THE PUBLIC PROCUREMENT ACT

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

1. Short title and commencement

2. Interpretation
3. Application
4. Approval required for international agreements on procurement

PART II
THE ZAMBIA PUBLIC PROCUREMENT AUTHORITY

5. Continuation and renaming of Zambia National Tender Board

6. Powers and functions of Authority
7. Director-General of Authority
8. Secretary and other staff
9. Inspectorate unit
10. Co-operation with other authorities

PART III
PROCURING ENTITIES
11. Composition of procuring entities
12. Functions of procuring entities
13. Duties of Controlling Officer and chief executive officer
14. Establishment of Procurement Committees
15. Powers and functions of Procurement Committee
16. Composition of Procurement Committees
17. Tenure of office of Procurement Committee
18. Proceedings of Procurement Committee
19. Subcommittees of Procurement Committee
20. Establishment of Procurement Units
21. Functions of user departments
22. Procurement authorisation and levels of authority
23. Procurement of common use items
24. Use of procurement agent or procurement service provider

PART IV
METHODS OF PROCUREMENT

25. Open bidding

26. National and international bidding
27. Open selection
28. National and international selection
29. Limited bidding
30. Limited selection
31. Simplified bidding
32. Direct bidding
33. Force account
34. Purchases from other procuring entities
35. Procurement of infrastructure for private financing and award of
concessions
36. Community participation in procurement

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 PART V
GENERAL PROCUREMENT RULES
37. Participation and non-discrimination
38. Records of procurement
39. Communications
40. Confidentiality

PART VI
PROCUREMENT PROCESS

41. Initiation of procurement requirements

42. Procurement planning
43 Choice of procurement method
44. Statement of procurement requirements
45. Solicitation documents
46. Selection of bidders
47. Invitation of bids
48. Receipt of bids
49. Opening of bids
50. Evaluation
51. Negotiations
52. Decision to award contract
53. Publication of best evaluated bidder
54. Award of contract
55. Contract
56. Information of unsuccessful bidder
57. Contract management
58. Amendment of contract

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59. Deviations
60. Accreditation of alternative procurement system

PART VII
BIDDERS AND SUPPLIERS
61. Eligibility of bidders
62. Qualification of bidders
63. Preference and reservation
64. Supplier databases or lists
65. Suspension
66. Grounds for suspension
67. Permanent bar of bidder or supplier
68. Inducement by bidder or supplier
69. Appeal against suspension

PART VIII
ARBITRATION

70. Review of decision by procuring entity

71. Dispute to be determined by arbitration

PART IX
GENERAL PROVISIONS

72. Code of conduct

73. Restriction on public officers
74. Conduct of bidder and supplier
75. Offences by public officers and other persons

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76. Responsibilities of Controlling Officers and chief executive officers
77. General penalty
78. Offences committed by body corporate or un-incorporate body
79. Compensation
80. Transfer of functions of procuring entity to other body
81. Circulars and publications
82. Regulations
83. Repeal of Cap 394
84. Savings and transitional provisions
FIRST SCHEDULE
SECOND SCHEDULE

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 ACT
ENTITLED

An Act to continue the existence of the Zambia

National Tender Board and rename it as the Zambia
Public Procurement Authority; revise the law relating
to procurement so as to ensure transparency and
accountability in public procurement; regulate and
control practices relating to public procurement in
order to promote the integrity of, fairness and public
confidence in, the procurement process; repeal and
replace the Zambia National Tender Board Act, 1982;
and provide for matters connected with or incidental
to the foregoing.

Enactment ENACTED by the Parliament of Zambia.

PART I
PRELIMINARY

Short title and 1. This Act may be cited as the Public

commencement
Procurement Act, 2008, and shall come into
operation on such date as the Minister may, by
statutory instrument, appoint.

Interpretation 2. In this Act, unless the context otherwise

requires -

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“approvals authority" means the body or
individual with authority to grant prior
authorisation of certain key steps in the
procurement process in accordance with
section twenty-two;
"Authority" means the Zambia Public
Procurement Authority referred to under
section five;
"best evaluated bidder" means the bidder
ranked as first, following the application
of the specified evaluation methodology
and criteria;
"bid" means an offer to provide goods, works or
services submitted by a bidder in
response to an invitation from a
procuring entity and includes a tender,
proposal, quotation and, where
applicable, an application to pre-qualify;
"bidder" means a person or group of persons
that offers to provide goods, works or
services in response to an invitation from
a procuring entity and includes, where
applicable, a potential bidder and
applicant to pre-qualify;
"Board" means the Board of Directors of the
Authority;
“Central Tender Committee” means the Central
Tender Committee established under

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 paragraph 2 of the Second Schedule;
"chief executive officer" means the chief
executive officer of a parastatal,
statutory body or a local authority;
"citizen bidder or supplier" means a citizen-
empowerment company, citizen-
influenced company or citizen-owned
company;
“citizen-empowered company” means a
company where twenty-five to fifty
percent of its equity is owned by citizens,
and is licenced to undertake business
activities in Zambia;
“citizen-influenced company” means a company
where five to twenty-five percent of its
equity is owned by citizens and in which
citizens have significant control of the
management of the company, and is
licensed to undertake business in
Zambia;
“citizen-owned company” means a company
where at least fifty point one percent of
its equity is owned by citizens and in
which the citizens have significant
control of the management of the
company, and is licensed to undertake
business in Zambia;
"close relative" means a spouse, child, sibling,

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 uncle, cousin, aunt, niece, nephew,
parent or a child of a spouse, child,
sibling or parent;
"coercive practices" means harming or
threatening to harm, directly or
indirectly, a person, or a person’s
property, to influence that person’s
participation in a procurement process
or affect the execution of a contract;
"collusive practices" means a scheme or
arrangement between two or more
bidders, with or without the knowledge of
the procuring entity, designed to
establish bid prices at artificial,
non-competitive levels;
"consulting services" means services of an
intellectual or advisory nature, the
delivery of reports, drawings or designs
including engineering d e s i gns,
supervision, accountancy, auditing,
financial services, procurement services,
training and capacity building services,
management advice, policy studies and
advice, assistance with institutional
reforms and software development;
"contract" means an agreement between a
procuring entity and a supplier for the
provision of goods, works or services;

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 "Controlling Officer" has the meaning assigned
Act No. 15 of 2004 to it in the Public Finance Act, 2004;
"corrupt practice" means the offering, giving,
receiving or soliciting, directly or
indirectly, of anything of value to
influence the action of a public officer in
the procurement process or in contract
execution;
“direct bidding” means a procurement method
where a bid is obtained directly from a
single bidder, without competition;
“Director-General” means the person appointed
as such under section seven;
“due diligence” means the assessment of a
bidder or supplier’s technical, financial
and management capabilities and the
bidder’s or supplier’s governance record
to effectively execute a contract;
“e procurement” means the process of
procurement using the internet or other
information and communication
technologies;
"foreign bidder or supplier" means a bidder or
supplier who is not licensed to undertake
business activities in Zambia;
"fraudulent practice" means a
misrepresentation or omission of facts in
order to influence a procurement process

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 or the execution of a contract;
"goods" means objects of every kind and
description including raw materials,
products, equipment, objects in solid,
liquid or gaseous form, electricity, and
works and services incidental to the
supply of the goods if the value of those
incidental works and services does not
exceed that of the goods themselves;
"Government agency" has the meaning
Act No. 15 of 2004 assigned to it in the Public Finance Act,
2004;
"interim period" means the period referred to in
the Second Schedule during which the
provisions of that Schedule shall apply;
“international competitive bidding” means
bidding open to all bidders, including
citizens, local and foreign bidders;
“legal practitioner” has the meaning assigned
Cap. 30
to it in the Legal Practitioners Act;
“limited bidding” means a procurement method
for goods, works and non-consulting
services where bids are obtained by
direct invitation to a shortlist of bidders,
without open advertisement;
“limited selection” means a procurement
method for consulting services where
bids are obtained by direct invitation to

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 a shortlist of bidders, without open
advertisement;
"local authority" means a city, municipal or
district council established under the
Cap. 281 Local Government Act;
"local bidder or supplier" means a bidder or
supplier who is licensed to undertake
business activities in Zambia, but who is
not a citizen supplier;
“national competitive bidding” means bidding
which is limited to citizen and local
bidders;
"non-consulting services" means services other
than consulting services, for the carrying
out of work of any kind, with or without
the use of vehicles, machinery or
equipment or the provision of operators,
technicians or drivers;
“open bidding” means a procurement method
for goods, works and non-consulting
services which is open to participation on
equal terms by all eligible bidders
through advertisem e n t of the
opportunity;
“open selection” means the procurement
method for consulting services which is
open to applications for short-listing on
equal terms by all bidders through

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 advertisement of the opportunity;
"parastatal body" means a statutory
corporation or body, a local authority or
a company in which the Government has
a majority or controlling interest;
"procurement" means acquisition by purchase,
rental, lease, hire purchase, licence,
tenancy, franchise or any combination
thereof;
"Procurement Committee" means the
Committee established under section
fourteen;
"Procurement Unit" means the division or
department in each procuring entity
responsible for the execution of the
procurement function;
"procuring entity" means a Government
agency, parastatal body or any other
body or unit established and mandated
by Government to carry out procurement
using public funds;
“post-qualification” means the conduct of due
diligence to determine whether the
bidder is qualified to perform the
contract effectively;
"public funds" has the meaning assigned to it
Act No. 15 of 2004 in the Public Finance Act, 2004;
“public office” includes an office the

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 emoluments of which are a charge on or
paid out of the revenues of the Republic;
"public officer" means a person holding or
acting in any public office;
“repealed Act” means the Zambia National
Cap. 394 Tender Board Act, 1982;
"services" means any object of procurement
other than goods or works, which involve
the furnishing of labour, time or effort;
“simplified bidding” means a procurement
method which compares quotations from
a number of bidders;
"solicitation document" means a bidding
document, a request for proposals,
request for quotation and, where
applicable, a pre-qualification document
or document of any kind issued by a
procuring entity, inviting bidders to
participate in procurement proceedings;
"supplier" means a contractor, consultant,
service provider or a natural person or
incorporated body that is party to a
contract with a procuring entity for the
provision of goods, works or services;
“Tribunal” means the Public Procurement
Tribunal established under section sixty-
nine;
"user department" means any department,

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 division, branch, section or project unit
of the procuring entity which initiates
procurement requirements and is, or
represents, the end user of the goods,
works or services; and
"works" means all work associated with the
construction, re-construction,
demolition, repair or renovation of a
building, road, structure or works, such
as site preparation, excavation, erection,
building, installation of equipment or
materials, decoration and finishing, as
well as services incidental to
construction such as drilling, mapping,
satellite p h o t o g r a p h y, seismic
investigations and similar services
provided pursuant to a contract, if the
value of those services does not exceed
that of the works themselves.

Application 3. (1) This Act applies to all procurement

carried out by procuring entities using public funds,
except as otherwise provided under subsection (2).
(2) A procuring entity may, where any
procurement involves or relates to the security,
defence or international relations of the Republic,
modify the application of the rules and procedures of
procurement set out in this Act only to the extent

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necessary to protect the public interest and in
accordance with such procedures as the Authority
may determine.
(3) Where a procuring entity undertakes any
procurement that is related to or involves the security,
defence or international relations of the Republic, the
procuring entity shall -
(a) agree with the Authority on the
type of goods, works or services to
be subject to modified rules and
procedures of procurement;
(b) agree with the Authority on the
modifications to be made to the
rules and procedures provided for
in this Act and to be applied to the
goods, works and services referred
to under paragraph (a); and
(c) apply the rules and procedures
provided for in this Act to the
procurement of goods, works and
services in a manner that is not
prejudicial to the security, defence
and international relations of the
Republic.
(4) The type of goods, works and services
subject to modified rules and procedures of
procurement and the modified rules and procedures
of procurement referred to in subsections (2) and (3)

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 shall be reviewed and updated by the procuring entity
and the Authority on an annual basis or as need
arises.
(5) Any procurement that is subject to the
modified rules and procedures of procurement under
subsection (2) shall be subject to classified audit.

Approval required for 4. (1) A procuring entity shall, before

international
agreements on entering into any international agreement relating to
procurement
procurement, obtain the approval of the Authority,
and the advice of the Attorney-General.
(2) Any agreement purportedly entered into
without the approval of the Attorney-General is void.

PART II
THE ZAMBIA PUBLIC PROCUREMENT
AUTHORITY

Continuation and 5. (1) The Zambia National Tender Board

renaming of Zambia
National Tender established under the repealed Act shall continue to
Board
Cap. 394 exist as if established under this Act and for purposes
of this Act is hereby re-named the Zambia Public
Procurement Authority.
(2) The Authority shall be a body corporate
with perpetual succession and a common seal,
capable of suing and of being sued in its corporate
name, and with power, subject to the provisions of
this Act, to do all such acts and things as a body

17
 corporate may, by law, do or perform.
(3) The provisions of the First Schedule apply
to the Authority.

Powers and functions 6. (1) The Authority shall be an

of Authority
independent regulatory body with responsibility for
policy, regulation, standard setting, compliance and
performance monitoring, professional development
and information management and dissemination in
the field of public procurement.
(2) Without prejudice to the generality of
subsection (1), the functions of the Authority are to -
(a) regulate the procurement of goods,
works and services by procuring
entities and ensure transparency
and accountability in public
procurement;
(b) monitor compliance with this Act
and the procurement performance
of the procuring entities and make
recommendations to the Minister
on the performance and
functioning of the public
procurement system;
(c) issue standard bidding documents
and other standard procurement
documents for use by procuring
entities;

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(d) ad v i s e t h e G o v ernment and
procuring entities on procurement
policy and other matters relating to
public procurement;
(e) consider applications for deviations
to public procurement processes,
methods and rules and for the
accreditation of alternative
procurement systems;
(f) commission and undertake
investigations in public
procurement matters and institute
procurement audits;
(g) promote economy, efficiency and
maximum competition to ensure
value for money in the use of
public funds;
(h) promote private sector
participation, through fair and
non-discriminatory treatment of
bidders;
(i) formulate preference and
reservation schemes to promote
the economic development of
citizen bidder and suppliers in
collaboration with the appropriate
Government institutions;
(j) maintain a register of bidders and

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 suppliers who are suspended from
participating in public
procurement;
(k) coordinate and promote
capacity-building and professional
development in the public
procurement system;
(l) organise and maintain systems for
the management of procurement
data, statistics and information
and for the publication of data
on public procurement
opportunities, contract awards and
other information of public interest;
and
(m) do all such other acts and things
as are incidental to the foregoing or
conducive to the attainment of the
objectives of the Authority.
(2) The Authority may-
(a) collect any data and report from
procuring entities for purposes of
this Act;
(b) access information, documents,
records and reports of a procuring
entity in respect of any public
procurement process;
(c) access, at any reasonable time, the

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 premises of any procuring entity
whose procurement is being
monitored and request for any
relevant information from any
person responsible for the financial
administration of the procuring
entity; and
(d) suspend any bidder or supplier
from participating in public
procurement in accordance with
the provisions of this Act.
(3) Subject to subsection (4), the authority
shall not access any information, document, record or
report, or enter upon any premises of the Zambia
Defence Force or the Zambia Security Intelligence
Service.
(4) The Authority may, where the
circumstances of a procurement audit so require, with
the written consent of the President, access any
information, document, record or report, or enter upon
any premises, of the Zambia Defence Force and the
Zambia Security Intelligence Service.

Director-General of 7. (1) The President shall appoint, on

Authority
such terms and conditions as the President may
determine, a Director-General who shall be the chief
executive officer of the Authority.
(2) The office of Director-General shall be an

21
 office in the public service.
(3) The Director-General shall attend all
meetings of the Board, and shall be entitled to
address such meetings, but shall not vote on any
matter under discussion:
Provided that the Board may, for good
cause, request the Director-General to
withdraw from any meeting of the Board.

Secretary and other 8. (1) There shall be a Secretary to the

staff
Board who shall be appointed by the Board on such
terms and conditions as the Board may determine.
(2) The Board may appoint, on such terms
and conditions as it may determine, such other staff
as it may consider necessary for the performance of
its functions under this Act.

Inspectorate unit 9. (1) In order to ensure due compliance

with the provisions of this Act, the Board shall
establish under the general supervision of the
Director-General an inspectorate unit which shall
monitor, in accordance with the rules or regulations
made under this Act, the procurement performance of
procurement entities.
(2) The Board may appoint such inspectors
and other staff to the inspectorate unit as may be
necessary for the performance of its functions under
this Act.

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Co-operation with 10. (1) The exercise by the Authority of its
other authorities
functions under this Act shall not affect in any
manner any functions exercised by other authorities
under any other written law.
(2) The Authority shall co-operate with other
organs exercising oversight functions over public
procurement in Zambia and may, for that purpose,
establish mechanisms for sharing information and
working jointly with those organs.
(3) A procuring entity and any person
involved in public procurement shall co-operate with
the Authority and any other authority exercising
monitoring and oversight functions over public
procurement.

PART III
PROCURING ENTITIES

Composition of 11. For the purposes of this Act, a procuring

procuring entities
entity shall consist of -
(a) a Controlling Officer;
(b) a Procurement Committee;
(c) a Procurement Unit; and
(d) user departments.

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Functions of 12. (1) A procuring entity shall be
procuring entities
responsible for the management of all procurement
activities within its jurisdiction in accordance with
this Act.
(2) Any functions related to procurement
shall be carried out only by persons qualified and
knowledgeable in procurement in accordance with the
Act No. 15 of 2003 Zambia Institute of Purchasing and Supply Act, 2003.
(3) A person who contravenes subsection (2)
commits an offence and is liable, upon conviction, to
a fine not exceeding two hundred thousand penalty
units or to imprisonment for a term not exceeding two
years, or to both.

Duties of Controlling 13. (1) A Controlling Officer or a chief

Officer and chief
executive officer executive officer, as the case may be, shall be
responsible and accountable for ensuring that all the
procurement of the procuring entity is conducted in
accordance with this Act.
(2) Without prejudice to the generality of
subsection (1), the functions of a Controlling Officer
and a chief executive officer are to -
(a) appoint the members of a
Procurement Committee;
(b) act as chairperson of the
Procurement Committee;
(c) certify the availability of funds,

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 prior to the commencement of any
procurement activity or designate
an officer or officers to whom this
function shall be delegated;
(d) authorise contract awards which
fall within their level of authority;
(e) authorise contract documents;
(f) submit such reports as are
required by the Authority for
purposes of this Act; and
(g) investigate complaints by bidders
in accordance with this Act.

Establishment of 14. There shall be established in every

Procurement
Committees procuring entity a Procurement Committee.

Powers and functions 15. (1) A Procurement Committee shall

of Procurement
Committee ensure that all procurement of the procuring entity is
conducted in accordance with the provisions of this
Act.
(2) A Procurement Committee shall be the
highest approvals authority for the procuring entity,
and shall be responsible for providing prior
authorisation of the procurement process in
accordance with the procedure specified in section
twenty-two.
(3) Subject to paragraph 7 of the Second
Schedule, a Procurement Committee shall have an

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 unlimited level of authority.

Composition of 16. (1) A Procurement Committee shall

Procurement
Committees consist of -
(a) a Controlling Officer or chief
executive officer, who shall be the
chairperson;
(b) not less than four and not more
than eight members, appointed by
the Controlling Officer or chief
executive officer in writing; and
(c) the head of the Procurement Unit,
who shall be an ex-officio member
of and the secretary to the
Procurement Committee.
(2) Where a procuring entity is too small to
be able to constitute a Procurement Committee, the
Authority shall prescribe the procedures to be
followed by the procuring entity.
(3) Members of a Procurement Committee
shall be officers of the procuring entity with not more
than two appointed from outside the procuring entity:
Provided that members of the
Procurement Committee who are not officers of
the procuring entity shall not be public officers
or employees of any parastatal body..
(4) Members of the Procurement Committee
shall be appointed with regard to their-

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 (a) technical and professional
competence;
(b) procurement skills and knowledge
required for the discharge of the
functions of the Procurement
Committee; and
(c) proven integrity and sound
decision-making abilities.
(5) A Controlling Officer or chief executive
officer shall, in selecting the members of a
Procurement Committee, seek to establish a balance
of skills and experience among the members to
ensure that the Procurement Committee -
(a) has an appropriate level of
seniority and experience in
decision-making;
(b) includes knowledge and experience
in public procurement and other
relevant professional disciplines;
and
(c) includes persons with knowledge
and experience of the procuring
entity's operations.
(6) Notwithstanding the provisions of
subsection (4), when appointing members of the
Procurement Committee for the first time after the
commencement of this Act, a Controlling Officer or
chief executive officer shall appoint half the members

27
 for a tenure of two years, in order to ensure both
continuity and rotation in the membership of the
Procurement Committee.

Tenure of office of 17. (1) A member of the Procurement

Procurement
Committee Committee appointed under paragraph (b) of
subsection (1) of section sixteen shall hold office for
a period of three years and may be re-appointed for a
further like period.
(2) A Controlling Officer or chief executive
officer shall inform the Authority of the membership
of the Procurement Committee not later than fourteen
days from the date of its appointment or of any
change in its membership.
(3) A Controlling Officer or chief executive
officer, as the case may be, may terminate the
appointment of a member of the Procurement
Committee if the member -
(a) abuses the member’s office;
(b) is involved or participates in
corrupt or coercive practices;
(c) is incompetent;
(d) becomes physically or mentally
incapable of performing the duties
of a member of the Procurement
Committee;
(e) is absent from three consecutive
meetings of the Procurement

28
 Committee of which the member
has had notice without the prior
approval of the Procurement
Committee;
(f) is convicted of an offence involving
dishonesty; or
(g) is adjudged or declared bankrupt.
(3) A Controlling Officer or chief executive
officer, as the case may be, may remove or substitute
any member of the Procurement Committee prior to
the expiry of the member’s term of office where -
(a) it is necessary in order to maintain
a balance of skills and experience
on the Procurement Committee in
accordance with section sixteen;
(b) the structure or status of the
procuring entity has changed;
(c) the post of an incumbent member
has changed, or the member has
resigned; or
(d) the member dies.

Proceedings of 18. (1) Subject to the other provisions of

Procurement
Committee this Act, a Procurement Committee shall regulate its
own procedure.
(2) A member or person who is present at a
meeting of a Procurement Committee or a
subcommittee of a Procurement Committee at which

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 any matter, in which that person or any member of
the person’s close relative, is directly or indirectly
interested in a private capacity, is the subject of
consideration, shall, as soon as is practicable after
the commencement of the meeting, disclose that
interest and shall not, unless the Procurement
Committee or the subcommittee otherwise directs,
take part in any consideration or discussion of, or
vote on any question relating to, that matter.
(3) A disclosure of interest made under this
section shall be recorded in the minutes of the
meeting at which it is made.

Subcommittees of 19. A Procurement Committee may -

Procurement
Committee (a) establish a sub-committee with
delegated level of authority to
provide procurement authorisation
for a sub-division of the procuring
entity, where the sub-division's
procurement would be more
effectively managed by a sub-
committee; and
(b) establish a subcommittee to carry
out particular functions of the
Procurement Committee:
Provided that -

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 (i) the appointment of
the members of the
subcommittee shall
m e e t t h e
requirements of
section sixteen; and
(ii) the Procurement
Committee shall be
responsible and
accountable for the
activities of any
subcommittee.

Establishment of 20. (1) There shall be established in every

Procurement Units
procuring entity a Procurement Unit which shall be
responsible for managing all procurement activities of
the procuring entity in accordance with the
provisions of this Act and obtaining all required
approvals from the appropriate approvals authority.
(2) Without prejudice to the generality of
subsection (1), the functions of a Procurement Unit
are to -
(a) plan the procurement activities of
a procuring entity and
recommend the appropriate
method of procurement;
(b) prepare solicitation documents,
bid notices, short-lists, evaluation

31
 reports, contract award
recommendations and contracts;
(c) manage the bidding process,
including pre-bid meetings,
clarifications, receipt and opening
of bids;
(d) manage the evaluation of bids and
any post-qualification or
negotiations;
(e) manage contracts and oversee
contracts management by the
designated contracts manager;
and
(f) prepare any procurement reports
required by the Authority, a
Controlling Officer, chief executive
officer or a Procurement
Committee for purposes of this
Act.

Functions of user 21. The functions of a user department, in

departments
relation to procurement, are to -
(a) provide information on forecast
procurement requirements to the
Procurement Unit for the purposes
of procurement planning;
(b) initiate procurement requirements;
(c) provide technical inputs to the

32
 procurement process;
(d) represent the end user of the
goods, works or services in the
procurement process; and
(e) manage contracts or assist the
designated contract manager as
required.

Procurement 22. (1) The following stages of the

authorisation and
levels of authority procurement process shall require the prior
authorisation of the relevant approvals authority:
(a) the use of the limited or direct
bidding methods of procurement,
except where direct bidding is on
the grounds of the low value;
(b) solicitation documents prior to
their issue;
(c) evaluation reports prior to any
further bid opening, the
subsequent stage of evaluation or
notification of award;
(d) any other documents
incorporating contract award
recommendations, such as reports
on negotiations, prior to any
notification of award;
(e) amendments to contracts prior to
their issue;

33
 (f) the cancellation of procurement
proceedings; and
(g) the termination of a contract.
(2) The approvals authority shall be -
(a) a Controlling Officer or chief
executive Officer where the value
of the procurement does not
exceed the level of authority
specified in regulations issued
under this Act;
(b) a Procurement Committee for all
other procurement, subject to the
level of authority specified in
paragraph 7 of the Second
Schedule during the interim
period only; and
(c) the Central Tender Committee for
any procurement in excess of the
level of authority specified in
Paragraph 7 of the Second
Schedule during the interim period
only.
(3) Contract documents shall be authorised
by a Controlling Officer or chief executive officer prior
to their issue:
Provided that the contracts are in line
with the contract award recommendations
previously authorised by the Procurement

34
 Committee.
(4) A Controlling Officer or chief executive
officer may delegate a level of authority, up to the
maximum specified in paragraph (a) of subsection (2),
to any designated senior officer or officers, including
the head of the Procurement Unit.
(5) Any delegation made by a Controlling
Officer or chief executive officer, as the case may be
under sub-section (4) shall be in writing and copied to
the head of the Procurement Unit.
(6) For purposes of subsection (2), the value
of the procurement shall be-
(a) the estimated value in the case of
paragraphs (a), (b) and (f) of
subsection (1) and technical
evaluation reports under
paragraph (c) of subsection (1);
(b) the proposed contract value, in
the case of paragraph (d) of
subsection (1) and financial
evaluation reports under
paragraph (c) of subsection (1);
and
(c) the original or amended contract
value, whichever is higher, in the
case of paragraph (e) and (g) of
subsection (1).
(7) Where the proposed or actual value of a

35
 contract exceeds the value originally estimated for the
procurement and thereby exceeds the level of
authority of the approvals authority who authorised
any previous stage in the procurement process, a
procuring entity shall make a subsequent request for
authorisation by the appropriate approvals authority,
with details of the earlier stages and prior
authorisation.
(8) The authorisation of the appropriate
approvals authority shall be obtained for all
subsequent stages in the procurement process, save
that a procurement shall not be cancelled or restarted
purely on the grounds that the authorisation was
given by an approvals authority not authorised to do
so under this Act.

Procurement of 23. (1) The Minister may, on the

common use items
recommendation of the Authority, by statutory
instrument -
(a) designate a central agency or unit
with responsibility for the
procurement of common use items
for a procuring entity or for a
group of procuring entities; and
(b) specify the procedure for the use
of a central agency or unit, the
common use items subject to the
arrangements, the procedure for

36
 determining such items and the
procuring entities subject to the
rules.
(2) A procuring entity shall, until the
Minister establishes a central agency or unit
pursuant to subsection (1), procure common use
items in accordance with the provisions of this Act.

Use of procurement 24. A procuring entity may, in such manner

agent or procurement
service provider as may be prescribed, appoint a procurement agent
or procurement service provider to carry out
procurement functions on its behalf:
Provided that -
(a) the procurement agent or
procurement service provider shall
be appointed in accordance with
the provisions of this Act; and
(b) all procurement by the
procurement agent or
procurement service provider shall
be undertaken in accordance with
the provisions of this Act.

37
 PART IV
METHODS OF PROCUREMENT

Open bidding 25. (1) The objective of open bidding shall

be to obtain value for money and promote private
sector participation through the maximum possible
competition.
(2) Except as provided for in this Act, a
procuring entity shall use open bidding for the
procurement of all goods, works and non-consulting
services.
(3) A procuring entity shall use open
national bidding or open international bidding in
accordance with section twenty-six.

National and 26. (1) Subject to subsection (2), a

international bidding
procuring entity shall use open national bidding for
all procurement.
(2) A procuring entity shall use open
international bidding where -
(a) the estimated value of the
procurement exceeds the
prescribed threshold;
(b) the goods, works or services are
not available under competitive
price and other conditions from at
least three suppliers in Zambia; or
(c) regional or international

38
 participation is required in
accordance with an agreement
entered into by the Government.
(3) Participation in open national bidding
shall be limited to citizen and local bidders.
(4) Participation in open international
bidding shall be open to all bidders, including citizen,
local and foreign bidders.
(5) Where open international bidding is
used -
(a) a bid notice shall, in addition to
the national media, be published
in any regional or international
media; and
(b) the period for submission of bids
or pre-qualification applications
shall be increased to allow
sufficient time for foreign bidders
to respond.

Open selection 27. (1) The objective of open selection is to

promote private sector participation to obtain the best
possible shortlist in order to obtain value for money.
(2) Except as provided for in this Act, a
procuring entity shall use open selection for the
procurement of all consulting services.

39
National and 28. (1) Subject to subsection (2), a
international
selection procuring entity shall use open national selection in
all procurements.
(2) A procuring entity shall use open
international selection where -
(a) the estimated value of the
procurement e xc e e d s the
prescribed threshold;
(b) the consulting services are not
available under competitive price
and other conditions from at least
three suppliers in Zambia; or
(c) regional or international
participation is required in
accordance with an agreement
entered into by the Government.
(3) Participation in open national selection
shall be limited to citizen and local bidders.
(4) Participation in open international
selection shall be open to all bidders, including
citizen, local and foreign bidders.
(5) Where open international selection is
used-
(a) a bid notice shall, in addition to
the national media, be published
in any regional or international
media; and
(b) the period for submission of

40
 expressions of interest shall be
increased to allow sufficient time
for foreign bidders to respond.

Limited bidding 29. (1) The objective of limited bidding is

to obtain competition and value for money to the
extent possible where the circumstances do not
justify or permit the use of open bidding.
(2) Limited bidding may be used where -
(a) the goods, works or services are
only available from a limited
number of suppliers; or
(b) there is an urgent need for the
goods, works or services and
engaging in open bidding would
therefore be impractical .

Limited selection 30. (1) The objective of limited selection is

to obtain competition and value for money to the
extent possible where the circumstances do not
justify or permit the use of open selection.
(2) Limited selection may be used where -
(a) the consulting services are
only available from a limited
number of suppliers; or
(b) there is an urgent need for
the goods, works or services
and engaging in open

41
 selection would therefore be
impractical.

Simplified bidding 31. (1) The objective of simplified bidding

is to obtain competition and value for money to the
extent possible, while maintaining economy and
efficiency, where the circumstances do not justify the
use of open bidding.
(2) Simplified bidding may be used where the
estimated value of the goods, works or consulting or
non consulting services does not exceed the
prescribed threshold.

Direct bidding 32. (1) The objective of direct bidding shall

be to achieve timely and efficient procurement, where
the circumstances or value do not justify or permit
the use of competition.
(2) Direct bidding may be used where -
(a) the goods, works or consulting or
non-consulting services are only
available from a single source and
no reasonable alternative or
substitute exists;
(b) due to an emergency, there is
urgent need for the goods, works
or services making it impractical
to use other methods of
procurement because of the time

42
 involved in using those methods;
(c) additional goods, works or services
must be procured from the same
source because of the need for
compatibility, standardisation or
continuity;
(d) an existing contract could be
extended for additional goods,
works or services of a similar
nature and no advantage could be
obtained by further competition;
or
(e) the estimated value of the goods,
works or services does not exceed
the prescribed threshold.

Force account 33. (1) Force account, which is

construction by the use of the procuring entity’s own
personnel and equipment, may be the only practical
method of constructing some kind of works.
(2) The use of force account may be justified
where:
(a) the quantities of work involved
cannot be defined in advance;
(b) the works are small and scattered
or in remote locations for which
qualified construction firms are
unlikely to bid at reasonable

43
 prices;
(c) work is required to be carried out
without disrupting ongoing
operations;
(d) risks of unavoidable work
interruption are better borne by
the procuring entity than by a
bidder or supplier; and
(e) there are emergencies needing
prompt attention.

Purchases from other 34. (1) Where a procuring entity is able to

procuring entities
fulfil a procurement requirement through purchase
from a Government agency and there would be no
benefit in purchasing from a supplier, the procuring
entity may purchase directly from the Government
agency without the application of any other method
of procurement:
Provided that the Government agency
must be able to meet all the procuring entity's
requirement as specified in the statement of
requirements.
(2) A statutory corporation or body or
company in which the Government has a majority or
controlling interest shall be eligible to participate as
a bidder or supplier in public procurement in
accordance with the provisions of this Act, if the
statutory corporation, body or company is legally and

44
 financially autonomous.

Procurement of 35. (1) Any award of contract for -

infrastructure for
private financing and (a) the construction, rehabilitation or
award of concessions
operation of public infrastructure
and other public goods on the
basis of private investment;
(b) service concessions; and
(c) comparable forms of contracting;
shall be subject to such special procedures as the
Minister may prescribe by statutory instrument.
(2) An award of contract made under
subsection (1) -
(a) shall be consistent with the
general procurement rules set out
in Part V of this Act; and
(b) may vary the procurement process
set out in Part VI of this Act to the
extent necessary to meet the
requirements of the contract
under this section.

Community 36. (1) Where, in the interest of project

participation in
procurement sustainability, or to achieve certain specific social
objectives of the project, it is desirable in selected
project components to -
(a) call for participation of local
communities and non-

45
 governmental organisations;
(b) increase the utilisation of local
know-how and materials; and
(c) employ labour-intensive and other
appropriate technologies;
the procurement procedures, specifications, and
contract packaging shall be suitably adapted by the
Authority to reflect these considerations, provided
these are efficient.
(2) The procedures under subsection (1)
specified by statutory instrument.

PART V
GENERAL PROCUREMENT RULES

Participation and 37. A bidder shall not be excluded from

non-discrimination
participating in public procurement on the basis of
nationality, race, religion, gender or any other
criterion not related to its eligibility or qualifications,
except to the extent provided for in this Act.

Records of 38. (1) A procuring entity shall maintain

procurement
records of all procurement proceedings.
(2) The records required under subsection
(1) shall be maintained for a period of seven years
from the date of-
(a) contract completion or
termination;

46
 (b) the decision to terminate the
procurement proceedings;
(c) the settlement of any dispute
under the contract; or
(d) the resolution of any complaint or
appeal made under this Act;
whichever is later.
(3) The contents of procurement records
shall be in accordance with regulations issued under
this Act.

Communications 39. (1) All communication between a

procuring entity and a bidder or supplier shall be in
writing and where it is made in any other form, it
shall be reduced to and confirmed in writing.
(2) For the purposes of this section, “in
writing” means in a form that provides a record of the
content of the communication.
(3) The use of electronic bidding, or any
other form of modern information and
communications technology, shall only be permitted
in accordance with public procurement standards
issued by the Authority.
(4) Unless otherwise permitted by the
Authority in public procurement standards, English
shall be the language of communication.

47
Confidentiality 40. (1) A public officer shall keep
confidential the information that comes into the
public officer’s possession relating to procurement
proceedings and to bids, including any bidder’s
proprietary information.
(2) Without prejudice to the generality of
subsection (1), a procuring entity shall not, except
where required to do so by an order of court, disclose
any information relating to procurement proceedings
and bids where the disclosure would-
(a) amount to a contravention of the
law;
(b) obstruct law enforcement;
(c) prejudice the legitimate
commercial interests of the
parties;
(d) inhibit fair competition in public
procurement; or
(e) in anyway be contrary to public
interest.

PART VI
PROCUREMENT PROCESS

Initiation of 41. (1) All procurement requirements shall

procurement
requirements be documented prior to the commencement of any
procurement proceedings, recording at least the
goods, works or services required and the estimated

48
 value.
(2) Procurement shall only be initiated
where -
(a) the availability of funding for the
requirement has been confirmed;
and
(b) approval to proceed has been
given;
by a Controlling Officer, chief executive officer or by
an officer designated by the Controlling Officer or
chief executive officer, as the case may be, to perform
the function.

Procurement planning 42. (1) A procuring entity shall plan its

procurement in a rational manner and in particular
shall -
(a) aggregate its requirements
wherever possible, both within the
procuring entity and between
procuring entities, to obtain value
for money and reduce procurement
costs;
(b) make use of rate or running
contracts wherever appropriate to
provide an efficient, cost effective
and flexible means to procure
goods, works or services that are
required continuously or repeatedly

49
 over a set period of time;
(c) avoid splitting of procurement to
defeat the use of appropriate
procurement methods; and
(d) i n t e g r a te its e xp e n d i t u r e
programme with the procurement
plan.
(2) Procuring entities shall submit all annual
procurement plans to the Authority.

Choice of 43. (1) A procuring entity shall use one of

procurement method
the procurement methods specified in Part IV.
(2) The choice of procurement method shall
be determined in accordance with the conditions
specified in Part IV, taking into account -
(a) the estimated value of the
procurement;
(b) whether the procurement is of
goods, works, non-consulting or
consulting services;
(c) any special circumstances, such as
a limited number of potential
sources or an emergency
requirement; and
(d) whether national or international
competition is required.

50
 (3) A procuring entity shall not split up
procurement requirements with the intention of
avoiding a particular method of procurement, where
such requirements could be procured as a single
contract.

Statement of 44. (1) A statement of procurement

procurement
requirements requirements shall give a correct and complete
description of the goods, works or consulting or non-
consulting services required.
(2) A statement of procurement requirements
shall be -
(a) included in the solicitation
document to inform bidders of the
procuring entity's requirements;
(b) used in evaluation to determine
whether a bidder meets the
procuring entity's requirements, as
specified in the solicitation
document, and where appropriate,
to determine the quality of the bid;
and
(c) included in the contract to define
the goods, works or services being
purchased.
(3) A statement of procurement requirements
included in the solicitation document shall be

51
 prepared with a view to -
(a) creating fair and open competition;
and
(b) ensuring that the goods, works or
services are fit for the purpose for
which they are being purchased
and are of appropriate quality.
(4) To the extent possible, a statement of
procurement requirements shall be based on the
relevant, objective, technical and quality
characteristics of the goods, works or services to be
procured.

Solicitation 45. (1) A solicitation document shall use

documents
the appropriate standard document issued by the
Authority or any other document approved by the
Authority.
(2) A solicitation document shall contain-
(a) clear instructions on the
management of the procurement
process and the applicable rules;
(b) a clear description of the object of
the procurement in the form of a
statement of requirements; and
(c) the proposed form and conditions
of contract or a statement of the
form and conditions of contract
which will apply.

52
Selection of bidders 46. (1) The method for selection of bidders
shall be determined by the procurement method used
and shall be -
(a) by publication of a bid notice or
through a pre-qualification process
for open bidding;
(b) by publication of a notice
requesting expressions of interest
in order to develop a shortlist for
open selection;
(c) by development of a shortlist for
limited bidding and simplified
bidding; or
(d) by selection of a single bidder for
direct bidding.
(2) The Minister may, by statutory
instrument, prescribe the rules for publication of
notices, pre-qualification, development of shortlists
and selection of single bidders.

Invitation of bids 47. (1) A procuring entity shall keep a

record of all bidders to whom the solicitation
document is issued.
(2) Where solicitation documents are issued
to pre-qualified or shortlisted bidders, the documents
shall be issued to all bidders at the same time.
(3) Bidding documents may be sold at such
fee as may be prescribed by statutory instrument.

53
 (4) In setting bidding deadlines, a procuring
entity shall -
(a) allow sufficient time for bidders to
obtain solicitation documents,
prepare complete and responsive
bids and submit bids; and
(b) comply with the minimum bidding
periods as may be prescribed by
statutory instrument.
(5) A procuring entity may require bidders to
submit bid securities, in the manner and in
accordance with such procedure as may be prescribed
by statutory instrument.
(6) The Minister may, by statutory
instrument, make rules for the management of the
bidding process, including pre-bid meetings,
clarification and amendment of solicitation documents
and the withdrawal, modification and substitution of
bids.
(7) A procuring entity shall require bidders to
submit sealed, written bids, unless otherwise provided
for in this Act.
(8) The method for bid submission shall be as
specified in regulations made under this Act and shall
take into account the method of procurement, the
complexity of the procurement and the evaluation
methodology used.

54
Receipt of bids 48. (1) A solicitation document shall clearly
state the date and time of the bidding deadline and
that late bids shall be rejected.
(2) A procuring entity shall ensure that -
(a) a bid box, or other means of
receiving bids, is made available to
bidders;
(b) bids are kept confidential, and in
the case of sealed bids unopened,
until the time for opening of bids;
and
(c) bidding is closed at the precise date
and time of the bidding deadline
and no late bids are accepted.

Opening of bids 49. All open bidding, limited bidding and open
selection processes shall include a public bid opening,
in accordance with the procedures specified in
regulations made under this Act.

Evaluation 50. (1) The choice of evaluation

methodology shall be determined by the type, value
and complexity of the procurement requirement and
shall be done in accordance with regulations made
under this Act.
(2) A solicitation document shall clearly state
the methodology and criteria to be used in the
evaluation of bids and the determination of the best

55
 evaluated bidder.
(3) No methodology or criteria, other than
those stated in the solicitation document, shall be
taken into account and all criteria shall be applied
equally to all bids.
(4) A procuring entity may ask a bidder to
clarify their bid in order to assist in the evaluation,
but no changes in the substance of bids, including
changes in price, shall be permitted after the date and
time of the closing of the bid, unless otherwise
provided for in this Act.
(5) A post-qualification may be undertaken in
accordance with the criteria in the solicitation
document, to determine whether the best evaluated
bidder has the capability and resources to effectively
carry out the contract.
(6) A procuring entity shall prepare an
evaluation report for submission to the appropriate
approvals authority.

Negotiations 51. (1) Subject to subsection (3),

negotiations shall only be undertaken in accordance
with the conditions and procedures specified in
regulations made under this Act.
(2) Negotiations shall not relate to the price
of the bid, except in the case of direct bidding or where
the price of the bid has not been taken into account in
the evaluation methodology.

56
 (3) The use of compound interest in any
negotiation or contract is hereby prohibited.

Decision to award 52. (1) An award of contract shall be

contract
recommended to the best evaluated bidder, as
determined by the evaluation methodology and criteria
specified in the solicitation document.
(2) The decision to award a contract shall be
taken by the appropriate approvals authority.
(3) A decision to award a contract by the
approvals authority does not constitute a contract.

Publication of best 53. (1) A procuring entity shall, within

evaluated bidder
seven days of awarding a contract, prepare a notice
indicating the best evaluated bidder and the value of
the proposed contract, and send the notice to all
bidders who submitted bids.
(2) No award of contract shall be made for a
period of ten working days following the completion of
the requirements stipulated in subsection (1).
(3) The provisions of this section do not apply
to-
(a) procurement using simplified
bidding;
(b) procurement using direct bidding;
or
(c) procurement using limited bidding
on grounds of insufficient time in

57
 accordance with section twenty-
nine.

Award of contract 54. (1) A solicitation document shall state

the procedure for award of contract, which shall be-
(a) by placement of a written contract
document; or
(b) by issue of a letter of bid acceptance,
which shall be confirmed by the
written contract.
(2) No contract, purchase order, letter of bid
acceptance or other communication in any form
conveying acceptance of a bid or award of contract shall
be issued prior to -
(a) an award decision by the appropriate
approvals authority in accordance
with section fifty;
(b) publication and dispatch of the
notice of best evaluated bidder in
accordance with section fifty-one;
(c) confirmation that the procurement is
not subject to administrative review;
(d) confirmation that funding is
available for the contract; and
(e) any other approvals required,
including the approval of the
contract by the Attorney-General.
(3) Any contract, purchase order, letter of bid

58
 acceptance or other communication issued contrary to
subsection (2) is void.

Contract 55. (1) A contract shall use the appropriate

standard document issued by the Authority or any
other document approved by the Authority.
(2) The type of contract shall be as determined
by statutory instrument.
(3) A procuring entity shall publish a notice of
all contracts awarded which exceed the prescribed
threshold.

Information of 56. A procuring entity shall, after the

unsuccessful
bidder commencement of a contract with the successful
bidder, inform all the other bidders that their bids have
not been successful and shall give reasons for that
decision by the procuring entity.

Contract 57. (1) A procuring entity shall appoint a

management
contract manager for every contract awarded, who shall
be responsible for -
(a) managing the obligations of the
procuring entity specified in the
contract; and
(b) ensuring that the supplier performs
the contract in accordance with the
terms and conditions specified in the
contract.

59
 (2) A contract manager shall be selected in
accordance with the procedure prescribed by statutory
instrument, taking into account the skills, experience
and functions required for management of the contract.

Amendment of 58. (1) All amendments to a contract shall

contract
require the prior authorisation of the appropriate
approvals authority and the Attorney-General.
(2) Any amendment to a contract shall be
determined by the original or revised value of the
contract, whichever is greater.
(3) Any amendment to a contract purportedly
effected without the approval of the Attorney-General
shall be void.

Deviations 59. The Authority may, in such manner and

procedure as the Minister may prescribe by statutory
instrument, permit a procuring entity to deviate from
the use of a public procurement method, rule, process
or document-
(a) where exceptional requirements
make it impossible, impractical or
uneconomical to comply with the
provisions of this Act;
(b) where market conditions or
behaviour do not allow the effective
application of the procurement
methods, rules, processes or

60
 documents; or
(c) specialised or particular
requirements are regulated or
governed by international standards
or practices.

Accreditation of 60. The Authority may, in the prescribed

alternative
procurement system manner, accredit an alternative procurement system
where a procuring entity -
(a) operates in a specialised field or
discipline which requires an
alternative system;
(b) has a status which requires
alternative or additional procedures;
or
(c) is required to use an alternative
system to comply with the provisions
of an international or other
agreements.

PART VII
BIDDERS AND SUPPLIERS

Eligibility of bidders 61. (1) A procuring entity shall require all

bidders to meet the following criteria, in order to be
eligible to participate in public procurement:
(a) the bidder shall have the legal
capacity to enter into contract;

61
 (b) the bidder shall be solvent, and not
be in receivership, bankrupt or
wound up, its affairs administered
by a court or a judicial officer, or its
business activities suspended or the
subject of legal proceedings for any
of the foregoing;
(c) the bidder shall have fulfilled its
obligations to pay taxes and social
security contributions;
(d) the bidder should not, nor its
directors or officers have been
convicted of any criminal offence
related to their professional conduct
or the making of false statements or
misrepresentations as to their
qualifications to enter into a contract
within a period of five years
preceding the commencement of the
procurement proceedings, or have
been suspended pursuant to section
sixty-three; and
(e) the bidder should not have a conflict
of interest in relation to the
procurement requirement.
(2) A procuring entity may require bidders to
be citizen or local bidders to be eligible to participate in
public procurement where -

62
 (a) open national bidding is used in
accordance with section twenty-six;
(b) open national selection is used in
accordance with section twenty-
eight; or
(c) the procurement is subject to a
reservation scheme in accordance
with section sixty-one.
(3) A solicitation document shall state the
eligibility requirements and specify any documentary
evidence required as proof of eligibility.
(4) The review of the eligibility of the bidders
shall be conducted as part of the preliminary
examination of bids, except where it has been
conducted as part of the pre-qualification proceedings.

Qualification of 62. (1) A procuring entity may require a

bidders
bidder to meet such qualification criteria as the
procuring entity considers appropriate to the particular
procurement requirement, to demonstrate that the
bidder has the capability and resources to effectively
carry out the contract.
(2) A qualification criteria shall be specified in
the solicitation document and may relate to -
(a) professional and technical
qualifications;
(b) financial resources and condition;
(c) equipment and other physical

63
 facilities;
(d) personnel and managerial capability;
(e) record of past performance of similar
contracts; and
(f) registration or licensing with the
relevant professional body in Zambia
or in the bidder's country of origin
where so required by law.
(3) A solicitation document shall state any
qualification requirements and specify the documentary
evidence or information required to demonstrate the
bidder's qualifications.
(4) Qualifications shall be assessed by
examining whether the bidder does or does not meet the
qualification criteria and not by using a point system for
comparing the relative level of qualifications of
participating bidders.
(5) A review of the qualifications of the bidders
shall be conducted separately from the evaluation and
comparison of bids.
(6) If pre-qualification proceedings are not
conducted, post-qualification, in which the procuring
entity ascertains the qualifications of the best evaluated
bidder, may be utilised.

Preference and 63. (1) Notwithstanding the provisions of

reservation
section thirty-five, a procuring entity may in the
prescribed manner -

64
 (a) grant a margin of preference for the
benefit of bids by a target group
offering goods, works or services
manufactured or performed by the
target group; or
(b) reserve or set aside certain
procurement requirements for a
target group, by restricting bidding
to the target group.
(2) A target group for any preference or
reservation scheme shall be determined in accordance
with Government economic and social policies and may
include -
(a) citizen or local suppliers;
(b) goods, works or services
manufactured in or provided from
Zambia or a particular region or
performed by Zambians or persons
from a particular region;
(c) Zambian suppliers in a particular
industry or economic sector;
(d) small- and medium-sized
enterprises;
(e) enterprises owned by women; or
(f) any other group designated by
Government policy.
(3) Preference or reservation schemes shall be
formulated by the Authority, in consultation with the

65
Government bodies responsible for economic and social
policy, and issued by the Minister by statutory
instrument.
(4) Preference or reservation schemes shall
clearly state -
(a) the target group and eligibility
requirements;
(b) the percentage of the preference,
where applicable;
(c) the period for the operation of the
scheme; and
(d) the objectives of the scheme and the
means of measuring its effectiveness
in achieving those objectives.
(5) Where a margin of preference is granted to
citizen or local suppliers -
(a) greater preference shall be granted to
citizen suppliers, than local
suppliers, with no preference to
foreign suppliers;
(b) the preference to be accorded shall
be proportional to the percentage of
the contract to be actually executed
by citizen or local suppliers; and
(c) greater preference shall be granted
where citizen or local suppliers form
part of a joint venture or association
agreement, than where they are

66
 sub-contracted by foreign suppliers.
(6) The Authority may, in consultation with the
relevant authorities, recommend other measures to
facilitate private sector participation in public
procurement and to further the development of
economic capacity in Zambia, which shall be issued by
the Minister by statutory instrument.

Supplier databases or 64. (1) The Authority may organise and

lists
maintain a system, in the form of a database or list, to
provide centralised information on potential suppliers of
goods.
(2) A procuring entity may organise and
maintain a system or database of potential suppliers
and shall copy the information recorded in the system
or database to the Authority for inclusion in the
centralised system referred to under subsection (1).
(3) A supplier shall not be required to register
in any database or list as a condition of participating in
any procurement proceedings.
(4) Inclusion in any database or list shall be
open at any time to potential suppliers and requests to
register shall be acted upon within a reasonable period
of time.
(5) The Authority, and any procuring entity
operating any system or database in accordance with
this section, shall regularly publicise-
(a) the existence of the database or list;

67
 (b) procedures for registering and
updating entries on the database or
list;
(c) the conditions to be satisfied for
entry on the database or list and the
documentary evidence required; and
(d) the period of any registration and
requirements for updating entries.
(6) Entry in the database or list shall not be
subject to any eligibility criteria more stringent than
that set out in section fifty-nine.
(7) A database or list maintained under this
section shall be reviewed and updated on a regular
basis.
(8) The Authority and any procuring entity
operating a system or database under this section shall
notify potential suppliers of -
(a) their inclusion in the database or
list;
(b) any rejection of a request to register
and the reasons for such rejection;
and
(c) their removal from the database or
list and the reasons for such
removal.

Suspension 65. (1) The Authority may suspend a bidder

or supplier from participating in public procurement on

68
 the grounds specified in section sixty-four.
(2) A bidder or supplier shall not be suspended
unless -
(a) reasonable notice has been given to
the bidder or supplier of the grounds
for the proposed suspension and the
details of the alleged grounds;
(b) reasonable opportunity has been
given to the bidder or supplier to
respond to the alleged grounds and
provide information in defence; and
(c) a thorough investigation of the facts
of the case has been undertaken by
the Authority.
(3) A suspension shall be for a minimum
period of one year and a maximum period of five years.

Grounds for 66. A bidder or supplier shall be suspended

suspension
from participating in procurement on any of the
following grounds:
(a) providing false information in a bid
or any other document submitted to
a procuring entity in connection with
a procurement process or contract;
(b) connivance to interfere with the
participation of other bidders;
(c) refusal to sign a contract or to
furnish a performance security in

69
 accordance with the terms of the
solicitation document and bid, if
required to do so; or
(d) failure to comply with a bid securing
declaration.

Permanent bar of 67. (1) A bidder or supplier shall be

bidder or supplier
permanently barred from participating in procurement
on any of the following grounds:
(a) misconduct relating to the
submission of bids, including
corrupt, fraudulent, collusive or
coercive practices, price fixing, a
pattern of under-pricing of bids and
breach of confidentiality;
(b) substantial non-performance or
under-performance of contractual
obligations:
Provided that the
non-performance or under
performance is not due to any
force majeure;
(c) conviction of a criminal offence
relating to obtaining or attempting to
obtain a contract or subcontract; or
(d) conviction of a crime related to
business or professional activities.
(2) In subsection (1), “force majeure” means an

70
 event which is beyond the reasonable control of a bidder
or supplier which makes the performance of the
contract impossible or impracticable under the
circumstances.

Inducement by bidder 68. A procuring entity shall reject a bid,

or supplier
proposal, offer or quotation of a bidder or supplier if the
bidder or supplier offers, gives, or agrees to give,
directly or indirectly an inducement or anything of value
to a public officer to influence an act, decision or
proceeding of a procuring entity.

Appeal against 69. A bidder or supplier aggrieved by a decision

suspension
of the Authority to suspend the bidder or supplier from
participating in public procurement or over any other
matter under this Act shall submit the matter to
arbitration.

PART VIII
ARBITRATION

Review of decision by 70. (1) A bidder or supplier who is aggrieved

procuring entity
with a decision made by a procuring entity under this
Act may appeal against the decision to the Authority.
(2) An application under subsection (1) shall be
made in the prescribed manner upon payment of the
prescribed fee.

71
 (3) The Authority shall not accept an
application made under this section unless it is
submitted within ten working days from the date the
bidder submitting the application was informed of or
became aware of the circumstances giving rise to the
application or from the date the bidder should have
become aware of those circumstances, whichever is
earlier.
(4) Unless an application is dismissed or
resolved by mutual agreement between the applicant
and the procuring entity, the Authority shall-
(a) upon receipt of the application,
institute an investigation;
(b) ensure that no contract award is
made prior to the resolution of the
application; and
(c) issue a written decision, within ten
working days after the submission of
the application.
(5) A decision issued under paragraph (c) of
subsection (4) shall state -
(a) whether the application is upheld, in
whole or in part or dismissed;
(b) the reasons for the decision; and
(c) any corrective measures that are to
be taken by the procuring entity or
the bidder, as the case may be.

72
 (6) A bidder or supplier who is aggrieved by the
decision of the Authority may submit the matter to
arbitration under section seventy-one.

Dispute to be 71. Any dispute over a matter or decision made

determined by
arbitration under this Act shall be determined by arbitration in
accordance with the provision of the Arbitration Act.

PART IX
GENERAL PROVISIONS

Code of conduct 72. The Authority may promulgate a code of

conduct to regulate public officers, bidders and
suppliers involved in public procurement.

Restriction on public 73. (1) A public officer, or a public officer’s

officers
close relative, shall not participate as a bidder in the
public procurement of the procuring entity by which the
public officer is employed or over which the public
officer exercises any supervisory or oversight authority.
(2) Any person who served as procurement
officer or participated in the approval of any
procurement activities with respect to a procurement
shall not-
(a) participate in any manner, as an
officer, employee, agent or
representative of a supplier, in any

73
 negotiations or technical discussions
leading to the award, modification or
extension of the contract for such
procurement; or
(b) participate personally or
substantially on behalf of a supplier
in the performance of such a
contract.
(3) The restriction in subsection (2) shall
remain in effect for the duration of the procurement
proceeding and contract, if any, in question.

Conduct of bidder 74. (1) A bidder or supplier participating in

and supplier
public procurement shall -
(a) at all times abide by their obligations
under this Act, the contract and
other instruments applicable to their
conduct and activities related to
public procurement; and
(b) not commit or abet corrupt,
fraudulent, collusive or coercive
practices.
(2) Subject to subsection (3), a bidder or
supplier who contravenes subsection (1) commits an
offence and is liable, upon conviction to a fine not
exceeding five hundred thousand penalty units or to
imprisonment for a period not exceeding five years, or to

74
 both.
(3) A bidder or supplier who commits an act of
corruption shall be prosecuted in accordance with the
provisions of the Anti-Corruption Commission Act.

Offences by public 75. A person commits an offence who -

officers and other
persons (a) without reasonable excuse fails or
refuses to give information, or
produce any document, record or
report required under this Act;
(b) assaults, resists or obstructs any
officer or employee of the Authority,
or any other authority exercising
monitoring and oversight functions
over public procurement, in the
exercise of their functions under this
Act; or
(c) contrary to the provisions of this Act,
interferes with or exerts undue
influence on any officer or employee
of the Authority or a procuring entity
in the performance of their functions
or in the exercise of their powers
under this Act.
(2) A public officer commits an offence who -
(a) due to recklessness or dishonesty
fails to exercise the powers as a
public officer and to discharge duties

75
 in accordance with the requirements
of this Act;
(b) uses the position as a public officer
dishonestly or with the intention of
directly or indirectly gaining an
advantage for oneself or someone
else or causing detriment to a
procuring entity;
(c) uses the position as a public officer
recklessly without regard to whether
the conduct may directly or
indirectly gain an advantage for
oneself or someone else or cause
detriment to a procuring entity;
(d) uses information obtained because of
the position as a public officer to
gain an advantage for oneself or
someone else or cause detriment to
a procuring entity;
(e) tampers with a bid, including any
document or item submitted with the
bid, by opening, burning, tearing,
destroying, or partially burning,
tearing or destroying, altering,
erasing, falsifying or rendering
incomplete or misleading, the bid;

76
 (f) publishes or discloses information
relating to procurement, other than
in the proper and authorised course
of duties as a public officer; or
(g) contravenes or fails to comply with
any provision of this Act;
and is liable to the applicable administrative and legal
sanctions applicable to public officers under their
conditions of employment and any other written law.

Responsibilities of 76. (1) Notwithstanding anything to the

Controlling Officers
and chief executive contrary contained in any written law, where any
officers
commitment or expenditure is incurred on any
procurement, a Controlling Officer or chief executive
officer of a procuring entity shall ensure that such
procurement is in accordance with the provisions of this
Act.
(2) Subject to the provisions of subsections (3)
and (4), a Controlling Officer or chief executive officer of
a procuring entity shall be accountable for failing to
comply with subsection (1).
(3) Where a Controlling Officer or chief
executive officer of a procuring entity satisfies the
Authority, or other relevant oversight or enforcement
body, that the Controlling Officer or chief executive
officer had, in accordance with the provisions of this Act
delegated functions under subsection (1) to another
person or body or committee, such other person and

77
 every member of such body or committee shall be
accountable for any failure to comply with subsection
(1).
(4) Where a Controlling Officer or chief
executive officer satisfies the Authority, or other
relevant oversight or enforcement body, that the
Controlling Officer or chief executive officer is, under
the provisions of any written law, subject to the control
or direction of another person, board, committee or
other body, and that such control or direction caused
the failure to comply with subsection (1), then such
other person or every member of such board, committee
or other body, shall be accountable for the failure to
comply with subsection (1).

General penalty 77. (1) A person who contravenes any

provision of this Act for which no penalty is provided is
liable, upon conviction -
(a) in the case of an individual , to a fine
not exceeding five hundred thousand
penalty units or to imprisonment for
a period not exceeding five years, or
to both; and
(b) in the case of a body corporate or
un-incorporate body, to a penalty not
exceeding one million penalty units.

78
Offences committed by 78. If a body corporate or un-incorporate body
body corporate or un-
incorporate body is convicted of an offence under this Act, every person
who -
(a) is a director of, or is otherwise
concerned with the management of,
the body corporate or un-incorporate
body; and
(b) knowingly authorised or permitted
the act or omission constituting the
offence;
shall be deemed to have committed the same offence
and shall be liable, on conviction, to the penalty
specified for that offence.

Compensation 79. (1) A court of competent jurisdiction may

order a person to compensate a procuring entity for any
damage or loss suffered by the procuring entity, if the
damage or loss resulted from an offence committed by
the person.
(2) Any compensation ordered under
subsection (1) is a civil debt due to the procuring entity.

Transfer of functions 80. The Authority may, where a procuring

of procuring entity to
other body entity contravenes this Act, transfer its procurement
function to a body or procurement agency appointed by
the Authority, until the Authority is satisfied that the
causes of the contravention have been rectified by the
procuring entity.

79
Circulars and 81. (1) The Authority may issue public
publications
procurement circulars and instructions to provide
further guidance on the interpretation and application
of this Act.
(2) The Authority shall publish, for public
information, texts of this Act, regulations, circulars,
standards and directives of general application and the
list of bidders and suppliers who are suspended or
prohibited from participating in public procurement.

Regulations 82. The Minister may, on the recommendation

of the Authority, by statutory instrument, make
regulations for the better carrying out of the provisions
of this Act.

Repeal of 83. (1) The Zambia National Tender Board

Cap 394
Act, 1982, is hereby repealed.
(2) Notwithstanding subsection (1), every order,
direction or appointment issued, given or made

Cap 394 pursuant to the provisions of the repealed Act shall be

valid until otherwise cancelled, revoked or varied under
the provisions of this Act.
(3) Upon the commencement of this Act, all
regulations or rules relating to public procurement
Cap 394
promulgated under the repealed Act shall cease to have
any effect, power, function, authority or duty in relation
to any matter connected with the procurement of goods,
works or services.

80
 (4) On or after the commencement of this Act,
reference in any written law or other document to the
Zambia National Tender Board shall be read and
construed as references to the Authority.
(5) For the avoidance of doubt, a person who
immediately before the commencement of this Act held
office as Director, Secretary or employee of the Board
shall continue to hold such office as Director, Secretary
or employee of the Authority as if appointed under this
Act.
(6) The service of the staff of the Board
referred to under subsection (5) shall be treated as
continuous service.

Savings and 84. The Second Schedule applies in relation to

transitional
provisions the savings and transitional provisions.

81
 FIRST SCHEDULE
(Section 5 (3)
PART I
ADMINISTRATION OF AUTHORITY

Composition of Board 1. (1) There is hereby established the

Board of the Authority which shall be the Governing
Board of the Authority.
(2) The Board shall consist of the following
part-time members:
(a) the Minister responsible for
finance, who shall be the
Chairperson;
(b) four Ministers appointed by the
President, one of whom shall be
designated the Vice-Chairperson;
(c) the Secretary to the Cabinet;
(d) the Attorney-General;
(e) the Governor of the Bank of
Zambia;
(f) the Permanent Secretary in the
Ministry responsible for financial
management;
(g) the Permanent Secretary in the
Ministry responsible for commerce;
(h) the Permanent Secretary in the
Ministry responsible for works and

82
 supply; and
(i) two other persons appointed by
the President from among persons
in the private sector, of good
standing and recognised for their
high levels of professional
competence and integrity.

Seal of Authority 2. (1) The seal of the Authority shall be

such device as may be determined by the Board and
shall be kept by the Secretary.
(2) The affixing of the seal shall be
authenticated by the Chairperson or the Vice-
Chairperson and the Secretary or one other person
authorised in that behalf by a resolution of the Board.
(3) Any contract or instrument which, if
entered into or executed by a person not being a body
corporate, would not be required to be under seal,
may be entered into or executed without seal on behalf
of the Authority by the Secretary or any other person
generally or specifically authorised by the Board in
that behalf.
(4) Any document purporting to be a
document under the seal of the Authority or issued on
behalf of the Board shall be received in evidence and
shall be executed or issued, as the case may be,
without any further proof, unless the contrary is
proved.

83
Tenure of office and 3. (1) Subject to the other provisions of
vacancy
this Act, a member of the Board shall hold office for
a period of three years from the date of appointment
and may be re-appointed for a further period of three
years.
(2) Subject to the other provisions of this
Part, a member shall, on the expiration of the period
for which the member is appointed, continue to hold
office until another member is appointed to succeed
that member.
(3) The office of a member becomes vacant -
(a) upon the member's death;
(b) if the member is adjudged
bankrupt;
(c) if the member is absent from three
consecutive meetings of the Board
of which the member has had
notice, without the prior approval
of the Board;
(d) upon the expiry of one month's
notice of the member's intention to
resign from office, given by the
member in writing to the Board;
(e) if the member becomes mentally or
physically incapable of performing
the duties of a member of the
Board; or

84
 (f) if the member is convicted of an
offence under this Act or any other
written law and sentenced therefor
to imprisonment for a term of six
months or more.
(4) A member may resign from office by
giving not less than one month’s notice in writing to
the Board.
(5) The President shall, where the office of a
member becomes vacant, appoint another member in
place of the member who vacates office, and such
member shall hold office for the remainder of the
term.

Proceedings of 4. (1) Subject to the other provisions of

Board
this Act, the Board may regulate its own procedure.
(2) The Board shall meet for the transaction
of business, at least once in every three months at
such places and times as the Chairperson may
determine.
(3) The Chairperson may, upon giving notice
of not less than fourteen days, call a meeting of the
Board and shall call a special meeting upon receiving
a written request from at least five members of the
Board.
(4) If the urgency of any particular matter
does not permit the giving of the notice required
under subsection (3), a special meeting may be called

85
the Chairperson upon giving a shorter notice.
(5) The quorum at a meeting of the Board
shall be seven of the members of the Board.
(6) There shall preside at any meeting of the
Board -
(a) the Chairperson;
(b) in the absence of the Chairperson,
the Vice-Chairperson; and
(c) in the absence of both the
Chairperson and the Vice-
Chairperson, such member as the
members present may elect from
amongst themselves for the
purpose of that meeting.
(7) A decision of the Board on any question
shall be by a majority of votes of the members present
and voting at the meeting and, in the event of an
equality of votes, the person presiding at the meeting
shall have, in addition to a deliberative vote, a casting
vote.
(8) Where a member is for any reason unable
to attend any meeting of the Board, the member may,
in writing, nominate another person from the same
organisation to attend such meeting in that member's
stead and such person shall be deemed to be a
member for the purpose of that meeting.
(9) The Board may invite any person whose
presence in its opinion is desirable to attend and to

86
 participate in the deliberations of a meeting of the
Board but such person shall have no vote.
(10) The validity of any proceedings, act or
decision of the Board shall not be affected by any
vacancy in the membership of the Board or by any
defect in the appointment of any member or by
reason that any person not entitled so to do, took part
in the proceedings.
(11) The Board shall cause minutes to be kept
of the proceedings of every meeting of the Board and
every meeting of any committee established by the
Board.

Committees of 5. (1) The Board may, for the purpose of

Board
performing its functions under this Act, constitute
any committee and delegate to any such committee
such of its functions as it thinks fit.
(2) The Board may appoint as members of a
committee constituted under sub-paragraph (1),
persons who are or are not members of the Board and
such persons shall hold office for such period as the
Board may determine.
(3) A committee of the Board may regulate
its own procedure.

Allowances of 6. There shall be paid to members of the

members
Board or any committee of the Board such allowances
as the Board may, with the approval of the Minister,

87
 determine.

Disclosure of 7. (1) A member or person who is

interest
present at a meeting of the Board or a committee of
the Board at which any matter, in which that person
or any member of the person’s immediate family, is
directly or indirectly interested in a private capacity,
is the subject of consideration, shall, as soon as is
practicable after the commencement of the meeting,
disclose that interest and shall not, unless the Board
or the committee otherwise directs, take part in any
consideration or discussion of, or vote on any
question relating to, that matter.
(2) A disclosure of interest made under this
paragraph shall be recorded in the minutes of the
meeting at which it is made.

Prohibition of 8. (1) A person shall not, without the

publication of, or
disclosure of consent in writing given by or on behalf of the Board,
information to
unauthorized publish or disclose to any unauthorized person,
persons
otherwise than in the course of duties of that person,
the contents of any document, communication or
information whatsoever, which relates to or which has
come to the knowledge of that person in the course of
that person’s duties under this Act.
(2) A person who contravenes sub-paragraph
(1) commits an offence and is liable, upon conviction,
to a fine not exceeding one hundred thousand penalty

88
 units or to imprisonment for a term not exceeding two
years, or to both.
(3) A person who, having any information
which to the knowledge of that person has been
published or disclosed in contravention of sub-
paragraph (1), unlawfully publishes or communicates
the information to any other person, commits an
offence and is liable, upon conviction, to a fine not
exceeding one hundred thousand penalty units or to
imprisonment for a term not exceeding two years, or
to both.

Immunity of 9. An action or other proceeding shall not lie

members and staff of
Authority or be instituted against a member of the Board or a
committee of the Board, or a member of staff of the
Board, for or in respect of any act or thing done or
omitted to be done in good faith in the exercise or
performance, or purported exercise or performance,
of any of the powers, functions or duties conferred
under this Act.

89
 PART II
FINANCIAL PROVISIONS

Funds of Authority 1. (1) The funds of the Authority shall

consist of such moneys as may –
(a) be appropriated to the Authority
by Parliament for the purposes of
the Authority;
(b) be paid to the Authority by way of
fees, charges, grants or donations;
and
(c) otherwise vest in or accrue to the
Authority.
(2) The Authority may –
(a) subject to the approval of the
Minister, accept moneys by way of
grants or donations from any
source within or outside Zambia;
(b) subject to the approval of the
Minister, raise by way of loans or
otherwise, such moneys as it may
require for the discharge of its
functions; and
(c) in accordance with the regulations
made under this Act, charge fees
for services provided by the
Authority.
(3) There shall be paid from the funds of the
Authority –

90
 (a) the salaries, allowances, loans,
gratuities and pensions of the staff
of the Authority and other
payments for the recruitment and
retention of the staff;
(b) such reasonable travelling and
subsistence allowances or other
allowances for members, members
of any committee of the Board and
staff of the Authority when
engaged on the business of the
Authority at such rates as the
Board may, with the approval of
the Minister, determine; and
(c) any other expenses incurred by
the Board in the performance of
the Board’s functions under this
Act.
(4) The Board may, with the approval of the
Minister, invest in such manner as it thinks fit such
of its funds as it does not immediately require for the
discharge of its functions.

Financial year 2. The financial year of the Authority shall

be the period of twelve months ending on 31st
December of each year.

91
Accounts 3. (1) The Authority shall cause to be kept
proper books of account and other records relating to
its accounts.
(2) The accounts of the Authority shall be
audited annually by the Auditor-General in
accordance with the provisions of the Public Finance
Act No. 15 of 2004
Act, 2004.

Annual report 4. (1) As soon as practicable, but not later

than ninety days after the end of the financial year,
the Authority shall submit to the Minister a report
concerning its activities during the financial year.
(2) The report, referred to in subparagraph
(1), shall include information on the financial affairs of
the Authority and there shall be appended to the
report –
(a) an audited balance sheet;
(b) an audited statement of income
and expenditure; and
(c) such other information as the
Minister may require.
(3) The Minister shall, not later than seven
days after the first sitting of the National Assembly
next after receipt of the report referred to in
subparagraph (1), lay the report before the National
Assembly.

92
 SECOND SCHEDULE
(Section 86)
TRANSITIONAL PROVISIONS

Interim 1. (1) The provisions of this Part shall cease

arrangements
to have effect two years from the date of the
commencement of this Act.
(2) During the interim period, the Authority shall
manage and effect a gradual decentralisation process and
shall-
(a) provide secretariat services to the
Central Tender Committee;
(b) assess the capacity of procuring
entities;
(c) issue and update the levels of
authority for procuring entities;
(d) advise procuring entities on the
actions needed to improve their
capacity ratings;
(e) facilitate capacity building in
procuring entities; and
(f) advertise locally and abroad all
tenders for the procurement of goods,
works and services for Government,
local authorities parastatal and
statutory bodies.

93
Establishment of 2. (1) There is hereby established the Central
Central Tender
Committee Tender Committee, which shall consist of the following
members:
(a) the Permanent Secretary responsible
for financial management and
administration, who shall be the
Chairperson;
(b) the Permanent Secretary responsible
for administration at Cabinet Office;
(c) the Permanent Secretary responsible
for works and supply;
(d) the Permanent Secretary responsible
for commerce, trade and industry;
(e) the Permanent Secretary responsible
for agriculture;
(f) the Permanent Secretary responsible
for education;
(g) the Permanent Secretary responsible
for health;
(h) the Permanent Secretary responsible
for local government;
(i) the Permanent Secretary responsible
for defence;
(j) a representative of the Attorney-
General;
(k) the Deputy Governor of the Bank of
Zambia responsible for administration;
(l) the Commissioner-General of the

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 Zambia Revenue Authority; and
(m) the Director-General and the Secretary
to the Authority, who shall be ex-
officio members of the Committee.
(2) A member appointed under subparagraph (1)
may, in writing, appoint a senior officer from the
organisation that the member represents to be the
alternate and to attend and participate in their stead at
any meeting of the Central Tender Committee which the
member is unable to attend.

Powers and 3. (1) The function of the Central Tender

functions of
Central Tender Committee is to ensure that all procurement submitted
Committee
for its prior authorisation is conducted in accordance with
this Act.
(2) The Central Tender Committee shall be the
highest approvals authority, during the interim period
only, and shall provide prior authorisation of specified
stages of the procurement process in accordance with this
Act.
(3) The Central Tender Committee shall have an
unlimited level of authority, but shall have no authority
over any procurement which falls within a procuring
entity's level of authority.
(4) In order to build capacity in Procurement
Committees -
(a) all submissions to the Central Tender
Committee shall be made through the
procuring entity's Procurement

95
 Committee, which may reject a
submission and require corrections to
be made, before onward submission to
the Central Tender Committee; and
(b) all decisions of the Central Tender
Committee shall be sent to, or copied
to, the procuring entity's Procurement
Committee, with written explanations
of the reasons for the rejection of a
submission or any other variations
recommended to be made.

Proceedings of 4. Subject to the other provisions of this Act, the

Central Tender
Committee Central Tender Committee shall regulate its own
procedure.

Secretariat of 5. (1) The Authority shall provide secretariat

Central Tender
Committee services to the Central Tender Committee which shall
include the performance of the functions of Procurement
Units specified under this Act, where the value of the
procurement is above the capacity rating of the
Procurement Unit of a procuring entity.
(2) Notwithstanding the provisions of
subparagraph (1), in order to build capacity in
Procurement Units, the Authority shall-
(a) work with the staff of a Procurement
Unit of a procuring entity in
performing the functions; and

96
 (b) review and advise on the work of the
Procurement Unit, prior to its
submission to the relevant approvals
authority.

Separation of 6. (1) In order to maintain independence of

functions in
Authority functions, the Authority shall ensure a separation of its
secretariat functions performed pursuant to paragraph 5
from all its other functions.
(2) The Authority shall establish a structure
which ensures that staff are involved in either secretariat
functions or other functions, but not both.
(3) Staff involved in providing secretariat services
shall not be involved in-
(a) monitoring compliance and
procurement performance;
(b) assessing the capacity of procuring
entities or determining levels of
authority;
(c) providing secretariat services to the
Tribunal for purposes of an appeal;
(d) deciding on a list of bidders or
suppliers to be suspended from
participating in public procurement; or
(e) any other function which could be
considered a conflict of interest.

Levels of authority 7. (1) The Authority shall issue levels of

and capacity ratings
for procuring entities authority for each procuring entity which shall be

97
determined by the capacity of each procuring entity to
undertake procurement.
(2) All procurement with a value above the
level of the authority determined under subparagraph
(1) shall be submitted to the Central Tender
Committee for prior authorisation in accordance with
paragraph 3.
(3) The Authority shall assess the
procurement capacity of each procuring entity
regularly and not less than once in twelve months.
(4) An assessment under subparagraph (3)
shall be conducted in accordance with guidance
provided in regulations made under this Act and shall
take into account the capacity of both the
Procurement Committee and the Procurement Unit.
(5) The Authority shall after each capacity
assessment of a procuring entity-
(a) advise the procuring entity of its
capacity rating and level of
authority;
(b) advise the procuring entity on the
actions needed to improve its
capacity rating; and
(c) facilitate, to the extent possible,
any capacity improvements.
(6) A procuring entity which has implemented
measures to improve its capacity may request the
Authority to review its capacity rating and level of
authority and the Authority shall undertake the

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review as soon as possible, but in no case later than
three months from the date of the request.

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