No.

5 Public Procurement (Amendment) Act 2016

1
ISSN0856 – 0331X

THE UNITED REPUBLIC OF TANZANIA

ACT SUPPLEMENT
No. 5 8th July, 2016
to the Gazette of the United Republic of Tanzania No. 28 Vol. 97 dated 08th July, 2016
Printed by the Government Printer Dar es Salaam by Order of Government

THE PUBLIC PROCUREMENT (AMENDMENT) ACT, 2016

ARRANGEMENT OF SECTIONS

Section Title

PART I
PRELIMINARY PROVISIONS

1. Construction.

PART II
GENERAL AMENDMENTS

2. Amendment of section 3.
3. Addition of section 4A.
4. Amendment of section 6.
5. Amendment of section 9.
6. Amendment of section 10.
7. Amendment of section 18.
8. Amendment of section 20.
9. Amendment of section 23.
10. Amendment of section 25.
11. Amendment of section 35.
12. Amendment of section 36.
13. Amendment of Part V.
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No. 5 Public Procurement (Amendment) Act 2016

14. Repeal of section 47.

15. Amendment of section 50.
16. Addition of sections 55A, 55B, 55C, 55D and 55E.
17. Amendment of section 59.
18. Amendment of section 60.
19. Addition of section 60A.
20. Amendment of section 63.
21. Amendment of section 64.
22. Amendment of section 65.
23. Addition of sections 65A and 65B.
24. Addition of section 67A.
25. Amendment of section 73
26. Amendment of section 76.
27. Amendment of section 77.
28. Amendment of section 83.
29. Amendment of section 88.
30. Amendment of section 89.
31. Amendment of section 91.
32. Amendment of section 93.
33. Amendment of section 95.
34. Amendment of section 96.
35. Amendment of section 97.
36. Amendment of section 99.
37. Amendment of section 101.
38. Amendment of section 105.
39. Amendment of the Second Schedule.
40. Amendment of the Third Schedule.

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No. 5 Public Procurement (Amendment) Act 2016

THE UNITED REPUBLIC OF TANZANIA

NO. 5 OF 2016
I ASSENT,

JOHN POMBE JOSEPH MAGUFULI

President

[ 7 th July, 2016 ]

An Act to amend the Public Procurement Act with a view to enabling

efficiency in regulating procurement processes, to ensure value for
money in public procurement and to provide for other related
matters.

ENACTED by Parliament of the United Republic of Tanzania

PART I
PRELIMINARY PROVISIONS

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

Cap. 410 (Amendment) Act, 2016 and shall be read as one with the Public
Procurement Act, hereinafter referred to as the “principal Act”.

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No. 5 Public Procurement (Amendment) Act 2016

PART II
GENERAL AMENDMENTS

Amendment 2. Section 3 of the principal Act is amended-

of section 3 (a) by deleting the definition of the term “defence and
national security organs” and substituting for it the
following:
“defence and national security organs” has the
meaning ascribed to it under the National
Cap .47 Security Council Act;”
(b) in the definition of the word “procurement”, by
deleting the words “preparation and award of
contracts” and substituting for them the words
“preparation, award and management of contracts”;
(c) by inserting in its appropriate alphabetical order, the
following new definition:
“ “value for money” means the maximum benefit from
goods, works or services procured with the
resources available worth the cost incurred;”
(d) inserting immediately after paragraph (d) the
following:
“ “local firm” means a firm whose majority share
capital is owned by citizens of the United
Republic”
(e) inserting immediately after the proposed new
definition “local firm” the following definition:
“life-saving health commodities” includes
medicines, medical devices and health supplies
that effectively address leading avoidable causes of
death during pregnancy, childbirth and childhood as
may be modified from time to time by the Minister in
consultation with the Minister responsible for health
by order published in the Gazette”

Addition of 3. The principal Act is amended by adding immediately after

section 4A section 4, a new section 4A as follows:-

“General 4A.-(1) All public procurement and

principles disposal by tender shall be conducted in
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No. 5 Public Procurement (Amendment) Act 2016

and accordance with the basic principles set out

standards in this Act.
of
procureme (2) Subject to this Act, all
nt and procurement and disposal shall be
disposal by conducted in a manner that maximizes
tender integrity, competition, accountability,
economy, efficiency, transparency and
achieves value for money.
(3) Procuring entities shall, in the
execution of their duties, undertake 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 regards to prescribed
specifications and criteria.”

4. The principal Act is amended in section 6(2) by

Amendment inserting immediately after the word “procurement” appearing in
of section 6
paragraph (d) the word “policy”.

Amendment 5. The principal Act is amended in section 9(1) by-

of section 9 (a) deleting paragraph (d) and substituting for it the
following-
“(d) in collaboration with the Attorney General’s
Chambers and professional bodies, prepare,
update and issue authorized versions of the
standardized tendering documents, procedural
forms and any other documents to procuring
entities;”
(b) adding immediately after paragraph (m), the
following new paragraphs-
“(n) build capacity to stakeholders engaged in public
procurement issues;
obtain price information for standardized common
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No. 5 Public Procurement (Amendment) Act 2016

(o) use items and services from relevant public bodies

with a view to ensuring that the prices conform
with the prevailing market prices.”
(c) renaming paragraphs (n) and (o) as paragraphs (p) and
(q) respectively.

Amendment 6. The principal Act is amended in section 10 by adding

of section 10 immediately after subsection (2) the following new subsection-
“(3) During the conduct of investigation,
the Authority may order the suspension of
proceedings or implementation of any matter
under investigation”.

Amendment 7. The principal Act is amended in section 18(1) by

of section 18 deleting the word “tenderers” appearing in paragraph (e).

Amendment 8. The principal Act is amended in section 20(1) by

of section 20 deleting the words “entities, not of Government” appearing in the
fourth line of paragraph (a) and substituting for them the words
“non-Government entities”.

Amendment 9. The principal Act is amended in section 23 by deleting

of section 23 subsection (2) and substituting for it the following-
“(2) The Chief Executive Officer shall be
appointed from amongst professionals with at
least ten years experience in either engineering,
architecture, law, procurement and supplies
management, quantity surveying, business
administration, economic development planning
or in any other related field, and shall have
academic qualifications and experience in such
fields including proven record of procurement
experience.”

Amendment 10. The principal Act is amended in section 25 by

of section 25 deleting subsection (5).

Amendment 11. The principal Act is amended in section 35 by:-

of section 35 (a) deleting subsections (3), (4) and (5); and
(b) renumbering subsection (6) as subsection (3).
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No. 5 Public Procurement (Amendment) Act 2016

Amendment 12. The principal Act is amended in section 36(l) by-

of section 36 (a) deleting paragraph (l) and substituting for it the
following:-
“(l) submitting to the Authority details of
procurement contracts awarded and annual
procurement plan for the next financial year.”
(b) adding immediately after paragraph (m), a new
paragraph (n) as follows:
“(n) save for areas where there is no electronic
infrastructure, ensure that all procurement
information is promptly posted
electronically; and”
(c) renaming paragraph (n) as paragraph (o).

Amendment 13. The principal Act is amended by deleting the title to

of Part V and substitute for it the following:
Part V
“SPECIFIC PRINCIPLES OF PUBLIC
PROCUREMENT”

Repeal of 14. The principal Act is amended by repealing section 47.

section 47

Amendment 15. The principal Act is amended in section 50 by-

of section 50 (a) deleting the words “closed or” appearing in
subsection (1);
(b) deleting subsection (3) and substituting for it the
following:-
“(3) For the purpose of this section,
“open framework agreement” means an
agreement containing specified terms and
conditions but does not contain agreed price.”

Addition of 16. The principal Act is amended by adding immediately

sections 55A, after section 55, the following new sections-
55B, 55C
“Inclusion of 55A.-(1) Foreign firms
,55D and
local firms competing to be awarded non-
55E
and experts
in emergency consultancy assignments
consultancy whether by tender or any other means
contracts recognized in this Act shall be required
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No. 5 Public Procurement (Amendment) Act 2016

to include local experts and firms in

their teams .
(2) In the evaluation of foreign
firms procuring entities shall ensure
that the principle of mandatory
inclusion of local experts and local
firms in non-emergency assignments
has been observed and shall be
apportioned a weight to reflect its
intensity and level.
(3) A procuring entity shall, for
the purpose of subsection (1), assign
weights as follows:
(a) in the criteria for
participation of local firms,
assignment of maximum
weight of fifteen percent
shall be included in the
request for proposal, and
firms that demonstrate
inclusion of local firms of
at least fifty percent are
granted a full score; and

(b) in the criteria for

participation of national
experts, assignment of
maximum weight of ten
percent shall be included in
the request for proposal,
and firms that demonstrate
that at least fifty percent of
their key staff who are
Tanzanians are granted a
full score.

Use of local 55B. When applying the

experts in margin of preference in respect of
goods, works
and non- works or non-consultancy
consultancy services, a procuring entity shall
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No. 5 Public Procurement (Amendment) Act 2016

services comply with the guidelines issued

contract by the Authority, and shall
consider-
(a) in addition to
shareholding structure
in the joint venture,
the extent of inclusion
of
key local staff in the
joint venture;
(b) the extent of use of
materials locally
manufactured,
produced or mined.

Preference to 55C. In contracts for

local goods goods and related services to be
awarded on the basis of
international competitive tendering
or national competitive tendering,
procuring entities shall grant a
margin of preference of up to
fifteen percent to domestically
manufactured or produced goods
and related services as prescribed
in the Regulations.

Capacity 55D.-(1) A procuring

building of entity shall, after consultation with
local firms
relevant statutory bodies, set aside
contracts to be used for the
purpose of capacity building of
local firms.
(2) Where
individual firms lack the capacity
to execute the contracts, the firms
may form joint ventures with a
view to enhancing their capacity.
(3) The Minister may
make Regulations prescribing
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No. 5 Public Procurement (Amendment) Act 2016

procedures for capacity building of

local firms under this section.”
55E. Notwithstanding any
other provision to the contrary,
local firm under section 55A, 55B,
55C and 55B shall have a share
capital which is wholly owned by
citizens of the United Republic”

Amendment 17. The principal Act is amended in section 59 by deleting

of section 59 subsection (6).

Amendment 18. Section 60 of the principal Act is amended-

of section 60
(a) in subsection (3), by deleting the word “fourteen”
appearing in the fourth line and substituting for it the
word “seven working”;
(b) subsection (11), by deleting the words “when a
written acceptance of a tender is communicated to the
successful tenderer” and substituting for them the
words “when the formal contract is signed by parties
to the contract”

Addition of 19. The principal Act is amended by adding immediately after

section 60A section 60, a new section 60A as follows:
“Witnessing of 60A.-(1) Witnessing of
contract signing signing of a contract shall be
done in accordance with the
law or any other relevant
legal instrument which
establishes the procuring
entity concerned.
Cap. 12 (2) Where the law or a legal
instrument does not provide
for the manner of witnessing
the signing of contracts, any
person enumerated under the
Notaries Public and
Commissioner for Oaths Act
shall be eligible to witness the
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No. 5 Public Procurement (Amendment) Act 2016

signing of contracts.”

Amendment 20. The principal Act is amended by deleting section 63 and

of section 63 substituting for it the following:

“e-procurement 63. Procuring entities shall ensure

that procurement or disposal by
tender is implemented and
reported through electronic
procedures or manually where
electronic facility is not available.”

Amendment 21. Section 64 of the principal Act is amended-

of section 64 (a) in subsection (2), by:-
(i) adding the words “including special groups”
at the end of paragraph (c); and
(ii) deleting the closing phrase and substituting
for it the following:
“the procuring entity shall set
aside a specific percentage of the
procurement volume in accordance with
the procedures set out in the
Regulations”.
(b) in sub-section (3) by adding the following new
paragraph-
“(c) “special groups” includes women, youth,
elderly and persons with disability”.”
(c) by adding immediately after subsection (4) the
following new subsections:
“(5) The use of force account may be justified
where:
(a) the works are small, scattered and in
remote location for which qualified
construction firms are unlikely to tender
at a reasonable prices;
(b) work is required to be carried out without
disrupting ongoing operations;
(c) there is an emergency that needs
immediate attention.

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No. 5 Public Procurement (Amendment) Act 2016

(6) For the purposes of subsection(5), “force

account” means a process where works are
carried out by a public or semi public
departments or agencies by using its personnel
and equipment or in collaboration with any other
public or private entity.”

Amendment 22. Section 65 of the principal Act is amended-

of section 65 (a) in subsection (1), by deleting the word “urgent” and
substituting for it the word “emergency”;
(b) in subsection (2), by deleting the word “urgent”
appearing in paragraph (a) and (b) and substituting
for it the word “emergency”
(c) by deleting subsections (3) and (4);
(d) by renumbering subsections (5) to (8) as subsections
(3) to (6) respectively; and
(e) in subsection (5) as renumbered by changing the
reference to subsection (8) as reference to subsection
(6).

Addition of 23. The principal Act is amended by adding immediately after

sections 65A section 65 the following new sections-
and 65B
“Procureme 65A.-(1) A procuring entity
nt directly or the Agency shall, for the purpose
from manu-
facturer, of obtaining value for money in
dealers or terms of price, quality and delivery,
service procure goods or services directly
providers from a manufacturer, dealer,
wholesaler or service provider.
(2) The Minister may make
Regulations prescribing:-
(a) goods and services to be
procured in terms of
subsection (1);
(b) the manner and
procedures of
procurement directly
from manufacturer,
dealer, wholesaler or
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No. 5 Public Procurement (Amendment) Act 2016

service provider.

Approved 65B.-(1) Procurement of

procurement goods for Government use shall be
Standards
done in conformity with established
and approved standards.
(2) Approved standards
referred under subsection (1) shall
be-
(a) issued by relevant
Government organs
specified in Regulations
made under this Act;
and
(b) in the manner and
procedure prescribed in
the Regulations made
under this Act.
(3) Notwithstanding
subsection (1), the Minister may
make Regulations for procurement
of certain goods for Government use
without approved procurement
standards.”

Addition of 24. The principal Act is amended by adding immediately after

section 67A
section 67 the following new section:-

“Lifesaving health 67A.-(1) Life-saving health

commodities commodities, supplies and equipment shall be
treated as items of public interest in their
procurement.
(2) The procuring entity shall, in
consideration of their importance and nature,
by approval of the Minister, fast-track their
procurement process or use emergency
procurement.
(3) Where the procurement referred to
under subsection (1) is to be done under
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No. 5 Public Procurement (Amendment) Act 2016

emergency procurement, the procedure

stipulated under section 65 shall, with
necessary modifications, apply.”

Amendment 25. The principal Act is amended in section 73(5) by-

of section 73 (a) deleting the words “Subject to the provisions of
section 60(3), after” and substituting for them the
word “After”; and
(b) deleting the word “e-examination” and substituting
for it the word “examination”.

Amendment 26. The principal Act is amended in section 76(2) by-

of section 76 (a) deleting paragraphs (c) and (d);
(b) renaming paragraph (e) as paragraph (c).

Amendment 27. The principal Act is amended in section 77(1) by deleting the
of section 77 word “is” appearing in paragraph (b).

Amendment 28. Section 83 of the principal Act is amended by:-

of section 83 (a) deleting subsections (2), (3) and (4) and substituting
for them the following-
“(2) Where a procuring entity is satisfied,
after due diligence, that any person or firm to
which it is proposed that a tender be awarded, has
engaged in fraudulent, collusive, coercive or
obstructive practices in competing for the
contract in question, the procuring entity shall-
(a) reject a proposal for award of such
contract; and
(b) report any person or tenderer,
including its directors to the
Authority for debarment and
blacklisting in accordance with
section 62 of the Act.
(3) Where a procuring entity is satisfied
after determination by a court or Appeals
Authority, as the case may be, that corrupt,
fraudulent, collusive, coercive or obstructive
practices were engaged in by any person or
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No. 5 Public Procurement (Amendment) Act 2016

tenderer in procurement, award of contract or the

execution of that contract, the procuring entity
shall-
(a) report any person or tenderer,
including its directors, to the
Authority for debarment and
blacklisting in accordance with
section 62 of the Act;
(b) require such person or tenderer to
reimburse the portion of disbursed
funds and cancel the portion of
undisbursed funds to a contract for
goods, works or services.

(4) Save as provided in this Act, the

Authority shall debar and blacklist such person or
tenderer determined in terms of subsection (3)(a)
including its directors, for the period of not less
than ten years.
(5) The determination by court under sub
section (3) shall be sufficient proof for the
Authority to debar and blacklist such a person or
tenderer, including its directors.”
(b) renumbering subsections (5) and (6) as subsections
(6) and (7) respectively.

Amendment 29. The principal Act is amended in section 88 by-

of section 88 (a) deleting subsection (4); and
(b) renumbering subsections (5), (6) and (7) as
subsections (4), (5) and (6) respectively.

Amendment 30. Section 89(3) of the principal Act is amended-

of section 89 (a) by deleting the opening phrase and substituting for it
the following-
“(3) The Executive Secretary shall be
responsible for:”
(b) by deleting the word “control” appearing in paragraph
(c) and substituting for it the word “management.”

Amendment 31. The principal Act is amended in section 91 by deleting

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No. 5 Public Procurement (Amendment) Act 2016

of section 91 subsection (3).

Amendment 32. Section 93 of the principal Act is amended-

of section 93 (a) in subsection (1), by deleting the words “Members of
the Appeals Board” and substituting for them the
words “Permanent Secretary of the Ministry
responsible for finance”;
(b) in subsection (2), by deleting the words “Members of
the Appeals Authority” and substituting for them the
words “Permanent Secretary of the Ministry
responsible for finance”;
(c) in subsection (3), by deleting the words “Members of
the Appeals Authority” and substituting for them the
words “Permanent Secretary of the Ministry
responsible for finance”;

Amendment 33. The principal Act is amended in section 95 by deleting

of section 95 subsection (3).

Amendment 34. Section 96 of the principal Act is amended-

of section 96 (a) in subsection (4) by deleting the words “twenty
eighty days” and substituting for them the words
“seven working days”
(b) in subsection (6) by deleting the word “fourteen” and
substituting for it the word “seven working”

Amendment 35. Section 97 of the principal Act is amended-

of section 97 (a) in subsection (2), by deleting the closing phrase and
substituting for it the following closing phrase-
“the tenderer may make a complaint to
the Appeals Authority within seven working days
from the date of communication of the decision
by the accounting officer or upon the expiry of
the period within which the accounting officer
ought to have made a decision.”
(b) in subsection (3), by deleting the word “fourteen”
appearing in the fifth line and substituting for it the
word “seven working”;
(c) in subsection (5), by adding immediately after
paragraph (f) the following new paragraphs:
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No. 5 Public Procurement (Amendment) Act 2016

“(g) order payment of compensation to the

procuring entity for any reasonable cost
incurred by procuring entity in whose favor
a decision has been made by the Appeals
Authority;
(h) set aside, vary or confirm the decisions
made by the Authority to blacklist; or
(i) any other order or relief as it may deem fit
to grant.”
(d) by deleting subsection (8) and substituting for it the
following:-
“(8) The decision of the Appeals
Authority shall be binding on the parties to the
complaint or appeal and shall be enforceable in
the same manner as a decree or order of the
court”.

Amendment 36. Section 99 of the principal Act is amended by-

of section 99 (a) deleting subsections (1) and (2);
(b) renumbering subsections (3) and (4) as subsections
(1) and (2) respectively;
(c) in subsection (1) as renumbered-
(a) by inserting the words “made pursuant to
sections 96 and 97 after the words “Appeals
Authority”;
(b) by deleting the word “seven days” appearing
in the second line and substituting for them
the words “seven working days”

Amendment 37. Section 101 of the principal Act is amended-

of section (a) in subsection (2) by deleting paragraph (b) and
101
substituting for it the following-
“(b) in the case of an application by a procuring
entity or a tenderer who is a public
institution challenging the decision of the
Appeals Authority, the procuring entity
and tenderer shall state their positions to
the Attorney General immediately after
leave has been granted by the High Court.”
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No. 5 Public Procurement (Amendment) Act 2016

(b) in subsection (3) by deleting the words “in

accordance with Order XXXIV of the Civil Procedure
Code” appearing at the end of that subsection.
Amendment 38. The principal Act is amended in section 105(2) by-
of section (a) inserting immediately after the word “aircrafts”
105
appearing in paragraph(d) the following:
“lifesaving health commodities”
(b) deleting the word “and” appearing in paragraph (w);
(c) adding immediately after paragraph (w) the following
new paragraphs:
“(x) procurement procedures for commercial
use by public bodies; and
(y) procedures for emergency procurement;”
(d) renaming paragraph (x) as paragraph (z).

Amendment 39. The principal Act is amended in the Second Schedule by-
of the Second (a) deleting the words “not less than once in a month, as
Schedule
the Chairman may determine.” appearing at the end
of paragraph 5 and substituting for them the word
“quarterly:”; and
(b) adding immediately after paragraph 5 the following
proviso:-

“Provided that, the board may convene

an extra-ordinary meeting as the Chairman may
determine.”

Amendment 40. The principal Act is amended in the Third Schedule by-
of the Third (a) deleting paragraphs 3 and 8; and
Schedule
(b) renumbering paragraphs 9 and 10 as paragraphs 8 and
9 respectively.

Passed by the National Assembly on the 29th June, 2016.

THOMAS DIDIMU KASHILILAH

Clerk of the National Assembly

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