PUBLIC PROCUREMENT & DISPOSAL OF PUBLIC ASSETS ACT Presented by: Nyasha Chizu FCIPS Senior Procurement Executive Office of the President and Cabinet

Background of the Reform Agenda Background of the Reform New Order Discussions

Background of the Reforms Public Finance Management Systems Review Procurement Management Systems Review (CPAR) Country Integrated Fiduciary Assessment Adopted by the Government in February 2015 CPAR A new Board was appointed on the 1st of November 2015 Appointment of the new SPB

The Constitution: Section 315 Procurement must be effected in a transparent manner The procurement process must be fair The procurement process must be honest The procurement process must be cost effective Requirements for General Procurement Negotiations for joint ventures must be transparent; Negotiations for joint ventures must be honesty Negotiations for joint ventures must be cost effective; Negotiations for joint ventures must be competitive Requirements for Public-Private Partnerships

The Principles of the Act It covers all State Institutions at every level It covers all stages of the procurement cycle It covers all types of procurement There are provisions for exclusions and exemptions Scope of the Act It create a Public Procurement Regulatory Authority of Zimbabwe (PRAZ) Separation of Regulatory and Operational Functions Establishment of the Board of PRAZ

Principles (Cont) Decentralisation of procurement activities Procurement shall be managed by a Procurement Mgt Unit Procurement is regarded a strategic tool in public service delivery Organisation of procurement in institutions Procurement practitioners shall be regulated E-procurement and use of framework agreements shall be provided for Professionalisation & modernization of procurement

Principles (cont) The Accounting Officer can now review own decision The Authority shall be the 1st level of appeal Enforcement shall be through the Administrative Court Appeals procedures There are sanctions for staff of the procuring entities There are sanctions for suppliers Penalties for violation of procurement laws

A new rules for competition If professional services are to be procured from any person bound by a Statutory Tariff in relation to that profession or service, this Act shall apply so as not to require that person to be so bound, and no adverse consequences shall be visited upon that person for not adhering to such a tariff Section 3 (4) of the Act

Responsibility of procuring entities Accounting Officer Staff in the PMU shall assist the Accounting Officer Responsibility of Procurement (Section 14 of the Act) PMUs shall be authorized to conduct procurement Annual Procurement Budget and Risk Profile shall determine the class of a PMU Authority to conduct procurement (Section 15 of the Act) Low procurement activities Failure to meet the standards established by the Authority Procurement function can be delegated or combined

Undue Influence Section 16 (1) of the Act The A/O shall not implement a directive that violates the Act Section 16 (1) of the Act The A/O shall only implement a directive if it is in writing Section 16 (2) of the Act The A/O shall report to the VP, AG, AG and Chief Secretary to the President and Cabinet Action after implementing the directive

Structure of PMU A/O Evaluation Committee PMU

Role of PMU (Section 17 of the Act) Planning procurement Preparing bidding documents Managing evaluation of bids and contract negotiation Supervising the evaluation committees Advising the A/O on all procurement matters Preparation of contract documents Managing procurement contracts

Other new Provisions Section 17 (4) – where activities does not justify a PMU Procurement can be delegated Section 19 – common use items – framework agreements Procurement activities can be shared Section 26 – PE can engage the market to develop specifications Pilot survey as a means of assessment feasibility of technical solutions Market consultations

Procurement Methods (Section 30) Competitive bidding Restricted bidding Direct procurement Request for Quotations Procurement of Consultancy Services Procurement of joint ventures

Eligibility Requirements Meeting specified ethical standards Company Registration Documents Demonstration of contractual capacity Insolvency, liquidation, judicial management etc Legal Financial Status ZIMRA and NSSA compliance Complies with local laws

Eligibility (cont) Company and Directors and employees record (5 years) Criminal Record Professional and Technical qualifications and competences Financial resources Equipment and other physical facilities Managerial capability Experience Business reputation and personnel Technical Competencies of the Supplier

Preference to locals Extent of local participation or subcontracting Provisions of the Indigenization and Economic Empowerment Act Entities predominantly owned by women Women owned business Procurement of technological, engineering or industrial designs Research Institutions

Review of Procurement Awards Procurement of a certain threshold are subject to ex-ante review Special Procurement Oversight Committee Attorney General Accountant General Auditor General Principal Director – Works - MoPWLGNH Composition of Ex-ante Review Committee

Procurement of Consultancy Expression of Interest Shortlisting Request for Proposals The process Quality and Cost Based Selection Fixed Budget Selection Method Least-cost Selection Method Quality based selection method Selection among community based organisations Single source selection Selection of individual consultants Award Criteria

Procurement of Joint Ventures Unsolicited Projects Solicited Projects Approval by the JV Unit Cabinet Approval Refer to the JV Act Shortlisting EoI Negotiations RfP Contract award Prior-review

Transparency and Integrity Award Notices Code of Conduct for Supplier Code of Conduct for PE staff

Other Provisions Review of award of tenders SPRC comprising the 3 AGs and PD in MoPWLGNH Review of award of tenders Contract Management Provision Assets Disposal Provisions Investigations by the Authority

e-GP Journey Development of e-GP Strategy Development of e-GP Specifications Development of e-GP Bidding Document

Nya.Chizu@gmail.com In case you have a contribution for the new Public Procurement and Disposal of Public Assets Regulations, please drop me an email as a matter of urgency.

The end Questions are Welcome