Reference: Government Procurement and Property Administration Proclamation of Ethiopia No.649/2009
Methods of Public Procurement
The following methods shall be used in public procurement:
a) Open Bidding;
b) Request for Proposals;
c) Two stage Tendering;
d) Restricted Tendering;
e) Request for Quotation;
f) Direct Procurement.
Procedure of open tendering
Advertisements
1)Invitation to bid shall be advertised in at least one times in a national news paper of general circulation which is published in the language the bidding document is prepared.
Where the public body finds it necessary, it may, in addition to the medium mentioned above, advertise the bid on a national radio and television.
Provision of Bidding Documents
The bidding document shall be delivered to candidates on working days between the date of publication of the invitation to bid and the closing date of the bid and in the manner specified in the invitation to bid.
Bid Security
Public bodies shall include in the bidding documents a condition that bids must be accompanied by a bid security. The amount of such bid security shall be sufficient to discourage irresponsible bidders.
A bid security will be forfeited if a bidder withdraws his bid within the validity period thereof or in the case of a successful bidder, if the bidder repudiates the contract or fails to furnish performance security, if so required.
Submission and Receipt of Bids
Bids shall be submitted in writing, signed and in a sealed envelope, to the place and before the deadline stated in the invitation to bid.
Opening of Bids
At the time stipulated in the bidding document for opening of bids, which should follow immediately after the deadline for submission of bids, the public body shall open all bids received before the deadline.
However, the envelope containing the price offered by the bidder shall be read after the evaluation of the technical proposal where technical and financial proposals are submitted in two separate envelops.
Notification of Award and Signing of Contract
Prior to the expiry of the period of bid validity, the public body shall notify the successful bidder that its bid has been accepted. The notification of award shall specify the time within which the contract must be signed. The unsuccessful bidders shall also be informed as to who the successful bidder is and why they have lost the bid.
Contract Security
A supplier shall provide the public body with a contract security to make good any damage the public body may sustain as a result of default by the supplier under the contract.
The type of procurement for which contract security is required and the type and amount of contract security shall be determined by a directive to be issued by the Minister.
Advance Payment
The amount of advance payment that may be allowed to suppliers in public procurement and the manner in which it is made available shall be determined by the directive to be issued by the Minister.
Restricted tendering
Conditions for use of Restricted Tendering Public bodies may use restricted tendering as a method of procurement only where the following conditions are satisfied:
1) it is a ascertained that the required object of procurement is available only with limited suppliers;
2) the cost of procurement does not exceed the threshold specified in respect of restricted tendering in the directive to be issued by the Minister; or
where a repeated advertisement of the invitation to bid fails to attract bidders in respect of a procurement subject to the directive to be issued by the Minister.
International competitive bidding
Open International Bidding
Open international bidding shall be used whenever in national open bidding an effective competition cannot be obtained unless foreign firms are invited to bid or for procurements above a threshold level for national bidding to be determined by a directive. A procurement may be effected by means of national competitive bidding notwithstanding that the cost of the procurement exceeds the threshold established in the directive for national bidding if it is ascertained that the required object of procurement is available only locally.