PUBLIC PROCUREMENT ACT
INDEX TO SUBSIDIARY LEGISLATION
Arrangement of Paragraphs
2. Commencement of Act No. 12 of 2008
Act 12 of 2008,
SI 108 of 2008.
This Order may be cited as the Public Procurement Act (Commencement) Order, 2008.
The Public Procurement Act, 2008, shall come into operation on the date of publication of this Order.
[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
3. Fundamental principles
4. Exercise of information management and dissemination functions
5. Circulars on reports
6. Reports by procuring entities
7. Levels of authority
9. Use of standard solicitation documents
10. Decision-making process for approvals authority
METHODS OF PROCUREMENT
11. Procurement methods
12. Open bidding
13. Open selection
14. Limited bidding
15. Limited selection
16. Simplified bidding
17. Direct bidding
GENERAL RULES OF PUBLIC PROCUREMENT
18. Records of procurement process and contract management
20. Publication and distribution of notices
21. Currency for procurement
23. Packaging tenders
24. Cancellation of procurement proceedings
25. Unsuccessful procurement proceedings
26. Annual procurement planning and publication
27. Contents of annual procurement plan
28. Aggregation of requirements
29. Division lots
30. Requisition and authorization
31. Confirmation of funds
32. Statement of requirements for goods
33. Use of brand names
34. Statement of requirements for works
35. Statement of requirements for services
36. Individual procurement plans
37. Choice of procurement method
38. Potential source
39. Emergency procurement
40. Selection of appropriate type of contract
41. Selection of bid submission methods
BIDDING PROCESS FOR OPEN AND LIMITED BIDDING
42. Use of open and limited bidding procedures
43. Use of one-or-two stage bidding
44. Use of prequalification
45. Prequalification notices
46. Prequalification documents
47. Evaluation of applicants
48. Prequalification for group of contracts
49. Inviting bids
50. Bid notices
52. Contents of solicitation documents
53. Minimum bidding periods
54. Issue and sale of solicitation documents
55. Bid security and bid securing declaration
56. Clarification and amendment of solicitation documents
57. Extension of bidding period
58. Withdrawal, substitution or modification of bids
59. Alternative bids
60. Prebid conferences and site visits
61. Receipts of bids
62. Bid closing
63. Public opening of bids
64. Evaluation committee and functions
65. Details of evaluation methodology and criteria
66. Assessing responsiveness of bids
67. Correction of nonconformities, errors and omissions
68. Clarification of bids
69. Preliminary examination
70. Technical evaluation
71. Financial evaluation and comparison
72. Application of discounts
74. Evaluation report and recommendations
75. Scope of negotiations
76. Procedure for negotiations
BIDDING PROCESS FOR OPEN AND LIMITED SELECTION FOR CONSULTING SERVICES
77. Use of open and limited selection procedures
78. Selection of bidders notices
79. Notices inviting expression of interest
80. Evaluation of expression of interest and development of shortlists
81. Shortlists under limited selection
82. Contents of solicitation documents
83. Choices of selection method
84. Submission of proposals
85. Evaluation criteria
86. Issue of solicitation document
87. Clarification and amendment of solicitation document
88. Extension of bidding period
89. Receipt of proposals
90. Deadline for submission of proposals
91. Opening of technical proposals
92. Evaluation committee and Responsibilities
93. Preliminary examination
94. Scoring of proposals for technical evaluation
95. Technical evaluation for Quality and Cost Based Selection, Fixed Budget Selection and Least Cost Selection
96. Technical evaluation for Quality Based Selection
97. Notification of results of technical evaluation
98. Financial opening
99. Financial evaluation for Quality and Cost Based Selection
100. Financial evaluation for Quality Based Selection
101. Financial evaluation for Fixed Budget Selection
102. Financial evaluation for Least Cost Selection
103. Scope of negotiations
104. Procedure for negotiations
105. Evaluation for selection based on consultant’s qualifications
BIDDING PROCESS FOR SIMPLIFIED BIDDING
106. Use of simplified bidding procedures
107. Contents of request for quotations document
108. Invitation of quotations and development of shortlist
109. Submission and receipt of quotations
110. Evaluation of quotations
BIDDING PROCESS FOR DIRECT BIDDING
111. Use of direct bidding procedures
112. Procedure for low value procurement
113. Procedure for procurement from a sole source
114. Evaluation of sole bid
115. Procedure for negotiations
116. Procedures for emergency procurement
117. Evaluation of bid
118. Procedure for negotiations
119. Approval arrangement for emergency procurement
120. Contract award decisions
121. Notice of best evaluated bidder
122. Commitment of funds
123. Contract award under open or limited bidding or selection
124. Contract preparation and signature under open or limited bidding or selection
125. Contract award under simplified bidding
126. Contract award under direct bidding
127. Performance securities
128. Rejection of bids and debriefing unsuccessful bidders
129. Public notice of contract awards
130. Types of contract and pricing approaches
131. Lump sum contracts
132. Time based or measured works contracts
133. Rate contracts
134. Running contracts
135. Percentage based contracts
136. Cost reimbursable and target price contracts
137. Contents of contract
138. Price adjustment
139. Payment terms
140. Advance payments
141. Progress payments
142. Retained payments
143. Payment documents
144. Payment security
145. Selection of contract manger
146. Contract management responsibilities
147. Inspection of goods, works and services
148. Acceptance of goods, works and services
149. Contract amendments
150. Contract variations
151. Contract termination
DEVIATIONS AND ACCREDITION
152. Procedure for applying for deviation
153. Monitoring and profile analysis of deviations
154. Procedure for accreditation of alternative procurement system
BIDDERS AND SUPPLIERS
156. Verification of bidders qualifications
157. Qualification criteria
158. Requirements for subcontractors and joint venture partners
159. Preference schemes
160. Reservation schemes
161. Supplier databases of lists
162. Suspension or bar of bidder or supplier
163. Investigation of suspension or bar by Authority
164. Disclosure of information and special measures for confidentiality during Consideration
165. Dismissal of recommendation to suspend
166. Determination of period for suspension or decision to bar
167. Contents of communication to suspend
168. Copy of decisions of Authority
PROCEDURE FOR INVESTIGATION AND REVIEW OR APPEAL
169. Investigations for monitoring purposes
170. Applications for review or appeal
171. Contents of applications for review or appeal
172. Fee for review or appeal
173. Action by controlling officer or chief executive officer
174. Action and decisions of Authority
175. Time and place of hearing
176. Appointment of review or appeals panel
177. Hearing of application
178. Procedure of hearing
179. Investigation of complaints and applications for review or appeal
180. Decisions of review or Appeals panel
182. Exercise of policy functions
183. Exercise of regulatory functions
184. Exercise of monitoring function and appeal
<IN:LF:1.125,FI:-1.125> 185. Exercise of capacity building and professionalisation functions
Act 12 of 2008,
SI 63 of 2011.
These Regulations may be cited as the Public Procurement Regulation, 2011.
(1) In these Regulations, unless the context otherwise requires–
“applicant” means a person or group submitting an application to prequalify, or for an expression of interest;
“Authority” has the meaning assigned to in the Act;
“evaluation committee” means a group of persons selected to evaluate tenders, proposals or quotations, in accordance with the evaluation criteria stated in the solicitation document, and the preparation of evaluation reports for submission to an approvals authority; and
“fundamental principles” means the principles specified under regulation 3.
Public procurement shall be governed by the following fundamental principles:
(f) Value for money; and
The Authority shall, with respect to developing and implementing systems for the publication and management of public procurement information–
(a) take into account the most efficient and economic use of media, including electronic media;
(b) ensure that systems are accessible to intended user; and
(c) consider the ease of maintaining and updating systems.
(1) The Authority shall issue public procurement circulars relating to reports required by it, which circulars may, amongst other things, specify the–
(a) types of data and information required;
(b) format for report; and
(c) frequency and submission deadlines for reports.
(2) The Authority shall ensure that reporting requirements imposed on procuring entities are not overly burdensome .
A procuring entity shall submit such procurement reports as the Authoritymay require to facilitate the establishment and maintenance of data andinformation bases relating to public procurement and to assist in the monitoring of public procurement and development of public procurement policies.
(1) The level of authority for a procurement committee shall be determined by the authority pursuant to paragraph 7 of the second Schedule to the Act.
(2) The level of authority of a controlling officer or chief executive officer of a procuring entity shall be as specified in the First Schedule.
(3) The level of authority for any designated senior officer or officer of a procuring entity shall be as specified by the controlling officer or chief executive officer, in writing.
(1) The thresholds for the use for each procurement method are as set out in the Second Schedule.
(2) The Authority shall, in reviewing and revising the thresholds referred to in sub-regulation (1), take into account all relevant factors, including the need to safeguard public funds, the need for efficiency in the procurement process and the capacity of procuring entities and approvals authorities.
(1) All procuring entities shall use the standard solicitation documents issued by the Authority for a particular kind of procurement or where no such document has been issued shall seek approval to use a solicitation document developed by that procuring entity until the Authority issues the standard solicitation document.
(2) The Authority shall ensure that standard solicitation documents are easily available to all procuring entities by posting them on its website or by delivering them to the offices of such entities.
(3) The Authority shall notify all procuring entities of any amendments to, or change of, any standard solicitation document as soon as these are done.
(4) Any amendment to, or change of, a solicitation document that has not been notified to a procuring entity shall not take effect until the notification has been given.
(1) An approvals authority shall properly and time review and authority a procurement requirement of the procuring entity, which has been submitted to the approvals authority.
(2) An approvals authority shall consider each submission made to it based on
The information and supporting documents contained in the submission.
(3) An approvals authority shall make its decision regarding a procurement requirement submitted to it, in writing, stating the following:
(a) Whether the submission is approved or rejected;
(b) The reasons for the rejection, if that is the case; and
(c) The conditions applicable to the approved submission.
(4) A procurement unit may resubmit any submission rejected by an approvals authority after taking into account the reasons given for the rejection.
(5) An approvals authority may give a conditional approval to a submission, where there is a minor issue to be resolved relating to the procurement.
(6) Any decision made by an approvals authority shall be valid for a period of–
(a) Six months from the date of the approval, in the case of 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 from the date of the approval, in the case of an international contract, which may be extended for a further period of six months without Changing the terms and conditions of the original contract.
METHODS OF PROCUREMENT
(1) A procuring entity shall use one of the following procurement methods, as specified in the Act and these Regulations, in undertaking the procuring entity’s procurement activities:
(a) open bidding, which may be national or international;
(b) open selection, which may be national or international;
(c) limited bidding;
(d) limited selection;
(e) simplified bidding;
(f) direct bidding;
(g) force account;
(h) purchases from other procuring entities; or
(i) community participation in procurement.
(2) A procuring entity shall undertake public procurement under a selected method of procurement in accordance with the public procurement planning process, procurement process, contract award process and contract management process as specified under the Act and these Regulations.
(3) A procuring entity shall not use any alternative procurement methods unless such method has been approved by the Authority prior to its use.
(1) A procuring entity shall use open bidding for all procurement of goods, works and non-consulting services, except where–
(a) the procurement meets of the conditions for the use of limited bidding;
(b) the estimated value of the procurement is less than the applicable thresholds for simplified bidding; or
(c) the procurement meets the conditions for the use of direct bidding.
(2) A procuring entity shall select open national bidding or open international bidding in accordance with section 26 of the Act.
(1) A procuring entity shall use open selection for the procurement of all consulting services, except where–
(a) the procurement meets the conditions for the use of limited selection;
(b) the estimated value of the consulting services is less than the threshold for simplified bidding; or
(c) the procurement meets the conditions for the use of direct bidding.
(2) A procuring entity shall select open national selection or open international selection in accordance with section 28 of the Act.
A procuring entity may use limited bidding for goods, works or nonconsulting services, where–
(a) the goods, works or services are only available from a limited number of suppliers;
(b) there is urgent need for the goods, works or services, and engaging in open bidding would be impractical;
(c) the requirement is of a specialised nature or relates to public safety or public security which makes open bidding inappropriate; or
(d) open bidding has failed to secure an award of contract.
A procuring entity may use limited selection for consulting service where–
(a) the consulting services are only available from a limited number of suppliers;
(b) there is an urgent need for the consulting services and engaging in open selection would be impractical;
(c) the requirement is of a specialised nature or relates to public safety or public security which makes open bidding inappropriate; or
(d) open bidding has failed to secure an award of contract.
(1) A procuring entity may use simplified bidding where the estimated value of the goods, works or services does not exceed the threshold specified in the Second Schedule.
(2) A procuring entity may use simplified bidding for–
(a) readily available off-the-shelf goods of low value;
(b) small value goods whose specifications are standard; or
(c) low value works or services.
A procuring entity may use direct bidding where the estimated value of the goods, works or services does not exceed the threshold specified in the Second Schedule.
GENERAL RULES OF PUBLIC PROCUREMENT
(1) A procuring entity shall keep the following records relating to the procurement proceedings which records shall be open inspection by the Authority:
(a) records arising from the procurement process;
(b) records relating to contracts management;
(c) all records of the procurement Committee;
(d) any record of the controlling officer or the chief executive officer which relate to the procurement process, contracts management and the administrative review process; and
(e) any other record of a procurement nature arising under matters related to the Act or these Regulation
(2) All procurement records maintained by a procuring entity shall contain, as appropriate, the following documents:
(a) the request to initiate procurement proceedings;
(b) a copy of any published notices;
(c) any shortlist or list of prequalified bidders;
(d) a copy of the prequalification and solicitation documents and any amendments or clarifications of the documents;
e) the records of bids received;
(f) the records of bid openings;
(g) copies of all bids evaluated and any clarifications requested and responses received;
(h) the evaluation report;
(i) minutes of any meetings related to the procurement, including prepare bid and negotiation meetings;
(j) the notice of best evaluated bidder;
(k) the letter of bid acceptance;
(l) the contract document;
(m) any contract amendments; and
(n) all submissions to, and all decisions of, the approvals Authority relating to the procurement, including–
(i) the choice of procurement method;
(ii) authorisation of solicitation documents;
(iii) authorisation of evaluation reports; and
(iv) Authorisation of contract documents, contract award and contract amendments; and
(o) any decision to suspend or cancel procurement proceedings.
(3) All contract management records maintained shall contain the following documents:
(a) the signed contract document, including any signed contract amendment;
(b) any variations issued under the contract;
(c) all post contract documentation relating to the fulfilment of contract obligations, in particular copies of bank guarantees or advance payment guarantees;
(d) minutes of any meetings relating to contracts management, including contract progress or review meetings;
(e) all documentation evidencing deliveries of goods or completion certificates in relation to contracts for works or services;
(f) copies of all invoices for goods, works and services, including work papers verifying the accuracy of payments claimed and details of the aactual payment authorised by a contracts manger;
(g) copies of cumulative payment worksheets evidencing management of all payments made;
(h) copies of any claims made by a contract manager on behalf of the procuring entity in respect of any warranty, non-warranty, short supply, damage and other claims, upon the supplier or upon the procuring entity;
(i) all correspondence between the procuring entity and supplier; and
(j) all submissions to, and all decisions of, the approvals authority relating to contracts management, including the authorisation of any contract amendment.
(4) Any record maintained in accordance with the Act and these Regulations may accessible to any person ,authorised by the Authority, on payment of a fee to be determined by the Authority.
(1) The English language shall be used as a medium of communication in all public procurement matters.
(2) The medium of communication shall be specified in the solicitation documents.
(3) A procuring entity shall record in the minutes of the meeting all discussions at a meeting between a procuring entity and a bidder or supplier, and confirm all agreements in writing.
(4) Any communication between a procuring entity and a bidder or supplier shall be made in writing .
(1) A procuring entity shall publish any notice inviting potential bidders to participate in procurement proceedings and any contract award–
(a) in the Gazette;
(b) in a daily newspaper of general circulation in Zambia, to reach a sufficient number of potential bidders and ensure effective competition;
(c) in any media of wide regional or international circulation, where the method of procurement is open international bidding or open international selection;
(d) to the extent feasible, on the internet, including any regional website or website established by the Authority; and
(e) in a prominent place on the notice board at the procuring entity’s office.
(2) A procuring entity may use information communication technology in the procurement process especially in matters relating to the following:
(a) publication of general procurement notices;
(b) advertisement of procurement opportunities;
(c) publication of a summary of evaluation results;
(d) requesting for information on the bidding process; or
(e) dissemination of laws related to public procurement.
(3) Where open international bidding or open international selection is used, the notice shall also be published in media of wide regional or on widely read internet sites.
(4) Where a procuring entity believes that it is necessary to ensure wide competition, it may, after the date of publication of the notice referred to in sub-regulation (1), send invitation notices directly to–
(a) potential bidders, who may include registered bidders, past suppliers or any other identified potential sources;
(b) professional or industry associations; or
(c) any Zambia high commission or embassy in countries which are likely to participate, or foreign embassies of those countries in Zambia where open international bidding or open international selection is used.
(5) A procuring entity shall keep a record of any bidder or organisation to whom an invitation notice is sent directly, which shall from part of the procurement record.
(1) The kwacha or any foreign currency specified in the solicitation document shall be used in any bidding under the Act and these Regulations.
(2) Where a bidder provides an offer in foreign currency, the Bank of Zambia established under the Bank of Zambia Act, shall be the source of the exchange rate to be used.
(3) The solicitation documents shall specify the effective date for the conversion of the Foreign exchange to the kwacha, where appropriate.
(1) Bidders may from a consortium to increase their capacity and competitiveness for solicitation purposes.
(2) Where bidders from a consortium for purposes of bidding one of the bidders shall be considered as the lead bidder and serve as their representative in all activities related to the bid.
(3) A bid submitted by a consortium shall be single document and bear the name of the consortium or the lead bidder.
(4) A bidder shall not participate in two different consortiums in the same bidding process.
(5) A person shall not submit a bid that person’s own name and as part of a consortium for the same bidding process.
(6) Persons participating in a consortium shall be individually and collectively liable towards the procuring entity.
(1) A procuring entity may package tenders into different lots based on certain economic interest such as the promotion of small sized companies or the attraction of a large number of bidders.
(2) Where a procuring entity decides to package a tender, it shall ensure that the solicitation documents specify the nature of each lot and modalities for awarding the tender.
(3) Notwithstanding sub-regulation (1), a procuring entity shall not divide tenders in a manner aimed at avoiding the procurement procedures provided for under the Act and these Regulations.
(1) A procuring entity shall avoid the cancellation of procurement proceedings whenever possible, but a cancellation may be approved by the approvals Authority where–
(a) the procurement need has ceased to exist or changed significantly;
(b) funding is not sufficient for the procurement;
(c) there is a significant change in the required technical details, bidding conditions, conditions of contract or other details, such that the recommencement of procurement proceedings is necessary;
(d) no responsive bids are received;
(e) there is evidence of collusion among bidders;
(f) it is otherwise in the public interest; or
(g) there is evidence of corrupt practices by a public officer or any other person involved in the procurement.
(2) A procurement Unit shall, before cancelling any procurement proceedings, consult with the user department which issued the requisition and obtain the prior authorisation of the approvals authority.
(3) A procurement Unit shall prepare a written request, to the approvals authority, for authorisation to cancel a procurement proceeding, which shall clearly state–
(a) detailed reasons for recommending the cancellation;
(b) the status of the procurement proceedings, including in particular, whether bids have already been opened under open or limited bidding or Selection; and
(c) whether new procurement proceedings are recommended and, if so, the modifications recommended.
(4) A procurement Unit shall, where procurement proceedings re cancelled prior to bid opening, return the bids to all the bidders, unopened.
(1) A procurement Unit shall, where no responsive bids are received or any procurementproceeding is otherwise unsuccessful, investigate the failed procurement proceeding and prepare and submit a report to the approvals authority, who shall report the matter to the Authority.
(2) An investigation undertaken in accordance with subregulation (1) shall consider all relevant issues, including the following:
(a) whether the bidding period was sufficient, considering the factors required to be taken into account in determining the minimum bidding periods as provided in these Regulations;
(b) whether the requirement of the solicitation document and the terms and conditions of the proposed contract were reasonable and not so as to deter completion;
(c) whether any invitation notice was published in an appropriate publication and on the required date;
(d) whether any shortlist included sufficient bidders and whether the bidders included provided the goods, works or services required;
(e) whether there was any delay in issuing the solicitation documents;
(f) whether any amendments or clarifications to the solicitation documents allowed sufficient time for bidders to take them into account in preparing their bids;
(g) whether there were other extraneous events or circumstances, which may have affected the ability of bidders to respond;
(h) whether the evaluation process was conducted in accordance with these Regulations and the solicitation document, and whether staff responsible for the evaluation had adequate skills and resources;
(i) whether there is any suspicion of collusion between potential bidders; and
(j) whether the original choice of procurement method was appropriate.
(3) A report prepared under subregulation (1) shall include the reason why the procurement was unsuccessful and recommendations on how any new procurement proceedings should be managed to avoid such failings.
(4) An approvals authority shall on receipt of the report submitted under sub-regulation (1), make appropriate recommendations to the procuring entity, which may include–
(a) the use of an alternative method of procurement;
(b) amendments to the solicitation document, including bidding , the type of contract or the terms and conditions of the proposed contract;
(c) alternative publication of any invitation notice or a revised shortlist; or
(d) the introduction of regional or international competition.
(1) A Procurement unit shall, in consultation with a user department, prepare a procurement plan for the procuring entity, for each financial year, containing the information required under regulation 27.
(2) A procuring entity shall integrate its annual procurement planning with the budget processes and shall base the plan on the indicative or approved budget of the procuring entity, as appropriate.
(3) A procuring entity shall revise or update its procurement plan, as appropriate, after the approval of the budget for that financial year or during the course of financial year.
(4) A procuring entity shall publish, in at least one daily newspaper of general circulation in Zambia or post on the procuring entity’s website and on the procuring entity’s notice board, certain information relating to the procurement plan, such as the following:
(a) source of the funding; and
(b) expected publication and execution dates.
An annual procurement plan for each procuring entity shall include–
(a) A detailed breakdown of the goods, works and services required, the procuring agency’s priorities and on indication as to whether it will be necessary to carry out a prior study for tenders of works;
(b) A schedules of the delivery, implementation or completion dates for all goods, works and services required;
(c) An indication of which items can be aggregated for procurement as a single package or for procurement through any applicable arrangements for common use items;
(d) An estimate of the value of each package of goods, works and services required and details of the budget available and sources of funding;
(e) An indication of the rules applicable to the procurement, where any procurement is not subject to these Regulations;
(f) An indication of the anticipated procurement method for each procurement requirement, including any need for prequalification, and the anticipated time for the complete procurement cycle, taking into account the applicable approval requirements;
(g) An indication of whether goods, works or services will be procured by the Procurement Unit any special agency designated to procure common use items or any other body;
(h) An indication of the resources available for managing the procurement workload;
(i) An indication whether there will be local or regional preferences for certain types of tender;
(j) A specification of whether there is a requirement for noobjection for an award of contract;
(k) A specification of planning schedules under which different processes for tendering shall be undertaken;
(l) A specification of schedules for the execution of contracts; and
(m) The details of any committed or planned procurement expenditure under existing multiyear contracts.
(1) A procuring entity shall aggregate procurement requirements, where appropriate, in order to achieve economies of scale.
(2) A Procurement Unitshall, in deciding where aggregation is appropriate, consider all relevant factors, including–
(a) which items are of a similar nature and likely to attract the same bidders;
(b) which items shall be ready for bidding at the same time and whendelivery, implementation or completion is required;
(c) the optimum size and type of contract to attract the greatest and most responsive competition, taking into account the market structure for the items required;
(d) the need to apply any applicable measures to promote the participation of national suppliers or other target groups;
(e) which items will be subject to the same bidding requirements and conditions of contract; and
(f) the potential to realise saving in time, transaction costs or facilitate contracts management by the procuring entity.
(1) Notwithstanding the prohibition on disaggregation of procurement requirements, a procuring entity may divide a procurement requirement, which could be procured as a single contract, into a package, consisting of several lost which are to be tendered together, where it is anticipated that the award of several separate contracts may result in the best overall value for the procuring entity.
(2) A procurement entity may divide a requirement into a package of separate lost where it is likely to increase the number of responsive bids by enabling the participation of–
(a) bidders who are able to bid for some, but not all, types of item; or
(b) small suppliers who would not be qualified to bid for the complete package as a single contract.
(3) A procuring entity shall not divide requirement into lots–
(a) for the sole purpose of avoiding thresholds or levels of authority;
(b) where the award of several separate contracts would create problems of compatibility or interchangeability between items purchased as separate lots;
(c) where the award of several separate contracts would invalidate or otherwise restrict any supplier’s warranty or liability; or
(d) where the award of several separate contracts would increase the costs of servicing maintenance or similar requirements.
(4) Where a procuring entity divides a requirement into lots, which may result in separate contracts, the selection of the procurement method shall be determined by the estimated total value of all the lots.
(5) Where a procuring entity divides a requirement which could be procured as a single contract into lost, the procuring entity shall–
(a) permit bidders to bid for a single lot, any combination of lot or all lost; and
(b) demonstrate, prior to contract award, that the recommended contract award or combination of contract awards offers the best overall value for the procuring entity.
(1) A user department shall document all procurement requirements in a procurement requisition in the format set out in the Third Schedule, which shall include–
(a) a statement of requirements, in accordance with these Regulations, as appropriate;
(b) the estimated value of the goods, works or services; and
(c) details of the funds budgeted for the requirement, including any funds from future budgets for multiyear contracts.
(2) A user department shall–
(a) In preparing the statement of requirements, ensure that it seeks technical advice, where required; and
(b) In estimating the value of the goods, works or services, ensure that the estimate is realistic and based on up-to-date information on economic and market conditions.
(3) A requisition shall be approved by the controlling officer or chief executive officer or by an officer or officers designated by the controlling officer or chief executive officer to perform this function prior to the initiation of procurement proceedings.
(4) Any approval of a requisition shall include confirmation of the–
(a) Need for the items listed and authority to proceed with the procurement; and
(b) availability of funds for the procurement.
(6) Any requisition approved in accordance with sub-regulation (3) shall be submitted to the Procurement Unit to initiate procurement proceedings.
(1) A Procurement Unit shall ensure that adequate funds are budgeted prior to initiating procurement proceedings, taking into account all costs involved in the procurement.
(2) The costs involved may, in addition to the total contract price, include the following:
<IN:LF:1.5,FI:-1.5> (a) contingencies, including any anticipated contract variations, exchange rate fluctuations or allowance for price adjustment;
(b) other costs relating to the successful delivery of a procurement requirement and for which the procuring entity shall be liable, such as freight, insurance customs clearance, inland delivery, import taxes or duties, inspection, installation or any costs relating to service or maintenance agreements;
(c) costs relating to facilities, services or resources to be provided by the procuring entity, such as office space or communication facilities for consultants or counterpart staff; or
(d) the cost of any other related contract, which is necessary for the successful implementation of the procurement, such as a contract for engineering supervision of a construction contract.
(3) A Procurement Unit shall also ensure that adequate funds are available for managing the procurement proceedings, including any funds required for publication of notices.
(4) Where a procuring entity intends to initiate procurement proceeding for a multiyear contract, which will commit the procuring entity to make payments in subsequent financial years, the procuring entity shall ensure that funds–
(a) For the current financial year are budgeted; and
(b) For future financial years are included in budgets for subsequent financial years.
(1) Every requisition for the procurement of goods shall be accompanied by a complete, precise and unambiguous description of the goods required, in the form of a statement of requirements.
(2) A statement of requirements shall include, where appropriate–
(a) a list of the goods and the quantities required, including any incidental services or works, such as delivery, installation, commissioning, maintenance, repair, user training or the provisions of after sales services;
(b) a delivery and completion schedule;
(c) specifications; and
(3) The specifications referred to in paragraph (c) of sub-regulation (2) shall include, where appropriate–
(a) The purpose and objectives of the goods;
(b) A full description of the requirements;
(c) A generic specification to an appropriate level of detail;
(d) A functional description of goods, including any environmental or safety features;
(e) The performance parameters, including outputs, time scales and any indicators or criteria by which satisfactory performance can be determined;
(f) The process and materials descriptions;
(g) The dimensions symbols, terminology language, packaging, marking and labelling requirements;
(h) The inspection and testing requirements; and
(i) Any Zambian or other applicable standards.
(1) A statement of requirements for goods shall not include type, specific origin, producer, manufacturer catalogue or numbered item, unless there is no other sufficiently precise or intelligible way of describing the requirement, in which case the words “or equivalent” shall be include and the description shall serve only as a benchmark during the evaluation process.
(2) Notwithstanding subregulation (1), where a particular trademark, brand name, patent, design, type, specific origin, producer, manufacturer, catalogue or numbered item is required for reasons of technical compatibility, servicing, maintenance or preservation of warranty, such description may be used, subject to written justification.
(1) Every requisition for the procurement of works shall be accompanied by a complete, precise and unambiguous description of the works required, in the form of a statement of requirements.
(2) A statement of requirements shall include, where appropriate–
(a) a description of the scope of the works, which may include design, construction or installation of equipment;
(b) the purpose and objectives of the works;
(c) the duration or completion schedule for the works;
(d) details of the supervision requirements, working relationships and other administrative arrangements;
(e) drawings or design requirements;
(f) specifications and standards;
(g) bill of quantities or its equivalent; and
(h) inspection and testing requirements.
(1) Every requisition for the procurement of services shall be accompanied by a complete, precise and unambiguous description of the services required in the form of a statement of requirements.
(2) A statement of requirements shall consist of terms of reference, which shall include, where appropriate–
(a) A background narrative to the required services;
(b) The objectives of the services and targets to be achieved;
(c) A list of specific tasks or duties;
(d) Deliverables or outputs for the assignment;
(e) The role, qualifications or experience required for any key staff;
(f) Management and reporting lines for the supplier, including administrative arrangements and reporting requirements;
(g) Any facilities, services or resources to be provided by the procuring entity;
(h) Inspection or quality testing requirements or indicators of successful performance; and
(i) The duration or completion schedule.
(1) A Procurement unit shall, following receipt of an approved requisition, prepare a procurement plan for each individual procurement requirement.
(2) An individual procurement plan shall include–
(a) a description of the requirement, including the schedule required for delivery, implantation or completion of the goods, works or service and any division into lots;
(b) the estimated value of the requirement and, where applicable, individual lots;
(c) the proposed procurement method, and justification for the use of any method other than open bidding or open selection;
(d) an indication of whether pre or postqualification will be required, or whether the procurement requirement will make use of nay pre-qualification for a group of contracts; -
(e) an estimate of the time required for each stage in the procurement cycle, taking into account publication requirements and the applicable approval requirements;
(f) the proposed type of contract in accordance with these Regulations;
(g) the rules applicable to the procurement, where any procurement is subject to alternative rules in accordance with the Act;
(h) an indication of the resources required and available for management of the procurement process and contracts management; and
(i) any other relevant information.
(3) Notwithstanding subregulation (1), where the estimated value of the procurement requirement is permitted for request for sealed quotations, no written procurement plan shall be required.
(1) A procuring entity shall select the most appropriate method of procurement for each requirement, as part of the procurement planning process.
(2) The choice of procurement method shall take into account–
(a) the estimated value of the procurement in accordance with the thresholds for that kind of procurement as specified in the Second Schedule;
(b) the potential sources for the procurement, in accordance with these Regulations;
(c) the nature of the goods, works or services required; and
(d) the circumstances surrounding the procurement, such as the existence of an emergency need.
(3) A procuring entity shall clearly state in the procurement record, the reasons for the selection of a procurement method other than open bidding or open selection.
(4) A procuring entity shall obtain the prior authorization of the approvals authority, for the use of–
(a) Limited bidding or limited selection; or
(b) Direct bidding, except where the method is used on grounds of low value, in accordance with these Regulations.
(1) A Procurement Unit shall, in considering the potential sources for any procurement requirement, consider all relevant factors, including–
(a) The competitiveness of the national, regional or international market for the goods, works or services to ensure value for money is achieved with public funds;
(b) The likely interest of national, regional or international bidders, given the size and nature of the requirement;
(c) Whether items should be purchased from the manufacturer or from a distributor or agent;
(d) Any restrictions relating to existing copyright, intellectual property rights, patent or proprietary rights;
(e) Whether there are functionally equivalent goods, works or services which would meet the needs of the procuring entity;
(f) Any applicable Government regulations that restrict sources;
(g) The need for compatibility or interchangeability with existing goods, works or services;
(h) The requirements for servicing and maintenance of items purchased and any restrictions related to conditions of warranty;
(i) Any impact on conditions relating to warranty or a supplier’s liability, if alternative suppliers are used for additional or continued work;
(j) Any potential benefits such as the use of experience acquired or savings in mobilisation costs; and
(k) Any applicable regional or international agreements or obligations.
(2) Any recommendation to use a limited number of suppliers or a single source as the criterion for determining the choice of procurement method shall include–
(a) a comprehensive analysis of the market for the required goods, works or services;
(b) full details of the relevant factors in subregulation (1);
(c) a clear statement that no other sources could be used to open the requirement up to a more competitive procurement method; and
(d) A justification for any part of the statement of requirements that restrict the number of potential source.
(1) An emergency situation shall include circumstances which are urgent, unforeseeable and not caused by the dilatory conduct of the procuring entity where–
(a) The country is threatened by or confronted with a disaster, catastrophe or war;
(b) Life, or the quality of life or environment may be seriously compromised;
(c) The conditions or quality of goods, equipment, buildings or publicly owned capital goods may seriously deteriorate unless action is urgently and necessarily taken to maintain them in their actual value or usefulness; or
(d) An investment project is seriously delayed for want minor items.
(2) The general maintenance of equipment shall not be regarded as an emergency unless the conditions specified in subregulation (1) exist.
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