CHAPTER 42:08
PUBLIC PROCUREMENT AND ASSET DISPOSAL

ARRANGEMENT OF SECTIONS

   SECTION

PART I
Preliminary

   1.   Short title

   2.   Interpretation

PART II
Scope of the Act

   3.   Application

   4.   External obligations

   5.   Procurement for external obligations

   6.   Derogation

   7.   Fair treatment

   8.   Contribution to other entities

   9.   Discrimination and underpricing

PART III
Establishment, Constitution and Membership of the Board

   10.   Establishment of the Board

   11.   Composition of the Board

   12.   Appointment to the Board

   13.   Conditions of service

   14.   Tenure of Board members

   15.   Termination of membership to the Board

   16.   Resignation

   17.   Filling of vacancies of the Board

PART IV
Meetings and Proceedings of the Board

   18.   Meetings of the Board

   19.   Signification of documents

   20.   Method of work of the Board

   21.   Appointment of Secretary to the Board

   22.   Functions of the Secretary

   23.   Accountability to the Board

   24.   Conditions of service of Secretary

   25.   Co-option of advisory personnel

PART V
Functions and Powers of the Board

   26.   Functions and powers of the Board

   27.   Compliance with the Act

   28.   Advise stakeholders

   29.   Standardised bidding package

   30.   National standards specification

   31.   Derogation by Board

   32.   Approval of specific instructions

   33.   Revision of bid packages

   34.   Legal status of bid packages correspondence

   35.   Evaluation procedures

   36.   Evaluation and adjudication

   37.   Power to adjudicate

   38.   References

   39.   Industry standards

   40.   Precedent to be followed

   41.   Alterations to awarded bids

   42.   Changes in bidder's circumstances

   43.   Inclusion of all relevant clauses in bidding packages

   44.   Retroactive approval

   45.   Availability of funds

   46.   End of activity report

   47.   Resiling from agreements

   48.   Recommendation of systemic improvements

   49.   Management of contractors registration system

   50.   Establishment of committees and delegation of power

   51.   Operational modalities of sub-committees

   52.   Obtaining of information

   53.   Redressing complaints

   54.   Dispute resolution

   55.   Methods of procurement

   56.   Electronic procurement

   57.   Medium of communication

PART VI
Financial and Administrative Provisions

   58.   Financing of the Board

   59.   Technology, data-bases and manpower

   60.   Annual and medium term plans

PART VII
Devolution of Public Procurement and Asset Disposal Management

   61.   Establishment of Ministerial Committees

   62.   Responsibilities of Ministerial procurement and Asset disposal Committees

   63.   Special Procurement Committee

   64.   District Administration Committees

   65.   Financial ceilings

PART VIII
Reserved and Preferential Treatment

   66.   Economic and social objectives and procurement

   67.   Empowerment of citizen contractors

   68.   Process for preferential schemes

   69.   Certification of eligibility

   70.   Eligibility for preference

   71.   Reserved schemes

   72.   Procurement preferences and reservation schemes

   73.   Scale of preference

   74.   Ranking of bids

   75.   Preference for supplies

   76.   Prime contractor and subcontractor

PART IX
Accountability and Transparency: Audit and Ethics

   77.   Independent auditor

   78.   Liability of auditor

   79.   Audit by the Auditor General

   80.   Audit recommendation and the Board

   81.   Availability and comments on report

   82.   Co-operation with the auditors

   83.   Facilitating investigations

   84.   Maintenance of records

   85.   Access to documentation and data bases

   86.   Obligation to advertise

   87.   Publicity and the media

   88.   Disclosure of interest by members of the Board

   89.   Confidentiality obligations

   90.   Code of ethics and declaration of business interests

   91.   Classification of information

   92.   Rights of review and research

   93.   Declassification of information

   94.   Transmission of documents

PART X
Establishment of the Independent Complaints Review Committee

   95.   Independent Committee

   96.   Composition

   97.   Appointment

   98.   Levels and institutional representation

   99.   Conditions of service of Committee

   100.   Secretary of Independent Committee

   101.   Co-option of experts

   102.   Modalities of operation

   103.   Scope of responsibilities

   104.   Requirements in respect of grievances

   105.   Exemption

   106.   Meeting of costs

   107.   Imposition of fines

   108.   Award of costs

   109.   Co-operation with the Secretary

PART XI
Advisory Committee on Public Procurement and Asset Disposal

   110.   Establishment of Advisory Committee

   111.   Membership of Advisory Committee

   112.   Meetings and functions of Advisory Committee

   113.   Appointment to Advisory Committee

   114.   Conditions of service of Advisory Committee

   115.   Method of work of Advisory Committee

PART XII
Registration of Contractors

   116.   Register of contractors

   117.   Requirements to be registered

   118.   Domicile and registration

   119.   Registration and pre-qualification

   120.   Non-eligibility for non-registered contractors

   121.   Classification of contractors

   122.   Review of register

   123.   Code of conduct of contractors

   124.   Suspension and de-listing from the register

   125.   Non-registration of suspended contractors

   126.   Restriction on defaulting contractor

   127.   Procedures and regulations

PART XIII
General Provisions

   128.   Offences

   129.   Immunities

   130.   Regulations

   131.   Repeal and savings

   132.   Transitional period

Act 10, 2001,
S.I. 62, 2001,
S.I. 49, 2002,
Act 12, 2008,
S.I. 72, 2008.

An Act to establish the Public Procurement and Asset Disposal Board and its committees and provide for the procurement of works, supplies and services, for the disposal of public assets and related matters.

[Date of Assent: 7th August, 2001]
[Date of commencement: 2nd July, 2002]

PART I
Preliminary (ss 1-2)

1.   Short title

   This Act may be cited as the Public Procurement and Asset Disposal Act.

2.   Interpretation

   In this Act, unless the context otherwise requires-

   "Advisory Committee" means the Advisory Committee on Public Procurement and Asset Disposal established under section 110;

   "any combination thereof, however classified" means turnkey projects, build own operate projects, build operate and transfer projects or any arrangement following in this genre, which may also include management, maintenance, testing, commissioning or training;

   "bid" means tender and vice versa or an invitation by-

   (a)   a procuring entity for a provider (works, supplies or services); or

   (b)   a disposing entity for interested parties,

to submit a competitive offer in relation to a public solicitation for a specific activity which shall include design assignments;

   "bidding document" means a standard bidding package, which shall include, in relation to-

   (a)   works-

      (i)   invitation to bid;

      (ii)   specific instructions to bidders;

      (iii)   form of bid;

      (iv)   form of contract;

      (v)   conditions of contract (general and particular);

      (vi)   specifications and design drawings,

      (vii)   bills of quantities or equivalent documents approved by the Board;

      (viii)   schedule of commencement, delivery, completion, etc.; and

      (ix)   securities; or

   (b)   services-

      (i)   letter of invitation;

      (ii)   instructions or briefs to bidders;

      (iii)   description of services to be supplied;

      (iv)   terms of reference;

      (v)   technical proposal;

      (vi)   financial proposal (where applicable);

      (vii)   schedules; or

      (viii)   standard forms of contracts; and

   (c)   supplies-

      (i)   letter of invitation;

      (ii)   instructions to suppliers;

      (iii)   description of supplies;

      (iv)   technical specifications;

      (v)   financial proposal (where applicable);

      (vi)   schedules relating to delivery, payment, etc., or

      (vii)   standard forms of contracts; and

   (d)   in respect of paragraphs (a), (b) and (c) above, any other relevant forms, documents, correspondences and clarification.

   "Board" means the Public Procurement and Asset Disposal Board established under section 10;

   "Citizen Contractor" means a natural person or an incorporated company wholly owned and controlled by persons who are citizens of Botswana;

   "Committee" means a Committee of the Public Procurement and Public Asset Disposal Board, established by a decision of the Board, and delegated specific functions and powers by the Board in respect of public procurement or the disposal of public assets under the Act;

   "contract" means an agreement between a procuring entity or a disposing entity and a contractor resulting from the application of the appropriate and approved procurement or disposal procedures and proceedings, and shall be concluded in pursuance of a bid award decision by the Board or one of its Committees;

   "Contractor" or "provider" are used interchangeably and mean a natural person or an incorporated body licensed by the competent authority to undertake works, services, supplies, or any combination thereof, however classified;

   "Department" means a public entity, an extra ministerial body or a subdivision of the central Government, including schools and hospitals that derive their regular funding from the Consolidated Fund;

   "disposal" means the divestiture of public assets, including intellectual property rights and goodwill, and any other rights of the State, by any means, including sale, rental, lease, licences, tenancies, franchises, auction or any combination thereof, however classified;

   "disposing entity" means any Ministry or department duly authorised to engage in public procurement;

   "District Committees" means the District Administration Public Procurement and Asset Disposal Committees established under section 64;

   "Executive Chairperson" means the Executive Chairperson of the Public Procurement and Asset Disposal Board appointed under section 12(1);

   "Independent Committee" means the Independent Complaints Review Committee established under section 95;

   "industry standards" means best practices which shall include practices and standards which-

   (a)   are safe and environmentally friendly;

   (b)   are innovative and increase efficiencies;

   (c)   save time and costs;

   (d)   relate to materials, processes, methods, designs, equipment, products, services and practices; and

   (e)   are as defined and coded by internationally recognised contractors' associations and professional bodies in the concerned fields;

   "local contractor" means a contractor whose operation is based in Botswana irrespective of the contractor's nationality or domicile;

   "Minister" means the Minister for Finance;

   "Ministerial Committee" means the Ministerial Public Procurement and Asset Disposal Committee established by the Public Procurement and Asset Disposal Board at the ministerial level and vested with authority to conduct public procurement and the disposal of public assets on behalf of its departments, consistent with the procedures set out in this Act;

   "pre-qualification" means a screening process designed to ensure that invitations to bid are confined to capable firms;

   "procurement" means the acquisition in the public interest by any means, including by purchase, rental, lease, hire-purchase, licences, tenancies, franchises, etc., of any type of works, services or supplies or any combination thereof, however classified, and shall include management, maintenance and commissioning;

   "procuring entity" means any Ministry or department duly authorised to engage in public procurement;

   "Public Oversight Agencies" means the Attorney General's Chambers, the Auditor General's Office, the Directorate on Corruption and Economic Crime, the Office of the Ombudsman and any other institution charged with a responsibility to oversee the activities of other Government departments;

   "Registered Contractor" means a contractor registered with the Public Procurement and Asset Disposal Board in terms of this Act and any regulations made thereunder;

   "services" means all services, other than works and supplies, including banking services, insurance coverage, travel services, cleaning services, etc., and includes consultancy services;

   "specifications" means National Standards Specifications, and includes-

   (a)   a generic or functional description of the qualities required of a procurement item;

   (b)   the relevant industry standards of approaching and executing the assignment in question; and

   (c)   the appropriate good practice tests that are to be used to verify the specified quality and performance of the procured item before delivery, on delivery, during installation, and in the course of operation, as applicable and the use of which shall be mandatory in all bidding packages;

   "supplies" means goods, raw materials, products, equipment or objects of any kind and description in solid, liquid or gaseous form, and in the form of electricity, as well as services incidental to the provision of such supplies;

   "Tender Notice" means any invitation to eligible contractors to submit written offers to provide works, services and supplies, or any combination thereof; and

   "works" means any work associated with the construction, reconstruction, demolition, repair, or renovation of a building or structure, on the surface or underground, on and under water, and includes the preparation, excavation, erection, assembly, installation, testing and commissioning of any plant, equipment or materials, decoration and finishing, as well as services incidental to or independent of the foregoing works such as drilling, mapping, satellite photography, seismic investigations, similar services, and any combination thereof provided pursuant to a procurement contract.

PART II
Scope of the Act (ss 3-9)

3.   Application

   The provisions of this Act shall apply to-

   (a)   all entities of the central Government which are involved in public procurement or the disposal of public assets, whether they are located abroad or within Botswana;

   (aa)   all land boards;

   (ab)   all parastatals, statutory organisations and local authorities, in accordance with the provisions of section 8, except where exempted by the Minister by notice published in the Gazette.

   (b)   the procurement or disposal of all assets acquired by any means, including-

      (i)   purchase;

      (ii)   rental;

      (iii)   lease;

      (iv)   hire-purchase;

      (v)   licences;

      (vi)   tenancies;

      (vii)   franchises; or

      (viii)   auctions, etc.;

   (c)   the procurement of all works, services, supplies, or any combination thereof, however classified; and

   (d)   the disposal of serviceable and unserviceable-

      (i)   physical properties and land;

      (ii)   items acquired through works, services or supplies contracts;

      (iii)   intellectual and proprietary rights;

      (iv)   financial instruments, including shares, stocks, bonds, etc.; and

      (v)   goodwill and any other rights of the State.

4.   External obligations

   (1) To the extent that this Act conflicts with any obligations of the Republic of Botswana under or arising from any treaty or other agreement to which Botswana is a party, the requirements of such treaty or agreement shall prevail over this Act.

   (2) Where such treaty or agreement contains provisions favourable to citizen and local contractors, full advantage shall be taken of these in the interest of promoting domestic capacity development.

   (3) If Botswana is required under the terms of any treaty or agreement to which she is a party to contribute from her own resources, in any form, to any procurement activities within Botswana in part or wholly, jointly or separately, then procurement through such contributions shall be-

   (a)   in discrete activities where possible; and

   (b)   subject to the applicable provisions of this Act.

   (4) The disposal of any, or all of the products, or public assets accruing to Botswana as a result of procurement activities made under subsections (1) and (2) shall, similarly, be subject to the appropriate provisions of this Act.

5.   Procurement for external obligations

   Where the procurement, in the context of section 4(1) favours an external beneficiary, then-

   (a)   procurement through contributions made by Botswana shall be undertaken in Botswana, through contractors registered in Botswana;

   (b)   all relevant insurances shall be placed with companies registered in Botswana; and

   (c)   supplies shall be transported in carriers registered in Botswana.

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