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Public Procurement and Disposal of Public Assets Authority PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS AUTHORITY ANNUAL REPORT FOR THE FINANCIAL YEAR 2008/ 09 Page 1 of 179 Page 1 of 179 Tableofcontents Acronyms……………………………………………………………………………………………….…4 Chairman’s Message………………………………………………………………………………..……6 Executive Director…………………………………………………………………………..……………13 CHAPTER 1: CORPORATE INFORMATION ................................................................................... 13 1.1 Statutory Objectives..............................................................................................................13 1.2 Organizational Structure......................................................................................................13 CHAPTER 2: ENSURING TRANSPARENCY, COMPETITION AND VALUE FOR MONEY IN PROCUREMENT & DISPOSAL PRACTICES ................................................................................... 15 2.1 Procurement Audits..............................................................................................................15 2.2 Investigations.........................................................................................................................17 2.3 Contract Audits.....................................................................................................................50 2.4 Follow-ups on Procurement Audit and Investigation Recommendations.............................55 2.5 Applications for Administrative Review...............................................................................72 2.6 Applications For Deviations..................................................................................................74 2.7 Suspension of Providers........................................................................................................78 2.8 Applications For Accreditation.............................................................................................79 2.9 Publication of Contracts above US$ 100,000.........................................................................80 CHAPTER 3: HARMONIZATION OF PROCUREMENT AND DISPOSAL POLICIES, PRACTICES AND SYSTEMS ................................................................................................................ 88 3.1 Development of Standard Bidding Documents for Local Governments...............................88 3.2 Standard Bidding Documents for Revenue Collection..........................................................88 3.3 Development of a Local Government Public Procurement and Disposal Manual................88 3.4 Equipping/Re-tooling of the Procurement and Disposal Units..............................................88 3.5 Asset Engraving and Verification in the 11 EU Supported Local Governments...................89 CHAPTER 4: SETTING PUBLIC PROCUREMENT AND DISPOSAL STANDARDS ................. 90 4.1 Development of the Register of Providers.............................................................................90 4.2 Development of Common Specification Standards of Common User Items.........................90 4.3 Development of Sector Standard Bidding Documents for Central Government Entities.....90 4.4 Amendments to the PPDA Act..............................................................................................90 4.5 Development of a Dual Classification List for Defence and National Security Organs.........92 4.6 Development of Guidelines....................................................................................................92 Page 2 of 179 Page 2 of 179 CHAPTER 5: MONITORING COMPLIANCE OF PROCURING AND DISPOSING ENTITIES93 5.1 Conducting 120 Compliance Checks as a PRSC IV Requirement........................................93 5.2 Conducting 61 Compliance Checks.......................................................................................93 5.3 Reviewing Monthly and Quarterly Procurement and Disposal Reports...............................94 5.4 Conducting Compliance Assessment in 5 Foreign Missions..................................................95 5.5 Development of a Compliance Database...............................................................................96 5.6 Framework contracts:...........................................................................................................96 5.7 Review of procurement adverts in the press:........................................................................96 5.8 Printing of combined CG PPDA laws:..................................................................................96 5.9 Court Cases...........................................................................................................................96 CHAPTER 6:BUILDING PROCUREMENT AND DISPOSAL CAPACITY ................................... 97 6.1 Build Procurement and Disposal Capacity in PDEs..............................................................97 CHAPTER 7: STRENGTHENING THE INTERNAL ORGANISATION ...................................... 110 7.1 Human Resource.................................................................................................................110 7.2 General Administration......................................................................................................111 7.3 Information Technology......................................................................................................111 CHAPTER 8:CHALLENGES ............................................................................................................... 111 CHAPTER 9:WAY FORWARD FOR THE FY 2009/10 .................................................................... 112 CHAPTER 10: AUDITOR GENERAL’S REPORT ........................................................................... 113 ANNEXES… ……………………………………………………………………………………………133 Page 3 of 179 Page 3 of 179 ACRONYMS ACT – Anti-Corruption Country Threshold Project ADB- African Development Bank. AOs – Accounting Officers CAA – Civil Aviation Authority CAOs – Chief Administrative Officers CHOGM – Commonwealth Heads of Government Meeting CIF – Cost Insurance & Freight COMESA – Common Market for Eastern and Southern Africa CPIs – Compliance Performance Indicators CTB – Central Tender Board DANIDA - Danish International Development Agency DDP – Delivery Duty Paid DFID - Department For International Development DLG- District Local Government. DEO- District Education Officer. DISO- District Internal Security Officer. GOU – Government of Uganda GRN – Goods Received Note HPDU – Head Procurement & Disposal Unit IDPs – Internally Displaced People. IFAD- International Fund for Agricultural Development. IPC- Interim Procurement Committee. IGG – Inspectorate of Government IPPU – Institute of Procurement Professionals Uganda ITB- Instruction to Bidders LG – Local Government LPO – Local Purchase Order MAC- Management Advisory Committee. MCC – Millennium Challenge Corporation MICT- Ministry of Information and Technology. Page 4 of 179 Page 4 of 179 MOLG- Ministry of Local Government. MOFPED – Ministry of Finance, Planning & Economic Development MTEF- Medium-Term Expenditure Framework MUBs – Makerere University Business School NAADS – National Agricultural Advisory Services NCHE – National Council for Higher Education NSSF- National Social Security Fund. OECD/DAC – Organization for Economic Co-operation & Development / Development Assistance Committee PAC – Public Accounts Committee PAI – Procurement Audit & Investigations PDEs – Procuring & Disposing Entities PPDA – Public Procurement & Disposal of Public Assets Authority PR – Public Relations PRSC – Poverty Reduction Support Credit PS/ST – Permanent Secretary / Secretary to the Treasury QCBS – Quality Cost Based Selection RFQ – Request for Quotation SG – Solicitor General SFG- Schools Facilities Grant. TCB – Training & Capacity Building TCS- Technical Compliance Selection USAID – United States Agency for International Development UTODA – Uganda Taxi Operators Drivers Association UNEB- Uganda National Examination Board. UCE- Uganda Certificate for Examination. UACE- Uganda Advanced Certificate for Examination. Page 5 of 179 Page 5 of 179 CHAIRMAN’S MESSAGE I am glad to present the 6th Annual Report (Financial Year 2008/9) since the inception of the Public Procurement and Disposal of Public Assets Authority in 2003. The importance of a strong public procurement system cannot be over emphasized in a country where the provision of the much needed goods, services and works largely depends on the transparency, efficiency and fairness of the procurement and disposal system. The Authority has continued to make great strides in strengthening the existing public procurement and disposal system through introduction of rules and regulations to improve the application of the law. We have been able to scale up on the number of procurement audits, compliance checks and training activities over the year. This is aimed at enforcing the application of the law. The number of Administrative Review applications and cases for investigation being handled by the Authority has also significantly increased. This is a mark of confidence the private sector has in the dispute resolution mechanism, a belief that they can get a fair and transparent hearing when they feel aggrieved. This needs to be encouraged and refined. The law still faces a number of challenges notably poor procurement planning by Entities that leads to delayed procurements, poor solicitation documents failure to adhere to evaluation criteria during evaluation which has caused many Administrative Reviews,
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