PART VI

METHODS OF PROCUREMENT AND THEIR CONDITIONS

FOR USE

Selection of 63.-(1) Except as otherwise provided for by these

a method of Regulations, a procuring entity engaging in procurement of
procure
ment
goods, works, non-consultant services or public private
partnership such as build, operate and transfer, build, own,
operate and transfer, turnkey projects, and disposal of public
assets by tender shall do so by means of competitive tendering
proceedings.
(2) In the procurement of goods, works, non-consultant
services, public private partnership or turnkey project, a
procuring entity may use a method of procurement other than
competitive tendering proceedings only pursuant to Regulation
70, 71 or 72.
(3) If the procuring entity uses a method of procurement

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pursuant to sub-regulation (2), it shall include in the record

required under Regulation 11 a statement of the grounds and
circumstances on which it relied to justify the use of that method.
(4) A procuring entity may select an appropriate
alternative method of procurement as provided for in Regulation
72, 73 or 76 in the case where tendering would not be the most
economic and efficient method of procurement and the nature
and estimated value of the goods, works, or services permit.
Pre-
qualifica- 64. Before inviting open tenders a procuring entity shall
tion consider pre- qualifying suppliers, contractors or service
providers further to Regulation 15 so as to identity those who
possess the necessary resources and competence for completion
of the eventual contract.
International 65.-(1) In international competitive tendering or
competetive
tendering
otherwise known as international competitive bidding, a
procuring entity shall invite suppliers, contractors, service
providers or asset buyers regardless of their nationality, by means
of a tender notice that shall be advertised nationally and
internationally to submit priced tenders for goods, works or
services or purchase of public assets.
(2) This form of tendering shall be used in all cases where:
(a) payment may be made in whole or in part in foreign
currency;

(b) the estimated cost of the goods or works exceeds the

threshold for such tenders provided in the Third Schedule
to these Regulations; or

(c) it is desired to attract tenders from the widest range of

suppliers, contractors or service providers, regardless of
the estimated value of the goods or works to be procured.
(3) Under the international competitive tendering the
procuring entity shall advertise the invitation to tender in the
form of the specific procurement notice or specific disposal
notice for any particular procurement or disposal contract, in
the Authority's web site and journal, and at least one
newspaper of wide and general circulation in Tanzania and in any
international newspaper as may be directed by an appropriate
tender board.
(4) For large or specialised contracts, the appropriate
tender board may additionally require that the invitation to tender
advertised in well - known technical magazines or trade publications,
or in newspapers of wide international circulation.

(5) The notification of the invitation to tender shall be

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done at the same time as the advertisement in the local

newspapers.

(6) Notification shall be given in sufficient time to enable

prospective tenders to obtain pre-qualification or tender
documents and prepare and submit their responses.

(7) Domestic or national preference shall apply in the

evaluation of tenders if stated in the soli citation documents.
National 66.-(1) In national competitive tendering, otherwise
competetive known as national competitive bidding, a procuring entity shall
tendering
invite suppliers service providers, contractors, or asset buyers
regardless of their nationality, by means of a tender notice
advertised only in the United Republic of Tanzania, to submit
priced tenders for goods, services, works or purchase of public
assets.
(2) Such form of tendering may be used in cases
where:
(a) payment may be made wholly in Tanzanian
shillings;
(b) the goods, works or services are available
locally at pnces below the international market;
the estimated cost of the goods, works or
(c) services is small and does not exceed the
threshold for open international tendering
prescribed in the Second Schedule to these
Regulations;
works or services are geographically
(d) or spread over time; works are scattered
labour intensive;
(e) the advantages of international competitive
(f) tendering are clearly outweighed by the
administrative or financial burden are involved;
the estimated value of assets is small and does
not exceed the threshold for open international
(g) tendering prescribed in the Second Schedule to
these Regulations

(3) Tender documents may be in Kiswahili language; (4)

The notification of the invitation to tender shall be
done at the same time as the advertisement in the local
newspapers. Notification shall be given in sufficient time to
enable prospective tenders to obtain pre-qualification or tender
documents and prepare and submit their responses.
(5) Domestic or national preference shall apply in the

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evaluation of tenders under the national competitive tendering

where foreign firms have participated.

Restricted 67.-(1) A procuring entity may restrict the issue of tender

tendering
documents to a limited number of specified suppliers, contractors,
or service providers when:

(a) such suppliers, contractors or service providers

have already pre-qualified further to Regulations
15 and 64 and the procedures set out in
Regulation 15 of these Regulations; or

(b) the goods, works, or services required are of a

specialised nature or can be obtained from a
limited number of specialised contractors, service
providers or reputable sources; or

(c) the estimated contract values are within the limit

for restricted tendering prescribed in the Second
Schedule to these Regulations; or

(d) there is an urgent need for the goods, works or

services such that there would be insufficient time
for a procuring entity to engage in open national
or international tendering, provided that the
circumstances giving rise to the urgency could not
have been foreseen by a procuring entity and have
not been caused by dilatory conduct on its part.

(2) The justification for restricting procurement further to

sub-regulation (1) must be shown in the record of procurement
proceedings made further to Regulation 19.
(3) Except where suppliers, contractors or service
provider have already pre-qualified, a procuring entity issuing a
restricted tender shall seek tenders from a list of potential
suppliers, contractors, or service providers broad enough to
assure competitive prices.
(4) In cases where only a limited number of suppliers,
contractors or service providers can reasonably be expected to be
able to tender, the list shall include all such suppliers, contractors
or service providers.
(5) In all respects other than advertisement and issue of
the tenders, the procedures for competitive tendering as set out in
these Regulations shall apply.
International 68.-(1) Shopping is a procurement method based on

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and national comparing price quotations obtained from several suppliers to

shopping
ensure competitive prices, and is an appropriate method for
procuring readily available off-the shelf goods or standard
specification commodities that are small in value.

(2) A tender board may approve for competition to be

invited through request for quotations at international or national
level, where it has been determined that:

(a) the goods to be procured are so diversified that it

would be of no commercial interest for any single
supplier to tender for them; or

(b) the goods are readily available off-the-shelf or

standard specification commodities.

(3) A procuring entity shall not divide its procurement

into separate contracts for the purpose of invoking subregulation
(1) of this Regulation.

(4) Quotations shall be obtained from at least three

suppliers which may include qualified agents of foreign suppliers
in Tanzania.

(5) The list of the suppliers to be contacted shall be

submitted to the appropriate tender board for approval and
thereafter the procuring entity shall address a request for
quotations to all approved suppliers simultaneously.

(6) A minimum period prescribed in the Third Schedule

of these Regulations for international shopping and for local
shopping shall be allowed for the preparation of the tenders and
quotations may be submitted by letter, or any other form
acceptable to the appropriate tender board.

(7) The letter of invitation for quotations and any

attachments shall include, at a minimum:

(a) the full name and address of the procuring entity;

(b) a full description of the goods, works or services to be

procured, including the required technical or quality
characteristics, specifications, designs, plans and
drawings, as appropriate;

(c) the quantities of any goods to be supplied and the

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required time and place of delivery, any requirements for

such goods;

(d) in the case of works, bills of quantities, the location and

the required time for their completion;
(e) in the case of services, a list of targets to be achieved by a
service provider, list of specific tasks or duties to be
performed, a schedule of deliverables or outputs against
which the achievements of the services shall be
measured, the duration of the services and method of
measuring the performance of services delivered;

(f) whether any alternatives to the required specifications or

characteristics of the goods, works, services or to other
contractual conditions, are to be permitted;
(g) Information of any elements other than the charges for the
goods or services themselves, such as any applicable
transportation and insurance charges customs duties and
taxes, that are to be included in the pnce;
(h) the criteria for evaluation of quotations or tenders
including any weighting factors that may be applied to
technical, price or other factors;
(i) the period, generally forty five days, during which the
quotations are to remain valid;
CD the form of contract or Local Purchase Order, to include all
conditions and terms of payment; a statement of the
currency in which the successful supplier or contractor
will be paid, if different from the quoted price;
(k) a statement that the procuring entity does not bind itself
to accept any quotation and may reject all quotations;
(1) notice of the tenderers right to review pursuant to Part
VIII of the Act;
(m)the manner in which the quotations shall be submitted; and
(n) the place, date and time for the submission and opening
of quotations.

(8) All prospective tenderers shall be provided with the

same information, and shall be assured of equal opportunities to
obtain additional information on a timely basis.

(9) Each supplier, contractor or service provider is

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permitted to give only one price quotation and is not permitted to

change its quotation and no negotiations shall take place between
the tender evaluation committee and contractor, service provider
or supplier with respect to a tender, proposal, offer or quotation
submitted by the supplier, service provider or contractor.

(10) The procurement contract shall be awarded to the

supplier, contractor or service provider that gave the lowestpriced
quotation meeting the needs of the procuring entity.
Single source 69.-(1) Subject to approval by the tender board, a
procurement
procuring entity may engage in a single-source procurement in
for goods or
services accordance with sub-regulation (3) under the following
circumstances:

(a) the goods or services are available only from a

particular supplier or service provider or a
particular supplier or service provider has
exclusive rights in respect of the goods or services,
and no reasonable alternative or substitute exists
(sole-sourcing);
(b) there is an urgent need for the goods or services,
and engaging in tendering proceedings or any
other method of procurement would therefore, be
impractical, provided that the circumstances
giving rise to the urgency were neither
foreseeable by the procuring entity nor the result
of dilatory conduct on its part;
(c) the procuring entity, having procured goods,
equipment, technology, services or spare parts
from a supplier, following national or
international competitive tendering satisfactory to
these regulations determines that additional
supplies of the same type as those purchased
under an existing contract are required;
(d) the procuring entity seeks to enter into a contract
with the supplier or service provider for the
purpose of research, experiment, study or
development, except where the contract includes
the product of goods in quantities to establish
their commercial viability or to recover research
and development costs; or
(e) procurement involving national defence or
national security and where it is determined that a
single - source procurement is the most
appropriate method of procurement;
(f) where critical items need to be purchased from a

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specified supplier to ensure that the output of a

process plant shall be guaranteed by the
contractor responsible for the process design;
(g) where standardization of equipment is essential
for economic and technical reasons and it has
been proved to the tender board's satisfaction that
compatibility of the existing equipment with
another make of equipment cannot be established
and that there is no advantage in having an
alternative supplier;
(h) where standardization of spare parts is required so
that they may be compatible with existing
equipment or spare parts or stock items related to
specific and specialized equipment or machinery;
where an on-going project, additional items need
(i) to be purchased for the completion of
implementation.

(2) For the purposes of these Regulations, standardization

shall be deemed to be appropriate where the original equipment
must be suitable for the purposes of the project being financed
and have been acquired at reasonable prices through national or
international competitive tendering satisfactory to the tender
board and provided that the number of the new items to be added
is less than the existing value and cannot be obtained ttom other
sources.

(3) In the circumstances set forth in sub-regulation (1) a

procuring entity may procure the goods or services, by soliciting
proposal or price quotation ttom a single supplier.

(4) Subject to approval by the appropriate tender board a

procuring entity may engage in single-source procurement when
procurement ttom a particular supplier or services is necessary
provided that in such a case, the letter of invitation to the selected
supplier or service provider shall include, at a
IDlmmum:
(a) the full name and address of the procuring entity;
(b) instructions for submission of a quotation;

(c) a full description of the goods or services to be

procured, including the required technical or
quality characteristics, specifications, designs,
plans and drawings, as appropriate;

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(d) the quantities of any goods, or the desired results

of any service to be supplied or provided and the
required time and place of delivery, any
requirements for minimum performance, warranty
and maintenance for such goods or management
and reporting requirements of a service provider;

(e) whether any alternatives to the required

specifications or characteristics of the goods or
services, or to other contractual conditions, are to
be permitted;

(f) the period during which the quotation is to remain

valid;

(g) the form of contract or Local Purchase Order, to

include all conditions and terms of payment;

(h) a statement of the currency in which the supplier

or service provider will be paid;

(i) a statement that the procuring entity does not bind

itself to accept the quotation.

(5) The procuring entity shall examine carefully any

quotation received and, if necessary, negotiate subsequently with
the supplier so as to ensure that the requirement for the goods or
services is properly addressed and met as far as is practicable and
that the price quoted is not excessive and is in line with
reasonable expectations.
(6) The procuring entity must nevertheless take care not
to make undesirable reductions in the quality of the goods or
services in order to achieve cost savings.
(7) The justification for single source procurement further
to sub-regulations (1) to (5) must be shown in the record of
procurement proceedings made further to Regulation 19.
Direct 70.-(1) A procuring entity may obtain a priced quotation
contracti-ng from a single contractor and negotiate and enter into a direct
for works
contract when:
(a) there is an urgent need for the works such that there
would be insufficient time for a procuring entity
to engage in tendering or any other method of
procurement, provided that the

circumstances giving rise to the urgency could

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not have been foreseen by the procuring entity and

have not been caused by dilatory conduct on its
part; or

(b) there is only one particular contractor which a

procuring entity can reasonably expect to
undertake the required works; or
(c) there are advantages to a procuring entity in using
a particular contractor who has undertaken or is
undertaking similar works or who may have
already been mobilised with plant, equipment and
staff in the vicinity or any other resources as may
be appropriate;
(d) where works already and satisfactorily under
execution are to be extended, and the
corresponding contract had been awarded
following national or international competitive
tendering satisfactory to the tender board provided
always that the tender board shall be satisfied that
the prices on the extended contract are reasonable
and competitive and that there is clearly no
advantage to further tendering or that any new
tendering would be unlikely to receive adequate
responses, and the value of the contract extension
is less than the original contract value;
the estimated value of the works does not exceed
(e) the limit prescribed in the Third Schedule to these
Regulations.
(2) The letter of invitation to the selected contractor
shall include, at a minimum:
(a) the full name and address of the procuring entity;
(b) instructions for submission of a quotation;
(c) a full description of the works to be procured,
including the required technical or quality
characteristics, specifications, designs, plans and
drawings, as appropriate;
bills of quantities, the location and the required
time for their completion;
(d) whether any alternatives to the required
specifications or characteristics of the works, or to
(e) other contractual conditions, are to be permitted;
(f) the period during which the quotation is to remain
valid;

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(g) the form of contract or Local Purchase Order, to

include all conditions and terms of payment;
(h) a statement of the currency in which the contractor
will be paid;
(i) a statement that the procuring entity does not bind
itself to accept the quotation.
(3) A procuring entity shall examine carefully any
quotation received and, if necessary, negotiate subsequently with
the contractor so as to ensure that the requirement for the works is
properly addressed and met as far as is practicable and that the
price quoted is not excessive and is in line with reasonable
expectations.
(4) The procuring entity must nevertheless take care not to
make undesirable reductions in the quality and scope of the works
in order to achieve cost savings.

(5) The justification for direct contracting further to sub-

regulation (1) must be shown in the record of procurement
proceedings made further to Regulation 19.

Minor value 71. A procuring entity may procure goods, services or

procurement minor works directly from a supplier, service provider or
contractor, where:

(a) the value does not exceed the limit for minor value
prescribed in the Second Schedule to these Regulations;

(b) the price quoted is reasonable; and

(c) no advantage to a procuring entity is likely to be obtained

by seeking further quotations or by using other methods of
procurement;

(d) the contract for the provision of such goods, services or

works may be a Local Purchase Order.

Turnke 72.-(1) A procuring entity may issue a tender for a turnkey

y
contract contract involving a major specialised works project, such as the
s construction of an industrial plant, where the supply of goods and
the performance of various works need to be closely integrated.
Under such a contract, the design and engineering, supply and
installation of equipment and the construction of the complete
plant or works will be provided by a single contractor under the
one contract, procured using international or national

competitive methods of procurement as approved by the

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appropriate tender board.

(2) Alternatively a procuring entity may:
(a) remain responsible for the design and
engineering, but invite tenders for a single
contractor to take responsibility for the supply and
installation of all goods and for the works required
for a project;
(b) issue a tender for a single contract for all
components of the design and works (known as
"design and build" contract), but issue separate
tenders for the supply of the goods required for a
project;
(c) issue a single tender for a management contractor
who may subcontract all the design, engineering,
supply and works components of a project but who
shall take responsibility for the timely completion
of the project and all attendant risks which may be
involved.
Force 73.-(1) Force account is construction by the use of public
Account or semi-public agencies or departments concerned, where the
public or semi-public agency has its own personnel and equipment
(2) The use of force account or direct labour may be
justified where:

(a) required works are small and scattered or in

remote locations for which qualified construction
firms are unlikely to tender at reasonable prices;
work is required to be carried out without
(b) disrupting ongoing operations;
risks of unavoidable work interruption are better
(c) borne by a procuring entity or public authority
than by a contractor; or
(d) there are emergencies needing prompt attention. 74.-
(1) Public Private Partnerships shall include the
Procurement following forms or combinations of them; service contract,
under public management contract, leasing, joint ventures, partnerships, Build
private
partnership
Operate Transfer, Build Own Operate, Design Build Operate
and other Finance and concessions.
private sector
participation
arrange

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ments (2) Services for which there are no governmental, legal or

operational limitations that dictate they must be performed by
public sector employees, may be outsourced under the private
sector participation arrangement.

(3) As soon as the procuring entity identifies a project that

may be concluded as a public private partnership, it must:

(a) ensure that it has the expertise within that procuring

entity to proceed with a public private partnership;

(b) appoint a project officer from within or outside the

procuring entity; and

(c) appoint a transaction advisor.

(4) For public private partnership project, the procuring
entity shall undertake a feasibility study in order:
(a) to confirm affordability of the project for the procuring
entity if it will incur any financial commitments;
(b) to establish factors that will determine value for money;
( c) to assess the potential of a public private partnership to
deliver value for money;
(d) to identify the form(s) of public private partnership
most likely to deliver for value for money;

( e) to establish the optimum scope of the public private

partnership;
(f) to identify the parameters to be used to assess value for
money at the procurement stage;
(g) to provide a sound basis for the procuring entity to
decide on procurement approach;
(h) to set out the proposed allocation of financial and
technical risks between the procuring entity and the
private party; and
(i) to explain the capacity of the procuring entity to
procure, implement, manage, enforce, and monitor the
public private partnership project.
(5) Feasibility study for private sector participation in
delivery of public services shall recommend service areas within
the procuring entity which could, or should be offered to the
private sector by:

(a) describing the current procuring entity's

organisation, service areas and associated costs;

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(b) presenting an analysis of the suitability of contracting

out current service areas within the procuring entity to
the private sector;
(c) identifying important issues that must be addressed
before services are contracted out such as,
but not limited to:

(i) service packaging;

(ii) contract length and pricing mechanisms;
(iii) treatment of government assets;
(iv) tender selection procedures;
(v) personnel issues;

(d) highlighting important areas where private sector

participation policy issues remain to be resolved;
and
( e) presenting a risk management plan;
(6) The procuring entity shall not proceed with the
procurement phase of a public private partnership or private
sector participation project if the feasibility study indicates that
the proposed project will not provide value for money or improve
the quality of the public service.
(7) The procuring entity shall advertise the request for
qualification in the form of the specific procurement notice in at
least one newspaper of wide and general circulation in the United
Republic of Tanzania, in any international newspaper as may be
directed by the appropriate tender board, and may additionally
advertise in well known technical magazines or trade publications
(8) The notification of the request for qualification shall
be done at the same time as the advertisement in the local
newspapers, and shall be given in sufficient time to enable
prospective tenderers to obtain request for qualification
documents, prepare and submit their responses.

(9) The notification of the request for qualification shall

contain the following
(a) A brief description of the intention of the government
to undertake the project;
(b) A high level definition of the project;
(c) Identification of the specific location where
interested parties may obtain a copy of the request
for qualification, the dates and times during which
the request for qualification will be available,
including any costs for obtaining a copy;

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(d) A declaration reciting the date, time and place

where the request for qualification submissions
must be filed with the government sponsor.

(e) A statement of where and how the submissions

will be evaluated and a timeframe after which
those making submissions will be notified as to
the results of the evaluation.

(10) Selection of a preferred tenderer shall be done in

accordance with the guidelines issued by the Authority.
(11) Selection of the service provider under the private
sector participation arrangement shall be done according to these
Regulations or Public Procurement (Selection and Employment
of Consultants) Regulations, 2005 depending on the nature of
services to be provided.

Community 75.-(1) Where in the interest of project sustainability or to

participation achieve certain specific social objectives of the project, it is
in
procurement desirable in selected project components to:

(a) call for the participation of local communities or

farmer groups;
or
(b) increase the utilization of local know - how and
materials; or
(c) employ labour intensive and other appropriate
technologies,
the procurement procedures, specifications and contract
packaging shall be suitably adapted as to reflect such
considerations.
(2) The beneficiary community shall be responsible for
the procurement activities under the project component.
(3) The project authorities shall have the responsibility to
provide the necessary training and simple standardised
documents to the community to enable it carry out the
procurement function in a manner acceptable to the Authority.
(4) The Authority shall issue relevant guidelines for
community participation in procurement proceedings.
Procurement 76.-(1) Procurement of commodities such as grain,
of
commodities animal feed, cooking oil, fuel, fertilizer and metals, the market
prices of which fluctuate depending upon the demand and supply
at any particular time, may involve multiple awards for partial
quantities to assure security of supply and multiple purchases
over a period of time to take advantage of favourable market
conditions and to keep inventories low.

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(2) A procuring entity may draw up a list of prequalified

suppliers to whom periodic invitations for the supply of
commodities may be issued.
(3) Such suppliers may then be invited to quote prices
linked to the market price at the time of or prior to, the shipments
of such commodities so that tender validities shall be as short as
possible.
(4) A single currency in which the commodity is usually
priced in the market may be used for tendering and payment, in
which case that currency is to be specified in the tender document.
(5) Tender documents for supply of commodities may
permit tenders to be sent by fax or telex where there is no
requirement for tender security, or if standing tender securities
valid over a specified period of time have been submitted by the
pre-qualified suppliers, then standard contract conditions
consistent with market practices may be used.
77.-(1) A procuring entity may procure the services of
Procurement a procurement agent to undertake any or all of those procurement
agents functions which would otherwise be carried out by that entity
provided that all such procurement functions are carried out in
conformity with the Act and in accordance with these Regulations
(2) A procuring entity shall procure services of a
procurement agent by competitive selection in accordance with
the Public Procurement (Selection and Employment of
Consultants) Regulations, 2005.
(3) A procuring entity shall:
(a) be responsible for instructing any procurement
agent that may be appointed further to Regulation
to observe the relevant provisions of the Act and of
these Regulations, and
only authorise a procurement agent to act on its
behalf and shall ensure that any procurement shall
(b) be reviewed and authorised by the appropriate
approving authority before any contract is placed.
(4) The procurement agent shall on behalf of the procuring
entity strictly follow all the procurement procedures outlined in
these Regulations including use of standard tender documents and
documentation issued by the Authority.
78.-(1) Where agents have been appointed by the
Government to undertake pre-shipment inspection and
certification of imports, the Minister responsible may exempt
Inspection goods that have been procured through competitive tendering or
agents otherwise in accordance with these Regulations

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ttom price verification. Where exemption has not been granted,

any inspection agents' fees are not to be included in the price
tendered or considered in the evaluation of a tender.

(2) Goods procured by ministries and departments ttom

sources outside the United Republic of Tanzania shall still be
subject to inspection for quality and quantity, unless specifically
exempted by the Minister responsible.