Procurement Act 15 of 2015

As discussed in the previous lessons Public Entities in Namibia are guided by the Procurement Act 15 of 2015 in their procurement activities. This act is the foundation of this course and the “bible” of procurement in Namibia.

You are advised to download the Act(at the bottom of this page) and inspect it over the duration of this course.  Use it as a reference guide in your engagement with public entities or in resolving and answering any procurement-related issues.

Also note that as with any other law passed in Namibia, this Act can be amended and extended. So, it is important that you stay up-to-date with any new regulations being passed under this Act. Use this link to get access to all of the latest amendments and changes to this Act: http://www.dropbox.com/sh/4wnf8q5dwzzuyme/AAA4R9_Dgbhf3p__gasdXrH3a?dl=0

We are going to look at the 1. objectives of the Act, the prescribed 2. bidding methods, and 3. application for review. However, you are advised to browse the act cover to cover in order to get a comprehensive understanding of procurement in Namibia.

1. Objectives of the Act

• Regulate the procurement of goods, works and services,
• The letting or hiring of anything or
• The acquisition or granting of rights for or on behalf of, and
• The disposal of assets of, public entities;
• To establish the Procurement Policy Unit and the Central Procurement Board of Namibia and provide for their powers and functions;
• To provide for the procurement committees and procurement management units and their powers and functions;
• To provide for the appointment of bid evaluation committees and their functions; to provide for procurement methods;
• To provide for bidding process, bidding challenge and review;
• To provide for preferences to categories of persons, goods manufactured, mined, extracted, produced or grown in Namibia, to Namibian registered small and medium enterprises, joint venture businesses, local suppliers, contractors and service providers; and
• To provide for incidental matters.

2. Bidding Methods

• Open national bidding: Open advertised bidding restricted to Namibians
• Open international bidding: Open advertised bidding open to both Namibian and international companies
• Restricted bidding: this refers to a procurement method in which few bidders are identified and invited to bid. In other words, it is a procurement process that limits the request for tenders to a select number of suppliers, contractors, or service providers.
• Request for sealed quotations: In this method, a request is sent to various companies to provide pricing/quotation for small value products or services. This request is generally sent to companies that are listed on the organization’s supplier list.
• Emergency procurement: Direct purchases for goods and services in the public sector during emergencies.
• Execution by public entities: When a public institution has the capability to provide a service or good for its procurement goods. the task is executed in-house or by a fellow public institution.
• Request for proposals: Can be in 1 or 2 stages. Where the request for proposals method is used for the procurement of consultancy services, the public entity must draw up a shortlist of suppliers from among those who have the capacity to perform the required consultancy services to ensure effective competition. Where the estimated value of the procurement is above the prescribed threshold, the public entity, in order to draw up a shortlist of consultants, must seek expressions of interest
• Expression of Interest: An Expression of Interest (EOI) is part of the qualification process to receive a tender document. The Buyer (the government or private organization asking for the response) is requesting the supplier/contractors (you) to express an interest in providing goods and services for a project, such as a construction job. This process generally requires the submission of compliance documentation and references for shortlisting.
• Direct procurement: A direct procurement method allows a public entity to procure goods or services from a single source without competition.
• Electronic reverse auction: electronic reverse auction means an online real-time purchasing technique utilized by a procuring entity to select the successful submission, which involves the presentation by suppliers or contractors of successively lowered bids during a scheduled period of time and the automatic evaluation of tenders
• Small value procurement: A public entity may procure small quantities of goods, small works, and services, which do not exceed the threshold without resorting to formal competition.

Please refer to the procurement Act for a more detailed explanation of the instances and conditions the various procurement methods are applied.

3. Application for Review

• A bidder or supplier may apply to the Review Panel for review of a decision or an action taken for the award of a procurement contract.

• A supplier or bidder who wishes to lodge an application for review must within 7 days of receipt of the decision or an action taken by a public entity, apply to the Review Panel for review.

• An application for review must contain the grounds for review as well as any supporting documents on which the supplier or bidder rely on.

• The fee for a Review Application is N$5 000.00.

• The supplier or bidder must submit the review application to the Review Panel and serve copies of the review application to the relevant public entity and to any other interested person.

• Upon being served with the copies of the review application the public entity or any other interested person must within two days’ file with the Review Panel a replying affidavit to the allegations made by a bidder or supplier.

• The Review Panel may allow any other interested persons to join the review proceedings as applicants or as defendants.

• The Review Panel must strive to make a decision within seven days of receipt of the application for review or as soonest as practical possible, but not later than 14 days.

• A bidder or supplier who is aggrieved or claims to have suffered, or to be likely to suffer, loss under the Act must exhaust all available remedies under the Act before instituting any judicial action in the High Court.

Potential Outcomes of a Review Application

The Review Panel may –

• dismiss an application;

• direct the Board or the public entity that has acted or proceeded in a manner that is not in compliance with the Act to act or proceed in a manner that is in compliance with the Act;

• set aside in whole or in part a decision or an action of the Board or public entity that is not in compliance with the Act, other than any decision or action bringing the procurement contract or the framework agreement into force, and refer the matter back to the Board or public entity for reconsideration with specific instructions;

• correct a decision or action by the Board or public entity that is not in compliance with the Act;

• confirm the decision of the Board or public entity; or

• order that the procurement proceedings be terminated and start afresh.