Tenderers,

We undertake to pay to the purchaser up to the above amount upon receipt of its first written demand without the purchaser having to substantiate its demand, Provided that, in its demand the purchaser will note that the amount claimed by it is due to it owing to the occurrence of one or both of the two conditions, specifying the occurred condition or conditions.

This guarantee will remain in force up to and including thirty (30) days after the period of tender validity, and any demand in respect thereof should reach the Bank not later than the above date.

........................................................................

(Signature of the Bank)

........................................................................

(Signature of the Witness)

Name of Witness: ..............................................................................................................................

Address of Witness: ..........................................................................................................................

PART II
PERFORMANCE SECURITY FORM

To: ................................................................................................. (Name of Purchaser)

   WHEREAS .................................................................... (Name of Supplier) hereinafter called “the Supplier” has undertaken in pursuance of Contract No. ................................... ................................. .dated ................................................................ in 19 ...................... ....................................................... to supply (Description of Goods and Services) .......... ............................................................... hereinafter called “the Contract”.

   AND WHEREAS it has been stipulated to you in the said Contract that the Supplier shall furnish you with a Bank Guarantee by a recognised Bank for the sum specified therein as security for compliance with the Supplier’s performance obligations in accordance with the Contract.

   AND WHEREAS we have agreed to give the Supplier a Guarantee:

   THEREFORE, we hereby affirm that we are Guarantors and responsible to you, on behalf of the Supplier, up to a total of (Amount of Guarantee in words and Figures) and we undertake to pay you, upon your first written demand declaring the Supplier to be in default under the Contract and without cavil and argument, any sum or sums within the limits of (Amount of Guarantee) ......................................................................................... ....................................................................................... as aforesaid, without your needing to prove to or show grounds or reasons for your demand or the sum specified therein.

This guarantee is valid until the .....................................................................................

day of ............................................................................................... 19.........................

Signature and Seal of the Guarantors

....................................................................

....................................................................

....................................................................

....................................................................

Date: .........................................................................................................................

Address: ...................................................................................................................

...................................................................................................................................

...................................................................................................................................

FIFTH SCHEDULE

[Regulation 23B]

[Fifth Sch ins by reg 25(b) of SI 116 of 1997.]

CERTIFICATION OR CAPACITY RATING CRITERIA FOR PROCUREMENT UNIT

1. The certification or capacity rating criteria to be used by the Zambia National Tender Board for a procurement unit shall include the following:

   (1) The human resources and skills relating to-

   (a)       the employment of professionally qualified personnel;

      (b)    the training and skills development; and

      (c) on job experience an performance.

   (2) The administrative and operational procedures in use including the organisational structure of the procurement unit.

   (3) The physical structures, materials and resources such as-

      (a)    adequate office space;

      (b)    availability of requisite office machinery;

      (c)    operating budget of the unit; and

      (d)    vehicles.

   (4) The duties and experience such as-

      (a)    the responsibility to coordinate and supervise procurement functions in a ministry or parastatal body;

      (b)    coordinating and managing tender committee operations and activities according to established tender regulations and procurement standards;

      (c)    carrying out informal procurement and supplies management with a track record or successful use of guide to informal tender procurement.

      (d)    carrying out formal tender procurement of goods involving the-

      (i)    preparation of tender documentation for off the shelf simple items and complex equipment, furniture and other specialised goods;

      (ii)    sending of invitations to tender and tender opening of formal, selective or negotiated tenders;

      (iii)    tender evaluation and recommendations to the Central Tender Committee;

      (iv)    preparation and issuing of contracts; and

      (v)    contract administration.

      (e)   carrying out formal procurement of services and works relating to-

      (i)    the preparation of tender documents, invitation, evaluation and award of consultancy service contracts; and

      (ii)    the preparation of documentation, issuing of invitation, evaluation, selection and award of works contracts and supervision of works.

      (f)    undertaking international purchases and contracts;

      (g)    carrying out procurements under donor supported projects;

   (5) The extent to which the services rendered to client institutions were satisfactory.

   (6) Total spend and impact of activities of the unit on institutional savings.

2. The following shall be the minimum requirements for certifying procurement units under the following categories.

      (a)   Government Institutions-

Category A shall call for formal tenders whose estimated cost is valued up to one hundred million kwacha. With a minimum rating criteria to include the following:

      (i)   employment of at least one fully qualified procurement professional;

      (ii)   availability of adequate office space, requisite office equipment and operating budget;

      (iii)   experience in coordinating and supervision of procurement functions in the ministry proven track record of successful use of guide in informal tender procurement; and

      (iv)   management of tender committee operations and activities according to required standards.

Category B shall call for formal tenders whose estimated cost is valued up to two hundred and fifty million kwacha. With a minimum rating criteria to include the following:

      (i)    employment of at least two fully qualified procurement professionals;

      (ii)    availability of adequate office space, requisite office equipment, transport and operating budget;

      (iii)    experience in coordinating and supervision of procurement functions of the Ministry and proven track of record of-

      (a)    successful use of guide to informal tender procurement; and

      (b)    preparation of tender documentation for goods;

      (iv)    management of tender committee operations and activities to the required standards or level; and

      (v)    the preparation and issue of contract documents including contract administration.

Category C shall call for formal tenders whose estimated cost is valued up to six hundred million kwacha. With a minimum rating criteria to include the following:

      (a)   employment of 3-5 fully qualified procurement professional;

      (b)   availability of adequate office space, office equipment, transport and operating budget;

      (c)   experience in coordinating and supervision of procurement functions of the ministry;

      (d)   proven track record of-

      (i)   successful use of guide to informal tender procurement;

      (ii)   effective use of guide to formal tender procurement of goods, services and works;

      (iii)   the preparation of tender documents of a complex nature; and

      (iv)   the preparation, issue and administration of contacts.

      (e)    tender committee operations and activities which are satisfactory to the required standards.

      (f)    The extent to which the services rendered to client institutions were satisfactory.

      (b)    Parastatal Bodies including Local Authorities in-

Category A shall call for formal tenders whose estimated cost is valued up to one hundred million kwacha. With a minimum rating criteria to include the following:

      (a)    employment of at least one qualified procurement professional personnel;

      (b)    availability of adequate office space, office equipment and operating budget;

      (c)    ability to coordinate and supervise procurement functions of parastatal body;

      (d)    track record of successful procurement through use of guide to informal tender procurement;

      (e)    management of tender committee operations and activities to the required level.

Category B shall call for formal tenders whose estimated cost is valued up to six hundred million kwacha. With a minimum rating to include the following:

      (a)    employment of 3-5 fully qualified procurement professional;

      (b)    availability of adequate office space, office equipment, transport and operating budget;

      (c)    ability to coordinate and supervise procurement functions of the parastatal body;

      (d)    a proven track record of-

      (i)    successful use of guide to formal tender procurement;

      (ii)    effective use of formal tender procurement of goods, services and works;

      (iii)    the preparation of complex tender documents; and

      (iv)    the preparation, issue and administration of contracts.

      (e)    management of tender committee operations and activities which are satisfactory to the required standards.

      (f)    the extent to which the services rendered to client institutions were satisfactory.