PUBL IC

PROCURE ME NT ACT,
2003

(ACT 66 3)
Presented by:
Ing. Richard Quaynor
CSIR-BRRI
PUBLIC PROCUREMENT ACT,
2003
This is an Act to Provide for Public
Procurement
Establish Public Procurement Board
Make Administrative and Institutional
Arrangements for Procurement
Stipulate Tendering Procedures

THE LAW THEREFORE ESTABLISHES THE

PUBLIC PROCUREMENT BOARD TO
GIVE EFFECT TO THESE PROVISIONS
PUBLIC PROCUREMENT BOARD
SEC.1
There Shall be Established by this Act, a
Body to be known as the Public
Procurement Board referred to in this Act
as the Board [S1(1)]

Object of the Board

To harmonise the processes
Secure Judicious, Economic and Efficient
use of state resources and ensure that
Procurement is carried out in a Fair,
Transparent and Non-discriminatory
manner.
FUNCTIONS OF THE PROCUREMENT
BOARD SEC.3
In furtherance of the object of the Board shall perform
the following functions:
• Make proposals for the formulation of policies S3(a)
• Ensure policy implementation and human resource
development S3(b)
• Publish a monthly procurement bulletin… S3(g)
• Advise government on issues relating to public
procurement 3(l)
• Maintain a database of suppliers, contractors and
consultants 3(p)
• Investigate and debar tenderers who have seriously
neglected their obligations under a public contract,
have provided false information or offered
inducements (3q)
• Hold annual forum for consultation on Public
PROCUREMENT STRUCTURES
Head of Entity
 Tender Committee
 Tender Evaluation Panel
 Tender Review Board
 Procurement Units
 PROCUREMENT STRUCTURES CONT’D

Procurement Entity:
Definition
Any unit or individual that has recourse to
the use of Public funds is a Procurement
 Entity.
Entity Types
 Regional Coordinating Council
 MMDA’s ; State Owned Enterprises
 Public Universities, Schools and Colleges
 Hospitals and Health Institutions
 Bank of Ghana and Financial Institutions
PROCUREMENT STRUCTURES (Cont’d)
Head of Entity:

The Head of the Entity is more or less the Principal

Account Holder (PAH) as stated under Section 74 in
the Financial Administration Act, 2003 (Act 654).
EXAMPLES OF ENTITY HEADS
CMA/Ministries/SOEs Sector Minister;
Regional Coordinating Regional Minister;
Council

District Assemblies District Chief

Executive

Schools and Colleges Headmasters ETC

PROCUREMENT STRUCTURES (Cont’d)
Head of Entity
Key Functions of PAH

 Ensures that the provisions of the Act are

complied with;
 Is held accountable should a contract be
awarded in a manner that is inconsistent with
the Act;
 ENTITY
MakesTENDER COMMITTEE
decisions (S 17) manner .
in a corporate
Each Procurement Entity is expected to establish a
Tender Committee as set out in schedule 1 of the
Act 663.
ENTITY TENDER COMMITTEE (Cont’d)
Composition of Tender Committee for a Ministry:
• Chairman – A Minister/Chief Executive Officer
Members
• Members – Head of Finance / Head of Accounts
Division
• A Representative of the Ministry of Justice
• Three other Heads of Divisions or Departments
• Two Members of Parliament
• Secretary: The Officer Heading the Procurement
Unit
Key Functions of Entity Tender
Committee:
plans and quarterly reviews procurement
Key Functions of Entity Tender
Committee (cont’d)
awards contracts, publishes awards,
manages contracts,
takes delivery,
monitors performance of suppliers and
contractors.

Tender
What Evaluation
is a Tender EvaluationPanel
Panel?
Specialists appointed as and when required to
review and make recommendation for contract
award, using specified and previously published
criteria in the tender documents for evaluation.
• The specialists need not be in house.
TENDER REVIEW BOARDS (S20)
Entity Tender Review Boards shall be established at
4 levels : (Sect 20 & schedule 2)
 Central Tender Review Board;

 Ministerial Tender Review Boards;

 Regional Tender Review Boards;

 District Tender Review Boards.

Key Functions:
►review the activities at each step of the
procurement cycle
►give concurrent approval
►furnish the Board with reports in a prescribed
format;
PROCUREMENT RULES
Procurement Planning (S21)
Qualification of Tenderers (S22)
Prequalification Proceedings (S23)
Participation in Procurement Proceedings (S25)
Record of Procurement Proceedings (S 28),
Rejection of Tenders, Proposals and Quotations (S
29)
Public notice of contract awards (S 31)
Inducements from Contractors, Suppliers and
Consultants (S 32)
PROCUREMENT RULES (Cont’d)
• Procurement Planning S 21
A procurement entity shall prepare a procurement
plan to support its approved Budget and the Plan
shall indicate:
(a) capture on-going contract packages and
financial commitments,
(b) package new contracts,
(c) estimate cost for each package,
(d) determine the procurement methods, and
(e) determine processing steps and times.

A Procurement Entity shall submit to its Tender

Committee not later than 1 month to the end of the
financial year the procurement plan for the ensuing
year for approval.

eg. Procurement Plan for 2010 should be ready

PROCUREMENT RULES (Cont’d)
• After budget approval and at quarterly
intervals, each procurement entity shall
submit an update of the procurement plan to
its Tender Committee.

• The procurement entity MUST send to the

Tender Review Board, procurement notices
for contracts and procurement plans above
the thresholds stipulated in Schedule 3 for
publication in the Public Procurement Bulletin.

• SHALL not divide a procurement order into

parts or lower the value of a procurement
order to avoid the application of the
procedures for public procurement in this Act
QUALIFICATION OF TENDERERS (S 22)
• Tenderers must possess:
Professional and Technical qualifications and
competence
Financial Resources
Equipment and other physical facilities
Managerial capability, reliability and experience
Competent personnel
• Must have fulfilled all tax obligations
• False declarations are not permitted

 Ways of verifying Qualification

Pre-qualification
Classification
Expression of Interest

Procurement rules
Prequalification Proceedings (Sect. 23)
Entities are allowed to prequalify tenderers.
The rule is essentially to remove redundancies in
the process in terms of time and effort of
evaluation but not to limit competition.
Participation in procurement proceedings shall be
on a
REJECTION OF TENDERS PROPOSALS AND
QUOTATIONS (S 29)
• Allowed any time prior to acceptance
• The grounds should have been previously
stated in the document.
• Tenderers must be informed immediately of
the rejection
• Record must be kept of the rejection
Inducement from Contractors, Suppliers
and Consultants
• The tenders of participants who make or accept to
make an offer of inducement shall be rejected
The offering and the acceptance to offer
compromise the sanctity of the process
• It is an offence under this Law.
Methods of Procurement
 Pre-Qualification
 International Competitive Bidding
 National Competitive Tender
 Restricted Tendering
 Price Quotation
 Single Source Procurement and Selection
 Advertisements for Expression of Interest for
Consulting Services in Local Newspapers
 Least-Cost Selection
 Selection based on Consultant’s Qualification.
 Single Source-Selection
Tender Procedure
National Competitive Tendering (S 44)
Used when procurement entity decides
that only domestic tenderers may
submit tenders
(Schedule 3)

International Competitive Tender (S 45)

Used when effective competition calls for
inclusion of foreign firms in the tender
process (Schedule 3)
TENDERING PROCEDURES cont’d
Provision of Tender Documents (S 49)
• Appropriate Standard Tender Documents provided
in
Schedule 4 must be used.
• Changes can be introduced only through tender or
contract data sheets, or through special
conditions of contract and not by introducing
changes in the standard tender documents.
Submission of Tenders (S 53)
The Procurement Entity shall,
(a) fix the place for, and a specific date and time
as the deadline for the submission of tenders; and
(b) allow tenderers at least six weeks to prepare
their tenders for international competitive
tendering.
TENDERING PROCEDURES cont’d
Submission of Tenders (S 53) cont’d
• The time for preparation of tenders under national
competitive tendering procedures shall not
exceed four weeks.
Opening of Tenders (Sec 56)  
Tenders shall be opened
At the time specified in the tender documents as
the deadline for the submission of tenders or at
the deadline specified in any extension of the
deadline
The time for opening of the tenders shall be the
same as the deadline for receipt of tenders or
promptly after that deadline.
TENDERING PROCEDURES cont’d
Opening of Tenders (Sec 56)
(3) A supplier or contractor who has submitted a
tender or a representative of that supplier or
contractor, shall be permitted by the procurement
entity to be present at the opening of tenders.
Evaluation of Tenders (Sec 59)
The procurement entity shall evaluate and
compare the tenders that have been accepted in
order to ascertain the successful tender in
accordance with the procedures and criteria set
out in the invitation (tender) documents.

No criterion shall be used that has not been set

out in the invitation documents.
TENDERING PROCEDURES cont’d
Evaluation of Tenders (S59 cont’d)
The successful tender shall be:
(a) the tender with the lowest evaluated tender;
and
(b) the lowest evaluated tender ascertained on the
basis of criteria specified in the invitation
documents.
Margin of Preference S60.
 Margin of preference may be granted to
domestic contractors or domestically produced
goods or for the domestic suppliers of services.
 must be reflected in the record of procurement
proceedings;
 Subject to approval by the Board.
MARGIN OF PREFERENCE GUIDELINES BY
THE BOARD
Goods
Margins of Preference will be allowed under
National Competitive Tendering as well as
International Competitive Tendering.
Eligibility for preference for goods is determined
by the sources of the domestic goods and not by
the nationality of the Tenderer.
The Nationality of the Tenderer or Supplier is
irrelevant, making it clear that the preference is
given to the GOODS and not to the Tenderer

To qualify under DOMESTIC GOODS the following

conditions should be met:
(a) Where local labour, raw materials and
components from within Ghana account for 15
percent or more of the Ex-Works (EXW) price of
the product offered.
MARGIN OF PREFERENCE GUIDELINES BY THE
BOARD (cont’d)
(b) Where imported raw materials or component
constitute the bulk of the inputs and local labour and
additional components are required for processing into
finished products and the proportion of domestic value
added is equal to 10 percent or more of the Ex Works
(EXW) price of the product offered.
Goods satisfying Condition (a) will attract a margin of
preference of the 20 percent and those meeting
Condition (b) will attract 15 percent.
The use of local expertise should be given points
ranging from 10 – 15 points during the evaluation of
Technical Proposals.
The minimum of 10 points will be awarded where
40 percent of the Key Personnel are Ghanaians.
This will apply irrespective
a wholly Ghanaian owned firm or a joint venture
led by a foreign forms
RIGHT TO REVIEW (S 78)
Any supplier, contractor or consultant that claims
to have suffered loss or injury due to a breach of
a duty imposed on the procurement entity by this
Act, may seek review.

DISPOSAL OF STORES, PLANT AND EQUIPMENT (S

83)
 The head of a procurement entity shall convene a
Board of Survey comprising representatives of
departments with unserviceable, obsolete or
surplus stores, plant and equipment which shall
report on the items and subject to a technical
report on them, recommend the best method of
disposal.
OFFENCES RELATING TO PROCUREMENT
(S92)
Any person who contravenes any provision of this
Act commits an offence and where no penalty has
been provided for the offence, the person is liable
on summary conviction to a fine not exceeding
1000 penalty units or a term of imprisonment not
exceeding five years or to both.

International Obligations (S 96)

Notwithstanding the extent of the application of
this Act to procurement, procurement with
international obligations arising from any grant or
concessionary loan to the government shall be in
accordance with the terms of the grant or loan.
REPEAL AND SAVINGS (S99)
The following enactments are revoked or
repealed as appropriate:

(a) The District Tender Board Regulations,

1995 (L.I. 1606);
(b) the Ghana National Procurement
Agency Decree, 1976 (S.M.C.D. 55); and
(c) the Ghana Supply Commission Law,
1990 (P.N.D.C.L. 245).
END OF
PRESENTATION