Change looming in procurement law as Gov’t tables amendment bill
Finance and Planning Minister, Dr Phillip Mpango in past event. Photo by File.
What you need to know:
Tabling the Public Procurement (Amendment) Bill, 2016 in Parliament in Dodoma, the Minister for Finance and Planning, Dr Phillip Mpango, said major changes include obliging foreign firms bidding in international tenders to bring on board local companies, experts and purchase locally manufactured goods.
Dodoma. The government on Thursday proposed sweeping changes to the Procurement Act 2011 seeking to increase efficiency minimize procurement transaction costs and increase the participation of local firms and experts in the public international tendering processes.
Tabling the Public Procurement (Amendment) Bill, 2016 in Parliament in Dodoma, the Minister for Finance and Planning, Dr Phillip Mpango, said major changes include obliging foreign firms bidding in international tenders to bring on board local companies, experts and purchase locally manufactured goods.
(Sections 55A, 55, 55Cand 55D). The new clauses also require procurement entities to give exclusivity to local companies in some procuring processes in order to build the capacity of local firms either individually, through joint ventures or through forming partnerships with foreign firms.
Other changes include allowing procurement entities to negotiate prices and giving the cabinet minister responsible to issue regulations “for procurement of certain goods for government without approved procurement standards.”
This clause contained in the subsection 65B (3) could set the path towards procurement of used goods that had been prohibited by the Procurement Act 2011.
Meanwhile the previous procurement act prohibited negotiating prices during awarding tenders or disposing government assets through subsections (c) and (d) of section 76(2) which would now be repealed if the new law passes.
The Amendment Bill also gives the Public Procurement Appeals Board the same powers as those of any court of law by removing the requirement of using courts of law to enforce its decisions. The Bill also sets time to be used in various stages in procurement processes at seven days to increase efficiency.
The government also proposes that the tenderers who refer procurement entities to the Appeals Board be obliged to pay compensations to procurement entities when the lose cases. The law to be amended only provided for procurement entities to pay compensation to tenderers.
