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Public procurement: AFIC/PPDA empower women owned businesses to win contracts

Training of women-led businesses in public procurement at PPDA offices
  • 03/05/2024

Africa Freedom of Information Centre (AFIC) in partnership with the Public Procurement and Disposal of Public AssetsAuthority (PPDA) are working to empower women owned businesses in four select entities in Uganda; PPDA, Wakiso DLG, KCCA and Mbarara City.

 

This is aimed to increase women’s participation in public procurement.

 

AFIC research conducted between 2021 and 2022 discovered that only 1% of women-led busineses participate and win public procurement contracts across the five study countries; Kenya, Tanzania, Rwanda, Ethiopia and Uganda.

 

AFIC ED, Mr. Gilbert Sendugwa(right) handing over research report in participation of women led businesses in public procurement to partners in Ethiopia in 2023

Among the barriers discovered by the research was lack of capacity, lack of access to information and access to finance among others.

 

To address capacity building barriers and lack of information, PPDA and the AFIC were selected as part of the Lift Program by open contracting partnership under the shared theme of leveraging Open Contracting to advance social inclusion, particularly to  enhance women’s participation in public procurement in Uganda.

 

So far, the project has trained over 100 women owned businesses in Kampala and Mbarara on how to prepare responsive  bids, the new PPDA guidelines on reservation scheme for special interest groups, why and how to register the business and the existing public procurement opportunities.

 

Capacity building in Kampala

 
On 5th April 2024, AFIC together with PPDA conducted a capacity building for women enterprenuers at PPDA offices aimed to empower women to participate in public procurement.
 

The overall objective of the session was to contribute towards increasing the 1% women participation to atleast 5% by the end of the 18 month long project.

 

 

The session attracted 51 participants who learnt about the Key highlights of the PPDA Act and Regulations- What the Women/Bidder Should Know?, guidelines on Reservation schemes to promote participation of women, youth & PWDs, procurement opportunities, and how to prepare responsive bids.

 

Speaking during the session, AFIC executive director, Mr. Gilbert Sendugwam explained the need for women to be empowered to participate in public procurement.

As you may know, every year our government spends well over 60% of the national budget through public procurement, making it a critical policy instrument that can be used to empower everyone financially and economically. However, our research found that for various legal, policy, operational and social cultural barriers women owned businesses are significantly excluded from participating in public procurement.

 

Inability to meet stiff legal requirements, inability to prepare and submit responsive bids, lack of capital and access to information as well as delayed paymentspresented some of the most daunting challenges. As a result, only a fraction of the 38.2 of the business were registered in the government supplier database and less than 1% were actually participating in public procurement, 69% of whom were based in Kampala and Wakiso and mainly in low value contracts that have small profit margins.”

 

Key highlights of the PPDA Act and regulations – What the Women/Bidder
should know?
 

Sophia Nassali Masagazi, stated the following changes

Key Changes

    1. Reduction o factors in Administrative Review from 3 -2

    1. Provision for special interest groups under reservation
      schemes

    1. Provision for incorporation of sustainable public procurement

    1. Provision for electronic records and communication

Objectives of the Amendments

    1. harmonize the PPDA Regulations. Both CG and LG PDE’s shall use the same set of regulations

    1. operationalize the provisions of the PPDA (Amendment) Act, 2021

    1. create efficiency in the procurement process through reduction of procurement lead times

    1. promote the use of procurement as a social 0 economic tool e.g., sustainable procurement

    1. Tsimplify procurement and reduce the cost of doing business without compromising quality

Key Highlights from the Guidelines, 2024
Bid Security: Reduced the bid security amount for guarantees not to exceed 1% of the estimated cost of the procurement
Range of securities such as bid securing declarations and insurance bid bonds (payable on demand)
Performance Security: Reduced the performance security amount not to exceed 5% of the contract sum.
Introduced performance-securing declarations and performance bonds.
Code of Ethical Conduct: To be submitted by providers in all bidding proceedings (on ESHS requirements).
Pre-Bid/Site Visits: Bidders to be given 3 working days’ notice. At least 3 days to be allowed before the deadline.

 

Guidelines 2024

Ronald Tumuhairwe, the local content manager at PPDA, explained various guidelines on the new reservation scheme that women can leverage to increase their participation in public procurement.

Guidelines on the reservation scheme for special interest groups

    1. Define the woman-owned business: an enterprise registered with relevant government bodies 51% owned, controlled, or managed by Ugandan

    1. Youth is 18 to 30 years What are the reservations that have been made for women?

    1. By budget, all government entities reserve at least 15% to women, youths or PWDs

    1. Reservations: all procurements within 30m (central government) 10m (local government); priority should go to women, youths, and PWDs.

    1. Women-owned businesses should not be charged bidding fees (Clause 4.3)

    1. Requested average annual turnover shall not exceed half the estimate

    1. Experience should not exceed one substantially

    1. Guideline provides for participation of registered organizations
      Guidelines gazette on 22 nd March 2024
    2.  

Opportunities at KCCA

Mr. Emeru Ronald from Kampala Capital City Authority explored opportunities that exist at the entity that women owned businesses can tap into.

He highlighted what women need to participate in winning the contracts at KKCA, which he said they must be registered on eGP and indicate that they are a women owned business. This will enable them be considered under the scheme.

Preparing responsive bids

Mrs, Baluka Mariam trained the women on how to prepare responsive bids.

Took the trainees through the eGP Procurement, Disposal, BEB (Best Evaluated Bidder),
Registering as a Supplier
What do you need to register?

    1. BRN (Business Registration Number)

    1. You can register as Individual, Company, PPE,

    1. You need TIN, NIN, Trading License (from your area of
      business location)

    1. For individual, a CV is needed

    1. PPDA registration fees which vary from your category of
      choice.

View the video on how to prepare responsive bids

 

https://www.youtube.com/watch?v=slBBpIg9GMg

 

https://www.youtube.com/watch?v=slBBpIg9GMg[/emb