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Charles Kuwaza

Prosper Ndlovu Business Editor
THE government has increased tender value thresholds by up to 100 percent and decentralised certain procurement roles to local authorities in a move aimed at improving public tender processes.

In a circular sent to local authorities countrywide recently, State Procurement Board (SPB) chairman Charles Kuwaza said the changes were in line with Statutory Instrument 18 of 2015.

“The government has approved new tender value limits for goods and services and for construction works through Statutory Instrument No 18 of 2015,” SPB chairman Charles Kuwaza said.

“Formal tenders for goods and services now start after $500,000 while those for construction works start at a higher threshold of $2 million, representing a 66 percent and 100 percent increase over the last thresholds for each category respectively.”

While competitive quotation thresholds for goods and services remain unchanged at $10,000 the SPB capped informal tenders for the same category at $500,000 from $300,000 with formal tenders set at minimum half a million and above.

Competitive quotations are now applicable in the construction category whose formal and informal tenders have been reviewed from $1 million to $2 million and above, said the board.

“Accordingly, the board resolved that any tender for goods and services already in the pipeline, whose value does not exceed $500,000 be determined by accounting officers without further reference to the board,” said Kuwaza.

“As for construction works all tenders in the pipeline whose values don’t exceed $1 million, should be determined by accounting officers.”

Economic expert Dumisani Sibanda said decentralising procurement was a noble step towards increased efficiency on the back of concerns over corruption in the awarding of tenders.

“Decentralisation enhances local empowerment and increases circulation of money. This quickens decision making processes,” said Sibanda.

He, however, stressed the need for checks and balances to ensure local authorities were patriotic and responsible in handling tenders for transparency and accountability purposes.

Kuwaza said current thresholds for non-refundable bid or cash security of $280 for local bidders and $750 for foreign bidders per tender respectively remain unchanged until further notice.

The refundable bid bond, he said, also remains unchanged at 2.5 percent of the tender sum up to a maximum of $6,000 for local bidders.

Bid bonds for international bidders also remain unchanged at 10 percent.

The board also retained the maximum fee chargeable for tender solicitation documents at $10 as per previous provisions and $80 for construction RFPs until further notice.