- Is amended by Local Governments (Amendment) Act, 2006
- Is amended by Public Procurement and Disposal of Public Assets (Amendment) Act, 2011
- Is amended by Public Private Partnerships Act, 2015
- Is commenced by Public Procurement and Disposal of Public Assets Act (Commencement) Instrument, 2003
Public Procurement and Disposal of Public Assets Act, 2003
Act 1 of 2003
- Published in Uganda Gazette no. 3 on 17 January 2003
- Assented to on 19 December 2002
- Commenced on 21 February 2003 by Statutory Instrument of 2003
- [This is the version of this document from 1 October 2015.]
- [Amended by Local Governments (Amendment) Act, 2006 (Act 2 of 2006) on 10 February 2006]
- [Amended by Public Procurement and Disposal of Public Assets (Amendment) Act, 2011 (Act 11 of 2011) on 3 March 2014]
- [Amended by Public Private Partnerships Act, 2015 (Act 13 of 2015) on 1 October 2015]
Part I – Preliminary
1. Short title and commencement
2. Application of the Act
3. InterpretationIn this Act, unless the context otherwise requires—“accounting officer” means—(a)an accounting officer appointed as such by the Secretary to the Treasury;(b)a person appointed under an Act of Parliament or under an instrument of appointment made under an Act of Parliament, including the Companies Act, to perform the functions of accounting officer of a procuring and disposing entity; or(c)a person appointed to perform the functions of accounting officer of an entity not being of Government, to which section 2(1)(d) applies;[definition of “accounting officer” substituted by section 3(a) of Act 11 of 2011]“authorised officer” means a person appointed as an authorised officer under section 8;[definition of “authorised officer” inserted by section 3(d) of Act 11 of 2011]“Authority” means the Public Procurement and Disposal of Public Assets Authority established in section 5 of this Act;“award” means a decision by a Tender Board established under the Local Governments Act, 1997 or Contracts Committee provided for in paragraph (b) of section 24, or any other subsidiary body of a procuring and disposing entity to which a Contracts Committee or a Tender Board may delegate powers of adjudication and award within a specified financial threshold, to determine the successful bidder;“best practices” means the industry standards defined in this Act;“bid” means an offer to provide or to acquire works, services or supplies or any combination thereof, and shall include pre-qualification where applicable;“bidder” means a physical or artificial person intending to participate or participating in public procurement or disposal proceedings;“bidding documents” means solicitation documents;“Bid Notice” means any advertisement by which eligible providers are invited to submit written offers to provide or acquire works, services and supplies, or any combination of them in case of procurement and disposal respectively;“competent authority” means a Government office which has the mandate to perform a specified function;[definition of “competent authority” inserted by section 3(d) of Act 11 of 2011]“consultancy service” means a service of an intellectual or advisory nature, provided by a practitioner who is skilled and qualified in a particular field or profession; and includes, but is not limited to, engineering design or supervision, accountancy, auditing, financial services, procurement services, training and capacity building services, management advice, policy studies and advice and assistance with institutional reform;[definition of “consultancy service” inserted by section 3(d) of Act 11 of 2011]“consultant” means an individual who, or a firm, company, corporation, organisation or partnership which provides consultancy services to a procuring and disposing entity;[definition of “consultant” inserted by section 3(d) of Act 11 of 2011]“contract” means an agreement between a procuring and disposing entity and a provider, resulting from the application of the appropriate and approved procurement or disposal procedures and proceedings as the case may be, concluded in pursuance of a bid award decision of a Contracts Committee or any other appropriate authority;“Contracts Committee” is the committee provided for under Part III of this Act;“Contractor” means a provider as defined in this Act;“corrupt practice” includes the offering, giving, receiving, or soliciting of anything of value to influence the action of a public official in the procurement or disposal process or in contract execution;“currency point” has the meaning assigned to it in the First Schedule;“Defence and National Security organs” means Uganda Peoples’ Defence Forces, Uganda Police Force, Uganda Prisons Service, Intelligence Services and National Security Council;“disposal” means the divestiture of public assets, including intellectual and proprietary rights and goodwill, and any other rights of a procuring and disposing entity by any means, including sale, rental, lease, franchise, auction, or any combination however classified other than those regulated by the Public Enterprise Reform and Divestiture Statute, 1993;“disposal process” means the successive stages in the disposal cycle, including planning, choice of procedure, measures to solicit offers from bidders, examination and evaluation of those offers and award of contract;“emergency” means circumstances which are urgent, unforeseeable and not caused by dilatory conduct;“emergency situation” means a circumstance which is urgent or unforeseeable or a situation which is not caused by dilatory conduct where—(a)Uganda is seriously threatened by or actually confronted with a disaster, catastrophe, war or an act of God;(b)life or the quality of life or environment may be seriously compromised;(c)the conditions or quality of goods, equipment, buildings or publicly owned capital goods may seriously deteriorate unless action is urgently and necessarily taken to maintain them in their actual value or usefulness;(d)an investment project is seriously delayed for want of minor items; or(e)a Government programme would be delayed or seriously compromised unless a procurement is undertaken within the required time frame;[definition of “emergency situation” inserted by section 3(d) of Act 11 of 2011]“foreign provider” means a provider whose business is not registered in Uganda:“fraudulent practice” includes a misrepresentation of facts in order to influence a procurement or disposal process or the execution of a contract to the detriment of the procuring or disposing entity, and includes collusive practices among bidders prior to or after bid submission designed to establish bid prices at artificial non-competitive levels and to deprive the procuring and disposing entity of the benefits of free and open competition;“guidelines” means directives issued by the Authority under section 97 of this Act;“industry standards” means those standards defined and codified by internationally recognized providers’ associations and professional bodies in the respective fields and includes best practices;“information” means written, visual, aural and electronic information;[definition of “information” inserted by section 3(d) of Act 11 of 2011]“listed provider” means a provider registered by the Authority in accordance with this Act;“Minister” means the Minister responsible for Finance;“national provider” means a provider registered in Uganda and wholly owned and controlled by Ugandans;“non-consultancy service” means a service of a skilled or a non-skilled nature, which is not a consultancy service; and includes, cleaning, security and maintenance and repair services;[definition of “non-consultancy service” inserted by section 3(d) of Act 11 of 2011]“pre-qualification” means a screening process designed to ensure that invitations to bid are confined to capable providers;“procurement” means acquisition by purchase, rental, lease, hire purchase, licence, tenancy, franchise, or any other contractual means, of any type of works, services or supplies or any combination;“procurement and disposal notice board” means the notice board of a procuring and disposing entity, which is used to display notices required to be displayed under this Act and regulations made under this Act and to display any other information relating to the procurement and disposal activities of the procuring and disposing entity;[definition of “procurement and disposal notice board” inserted by section 3(d) of Act 11 of 2011]“Procurement and Disposal Unit" means a division in each procuring and disposing entity responsible for the execution of the procurement and disposal function;“procurement process” means the successive stages in the procurement cycle including planning, choice of procedure, measures to solicit offers from bidders, examination and evaluation of those offers, award of contract, and contract management;“procurement specialist” means a person who is engaged in a profession, occupation or calling in which recourse to procurement is directly or indirectly involved and has such knowledge and experience of the practice of procurement or who is certified or registered by a procurement professional body;[definition of “procurement specialist” inserted by section 3(d) of Act 11 of 2011]“procuring and disposing entity” means—(a)a Ministry or department of Government;(b)a district council or a municipal council;(c)a body corporate established under an Act of Parliament other than the Companies Act;(d)a company registered under the Companies Act in which Government or a procurement and disposing entity—(i)controls the composition of the board of directors of the company;(ii)is entitled to cast, or controls the casting of more than fifty percent of the maximum number of votes that may be cast at a general meeting of the company; or(iii)controls more than fifty percent of the issued share capital of the company, excluding any part of the issued share capital that does not carry a right to participate beyond a specified amount in the distribution of profits or capital; and(e)an entity not being of Government, to which section 2 (1) (d) applies;and includes—(f)a commission established under the Constitution or under an Act of Parliament;(g)a public university and a public tertiary institution established under the Universities and other Tertiary Institutions Act, 2001;(h)Bank of Uganda except in exercise of the functions specified in section 4 of the Bank of Uganda Act; and(i)any other procuring and disposing entity as may be prescribed by the Minister;[definition of “procuring and disposing entity” substituted by section 3(b) of Act 11 of 2011]“provider” means a natural person or an incorporated body including a consultant, contractor or supplier licensed by a competent authority to undertake business activities;“public asset” means any property, tangible or intangible, owned by Government or by a procuring and disposing entity, including physical property, shares, proprietary rights and land, except land held by the Uganda Land Commission or a district land board or land which is compulsorily acquired by Government in accordance with the law;[definition of “public asset” inserted by section 3(d) of Act 11 of 2011]“public funds” means monetary resources appropriated to procuring and disposing entities through budgetary processes, including the Consolidated Fund, grants and credits put at the disposal of the procuring and disposing entities by foreign donors; and revenues generated by the procuring and disposing entities;“resident provider” means a provider registered in Uganda who is not a national provider;“services” means any object of procurement or disposal other than works and supplies, and includes professional, non professional and commercial types of services as well as supplies and works which are incidental to, but not exceeding the value of those services;“specifications” means the description of an object of procurement or disposal in accordance with national and international standards adopted and approved by the Authority, after consultation with the National Bureau of Standards, or other appropriate trade associations and professions, the use of which shall be mandatory in all bidding documents;“solicitation documents” means bidding documents or any other documents inviting bidders to participate in procurement or disposal proceedings; and includes documents inviting potential bidders to pre-qualify, and standard bidding documents;“supplies” means goods, raw materials, products, equipment, livestock, assets, land or objects of any kind and description in solid, liquid or gaseous form, or in the form of electricity, or intellectual and proprietary rights as well as works or services incidental to the provision of those supplies where the value of the works or services does not exceed the value of the supplies;[definition of “supplies” amended by section 3(c) of Act 11 of 2011]“tender” means “bid”;“urgent” does not include circumstances that—(a)should have been foreseen by the procuring and disposing entity;(b)are a result of inadequate planning; or(c)are a result of delays by or within the procuring and disposing entity;[definition of “urgent” inserted by section 3(d) of Act 11 of 2011]“User Department” means any department, division, branch or section of the procuring and disposing entity, including any project unit working under the authority of the procuring and disposing entity, which initiates procurement and disposal requirements and is the user of the requirements; and“works” means any work associated with the construction, reconstruction, demolition, repair, or renovation of a building or structure, on the surface or underground, on and underwater, and includes the preparation, excavation, erection, assembly, installation, testing and commissioning of any plant, equipment or materials, decoration and finishing, turnkey projects, build own and operate projects, build operate and transfer projects or any arrangement of this nature, or any other form of private and public partnerships or joint development activities, all or any of which may include management, maintenance, testing, commissioning and training; as well as supplies or services incidental to those works where the value of the incidental supplies or services does not exceed the value of the works.
4. International obligations
4A. Procurement procedures under bi-lateral tied loans
Part II – The Public Procurement and Disposal of Public Assets Authority
5. Establishment of the Authority
6. Objectives the AuthorityThe objectives of the Authority are to—
7. Functions of the Authority
8. Powers of the Authority
9. Action on recommendations of the Authority
10. Establishment of the Board of Directors
11. Composition of the Board
12. Conditions of service of the Board membersThe Minister, in consultation with Cabinet, shall determine the terms and conditions of service of the members of the Board save for the Executive Director.
13. Tenure of Board membersThe tenure of the Board members save for the Executive Director shall be four years and they may be reappointed for only one further term.
14. Meetings of the Board
15. Committees of the Board
15A. Delegation of functions and powers
16. Termination of office of Board members
17. Appointment and functions of the Executive Director of the Authority
18. Other staff of the Authority
19. Funds of the Authority
19A. Financial yearThe financial year of the Authority shall be the same as the financial year of Government.[section 19A inserted by section 11 of Act 11 of 2011]
20. Management plan and budget
21. Accounts and audit
23. Internal audits and periodic audit reports
23A. Compliance with the Public Finance and Accountability Act, 2003The Authority shall at all times comply with the Public Finance and Accountability Act, 2003.[section 23A inserted by section 13 of Act 11 of 2011]
Part III – Procuring and disposing entities
24. Composition of procuring and disposing entitiesFor the purpose of this Act, a procuring and disposing entity shall be composed of—
25. Powers of a procuring and disposing entity
26. Accounting Officer
27. Composition of a Contracts Committee
28. Functions of a Contracts Committee
29. Powers of a Contracts CommitteeA Contracts Committee shall—
30. Composition of a Procurement and Disposal UnitA procuring and disposing entity shall cause to be established a Procurement and Disposal Unit staffed at an appropriate level.
31. Functions of a Procurement and Disposal UnitA Procurement and Disposal Unit shall—
32. Powers of a Procurement and Disposal UnitA Procurement and Disposal Unit shall have the powers to—
33. Disagreement between a Contracts Committee and a Procurement and Disposal Unit
34. Functions of the User Department
35. Powers of the User DepartmentIn the exercise of its functions a User Department shall—
36. Disagreement between a Procurement and Disposal Unit and a User Department
37. Evaluation Committee
38. Independence of functions and powersSubject to the provisions of this Act, the Accounting Officer, the Contracts Committee, the Procurement and Disposal Unit, the User Department and the Evaluation Committee shall act independently in relation to their respective functions and powers.
39. Delegation of powers by the accounting officerAn accounting officer may—
40. Third party procurement and disposal
40A. Accreditation for alternative systems
41. Records of a procuring and disposing entity
42. Defence and National Security Organs
Part IV – Basic public procurement and disposal principles
43. Application of basic principles of public procurement and disposalAll public procurement and disposal shall be conducted in accordance with the following principles—
44. Non-discriminationA bidder shall not be excluded from participating in public procurement and disposal on the basis of nationality, race, religion, gender or any other criterion not related to qualification, except to the extent provided for in this Act.
45. Transparency, accountability and fairnessAll procurement and disposal shall be conducted in a manner which promotes transparency, accountability and fairness.
46. CompetitionSubject to this Act, all procurement and disposal shall be conducted in a manner to maximize competition and achieve value for money.
48. Economy and efficiencyAll procurement and disposal shall be conducted in a manner which promotes economy, efficiency and value for money.
49. EthicsAll procurement and disposal shall be carried out in accordance with the Codes of Ethics that may be specified from time to time by the Authority.
50. Preference and reservation
51. Open competitive biddingA procuring and disposing entity shall use open bidding as the preferred method of procurement and disposal.
52. Best evaluated bidsA contract shall be awarded to the bidder with the best evaluated offer ascertained on the basis of the methodology and criteria detailed in the bidding documents.
53. Public accessibilityCopies of the Act, regulations, Guidelines, and forms made under this Act, standard bidding documents and decisions of the Authority shall be made accessible to the public by the Authority.
54. ***[section 54 repealed by section 27 of Act 11 of 2011]
Part V – Public procurement and disposal rules
55. Application of public procurement and disposal rulesAll 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.
58. Procurement and disposal planning
59. Initiation of procurement or disposal requirements and confirmation of funding
59A. Preference schemes
59B. Reservation schemes
60. Statements of requirements
61. Best practice and industry standardsProcuring and disposing entities shall at all times use industry standards defined and codified by internationally recognised trade associations and professional bodies in the appropriate fields.
62. Solicitation documents
63. Selection of biddersAll methods for the selection of bidders to be invited to bid shall allow for fair and equitable selection and ensure maximum competition.
64. Bidding periodThe bidding period shall be sufficient to allow bidders to prepare and submit their bids and shall not be reduced with the aim of limiting competition.
65. Clarification of solicitation documentation
66. Form of bidsA procuring and disposing entity shall require bidders to submit sealed written bids unless otherwise provided for in this Act or regulations made under this Act.
67. Bid submission methodsThe method for bid submission shall be prescribed by regulations made under this Act and shall be determined in the regulations by the type, complexity and evaluation method of the procurement or disposal being handled by the procuring and disposing entity.
68. Modification and withdrawal of bidsA bidder may modify or withdraw his or her bid at any time before the deadline for bid submission, using the method prescribed by regulations made under this Act.[section 68 substituted by section 33 of Act 11 of 2011]
69. Bid receipt and openingsAll bidding processes shall include a formal bid receipt and a bid opening.
70. Basic qualification of biddersA procuring and disposing entity shall require all bidders participating in public procurement or disposal to meet the qualification criteria set out in the bidding documents which in all cases shall include the following basic qualifications—
72. Change in bid detailsThere shall not be any alterations or any changes in the substance of bids, including changes in price, after the date and time of bid closing, except as may be otherwise prescribed by regulations made under this Act.
73. Clarification of bids receivedA procuring and disposing entity may ask bidders for clarification of their bids in order to assist in an evaluation and to clarify details that were not apparent or could not be finalised at the time of bidding, in accordance with procedures prescribed by regulations made under this Act.
74. Prohibition of negotiations
75. Rejection of bidsA procuring and disposing entity may reject any or all the bids at any time prior to the award of a contract.
77. Change in bidders circumstancesAny change in the circumstances of a bidder during the procurement or disposal process that could materially affect the bidder’s capacity to execute the contract shall be immediately drawn to the attention of the Contracts Committee by the bidder.
78. Prohibition of Public OfficersPublic Officers shall not participate in the disposal process as bidders except where specific items are offered to the Public Officials of a procuring and disposing entity subject to—
Part VI – Methods of procurement and disposal
79. Choice of procurement method[heading substituted by section 36(a) of Act 11 of 2011]
80. Open domestic bidding
81. Open international bidding
82. Restricted domestic bidding
83. Restricted international bidding
84. Quotation method[heading substituted by section 38(a) of Act 11 of 2011]
85. Direct procurement[heading amended by section 39 of Act 11 of 2011]
86. Micro-procurement[heading amended by section 40(a) of Act 11 of 2011]
87. Methods of disposal of public assets[heading substituted by section 41(a) of Act 11 of 2011]
88. Selection of providersThe detailed procedures for selection of providers shall be prescribed by regulations.
88A. Procurement of consultancy services
Part VIA – Types of contract[Part VIA inserted by section 43 of Act 11 of 2011]
88B. Choice of contractA procuring and disposing entity shall in respect of a procurement activity, use any of the contract types specified in this Part or a combination of any of them, using procedures prescribed by regulations made under this Act.[section 88B inserted by section 43 of Act 11 of 2011]
88C. Lump sum contractA lump sum contract shall be used where the content, duration and outputs of the procurement are well defined.[section 88C inserted by section 43 of Act 11 of 2011]
88D. Time-based contractA time-based contract shall be used where the scope and duration of the procurement requirement is difficult to define.[section 88D inserted by section 43 of Act 11 of 2011]
88E. Admeasurement contractAn admesurement contract, including a re-measurement, unit rate and bill of quantities contract may be used for works—
88F. Framework contractA framework contract, is a schedule of rates or an indefinite delivery contract and shall be used—
88G. Percentage based contractA percentage based contract shall be used where it is appropriate to relate the fee paid directly to the estimated or actual cost of the subject of the contract.[section 88G inserted by section 43 of Act 11 of 2011]
88H. Cost reimbursable contractA cost reimbursable contract shall be used—
88I. Target price contractA 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.[section 88I inserted by section 43 of Act 11 of 2011]
88J. Retainer contractA retainer contract shall be used to retain a provider to provide services over a prescribed period of time, without defining the level and actual amounts of services required.[section 88J inserted by section 43 of Act 11 of 2011]
88K. Success fee contractSuccess fee contract shall be used to link the fees of a provider to an achieved objective to provide an incentive to the successful completion of a particular task, event or action.[section 88K inserted by section 43 of Act 11 of 2011]
88L. Other types of contracts and contracting arrangements
Part VII – Administrative review
89. Administrative review
90. Review by the Accounting Officer
91. Review by the Authority
Part VIIA – Review of decisions of the authority[Part VIIA inserted by section 47 of Act 11 of 2011]
91A. InterpretationIn this Part, unless the context otherwise requires—“proceedings” means review by the Tribunal of a decision made under Part VII of this Act and includes any application before the Tribunal;“Tribunal” means the Public Procurement and Disposal of Public Assets Appeals Tribunal.[section 91A inserted by section 47 of Act 11 of 2011]
Establishment of the Public Procurement and Disposal of Public Assets Appeals Tribunal
91B. Public Procurement and Disposal of Public Assets Appeals Tribunal
91C. Tenure of office of members of Tribunal
Management of the Tribunal
91D. Arrangement of business
91E. Constitution of the Tribunal
91F. Disclosure of interest
91G. Registrar of the Tribunal
91H. Official seal
Review of decisions of the Authority by the Tribunal
91I. Tribunal to review decisions by the Authority
91J. Matters referred to Tribunal by Authority
91K. Powers of the Tribunal
91L. Application for review by the Tribunal
91M. Appeals to the High Court from decisions of the Tribunal
91N. Operation and implementation of a decision subject to review or appealWhere an application for review of a decision is lodged with the Tribunal or the Authority refers a matter to the Tribunal under section 91J or an appeal against a decision of the Tribunal is lodged with the High Court, the Tribunal or the High Court, as the case may be, may make an order staying or otherwise affecting the operation or implementation of the decision under review or appeal, or a part of the decision, as the Tribunal or the High Court, considers appropriate for the purposes of securing the effectiveness of the proceedings and for determining the application or appeal.[section 91N inserted by section 47 of Act 11 of 2011]
Finances of the Tribunal
91O. Funds of the Tribunal
91P. Financial yearThe financial year of the Tribunal shall be the same as the financial year of Government.[section 91P inserted by section 47 of Act 11 of 2011]
91Q. Accounts and auditThe Tribunal shall keep proper books of accounts which shall be subject to audit by the Auditor General.[section 91Q inserted by section 47 of Act 11 of 2011]
91R. Annual reportThe Tribunal shall within three months after the end of each financial year, submit to the Minister a report on the activities of the Tribunal in respect of the financial year, containing such information as the Minister may require.[section 91R inserted by section 47 of Act 11 of 2011]
91S. Compliance with the Public Finance and Accountability Act, 2003The Tribunal shall at all times comply with the Public Finance and Accountability Act, 2003.[section 91S inserted by section 47 of Act 11 of 2011]
91T. Regulations under this PartThe Minister may, on the recommendation of the Tribunal, issue regulations for the better carrying out of the provisions of this Part.[section 91T inserted by section 47 of Act 11 of 2011]
Part VIII – Miscellaneous
91U. Limitation on contracts with members of procuring and disposing entities
92. Protection from prosecutionNo action shall lie against any member or staff of the Authority or a procuring and disposing entity for any act or omission done in good faith.
93. Codes of conduct
94. Suspension of providersThe Authority may on the recommendation of a procuring and disposing entity or after investigations on its own initiative, suspend a provider from engaging in any public procurement or disposal process for a period determined by the Authority, where—
95. Offences and penalties
95A. Force account mechanism
97. GuidelinesFor the better carrying out of the objectives of and functions under this Act, the Authority shall issue and Gazette guidelines.[section 97 substituted by section 53 of Act 11 of 2011]
98. Transitional provisions
99. Repeal of S.I. No. 64 of 2000The Public Finance Procurement Regulations are repealed.
History of this document
01 October 2015 this version
Amended by Public Private Partnerships Act, 2015
03 March 2014
10 February 2006
21 February 2003
17 January 2003
Published in Uganda Gazette number 3Read this version
19 December 2002
Cited documents 0
Documents citing this one 18
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- Roko Construction Limited v Public Procurement and Disposal of Public Assets Authority & Ors (Civil Appeal No. 59 of 2017)  UGHCCD 137 (13 March 2018)
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