Market Price Index Q1 2023
Market Price Index Q1 2023
Market Price Index Q1 2023
In accordance with Section 12 (3) of the Public Procurement Act No. 8 of 2020 (PPA), the Authority is
mandated to issue a quarterly Market Price Index (MPI) to be used by a controlling officer, chief
executive officer and procuring entity for purposes of an informed price decision. Further, Section 12
(2) of the PPA provides that a procuring entity shall procure standard goods, services and works in
accordance with the price index issued by the Authority. Additionally, procuring entities will use the
MPI as a tool for budgeting, annual procurement planning, and bid/tender evaluation.
The Market Price Index is a metric that represents price position relative to competitors across key
categories and brands, suppliers of goods, works and services. The MPI is a key component in the tender
pricing strategy which looks at prices of commonly procured items, specification units of purchase,
neutral specification of items or brand names that are standardized items and procured by procuring
entities in different categories described herein.
The frequency of production and release of the MPI is on a quarterly basis, intended to be made available
to all stakeholders involved in the public procurement process and supply chain. This is necessary in
order for the stakeholders to make informed decisions during their respective budgeting, tendering and
supply processes.
2. METHODOLOGY
The Zambia Statistics Agency (ZamStats) is responsible for the coordination of production and
publication of official statistics in Zambia, in accordance with the Statistics Act No. 13 of 2018. The
Authority and ZamStats entered into a Memorandum of Understanding (MOU) for purposes of collecting
market price information. The MoU provides for exchanging of related information between the two
institutions and for the publication of such data. The market price information in this index was
collected and analyzed by ZamStats.in collaboration with the Authority.
The data processing phases included data entry, cleaning and analysis. The following variables were
computed and employed during the data processing phases: namely, geometric mean, standard
deviation, coefficient of variation and the count (i.e. number of quotations per item). The maximum and
minimum prices for each item were also computed by province and at national level.
The Geometric Mean of prices was calculated by getting the product of their values and taking
the nth root of the product (as opposed to the arithmetic mean which uses the sum of their values
divided by n) where n refers to the number of observations. The geometric mean represents the
average price and was calculated for each item in each province from a minimum number of six
price quotations. The ‘National Average’ price was also derived by calculating the geometric
mean from the provincial average prices on each item.
The Standard Deviation is a measure of dispersion and was calculated to show how far data
sets deviate from the group geometric mean.
The Coefficient of Variation (CV), is a measure of spread that describes the amount of
variability relative to the mean and is calculated by dividing the standard deviation by the
geometric mean and multiplying by 100.
The Count ‘N’ is the number of valid prices which is used to calculate the geometric mean.
The United Nations Standard Products and Services Code (UNSPSC)’ international coding system was
used to code all the items. The UNSPSC coding system enables buyers and sellers to describe goods and
services in a common way without referring to any suppliers' in-house catalogue codes and
descriptions. The UNSPSC framework adopts a four or five level classification, using the labels Segment,
Family, Class, Commodity and Business Function.
This index has a total number of 27 categories and 3,176 items up from 2,810 items covered in the
previous quarter.
The prices of the items collected are presented in Zambian Kwacha, unless otherwise explicitly stated
in the index.
(a) Budgeting;
(b) Annual Procurement Planning; or
(c) Bid/Tender Evaluation.
The brand names included in the price index were mentioned as emphasis for most commonly procured
goods and services in the public sector. Therefore, the stated brand names are not an exclusive
Procuring entities are reminded to undertake Price Reasonableness Analysis (PRA) where an item to
be procured is not covered in the current MPI.
All procuring entities are reminded of the provisions of section 12 (5) of the PPA which provides that
‘…An office holder who willfully or negligently engages or is involved in a transaction in which
standard goods, services and works are procured at an inflated price commits an offence…’.
The Authority shall continuously review and update the MPI to ensure that goods, works or services
that are commonly procured by procuring entities are covered in the subsequent MPI’s.
4. SURVEY RESULTS
Notes
The dash (-) or blank spaces in the tables in place of a price indicates that the price is not shown
due to one of the following reasons:
1. Number of quotations collected were less than 3 to determine an objective average price
3. Outlets were not found/outlets were not accessible at the time of data collection
8111180002 Licence - CISCO Licensing Each 46,906 47,741 48,204 46,350 48,668 47,566 47,566
8111180004 Licence - Computer Software License (Autocad) Each 15,114 15,383 15,532 14,935 15,682 15,327 15,327
8111180005 Licence - Computer Software License (Etabs) Each 15,635 15,914 16,068 15,450 16,223 15,855 15,855
8111180006 Licence - Computer Software License (WinQS) Each 10,424 10,609 10,712 10,300 10,815 10,570 10,570
Licence - Github Enterprise for version control
8111180008 Each 60,113 61,182 61,776 59,400 62,370 60,959 60,959
amongst multiple external vendors (15 users yearly)
8111180013 Licence - Oracle Trueup Each 20,847 21,218 21,424 20,600 21,630 21,141 21,141
8111180015 Licence - Sage Evolution System package 8,860 9,018 9,105 8,755 9,193 8,985 8,985
8111180016 Licence - Sage Pastel Accounting System package 13,030 13,261 13,390 12,875 13,519 13,213 13,213
8111180019 License - Dove Payroll Management License package 88,601 90,177 91,052 87,550 91,928 43,764 79,697
8111180021 Microsoft Office 2013 Standard license Each 6,512 6,628 6,500 6,816 6,435 6,782 6,757 5,507 6,479
Microsoft Office 2016 Professional licence (2019
8111180022 package 3,648 3,713 6,500 3,605 3,720 3,800 3,785 3,975 4,015
professional )
8111180023 Microsoft Office 2016 Standard licence package 3,127 3,183 5,200 3,273 3,090 3,189 3,257 3,245 3,395 3,395
8111180024 Microsoft Office 2019 Pro Plus licence package 4,508 4,589 4,500 4,718 4,455 4,598 4,696 4,678 4,592 4,592
8111180025 Microsoft Office 2020 Professional licence package 4,169 4,244 4,500 4,364 4,120 4,252 4,342 4,326 4,288 4,288
8111180026 Microsoft Office 2020 Standard licence (life time) package 4,691 4,774 4,635 4,783 4,885 4,867 5,090 4,816
8111180027 Microsoft Office 2021 proffessional plus - single Each 5,716 5,818 5,874 5,648 5,953 5,931 4,998 5,697
8111250006 Software - Lumion 12 Each 14,674 14,935 14,500 15,225 14,831 14,831
8111250010 Software - Oracle - TOD Enterprise Each 12,144 12,360 12,000 12,600 12,274 12,274
Software - Windows 10 Standard operating system
8111250012 package 3,947 4,017 3,500 3,900 4,025 4,111 4,095 3,428 3,869
(Pro)