Ethiopian Public Procurement Manual

1 The Federal Democratic Republic of Ethiopia Ministry of Finance and Economic Development Public Procurement and Property Administration Agency Public Procurement Manual . Addis Ababa December 2011. ACRONYMS. ATSM American Standard Testing Method BD Bidding Documents BDS Bidding Data Sheet BOO Build Own Operate BOOT Build Own Operate Transfer BOT Build Own Transfer DDP Delivered Duty Paid EXW Ex Workshop FBS Selection under Fixed Budget GCC General Conditions of Contract ICB International Competitive Bidding INN International Nonproprietary Name ISO International Standards Organization ITB Invitation to Bidders ITC Invitation to Consultants JV Joint Venture JVCA Joint Venture Consortium or Association LC Letter of Credit LCS Least Cost Selection LOI Letter of Invitation MOFED Ministry of Finance and Economic Development PPA Public Procurement and Property Administration Agency QBS Qualification Based Selection QCBS Quality and Cost Based Selection RFP Request for Proposals RFQ Request for Quotations

2 SBD Standard Bidding Documents SCC Special Conditions of Contract TIN Taxpayer's Identification Number TOR Terms of Reference VAT Value Added Tax The Federal Democratic Republic of Ethiopia Ministry of Finance and Economic Development Public Procurement and Property Administration Agency Public Procurement Manual . Note to Public Bodies: The information contained within the brackets is in the form of Hidden text (Hidden text: Character formatting that allows you to show or hide specified text. Microsoft Word indicates hidden text by underlining it with a dotted line.), and will not print unless the print option is flagged. The hidden text doesn't need to be deleted. To view hidden text on the screen, click Show/Hide on the Standard toolbar (Toolbar: A bar with buttons and options that you use to carry out commands; or To view hidden text click Options on the Tools menu, click the View tab, and then select the Hidden text check box under Formatting marks.)

3 To see hidden text in a printed document, click the Print on the File menu. Under Print click Options and than select the Hidden text check box under Include with document To omit hidden text in a printed document, click Options on the Tools menu, click the Print tab, and then clear the Hidden text check box under Include with document. Prepared in 2008 by International Business Initiatives (IBI) for the Public Procurement and Property Administration Agency, the Ministry of Finance and Economic Development, Ethiopia, under the World Bank Public Sector Capacity Building Program (PSCAP). Revised in December 2011 by the Public Procurement and Property Administration Agency December 2011 Revision This revision is to: 1. Align text of the Public Procurement Manual with the provisions of Ethiopian Federal Government Procurement and Property Administration Proclamation No.

4 649/2009 that entered into force on the date of publication in the Federal Negarit Gazeta No. 60 on 9th day of September 2009 and the Federal Government Public Procurement Directive issued by the Minister of Finance and Economic Development that entered into force on 8th day of June 2010. 2. Correct various minor mistakes throughout various sections of this Public Procurement Manual , which were identified after the Public Procurement Manual was released. 3. Incorporate, under Appendixes section, newly developed standard forms and templates. TABLE OF CONTENTS. Public Procurement Manual 2011 .. 6. INTRODUCTION TO THE Procurement Manual .. 11. INTENDED 11. PREAMBLE .. 13. 1 GENERAL PROVISIONS .. 14. SHORT TITLE, COMMENCEMENT AND PURPOSE OF THE PROCLAMATION. AND DIRECTIVE .. 14. DEFINITIONS .. 14. SCOPE OF APPLICATION.

5 19. INTERNATIONAL 20. HIERARCHY OF LAWS IN ETHIOPIA .. 20. 2 BASIC Procurement RULES .. 22. Public ACCESSIBILITY OF LEGAL TEXTS .. 22. RECORDS OF 22. ELIGIBILITY AND NON-DISCRIMINATION .. 24. FORM OF 24. QUALIFICATION OF CANDIDATES .. 25. USE OF APPROVED LISTS OF 30. TECHNICAL SPECIFICATIONS .. 32. REJECTION OF ALL BIDS, PROPOSALS AND QUOTATION .. 34. CORRUPT, FRAUDULENT, COLLUSIVE OR COERCIVE PRACTICES .. 35. 3 Procurement PLANNING .. 38. MANDATORY PREPARATION OF Procurement PLAN .. 38. 4 Procurement METHODS .. 41. CHOICE OF Procurement METHOD .. 41. NATIONAL OPEN BIDDING METHOD .. 49. RESTRICTED BIDDING METHOD .. 70. DIRECT Procurement 71. TWO-STAGE BIDDING METHOD .. 72. REQUEST FOR QUOTATIONS 73. PROCEDURE OF INTERNATIONAL Procurement .. 75. 77. 5 REQUEST FOR PROPOSALS (RFP) 79. CONDITIONS FOR USE OF REQUEST FOR PROPOSAL 79.

6 REQUEST FOR EXPRESSIONS OF 79. PREPARATION OF SHORT 80. PREPERATION OF REQUEST FOR PROPOSALS .. 81. REQUEST FOR PROPOSALS .. 83. SELECTION METHODS AND CONDITIONS FOR 85. QUALITY AND COST BASED SELECTION (QCBS): .. 86. QUALITY-BASED SELECTION (QBS).. 89. SELECTION UNDER A FIXED BUDGET (FBS).. 89. SELECTION BASED ON CONSULTANTS QUALIFICATIONS (CQS): .. 90. SELECTION BASED ON LEAST 91. EVALUATION OF 91. NEGOTIATION AND CONTRACT AWARD FOR PROPOSALS .. 94. Public Procurement and Property Administration Agency Public Procurement Manual i OTHER SERVICES .. 96. TYPES OF CONTRACTS FOR CONSULTANCY SERVICES .. 96. 6 COMPLAINT REVIEW PROCEDURE .. 98. RIGHT TO COMPLAIN .. 98. PROCEDURE FOR SUBMISSION OF COMPLAINT FOR REVIEW .. 98. 7 Procurement AUDIT .. 107. MANDATE FOR Procurement 107. 8 CONTRACT MANAGEMENT, DELIVERY AND PAYMENT.

7 108. CONTRACT 108. CONTRACT EFFECTIVENESS .. 109. CONTRACT SUPERVISION AND ADMINISTRATION 109. PRE-SHIPMENT INSPECTION OF GOODS .. 110. PRE-SHIPMENT INSPECTION ACTION: .. 110. COLLECTING GOODS FROM THE PORT OF ENTRY .. 111. BEFORE ACCEPTING THE CONSIGNMENT: .. 111. RECEIPT AND INSPECTION OF GOODS .. 111. DELIVERY OF GOODS .. 111. INSPECTION OF GOODS .. 112. ISSUES TO THE USER DEPARTMENT BY 112. PAYMENT FOR GOODS .. 113. PAYMENTS BY LETTER OF CREDIT .. 114. CONTRACT SUPERVISION AND ADMINISTRATION - WORKS .. 115. CONTRACT SUPERVISION .. 115. PAYMENT FOR WORKS .. 116. ACTION BY THE SUPERVISING TECHNICAL DEPARTMENT: .. 116. ACTION BY THE Procurement UNIT:.. 117. CONTRACT SUPERVISION AND ADMINISTRATION SERVICES .. 117. PAYMENT FOR SERVICES .. 118. ACTION BY THE Procurement UNIT (OR PROJECT MANAGER): .. 118.

8 ACTION BY THE Procurement UNIT:.. 119. PROMPT PAYMENTS .. 119. CONTRACT PERFORMANCE MONITORING OBLIGATIONS .. 119. MONITORING AND PERFORMING THE Public BODY'S 120. DELAYS IN 120. RESOLUTION OF DISPUTES .. 121. TERMINATION OF THE 121. CONTRACT AMENDMENT .. 122. Public Procurement and Property Administration Agency Public Procurement Manual ii APENDIXES. 1 APPENDIX 1: SCHEDULE OF TIMES AND VALUES CURRENTLY IN FORCE. IN THE PROCLAMATION OR 123. 2 APPENDIX 2: COMMUNICATIONS AND RECORDS 129. 129. DOCUMENTATION/RECORDS 129. SUGGESTED Procurement NUMBERING SYSTEM .. 131. 3 APPENDIX 3: Procurement PLANNING AND BUDGETING .. 133. Procurement PLANNING .. 133. THE BUDGET PREPARATION PROCESS .. 133. Procurement ENDORSING COMMITTEE 133. Procurement UNIT ACTIONS .. 134. STORES DEPARTMENTS 135. DUTIES OF HEADS OF Public BODIES, UNITS, AND PROJECTS.

9 135. 4 APPENDIX 4: SAMPLE PROJECT Procurement PLAN .. 137. 137. GOODS, WORKS AND NON-CONSULTING SERVICES .. 137. SELECTION OF 138. CAPACITY BUILDING ACTIVITIES WITH TIME 138. 5 APPENDIX 5: RESPONSIBILITIES OF THE Procurement ENDORSING. 139. CHAIRPERSON OF A Procurement ENDORSING COMMITTEE .. 139. SECRETARY OF THE Procurement ENDORSING COMMITTEE .. 139. PROCEDURE OF 139. 6 APPENDIX 6: ETHICS IN Public 140. PROFESSIONAL ETHICS EXPECTED OF PERSONS ENGAGED IN Public . Procurement - DIRECTIVE ART 34 .. 140. ETHICS EXPECTED FROM CANDIDATES - DIRECTIVE ART 142. 7 APPENDIX 7: SPECIALIZED Procurement .. 143. 1 Procurement OF TEXTBOOKS AND MANUSCRIPTS .. 143. 143. DEFINING THE SCOPE OF SERVICES REQUIRED OF 143. EVALUATION AND QUALIFICATION CRITERIA .. 144. EVALUATION OF QUALITY EVALUATION FACTORS .. 145. EVALUATION OF COST EVALUATION FACTORS.

10 146. THE EVALUATED BID SCORE .. 148. TECHNICAL/QUALITY EVALUATION .. 148. EVALUATION OF MULTIPLE LOTS .. 149. EVALUATION OF DOMESTIC 150. POST-QUALIFICATION CRITERIA .. 151. 2 Procurement OF INFORMATION SYSTEMS .. 154. 154. BACKGROUND .. 154. Procurement PLANNING AND 155. Procurement OF INFORMATION SYSTEM SOFTWARE .. 157. SUPPLY AND INSTALLATION OF INFORMATION SYSTEMS .. 157. Public Procurement and Property Administration Agency Public Procurement Manual iii SINGLE-STAGE PROCESSING .. 157. SUGGESTED STRUCTURE OF AN OUTPUT BASED SPECIFICATIONS .. 158. SAMPLES OF TECHNICAL SPECIFICATIONS FOR 163. PC TECHNICAL SPECIFICATIONS .. 164. SERVER TECHNICAL 165. PRINTER TECHNICAL 167. SCANNER TECHNICAL SPECIFICATIONS .. 167. CAMERA TECHNICAL SPECIFICATIONS .. 168. CAMERA TECHNICAL SPECIFICATIONS - SOFTWARE.