The purpose of the session is to explain to the participant the public procurement process and contract management.

1. THE PUBLIC PROCUREMENT
PROCESS AND CONTRACT
MANAGEMENT
Presented
by
Francis Nyeko
PROCUREMENT OFFICER
Muni University

2. PRESENTATION OUTLINE
 Learning Outcomes
 Introduction
 Institutional set up at Muni University
 Institutional framework

3. LEARNING OUTCOMES
Purpose:
 The purpose of the session is to explain to the participant the public
procurement process and contract management.
Objective:
 Participants will be able to understand public procurement process
and contract management including the following:
 the key principles of public procurement.
 the Institutional Framework for public procurement.
 the key activities in public procurement process.
 what should be observed or adhered to in each of the activities.
 the roles and responsibilities of the key stakeholders in the procurement
cycle.
 the various key stakeholders within the University relates to one another.

4. INTRODUCTION
Background:
 Muni University was established by an Act of Parliament
under the Statutory Instruments No. 31 of 2013.
 Mandate of Muni University:
a) to provide instruction to all students admitted to the
University and to make provision for the advancement,
transmission and preservation of knowledge, and to stimulate
intellectual life in Uganda;
b) to organize and conduct courses with particular emphasis on
nursing, information communication technology, medical and
science education and training;

5. INTRODUCTION
c) to conduct teaching, research, outreach activities,
examinations and award degrees, diplomas and
certificates;
d) to undertake the development and sustenance of research
and publication in line with community needs and
national development plans of Uganda; and
e) to disseminate knowledge and give equal opportunity of
acquiring higher education to all persons, including
persons with disabilities regardless of race, political
opinion or gender.

6. INTRODUCTION
 Vision:
• to be a model academic and professional University for
transformation and development.
 Mission:
• to provide quality education, generate knowledge,
promote innovation and community empowerment for
transformation.

7. INTRODUCTION
What is Procurement?
 It is the process of acquisition of goods, works and
services to satisfy the identified needs.
 The PPDA Act and Regulations (2003) defines it as
acquisition by purchase, rental, lease, hire purchase,
license, tenancy, franchise or any other contractual means
of any type of works, services, supplies or any
combination.

8. INTRODUCTION
 Public procurement is all procurement that is funded by
public funds, including the consolidated fund, any other
resources of public funds and any funds generated by a
procuring and disposing entity.

10. BASIC PRINCIPLES OF PROCUREMENT
 To achieve the objectives of the University, all
procurement shall be conducted in accordance with the
following principles :
• Non- discrimination & Fairness;
• Transparency;
• Accountability;
• Competition (open competitive bidding);
• Ensuring Value for Money;
• Economy and Efficiency;
• Confidentiality;
• Ethical Behaviour;

11. PRINCIPLES OF PROCUREMENT
 Non-discrimination – a bidder shall not be excluded from
participating in the procurement on the basis of nationality, race,
religion, gender, or any other criterion not related to qualification,
except to the extent provided for in the Act.
 Transparency, accountability and fairness: Transparency -
procurement process should be conducted in such a way that there is
openness and clarity on procurement policy and all interested
parties know and understand the actual procedures and processes
by which contracts are awarded and managed. A transparent
procurement system is the one that has clear regulations and
procedures, standardized bid documents, standardized contracts
and a fair process.

12. PRINCIPLES OF PROCUREMENT
 Accountability: the public officials who are dealing with
procurement activities have responsibilities and obligations for
performance and stewardship. A good procurement system should
have clear lines of responsibility in decision making and public
officials responsible for procurement should be made accountable
for their decisions.
 Fairness: an efficient procurement system should give all bidder an
equal chance to compete and by avoiding discrimination among
potential bidders. Potential suppliers should be treated equally and
with utmost fairness throughout the contract award process.
 Competition: all procurement shall be conducted in a manner to
maximise competition and achieve value for money. Procurement
should be carried out by competition unless there are convincing
reasons to the contrary. Procurement system should be able to
attract high quality national and international suppliers and
contractors capable of meeting University needs through
competitions.

13. PRINCIPLES OF PROCUREMENT
 Confidentiality: the University shall, upon written
request by any person, disclose information regarding
any procurement process.
 Economy and efficiency: all procurement shall be
conducted in a manner which promotes economy,
efficiency and value for money.
 Promotion of ethics: all procurement shall be carried out
in accordance with the Codes of Ethics.

14. INSTITUTIONAL SET UP IN THE
UNIVERSITY
 This constitutes:
 Accounting Officer
 Contracts Committee
 Procurement and Disposal Unit
 User Departments
 Evaluation Committee

15. INSTITUTIONAL FRAMEWORK
Accounting Officer
Contracts Committee
Procurement and Disposal
Unit
User A User B User C User D User E User F

16. ACCOUNTING OFFICER
 Accounting Officer is a person who controls and is
personally accountable to Parliament for the regularity
and propriety for all resources wholly funded through
the Consolidated fund.
 Accounting Officer is appointed by the Permanent
Secretary/Secretary to Treasury.
FUNCTIONS
 Responsible for successful execution of the procurement,
disposal and contract management processes in the
University.
 Establishes a Contracts Committee.
 Nominates the chairperson, secretary and members of
the Contracts Committee (PS/ST approve). After
approval appoints them.

17. ACCOUNTING OFFICER
 The powers to terminate, remove or substitute a member of the
Contracts Committee rests with the Accounting Officer.
 Accounting Officer to inform the PPDA of the composition and
qualifications of the members of the Contracts Committee not
later than 14 days from the date of appointment.
 Establishes a Procurement and Disposal Unit (Appointment
Board recruits the procurement staff) and informs the PPDA of
the membership and qualifications of the PDU staff within 10
working days.
 Commits funds to support a procurement or disposal activity.
 Communicates award decisions.
 Signs the awarded contract.
 Responsible for investigating complaints from providers and
issue a decision in writing within 15 working days.
 Ensures implementation of the contract as per terms of the
award.
 In case of termination of contract by the Contracts Committee,
Accounting Officer implements the decision.

18. CONTRACTS COMMITTEE MEMBERSHIP
 Five (5) members are nominated by the Accounting Officer.
 Approval of the members is by the Permanent Secretary/Secretary
to the Treasury.
 After approval the members are formally appointed by the
Accounting Officer.
 They include:
 Chairperson
 Secretary
 A maximum of three (3) other members – one of whom shall be a
Lawyer
 Three (3) members to form quorum.
 Members of Contracts Committee are appointed from among
serving public officers employed on a full time basis with the
University or appropriate external body.
 A person shall be a member of the Contracts Committee in his or her
individual capacity as distinct from his/her position or designation

19. CONTRACTS COMMITTEE MEMBERSHIP
 Accounting Officer to inform the PPDA of the composition and
qualifications of the members of the Contracts Committee not later
than 14 days from date of appointment.
 Appointment of Contracts Committee members to be based on
technical competence and skills to discharge the functions.
 All members of he Contracts Committee are voting members.
 Where a member cannot attend a meeting he/she shall not nominate
an alternative member or proxy.
 The power to terminate, remove or substitute a member of the
Contracts Committee rest with the Accounting Officer in line with
Regulation ……….
 The Accounting Officer, and a member of the PDU shall not be
appointed to the Contracts Committee.
 Contracts Committee members shall be in office for three (3) years
and can be re-appointed for only one further term.

20. CC FUNCTIONS/RESPONSIBILITIES
 Approving the Solicitation documents before they are issued
out/sold to the bidders.
 Approving of addenda to the solicitation/bidding documents.
 Approving the Bid Notice – procurement opportunities to be
advertised.
 Approving the Bid shortlist especially in the case of Request for
quotations /Proposal.
 Approving procurement and disposal procedures and methods e.g.
open bidding, restricted bidding, quotations, proposals, direct, and
micro procurement.
 Approving evaluation reports and recommendations.
 Participating in public and internal bid opening – at least one
member to be present.
 Submitting to the PPDA on a monthly basis a procurement and
disposal report.

21. CC FUNCTIONS/RESPONSIBILITIES
 Approving any amendments to the contracts.
 Approving choice of provider under direct procurement.
 Approving contract documents before they are issued out.
 Resolving disagreements between the user department, and the PDU
if any.
 Award contracts in accordance with the applicable procurement and
disposal procedures.
 Recommend for delegation of a procurement or disposal function by
the Accounting Officer, whenever need arises
 Approving membership of the Evaluation Committee.
 Approving membership and objectives of the negotiation team.
 Approving the outcome of any negotiations.
 Terminate contracts upon recommendation by the PDU and /or
users.
 Recommend suspension of providers to the PPDA.

22. POWERS OF THE CONTRACTS COMMITTEE
 Power to authorize the choice of procurement and
disposal procedure, solicitation documents before issue
to bidders, evaluation reports, contract documentation
and any amendments thereof.
 Power to recommend for delegation of procurement and
disposal function by the Accounting Officer.
 Power to award contracts.

23. PROCUREMENT AND DISPOSAL UNIT (PDU)
 This is a procurement and disposal department, staffed
by procurement professionals.
 The size of the PDU will depend on the volume, value
and complexity of procurements.
 Upon appointment, the PDU staff have to sign the Code
of Ethical Conduct in Business.

24. PDU FUNCTIONS
 Plan the procurement and disposal activities of the
University through the consolidation of the individual user
departments, individual procurement and disposal work
plans into master work plan.
 It manages the entire procurement process in the
University.
 It seeks approval from the Contracts Committee on
documentation, procedures, reports and recommendations
at various key stages in the procurement process.
 Support the functioning of the Contracts Committee by
making timely and accurate submissions.
 Implement decisions of the Contracts Committee.
 Recommend procurement and disposal procedures for each
requirement.

25. PDU FUNCTIONS
 Check statement of requirements (specifications) prepared
by the users and/or assist with their preparation.
 Prepare bidding documents – supplies, works, services
(consultancy and non-consultancy services).
 Prepare advertisements of bid opportunities.
 Issue bid clarifications in response to queries from the
bidders.
 Manage pre-bid meetings, bid closings and openings,
keeping bids in safe custody.
 Advise user departments on procurement and disposal
methods and practices.
 Issue approved contract documents – lumpsum, time-
based, framework, percentage based, cost reimbursable,
target price and retainer contract.

26. PDU FUNCTIONS
 Manage the evaluation process – recommending members of
Evaluation Committee and presenting evaluation report to
Contracts Committee.
 Maintain and archive records from the procurement process.
 Prepare monthly reports for the Contracts Committee – on
procurements, disposals and micro procurements.
 Co-ordinate all procurement activities of the University.
 Display procurement information on the public procurement notice
board e.g. a pre-qualification notice, bid notice, notice of shortlist,
bid opening record, notice of best evaluated bidder, notice of award
of contract, monthly reports of all micro procurement transaction,
notification of public auction, etc.
 Maintain a providers list as well as a pre-qualification list.
 Monitor contract management by User departments and produce
reports.
 Receive contract management reports from the User departments.

27. USER DEPARTMENTS
 User department – means any department,
division, branch, section or project unit of the
University which initiates procurement and
disposal requirements and is the user of the
requirements.

28. USER DEPARTMENTS FUNCTIONS
 Identifying departmental procurement needs.
 Provide technical input – by preparing a statement of requirements.
 Initiate procurement requirements using Form 5.
 Conducting technical evaluations – as a member of the Evaluation
Committee.
 Certify payments to the providers.
 Managing contracts through an appointed contracts manager.
 Report any departure from terms and conditions of an awarded contract
to Procurement and Disposal Unit.
 Forward details for any required contract amendments to PDU for
action.
 Maintain record of contract management.
 Prepare reports of contract management and submit them to the PDU.
 Prepare a work plan for procurement based on the approved budget.

29. EVALUATION COMMITTEE
 Members are:
 Recommended by the PDU and approved by the Contracts
Committee.
 At an appropriate level of seniority and experience.
 Membership is a minimum of three at all times.
 Conduct all evaluations of procurement and disposal.

30. MEMBERSHIP OF THE EVALUATION
COMMITTEE
 A membership of the Evaluation Committee can be
drawn from:
 A Procurement and Disposal Unit
 A User department
 Outside the PDE
 A member of the Contracts Committee cannot be a
member of the Evaluation Committee.

31. FUNCTIONS OF THE EVALUATION
COMMITTEE
 Ensure that the criteria stated in the solicitation
documents are met.
 Rank and weigh the criteria.
 In cases, where a merit point evaluation is used, give
points in regard to the different criteria mentioned in the
solicitation documents.
 Develop a scoring system for the sub criteria.
 Prepare an evaluation report, with a recommendation for
award and report to the Procurement and Disposal Unit.

32. EVALUATION COMMITTEE PROCEDURES
 All members of the Evaluation Committee have to sign
the Code of Ethical Conduct in Business i.e. Form 13.
 Members select a chairperson from among themselves.
 Evaluation Committee meeting can only be held when all
members are present.
 Minutes of all meetings to be signed by all members of
the Evaluation Committee.
 Evaluation is conducted jointly during meetings.
 Evaluation report to be signed by all members of the
Evaluation Committee.
 In case of a disagreement, the Evaluation Committee
members have to consult the PDU.

33. THE FUNCTIONS ACCOUNTING OFFICER
MAY DELEGATE
 Certifying availability of funds prior to start i.e.
committing funds prior to contract placement.
 Communicating award decisions.
 Ensuring that the implementation of the awarded
contract follows agreed contract terms and conditions.
 Implementation of the recommendations of the
authority.
 Certain procurement and disposal functions to:
 A sub-division of the University, a member of staff.
 A third party procurement or disposal provider.
 Note: Delegation has to be in writing and the
Accounting Officer remains fully accountable for all
decisions taken under delegated authority.

34. WHAT THE ACCOUNTING OFFICER CANNOT
DELEGATE
 Establishment of a Contracts Committee.
 Establishment of a PDU.
 Nomination and appointment of members of Contracts
Committee.
 Investigation of complaints by providers.
 Submission of the findings, from such complaints, to the
PPDA.

35. INDEPENDENCE & DELEGATION OF
FUNCTIONS
 In respect to their functions and powers, the AO, CC,
PDU, UDs and EC shall act independently ( Sec. 38 of the
PPDA Act).
 To maintain independence of functions, the AO shall not
delegate the AO’s function, as described above, to a
member of CC or any delegated CC or PDU.
 The AO can delegate out functions of the CC to another
body or person.

36. CONTRACT COMMITTEE FUNCTIONS NOT
TO BE DELEGATED
 Overall guidance on procurement and disposal
development within the University.
 Liaising directly with the Authority on matters within its
jurisdiction.
 Preparing any reports required for submission to the
Authority.
 Making recommendations to the AO in respect of
delegation of functions.

37. PDU FUNCTIONS NOT TO BE DELEGATED
 Advising the User departments o any individual procurement
method or procedure.
 Liaising directly with the Authority (PPDA) on matters within its
jurisdiction.
 Acting as procurement coordinator for the University.
 Planning the procurement of the University.
 Liaising with the Authority on the Authority’s register of providers.
 Monitoring contract management by User departments to ensure
implementation of the contract in accordance with terms and
conditions of the awarded contract.
 Reporting any significant departures from terms and conditions of
the awarded contract to the Accounting Officer.
 Preparing any reports required for submission to the Contracts
Committee or Accounting Officer.

38. In case of disagreement
 BETWEEN AN ACCOUNTING OFFICER AND A
CONTRACTS COMMITTEE
 The Accounting Officer returns the decision to the
Contracts committee for review, or
 The Accounting Officer request for an independent
review by the Authority.

39. DISAGREEMENT BETWEEN CONTRACTS
COMMITTEE AND PDU
 The Contracts Committee returns the submission to the
PDU for review.
 The Contracts Committee requests for an independent
review by the Accounting Officer or the Authority.

40. DISAGREEMENT BETWEEN USER
DEPARTMENT AND PDU
 This could be on application or interpretation of any
procurement method, process or practice. If so, then,
 The two parties may jointly consult with any two
members of the Contracts Committee for guidance.
 Either of the parties may bring the case to the full
Contracts Committee for a formal decision.

41. SUMMARY OF INSTITUTIONAL
FRAMEWORK
 Accounting Officer – responsible for all the procurement
and disposal activities.
 Contracts Committee – adjudicates and approves
contracts awards.
 Procurement and Disposal Unit – manages all the
procurement and disposal work of the University.
 User departments – initiates procurement and disposal,
provide technical input and manage the contracts.
 Evaluation Committee – Evaluates the bids.

42. ACTIVITY 1.1: PROCUREMENT
PRINCIPLES SCENARIOS
 Scenario 1
 Scenario 2
 Scenario 3
 Scenario 4

43. THE PUBLIC PROCUREMENT PROCESS
 The public procurement process begins with planning
and budgeting.
 There are a number of steps that are carried out by
various institutions within the University (PDE) which
concludes with the contract performance
evaluation/monitoring.
 This process is hereby presented in a summary of
conceptual framework:

44. ROLES & RESPONSIBILITIES IN THE PROCUREMENT CYCLE
• Determination that BEB price
does not exceed price
determined at commencement
of procurement process
• Determination of market price
• Sign Contract
Procurement
Plan and
Budget
1 Assessment
of Market
Price
2 Procurement
Requisitions
Filled with clear
specs/TOR/SOW
3
Confirmation of
Availability of
Funds
4
Review and Preparation of
Bidding Documents
Specifications/TOR/SOW
5
Approval of Procurement
method, Bidding
Documents & Evaluation
Committee
6
7 Advertising and
Invitations of Bids
Receipt and
Opening of
Bids
8
Evaluation
of Bids
9
• Review of Evaluation
report (approval or
rejection)
•Award of Contract
1o
Reassessment of market
price where the BEB’s price
is higher than the price
assessed at the
commencement of the
procurement
11
•Administrative Review
(where applicable)
12
Contract
Management
• Delivery
• Payment
13
User Departments
Procurement and Disposal Unit
Evaluation Committee (ADHOC)
Contracts Committee
Boards / Councils
Accounting Officer
PPDA
PPDA Tribunal
14
•Accounting Officer (15)
• PPDA (21 working days)
• PPDA Tribunal (10 days)
Contract
Monitoring
• Providers
Appraisal

45. STAGE 1. PROCUREMENT PLANNING
(Section 58 of the PPDA Act, 2003)
 This is a process of determining the procurement needs of an
University and the timing of their acquisition and their funding such
that the University’s operations are met as required in an efficient
way.
 The University must plan their procurements each year, so as to be
able to aggregate requirements into larger contracts, gain economies
of scale and avoid emergency procurements wherever possible. The
Government of Uganda has made procurement planning mandatory.
 Planning allows the entity to spread the procurement workload
according to its resources and also allows the entity to undertake
common procurement, where they are purchasing similar items.
 The annual procurement plans will be approved by the Contracts
Committee and the University Council together with the budget
estimates.
 Annual procurement planning are linked to the annual budgeting of
the University. Procurement plans therefore should be prepared
concurrently with the preparation of an annual budget in accordance
with the budgeting procedures for the University.

46. ROLES OF USER DEPARTMENTS:
 Shall, based on the approved budget of the
University, prepare user department procurement
plan and submit it to the procurement and disposal
unit.
ROLES OF PDU:
 Shall, using the procurement plans of the user
departments aggregates it all into an annual
procurement plan for the University.
UNIVERSITY COUNCIL/MoFPED:
 Boards /Councils and MoFPED are responsible for
the approval of the procurement plan and budget
estimates.

47. MINIMUM BIDDING PERIOD
(Excluding Administrative Review Period)
Method of
Procurement
Advertising Period Bidding Period Award Display
Period
Open Domestic
Bidding
N/A 20 10
Open International
Bidding
N/A 30 10
Restricted Domestic
Bidding
N/A 12 10
Restricted
International
Bidding
N/A 20 10
Request for
Quotations
N/A 5 5
Micro Procurement N/A N/A N/A
Direct Procurement N/A N/A 5

48. INDICATIVE LEAD TIME FRAME FOR
PROCUREMENT METHODS UNDER PPDA ACT
Key Procurement Activity ODB OIB RDB RIB RFQ
Initiation & approval of Form 5 3 3 3 3 3
Approval of Methods, SBD & Evaluation committee by CC 5 5 5 5 5
Advertising period - - - - -
Bidding period 20 30 12 20 5
Evaluation process 20 20
Approval of Evaluation report 5 5 5 5 5
Contract negotiations -where applicable 3 3 3 3 3
Approval of the contract by CC 3 3 3 3 3
Approval of contract by Solicitor General 10 10 10 10 10
Display of BEB 10 10 10 10 5
Contract signing/LPO 5 5 3 3 1
Minimum Estimated period (Excludes statutory time) 84 94 54 62 40
Maximum Estimated period (includes statutory time) 120 130 90 98 76

49. SIGNIFICANCE OF PROCUREMENT - LEAD
TIME IN PROCUREMENT PLANNING
 Total procurement time is determined by the length of
the procurement process i.e. how long the procurement
takes through all the stages of the procurement cycle.
 Total procurement Time (TPT) is determined by:
 Entity’s Administrative Time (EAT)
 Statutory Time (ST)
 Provider’s Performance (or delivery) Time (PPT)

50. DETERMINATION OF PROCUREMENT
METHODS
Threshold in UGX Procurement Method
For Supplies & Non-Consultancy
Services:
If the estimated value exceeds UGX 200
million
Open Domestic Bidding or Open
International Bidding
If the estimated value is greater than UGX
100 million but does not exceeds UGX 200
million
Restricted Domestic Bidding or Restricted
International Bidding
If the estimated value is greater than UGX
5 million but does not exceed UGX 100
million
Request for Quotations (RFQ)
If the estimated value does not exceeds
UGX 5 million
Micro Procurement

51. DETERMINATION OF PROCUREMENT
METHODS
Threshold in UGX Procurement Method
For procurement of Works:
If the estimated value exceeds UGX 500
million
Open Domestic Bidding or Open
International Bidding
If the estimated value is greater than UGX
200 million but does not exceeds UGX 500
million
Restricted Domestic Bidding or Restricted
International Bidding
If the estimated value is greater than UGX
10 million but does not exceed UGX 200
million
Request for Quotations (RFQ)
If the estimated value does not exceeds
UGX 10 million
Micro Procurement

52. FORMAT OF USER DEPARTMENT
PROCUREMENT PLAN
 Indicate the Area/Section/Department.
 Indicate the financial year.
 List the subject of procurements – supplies, works and
services.
 Required quantities and unit of measures.
 Estimated cost (UGX).
 Confirmed source of funding e.g. GOU, donor, etc
 Date when the goods/services/works are required.
 Name/Signatures/date the personnel prepared the plan.
 Submit completed form to Procurement and Disposal
Unit.

53. ACTIVITY 1.2: PREPARATION OF
PROCUREMENT PLAN SCENARIO
 Scenario 1

54. STAGE 2. REQUISITIONING/ INITIATION OF
PROCUREMENT
(Section 34(b) of the PPDA Act 2003)
 Kick –starts the implementation of the procurement plan, by the
users using Form 5.
 Clear specifications/scope of works/TOR to be attached.
 Aggregate procurement requirements sent to the Contracts
Committee e.g. approval of methods, solicitation documents,
shortlist, evaluation committee members.
 Ensure requisitions are made in accordance with the plan.
ROLES OF USER DEPARTMENTS:
 Requisitioning/Initiation of procurement requirements by filling
Form 5 or Form 18.
 Recommend statements of requirements to the PDU.
 Seeking approval of the procurement requirements by the
authorized official (HOD).

55. STAGE 3. CONFIRMATION OF AVAILABILITY
OF FUNDS
(Section 26(f) PPDA Act 2003)
 The availability of funds shall be evidenced by budget or
supplementary funds for the current financial year or an
allocation for subsequent year.
 Certifying the availability of funds shall be made by the
Accounting Officer or an officer authorized by the
Accounting Officer (Reg. 4(3) of the PPDA supplement
No.8).
 The authorized Form 5 or 18 will then be forwarded to
PDU for implementation.

56. STAGE 4. PREPARATION OF BIDDING
DOCUMENTS
(Section 31(i) of the PPDA Act)
o Procurement and Disposal Unit prepares and submits
bidding documents to Contracts Committee for approval
(together with the procurement methods and evaluation
committee).
o The bidding documents must contain instruction to
bidders, a statement of requirements with specifications
or terms of reference or statement of works and the terms
and conditions, etc.
ROLES OF USER DEPARTMENTS & PDU
 Involve in determining specifications/TORs/SOWs.
 Determining procurement methods to be used.
 Determining evaluation criteria.

57. STAGE 5. ADVERTISING AND
INVITATION OF BIDS
(Section 26(d) and 31(j)of the PPDA Act, 2003)
 The PDU shall prepare Advertisements of Bid
opportunities.
 The method for inviting bidders will vary, depending on
the procurement method used.
 For Open Bidding, the University will invite bidders to bid
by publication of a Bid Notice, so that the opportunity is
open to all interested bidders or through a pre-qualification.
Publication of a pre-qualification Notice and evaluation of
submissions to develop a shortlist of qualified bidders.
 For Restricted Bidding and quotations and proposal s
procurement, bidders will be invited from a shortlist.
Bidders to include on a shortlist can be identified from the
PPDA Register of Providers, Market knowledge, list of pre-
qualified providers of another entity.

58. CONT…
 For Direct Procurement, one bidder will be invited on a
single or sole source basis. Sole source refers to a
situation where only one possible bidder exists, such as
when a monopoly exists. But single source refers to
when one bidder is selected from among a number of
possible bidders, such as in an emergency situation when
there is insufficient time for competition.
 For Micro Procurement, the item will be purchased
directly from a single provider and no written bid will be
required.
 The PDU shall issue/sale bidding documents to
interested bidders and record the issue on Form 8 or 20.
 The PDU shall organize pre-Bid meeting, providing
minutes, providing bid clarification and correspondence
between the University and bidders and the PPDA.

59. STAGE 6. RECEIPT AND OPENING OF
BIDS
(Reg. 58 & 65 of the PPDA (Rules & Methods) Regs. 2014)
 PDU shall be responsible for receiving bids and opening
of bids and maintain records on Forms 11, 12.
 There are two methods of receiving bids and the choice
of method is at the discretion of the University i.e. use of
a bid box should be encouraged.
 Bids received shall be opened in the presence of bidders
or their representatives who choose to attend.
 Relevant information are read out and late bids to be
rejected.

60. STAGE 7. EVALUATION OF BIDS
(Section 37 of the PPDA Act 2003)
 Evaluation is the process by which the best evaluated
bidder is selected for award of contract from among all
the bids received.
 Evaluation of bids is the responsibility of the Evaluation
Committee. The minimum number must be at least three
staff selected from members of user department, and
approved by the Contracts Committee.
 Evaluation team must have relevant skills and able to
manage time for evaluation for transparency.
 Post-qualification can be conducted as a verification
exercise to confirm the capability of the Best Evaluated
Bidder.

61. STAGE 8. REVIEW OF EVALUATION
REPORT AND AWARD DECISION (Section 29(c) of
the PPDA Act 2003)
 The Contracts Committee shall review technical,
financial or combined evaluation report, and approve or
reject the proposal.
 Following an award decision by the Contracts
Committee., the PDU shall prepare and display a Notice
of Best Evaluated Bidder within statutory time, before
placing a contract. The notice must also be sent to all
bidders.
 The notice must be published for a period of 10 working
days under Open and Restricted Bidding and a
minimum of 5 working days under Quotations and
proposals Procurement or Direct Procurement. No
notice is required under Micro procurement and where
there is an emergency situation.

62. CONT….
 The notice and display period is intended to give bidders
a chance to appeal before a contract is formed, if they
believe the Regulations have been breached. Where an
appeal is received under the administrative review
procedure, the University must not place a contract until
the review process has been completed.
 Approval of all relevant agencies like Officer of the
Solicitor General to be done for all contracts above UGX
50 million as per Statutory Instrument No. 10 of 12th
March 1999.

63. STAGE 9. AWARD OF CONTRACT
(Section 29(C) of the PPDA Act)
 Following the Contracts Committee’s award decision,
and the expiry of display period of the Notice of Best
Evaluated Bidder, and the approval of contract by
Solicitor General, a contract may be awarded.
 The contract should normally be awarded by means of
either: a Letter of Bid Acceptance, which is later
confirmed by a full written contract document or a
contract document which includes an LPO.

64. STAGE 10. CONTRACTS SIGNING
 The Accounting Officer shall be responsible for signing
contracts for procurement or disposal activities on behalf
of the University.
 Communicating award decisions, letters of bid
acceptance.
 Conducting administrative review where complaints
arises.

65. STAGE 11. CONTRACT MANAGEMENT
 Once a contract has been placed/signed, it must be managed to
ensure that the provider performs in accordance with the terms and
conditions of the contract and that the University meets all its
obligations under the contract.
 Receipts and inspection of goods/works/services/procured. The
User Department shall undertake conformity assessments during
delivery (Section 35(c) of the PPDA Act).
 Nominates contract manager and monitor progress and execution of
contract. A User Department shall nominate an existing member of
staff with appropriate skills and experience a Contract Manager
(Reg. 52(1) of the PPDA (Contracts) Reg. 2014).
 A contract of high value or which is complex or form part of a larger
project, may be assigned to a contract management team (Reg. 52(2)).
 The User Department shall be responsible for Certifying invoices for
payments to providers (Section 35(e) of the PPDA Act) and Arrange
for payments to providers (Section 34(1)(f)).

66. CONT….
 Manages day-to-day technical supervision, managing
obligations and ensuring provider performs contract.
 Seek authority for extensions, variations, suspension,
performance certification etc to the Contracts Committee
in writing.
 Issue certificates for contract performance.

67. FACTORS CONSIDERED IN SELECTING
CONTRACT TYPE
 The nature of the Procurement requirement.
 The need to minimise risk for a entity.
 The need to maximise value for money for a entity.
 The need for effective contracts management and cost
control.
 The likelihood of any delays or unforeseen circumstances
requiring contract extensions, or variation of change of
orders (institutional requirements).
 etc

68. TYPES OF CONTRACTS
 Lump sum contract – suitable for contracts where the
content, duration and outputs of procurement are well
defined. Payment is linked to clearly specified outputs
or deliverables.
 Time based contract – used where the scope and
duration of procurement requirements is difficult to
define. Payment is based on agreed hourly, daily,
weekly or monthly fee and reimbursable items are paid
actual expense or agreed unit price.
 Ad measurement contract – this means re-measurement
of unit rate, or bill of quantities, and is used for works
where difficulties or unforeseen site conditions, such as
hidden foundation problems are likely to occur.

69. CONT…
 Framework Contracts – This means a schedule of rates or
an indefinite delivery contract and is suitable for
requirements which are needed repeatedly. The price is
agreed for a given period of time.
 Percentage Based Contract – This contract is used where
it is appropriate to relate the fee paid directly to the
estimated or actual cost of the subject of the contract.
This may be based on a fixed target cost, minimum or
maximum fees or sliding scales of fees related to the
value of the subject matter.
 Cost Reimbursable Contract – mainly used for
emergency work, where there is insufficient time to
calculate the costs involved or for very high risk works
where it is economical to avoid price variations.

70. CONT…
 Target price Contract – This may be used instead of cost
reimbursable where a target price can be agreed in
advance and cost saving is achieved. The actual cost of
the works is paid for as evidenced by the appropriate
documentations, like receipts.
 Retainer Contracts – This is where the provider is
retained to provide a service over a prescribe period of
time, whose payment may be a flat fee, without defining
the level and amount of services required.
 Contingency or Success fee Contract – This is where
payment is linked to the successful completion of a target
or event. The amount is pre-agreed and is normally a flat
rate or a percentage of a predetermined amount.

71. STAGE 12. CONTRACT PERFORMANCE
AND MONITORING
 Contract performance evaluation and monitoring (i.e.
providers appraisal) is the responsibility of both User
Department and PDU.
 Check on compliance to quantity, quality, delivery
period, monitoring progress of work to ensure
milestones agreed are achieved and performance of
contract review meetings – to review contract
performance and identify the control action that is to be
taken to correct any deviations from the contract plan.

72. END OF
PUBLIC PROCUREMENT PROCESS
SESSION TWO
CONTRACT MANAGEMENT

73. LEARNING OBJECTIVES
At the end of the session participants should be able to:
 Identify and list the roles and responsibilities of the key
stakeholders in Contracts Management framework.
 Describe the techniques used in contract cost control and
management.
 Identify and list the main contents of a contract
management plan.
 Identify and list the challenges in contract management.

74. CONTRACT MANAGEMENT
Definition of Contracts Management
Is the process which ensures that both
parties to a contract fully meet their
respective obligations in order to
efficiently and effectively deliver the
objectives required from either party in the
contract.

75. CONTRACT MANAGEMENT
STRUCTURE
 Contracts management is the responsibility of the user
department.
 Contract management is passed to the user department
by Accounting Officer.
 The user department identify contract manager with
appropriate skills and experience.
 Contract manager becomes responsible for contract
management and should be availed a copy of the
contract.

76. KEY STAKEHOLDERS IN CONTRACT
MANAGEMENT AND MONITORING
 User Department
 Provider/Contractor
 Procurement and disposal Unit (PDU)
 Management of the University.
 University Council

77. ROLES AND RESPONSIBILITIES OF THE KEY
STAKEHOLDERS
1. USER DEPARTMENT
 Controlling performance of provider.
 Nominates contract manager and monitor progress and
execution of contract.
 Informs Accounting Officer in writing of appointed manager
copy Internal Auditor, Contracts Committee and any other.
 May nominate a member of staff of another user department
or outside the University.
 May use contract management teams for high value or
complex projects.

78. CONT…
2. CONTRACTS MANAGER
 Manages day-to-day technical supervision, managing obligations and
ensuring provider performs contract.
 Inspection and testing of components.
 Seek authority for extensions, variations, suspension, performance
certification etc to the C0ntracts Committee in writing.
 Issue certificates for contract performance.
 Meets performance/delivery obligations.
 Submits required documentation.
 Adequate cost, quality and time control
 Provider complies with the PPDA Act.
 Management records kept and archived
 Issue variations and change orders.
 Proposal to amend the contract
 Proposal to terminate contract
 Reports on progress or completion of contract
 Manage hand over and acceptance procedure

79. CONT…
3. BIDDER/CONTRACTOR
 Deliver requirements of the contract in agreed time frame.
 Decides how to provide service
 Deliver service to TOR
 Delivering goods to specification
 Meeting user requirements
 Developing and implementing agreed procedures and
providing information.

80. CONT….
4. PDU
 Monitoring payments to the provider.
 Monitoring progress of work to ensure milestones agreed are
achieved.
 Submitting reports to Contracts Committee, Accounting
Officer.
 Assessing quality and Cost of service.
 Assessing timeliness of service.
 Supervising and evaluation of contracts

81. CONT…
5. MANAGEMENT OF THE UNIVERSITY
 Approving the need for the service (contract management).
 Approving the contract management budget.
 Processing payments to provider
 Ensure that overall implementation of the contract is done.

82. CONT…
6. UNIVERSITY COUNCIL
 Approving University policies.
 Approving Budget and Procurement plan.
 Monitoring implementation of programmes
 Evaluating performance against approved work plans and
procurement plan.
 Communicating anomalies to technical staff.

83. PROCUREMENT ACTION FILE
The documentation which must be availed in this file in
regards to contract management are:
 Copy of request/specifications from provider.
 Copies of delivery schedules
 Copies of delivery certification.
 Documents of any negotiations.
 Email message pertinent to the contract performance.
 All Contract management reports.

84. CONTRACT MANAGEMENT PLAN
Components of a Contract management plan are:
 General contract and strategy information defining,
roles/responsibility, scope, provisions.
 Policies and procedures.
 Preparation of contract schedule (Time).
 Preparation of contract budget (Cost).
 Establish quality plan (Quality).
 Establish priorities: Time, cost and quality.
 Receipt or acceptance of reports, manuals, guides etc.
 Actual time period worked.
 Actual works, services, supplies completed.
 Payments for reimbursable.
 Payment due to sub-contractors.
 Copy of original invoice.

85. CAUSES OF DELAYS IN CONTRACTS
This can come about from the side of provider
(contractor) or Procuring and Disposing Entity.
Provider:
 Lack of resources
 Inadequate skill & expertise
 Delays in supply chain
 Unrealistic estimates
 Failure to repair defective work.

86. CAUSES OF DELAYS IN CONTRACTS
PDE:
 Inadequate specifications & variations
 Poor contract administration
 Delay in payments
 Delay in inspection
 Disputes
 Contract method, which may not be suitable.

87. TERMINATION OF CONTRACT
The following are ways in which contracts can be
terminated:
 Contract manager submits recommendation to Contracts
Committee copy Accounting Officer, stating the name of
provider, Procurement Reference number, giving reasons
for termination, which can be on the contractual grounds.
 The costs resulting from termination should be
considered and approval of Contracts Committee should
be sought and If approved, contract is terminated.

88. CHALLENGES IN CONTRACT MANAGEMENT
 Delay in delivery of services.
 Poor workmanship by contractors.
 Abandoning work by providers.
 What is the best contract for a particular type of service,
goods, works to use.
 Payment risks.
 Forged documents.
 Natural calamities.
 Inflation affecting value of the shilling.
 Variance in actual site conditions from expectations.
 Approval of shoddy work.
 Changes in design during implementation.
 Inadequate and untimely release of funds.
 Communication.

89. CONT…
 How to ensure that the different stakeholders perform to
each other satisfaction.
 Cost - in setting up and in running the contract.
 Meeting expectations from end-users.
 Motivating providers to perform .
 Managing the providers performance.

90. END OF PRESENTATION
GOOD LUCK