Procurement Methods

There are five Procurement methods that procuring entities can adopt. The choice of a procurement method shall be determined in accordance with the conditions specified in Part VII of the Act, taking into account : 

  1. the estimated value of the procurement;

  2. whether the procurement is of goods, works, non- consultancy or consultancy services;

  3. any special circumstance, as such as a limited number of potential sources or an emergency requirement; and

  4. whether national or international completion is required.

The chosen method has to be approved by the appropriate authority. This is to ensure transparency, that it does not favour any individual or group and that it does not hinder competition.

Open Bidding (section 57 of the PPA)

The objective of open bidding is to obtain value for money and promote private sector participation through maximum possible competition.

The tender is advertised in local newspapers and on POU website and is open to the public and companies all potential bidders to participate.

Bids are submitted in sealed envelopes and deposited in tender boxes located  the National Tender Board or at the designated location. Bidders are welcome to attend the public bid opening.

Limited Bidding/Selection (section 61/62 of the PPA)

The objective of limited bidding/selection is to obtain competition and value for money to the extent possible where the circumstances do not justify or permit the use of open bidding.

This method is used only when;

the goods, work or service including consultancy services are only available from a limited number of suppliers; or

there is an urgent need for the goods, works or services including consultancy services and engaging in open bidding would be impractical.

Direct Bidding (section 63 of the PPA)

The objective of direct bidding is to achieve timely and efficient procurement, where the circumstances or value do not justify or permit the use of competition.

Direct bidding maybe use where;

(a) the goods, works or consultancy or non-consultancy services are available only from a single source and no reasonable alternative or substitute exists;

(b) due to an emergency, there is urgent need for the goods, works or services, making it impractical to use other methods of procurement because of the time involved in using those methods;

(c) additional goods, works or services must be procured from the same source because of the need for compatibility, standardisation or continuity;

(d) an existing contract could be extended for additional goods, works or services of a similar nature and no advantage could be obtained by further competition; or

(4) A procuring entity shall obtain the prior authorisation of the approvals authority for the use of —

limited bidding or limited selection; or

direct bidding.

Request for Sealed Quotation (section 64 of the PPA)

A request for sealed quotations method shall only be used for the procurement of —

(a) readily available commercially standard goods not specially manufactured to the particular specifications of the public body;

(b) small works; or

(c) other small services.

Direct Bidding

The objective of direct bidding is to achieve timely and efficient procurement, where the circumstances or value do not justify or permit the use of competition.

This method is used in Urgency and emergencies where it is impractical to use any other procurement method because of time constraints.

Where the  goods, works and services  are standard, for reasons of continuity and are available from a single source. No reasonable alternative or substitute exists.