Public Procurement Regulations 2007

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Number of SL: 
1
Date of promulgation: 
01 January 2007
In-force: 
Yes

 

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“GovernmentStandardConditionsofContract”meanscontractualitemslaiddownas

suitable for general application for contracts undertaken for and by the Government;

“Government” means the Government of Lesotho;

“Contracts Bulletin”means the Contracts Bulletins of the Government;

“chief  accounting  officer”  means  an  officer  who  is  a  final  decision  maker  in  the

respective bodies under regulation 3(2);

“CertificateofBonaFideTender”meanstheprovisionbythesupplierdocumentary

proof that effective and realistic tendering will be taken by the supplier;

“Basotho  business”  means  a  business  where  the  majority  of  directors  are  Lesotho

nationals, and the majority of shares or ownership is held by Lesotho nationals;

“Appeals Panel”means the Tender Panel established under regulation 50(2);

“aforeignbody”meansajuristicpersonnotregisteredinLesotho,andinthecaseofa

natural person, an individual who is not a Lesotho citizen;

2. In these regulations, unless the context otherwise requires,

Interpretation

1.TheseregulationsmaybecitedasthePublicProcurementRegulations2007andshall

come into operation on the date to be published in the Gazette.

Citation and commencement

PART I - PRELIMINARY

Minister of Finance and Development Planning make the following regulations:

TIMOTHY THAHANE THAHANE

Intheexerciseofthepowersconferredonmebysection37oftheFinanceOrder19881, I,

PUBLIC PROCUREMENT REGULATIONS 2007

1   OF 2007

LEGAL NOTICE NO.

 



 

 

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(2)TheUnitshallmaintain,updateanddisseminateGovernmentStandardConditions

of Contract.

4.(1)TheUnitshallapplyGovernmentStandardConditionsofContractappropriateto

the nature of the purchase.

Functions of the Unit

(e) any project implementing authority authorized to carry

out public procurement and funded by foreign loans, grants and assistance.

(d) any other bodies covered by public Law; or

(c) state owned legal entities;

(b) districts councils;

(a) ministries;

(2)  The  following  bodies  shall  constitute  the  Unit  when  carrying  out  public

procurement:

3.(1)ThereisestablishedaProcurementUnittobeknownastheUnitwhichshallbean

individual or a group of individuals authorized to carryout public procurement.

Procurement Unit

PART II- ESTABLISHMENT OF BODIES

“Unit”meanstheProcurementUnitauthorizedundertheseRegulationstocarryout

public procurement

“Tender”meansaproposalofaninterestedpersonorentitytosupplygoods,worksor

services, prepared in accordance with the terms and conditions set out by the Unit;

“Regulations” means the Public Procurement Regulations 2007;

“PPAD”  means  the  regulatory  body  in  charge  of  the  public  procurement  policy  in

Lesotho;

“Ministry” means the Ministry of Finance and Development Planning;

 



 

 

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(f) provide instructions and guidance on the inclusion of standard

and quality assurance systems in specifications and contract material and their implementation in consultation with the Director ofStandards and Quality Assurance, Ministry of Trade and Industry, Cooperatives and Marketing;

(e) participate in national and international meetings as instructed

by the Ministry;

(d) provide the Principal Secretary of the Ministrywith an annual

report for the detailing performance of the public procurement systemwith recommendations;

(c) monitor compliance with procurement policies and these

Regulations;

(b) provide adviceand support to the Ministry

on all aspects of procurement legislation, policy and implementation;

(a) develop public procurementlegislation and initiate proposals

for the adoption of further acts and best practice;

The PPAD shall:

(2)

6.(1)PPADshallbeaDivisionwithintheMinistryresponsibleforthedevelopmentof

thepublicprocurementsystem bysecuringlegality,accountability,efficiency, transparencyandoverallvalueformoneyintheimplementationofpublicprocurement andbystimulatingacompetitiveenvironmentwithequalityoftreatmentamongbidders in the public procurement process, whilst taking due regard of the Government’s policy and aims in respect of local preference schemes.

Functions of the PPAD

(2) PPAD shall be a department inthe Ministry headed by the director.

5.(1)ThereisestablishedabodytobeknownasProcurementPolicyandAdvice

Division which shall bereferred to as PPAD.

Procurement Policy and Advice Division

(3)TheUnitshallplaceadvertisementsforprocurementsandawardsofcontractsin

the Contracts Bulletin of the Government.

 



 

 

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(c) contracts shall not be divided into smaller units in order to

make themless attractive, any proposal to divide a contract into smaller packages shall require the prior approval of

(b) the evaluation of quotations shall follow the same

principles as of open bidding;

(a) comparing price quotations obtained fromaminimum of

three suppliers or contractors;

7. The Unit shall select acontractor and enter into a contract guided by the following:

Procurement procedure

PART III - PROCUREMENT PROCEDURE

(n) compile an inventory of public assets, and provide advice

and guidance on asset management and disposals.

(m) set up an Appeals Panel to deal with complaints and appeals

fromsuppliers and companies, and PPAD shall provide the

Secretariat service to the Appeals Panel; and

(l) compile, produce and publish a Contracts Bulletin giving

details of current and forthcoming procurement opportunities and of contracts placed;

(k) establish the criteria and process for the assessment of

suppliers to become eligible to compete for the Government business;

(j) set a sustainable public procurement training policy, develop

and operate relevant training programmes;

(i) determine and monitor professional standards and

qualifications for thoseresponsible for carrying out public procurement;

(h) plan and coordinate the requirement for foreign technical

assistance in respect of procurement;

(g) establish a Help Desk to deal with enquiries fromthe Unit,

the business community and other individuals;

 



 

 

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9.  (1)  Time-based  contracts  applicable  when  the  scope  of  the  service  cannot  be

establishedwithsufficientprecision,orthedurationandqualityofservicesdependson

Selection of Consultants procedure

(c) there must be convincing and accurate reasons in (a)

and (b) for competition to be avoided.

(b) the requirementcan only be secured from the single

source, this may be due to ownership of exclusive design rights or patents; and

(a)the requirement concerns a new contract that is directly

relevant to a completed contract, and the added value of the additional work being given to the same contractor outweighsanypotential reduction incosts

that may be derived through a competitive tender;

(2) Exceptional procurement procedure shall apply where-

8.(1)Exceptionalprocurementproceduremaybeusedwhenthereisconcernastothe

degreeof competitionthatcanbesecuredorthereisgenuineemergencywhichis not brought about by the Unit or its clients. In these cases PPAD shall be approached by the relevant Unit for a waiver, PPAD shall then seek approval from the Minister.

Exceptional procurement procedure

(g) methods used in the evaluation of bids and the awards of

contracts shall be objective and made known to all bidders in the bidding documents, and the results shall be published.

(f) tender documents shall be written in either of the official

languages providing clear instructions on how bids should be submitted, how prices should be offered, the time and place for submission of bids; and

(e) advertising of tenders shall be made in the mass media

or to the Contracts Bulletin of the Government in either one or both official languages;

(d) open procedures of procurement may be used where the

advantages of securing competition outweighed the need for expediency;

the chief accounting officer;

 



 

 

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(4)TheUnitshalldecideontheappropriatecontractdurationdependentonthenature

of purchase and the market the purchaser faces.

(3)PPADshallnotsplitthetotalcostestimatetoavoidtheaggregationoftotalspend

value  in  regulation  12(1)  for  the  purpose  of  refraining  from  the  use  of  the  open procurement procedure.

(2)Theselectionoftheprocurementprocedureshallbebasedonthetotalcostestimate

of the goods, works or services involved in a contract.

(e)the lower threshold for cost estimate for goods, works or

services whose invitation to tender is posted onto a website.

(d)the threshold at which the estimate for goods, works or

services requiresauthorization fromPPAD; and

(c)the upper threshold for the cost estimate of consulting

service using least cost consultant selection procedure;

(b)the upper threshold for the cost estimate of goods, works

or services using direct procurement;

(a)the upper threshold for the cost estimate of goods, works

and services using the comparison method;

10.(1)PPADshalldeterminethefollowingthresholdvalues,distinguishingbetween

goods, works, services and consulting services:

Thresholds

(2)Lump-sumcontractsapplicablewhenthedefinitionofthetaskstobeperformedis

clearand unambiguous, when thecommercialrisk taken by the Consultant are relatively low,  and  the  Consultant  is  prepared  to  perform  the  assignment  for  an  agreed predetermined lump-sum price.

(b) reimbursable expenses using actual expenses or  agreed

unit prices.

(a)agreed unit rates for Consultant staffmultiplied by the

actual time spent by the staff in executing the assignment, and

variablesthatarebeyondthecontroloftheConsultant.Consultantsprovideservicesona

timed basis according toquality specifications, and remuneration is basedon,

 



 

 

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(b) a tenderer tendering to supply goods of Lesotho origin;

(a) a business that can demonstrate a   shareholding

of between30 percent and 50 percent by Lesotho nationals;

(2) The Unit shall grant a 10 percent margin of preference to the following bodies in

evaluating tender proposals:

shareholding of 51 percent and above;

majority

a

demonstrate

can

who

business

Basotho

a

to

proposals

12.(1)TheUnitshallgranta15percentmarginofpreferenceinevaluatingtender

Granting of a margin

11. A foreign body or entity is entitled to participate in the tender process.

Foreign tenderers

(8)Whereonetendererisinvitedtoenterintoacontractformorethanonelotof

goods,worksorservices,thereasonsfordoingsoshallberecordedintheprocurement file.

(7)Contractsmaybeplacedforeachpackageorlot,anumberofpackagesorlots,or

all packages or lots.

(c ) evaluate each package or lot to determine the best overall

long termvalue for money.

(b)indicate the existence of packages or lots in the invitation

to tender and tender documents and the right of tenderers to submit their proposals on one, some, or all of tender packages or lots; and

(a)the total whole life cost ofthe combination of packages

or lots shall be used in determining the procurement procedure to apply;

(6)TheUnitshallmeetthefollowingrequirementsinthecaseofconductingtendersin

packages or lots:

(5)TheUnitmaydecidewithinasinglecontractthegoods,worksorservicesintoa

seriesofpackagesorlotsandconductatendersuchlotsaccordingtotype,similarityof purpose and geographical locations.

 



 

 

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(2)TheUnitshallnotreceive,obtainoruseadvicethatmayrestrictthecompetition

among bodies interested in tender process.

(c) not specify particular requirements and conditions

indicating atrademark , name, design, type, origin, manufacturing method, and manufacturer or supplier.

(b) define the requirement in terms of international

standards accepted in Lesotho; and

(a) define given goods, worksor services not in terms of

their design or descriptive characteristics but especially in termsof their purpose, application, use, quality, and technical merits;

in  sitting  out  technical

satisfy  the  following  requirements

13.  (1)  The  Unit  shall

specifications:

Technical specifications

Lesotho nationals;

percent

30

between        10

demonstrate

can

and

business

a

to

of

proposals

shareholding

tender

a by

preference  in  evaluating

margin  of

who percent

grant  a  5  percent

(3)  The  Unit  shall

(f) a tenderer who employs the largest share of local

labour.

(e) a tenderer who has the largest use oflocally produced

goods, materials and services; or

(d) a tenderer proposing tosub-contract at least

50 percent of the contract to one or more Basotho businesses;

(c) a tenderer proposing to perform at least 50 percent of

the contract in Lesotho by setting up the necessary business and by using and developing the capacity of Basotho staff in the process;

 



 

 

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(d) informin writing within 10 days of the decision those

businesses thatdid not satisfy the criteria for pre- qualification that they are not eligible to tender.

(c)invite the businesses thatsatisfied thecriteria for

pre-qualification specified in the pre-qualification document to submit a tender; and

(b)make an announcement of pre-qualification as specified

in these Regulations;

(a)prepare a pre-qualification document to indicate the

criteria for pre-qualification ofbusinesses thatwill be permitted to tender;

followingproceduresandmeasuresintheprocessofpre-

the

take

(3)TheUnit

qualification:

procedures,  instructions  and  guidance  for  conducting  pre-

(2)  PPAD  shall  issue

qualification.

15.(1)TheUnitmayconductapre-qualificationreviewprocesspriortosubmissionof

tendersforthepurposeofassessingthecapacityofbusinessesthatwillbepermittedto tender.

Pre-qualification

(4)TheUnitshallrespectandmaintaintheconfidentialityoftechnicalandbusiness

information of tenderers obtained during the assessment of their qualification.

(3)TendersthatdonotsatisfytheUnit’scriteriaandrequirementsshallberejected,

and the rejection shall be notified to the tenderer in writing.

(2)TheUnitshallsetoutandissueaspartofthetenderdocumentsthemandatory

criteriaandrequirementsconsistentwiththeseRegulationsandwithoutwhichbusinesses will not qualify.

14.  (1)  The  Unit  shall  examine  and  evaluate  the  financial  resources,  technical

qualificationsandtheexpertiseofthetenderers accordingto thecriteriasetoutinthese Regulations, forthepurposeofsecuringequalopportunitiesand faircompetitionto tenderers.

Capacity of qualifying tenders

 



 

 

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(h) the business does not have the right to use any

licences, intellectual property, copyright and similar in

(g) a court oflaw or a legally constituted authority proved

that the business committed a corruption crime in

the 3 years prior to the date of the tenderer’s tender; or

(f) the business has submitted to the Unit a tender that

contained false information or omitted relevant information;

(e) the business has common interests with a body who

prepared the design, technical specifications and other documents of goods, works or services, or who was nominated to supervise the contract execution and provide consulting services;

(d) whilst engaging in procurement in the most recent 3 years,

has critically violated and did not fulfill contractual obligations, or the court and legally constituted authorities have proven an oversight in professional operations;

(c ) the operations of thelegal entity with whole or partial

state ownership are dependent on any other state body to ensure competitive neutrality, the pre-qualifications of such entities shalltake into account full-cost pricing, taxes, depreciation on plant and machinery and the return on capital employed;

(c)the business has not fulfilled its tax, levy, fee and other

payment  liabilities pursuant to the legislation of Lesotho or the country of establishment of the tenderer’s business operations;

(a) the business has become insolvent, is in receivership,

has entered into an arrangement with creditors to escape bankruptcy, the business operations were suspended or it is a similar situation pursuant to the legislation of the country of establishment of the tenderer’s business operations;

16.(1)Abusinessshallberegardedasnotsatisfyingthegeneralconditionsforpre-

qualificationifthe following circumstances are proven:

Assessing eligibility to tender

 



 

 

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(e) samples descriptions or photographs of the goods to be

(d) quality control measures tobe carried out directly or under

sub-contracting;

(c) details including specifications of the tenderer’s technical

facilities, plant and equipment;

(b) details of contracts of asimilar nature carried out over the

last 5 years with their cost, timeframe, location and the purchaser with a reference or references of satisfactory completion;

(a)  education and professional qualificationsofmanagement,

supervision, and operational staff of the tenderer;

17.(1)Thetenderer’stechnicalcapacityandexpertiseshallbedeterminedsubjecttoany

ofthefollowingindicatorsdependingonthenature,specifics,qualityandquantityofthe works, goods or services:

Evaluating technical qualification and expertise

(6)TheUnitshalltakeintoaccountinformationspecifiedinevaluatingthefinancial

and technical qualifications of the tenderer in performing a given contract.

(5) A tenderershallinwritingdeliverinformationonhowheproposestoperformthe

contract within the specification.

(4) PPAD shall keep the register of bodies whose rights to tender were restricted.

(3)TheUnitshallbethesolejudgeofthematerialityoftheinformationprovided,

including any omissions and false statements.

(b) a certificate or other equivalent document issued by a

competent authority of the country ofestablishment ofthe tenderer’s business operations.

(a) a court ruling or official document issued by the

competent public administrative authority; or

(2)Businessesshallprovidedocumentaryevidenceinsupportoftheirrequesttopre-

qualify,thismayinclude,butnotlimitedtothefollowingdocumentsappropriatefor

Lesotho and the country of establishment of the tenderer’s business operations:

pursuance of the contract, and has not paid any fees that

are due in respect of such licences.

 



 

 

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19.(1)Invitationforopentenderingshallbeannounced,andallinterestedtenderersshall

be given an equal opportunity to participate.

Open tendering

PART VI- OPEN PROCUREMENT PROCEDURES

(5)Thosedocumentstobesubmittedamongstthedocumentsspecifiedin17(3)shall

be indicated in the tender documents.

(d) reports on tenderer’s annual sales of works, goods or

services, similar to a given contract performed in the last 5 years.

(c) table of consulting staff, remuneration, and other cost

estimates; or

(b) tenderer’s own financial statements, together with an audit

opinion froma qualified independent auditor;

(a) statements by a bank;

(3)  Evidence  of  financial  qualification  may  be  established  by  the  following

documents:

(2)TheUnitshallindicatetherequirementsforfinancialqualificationinthetenderor

pre-qualification documents.

18.(1)TheUnitshallrequiretendererstofurnishevidenceoftheirfinancialcapabilityto

fulfil contractual obligations.

Evaluating financial qualification

(2)   Those   documents   to   be   submitted   amongst   the   documents   specified   in

regulation16(1) shallbe indicated in the tender documents.

(g) details of the tenderer’s proposed arrangements for sub-

contracting andfor managing those sub-contractors.

(f) in the case of goods, quality certificates issued by the

competent authorities; or

supplied, a certificate or certificates ofauthenticity;

 



 

 

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(b) inviting tenderers to submit their financial proposals

based on clarified and revised technical proposals, and the evaluation teamshall undertake the evaluation.

(a) inviting tenderers to submit their technical proposals,

which are then assessed by the evaluation team, and revisions and clarifications to which are agreed with individual tenderers, and

(2) Two-stage open tendering shall be conducted by-

(g) the Unit and relevant technical experts fromwithin the

public service are unable to establish technical specifications in advance andneed specialist assistance from experienced suppliers in order to finalise the scope of work and establish technical specifications.

(f) two or more technical solutions will satisfy the

requirements and are equally acceptable; or

(e) services are requiredthat can be delivered by alternative

methodologies;

(d) technically unequal proposals are likely to be submitted;

(c) there is a need toconclude a contract to supply a

number of goods, works or services interrelated with eachother;

(b) cost estimates are high;

(a) the Unit considers that the scope of works is large;

20.(1)Thetwo-stageopentenderprocessmaybeadoptedbytheUnitinthefollowing

circumstances:

Conducting two-stage open tendering

(3)Opentenderingshallbecarriedoutatonestageexceptwherepre-qualification

applies.

(2)   Interested   tenderers   shall   submit   their   technical   and   financial   proposals

concurrently the deadline fixed by the Unit.

 



 

 

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(5)tendersshallnotbeconsideredifrequiredguaranteesarenotsubmittedorifthe

submitted guarantee does not satisfy the requirements under these Regulations.

(4)Thetenderershallberequiredtosubmitaguaranteeofbetween1to2percentof

its tender price.

(3)WheretheUnitrequiresatendersecurity,thisshallbespecifiedinthetender

documents.

(2)AlegalentityofLesothomaysubmitabankguaranteeandGovernmentTreasury

Bonds,whileaforeignlegalentitymaysubmitaguaranteefromaLesothooraforeign bank, Government Treasury Bonds, or securities authorized by the Government.

servicestobeprocuredatthecostabovethethresholdvaluespecifiedinSchedule1to

submit a tender security.

or

21.(1)TheUnitshallrequiretenderersparticipatingintendersforgoods,works

Tender security

(h) terms of reference in case of consulting service.

(g) national templates of tender documents; and

(f) designs;

(e) technical specifications;

(d) contract terms and conditions offered by the Unit;

(c) criteria and methods for selecting qualified tenders;

(b) instructions to tender;

(a) requirements for tenderers;

(5)Tenderdocumentsshallincludeallinformationrequiredfortendererstosubmita

satisfactory tender including, but not limited to:

(4)TheUnitshallpreparetenderdocumentstenderdocuments,includingcontract

documents,basedonnationaltemplatesandotherprocedureandmethodologyrelatedto the tender process as stipulated in instructions and guidance issued by PPAD.

(3)TheUnitshallindicatetwo-stageopentenderingintheinvitationtotenderand

tender documents.

 



 

 

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(f) the deadline for tender submission and the place,

date and time of tender opening;

(e) special requirements of the tender;

(d) the cost of the tender document;

(c) the address at which tender documents and other

information are available and to which tenders are to be submitted;

(b) a brief summary of the works, goods or services to

be procured;

(a) the identity ofthe Unit;

(5) The invitation to tender shall provide the following information:

(4)TheUnitshallpostinvitationstotenderwhosevalueexceedsthethresholdvalueset

out in Schedule 1 in the national press or mass media and on the web-based Tender

Notice Board maintained by the Ministry and other bodies as set out in regulation 3(2).

(3)Theinvitationtotendershallbepublishedthroughthemassmediaineitherofthe

officiallanguages,forworks,goodsorserviceswithacostestimateexceedingthefigure stipulated in Schedule 1.

(2)TheUnitshallannouncedetailedinformationconcerningthetenderopenlyand

transparently and provide this toany interested body without delay.

22.(1)TheUnitshallmaketheinvitationtotenderavailablepubliclythroughthemass

media and on the web-page. The date of dispatch for publication shall be the issue date.

Public announcement of invitationsto tender

(b)the winning tenderer fails toprovide the bank guarantee

for performing the contract within the time specified to accept the contract or the tenderer refuses tosign the contract.

(a)a tenderer withdraws its tender after the tender opening,

or

(7) The tender security shall be redeemable by the Unit where-

(6)ThetendersecurityshallceasetohaveeffectaftertheUnitsignsacontractwith

the winning tenderer.

 



 

 

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Deadline for submission and validity period of tenders

(2)  Tenderers  shall  be  invited  to  complete  their  tenders  in  either  of  the  official

languages,incaseswhereSesotholanguagedoesnothavesufficienttechnicalterms, tenderers may use English phrases or words.

24.(1)Thetenderdocumentsandinvitationtotendershallbepreparedineitherofthe

officiallanguages,incaseswhereSesothodoesnothavetechnicaltermstoconveythe requirement accurately, then English can be used in place of a Sesotho text.

Language of tender documents

(5)Theadditionalinformationorclarificationshallbeconsideredasdelivered4

working days after its submission to the post office.

(4)TheUnitshallprovideinwritingtoallinterestedpartieswhohaveboughtor

securedthetenderdocuments,theadditionalinformationorclarificationtogetherwitha copy of a request of the additional information orclarification.

(3)Additionalinformationorclarificationsofthetenderdocumentsmayberequested

from  the  Unit  in  writing  by  tenderers  at  least  6  working  days  prior  to  the  tender submission deadline.

(2)Tenderersandmembersofthepublicmaydownloadtenderdocumentsfreeof

charge fromthe internet.

23.(1)TheUnitshallmakehardcopiesofthetenderavailabletothepublicandtenderers

at a price for the cost of producing the documents.

Tender documents and provision of related information

(j) the anticipated date by which bids will be evaluated

and the contract awarded.

(i) the procedure for granting a margin of preference;

and

(h) a statement that foreign tenderers and licencees are

invited to compete;

(g) the required validity period ofthe tenders;

 



 

 

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(a) tenderers’ names;

(3)Attheopeningoftenders,theTenderPanelshallannounceandmakearelevant

record of the procurement in respect of -

(2)Tenderersortheirrepresentatives,orothersinterestedbodiesareentitledtoattend

the tender opening.

27.(1)TheTenderPanelshallpubliclyopenalltendersreceived,immediatelyafterthe

fixed deadline for submission of tenders.

Opening tenders

(4)  Information  related  to  the  technical,  price  and  other  content  of  tenders,  the

evaluationoftendersandthequalification of tenderers’capacityshallremainconfidential until a contract is signed.

(3)Anytenderreceivedafterthedeadlineornotsubmittedintheformatspecifiedin

thetenderdocumentsshallberejectedandreturnedtothetendererattheaddressstated on the tender documents.

(2) Tenderers may withdraw or modify their bids within the fixed deadline.

26.(1)Tenderersshallsubmittheirtendersorrevisionstotenderswithinthefixed

deadline, at the stated address, and inthe formspecified in the tender documents.

Submission of tenders

(5)TheUnitshallsetthetimeframeforevaluatingtendersafterthetenderopening,

the time shall be specified in the invitation to tender and tender documents.

(4)TheUnitshall,ifitisrequiredtomakeasitevisitfortenderpreparation,thetime

necessary for the visit be included in the deadline timeframe.

(3)TheUnitshallsettheperiodofvalidityoftendersandensurethatthetender

remainvalidfortheperiodof30workingdaysafterthesetdateforcompletionof evaluation and announcement of contract award.

(2)TheUnitshalldeterminethesubmissiondeadlineoftendersstartingfromtheday

tendersareissued,thedeadlineshallbeaminimumof30workingdaysfromthedateof initialannouncement.

25.(1)TheUnitshallprovidealltendererswithsufficientandequaltimetoprepareand

submit their tenders.

 



 

 

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(c) other terms, conditions and requirements set out in the

tender documentsincluding the provision of mandatory documents such as tender security, tax certificates and the completed Certificate of Bona Fide Tendering.

(b) technical specifications; and

(a) capacity qualifications set by the Unit;

28.(1)Followingtheopeningoftenders,individualtendersshallbereviewedbythe

Unit, to check whether they satisfy the following requirements:

Reviewof tenders

(8)TheUnitshallmakeandkeepsafeawrittenrecordoftheexplanatorynotes

provided from tenderers.

(7)TheUnitmayrequestatenderertoprovideexplanatorynotesinwritingonissues

relatingtothetenderbutisprohibitedfromrequestingoracceptingchangestothe content or tendered price.

(6)Followingtheopeningoftenders,theUnitshallnotenterintonegotiationswith

tenderers on the content of thetender and the tendered price.

(5)Anytenderedprices,pricediscount,alternativetenderedpricesorpricestructure

offeredandnotannouncedattheopeningoftendersshallnotbeconsideredintender evaluation.

(4) the Unit shall sign the notes in26(3) make it available to any interested party.

(g) any changes to the tender or revised tender.

(f) whether the tender security and other mandatory

documents required by the invitation to tender were submitted ornot; and

(e) price discounts offered;

(d) the overall price;

(c) the alternative tender prices if alternatives have been

permitted;

(b) the tenderedprices;

 



 

 

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(g) other criteriaconsistent with these Regulations.

(f) the risk involved and the costs of managing them; or

(e) quality and technical merits of works, goods and

services;

(d) commitments to supply spare parts and their price;

(c) after-sales service and technical assistance;

(b) current expenses or cost and efficiency estimations;

(a) the time of completion of works and services or delivery

of goods;

(6)Thefactorswhichaffecttheoveralleconomy,efficiencyandeffectivenessofthe

goods,worksorservicesbeingprocuredandareexpressedinmonetarytermsshallbethe following:

(5)TheUnitshallselectappropriatefactorstobetakenintoaccountinevaluatingthe

whole life costs of the overall tender as opposed to theinitial cost of purchase.

(4)Thekeycriterioninevaluatingapparentlycomplianttendersshallbethetendered

price.

(3)Wheretherevisedprojecteddateisoutsidethevalidityperiodofthetender,the

tenderer shall extend the validity date accordingly.

(2)WheretheUnitisunabletomeetthesetdate,allapparentlycomplianttendedrers

shallbeinformedinwritingbytheUnitoftherevisedprojecteddateandbeaskedto confirmthat their tender,and where appropriate their tender security, is still valid.

29.(1)TheUnitshallensurethattheevaluationoftendersiscompletedwithinthe

specified date.

Evaluation of tenders

(4)TheUnitshallinformtendererswhosetendershavebeenrejected,bywriting

within 10 working days of the date of rejection.

(3)Tenderswhichdonotmeettherequirementssetoutintheinvitationtendershall

be rejected by the Unit.

(2)Atendershallbeconsideredasapparentlycomplianttenderwhenitappearsat

tender review to satisfythe specified conditions.

 



 

 

20

(b) for each technical proposal that satisfies the

requirements specified, discussions shall be held with a given tenderer in order to prepare a standard technical specification thatbetter satisfies the

(a) technical proposalsshall be reviewedtochecktheir

responsiveness to the requirements;

(12)Intwo-stageopentendering,evaluationoftendersshallbecarriedoutinthe

following manner:

(11)Thetenderevaluationshallconsidertheimpactsoftheuseofforeigncurrency,

wherethisisquotedbythetenderer.Andwherethetendererquotesaforeigncurrency not specified in the tender document for payments and settlements, the currency shall be convertedat the CentralBank of Lesotho rate effective on the date tenders are due for return.

(c) all tenders ordered fromthe lowest to the highest taking

into account whole life costs and the best long term value for money.

(b) tender document providing for a margin of preference,

the comparison price of a tenderer eligible to a margin of preference shall be adjusted to include the percentage in the Granting ofa Margin ofPreference to Tenderers;or

(a) adjusting an arithmetical error or small amount of

discrepancy in the tendered in the tendered price, or reducing thetendered price subject to the price discount, the corresponding estimations shall be shown

in monetary terms, and the tender evaluation price shall be determined by adding themto the tendered price;

(10) Apparently compliant tenders shall be evaluated by-

(9)TheUnitshallconsiderthecostsin28(8)tobeincludedinthetenderedpriceif

they are not especially identified and costed in the tender.

(8)Thetenderedpriceshallincludetaxes,insurance,transportationandallother

expenses,includingtollsandborderlevies,associatedwiththeexecutionofthecontract unless the tender documentsprovide otherwise.

(7)Theadditionalevaluationisundertakenonlyforthepurposeofcomparingtenders

and shall not be a justificationfor changing the tendered prices.

 



 

 

21

(6)WheretheUnitdecidesnottoacceptthelowestquotationunderScheduleIitem

1(b), the Tender Panel shall take a decision.

(5)WheretheUnitdecidestogoforthelowestquotationunderScheduleIitem1(b),

the chief accounting officer shall approve the decision taken by the Unit.

(4)Wherethetendererwhohassubmittedthemostfavourabletenderdoesnotwish

toenterinto acontract,thetenderer’stendersecurityshallbeforfeitedandtheUnitshall annul the invitation to contract and invite the second most favourable tenderer, in the absenceofsuchatenderer,theUnitshallmakeanyofthedecisionsspecifiedinwriting aspartoftheevaluationreport.Intheeventthatthereisnosecondmostfavourable tender,theUnitshallseekpermissionfrom PPADtoadoptthedirectcontractingmethod of procurement.

(3)TheUnitandthetendererwiththemostfavourabletendershallsignthecontract

within15 workingdaysfollowingthenotificationoftheinvitationtocontractand within the tender validity period, operation of the contract shall not come into force until 15 working days after the notice ofcontract award has been made.

(2)TheremainingtenderersshallbeadvisedinwritingbytheUnitthatthetenderer

who submitted the most favourable tender hasbeen invited to enterinto a contract.

30.(1)TheUnitshallinvitethetendererwhohassatisfiedtherequirementsspecifiedand

submitted the most favourable tender to enter into a contract.

Awarding of contract

(13)  Where  the  tenderer  considers  that  it  is  impossible  to  revise  its  tender  in

accordancewiththestandardtechnicalproposal,theUnithastherighttorejectthe tender.

(e) the Unit shall evaluate andopen publicly on the fixed

date, financial proposals, and the tenderer with the most favourable tender shall be invited to sign a contract.

(d) the tenderer may conduct an additional review of its

technical proposal to comply with the standard technical specification and submit the updated version along with a financial proposal; and

(c) after the discussions, the Unit shall issue a standard

technical specification;

requirements;

 



 

 

22

(3)Thedebriefingteamshalladvisesuccessfultenderersofanyareaswheretheir

tender was not as strong as it might have been and where they can improve for the future.

(2)Thedebriefingshallbecarriedoutatbyateamheadedbyarepresentativefrom

the Unit, with specialist staff as necessary.

32.  (1)  The  Unit  shall  offer  unsuccessful  tenderers  and  the  winning  tenderer  the

opportunityofadebriefing,thisoffershallbemadewhenthecontractisplacedwiththe successful tenderer and unsuccessful tenderers are advised of their lack of success.

De-briefing tenderers

(c ) non-competitive contracting shall take place where

all tenders have been rejected.

(b) where the tender process failed only as a result ofthe

quantity and the scope of goods, works or services to be procured, a limited tender shall be carried out after making relevant modifications to the tender document; or

(a) examine the reasons that resulted in thefailure ofthe

tender process, and the conduct an open tender after making relevant amendments to the content of the tender document;

(2) The Unit shall,where it has rejected all tenders, make the following decisions:

(c) the procurement process has failed.

(b) tendered prices ofall responsive tenders exceeded the

Unit’s cost estimate by more than 15 percent; or

(a) all tenders that were submitted are non-compliant;

31. (1) The Unit shall reject all tenders where-

Rejection of tenders

 



 

 

23

(3)   The   tender   document   shall   be   provided   to   interested   tenderers   without

unreasonable delay.

(2) In carryingoutalimited tender, the Unit shall simultaneously send an invitation to

tendertoallfirmswithcapacitytoformthecontractandtherebyprovidinganequal opportunity to submit a tender.

(c) there must be convincing and accurate reasons in

(a) and (b) for competition to be avoided.

(b) the requirement can only be secured fromthe

single source, this may

be due to ownership of exclusive design rights or patents;

(a) the number of bodies capable of executing

complicated goods, works or services requiring high qualification, expertise, equipment and technology is limited;

34. (1) Limited tendering shall beapplied in the following cases:

Limited tendering

(2)Matterspertainingtotheexceptionalprocurementprocedurebutnotregulated

underthispartshallbegovernedbytheappropriatearticlesandprovisionssetoutinPart

III of these Regulations

(c) non-competitive procurement.

(b) comparison; or

(a) limited tendering;

33. (1) Exceptional procurement procedures shall be carried out in the following ways:

Applicationof the exceptional procurement procedure

PART V – EXCEPTIONAL PROCUREMENT PROCEDURES

(4)Thedebriefingteamshalladviseunsuccessfultenderersofthereasonsfortheir

lack  of  success  in  broad  and  constructive  terms,  whilst  maintainingthe  commercial confidentiality of other tenderers.

 



 

 

24

(b) additional supplies do not exceed 20 percent of the

value of the initial contract, and thereis a justified

(a) patents and intellectual property rights where a

contract can only be signed with one body;

36.(1)Non-competitivecontractingmayonlybeusedinthefollowingcasesirrespective

of the estimated value of goods, works or services:

Non-competitive contracting method

(7)Wherethere-tenderingdoesnotresultinthereceiptofanadequatenumberof

tenders to make comparison, the non-competitive procurement procedure may be applied.

(6)Whereinsufficienttenderswerereceivedtoallowcomparison,theUnitshall

repeat the competitive process, inviting a further 3 or more businesses to compete.

(5)Thetime-frameforsubmissionofthepriceproposalshallbenolessthan10

working days fromthe date of dispatch of the tender.

(b) the tenderer who satisfied the technical and other

conditions and requirements and quoted the lowest price to sign the contract.

(a) 3 or more businesses that satisfy the technical

specification and other conditions and requirements to submit their price proposals, or

(4) The Unit shall apply the comparison procedure by inviting-

(3)Thecomparisonproceduremaybeusedwherethecostestimateofthegoods,

works or services does not exceed the threshold values specified in Schedule 1.

(2)TheUnitshalldocumentpricesfromdifferentcontractorstoshowthatatrueand

honest comparison and reason for placement of the contract has been made.

35.(1)Thecomparisonmethodshallselectacontractorbycomparingknowpricesfor

lowvalueproductsandservicesanddirectlyplacessuchacontractwiththecontractor offering the most economic advantages to the Unit.

Limited method

(4)Thetendersubmissiondeadlineshallbesettoaminimumof30workingdays

following the 4 days after the invitation to tender has been posted.

 



 

 

25

(c)amount and terms of performance guarantee;

(b)payment terms and conditions;

(a)contract price;

(2) The procurement contract shall contain the following items:

37.(1)ThetechnicalandcommercialrequirementsoftheInvitationtoTenderandthe

winning tender shall form the basis of the procurement contract.

Procurement contract for goods, works or services

PART 1V-PROCUREMENT OF GOODS, WORKS AND SERVICES

(3)Wherenon-competitiveprocurementhasbeenused,acopyofthecontractanda

statement justifying the application ofthe procedure shall be sentby the Unit to PPAD.

(2)  When  using  non-competitive  procurement  in  accordance  with  the  specified

conditions, and when the non-competitive tender is in part unacceptable, the Unit may enter into negotiations with the tenderer in order to agree on a contract thatis acceptable, and the agreement reached during negotiations shall be included in the formal contract.

(d) it is impossible to adhere to the tender submission

deadline pursuant to the open and limited procurement procedure as a result of unforeseeable circumstances such as a national emergency.

(c) the cost of additional works does not exceed

15 percent of the value ofthe initial contract and the comparison threshold price, and it was considered

by the Unit that repeating the competitive tender process would not result in betterproposals for the additional or similar works procured through the tender process; or

and genuine need to replace, repair and make

additionalsupplies of some parts of the goods and equipmentprovided under the initial contract, and should the Unit change the supplier such a change leads to procurement of supplies with different technical specifications, which cause undue technical difficulty in theapplication and maintenance or incur cost-inefficiency;

 



 

 

26

(c)TheUnitenteredintothecontractbreachingtheprocedures

set out under these Regulations.

(b)TheUnitenteredintothecontractwithouttheapprovalof

the chief accounting officer; or

(a)the  contract  shall  have  been  entered  into  breaching  the

elements of the law of  contracts;

39.(1)Theprocurementprocessshallberegardedinvalidandthesubsequentcontract

void or voidable in the following cases:

Invalid and voidable contracts

(3)Thecontractorisprohibitedfromtransferringtheircontractualobligationstoa

third party except when provided for in the contract.

(2)AmendmentstotheprocurementcontractmaybemadebytheUnitonly,with

prior agreement of the contractor.

(b)increasing  the  contract  price  except  where  this  has  been

allowed for in the contract terms and conditions.

(a)changingcontractualconditionsrelatingtothecontentofthe

tender  except  when  it  is  necessary  due  to  unforeseeable circumstances; or

38. (1) The amendmentsto the procurement contract are prohibited where-

Prohibitingamendments in the procurementscontract

(3)  Standard  terms  and  Conditions  for  Government  Contracts  shall  apply  to  all

procurement contracts.

(g)conditions and methodology of price adjustment.

(f)schedule  ofexecution  of  works  and  services  or  supply  of

goods; or

(e)terms and conditions of contract;

project

administration    and

contract

for

(d)arrangements

management;

 



 

 

27

Milestone payments

(5)Thecontractormayguaranteeitsspecifiedobligationswithaguaranteefroma

bank or a financial institution acceptable to the Unit.

(4)Theperformanceguaranteeremainsvaliduntilthecompletionoftheworksor

servicesorthedeliveryofgoodsinaccordancewiththecontractrequirementsanduntil the completion or delivery has been signed off by the appropriate signatory.

(3)  Tenderers  shall  be  required  to  provide  evidence  in  their  tender  that  such  a

guarantee will be provided.

(2)TheUnitshallstateinthetenderdocumentstherequirementforaperformance

guarantee and shall set the amount required.

41.(1)TheUnitmayrequirethewinningtenderertofurnishaperformanceguarantee

prior to entering into a contract.

Performance guarantee

(3)ContractterminationmayresultintheGovernmentrequiringpaymentofpre-

agreedamountof liquidateddamages thatdirectly relate to the actualdysfunctionaleffect of thetermination of the contract, buttheGovernmentshallnotimposepenalty payments upon suppliers that are punitive.

(2)Abreachofanessentialconditionofcontractwillallowthepartynotinbreachto

terminate the contract.

(c)the  Government  exercises  its  right  under  the  contract’s

‘Break’ClauseorthereisachangeintheGovernment policy.

(b)the contractor is bankrupt or liquidated; or

(a)thecontractorhasfailedtodeliverthegoods,worksor

services in accordance with the contract terms;

40. (1) The Unit may cancel a procurement contract under the following circumstances:

Contract termination

 



 

 

28

(b)Most  economically  advantageous  bid  or  most  favourable

tenderer,inthiscaseatechnical,afinancial,acommercial

(a)the lowest price where the specification not capable of being

varied in any form;

45.(1)Evaluationofconsultantsshallbeentirelyconsistentwithpre-selectedaward

criteria that are targeted onselection by judgement based on-

Evaluation methods for selecting consultants

(d)repliesfromcontractnoticesthathavebeenplacedinthe

Governments’ Contract Bulletin, wheretheprocurementis above the Governments’ threshold for advertising in the Contract Bulletin, then only consultants replying to an advertised procurement can be considered.

(c)the Governments’ supplier database; or

(b)experience of previous procurements;

(a)the Units’ experience ina particular market;

44. (1) Candidates for a tender list may be drawn from-

General procedure of selecting consultants

(2)ContractsenteredintobetweentheGovernmentandconsultantsshallbegoverned

by these Regulations and the commonlaw governing the law of contract.

43.  (1)  Consultants  whether  individuals  or  corporate  bodies  may  contract  with  the

Government.

Selecting consultants

PART IIV – PROCUREMENT OF CONSULTING SERVICES

(b) time lapsed in phases nominated within the contact.

(a) the attainment ofspecifically nominated satisfactory

completions within the contracts’ programme; or

42.(1)Paymentsmaybemadeunderthecontractontheachievementofcertainpre-

agreedstagesormilestones,duringthelifeoftheproposedcontract,suchmilestonesmay be based on-

 



 

 

29

(2)  Tenders  shall  be  marked  separately  by  distinct  panels  marking  quality  and

financialaspectsoftheconsultants,scoresforthetwoaspectsshallbepredeterminedand not varied and only the qualitative will be marked.

47.(1)Themethodforevaluatingthequalityshallbeentirelyconsistentwithpre-

selectedawardcriteriatargetedonascoredselectionbasedoncombiningscoressecured in respect ofindependently marked financial and quality scores.

Combinedevaluation method

(f)theabsenceofanyqualificationinthetenderortothe

standard terms and conditions of Government.

(e)theabilityandacceptabilityoftheindividualsnominatedto

carry out the requirement of the Government; or

(d)the  offered  solutions  practicability  and  deliverability  to

meet the requirement of the Government;

(c)therelevantexperienceoftheproposalofferedtomeetthe

requirement of the Government;

(b)theexpertiserequiredtocompletetherequirementofthe

Government;

(a)technical understanding of the Governments’ requirement;

46.(1)Themethodforevaluationofqualityshallbeconsistentwithpre-selectedaward

targeted on a scored selection based on-

Quality evaluation method for selecting consultants

(c)Themostfavourabletenderertenderstheprocessofmaking

assessmentsmaybesplitbetweenevaluationof qualitative, commercial and financial, and then combined to give an overall level of acceptability.

assessmentandaconsiderationoflongertermimplications

shallbecarriedoutby the evaluationpanel.Formost favourable tenderer tenders, a scoring or a marking schedule shallbepreparedbeforetenderopeningandthis shallnotbe varied in any way including in scope or in application between the consultants under consideration; or

 



 

 

30

(2)ThefunctionsoftheEvaluationTeamshallbetoexamineandevaluatetenders,

prepareanevaluationreportandmakerecommendationstotheTenderPanelonawardof contract.

49.(1)TheEvaluationTeamshallbeanon-standingcommitteewhosemembersshallbe

drawn fromthe Unit, finance unit and relevant technical and specialist users.

Evaluation Team

writing and shall make andmaintain arecord of those communications.

shall  make  all  communications  related  to  the  procurement  only  in

(2)  The  Unit

(h)not  to  make  amendments  to  the  contract  except  in

specified cases.

(g)review the performance ofcontractual obligations; or

(f)initiatetheprocurementprocessoncefundsforfinancing

goods, works and services are allocated;

(e)effectivelyplanandorganizetheprocurementofgoods,

works or services within the estimated budget;

(d)finalisetheissueandsigningofacontractsubjecttothe

decision of the Tender Panel;

(c)oversee  the  respective  compliance  of  the  Evaluation

Teams’  and  Tender  Panels’  operations  and  evaluation reports and take measure to nullify violations;

(b)set up a Tender Panel;

(a)set up an Evaluation Team;

48.(1)ThefunctionsoftheUnitwithrespecttotheprocurementofgoods,worksand

services are to:

Organizingprocurement

PART IIIV – MANAGING PROCUREMENT

(3)Consultantsthatdonotmeetthequalitativerequirementsshallnotbeselectedfor

acontract,thefinancialscoreshallnotbe consideredormarked.Tendererspassingthe qualitativescorerequirementwillthenfinanciallyscoreand willbeselectedwhenthe combined score for qualitative and financialaspects offers the most attractive tender.

 



 

 

31

(3) The functions of the Tender Panel shall be to-

(c)members

(b)a secretary; and

(a)a chairperson;

(2) The Tender Panel shall consist of-

50. (1) A chief accounting officer shall establish a Tender Panel.

Tender Panel

(7)AllEvaluationTeammembersshallsigntheevaluationreport,majorityviews

shall be similarly evidenced and attached to the majority evaluation report.

(6)AnevaluationreportfromtheEvaluationTeamtotheTenderPanelshallbemade

inthe formof theminutesof the evaluationmeetingandincludefulldetailsof the evaluationagainstthecriteriapublished with theinvitationto tender,reasonsforrejecting anyoralltenders,recommendationsapprovedbythemajority ofthemembersofthe Evaluation Team, their rationale and all relevant and supporting information.

(5)Incasesofopentenderingwheretheidentityoftendererswillnotbeknownuntil

tendershavebeenreceivedandopened,membershipoftheEvaluationTeamshallnotbe terminated until tenderers are identified and conflict ofinterests is resolved.

(4)WherethereisaconflictofinterestafteranEvaluationTeammemberhasbeen

nominated,itisarequirementandresponsibilityofthatmembertowithdrawfromthe

Evaluation Teamand give reasonsin writing to the Unit.

(d) beeninbreachoftheCodeofConductassetoutinthe Public Service Act 20052and other relevant codes of conduct.

(c)been  employed  by,  or  have  been  an  employee  of  the

tenderer in the last 3 years; or

(b)family relations with tenderers and their representatives;

representatives;

their

and

tenderers

with

relationship

business

(a)a

(3) Officials appointed tothe Evaluation Teamshall not have-

 



 

 

32

(f)withdrawal fromthe tender;

(e)modifications;

(d)price discounts offered;

(c)the  alternative  tender  price  where  alternatives  are

permitted;

(b)the tender price;

(a)the nameof the tenderer;

(8)Onthedateforthereturnoftenders,theTenderPanelshallopentheTenderBox

inwhichtendershavebeenstoredsecurelyandshallopeneachtenderdueonthatdate and time, for each tender receivedthe Tender Panel shall announce-

(7)  The  Tender  Panel  shall  maintain  an  Irregularity  Book  that  records  all  price

alterationsontendersdealtwithorunusualincidentsthatarisewhilsttheTenderPanelis in session.

(c)tendersconsideredapparently non-compliant.

(b)details ofall late tenders received; and

(a)thenumberoftendersreceivedagainsteachInvitation

to Tender;

(6)TheTenderPanelshallmakearecordofproceedingsofeachpublicopening

which shows-

(5)TheproceedingsoftheTenderPanelareopentopublicandareamatterofpublic

record, and shall be made available upon request to any interested party.

(4)ThePanelshallconveneontheduedateandtimeandinaplacesetoutinthe

Invitation to Tender.

(c)considerthereportandrecommendationsmadeby

theEvaluationTeamandtodecidewhichtenderer shall be awarded the procurement contract.

(b)submit    tenders    to    the    Evaluation    Team    for

evaluation;and

(a)open publicly tenders received;

 



 

 

33

(f)the Government is achieving value for money.

(e)thedecisioncanwithstandanychallengeofanti-

competitivebehaviourormisuseofpublicfunds;

and

(d)thedecisionisabletostandscrutinybytheaudit

authorities,thebusinesscommunityandthepublic in general;

(c)nosubjectivejudgementorconflictofinterestare

brought to bear on the decision;

(b)theawardoftheprocurementcontractisstrictlyin

accordancewithobjectiveevaluationcriteriaasset out in the Invitation to Tender;

(a)the  competitive  process  has  been  followed  in

accordance with these Regulations;

(13) The Tender Panel shall ensure that-

(12)TheTenderPanelshallconvenetoconsiderthereportandrecommendationasto

the award ofthe procurement contract as made by the Evaluation Team.

(11)TheTenderPanelshallpassalltendersopenedonthatdaytotheUnitforthe

appropriateaction.

(10)TheTenderPanelshallopentheouterenvelopeoftendersdueontheprevious

dayinordertoestablishtheidentityofthetendererwhichshallbeannounced,detailsof the late tenders shall be inserted in the record of proceedings as ‘Rejected-Late Tender’.

(9) The TenderPanelshallnotcommentonorpassopinionontheacceptabilityofthe

mandatory documents.

(h)thepresenceorabsenceofthemandatorydocuments

required by the Invitation to Tender, these documents shall include but not limited to tender security, tax certificatesandthecompleted CertificateofBonaFide Tendering.

(g)any changes to the tender or revised tender; or

 



 

 

34

(2) The tender file shall consist of the following documents and materials:

52.(1)TheUnitshallcompileandmaintainafileforeachprocurementtenderandensure

its safe keeping in a registry or archive unit.

Maintaining procurement records

(4)TheUnitshalldisclosetheprocurementplanpubliclythroughthemassmedia

within a month after receiving budgetary approval for carrying out the plan.

(3)ThePrincipalSecretaryhastheultimateresponsibilitytoapprovetheUnits’

procurement plan and oversee the execution.

(2)  Once  the  Ministry  receives  budgetary  approval,  the  Principal  Secretary  shall

finalise the procurement plan of goods, works orservices in linewith budget allocation.

51.(1)TheUnitshallformulatetheprocurementplanforgoods,works,servicesand

consultingservicesforagivenfinancialyearandsubmitittotheMinistertobepartof the Ministry’s budget approval process.

Annual procurement planning

(19)TheTenderPanelshallmakefullaccountofitsproceedingsandtheaccountbea

matter of public record.

(18) At thestartoftheTenderPanelproceedingstodecideacontractaward,members

of theTenderPanelshallbe requiredtocompleteand signaConflictof Interest DeclarationstatingthattheydonothaveanyinterestintheTenderPanels’decisionon the contract award.

(17)Theindependentobservershalltakenopartintheproceedingsandhaveno

voting rights.

(16)Theindependentobservershallbepresenttoassurethebusinesscommunitythat

thedecisionoftheTenderPanelismadeaccordingtotheseRegulationsandtothe

Standing Instructions.

(15)Theprocedureforselectinganindependentobservershallbeagreedbetween

PPAD and the business community and shall be promulgated.

(14) Whenever requestedbythebusinesscommunity,arepresentativeshallbeinvited

toattendasanindependentobserverwhentheTenderPanelissittinginrespectofthe contract award.

 



 

 

35

(6)WhenCabinethasseenanddiscussedtheconsolidatedreport,itshallbemade

available publicly through the mass media and on the procurement web-page.

(5)PPADshallconsolidateprocurementreportsubmittedbythePrincipalSecretary

andthisinformationshallbereportedtocabinetbytheMinisterinthefirstquarterofthe following year.

(4)TheUnitshallsubmitannuallytothePrincipalSecretaryareportonprocurement

ofgoods,worksandservicesinagivenyear,thisinformationshallbeforwardedto

PPAD at the time and in the format required by the PPAD.

(3)Documentsandmaterialin51(2)shallbemadeavailableonjustifiablerequestto

PPAD and legal and supervision authorities including audit.

managementand handover of goods, works and services.

project

and

contract

to

related

documents

(k)All

(j)  All other documents related to a given tender; and

(i)  The  decision  to  enter  into  a  contract  including  the

applicationofanypreferencesandthecompletecontract document;

(h)Thereasonforthefailureofthetenderprocessorwhere

all tenders have been rejected;

(g)Tendersrejectedasbeingnon-compliantandthereasons

for such rejection;

(f)minutes  of  the  tender  opening,  the  evaluation  report

includingtheoutcomeofdiscussionwithtenderersand recommendations to enter into a contract.

(e)tenderssubmitted;

(d)all correspondence betweenthe Unit and tenderer;

(c)a  brief  description  of  goods,  works  or  services  to  be

procured  and  a  copy  of  all  the  tender  documents including technical specification;

(b)therationaleforapplyingagivenmethodotherthanthe

open procurement procedure;

(a)the  rational  and  approval  for  the  chosen  method  of

procurement;

 



 

 

36

(8) PPAD shall-

(7) PPAD may require clarifications and additional information from the applicant.

(e)processing  applications  for  registration  within  one

colander month of receipt by the authority.

(d)updatingtheapprovedsupplierslistwithamendments

upon request fromregistered bodies; or

(c)makingtheapprovedsupplierslistavailablepublicly

and accessible to all;

registration;

for

apply

who

bodies

for

conditions

(b)equal

(a)suppliers who meet the qualification criteria;

(6) PPAD shall maintain the register in accordance with the following:

(5)TheUnitmayobtaininformationaboutfirmsandindividualsontheapproved

suppliers register.

(4)Theregistrationstatusofbodiesinterestedintenderingshallnotpreventtheir

rights to participate in the tender process.

(3)Alegalentityoranindividualmayapplyforregistration,eitherthroughtheUnit

ordirectlytoPPADbysubmittingtherequest,personallyorthrougharepresentative along with information on the type of operations, capability and expertise, at any time.

(2)PPADshallprovideastandardnationalapplicationformforregistrationonthe

approvedsupplierslist,applicationsforregistrationshallnotbeconsideredunlessthey aresubmittedusingthestandardform availablefrom PPAD,theUnitandonthe procurementweb-page.Applications forregistrationmaybesubmittedinwritingor by electronic means.

53.(1)Forthepurposeofexpandingthescopeoftenderers,facilitatingcompetitionand

providinginformationto theUnit,PPADshallliaisewiththe Unitandmaintainaregister andestablishadatabaseof legalentitiesandindividualsinterestedin participatingin Governmentprocurement which shall be referred to as ‘approved suppliers list’.

Registration of suppliers

 



 

 

37

(6)  Where  it  is  decided  to  continuethe  tender  process,  the  justification  andthe

decisiontocontinuetoplacethecontractshallbeprovidedinwritingtothecomplainant at least 5 working days prior to the time the decision comes into force, the decision shall be made available publicly through the mass media and on the procurement web-page.

(5)TheUnitshallnotenterintoacontractinrespectofthetenderinquestionafter

receivingacomplaintanduntilsuchtimeasthecomplaintisresolved, eitherthrougha decisionbytheUnitorwheresuchadecisionisunacceptabletothecomplainantthrough adecisionbytheAppealsPanel,exceptwheresuspension ofthetenderprocesswouldbe againstthepublicinterest,theMinistershallbethearbiterofwhetherthetenderprocess is in the public interest.

(4)TheUnitshallreviewandmakeadecisiononthecomplaintin10workingdays

afterthesubmissionofthecomplaint,where thecomplaintisnotacceptedasvalid,the decisionshallstatethejustificationfor non-acceptance,but,wherethecomplaintis accepted as valid, the decision shall state how the complaint will be rectified.

(3)Failureofthenotifiedtendererstoparticipateinthecomplaintproceedingswill

prevent  the  tenderers  from  bringing  further  complaints  concerning  the  same  subject matter.

(2)TheUnitshallnotifyalltenderersaboutthenatureofthecomplaintandinvite

tendererswhoseinterestmightbeaffectedbyarespectivedecision,tothecomplaint proceedings.

54.(1)Atenderer,atradeassociation,anauditoroftheGovernmentoranygroupwitha

legitimateinterestintheobjectof the contractmaysubmitawrittencomplainttotheUnit notbeyond3calendarmonthsfollowingthe dateofcontractaward,anysupporting evidence shall be enclosed with the complaint.

Submittingcomplaints to the Unit

PART XI - SETTLEMENT OF DISPUTES

(9)WherePPADrejectsarequestforregistrationoramendmentforregistrationon

theapprovedsupplierslist,PPADshallinformtheapplicantinwritingwithin10working days of its decision and provide justification for the decision.

(b)announcethecriteriathroughmassmediaandonthe

procurement web-page.

(a)definethequalificationcriteriaforregistrationofthe

approved suppliers list, and

 



 

 

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(4)PPADshallseekanopinionfromtheindependentAppealsPanelforreviewing

thecomplaintrelatedtothetenderprocessauthorizedforcontracting,thedecisionof

PPAD shall be based on the Appeals Panel opinion.

(c)the  suspension  would  cause  significant  loss  to  the

Governmentor other tenderers.

(b)thedecisionsaretobesuspended,tenderersmayincur

significant losses; or

(a)arulinginfavourofthecomplainants’interestismore

justifiable;

(3)Untilarulingisissuedforthecomplainant,PPADmayissueadecisionto

temporarilysuspendtheimplementationoftheUnits’decisionoractioninthefollowing cases:

(c)instructtheUnittocarryoutthetenderprocessafterthe

breaches are rectified.

(b)declare  which  provision  of  these  Regulations  should

apply in a given case; or

(a)nullifyormodifyillicitactionsordecisionsoftheUnit

wholly or partially;

(2)PPADshallconsideracomplaintandissuethefollowingdecisionswhereit

considers that the Unit breached these Regulations:

(c)theUnitenteredintoacontractbeforeitsdecisiononthe

complainant,  unless  not  entering  into  the  contract  is against the public interest.

(b)theUnitdidnotissueadecisionwithinthe   specified

time, or

(a)thecomplainantdoesnotagreewiththedecisionofthe

Unit,

55. (1)   The complainant may appeal to the PPAD within 5 working days where-

Complaints regarding the Units’ decision

(7)AnyfurtherredressshallbepursuedthroughtheAppealsPanelorthroughthe

Courts of Law.

 



 

 

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(c)office furniture and equipment; or

(b)vehicles;

(a)plant and machinery;

57.(1)Ministriesandallpublicaccountablebodiesshallkeepunderreviewholdingsof

fixed assets including:

Reviewof assets held

PART XI- DISPOSALPROCEDURES

(2)ComplaintsrelatedtothetendershallonlybelodgedwiththeCourtsofLawafter

a contract has been signed.

(b)Thecomplainantisnotsatisfiedwiththerulingofthe

Appeals Panel.

(a)Appeals  Panel  did  not  make  a  ruling  within  the

specified time; and

56. (1) The complainant may lodge a complaint to the Courts of Law where-

Lodging a complaint tothe courts

(6)TheoperationalproceduresoftheAppealsPanelshallbeproducedbyPPADand

be promulgated through the mass media and on the web-page of the Ministry.

(c)thethreeexpertsshallnominateoneofthemtothe

chairperson.

(b)bothexpertsshallselectathirdexpert,wherethetwo

expertsdonotagreeonthechoiceofthethirdexpert, the Minister shall nominate the third expert; or

(a)the  complainant  and  the  Unit  shall  each  select  an

expert; and

(5)TheAppealsPanelshallcomprise3independentexpertswhoshallbeselected

accordingtothefollowingprocedureswithin5workingdaysfollowingthesubmissionof the complaint:

 



 

 

40

61.(1)Ministriesandpublicaccountablebodieswillconsiderapotentialtendererswith

particular abilities on area of expertise in handling the disposed off item.

(2)Tenderersshallberequiredtooffertruemarketvaluefortheassetbeingdisposed off and the use of known and recognized dealers.

Researching the market

(c)within commercial firms.

(b)within   other   Ministries   and   public   accountable

bodies;and

(a)withintheMinistryorthepublicaccountablebody

itself;

60.(1)Ministriesandallpublic accountablebodiesshallestablishwhereinterestexistsin

the following order:

Establishing interest and market interest

(3)Ministriesandallpublicaccountablebodiesinmakingadisposal,shallmakeit

clearthatgoodstobesoldareastheyarewithoutanyimpliedwarrantiesastoqualityor fitness for the purpose.

(2)Publicservantsinvolvedinestimatingadisposalvalueorareservepriceinan

auction, may not be involved in subsequent stages of the disposal in any way.

59.(1)Ministriesandallpublicaccountablebodiesshallinstallappropriatesystemsof

control over the disposal of assets.

Quality

(3)assetsthatareregardedaswasteshallbesoldontheopenmarketeitherby

competitive tender or by public auction.

(2)Considerationshallbegiventothenatureoftheitemstobedisposedoff,any

substancewhichisclassifiedasenvironmentallydamagingorhazardousmaynotbe disposed off other than through the mechanismsprescribed by law.

58.  (1)  Surpluses  may  be  disposed  off  promptly  and  within  the  law  and  ensuring

taxpayers best interests are protected.

Surplus items

(d)consumable stores.

 



 

 

41

(5)Whereabidderfailstosecureaniteminthepublicauction,thedepositshallbe

refundable to the bidder in full.

(6)Successfulbiddersecuringoneormoreitemsinthepublicauctionshallhavethe deposit set off against the bid value accepted by the auctioneer.

(4)Allbiddersinthepublicauctionshallberequiredtoregistertoparticipateinthe

publicauctionandregistrationshallbeconsequentuponpaymentofaregistrationfeeand be deemed to be a deposit.

(3)Acceptanceofthecontractshallbedeemedtobeeffectiveonthepronouncement

of sale by the auctioneer orwhen items are ‘knocked down’ to a bidder in the auction.

(2)Acceptanceofthehighestbidbytheauctioneershallformalegallybinding

contractbetweentheGovernmentandthebidder,subjectonlytoanyfeesleviedbythe auctioneer.

65.(1)MembersofthepublicbiddingforGovernmentassetsinapublicauctionshallbe

responsible for the purchases made and the bids offered.

Conditions in an auction of sale

64.(1)Ministriesandallpublicaccountablebodiesshallbecarriedoutwhenapproved

byanofficerauthorizedtoapprovedisposalsandtoaccountfortheassetsdisposaland the income received fromthe sale.

(2)Theapprovalmaynotbegivenbytheoperatororkeeperoftheitemtobe disposed off.

Financial and contractual authority

(2)Specialistitemsshallbeconsideredinfullknowledgeoftheirpotentiallyretained

higher value than more general items.

63.(1)Ministriesandallpublicaccountablebodiesshallestimateorsetareserveprice

on any asset to be disposed off.

Estimated value

(2) A banker’s reference confirmingthe tenderers financial liquidity is required.

62.(1)Ministriesandallpublicaccountablebodiesshallestablishthefinancialviability

of tenderers to ensure that nofailure to pay is encountered.

Financial assessment

 



 

 

 

 

42

1ActNo 6 of 1988

2ActNo1of2005

TIMOTHYTHAHANETHAHANE

MINISTER OF FINANCE AND DEVELOPMENT PLANNING

67. Chapter 21 of the Financial Regulations 1973 is repealed.

Repeals and savings

66.  In  disposal  cases,  by  tender  or  by  public  auction,  Ministries  and  all  public

accountablebodiesshallnotreleasetheitemspurchaseduntilpaymenthasbeenreceived by the appropriate Ministry or public accountable body.

Release of goods

the

the the

(12)   Ministries   and   all   public   accountable   bodies   shall   ensure   that   at

commencement of any public auction the conditions of sales are announced by auctioneer, andallbidderswhoparticipated aredeemedtohave consentedto announced conditions of sale.

(11)ItemssoldthroughapublicauctionshallberemovedfromGovernmentsites

immediately after payment has been made.

(c)through bank guaranteed cheques.

(b)throughaletterofcreditfrom abankrecognized

in Lesotho; or

(a)on cash basis;

(10) Payment for items secured in a public auction shall be –

(9)Failuretopayforthegoodssecuredintheauctionwithintherequiredtimeshall

render bidders title to ownership of the items for bid invalid.

(8)Successfulbiddersshallberequiredtopayforallitemssecured,intotality,within

5 working days.

(7)Wherethebidvalueacceptedbytheauctioneerdoesnotexceedtheregistration

deposit the balance of the deposit shall be repaid to the bidder.

 



 

 

 

43

3.TheregistrationfeeforparticipationforprocurementabovethevalueofM100,000.00

shallbebetweenM2000.00andM5000.00atthediscretionoftheUnitdependingonthe complexity of the tender documentation and the cost of producing them.

2.TheUnitisrequiredtosecurefromtenderersforgoods,worksorservicestobe

procured at the cost above M100,000.00 to submit a tender security.

(a)forgoodsandservicesprocuredbetweenthevalueof

M0.00   to   M30,000.00   direct   contracting   shall   be applied;

(b)for goods and services procured between the value of M30,000 to M100,000 three (3) quotations shallbe obtained fromthree(3) different service providers

(c)  forgoodsandservicesaboveM100,000.00theopen tender method of procurement shall be applied

1.  The following threshold shall apply:

Thresholds

Schedule 1

 



 

 

 

 

 

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