FEDERAL PUBLIC PROCUREMENT DIRECTIVE
FEDERAL PUBLIC PROCUREMENTDIRECTIVEMINISTRY OF FINANCE & ECONOMICDEVELOPMENTJUNE/20101
TABLE OF CONTANTSARTICLEPart I1.2.3.4.Part II5.6.7.Part III8.9.10.11.12.13.14.Part IV15.16.Part V17.18.19.20.21.22.23.24.25.Part VI26.27.Part VII28.29.30.TITLEPAGEGeneral Short title .Definitions .Scope of Application .Principles Duties & Responsibilities Duties and Responsibilities of heads of public bodies.a procurement unit . Endorsing Committee .Procurement Plan Preparation of Procurement Plan Identification and Packaging of Procurements .Selection of Procurement Method .Setting time table for Procurement .Content of a procurement Plan .Approval and amendment of Procurement plan Publication of annual Procurement plan Procurement methods and their application .Approved methods of Procurement Procedure of National Competitive Bidding Procedure of International Procurement .International Competitive Bidding .Other International Procurement Procedures .Procurement by means of two stage bidding pre-qualification bid Pre-qualification bid . .Procurement made by means of request for proposal .Invitation for Expression of Interest . Procurement by Restricted Bidding . .Procurement by request for quotation .Single Source Procurement . .Special Procurements .Special Large Procurement Special Procurements of Common user items .Contract Administration .Implementing Procurement Contracts Follow –up of Performance of contracts Completion of a contract 82878787959597992
Miscellaneous Provisions .Review of Non-Standard Procurement Proposals .Records of Procurement .Registration of suppliers and conditions for registration in the suppliers listEthics in Public procurement .Professional Ethics expected of persons engaged in public procurement Ethics Expected from candidates The Board for review and resolution of complaints in public procurementAppointment and terms of office of members of the board .Meeting of the board .Resignation of member ship .Termination of . .Disclosing Conflict of interest Powers of the board Duties of the board .Procedure of Review of complaints Presented to the head of a publicbody or the secretariat of the board .The right of complaint of a candidate or a bidder .Matters in respect of which complaint may not be lodged Procedures for review of complaints presented to the headof a public body .The obligation of a procurement unit to suspend a procurementproceeding .Procedure for presentation to and review of complaints by the board .Review of reports submitted by public bodies to the Agency on misconduct of bidders and suppliers Procedures of submission and review of reports on mis-conduct of biddersand supplier’s .Force Majeure .Review of complaint by Court Repealed Directives and Effective DateRepealed Directive .Effective Date Part VIII31.32.33.Part IX34.35.Part X36.37.38.39.40.41.42.Part XI43.44.45.46.47.Part XII48.49.50.Part s Public Annual Public Procurement Plan Submission FormThe primary responsibilities of a chair person and a secretary of a procurement endorsingcommittee.Floating Period of BidsList of Machinery to be procured for use in the Construction of Roads and buildings withAdvance Payment allowed for contractors pursuant to Article 16.26.7 of this directiveBid security form to be filled by bidders pursuant to article 23.2.5 of this directive.3
Public Procurement DirectiveThis Directive is issued by the Ministry of Finance and Economic DevelopmentPursuant to Article 78/2 of the Ethiopian Federal Government Procurement andProperty Administration Proclamation no 649/2009 and Article 19 of the definitionof powers and duties of the Executive Organs of the Federal Government ofEthiopia Proclamation No 471/2005/6 (as amended).PART IGENERAL1. Short TitleThis directive may be cited as “The federal Government Public ProcurementDirective.”2. Definitions1. Unless the context otherwise requires, in this directive:a)“Technical Specification’’ means document describing the quality,type and standard with which the required goods, services, works orconsultancy services should clamationNo.649/2009.c)“Bid” means a stage in the procurement process extending fromadvertisement of or invitation to bid up to signing of contract.1
d)“Standard Bidding Document” means the document prepared bythe Agency to serve as a point of reference in the preparation ofbidding documents by Public Bodies.e)“Procurement Unit” means a body responsible for procurementwith in public bodies with out prejudice to the particularorganizational structure appropriate to the nature of their dutiesf) “Total Price” means payment made by public bodies in respect of aparticular procurement which includes taxes and all other incidentalcosts.2. Other words and terms in this Directive shall have the respective meaninggiven to them in the Ethiopian Federal Government Procurement andProperty Administration Proclamation No. 649/20093. Scope of ApplicationThis Directive shall apply to all Federal Public Procurements to which theProclamation is applicable.4. PrinciplesAny Authority and execution of Procurement must comply with the followingPrinciples:a) Achieve maximum value for money in procurement. i.e. insureeconomy, efficiency and effectiveness.b) No Candidate Shall be discriminated or excluded from participating inpublic procurement on the ground of nationality or other reasonswhich are not related to the evaluation criteria except in accordancewith the rule of preference provided in the proclamation.2
c) Support the country’s economic development by ensuring economy,efficiency and effectiveness in the execution of public procurement.d) Any criteria applied in making procurement decisions and decisionstaken on each procurement must be made transparent to all concernedparties.e) Ensure accountability for decisions made and measures taken in theexecution of public procurement.f) Encourage local producers, companies and small and microenterprises which support the national economy through theapplication of preferential treatment granted by the Proclamation andthis Directive.PART IIDuties & Responsibilities5. Duties and Responsibilities of heads of Public bodies,Without prejudice to those provided in the Proclamation, a head of a PublicBody shall have the following additional duties and responsibilities:1. Ensure that the procurement staff and head of the procurement unit of thePublic Body have the required educational qualification and experience inthe fields relevant to public procurement.2. Ensure that the procurement staff and head of the procurement unit meethigh ethical standards.3. Ensure that the unit responsible for procurement in the Public Body hasthe necessary authority and internal system in place to enable itdischarges its duties as a team.3
4. Establish a Procurement Endorsing Committee to approve procurements ofhigh value in the Public Body, consisting of members no less than 3 personswhich serves for a maximum period of 3 years in accordance with thefollowing criteria:a) Officials, who are in high position of responsibility in the PublicBody.b) Need to have a better knowledge and experience and as far aspossible should comprise from various professions.5. Where appropriate, extend the service of members of the ProcurementEndorsing Committee for one additional term.6. Ensure that members of the Procurement Endorsing Committee have adequatetime and office facility necessary to carry out their duty.7. Ensure that the service, employees of the Public Body perform as members ofthe Procurement Endorsing Committee, is part of their regular duty and is assuch, incorporated into their work program and their performance in thecommittee accounts for their overall result.8. Make sure that the procurement staff, head of the procurement unit andmembers of the Procurement Endorsing Committee have in their possession,copies of the procurement and property administration Proclamation, thisDirective, the Standard Bidding Document and other necessary documents,and make training available to them in ordered to enable them acquireadequate knowledge of the public procurement system.9. Follow up the activities of the procurement unit and the ProcurementEndorsing Committee to make sure that the procurement staff and members ofthe Procurement Endorsing Committee give due attention in carrying out theirduty properly, and where necessary, take corrective measures.4
10. Establish ad hoc evaluation committee for procurements which arecomplex and require detailed technical evaluation.11. Examine and approve the procurement plan of the Public Body byascertaining that the following requirements are satisfied:a) That, the procurement plan is in harmony with the work program ofthe Public Body.b) That, items of procurement which can be consolidated in to a singleprocurement package are consolidated as such.c) That, procurements of the Public Body which can be executedtogether with procurements of other Public Bodies under a framework contract in accordance with the decision of the Agency areidentified.d) That the procurement plan is inclusive of all procurement needs ofthe Public Body and has secured the consent of the ProcurementEndorsing Committee.12. Cause to be communicated in due time to the body responsible forframework procurements, complete information on procurements of thePublic Body which can be executed in consolidation with procurementsof other Public Bodies under a framework contract.13. Pursuant to article 24/2 of this Directive concerning procurements ofsmall value which do not need the approval of the Procurement EndorsingCommittee:a) Delegate authority of approval of such procurements to theprocurement unit or5
b) Delegate authority of approval to the head that has direct relation tothe procurement.c) The delegation of procurement authority by the head of the PublicBody may be given to persons with various levels of responsibilitywith specified limits of procurement value.14. Ascertain that price adjustments made in the process of procurement is inkeeping with the procedure and the requirements of price adjustment setforth in article 16/14 of this Directive,15. Consider and give decisions on complaints lodged pursuant to article 43of this Directive and against rejection by the procurement unit ofrequest for information concerning the conduct of a particularprocurement in the Public Body.16. Sign a contract or delegate authority to sign a contract where necessary,and monitor the execution of any procurement as per the contract.17. pursuant to article 8/F of the Proclamation, Authorize the outsourcing ofa procurement by reason of its complexity or for lack of capacity of thePublic Body to handle that procurement, inconformity with thefollowing procedures:a) Ensure that the outsourced procurement service is rendered incompliance with the provisions of the Proclamation and thisDirective.b) Ensure that there is clear demarcation of responsibility between thePublic Body and the entity to which the procurement is outsourcedin the execution of the procurement.6
c) Ensure that all decisions taken in respect of out sourcedprocurements in accordance with this sub article have secured theapproval of the Public Body.18. Cause reports of completed procurements of the Public Body to be sentto the Agency in line with the Formats prepared and time stipulated bythe Agency.19. Make arrangements necessary for procurement audit or inspection to beconducted by the Agency in respect of the execution of procurements bythe Public Body, including the following:a) Make available in due time, documents necessary for procurementaudit,b) Cause the provision of office space and facilities for employeesassigned to conduct the procurement audit.c) Assign a staff to give explanation on the conduct of procurementsmade by the Public Body.20. Take appropriate corrective measures in accordance with the instructiongiven by the Agency based on the findings of the procurement audit andnotify the Agency of such measures,21. Cause information to be conveyed to the concerned tax authorityregarding payments made to suppliers in connection with procurementsexecuted by the Public Body.6. Duties and Responsibilities of a Procurement UnitApart from duties and responsibilities given by the Proclamation, a procurementunit shall have the following additional specific duties and responsibilities:7
1. Identify the procurement need and prepare the procurement plan of thePublic Body in accordance with article 8/1 of this Directive; Identify itemswhich are classified by the Agency as common user items which can bepurchased through consolidated procurement with needs of other PublicBodies,2. Make sure that except as provided in article 51 sub articles 1 g and h of theProclamation and article 25 sub article 7 of this Directive, any publicprocurement is made from suppliers who are registered by the Agency andhave Bank- Account.3. Prepare and submit to the Procurement Endorsing Committee, biddingdocuments in collaboration with the procurement initiator.4. Make corrections to the bidding documents in conformity with therecommendation of the Procurement Endorsing Committee,5. Subject to the provision of article 35 of the Proclamation, disclose to thepublic by posting it on the Agency’s website at the same time ofpublication of its bid advertisement in a news paper, any procurement thevalue of which corresponds to or is greater than that stated in this subarticle, including procurements to be made by means of InternationalCompetitive Bidding.a) For worksEthiopian birrb) For Goods.3,000,000.00c) For consultancy.2,000,000.00d) For non-consultancy.10,000,000.001,000,000.006. In respect of procurements the value of which corresponds to or is greaterthan that specified in sub article 5 of this article, disclose the information to8
the public by filling it in the form provided for this purpose and posting iton the Agency’s website within 5 days of signing the contract after award.7. Avail bidding document for sale and gives or causes to be givenclarification on issues raised regarding the bidding document,8. Prepare bid box and manage same,9. Open bids, invite the procurement initiator and internal audit to attend thebid opening ceremony, if possible,10. Make sure that the main pages of bid documents submitted by bidders aresigned and stamped and cause to be maintained minutes of the Bid opening.11. Receive, cause to be kept and or release or forfeit bid securities dependingon the conditions stated in the bidding documents.12. Make sure that copies of bid documents are delivered to members of bidevaluation committee and that the original bid documents are kept securelyfor reference.13. Evaluate or cause to be evaluated bid documents in group and submit theresult to the Procurement Endorsing Committee if by reason of the value ofthe procurement being beyond the threshold specified in article 24/2 of thisdirective, it is necessary to submit the evaluation result to the committee,14. Ensure that every information provided in the bid documents is copied andcalculations are made accurately and no act is committed in favor of oragainst a bidder during or in the Bid evaluation.15. Give or cause to be given clarification on issues raised by the ProcurementEndorsing Committee in regard to a procurement subject to the approval ofthe committee.9
16. Follow up and coordinate the execution of outsourced procurements.17. Approve procurements the value of which is below the threshold specifiedin article 24/2 of this Directive in accordance with the authority delegatedto it by the head of the Public Body.18. Disclose the result of a Bid evaluation to the successful and unsuccessfulbidders.19. Negotiate procurement contracts with successful bidders, sign contracts inaccordance with the authority delegated to it by the head of the PublicBody or cause same to be signed by the concerned official of the PublicBody.20. Ascertain that the Public Body has discharged its obligation and its rightshave been satisfied under a procurement contract.21. Select candidates for procurements to be executed by request forquotation and collect quotations from such candidates.22. Ascertains that the price offered by successful bidders is commensurateas compared to the market price; particularly for procurements to beconducted by Request for quotation method of procurement.23. Keep procurement documents and give clarifications on procurements ofthe Public Body when requested by the appropriate bodies.24. Except as provided in Article 23/2 of the Proclamation, gives informationregarding the execution of the procurement for any interested person aspromptly as possible; however if the procurement unit has to incur coststo provide the information, the person seeking the information shall bearthe cost.10
7. Duties and responsibilities of a procurement EndorsingcommitteeApart from duties and responsibilities stated in the Proclamation, a ProcurementEndorsing Committee shall have the following specific duties and responsibilities:1. Ensure that the annual procurement plan prepared by the procurement unit ofa Public Body takes into account the following points:a) That the identified procurement needs of the Public Body are in harmonywith its work program.b) that there is no other better alternative to procurement to satisfy each need,c) that the procurement plan is prepared in such away as to enable bulkpurchased) That other special requirements arising from the nature of the PublicBody are addressed.2. Ascertain that the bidding document prepared by the procurement unitsatisfies the following requirements:a) That it is inconformity with the standard bidding document prepared bythe Agency for each type of procurement.b) That the technical specification complies with the conditions stipulated inthe Proclamation & this Directive.c) That the evaluation criteria are non-discriminatory, transparent andachievable.d) That it contains all the necessary forms and conditions which theproclamation and this directive require to be stated depending on the typeof the procurement, and other matters of fundamental importance.11
3. consider and approve Bid evaluation reports of procurements the value ofwhich exceeds the threshold specified in article 24/2 of this Directive for eachtype of procurement, by ascertaining that the following conditions aresatisfied:a) That the evaluation was conducted in accordance with the biddingdocument,b) That the evaluation was carried out in compliance with the provisions ofthe proclamation and this directive,c) That the detailed evaluation leading to the recommendation given in theevaluation report and the overall pr
Property Administration Proclamation no 649/2009 and Article 19 of the definition of powers and duties of the Executive Organs of the Federal Government of Ethiopia Proclamation No 471/2005/6 (as amended). PART I GENERAL 1. Short Title This directive may be cited as “The federal Government Public Procurement Directive.” 2. Definitions 1.
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