KEYAREASINTHEAMENDMENTSTOTHEPPDAACT.

KEYDefinitionsunderthePPDAAct DefinitionofAccountingOfficerhasbeenexpandedbeyondthoseappointedbySTto includeheadsofstatutorybodiesorstateenterprises. Definitionofemergencysituationisexpandedtoincludeasituationwherea Governmentprogrammewouldbedelayedorseriouslycompromisedunlessa procurementisundertakenwithintherequiredtimeframe. Anemergencysituationisfurtherqualifiedbythedefinitionofurgentasfollows urgentdoesnotincludecircumstancesthat ShouldhavebeenforeseenbythePDE; Arearesultofinadequateplanning; ArearesultofdelaysbyorwithinthePDE DefinitionofPDEclarifiedtoinclude; AMinistryorGovernmentdept; ADistrictorMunicipalCouncil; AStatutorybody; ACompanyregisteredundertheCompaniesActwhereGOUoraPDEhas majorityshareholding; AConstitutionalcommission;and APublicuniversityandapublictertiaryinstitution DefinitionofProcurementSpecialistisapersonengagedinaprofession,occupationor callinginwhichrecoursetoprocurementisdirectlyorindirectlyinvolvedandhassuch knowledgeandexperienceofthepracticeofprocurementorhasbeencertifiedor registeredbyaprocurementprofessionalbody. DefinitionofPublicAssetincludesproperty,land,sharesownedbyGovtoraPDEbut excludeslandheldbyUgandaLandCommission,DistrictLandBoardsorland compulsorilyacquiredbyGovt. DefinitionofRecordmeansanyrecordedinformation,inanyformat,includingan electronicformatinthepossessionorcontrolofapublicbody,whetherornotthat bodycreatedit DefinitionofSuppliesexpandedtoincludeland,assetsandlivestockinordertomake landacquisitionaprocurementundertheAct.

LimitationsofApplicationoftheAct ThePPDAActistoapplytoBankofUgandaandtheOfficeAuditorGeneralexceptin theperformanceoftheircoremandateundertheConstitutionunderArticles162and 163. Procurementproceduresunderbilateraltiedloans:Wherethereisaconditionofabi lateralloanornegotiatedgrantthattheprovidershouldoriginatefromthecountryof thedonor,procurementofsuchaprovidershallbeinaccordancewiththisAct. However,ifthereisathereisaconflictbetweentheAct,Regulationsoranydirections oftheAuthorityandaconditionimposedbythedonoroffunds,theconditionshall prevailwithrespecttoaprocurementthatusesthosefundsandnoothers. NewFunctions/PowersoftheAuthority PricesofCommonUserItems:TheAuthorityshalldeterminetheprice,where applicable,ofworks,servicesandsuppliesincommonusebymorethanonePDEwhich maybesubjecttocommonprocurementordisposal.TheAuthorityshallreviewfrom timetotimethepricesofsuchitems AdministrativeReview:TheAuthorityshallwithin15workingdaysofreceiptofacopy oftheAOsdecisionunderAdministrativeReview,reviewthedecisionandmake recommendationstothePDE,indicatinganycorrectivemeasurestobetaken.Where theAuthorityfailstogiveitsrecommendations,theAOmayimplementthedecision. EntryintoPDEpremises:Whenconductingprocurementaudits,compliancechecksor investigations,anauthorisedofficeroftheAuthoritymayenteranypremisesofaPDE, atareasonabletimeandinspectthepremisesandtomakeanyinquiriesthatmaybe necessaryforthecollectionofinformation. Whereanauthorisedofficerisrefusedentryorispreventedfromenteringpremises,a magistratemay,onapplicationbytheAuthority,issueawarrantauthorisingthePolice toenterthepremises,usingsuchforceasmaybereasonablynecessaryandtoconduct thesearchandobtaintherequiredinformation DirectingaPDEtotakecorrectiveactions:Wherethereispersistentorseriousbreach ofthisActorregulationsorguidelinesmadeunderthisAct,theAuthoritymaydirectthe concernedPDEtotakesuchcorrectiveactionasmaybenecessaryinthecircumstances, torectifythebreach

AccreditationofalternativesystemforaPDE:TheAuthoritymay,onitsowninitiative, accreditanalternativesystemforaprocuringanddisposingentitywhichisnotableto complywithaprocurementordisposalprocedurerequiredunderthisAct. Reservationschemes:TheAuthorityshall,inconsultationwithacompetentauthority andrelevantstakeholders,specifythepublicprocurementcontractstobesubjecttoa reservationschemeandshalldesignatetheparticularsectors,withinaspecified geographicalarea,thatareeligibletoparticipateinthereservationscheme. Suspensionofaprovider:TheAuthoritymayontherecommendationofaPDEorafter investigationsonitsowninitiative,orwhereitisdeterminedafteraspecialauditorbya courtthatabidderisengagedincorruptorfraudulentpractices,suspendaprovider fromengaginginanypublicprocurementordisposalprocessforaperioddeterminedby theAuthority. ProcurementandDisposalPlanning SubmissionofProcurementPlans:APDEtoprepareandsubmitannualProcurement PlanstoPS/STandPPDAandanysubsequentupdatestotheplan. DisplayofPlans:APDEtodisplayitsapprovedprocurementplanonitsnoticeboard andPPDAwebsite. EmergencyProcurements:Procurementsshallnotbecarriedoutoutsidethe procurementplanexceptwhereduetoanemergencysituation,theContracts Committeecannotmeettoapprovetheprocurement. ActionsbyAccountingOfficers AnAOshallnotsignacontractbeforeaprocurementisapprovedbytheContractsand DisposalCommitteeexceptwhereduetoanemergencysituation,theCommittee cannotmeettoapprovetheprocurement. TheAOshallinformtheContractsandDisposalCommitteeoftheContractwithin7 workingdaysofsigningthecontractandsubmittoPPDAareportonthecontractwithin 10workingdays. TheAOshallpriortothecommencementofaprocurementprocessundertakean assessmentofthemarketpriceofthesupplies,servicesoroftheunitcostsofthe works.

AnAOshallnotsignacontractwherethepricequotedbythebidderwhoisevaluated asthebestevaluatedbidderishigherthanthemarketpriceestablishedbytheAO.This ishoweversubjecttotheprovisiononnegotiations. AnAOshallnotsignacontractwithaproviderduringtheperiodofadministrative reviewandbeforetheAuthorityortheTribunalmakesadecision. ConditionsforNegotiations NegotiationsshallnotbecarriedoutbetweenaPDEandabidderexceptwhere Thecompetitiveprocurementmethodwasusedandonlyonebidwasreceived; Thedirectprocurementmethodwasused;or Theprocurementisforconsultancyservices. Negotiationsundertheaboveconditionsshallonlybecarriedoutwherethebest evaluatedbidorproposalexceedsthebudgetofthePDE.Insuchcircumstances,the PDEshallinvestigatewhythecostoftheprocurementexceedsthebudgetofthePDE andmay Canceltheprocurementprocessandrequestfornewproposals;or Negotiatewiththebestevaluatedbidderinordertoobtainareductionofthe scopeorthequantitiesoftheprocurement. ContractsCommittees ThefollowingofficersofaPDEarenoteligibleasmembersoftheCC HeadofthePDUbutshallberequiredtoattendthemeetingsoftheCCtooffer clarificationonanysubmissions; Headofthefinancedepartment,butnottheheadoftheaccountsdepartment, wherethepositionsareheldbydifferentofficers;and Staffofthedepartmentofinternalaudit. MembersofthegoverningbodyofthePDE WheretheAOnominatesmembersoftheCC,butbeforethenominationisapprovedby theST,thereisanemergencysituationinrespectofwhichaprocurementactivityhasto beperformed,theAOshallperformtheroleoftheCC.However,whereanAOperforms

theroleoftheCChe/sheshallsubmitareportoftheprocurementactivitycarriedout, totheAuthorityandgiveacopytotheST. WheretheSTissatisfiedthatitisnotpracticabletoapplytheprovisionunderSection 26(6)relatingtothethreeyeartenureofCCmembersandthelimitationof appointmentforonlytwoterms,theSTshallexempttheconcernedPDE. DefenceandNationalSecurityOrgansshallappointContractsCommitteestohandlethe procurementanddisposalofclassifieditems.TheAccountingOfficerofaDefenceand NationalSecurityOrgansshallnominatethemembersoftheclassifiedcontracts committeesandtheyshallbeapprovedbytheST. Confidentiality APDEshallnotdisclosetoabidderortoanyotherpersonwhoisnotinvolvedinthe preparationofthesolicitationdocuments,theevaluationprocessortheawarddecision, anyinformationrelatingto solicitationdocuments,beforethesolicitationdocumentsareofficiallyissued; theexamination,clarification,evaluationandcomparisonofbids beforethethebestevaluatedbiddernoticeisdisplayedontheprocurementanddisposal noticeboardoftheprocuringanddisposingentity. PreferenceSchemes Preferenceschemesaretobeappliedinrespectofgoods,worksandservices,where theopendomesticoropeninternationalbiddingmethodsareused. APDEwhenprocuringgoods,worksorservicesunderopenbiddingshallgrantamargin ofpreferencefor: (a)goodsmanufactured,mined,extractedorgrowninUganda,(15%) (b)worksbyUgandancontractorsorservicesprovidedbyUgandanconsultants,(7%) Goodsqualifyforpreference,asdomesticallymanufacturedgoods,where Thelabourorthevalueadditiontothegoodismorethan30%. Theproductionfacilityinwhichthegoodsaretobemanufactured,assembledor processedisinUgandaandisengagedinthemanufacturing,assemblingor processingofthegoodsatthetimeofsubmissionofthebid.

Acontractorandaconsultantqualifyforpreferencewhere ThecontractororconsultantisincorporatedorregisteredinUganda; Thecontractororconsultantifanindividual,isaUgandancitizen; ThecontractororconsultantifacompanyregisteredinUganda,morethe50% ofthecapitalofthecontractororconsultantisownedbyUgandancitizens;and Thecontractororconsultantifalegalentity,morethan50%ofthecapitalofthe contractororconsultantisownedbytheGovernmentorbyaPDE. ReservationSchemes PPDAinconsultationwithacompetentauthoritiesandrelevantstakeholders,shall specifythepublicprocurementcontractstobesubjecttoareservationschemeand shalldesignatetheparticularsectors,withinaspecifiedgeographicalarea,thatare eligibletoparticipateinthereservationscheme. Apublicprocurementcontractshallbesubjecttoareservationschemeinorderto Promotetheuseoflocalexpertiseandmaterials; Promotetheparticipationoflocalcommunitiesorlocalorganisations;or Applyspecifictechnologies. disposalmethods Publicassetsmaybedisposedofusinganyofthefollowingmethods Publicauction;Publicbidding;Directnegotiations;Saletopublicofficers; Destructionoftheassets;Conversionorclassificationofassetsintoanotherform fordisposalbysale;Tradein;TransfertoanotherPDE;and DonationThisisanewdisposalmethodandwillonlybeapplicablefor obsoleteitemswherenootherformofpaymentcanbeobtainedfortheasset. APDEshallnotdisposeofastrategicassetwithouttheconsentoftheMinisterof MOFPED.Astrategicassetmeansland,abuilding,aship,sharesandanyotherasset asmaybeprescribed,belongingtotheGovernment,situatedwithinoroutsideUganda.

ProcurementofConsultancyServices APDEshallprocureaconsultancyservicebypublishinganotice,invitingexpressionof interestforarequiredassignment. ThePDEshall,fromtheexpressionsreceivedinrespectofthenoticeprepareashortlist ofconsultants,whohavethecapacitytoperformtherequiredassignment. Notwithstandingtheabove,aPDEmayprocureconsultancyservicesusingashortlistof consultantsdeveloped FromtheregisterofprovidersoftheAuthority; Ontherecommendationofacompetentauthority; UsingtheprequalifiedlistofthePDE;orusingtheprequalifiedlistofanother PDE. LimitationoncontractswithmembersofaPDE APDEshallnotenterintocontractwith AmemberoftheContractsandDisposalCommitteeoroftheevaluation committee,amemberoftheBoardsofSurveyoranemployeeofthePDE; ApersonappointedtopoliticallyoradministrativelycontrolthePDE,includinga Minister,theaccountingofficeroramemberofthegoverningbodyofthePDE; and Acompany,whereaprohibitedpersonspecifiedabovehasacontrolling interest. SuspensionofProviders PPDAtosuspendaproviderontherecommendationofPDEorafterinvestigationsonitsown initiativewhere TheproviderbreachesthePPDAActortheCodeofEthicsofproviders; Theproviderisdebarredfromtheprocurementprocessesofaninternationalagencyof whichUgandaisamember; AfterinvestigationsbytheAuditorGeneraltheproviderisfoundtohavearecordof unsatisfactoryperformance;

Theproviderfailstoperformitsobligationsunderthecontractsubstantially Theproviderissuspendedbyaprofessionalbodyforprofessionalmisconduct. Theproviderisfoundtohavefaultedonitsobligationsunderthelaw. TheproviderisconvictedofacorruptpracticeorafraudulentpracticeunderthisAct. EstablishmentofPPDATribunal PPDAAppealsTribunaltoreviewPPDAdecisionswhere: AbidderisaggrievedbyadecisionmadebytheAuthority AbidderallegesthattheAuthorityhasaconflictofinterestinrespectofa matterbeforetheAuthorityandwhobelievesthatthemattercannotbe handledimpartiallybytheAuthority. APDEoranypersonsrightsareadverselyaffectedbyadecisionmadebythe Authority TheBillProvidestimeframesforAdministrativereviewatAO(15wkgdays),PPDA (21wkgdays)andtheTribunal(10wkgdays) PowersoftheTribunal SuspendanyactionbytheconcernedPDE,untiltheTribunalmakesadecisionon thematter; DirectthePDE,withrespecttoanythingtobedoneorredoneinthe procurementordisposalprocess; Orderthattheprocurementordisposalprocessbeterminated; DirectthePDEtocancelthecontractofthebidderwheretheTribunal establishesthatabidderisinvolvedinafraudulentpractice; Requirethepaymentofcompensationforanycosts,reasonablyincurredbythe bidderwhoisapartytotheproceedings,asaresultofanunlawfulactor decisionofthePDEoroftheAuthority;and MayinrespectofadecisionoftheAuthority,affirmit,varyitorsetitasideand makeadecisioninsubstitutionforthedecisionsetasideorreferthematterback totheAuthorityforreconsiderationinaccordancewithanydirectionsor recommendations.

ForceAccountMechanism ForceaccountmechanismmeansundertakingtheworksofaPDEentityusingthe personnelandequipmentofthePDEorofanotherPDE. WhereaPDEusestheforceaccountmechanism Thesuppliestobeusedfortheassignmentshallbeprocuredinaccordancewith thePPDAAct;and ThePDEshalldeterminethatthedirect,indirectandoverheadcoststobe incurredarelessthanwouldbeincurrediftheassignmentwasexecutedbya contractor.However,thisconditionwillnotapplywherethereisanemergency situationorwherenocontractoriswillingtoexecutetheassignment. AOstoensurethattheworksunderforceaccountareexecutedinaccordancewith applicabletechnicalstandards,supervisedbyaqualifiedsupervisorandthatrecordsof theequipmentandsuppliesarekeptinaccordancewiththePFAAAct Otherissuesamended AOstoensurebeforetheysignacontract,thecontractpriceiswithinthemarketrate; Theevaluationprocessistoberestrictedtoaspecificperiod(no.ofdaystobeputin theRegs); Procurementofcertaindrugsandmedicalitemsistobedoneunderspecialregulations; ThereisgoingtobecreatedaspecialCCtoprocureclassifiedprocurementsunderMOD andotherNationalSecurityOrgans