Ethiopian Government Procurement Methods
Ethiopian Government Procurement Methods
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Learning Outcomes:
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Contents
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Proclamations
• FDRE public Procurement proclamation 430/2005
• The FDRE proclamation no. 649/2009
• The Federal Public Procurement and Property Administration
Proclamation No. 1333/2024
Directive:
Directive No. 1073/2025 Federal Public Procurement Directive
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Overview: New Proclamation
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Principles
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Cont’d
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Structural Arrangement
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Objective of the Authority
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Powers and Duties of the Authority
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Cont’d
• Prepare, approve as the case may be, and issue standard bid
documents, forms, manuals and procurement lists and
catalogue which are necessary for the implementation of the
procurement and property administration legal framework, as
well as the code of conduct that the procurement and property
professionals and officials are required to observe,
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Cont’d
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Cont’d
• Introduce and administer an efficient system of registration for candidates
who are interested in participating in public procurement or sale of disposable
property,
• Draw up strategic plan for institutional and staff capacity building in
public procurement and property administration and give training accordingly
• Set up, develop, maintain and update a data base that covers the entire
spectrum of public procurement and property administration
• Strive to maintain harmonized system of procurement and property
administration between the Federal and Regional Governments
• Conduct compliance or performance audit and follow up on the execution
of public procurement and property administration, as well as on
procurements of public- private partnership in accordance with its own
plan, or on receipt of allegation of misconduct, by suspending the process in
case of the latter , and take or cause to be taken, as the case may be, any
appropriate measure on the basis of the findings
• Give warning to or suspend for a definite or indefinite period of time
from participating in public procurement or sale of disposable property on the
basis of reports of default brought to it where it establishes that such default
has in fact been committed,
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Cont’d
• Follow up and Monitor whether the activities of public procurement and
property administration are carried out in conformity with this
Proclamation and the Directive issued hereunder, as well as conduct
investigation based on complaints from Public Bodies, suppliers or the public,
and cause corrective action to be taken, and report to the Public Body
competent to take administrative measure as the case may be
• Require documents, records, reports and any other evidence from Public
Bodies, candidates, bidders, suppliers or from any other person; summon and
examine witnesses and the parties concerned with the procurement or sale of
the disposable property, and require them to give oral testimony under oath
• Report the matter to the competent body, where it determines that the
monitoring and investigation carried out in accordance with Sub Article 15 of
this Article necessitates civil or criminal action
• As necessary, in collaboration with appropriate entities, determine the
knowledge and skill that professionals are required to possess, certify,
register and monitor such professionals, render the necessary support for
the establishment of procurement and property administration professionals
association, and delegate, as
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Cont’d
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Cont’d
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Duties and Responsibilities of Heads of Public Bodies
• Ensure that the procurements and property administration activities of the Public Body are
plan based using the electronic system and carried out in conformity with the
principles
• Establish unit in charge of procurement and property disposal activities of the Public
Body which is adequately staffed with procurement and property administration
professionals,
• Setup one, or where the nature of the procurement and property administration activities of
the Public Body so require, more than one procurement and property disposal
endorsing committee, and in respect of complex procurements ad-hoc bid evaluation
committee and disposable property valuation committee as may be necessary
• Ensure that procurement and Property professionals, staff and officials assigned in the
procurement and property administration
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Cont’d
• Cause corrective measures to be taken on audit findings of irregularities in
the conduct of procurement and property administration and ensure that reports
on such measures are submitted to the appropriate bodies;
• Where a Public Body is organized in such a way that it has cost centers under
it, and the head of that Public Body considers it to be conducive to efficiency,
delegate to the heads of such cost centers the duty to carry out the whole range
of procurement and property administration activities except procurement plan;
• Ensure the timely submission of procurement plan and reports on the execution
of procurement, utilization of vehicles and fuel, and on other matters that have
to be reported to the Authority using the electronic system;
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3.1 Introduction to Tendering
Overview of the tendering process
Key Points:
• Ensures competitive,
transparent, and value-
The tender lifecycle is a driven procurement
structured process that • Benefits both buyers
guides PBs in procuring (value for money) and
Main Idea: works, goods, services, suppliers (fair
CS from external opportunity)
suppliers
• Follows a clear
sequence from
planning to
submission and
evaluation
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Cont’d
Initial Planning
Key Activities:
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Cont’d
Key Activities:
• Develop key documents such as:
• Request for Proposal (RFP)
• Invitation to Tender (ITT)
• Define requirements, scope of work, and
evaluation criteria.
Bid Document • Ensure clarity to attract suitable suppliers and
Production ensure fairness.
Purpose: Outcome:
Prepare detailed Comprehensive
and transparent tender
tender documentation
documents. ready for
release.
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Cont’d
Key Activities:
• Issue tender documents to the
market.
• Suppliers prepare and submit bids
or proposals.
• Review submissions for
Tender completeness and responsiveness.
• Marks the stage where potential
Submission partners’ capabilities become
Phase visible.
Purpose: Outcome:
Invite and All qualified bids
collect collected for
supplier evaluation.
bids.
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Cont’d
Key Activities:
• Open bids (technical and financial)
• Evaluate technical criteria (compliance,
capacity, methodology)
• Evaluate financial offers (price, cost-
effectiveness)
• Apply scoring and ranking according to set
criteria
Bid • Identify the lowest evaluated responsive
Evaluation bidder
Purpose: Outcome:
Select the Provisional
most winning
responsive bidder
and identified for
advantageou post-
s offer. qualification
review.
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Cont’d
Key Activities:
• Review and confirm bidder’s documents and
references
• Conduct site visits or reference checks
Post- • Verify financial capacity and technical resources
Qualification • Record results in a Post-Qualification Report
Purpose: Outcome:
Verify that Confirmed
the selected and verified
bidder is truly bidder ready
capable and for contract
compliant. award.
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Cont’d
Key Activities:
• Issue Notice of Award to the winning
bidder
• Sign contract and publish award results
• Manage performance and monitor
Contract compliance
Award & • Handle payments, changes, and
Management contract closeout
Purpose: Outcome:
Formalize the Successful
contract and and
ensure compliant
delivery contract
performance. implementati
on ensuring
value for
money.
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3.2. Considerations in Government Purchasing
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Alternative Methods of Government Purchasing
PROCLAMATION 1333/2024 AND DIRECTIVE NO. 1073/2025
Open tendering
Selective tender:
Two stage bidding
Prequalification tender
Authorized Request for expression of interest
Methods of
Procurement: Limited tendering:
1. Restricted tender
2. Request for Quotation/RFQ
Direct procurement
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Procurement Approaches…….. Proclamation 1333/2024 and
DIRECTIVE NO. 1073/2025
Strategic procurement
Framework procurement
Turnkey procurement
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1. Open tendering
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Cont’d
Public Bodies may use NATIONAL OPEN TENDERING under the following
conditions:
a) When it is confirmed that the required goods, construction works, other services,
or consultancy services can be procured domestically, without applying any financial
threshold.
b) When the procurement can be fulfilled by domestic suppliers and the estimated
cost does not exceed the following thresholds:
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Cont’d
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International Competitive Bidding
1. Procurement through international open tender shall be carried out
in accordance with Article 35, Sub-Article (3) of the Proclamation.
2. Public Bodies may use international open tendering when the
estimated procurement value exceeds the following thresholds:
When to Apply
• If the estimated value fits national tender limits but foreign participation
is essential → use International Open Tender (Art. 35(3)(b)).
Manufacturer Requirement
• Non-manufacturer bidders must prove goods’ origin directly from the
manufacturer when requested.
Representation Requirement
• Foreign bidders with local representatives must provide authenticated
documentation defining scope and authority.
Regulatory Oversight
• The Procurement Authority, in consultation with stakeholders, sets and
periodically updates commercial terms for international tenders (Art.
35(6)).
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Execution of International Competitive Bidding
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Cont’d
Key Points:
• When foreign participation is required to ensure effective competition,
procurement may be conducted through restricted, selective, or direct
tendering — in line with the Proclamation and the Directive.
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Threshold
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Selective Tendering
Selective Tendering:
• Selective procurement uses more than one stage
• Only shortlisted bidders from Stage 1 compete in Stage 2
• Involves: prequalification, two-stage tendering, expression of
interest
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Cont’d
2. Two-Stage Bidding: Stage 1
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Cont’d
3. Request for Expression of Interest (EOI)
• Required when consulting services exceed ETB 7,000,000
• TOR describes background, scope, objectives, limitations
• EOI must state service type, deliverables, timeline, qualifications,
required information, submission place and deadline
• 3–7 top-ranked candidates shortlisted
• Evaluation must ensure quality, economic benefit, and competition.
• Negotiations cannot change core bid content or reduce service
quality
• Two-envelope system for technical and financial proposals
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Cont’d
Terms of Reference (TOR) must include:
• Background & objectives
• Scope and limitations
• Required deliverables
• Basis for consultants to prepare responses
EOI must state:
• Type of service & expected outputs
• Timeline
• Required qualifications & experience
• Submission details (information required, deadline, place
Shortlisting:
• Select 3 to 7 top-ranked qualified consultants
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Cont’d
Invitation, Submission & Negotiation Rules
• Shortlisted consultants invited simultaneously
• Bidding documents may be provided free
• Negotiations cannot change the core content or quality
• Negotiations focus on scope, method, resources, deliverables
Consultant Selection Methods
Selection may use:
• Quality & Cost Based Selection (QCBS)
• Quality-Based Selection (QBS)
• Fixed-Budget Selection
• Least-Cost Selection
• Consultant Qualification Selection (CQS)
• Single-Source Selection (SSS)
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Cont’d
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Cont’d
Quality-Based Selection (QBS)
Used when:
• Services are complex or highly specialized
• Approaches differ widely
• Price comparison is not meaningful
Process:
• Open technical proposals only
• Highest technical score selected
• If price exceeds budget, consider second-ranked consultant
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Cont’d
Other Selection Methods
Fixed-Budget Selection (FBS):
• Simple, well-defined services
• Highest technical score within budget wins
Least-Cost Selection (LCS):
• For low-value, non-complex services
• Must meet minimum technical qualification
Consultant Qualification Selection (CQS):
• Value ≤ ETB 1,000,000
• Select most qualified based on CVs/EoI
• Invite for single proposal & negotiate
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Cont’d
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Cont’d
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Cont’d
• Thresholds:
• Works: 60M Birr
• Goods: 12M Birr
• Consultancy: 7M Birr
• Services: 9M Birr
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Cont’d
Approval thresholds:
• Works: 2M Birr
• Goods: 800k Birr
• Consultancy: 500k Birr
• Services: 600k Birr
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Cont’d
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Cont’d
RFQ for Special Needs:
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Cont’d
Direct Procurement: Conditions
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Cont’d
Direct Procurement: Procedures
• Must prepare justification memo
• Ad-hoc committee of 3+ members for special shopping
• Items documented, suppliers recorded, receipts stored
• Diplomatic missions: USD 300 per procurement, yearly USD
6,000
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Direct Procurement Negotiations