FEDERAL PUBLIC PROCUREMENT DIRECTIVE

1 1 FEDERAL PUBLIC PROCUREMENT DIRECTIVE MINISTRY OF FINANCE & ECONOMIC DEVELOPMENT JUNE/2010 2 TABLE OF CONTANTS ARTICLE TITLE PAGE Part I Short Scope of 1 1. 1 2. 1 3. 2 4. 2 Part II Duties & 3 5. Duties and Responsibilities of heads of PUBLIC bodies 3 6.. a PROCUREMENT 7 7.. Endorsing 11 Part III PROCUREMENT 13 8. Preparation of PROCUREMENT 13 9. Identification and Packaging of 13 10. Selection of PROCUREMENT 15 11. Setting time table for PROCUREMENT .. 15 12. Content of a PROCUREMENT Plan .. 16 13. Approval and amendment of PROCUREMENT plan .. 17 14. Publication of annual PROCUREMENT 18 Part IV PROCUREMENT methods and their application.

2 18 15. Approved methods of 18 16. Procedure of National Competitive 19 Part V Procedure of International 63 17. International Competitive 63 18. Other International PROCUREMENT 65 19. PROCUREMENT by means of two stage bidding pre-qualification 66 20. Pre-qualification 21. PROCUREMENT made by means of request for 22. Invitation for Expression of Interest .. 76 23. PROCUREMENT by Restricted 77 24. PROCUREMENT by request for 25. Single Source PROCUREMENT ..82 Part VI Special 26. Special Large PROCUREMENT .. 87 27. Special Procurements of Common user 87 Part VII Contract 95 28. Implementing PROCUREMENT 95 29. Follow up of Performance of 97 30. Completion of a 99 3 Part VIII Miscellaneous 31. Review of Non-Standard PROCUREMENT 32.

3 Records of 33. Registration of suppliers and conditions for registration in the suppliers list 100 Part IX Ethics in PUBLIC 102 34. Professional Ethics expected of persons engaged in PUBLIC PROCUREMENT .. 102 35. Ethics Expected from 105 Part X The Board for review and resolution of complaints in PUBLIC PROCUREMENT 106 36. Appointment and terms of office of members of the 106 37. Meeting of the 107 38. Resignation of member 107 39. Termination of .. 107 40. Disclosing Conflict of 107 41. Powers of the 108 42. Duties of the 109 Part XI Procedure of Review of complaints Presented to the head of a PUBLIC body or the secretariat of the 110 43. The right of complaint of a candidate or a bidder.

4 110 44. Matters in respect of which complaint may not be 110 45. Procedures for review of complaints presented to the head of a PUBLIC 111 46. The obligation of a PROCUREMENT unit to suspend a PROCUREMENT 47. Procedure for presentation to and review of complaints by the 113 Part XII Review of reports submitted by PUBLIC bodies to the Agency on mis-conduct of bidders and 115 48. Procedures of submission and review of reports on mis-conduct of bidders and supplier 115 49. Force 119 50. Review of complaint by Part XIII Repealed Directives and Effective Date 120 51. Repealed 52. Effective 120 Annexes PUBLIC Annual PUBLIC PROCUREMENT Plan Submission Form The primary responsibilities of a chair person and a secretary of a PROCUREMENT endorsing committee. Floating Period of Bids List of Machinery to be procured for use in the Construction of Roads and buildings with Advance Payment allowed for contractors pursuant to Article of this DIRECTIVE Bid security form to be filled by bidders pursuant to article of this DIRECTIVE .

5 1 PUBLIC PROCUREMENT DIRECTIVE This DIRECTIVE is issued by the Ministry of Finance and Economic Development Pursuant to Article 78/2 of the Ethiopian FEDERAL Government PROCUREMENT and Property Administration Proclamation no 649/2009 and Article 19 of the definition of powers and duties of the Executive Organs of the FEDERAL Government of Ethiopia Proclamation No 471/2005/6 (as amended). PART I GENERAL 1. Short Title This DIRECTIVE may be cited as The FEDERAL Government PUBLIC PROCUREMENT DIRECTIVE . 2. Definitions 1. Unless the context otherwise requires, in this DIRECTIVE :- a) Technical Specification means document describing the quality, type and standard with which the required goods, services, works or consultancy services should comply. b) Proclamation means the Ethiopian FEDERAL Government PROCUREMENT and Property Administration Proclamation No.

6 649/2009. c) Bid means a stage in the PROCUREMENT process extending from advertisement of or invitation to bid up to signing of contract. 2 d) Standard Bidding Document means the document prepared by the Agency to serve as a point of reference in the preparation of bidding documents by PUBLIC Bodies. e) PROCUREMENT Unit means a body responsible for PROCUREMENT with in PUBLIC bodies with out prejudice to the particular organizational structure appropriate to the nature of their duties f) Total Price means payment made by PUBLIC bodies in respect of a particular PROCUREMENT which includes taxes and all other incidental costs. 2. Other words and terms in this DIRECTIVE shall have the respective meaning given to them in the Ethiopian FEDERAL Government PROCUREMENT and Property Administration Proclamation No.

7 649/2009 3. Scope of Application This DIRECTIVE shall apply to all FEDERAL PUBLIC Procurements to which the Proclamation is applicable. 4. Principles Any Authority and execution of PROCUREMENT must comply with the following Principles:- a) Achieve maximum value for money in PROCUREMENT . insure economy, efficiency and effectiveness. b) No Candidate Shall be discriminated or excluded from participating in PUBLIC PROCUREMENT on the ground of nationality or other reasons which are not related to the evaluation criteria except in accordance with the rule of preference provided in the proclamation. 3 c) Support the country s economic development by ensuring economy, efficiency and effectiveness in the execution of PUBLIC PROCUREMENT . d) Any criteria applied in making PROCUREMENT decisions and decisions taken on each PROCUREMENT must be made transparent to all concerned parties.

8 E) Ensure accountability for decisions made and measures taken in the execution of PUBLIC PROCUREMENT . f) Encourage local producers, companies and small and micro-enterprises which support the national economy through the application of preferential treatment granted by the Proclamation and this DIRECTIVE . PART II Duties & Responsibilities 5. Duties and Responsibilities of heads of PUBLIC bodies, Without prejudice to those provided in the Proclamation, a head of a PUBLIC Body shall have the following additional duties and responsibilities:- 1. Ensure that the PROCUREMENT staff and head of the PROCUREMENT unit of the PUBLIC Body have the required educational qualification and experience in the fields relevant to PUBLIC PROCUREMENT . 2. Ensure that the PROCUREMENT staff and head of the PROCUREMENT unit meet high ethical standards.

9 3. Ensure that the unit responsible for PROCUREMENT in the PUBLIC Body has the necessary authority and internal system in place to enable it discharges its duties as a team. 4 4. Establish a PROCUREMENT Endorsing Committee to approve procurements of high value in the PUBLIC Body, consisting of members no less than 3 persons which serves for a maximum period of 3 years in accordance with the following criteria:- a) Officials, who are in high position of responsibility in the PUBLIC Body. b) Need to have a better knowledge and experience and as far as possible should comprise from various professions. 5. Where appropriate, extend the service of members of the PROCUREMENT Endorsing Committee for one additional term. 6. Ensure that members of the PROCUREMENT Endorsing Committee have adequate time and office facility necessary to carry out their duty.

10 7. Ensure that the service, employees of the PUBLIC Body perform as members of the PROCUREMENT Endorsing Committee, is part of their regular duty and is as such, incorporated into their work program and their performance in the committee accounts for their overall result. 8. Make sure that the PROCUREMENT staff, head of the PROCUREMENT unit and members of the PROCUREMENT Endorsing Committee have in their possession, copies of the PROCUREMENT and property administration Proclamation, this DIRECTIVE , the Standard Bidding Document and other necessary documents, and make training available to them in ordered to enable them acquire adequate knowledge of the PUBLIC PROCUREMENT system. 9. Follow up the activities of the PROCUREMENT unit and the PROCUREMENT Endorsing Committee to make sure that the PROCUREMENT staff and members of the PROCUREMENT Endorsing Committee give due attention in carrying out their duty properly, and where necessary, take corrective measures.