Public Procurement and Disposal of Public Assets (General) (Amendment) Regulations, No. 1 of 2020

8. Contract value above $175 million and below $262.5 million: 26 250,00 (General) Regulations, 2018, published in Statutory Instrument 5 of 2018 (hereinafter referred to as the “principal regulations”) are amended 9. Contract value above $262.5 million and below $350 million: 35 000,00 by the repeal of section 10 and substitution with the following— 10. Contract value above $350 million and below $525 million: . 43 750,00 11. Contract value above $525 million and below $700 million: . 52 500,00 “Financial thresholds 12. Contract value above $700 million and below $875 million: . 70 000,00 10. (1) For the purpose of section 14(1) of the Act, where the 13. Contract value above $875 million and below $1.3125 billion: . 87 500,00 price of the procurement requirement is below— 14. Contract value above $1.3125 billion and below $1.75 billion: . 131 250,00 (a) three million five hundred thousand dollars, in the 15. Contract value above $1.75 billion and below $2.625 billion: 175 000,00 case of construction works; or 16. Contract value above $2.625 billion and below $4.375 billion: 262 500,00 (b) one million seven hundred and fifty dollars, in the 17. Contract value above $4.375 billion and below $8.75 billion: 352 000,00 case of goods; or

18. Contract value above $8.75 billion: . . . . . . . . . . 437 500,00 (c) with eight hundred and seventy-five dollars, in the Foreign contractors shall pay an equivalent in the currency of their contract.”. case of consultancy and non-consultancy services; procuring entities shall be responsible for managing their own procurement. (2) For the purpose of section 34 of the Act, where the price of the procurement requirement for items not covered in a framework agreement is below— (a) three hundred and fifty thousand dollars, in the case of construction works; or (b) one hundred and seventy-five thousand dollars, in Supplement to the Zimbabwean Government Gazette Extraordinary dated the 14th February, 2020. the case of goods; or Printed by the Government Printer, Harare. 284 277 Public Procurement and Disposal of Public Assets (General) S.I. 49 of 2020 (Amendment) Regulations, 2020 (No. 1) (c) eighty-seven thousand five hundred dollars, in the PART IV case of consultancy and non-consultancy services; ADMINISTRATION FEES PAYABLE BY BIDDERS FOR BIDS SUBJECT TO REVIEW IN TERMS procuring entities may adopt the request for quotations method of OF SECTION 54 OF ACT procurement. Fee Description (ZW$) (3) Where the price of the procurement requirement is—

1. Administration fees for domestic competitive tenders for (a) above three hundred and fifty thousand dollars, but each bid for goods, non-consultancy and consultancy services: 1 750,00 does not exceed eighty-seven million five hundred 2. Administration fees for domestic competitive tenders for each thousand dollars, in the case of construction works; bids for construction works: . . . . . . . . . . . . . . 3 500,00 or

3. Administration fees for international competitive tenders for (b) above one hundred and seventy-five thousand dollars each bid for goods, non-consultancy and consultancy services: 3 500,00 but does not exceed five million two hundred and

4. Administration fees for international competitive tenders for fifty thousand dollars in the case of goods; or each bid for construction works: . . . . . . . . . . . . 8 750,00 (c) above eighty-seven thousand five hundred dollars but does not exceed seventeen million five hundred Foreign bidders shall pay an equivalent in the currency of their bid. thousand dollars, in the case of consultancy and non- consultancy services; PART V procuring entities may invite only Zimbabwean (domestic) ADMINISTRATION FEES PAYABLE BY BIDDERS FOR BID SECURITY ESTABLISHED BY THE suppliers to bid. AUTHORITY IN TERMS OF SECTION 44 OF ACT Fee (4) Where the price of the procurement requirement Description (ZW$) exceeds—

1. Administration fees for bid security below $75 000: . . . 3 500,00 (a) eighty-seven million five hundred thousand dollars; in the case of construction works; or 2. Administration fees above $75 000 and below $175 000: . . 6 125,00

3. Administration fees for bid security above $175 000 (b) five million two hundred and fifty thousand dollars, and below $350 000: . . . . . . . . . . . . . . . . . 8 750,00 in the case of goods; or

4. Administration fees for bid security above $350 000 and (c) seventeen million five hundred thousand dollars, in below $875 000: . . . . . . . . . . . . . . . . . . . 13 125,00 the case of consultancy and non-consultancy services; 5. Administration fees for bid security above $875 000 and below procuring entities shall invite bids in accordance with the Act from $1 750 000: . . . . . . . . . . . . . . . . . . . . . 17 500,00 both Zimbabwean (domestic) and foreign bidders. 6. Administration fees for bid security above $1 750 000 and below $3 million: . . . . . . . . . . . . . . . . . . . . . 26 250,00 (5) The threshold for scrutiny of especially valuable procurement contracts by the Special Procurement Oversight 7. Administration fees for bid security above $3 million: . . . 35 000,00 Committee in terms of section 54 of the Act shall depend on whether Foreign bidders shall pay an equivalent in the currency of their bid security. a procuring entity falls within any of the following classifications— (a) Class A, that is to say procuring entities with a procurement budget of thirty-five million dollars or 278 283 Public Procurement and Disposal of Public Assets (General) S.I. 49 of 2020 (Amendment) Regulations, 2020 (No. 1) “FIFTH SCHEDULE (Section 92) more and with a low risk profile, or procuring entities FEES that fall under lower procurement budget with lower risk profile; PART I (b) Class B, that is to say procuring entities with a APPLICATION FOR EXEMPTION IN TERMS OF SECTION 3(7) OF ACT procurement budget above eight million seven Fee hundred and fifty thousand dollars but less than thirty Description (ZW$) five million dollars and with a low risk profile, or

1. Application and renewal of exemption of procurement of procuring entities with a procurement budget under procurement of trading stock per class of items . . . . . . 43 750,00 Class C but with lower risk profile, or procuring

2. Application for exemption of procurement of a strategic entities with a procurement budget for class A but nature by procuring entities operating in competitive markets 43 750,00 with a high risk profile; (c) Class C, that is to say procuring entities with a PART II procurement budget of less than eight million seven APPLICATION TO CONDUCT PROCUREMENT IN TERMS OF SECTION 15 OF ACT hundred and fifty thousand dollars and with a lower risk profile, or procuring entities with a procurement Fee budget under Classes A and B but with a high risk Description (ZW$) profile;

1. Application and renewal of authority to conduct procurement and the thresholds for each of those classes shall be those set out under Class A procuring entity: . . . . . . . . . . . . . 35 000,00 in the Second Schedule.

2. Application and renewal of authority to conduct procurement under Class B procuring entity: . . . . . . . . . . . . . 26 250,00 (6) The risk profiles referred to in subsection (5) shall be determined in accordance with guidelines issued by the Authority

3. Application and renewal of authority to conduct procurement from time to time. under Class C procuring entity: . . . . . . . . . . . . . 17 500,00 (7) For all procurements where the estimated price exceeds PART III the request for quotation thresholds set out in subsection (2)— REGISTRATION OF BIDDERS IN TERMS OF SECTION 6(1)(I) OF ACT (a) the competitive bidding method of procurement shall be used; and Fee Description (ZW$) (b) an evaluation committee shall be established in accordance with section 18 of the Act; and 1. Registration and renewal of registration of Zimbabwean (domestic) bidders . . . . . . . . . . . . . . . . . . 1 750,00 (c) an individual procurement plan shall be prepared in

2. Registration and renewal of registration of international accordance with section 23 of the Act; and bidders: . . . . . . . . . . . . . . . . . . . . . . . 13 125,00 (d) the procurement shall be advertised in accordance with the Act. Foreign bidders shall pay an equivalent in the currency of their country of registration. (8) The calculation of the estimated price of procurement shall be based on the total amount payable under the procurement contract, net of taxes and duties, as estimated by the procuring 282 279 Public Procurement and Disposal of Public Assets (General) S.I. 49 of 2020 (Amendment) Regulations, 2020 (No. 1) entity, including payments for any type of option and any renewals “THIRD SCHEDULE (Sections 44 and 92) of the contract. SECURITY AND FEES FOR CHALLENGES TO PROCUREMENT (9) The calculation of the estimated price of procurement PROCEEDINGS shall not be made with the intention of excluding the procurement Fee from the scope of the Act or of avoiding the adoption of a Description (ZW$) procurement method prescribed by the Act. 1. Application to challenge contract award below (10) For the procurement of consultancy services, the $175 000,00: . . . . . . . . . . . . . . . . . . . . 1 750,00 threshold for— 2. Application to challenge contract award between $175 000,00 and $875 000,00: . . . . . . . . . . . . . . . . . . 8 750,00 (a) inviting expressions of interest shall be five million two hundred and fifty thousand dollars; 3. Application to challenge contract award between $875 000,00 and $1 750 000,00: . . . . . . . . . . . . . . . . . 13 125,00 (b) scrutiny by the Special Procurement Oversight

4. Application to challenge contract award between $1 750 000,00 Committee in terms of section 54 of the Act shall be and $8 750 000,00: . . . . . . . . . . . . . . . . . 17 500,00 calculated in accordance with subsection (5).”. 5. Application to challenge contract award between $8 750 000,00

3. The Principal Regulations are amended by the repeal of the and $17.5 million: . . . . . . . . . . . . . . . . . 26 250,00 Second Schedule and substitution with the following— 6. Application to challenge contract award between $17.5 million and $35 million: . . . . . . . . . . . . . . . . . . 52 500,00 “SECOND SCHEDULE (Section 10(5))

7. Application to challenge contract award between $35 million FINANCIAL THRESHOLDS FOR PROCUREMENT CONTRACTS and $87.5 million: . . . . . . . . . . . . . . . . 175 000,00 LIABLE TO SCRUTINY 8. Application to challenge contract award between $87.5 million Financial threshold and $262.5 million: . . . . . . . . . . . . . . . . . 437 500,00 (ZW$) 9. Application to challenge contract award between $262.5 million and $525 million: . . . . . . . . . . . . . . 875 000,00 Class A Procuring Entity:

10.Application to challenge contract award between $525 million (a) for construction works:…………………………… 8 750 000,00 and $875 million: . . . . . . . . . . . . . . . . 1 312 500,00 (b) for goods, non-consultancy and consultancy works 4 375 000,00 11. Application to challenge contract award between $875 million Class B Procuring Entity: and $1.75 billion: . . . . . . . . . . . . . . . . 1 750 000,00

12.Application to challenge contract award between $1.75 billion (a) for construction works:…………………............... 4 375 000,00 and $4.375 billion: . . . . . . . . . . . . . . . . 2 625 000,00 (b) for goods, non-consultancy and consultancy services: 2 625 000,00

13.Application to challenge contract award between $4.375 Class C Procuring Entity: billion and $8.75 billion: . . . . . . . . . . . . . 3 500 000,00 (a) for construction works:…………………................ 3 500 000,00 14.Application to challenge contract award above $8.75 billion: 4 375 000,00 (b) for goods, non-consultancy and consultancy services: 1 750 000,00”. Foreign bidders shall pay an equivalence of their bid currency.”.

4. The principal regulations are amended by the repeal of the Third Schedule and substitution with the following— 5. The principal regulations are amended by the repeal of the Fifth Schedule and substitution with the following— 280 281 Public Procurement and Disposal of Public Assets (General) S.I. 49 of 2020 (Amendment) Regulations, 2020 (No. 1) entity, including payments for any type of option and any renewals “THIRD SCHEDULE (Sections 44 and 92) of the contract. SECURITY AND FEES FOR CHALLENGES TO PROCUREMENT (9) The calculation of the estimated price of procurement PROCEEDINGS shall not be made with the intention of excluding the procurement Fee from the scope of the Act or of avoiding the adoption of a Description (ZW$) procurement method prescribed by the Act. 1. Application to challenge contract award below (10) For the procurement of consultancy services, the $175 000,00: . . . . . . . . . . . . . . . . . . . . 1 750,00 threshold for— 2. Application to challenge contract award between $175 000,00 and $875 000,00: . . . . . . . . . . . . . . . . . . 8 750,00 (a) inviting expressions of interest shall be five million two hundred and fifty thousand dollars; 3. Application to challenge contract award between $875 000,00 and $1 750 000,00: . . . . . . . . . . . . . . . . . 13 125,00 (b) scrutiny by the Special Procurement Oversight

4. Application to challenge contract award between $1 750 000,00 Committee in terms of section 54 of the Act shall be and $8 750 000,00: . . . . . . . . . . . . . . . . . 17 500,00 calculated in accordance with subsection (5).”.

5. Application to challenge contract award between $8 750 000,00

3. The Principal Regulations are amended by the repeal of the and $17.5 million: . . . . . . . . . . . . . . . . . 26 250,00 Second Schedule and substitution with the following— 6. Application to challenge contract award between $17.5 million and $35 million: . . . . . . . . . . . . . . . . . . 52 500,00 “SECOND SCHEDULE (Section 10(5))

7. Application to challenge contract award between $35 million FINANCIAL THRESHOLDS FOR PROCUREMENT CONTRACTS and $87.5 million: . . . . . . . . . . . . . . . . 175 000,00 LIABLE TO SCRUTINY 8. Application to challenge contract award between $87.5 million Financial threshold and $262.5 million: . . . . . . . . . . . . . . . . . 437 500,00 (ZW$) 9. Application to challenge contract award between $262.5 million and $525 million: . . . . . . . . . . . . . . 875 000,00 Class A Procuring Entity:

10.Application to challenge contract award between $525 million (a) for construction works:…………………………… 8 750 000,00 and $875 million: . . . . . . . . . . . . . . . . 1 312 500,00 (b) for goods, non-consultancy and consultancy works 4 375 000,00 11. Application to challenge contract award between $875 million Class B Procuring Entity: and $1.75 billion: . . . . . . . . . . . . . . . . 1 750 000,00

12.Application to challenge contract award between $1.75 billion (a) for construction works:…………………............... 4 375 000,00 and $4.375 billion: . . . . . . . . . . . . . . . . 2 625 000,00 (b) for goods, non-consultancy and consultancy services: 2 625 000,00

13.Application to challenge contract award between $4.375 Class C Procuring Entity: billion and $8.75 billion: . . . . . . . . . . . . . 3 500 000,00 (a) for construction works:…………………................ 3 500 000,00 14.Application to challenge contract award above $8.75 billion: 4 375 000,00 (b) for goods, non-consultancy and consultancy services: 1 750 000,00”. Foreign bidders shall pay an equivalence of their bid currency.”.

4. The principal regulations are amended by the repeal of the Third Schedule and substitution with the following— 5. The principal regulations are amended by the repeal of the Fifth Schedule and substitution with the following— 280 281 Public Procurement and Disposal of Public Assets (General) S.I. 49 of 2020 (Amendment) Regulations, 2020 (No. 1) “FIFTH SCHEDULE (Section 92) more and with a low risk profile, or procuring entities FEES that fall under lower procurement budget with lower risk profile; PART I (b) Class B, that is to say procuring entities with a APPLICATION FOR EXEMPTION IN TERMS OF SECTION 3(7) OF ACT procurement budget above eight million seven Fee hundred and fifty thousand dollars but less than thirty Description (ZW$) five million dollars and with a low risk profile, or

1. Application and renewal of exemption of procurement of procuring entities with a procurement budget under procurement of trading stock per class of items . . . . . . 43 750,00 Class C but with lower risk profile, or procuring

2. Application for exemption of procurement of a strategic entities with a procurement budget for class A but nature by procuring entities operating in competitive markets 43 750,00 with a high risk profile; (c) Class C, that is to say procuring entities with a PART II procurement budget of less than eight million seven APPLICATION TO CONDUCT PROCUREMENT IN TERMS OF SECTION 15 OF ACT hundred and fifty thousand dollars and with a lower risk profile, or procuring entities with a procurement Fee budget under Classes A and B but with a high risk Description (ZW$) profile;

1. Application and renewal of authority to conduct procurement and the thresholds for each of those classes shall be those set out under Class A procuring entity: . . . . . . . . . . . . . 35 000,00 in the Second Schedule.

2. Application and renewal of authority to conduct procurement under Class B procuring entity: . . . . . . . . . . . . . 26 250,00 (6) The risk profiles referred to in subsection (5) shall be determined in accordance with guidelines issued by the Authority

3. Application and renewal of authority to conduct procurement from time to time. under Class C procuring entity: . . . . . . . . . . . . . 17 500,00 (7) For all procurements where the estimated price exceeds PART III the request for quotation thresholds set out in subsection (2)— REGISTRATION OF BIDDERS IN TERMS OF SECTION 6(1)(I) OF ACT (a) the competitive bidding method of procurement shall be used; and Fee Description (ZW$) (b) an evaluation committee shall be established in accordance with section 18 of the Act; and

1. Registration and renewal of registration of Zimbabwean (domestic) bidders . . . . . . . . . . . . . . . . . . 1 750,00 (c) an individual procurement plan shall be prepared in

2. Registration and renewal of registration of international accordance with section 23 of the Act; and bidders: . . . . . . . . . . . . . . . . . . . . . . . 13 125,00 (d) the procurement shall be advertised in accordance with the Act. Foreign bidders shall pay an equivalent in the currency of their country of registration. (8) The calculation of the estimated price of procurement shall be based on the total amount payable under the procurement contract, net of taxes and duties, as estimated by the procuring 282 279 Public Procurement and Disposal of Public Assets (General) S.I. 49 of 2020 (Amendment) Regulations, 2020 (No. 1) (c) eighty-seven thousand five hundred dollars, in the PART IV case of consultancy and non-consultancy services; ADMINISTRATION FEES PAYABLE BY BIDDERS FOR BIDS SUBJECT TO REVIEW IN TERMS procuring entities may adopt the request for quotations method of OF SECTION 54 OF ACT procurement. Fee Description (ZW$) (3) Where the price of the procurement requirement is—

1. Administration fees for domestic competitive tenders for (a) above three hundred and fifty thousand dollars, but each bid for goods, non-consultancy and consultancy services: 1 750,00 does not exceed eighty-seven million five hundred

2. Administration fees for domestic competitive tenders for each thousand dollars, in the case of construction works; bids for construction works: . . . . . . . . . . . . . . 3 500,00 or

3. Administration fees for international competitive tenders for (b) above one hundred and seventy-five thousand dollars each bid for goods, non-consultancy and consultancy services: 3 500,00 but does not exceed five million two hundred and

4. Administration fees for international competitive tenders for fifty thousand dollars in the case of goods; or each bid for construction works: . . . . . . . . . . . . 8 750,00 (c) above eighty-seven thousand five hundred dollars but does not exceed seventeen million five hundred Foreign bidders shall pay an equivalent in the currency of their bid. thousand dollars, in the case of consultancy and non- consultancy services; PART V procuring entities may invite only Zimbabwean (domestic) ADMINISTRATION FEES PAYABLE BY BIDDERS FOR BID SECURITY ESTABLISHED BY THE suppliers to bid. AUTHORITY IN TERMS OF SECTION 44 OF ACT Fee (4) Where the price of the procurement requirement Description (ZW$) exceeds—

1. Administration fees for bid security below $75 000: . . . 3 500,00 (a) eighty-seven million five hundred thousand dollars; in the case of construction works; or 2. Administration fees above $75 000 and below $175 000: . . 6 125,00

3. Administration fees for bid security above $175 000 (b) five million two hundred and fifty thousand dollars, and below $350 000: . . . . . . . . . . . . . . . . . 8 750,00 in the case of goods; or

4. Administration fees for bid security above $350 000 and (c) seventeen million five hundred thousand dollars, in below $875 000: . . . . . . . . . . . . . . . . . . . 13 125,00 the case of consultancy and non-consultancy services; 5. Administration fees for bid security above $875 000 and below procuring entities shall invite bids in accordance with the Act from $1 750 000: . . . . . . . . . . . . . . . . . . . . . 17 500,00 both Zimbabwean (domestic) and foreign bidders. 6. Administration fees for bid security above $1 750 000 and below $3 million: . . . . . . . . . . . . . . . . . . . . . 26 250,00 (5) The threshold for scrutiny of especially valuable procurement contracts by the Special Procurement Oversight 7. Administration fees for bid security above $3 million: . . . 35 000,00 Committee in terms of section 54 of the Act shall depend on whether Foreign bidders shall pay an equivalent in the currency of their bid security. a procuring entity falls within any of the following classifications— (a) Class A, that is to say procuring entities with a procurement budget of thirty-five million dollars or 278 283 Public Procurement and Disposal of Public Assets (General) Statutory Instrument 49 of 2020. S.I. 49 of 2020 [CAP. 22:23 (Amendment) Regulations, 2020 (No. 1) Public Procurement and Disposal of Public Assets (General) PART VI (Amendment) Regulations, 2020 (No. 1) ADMINISTRATION FEES PAYABLE BY CONTRACTORS IN TERMS OF PART XI OF ACT IT is hereby notified that the Honourable Vice President Annual Fee responsible for procurement, in consultation with the Minister of Description (ZW$) Finance and Economic Development, in terms of section 101 of the

1. Contract value above $875 000 and below $8.75 million: . . 1 750,00 Public Procurement and Disposal of Public Assets Act [Chapter 22:23]

2. Contract value above $8.75 million and below $13.125 million: 2 625,00 and after consulting with the Procurement Regulatory Authority of

3. Contract value above $13.125 million and below $17.5 million: 3 500,00 Zimbabwe, has made the following regulations:—

4. Contract value above $17.5 million and below $43.75 million: 4 375,00 1. These regulations may be cited as the Public Procurement

5. Contract value above $43.75 million and below $87.5 million: 8 750,00 and Disposal of Public Assets (General) (Amendment) Regulations, 2020 (No.1).

6. Contract value above $87.5 million and below $131.25 million: 13 125,00

7. Contract value above $131.25 million and below $175 million: 17 500,00 2. The Public Procurement and Disposal of Public Assets

8. Contract value above $175 million and below $262.5 million: 26 250,00 (General) Regulations, 2018, published in Statutory Instrument 5 of 2018 (hereinafter referred to as the “principal regulations”) are amended

9. Contract value above $262.5 million and below $350 million: 35 000,00 by the repeal of section 10 and substitution with the following—

10. Contract value above $350 million and below $525 million: . 43 750,00

11. Contract value above $525 million and below $700 million: . 52 500,00 “Financial thresholds

12. Contract value above $700 million and below $875 million: . 70 000,00 10. (1) For the purpose of section 14(1) of the Act, where the

13. Contract value above $875 million and below $1.3125 billion: . 87 500,00 price of the procurement requirement is below—

14. Contract value above $1.3125 billion and below $1.75 billion: . 131 250,00 (a) three million five hundred thousand dollars, in the

15. Contract value above $1.75 billion and below $2.625 billion: 175 000,00 case of construction works; or

16. Contract value above $2.625 billion and below $4.375 billion: 262 500,00 (b) one million seven hundred and fifty dollars, in the

17. Contract value above $4.375 billion and below $8.75 billion: 352 000,00 case of goods; or

18. Contract value above $8.75 billion: . . . . . . . . . . 437 500,00 (c) with eight hundred and seventy-five dollars, in the Foreign contractors shall pay an equivalent in the currency of their contract.”. case of consultancy and non-consultancy services; procuring entities shall be responsible for managing their own procurement. (2) For the purpose of section 34 of the Act, where the price of the procurement requirement for items not covered in a framework agreement is below— (a) three hundred and fifty thousand dollars, in the case of construction works; or (b) one hundred and seventy-five thousand dollars, in Supplement to the Zimbabwean Government Gazette Extraordinary dated the 14th February, 2020. the case of goods; or Printed by the Government Printer, Harare. 284 277