Presentation on theme: "IMPROVING THE EFFICIENCY OF PUBLIC PROCUREMENT IN UGANDA"— Presentation transcript:
1 IMPROVING THE EFFICIENCY OF PUBLIC PROCUREMENT IN UGANDA A PRESENTATION BY PPDAAT THE 4TH EAST AFRICAN PROCUREMENT FORUMKIGALI –RWANDA14th -16th November 2011Cornelia K. SabiitiExecutive Director
2 Presentation outline Introduction Measures to reduce process costs and cycle timeMeasures to Improve PerformanceChallengesWay forwardConclusion
3 IntroductionPPDA 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; andImproving the procurement process performance - quality;The ultimate goal of ensuring Efficiency is to ensure VFM in service delivery
5 and Procurement Planning Budgetingand Procurement PlanningPDE 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 risksPlanning allows for aggregation of requirements which determines appropriate method and proper scheduling of activities and thus reduces time and costsUse 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 periodUse 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 EvaluationRegulation of Evaluation time framesUse of competent and experienced evaluatorsUse of Bid Securing DeclarationsUse of National Register of Providers to reduce costs and time of bidders obtaining qualification / eligibility documents e.g licences, tax and company registrationTaking into account economic factors other than price e.g delivery date, after sales service or quality.
9 Contract AwardReduction in period for display of Best Evaluated Bidder NoticeRemoval of requirement to obtain proof of receipt of Best Evaluated Bidder Notice.Access to summary evaluation information to bidders on requestProposals underway to increase the threshold for SG to clear contracts
10 Contract Manage-mentAppointment of Contract Managers to confirm satisfactory execution of contract with regard to quality and quantity.Monitoring performance of providers by use of Contract Implementation PlansUse of risk management provisions in contracts e.g staged payments against clear deliverables, payment guarantees, warranty, liquidated damages, performance bonds, inspections
11 MEASURES TO IMPROVE PERFORMANCE Capacity building of stakeholders to enhance efficiencyDevelopment of a Procurement Performance measurement system (PPMS) to measure compliance and performanceStandardization for Specialized SectorsPartnership with Civil Society Organizations' (CSOs) for contract monitoringUse of Public Private PartnershipsUse of ICT - Tender Portal on PPDA website
12 Capacity Building of Stakeholders to Enhance Efficiency Media for Public AwarenessCapacity Building StrategyPPDA Capacity Building StaffPre-qualified list of Trainers as Individual consultantsAccreditation of the Training Institutions to undertake certification coursesPartnership with the Civil Service College under the Ministry of Public Service to induct refresh civil servantsPartnership 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 speakersFinancial yearNo of stakeholders Trained2003/ 20044302004/20052,2272005/20069612006/20073,8182007/200814,6592008/20091,8512009/201025152010/20112,455Total28,916
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 INDICATORS1Percentage of contracts that complying with the evaluation methodology and evaluation criteria in the solicitation document.2Percentage of contracts with complete procurement records3Percentage of contracts Integrated in Procurement Plan and Budget4Average time taken to complete procurement cycle time frame.5Percentage of Contracts within estimated budget6Percentage of contracts completed within the original contractual time frame.
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 ChallengesLimited competences and skills of public officers leading to delays, errors in evaluation and poor contract managementUnderlying 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 ForwardUse 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 TOEfficient ImplementationInefficient Processes
21 CONCLUSIONThe 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 MONEYCOSTTIMEVFMQUALITY