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    BusinessProcurement to select companies for 1 bln birr purchase

    Procurement to select companies for 1 bln birr purchase

    Date:

    Around 35 local companies are competing to supply common user items worth one billion birr to 184 federal budgetary offices and their branches. The winner will sign a framework agreement contract with Public Procurement and Property Disposal Service (PPPDS) to supply the items for the coming three years (2017 to 2020).

    Following an international tender call by the Service, 81 bidders were reported to have purchased the bid document while only 35 of them submitted their offers.

    The bid documents which were opened on April 20, 2017 at the Service’s premises, along King George IV Street, were organized in five Lots.

    The items which were categorized in Lots ranges from printers and stationeries to car tires.

    The bidders in each Lot are expected to submit a security bid bond ranging from 30,000 birr to 100,000 birr, in consideration to the type of Lot they are bidding.

    In this regard, bidders who are bidding to supply 29 different types of tires include passenger car radial, light truck radial, light truck diagonal tires and truck and bus diagonal tires.

    Following the technical evaluation, successful bidders will pass to the financial stage.

    Unlike previous experience, even if the tender is an international competitive bid, the Service has decided to award the contract in local currency, Assefa Solomon, senior public relation officer at the Service told The Reporter.

    The winner is expected to make delivery at the premises of the Service, he also said.

    Last year, the Service has procured over two billion birr worth of common user items for 473 federal budgetary institutions and branch offices.

    During, the last nine months, the Service has purchased goods and services including common user items worth 15 billion birr.

    From this, the Service has awarded a two billion birr contract for construction of buildings and other procurements included under framework purchases.

    Given the current condition of drought, the Service made one of its biggest purchases of wheat, this year. It bought 1.7 million tons of wheat at a total price of 8.8 billion birr.

    In the same vein, on behalf of the federal budgetary offices, 140.7 million birr was earned from the disposal of scrap metals, the sale of used vehicles and other materials.

    Mandated to procure and dispose goods on behalf of federal public offices and universities, the Service has made three billion birr in purchases for different offices during the first half of the current fiscal year.

    Since its establishment in 2010, the PPPDS has procured over 51 billion birr worth of goods, including 11 million quintals of wheat, which cost 21 billion birr.

    Over 60 percent of the budgets of many public institutions go to procuring public goods and services, representing 15 percent of the country’s GDP.

    All the five lots are not reserved for the company which has managed to make the least offer. In fact, wining company will be asked to supply only 60 percent of the items while the suppliers with the second and third lowest offers will also be given the opportunity to supply the rest 40 percent at the price offered by the wining company.

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