CIFOZ 2018 ANNUAL CONGRESS 26 October 2018 Elephant

CIFOZ 2018 ANNUAL CONGRESS 26 October 2018 Elephant Hills Hotel Victoria Falls

NEW STANDARDS FOR PUBLIC PROCUREMENT Nyasha Chizu (FCIPS) Chief Executive Officer Procurement Regulatory Authority of Zimbabwe

Agenda Objective of the legal framework Registration of Suppliers Public Procurement Methods Local Preference Provisions Sanctions for violating the law Towards e-GP system implementation Discussions

Objectives (Section 4 of PPDPA Act) Transparency, fair, honest, cost-effective and competitive public procurement Promoting competition among bidders Fair and equitable treatment of bidders to achieve value for money Integrity, fairness and public confidence Promoting environmental, social, economic and other policies authorized by the law

Registration of suppliers (Section 4 of Regs) Who should register • Bidders and contractors Effects of not registering • You cannot be or be contracted Classes that can register • Registered companies • Partnerships, syndicates or other business entities • Individuals

Procurement methods Sec 30 – Act) Competitive bidding • Domestic tenders • International tenders Restricted bidding • Follows a prequalification exercise Direct procurement methods • Limited to circumstances specified under Section 33 Request for quotations • Low value procurement Procurement of consultancy and Joint Ventures • Part VIII and Section 100 of the Act

Thresholds (Sec 10 of Regulations) Competitive Quotations • Works – Below US$20, 000 • Goods – Below US$10, 000 • Services – Below US$5, 000 Domestic Tenders • Works – Between US$20, 000 and US$5 million • Goods – Between US$10, 000 and US$300, 000 • Services – Between US$5, 000 and US$200, 000 International Tenders • Above domestic tender threshold

Local preference provisions (Section 29 – PPDPA Act) Considerations No. 1 – Chapter 24: 33 • Location of supplier or manufacturer • Extent of subcontracting of local contractors • Extent of subcontracting to supply goods or services Consideration No. 2 – Section 14 of Constitution • Business predominantly owned by women • Extent of subcontracting of local women owned construction companies • Extent of subcontracting of local women owned businesses to supply goods and services Consideration No. 3 – Local Research • Technological, engineering and industrial designs subjects to registration of intellectual property – Universities and Research Institutions

Margins of preference (Section 8 of Regs) Goods and services • Fifteen percent (15%) Works • Seven and half percent (7. 5%) Extent of application of preference • Entities predominantly owned by women • Universities and research institutions - consultancy

Requirements for application of preference (Section 29 of PPDPA Act) It must be stated clearly in the bidding document It must be applied strictly according to the prescribed procedures