All Categories


2 minutesread

What is Public Procurement?

Public Procurement means acquisition by purchase, rental, lease, hire purchase, license, tenancy, franchise, or any type of works, services or supplies or any combination up to the time a user consumes or utilises a service as per the requirement and in line with the PPDA Act and other legal frameworks.

What is Preference Scheme?

A Preference scheme is an arrangement where an advantage is given to local bidders at the financial evaluation of bids for works, goods and services in a public procurement process.

When is a preference scheme used?

  • Where the open domestic or open international bidding methods are used during the financial evaluation of works, supplies and non-consultancy services
  • In respect of consultancy services, where proposals are invited from both national and foreign consultants and the quality and cost-based selection method.

How is the margin of preference applied to a bid?

When procuring goods, works or services under open bidding the following shall apply;

  • The margin of preference shall be 15% in respect of goods
  • 7% in respect of works or services.

Do all locally made and imported goods qualify for the preference scheme?

Only locally made goods qualify for preference schemes where;

  • The labour or the value addition to the goods is more than 30%
  • The production facility in which the goods are manufactured, assembled or processed is in Uganda and is engaged in the manufacturing, assembling or processing of the goods at the time of submission of the bid

What is e-GP?

The e-GP (Electronic Government Procurement) is the use of information and communication technology (ICT) to conduct an end-to-end government procurement and disposal process online.

Benefits of e-GP

  • Increased accessibility of information and tendering opportunities in the government
  • Increased promotion of domestic businesses in government buying
  • Information is in soft copy, and this culminates in the reduction of archival and storage costs, and paper consumption.
  • The e-GP system is majorly template-driven, making all transactions standardised and traceable.
  • Strengthens Accountability by enhancing transparency
  • Automates the internal and external processes associated with the procurement process including supplier selection

Related Knowledge Base Posts