DELEGATION OF POWERS BY THE ACCOUNTING

OFFICER
Section 39 (1) (a) (i) (ii) and Regulation 21 (1) provides that An Accounting
Officer may delegate a procurement function or a disposal function of the
Accounting Officer, Contracts Committee or the procurement and disposal unit to
a sub-division of the procuring and disposal entity or a member of staff of the
procuring and disposal entity.

Section 39 (b) (i) (ii) and Regulation 21 (2) provides that The Contracts Committee
or the Procurement and Disposal Unit may request the Accounting Officer to
delegate a procurement or disposal function of the Contracts Committee or of the
Procurement and Disposal Unit, respectively to any other procuring and disposing
entity; or a third party procurement or disposal provider, in accordance with the
terms and conditions specified in regulations made under this Act.

Regulation (21) (3) provides that a request for delegation of a procurement function
shall be made using Part I of Form 3 in the Schedule and Part I of Form 4 in the
Schedule for delegation of a disposal function. On receipt of a request for
delegation of functions, the Accounting Officer shall issue his or her decision
within ten working days using Part II of Form 3 in the Schedule for delegation of a
procurement function and Part II of Form 4 in the Schedule for delegation of a
disposal function.

Contracting out of procurement or disposal function to another procuring and

disposing entity.
Section 39 (b) (i) Regulation (22) (1) An Accounting Officer may contract out a
procurement function or a disposal function of the Contracts Committee, the
procurement and disposal unit or the user department to another procuring and
disposing entity or to a third party procurement and disposal provider. Where a
procurement or a disposal function of the procuring and disposal entity is
contracted out to another procuring and disposing entity, the Accounting Officers
of the two procuring and disposing entities shall, in writing, agree on—
(a) the functions to be contracted
out;
(b) the mechanisms for implementation of the procurement or disposal
function; (c) the procedures for reporting and monitoring;
(d) the procedure for approving the procurement or disposal
function; (e) the limitations or exceptions to the contract, if any; and
(f) the costs to be paid, if any.

The Accounting Officer of the procuring and disposing entity whose function is
contracted out to another procuring and disposing entity shall be accountable for
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the decisions taken by the procuring and disposing entity to which a procurement
or disposal function is contracted out.

Conditions for contracting out procurement or disposal

function.

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Regulation (23) provides that a procurement or a disposal function of a procuring
and disposal entity may be contracted out to another procuring and disposing entity
—
(a) where that other procuring and disposing entity has specialised knowledge,
expertise or experience in the subject matter of the procurement or disposal;
(b) where the procurement or disposal is common to both procuring and disposing
entities;
(c) where a project is implemented by both procuring and disposing entities jointly;
(d) where it would be more economical or efficient to contract out a procurement
of disposal function; or
(e) for any other justifiable reason.

Procurement with another procuring and disposing entity of items used in

common.
Regulation (8) provides that a procuring and disposing entity shall, for the purposes
of undertaking procurement of works, services or supplies which are used in
common with another procuring and disposing entity, be guided by the prices for
the works, services or supplies determined by the Authority. A procuring and
disposing entity shall, agree with the other procuring and disposing entity—
(a) on the funds available for the procurement;
(b) on the mode of payment for the requirements;
(c) on the reimbursement of the costs of the procurement including the advertising
costs, photocopying costs and the cost of the personnel, to the procuring and
disposing entity that conducts the procurement; and
(d) on the appropriate contract, including the delivery arrangements.

Contracting out of procurement or disposal function to third

party.
Third party procurement (TPP) is the transfer of specified key procurement
activities relating to sourcing and supplier management to a third party. Businesses
will sometimes do this to reduce costs or, often in the case of procurement, to add
specialist skill sets to their procurement department1. Thus, TPP’s occur where an
external party procures goods or services on behalf of an entity which is also
known as outsourcing. Typically the most common outsourced activities are
indirect materials and services that are commonly referred to as indirect
procurement. The use of a third party to conduct some or all of a procurement
should be carefully considered by the entity.

Section 39 (b) (ii) Regulation (23) (1) provides that where there is lack of technical
capacity an Accounting Officer may contract out a procurement or disposal
function of the procuring and disposal entity to a third party. Where an Accounting
Officer contracts out a procurement or disposal function to a third party, the
Accounting Officer shall select the third party from the providers pre-qualified by
the Authority. The contracting out of a procurement or disposal function to a third
party shall be in

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https://www.robertwalters.co.uk/career-advice/latest-procurement-supply-chain-research/benefits-of-outsourcing.html Benefits of outsourcing
accordance with the procurement rules and methods in the Act, regulations made
under the Act and the relevant guidelines.

Where none of the providers pre-qualified by the Authority is competent to provide

the required procurement or disposal function, a procuring and disposing entity
may contract another person to provide the required procurement or disposal
function. The procuring and disposing entity shall, before contracting another
person to provide the required procurement or disposal function, make an
application to the Authority requesting the Authority to prequalify that person as a
provider. The third party contracted under this regulation shall submit a report of
the procurement or disposal function undertaken, to the Accounting Officer.

Circumstances under which Third party procurement and disposal are

used.

1. Where a PDE does lacks the technical

capacity
Section 40 (1) provides that where it is deemed that there is lack of technical
capacity, and subject to guidelines and prior approval of the Authority, a procuring
and disposing entity may engage third party procurement and disposal services.

Upon deciding to invite third party procurement services, a PDE shall

—
(a) secure prior written assurance of the Accounting Officer that funds are available
to pay in full and on time for those services;
(b) obtain those services from among firms pre-qualified by the Authority;
and
(c) follow the procedure laid down by the Authority in its
guidelines.

Guideline 7/2014 on Third Party Procurement or Disposal Providers provides that

where there is lack of technical capacity, a PDE may with the approval of the
Authority procure Third Party Procurement and Disposal services on a case by case
basis. The Authority shall pre-qualify firms to provide procurement and disposal
line support services to PDE’s on issues where there is lack of technical capacity.
A PDE shall competitively obtain those services from among firms pre-qualified
by the Authority. The list of firms currently prequalified by the Authority were 5
under category A to provide regulatory support services and 2 under category B to
provide line support services.

2. Where there is persistent breach of the law by a

PDE
Section 9 (b) (iv) provides that where there is persistent breach of this Act or

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regulations or guidelines made under this Act, the Authority may recommend to a
competent Authority to transfer temporarily, the procuring and disposing function
of a procuring and disposing entity to a third party procurement agency.

3. Delegation of powers by the Accounting

Officer
Section 39 (b) (ii) provides that an Accounting Officer may contract out certain
procurement and disposal functions of the contracts committee, procurement and
disposal unit or user department to a third party procurement or disposal provider
in

3 Lecture Notes by Grace Flavia Lamuno

accordance with the terms and conditions specified in regulations made under
this
Act
.

4. Non Compliance with the law by a

PDE
Section 95 (2) provides that where a procuring and disposing entity consistently
contravenes this Act, it shall, on the recommendation of the Authority and on the
approval of the Minister, have its procurement and disposal function transferred to
a third party procurement agency until the Authority is satisfied that the causes of
the contravention have been rectified.

Regulation (25) provides that where Accounting Officer contracts out a

procurement or disposal function to a third party, the Accounting Officer shall enter
into a contract with the third party, which shall state—
(a) the procurement or disposal function to be undertaken by the third party which
may be defined by value, type, procurement or disposal method or any other
criteria; (b) that the procurement or disposal function to be undertaken by the third
party shall be in accordance with the Act, regulations made under the Act and the
relevant guidelines;
(c) the fee or unit rate to be paid for the services of the third party by the procuring
and disposing entity;
(d) whether a function may be sub-contracted by the third party and where this is
allowed, state the requirement for the prior written approval of the Accounting
Officer;
(e) that the records of the procurement or disposal are the property of the procuring
and disposing entity;
(f) the procedural arrangements for implementing the procurement or disposal
function; and
(g) any other appropriate contract provisions, based on the standard solicitation
document for services.

Revocation of delegation of powers

Regulation (21) (5) provides that an Accounting Officer may at his or her own
initiative or following a written recommendation by the Contracts Committee or
the Procurement and Disposal Unit, revoke a delegation of functions. A delegation
of functions shall be revoked through written instructions to the person to whom
the delegation was made and shall have immediate effect unless otherwise stated.

ACCREDITATION FOR ALTERNATIVE

SYSTEMS Relevant Law
• PART III of the PPDA Act SECTIONS 40A, 96 and 97
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• The Public Procurement and Disposal of Public Assets (Procurement
of
Medicines and Medical Supplies) Regulations, 2014.
• Public Procurement and Disposal of Public Assets Authority Annual
Performance
Report: July 2018 – June 2019

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 • The Public Procurement And Disposal Of Public Assets (Procurement
Of
Medicines And Medical Supplies) Regulations,
2014.
• Case Law

Accreditation for alternative

systems.
Section 40A (1) provides that a procuring and disposing entity which is not able to
comply with a particular procurement or disposal procedure required under this
Act, may apply to the Authority for accreditation of an alternative system.

Grounds under which Accreditation for Alternative systems may be

permissible Subsection (2) provides that the Authority shall permit accreditation of
an alternative system—
(a) where exceptional requirements make it impossible, impractical or
uneconomical to comply with this Act;
(b) where market conditions or behaviour do not allow effective application of
this
Act; and
(c) for specialised or particular requirements that are regulated or governed by
harmonised international standards or practices.

Subsection (3) provides that notwithstanding subsection (2), the Authority may, on
its own initiative, accredit an alternative system for a procuring and disposing
entity which is not able to comply with a procurement or disposal procedure
required under this Act.

Grounds under which the Authority shall Accredit and Alternative system
Subsection (4) provides that the Authority shall accredit an alternative system
where a procuring and disposing entity—
(a) operates in a specialised field or discipline which requires alternative or
additional regulations;
(b) has a status that requires alternative or additional regulations;
(c) is required to use an alternative system to comply with the provisions
of international or any other agreements; or
(d) has other valid reasons which necessitate the use of an alternative
system.

Medicines and Medical

supplies
Subsection (6) provides that there shall be an alternative system for the

1 Lecture Notes by Grace Flavia Lamuno

procurement of medicines and other medical supplies and that the Minister shall in
consultation with the Minister responsible for health and the Authority shall make
regulations for the procurement of medicines and other medical supplies. The
regulations made under this section shall—
(a) provide for the special nature of procurement of medicines and medical
supplies;
(b) provide for the specific attributes of medical
supplies;
(c) define the medical supplies which are subject to this
section;

2 Lecture Notes by Grace Flavia Lamuno

(d) take into consideration developments, if any, in the procurement, storage and
distribution of medicines and medical supplies.

Regulation (3) of The Public Procurement and Disposal of Public Assets

(Procurement of Medicines and Medical Supplies) Regulations, 2014 provides that
the procurement of medicines and medical supplies shall be in accordance with
regulations made under the Act, except as provided for in these Regulations.

Regulation 3 defines medicines to mean any substance or preparation used or

intended to be used for internal or external application to the human body either in
the treatment or prevention of disease or for improving physiological functions.

Regulation (3) defines medical supplies to include Sundries and medical

consumables (Adhesive plaster, Airway guedel, Apron, Autoclave marketing, tape
Bandages, Bins and bin liners, Blades scalpel, Blood lancets, Blood
transfusion sets bags and accessories, Bone wax, Boots, Brain swabs, Catheters
and tubes Cotton wool, Gauze, Gloves, Intravenous cannula, Intravenous infusion
sets and burettes, Linen material, Lumber puncture, needles and epidural sets,
Medical gas, Nasal oxygen cannula, Needles, Plaster of Paris, Protective hospital
supplies, Safety boxes, Safe delivery kits, Sutures, Syringes with or without
needles, Theatre supplies, Thorax drainage bottle and accessories, Umbilical tape,
Urine and colostomy bags) Disinfectants and anti-effectives agents, Medical
equipment, Dental supplies, Orthopedic and dental supplies, Laboratory supplies
and consumables, Test kits, Hospital stationary, Radiopharmaceuticals, Medical
envelopes , Insecticide and non-insecticide treated mosquito nets and Medical staff
uniforms and protective wares.

Regulation 3 defines a procuring and disposing entity to mean a statutory body, a

department of Government or of a local government and any other body or unit
established and mandated by Government to procure medicine.

Methods of
procurement
Open domestic
bidding.
Regulation (4) provides that open domestic bidding shall be the preferred method
of procuring medicines and medical supplies. Procurement using open domestic
bidding shall be by public advertisement of a bid notice published in at least one
newspapers of wide national circulation.

Open international
bidding.
Regulation (5) provides that a procuring and disposing entity shall procure
medicines or medical supplies using the open international bidding instead of open
domestic bidding, where competition shall not be effected without foreign bidders
or where foreign bidders will increase the value for money. Open international
bidding shall be used in accordance with the Fourth Schedule to the Act and the
Public Procurement and Disposal of Public Assets (Rules and Methods of
Procurement) Regulations, 2014.
Restricted
bidding.
Regulation (6) (1) provides that where there is a limited number of providers, a
procuring and disposing entity may procure medicines or medical supplies using
the restricted bidding where—
(a) in the case of a procurement by the National Medical Stores, the value of the
procurement is less than two billion shillings; and
(b) in the case of a procurement by a procuring and disposing entity other than the
National Medical Stores, the value of the procurement is less than five hundred
million shillings.

The short list shall have at least five providers, except where the required
medicine is only available from less than five providers. Where a shortlist has less
than five providers, the Procurement and Disposal Unit shall provide justification
for this to the Contracts Committee.

The minimum bidding period for the restricted bidding shall be fifteen
days.

Request for
quotations.
Regulation (7) (1) provides that a procuring and disposing entity may procure
medicines or medical supplies using the request for quotations method where the
value of the procurement—
(a) in the case of a procurement by the National Medical Stores, is less than one
billion shillings; and
(b) in the case of a procurement by a procuring and disposing entity other than the
National Medical Stores, is less than one hundred million
shillings.

The request for quotations shall be used where—

(a) the time available is not sufficient for restricted bidding;
or
(b) where restricted bidding does not receive responsive bids.

The short list shall have at least three providers, except where the required
medicines or medical supplies are only available from less than three providers.

Micro
procurement.
Regulation (8) (1) provides that a procuring and disposing entity shall procure
medicines or medical supplies using the micro procurement method where the
value of the procurement—
(a) in the case of a procurement by the National Medical Stores, is below one
hundred
million shillings;
and
(b) in the case of a procurement by a procuring and disposing entity other than the
National Medical Stores, is below five million
shillings.

Micro procurements shall be executed by a member of the procuring and disposing

entity appointed, for this purpose, by the accounting officer of the procuring and
disposing entity.
The short list shall have three providers, except where the required medicines or
medical supplies are only available from less than three providers.

Direct
procurement
Regulation (9) (1) provides that a procuring and disposing entity shall use the
direct procurement method where a provider is a single provider or a sole source
provider.

A procuring and disposing entity shall use a single provider where there is a
limited number of providers who are able to provide the required medicines or
medical supplies, such as in an emergency situation.

A procuring and disposing entity shall use a sole source provider where only one
provider is able to provide the medicines or medical supplies, or where there is
need for continuity in the delivery of the medicines or medical supplies.

Short list of
providers.
Regulation (10) (1) provides that a procuring and disposing entity shall develop a
short list of providers for medicines using—
(a) the list of pre-qualified providers of the procuring and disposing entity;
(b) the register of the World Health Organisation or any other international agency
of which Uganda is a member;
(c) the prequalified list of another procuring and disposing
entity; (d) the registers of the National Drug Authority; or
(e) the procuring and disposing entity’s knowledge of the
market.

A procuring and disposing entity shall develop a short list of providers for medical
supplies using—
(a) the list of pre-qualified providers of the procuring and disposing entity;
(b) the prequalified list of another procuring and disposing entity; or
(c) the procuring and disposing entity’s knowledge of the
market.

Biddin
g
Bid
security
Regulation (11) provides that the value of a bid security, where requested for by a
procuring and disposing entity, shall be a fixed value or a percentage of the total
bid price, but shall in all cases not exceed 2% of the total estimated value of the
bid.

Use of brand names

Regulation (12) (1) provides that specifications shall not be issued with reference
to a particular trademark, brand name, patent, design, type, specific origin,
producer, manufacturer, catalogue or numbered item.
Where there is no other sufficiently precise or intelligible way of characterising a
requirement except by the use of a reference in sub regulation (1), the description
shall be used, followed by the words “or equivalent”, and shall only serve as a
benchmark during the evaluation process.
Notwithstanding sub regulation (1), where a standardisation policy is adopted by a
competent authority or the World Health Organisation, the corresponding
trademark, brand name, patent, design, type, specific origin, manufacturer,
producer, catalogue or numbered item may be used in the statement of
requirements.

Notice of best evaluated bidder.

Regulation (13) (1) provides that a procuring and disposing entity shall, within
two days after the decision of the contracts committee to award a contract—
(a) send a copy of the notice of best evaluated bidder to all the bidders who
participated in the bidding process;
(b) display the notice of best evaluated bidder on the notice board of the procuring
and disposing entity and the website, where available; and
(c) display the notice of best evaluated bidder on the website of the Authority.

A notice of the best evaluated bidder shall be published for a minimum of

(a) five working days, before the award of contract, in the case of open or restricted
procurement method; and
(b) three working days, before the award of contract, in the case of request for
quotations procurement method.

The procuring and disposing entity shall obtain proof of delivery of the notice of
best evaluated bidder to all bidders.

The notice of best evaluated bidder shall not be issued—

(a) where the direct procurement method is
used;
(b) where a competitive procurement method is used and only one bid is received
by the procuring and disposing entity;
(c) where the micro procurement method is used;
and
(d) for a procurement in an emergency
situation.

Procedure for applying for accreditation of alternative procurement and

disposal systems.
Regulation (27) provides that a procuring and disposing entity which is not able to
comply with a particular procurement or disposal procedure required under the
Act, shall, in writing, apply to the Authority for an alternative system. The
application under sub-regulation (1) shall—
(a) state the procurement or disposal procedure for which an alternative system
is sought;
(b) state the alternative system sought by the procuring and disposing
entity;
(c) include an analysis of how the alternative system sought, differs from the
relevant procurement and disposal procedure required under the Act;
(d) include a justification for using the alternative system, including a copy of
any relevant agreement or legislation; and
(e) state how the proposed alternative system complies with the principles of
public procurement.

An alternative accredited system shall

—
(a) comply with the basic principles of public procurement and disposal;
and
(b) except for the particular procurement or disposal procedure the procuring and
disposing entity cannot comply with, comply with all the other provisions of the
Act, Regulations made under the Act, the relevant guidelines and the standard
bidding documents.

The Authority shall issue its decision within twenty one working days of the
receipt of the application.

The Board appointed the Management Advisory Committee (MAC) to handle the
above mandate of the Authority. To date about eighty seven (87) applications for
accreditation of alternative procurement procedures have been handled by the
Board. Examples of PDEs that have been authorized to use accredited to use
alternative systems include; National Social Security Fund (NSSF) submitted
an application to the Authority for accreditation of the acquisition system under its
Investment Policy as an alternative procurement system under PPDA Regulation
342. National Water and Sewerage Corporation (NWSC) submitted an application
to the Authority for accreditation of the acquisition system regarding procurement
of fuel and consumables with high fluctuating prices over short periods and the
entity wanted approval of reduction of the period of opening financial bids, the
PPDA Board of Directors, in accordance with PPDA Regulation 342 (5), approved
the application.