Procurement Regulations and Procedures
Submitted for PPADB Vetting
DATE: 15/06/2016
1
CONTENTS
Procurement Procedures (fin 23) 2
Introduction 2
Definitions 2
Procurement Limits 3
Formal Tenders: P1, 000, 001 to P2, 000, 000 (Management Tender Committee {MTC}) 5
Formal Tenders: P2,000,001 – P5,000,000: (Board Tender Committee ({BOCRA BTC}) 8
Formal Tenders P5, 000, 001 and above: (The Board of the Authority) 9
Evaluation Committee 14
Procurement Unit 15
PROCUREMENT METHODS 16
Quotation Procurement Method 25
Micro Procurement 27
Tender Administration Procedures 30
Types of Contracts 41
AWARD OF CONTRACT 42
Cooling off Period 43
Rejection of all tenders 43
NEGOTIATION 45
Reservation and Preference 48
De-briefing 48
Complaints Process 48
Contract Termination 49
Prohibition of BOCRA Officers 49
Procedures to be Confidential 50
Procurement of goods and services (fin 24) 51
Other Controls 53
Disposal Regulations 55
Disposal Methods 56
Sale to Authority staff 60
PROCUREMENT PLANNING 68
2
Procurement Procedures (fin 23)
1. The purpose of these regulations is to outline the financial procurement
limits in use and the procedures that relate to the administration of the
procurement and asset disposal process at the Authority.
Introduction
2. The purchase or disposal of any supplies or the letting of any contracts
for works, supplies or services is subject to these procurement
procedures.
Definitions
3. The following definitions shall be applicable in this regulation:
4. "Tender Procedures" are those as outlined in these Regulations and any
other instruction issued from time to time.
5. "Public Tender" means a formal tender, which shall be advertised by
public notice and/or other media as appropriate.
6. "Request for Quotation" means an informal procurement which need not
be advertised publicly and which may be called for by an authorised
official without reference to the Management Tender Committee or the
Board Tender Committee.
7. “Direct Appointment” means a method where the selection of a supplier
is conducted on a sole supplier basis without competition.
8. "Selective Tender" means a formal tender in which the invitation to tender
is sent only to firms pre-selected and approved by the relevant authority
depending on financial thresholds. These need not be advertised by
public notice.
3
9. "Running Contract" means a contract which extends over a
specified period of time for an estimated or variable quantity of
supplies, works or for a specified service.
10. "Services" means consultancy, professional, maintenance or other
services.
11. “Micro Procurement” refers to non-tender procurement of all
supplies, works or services for values below P50, 000
12. “Management Tender Committee” (“MTC”) refers to the Internal
Tender Committee at the Authority comprising of individuals as
defined in these regulations.
13. “Board Tender Committee” (“BTC”) refers to the External Tender
Committee of the Authority comprising of Board members as
defined in these regulations.
14. “Board” means the Board of the Authority consisting of seven (7)
members of as established in terms of section 4 of the
Communications Regulatory Act.
Procurement Limits
15. Procurement of supply items or letting or works or service contracts
will be subject to these Regulations, depending on the value of
works, supplies or services being procured:
4
16. All Departments of BOCRA shall adhere to the limits of this purchasing
authority schedule.
ESTIMATED
ORDER VALUE
METHOD OF
PROCUREMENT
MINIMUM
NUMBER
QUOTATIONS
REQUIRED
APPROVAL
AUTHORITY
Up to 500 Micro Procurement without
competition (Use of Petty
Cash)
N/A Accounts Officer
501 to P50,000
Micro Procurement with
competition
5 (Quotations
Not Mandatory)
Procurement
Manager
P50,001 –
P100,000
Quotation Procurement
Method(Written quotation)
5 Head of
Department
P100,001 –
P250,000
Quotation Procurement
Method(Written quotation)
5 Deputy Chief
Executive
P250,001 –
P1,000,000
Formal Tender N/A Chief Executive
P1,000,001 –
P2,000,000
Formal Tender N/A Management
Tender Committee
P 2, 000,001 –
P5,000,000
Formal Tender N/A Board Tender
Committee
P5,000,001 and
above
Formal Tender N/A Full Board
5
17. Use of Petty Cash– up to P500 (Accounts Officer)
18. Micro Procurement competition not mandatory: P501 – P50,000
(Procurement Manger)
19. Quotation Procurement Method: P50, 001 to 100,000 (Head of
Department)
20. Quotation Procurement Method: P100, 001 -P250, 000 (Deputy Chief
Executive {DCE})
21. Formal Tender Procedures: P 250, 001 to P 1, 000,000 (Chief
Executive Officer)
22. The Department concerned shall evaluate the tenders or bid
documents;
23. The HOD concerned with the relevant purchase, consulting together
with other HODs shall make a recommendation to the CE who shall
then determine the award;
Formal Tenders: P1, 000, 001 to P2, 000, 000 (Management Tender Committee {MTC})
Constitution of the MTC
24. The MTC of the Authority shall comprise the following members:
24.1. Chief Executive (CE)
24.2. Deputy Chief Executive, Operations
24.3. Deputy Chief Executive/s, Regulatory
24.4. Director Corporate Support (DCS)
24.5. One (1) senior officer, who is a permanent member
of the Committee, nominated by the Chairperson. .
25. The Committee may also call upon any specialist to give advice on
the suitability of a purchase or contract.
6
Quorum
26. A quorum of the MTC shall be any three members.
Functions and Authority of the Management Tender Committee The Committee shall:
27. Call for, adjudicate and authorize acceptance or otherwise of
tenders for the Authority’s requirements of goods and services for
values within their limits of authorisation in accordance with these
regulations having satisfied itself that adequate budgetary provision
exists or that specific approval to the expenditure to be incurred has
been given by the Board as appropriate;
28. Approve final selection and award contracts to successful bidders;
29. Authorise in special circumstances, waiver of Tender Procedures
for values within their limits of authorisation;
30. Ensure that the general policy laid down by the Board from time to
time on the procurement of works, supplies and services for the
Authority is adhered to;
31. to standardise goods, equipment and services procured for the
Authority in the interest of efficiency, economy, quality and reliability
and ease of maintenance;
32. Promote the participation of citizen-owned companies, firms and
organisations in tenders as guided by the government citizen
economic empowerment policies.
7
8
Secretary
33. The Procurement Manager shall be the Secretary to the MTC who
will record proceedings at the meeting but will have no voting rights.
Formal Tenders: P2,000,001 – P5,000,000: (Board Tender Committee ({BOCRA BTC})
Constitution
34. The BTC of the Authority shall comprise the following individuals:
34.1. The Chairman of the Committee appointed by the
Committee members from amongst their number;
34.2. One non-executive member of the Board;
34.3. One independent non-executive person appointed by the
Board who may not be a present member of the Board.
34.4. Chief Executive (an ex-officio member who, in terms of
Section 21 (5) of the Communications Regulatory Authority
Act does not have any voting rights)
35. The Committee may also call upon the HOD requesting the item or
specialist to give advice on the suitability of a purchase or contract,
who will be non-voting.
Quorum
36. A quorum of the BTC shall be any three members.
Functions and Authority of the Board Tender Committee The Committee shall:
37. Call for, adjudicate and authorize acceptance or otherwise of tenders
for the Authority’s requirements of goods and services for values within
9
their limits of authorisation in accordance with these regulations having
satisfied itself that adequate budgetary provision exists or that specific
approval to the expenditure to be incurred has been given by the Board
as appropriate;
38. Approve final selection and award contracts to successful bidders;
39. Authorise in special circumstances, waiver of Tender Procedures
for values within their limits of authorisation;
40. Ensure that the general policy laid down by the Board from time to
time on the procurement of works, supplies and services for the
Authority is adhered to;
41. to standardise goods, equipment and services procured for the
Authority in the interest of efficiency, economy, quality and reliability
and ease of maintenance;
42. Promote the participation of citizen-owned companies, firms and
organisations in tenders as guided by the government citizen
economic empowerment policies.
Secretary
43. The Board Secretary shall be the Secretary to the BTC who will
record proceedings at the meeting but will have no voting rights
Formal Tenders P5, 000, 001 and above: (The Board of the Authority)
44. The Board shall adjudicate tenders submitted to it by the evaluation
committee within its limit of authorisation.
45. The Board of the Authority consists of seven (7) members appointed
by the Minister responsible.
46. The composition of the Board is as follows:
10
46.1. The Chairman appointed by the Minister
46.2. The Vice Chairman appointed by the Board members
from amongst their number.
46.3. Five (5) Board members as appointed by the Minister
46.4. Chief Executive (an ex-officio member who, in terms of
Section 21 (5) of the Communications Regulatory
Authority Act does not have any voting rights)
Quorum
47. A quorum of the Board shall be four (4) members.
Functions 48. The Board of the Authority is the supreme body which directs all the
policy and regulatory functions and activities of the Authority.
49. The Board shall:
49.1. Call for, adjudicate and authorize acceptance or otherwise of
tenders for the Authority’s requirements of goods and services
for values within their limits of authorisation in accordance with
these regulations having satisfied itself that adequate budgetary
provision exists or that specific approval to the expenditure to be
incurred has been given by the Board as appropriate;
49.2. Approve final selection and award contracts to successful
bidders;
49.3. Authorise in special circumstances, waiver of Tender Procedures
for values within their limits of authorisation;
49.4. Ensure that the general policy laid down by the Board from time
to time on the procurement of works, supplies and services for
the Authority is adhered to;
11
49.5. to standardise goods, equipment and services procured for the
Authority in the interest of efficiency, economy, quality and
reliability and ease of maintenance;
49.6. Promote the participation of citizen-owned companies, firms and
organisations in tenders as guided by the government citizen
economic empowerment policies.
Secretary
50. The Board Secretary shall record proceedings at the Board meeting
but will have no voting rights
12
General Functions and Authority of the Tender Committees The Committees shall:
52. Call for, adjudicate and authorize acceptance or otherwise of
tenders for the Authority’s requirements of goods and services for
values within their limits of authorisation in accordance with these
regulations having satisfied itself that adequate budgetary provision
exists or that specific approval to the expenditure to be incurred has
been given by the Board as appropriate;
53. Approve final selection and award contracts to successful bidders;
54. Authorise in special circumstances, waiver of Tender Procedures
for values within their limits of authorisation;
55. Ensure that the general policy laid down by the Board from time to
time on the procurement of works, supplies and services for the
Authority is adhered to;
56. to standardise goods, equipment and services procured for the
Authority in the interest of efficiency, economy, quality and reliability
and ease of maintenance;
57. Promote the participation of citizen-owned companies, firms and
organisations in tenders as guided by the government citizen
economic empowerment policies.
Voting Rights
58. The members of the Board and its committees will have one vote
each with a casting vote by the Chairperson in the event of an
equality of votes.
13
Attendance
59. Members of the Board and its committees shall attend all their
respective committee meetings. Where a member is unable to
attend a meeting due to other work commitments then reasonable
notice of absence shall be provided to the Board/Committee through
the Secretary;
Conflict of interest
60. If a Board or Tender Committee member is present at a meeting at
which any matter in which the member is directly or indirectly
interested in a private capacity is the subject of consideration, he or
she shall, as soon as is practicable after the commencement of the
meeting, declare such interest and shall not, unless the Board
otherwise directs, take part in any discussion or voting of the Board
or Committee on such matter.
61. In circumstances where a Board or Tender Committee member or
one of his/her immediate family member has submitted a tender the
member shall notify the Chairman to that effect and he/she will be
excluded from attending any meeting of the Board or Tender
Committee at which such tenders are considered.
62. All Board/Committee members shall duly declare the conflict of
interest in the relevant form provided by the Board/Committee
Secretary at the start of each meeting.
Minutes
63. The minutes of all meetings of the Board/Tender Committees shall
be recorded, signed by the Chairperson of each Board/Tender
Committee and the Secretary and then filed.
14
Evaluation Committee
64. An evaluation committee shall be appointed by the Chief Executive or
a senior officer delegated by the Chief Executive for each tender and
shall disband after the evaluation and award of the specific tender is
completed.
65. The Chairperson of each evaluation committee shall be appointed by
the Head of Department procuring the concerned services, works or
supplies.
66. The HOD of the procuring Department shall not be the chairperson of
the evaluation committee.
67. The evaluation committee shall consist of at least three (3) members.
68. At least one of the Evaluation Committee members should be from a
different Department than the procuring one in order to maintain impartiality
69. The BOCRA Internal Auditors should not form part of the evaluation
committee, except on the procurement of auditing services or related matters, as they should review the evaluation process.
70. The Procurement Officer will play an advisory role on the procedure
and should be contacted where clarification is required on the evaluation process.
71. It is also recommended that a representative from the Finance
department should be part of the evaluation committee.
72. Other persons not being the staff of the Authority may be appointed to the evaluation committee depending on the nature of the tender being evaluated.
73. Evaluation Committee Members should keep the proceedings and
discussions confidential, and should not discuss with anyone outside
15
the Evaluation Committee. All discussions should be recorded and retained according to the applicable record management policy.
74. The Evaluation Committee Members should sign a “Declaration of
Secrecy” and “Declaration of Interest” and Statement of Non-Disclosure Form, and this form should be returned to the Procurement Officer after signature for record keeping.
Procurement Unit
75. The Procurement Unit shall be a section within the structure of the
Authority consisting of staff members of the Authority. It shall be the
center of expertise for all procurement activities of the Procuring Entity.
The Procurement Unit should be headed by a Procurement Manager,
who possesses the requisite qualifications and experience in public
procurement and asset disposal activities
76. The Procurement Unit will be responsible for the following
departmental activities:
76.1. Obtain estimated requirement of consumables and non-
consumables, including cost estimates, for each financial year,
from all departments.
76.2. In consultation with all departments prepare a costed annual
procurement plan and prioritise requirements. Where possible
ensure common items are consolidated
76.3. Ensure that goods, services and works are procured in the most
economical, efficient and effective manner according to these
procedures.
76.4. In association with Heads of Department and Technical
Specialists, will prepare and co-ordinate all the associated
paperwork, specifications, terms of reference, bills of quantities,
drawings, short-lists, advertisements, prequalification, tender or
request for quotation documents. to ensure completeness,
accuracy and competitive qualities to allow for equal treatment
and competition among all contractors.
16
PROCUREMENT METHODS
Expression of Interest
77. An Expression of Interest (EOI) process may be used before the
Authority invites tenders. The aim at EOI stage is to assess the
capacity and level of interest of respondents to undertake the work,
to seek feedback on draft specifications to assist in the refinement
of specifications and to shortlist respondents for a selective
tender. Evaluation criteria for shortlisting of selective tenders will
be included in each EOI.
78. Respondents who are not invited to quote will be advised in writing.
Request for Information (RFI)
79. A Request for Information (RFI) is a solicitation sent to a broad base
of potential suppliers for the purpose of conditioning, gathering
information, preparing for tender or quotation, developing
strategy, or building a database about:
79.1. the suppliers, including: facilities, finances, attitudes,
and motivations;
79.2. the state of the supply market;
79.3. supply market dynamics;
79.4. trends and factors driving change;
79.5. alternative pricing strategies;
79.6. supplier competition;
79.7. breadth and width of product/service offerings, by
supplier;
79.8. supplier strategic focus, business, and product plans.
80. RFIs may include a detailed list of products/services for which
pricing is requested. The pricing should be used for
comparative purposes, not as the basis of buying decisions.
17
Through analysis of RFI responses, strategic options, lower
cost alternatives, and cost reduction opportunities may be identified.
Pre-qualification
81. Prequalification is usually necessary for large or complex works, or
in any other circumstances in which the high costs of preparing
detailed bids could discourage competition, such as custom-
designed equipment, industrial plant, specialized services, some
complex information and technology and contracts to be let
under turnkey, design and build, or management contracting. This
also ensures that invitations to bid are extended only to those
who have adequate capabilities and resources. Prequalification
shall be based entirely upon the capability and resources of
prospective bidders to perform the particular contract satisfactorily,
taking into account their:
81.1. Experience and past performance on similar
contracts,
81.2. capabilities with respect to personnel, equipment,
and construction or manufacturing facilities, and
financial position.
82. the invitation to prequalify for bidding on specific contracts or groups
of similar contracts shall be advertised.
83. the scope of the contract and a clear statement of the requirements
for qualification shall be sent to those who responded to the
invitation. All such applicants that meet the specified criteria shall
be allowed to bid.
84. the Authority shall inform all applicants of the results of
prequalification.
85. as soon as prequalification is completed, the bidding documents
shall be made available to the qualified prospective bidders.
18
FORMAL TENDER 86. The BOCRA approved Standardised Bidding Packages for supplies,
works and services, as amended from time to time, shall be used for
open domestic bidding.
Open Domestic Bidding 87. The open domestic bidding method is the preferred method of
procurement of supplies, works and services.
88. The currency of the bids and payment shall be Botswana Pula unless
specified otherwise in the bidding documents.
89. Foreign bidders may participate in open domestic bidding subject to
eligibility requirements.
90. All Invitations to bid shall be advertised in at least one media of wide
circulation in Botswana.
91. Allow for no less than four (4) weeks from first date of the
advertisement for submission of bids.
92. Where applicable, preferential treatment, which should be specifically
stated in the bidding documents, and shall be used in accordance with
the applicable government directives.
Open International Bidding
93. Open International Bidding shall be used where:
93.1. Foreign bidders’ participation may
enhance competition.
93.2. Anticipation by non-resident foreign bidders would increase
value for money; or,
93.3. The procurement requirement’s technical complexity requires
the participation of non-resident foreign bidders.
93.4. Tenders for open international bidding shall be open to eligible
bidders and shall be advertised in publications of wide
international circulation.
19
93.5. The currency of the bids shall be the Botswana Pula or any
internationally tradable currency and fixed at a predetermined
date and time, normally 7 days prior to when the bid is due to be
opened and at a set time of day.
94. This method allows all domestic and foreign bidders to bid, subject
to specific requirements.
95. Upon approval, the tender shall be advertised publicly in a
newspaper of national and international circulation.
96. Allow for no less than six (6) weeks from first date of advertisement
for submission of bids.
Restricted / Selective Tender Procedure
97. Selective Tender Invitation procedure is implemented by sending
invitations only to potential bidders who have been identified by the
Procurement Unit by way of pre-qualification criteria or other
selection approved by the Management Tender Committee, Board
Tender Committee or the Board. Tender requests implemented
using this procedure need not be advertised.
98. Selective tender may be used, subject to provisions of these
regulations where the objective is to ensure that tender invitations
are only confined to capable and specialized firm or companies and
where such a method is in the interest of the Authority.
99. Selective tender invitation may generally be used for work of a
specialized nature or where it is a requirement by an external donor
(funding institution) that certain companies be used.
100. Pre-qualification in advance of tendering is normally advisable for
large or complex contracts to ensure that the invitations to tender
are sent only to capable contenders.
101. In the case of civil engineering, building or other engineering work
of a specialised or unusually complex nature, or for the procurement
of specialised equipment or services, provided that the relevant
20
HOD satisfies the tender committee that it is in the Authority's
interest to apply Selective Tender Procedure;
102. Pre-qualification should be based entirely upon the ability of
interested firms to perform the particular work satisfactorily, taking
into account, inter alia:
102.1. experience and past performance on similar contracts;
102.2. capability and availability of resources i.e. personnel,
equipment and plant;
102.3. Financial status.
103. The HOD should inform the tender committee, in detail, of the
procedure and criteria to be followed in the calling for and evaluating
of Selective Tenders. All such procedures and criteria should be
approved by the tender committee in accordance with these
procedures, prior to the invitation of Selective Tenders.
104. The list of pre-qualified firms together with a statement of
qualifications and the reasons for exclusion of any application from
pre-qualification, should be furnished to the tender committee for
approval before the applicants are notified.
105. This method may also be used where there is not enough time for
an open tender.
106. Where selective tender invitation method is used the following shall
apply:
106.1. no selective tendering shall be allowed unless expressly
authorized by the Management Tender Committee, BTC or
the Board;
106.2. the list of prospective bidders is published in the Authority
website and noticeboard;
106.3. two or more bidders with same ownership or business
linkages shall not be invited in a single procurement;
21
106.4. tenders received from bidders not included in the approved
list shall be disqualified.
106.5. Where relevant HOD deems it in the interest of the
Authority to apply a Selective Tender Procedure and shall
give reasons in writing to the tender committee for their
decision.
Restricted International Bidding
107. Restricted International Bidding (RIB) may be used only where:
107.1. Items to be procured are only available from a limited number of
suppliers.
107.2. There is insufficient time for open bidding due to an emergency
situation
107.3. The value does not exceed the threshold stated in the guidelines
107.4. Other circumstances where departure from opening bidding is
justified
107.5. Foreign bidders are included in the short list
107.6. Prior written authority must be sought from the Board, or its
Committees to follow the RIB procedure.
107.7. The invitation to bid is addressed directly to a limited number of
potential bidders, without publicly advertising the opportunity.
Restricted Domestic Bidding 108. Restricted Domestic Bidding (RDB) is used only where:
108.1. Items to be procured are only available from a limited number of
suppliers.
108.2. The value does not exceed the threshold stated in the guidelines
108.3. Other circumstances where departure from opening bidding is
justified
109. Prior written authority must be sought from the Board, or its
Committees to follow the RIB procedure.
110. Allow for at least two (2) weeks for submission of bids.
Exemption from tender procedures
22
111. Any request for exemption from tender procedures should be made
in writing to the relevant authority, accompanied by full details to
justify the exemption. The relevant Authority may approve
purchases without reference to tender procedures.
112. Where the goods and/or works required are of a specialised or
proprietary nature and there is no compatible alternative, or there is
a clearly established policy of standardisation (i.e. standardisation
of equipment or spares may require purchases from the original
supplier in order to be compatible with the existing equipment);
113. Where the goods and/or works required are proprietary in character
and obtainable only from one source of supply, or where essential
after-sales service cannot be obtained without purchase from one
source;
114. where tenders have been invited and no offers have been received
or it is evident that tenders are collusive or unreasonable; and
115. where urgency or the exigencies of the service prelude tendering.
The exigency or the cause for the urgency must be established and
placed on record in the application for approval.
Direct Procurement
116. Direct procurement is a method that limits competition. Any
decision to limit competition may also have the effect of limiting the
Authority’s ability to minimize costs, negotiate favourable terms and
conditions and take alternate course of action during disputes. This
method should be used only when it has been determined that other
competitive procurement methods will not fulfil the requirements of
the Authority.
23
117. Each direct procurement request must include a written justification
explaining why the direct procurement is necessary to satisfy the
needs of the user department.
118. The justification shall include the following information:
118.1. the unique performance factors required;
118.2. why these factors are required;
118.3. what other sources/brands have been considered, rejected
and why.
119. Direct appointment requests shall not be justified on the basis of:
119.1. a lack of advance planning;
119.2. concerns related to the amount of funds available (e.g.
funds will expire) to the Authority or activity for the
acquisition of goods or services; or
119.3. a previous non-competitive bid/contract in which the price
to the Authority was zero or substantially below fair
market price and the results of such contract caused the direct
procurement to be required on future contracts.
120. The drafting or application of specifications or bid requirements that
directly or indirectly limit the bidding to a single brand or single
source does not provide for full and open competition regardless of
the number of sources solicited and is prohibited. A “brand name
or equal” is a competitive process that allows bidders to propose
equivalent items.
121. A direct procurement is prohibited except in the following instances:
(a) the sole brand/product is unique and essential to the
Authority requirements, thereby precluding
consideration of a product manufactured by another
company, or;
(b) the sole brand/product is required to match other similar
product already in place and the use of an alternate
24
product would cause the Authority to incur substantial
additional costs;
(c) the sole brand/product is required for the immediate
preservation of the public health, welfare, or safety, or
the protection of Authority property and programs;
(d) the determination as to whether a procurement has been
adequately justified in writing for a sole brand award shall
be made by the Management Tender Committee.
122. Except where a contract is necessary for the immediate
preservation of the public health, welfare, or safety, or the protection
of Authority property and programs, a sole source procurement is
permissible only when a determination has been made and
approved in writing, that only one source exists for the required
product or service.
123. A requirement for a proprietary (or sole brand) item does not
necessarily justify sole source procurement, as more than one
potential bidder or supplier may exist who can supply that item.
124. The direct appointment request must clearly demonstrate:
124.1. that there is only one source or only one supplier that can
provide the goods or services in accordance with the
requirements of the Authority;
124.2. the existence of limited rights in data patent rights,
copyrights or secret processes makes the supplies or
services available from only one source (however the
mere existence of such rights or circumstances does not in
and of itself justify a sole source procurement).
125. The determination as to whether procurement has been adequately
justified in writing for a sole source award shall be made by the
Management Tender Committee.
126. Sole source procurement should satisfy any of the following
circumstances:
25
126.1. where the compatibility of equipment, accessories,
replacement parts, or service is the paramount
consideration;
126.2. where a sole supplier's item is needed for trial use or
testing;
126.3. procurement of items for resale;
126.4. procurement of public utility services.
Notwithstanding the above, BOCRA shall conduct negotiations, as appropriate, as to price, delivery and terms. Quotation Procurement Method: P50,001 to 100,000
127. Quotation is a simplified form of competitive purchasing.
128. Requests for quotations shall indicate the description and quantity
of the goods, as well as desired delivery time and place. Quotations
may be submitted by facsimile or in sealed envelopes.
129. The evaluation of quotations shall follow procurement principles laid
down in these Procedures. The terms of the accepted offer shall be
incorporated in a purchase order.
130. This method of procurement may be used:
130.1. where the liability to the Authority is within the stated
threshold;
130.2. for readily available off-the-shelf items;
130.3. for standard specification goods;
130.4. where there is insufficient time for a formal tender due to
emergency.
131. The minimum number of quotations requested shall be five (5) as
far as it is practicable and the minimum bidding period under this
procurement method shall be seven (7) days.
132. Two or more bidders with same ownership or business linkages
shall not be invited in a single procurement.
26
133. In this method, all purchase enquiries for which the liability to the
Authority falls within the stated thresholds must be sent to the
Procurement Unit for sourcing;
134. Purchase enquiries shall be sent by the user department for
common items and items identified in the procurement plan for
common procurement;
135. The invitation to send quotations and the list of prospective
suppliers shall be determined by the Procurement Unit;
136. Identical information shall be passed to all prospective suppliers
indicating amongst others, specifications and description of
supplies, works or services required as well as the required
response date;
137. Bids may be required to be sealed. Prospective suppliers need not
be invited at the ‘opening’ of the quotations;
138. Evaluation of the quotations received shall be done by the Procuring
Entity and approved as per the approved delegation of authority.
139. The User Department will, within the quotations validity period
complete a Purchase Requisition.
140. On completion of the Purchase Requisition, the Procurement Unit
will issue a Purchase Order complete with terms and conditions.
Supplies Quotations
141. The request for quotation shall include specifications and
descriptions of the items required, as well as the required delivery
date and conditions of contract may be necessary.
Works and Service Quotations
142. A written quotation will be requested by the Authority from a
minimum of five (5) likely and competent contractors/consultants.
143. Documents issued may include a Request for Quotations, Bills of
Quantities, Drawings, Specifications and Conditions of Contract as
may be necessary.
27
144. The Department concerned shall evaluate the quotations or
informal tender bids.
145. The HOD concerned with the relevant purchase, consulting
together with the other HODs team shall make a recommendation
to the DCE who shall then determine the award
146. Where five quotations have not been obtained and the DCE is
satisfied that it was not possible to obtain any more quotations, then
the DCE may resolve to take the decision to award the contract.
Micro Procurement 147. All acquisitions under this method shall be as per the stated thresholds.
148. Procurement under this method may be without competition.
149. Items procured under this method shall be of little value where the use
of competitive procurement methods does not offer any value or
benefit to BOCRA.
150. The procuring entity shall follow the required and necessary finance
and administrative procedures whilst using this method.
151. Nothing shall be procured under this method when the same item is
carried as a stock item where quantities are kept in-house and issued
out on a continuous basis.
152. Where this method is used, the selection of a supplier may be
conducted on a sole supplier basis.
153. This method of procurement shall be used:
153.1. for low value procurement;
153.2. where liability to the Authority is expected to be within
the stated threshold;
28
153.3. In the micro procurement method, the selection of a
supplier shall be conducted on a sole supplier basis without
competition and without the requirement of the following-
(a) bidding documentation; (b) written bid; and ( c) signed contract document.
153.4. The procuring entity shall obtain any supporting
document such as the original copy of an invoice or receipt
denoting the supplies procured and the price paid and
annotated with the name of the official procuring the
supplies.
153.5. The procuring entity shall be responsible for ensuring
that value for money is obtained to the extent practical
under this procurement method.
29
Emergency Procurement
154. An emergency condition is a situation which creates a threat to public
health, human lives or the environment such as may arise by reasons
of floods, epidemics, riots, equipment failures, or such other reasons
as may be determined by the affected department. The existence of
such an emergency condition creates an immediate and serious need
for supplies, services, or construction that cannot be met through
normal procurement methods.
155. Emergency procurement shall be limited to only those supplies,
services, or construction items necessary to meet the emergency.
156. The Restricted method or Direct Appointment used shall be selected
with a view to the end of assuring that the required supplies, services,
or construction items are procured in time to meet the emergency.
Given this constraint, such competition as is practicable shall be
obtained.
Bid Submission Methods
157. The procuring entity shall state the bid submission method to be
followed by bidders; and shall be any of the methods described below.
One-Envelope Bidding Procedure
158. In the One-Envelope bidding procedure, bidders submit bids in one
sealed envelope containing both the price proposal and the technical
proposal.
159. The envelopes are opened in public at the date and time stated in the
bidding document. The bids are evaluated, and following approval, the
contract is awarded to the bidder whose bid has been determined to
be the lowest evaluated substantially responsive bid.
Two-Envelope Bidding Procedure
160. In the Two-Envelope bidding procedure, bidders submit two sealed
envelopes simultaneously, one containing the technical proposal and
30
the other the price proposal, enclosed together in an outer single
sealed envelope.
161. initially, only the technical proposals are opened at the date and time
advised in the bidding document. The price proposals remain sealed
and are held in custody. The technical proposals are then evaluated.
162. the objective of the exercise is to allow for evaluation of the technical
proposal without reference to price. Bids of bidders who do not conform
to the specified requirements may be rejected as deficient bids.
163. following approval of the technical evaluation and at a date and time
advised by Authority the price proposals are opened in public. The
price proposals are evaluated, and following approval of the price
evaluation, the contract is awarded to the bidder whose bid has been
determined to be the highest ranked and substantially responsive bid.
164. The price proposal for the bids which are rejected as deficient shall be
returned unopened to the respective bidders.
Tender Administration Procedures
165. The following procedures will apply to all tenders for values in excess
of P1,000,000. The limits stated in table above will apply to determine
which tender committee will adjudicate the tender;
166. The HOD requiring the supply or services and after having ensured
that there has been documented prior budget approval for the tender
shall notify the Secretary of the relevant tender committee of the
intention to call a tender. Preparation of all tender documents shall be
the responsibility of the procuring department HOD.
167. The Secretary will notify the next meeting of the relevant tender
committee of all tenders that have been issued in the period since the
previous meeting.
31
Numbering and Description of Tenders
168. Tenders will be given a number, issued by the Procurement Officer
prior to the request for advertisement or invitation, and this number
must be stated on all the documents. The Procurement Officer will
maintain a register of all tender numbers issued, together with a brief
description of the goods or services required, issue and returnable
dates, type of tender, source of finance and any special conditions
attached thereto.
Instruction to Tenderers
169. The invitation/notice for tenders must state details of the required
supplies, services or works, the name and location of the officer from
whom the documents are available, the tender conditions and, in
particular, the following:
169.1. Closing date and time;
169.2. Period of validity of tender;
169.3. That no tender will be considered unless it is delivered by
the closing time;
169.4. the place specified in the tender documents;
169.5. Whether there will be a public opening and, if so, the
appointed time and place; and
169.6. That the Authority is not bound to accept the lowest nor any
tender.
Advertisements
170. Invitations for tenders shall be advertised in major newspapers with
wide circulation in Botswana and in publications and journals of other
countries where appropriate giving information on closing date and
time, period of validity of tender, and, where there will be a public
opening, the appointed time and place.
32
Tender Notice
171. Advertisement of public tenders must provide adequate time for the
tenderers to formulate, price and return their bids to the Authority.
172. As a minimum, the tender invitation notices shall contain the following;
173. place and times where purchase of tenders can be made;
140.1 a description of the nature of the supplies, services or
works required;
140.2 the names and contact details of persons to be contacted
for clarification or for collection of tender documents;
140.3 a statement that the company is not obliged to accept
neither lowest nor highest tender, nor to award the tender;
140.4 where appropriate, a brief description of all material
conditions or uncertainties that the bidders may need to be
aware of;
140.5 a statement regarding submission of response and
labelling of envelopes;
140.6 closing date and time for submission of tender proposals;
140.7 time and place of tender opening;
Period of Tender
174. The invitation to tender should clearly state the closing time, date and
place for tender delivery.
175. The bidding period specified in the tender documents shall be a
minimum of:
142.1 One (1) week for quotations.
142.2 Two (2) weeks for selective bidding.
142.3 Four (4) weeks for open domestic bidding.
142.4 Six (6) weeks for open international bidding.
142.5 Two (2) weeks for expression of interest, request for
information and pre-qualification tenders.
33
Extension of Time for Tendering
176. Any formal request for an extension to the tender period must be
received by the Authority in fourteen (14) days before the tender
closing date, and, if acceptable to the relevant Tender Committee,
extension shall be communicated to all tenderers.
Receipt of Tenders
177. The following provisions shall apply for receipt of tenders;
178. All bids received shall be registered, numbered, dated and kept secure
in the tender box until they are opened on the opening date.
179. The register shall indicate the name of the depositor, receiving officer,
date and time.
180. Each box shall have two locks requiring non-identical keys, one kept
by the Procurement Manager and the other by Security Division. The
tender box will be opened and cleared of tenders at the time stated in
the tender documents.
181. tender box shall be sealed at the closing time by the Procurement Unit.
182. The envelopes containing the tenders shall be opened by the HOD of
the requesting department in the presence of the tenderers and shall
announce the names of the tenderers and if relevant the amount of the
tender and the Procurement Officer will number the tenders and record
these details in a schedule.
183. The bid documents will be signed and dated by the HOD, Internal Audit
and the DCS, and the originals will be retained by the Procurement
Officer.
184. The copy of the bids will be sent for evaluation to the relevant
evaluation committee.
185. No tender bids shall be accepted after the closing date and time for the
tender.
34
Opening of Tender Proposals Received
186. Tenders shall be opened in accordance with the following procedures;
186.1. the time for the bid opening shall be the same as for the
deadline for receipt of bids or promptly thereafter, and
shall be announced, together with the place for bid
opening, in the invitation to bid.
186.2. bids shall be opened at the stipulated time and place.
186.3. bids shall be opened in public; bidders or their
representatives shall be allowed to be present (in person
or online, when electronic bidding is used).
186.4. the name of the bidder and total amount of each bid, and
of any alternative bids if they have been requested or
permitted, shall be read aloud (and posted online
when electronic bidding is used).
186.5. bids received after the time stipulated, as well as those not
opened and read out at bid opening, shall not be
considered.
186.6. the Procurement Unit shall convene a meeting of the
tender opening; where officials of the Procurement Unit
and the nominated members of the evaluation committee
will open the bids at the same date, time, and place as
specified in the tender notice or already communicated to
the bidders in writing.
186.7. at the start of the meeting a register of names of bidders
present shall becompleted.
186.8. at the tender opening meeting the tender deposit box shall
be unlocked and opened.
186.9. under no circumstances shall the bidders be required or
permitted to alter their tenders after tender closure.
35
186.10. any bidder who intends to withdraw shall be
requested to state their reasons for their withdrawal, in
writing.
186.11. all tenders received shall be kept under lock by the
Procurement Unit and issued to the evaluation team
as and when they are being evaluated.
186.12. when is completed, the tender documents should be
returned to the Procurement Unit for record keeping.
Confirmation of Availability of Funds
187. The Chief Executive or his nominated officer shall confirm the
availability of funds as guided by the budget before any
procurement may be approved
Management of Procurement Records
188. Records shall be maintained on all procurement proceedings for the
period specified in the Authority’s records management policy.
Clarification or alteration of tenders
189. Except as otherwise provided in this procedure, no tenderer shall
be permitted to alter his/her bid after his/her tender has been
delivered to the Authority. The Authority may, after the tenders are
opened, ask any tenderer for a clarification of his/her tender but may
not ask any tenderer to change the substance or price of his/her
tender.
190. Registered Buyers (“Buyers”) of a tender document may submit
questions in writing for clarification. Such questions must be
addressed to the Procurement Officer in writing and must be
received 14 days before the tender closing. Questions received
after the specified date shall not be responded to.
36
191. All questions submitted by Buyers will be consolidated into one
document (“the Clarification Document”), which will include the
questions and the corresponding responses. The sources of the
questions will not be identified. Clarifications of any matters, prior to
the closing date of the tender, relating to the tenders should be
communicated in writing to all prospective biddersat least five (5)
days before the tender closing date.
Evaluation Methods
192. The following evaluation methods shall be used by the Evaluation
Committee in evaluating bids.
193. The User Department shall identify the most appropriate evaluation
method for their requirement.
194. The User Department shall seek the approval of the
Board/Management Tender Committee if they wish to use an
evaluation method not listed hereunder.
Least Cost Selection (LCS) for Supplies and Works
195. The least cost selection – supplies and works method shall be used
to identify the lowest priced bid, which meets all the commercial and
technical requirements of the procuring entity.
196. Unless otherwise expressly stated in the bidding document, a bid
for the least cost supplies and works method shall require the use
of a single envelope submission method.
197. Recommendation shall be made for the award of the contract to the
bid which is:
197.1. Qualified
197.2. Technically compliant
197.3. Lowest priced; and
197.4. Responsive
198. The procedure for the least cost selection – supplies and works
evaluation shall be conducted in three stages as follows:
198.1. Stage 1: Preliminary Examination
37
198.2. Stage 2: Technical Evaluation shall only consider whether
the bids are responsive and qualified.
198.3. Stage 3: Cost evaluation of only technically compliant bids.
Least Cost Selection for Services
199. The Least Cost Selection – services evaluation method shall be
used to identify the lowest priced bid, which meets all the
commercial and technical service requirements of the procuring
entity.
200. The least cost selection – services method shall require the use of
separate sealed envelopes for submission of technical and financial
bids.
201. The procedure for the least cost selection – services method
evaluation of a technical bid shallbe conducted in three stages as
follows:
201.1. Stage 1: Preliminary Examination
201.2. Stage 2: Technical Bid evaluated against technical
evaluation criterea
201.3. Stage 3: Cost evaluation
Quality and Cost Based Selection (QCBS)
202. This method of evaluation can be used for services and works
tenders.
203. This method is based on the quality of the proposals and the costs
of the services to be provided. It is the method most frequently used
to select service providers especially consultants.
204. The bid submission method under this method may be one
envelope submission or two envelope submission.
205. Under QCBS a minimum qualifying mark for quality is established
in the tender.
206. Since under QCBS the cost of the proposed service is a factor of
selection, this method is appropriate when;
38
206.1. the scope of the work of the assignment can be precisely
defined and theTerms of Reference are well specified and
clear,
206.2. the Authority and the bidders can estimate with reasonable
precision the staff time as well as the other inputs and
costs required of the bidders.
206.3. QCBS is appropriate for assignments where the nature of
the investment is clear and well defined, no new solutions are
being considered, and the evaluation of the impacts from the
project are not uncertain or too difficult to estimate.
206.4. under QCBS, the technical and financial proposal shall
have a weight factor to indicate their relative importance.
206.5. the bid with the best technical solution gets the highest
technical points and the bid with the lowest price offer is
given the highest price score.
206.6. The bid with the highest combined weighted score is
considered the best evaluated bid and recommended for
contract award.
Qualification Based Selection
207. QBS is based on an evaluation of the quality of the proposal and
the subsequent negotiation of the financial proposal and the
contract with the bidder who submitted the highest ranked technical
proposal.
208. The bid submission method under this method may be one stage
two envelope submission, or any other submission method
approved the Management Tender Committee
209. Under QBS a minimum qualifying mark for quality is established in
the tender.
210. QBS is appropriate when;
210.1. the downstream impact of the project is so large that the
quality of the service becomes of overriding importance for the
outcome of the project.
39
210.2. the scope of the work and the terms of reference are
difficult to define because of the novelty or complexity of the
assignment, or the need to select among innovative solutions,
or due to particular physical, social or political considerations.
210.3. the assignment can be carried out in substantially different
ways such that cost proposals may not easily be comparable.
210.4. the introduction of cost as a factor of selection renders
competition unfair.
211. QBS should be adopted for assignment such as:
211.1. complex country sector and multidisciplinary
investments studies,
211.2. strategic studies in new fields of policy and reforms.
211.3. master plans, complex feasibility studies, design of
complex projects,
211.4. (d) assignments in which traditional consultants,
non-government organizations compete.
211.5. (e) non comparable outputs (e.g. management
advice, political studies)
212. Under QBS the Procurement Unit request submission of the
technical proposals and financial proposal in two separate
envelopes. The bidder who achieves the highest technical score
above the minimum technical qualifying mark is deemed as the best
evaluated bidder and recommended for contract award.
213. In the case above, the financial proposal should be kept safely until
the technical evaluation is complete and approved by Management
Tender Committee.
214. Only the financial proposal of the winning consultant is opened; the
others are returned unopened after negotiations with the winning
bidder are successfully concluded.
215. Since the TOR of assignments under QBS are generally less
defined and relatively more complex than QCBS, contract
negotiations with the winning bidder may be lengthy and
complicated. The Authority may decide to hire individual advisors to
assist in the most critical aspects of the technical evaluation.
40
Evaluation by fixed budget selection
216. Under the fixed budget selection evaluation method, the procuring
entity shall indicate its available budget, and evaluation shall be
considered as follows-
217. a bidder shall be required to provide, within the stated budget, the
best possible technical and financial bids, in separate envelopes;
and
218. the bidder with the evaluated technical bid of the highest quality,
which is within the stated budget, shall be recommended to be
awarded the contract.
219. The schedule of requirements (otherwise referred to, in the bid
documents, as the terms of reference), prepared by the procuring
entity, shall contain all the necessary detail to portray the sufficiency
of the budget for the performance, by a bidder, of the expected tasks
as shall be contained in the contract.
220. The procedure for the fixed budget selection evaluation of a
technical and financial bid shall be conducted in three stages, as set
out in Part III of the Fourth Schedule.
221. In this regulation ''fixed budget selection'' means an evaluation
method that recommends the bidder with the best technical bid
which is within the budget.
Evaluation by qualification selection
222. The qualification selection evaluation method shall be used for small
assignments, of costs as may be determined by the procuring and
disposing entity, for which the need for Copyright Government of
Botswana preparing and evaluating competitive bids is not justified.
223. The procuring entity, for the purpose of soliciting bidders under the
qualification selection method shall-
223.1. follow a two stage process;
223.2. prepare the terms of reference;
223.3. request bidders to supply expressions of interest and
information concerning their
41
223.4. experience and competence relevant to the
assignment; and
223.5. establish a short-list.
224. The procedure to be followed for the qualification selection
evaluation method shall be conducted in two stages, as set out
below:
Stage 1: evaluate the Expression of Interest Stage 2: Negotiate Cost with lowest bidder
225. In this regulation ''qualification selection'' means a method of
procurement used in the selection of a bidder based exclusively on
the quality of the proposal without reference to price.
Report on Evaluation
226. A detailed report on the evaluation and comparison of tenders
setting out the specific reasons on which the decision for the award
of the contract, or rejection of all tenders is based, should be
prepared by the Chairman of the evaluation Committee. If a
consultant has been employed to evaluate a tender, an individual
assessment and recommendation from the relevant Chairman must
accompany the consultant's report.
Extension of validity of tenders
227. In the event of the assessment of tenders not being within the period
of the validity of the tenders, an extension of time may be requested
from the tenderers. In these circumstances, the Authority should re-
negotiate the validity period. Those who are willing to extend the
period of validity of their tenders should neither be required nor
permitted to modify their tenders.
Types of Contracts
228. The bidding documents shall clearly state the type of contract to be
entered into and contain the proposed contract provisions
appropriate thereof.
42
AWARD OF CONTRACT
Adjudication
229. All recommendations, accompanied by relevant tender documents,
must be received by the members of the relevant committee at least
three working days before the meeting. The Chairman of the Tender
Committee may request the presence of any other officer whose
technical advice might be required. Officers who are not members
of the Committee may be asked, to withdraw before the final
recommendations are discussed for the award of the contract.
Tenders shall then be considered in the light of the information
received.
230. In making an award, the relevant Tender Committee shall act in the
Authority's best interest, being guided amongst other things by
considerations of economy, efficiency and standardisation.
231. The relevant Tender Committee may award or reject any tender or
part thereof; it need not accept the lowest tender if it is considered
not be in the Authority's interest to do so; details of the reasons for
not accepting the lowest tender should be recorded in the minutes.
232. The award of a contract should be made within the period specified
for the validity of tender to the tenderer whose tender has been
determined to be most advantageous to the Authority.
Notice of Award
233. Subsequent to the meeting where the award decision was taken the
Procurement Unit shall notify the User Department and post the
decision of the Management Tender Committee on the Authority
website.
234. In consultation with the User Department, the Procurement Unit
shall make the offer to the bidder awarded the contract within the
43
bid validity period, including terms and conditions where
applicable and the proposed supply contract, service agreement or
sale agreement.
235. All other bidders other than the winner will be notified of evaluation
outcome once a letter of acceptance or contract has been signed
by the winner.
Cooling off Period
236. The Authority shall allow a period of fourteen (14) working days after
announcing the award to permit the submission of any complaints
from any concerned registered bidder.
Rejection of all tenders
237. Tenders may be rejected for various reasons including where they
are not substantially responsive or there is lack of competition. If all
tenders are rejected, the Authority should review the reasons for the
rejection and consider revisions of the specifications or modification
of the project or both before inviting new tenders.
Contract Management
238. The contractor whose tender has been accepted shall be required
to execute a formal contract with the Authority in terms of the form
shown in the tender documents together with such other documents
to which reference may be properly made, in order to establish the
rights and obligations of the parties. The Authority retains the right
to include additional clauses or modify the contract that was issued
with the ITT as it deems fit.
239. In addition, in the case of contracts for building, civil engineering or
other engineering works, the successful tenderer shall be required
to provide a performance bond based on a percentage of the tender
amount as follows:
44
239.1. Tenders within the limit of Management Tender
Committeeare exempted.
239.2. For any tenders above authority of MTC the performance
bond will apply as follows:
239.3. Citizen owned contractors, consortiums and Joint Ventures
with a majority citizen ownership should raise 5% of the
contract/tender sum as performance bonds.
239.4. Non-citizen Contractors, consortiums, Joint Ventures and
minority citizen owned contractors should provide 10% of
the contract/tender sum as performance bonds.
240. In the case of consultancy projects of a substantive value, the
contractor shall be required to obtain professional indemnity
insurance.
241. The performance bond shall be entered into with an approved local
financial institution or insurance company registered with Non-
Banking Financial Institution Regulatory Authority. Such bond or
guarantee should be lodged with the Legal Counsel. If the
contractor fails to produce the bond and sign the formal contract
within 14 working days of notification or any other extended period
as may be granted by the Authority, then acceptance of his/her
tender may be cancelled at the discretion of the relevant Tender
Committee.
242. Originals of all approved contracts, together with the reports, should
be sent immediately after signature to the Legal Counsel and copies
filed with registry.
243. Following a decision by the relevant Tender Committee to accept a
tender, the Procurement Officer shall, except where the award is
subject to any other approval, (e.g. the Board), notify:
45
243.1. the successful tenderer, and shall also require him/her to
obtain such bonds, insurances etc., as may be required,
and
243.2. all unsuccessful tenderers once the successful bidder has
accepted,.
244. The award of the contract shall be effected by the issue of a Purchase
Order and by a formal letter of acceptance signed by the authorised
officers, incorporating the Contract/Tender Reference and the value of
the award.
NEGOTIATION
Negotiations for open, restricted and quotation biddings
245. No negotiations shall be held by the Authority with any bidder who
has tendered a bid to be considered under-
245.1. open bidding;
245.2. restricted bidding; or
245.3. quotations procurement,
until after a decision on the preferred bidder has been made and
approval of the negotiation document has been given by the
relevant committee.
246. The Evaluation Committee shall give an approval of the negotiation
document by-
246.1. producing an evaluation report containing a clear
recommendation for an award of contract, and
246.2. providing details of the nature of the proposed
negotiations, listing the points that are tobe clarified or
discussed and the objectives to be attained in the negotiation
document; and
246.3. having the accounting officer or his or her representative
approve the negotiation document prior to any negotiations
taking place.
46
247. The Authority shall be represented at the negotiations, held with the
preferred bidder, by at least three staff members who may negotiate
the terms of the contract, but such staff members shall not commit
the procuring entity to any contractual terms prior to confirming any
such terms with the accounting officer or his or her representative.
248. The staff representing the Authority, at the negotiations, shall submit
minutes of the meeting and report, in writing, to the relevant
Committee, on the success of the negotiations in attaining the
objectives set out on the negotiation document.
249. The relevant tender Committee may-
249.1. approve the outcome of the negotiations in their entirety;
249.2. request further negotiations on specific points; or
249.3. reject and cancel the negotiations in their entirety.
250. The results of any approved negotiations shall be incorporated into
the contract document.
251. No condition of award shall require the bidder, under any
circumstances, to-
251.1. undertake any further responsibility not specified in the
bidding documents; or
251.2. amend the bid price or otherwise modify the bid.
252. The following requests, communications or confirmation shall be in
writing-
253. request for amendments to the terms of a bid affecting the
responsibilities and tasks defined in the bidding documents; and
254. communication or confirmation of all subsequent and
supplementary discussions or meetings.
Negotiations under direct procurement method
47
255. The Authority shall not hold negotiations to consider a bid under the
direct procurement method unless a written bid has been received
and evaluated.
256. Approval of the negotiation document shall be given in accordance
with the following procedure-
256.1. the procuring entity shall issue a written bidding document
based on the standard documentation, modified, as
necessary, to suit the requirements, the value and the
circumstances of the particular procurement;
256.2. a bidder shall be required to submit a written bid in
accordance with the terms of the bidding document;
256.3. the Evaluation Committee shall evaluate the bid received
to determine its compliance with the bidding document and
undertake an analysis of value for money of such bid by:
256.3.1. comparing the bid price with prices previously
obtained through competitive procedures in respect
of similar procurement, where applicable, or a
breakdown analysis of current component costs for
base items, freight and insurance elements and
taking into account the circumstances and value of
the procurement;
256.3.2. the procuring entity shall provide details of the nature
of the proposed negotiations listing the points that
are to be clarified or discussed and the objectives to
be attained in a negotiation document; and
256.3.3. the Ministerial Committee shall obtain the Board's
approval of the negotiation document prior to any
negotiations taking place.
257. The Authority shall be represented, at the negotiations held with the
bidder, by at least three staff members who may negotiate the terms
of the contract, but such staff members shall not commit the
procuring entity to any contractual terms prior to confirming any
such terms with the Evaluation Committee.
48
258. The staff representing the Authority, at the negotiations, shall submit
minutes of the meeting for approval and report, in writing, to the
relevant Committee, on the success of the negotiations in attaining
the objectives set out on the negotiation document.
259. The Board or any of its committees may -
259.1. approve the outcome of the negotiations in their entirety;
259.2. request further negotiations on specific points; or
259.3. reject and cancel the negotiations in their entirety, and shall
give reasons for the action taken.
260. The results of any approved negotiations shall be incorporated into
the contract document.
Reservation and Preference
261. BOCRA shall comply with all government directives on procurement
and disposal reservations and price preference.
De-briefing
262. Each tender shall specify that any bidder who wishes to ascertain
the grounds on which its bid was not selected, should request an
explanation from the Authority. The Authority shall promptly provide
an explanation of why such bid was not selected, either in writing
and/or in a debriefing meeting, at the option of the Authority. The
requesting bidder shall bear all the costs of attending such a
debriefing.
Complaints Process
263. Complaints by aggrieved bidders shall be addressed to the
Authority in writing.
49
Contract Termination
264. The Procurement Unit or whoever believes that a contract should
be terminated, shall submit to the relevant Tender Committee a
recommendation for termination of contract.
264.1. the recommendation shall state:
264.2. the name of the provider;
264.3. the nature of the contract;
264.4. why termination is recommended;
264.5. remedial actions taken before, if any;
264.6. the contractual grounds for termination;
264.7. the costs, if any, which will be payable by the Authority.
265. Where a contract is terminated, the Authority shall inform the
contractor involved.
Prohibition of BOCRA Officers
266. All BOCRA officers, employed on a full time or temporary basis, are
prohibited from tendering for any construction, supply or service
contract with BOCRA.
50
Procedures to be Confidential
268. It is essential that information relating to the examination,
clarification and evaluation of tenders and recommendations
concerning awards are not communicated at any time to persons
other than those officially concerned with these procedure
Variation of Contracts
269. Contracts may not be extended, assigned, sub-let or have their
conditions materially altered without the approval of the relevant
tender committee.
Retroactive Approvals
270. The Board may resolve to issue a retro-active approval of any bid
issued or invitation to tender where it is satisfied that a procuring or
disposing entity was required to proceed with the bid or invitation
due to an urgent requirement or emergency arising from special
circumstances.
51
Procurement of goods and services (fin 24)
271. This section covers the ordering of goods and services both of a
capital and revenue nature. A Purchase Requisition must be
approved by the HoD before the Purchase Order can be raised.
Purchase Orders must be used for all goods and services, with the
exception of regular services such as telephone and electricity
charges. Purchase Orders are not required where formal contracts
are being executed and for petty cash purchases.
272. This section must be read in conjunction with the financial regulation
relating to Tender Regulations.
Purpose
273. The purpose of this regulation is to outline the procedures relating
to the procurement of goods and services and the documentation
used in the process.
Purchase Requisitions
274. The Purchase Requisition Form must be originated by the
Department requiring the items. The details of the expenditure
approved for which the items are purchased, and the budgetary
checks for availability of funds shall be performed by the finance
department. The requisition shall then be approved by the Head of
the Department requesting the items.
Purchase Orders
275. The Procurement Officer shall then raise a Purchase Order, after
approval of the purchase and will enter the relevant Purchase Order
number on the Requisition Form. A copy of the Purchase
Requisition shall be retained by the Procurement Officer, and one
copy shall be attached to the resulting Purchase Order that is sent
to the Finance Department.
52
276. Purchase Orders must contain the prices and/or rates that are
agreed upon with the supplier, as well as the quantity and detailed
description of the goods or services ordered.
277. The second and third copy of the Purchase Order must clearly
indicate the account(s) to be charged and, where the expense is
chargeable to a programme, project, any other organisation or an
individual, the details of the project/programme references etc.
278. Purchase Orders for capital expenditure shall not be issued until the
DCS has committed funds for such expenditure, even though such
items are included in the budget approved by the Board.
279. The purchase orders in respect of any items which fall under tender
procedures shall only be raised once the relevant tender procedures
are duly completed and shall be in full agreement with decisions
made by the relevant tender committee.
280. The person signing the Purchase Requisition should not be a
signatory of the resultant Purchase Order.
281. Purchase Orders may not be split to circumvent the above authority
limits.
282. No officer may issue and sign a Purchase Order in a situation where
he/she is the direct beneficiary. In such circumstances the order
must always be signed by another officer authorised to do so.
53
Other Controls
283. Purchases of goods and services shall be at the best price and right
quantities and all orders must be placed by a designated officer in
writing.
284. The designated officer shall maintain an up-to-date record of the
suppliers of goods and services and their current prices, and quality
of goods or services provided.
285. Unissued Purchase Order Books shall be kept in the safe custody
of the Chief Administrative Officer and may only be issued to officers
who have the authority to sign. Any officer who requisitions a new
order book takes responsibility for that book from the time that it was
signed for. All Purchase Orders are numbered sequentially. The
orders are prepared in triplicate. The top copy goes to the supplier,
the second copy is attached to the supplier invoice, and the third
remains in the order book.
286. Once the orders are dispatched to the supplier, the second copy
should be filed in an "order outstanding" file, in numeral sequence,
by the designated officer, until the goods are received. Once goods
are received, the second copy of the Purchase Order together with
the supplier invoice and the Goods Received Note shall be handed
over to the Accounts for checking and updating the creditor’s ledger.
Controls over Goods Received
287. Goods Received Notes (GRN) must be completed for all goods
received by the Administration Officer certifying that the goods
received are in agreement with the orders placed.
288. In the case of services, the staff member who initialled the order for
the service shall sign the invoice to confirm that the service ordered
has been received to his/her satisfaction.
54
55
Disposal Regulations
289. BOCRA assets will be disposed of in a responsible and
accountable manner as a result of being:
289.1. surplus to requirements;
289.2. technically or commercially obsolete;
289.3. beyond their economic life span;
289.4. beyond economic repair.
Policy Objective
290. To provide a systematic and accountable method of monitoring and
controlling the disposal of the Authority assets.
291. To protect the Authority from any conflict of interest, either potential
or real, which may arise between the Authority and any persons or
groups purchasing such assets.
292. To realise residual value from the disposal of assets, where
applicable.
293. To ensure disposal of assets achieve the best value for money and
is conducted in an efficient, effective, transparent and adequately
documented and approved manner.
294. To ensure assets sold or otherwise disposed of are correctly written
off the assets records and that appropriate assets stewardship and
balance sheet valuation can be verified.
Initiation of Disposal
295. Any disposal shall be commenced by the Procurement Unit.
296. All assets must be adequately decommissioned prior to sale or
other disposal. Such decommissioning may involve deleting files
and programs from computer hard drives with particular attention to
56
potentially sensitive files and other information or programs licensed
to the Authority and/or ensuring that assets are completely safe and
uncontaminated, with all potentially hazardous materials or
substances removed or made safe in accordance with current
Occupational Health and Safety guidelines before exposure to the
public.
Authorization
297. The relevant committee must approve items to be disposed in line
with the authorisation limits for procurement for the Authority.
298. The disposal method shall be approved by the Chief Executive or
relevant approving authority prior to the disposal of an asset or
aggregate of assets.
Disposal Methods
299. In this Policy Statement “Asset” does not include debtors and
collections.
300. Prior approval of the Management Tender Committee is required for
use of any disposal method not stated in these procedures.
301. The Authority shall select one of the following disposal methods-
301.1. Sale to BOCRA staff
301.2. public auction;
301.3. sealed bidding;
301.4. direct negotiations;
301.5. trade-in;
301.6. transfer to another procuring and disposing entity;
301.7. conversion or classification of assets into another form; or
301.8. destruction of assets.
302. The Authority shall, when selecting a disposal method for an asset,
take into account the following factors-
302.1. the potential market value of the asset;
57
302.2. the volume of the asset;
302.3. the number and location of potential bidders;
302.4. the location of the asset;
302.5. any restrictions on export or end-users;
302.6. national security or public interest issues;
302.7. legal or human rights issues;
302.8. environmental considerations;
302.9. the trade-in value of the asset; and
302.10. the possibility of transferring the asset to another
procuring and disposing entity.
Conditions for use of public auction
303. Disposal by public auction shall be used where there is a high
volume of low value assets for which there is a large number of
potential bidders and there are no conditions, end-user or export
restrictions attached to the sale.
304. Disposal by public auction may also be used where-
304.1. there is a large number of potential bidders for
unusual or high value assets; or
304.2. there is a variety of assets to be disposed of in one
location and an onsite auction could be arranged to
avoid transport costs.
Conditions for use of public bidding
305. Disposal by public bidding may be used-
305.1. for high-value or unique assets;
305.2. for assets located in remote areas;
305.3. for assets that have a geographically dispersed potential
market;
305.4. for assets with end-user or export restrictions attached to
their sale; or
305.5. where conditions need to be attached to the sale, or post
bid negotiations may be required.
58
Conditions for use of direct negotiations
306. Disposal by direct negotiations may be used where-
306.1. the market is limited and a single buyer who is willing to
pay the reserve price has been identified;
306.2. national security, public interest, legal or human rights
issues or environmental considerations are served by selling
to a particular company, group or individual;
306.3. a potential buyer is the tenant, occupier or the asset at the
time the decision to dispose of the asset is made and it would
be reasonable to give that person or body first option to buy
the asset at the market rate;
306.4. assets are located on a potential buyer's premises on a hire
or free use basis and it would be reasonable to give that
person or body first option to buy the asset at the market rate.
307. A detailed justification for the use of direct negotiation shall be
approved by the Board of the competent committee prior to the
commencement of disposal proceedings.
Conditions for use of trade-ins
308. Disposal by trade-in may be used where the trade-in of surplus
assets to offset the purchase price of new items provides a
convenient, economic and efficient way to upgrade equipment.
309. Notwithstanding the provisions of sub-regulation (1), trade-in shall
not be used where it would prevent the operation of open and fair
competition or reduce value for money in the procurement and
disposal process.
310. Conditions for use of disposal by transfer to another procuring and
disposing entity
311. Disposal by transfer to another procuring and disposing entity may
be used where another procuring and disposing entity is able to
make further use of the asset.
59
312. The cost of disposal by transfer from one procuring and disposing
entity to another shall be agreed between the two procuring and
disposing entities concerned.
313. The transfer referred to in sub-regulation (1) may be at no cost if it
is uneconomical to charge for the asset.
314. Conditions for use of disposal by conversion or classification of
assets into another form
315. Disposal by conversion or classification of assets into another form
may be used-
315.1. on grounds of national security or public interest, legal or
human rights issues or
315.2. environmental considerations; or
315.3. where the asset has no residual value in its current form,
but some sale value can be
315.4. obtained through conversion or classification into another
form.
Conditions for use of disposal by destruction of assets
316. Disposal by destruction of assets is the least favoured method of
disposal, but may be used-
316.1. on the grounds of national security or public interest, legal
or human rights issues or
316.2. environmental considerations; or
316.3. where the asset has no residual value and it cannot be
transferred to another procuring and disposing entity or
converted or classified into another form with any value.
60
Sale to Authority staff 317. Any reserve price on the assets shall be stated clearly.
318. The Procurement Manager may in consultation with the Chief
Executive decide that certain category of such fixed assets such as
furniture, office equipment and vehicles will initially be open to staff
through direct offer, auction or sealed tender subject to a
reasonable reserve price.
319. Such items shall clearly be for personal and not business or
commercial use.
Public auction
320. Any submission to the Board or any of its committees in respect of
disposal by public auction shall be made in such format as the
Board may prescribe.
321. When undertaking disposal by public auction, the procuring and
disposing entity shall appoint a professional auctioneer to conduct
the process on its behalf.
322. Any valuation of assets to be disposed of by public auction may be
done by the auctioneer, who will be responsible for disposing of the
assets.
323. Bids relating to assets for disposal by public auction shall be
solicited through a notification of public auction using such format
as the Board may prescribe.
324. No formal bidding documents shall be issued in relation to assets
for disposal by public auction, and any additional information, such
as an auctioneer's catalogue shall be for information purposes only
and shall not be considered a bidding document.
325. Bids in relation to assets for disposal by public auction shall be oral
and the procedure for bidding shall be specified by the auctioneer
in accordance with normal auction practices. There shall be no
minimum bidding period.
61
326. Bids, at a public auction, shall be evaluated on the basis of price
only.
327. Negotiations shall not be permitted under the disposal by public
auction method.
328. The contract shall be awarded to the bidder offering the highest
price, as determined by the auctioneer, and the successful bid shall
be declared at the auction.
329. A written contract document shall not be required under disposal by
public auction.
330. The successful bidder shall be required to pay at least 50 per cent
of the contract price, immediately after the award of contract.
331. The successful bidder shall be required to pay the balance of the
contract price within five days of the award of contract.
332. Where a bidder fails to make payment the contract may be
terminated.
333. The disposal process followed for public auction, shall be based on
standard documentation approved by the Board.
Appointment of an auctioneer
334. When undertaking disposal by public auction, the procuring and
disposing entity shall appoint a professional auctioneer to conduct
the process on its behalf, and such auctioneer shall be licensed.
335. An auctioneer shall be appointed using the appropriate
procurement method for services, which method shall take into
account such criteria as-
335.1. the auctioneer's commission rates;
335.2. the locations of the auctioneers and transport costs for the
assets to be disposed of;
335.3. the auctioneer's facilities;
335.4. the auctioneer's ability to achieve optimum returns;
335.5. the past performance and integrity of the auctioneer;
335.6. the viability of the auctioneer's business; and
335.7. the provision of any performance bond in the format and
form required by the procuring and disposing entity
62
336. The appointment of an auctioneer shall be confirmed through a
written contract, which shall include the following-
336.1. the commission rate and any other fees payable to the
auctioneer and the payment terms;
336.2. the method and timing for payment of proceeds to the
procuring and disposing entity;
336.3. responsibility for and payment of any transport costs,
including costs for any assets
336.4. returned unsold;
336.5. the date on which, or the period within which, the auction
will be held; and
336.6. the information and any conditions of sale to be included in
the auction notice,
336.7. auctioneer's catalogue or any similar document.
337. The procuring and disposing entity shall ensure that a receipt is
received for all assets delivered to, or collected by, the auctioneer.
63
Sealed Public bidding
339. Any submission to the Board or any of its committees in respect of
disposal by public bidding shall be made using such format as the
Board may stipulate.
340. Bids shall be solicited by the publication of a public invitation notice
using such format as the Board may prescribe, indicating that
interested bidders may obtain the bidding document from the
procuring and disposing entity.
341. Bidding documents may be sold under public bidding: Provided that
the cost of the documents shall be calculated to cover only the cost
of copying and issuing the documents and shall not include any
element of profit for the procuring and disposing entity.
342. The minimum bidding period under public bidding shall be 10 days.
343. The procuring and disposing entity shall require the bidder to submit
sealed, written bids.
344. The bid opening process shall be a public bid opening in
accordance with the provisions of these Regulations.
345. Evaluation based on price only shall be the preferred evaluation
methodology under public bidding.
346. Evaluation based on price and other factors may be used, in public
bidding, in accordance with these Regulations.
347. Post-bid negotiations may be undertaken under public bidding in
accordance with the conditions and procedures in these
Regulations.
348. Contract award shall be by a decision of the Board or its competent
committee in response to a recommendation from the procuring and
disposal entity.
349. Contract placement shall be by way of issue of a contract document
to the successful bidder
350. The standard documentation used and disposal process followed
for public bidding shall be in accordance with such format and
process as the Board may prescribe.
64
Direct negotiations
351. The disposal process under direct negotiations shall follow the
disposal process set out in sub-regulations (2) to (13) of this
regulation.
352. Submissions to the Board or any of its committees, in respect of
disposal by direct negotiations, shall be made in such format as the
Board may prescribe.
353. A valuation shall always be obtained where an asset is to be
disposed of through direct negotiation.
354. A bid, under direct negotiations, shall be solicited through the issue
of a written
355. bidding document which shall be based on the appropriate standard
document.
356. There shall be no minimum bidding period for disposal by direct
negotiation.
357. The procuring and disposing entity shall require the bidder, under
direct negotiations, to submit a sealed, written bid.
358. The bid opening process under direct negotiation shall be a non-
public bid opening in accordance with these Regulations.
359. Evaluation based on price only shall be the preferred evaluation
methodology under direct negotiation.
360. Evaluation based on price and other factors may be used, under
direct negotiation, in accordance with these Regulations.
361. Post-bid negotiations may be undertaken under direct negotiations
in accordance with these Regulations.
362. Contract award shall be by a decision of the Board or its competent
committee in response to a recommendation from the procuring and
disposal entity.
363. Contract placement shall be by way of issue of a contract document.
364. The standard documentation used and the disposal process
followed for direct negotiations shall be in accordance with such
format as theBoard may prescribe.
65
Trade-in
365. The Authority shall obtain a valuation of the asset where the asset
is to be disposed of through trade-in.
366. Under disposal by trade-in, the disposal process shall be an integral
part of the relevant procurement process.
367. The Authority shall, during the disposal process, use the appropriate
procurement method in accordance with the provisions of these
regulations.
368. Provided that the estimated trade-in value shall not be deducted
from the estimated value of the procurement in selecting the
appropriate procurement method.
369. The Authority shall obtain an approval from the Board or any of its
committees to include the trade-in requirement in the procurement
prior to the commencement of the procurement proceedings.
370. The bidding document and any invitation notice, where an asset is
to be disposed of through trade-in, shall clearly state that the
procurement involves a trade-in arrangement.
371. The bidding document, where an asset is to be disposed of through
trade-in, shall be drafted using the appropriate procurement
document issued by the Board.
372. The advertisement of the opportunity, issue of solicitation
documents, bidding period and the receipt and opening of bids,
where an asset is to be disposed of through trade-in, shall be in
accordance with these Regulations.
373. The evaluation of bids where an asset is to be disposed of through
trade-in, shall be done in the appropriate methodology for the
procurement requirement.
374. The trade-in value offered for the asset to be disposed of through
trade-in shall be included in the financial evaluation only in the
manner stated in the bidding document.
66
375. The evaluation of the trade-in offers shall be clearly stated in the
evaluation report.
376. Where factors, other than price, need to be taken into account in the
disposal process, disposal by trade-in shall not be used.
377. Negotiations may be permitted in accordance with the relevant rules
on procurement.
378. An award of contract shall be in accordance with the relevant rules
on procurement.
379. The contract document shall be in the form of the procurement
document issued by the Board.
380. Responsibility for contracts management of the procurement
contract and the disposal element shall be clearly defined within the
procuring and disposing entity, and where separate staff are
responsible for each element, they shall work together, as
appropriate.
381. The standard documentation used and disposal process followed in
trade-in shall be in accordance with such format as the Board may
prescribe.
Transfer to another procuring and disposing entity
382. Submissions to the Board or any of its committees in respect of
disposal by transfer to another procuring and disposing entity shall
be made in such format as the Board may prescribe.
383. Where disposal is by transfer to another procuring and disposing
entity, the arrangements for the transfer shall be discussed and
agreed between the two entities.
384. The agreement shall include-
384.1. the cost to be paid by the beneficial entity, which cost may
be none if it is uneconomic
384.2. to charge for the asset;
384.3. any subsidiary, linked assets to be included in or excluded
from the transfer;
384.4. the date for the transfer;
384.5. responsibility for transporting the asset;
67
384.6. the hand-over procedure and any documentation to be
transferred;
384.7. the mechanism and date for payment for any cost; and
384.8. who is responsible for any legal obligations linked to the
asset.
385. The arrangements for the transfer to another procuring and
disposing entity shall be confirmed in writing using such format as
the Board may prescribe and such arrangements shall be approved
and signed by the accounting officers of both procuring entities.
386. The recipient procuring and disposing entity shall issue an
authorised receipt of the assets to the originating procuring and
disposing entity.
387. The standard documentation used and disposal process followed
for transfer to another procuring and disposing entity shall be in
accordance with such format and process as the Board may
prescribe.
Destruction of assets
388. Submissions to the Board or any of its committees in respect of
disposal by destruction of assets shall be made using such format
as the Board may prescribe.
389. Where disposal is by destruction of assets, the procuring and
disposing entity shall either-
389.1. undertake the destruction itself; or
389.2. identify the competent authority or an appropriate provider
to undertake the destruction.
390. The Authority shall obtain approval from the accounting officer prior
to the destruction of an asset being undertaken.
391. The method of destruction of an asset under disposal by destruction
of assets shall be appropriate to-
391.1. the assets being disposed of; and
391.2. the circumstances giving rise to the destruction, including
any grounds of national security or public interest.
68
392. A signed certificate of destruction shall be obtainedfrom the
authorised official within the procuring and disposing entity,
competent authority or provider and shall be kept as part of the
record of disposal proceedings.
Valuation of assets
393. Assets may be valued by a professional valuer before disposal.
394. An independent auctioneer may be engaged to carry out asset
valuation where the cost of valuation can be recouped from the
proceeds of the sale.
395. Where the items of minimal value are due for disposal, the
Procurement Unit will ascertain the book value of the items and
come with a nominal value which will be used as the reserve price.
396. Notwithstanding the above, the reserve value should not be based
on the book value only and should among other things be based on
what the assets can fetch from the market.
Payment for Assets
397. Payment for assets disposed of must be made by cash or bank
guaranteed cheque, payable to the Authority.
PROCUREMENT PLANNING
398. A procurement plan should be produced annually. The plan should
indicate:
398.1. What the Authority intends to buy;
398.2. The procurement method to be used;
398.3. The timelines of procurement; Approval, floating, closing,
evaluation, report, adjudication.
398.4. The estimated cost;
399. Where a tender process is to be conducted, the planning process
should produce a project plan that:
399.1. Identifies the outcomes to be achieved, including time and
costs, and risks to be managed;
69
399.2. Details the resources required and strategies
recommended to manage the project;
399.3. Allocates responsibilities;
399.4. Sets out the procedures for project administration and
control; and
399.5. Establishes a time frame for obtaining approvals.
Preparing Tender Documentation
400. The tender documentation will be compiled by the Procurement Unit
in consultation with the relevant user department and will require
Management Tender Committee approval prior to public release.