Related documents
- Is amended by Public Procurement (Amendment) Act, 2023
- Is commenced by Public Procurement Act (Commencement) Order, 2021
- Repeals Public Procurement Act, 2008
Zambia
Public Procurement Act, 2020
Act 8 of 2020
- Published in Government Gazette on 23 November 2020
- Assented to on 23 November 2020
- Commenced on 16 April 2021 by Public Procurement Act (Commencement) Order, 2021
- [This is the version of this document as it was from 23 November 2020 to 25 December 2023.]
Part I – Preliminary provisions
1. Short title and commencement
This Act may be cited as the Public Procurement Act, 2020, and shall come into operation on the date appointed by the Minister by statutory instrument.2. Interpretation
In this Act, unless the context otherwise requires—"approvals authority" means the body or individual with authority to grant prior authorisation of the stages in the procurement process specified in accordance with section 34;"asset" includes movable and immovable property, tangible and intangible, including stores, equipment, land, buildings, animals, inventory, stock, intellectual property rights vested in the State and proprietary rights;"associate" has the meaning assigned to the word in the Anti-Corruption Act, 2012;[Act No. 3 of 2012]"Authority" means the Zambia Public Procurement Authority continued under section 5;"best evaluated bidder" means the bidder ranked as first, following the application of the specified evaluation methodology and criteria;"bid" means an offer to provide goods, works or services in response to an invitation from a procuring entity and includes a tender, proposal, quotation and, where applicable, an application to pre-qualify;"bid document" means a document and required attachments or accompaniments that are submitted in response to an invitation to bid;"bidder" means a person or group of persons that offers to provide goods, works or services in response to an invitation from a procuring entity and includes, where applicable, a subbidder, potential bidder and applicant to pre-qualify;"bidder status" means the status of being a citizen bidder, local bidder or foreign bidder;"Board" means the Board of the Authority constituted under section 7;"Chairperson" means the person appointed as Chairperson of the Board under section 7;"chief executive officer" means a chief executive officer of a parastatal, statutory body or a local authority;"citizen" has the meaning assigned to the word in the Constitution;[Cap. 1]"citizen bidder or citizen supplier" means, in the case of—(a)an individual, a bidder or supplier who is a citizen;(b)a firm or company, whether corporate or unincorporate, a firm or company wholly owned by a citizen; and(c)a body of persons wholly comprising of citizens;"classified audit" means an audit of a procurement that involves or relates to the security, defence or international relations of the Republic;"coercive practice" means a practice that causes harm or threatens to cause harm, directly or indirectly, on a person or a person’s property, in order to influence that person’s participation in a procurement process, affect the execution of a contract or influence the sale of public assets to a particular person or in a particular way;"company" has the meaning assigned to the word in the Companies Act, 2017;[Act No. 10 of 2017]"consulting services" includes services of an intellectual or advisory nature offered by a professional, the delivery of reports, drawings or designs;"contract" means an agreement between a procuring entity and a supplier for the provision of goods, works or services;"controlling officer" has the meaning assigned to the words in the Public Finance Management Act, 2018;[Act No. 1 of 2018]"corrupt" has the meaning assigned to the word in the Anti-Corruption Act, 2012 and cognate expressions shall be construed accordingly, 2012;[Act No. 3 of 2012]"direct bidding" means a procurement method where a bid is obtained directly from a single bidder, without competition;"direct selection" means a procurement method where a proposal is obtained from a single consultant without competition;"Director-General" means the person appointed as Director-General under section 9;"document" includes an electronic copy of that document or record;"due diligence" means the assessment of a bidder or supplier’s technical, financial, commercial, historical background and management capabilities and the bidder’s or supplier’s governance record to effectively execute a contract;"electronic reverse auction" means an online real time purchasing technique utilised by a procuring entity to select the successful submission, which involves the presentation by tenderers, suppliers or contractors of successively lowered bids during a scheduled period of time and the automatic evaluation of bids;"emoluments" has the meaning assigned to the word in the Constitution;[Cap. 1]"Emoluments Commission" means the Emoluments Commission established by the Constitution;[Cap. 1]"Engineering Institution of Zambia" means the Engineering Institution of Zambia established under the Engineering Institution of Zambia Act, 2010 [Act No. 17 of 2010]"force account" means a mechanism by which a procuring entity undertakes some construction works using its own equipment and personnel;"foreign bidder or supplier" means a non-citizen bidder or supplier who is not registered to undertake business activities in the Republic in accordance with the relevant law;"framework agreement" means an agreement between a procuring entity and a selected supplier, or contractor identified for a definite term to supply goods, works or services whose quantities and delivery schedules are not definable or determinable at the beginning of work;"fraudulent practice" means a misrepresentation or omission of facts in order to influence a procurement or the execution of a contract to the detriment of the procurement entity, bidder or contractor and includes collusive practices prior to or after the tender submission;"fronting" means a transaction, arrangement or other act or conduct that directly or indirectly undermines or frustrates the achievement of the objectives of this Act or the implementation of any of the provisions of this Act;"goods" means objects of every kind and description including raw materials, products, equipment, objects in solid, liquid or gaseous form, electricity, and works and services incidental to the supply of the goods if the value of those incidental works and services does not exceed that of the goods;"Government Agency" means an unincorporate person or body of persons to which functions exercisable on behalf of the Republic, involving the use or collection of public moneys or stores as delegated by or under any law and "Government Agent'’ and cognate expressions shall be construed accordingly;"higher education institution" has the meaning assigned to the words in the Higher Education Act, 2013; [Act No 4 of 2013]"international procurement agreement" means a convention, treaty or other agreement to which Zambia is a State party, a letter of intent, memorandum of understanding or agreement between a procuring entity and another country or a foreign company, institution or organisation, which requires the Government to contribute its resources in any form to any procurement activities within the Republic, wholly, partially, jointly or severally;"legally disqualified" means the absence of legal capacity as provided under section 4 of the Mental Health Act, 2019; [Act No. 6 of 2019]"limited bidding" means a procurement method for goods, works and non-consulting services where bids are obtained by direct invitation to a shortlist of bidders, without open advertisement;"limited selection" means a procurement method for consulting services where bids are obtained by direct invitation to a shortlist of bidders, without open advertisement;"local bidder or supplier" means a non-citizen bidder or supplier who is registered to undertake business activities in the Republic in accordance with the relevant written law;" local content" means the extent of utilisation of local inputs, products or personnel in the production of goods and services in the Republic;"market price index" means a metric that represents the price position relative to top competitors across commonly procured goods, works and services;"micro business enterprise" has the meaning assigned to the words in the Zambia Development Agency Act, 2006 [Act No. 11 of 2006]"non-consulting" services means services other than consulting services, for the carrying out of work of any kind, with or without the use of vehicles, machinery or equipment or the provision of operators, technicians or drivers;"office holder" has the meaning assigned to the words in the Public Finance Management Act, 2018; [Act No. 1 of 2018]"open bidding"means a procurement method for goods, works and non-consulting services which is open to participation on equal terms by all eligible bidders through advertisement of the opportunity;"open data" means data that can be freely used, reused and redistributed by anyone subject to the requirement to attribute and share under a licence, to increase accessibility, usability and interoperability;"open selection" means the procurement method for consulting services which is open to applications for short listing on equal terms by all bidders through advertisement of the opportunity;"parastatal body" means a statutory corporation or body, a local authority or a company in which the Government has a majority or controlling interest;"post-qualification" means the conduct of due diligence to determine whether the bidder is qualified to perform the contract effectively;"price reasonableness analysis" means a review of the prices proposed by a supplier in order to ascertain whether the prices offered in the bids are fair to a procuring entity and supplier;"procurement" means acquisition by purchase, rental, lease, hire purchase, licence, tenancy, franchise or any combination thereof;"procurement agreement" means a bilateral or an international agreement relating to procurement;"Procurement Committee" means a committee established under section 27;"Procurement Unit" means the division or department in each procuring entity responsible for the execution of the procurement or stores function;"procuring entity" means—(a)a Government Agency or parastatal body carrying out procurement using public funds or any other funds;(b)any other body or unit established or mandated by Government to carry out procurement using public funds;"public body" has the meaning assigned to the words in the Public Finance Management Act, 2018 [Act No. 1 of 2018]"public funds" has the meaning assigned to the words in the Public Finance Management Act, 2018; [Act No. 1 of 2018]"public office" has the meaning assigned to the words in the Constitution; [Cap. 1]"public procurement" means the acquisition of goods, construction works or services by a procuring entity;"rate contract" means a mutual agreement between a procuring entity and supplier to operate a set of chosen items, during a given period of time at a fixed rate;"relative" has the meaning assigned to the word in the Anti-Corruption Act, 2012; [Act No. 3 of 2012]"repealed Act" means the Public Procurement Act, 2009; [Act No. 12 of 2008]"running contract" means a contract extending over a period of time for an estimated or variable quantity of goods and services;"service" means an object of procurement other than goods or works, which involves the provision of labour, time or effort and includes a professional, consultancy, technical, non-professional or commercial service and goods and works which are incidental to but not exceeding the value of those services;"simplified bidding" means a procurement method which invites bids from a minimum of three bidders;"simplified selection" means a procurement method which invites proposals from a minimum of three bidders;"small business enterprise" has the meaning assigned to the words in the Zambia Development Agency, 2006; [Act No. 11 of 2006]"solicitation document" means a bidding document, a request for proposals, request for quotation and, where applicable, a pre-qualification document or document of any kind issued by a procuring entity, inviting bidders to participate in procurement proceedings;"supplier" means a contractor, consultant, service provider or a natural person or incorporate body that is a party to a contract with a procuring entity for the provision of goods, works or services including a person that has a contract with the supplier in relation to the provision of goods, works or services to a procuring entity;"user department" means a department, division, branch or project unit of the procuring entity which initiates procurement requirements and is, or represents, the end user of the goods, works or services;"variation" means any change to a statement of requirements for goods, works and services;"Vice-Chairperson" means the person appointed as Vice-Chairperson of the Board under section 7;"works" means all work associated with the construction, reconstruction, demolition, repair, maintenance or renovation of a building, road, structure or works, such as site preparation, excavation, erection, building, installation of equipment or materials, decoration and finishing, and includes services incidental to construction provided in a contract, where the value of those services does not exceed that of the works;"Zambia Institute of Purchasing and Supply" means the Zambia Institute of Purchasing and Supply established under the Zambia Institute of Purchasing Supply Act, 2003 and[Act No. 15 of 2003]"Zambia Qualifications Authority" means the Zambia Qualifications Authority established under the Zambia Qualifications Authority Act, 2016; [Act No. 12 of 2011]3. Application
4. Approval required for international procurement agreements
Part II – The Zambia Public Procurement Authority
5. Continuation of Zambia Public Procurement Authority
6. Functions of Authority
7. Constitution of Board
8. Functions of Board
9. Director-General
10. Secretary and other staff
11. Emoluments and other conditions of service of Director-General, Secretary and other staff
Part III – General principles of public procurement
12. Procurement pricing
13. Non-discrimination from participation
14. Standard procurement documents
15. Restriction on office holders
16. Use of information and communication technologies
17. Form of communication and advertisements
18. Inappropriate influence on evaluations and other matters
19. Corrupt, coercive, obstructive, collusive or fraudulent practice and conflict of interest
20. Confidentiality
21. Procurement records
22. Procurement approvals
23. Stakeholder feedback
The Authority shall put in place mechanisms to facilitate the receipt of feedback from stakeholders on electronic submissions, detecting violations of this Act, deficiencies in the website or the portal set up by the Authority and on contract performance to the procuring entities.Part IV – Procuring entities
24. Composition of procuring entities
For the purposes of this Act, a procuring entity consists of a—25. Functions of procuring entities
26. Duties and responsibilities of controlling officer or chief executive officer
27. Establishment and composition of Procurement Committee
28. Functions of Procurement Committee
29. Tenure of office of Procurement Committee
30. Proceedings of Procurement Committee
31. Subcommittees and subdivisions of Procurement Committee
32. Establishment of Procurement Unit and functions
33. Functions of user departments
The functions of a user department, in relation to procurement, are to—34. Procurement authorisation and levels of authority
35. Procurement of common use items
36. Use of procurement agent or service provider
A procuring entity may, in accordance with this Act, as prescribed, appoint an existing procuring entity as a procurement agent or procurement service provider to carry out procurement functions on its behalf.Part V – Methods of procurement
37. Methods of procurement
Subject to this Act, a procuring entity shall procure goods, works or services by a method which may include any of the following:38. Open bidding
39. National and international bidding
40. Open selection
41. National and international selection
42. Limited bidding
43. Limited selection
44. Simplified bidding
45. Simplified selection
46. Direct bidding
47. Direct selection
48. Electronic reverse auction
49. Procedure for electronic reverse auction
50. Force account
51. Purchases from other procuring entities
52. Procurement of infrastructure for private financing and award of concessions
A contract for the construction, rehabilitation or operation of public infrastructure and other public goods, services, concessions and comparable forms of contracting shall be subject to the procedures set out in the Public-Private Partnership Act, 2009 if it is financed by or through private sector participation based on the public-private partnership model. [Act No. 14 of 2009]53. Community participation in procurement
Part VI – Procurement process
54. Choice of procurement procedure
55. Pre-qualification
56. Commencement of procurement proceedings
57. Procurement planning
58. Determination of procurement method
59. Statement of procurement requirements
60. Solicitation documents
61. Selection of bidders
The method for selection of bidders shall be determined by the procurement method used and shall provide for the—62. Invitation to bid
63. Bid security or bid securing declaration
64. Receipt of bids
65. Opening of bids
Open bidding, limited bidding, open selection and limited selection processes bids shall include a public bid opening, in accordance with the procedures as prescribed.66. Evaluation
67. Post-qualification
68. Negotiations
69. Termination or cancellation of procurement proceedings
70. Decision to award contact
71. Notification of best evaluated bidder
72. Award of contract
73. Standard contract
74. Prohibition from assigning contract
75. Notification of unsuccessful bidder
A procuring entity shall, before signing a contract, notify the other bidders that their bids have not been successful and shall give reasons for that decision.76. Contract management
77. Amendment or variation of contract
78. Defects liability certificate and payments
79. Deviations
The Authority may, in a prescribed manner and form permit a procuring entity to deviate from the use of a public procurement method, rule, process or document—80. Accreditation of alternative procurement system
The Authority may, in the prescribed manner, accredit an alternative procurement system where a procuring entity—Part VII – Inventory control, asset and stores management and distribution
81. Stores management system
82. Management of purchased goods
Part VIII – Compliance monitoring and enforcement
83. Supply of information by public entity
84. Investigations and inspections
85. Appointment of inspectors
86. Powers of inspectors
87. Report of investigation or inspection
An inspector shall, after completing an investigation or inspection under section 86, submit a written report relating to the investigation or inspection to the Authority within a period the Authority may specify.88. Powers of Authority in investigation or inspection
Part IX – Bidders and suppliers
89. Eligibility of bidders
90. Qualification of bidders
91. Preference and reservation for schemes
92. Participation of public body or company in procurement
A public body or company in which the Government has a majority or controlling interest is eligible to participate as a bidder or supplier in public procurement in accordance with this Act.93. Subcontracting policy
94. Supplier database or list
95. Suspension of bidder or supplier
96. Grounds for suspension of bidder or supplier
A bidder or supplier shall be suspended from participating in procurement where the bidder or supplier has—97. Permanent bar of bidder or supplier
98. Rejection of bid, proposal, offer or quotation
A procuring entity shall reject a bid, proposal, offer or quotation of a bidder or supplier if the bidder or supplier offers, gives or agrees to give, directly or indirectly an inducement or anything of value to an office holder to influence an act, decision or proceeding of a procuring entity.99. Appeal against suspension
A bidder or supplier aggrieved by a decision of the Authority to suspend the bidder or supplier from participating in public procurement or over any other matter under this Act may submit the matter to arbitration within ten days of the Authority’s decision to suspend.Part X – Appeals
100. Appeal of decision by procuring entity
101. Dispute to be determined by arbitration
Any dispute over a matter or decision made under this Act shall be determined by arbitration in accordance with the provision of the Arbitration Act. [Act No. 19 of 2000]Part XI – General provisions
102. Framework agreements
103. Code of conduct
The Authority may promulgate a code of conduct to regulate office holders, bidders and suppliers involved in public procurement of goods, works and services.104. Conduct of bidder and supplier
105. Offences
106. Limitation of liability of controlling officer or chief executive officer
Where a controlling officer or chief executive officer of a procuring entity satisfies the Authority, or other relevant oversight or enforcement body, that the controlling officer or chief executive officer had, in accordance with this Act delegated functions to another person or body or committee, that other person and every member of that body or committee shall be accountable for any failure to comply.107. General penalty
A person who commits an offence under this Act for which a penalty is not specified is liable, on conviction, to a fine not exceeding five hundred thousand penalty units or to imprisonment for a term not exceeding five years, or to both.108. Offence by principal officers of body corporate and unincorporate body
Where an offence under this Act is committed by a body corporate or unincorporate body, with the knowledge, consent or connivance of the director, manager, shareholder or partner of the body corporate or unincorporate body, that director, manager, shareholder or partner commits the same offence as the body corporate or body unincorporate and is liable, on conviction, to the penalty specified for that offence.109. Compensation
110. Transfer of procuring entity to other body
The Authority may, where a procuring entity contravenes this Act, transfer its procurement function to a body or procurement agency appointed by the Authority, until the Authority is satisfied that the causes of the contravention have been rectified by the procuring entity.111. Circulars and publications
112. Regulations
113. Repeal of Act No. 12 of 2008
History of this document
26 December 2023 amendment not yet applied
Amended by
Public Procurement (Amendment) Act, 2023
16 April 2021
Commenced by
Public Procurement Act (Commencement) Order, 2021
23 November 2020 this version
Assented to
Cited documents 0
Documents citing this one 23
Gazette 16
Judgment 6
Bill 1
1. | The Zambia Medicines and Medical Supplies Agency (Amendment) Bill No. 14 of 2024 |
Subsidiary legislation
Title
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Date
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Public Procurement Regulations, 2022 | Statutory Instrument 30 of 2022 | 8 April 2022 |