the ethiopian federal govt procurement and property administ
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CONTENTS
Proclamation No. 649/2009
The Ethiopian Federal Government Procurement andProperty Administration Proclamation Page 4858
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17/ Special Procurement mean a procurement
of sizable volume carried out in bulk by adecision of the Minister on account of the
national significance of that procurement orto fulfill similar requirements of various
public bodies or requirements of a public
body within a given period of time;
18/ Framework Contract mean a general agreementof procurement establishing unit price and otherterms and conditions of contract which serves as a
basis for supplies to be delivered under futurespecific contract;
19/ Framework Contract Supplier mean a
supplier who has entered in to a contractual
obligation to supply goods or services under
a framework contract;
20/ Board mean an entity established under
this Proclamation to review and decide on
complaints from candidates in regard to the
conduct of procurements and disposal of
property of the Federal Government;
21/ Public Property mean any property of the
Federal Government other than public fund
and land;
22/ Custodial Responsibility mean theresponsibility conferred on a civil servant by
the head of a public body or by a person
delegated by him to protect and maintain
public property until it is disposed or written
off, or transferred to the custody of anothercivil servant or public body;
23/ Fixed Asset mean tangible asset the value
of which is determined by a directive to beissued by the Minister, that is in operational
use and that has a useful economic life of
more than one year, such as furniture,
computers, heavy equipment, vehicles, ships
and aircraft, buildings, roads, sewers,
bridges, irrigation systems, dam and the like;
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4/ accountability for decisions made and
measures taken with regard to public
procurement and property administration;
5/ careful handling and proper use of publicproperty.
6. International Obligations
1/ To the extent that this Proclamation conflicts
with an obligation of the Federal Government
under or arising out of an agreement with one
or more other states or with an international
organization, the provisions of thatagreement shall prevail.
2/ Where an agreement referred to in sub-article(1) of this Article contains a preference orpreferences in favour of national and resident
bidders, the public body shall ensure that the
applicable preference or preferences are
clearly stated in the bidding documents.
7. Public Accessibility of Legal Texts
This Proclamation and the procurement and
property directives to be issued by the Minister as
well as other documents pertaining to publicprocurement and property administration shall be
promptly made accessible to the public and
systematically maintained.
8. Responsibilities of Heads of Public BodiesPublic bodies shall have overall responsibility for
procurements they carry out and the property they
administer. In particular, the head of a public
body shall apart from those specified in the
directives to be issued by the Minister, have the
following responsibilities:
a) cause to be established an adequately staffedunit for procurement and propertyadministration;
b) setup a procurement endorsing committeewhich approves procurements of highervalue; it may also setup ad hoc evaluationcommittee for complex procurement;
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b) with an intention to mislead a procurementproceeding not to present a falsifieddocument or not to withhold information
he/she should have disclosed;
c) not to connive with another candidate in
an act of false competition in order toget unfair advantages;
d) to report to the law enforcement agencies
any intended or completed action of
corruption which he came to knowduring the procurementproceedings and
contribute to the effort to fight
corruption and malpractice.
33. Methods of Procurement
1) The following methods shall be used in
public procurement:
a) Open Bidding;
b) Request for Proposals;
c) Two stage Tendering;
d) Restricted Tendering;
e) Request for Quotation;
f) Direct Procurement.
2) Except as otherwise provided in this
Proclamation, public bodies shall use open
bidding as the preferred procedure of
procurement.
3) Public bodies may use a method other than
open bidding only where conditions for use
of such other method stipulated under this
Proclamation are satisfied.
4) Public bodies shall not split procurement
requirements for a given quantity of goods,
works or services with the intention of
avoiding the preferred procurement
procedure stated under this Proclamation or
in the procurement directive.
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5) Any public body shall not award a contract
when:
a) the bidder has failed to demonstrate, inthe manner provided in Article 28(1) of
this Proclamation, that it is qualified;
b) the bidder does not accept a correction
of an arithmetical error made pursuant to
sub-article (2) of this Article;
c) the bid is not responsive.
6) In the process of selecting the successful
bidder, the public body shall only consider
substantially responsive bids for further
evaluation and comparison, as defined in sub-
article (8) of this Article in accordance with
the criteria set forth in the bidding
documents. No criterion shall be used that
has not been set forth in the biddingdocuments.
7) No bidder may be required to change the
price offered in his bid or otherwise modify
his proposal or to assume obligation to do so
except as set forth in the bidding document.
8) The successful bid shall be:
a) the bid that is found to be responsive to
the technical requirements and with thelowest evaluated price;
b) if the public body has so stipulated in the
bidding documents, the bid offering
better economic advantage ascertained
on the basis of factors affecting the
economic value of the bid which have
been specified in the bidding documents,
which factors shall, to the extent
practicable, be objective andquantifiable, and shall be given a relativeweight in the evaluation procedure or be
expressed in monetary terms whereverpracticable;
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3) The contract shall not be signed by the publicbody prior to the receipt of the notice by the
unsuccessful bidder and before the periodspecified in the directive to be issued by the
Minister has lapsed.
4) The procedures that public body has to followin administering the contract shall beprescribed by a directive to be issued by the
Minister.
47. Contract Security
A supplier shall provide the public body with a
contract security to make good any damage the
public body may sustain as a result of default bythe supplier under the contract. The type of
procurement for which contract security is
required and the type and amount of contract
security shall be determined by a directive to be
issued by the Minister.
48. Advance Payment
1) The amount of advance payment that may beallowed to suppliers in public procurement
and the manner in which it is made availableshall be determined by the directive to be
issued by the Minister.
2) Advance payment may be effected only where
a supplier furnishes advance payment
guarantee in an amount equal to the advancepayment.
CHAPTER FIVE
RESTRICTED TENDERING
49. Conditions for use of Restricted Tendering
Public bodies may use restricted tendering as a
method of procurement only where the following
conditions are satisfied:
1) it is a ascertained that the required object ofprocurement is available only with limitedsuppliers;
2) the cost of procurement does not exceed thethreshold specified in respect of restricted
tendering in the directive to be issued by the
Minister; or
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4) In formulating the revised specification in
accordance with sub article (3) of this
Article, the public body may delete or modifyany aspect, originally set forth in the
solicitation documents of the technical orquality characteristics of the goods, works
or services to be procured and any criterion
originally set forth in those documents forevaluating and comparing bids and for
ascertaining the successful bids and may add
new characteristics or criteria that conform
with this Proclamation. Any such deletion,
modification or addition shall be
communicated to suppliers in the invitationto submit final bids.
5) A supplier not wishing to participate in thesecond stage of tendering in accordance with
the reformulated specification may withdraw
from the proceeding.
6) The public body shall evaluate the bids
submitted at the second stage to ascertain the
successful bidder pursuant to the provisions
of Article 43 of this Proclamation.
7) The public body may engage in negotiation
with the first ranking bidder concerning any
aspect of its bid, except price.
CHAPTER TENINTERNATIONAL COMPETITIVE BIDDING
59. Open International Bidding
1) Open international bidding shall be usedwhenever in national open bidding an
effective competition cannot be obtained
unless foreign firms are invited to bid or for
procurements above a threshold level for
national bidding to be determined by a
directive to be issued by the Minister
2) A procurement may be effected by means ofnational competitive bidding notwithstanding thatthe cost of the procurement exceeds the thresholdestablished in the directive for national bidding ifit is ascertained that the required object ofprocurement is available only locally.
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2) The Agency shall account for, administer and
where necessary, dispose off property of the
Federal Government which are notadministered by any other public body.
64. Use and Maintenance
1) Heads of public bodies shall ensure that all
public property is used as productively as
possible in carrying out of the responsibilities
of the public bodies.
2) Heads of public bodies shall establish a
proper maintenance system for all publicproperty to ensure that it will operate as
economically and effectively as possible in
accordance with the directive to be issued by
the Minister.
65. Management of Public Property
1) The heads of public bodies shall adopt a life-
time approach to the management of publicproperty.
2) Heads of public bodies shall ensure that
items of public property are recorded as to
date, description, quantity and cost from
acquisition to the end of their life-time.
3) Heads of public bodies shall ensure that the
custodial responsibility for each fixed assetacquired is assigned primarily to persons
using such fixed assets and that names of thecustodians, and the locations of the fixed
assets under their custody are recorded in the
register of fixed assets.
4) Heads of public bodies, shall ensure that
supplies, not acquired for immediate
consumption, shall form part of supplyinventories and that custodial responsibilitybe assigned for such inventories.
5) All inventories of public property shall be
physically verified against records at least
annually.
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6) Where the actual cost of public property is
not determinable, its cost shall be estimated
in accordance with the directive to be issuedby the Minister.
7) Depreciation shall be calculated on fixed
assets in accordance with the directive to be
issued by the Minister.
66. Protection and Preservation
The heads and all employees of public bodies are
responsible for the protection and preservation ofpublic property.
67. Disposal
1) Heads of public bodies shall ensure that fixed
assets which are not useful to the
organization are disposed off in the manner
to be prescribed in the directive to be issued
by the Minister.
2) The description and amount received from all
public property disposed off shall be includedin the public accounts.
3) Without prejudice to the provisions of the
directive to be issued by the Minister,
concerning the matter, proceeds from the
disposal of public property shall be deposited
into the account of the central treasury.
68. Deletion
1) Where public property is considered to be ofno use in the public body or elsewhere, and
has no- scrap value, it shall be deleted inaccordance with the directive to be issued by
the Minister.
2) Deletion of public property shall be recorded
when losses take place from inventory
shortages, destruction, theft or any other
reason.
3) The description and book value of all public
property deleted shall be included in thepublic accounts in accordance with thedirectives to be issued by the Minister.
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2) No complaint may be lodged in accordance
with sub- article (1) of this Article in respect
of the following matters:
a) the selection of procurement methodpursuant to this Proclamation;
b) the rejection of bids, proposals orquotations pursuant to Article 30 of this
Proclamation;
c) the selection of method of propertydisposal;
d) the handling and usage of publicproperty.
3) Complaints against an act or omission of a
public body pertaining to a proceedingleading to an award may not be brought
before the head of that public body or theBoard after the contract has been signed with
the successful bidder.
4) The provision of sub- article (3) of this Article
shall apply where the following conditions
are satisfied:
a) where the contract has been signed
without a complaint being filed with the
public body within the time limitprescribed in the directive;
b) where the public body responds to thecomplaint lodged and a contract is
signed because of the expiration of the
time limit for the signing of contract
after the award without the candidatepursuing its complaint further.
5) The procedure to be followed in resolvingcomplaints brought in regard to public
procurement and property disposal shall be
determined in accordance with the directive
to be issued by the Minister.
74. Review of Complaints by the Head of the Public
Body
1) A complaint against an act or omission by
the public body shall in the first instance,
be submitted to the head of the publicbody.
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2) A candidate shall have to submit the
complaint within five working days
from the date he knew or should haveknown the circumstances giving rise to the
complaint.
3) Unless the complaint is resolved by mutual
agreement, the head of the public body shallsuspend the procurement or property disposal
proceedings and shall, within 10 days after
submission of the complaint, issue a written
decision, stating the reasons, and, if the
complaint is upheld, indicating the corrective
measures to be taken.
4) If the head of the public body does notissue a decision within the time stated in
sub-article (3) of this Article, or if the
candidate is not satisfied with the decision
of the head of the public body the
candidate is entitled to submit a complaint
to the Board within five working days from
the date on which the decision has been or
should have been communicated to the
candidate by the public body.
75. Reviews by the Board
1) Upon receipt of a complaint, the Board shall
promptly give notice of the complaint to the
public body concerned. Such action
automatically suspends further action by the
public body until the Board has settled the
matter.
2) The Board, unless it dismisses the complaint,may:
a) prohibit the public body from acting or
deciding unlawfully;
b) order the public body to proceed in a
manner conforming to this Proclamation
other than a decision to award orconclude a contract;
c) annul in whole or in part, an unlawful actor decision by the public body.
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3) The Board shall, before taking any decisionregarding a complaint, notify relevant bodies
of the complaint and shall take into accountinformation and arguments received from
such bodies and from the public body.
4) The Board shall issue its decision within 15
working days of receiving the complaint,stating the reasons for its decision and
remedies granted, if any.
76. Review by the Agency
1) Where a public body believes that anunlawful act or an act prejudicial to its
legitimate interest has been committed bycandidates, suppliers or by buyers of
disposed property, it shall without prejudice
to the measures it is entitled to take against
such persons in accordance with the bidding
document or the contract, notify the matter in
writing to the Agency.
2) Upon receipt of the complaint the Agencyshall send a written notice of the complaintand the content of such complaint to the
candidate, the supplier or the buyer ofdisposed property against whom the
complaint has been lodged.
3) Where the Agency finds it appropriate to theresolution of the complaint it may require
persons concerned with the matter to appear
in person and give evidence or seekprofessional assistance from any appropriate
body.
4) The Agency shall review and give decisionon the complaint within 15 working days ofreceipt of such complaint.
5) The decision to be rendered by the Agency inaccordance with sub-article (4) of this Article
may be one of the following:
a) suspend for a definite or indefiniteperiod the candidate, supplier or buyer ofdisposed property which it finds to be at
fault from participation in any publicprocurement or property disposal;
b) give a written warning;
c) dismiss the complaint.
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6) The Minister shall establish by a directive the
procedure the Agency follows in reviewing
and deciding complaints submitted to it inaccordance with this Article.
CHAPTER FIFTEEN
MISCELLANEOUS PROVISIONS
77. Offences and Punishment
1) Every person appointed to or employed by apublic body in carrying out the provisions of
this Proclamation who:
a) receives any payment for the
performance of his official duty, except
as provided by law;
b) who defrauds a public body, conspires orcolludes with any person to defraud thepublic body or provides an opportunity forany person to defraud the public body in
regard to a public procurement or property
disposal proceeding;
c) contravenes or intentionally permits any
contravention of this Proclamation;
d) willfully makes or signs any false entry
in any document or willfully makes or
signs false certificates;
is liable on conviction to a fine not less thanBirr 25,000 and not more than 35,000 and to
a rigorous imprisonment for a term of not
less than 10 years and not more than 15
years.
2) A procurement and property administration
officer employed in carrying out theprovisions of this Proclamation, except such
information required by this Proclamation to
be official, who:
a) discloses to any person or that persons
representative, any matter in respect ofanother person, that, may, in the exercise ofthe procurement officers powers or the
performance of the procurement officersduties come to the procurement officersknowledge;
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b) permits any other person to have access
to records in the possession or custody of
the public body, except in the exercise ofthe procurement officers powers or the
performance of the procurement officersduties under this Proclamation or by
order of a court or any competent body;
commits an offence and is liable onconviction to a fine of not less than Birr
10,000 and to imprisonment for a term of not
less than 2 years and not more than 5 years.
3) Every person appointed to or employed by apublic body in carrying out the provisions of
this Proclamation who:
a) directly or indirectly asks for or receives
in connection with any of his duties, apayment or gift, whether pecuniary or
otherwise, or promise or security for that
payment or reward; or
b) enters into or acquiesces in an agreement
to do or to abstain from doing, permit,
conceal, or connive at any act or thing
whereby the procurement or propertydisposal is or may be defrauded or which
is contrary to the provisions of thisProclamation or to the proper execution
of the procurement officers duty;
commits an offence and is liable on
conviction to a fine of not less than 50,000
Birr and to imprisonment for a term of notless than ten (10) years and not more than
twenty(20) years.
4). Every person who, promises, offers or gives
any bribe to any person appointed to oremployed in any public procurement and
property administration with intent:
a) to influence the decision or action of that
person on any question or matter that ispending, or may be brought before him
in his official capacity; or
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80. Effective Date
This Proclamation shall enter into force up on thedate of publication in the Federal Negarit Gazeta.
Done at Addis Ababa, this 9tht day of September, 2009
GIRMA WOLDEGIORGIS
PRESIDENT OF THE FEDERALDEMOCRATIC REPUBLIC OF ETHIOPIA
49)0