Public Procurement and Disposal of Public Assets Act, 2003

The Act may be cited as the Public Procurement And Disposal of Public Assets Act, 2003.

This section states the Act applies to public procurement and disposal activities and lists specific applications and explicit exclusions.

This section provides interpretation and definitions used in the Act, listing defined terms such as “accounting officer”, “Authority”, “bidder” and many others.

If an agreement creates a conflict with this Act, the agreement prevails; and a procuring and disposing entity must state any preference(s) in the bidding documents.

If a bilateral loan or negotiated grant requires that the provider originate from the donor country, procurement of that provider must follow this Act; but if there is a conflict between this Act (or its regulations/guidelines) and a donor-imposed condition, the donor's condition prevails for procurement using the donor funds.

Establishes a Board of Directors (the "Board") which must execute the Authority's functions and powers in sections 7 and 8 and is responsible for formulating policy and approving the Authority's budget.

Section 11 composes the Board and sets membership qualifications: the chairperson and non‑executive members must be persons of good standing and professionally competent; the Executive Director is an ex officio member and must not vote; certain members are to be nominated by specified organisations, professional bodies or the Minister.

The Minister must determine the terms and conditions of service of Board members (except the Executive Director), in consultation with Cabinet.

Board members (except the Executive Director) have a tenure of four years and may be reappointed for only one further term.

The Board must meet as often as necessary but at least once every two months; in the Chairperson's absence the Executive Director calls meetings and members present elect an acting Chairperson; quorum is four members with interested members excluded; members must declare interests on a prescribed form and not participate in related decisions; Board decisions are by majority with the Chairperson having a casting vote; proceedings are confirmed at the next meeting.

The Board may establish specified committees; the Board must determine their terms of reference, composition and, in consultation with the Minister, their terms and conditions of service.

The Board may delegate its functions or powers by instrument to the Chairperson, a board member or the Executive Director, except for a long list of specified functions and powers; delegates must follow the instrument's terms and any Board directives; an aggrieved person may appeal to the Board.

The Minister may terminate a Board member's appointment (except the Executive Director) for listed grounds such as abuse of office, corruption, incapacity, absenteeism, conviction for moral turpitude, bankruptcy, or other reasonable grounds.

The Board appoints an Executive Director on a three‑year contract (renewable once); the Executive Director is the Accounting Officer and is responsible for the Authority's management, funds, staff and operations, must not hold other paid employment, and the Board may terminate the Executive Director for listed grounds.

The Board must appoint a Secretary to the Board; the Executive Director, on the Board's directive, must appoint other staff required for the Authority's functions.

The funds of the Authority consist of money appropriated by Parliament, loans or grants received by the Authority, and revenues from services rendered by the Authority; the Authority must open and maintain bank accounts in banks approved by the Board.

The Authority's financial year is the same as the Government's financial year.

The Executive Director must prepare and submit to the Board an Annual Management Plan with a budget not later than three months before the end of each financial year; the Executive Director may also submit supplementary budget estimates at any time before the end of a financial year.

The Authority must keep proper books of accounts and records, and the Auditor General must audit the Authority's annual accounts and its procurement and disposal activities.

The Authority must submit an Annual Performance Evaluation Report and related accounts and documents within three months after each financial year; the Minister must lay that Report before Parliament within two months of receiving it or at the next sitting; and the Auditor-General must submit the Audited Report to Parliament within four months of receiving the accounts.

The Head of Internal Audit must audit the Authority’s accounts and submit quarterly reports to the Executive Director; the Executive Director must send those reports to the Board at its next meeting after receipt.

The Authority must at all times comply with the Public Finance and Accountability Act, 2003.

Establishes the Public Procurement and Disposal of Public Assets Authority as a corporate body with powers to sue and be sued, to borrow money, acquire and dispose of property, and requires authenticated sealing of documents.

The Authority's objectives include ensuring fair, competitive, transparent, non-discriminatory and value-for-money procurement and disposal practices; advising government and other procuring/disposing entities; setting standards for public procurement and disposal in Uganda; monitoring compliance; and building procurement and disposal capacity in Uganda.

The Authority must perform a set of functions including advising government and procuring entities, monitoring and reporting procurement performance, preparing standardized bidding documents, issuing guidelines, publishing procurement data, maintaining supplier registers, conducting audits and inspections, adopting mandatory standards, developing system-wide databases and capacity-building strategies, determining common prices when applicable, establishing institutional linkages, undertaking research, enforcing compliance, and may contract third parties to carry out audits.

Section grants the Authority general regulatory powers and authorises the Executive Director to, in writing, require information, summon and examine witnesses, undertake investigations and audits, inspect transactions, act on complaints, suspend providers (per section 94), and authorise or appoint officers; a magistrate may, on application by the Authority, issue a warrant to allow Police entry where entry is refused.

The Authority may recommend action to competent authorities and may communicate recommendations to enforcement agencies; it must include specified matters in its Annual Performance Evaluation Report; competent authorities must respond in writing within periods set by regulations and state actions taken or reasons for no action.

A procuring and disposing entity must be composed of an Accounting Officer, contracts committees, a Procurement and Disposal Unit, a User Department, and an Evaluation Committee.

A procuring and disposing entity must manage all procurement and disposal activities in its jurisdiction in line with the Act; the Secretary to the Treasury must each financial year appoint an agent to carry out the Authority's procurement and disposal activities except for micro procurement tasks which the Authority retains.

Accounting officers of procuring and disposing entities are responsible for managing procurement and disposal processes and must perform listed functions (establish committees, appoint members, establish PDU, advertise bids, certify funds, sign contracts, investigate complaints, report), must inform the Contracts Committee within seven working days and report to the Authority within ten working days after signing, must assess market prices before procurement, and must not sign contracts before Contracts Committee approval except in emergencies or where the bid price exceeds the established market price (subject to section 74).

The provision sets out who may and may not be nominated to a Contracts Committee, requires nomination by the Accounting Officer and approval by the Secretary to the Treasury, allows the Accounting Officer to act in emergencies, requires reporting and notification to the Authority within 14 days, permits co-opting advisers, and authorises the Secretary to exempt entities from a tenure requirement when satisfied it is impracticable.

The Contracts Committee must carry out specified procurement and disposal activities (including adjudication, approvals, verification, valuation and liaising) and must report certain activities to the Accounting Officer for approval.

A Contracts Committee must authorize procurement and disposal documents and amendments, recommend delegation to the Accounting Officer when necessary, and award contracts according to applicable procedures.

A procuring and disposing entity must establish a Procurement and Disposal Unit staffed at an appropriate level.

A Procurement and Disposal Unit must carry out and manage the listed procurement and disposal functions for the procuring and disposing entity.

A Procurement and Disposal Unit has specified powers including recommending committee composition, contracting independent advice, ensuring compliance, managing bids and pre-qualification submissions, providing bid clarifications, and receiving bids.

If a Contracts Committee and a Procurement and Disposal Unit disagree, either body may seek independent advice from the Authority; a Contracts Committee may also return a submission to the Procurement and Disposal Unit with written reasons. Any party asking the Authority for advice must state in writing the reasons for its disagreement.

The User Department of a Procuring and Disposing Entity must perform specified procurement-related functions and prepare a procurement plan based on the approved budget to submit to the Procurement and Disposal Unit.

A User Department must perform procurement and disposal tasks, including initiating requirements, recommending Statements of Requirements, undertaking conformity assessments, issuing change orders per contract terms, and certifying provider invoices.

If a Procurement and Disposal Unit disagrees with a User Department about procurement method, process or practice, the two parties may jointly consult two members of the Contracts Committee for review and guidance; if that fails either party may submit the disagreement to the Contracts Committee for a formal decision.

An Evaluation Committee must conduct all evaluations, report to the Procurement and Disposal Unit, have at least three members, and members must sign a Code of Ethics; membership is recommended by the Procurement and Disposal Unit and approved by the Contracts Committee; members may be external in specified circumstances.

The Accounting Officer, the Contracts Committee, the Procurement and Disposal Unit, the User Department and the Evaluation Committee must act independently in relation to their respective functions and powers, subject to the provisions of this Act.

An accounting officer may delegate or contract out certain procurement and disposal functions to internal subdivisions, staff, other procuring entities, or third‑party providers.

A procuring and disposing entity must secure prior written assurance of funds, obtain services from firms prequalified by the Authority, and follow the Authority's procedure; where lacking technical capacity and with prior Authority approval and guidelines, it may engage third party procurement and disposal services.

The Authority may accredit alternative procurement systems for procuring and disposing entities that cannot comply with required procedures; regulations will set the application procedure and provide special rules including for procurement of medicines and medical supplies.

Procuring and disposing entities must keep procurement and disposal records, including a summary report for each contract, and keep them for seven years or longer in specified circumstances.

Defence and National Security organs must comply with this Act subject to subsections (2) and (3); they must manage procurement and disposal using a dual list, agree annually with the Authority on restricted-item categories and methods, subject restricted lists to classified audit and lay them before Parliament, appoint Contracts Committees for classified items, and have committee members nominated by accounting officers and approved by the Secretary to the Treasury.

All public procurement and disposal must be conducted according to specified principles including non-discrimination, transparency, accountability and fairness, competition and value for money, confidentiality, economy and efficiency, and promotion of ethics.

Bidders must not be excluded from participating in public procurement or disposal on the basis of nationality, race, religion, gender or any other criterion not related to qualification, except as provided for in this Act.

All procurement and disposal shall be conducted in a manner which promotes transparency, accountability and fairness.

All procurement and disposal must be conducted to maximize competition and achieve value for money.

Procuring and disposing entities must not disclose certain procurement information to bidders or outsiders, and must disclose procurement information on written request, subject to specified exceptions.

All procurement and disposal must be conducted to promote economy, efficiency and value for money.

All procurement and disposal must be carried out in accordance with the Codes of Ethics as may be specified by the Authority.

Preference is to be given to domestically manufactured goods and Ugandan contractors and consultants, and certain contracts or parts may be reserved to promote sectors or geographic areas.

A procuring and disposing entity shall use open bidding as the preferred method of procurement and disposal.

A contract shall be awarded to the bidder with the best evaluated offer.

The Authority must make copies of the Act, its regulations, Guidelines, forms, standard bidding documents and the Authority's decisions accessible to the public.

Section 54 was repealed by section 27 of Act 11 of 2011.

All public procurement and disposal shall be carried out in accordance with the rules set out in this Part of the Act, any regulations and guidelines made under this Act.

Procuring and disposing entities must use the Authority's standard forms to record procurement or disposal details, unless the Authority consents to other forms; if no form exists they may apply for temporary permission to use an alternative form, and such applications must state the circumstances requiring a form.

All communication between a procuring and disposing entity, bidder, or provider must be in writing; any communication in another form must be referred to and confirmed in writing.

Requires procuring and disposing entities to plan procurement and disposal, prepare and submit annual plans, aggregate requirements, use framework contracts where appropriate, integrate budgets and disposals, review and update plans quarterly, notify authorities of changes, display plans for at least twenty working days, and prohibits procurement outside the plan except in emergencies; the Authority must issue plan format guidelines.

The Accounting Officer must approve all procurement or disposal requirements before any procurement or disposal process begins.

Procuring and disposing entities must grant specified margins of preference to qualifying Ugandan goods, contractors or consultants when procuring goods, works or services; special rules apply for joint ventures.

The Authority must specify which public procurement contracts and sectors are subject to reservation schemes, and procuring entities intending to use a reservation scheme must apply to the Authority for permission and deal only with eligible providers.

A statement of requirements may take forms such as specifications, terms of reference, scope of works, drawings, or bills of quantities, and must give a correct and complete description of the object of the procurement or disposal to create fair and open competition.

Procuring and disposing entities must at all times use industry standards defined and codified by internationally recognised trade associations and professional bodies in the appropriate fields.

Procuring and disposing entities must use the Authority's standard documents as models when drafting solicitation documents and must obtain the Authority's prior consent to depart from those standard General Conditions of Contract.

Methods for selecting bidders must allow fair and equitable selection and ensure maximum competition.

The bidding period must be sufficient to allow bidders to prepare and submit their bids and must not be reduced with the aim of limiting competition.

A procuring and disposing entity may modify solicitation documents by issuing an addendum before the bid submission deadline, and may extend the closing date if necessary to allow bidders to take the addendum into account.

A procuring and disposing entity must require bidders to submit sealed written bids unless this Act or its regulations provide otherwise.

The method for bid submission must be prescribed by regulations and determined by those regulations according to the type, complexity and evaluation method of the procurement or disposal handled by the procuring and disposing entity.

A bidder may change or withdraw their bid before the submission deadline using the method set by regulations under the Act.

All bidding processes must include a formal bid receipt and a bid opening.

A procuring and disposing entity must require that all bidders meet the qualification criteria in the bidding documents; those criteria include that the bidder is not insolvent, in receivership, bankrupt, being wound up, has not had business activities suspended, is not subject to legal proceedings for those circumstances, and has fulfilled obligations to pay taxes and social security contributions.

A procuring and disposing entity must ensure that bid evaluations are carried out expeditiously and in accordance with regulations.

Bids must not be altered in substance, including price, after the bid closing date and time, except as regulations under this Act may prescribe.

A procuring and disposing entity may ask bidders for clarification of their bids to assist evaluation and clarify details.

Negotiations between a procuring and disposing entity and a contractor over the contractor's proposal are prohibited except in limited situations; the procuring entity must investigate cost overruns and may cancel or negotiate to reduce scope when the best evaluated bid exceeds budget.

A procuring and disposing entity may reject any or all the bids at any time prior to the award of a contract.

A procuring and disposing entity must not confirm an award until specified conditions (regulatory waiting period and full funding) are met; the award must then be confirmed by a written contract signed by both the provider and the procuring and disposing entity after those conditions are fully satisfied.

If a bidder’s circumstances change during procurement or disposal in a way that could materially affect their ability to perform, the bidder must immediately inform the Contracts Committee.

Public Officers must not bid in disposal processes, except when specific items are offered to Public Officials under specified conditions.

A procuring and disposal entity must use specified procurement methods for goods, works and non‑consulting services and section 88A for consultancy services; the Contracts Committee must first approve the chosen method, and the Authority's consent is required to use any method outside those set out in this Part.

A procuring and disposing entity must use the open domestic bidding method, except where this Act or its regulations provide otherwise; foreign or international bidders are not prevented from participating.

Defines "Open international bidding" as a procurement method open to all providers on equal terms by advertisement and specifically seeking to attract foreign providers.

Restricted domestic bidding is a procurement method where bids are obtained by direct invitation without open advertisement.

Restricted international bidding is a procurement method where bids are solicited by direct invitation without open advertisement and the invited bidders include foreign providers.

Defines the quotation method as a simplified procurement method comparing price quotations from multiple providers.

Direct procurement is a sole‑source method used when exceptional circumstances prevent competition.

Micro-procurement is a procurement method to be used for very low value requirements and to achieve efficient and timely procurement where the value does not justify a competitive procedure.

Public assets may be disposed of by a list of methods; when donating, the procuring and disposing entity must take into account specified factors.

The detailed procedures for selecting providers will be set out in regulations.

Procuring and disposing entities must publish a notice inviting expressions of interest and prepare a shortlist of consultants; they may use a short list or conduct negotiations with selected consultants but must not negotiate with several consultants at the same time.

A procuring and disposing entity must, when carrying out a procurement activity, use any of the contract types specified in this Part (or a combination) and follow procedures set by regulations under this Act.

A lump sum contract must be used where the content, duration and outputs of the procurement are well defined.

Use a time-based contract when the scope and duration of the procurement requirement are difficult to define.

An admesurement contract, including a re-measurement, unit rate and bill of quantities contract may be used for works which are not well defined; which are likely to change in quantity or specifications; or where difficult or unforeseen site conditions, such as hidden foundation problems, are likely.

A framework contract is defined as a schedule of rates or an indefinite delivery contract and shall be used when requirements are needed on call or to reduce procurement costs or lead times for repeatedly needed requirements.

A percentage based contract must be used when it is appropriate to tie the fee directly to the estimated or actual cost of the subject of the contract.

A cost reimbursable contract shall be used for emergency work when there is insufficient time to calculate costs, and for high-risk works where it is more economical for the procuring and disposing entity to bear price-variation risk or where the provider will not accept the risk.

A target price contract may be used instead of a cost reimbursable contract where a target price can be agreed and cost savings may be achieved by offering an incentive payment to the provider for any cost savings below the target price.

A retainer contract is used to retain a provider to provide services over a prescribed period without specifying service levels or amounts.

Defines 'Success fee contract' as a contract that links the fees of a provider to an achieved objective to incentivize successful completion of a task, event, or action.

For other types of contracts not covered elsewhere, a procuring and disposing entity must seek guidance from the Authority on the applicable procurement procedures and documents.

Procuring and disposing entities must give a bidding applicant who requests administrative review a summary of the evaluation, a comparison of tenders (with evaluation criteria), and reasons for rejection; bidders may seek review for omissions or breaches of the Act, its regulations or bidding documents.

Sets procedures for a bidder to complain to the accounting officer, timelines for actions by the accounting officer and the Authority, and rights where the Authority fails to act.

The Authority must notify the procuring and disposing entity on receipt of a complaint, suspend further action until settled, notify interested bidders, may consider representations, must decide within 21 working days stating reasons and remedies, and may be appealed by dissatisfied bidders.

Defines “proceedings” as review by the Tribunal of a decision made under Part VII and includes any application before the Tribunal; defines “Tribunal” as the Public Procurement and Disposal of Public Assets Appeals Tribunal.

Procuring and disposing entities must not contract with specified persons who have conflicts of interest; persons to whom the section applies must reveal personal interests; contravention is an offence punishable by a fine up to 120 currency points or up to five years imprisonment.

Members or staff of the Authority and procuring and disposing entities are protected from legal action for acts or omissions done in good faith.

Public officers and engaged experts must sign the Code of Ethical Conduct; providers of works, services or supplies must sign a declaration of compliance with those codes.

The Authority may suspend a provider from participating in public procurement or disposal processes for a period determined by the Authority.

The section defines offences (including corrupt or fraudulent practices) and prescribes penalties such as fines, imprisonment, refund orders, disqualification and suspension for providers or bidders involved.

Allows procuring entities to use a force account mechanism and imposes duties on accounting officers to make available resources, ensure standards and supervision, procure supplies per the Act, determine costs are cheaper than contracting, and keep records.

The Minister must, on the recommendation of the Authority and with the approval of Parliament, issue regulations to carry out the objectives and functions of this Act, including regulations for procurement and disposal by a procuring and disposing entity outside Uganda.

The Authority shall issue and Gazette guidelines for carrying out the objectives and functions of the Act.

Property formerly vested in the Government for the use of the Central Tender Board vests in the Authority on commencement; the Authority continues pending legal obligations; procuring and disposing entities must conform within twelve months.

The Public Finance Procurement Regulations are repealed.