Ethiopian tender practice

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Existing tender practices in Ethiopia Seminar Paper

Presented By:

Eyob Muhdin

Coopw /027/05

Presented By:Monday, April 17, 2023Coopw

/027/05

Presented by Eyob Muhdin


The presentation has:

1. Introduction 1. Introduction

2. Literature review 2. Literature review

3. Conclusion3. Conclusion


Introduction

Text

Government or NGOs creates

organized by the people

themselves without any

external support to meet

their own needs

It is a common practice in the business environment that organizations require work done for them, or are supplied with goods/services in bulk.

In such cases, it would be of great help to familiarize our self with the existing tender guides and bid procedures.

Below I will present to provide you with information on the existing tender and bidding practices in Ethiopia.

Formal and informal


Literature review

Definition

What is a tender?

Tender is a means by which an organization invites suppliers to submit competitive offers for prices to render their services.


Literature review…

There are different types of tenders in Ethiopia context:

• Open tendering

• .

1

• Two-stage tendering

2 • Restricted tendering

• .

3



In this type of tendering,1. Public bodies should prepare the documents and follow the steps required for

open tendering provided for in articles 22 – 51 of the procurement manual of the Ministry of Finance (MoF).

2. Accordingly, the following steps should be followed when procuring under alternative methods of procurement, except where specifically provided for.

Procedures for open tenderingThe public body should firstly assess its need or demand for the goods or services to be purchased. The need or demand for the goods or services to be purchased should be requested and approved by the authorizing unit within the public body. It should also reflect the interests of all concerned units in the public body. After the need assessment is undertaken, the public body should prepare bidding documents.

Open tendering



These documents should include the following:1. An invitation to tender;2. Instructions to bidders;3. Specifications and detailed descriptions of the goods and services to be

purchased; 4. Draft of basic terms and conditions of contracts;5. Standard forms for tenders, including the quality and price schedules.



SHGs CLA Micro-finance

Here there are two stages:First stage:

1. Solicitation documents shall call upon suppliers, initial tenders containing their proposals without a tender price;

2. The solicitation documents may solicit a proposal relating to the technical, quality or other characteristics of the goods, construction or services as well as to contractual terms and conditions of supply, and, where relevant, the professional and technical competence and qualifications of the suppliers;

3. The public body may, in the first stage, engage in negotiations with any supplier or contractor whose tender has not been rejected pursuant to articles 12 and 13 of the procurement manual of MoF concerning any aspect of its tender.

Two-stage tendering




Second stage: Public bodies shall invite suppliers whose tenders have not been rejected to

submit final tenders with prices with respect to a single set of specifications; Public bodies may delete or modify any aspect, originally set forth in the

solicitation documents, of the technical or quality characteristics of the goods, construction or services to be procured, and any criterion originally set forth in those documents for evaluating and comparing tenders and for ascertaining the successful tender, and may add new characteristics or criteria that conform with this directive;

Any such deletion, modification or addition shall be communicated to suppliers or

contractors in the invitation to submit final tenders;

Two-stage tendering




A supplier not wishing to submit a final tender may withdraw from the tendering proceedings without forfeiting any tender security that the supplier may have been required to provide;

The final tenders shall be evaluated and compared in order to ascertain the successful tender as defined in article 45 of procurement manual of the MoF.

Two-stage tendering



Restricted tendering

In this case there are two things that we should have to see:

When public bodies engage in restricted tendering on the grounds referred to in article 16(a) of the procurement manual of the MoF, it shall solicit tenders from all suppliers from whom the goods, construction or services to be procured are available;

When the public body engages in restricted tendering on the grounds referred to in article 16(b) of the procurement manual of the MoF, it shall select suppliers from whom to solicit tenders in a non-discriminatory manner and it shall select a minimum of 3 suppliers from the approved suppliers list. For details on Tender procedures you may refer to the booklet of EBDSN entitled "Marketing Strategies".


Conclusion

In General, the purpose of having such practice is to provide Procuring Entities (PEs) with one standard draft containing basic contractual provisions and safeguards which are required by the Government of the Federal Democratic Republic of Ethiopia in the execution of public procurement and the use of public funds.The Standard Document for the Procurement of Goods has been designed to: Simplify the drafting of a specific bidding document for Procurement

of Goods and Related Services by Procurement Units; Minimize the time required by the Tender Committee to approve

Bidding Documents prior to release; Reduce Bidders’ time and effort in the preparation of Bids; and

Facilitate and simplify the evaluation and comparison of bids and Contract award; by the Procuring Entity.



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Ethiopian tender practice