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How is the Margin of Preference Calculated?

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HOW MARGIN OF PREFERENCE IS CALCULATED

Post  freddy.mbeyella on Fri Dec 20, 2013 1:29 pm

Nhekairo,
you are warmly welcomed!
The way I understand, PPRA is responsible for providing percentage of margin of preference to be applied based on input of local firms or joint venture with foreign firms. Procuring entities are required to apply the percentages during the evaluation of bids under national/international competitive bidding.

Perhaps, the challenge is how apply margin of preference during preparation and evaluation of bids. If you interested to understand the application of margin of preference; you can peruse the article titled “Application of the Margin of Preference in the Evaluation of Bids and Proposals” by Eng. Raymond J. Mbishi which appeared in the Tanzania Procurement Journal of 16th December 2008.

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How is the Margin of Preference Calculated?

Post  nhekairo on Fri Dec 13, 2013 12:47 pm

Please welcome me to this good forum!!

I would like to know how Margin of Preference is determined... how do we come up with the percentage to say
for 100% local firms - 20%
for 80% local firms - 15%

How is the 20%, 15% etc determined? Formulas will be of help too.

nhekairo

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