ZPPA issues guidelines on price reasonableness for procurement entities

GUIDELINES on price reasonableness analysis application for procuring entities have been issued by the Zambia Public Procurement Authority (ZPPA).

The ZPPA has also published the fourth quarter Market Price Index which has been effective since November 1, 2022.

The guidelines that have been provided includes the use of Average Prices by procuring entities from their respective provinces and the use of national average prices, says ZPPA Principal Officer - Public Relations, Iñutu Mushambatwa.

Ms Mushambatwa said other guidelines included the requirement by procuring entities to continue undertaking price reasonableness analysis where an item to be covered was not in the market price Index.

“Other guidelines are the application of regulation 105 (5) and (6) of the Public Procurement Regulations of 2022 where the price of the best evaluated bidder is below the market price prescribed range.

“Additional guidance issued by the authority on Price Reasonableness Analysis are on: where the item to be procured falls outside the plus or minus prescribed range, where the price of the best evaluated bidder is above the available budget; and where the price of the best evaluated bidder is above the market price prescribed range,” she said in a statement.

Ms Mushambatwa has advised all procuring entities that the guidelines and templates for the various approaches for price reasonableness analysis could be accessed on the ZPPA’s website.

Meanwhile, Ms Mushambatwa said ZPPA had issued the fourth quarter Market Price Index in accordance with section 12 (3) of the Public Procurement Act.

She said the Market Price Index shall be in effect from November 1, 2022 until it issues the next quarterly Market Price Index.

“The fourth quarter Market Price Index is accessible on the authority’s website and on the Electronic Government Procurement platform which is accessible on https://eprocure. zppa. org. z/ epps/ home. do,” Ms Mushambatwa said.