On this page
- What is the difference between a tender security and a tender securing declaration?
- When does PPRA allow a securing declaration?
- What does the evaluator check first?
- How long must the security stay valid?
- Worked example: counting the validity date
- What the NEMBO desk prepares
- Sources and status
- Frequently asked questions
Should a bidder give a tender security or a bid securing declaration in Tanzania?
PPRA states, as read on 17 October 2026, that a bid securing declaration applies where local firms are invited and the value does not exceed TZS 10 billion for works or TZS 2 billion for goods and non-consultancy services. Above that, or with foreign bidders, a tender security is required. Either must stay valid 28 days beyond tender validity.
A tender asks for a security on the closing date, and a wrong choice is rarely visible until the evaluation. A bidder that supplies a bank guarantee where a declaration was allowed ties up credit for months. A bidder that signs a declaration where the data sheet demanded a guarantee is rejected before price is read.
This note sets out how PPRA's standard tendering documents and its published criteria separate the two instruments, what each risks, what the evaluator checks first and how the validity date is counted. Every rule below was read on a PPRA page or in a PPRA document on 17 October 2026.
What is the difference between a tender security and a tender securing declaration?
A tender security is a financial instrument supplied in original form, in the amount and currency the tender data sheet specifies. A tender securing declaration is a signed undertaking in the Section V format, with no amount. Both protect the procuring entity against the conduct of a tenderer that would justify forfeiture or execution 34.
Acceptable forms of security are a bank guarantee, an irrevocable letter of credit from a reputable bank, an insurance bond from a reputable insurer, a cashier's or certified cheque, or another form the data sheet names 3. The data sheet selects one regime for each tender, and the bidder follows it.
When does PPRA allow a securing declaration?
PPRA's published criteria state that a bid securing declaration is used for procurement whose value does not exceed the exclusive preference thresholds and where local firms have been invited: works up to TZS 10 billion, goods up to TZS 2 billion and non-consultancy services up to TZS 2 billion. Above the threshold, or where national and international competition involves foreign bidders, a tender security is required 1.
The standard documents leave the choice to the data sheet. In the non-consultancy document the data sheet either applies a declaration or states an amount, and the form column reads not applicable where a declaration is used 3. PPRA also lists Guidelines for Securities in Public Procurement, 2025 among its published guidelines 6. The tender in hand governs.
| Point | Tender security | Tender securing declaration |
|---|---|---|
| Form | Guarantee, letter of credit, insurance bond or certified cheque | Signed declaration, Section V format |
| Amount | Stated in the data sheet | None |
| Used when | Above the threshold or with foreign bidders 1 | Up to the threshold, local firms invited 1 |
| Triggers | Withdrawal in validity, refusal of error correction, no performance security or contract signature | Withdrawal in validity, no performance security or contract signature |
| Consequence | Security forfeited | Reported to PPRA for debarment 3 |
| Cost to the bidder | Issuer's charge and the credit line held | No instrument; risk of debarment |
The triggers are read from the non-consultancy document: forfeiture in clause ITT 19.9 and execution of the declaration in ITT 19.10. The general goods document applies the same two situations to a declaration in ITT 18.10 34. The documents do not fix the length of a debarment, which PPRA determines.
What does the evaluator check first?
The preliminary examination lists four checks in order: eligibility, proper signature, accompaniment by the required securities, and substantial responsiveness. A tender without a security or declaration that meets the clause is rejected as non-responsive, and failure to submit a declaration as specified is a material deviation (ITT 28.1, 28.8(c) and 19.6) 34.
- 01Eligibility
The bidder meets the tests in ITT 3.
- 02Signature
The tender is properly signed.
- 03Securities
The required security or declaration accompanies the tender.
- 04Responsiveness
The tender conforms without material deviation.
Source: PPRA standard tendering documents PPRA/STD/NC/02/2022 and PPRA/STD/G/GG/02/2022, read 17 October 2026.
Note: The order is that of the 2022 standard documents. A tender adapts the standard, and its own data sheet governs. This is not an offer, advice or a guarantee of an award.
A missing security therefore ends the evaluation before the price schedule is read. For the same reason the security is checked against the data sheet on the day before closing, not on the day.
How long must the security stay valid?
A tender security or declaration remains valid for not less than twenty-eight days 2. The standard document states the count: the security is valid for 28 days beyond the end of tender validity, including any extension, and a tender valid for a shorter period than the data sheet requires is rejected 3. A tenderer asked to extend may refuse without forfeiting its security, and a tenderer that agrees extends the security for the same period 3.
Recent tenders are lodged electronically. In a TANROADS tender of 16 October 2024 the data sheet fixed tender validity at 120 days, stated the security as a sum in the data sheet, and required a scanned copy to be uploaded through NeST 5. Unsuccessful tenderers' securities are returned no later than 30 days after validity expires 3.
Worked example: counting the validity date
What the NEMBO desk prepares
Zatra Consultants Limited authors and checks the content and the dates. NEMBO designs, produces and delivers the file. The tender evidence file indexes the registrations, tax clearances, licences and accounts in the order of the tender, and the one-page index 7 tracks them.
- Security register: instrument, issuer, amount from the data sheet, expiry date and the 28-day count
- Tender evidence index in the order of the tender
- Company profile and proposal built around what the panel checks first
The desk prepares the file and is quoted in writing. It does not decide, and it does not guarantee, the decision of a tender board, an evaluation committee, PPRA or a procuring entity.
Tender file with the security in order
The desk prepares the tender evidence file and index, with the security, its validity date and each certificate in the order of the tender.
Open the investor deskSources and status
Accurate as at 17 October 2026. Every figure below was read at the source named, on the date shown.
- 1What are the criteria for deciding whether to use tender security or bid securing declaration?Public Procurement Regulatory Authority (PPRA), undated. Accessed 17 October 2026.
- 2What is the validity of tender security or bid securing declaration?Public Procurement Regulatory Authority (PPRA), undated. Accessed 17 October 2026.
- 3Standard Tendering Document for Procurement of Non-Consultancy Services, PPRA/STD/NC/02/2022Public Procurement Regulatory Authority (PPRA), February 2022. Accessed 17 October 2026.
- 4Standard Tendering Documents for Procurement of General Goods, PPRA/STD/G/GG/02/2022Public Procurement Regulatory Authority (PPRA), February 2022. Accessed 17 October 2026.
- 5Tender No. TR36/2024/2025/W/34, Upgrading of Omugakorongo-Kigarama-Murongo Road, Lot 2Tanzania National Roads Agency (TANROADS), 16 October 2024. Accessed 17 October 2026.
- 6Public procurement guidelines, EnglishPublic Procurement Regulatory Authority (PPRA), listed 18 Sep 2026. Accessed 17 October 2026.
- 7Tender evidence index, one pageNEMBO, undated. Accessed 17 October 2026.
Figures to confirm before you act
- The regime stated in the tender data sheet and the amount and currency of any security, with the procuring entity named in the tender.
- The current thresholds for exclusive preference and for use of a securing declaration, with the Public Procurement Regulatory Authority.
- The content of the Guidelines for Securities in Public Procurement, 2025, with the Public Procurement Regulatory Authority.
- The issuer's charge and lead time for a bank guarantee or insurance bond, with the issuing bank or insurer.
- The tender validity period and any extension notice, with the procuring entity through NeST.
This article is general information based on official sources available at the date of publication. It is not legal, tax, valuation or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra Consultants Limited before acting.
Frequently asked questions
When is a bid securing declaration allowed in Tanzania?
PPRA states that it is used where the value does not exceed the exclusive preference thresholds and local firms have been invited: works up to TZS 10 billion, and goods and non-consultancy services up to TZS 2 billion. The tender data sheet records the regime that applies to the tender.
What forms of tender security are accepted?
The standard documents accept a bank guarantee, an irrevocable letter of credit from a reputable bank, an insurance bond from a reputable insurer, a cashier's or certified cheque, and any other form the data sheet names. The bidder follows the data sheet for the form and amount.
How long must a tender security remain valid?
It must be valid for 28 days beyond the end of tender validity, including any extension. PPRA's FAQ states a minimum of not less than twenty-eight days. A 120-day tender closing on 30 November 2026 needs a security valid to 27 April 2027.
What happens if a bidder omits the security?
The tender is rejected as non-responsive. The preliminary examination checks eligibility, signature and securities before substantial responsiveness, and failure to submit a declaration as specified is listed as a material deviation. Rejection occurs before the price schedule is evaluated.
When is a tender securing declaration executed?
When the tenderer withdraws during the validity period, or when the successful tenderer fails to furnish a performance security or to sign the contract. Failure to abide by it is reported to PPRA for debarment for a period PPRA determines.
Can a bidder refuse a request to extend tender validity?
Yes. The standard document allows a tenderer to refuse without forfeiting its security or triggering its declaration. A tenderer that agrees extends the security or declaration for the extension period and may not modify its tender.
When is a tender security returned?
Securities of unsuccessful tenderers are returned or discharged as soon as possible and no later than 30 days after tender validity expires. The successful tenderer's security is discharged after the performance security is furnished and the contract is signed.
