The document summarizes existing tender practices in Ethiopia. It discusses the different types of tenders used - open tendering, two-stage tendering, and restricted tendering. For each type, it outlines the key steps that must be followed in the tendering process according to Ethiopia's procurement manual, including preparing bidding documents, evaluating bids, and selecting suppliers. The purpose of having standardized tender practices is to simplify the process for procuring entities and bidders, and help ensure public funds are used appropriately.

1. Company
LOGO
Existing tender practices in Ethiopia
Seminar Paper
Presented By:
Eyob Muhdin
Coopw /027/05
Presented By:
Thursday, June 18, 2015Coopw
/027/05
Presented by Eyob Muhdin1

2. The presentation has:
1. Introduction
2. Literature review
3. Conclusion
Presented by Eyob Muhdin

3. Introduction
Text
Government
or NGOs
creates
 It is a common practice in the business environment that
organizations require work done for them, or are supplied with
goods/services in bulk.
 In such cases, it would be of great help to familiarize our self with
the existing tender guides and bid procedures.
 Below I will present to provide you with information on the
existing tender and bidding practices in Ethiopia.
Formal
and informal
Presented by Eyob Muhdin

4. Literature review
Definition
What is a tender?
Tender is a means by which an organization invites suppliers to submit
competitive offers for prices to render their services.
Presented by Eyob Muhdin

5. Literature review…
There are different types of tenders in
Ethiopia context:
• Open
tendering
• .
1
• Two-stage
tendering
2 • Restricted
tendering
• .
3
Presented by Eyob Muhdin

6. Literature review…
In this type of tendering,
1. Public bodies should prepare the documents and follow the steps required for
open tendering provided for in articles 22 – 51 of the procurement manual of the
Ministry of Finance (MoF).
2. Accordingly, the following steps should be followed when procuring under
alternative methods of procurement, except where specifically provided for.
Procedures for open tendering
The public body should firstly assess its need or demand for the goods or services
to be purchased. The need or demand for the goods or services to be purchased
should be requested and approved by the authorizing unit within the public body. It
should also reflect the interests of all concerned units in the public body. After the
need assessment is undertaken, the public body should prepare bidding
documents.
Presented by Eyob Muhdin
Open tendering

7. Literature review…
These documents should include the following:
1. An invitation to tender;
2. Instructions to bidders;
3. Specifications and detailed descriptions of the goods and services to be
purchased;
4. Draft of basic terms and conditions of contracts;
5. Standard forms for tenders, including the quality and price schedules.
Presented by Eyob Muhdin

8. Literature review…
SHGs CLA Micro-
finance
Here there are two stages:
First stage:
1. Solicitation documents shall call upon suppliers, initial tenders containing
their proposals without a tender price;
2. The solicitation documents may solicit a proposal relating to the technical,
quality or other characteristics of the goods, construction or services as well
as to contractual terms and conditions of supply, and, where relevant, the
professional and technical competence and qualifications of the suppliers;
3. The public body may, in the first stage, engage in negotiations with any
supplier or contractor whose tender has not been rejected pursuant to
articles 12 and 13 of the procurement manual of MoF concerning any
aspect of its tender.
Two-stage tendering
Presented by Eyob Muhdin

9. Literature review…
SHGs CLA Micro-
finance
Second stage:
 Public bodies shall invite suppliers whose tenders have not been rejected to
submit final tenders with prices with respect to a single set of specifications;
 Public bodies may delete or modify any aspect, originally set forth in the
solicitation documents, of the technical or quality characteristics of the
goods, construction or services to be procured, and any criterion originally
set forth in those documents for evaluating and comparing tenders and for
ascertaining the successful tender, and may add new characteristics or
criteria that conform with this directive;
 Any such deletion, modification or addition shall be communicated to
suppliers or
 contractors in the invitation to submit final tenders;
Two-stage tendering
Presented by Eyob Muhdin

10. Literature review…
SHGs CLA Micro-
finance
 A supplier not wishing to submit a final tender may withdraw from the
tendering proceedings without forfeiting any tender security that the supplier
may have been required to provide;
 The final tenders shall be evaluated and compared in order to ascertain the
successful tender as defined in article 45 of procurement manual of the
MoF.
Two-stage tendering
Presented by Eyob Muhdin

11. Literature review…
Restricted tendering
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In this case there are two things that we should have to see:
 When public bodies engage in restricted tendering on the grounds referred to in
article 16(a) of the procurement manual of the MoF, it shall solicit tenders from all
suppliers from whom the goods, construction or services to be procured are
available;
 When the public body engages in restricted tendering on the grounds referred to
in article 16(b) of the procurement manual of the MoF, it shall select suppliers
from whom to solicit tenders in a non-discriminatory manner and it shall select a
minimum of 3 suppliers from the approved suppliers list. For details on Tender
procedures you may refer to the booklet of EBDSN entitled "Marketing
Strategies".

12. Conclusion
In General, the purpose of having such practice is to provide Procuring
Entities (PEs) with one standard draft containing basic contractual
provisions and safeguards which are required by the Government of the
Federal Democratic Republic of Ethiopia in the execution of public
procurement and the use of public funds.
The Standard Document for the Procurement of Goods has been
designed to:
 Simplify the drafting of a specific bidding document for Procurement
of Goods and Related Services by Procurement Units;
 Minimize the time required by the Tender Committee to approve
Bidding Documents prior to release;
 Reduce Bidders’ time and effort in the preparation of Bids; and
Facilitate and simplify the evaluation and comparison of bids and
Contract award; by the Procuring Entity.
Presented by Eyob Muhdin

13. Presented by Eyob Muhdin

14. December
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Presented by Eyob Muhdin