Presentation is loading. Please wait.

Presentation is loading. Please wait.


Similar presentations

Presentation on theme: "IMPROVING THE EFFICIENCY OF PUBLIC PROCUREMENT IN UGANDA"— Presentation transcript:

A PRESENTATION BY PPDA AT THE 4TH EAST AFRICAN PROCUREMENT FORUM KIGALI –RWANDA 14th -16th November 2011 Cornelia K. Sabiiti Executive Director

2 Presentation outline Introduction
Measures to reduce process costs and cycle time Measures to Improve Performance Challenges Way forward Conclusion

3 Introduction PPDA was established by the PPDA Act in 2003 to regulate the public procurement and disposal process in Uganda, with an objective of ensuring efficiency in public procurement. Efficiency measures how successfully the inputs have been transformed into outputs (Neely, 2005). Improving efficiency in public procurement can be realized by understanding the capacity of the process to fulfill output requirements and to meet internal performance goals which include; Lowering process costs; Shortening process cycle time; and Improving the procurement process performance - quality; The ultimate goal of ensuring Efficiency is to ensure VFM in service delivery


5 and Procurement Planning
Budgeting and Procurement Planning PDE needs identified, prioritized & quantified in budget. Predictability and timeliness of release of Budgetary allocations reduce on process costs and time. Planning sets out goals and is a performance monitoring mechanism to effectively manage risks Planning allows for aggregation of requirements which determines appropriate method and proper scheduling of activities and thus reduces time and costs Use of Framework contracts

6 Preparation of Solicitation documents
This stage has highest inefficiencies related to wastage of time in devt of requirements and internal approvals prior to commencement of process. Savings in time by development of requirements during procurement planning and early initiation of the process once the budget is confirmed. Key approvals done by Contracts Committee at single sitting i.e. approval of method, solicitation document & Evaluation Committee. Standardization - Use of standard bidding documents and formats reduces on processing time and cost of documents to bidders

7 Invitation of Bids Has highest communication and documentation costs.
Increasing thresholds for open bidding and use of an abridged format of advert with full version on PPDA & PDE website. Removal of advertising period and reduction in minimum bidding period Use of Invitation Notices that require PDEs to indicate standard time frames for the next key stages of bid closing, evaluation and contract award

8 Bid Evaluation Regulation of Evaluation time frames Use of competent and experienced evaluators Use of Bid Securing Declarations Use of National Register of Providers to reduce costs and time of bidders obtaining qualification / eligibility documents e.g licences, tax and company registration Taking into account economic factors other than price e.g delivery date, after sales service or quality.

9 Contract Award Reduction in period for display of Best Evaluated Bidder Notice Removal of requirement to obtain proof of receipt of Best Evaluated Bidder Notice. Access to summary evaluation information to bidders on request Proposals underway to increase the threshold for SG to clear contracts

10 Contract Manage-ment Appointment of Contract Managers to confirm satisfactory execution of contract with regard to quality and quantity. Monitoring performance of providers by use of Contract Implementation Plans Use of risk management provisions in contracts e.g staged payments against clear deliverables, payment guarantees, warranty, liquidated damages, performance bonds, inspections

Capacity building of stakeholders to enhance efficiency Development of a Procurement Performance measurement system (PPMS) to measure compliance and performance Standardization for Specialized Sectors Partnership with Civil Society Organizations' (CSOs) for contract monitoring Use of Public Private Partnerships Use of ICT - Tender Portal on PPDA website

12 Capacity Building of Stakeholders to Enhance Efficiency
Media for Public Awareness Capacity Building Strategy PPDA Capacity Building Staff Pre-qualified list of Trainers as Individual consultants Accreditation of the Training Institutions to undertake certification courses Partnership with the Civil Service College under the Ministry of Public Service to induct refresh civil servants Partnership with Media and Civil Society Organisations to discuss topical issues.

13 Stakeholders Trained 2003/ 2004 430 2004/2005 2,227 2005/2006 961
PPDA has under its revised capacity building strategy trained a number of stakeholders using its developed training modules. Those trained other than Procurement Officers include Accounting Officers, Contracts Committee members, members of user departments, district chairpersons and district speakers Financial year No of stakeholders Trained 2003/ 2004 430 2004/2005 2,227 2005/2006 961 2006/2007 3,818 2007/2008 14,659 2008/2009 1,851 2009/2010 2515 2010/2011 2,455 Total 28,916

14 Development of a Procurement Performance Measurement System (PPMS)
Procurement Performance Measurement is based on agreed key performance indicators that are aimed at quantifying the efficiency and effectiveness of the public procurement system. PPMS EFFICIENCY INDICATORS 1 Percentage of contracts that complying with the evaluation methodology and evaluation criteria in the solicitation document. 2 Percentage of contracts with complete procurement records 3 Percentage of contracts Integrated in Procurement Plan and Budget 4 Average time taken to complete procurement cycle time frame. 5 Percentage of Contracts within estimated budget 6 Percentage of contracts completed within the original contractual time frame.

15 PPMS Indicators in FY 2010/11

16 Specialized Procurement rules needed in Health Sector
Specialized Procurement rules needed in Health Sector? New Vision Wednesday 9th Nov 2011

17 Standardization for Specialized Sectors
Part of Efficient working is to learn from best practice, copy successful methods and use tested products and services. Standard bidding Documents – new SBDs for Health Sector, and Textbooks. More SBDs for design and build are to be developed. Standardization of common specifications prevents re-invention of the wheel and reduces on the impact of the skills gaps to help procurement professionals meet their targets. Provision of information on Average / indicative price list for common user items.

18 Challenges Limited competences and skills of public officers leading to delays, errors in evaluation and poor contract management Underlying factors of limited basic infrastructure e.g office equipment, communications, internet connectivity. Low capacity of domestic suppliers leading to complaints that cause delays. Poor ethical conduct and corruption leading to poor quality, delays in payments and project completion

19 Way Forward Use of ICT and E- Procurement to automate the manual procurement process and link procurement processes to the integrated financial system. Promotion of local and small enterprises through preference and reservation schemes. Penalty schemes for non performance and Incentives to motivate performance for public officers and providers. Sharing experiences on efficient and effective best practices in Public Procurement in East Africa.

20 PPDA VISION FROM TO Efficient Implementation Inefficient Processes

21 CONCLUSION The pursuit of Efficiency should still demand a high level of transparency, compliance and accountability in procurement. Continuous reforms are needed to ensure that procurement processes make savings in time and resources throughout the procurement cycle BUT these efficiency gains MUST NOT result in a decline in the quality of service delivery in order to achieve the overall objective of VALUE FOR MONEY COST TIME VFM QUALITY



Similar presentations

Ads by Google