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Improving the Efficiency of Public Procurement in

Tanzania

Presentation in the 4th EAPF, Kigali Rwanda

Public Procurement Regulatory AuthorityP.O. Box 49Tel: +255 22 2121236/7, Fax: +255 22 2121238Email: ceo@ppra.go.tzWebsit: www.ppra.go.tzDar-es-Salaam Tanzania

WelcomeKaribuni

Overview of the Presentation

The journey The need to improve efficiency Recent efforts to improve efficieny Challenges Way forward

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THE JOURNEY- IS IT ACHIEVABLE????

Yes it is achievable as long as every PE aims to achieve Vfm

THE JOURNEY- IS IT ACHIEVABLE ????

216 PEsTshs 2.96

trillion

264 PEsTshs 3.10

trillion

315 PEsTshs 4.52

trillion

The need to improve efficiency – High Expenditure in Public Procurement

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39%

50%55%

73%68%

49%

59%

69%

80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2006/07 2007/08 2008/09 2009/10 2010/11

AVER

AGE

COM

PLIA

NCE

LEV

ELS

ACTUAL TARGET

TREND OF PROCURING ENTITIES COMPLIANCE WITH PUBLIC PROCUREMENT ACT AND ITS REGULATIONS

SINCE FINANCIAL YEAR 2006/07

The need to improve efficiency – Low levels of Compliance

Efforts to increase efficiencyMany efforts are being undertaken – only few shall be highlighted in this presentation

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83

57

57

42

56

68

26

79

79

66

31

32

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0 20 40 60 80 100

Establishment and composition ofTender Board

Establishment and composition of PMU

Functioning of AO, TB and PMU

Preparation of Annual ProcurementPlan

Approvals

Advertisement of bid opportunities

Publication of aw ards

Time for preparation of bids

Method of Procurement

Use of standard tender documents

Records keeping

Quality Assurance

Contract implementation

Series1AR

EAS

OF

FOC

US

OVERCOMING AREAS OF NON-COMPLIANCE

DIVISION OF CAPACITY

BUILDING AND ADVISORY SERVICES

Research and Documentation

Section

Guidelines Development and

Dissemination Section

Training and Advisory Services

Section

Finance and Accounts Section

Administration and Human Resources

Section

DIVISION OF FINANCE AND

ADMINISTRATION

Contract and Performance

Audits Section

Investigations and

Procurement Audits Section

DIVISION OF MONITORING AND

COMPLIANCE

Data Base Administration

Section

DIVISION OFINFORMATION TECHNOLOGY

BOARD OF DIRECTORS

CHIEF EXECUTIVE

LEGAL UNITINTERNAL AUDIT UNIT

PROCUREMENT MANAGEMENT

UNIT

Systems and Network

Administration Section

Old Structure 51 staff

Expanding PPRA Outreach

DIVISION OF INFORMATION AND COMMUNICATION

TECHNOLOGY

DIVISION OF CAPACITY BUILDING

AND ADVISORY SERVICES

Research and Documentation

Section

Guidelines Development and

Dissemination Section

Training and Advisory Services

Section

Finance and Accounting Section

Administration and Human Resources

Section

DIVISION OF CORPORATE

SERVICES

Contract Performance

Section

Monitoring and Evaluation

Section

DIVISION OF MONITORING

AND COMPLIANCE

Systems Development and

Maintenance Section

BOARD OF DIRECTORS

CHIEF EXECUTIVE OFFICER

INTERNAL AUDIT UNIT

Systems Support and Administration

Section

PROCUREMENT MANAGEMENT UNIT

Planning and Coordination

Section

DIVISION OF LEGAL AND PUBLIC AFFAIRS

Public Relations Section

Legal and Secretariat Affairs Section

Investigation and Anti-Corruption

Section

Zonal Services Section

NORTHEN ZONE

LAKE ZONE

COAST ZONE

CENTRAL AND SOUTHERN ZONE

New Structure-Total staff 142

Expanding PPRA Outreach

MwanzaArusha

Iringa

D’Salaam

PPRA TO REACH LGAs – opening of

zonal offices

-Submits copies of Call Off Orders

to PPRA and GPSA

-Places and

pays for Call

Off Order

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SYSTEM OF PROCUREMENT OF COMMON USE ITEMS AND SERVICES – REDUCED PROCUREMENT

TRANSACTION COSTS

PROCURING ENTITY

SUPPLIER/SERVICE PROVIDER

PPRA

GPSA

-Compiles a list of CUIS-List of CUIS

approved

-Subm

its a

list

of CU

IS to

GPSA

-Aggregates all CUIS from PEs-Decides on the

appropriates Procurement Method

Invi

tes T

ende

rsEn

ters

into

Fr

amew

ork

Agre

emen

t with

wi

nner

s

-Prepares and Maintains CUIS and Suppliers Data

Base-Maintains Data on placed Call Off orders as

received from PEs-Subm

its a

list of

Framew

ork

Agree

ments

-Supplies and paid

for the call off

order

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Efficiency in sharing procurement information to the public

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Efficiency in sharing procurement information to the public

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Efficiency in sharing procurement information: opportunities and

awards

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Efficiency in sharing procurement information: submission of

procurement information by PEs to PPRA

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Efficiency in sharing procurement information: AMONGST

PROCUREMENT PROFESSIONALS

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Efficiency in procurement transactions – e-procurement – Tanzania has done a feasibility study and is currently

working on issues relating to system selection, hosting, infrastructure, application, operation and maintenance, as

well security

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Amendments to the Act –Notable Amendments to Complaints Review

Mechanism

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Bidders complaint

HEAD OF PE

Presented within 28 days from the day of the event

leading to complaint

Copy of complaints submitted to PPRA

and the RC

Bef

ore

the

sign

ing

of

cont

ract

Conduct investigations

Decision within 30

days

Copy of decision

submitted to PPRA and

the RC

Suspend procurement proceedings

PPRA-if not satisfied with the decision or after the expiry of a 30 days period

PPAA-if not satisfied with the decision of PPRA or after the expiry of a 30 days period

Aft

er s

igni

ng o

f co

ntra

ct

System for Procurement Complaints Review

TOTA

L 10

5 D

AYS

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Bidders complaint

HEAD OF PE

Presented within 28 days from the day of the event

leading to complaint

Copy of complaints submitted to PPRA

and the RC

Bef

ore

the

sign

ing

of

cont

ract

Conduct investigations

Decision within 14

days

Copy of decision

submitted to PPRA and

the RC

Suspend procurement proceedings

PPAA-if not satisfied with the decision of PPRA or after the expiry of a 30 days period

Aft

er s

igni

ng o

f co

ntra

ct

System for Procurement Complaints Review

TOTA

L 59

DA

YS

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Amendments to the Act –Notable Amendments: Integration of

procurement plan with budgeting process

Challenges Failure by Some PEs to utilize the

opportunity for reducing procurement transaction cost e.g use framework contracts for procurement of CUIS and advertize in the TPJ and Authority website

Corrupt and fraudulent practices in procurement process despite the effort being spent to prevent and combat them

Challenges Commercial operators such as suppliers

and service providers, as well as CSOs have not effectively used the opportunities availed by the Authority to build their capacity

Commercial operators such as suppliers and service providers, as well as CSOs have not effectively used the opportunities availed by the Authority to build their capacity

Way Forward PEs to be encouraged to do procurement

capability review assessment and allocate resources for capacity building of their staff

Action to be taken against PEs not demonstrating commitment to reduction of procurement transaction cost

Commercial operators should be sensitized to register as appropriate and take part in improving their capacity to withstand the competitive procurement market in the country as well as in the region

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Way Forward The CSOs should be empowered to

actively participate in advocacy of good governance in public procurement and monitoring of process and outcome in delivery of services

The fight against fraud and corruption in public procurement should be intensified by more collaborative initiatives among key stakeholders

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WE can all overcome

Asanteni kwa Asanteni kwa kunisikilizakunisikiliza

MwishoMwisho