Journal of International Trade, Logistics and Law, Vol. 6, Num.

2, 2020, 137-143

APPLICABILITY OF FORCE ACCOUNT APPROACH IN PROCUREMENT OF

WORKS IN TANZANIA

Alban Dismas MCHOPA

Moshi Co-operative University, United Republic of
Tanzania

Received: 04 Nov, 2020 Accepted: 05 Dec, 2020 Published: 10 Dec, 2020

Abstract:
Force account has emerged to be an important procurement method in public procurement due to its potentials towards improving efficiency
and cost reduction. As a result, the Government of Tanzania directed force account to be given precedence in the procurement of
renovations, repairs, rehabilitation and remodelling works. Despite the potentials and initiatives undertaken, still there is a dilemma on
whether most of the stakeholders understand clearly the concept, procedures and practices associated with force account. In response to the
observed ambiguities, the study aimed to examine the existing guidelines on force account and practices and thereafter identify challenges
experienced in the implementation of force account. The study was guided by cross-sectional surveys design whereby data was collected using
key informant interviews, focus group discussions and documentary review. Thereafter, data was analysed using constant comparative
approach through coding process used for categorising and comparing qualitative data. Findings indicated that the poor performance was
attributed by the absence of a standardised force account guideline applicable throughout the country by the respective procuring entities.
Also, the legal provisions on force account are insufficient for the sake of enforcing best practices. Therefore, regulatory authorities should
ensure that the newly introduced force account guidelines are enforced accordingly so as to improve effectiveness and efficiency. Furthermore,
there is a need for continued rigorous trainings on force account undertakings among stakeholders involved in order to continue improving
practices and performance.
Keywords:
Force Account, Public Procurement, Procurement of Works, Procurement Methods, Practices.

1. Introduction
Public procurement always must be done efficiently and effectively while complying with principles of good
governance and professional etiquette. This in turn restores and maintains trust in the public sector which is critical
towards qualifying the legitimacy of public procurement in terms of integrity, fairness and transparency
(Organisation for Economic Co-operation and Development - OECD, 2009). The span of public procurement in
Tanzania covers the acquisition of goods, works, services (consultancy and non-consultancy) and disposal of public
assets by tender. Currently, such undertakings are regulated by the Public Procurement Act 2011 (United Republic of
Tanzania- URT, 2011) and Amendments 2016 (United Republic of Tanzania- URT, 2016) as well as Public
Procurement Regulations of 2013 (United Republic of Tanzania- URT, 2013) and 2016.
The statutes highlight principles, approaches and methods of public procurement with emphasis on fairness,
accountability, fair competition, integrity and transparency in the public procurement undertakings. The Regulations
(URT 2013 and 2016) have provided a number of procurement methods including tendering, shopping, direct
contracting, force account, community participation as well as public private partnerships. However, as provided in
section 64 of URT (2016) more preference must always be given on competitive methods (tendering and shopping)
in order to enforce transparency and competition in public procurement. Hence, unless otherwise, other methods
such as force account should be given an upper in order to smoothen the procurement of works whether
construction, repairs, rehabilitation, remodelling or renovations. As a result, force account has emerged to be an
important procurement method in public procurement since it enables the procuring entity to execute works much
faster (efficiency gains); enhance internal capacity of the procuring entity since works are executed and supervised by
its own staff; it is cheaper to execute the works in house as compared to contracting out (cost savings) but also

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works can still be executed conveniently without interrupting regular operations (Public Procurement and Disposal
of Public Assets Authority - PPDA, 2014).
Therefore, it is becoming much emphasised in the public sector to use force account in implementation of various
construction projects to ensure cost-effectiveness and value for money in spending scarce resources (France, 2019).
For example, since 2016 the government of Tanzania has been providing funds for renovation and remodelling of its
building infrastructures using force account as a procurement method (Shengeza, 2017). Under this method,
procuring entities are required to procure all supplies and materials for the project from the suppliers and use of local
technical labours for implementation. Among the institutions made use of force account were the fifty-four (54) Folk
Development Colleges (FDCs) under the Ministry of Education Science and Technology (MoEST). The Permanent
Secretary (MoEST) in 2018 pointed out that “…force account should be used in the rehabilitation and renovations
of FDCs infrastructure since it has proven to be cost effective and efficient towards timely completion of works…”
Previous works on rehabilitation and renovations of Schools’ infrastructure using force account enabled the Ministry
to save almost TZS 1 Billion unlike when the works would have been contracted out (MoET, 2018).
Contracting in public procurement often times is a lengthy, time-consuming process and more costly depending on
the nature of procurement (Valdovinos & Lorick, 2013). Force account as an emergent procurement mechanism
provides a cushion for lead time optimisation and improvement in service delivery (tailored services) depending on
the availability of equipment, materials and supervision within the procuring organisation (Mbabazi and Mugurusi,
2018). However, despite the observed potentials, still force account model exposes the government to the greatest
degree of procurement and supply risk since it cannot pass risk on to any other entity besides itself. Also, there are
still dilemmas on whether most of the Procuring Entities (PE) and other Stakeholders at large understand clearly the
concept, procedures and challenges of force account (France, 2019).
Similarly, Mbabazi and Mugurusi (2018) observed that aside from what is currently known from the professional
literature, force account mechanism in procurement of works is still a mystery in both theory and practice. Thus,
empirical literatures suggest a need for more rigorous studies of the existing practices and come up with concretised
evidences towards improving performance of force account in procurement of works. In response to the observed
ambiguities, the study aimed to examine the existing guidelines on force account and practices in the procurement of
works and thereafter identify challenges experienced in the implementation of force account in public procurement.

2. Methodology
The study was guided by a cross-sectional survey design whereby data was collected at one point in time from a
sample selected to represent a larger population of procuring entities. A repeated mini-survey was conducted in 2016
and 2017 to grasp the practices and challenges in the applicability of force account approach. The surveys were done
purposely to complement the existing data from the secondary sources. Data was collected using key informant
interviews (in 2016 and 2017), focus group discussions (in 2016) and documentary review (in 2018 and 2019). The
interviews were done with selected procurement officers, headmasters of secondary schools, doctors in charge at
health centre/dispensary, ward and village executive officers. The focus group discussions were done with members
of school committees as well as health centres/dispensaries committees in the selected wards/villages. Documentary
review was conducted to collect data from published and grey literatures. Grey literatures normally provide data not
found within commercially published literature (Paez, 2017; Pappas and Williams, 2011). The surveyed grey
literatures helped to reduce publication bias and fostered a balanced picture of available evidence. The articles
reviewed included Public Procurement Law and Regulations, Force Account Guidelines issued by Ministries, Public
Procurement Regulatory Authority (PPRA) and Controller Auditor General (CAG) Audit Reports, Public
Procurement Circulars and Guidelines, Conference and Research Papers, and Baseline Reports. Data were analysed
using constant comparative approach through coding process used for categorising and comparing qualitative data
for analysis purposes as recommended by Kolb (2012). The method was not used in the strictest sense, but more as a
basis for reflections on the survey data in order to develop proposition(s) that emerged from field data which were
then complemented with secondary data.

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3. Findings and Discussions

3.1. Guidelines and Procedures of Force Account
Force account being an alternative procurement method has been captured in Regulation 167 of URT (2013) and
URT (2016) as well as in the 7th Schedule (to qualify the categories of its application). The method is solely used in
the procurement of works (mostly medium and minor works) whereby the procuring entity itself or use of public or
semi-public agencies or departments concerned using its own personnel and equipment or hired labour to execute
the works accordingly. However, prior to decisions on choosing force account the procuring entity has to make cost
and benefit analysis in order to determine whether it is cheaper to use force account than to execute the works by
contracting out. Public Procurement and Disposal of Public Assets Authority (PPDA) (2014) of Uganda provides
guidelines on making cost analysis in terms of scrutinising personnel cost to be used (using the applicable rates of the
procuring entity). The analysis of indirect overheads (costs) using the rates provided by a competent authority should
also be done along with equipment and supplies to be used basing on the prevailing market rates. The analyses will
enable the procuring entity to make informed decisions before venturing into force account undertakings which may
backfire if not well analysed.
Notwithstanding the preliminary cost analyses, a review of regulation 167 of Regulations (URT, 2013) guides
procuring entities towards considering the context and milieu of the works through which force account can be
applied. The legislation indicates that force account can only be used when the required works are scattered or in
remote locations for which qualified construction firms are unlikely to tender at reasonable prices; works are required
to be carried out without disrupting ongoing operations; or risks of unavoidable work interruption are better borne
by a procuring entity than by a contractor. Also, the method is useful when there are emergencies which require a
prompt attention; the procuring entity has qualified personnel to carry out and supervise the required works; or the
maintenance or construction is part of the routine activity of the procuring entity. Thus, the applicability depended
much on the circumstances, convenience and/or directives. For example, the Ministry of Education, Science and
Technology directed force account to be given priority in the procurement of renovations and rehabilitations works
in Secondary Schools and Colleges.
Along with the provisions in the statutes, the Ministry of Education, Science and Technology (MoEST) and the
President’s Office, Regional Administration and Local Government (PO-RALG) prepared standardised Force
Account Guidelines that are used by Institutions, Departments and Agencies working under the respective
Ministries. The Guidelines have been very instrumental and useful in the rehabilitation and renovations works as well
as construction works mainly at the Lower Local Government Authorities (LLGAs) (Villages and Wards), Schools,
Colleges, Hospitals and Health Centres. The Guidelines provide provisions on the basic principles, conditions for
using force account, benefits of force account, appointment of committees and their responsibilities, proceedings,
approval organs and prohibitions. Among others, the guidelines have highlighted a number of prohibited practices
including frauds, corruption, collusions and conflict of interests. Procurements are supposed to be done
competitively, transparently while observing fairness, objectivity and integrity.
Procedures of force account like any-other procurements, start from procurement plans whereby the procuring
entities highlighted the works to be acquired and associated materials and/or services. A review of the plans (Annual
Procurement Plans) showed that the plans stipulated the methods to be used to acquire the materials and/or
services, budgeted costs and timeframe which were critical towards successful works completion. Through plans, the
requirements were consolidated (where possible) in order to economise transactions and lead times during
implementation. Force account being a facilitating procurement method, a number of associated methods were used
depending on the context, timing and expected outcomes. The methods used included shopping/competitive
quotation (reg. 163); mini-competition (reg. 131-(5)); minor value procurement (reg. 165); micro value procurement
(reg. 166); and community participation (reg. 168).

Since force account proceedings are not exceptional from the conventional procurement procedures, project
committees were always required to ensure that all the necessary approvals are obtained at every stage of project
execution. The approvals were obtained using procedural forms and circular resolutions while observing the
jurisdictions of organs as required by section 41 (URT, 2011). Also, findings indicate that regular meetings were
conducted between committees/organs in order to track works progress and streamline the implementation activities
as per action plans. The meetings both on-site and off-site were important to share new ideas that might have

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resurfaced but also certify the works completed after rigorous inspections. At the lower local governments, engineers
and experts from the Council (District and/or Municipal) were invited in order to certify the works since the LLGAs
and Schools had no qualified experts. Likewise, record keeping is essential and throughout proceedings the
committees/organs are required to keep intact all records pertaining to transactions for verification and auditing.
Regardless of the achievements made using the guidelines that have streamlined the procedures to be followed by
entities falling under the Ministries, there are number of shortfalls inherent to the guidelines. A review of the MoEST
Guidelines showed that it does not provide details concerning appointment and composition of bids evaluation team
as per section 40 of the URT (2011); how the evaluation of bids will be done as well as submission and approval of
evaluation report as required by regulation 220 and 231 of the URT (2013) respectively. Also, the guideline does not
provide the procedure to be followed by the procurement committee in purchasing building materials from the
surrounding community of the project and procedure for quality control as observed by the PPRA (2019). Likewise,
the PO-RALG Guideline as observed by the PPRA (2019) does not adequately qualify the composition procurement
committee, goods inspection committee and works committee within the health centres. Also, the guideline was not
exhaustive on procedures to be followed to acquire local mason, labourers as well as procedures to be followed for
procurement of goods and quality control parameters.
The provisions provided in the Regulations (URT, 2013 and 2016) are also not sufficient towards guiding the
procuring entities on the appropriate use of force account. Apart from mentioning the conditions of using force
account and circumstances the regulations are silent on the proceedings to be followed thereafter. The regulations
hardly provide guidance on cost analysis parameters, accountability and quality assurance parameters, performance
guarantee parameters and inter-linkage of force account and other procurement methods. The Ugandan
procurement legislation on force account is a little bit improved as it was amended to come up with separate
provisions namely Execution of Works by Force Account (2014). The amendments are more exhaustive in terms of
making provisions to guide procuring and disposing entities in making thorough cost-benefit analysis so as to
determine whether it is cheaper to use force account compared to executing the works by contracting out. Also, the
provisions guide entities on how to ensure that the works undertaken are properly executed and minimising
sloppiness as a result of back-sourcing.

3.2 Force Account Practices in Procurement of Works

The practices of procurements under force account somehow are different depending on the nature of the procuring
entity and the guidelines used. It suffices to say the practices were not very much standardised throughout the
entities. At the LLGAs (villages and wards), schools (primary and secondary), and health centres or dispensaries the
practices were dependent on committees since they didn’t have a well-informed institutional procurement structure
as required by procurement legislation. The aforementioned entities hardly had a well-established Procurement
Management Unit (PMU) to manage their daily procurement activities and Tender Board (TB)to oversee and
approve the respective procurements and award of contracts as required by sections 37 and 38 (for PMU) and 31, 33,
35 and 35 (for TB). Hence, in absence of the organs, the entities had to follow the guidelines provided by the
Ministries to appoint committees for overseeing and execute force account procedures without contradicting public
procurement legislation.
A review of the guidelines indicated that there are three basic committees namely Project Committee, Procurement
Committee and Inspection and Acceptance Committee. Findings from the surveyed entities indicate that the project
committee is in-charge of identifying the needs and channelling them to procurement committee, charting out action
plans for implementation, supervising all works to be undertaken and prepare project progress reports as well as the
final project report. The procurement committee was responsible for managing all procurement activities of the
project including preparation of procurement plan, sourcing of sources of materials supply, preparation of
solicitation and contract documents, obtaining all the necessary approvals and procuring the required goods and
materials in the project. Inspection and acceptance committee was responsible for inspecting all delivered goods and
materials by suppliers, checking compliance with local purchase order/contract and preparing inspection reports that
were among the prerequisites before approving payments.
Therefore, LLGAs (villages and wards), schools (primary and secondary), and health centres or dispensaries relied
much on the expertise and guidance of experts (officials) from the Ministries or Local Government Authorities
(LGAs). For example, during interviews the Procurement Officers (at LGAs) pointed out that their role is to guide
the administrators of schools, health centres/dispensaries, wards and villages to follow the required procurement
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procedures. The PMU (at LGAs) gave the LLGAs list of potential local contractors and suppliers who have been
screened and prequalified by the Government Procurement Service Agency (GPSA). In collaboration with the
District Engineer(s) they assisted LLGAs in preparation of Bill of Quantities (BOQs), supervision and certification
of works executed. Also, at some point the District Education Officer (DEO) and District Medical Officer (DMO)
played the role of reviewing and endorsing the submitted procurement requirements for schools and health
centres/dispensaries respectively. Other roles played by LGAs Officers included provision of training and guidance
staff and committee members on force account guidelines, procurement planning, and preparation of procedural
documents (requisition note, purchase order, quotation documents and minor procurement contracts).
On the other side, procuring entities such as Colleges which had a well-established procurement institutional
structure (as stipulated in Part IV of the Public Procurement Act, 2011) their procedures were not necessarily
implemented entirely as per Ministerial Guidelines. Through documentary review it was established that the aforesaid
entities had the normal procurement governance structures. Therefore, the formation of some committees was
optional since they had institutional organs to handle functions of some committees effectively unlike in the LLGAs.
The entities had a well-established PMU, TB and User Departments to oversee all the procurement transactions and
supervising all the respective works during implementation. However, if need be, the entities had options of hiring
part time experts from the neighbouring entities or private firms as stipulated in the Public Procurement Act (URT,
2016).
Therefore, force account procedures and practices in entities with well-established institutional structure were more
effective unlike their counterparts who struggled with compliance though not all the time. During focus group
discussions with the committees it was realised that some of the members were inadequately knowledgeable of the
public procurement proceedings associated with force account but were supposed to oversee the undertakings.
Mostly there was overreliance on experts available at the LGAs and in their absence sometime decisions could hardly
be made in the meetings. Thus, presence of experts and qualified officials is pivotal which also gave the Colleges an
upper hand (unlike Schools) towards making proper interpretation and applications of Ministries Guidelines as well
as the Procurement Legislation. Further, presence of experts within a reach smoothened force account processes by
infusing and/or making compromises with the best professional practices where the Guidelines and Legislation fall
short or contradicted each other.

3.3 Flaws and Challenges in the implementation of Force Account

As observed by Mbabazi and Mugurusi (2018), the introduction of the force account mechanism in public
procurement; the concept appeared rather alien to most of the practitioners in the surveyed procuring entities in
Uganda. Likewise, in Tanzania the findings are not much different from the neighbouring country partly contributed
by presence of insufficient and fragmented guidelines as well as provisions on force account undertakings.
Experience shows that cost and benefit analysis as proposed by PPDA (2014) were not thoroughly done prior the
decisions to adopt force account as a procurement method for construction, renovation and rehabilitation works.
The PPRA (2019) observed a number of flaws including weaknesses in quality control for works among which
include lack of inspection reports of works done and testing the quality of works done, and quality assurance plan
was not prepared. The flaws jeopardised chances of value for money achievement among the respective entities and
raises doubts as to whether the works were certified accordingly by the experts.
Findings also indicate that there is good awareness of force account mechanism as popularised by the Ministries but
some stakeholders involved particularly at the LLGAs as committee members are hardly trained on public
procurement laws and guidelines. As a result, the guidance and instructions received from LGAs and Ministry
experts seemed too many, not clear and confusing sometimes due to their inability to comprehend. In one of the
focus group discussions, a committee member pointed out that “…we were not very well trained on force account
proceedings but supposed to oversee projects implemented under the method within our locality, make decisions
and ensure effectiveness regardless of our limited knowledge…as a result we are held accountable regardless of our
little understanding...”
Through media it has been witnessed that some committee members in lower local government being questioned
without tentative answers about their role to oversee/supervise the projects in their jurisdiction. As a response, the
Ministries (MoEST, PO-RALG) have taken initiatives to build capacity of committees and officials through trainings
on force account.

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Procurement of building materials and/or supplies in some entities was not done properly using the framework
agreements (contracts) as required by the URT (2013) since they were among the Commonly Used Items and
Services (CUIS). As noted by PPRA (2019), the procedures provided under regulation 131 (4) (b) (URT, 2013) as
amended by regulation42 of Amendments (URT, 2016) were not followed. The procuring entities were required to
conduct mini-competition on prices of required building supplies and materials from at least three suppliers
(approved by the respective TB) with framework agreements issued by GPSA. This was supposed to be done prior
provision of local purchase order to the lowest priced supplier within the prevailing market prices.
Compliance with the guidelines and standard documents issued by the PPRA was also among the weaknesses
observed in the procurement of works using force account mechanism. The audit done by PPRA (2019) revealed
that solicitation documents used in the procurement of materials were not as per the issued guidelines; the
documents missed necessary information relating to the tender; and the evaluation criteria provided in the
solicitation document were ambiguous. In some instances, the required approvals as required by the Ministerial
Guidelines, URTs (2011, 2013 and 2016) were hardly obtained either from Tender Board or Chief Executive Officer
of the respective procuring entity. The observed incompliance defeat the good intentions of using force account
since without compliance it was very likely that there were loopholes for transgressions with implications on cost and
efficiency.

4. Conclusion and Recommendations

Effective application of force account in procurement of works requires preparedness in terms of resources and
careful cost-benefit analysis in order to improve efficiency. Thus, the expected outcomes (timely completion, cost
optimisation and quality delivery) are not spontaneous but rather achieved through scrupulous processes. The
implementation process calls for supervisory organs and committees’ commitment and accountability while avoiding
conflicts of interest and collusions. However, the participants require rigorous trainings on force account
undertakings in order to continue improving the practices and performance towards achieving value for money. The
Ministries have taken initiative to training but more is needed particularly at procuring entities without a well-
structured procurement institutional framework to oversee governance and implementation of force account
processes. Findings indicated that there is poor performance was attributed by the absence of a standardised force
account guideline applicable throughout the country by the respective procuring entities. Since the PPRA has taken
the initiatives to prepare the guidelines, it is recommended that once they become effective, adequate trainings and
capacity building should be done accordingly so as to improve effectiveness and efficiency. The guidelines in
particular will be instrumental for procurement through force account particularly at LLGAs in order to improve to
be effectiveness and efficiency. As a result of incompliance, it is recommended that, there should be a compliance
committee (apart from the conventional committees and organs) that will ensure compliance at every stage of the
process. The committee members should be those with knowledge or well trained on public procurement and related
laws, regulations and guidelines. Among others, the committee will be responsible for verifying all payment claims
before being approved by the Chief Executive Officer in order to make sure all compliance issues are intact and the
submitted claims are genuine to avoid frauds and possible collusions.

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