Authorized Procurement Methodologies Under Procurement and Property Administration Proclamation No. 1333-2024

Introduction to Authorized Procurement Methodologies

Within the jurisprudential ambit of “The Federal Public Procurement and Property Administration Proclamation No. 1333/2024,” four cardinal methodologies for tendering, herein formally designated as procurement methods, have received official authorization for implementation by governmental agencies, hereinafter referred to as Procuring Entities. These methods are meticulously designed to facilitate the acquisition of goods, works, and services, whilst concurrently upholding the fundamental principles of public procurement, which include, but are not limited to, transparency, accountability, economy, efficiency, fairness, and non-discrimination. The judicious selection and rigorous application of these prescribed modalities are paramount to safeguarding public funds, fostering robust competition, and securing optimal value for money in all governmental expenditure. This chapter delineates the characteristics, conditions for applicability, and inherent principles governing each sanctioned procurement method, providing a comprehensive understanding of their respective roles within the federal procurement framework.

Open Tendering: The Paradigm of Equitable Competition

Open Tendering (ግልፅ ጨረታ) functions as the prescribed and foundational operational procedure for all procurement activities, representing the quintessential embodiment of competitive public procurement. This methodology has been assiduously designed to guarantee an equitable and expansive opportunity for all prospective bidders manifesting genuine interest and capability. The inherent rationale for mandating open tendering as the default approach lies in its capacity to maximize market access, thereby stimulating broad participation from potential suppliers, contractors, and service providers. This expansive engagement fosters genuine competition, which, in turn, is intended to drive down costs, enhance quality, and mitigate the risks associated with collusion or preferential treatment, thereby securing optimal value for public funds. It serves as a cornerstone for ensuring transparency and accountability in the allocation of public contracts.

Procurement executed via open tendering shall strictly conform to the standardized bid documentation meticulously prepared and issued by the Authority, concurrently adhering with rigorous precision to the bidding protocols delineated within Chapter Seven of the Proclamation and its supplementary implementing Directives. The uniformity of documentation and strict adherence to established procedures are critical for maintaining a level playing field, reducing administrative burdens for bidders, and simplifying the evaluation process. Procuring Entities are expressly interdicted from the segmentation of procurements, particularly where the sole motivation for such disaggregation is to circumvent the mandatory open tendering process. Such circumvention, if permitted, would fundamentally undermine the principles of competition and transparency, potentially leading to inflated costs and reduced opportunities for qualified bidders.

Selective Tendering: Tailored Competition for Specialized Requirements

Selective Tendering (በማጣሪያ የሚከናወን ጨረታ) represents a multi-staged competitive process wherein interested bidders undergo an initial selection phase; only those candidates demonstrably shortlisted in this preliminary stage are subsequently extended an invitation to partake in subsequent competitive rounds. This overarching methodology, while inherently competitive, introduces a filtering mechanism designed to manage the complexities or specific qualification requirements of certain procurements. It balances the benefits of competition with the necessity of ensuring that only demonstrably capable entities participate in the substantive bidding phase. This methodology subsumes several distinct sub-methods, each adapted to particular procurement exigencies.

Two-Stage Tendering (የሁለት ደረጃ ጨረታ)

Two-Stage Tendering is typically deployed for procurement requirements of considerable complexity, wherein the formulation of exhaustive technical specifications presents a significant challenge. Its application is warranted under specific conditions:

• When the Procuring Entity proves incapable of composing a complete and granular specification or of unambiguously identifying the precise characteristics of the procurement, yet necessitates the most efficacious resolution to its procurement exigencies. This situation often arises in innovative or highly specialized projects where the market may possess superior technical knowledge regarding optimal solutions.
• When the Procuring Entity contemplates entering into a contractual arrangement for research, experimentation, scholarly inquiry, or developmental undertakings, provided such engagement does not necessitate the production of commodities in commercial volumes or the recoupment of research and development expenditures. This acknowledges the unique nature of intellectual and exploratory endeavors, where rigid upfront specifications may stifle innovation.
• When a preceding open tendering exercise failed to elicit adequate bidder participation or resulted in the repudiation of all submitted bid proposals, this outcome being attributable to the Procuring Entity’s inability to devise a perspicuous and comprehensive specification. In such instances, the two-stage approach allows for refinement of the requirement based on market feedback.
• When it becomes indispensable to engage in substantive deliberations concerning the technical characteristics or inherent nature of the goods, non-consultancy services, consultancy services, or works with potential candidates. This facilitates an iterative process of solution discovery and refinement, mitigating the risks associated with ambiguous requirements in complex projects.

Prequalification Bid (የቅድመ ብቃት ማረጋገጫ ጨረታ)

The Prequalification Bid (የቅድመ ብቃት ማረጋገጫ ጨረታ) is prudently employed when the intrinsic specificity or magnitude of the procurement mandates a prior ascertainment of the qualifications of prospective bidders. This method is primarily concerned with risk mitigation, ensuring that only entities possessing the requisite technical, financial, and experiential capabilities are invited to submit full proposals. Its application may extend to both domestic and international solicitations, contingent upon the scope and nature of the procurement.

Expression of Interests Selection Methods (የፍላጎት መጠየቂያ ጨረታ)

The Expression of Interests Selection Methods (የፍላጎት መጠየቂያ ጨረታ) procedure is utilized by Procuring Entities to fulfill their requirements for consultancy and other intellectual professional services. This is accomplished through the solicitation of expressions of interest or detailed proposals from interested parties, culminating in the selection of the most appropriately qualified consulting entity. This method recognizes that for intellectual services, the emphasis often shifts from purely price-based competition to a more qualitative assessment of expertise, methodology, and experience.

Limited Tendering: Constrained Competition for Specific Circumstances

Limited Tendering (ውስን ጨረታ) represents a procurement method wherein the successful bidder is chosen from a narrowly defined cohort of candidates, thereby obviating the requirement for public bid advertisement. Invitations are dispatched directly to the designated addresses of the pre-selected participants, often facilitated through an electronic system. This method is an exception to the principle of open competition and is permitted only under strictly circumscribed conditions, where the benefits of wider competition are outweighed by compelling practical or economic considerations.

Procuring Entities may have recourse to limited tendering if:

• It has been corroborated that the requisite goods, non-consultancy services, consultancy services, or works are exclusively available from a restricted number of suppliers. This often pertains to specialized items or services where market concentration is high.
• The estimated monetary valuation of the procurement does not exceed a predefined financial threshold specifically established for restricted tendering by the Ministry. Such thresholds are set to ensure proportionality between the procurement value and the administrative burden of open tendering, allowing for more efficient processing of lower-value procurements.
• An open tendering process, utilizing a non-restrictive bid document previously publicized at least once, failed to attract suitable candidates or responsive bids that conformed to the Procuring Entity’s stated requirements. This condition recognizes a market failure in the initial attempt to secure competition.

A particular instantiation of limited tendering is the Request for Quotation (በዋጋ ማቅረቢያ የሚፈፀም ግዥ). In this procedure, the successful bidder is selected through a competitive process, ideally accomplished via the solicitation of price quotations from a minimum of three candidates, or by extending the opportunity to all interested bidders contingent upon the Procuring Entity’s judicious determination. This method is conventionally employed for the procurement of goods that are readily available, intended for immediate consumption, not conducive to bulk acquisition, or possessing a standardized market valuation. It may similarly be applied to non-consultancy services, consultancy services, or works. Procurements executed via a request for quotation shall be duly integrated into the annual procurement plan of the Procuring Entities. Should an unprogrammed request for quotation become necessary due to unforeseen exigencies, the explicit endorsement of the head of the Procuring Entity is required. Procuring Entities are obligated to ensure that repetitive solicitations are not extended to the identical candidates if other qualified candidates are accessible, thereby striving to uphold the principle of equitable opportunity even within this constrained competitive method.

Direct Procurement: The Exception to the Competitive Principle

Direct Procurement (በቀጥታ የሚፈፀም ግዥ) authorizes Procuring Entities to effectuate procurements directly from a solitary source. This method represents the most significant derogation from the competitive principle and is, therefore, strictly conditional upon the fulfillment of specific, demonstrably justifiable criteria. Procuring Entities bear the profound responsibility for ensuring that this methodology is not employed to subvert competitive processes or to unduly confer advantage upon any particular candidate, thereby preserving the integrity of the public procurement system. Stringent accountability and meticulous documentation are paramount when utilizing this exceptional method.

Conditions sanctioning direct procurement include, among other critical considerations:

• The exclusive availability of the goods, non-consultancy service, consultancy service, or works from a single candidate. This typically applies to proprietary items, unique intellectual property, or natural monopolies where no viable alternatives exist.
• The presence of extreme urgency necessitating immediate procurement to avert severe detriment to human lives, property, or the operational efficacy of the Procuring Entity. Such circumstances typically arise from unforeseen events or emergencies where the time required for competitive processes would result in unacceptable harm.
• The demonstrable inability to obtain the requisite object of procurement through alternative methods, provided such failure is not attributable to deficiencies inherent in the bid document. This addresses situations where market research or prior competitive attempts genuinely prove futile.
• The exigency to acquire spare parts, ancillary components, or supplementary services for previously obtained goods or services, where sourcing from a disparate supplier would engender incompatibility, thereby compromising existing investments or operational continuity. This addresses standardization and integration imperatives.
• Unforeseen circumstances compelling additional works not encompassed within the initial contractual agreement, and where the segregation of these additional works from the original contract is technically or economically infeasible. Such amendments are subject to limitations prescribed in procurement Directives to prevent abuse.
• The acquisition of similar non-consultancy or consultancy services from a prior supplier (previously selected through a competitive process), provided the antecedent contract was executed satisfactorily and such re-engagement yields discernible economic benefits and enhanced efficiency. This leverages successful past performance and continuity, subject to limitations prescribed in procurement Directives.
• Situations wherein piecemeal shopping (market picking) emerges as the most viable alternative for a Procuring Entity’s specialized procurement requirements, or for minor procurements falling beneath a predefined monetary threshold. This acknowledges that for very low-value items, the administrative costs of formal tendering may outweigh the benefits of competition.
• The procurement of goods or services available for a transitory period, offering a unique advantage to the Procuring Entity, and not procurable from conventional suppliers. This allows for opportunistic procurement when exceptional market conditions present a clear benefit.
• The necessity for a Procuring Entity to obtain goods or services from another Public Body at a break-even price. This facilitates inter-governmental cooperation and resource sharing without profit motives.
• The procurement of inputs for research and scholarly inquiry, medical apparatus, or confidential commodities which cannot be competitively sourced due to the intrinsic nature of the Procuring Entity’s function, provided no viable alternative exists and with the explicit approbation of the head of the Procuring Entity. This caters to highly specialized or sensitive requirements.
• The acquisition of goods or non-consultancy services of identical type and price that another Public Body previously procured through open tender, for a singular instance, if deemed advantageous in terms of temporal and economic benefit by the head of the Procuring Entity. This mechanism promotes efficiency through leveraging successful prior procurements by other public entities.
• Circumstances where the price of the goods or non-consultancy services has been officially determined by the Government, indicating a regulated market where competition on price is irrelevant.
• The availability of the goods, non-consultancy service, or consultancy service on an electronic marketplace from recognized entities listed by the Ministry, with publicly disclosed pricing, where procurement is conducted electronically, and the head of the Procuring Entity ascertains such procurement to be advantageous. This incorporates principles of e-procurement, emphasizing transparency of pricing in a digital environment.

For direct procurements falling under specific conditions, such as those of minimal pecuniary value or executed via electronic marketplaces, a formal written contract may not be deemed strictly indispensable, allowing for streamlined administrative processes. Procuring Entities are further obligated to meticulously maintain documented justifications for all direct procurements, substantiating the election of this method over alternatives, and furnishing comprehensive particulars regarding the requisite quality, quantity, delivery schedule, and stipulated conditions. The specific conditions and detailed protocols governing negotiations in direct procurement from a solitary supplier shall be formally expounded upon within a separate Directive, ensuring consistency and preventing arbitrary decision-making.

Conclusion

The Proclamation No. 1333/2024 establishes a structured yet flexible framework for public procurement by delineating four distinct methods: Open Tendering, Selective Tendering, Limited Tendering, and Direct Procurement. Open Tendering is unequivocally designated as the standard and preferred modality, embodying the principles of broad competition, transparency, and fairness essential for effective public financial management. The other three methods serve as controlled exceptions, each with specific conditions and justifications predicated upon the nature of the procurement, market conditions, or exigencies that preclude full open competition. The stringent adherence to the stipulated conditions for the application of Selective, Limited, and Direct Procurement methods is paramount. Such adherence is indispensable not only for compliance with legal mandates but also for upholding the integrity of the public procurement system, ensuring accountability, mitigating risks of corruption, and ultimately securing optimal value for public resources. The judicious application of these modalities, guided by the overarching principles of public procurement, is critical for fostering public trust and enhancing the efficiency and effectiveness of governmental operations.