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Ethiopian Government Procurement Methods

Chapter Three outlines the approved methods of public procurement in Ethiopia, detailing various tendering procedures and alternative procurement methods. It emphasizes the importance of understanding regulatory frameworks and the implications of different procurement methods on project delivery. The chapter also discusses the roles and responsibilities of public bodies and the Federal Public Procurement and Property Administration Authority in ensuring effective procurement practices.
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0% found this document useful (0 votes)
34 views57 pages

Ethiopian Government Procurement Methods

Chapter Three outlines the approved methods of public procurement in Ethiopia, detailing various tendering procedures and alternative procurement methods. It emphasizes the importance of understanding regulatory frameworks and the implications of different procurement methods on project delivery. The chapter also discusses the roles and responsibilities of public bodies and the Federal Public Procurement and Property Administration Authority in ensuring effective procurement practices.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Chapter Three

Approved Methods of Ethiopian Government Purchasing

23/11/2025 1
Learning Outcomes:

• Identify and articulate the approved public procurement


methods.
• Analyse when to utilize different procurement methods
effectively.
• Differentiate between tendering procedures and alternative
procurement methods
• Recognize the regulatory framework guiding tendering
practices.
• Assess the implications of different procurement methods on
project delivery.

23/11/2025 2
Contents

3.1 Introduction to Tendering

• Overview of the tendering process


• Regulatory requirements and standards

3.3 Alternative Methods of Government Purchasing

• Open Tendering: International and National Competitive Bidding


• Two-stage Tendering
• Request for Proposals
• Restricted Tendering
• Request for Quotations
• Direct Contracting / Direct Purchasing
• Single Source Procurement

3.2 Considerations in Government Purchasing

• Key considerations in selecting procurement methods


• Factors influencing procurement decisions

23/11/2025 3
Proclamations
• FDRE public Procurement proclamation 430/2005
• The FDRE proclamation no. 649/2009
• The Federal Public Procurement and Property Administration
Proclamation No. 1333/2024

Explain the differences and similarities among these proclamations


…………………………..

Directive:
Directive No. 1073/2025 Federal Public Procurement Directive

23/11/2025 4
Overview: New Proclamation

• The Federal Public Procurement and Property Administration


Proclamation No. 1333/2024 (Revised)

• The Ethiopian Federal Public Procurement and Property


Administration Proclamation No. 649/2009 had gaps in regard to its
content and implementation

• It has become necessary to redefine the scope of application of the


Federal Public Procurement and Property Administration
Proclamation to encompass Public Enterprises; WHEREAS; it is
found necessary to clarify the administrative accountability resulting
from violation of the law in the execution of Public Procurement
and Property Administration by improving the transparency and
accessibility of the public procurement and property administration
system;

23/11/2025 5
Principles

1. Value for money in the use of public fund;


2. Non-discrimination among candidates and bidders except in cases
of preference specifically provided for in this Proclamation;
3. Transparency and fairness of the criteria on the basis of which
decisions are given in public procurement and property disposal as a
whole, as well as of decisions in the conduct of each specific case of
procurement and property disposal to all concerned;

23/11/2025 6
Cont’d

4. Ensuring that any process of public procurement or property


disposal has not any harmful impact on the environment, takes into
consideration life cycle cost analysis and promotes recycling;

5. Ensuring that the processes of procurement and property disposal


are executed in an efficient, effective and economic manner;

6. Carryout functions of procurement and property administration


with integrity;

7. Accountability for decision made and measures taken in regard to


public procurement and property administration;
23/11/2025 7
Structure

23/11/2025 8
Structural Arrangement

• The Parliament: establish a new or revised proclamation and


monitor the execution

• MoF: establishes directive, monitors Agency, report to the


parliament through the PM.

• The Public Procurement and Property Authority(PPA): monitors


all public bodies, reports to the MOF, establishes detail
guidelines, standards forms

• Public Bodies: Public bodies do have their own hierarchical


relationship that may involve the purchasing/Property
Administration head, the procurement endorsing committee,
adhoc

23/11/2025 9
Objective of the Authority

• The objective of the Authority is to achieve sustainably effective


and efficient procurement and property administration by creating
the requisite capability, ensuring adherence of the conduct of
procurement and property disposal

23/11/2025 10
Powers and Duties of the Authority

• Advise the Federal Government on public procurement and property


administration policies, principles and execution
• Provide technical assistance to the Regional Governments and City
Administrations
• Conduct research on the system of Public Procurement and Property
Administration and the implementation
• Submit compiled annual report to the Ministry regarding the overall
performance of the public procurement and property administration
system based on information obtained from Public Bodies
• Provide data in such detail as the Ministry may request regarding the
nature and volume of public procurement executed by each Public
Body, as well as on matters of property administration
• Submit to the Ministry report of default constituting failure to
discharge duty

23/11/2025 11
Cont’d

• Set standards for common user items to Public Bodies in


collaboration with the appropriate Government Agencies, and
ensure uniform compliance with such standards

• 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,

23/11/2025 12
Cont’d

• Publish the documents prepared as per Sub-Article 6 of this Article,


decisions given by the Authority on reports of default submitted to it
by Public Bodies against non- compliant suppliers, buyers of
disposable property, bidders or candidates in the process of
procurement or property disposal, audit findings and other
matters that should be disclosed to the public using the electronic
system or by other appropriate means of communication

• In collaboration with the Ministry and other pertinent public entities,


conduct studies on the organization of public procurement and
property administration units and other departments in a Public Body
performing related functions, taking into account the particular
nature of their duties,

23/11/2025 13
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,
23/11/2025 14
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

23/11/2025 15
Cont’d

• Cause any bidder or supplier suspended by a decision of a


competent authority of a Regional Government from participating in
public procurement and sale of disposable property of such region, not
to participate in public procurement and sale of disposable property of
the Federal Public Bodies where it is satisfied that the suspension
appropriate,
• Establish institutional linkage and engage cooperatively with
entities working for professional development in public procurement
and property administration and have interest to participate in the area
• Take possession of and administer , cause the disposal of the
property in accordance with the decision of the Minister, any property
of the Federal Government that is not owned by any Public Body, or
that is transferred to the Federal Government by virtue of the law or
by decision of a competent court,

23/11/2025 16
Cont’d

• In collaboration with other entities, conduct a study to establish a


system for the handling, preservation and disposal of
properties that are harmful to health or the environment such as
expired and dangerous chemical substances or products, discarded
electronic equipment, drugs, radiation emitting items, industrial
wastes, and agricultural bi-products

• Regulate and administer the electronic system of public


procurement and property administration to be established by
the Ministry pursuant to this Proclamation

• Discharge the powers and duties vested in it by other provisions of


this Proclamation and other relevant laws.

23/11/2025 17
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,

• Ensure that a strategy for large procurements pertaining to projects implemented by


the Public Body is in place before such procurements are carried out;

• 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

23/11/2025 18
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;

• Delegate to the procurement and property disposal unit the responsibility of


endorsing procurements that do not need endorsement by the procurement
endorsing committee;

• 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;

23/11/2025 19
3.1 Introduction to Tendering
Overview of the tendering process

• The tendering process is a key route for businesses seeking to win


contracts in both public and private sectors.

• It involves formal stages and rules, demanding strong knowledge


of procurement and bid management.

• From the Invitation to Tender (ITT) to the submission of a


tender bid, mastering the process boosts competitiveness and
ensures value delivery.

• Success depends on understanding bid management, bidding


procedures,
23/11/2025 and frameworks like PQQ (Pre-Qualification20
Understanding the Tender Lifecycle

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

23/11/2025 21
Cont’d

Initial Planning

Conduct market research and Preliminary


Market Engagement (PME)
Purpose: Define needs
and set the direction for
procurement.
Identify procurement needs, risks, and
levels of competition

Key Activities:

Determine the procurement strategy and


tendering approach
Outcome:
A clear procurement plan
and strategy ready for
documentation. Prepare and align tender documents
accordingly

23/11/2025 22
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.

23/11/2025 23
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.

23/11/2025 24
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.

23/11/2025 25
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.

23/11/2025 26
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.
23/11/2025 27
3.2. Considerations in Government Purchasing

• Key considerations in selecting procurement


methods

• Factors influencing procurement decisions

23/11/2025 28
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

23/11/2025 29
Procurement Approaches…….. Proclamation 1333/2024 and
DIRECTIVE NO. 1073/2025
Strategic procurement

Framework procurement

Public Bodies may execute Joint procurement


procurement using the
procurement approaches listed
hereunder depending on the Lease procurement
nature of the procurement:
Own force account procurement

Turnkey procurement

Electronic reverse auction

23/11/2025 30
1. Open tendering

• Open tendering is a method of procurement whereby public bodies


execute procurement in such a way that gives equal opportunity to all
interested bidders, and shall be conducted in accordance with the
standard bid documents

• Public Bodies shall use open tendering as default method of


Procurement, and shall not split procurement with the sole intent of
avoiding open tendering.

• When Public bodies employ other methods of Procurement, they shall


take in to consideration the procedures laid down in the Directive
issued, and the method to be used shall be included in the procurement
plan

23/11/2025 31
Cont’d

 Open bidding is the process through which public announcement-usually through


official newspaper/e-GP- of bid is made so as to procure goods/services in a
manner that keeps price offers minimum by way of competition.
 Open Bidding :national and international competitive bidding

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:

23/11/2025 32
Cont’d

Construction works: Up to ETB 3,000,000,000.00 (Three


Billion Birr)

Goods: Up to ETB 1,000,000,000.00 (One Billion Birr)

Consultancy services: Up to ETB 90,000,000.00 (Ninety


Million Birr)

Non-consultancy services: Up to ETB 250,000,000.00


(Two Hundred Fifty Million Birr).
23/11/2025 33
Cont’d
• Public bodies must use standard bid documents issued through
the government’s e-procurement system for open tenders.
• For national competitive bidding, standardized tender
documents prepared by the Procurement Authority must be
Use of Standard
Tender Documents
used.
• Exceptions apply only when permitted by the Authority.

• Only domestic suppliers may participate in national open


tenders, unless stated otherwise in the Proclamation or
Directive.
• A domestic supplier refers to a bidder:
Participation in • Registered and operating under Ethiopian law
National Open • Holding a valid business license, TIN, and commercial
Tenders registration certificate
• Regardless of the nationality of shareholders or owners

23/11/2025 34
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:

• Construction works: Above ETB 3,000,000,000.00 (Three Billion


Birr).
• Goods: Above ETB 1,000,000,000.00 (One Billion Birr).
• Consultancy services: Above ETB 90,000,000.00 (Ninety Million
Birr)
• Non-consultancy services: Above ETB 250,000,000.00 (Two
Hundred Fifty Million Birr).
23/11/2025 35
Cont’d

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)).
23/11/2025 36
Execution of International Competitive Bidding

• Language: All tender notices and documents shall be prepared in English.


• Publication: Notices shall be published through the government e-
procurement system.
• Bid Preparation Time: Bidders must be given sufficient time as per
Appendix 6 of the Directive.
• Requirements: Statements of Requirements must comply with domestic
standards and align, where possible, with international standards.
• Currency: Bid prices and securities from foreign bidders must be in a
freely convertible currency acceptable in international trade.
• Total Cost: Prices must include all costs (taxes, customs, insurance,
transport, etc.) from port of entry to delivery.
• Local Inputs: If foreign bidders use domestic inputs, that portion of the
contract shall be expressed in ETB.
• Governing Law: Unless stated otherwise, Ethiopian law governs all
contract disputes.

23/11/2025 37
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.

Conditions for Applying Non-Open International Methods:


• The procurement method and financial thresholds meet the requirements
of the Directive
• Conducting procurement internationally (outside open tendering) offers
advantages in time and quality
• The process adheres to principles and procedures of open tendering (see
Article 62, Section Three)
• There is sufficient justification that the procurement cannot be done
domestically
• The process maximizes competition and encourages participation from
the widest pool of qualified bidders.

23/11/2025 38
Threshold

23/11/2025 39
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

1. Conditions Requiring Prequalification


• High-value/complex projects involving design, manufacturing,
installation
• Supply and installation of essential or high-importance equipment
• Significant bid-preparation costs requiring competence-verified
bidders
23/11/2025 40
Prequalification Notice & Documents:
• Tender notice must state ―invitation for prequalification
• Documents follow standard pre-qualification templates
• Evidence required: similar experience, manpower/equipment, production capacity,
on-going works, financial capacity, positive performance

Evaluation & Participation Rules:


• Evaluation based on prequalification criteria
• All bidders meeting criteria may participate no limit on number
• JVs/consortiums allowed unless they restrict competition
• Prequalified JV/consortium cannot submit individually later

Approval, Notification, and Restrictions:


• Public Body notifies successful and unsuccessful applicants simultaneously
• No contract with bidders who provided false information or no longer meet
criteria
• Tender documents distributed electronically; remaining process follows
competitive bidding rules

23/11/2025 41
Cont’d
2. Two-Stage Bidding: Stage 1

• Announcement must state two-stage process


• No bid security or price in Stage 1
• Document includes general requirements, questions, evaluation criteria
• Technical proposals opened at stated date/time
• Evaluation forms the RFP and identifies eligible bidders
• Clarification discussions allowed

Two-Stage Bidding: Stage 2


• Second-stage document distributed electronically to qualifying bidders
• Bidders submit full proposal, including bid security and price, via e-GP
• Invitation must specify submission deadline, opening date, and
compliance requirements

23/11/2025 42
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

23/11/2025 43
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

23/11/2025 44
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)
23/11/2025 45
Cont’d

QCBS: Evaluation Criteria


• Points (ranges):
• Consultant experience: 5–10
• Methodology & work plan: 20–50
• Key experts’ qualifications: 30–60
• Knowledge transfer: 5–10
• Ethiopian professional participation (for foreign firms): 5–10
• Technical requirements:
Minimum technical score: 70%
• Technical: 80% | Financial: 20%

23/11/2025 46
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

23/11/2025 47
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

23/11/2025 48
Cont’d

Limited Tendering: Overview


• Competition among selected suppliers only
• Conducted electronically using supplier addresses
• No public tender announcement
• Two methods:
• Restricted Bidding
• Request for Quotation (RFQ)

23/11/2025 49
Cont’d

1. Restricted Bidding: When Used

• Goods/works/services available only from limited suppliers


• Previous open tender failed or bidders did not meet specs
• Many suppliers exist but procurement value is below threshold
• Procurement of hotel, office/warehouse rental, or building lease
(value above threshold allowed with justification)

23/11/2025 50
Cont’d

Restricted Bidding: Key Rules


• Invite all known suppliers OR at least five registered suppliers
• Bidding documents sent electronically
• Bid opening can occur earlier if all respond
• Bid assurance form may replace bid security

• Thresholds:
• Works: 60M Birr
• Goods: 12M Birr
• Consultancy: 7M Birr
• Services: 9M Birr

23/11/2025 51
Cont’d

2. Request for Quotation (RFQ): When Used


• RFQ is allowed when:
• Items urgently needed
• Not suitable for bulk procurement
• Market-ready or widely available
• Conducted through e-procurement; if not feasible → invite min. 3
suppliers

Approval thresholds:
• Works: 2M Birr
• Goods: 800k Birr
• Consultancy: 500k Birr
• Services: 600k Birr

23/11/2025 52
Cont’d

RFQ: Key Requirements:


• Invite at least 3 registered suppliers
• Identities of suppliers kept confidential
• Each supplier submits one quotation only
• No price negotiation
• Compare prices with market reference or market analysis
• Quotation + purchase order = valid contract

23/11/2025 53
Cont’d
RFQ for Special Needs:

RFQ allowed without monetary limit when:


• For research, studies, medical accessories, or short shelf-life
items
• Items are confidential
• Head of Public Body approves based on
quality/timeliness/efficiency
• Universities may procure student food supplies under
framework agreements
• Requires market survey before buying

23/11/2025 54
Cont’d
Direct Procurement: Conditions

Direct procurement allowed when:

• Additional goods/services ≤ 25% of original contract


• Additional construction works ≤ 30% of original contract
• Items cannot be sourced elsewhere due to incompatibility
• Special shopping method justified for unavailability
• Small purchases ≤ 50,000 ETB per transaction
• Buying from another Public Body when cheaper, non-repetitive
• Confidential, research, medical items permitted

23/11/2025 55
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

23/11/2025 56
Direct Procurement Negotiations

Negotiations must cover:


• Technical specs
• Price & payment terms
• Delivery timeline
• Warranty & after-sales service
• Value for money & public interest
Procedure:
• Establish negotiation team (minimum 3 members)
• Prepare negotiation plan
• Document all negotiation steps
• Head of Public Body approves results before contracting
23/11/2025 57

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