ISSN 0856 01001X

THE UNITED REPUBLIC OF TANZANIA

ACT SUPPLEMENT
No. 9

30 December, 2011

to the Gazette of the United Republic of Tanzania No. 52 Vol. 92 dated 30th December, 2011
Printed by the Government Printer, Dar es Salaam by Order of Government

THE PUBLIC PROCUREMENT ACT, 2011

__________
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY PROVISIONS
Section
1.
2.
3.
4.

Title

Short title and commencement.

Application.
Interpretation.
International obligation.
PART II
PUBLIC PROCUREMENT POLICY DIVISION

5.
6.

Establishment of Public Procurement Policy Division.

Functions of the Public Procurement Policy Division.
PART III
THE PUBLIC PROCUREMENT REGULATORY AUTHORITY

7.
8.
9.
10.

Establishment of the Authority.

Objectives of the Authority.
Functions of the Authority.
Scope of investigations by the Authority.

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Public Procurement

11.
12.
13.
14.
15.

Initiation of investigation.
Procedure in respect of investigation.
Evidence.
Restriction of disclosure of certain matters.
Procedure after investigation.

16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.

Disciplinary action against public officers.

Proceedings of the Authority.
Powers of the Authority.
Cancellation of procurement proceedings.
Action on recommendation of the Authority.
Establishment and Composition of the Board of Directors.
Committees of the Board of Directors.
Appointment of Chief Executive.
Directors, consultants and other staff of the Authority.
Funds of the Authority.
Books of account.
Audit of Accounts.
Annual Management Plan and budget.
Annual Report.
Internal Audits and Periodic Audit Reports.

2011

PART IV
INSTITUTIONAL ARRANGEMENTS
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.

Tender boards.
Notification to the Authority of composition of tender board.
Functions of tender boards and budget approving authority.
Powers of tender board.
Award of contracts.
Functions and Powers of Accounting officer.
Establishment and composition of Procurement Management Unit.
Functions of a Procurement Management Unit.
User Department.
Evaluation Committee.
Independence of functions and powers.

No. 7

42.
43.
44.
45.
46.

Public Procurement

2011

Delegation of powers by the Accounting officer.

Third party procurement.
Procurement procedures for the Authority and the Appeals Authority.
Disagreements in decisions.
Confidentiality of documents.
PART V
PUBLIC PROCUREMENT PRINCIPLES

47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.

Standards of equity.
Duties of procuring entities.
Approval of the Annual Procurement plan.
Procurement of common use items and services.
Qualifications of suppliers, contractors and consultants.
Pre-qualification proceedings.
Post-qualification.
National preferences.
Exclusive preference to local persons or firms.
Procurement from the Agency.
Language.
Tender securities.
Rejection of tenders or proposals.
Acceptance of tender and entry into force of a procurement contract.
Records, information and notices.
Blacklisting.
PART VI
METHODS OF PROCUREMENT AND PROCESSES

63.
64.
65.
66.
67.
68.
69.

Application of the basic principles of procurement and disposal.

Selection of methods of procurement.
Emergency procurement.
Procurement of used railway machinery, aircrafts and ships.
Competitive tendering.
Invitation to tender and advertising.
Issue of tender documents.

No. 7

70.
71.
72.
73.
74.
75.
76.
77.
78.

Public Procurement

Content of tender document.

Validity of tenders and tender security.
Evaluation criteria.
Receipt of tenders and tender opening.
Evaluation and comparison of tenders.
Approval of award of contract.
Negotiation and award of contracts.
Alteration and amendments.
Selection of consultants.
PART VII
PUBLIC PROCUREMENT UNDER PUBLIC PRIVATE PARTNERSHIP

79.
80.
81.
82.

Scope applicability and approval.

Unsolicited public Private Partnership proposal.
Selection of Transaction Advisor or Manager.
Selection of a Private Party and choice of procurement.
PART VIII
PROHIBITIONS

83.
84.
85.
86.
87.

Fraud and corruption.

Conducts influencing Public Officers.
Disclosure of payment made by way of commission etc.
Conduct of directors, servants or agents.
Institution of criminal proceedings.
PART IX
DISPUTES SETTLEMENT

88.
89.
90.
91.
92.

Establishment of the Appeals Authority.

Appointment of Executive Secretary.
Employees of the Appeals Authority.
Funds of the Appeals Authority.
Audit of Accounts.

2011

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Public Procurement

93. Management Plan and Budget.

94. Annual statement and report..
95. Right to review.
96. Settlement of complaints or disputes by accounting officers.
97. Review by the Appeals Authority
98. Extension of time for submission of complaints or appeals.
99. Certain rules applicable to review proceedings.
100. Suspension of procurement proceedings.
101. Judicial review
PART X
GENERAL PROVISIONS
102. Codes of Conduct.
103. Protection from personal liability.
104. Offences.
105. Regulations.
106. Guidelines.
107. Repeal and savings.
108. Transitional provisions.
_________
SCHEDULES
_______

2011

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Public Procurement

2011

THE UNITED REPUBLIC OF TANZANIA

NO. 7 OF 2011
I ASSENT,
JAKAYA MRISHO KIKWETE,
President
13th December, 2011

An Act to make better provisions for the regulation of public

procurement, to provide for repeal of the Public Procurement
Act, 2004 and re-enact the Public Procurement Act and
consequential matters and to provide for other related matters.
ENACTED by the Parliament of the United Republic of Tanzania.

PART I
PRELIMINARY PROVISIONS
Short title and
commencement

Application

1. This Act may be cited as the Public Procurement Act,

2011 and shall come into operation on such a date as the
Minister may, by notice in the Gazette, appoint.
2.-(1) This Act shall apply to-

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Public Procurement

2011

(a) all procurement and disposal by tender

undertaken by a procuring entity except
where it is provided otherwise in this Act;
(b) non Government entities, for procurement
financed from specific public finances; and
(c) Public Private Partnership projects, in their
relevant stages.
(2) The Defence and National Security Organs shall
comply with this Act subject to subsections (3) and (4).
(3) The defence and national security organs shall
manage their procurement and disposal on the basis of a
dual list, covering items subject to open and restricted
procurement or disposal methods respectively.
(4) The Defence and National Security Organs shall
agree annually with the Authority on the category of items
to be included in the restricted list and on restricted
procurement methods set out in this Act or regulations
made under this Act which applies to each category of item
on the restricted list.
(5) Subject to section 4(1), the extent to which this Act,
regulations and rules made under it conflict with other
laws, regulations or rules on matters relating to public
procurement and disposal of public assets by tender, the
provisions of this Act, regulations and rules made under it
shall prevail.
Interpretation

Cap.348

3. In this Act unless the context otherwise requires accounting officer means a Government officer
appointed in accordance with the provisions of the
Public Finance Act or a public officer statutorily
appointed to hold a vote or subvention and accounts for
all monies expended from that vote or subvention;
Agency means Government Procurement Services
Agency;

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Public Procurement

2011

an associate means a person who (a)

is in partnership with the public officer; or
(b)
in the case of a body corporate is a controller of
the body corporate or the public officer and any
person who is in association with him;
Appeals Authority means the Appeals Authority
established under section 88;
approving authority" means an accounting officer or tender
board of a public body;
Authority means the Public Procurement Regulatory
Authority;
Board means the Board of Directors of the Public
Procurement Regulatory Authority established under
section 21;
coercive practice means impairing or harming, or
threatening to impair or harm directly or indirectly, any
party or the property of the party for the purpose of
influencing improperly the action or that party in
connection with public procurement or in furtherance of
corrupt practice or fraudulent practice;
competent authority means a person, body of person,
organs or an agency competent to take actions as may
be referred to or directed to it by the Authority under
this Act;
competitive selection means the method of procurement
whereby consultants or providers of services are
invited by the procuring entity to compete with each
other in submitting either unpriced or priced tenders,
where the tenders are evaluated either on the basis of
quality or on the basis of a combination of quality and
cost;

No. 7

Cap.103

Public Procurement

2011

collusive practices means impairing or harming, or

threatening to impair or harm directly or indirectly, any
part or the property of the Party for the purpose of
influencing improperly the action or a part or in
connection with public procurement or government
contracting or in furtherance of a corrupt practice or a
Fraudulent Practice;
competitive tendering or tendering means the method of
procurement whereby suppliers, contractors or
consultants are invited by the procuring entity to
compete with each other in submitting priced tenders
for goods, works or services;
consultant means a firm, company, corporation,
organisation, partnership or an individual person
engaged in or able to be engaged in the business of
providing services in architecture, economics,
engineering, surveying or any field of professional
services, and who is, according to the context, a
potential party or the party to a contract with the
procuring entity;
consultancy services means activities of an intellectual
and advisory nature that do not lead to a measurable
physical output and includes design, supervision,
training, advisory, auditing, software development and
similar services;
contracting authority shall have a meaning ascribed to it
under the Public Private Partnership Act;
contractor means a firm, company, corporation,
organisation, partnership or an individual person
engaged in civil, electrical or mechanical engineering
or in construction or building work of any kind
including repairs and renovation, and who is, according
to the context, a potential party or the part to a
procurement contract with the procuring entity;

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Public Procurement

2011

corrupt practice means the offering, giving receiving or

soliciting of anything of value to influence the action
of a public officer in the procurement process or
contract execution;
defence and national security organs" means the Tanzania
Peoples Defence Forces, the Tanzania National
Service, Tanzania Police Force, Tanzania Prisons
Service, Tanzania Intelligence Security Services, the
National Security Council and the Prevention and
Combating of Corruption Bureau;
Department in relation to a Ministry of the Government or
other public authority or public body, includes any
division or unit by whatever name known of that
ministry, authority or other body;
digital signature means an electronic signature based upon
cryptographic methods of originator authentication,
computed by using a set of rules and parameters such
that the identity of the signer and the integrity of the
data can be verified;

Cap.257

disposal" means the divestiture of public assets including

intellectual and proprietary rights and goodwill, and any
other rights of a procuring and disposing entity by any
means, including sale, hire - purchase, licences, tenancies,
rental, lease, franchise, auction or any combination however
classified other than those regulated by the Public
Corporation Act;
"disposal process" means the successive stages in the disposal
cycle, including planning, choice of procedure, measures to
solicit offers from tenderers, examination and evaluation of
those offers and award of contract;
e-procurement means the use of information and
communication technology by the Government in
conducting procurement functions;
emergency procurement means procurement of goods, works or
services essentially to meet an emergency situation which
cannot be done through normal procurement process;

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2011

fraudulent practice means a misrepresentation of facts in order

to influence a procurement process or the execution of a
contract to the detriment of the Government or a public
body and includes collusive practices among tenderers, prior
to or after submission designed to establish tender prices at
artificial non-competitive levels and to deprive the
Government of the benefits of free and open competition;

Caps.287 and
288

goods means raw materials, products, equipment and other

physical objects of every kind and description, whether in
solid, liquid or gaseous form, electricity, intangible asset and
intellectual property, as well as services incidental to the
supply of the goods provided that the value of the services
does not exceed the value of the goods themselves;
government means the Government of the United Republic of
Tanzania;
"guidelines" means directives issued by the Public Procurement
Regulatory Authority under this Act;
false representation means a misrepresentation of fact made by
one party to another with intent to deceive and with the
knowledge that it is false;
highest evaluated price means the price offered by a tenderer for
revenue collection services or for the asset to be disposed of,
that is found to be the highest after considering relevant
factors specified in the tender documents and apportioning
weight for such factors;
Independent Government Department means a Department of
the Government that is not under the direct control of the
parent Ministry;
"local government authority" means a local government authority
established under the Local Government (District Authority)
Act or local government authority established under the
Local Government (Urban Authority) Act;
lowest evaluated cost means the price offered by a tenderer that
is found to be the lowest price after consideration of all
relevant factors and the calculation of any weighing for these
factors, provided that such factors have been specified in the
tender documents;

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No. 7

Cap.212

Public Procurement

2011

Minister means the Minister for the time being responsible for
finance;
non consultancy services means any object of procurement other
than goods, works and consultancy services;
obstructive practice means acts intended to materially impede
access to required information in exercising a duty under this
Act;
parastatal organisation means (i) a body corporate established by or under any Act other
than the Companies Act;
(ii) any corporation registered under the Companies Act,
in which not less than fifty percent of the share capital
is owned by the Government or by another parastatal
organisation, or in the case of a company which is
limited by guarantee, where the Government has
undertaken to meet fifty percent or more of the
liabilities of that company; or

(iii) any company, management, board, association or

statutory body in which the Government has a
Cap.245

Cap 348

majority or controlling interest and includes a government

agency established under the Executive Agencies Act;
Paymaster General has the meaning ascribed to it under the
Public Finance Act;
person includes any association of persons whether
incorporated or not;
post-qualification means a due diligence procedure applied
after tenders have been evaluated prior to award of contract,
to determine whether or not the lowest evaluated tenderer
has the experience, capability and resources to carry out the
contract effectively;

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2011

pre-qualification means a formal procedure whereby

suppliers, contractors or consultants are invited to submit
details of their resources, and capabilities which are
screened prior to invitation to tender on the basis of
meeting the minimum criteria on experience, resources,
capacity and financial standing;
"procuring entity" means a public body and any other body, or
unit established and mandated by government to carry out
public functions;
procurement means buying, purchasing, renting, leasing or
otherwise acquiring any goods, works or services by a
procuring entity and includes all functions that pertain to
the obtaining of any goods, works or services, including
description of requirements, selection and invitation of
tenderers, preparation and award of contracts;
procurement contract means any licence, permit, or other
concession or authority issued by a public body or entered
into between a public body and a supplier, contractor or
consultant, resulting from procurement proceedings for
carrying out construction or other related works or for the
supply of any goods or services;
procurement expert or specialist means a person who is
engaged in a profession, occupation or calling in which
recourse to procurement is directly or indirectly involved
and has such knowledge and experience of the practice of
procurement and has been certified or registered by the
Procurement Supplies Professional and Technician Board;
"Procurement Management Unit" means a division or
department in each procuring entity responsible for the
execution of the procurement functions;
procurement proceedings means the proceedings to be
followed by a procuring entity or any approving authority
when engaging in procurement;

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No. 7

Cap. 212

Public Procurement

2011

"procurement process" means the successive stages in the

procurement cycle, including planning, choice of
procedures, measures to solicit offers from tenderers,
examination and evaluation of those offers, award of
contract and contract management;
Procurement Professional Body means the Procurement and
Supplies Professionals and Technicians Board;
public asset means any property owned by the public body
tangible and intangible, including but not limited to
physical property, land, shares or proprietary rights;
public body or public authority means (i) any Ministry, Department or Agency of the
Government;
(ii) any body corporate or statutory body or authority
established by the Government;
(iii) any company registered under the Companies Act
being a company in which the Government or an
agency of the Government, is in the position to
influence the policy of the company; or
(iv) any local government authority;
public funds means monetary resources appropriated to
procuring entities through budgetary processes, including
the Consolidated Fund, grants, loans and credits put at the
disposal of the procuring entities by local or foreign donors
and revenues generated by the procuring entities;
public officer or officer means:(i) any person holding or acting in an office of
emolument in the public service;
(ii) a person holding or acting in the office of a
Minister in the Government;
(iii) an employee of any body corporate referred to in
the definition of public body or public authority;
(iv) a person who has been a public officer;

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No. 7

Cap. 103

Public Procurement

2011

Public Private Partnership shall have a meaning ascribed to it

under the Public Private Partnership Act, 2010;
services means both consultancy and non consultancy
services;
solicited private Partnership Projects means proposals for Public
Private Partnership Projects that are initiated by public bodies
and represent Governments priority programs;
specification means a description of any commodity or works
by reference to its nature, quality, strength, purity,
composition, quantity, dimensions, weight, grade, durability,
origin, age or other characteristics or to any substance or
material of, or with which, or the manner in which, any
commodity or works may be manufactured, produced,
processed, treated, built or installed;
successful tender means a tender evaluated and selected by
the procuring entity as(i)
offering the lowest evaluated cost and has the
capacity and capability to execute the contract, in
case the method of procurement used was
competitive tendering; or
(ii) being the most responsive to the needs of the
procuring entity if procurement used was
competitive
quotations,
single
source
procurement, competitive selection or where
goods or services of minor value were procured;
(iii) the highest evaluated price;
supplier means company, corporation, organisation,
partnership or individual person supplying goods or
services, hiring equipment or providing transport services
and who is, according to the contract, a potential party or
the party to a procurement contract with the procuring
entity;
tender means an offer, proposal or quotation made by a
supplier, contractor or consultant in response to a request
by a procuring entity;

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2011

tender document means a written or electronic document or

request for proposal inviting tenderers to participate in
procuring or disposal by tender proceeding and includes
document inviting potential tenderer for pre-qualification;
tenderer means any natural or legal person or group of such
persons participating or intending to participate in
procurement proceeding with a view to submitting a
tender in order to conclude a contract and includes a
supplier, contractor service provider or asset buyer;
terms of reference means the statement issued by the
procuring entity giving the definition of the objectives,
goals and scope of the services, including where
applicable the means to be used;
unsolicited Private Partnership Projects means a proposals
that are initiated by a private sector party to a public
institution for consideration as Public Private Partnership
Project;
works means (i)

all works associated with the construction,

reconstruction, demolition, repair or renovation of
a building, structure, road or airfield;
(ii) any other civil works, such as site preparation,
excavation erection, building, installation of
equipment or materials, decoration and finishing;
and
(iii) service which is tendered and contracted on the
basis of performance of a measurable physical
output such as drilling, mapping, satellite
photography or seismic investigations:
Provided that, contracts which include the provision of
works and services shall be regarded as works contracts if the
total value of the works is greater than the value of the services
covered by the contract.

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No. 7

International
obligation

Public Procurement

2011

4.-(1) To the extent that this Act conflicts with an

obligation of the United Republic under or arising out of (a) any treaty or other form of agreement to which the
Government is a party with one or more other
states or political sub-divisions of such states; or
(b) any grant agreement entered into by the
Government with an inter-governmental or
international financing institution in which the
Government is the beneficiary,
the requirement of such treaty or agreement shall prevail, but in
all other respects, the procurement shall be governed by this
Act.
(2) Where the Government enters into any treaty or other
form of agreement which favours an external beneficiary, then (a) procurement made through contributions made by
the Government shall be undertaken in the United
Republic through national suppliers, contractors
or consultants;
(b) all relevant insurances shall be placed with
companies registered in the United Republic;
(c) supplies shall be transported in carriers registered
in the United Republic.
(3) Where, for reasons of limitations of capacity, national
suppliers, contractors or consultants are unable to satisfy
wholly or in part, the specific procurement requirements, they
shall be offered a preferential opportunity to participate in the
procurement or disposal by tender process of the beneficiary
entity (in conjunction with firms in that country) and where
applicable to offer such requirements from third sources.
(4) A derogation from the application of subsections (1)
and (2) may be applied to the Authority by the competent
agency responsible for the procurement or disposal in question
with supporting documentation and justification.

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2011

PART II
PUBLIC PROCUREMENT POLICY DIVISION
Establishment of
Public
Procureme
nt Policy
division

5.-(1)
There shall be established, under the Ministry
responsible for Finance a Public Procurement Policy Division.
(2) The Public Procurement Policy Division shall be
headed by a person with appropriate academic and professional
qualifications and experience of not less than ten years in
procurement related functions.

Functions
of the
Public
Procurement
Policy
Division

6.-(1) The functions of the Public Procurement Policy

Division shall be to(a) develop a National Procurement Policy;
(b) review procurement policies, regulations, circulars
and other related directives with a view of updating
the same;
(c) monitor the implementation of Public Procurement
Policies;
(d) advise the Central Government, local governments
and statutory bodies on issues related to
procurement policies; and
(e) develop and manage procurement cadre.
(2) For the purpose of subsection (1), the Public
Procurement Policy Division shall (a) design and implement public procurement
advisory mechanisms;
(b) monitor, evaluate and review public procurement
systems;
(c) study and mainstream best public procurement
systems;
(d) analyse public procurement issues and challenges,
advise, provide guidance and follow-up on their
implementation;

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2011

(e) develop, implement, monitor and evaluate

mechanisms for involvement of small and medium
scale enterprises in public procurement markets;
(f) conduct research and other studies on public
procurement and advise,
(g) harmonize public procurement systems in the
country and monitor their implementation;
(h) advise on applications for retrospective approval;
(i) monitor and evaluate performance of public
procurement institutions;
(j) develop public procurement and supplies cadre;
(k) develop capacity structure, human resources and
succession plans for procurement and supplies
staff;
(l) build capacity of procurement and supplies staff;
(m) develop and maintain database for procurement
and supplies staff;
(n) provide inputs and advise for the development of
public procurement and supplies curricula;
(o) facilitate appointments of heads of procurement
management units and transfer of procurement and
supplies staff;
(p) manage the establishment of Procurement
Management Units;
(q) liaise with training institutions on issues related to
capacity building of procurement staff;
(r) link the Government with stakeholders on issues
related to Public Sector Procurement; and
(s) liaise with procurement professional bodies on
matters related to professionalization of the
procurement cadre.

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Public Procurement

2011

PART III
THE PUBLIC PROCUREMENT REGULATORY AUTHORITY
Establishment
of the
Authority

7.-(1) There is established an authority to be known as

the Public Procurement Regulatory Authority.
(2) The Authority shall have all the powers necessary
or expedient for the performance of its functions and shall(a) be a body corporate with perpetual succession
and a common seal;
(b) in its corporate name, be capable of
(i) suing and be sued;
(ii) holding, purchasing and otherwise
acquiring and disposing of movable or
immovable property;
(iii) entering into any contract or other
transactions; and
(c) exercise the powers and perform the functions
conferred upon it by or under this Act; and
(d) do or suffer to do all acts and things, which a
body corporate may lawfully perform, do or
suffer to be done.
(3) The application of the common seal of the
Authority on any document shall be authenticated by the
signature of the Chief Executive Officer.
(4) A document purporting to be an instrument
issued by the Authority sealed with the seal of the Authority
and authenticated in accordance with subsection (3), shall be
deemed to be an instrument of the Authority and shall be
received as evidence without further proof.
(5) Notwithstanding the preceding provisions of this
section, and the Authority having the status of a body
corporate, the Attorney General shall have the right to
intervene in any suit or matter instituted by or against the
Authority.

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Cap.5

2011

(6) Where the Attorney General intervenes in any

matter in pursuance of subsection (5), the provisions of the
Government Proceedings Act, shall apply in relation to the
proceedings of that suit or matter as if it had been instituted
by or against the Government.

Objectives of
the
Authority

8. The objectives of the Authority shall be to(a) ensure the application of fair, competitive,
transparent, non-discriminatory and value for
money procurement standards and practices;
(b) set standards for the public procurement systems
in the United Republic of Tanzania;
(c) monitor compliance of procuring entities; and
(d) build, in collaboration with Public Procurement
Policy Division and other relevant professional
bodies, procurement capacity in the United
Republic.

Functions of
the Authority

9.-(1) The functions of the Authority shall be to(a)

(b)

(c)

advise
Government,
local
government
authorities and statutory bodies on procurement
principles and practices;
monitor and report on the performance of the
public procurement systems in the United
Republic of Tanzania and advise on desirable
changes;
prepare, update and issue authorized versions of
the
standardized
tendering
documents,
procedural forms and any other attendant
documents to procuring entities;

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(d)

2011

ensure in collaboration with relevant

professional bodies, that any deviation from the
use of the standardized tendering documents,
procedural forms and any other attendant
documents is effected only after prior written
approval of the Authority;
(e) issue guidelines under this Act;
(f) organize and maintain a system for the
publication of data on public procurement
opportunities, awards and any other
information of public interest as may be
determined by the Authority;
(g) conduct periodic inspections of the records and
proceedings of the procuring entities to ensure
full and correct application of this Act;
(h) monitor the award and implementation of
public contracts with a view to ensuring that:
(i) such contracts are awarded impartially
and on merit;
(ii) the circumstances in which each contract
is awarded or terminated, do not involve
impropriety or irregularity;
(iii) without prejudice to the functions of any
public body in relation to any contract,
the implementation of each contract
conforms to the terms thereof.;
(i) institute:
(i) procurement audits during the tender
preparatory process;
(ii) contract audits in the course of execution
of an awarded tender; and
(iii) performance audit after the completion
of the contract in respect of any
procurement as may be required;

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(j)

2011

determine, develop, introduce, maintain and

update related system to support public
procurement by means of information and
communication technologies including the use
of public electronic procurement;
(k) agree on a list, which shall be reviewed
annually, of services and supplies in common
use by more than one procuring entity which
may be subject to common procurement;
(l) administer and enforce compliance with the
provisions of this Act, regulations and
guidelines issued under this Act;
(m) undertake research and surveys nationally and
internationally on procurement matters; and
(n) undertake any activity that may be necessary
for the execution of its functions.
(2) For the purposes of discharging its functions under
this Act, the Authority shall be entitled:
(a) to be advised of the award and the variation of
any public contract by the procuring entity
responsible for such contract;
(b) subject to section 12 to have access to all books,
records, documents, or other property belonging
to the procuring entity, tenderer whether in the
possession of any officer of a procuring entity or
a tenderer.
(c) to have access to any premises or location where
work on a public contract has been or is being or
is to be carried out;

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2011

(d) in relation to any matter which is the subject of

investigation by the Authority, to have access to
all books, records, documents or other property
used in connection with the grant, issue,
suspension or revocation of any prescribed
license whether in the possession of any public
officer or any other person;
(e) have access to any premises or location where it
has reason to believe that any book, records,
document or any other property referred to in
paragraph (d) or any property which is the
subject of a prescribed licence, may be found;
(f) within reasonable hours to enter any premises
occupied by any person in order to make an
enquiry or to inspect document, record or
property as it considers necessary to any matter
being investigated by it; and
(g) subject to the provisions of sections 10 and 11,
to retain any such document, record or other
property referred to in paragraph (f).
(3) Where (a) the Authority has authorized a member of staff
of the Authority to enter premises; and
(b) the authorized officer is refused or prevented
from gaining entry to the premise,
a magistrate may on application, have power to issue a
warrant authorizing any police officer to forcibly enter the
premises to conduct the search and make copies or take
extracts of documents therein.
(4) For the purposes of subsection (2), the Authority
shall have power to require any procuring entity to furnish
the Authority information with regard to the award of any
public contract and such other information in relation thereto
as the Authority considers desirable.

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No. 7

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2011

(5)
For the purposes of paragraphs (d) and (e) of
subsection (2), the Authority shall have power to require any
public officer or any other person to furnish, in a manner and
at such time as may be specified by the Authority,
information with regard to the grant, issue, suspension or
revocation of any prescribed licence and any other
information in relation thereto as the Authority considers
desirable.
Scope of
investigations
by the
Authority

10.-(1) Subject to subsection (2), the Authority may, if it

considers necessary or desirable, conduct an investigation
into any or all of the following matters:
(a) the registration of contractors, suppliers or
consultants in relation to the specific
procurement;
(b) tender procedures relating to contracts awarded
by the public bodies;
(c) the award of any public contract;
(d) the implementation of the terms of any public
contract;
(e) the circumstances of the grant, issue, use,
suspension or revocation of any prescribed
license;
(f) the practice and procedures relating to the grant,
issue, suspension or revocation of any
prescribed license.
(2) The Authority shall, with a prior written direction of
the Paymaster General, investigate(a) any public contract or any matters concerning any
contract entered into for the purposes of defence
or for the supply of equipment to the security
forces;

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No. 7

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2011

(b) the grant or issue of any prescribed licence for the

purposes of defence or for the supply of
equipment to the security forces and any report or
comment thereon shall be made to the Pay-Master
General or the Minister or to both.
Initiation of
investigation

11. An investigation carried out pursuant to section 10

may be undertaken by the Authority on its own initiative or as
a result of representations made to it, if in its opinion, such
investigation is warranted.

Procedure in
respect of
investigation

12. The Authority may adopt whatever procedure it

considers appropriate to the circumstances of a particular case
and, subject to the provisions of this Act, may obtain
information from a person or persons and in a manner and
make enquiries as it thinks fit.

Evidence

13.-(1) Subject to the provisions of subsection (3) and

section 10(1), the Authority may at any time require any
officer or member of a public body or any other person who,
in its opinion, is able to give any assistance in relation to the
investigation of any matter pursuant to this Act, to furnish
information and produce any document under his control.
(2) The Authority may summon before it(a) any person who has made representations to it; or
(b) any officer, member or employee of a public
body, or any other person who, in the opinion of
the Authority, is capable to furnish information
relating to the investigation.
(3) No person shall, for the purposes of an investigation,
be compelled to give an evidence or produce any document or
thing, which he may not be compelled to give or produce in
proceedings in any court of law.

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No. 7

Restriction
of disclosure
of certain
matters

Public Procurement

2011

14.-(1) Where the Pay-Master General is acting on his

own initiative or at the direction of the Minister (a) gives notice that the disclosure by the Authority
or its employees of any document or information
specified in the notice, or any class of document
or information so specified, shall:
(i) involve the disclosure of the deliberations
or decision of the Government or the
Cabinet, or any committee thereof,
relating to matters of a secret or
confidential nature and is likely to be
injurious to the public interest;
(ii) prejudice the relations of the United
Republic with the government of any other
country or with any international
organization; or
(iii)
prejudice the detection of offences,
the Authority, its employees or any member of its
staff shall not communicate to any person for any
purpose any document or information specified in the
notice or any document or information of a class so
specified;
(b) certifies that the giving of any information or
the answering of any question or production of
any document would prejudice the security or
defense of the United Republic, the Authority or
its employees or staff shall not further require
such information or answer to be given or such
document or thing to be produced.

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Public Procurement

2011

(2) Except as provided for in subsection (1), no regulation

which authorizes or requires the refusal to answer any question
or the withholding of any information, document or thing on
the ground that the answering of the question or the disclosure
of the information, document or thing may be injurious to the
public interest, shall apply in respect of any investigation by or
proceedings before the Authority or its staff.
Procedure
after
investigation

15.-(1) The Authority shall, after conducting investigation

under this Act and in writing, inform the Paymaster General
and the relevant competent authority or the accounting officer
of the public body concerned of the result of that investigation
and make recommendations as it considers necessary in
respect of the matter on which investigation was conducted.
(2) The Chief Executive Officer of the Authority may,
where report of the Authority reflects adversely upon any
person, so far as practicable, inform that person of the
substance of the report.

Disciplinary
action
against
public
officers

16.-(1) The Authority shall, where during the course of its

investigation or on the conclusion thereof, it finds the evidence
of breach of duty, misconduct or criminal offence on the part
of an officer or member of a public body, refer the matter to
the competent authority
(2) The Authority shall refer the matter to the person or
persons competent to take disciplinary or any other appropriate
proceedings against the officer or member and submit a
special report to the Minister.

Proceedings
of the
Authority

17. The proceedings of the Authority or its committees

shall not be rendered void for want of form.

Powers
of the
Authority

18.-(1) The Authority shall, in the exercise of its

regulatory functions, have powers to -

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No. 7

Public Procurement

2011

(a) require any information, document, record and

report in respect of any aspect of the public
procurement process where a breach, wrongdoing,
mismanagement or collusion has been alleged,
reported or proven against any procuring entity or
tenderer;
(b) summon witnesses, call for the production of
books of accounts, plans, documents and examine
witnesses and parties concerned on oath;
(c) commission or undertake investigations and
institute procurement, contract and performance
audits;
(d) cause to be inspected any procurement transaction
to ensure compliance with tender award by a
procuring entity;
(e) act upon complaints by procuring entities,
tenderers or any other entity or person;
(f) commission any studies relevant to the
determination of award of contracts; and
(g) request any professional or technical assistance
from any appropriate body or person in Tanzania
or elsewhere.
(2) The Authority may(a) require the chairman of a tender board or
accounting officer of a public body:
(i)
to furnish any information or produce
any record or any document relating to a
contract; and
(ii)
to answer all relevant questions;
(b) examine such records or other documents and
take copies or extracts therefrom.
Cancellation
of
procurement
proceedings

19.-(1) Notwithstanding anything to the contrary provided

for in any other written law, the Authority shall, after
conducting an investigation is reasonably satisfied that there is
a breach of this Act, the Regulations or any guideline -

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No. 7

2011

(a)

direct the procuring entity to take such actions

as are necessary to rectify the contravention; or
(b)
terminate the procurement proceedings.
(2) The Authority shall, within seven days prior to
making a decision under subsection (1) (b), give the procuring
entity and any other person whom it believes that his legal
rights may be adversely affected by the decision an
opportunity to make representations.
(3) The Authority shall incur no liability towards the
procuring entity or any other person or body interested in the
tender under review or investigation by virtue of invoking its
powers under this section.
Action on
recommenda
-tion of the
Authority

20.-(1) The Authority shall, where there is persistent or

serious breach of this Act or regulations or guidelines made
under this Act, recommend to the competent authority(a)
the suspension of funds disbursements to any
procurement financed by specific public funds
where a breach has been established, to
entities, not of Government or require the
refund of the lost funds by such entities;
(b)
the replacement of the head of a Procurement
Management Unit, the Chairman, or any
member of a tender board, as the case may be;
(c)
the disciplining of the accounting officer,
chairman or a member of the tender board, the
head of procurement management unit, a
member of evaluation committee or any other
officer concerned with the procurement process
in issue; and
(d)
the temporary transfer of the procurement
functions of a procuring entity to a third party
procurement agent.

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2011

(2) The competent authority shall respond in writing to

the Authoritys recommendations on the actions taken within
fourteen days from the date of receipt of such
recommendations.
(3) The Authority shall, in its Annual Performance
Evaluation Report include(a) its audited findings and complaints investigated;
(b) its recommended corrective measures in each
case;
(c) the response and actions taken by:
(i) respective competent authority; and
(ii) relevant law enforcement and oversight
agencies;
(d) any remedial measures taken.
Establishment and
Composition
of the Board
of
Directors

21.-(1) There is established a Board to be known as the

Board of Directors of the Public Procurement Regulatory
Authority.
(2) The Board shall be the governing body of the
Authority.
(3) The Chairman and members of the Board shall be
appointed from amongst persons of good standing and
recognized for their high levels of professional, competence
and integrity.
(4) The First Schedule to this Act shall have effect
regarding the composition, appointment and procedures of the
Board.

Committees
of
the Board of
Directors

22.-(1) The Board may establish such committees that

may be necessary for the better carrying out of the functions of
the Authority, but, in any case the committees shall not exceed
five.
(2) The Board shall determine the terms of reference of
the committees, their composition and their terms and
conditions of service.

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2011

Appointment of
Chief
Executive
Officer

23.-(1) There shall be a Chief Executive of the

Authority who shall be appointed by the President on such
terms and conditions as the President determines on contract
of four years subject to renewal for only one further term.
(2) The Chief Executive Officer shall be appointed from
among the registered professionals save for lawyers, business
administrators and economic development planners who has
at least ten years of experience in either engineering,
architecture, law, procurement and supplies management,
quantity surveying, business administration, economic
development planning or in any related fields and who have
had substantial academic qualifications and experience in such
fields including proven record of procurement experience.
(3) Subject to the general supervision and direction of the
Board, the Chief Executive Officer shall be responsible for
the(a) management and operations of the Authority;
(b) management of the funds, property and business
of the Authority;
(c) administration, organization and control of the
officers and staff of the Authority; and
(d) promotion of training and disciplining of the
officers and staff of the Authority in accordance
with their terms and conditions of appointment.
(4) The Chief Executive Officer shall be the accounting
officer of the Authority and in discharging the duty imposed
under this section, he shall, with necessary variations, be
guided by the laws governing employment in the public
service.

Directors,
consultants
and other
staff of the
Authority

24.-(1) The Authority shall employ Directors who shall

be principal assistants to the Chief Executive Officer, other
officers and staff of such number and titles as may be
necessary for the efficient discharge of the functions of the
Authority on such terms and conditions as may be determined
by the Board.

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Public Procurement

2011

(2) The Authority may appoint consultants and experts

of the Authority in various disciplines on such terms and
conditions as the Authority may from time to time decide or
determine.
(3) The Authority shall establish a competitive selection
procedure for the appointment of all employees, consultants
and experts.
(4) The Authority shall, comply with the competitive
selection procedure established under subsection (3),
whenever it appoints employees, consultants or experts.
(5) A person who was the chairman or a member of the
Board, the Chief Executive Officer or an employee of the
Authority shall not, during a period of twelve months after the
expiration or termination of the term of office with the
Authority(a) enter into any contract of employment or supply
of services to any person or organization who was
subject of a contract with the Authority at the
time when such person was the member,
Chairman, Chief Executive Officer or employee
of the Authority;
(b) acquire or hold any financial interest, whether as
an employee, partner, shareholder, officer or joint
venture, in any business or organization supplying
services to any person or organization who was
subject of a contract with the Authority at the
time when such person was the member,
Chairman, Chief Executive Officer or employee
of the Authority.
Funds
of the
Authority

25.-(1) The funds of the Authority shall consist of(a) money appropriated by Parliament;
(b) loans or grants;
(c) revenues collected from goods or services that are
rendered by the Authority;

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Public Procurement

2011

(d) any other money received or made available to the

Authority for the purposes of its functions;
(2) The Authority may charge and collect fees on
documents.
(3) There shall be paid from the funds of the Authority (a) the salaries, allowances of the staff of the
Authority;
(b) reasonable travelling, transport and subsistence
allowance for members or members of any
committee of the Authority when engaged on the
business of the Authority, at such rates as the
Minister may determine; and
(c) any other expenses incurred by the Authority in
the performance of its functions.
(4) The Authority may invest, in such manner as it
considers fit, such amount of its funds which it does not
immediately require for the performance of its functions.
(5) The Authority shall open and maintain bank accounts
in banks approved by the Board.
Books of
accounts

26.-(1) The Authority shall maintain proper books of

accounts and other records relating to its accounts and prepare
an annual statement of accounts including the income and
expenditure account and the balance sheet.
(2) The books of accounts and other records shall be open
for inspection by the Minister or any person duly authorized
by him in that behalf.

Audit of
accounts

27.-(1) The accounts of the Authority shall be audited by

the Controller and Auditor-General.

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Public Procurement

2011

(2) The Controller and Auditor-General and or other

person appointed by him in connection with the auditing of the
accounts of the Authority under this Act shall have the same
rights, privileges and authorities in connection with such audit
as the rights, privileges and authorities the Controller and
Auditor-General has in connection with the auditing of
Government accounts.
(3) The auditor to the Authority shall, for the performance
of his duties under subsection (1), have access to all books of
accounts, records, returns, reports and other documents
relating to the Authority accounts at all reasonable times.
(4) The auditor to the Authority shall, in respect of each
financial year, certify whether or not(a) he has received all the explanations and other
information necessary for the performance of his
duties;
(b) the accounts of the Authority have been properly
kept; and
according to the explanations and other information
received, and the books of account, records, returns,
reports and other documents relating to the Authority
accounts produced to him, the accounts of the
Authority reflect a true and accurate financial position
of the Authority.
(5) The accounts of the Authority as certified by the
Controller and Auditor-General or any other person appointed
by him on his behalf together with the audit report shall be
forwarded annually to the Board and the Minister.
(6) The Minister shall cause the accounts and the audit
report received under subsection (5) to be laid before
Parliament within three months of receiving the report or at the
next sitting of Parliament, whichever comes first.

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Public Procurement

2011

Annual
Management Plan
and budget

28.-(1) The Chief Executive Officer shall, not later than

three months before the end of each financial year, prepare and
submit to the Board an Annual Management Plan which
include a budget for its approval for the next financial year.
(2) The Chief Executive Officer may at any time before
the end of a financial year prepare and submit to the Board for
approval any estimates supplementary to the budget of the
current financial year.
(3) No expenditure shall be made out of the funds of the
Authority unless that expenditure is part of the expenditure
approved by the Board under the estimates for the fiscal year
in which the expenditure is to be incurred, or in the
supplementary budget for that year.
(4)
Upon approval of an annual budget or any
supplementary budget, the Board shall submit such budget to
the Minister for approval.
(5) Subject to subsection (4), the Minister shall determine
in respect of the Authority the amount of money which shall
be treated as public funds to be credited to the Consolidated
Fund and the amount of money which shall remain as funds of
the Authority for its budgetary purposes.

Annual
Report

29.-(1) The Authority shall, within three months after the

end of each financial year, submit to(a) the Minister, an Annual Performance Evaluation
Report in respect of that year's activities
consisting of(i)
evaluation of the operations of the Authority
and the annual management plan;
(ii) an evaluation of operations of procuring
entities in respect to compliance;
(iii) audit findings, complaints investigated and
corrective actions taken;
(iv) any other information the Board may direct;
and

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2011

(b)

Internal
Audits and
Periodic
Audit
Reports

the Controller and Auditor-General the

accounts of the Authority for the financial year
and the Annual Performance Evaluation Report.
(2) The Minister shall lay before the National Assembly
the Annual Performance Evaluation Report within three
months from the date of his receiving the report, or at the next
sitting of Parliament, whichever event comes first.
(3)
The Authority may, where circumstances require,
prepare a special report on any matter relating to procurement
to be submitted to the Minister.
30. The Head of Internal Audit shall be responsible for
the internal auditing of the Authoritys operations and shall
submit to the Audit Committee with a copy to the Chief
Executive Officer, quarterly report in respect of every three
months of a financial year.
PART IV
INSTITUTIONAL ARRANGEMENTS

Tender
Boards

Cap.290

31.-(1) Except where it is provided otherwise in this

Act, or regulations under this Act, each public body shall
establish a tender board for procurement of goods, services,
works and disposal of public asset by tender.
(2) The composition of tender board, the method of
appointment of its members, and the procedures to be
followed by such tender boards other than local government
authority tender Board, shall be as prescribed in the Second
Schedule to this Act.
(3) The composition of local government authority
tender board and the method of appointment of the
members, and the procedures to be followed by such a
tender board, shall be prescribed in Regulations made
pursuant to the provisions of the Local Government
Finances Act.

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Public Procurement

2011

(4) The Regulations made pursuant to subsection (3)

shall, inter alia, provide for the procedure under which a
local government authority through its committee
responsible for finance and planning shall perform its
oversight function on public procurement matters.
(5) Members of the tender board shall be appointed on
the basis of their technical competence required for the
discharge of the functions of the tender board.
(6) A member of the tender board or committee
thereof, who is a member of a company, firm or other body
or is a partner or is in the employment of a person or a
company or other body or is married to a person who has
submitted an offer for the supply of goods or for the
provision of services, execution of works or acquisition of
public assets by tender in connection therewith which is the
subject of consideration by the tender board, shall disclose
the fact and shall not take part in the consideration or
discussion of or vote on any question relating to such offer.
Notification
to the
Authority of
composition
of tender
board

Functions of
tender boards
and budget
approving
authority

32.-(1)
The accounting officer shall inform the
Authority of the composition of the tender board and the
qualifications of its members not later than fourteen days
from the date of its appointment.
(2) Where the organisational structure of a particular
procuring entity is too small to be able to constitute a tender
board, the Authority shall prescribe the procedure to be
followed.
33.-(1) The functions of the tender board shall be to(a) deliberate on the recommendations from the
Procurement Management Unit and approve
award of contracts;
(b) review all applications for variations, addenda or
amendments to ongoing contracts;
(c) approve tendering and contract documents;

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2011

(d) approve procurement and disposal by tender

procedures; and
(e) ensure that best practices in relation to
procurement and disposal by tender are strictly
adhered by procuring entities.
(2) The budget approving authority shall, in respect of
procurement, be responsible for(a) reviewing and approving of Annual Procurement
Plan based on its budget and action plan;
(b) reviewing of quarterly procurement report
submitted by the accounting officer;
(c) ensuring that the organisation complies with the
provisions of the Act and regulations;
(d) ensuring that the authoritys recommendations
with respect to established wrongdoings in
procurement activities are implemented; and
(e) disciplining of the staff implicated on
wrongdoings under subparagraph(d).
(3) The budget approving authority may request the
Authority to carry out procurement audits or investigations
where it is not satisfied with the implementation of any
procurement in the organisation.
Powers of
tender boards

34. In the exercise of their powers under this Act, tender

boards may (a)

(b)
(c)

Award of
contracts

request for any professional or technical advice

from any appropriate body or person in Tanzania or
elsewhere, and
examine such records or other documents and take
copies or extracts therefrom; and
do all such acts and things as they may be
considered reasonable and justifiable to the
attainment of their objects.

35.-(1) Notwithstanding any other enactment, no public body

shall -

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Public Procurement

No. 7

(a)

2011

advertise, invite, solicit or call for tenders or

proposals in respect of a contract unless authorised
by the accounting officer; and

(b)

award any contract unless the necessary approvals

have been granted.
(2) No person or firm shall sign a contract with any public
body unless the award has been approved by the tender board.
(3) Any contract signed without prior approval of the tender
board shall be null and void.
(4) The accounting officer shall seek approval of the PayMaster General or the respective budgetary approving authority
prior to communicating to the tenderer the award the value of
which exceeds the approved budget and the Pay-Master General
or the respective budgetary approving authority shall, within
fourteen working days, grant the approval otherwise the request
shall be deemed to have been disapproved.
(5) The accounting officer who fails to comply with the
provision of subsection (4) shall be held personally liable.
(6) The acceptance of a tender shall be communicated in
writing by a registered post or electronically to a successful
tenderer by the accounting officer.
Functions and
powers of
accounting
officer

36.-(1) The accounting officer shall have the overall

responsibility for the execution of the procurement process in the
procuring entity, and in particular, shall be responsible for:
(a) establishing a tender board in accordance with this
Act;
(b) appointing the members of the tender board specified
in the Second Schedule;
(c) causing to be established a Procurement Management
Unit staffed to an appropriate level;
(d) approving all procurement opportunities;
(e) appointing the evaluation committee and negotiation
team;
(f) communicating award decisions;
(g) certifying the availability of funds to support the
procurement activities;

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(h)

2011

signing contracts for the procurement activities on

behalf of the procuring entity;
(i) handling complaints by suppliers, contractors or
consultants;
(j) submitting a copy of complaints and reports of the
finding to the Authority;
(k) ensuring that the implementation of the awarded
contract is in accordance with the terms and conditions
of the award;
(l) submitting to the Authority a list of contracts awarded,
annual procurement plan and a list of blacklisted firms;
(m) implementing decisions made by the Authority and
Appeals Authority after investigation or adjudication
of a complaint;
(n) providing feedback on the implementation of the
decision of the Authority or the Appeals Authority
within fourteen days of receiving communicating of
the decision.
(2) The accounting officer may request for any professional
or technical advice from any appropriate body or person in
Tanzania or elsewhere if his entity does not have the required
technical experts.
(3) The accounting officer may, before communicating
award decision, require the tender board to provide a briefing of
the award of a particular tender and may require the Chairman,
any member of tender board or evaluation team or the
Procurement Management Unit to produce any record or other
documents relating to any tender and to answer all relevant
questions.
(4) Where the accounting officer is not satisfied with the
decision of the tender board, he shall:
(a) return the decision to the tender board for review
giving written reasons for the dissatisfaction; and
(b) where not satisfied with the outcome of the
review, refer the matter to the Authority for
advice.
(5) The accounting officer shall be responsible for
procurement decisions made by his procuring entity.
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No. 7

Establishment
and
Composition
of a
Procurement
Management
Unit

Public Procurement

2011

37.-(1) There shall be established in every procuring entity a

Procurement Management Unit staffed to an appropriate level.
(2) The Procurement Management Unit shall consist of
procurement and other technical specialists together with the
necessary supporting and administrative staff.
(3) The Procurement Management Unit shall be headed by a
person with appropriate academic and professional qualifications
and experience in procurement functions registered by the
Procurement Professional Body.
(4) The Head of the Procurement Management Unit shall
report directly to the accounting officer of the procuring entity.
(5) The accounting officer shall ensure that the Procurement
Management Unit has a sub vote and is allocated fund in the
budget to carry out its responsibilities under this Act.

Functions of a
Procurement
Management
Unit

38. The Procurement Management Unit shall (a) manage all procurement and disposal by tender
activities of the procuring entity except
adjudication and the award of contract;
(b) support the functioning of the tender board;
(c) implement the decisions of the tender board;
(d) act as a secretariat to the tender board;
(e) plan the procurement and disposal by tender
activities of the procuring entity;
(f) recommend procurement and disposal by
tender procedures;
(g) check and prepare statements of requirements;
(h) prepare tendering documents;
(i) prepare advertisements of tender opportunities;
(j) prepare contract documents;
(k) issue approved contract documents;
(l) maintain and archive records of the
procurement and disposal process;
(m) maintain a list or register of all contracts
awarded;
(n) prepare monthly reports for the tender board;

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(o)

(p)

(q)
User
department

2011

prepare and submit to the management meeting

quarterly reports on the implementation of the
annual procurement plan;
co-ordinate the procurement and disposal
activities of all the departments of the
procuring entity; and
prepare other reports as may be required from
time to time.

39.-(1) The user department of a procuring entity shall

perform the following functions(a) liaise with and assist the Procurement
Management Unit throughout the procurement
or disposal by tender process to the point of
contract placement;
(b) initiate procurement and disposal by tender
requirements and forward them to the
Procurement Management Unit;
(c) prepare technical inputs to statements of
requirements and or terms of reference for
procurement requirements to the Procurement
Management Unit;
(d) propose technical specifications to the
Procurement
Management
Unit
when
necessary;
(e) participate in tender evaluation;
(f) certify for payments to suppliers, contractors or
consultants;
(g) report any departure from the terms and
conditions of an awarded contract to the
Procurement Management Unit;
(h) forward details of any required contract
amendments to the Procurement Management
Unit for action;

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2011

(i)

maintain and archive records of contracts

management;
(j) prepare any reports required for submission to
the Procurement Management Unit, the tender
board or the accounting officer;
(k) oversee contract implementation including
reviewing and approving technical reports,
design or any outputs as per contract; liaise with
the Procurement Management Unit during
budgeting; and
(l) liaise with the Procurement Management Unit
during budgeting.
(2) The user department shall prepare a schedule of
requirements for procurement as part of the budget process,
which shall be submitted to the Procurement Management
Unit for compilation of annual procurement plan.
Evaluation
Committee

40.-(1) There shall be formed for each tender an

evaluation committee which shall conduct the evaluation and
report to the Procurement Management Unit.
(2) The membership of the evaluation committee shall
be recommended by the Procurement Management Unit, in
accordance with Regulations made under this Act, and
approved by the accounting officer.
(3) The number of the members of the evaluation
committee shall depend on the value and complexity of the
procurement as specified in the Regulations made under this
Act.
(4) Members shall be of an appropriate level of
expertise and experience, depending on the value and
complexity of the procurement requirement.

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2011

(5)
Members of the evaluation committee may be
external to the procuring entity, where the required skills or
experience are not available within the procuring entity or
where members are indisposed or have a conflict of interest.
(6) All members of the evaluation committee shall sign
the Code of Ethics provided under the Regulations made
under the Act, declaring that they do not have a conflict of
interest in the procurement requirement.
(7) The meetings of the evaluation committee, the
conduct of the evaluation and the evaluation methodologies
shall be executed in accordance with the regulations and
guidelines made under this Act.
Independence
of functions
and powers

41. Subject to the provisions of this Act, the accounting

officer, the tender board, the Procurement Management Unit,
the user department and the Evaluation Committee shall act
independently in relation to their respective functions and
powers.

Delegation of
powers
by the
accounting
officer

42.-(1) An accounting officer may, in accordance with

the terms and conditions specified in the regulations made
under this Act, delegate the procurement function of the
procuring entity to(a) a sub-division of that entity;
(b) another procuring entity; or
(c) a third party procurement agency.
(2) An accounting officer may delegate to a head of
department within the same procuring entity, his authority to
procure up to a limit not exceeding that which is specified in
the regulations and such delegation shall be made in writing in
accordance with the procedures stipulated in the regulations.

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Third party
procurement

Public Procurement

2011

43.-(1) Where there is lack of technical capacity and,

subject to the procedures laid down in the regulations, a
procuring entity may engage the Agency or third party
procurement services.
(2) The accounting officer of a procuring entity shall, in
deciding to invite third party procurement services(a) ensure that funds are available to pay in full and
on time for those services;
(b) follow the procedures laid down in the
regulations.

Procurement
procedure for
the Authority
and Appeals
Authority

44.-(1) Procurement activities of the Authority and of the

Appeals Authority shall be contracted out to the Agency in
accordance with procedures stipulated in the regulations made
under this Act.
(2) Without prejudice to subsection (1), procurement of
minor value items not exceeding the limits prescribed in the
Regulations shall be procured by the Authority or the Appeals
Authority.

Disagreemen
ts in
decisions

45. Disagreements between a tender board and an

accounting officer, a tender board and a Procurement
Management Unit and an evaluation committee or a user
department concerning any decision pertaining to the
recommendation for the award of contract, application or
interpretation of any procurement method, process or practice
save for section 36(4), shall be resolved in accordance with
the procedures set out in the regulations made under this Act.

Confidentiali
ty of
documents

46.-(1) A person having an official duty or being

employed in the administration of this Act or engaged as a
consultant to the procuring entity shall consider and deal with
all documents and information relating to the functions of the
procuring entity as confidential.

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2011

(2) Subject to section 10 no person in possession of or

control over any document or information relating to any
business or transaction of the procuring entity shall
communicate or attempt to communicate any information
contained in such document or pass on such documents to any
person other than the Accounting officer, a member of the
tender board or the Procurement Management Unit.
PART V
PUBLIC PROCUREMENT PRINCIPLES
Standards
of equity

47.
Procuring entities shall, in the execution of their
duties, strive to achieve the highest standards of equity, taking
into account(a) equality of opportunity to all tenderers;
(b) fairness of treatment to all parties; and
(c) the need to obtain the best value for money in terms
of price, quality and delivery having regard to set
specifications and criteria.

Duties of
procuring
entities

48.-(1) Notwithstanding anything to the contrary contained

in any written law, where any expenditure is to be incurred on
any procurement of goods, works or services, it shall be the duty
of (a) the accounting officer designated as such under the
Public Finance Act,
(b) the accounting officer designated as such under the
Local Government Finances Act; or
(c) in respect of any other public body, the chief
executive officer of that public body,
to ensure the procurement of goods, works or services is in
accordance with the procedures prescribed under this Act or
Regulations.

Cap.348
Cap.290

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Public Procurement

2011

(2) The head of internal audit of each public body shall in

his quarterly audit report include a report on whether this Act
and Regulations made under it has been complied with and the
accounting officer upon receiving such report shall submit a
copy thereof to the Authority.
(3) The external auditor of every public body shall, in his
annual report, state whether subsection (1) has been complied
with.
(4) Subject to subsection (5) every Accounting officer shall
be accountable for failing to comply with the provisions of
subsection (1).
(5) Where an accounting officer satisfies the Authority
that he had, in accordance with the provisions of any rules or
Regulations made under this Act, delegated his functions under
subsection (1) to any other person or committee, then such other
person or every member of the committee shall also be
accountable for the failure to comply with the provisions of
subsection (1).
(6) The Authority shall, in the case of any failure to
comply with the provisions of subsection (1), take appropriate
corrective or punitive measures as it may consider necessary.
Approval
of
annual
procurem
ent plan

49.-(1) A procuring entity shall prepare its annual

procurement plan in a rational manner and in particular
shall(a)
avoid emergency procurement wherever
possible;
(b)
aggregate its requirements wherever possible,
both within the procuring entity and between
procuring entities, to obtain value for money
and reduce procurement costs;

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2011

(c)

avoid splitting of procurement to defeat the

use of appropriate procurement methods
unless such splitting is to enable wider
participation of local consultants, suppliers or
contractors in which case the Authority shall
determine such an undertaking; and
(d)
integrate its procurement budget with its
expenditure programme.
(2) The annual procurement plan shall be approved by
an appropriate budget approving authority.
(3) The procuring entity shall observe the approved
annual procurement plan and any unplanned procurement
shall get a prior written approval of the accounting officer.
Procurem
ent of
common
used
items and
services

50.-(1) The procuring entity shall, for the purpose of

efficiency of procurement process and reduction of
procurement transaction costs within and across public
bodies, engage in closed or open framework agreements in
accordance with the procedures prescribed in the Regulations
where it is determined that:
(a)
the need for the subject matter of procurement
is expected to arise on a repeated basis during
a given period of time;
(b)
by virtue of the nature of the subject matter of
the procurement, the need for it may arise on
an urgent basis during a given period of time;
and
(c)
other grounds and circumstances that justify
recourse to a framework agreement procedure.
(2)
The Agency shall, in collaboration with the
Authority set procedures for procurement of common use
items and services by procuring entities through framework
agreements.

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2011

(3)
For the purpose of this section, closed or open
framework agreement means an agreement with specified
terms and conditions with or without an agreed price,
respectively.
Qualifications of
tenderers

51.-(1) Tenderers shall, in order to participate in

procurement proceedings, have to qualify by meeting
appropriate criteria set out in accordance with this Act and
Regulations made under it.
(2)
Local tenderers wishing to participate in any
procurement proceeding shall satisfy all relevant
requirements for registration with appropriate statutory
bodies in Tanzania.
(3)
Foreign tenderers wishing to participate in the
proceedings are exempted from the requirement of
subsection (2), but where as a result of the procurement
proceedings, any foreign tenderer is selected as having
submitted the lowest evaluated responsive tender or the best
ranked proposal, such a tenderer shall register with the
appropriate professional statutory body and shall be required
to submit evidence of registration as an approved supplier,
contractor or consultant in Tanzania.
(4) Subject to sections 53 and 54 of this Act, any
qualification criteria shall be made known to, and apply
equally to all tenderers and a procuring entity shall impose no
discriminatory criteria, requirement or procedure with respect
to the qualifications of any tenderer.

Prequalification
proceedings

52.-(1) A procuring entity may engage in prequalification proceedings with a view to identifying tenderers
prior to inviting tenders for the procurement of goods, works
or services.
(2) The circumstances and procedures for prequalification shall be prescribed in the regulations made
under this Act.

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Postqualification

Public Procurement

2011

53.-(1) The procuring entity shall, where tenderers have

not been pre-qualified, determine whether the tenderer whose
tender or proposal has been determined to offer the lowest
evaluated tender, in the case of procurement or the highest
evaluated tender in the case of disposal of public assets by
tender, has the legal capacity, capability and resources to
carry out effectively the contract as offered in the tender
before communicating the award decision.
(2)
The criteria to be met shall be set out in the
tendering documents and if the tenderer does not meet any of
these criteria, the tender shall be rejected and the procuring
entity shall make a similar determination for the next lowest
evaluated tenderer, in the case of procurement or the next
highest evaluated tender, in the case of disposal of public
assets by tender.
(3) In case of a foreign company, the procuring entity
shall seek the reference of legal existence of the tenderer
from Tanzania Diplomatic Mission abroad or from any other
reliable source.
(4) A procuring entity shall require a tenderer who has
submitted a lowest evaluated tender in the case of
procurement or highest evaluated tender in the case of
disposal by tender to demonstrate again its qualifications
before the award of contract is confirmed.
(5) The criteria and procedures to be used in subsection
(4) shall be the same as those used in the pre-qualification
proceedings set out in section 52 of this Act and shall be
specified in the tendering documents prepared by the
procuring entity.
(6) The procuring entity shall, where tenderer with the
lowest or highest evaluated tender fails to post-qualify, reject
its tender and select the next lowest or highest evaluated
tender from the remaining tenders, provided that the
procuring entity has a right to reject all remaining tenders in
accordance with section 59.

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National
preferences

Public Procurement

2011

54.-(1) Tenderers are allowed to participate in

procurement proceedings without regard to their nationality,
except where the procuring entity has limited participation in
procurement proceedings on the basis of nationality in
accordance with this Act, the Regulations, or any provisions
of any other written law.
(2) The procuring entity shall, when procuring goods,
works or services by means of international or national
tendering, or when evaluating and comparing tenders, grant a
margin of preference for the benefit of tenders for certain
goods manufactured, mined, extracted or grown in the United
Republic, for works by Tanzania contractors or services
provided by Tanzania consultants, provided that this is
clearly stated in the tender documents subject to the
provisions prescribed in the regulations made under this Act.
(3) Tanzania contractors or consultants shall be eligible
to be granted a margin of preference as provided for in
subsection (2) only if they meet the following criteria (a) for individual companies (i) are incorporated or registered in the United
Republic of Tanzania;
(ii) majority of the paid up share capital of the
company is owned either by the
Government or by citizens of Tanzania;
(iii) there is no arrangement whereby any major
part of the net profits or other tangible
benefits of the domestic company will
accrue or be paid to persons who are not
citizens of Tanzania or to companies which
would not be eligible under this section.
(b) for joint ventures of local companies (i)
individual member companies are
incorporated or registered in the United
Republic;

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2011

(ii)

(c)

majority of the paid up share capital of

the individual companies are held by
citizens of Tanzania;
(iii) the joint venture itself is registered in
Tanzania;
(iv) do not have arrangement whereby any
major part of the net profits will accrue
or be paid to persons who are not
citizens of Tanzania or to companies
which would not be eligible under this
section;
for partners or individual persons trading as
contractors or consultants the majority are held
by citizens of Tanzania.

(4) For all procurement under international and national

competitive tendering, incentives set out in the Regulations
made under this Act, shall be used to encourage foreign firms
to team up with Tanzanian tenderers in the form of joint
venture or subcontracting arrangements in the tender process
and in the execution of the contract.
Exclusive
preferenc
e to local
persons or
firms

55.-(1)
Where financial resources are exclusively
provided by a Tanzanian public body, each procurement of
works, goods or services that has a value not exceeding a
threshold specified in the Regulations shall be reserved
exclusively for local persons or firms.
(2) Where the procuring entity does not proceed with
the local person or firm set-aside under subsection (1), and
procures on unrestricted basis, the procuring entity shall
include in the procurement file the reason or reasons for the
unrestricted procurement.

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2011

(3) Where procuring entity receives only one acceptable

offer from a responsible local person or firm in response to
procurement set-aside, the procuring entity may consider to
make an award to that person or firm.
(4) Where the procuring entity receives no acceptable
offers from responsible local persons or firms, the set-aside
procurement shall be withdrawn and if the requirements are
still valid, new offers shall be resolicited on unrestricted
basis.
Procurem
ent from
Agency

56. A procuring entity shall procure from the Agency

following a procedure to be prescribed in the regulations
made under this Act.

Language

57.-(1) Pre-qualification documents and tender

documents shall be written in English and tenders shall be
invited in that language except as provided for in subsection
(2).
(2) Where a procuring entity has limited participation to
national competitive tendering or to Tanzania nationals only,
tender documents may be written in either Kiswahili
language or English language and tenders may be requested
for in either of the languages.

Securities

58.-(1) Where a procuring entity requires tenderers

who are submitting tenders to provide any form of tender
security or bid securing declaration, such requirement shall
apply equally to all tenderers.
(2) A successful tenderer shall be required to submit
performance guarantees, subject to the conditions specified in
the regulations.
(3) Subject to the provisions of subsection (1) and (2),
the types of securities shall be specified in the regulations.

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2011

(4) The Authority shall issue guidelines, to be updated

from time to time, on the minimum values and modalities for
provision of tender security and other forms of guarantees or
bonds.
Rejection
of tenders
or
proposals

59.-(1) Tender documents and request for proposals may

provide that procuring entities reject all tenders or all
proposals.
(2) The rejection of all tenders or all proposals under
this section shall be justified where(a) there is lack of effective competition;
(b) tenders or proposals are not substantially
responsive to the tender documents or to the
request for proposals;
(c) the economic or technical data of the project
have been altered;
(d) tenders or proposals involve costs substantially
higher than the original budget or estimates;
(e) exceptional circumstances render normal
performance of the contract impossible;
(f) tenders received contain serious irregularities
resulting in interference with the normal play of
market forces; or
(g) funds voted or earmarked for the procurement
have not been withheld, suspended or have
otherwise not been made available.
(3) The lack of competition shall not be determined
solely on the basis of the number of tenderers or persons who
made proposals, and where all tenders or proposals are
rejected, the procuring entity shall review the causes
justifying the rejection and shall consider (a)
making revision to the conditions of contract,
design and specifications, scope of the
contract, or a combination of these before
inviting new tenders; or

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2011

(b)

revising the request for proposals (including

the short list) and the budget.
(4) Where the rejection of all tenders or all proposals is
due to lack of competition, wider advertising shall be
considered and where the rejection is due to most of the
tenders or proposals being non-responsive, new tenders or
new proposals may be invited from the initially pre-qualified
firms, or with the prior agreement of the appropriate tender
board, from only those who submitted tenders or proposals in
the first instance.
(5) The appropriate tender boards prior approval shall
be sought before rejecting all tenders or all proposals,
soliciting new tenders or proposals or entering into
negotiations with the lowest evaluated tenderer.
(6) Subject to the provisions of subsection (5) the
accounting officer shall seek approval from the Authority
prior to rejecting tenders or proposals.
Acceptance of
tender and
entry into
force of a
procurem
ent
contract

60.-(1) Subject to the provisions of section 59, the tender

or proposal that has been ascertained to be the successful
tender or proposal pursuant to the provision of this Act shall
be accepted.

(2)
The accounting officer shall be notified by the
tender board of its award decision within three working days
of making the decision.
(3) Upon receipt of notification, the accounting officer
shall, immediately thereafter issue a notice of intention to
award the contract to all tenderers who participated in the
tender in question giving them fourteen days within which to
submit complaints thereof, if any.

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2011

(4) Subject to subsection (3), the accounting officer of

a local government authority shall, before issuing a notice of
intention to award a contract, submit the award decision to
the Committee responsible for finance and planning, for
scrutiny, and where the Committee is dissatisfied with the
decision of the tender board, it shall request the Authority to
conduct an investigation pursuant to section 33(3).
(5) Where no complaints have been lodged pursuant to
subsection (3) the accounting officer shall issue a notice of
acceptance to the successful tenderer.
(6) The notifications referred to in subsection (3) and
(5) shall be communicated in a written or electronic form as
prescribed in the tender document and be signed by
accounting officer.
(7)
Where a tender, offer or proposal has been
accepted by the Accounting Officer, the procuring entity and
the person whose tender, offer or proposal has been accepted
shall enter into a formal contract for the supply of goods,
provision of services or undertaking of works.
(8) A formal contract shall be in such form and contain
such terms, conditions and provisions as contained in the
tender document.
(9) Any formal contract above the thresholds specified
in the Regulations arising out of the acceptance of a tender,
offer or proposal under this Act shall be vetted by the
Attorney General before being signed by the parties.
(10) Contracts below specified thresholds in the
regulations shall be vetted by legal officers employed by
respective procuring entities.
(11) A procurement contract shall enter into force
when a written acceptance of a tender is communicated to the
successful tenderer.

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Records,
informati
on and
notices

Blacklisting

Public Procurement

2011

(12) The accounting officer shall, within thirty days

from the date of award notify the Authority, the name of the
person or body to whom the contract is awarded, the amount
of tender or proposal and the date on which the award was
made.
(13)
The parties may use hand written or digital
signatures in signing contracts specified under subsection (9).
(14)
The accounting officer shall, within thirty days
after the communication of award, notify unsuccessful
tenderers the name of the person to whom the contract is
awarded and the contract amount.
61.-(1) A procuring entity shall maintain a record of its
procurement proceedings in which it is involved, including
decisions taken and the reasons for it and such record shall be
kept for a period of not less than five years from the date of
completion of the contract and be made available when
required to the Minister and the Controller and AuditorGeneral.
(2) The record referred to in subsection (1) may, under
special circumstances, be kept beyond the period specified in
that subsection in the manner and duration prescribed in the
regulations.
(3) A list of tenderers who submitted tenders and the
prices tendered, as read out at the time of opening the tenders
in public, may be made available to tenderers and to the
general public.
62.-(1) The Authority shall have power to blacklist a
tenderer for a specified time from participating in public
procurement proceedings and notify all procuring entities on
such actions.

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2011

(2) A tenderer who has been blacklisted and barred from

taking part in public procurement by a foreign country,
international organisation or other foreign institutions shall
automatically be blacklisted from participating in public
procurement in the United Republic (a)
in the case of fraud and corruption, for such
period as is debarred by that foreign country,
international organisation or foreign institution
plus a further period of ten years; and
(b)
in the case other than fraud or corruption, for
such period as is debarred by that foreign
country, international organisation or foreign
institution plus a further period of five years.
(3) A tenderer shall be debarred and blacklisted from
participating in public procurement or disposal proceedings if(a)
fraud or corrupt practices is established against
the tenderer in accordance with the provisions
of this Act;
(b) the tenderer fails to abide with a bid securing
declaration;
(c)
the tenderer breaches a procurement contract;
(d) the tenderer makes false representation about
his qualifications during tender proceeding.
(4) The Authority may debar and blacklist a tenderer
from participating in public procurement on other grounds as
may be deemed necessary by the Authority.
(5) Subject to subsections (3) and (4), the procedure for
debarment shall be stipulated in the Regulations.
(6) A tenderer blacklisted pursuant to this section may
appeal against the decision to the Appeals Authority within
twenty one days from the date when he became aware or
should have become aware of such decision.
(7) The Authority shall keep and maintain a register of
all blacklisted firms in accordance with this Act.

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2011

(8) A tenderer blacklisted under this section shall not be

permitted to start a new supplies, contracting or consulting
firm during that period.
(9) Procuring entities shall not procure from, contract
with or engage a tenderer who has been blacklisted from
participating in public procurement proceedings pursuant to
this Act.
(10) The Authority shall inform the relevant professional
bodies upon debarring and blacklisting a tenderer.
(11) For purpose of this section, the word tenderer
includes directors of a company or firm.
PART VI
METHODS OF PROCUREMENT AND PROCESSES
Application
of
the basic
principles of
procurement
and disposal

63.-(1) All public procurement and disposal by tender

shall be conducted in accordance with the basic principles set
out in this Act.
(2) Subject to this Act all procurement and disposal shall
be conducted in a manner that maximizes competition and
achieve economy, efficiency, transparency and value for
money.

Selection of
methods of
procurement

64.-(1) Procuring entity engaging in the procurement of

goods, works, services, non consultancy services or disposal
by tender shall apply competitive tendering, using the
methods prescribed in the regulations depending on the type
and value of the procurement or disposal and, in any case, the
successful tenderer shall be the tenderer evaluated to have the
capacity and capability to supply the goods, to provide the
services or to undertake the assignment or the highest
evaluated offer in case of services for revenue collection or
disposal of public assets.

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Public Procurement
(2) In circumstances where (a)
suppliers, contractors or consultants have
already been pre-qualified pursuant to section
52;
(b)
there is an urgent need for the goods, works, or
services such that it would be impracticable to
engage in open national or international
tendering on competitive selection; or
(c)
there is need to achieve certain social objectives
by calling for the participation of local
communities;
the procuring entity may either restrict the issue of
tenders in accordance with the procedures set out in
the Regulations.

(3)

For the purposes of subsection (2)(a) circumstances giving rise to the urgency were
neither foreseeable by the procuring entity nor
caused by dilatory conduct on its part; and
(b) the procuring entity shall include in the records
required under section 61 a statement of the
grounds for its decision and the circumstances
leading to, or justifying the restriction.
(4) The procurement of commodities such as grain
and other food stuff, animal feeds, fuel, fertilizer, the market
price of which fluctuate seasonally depending upon demand
and supply at any particular time, shall be carried out on a
seasonal basis using methods prescribed in the regulations.
Emergency
procurement

65.-(1) Emergency procurement may be made where the

accounting officer determines that it is in the public interest
that goods, works or services be procured as a matter of
urgency.
(2) For the purpose of subsection (1), emergency
procurement shall meet one of the following criteria:

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2011

(a) compelling urgency that creates threat to life,

health, welfare or safety of the public by reason
of major natural disaster, epidemic, riot, war, fire
or such other reasons of similar nature;
(b) situation whereby, without the urgent
procurement, the continued functioning of the
Government or organisation would suffer
irreparable loss, the preservation or protection of
irreplaceable public property, or the health or
safety of public will be threatened.
(3) Upon satisfying the provisions of subsection (2), the
procuring entity shall seek approval of the Government
Procurement Services Agency before proceeding on with the
procurement.
(4) For the purposes of this section, the Minister shall
make regulations providing for emergency procurement and
on how best quality and value for money would be ensured.
(5) The procuring entity shall apply the procedures
stipulated in the regulations made under this Act for any
procurement undertaken pursuant to the provisions of
subsection (1).
(6) Where the procurement meets the requirements of
subsection (1), the conditions relating to procurement limits,
methods, tender processing periods and advertisement may be
waived except that conditions relating to tender evaluation
and obtaining approval of the tender board shall not be
waived.
(7) The Authority shall, in collaboration with the
Government Assets Management Department, the department
responsible for technical audit in the Ministry responsible for
finance or where necessary, with any other competent body,
advise the Pay-Master General on the appropriate action to be
taken pursuant to subsection (7).
(8) The Pay-Master General shall seek the advice of the
Authority in respect of application for retrospective approval.

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Procurement
of railway
machinery,
aircrafts
and ships

Competitive
tendering

Invitation to
tender and
advertising

Public Procurement

2011

66.-(1) Where national interest demands that used

railway machinery, ship or aircraft be procured, the procuring
entity shall, upon satisfying the conditions stipulated in
subsection (2), proceed with normal or emergency
procurement.
(2) Where a procuring entity seeks to procure used
railway machinery, ship or aircraft pursuant to subsection (1),
it shall seek approval of the Minister.
(3) The Minister shall, for the purposes of subsection
(2), form a Special Technical Advisory Committee to be
composed of persons with various disciplines, knowledge and
experience relevant to the subject matter of the procurement.
(4) The operation of this section shall not come into
force until such time the regulations under section 105(1)(d)
have been made and come into force.
(5) Where the procurement referred to under subsection
(1) is to be done under emergency procurement, the
procedure stipulated under section 65 shall, within necessary
modifications, apply.
67.
A procuring entity wishing to commence
competitive tendering shall provide all eligible prospective
tenderers with timely and adequate notification of the
procuring entitys requirements and an equal opportunity to
tender for the required goods, works services or non
consultancy services.
68.-(1) A procuring entity wishing to commence
competitive tendering proceedings shall prepare a tender
notice inviting tenderers to submit priced offers for the supply
of goods, provision of non consultancy services or for
undertaking the works required and such tender notice shall
be submitted within reasonable time before the planned issue
of the tender to the tender board for approval.

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(2) The approved tender notice shall be advertised by the

procuring entity as set out in the Regulations made under this
Act and shall ensure widest reach of potential tenderers.
(3) Any tender notice shall be published in sufficient
time, as prescribed in the Regulations, to enable prospective
tenderers to obtain tender documents and prepare and submit
their responses before the deadline for receipt of tenders.
(4) The time specified for the opening of the tenders
submitted shall be the same as the deadline for receipt of
tenders or immediately thereafter, and be repeated, together
with the place for tender opening, in the invitation to tender.
(5) Subject to subsection (4) the procuring entity may
prior to the deadline for submission of tenders, modify the
tender documents and extend the deadline for submission of
tenders if deemed necessary.
Issue of
tender
documents

69.-(1) The procuring entity shall provide tender

documents immediately after first publication of the tender
notice to all suppliers or contractors who respond to the tender
notice and pay the requisite fee, if required, for which a
receipt shall be given.
(2) All prospective tenderers shall be provided with the
same information, and be assured of equal opportunities to
obtain additional information.
(3) Tender documents shall not include requirements
and terminologies which discriminate unfairly against
participation by tenderers.
(4) Subsection (3) may be deviated where
circumstances demand provided that, any deviation is made
on basis of provisions of the Regulations made under this Act.
(5) The scale of fees payable for tender documents
shall be as set out in the Regulations made under this Act.

Content
of tender
document

70.-(1) The procuring entity shall use the appropriate

standard model tender documents specified in the Regulations
for the procurement in question.

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(2) The tender documents shall be worded so as to

permit and encourage competition and such documents shall
set forth clearly and precisely all the information necessary
for a prospective tenderer to prepare tender for the goods,
services and works to be provided.
Validity of
tenders and
tender
security

Evaluation
criteria

Receipt of
tenders and
tender
opening

71. The procuring entity shall require tenderers to make

their tenders and tender securities including tender securing
declaration valid for periods specified in the tendering
documents, sufficient to enable the procuring entity to
complete the comparison and evaluation of the tenders and for
the appropriate tender board to review the recommendations
and approve the contract or contracts to be awarded whilst the
tenders are still valid.
72.-(1) The basis for tender evaluation and selection of
the successful tenderer shall be clearly specified in the tender
document.
(2) The tender documents shall specify factors, in
addition to price, which may be taken into account in
evaluating a tender and how such factors may be quantified or
otherwise evaluated.
(3) Notwithstanding the provisions of subsection (2),
where tenders based on alternative materials, alternative
completion schedules or alternative payment terms are
permitted, conditions for their acceptability and the method of
the evaluation shall be expressly stated in the tender
documents.
73.-(1) The Secretary of the tender board shall receive
tenders using procedures set out in the regulations made under
this Act.
(2) The secretary to the tender board shall give each
tenderer a receipt showing the time and the date that the
tenders were received, and any tender received after the
deadline shall be returned unopened to the tenderer.

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(3) All tenders submitted before the deadline time and

date for submission shall be opened in public, in the presence
of the tenderers or their representatives and other parties with
a legitimate interest in the tender proceedings and the tender
opening shall take place at, or immediately after the deadline
time and date given in the tender documents for the receipt of
the tenders and the names of all those present at the tender
opening and the organisations they represent shall be recorded
by the Secretary of the respective tender board.
(4) The names and addresses of each tender the total
amount of each tender or and of any alternative tenders, if
they have been requested or permitted, shall be read and
recorded during the tender opening.
(5) Subject to the provisions of section 60(3), after the
public opening of tenders, information relating to
e-examination, clarification and evaluation of tenders and the
recommendations concerning awards shall not be disclosed to
tenderers or other persons not officially concerned with the
process until the notice of intention to award a contract is
notified to the tenderer who participated in the tender process.
(6) Information referred to in subsection (5) shall be
made available to the Authority, the Appeals Authority,
accounting officer and to the Minister when that information
is so required.
Evaluation
and
comparison
of tenders

74.-(1) The evaluation committee shall evaluate on a

common basis tenders that have not been rejected in order to
determine the cost to the procuring entity of each tender in a
manner that permits a comparison to be made between the
tenders on the basis of the evaluated costs, but the lowest
submitted price, may not necessarily be the basis for selection
for award of a contract.

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(2) Any relevant factor or factors in addition to price to

be considered in tender evaluation and the manner in which
they will be applied for the purpose of determining the lowest
evaluated tender shall be specified in the tender documents.
(3) Any procedure under which tenders above or below a
predetermined assessment of tender value are automatically
disqualified may not be accepted.
(4)
The evaluation committee shall prepare for
submission to the Procurement Management Unit a detailed
report on the evaluation and comparison of tenders, setting out
the specific reasons on which its recommendations for the
award of each contract are based.
(5) The Procurement Management Unit shall review the
evaluation report submitted pursuant to subsection (4) and
submit the report and their recommendations to the tender
board.
Approval of
award of
contract

75. The tender board shall review the evaluation and

recommendation made by the procurement management unit
and may either (a)
approve the recommendation and authorize
acceptance of the tender and award a contract in
the form specified in the tender documents; or
(b)
refuse to authorize recommendation for award of
the tenders and refer the evaluation to the
Procurement Management Unit with an
instruction to re-evaluate the tenders or retendering or other action.

Negotiation
and award of
contracts

76.-(1)
Subject to the conditions stipulated in the
regulations, a tenderer evaluated to have the capacity and
capability to supply the goods, undertake the works, provide
the services or purchase the assets shall be invited for
negotiations by the procuring entity.
(2) Negotiations shall not be conducted:

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(a)

to change the specifications or details of the

requirement.
(b) to materially alter the terms and conditions of
contract stated in the tender document;
(c) primarily for the purpose of reducing prices in
case of procurement of goods, works or services;
(d) purely for the purpose of increasing prices in
case of disposal of assets; or
(e) to substantially alter anything which formed a
crucial or deciding factor in the evaluation of
tender.
(3) Where single source method was used or a
competitive procurement method was used but only a single
tender was received, negotiations may relate to other areas of
the tender including the price tendered provided that the
negotiation shall not increase price or affect the quality of the
goods, works or services.
(4) Where the negotiation under subsection (2) fail to
result in an acceptable contract, the procuring entity shall
terminate the negotiations and after consultation with the
appropriate tender board, invite the next ranked firm for
negotiations.
Alteration
and amendments

77.-(1) A procurement contract shall not be altered or

amended in any way after it has been signed by both parties
unless such alteration or amendments is(a) to the benefit of the Government or is not
disadvantageous to the Government; and
(b) is approved by the accounting officer.
(2) The total price of the amended contract shall be
within percentage of the total price of the original contract as
prescribed in the regulations.

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(3) Time extension order shall be issued only by the

accounting officer in accordance with the procedures
stipulated in the regulations.
(4) Liquidated damages shall be charged on the
contractor, supplier or service provider for undelivered goods
or delayed services or work in accordance with the
procedures stipulated in the regulations.
Selection
of
consultants

78.-(1) A procuring entity commencing selection

proceedings for consultancy services shall apply the procedures
and the selection methods prescribed in the Regulations made
under this Act.
(2) Circumstances to justify the Procuring Entity to
depart from the use of selection methods shall be set out in the
Regulations and the alternative approaches to be used instead.
(3) The procuring entities shall use the appropriate
Standard Request for Proposals and Standard Forms of
Contract issued by the Authority with minimum changes as
approved by the tender board, as necessary to address specific
project issues, and any such changes shall be introduced only
through contract data sheets, or through special conditions of
contract and not by introducing changes in the wording of the
general conditions of contract included in the standard form.
(4) Notwithstanding the provisions of subsection (3)
where the Standard Request for Proposal and Standard Form of
Contract are not appropriate, procuring entities shall use other
contract forms acceptable to the Authority.

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PART VII
PROCUREMENT UNDER PUBLIC PRIVATE PARTNERSHIP
Scope,
applicability and
approval

Cap.103

79.-(1)
The provisions under this Part shall apply in
respect of procurement and disposal by tender activities under
the solicited and unsolicited partnership arrangements between
the public sector and private as provided for under the Public
Private Partnership Act, 2010.
(2)
The procuring entity shall not proceed with the
procurement phase of solicited or unsolicited public private
partnership prior to obtaining approval of the project concept
by the relevant authorities under the Public Private Partnership
Act.
(3) Where this Part does not specifically provide for a
process, commission, omission, offence or penalty in relation
to procurement or disposal by tender process under the Public
Private Partnership, the provisions of this Act shall apply.

Unsolicited
public
private
partnership
proposal

80.-(1) A proposal of the party, submitting unsolicited

private partnership proposal shall be subjected to a formal
competitive process set out in the regulations made under this
Act.
(2) The procuring entity may, upon consultation with
competent authority, acknowledge intellectual rights over the
project idea of the original proponent and recognize it in the
tendering process.

Selection of
Transaction
Advisor or
Manager

81. Where a transaction advisor or manager is to be

appointed for the purposes of ensuring a public private
partnership implementation process runs smoothly, the
selection of such advisor or manager shall be in accordance
with the procedures stipulated in the regulations.

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Selection of
a private
party and
choice of
procurement
method

Public Procurement

2011

82.
A procuring entity undertaking public private
partnership project shall select a private party by using
procedures stipulated in the regulations made under this Act.

PART VIII
PROHIBITIONS
Fraud and
corruption

83.-(1) The procuring entities and tenderers under public

financed contracts shall proceed in a transparent and
accountable manner during the procurement and execution of
such contracts.
(2) Where a procuring entity is satisfied, after appropriate
investigation, that any person or firm to which it is proposed
that a tender be awarded, has engaged in corrupt fraudulent,
collusive, coercive or obstructive practices in competing for the
contract in question, it may (a)
reject a proposal for award of such contract;
(b)
declare any person or tenderer including its
directors ineligible for a period of not less than
ten years to be awarded a public financed
contract.
(3) After determination by a court of law or following a
special audit by the Controller and Auditor-General, that
corrupt, fraudulent, collusive, coercive or obstructive practices
were engaged in by any person or tenderer during the
procurement, award of contract or the execution of that
contract, the procuring entity may (a) require such person or tenderer to re-imburse the
portion of disbursed funds or cancel the portion of
undisbursed funds to a contract for goods, works
or services; and

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(b)

declare any tenderer, including its directors

ineligible for a period of not less than ten years to
be awarded a public financed contract.
(4) The procuring entity shall, within a period of fourteen
days after declaring a tenderer, including its directors ineligible
to be awarded a public financed contract in accordance with the
provisions of this section, submit to the Authority the name of
such tenderer, including its directors and such information shall
be published and maintained in the Authoritys register.
(5) Any member of the procuring entity who engages in
corrupt or fraudulent practices during the procurement
proceedings or the execution of the public financed contract
shall be dealt with in accordance with the provisions of this
Act.
(6) The procuring entity shall, in any tender forms for
public contracts, include an undertaking of the tenderer to
observe the countrys laws against fraud and corruption in
competing for and executing a contract.
Conducts
influencing
public
officers

84.-(1) No person shall, with intent to gaining an

advantage or concession for himself or any other person (a)

(b)

offer any member or an associate of a member

of a tender board or its committee or any
employee or an associate of an employee of a
tender board or its committee or any consultant
or an associate of any consultant or a person or
an associate of any person providing services, a
gift of money or other valuable thing; or
approach any member or any associate of a
member of a tender board or its committee or
any of its officer or an associate of such officer
with respect to any matter that is before that
tender board or committee or that is expected to
come before a tender board or a committee.

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(2) No procuring entity, any public officer or other

Government authority shall accept a gratuity in any form, any
offer of employment, service, any other thing of value, as an
inducement with respect to an act or decision of or procedure
followed by the procuring entity in connection with any
procurement proceedings or tender and a procuring entity shall
promptly reject a tender of any tenderer who gives, agrees to
give or offers, directly or indirectly, any such inducement.
(3) A procuring entity shall not procure from a member
of its staff or a person who has direct influence on the decision
of a procuring entity acting in a private capacity, either alone or
as a partner in a partnership or as an officer of a company.
(4) A procuring entity shall not include in a tender
document any condition or specification which is likely to
favour a tenderer.
(5) A member of staff of a procuring entity or a person
with direct influence on the decisions of a procuring entity
shall declare an interest that he may have in any tenderer and
the tenderer against whom the interest has been declared shall
be barred from participating in such procurement.
(6) Any tender proved to have been awarded on the basis
of inducement as provided in the preceding subsections shall be
revoked forthwith and the same be reported to the Prevention
and Combating of Corruption Bureau for appropriate action
and to the relevant professional body for ethical proceedings.
(7) A tenderer whose tender or proposal has been rejected
or revoked on the ground of inducement corrupt, fraudulent,
collusive, coercive or obstructive shall not be able to qualify or
pre-qualify in any procurement proceedings during the ten
years following the date of the notice of such rejection or
revocation.

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(8) Any rejection or revocation on the grounds of

inducement, corrupt, fraudulent, collusive, coercive or
obstructive practices shall be notified to the Chief Executive
Officer of the Authority who shall in turn review the grounds
for rejection or revocation and notify all procuring entities and
approving authorities on the purposes of effecting the
provisions of subsection (7).
Disclosure
of payment
made by
way of
commission, etc.
Caps. 399
and 329

85.-(1) A tenderer in relation to the public contract shall,

within thirty days after the execution of the contract, furnish a
statement in writing to the Prevention and Combating of
Corruption Bureau and the Tanzania Revenue Authority.
(a) stating particulars of any consideration given or
to be given to any person or organization for the
purpose of or as a commission for obtaining the
contract; and
(b)

giving the names of the persons to whom and

the organization to which any such
consideration was or is to be given.
(2) Where there is no consideration to be given to any
person or organization, a statement furnished pursuant to
subsection (1) shall so state;
(3)
Where in relation to a public contract, a body
corporate is a contractor, then (a)
if the consideration for the contract exceeds in
value or total, two percent of the contract
value, the statement furnished pursuant to
subsection (1) (i)
shall be signed by the Chief Executive
of the body corporate; and
(ii)
if the contractor is a subsidiary of
another body corporate, shall be signed
by the Chief Executive of the other
body corporate; and

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(b)

Cap.212

Conduct
of directors,
servants or
agents

in any case other than that which is referred to

in paragraph (a), the statement so furnished
shall be signed by an officer of the body
corporate deputed by the body corporate to do
so.
(4) The provisions of the Companies Act in relation to
the determination of whether a body corporate is the
subsidiary of any other body corporate shall apply.
(5) Where there is a consideration given or offered to
any public body, public officer or any other agent in relation
to a public contract, such consideration shall be furnished to
the Pay-Master General within thirty days from the date of
receipt of the consideration.
(6) A tenderer or a public body or public officer who
fails to comply with the provisions of this section commits an
offence.
86.-(1) Any conduct engaged in or on behalf of a body
corporate(a) by a director, servant or agent of the body
corporate within the scope of the actual or
apparent authority; or
(b) by any other person at the director or with the
consent or agreement (whether express or implied)
of a director, servant or agent of the body
corporate, whether giving of the direction, consent
or agreement is within the scope of the actual or
apparent authority of the director, servant or agent,
shall be deemed, for the purposes of this Act, to have been
engaged in by the body corporate.
(2) Any conduct engaged in or on behalf of a person
other than a body corporate -

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(a)

2011

by a servant or agent of the person within the

scope of actual or apparent authority of the
servant or agent; or

(b)

by any other person at the direction or with the

consent or agreement (whether express or
implied) of a servant or agent of the first
mentioned person, when the giving of the
direction, consent or agreement is within the
scope of the actual or apparent authority of the
servant or agent,
shall be deemed, for the purposes of this Act, to have been
engaged in by the first-mentioned person.
Institution of
criminal
proceedings
Cap.16 and
Cap.329

87. The measures provided by this Act shall not

preclude the institution of criminal proceedings pursuant to
the provisions of Penal Code, the Prevention and Combating
of Corruption Act, or any other written law against any person
discharging functions or exercising powers under this Act or
regulations made under this Act.
PART IX
DISPUTES SETTLEMENT

Establishment
of the Appeals
Authority

88.-(1) There is established an independent procurement

appeals authority to be known as the Public Procurement
Appeals Authority.
(2) The Appeals Authority shall consist of:
(a) a Chairman who shall be nominated by the
President from amongst retired Judges; and
(b) six other members to be nominated by the
Minister as follows:
(i)
a senior lawyer to be appointed by
the Attorney General; and

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(ii)

five other members, at least two of

them from the private sector with
professional
knowledge
and
experience in public procurement,
construction
industry,
business
administration, finance or law.
(c) the Executive Secretary who shall be the
Secretary of the Appeals Authority.
(3) The Third Schedule to this Act shall have effect
with regard to appointment and tenure of office of members
and of the Appeals Authority.
(4)
The Members of the Appeals Authority shall
oversee the performance of the Appeals Authority.
(5)
The Appeals Authority shall have original
jurisdiction to hear and determine complaints against
procuring entities where a procurement or disposal of
contract is already in force and appeals arising from
administrative decisions made by the accounting officer.
(6)
The Appeals Authority shall review the
Authoritys decision arising from blacklisting of tenderers.
(7) In resolving disputes or complaints, the Appeals
Authority shall conduct proceedings in accordance with
rules made under this Act.
Appointment
of Executive
Secretary

89.-(1) There shall be an Executive Secretary of the

Appeals Authority who shall be appointed by the President
on such terms and conditions as the President may
determine.
(2) The Executive Secretary shall be appointed from
amongst the registered professionals save for lawyers and
business administrators who has at least ten years of
experience in either business, finance, law or other relevant
discipline and experience in procurement.
(3) Subject to the general supervision and direction of
the Appeals Authority, the Executive Secretary shall be
responsible for:

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(a)

Management of the operation of the Appeals

Authority;
(b) Management of funds, property and business
of the Appeals Authority;
(c) Administration, organization and control of
officers and staff of the Appeals Authority.
(4)
The Executive Secretary shall be the Chief
Executive and the Accounting Officer of the Appeals
Authority.
(5) The Executive Secretary shall hold office for a
period of four years and may, subject to his satisfactory
performance, be eligible for reappointment for one more
term of four years.
Employees of
the Appeals
Authority

Funds of the
Appeals
Authority

90. The Appeals Authority shall employ such number

and categories of staff as it deemed necessary for the
effective functioning of the Appeals Authority.
91.-(1) The funds of Appeals Authority shall consist
of(a)
(b)
(c)
(d)

monies appropriated by Parliament;

loans and grants;
revenues collected from services rendered; and
any other monies received or made available to
it for purposes of its functions
(2) There shall be paid from the funds of the Appeals
Authority(a) the salaries and allowances of its staff,
(b) such other allowances necessary to pay its
members and staff or other persons engaged in
business of the Appeals Authority as the
Minister may determine; and
(c) any other expenses incurred by it in the
performance of its functions.

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(3) There shall be opened and maintained bank

accounts of the Appeals Authority in Banks approved by
members of the Appeals Authority.
Audit of
accounts

Cap. 348

Annual
Management
plan and
budget

92.-(1) The Appeals Authority shall maintain proper

books of accounts and other records relating to its financial
transactions and prepare annual statement of accounts
including income and expenditure account, and balance
sheet in accordance with Public Finance Act.
(2) The books of accounts and other records shall be
open for inspection by the Minister or any other person duly
authorized by him.
(3) The accounts of the Appeals Authority shall be
audited by the Controller and AuditorGeneral.
93.-(1) The Executive Secretary shall, not later than
three months before the end of each financial year, prepare
and submit to the Members of the Appeals Board an annual
management plan which include a budget for its approval
for the next financial year.
(2) The Executive Secretary may, at any time before
the end of a financial year, prepare and submit to the
Members of the Appeals Authority for approval any
estimates supplementary to the budget of the current
financial year.
(3) No expenditure shall be made out of the funds of
the Appeals Authority unless it is part of the expenditure
approved by the Members of the Appeals Authority under
the estimates for the fiscal year in which the expenditure
shall be incurred, or in the supplementary budget for that
year.

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Annual
statement
and report

Public Procurement

2011

94.-(1) The Appeals Authority shall, within six months

after the end of each financial year, cause to be prepared
and submitted to the Minister a report on its activities and
operations, and all complaints and appeals handled during
that year.
(2) A copy of the report prepared under subsection (1)
shall, when submitted to the Minister, be accompanied by (a) a copy of the audited accounts of the Appeals
Authority;
(b) a copy of the auditors report on the accounts;
and
(c) any other information as the Minister may
direct.
(3) The Minister shall lay before the National
Assembly the reports mentioned under subsection (2)
within three months from the date of receiving the report or
at the next sitting of Parliament.

Right to review

95.-(1) Any tenderer who claims to have suffered or

that may suffer any loss or injury as a result of a breach of a
duty imposed on a procuring entity by this Act may seek a
review in accordance with sections 96 and 97.
(2) The review referred to in subsection (1) shall not
apply to(a) the selection of a method of procurement or in
the case of services the choice of a selecting
procedure;
(b) the limitation of procurement proceedings on the
basis of nationality in accordance with section
53 of this Act or in accordance with the
prescribed Regulations;

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(c) in the case of services, a refusal by the procuring

entity to respond to an expression of interest in
participating in request for proposals
proceedings.
(3) Any tenderer who is aggrieved by the decision of
the accounting officer under subsection (2) shall have the
right to lodge a complaint to the Authority.
Settlement of
complaints or
disputes by
accounting
officer

96-(1) Any complaints or dispute between procuring

entities and tenderers which arise in respect of procurement
proceedings, disposal of public assets by tender and awards
of contracts shall be reviewed and decided upon a written
decision of the accounting officer of a procuring entity and
give reasons for his decision.
(2) On receiving a complaint under this section the
accounting officer may, depending on the nature of the
complaint, constitute an independent review panel from
within or outside his organization which shall review the
complaint and advise him on the appropriate actions to be
taken.
(3) Where after proper investigation, it is established
that, the Chairman of the tender board, any member of the
tender board, the secretary of the tender board or any other
public officer of the procuring entity has violated this Act
and the regulations made under it, the accounting officer
shall take appropriate actions against him.
(4) The accounting officer shall not entertain a
complaint or dispute unless it is submitted within twenty
eighty days from the date the tenderer submitting it became
aware of the circumstances giving rise to the complaint or
dispute or when that tenderer should have become aware of
those circumstances, whichever is earlier.
(5) The accounting officer shall not entertain a
complaint or dispute or continue to entertain a complaint or
dispute after the procurement contract has entered into force.

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(6) The accounting officer shall, within fourteen days

after the submission of the complaint or dispute deliver a
written decision which shall:(a) state the reasons for the decision; and
(b) if the complaint or dispute is upheld in whole
or in part indicate the corrective measures to be
taken.
(7) Where the accounting officer does not issue a
decision within the time specified in subsection (6), the
tenderer submitting the complaint or dispute to the procuring
entity shall be entitled immediately thereafter to institute
proceedings under section 97 and upon institution of such
proceedings, the competence of the accounting officer to
entertain the complaint or dispute shall cease.
(8) The decision of the accounting officer shall be final
unless the tenderer applies for administrative review to the
Appeals Authority.
Review by the
Appeals
Authority

97.-(1) A tenderer who is aggrieved by the decision of

the accounting officer may refer the matter to the Appeals
Authority for review and administrative decision.
(2) Where(a) the accounting officer does not make a decision
within the period specified under this Act; or
(b) the tenderer is not satisfied with the decision of
the accounting officer,
the tenderer may make a complaint to the Appeals Authority
within fourteen working days from the date of
communication of the decision by the accounting officer.
(3)
A tenderer may submit a complaint or dispute
directly to the Appeals Authority if the complaint or dispute
cannot be entertained under section 96 because of entry into
force of the procurement or disposal contract, and provided
that the complaint or dispute is submitted within fourteen

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days from the date when the tenderer submitting it became

aware of the circumstances giving rise to the complaint or
dispute or the time when that tenderer should have become
aware of those circumstances.
(4) The Appeals Authority shall, upon receipt of a
complaint or dispute, give notice of the complaint or dispute
to the procuring entity in which case the procuring entity
shall be required to submit all the relevant documentations
and information pertaining to the particular tender.
(5) The Appeals Authority may, unless it dismisses the
complaint or dispute, issue one or more of the following
remedies(a) declare the legal rules or principles that govern
the subject matter;
(b) prohibit the procuring entity from acting or
deciding unlawfully or from following an
unlawful procedure;
(c) require the procuring entity that has acted or
proceeded in an unlawful manner, or reached
an unlawful decision, to act or to proceed in a
lawful manner or to reach a lawful decision;
(d) annul in whole or in part an unlawful act or
decision of the procuring entity;
(e) revise an unlawful decision by the procuring
entity or substitute its own decision for such a
decision; or
(f) require
the
payment
of
reasonable
compensation to the tenderer submitting the
complaint or dispute as a result of an unlawful
act, decision or procedure followed by the
procuring entity.

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(6) The Appeals Authority shall, within forty five days,

issue a written decision concerning the complaint or dispute
stating the reasons for the decision and the remedies granted,
if any.
(7) The decision of the Appeals Authority shall be final
unless is subject for judicial review under section 95 of this
Act.
(8) The decision of the Appeals Authority shall be
binding to the parties on the complaint or appeal and such
decision may be enforced in any court of competent
jurisdiction as if it were a decree of the court.
Extension of
time for
submission of
complaints or
appeals

98. The Appeals Authority may extend the time limit

set under subsections (2) and (3) of section 97 where it is
satisfied that failure by a party to lodge an appeal or
complaint was occasioned by being absent from the United
Republic, sickness or other reasonable cause, subject to such
terms and conditions as may be prescribed in the rules.

Certain rules
applicable to
review
proceedings

99.-(1) After the submission of a complaint or dispute

under sections 96 and 97, the Accounting officer, or the
Appeals Authority, as the case may be, shall notify all
tenderers participating in the procurement or disposal
proceedings to which the complaint or dispute relates, of the
submission of the complaint or dispute and of its substance.
(2) Any tenderer or any public body whose interest is or
may be affected by the review proceedings, shall have a right
to participate in the review proceedings and a tenderer who
fails to participate in the review proceedings shall be barred
from subsequently making the same claim.

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(3) The decision of the accounting officer, the Authority

or the Appeals Authority shall be furnished within seven days
after the delivery of the decision to the tenderer who
submitted the complaint or dispute to the procuring entity and
to any other tenderer or Government authority who
participated in the review proceedings and after the decision
has been delivered, shall be made available for inspection by
the general public, provided no information shall be disclosed
if its disclosure
(a)
(b)
(c)
(d)
(e)

is contrary to law;
impedes law enforcement;
is not in the public interest;
prejudices legitimate commercial interest of
parties; or
inhibits fair competition.

(4) The Authority may, upon receipt of reports of

findings from the accounting officer or decision of the
Appeals Authority, recommend to the competent authority
to take disciplinary measures against the concerned person
or body implicated in the report or decision, as the case may
be, in accordance with the provisions of this Act.
Suspension of
procurement
proceedings

100.-(1) Upon receipt of a complaint or dispute, the

accounting officer shall subject to subsection (2), suspend the
procurement process pending determination of a complaint or
an appeal.
(2) The suspension referred to in subsection (1) shall
not apply where the procuring entity certifies to the Authority
that urgent public interest considerations require the
procurement to proceed and the certification shall state the
grounds for the findings which shall be conclusive with
respect to all levels of review other than judicial review.

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(3) Any decision by the accounting officer under this

section and the grounds and circumstances for it shall be
made part of the record of the procurement proceedings.
(4) Upon receipt of a complaint or an appeal, the
Appeals Authority may suspend the procurement process or
where necessary, the performance of the concerned
procurement contract pending determination of the complaint
or an appeal.
Judicial
Review

101.-(1) A tenderer or procuring entity aggrieved by the

decision of the Appeals Authority may, within fourteen days
of the date of delivery of such decision, apply to the High
Court for judicial review.
(2) Where the application is before the High Court for
juridical review:
(a) in case of an application by a tenderer challenging the
decision of the Appeals Authority, the Appeals
Authority shall be represented in the High Court by
the Attorney General; and
(b) in case of an application by a procuring entity
challenging the decision of the Appeals Authority, the
procuring entity and the Appeals Authority shall state
their positions to the Attorney General.
(3) Where the procuring entity and the Appeals
Authority have submitted their positions to the Attorney
General in terms of paragraph (b) of subsection (2), the
Attorney General shall state case containing positions of
both parties and file a case marked Case Stated in the
High Court for its opinion in accordance with Order XXXIV
of the Civil Procedure Code.
(4) The judgement of the High Court issued in terms of
subsection (3) shall be communicated to the parties by the
Attorney General and shall be binding on both parties.

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PART X
GENERAL PROVISIONS
Codes of
Conduct

102.-(1) Public officers and experts engaged to deliver

specific services under this Act shall subscribe to the Code of
Ethical Conduct.
(2) All tenderers shall be required to sign a declaration of
compliance with those Codes of Ethical Conduct determined
by the Authority from time to time.

Protection
from
personal
liability

103. No act or thing done by any member or by any

employee of the Authority or Appeals Authority shall, if done
or omitted bona fide in the execution or purported execution of
his duties as a member or as an employee of the Authority or
Appeals Authority, subject him to any action, liability or
demand of any kind.

Offences

104.-(1) A person who(a) knowingly gives false or misleading information

or evidence in purported compliance with a
summons issued under this Act;
(b) contrary to this Act, interferes with or exerts
undue influence on any officer or employee of
the Authority, Appeals Authority or procuring
entity or member of tender board in the
performance of his functions or in the exercise of
his her power under this Act;
(c) open any sealed tender, including such tenders as
may be submitted through electronic system and
any document required to be sealed, or divulge
their contents prior to the appointed time for the
public opening of the tender documents;
(d) connives or colludes to commit a fraudulent,
corrupt, collusive, coercive or obstructive act as
defined in section 3;
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(e)

2011

causes loss of public properties or funds as a

result of negligence in the implementation of this
Act,
commits an offence and on conviction shall be liable to a fine
of not less than ten million shillings or to imprisonment for a
term of not less than seven years or to both, and in addition to
the penalty imposed in this section, the court shall order that
the amount of loss incurred by the complainant be
compensated, failure of which, the court shall issue an order of
confiscation of personal property of the person convicted in
order to recover the loss.
(2) A person who (a) without reasonable excuse fails or refuses to give
information, produce any document, records or
reports required under section 18 or under the
notice issued in accordance with subsection (3) of
section 92;
(b) without reasonable excuse, fails or refuses to give
information, produce any document, records or
reports required under subsection (2) of section
18 or under the notice issued in accordance with
subsection (4) of section 97;
(c) delay without justifiable cause, the opening or
evaluation of or the awarding of contract beyond
the prescribed period; or
(d) contravenes or fails to comply with provisions of
this Act, or regulations made under this Act,
commits an offence and on conviction is liable to a fine not
exceeding ten million shillings or to imprisonment for a term
not exceeding three years or to both.
(3) Where a procuring entity consistently contravenes this
Act, it shall, on the direction of the Authority, have its
procurement function transferred to the Agency until the
Authority is satisfied that the causes of the contravention have
been rectified.

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Regulations

2011

105.-(1) The Minister may make regulations and rules for

the better carrying out of the provisions of this Act.
(2) Without prejudice to the generality of subsection (1),
the Minister may make regulations prescribing (a) procedures and processes for procurement of
common use items under framework agreements;
(b) procedure for procurement of goods and services
by public bodies through third party or Agency;
(c) terms and conditions for delegation of
procurement functions of a procuring entity;
(d) procurement procedures for used railway
machinery, ships and aircrafts;
(e) procedures for tender submission, opening and
evaluation awarding of tender and cancellation of
procurement process;
(f) procedures for investigation under this Act;
(g) procedure for lodging procurement complaints
and appeals;
(h) various methods of procurement and procurement
of commodities of seasonal nature;
(i) qualification of tenderers circumstances and
procedures for prequalification process;
(j) fees for various services rendered by the
Authority or Appeals Authority or the Agency;
and
(k)

procurement procedures of the Authority or the

Agency and of the Appeals Authority;
(l) procedures for handling disagreements between
procuring institutional bodies for procurement
functions;
(m) threshold for ratification by the Attorney General
or a person authorized by him;

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(n)

(o)
(p)
(q)
(r)
(s)
(t)
(u)
(v)
(w)
(x)
Guidelines

Repeal and
savings
Cap.410

2011

procedures for consideration of national

preference in tendering and thresholds for
exclusive preference;
the manner and duration for keeping procurement
records by procuring entity;
procedure and period of debarment of a tenderer
by the Authority or procuring entity;
procedures for procurement under the public
private partnerships agreements;
procedures for advertisement and publication of
tender notices by procuring entities;
standards tender documents for application under
this Act;
percentages
for
contract
variation
or
amendments;
procedures for negotiation and award of contract;
procedures for retrospective approval;
anything or matter which requires to be
prescribed under this Act; and
procedures for conducting e-procurement.

106. The Authority shall issue guidelines from time to

time for the better carrying out of the objectives or any
functions under this Act.
107.-(1) The Public Procurement Act, 2004 is hereby
repealed.
(2)
Notwithstanding subsection (1), every order,
direction or appointment which was issued, given, or made
pursuant to the provisions of the Public Procurement Act and
every office created in pursuance thereof shall remain valid
until otherwise cancelled, revoked, varied or abolished under
the provisions of this Act.

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Transitional
provisions

2011

(3) Upon the coming into operation of this Act, save

for section 31(3), all laws, regulations or rules relating to
public procurement and disposal of public assets by tender
shall cease to have any effect, power, function, authority or
duty in relation to any matter connected with procurement of
goods, service, works or disposal of public assets by tender.
108.-(1) All properties, except that property as the Minister
may determine, which immediately before the commencement
of this Act was vested in the Government for the use of the
Authority or the Appeals Authority on the date of
commencement of this Act shall immediately vest in the
Authority or the Appeals Authority subject to all interests,
liabilities, charges and trusts affecting that property.
(2) All legal obligations, proceedings and claims pending
in respect of the Authority or the Appeals Authority shall be
continued or enforced by or against the Authority or the
Appeals Authority in the same manner as they would have
been continued or enforced if this Act had been in force at the
time when the cause of action arose.
______
FIRST SCHEDULE
_______
(Under section 21)
______

COMPOSITION, APPOINTMENT AND PROCEDURES OF THE AUTHORITY

Interpretation

1. In this Schedule Appointing Authority" means:

(a)
in the case of the Chairman of the Authority, the President of
the United Republic of Tanzania; and
(b)
in the case of Members of the Authority, the Minister for the
time being responsible for finance;

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Composition
and
appointment of
the Authority

2.-(1) The Board of Directors shall consist of the following members (a)
a non-executive Chairman who shall be appointed by the
President; and
(b)
six members at least three of whom are experts or specialists
in procurement, law, management, engineering, commerce, or
in any other relevant field , who shall be appointed by the
Minister,
(2) The Chief Executive Officer who shall be appointed by the President shall
be the Secretary to the Board.

Tenure
of
office

3.-(1) The Chairman and members of the Board shall be appointed for a period
of three years and shall be eligible for re-appointment for a further period of three
years.
(2) Under exceptional circumstances, the Appointing Authority may extend
the tenure of the Board member or members for a period not exceeding six months
from the date of expiry of the initial period of appointment.
(3) The Appointing Authority may determine the appointment of the
Chairman, members and Chief executive of the Board at any time for.
(a)
abuse of office;
(b)
corruption;
(c)
incompetence;
(d)
any physical or mental incapacity that renders a person
incapable of performing the duties of that office;
(e)
failure to attend three consecutive meetings of the Board
meetings without reasonable grounds;
(f)
conviction of an offence involving moral turpitude; and
(g)
being adjudged bankrupt by a court of law.
(4) Any member of the Board may resign upon giving one month's notice in
writing to the Appointing Authority.
(5) If any member is absent from three consecutive meetings of the Board
without providing reasonable excuse, the Board shall advise the appointing
authority to terminate the appointment of that member and appoint another
member in his place.

Attendance by
non-members

4. The Board may invite public officers of procuring entities whose

procurement is under consideration or any other person with a legitimate interest
in the procurement being reviewed to attend its meetings for the purpose of
assisting the Board, but such persons shall have no vote.

Meetings

5.-(1) An ordinary meeting of the Board shall be convened by the Chairman,

or in his absence or inability to act, the Chief Executive Officer, by a notice
specifying the date, time and place of such meeting which shall be sent to each
member at his usual place of business or residence not less than two full working
days before the date of such meeting and the Board shall meet at such times and
such places being not less than once in a month as the Chairman may determine.

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Quorum

Public Procurement

2011

(2) The Chairman, or in his absence or inability to act, the Chief Executive
Officer, shall convene a special meeting of the Board upon receipt of a request in
writing signed by not less than three members of the Board, save that such
requests shall not be made without justifiable cause.
6.-(1) Half of the members of the Board shall form a quorum for a meeting
of the Board.
(2) In the absence of the Chairman, the members present at a meeting of the
Board shall elect one of the members to act as Chairman for that meeting and the
member who is so elected shall be responsible for reporting the findings of such
meeting to the Chairman.
(3) At any meeting of the Board, a decision of the majority of the members
present shall be recorded as a decision of the Board, save that a member who
dissents from that decision shall be entitled to have his dissenting decision and the
reasons for it recorded in the minutes of that meeting.
(4) The validity of any act or decision of the Board shall not be affected by
any vacancy among its members or by any defect in the appointment of any of
them.

Minutes

7. Minutes of each meeting of the Board shall be recorded by the Secretary

in a proper form and shall be confirmed by the Board and signed by the Chairman
and the Secretary at the next following ordinary meeting of the Board and filed at
the offices of the Authority.

Notification of
decisions

8. Notification of decisions of the Board and all other communications

made on its behalf shall be signed by the chief executive officer, or by an officer of
the Secretariat of the Board who has been authorized in writing by the chief
executive officer to act on that behalf.

Regulation of
proceedings
Subcommittees

Fees and
allowances

9. The Board shall have power to regulate its own proceedings.

10. The Board may establish subcommittees and appoint as members, of
such subcommittees, persons who are or are not, members of the Board for the
purposes of advising the Board on any specific matter.
11. The Minister may prescribe fees and allowances which may be payable
to the Chairman and members of the Authority.

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_______
SECOND SCHEDULE
______
(Under section 31(2))
______
COMPOSITION, APPOINTMENT AND PROCEDURES OF TENDER BOARDS
Interpretation

1.-(1) In this Schedule, "the board" means the Tender Board for the Ministry,
Independent Department of Government, Region, Agency and Parastatal
Organisation.

Composition
and
appointment

2.-(1) The Board shall consist of

(a) a Chairman, who shall be one of the heads of department or a
person of similar standing and who shall be appointed by the
accounting officer;.
(b) six members who are heads of department or persons of
similar standing within the same procuring entity and who
shall be appointed by the accounting officer.
(2) The Secretary of the Tender Board, shall be the head of the procurement
management unit.

Tenure of
Appointment

3.-(1) The Chairman and members of the Board shall be appointed for a
period of three years and shall be eligible for re-appointment for a further period of
three years.
(2) Under exceptional circumstances, the accounting officer may extend the
tenure of the Board member or members for a period not exceeding three years from
the date of expiry of the initial period of appointment.
(3) The accounting officer may terminate the appointment of the Chairman and
members of the Board at any time for:
(a)
abuse of office;
(b)
corruption;
(c)
incompetence;
(d)
any physical or mental incapacity that renders a person incapable of
performing the duties of that office;
(e)
failure to attend three consecutive meetings of the Board meetings
without reasonable grounds;
(f)
conviction of an offence involving moral turpitude; and
(g)
being adjudged bankrupt by a court of law.
(4) Any member of the Board may resign upon giving one month's notice in
writing to the accounting officer as the case may be.
(5) If any member is absent from three consecutive meetings of the Board
without providing reasonable excuse, the Board shall advise the accounting officer to
terminate the appointment of that member and appoint another member in his place.

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Attendance
by non
members

4. The Board may invite public officers from within the procuring authority
or other public authority to attend its meetings for the purpose of assisting the board,
but such person shall have no vote.

Meetings

5. Meetings of the board shall be convened by the Chairman, or in his

absence or inability to act, the Secretary, by a notice specifying the date, time and
place of such meeting which shall be sent to each member at his usual place of
business or residence not less than two full working days before the date of such
meeting and the board shall meet at such times and places, being not less than once
in a month, as the Chairman may determine.

Quorum

6.-(1) Half of the members of the board shall form a quorum for a meeting of
the board.
(2) In the absence of the Chairman, the members present at a meeting of the
board shall elect one of the members to act as Chairman for that meeting and the
member who is so elected shall be responsible for reporting the findings of such
meeting to the Chairman.
(3) At any meeting of the board, a decision of the majority of the members
present and voting shall be recorded as a decision of the board, save that a member
who dissents from that decision shall be entitled to have his dissenting decision and
the reasons for it to be recorded in the minutes of that meeting.

Minutes

7. Minutes of each meeting of the board shall be recorded by the Secretary in

a proper form and shall be confirmed by the board and signed by the Chairman and
the Secretary at the next following meeting of the board.

Notification
of decisions

8. Notification of decisions made by the board and all other communications

sent on its behalf shall be signed by the Secretary or by the Permanent Secretary or
Chief Executive as the case may be.

Regulation
of
proceedings

9. A tender board shall conduct its proceedings in accordance with the

prescribed Regulations.

Subcommittees

10. The tender board may establish sub-committees and appoint as members,
of such sub-committees, persons who are, or are not, members of the tender board
for the purposes of advising the board on any specific matter.

Fees and
allowances

11. The Minister may prescribe fees and allowances which may be payable to
the Chairman and members of the board.

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______
THIRD SCHEDULE
________
(Under section 88)
______
COMPOSITION AND PROCEDURES OF THE APPEALS AUTHORITY
Interpretation

Tenure of
office

1. In this Schedule:
"Appointing Authority" means
(i)
in the case of Chairman, and Executive Secretary of the Public
Procurement Appeals Authority, the President of the United
Republic of Tanzania; and
(ii) in the case of Members of the Appeals Authority, the Minister for the
time being responsible for finance.
2.-(1) The Chairman and members of the Appeals Authority shall be appointed
for a period of three years and shall be eligible for re-appointment for a further period
of three years.
(2) Under exceptional circumstances, the Appointing Authority may extend the
tenure of a member for a period not exceeding six months from the date of expiry of
the initial period of appointment.
(3) The appointing authority may terminate the appointment of the Chairman,
members and Executive Secretary at any time for (a) abuse of office;
(b) corruption;
(c) incompetence;
(d) any physical or mental incapacity that renders a person incapable of
performing the duties of that office;
(e) failure to attend three consecutive meetings of the Appeals Authority
meetings without reasonable grounds;
(f) conviction of an offence involving moral turpitude; and
(g) being adjudged bankrupt by a court of law.
(4) Any member of the Appeals Authority may resign upon giving one month's
notice in writing to the Appointing Authority.
(5) Where a member is absent from three consecutive meetings, the
Appeals Authority shall advise the Appointing Authority to terminate the
appointment of that member and appoint another member in his place.

Committees
of the Board

3.
The Appeals Authority may establish not more than three
subcommittees whose membership shall consist of not more than three persons for
purpose of advising the Appeals Authority on any specific matter.

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Notice of
hearing

4.-(1) The hearing of the Appeals Authority shall be convened by the

Chairman or in his absence or inability to act the Executive Secretary, by a notice
specifying the date, time and place of such hearing which shall be sent to each
member at his usual place of business or residence not less than two full working
days before the date of such hearing.
(2) The Chairman or in his absence or inability to act, the Executive
Secretary shall convene a special meeting upon receipt of a request in writing
signed by not less than three members of the Appeals Authority save that such
requests shall not be made without justifiable cause.
(3) The Appeals Authority may act notwithstanding any vacancy in its
membership.
(4) No act or proceeding of the Appeals Authority shall be invalid by
reason of any defect or irregularity in the appointment of any member or by reason
that any person who purposed bona fide to act as a member at the time of the act or
proceeding was in fact disqualified or not entitled to act as a member.

Procee-dings of
the Appeals
Authority

5.-(1) In resolving disputes or complaints the Appeals Authority shall

conduct proceedings in accordance to the Rules made under this Act.
(2) Where the Rules are silent in relation to any particular practice or
procedure the proceedings of the Appeals Authority shall be conducted in
accordance with such Rules of practice and procedure as the Appeals Authority
may specify.

Quorum

6 -(1) In any meeting of the Appeals Authority, three members shall form a
quorum for a hearing of review or an appeal.
(2) In the absence of the Chairman, the members present at a meeting of the
Appeal Authority shall select one of their members to act as chairman for that
meeting and the member who is selected shall be responsible for reporting the
findings of such meeting to the Chairman.
(3) At any hearing of the appeal or complaint, the decision of the majority of
the members present shall be recorded as a decision of the Appeals Authority, save
that a member who dissents from that decision shall be entitled to have his decision
and the reasons thereof be recorded in the minutes of that meeting.

Records of
Appeal

7.-(1) Proceedings at the hearing by the Appeals Authority shall be recorded

in writing by the members or by any other authorized person.
(2) The records of every proceedings of the Appeals Authority shall be
signed by the members present and the Chairman or a person presiding over.

Minutes of the
meetings

8. Minutes of each meeting of the Appeals Authority shall be recorded by the

Executive Secretary in a proper form and shall be confirmed by the Appeals
Authority and signed by the Chairman and the Executive Secretary or by an officer
of the Secretariat who has been authorized in writing to act on behalf of the
Executive Secretary at the next meeting.

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Notification
of decision

9. Notification of decision made by the Appeals Authority and all other

communications sent on its behalf shall be signed by the Executive Secretary or by
an officer of the secretariat who has been authorized in writing to act on behalf of
the Executive Secretary.

Fees and
allowances

10. The Minister may prescribe fees and allowances which may be payable to
the Chairman and Members of the Appeals Authority.

Passed in the National Assembly on the 14th November, 2011.

THOMAS D. KASHILILAH,
Clerk of the National Assembly

98