Question Tag: Procurement Process

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  • 3 Marks

PSAF – Nov 2021 – L2 – Q4b – Public Procurement

Explain the functions of an Entity Tender Committee as per the Public Procurement Act 2003.

Section 20(1) of the Public Procurement Act 2003 (Act 663) states that a Procurement entity shall establish in the manner set out in the First Schedule and in accordance with the categories set out in Schedule 1A, an Entity Tender Committee.

Required:
Explain THREE (3) Functions of an Entity Tender Committee.
(3 marks)

  • Ensure Compliance with Procedures:
    • The Entity Tender Committee is responsible for ensuring that all prescribed procedures outlined in the Public Procurement Act are strictly followed at every stage of the procurement process.
  • Work Within Threshold Limits:
    • The committee must operate within the threshold limits specified in the Second Schedule of the Act and adhere to the method thresholds outlined in the Fifth Schedule.
  • Exercise Sound Judgment in Procurement Decisions:
    • The committee must exercise sound judgment when making procurement decisions, ensuring that all actions are in the best interest of the procurement entity and comply with relevant legal and procedural requirements.
  • 7 Marks

PSAF – Nov 2021 – L2 – Q4a – Public Procurement

Determine if a district assembly can cancel a procurement process and explain the conditions under which such a cancellation is allowed.

Rabina Construction Ltd purchased Tender Document from Adagya District Assembly to tender for contracts advertised by the assembly. However, in the process of preparing to submit the tender, Adagya District Assembly cancelled the procurement process before the deadline for submission of the tender. Rabina Construction, therefore, feels disappointed since it has incurred some cost in trying to respond to the tender and intends to take legal action against the assembly. Rabina Construction is therefore seeking your opinion on whether the assembly has the right to such action.

Required:
i) Determine whether Adagya District Assembly has the right to cancel the procurement process when it is still in progress?
(1 mark)

ii) Explain FOUR (4) conditions under which such right could be exercised or otherwise.
(6 marks)

i) Right to Cancel the Procurement Process:
Yes, Adagya District Assembly has the right to cancel the Procurement Proceedings in accordance with Section 12(28 a) of the Public Procurement (Amendment) Act, 2016 (Act 914).
(1 mark)

ii) Conditions for Cancellation of Procurement Proceedings:
A Procurement Entity may, for specific and fully justified reasons, cancel Procurement Proceedings before the expiry of the deadline for the submission of tenders, where:

  1. Imperfection in Tender Documents: The entity discovers an imperfection in the wording of the request for submission of tenders, which could mislead tenderers.
  2. Decision to Execute Work Internally: The procurement entity decides to carry out the work subject of the tender by itself.
  3. Budget Cuts: There is a cut in the budget intended for performing the contract.
  4. No Bid Submission: No bid has been submitted.
  5. Exceptional Circumstances or Force Majeure: Exceptional circumstances or a force majeure render normal performance of the contract impossible.
  6. Change in Economic or Technical Data: The economic or technical data of the project has fundamentally changed.
    (6 marks)
  • 6 Marks

PSAF – May 2019 – L2 – Q2c – Public Procurement

Explain circumstances that may constitute an offense under the Public Procurement Act, 2003 (Act 663).

c) Section 92 (1) of the Public Procurement Act, 2003 (Act 663) provides that any person who contravenes any provision of the Act commits an offense and where no penalty has been provided for the offense, the person is liable on summary conviction to a fine not exceeding 1000 penalty units or a term of imprisonment not exceeding five years or to both.

Required:
Explain FOUR (4) circumstances that may constitute an offense as provided by the Public Procurement Act 2003, (Act 663).
(6 marks)

The following constitute offenses under the Public Procurement Act 2003 (Act 663):

a) Entering into a collusive agreement: Any person who attempts to enter into a collusive agreement, whether enforceable or not, with any other supplier or contractor where the prices quoted in their respective tenders, proposals, or quotations are or would be higher than would have been the case had there not been collusion.

b) Influencing the procurement process: Directly or indirectly influencing or attempting to influence the procurement process in any manner to obtain an unfair advantage in the award of a procurement contract.

c) Altering procurement documents: Altering any procurement document with the intent to influence the outcome of a tender proceeding. This includes forged arithmetical corrections or the insertion of documents, such as bid security or tax clearance certificates, which were not submitted at bid opening.

d) Request for clarification: Making a request for clarification in a manner not permitted under the Act, which could give an unfair advantage in the procurement process.

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