Presentation on theme: "PUBLIC PROCUREMENT PROCESS"— Presentation transcript:
1 PUBLIC PROCUREMENT PROCESS .PUBLIC PROCUREMENT PROCESS
2 Objectives of Good Procurement Acquisition in the most cost effective manner - Right price (lowest evaluated price), In the right quantities, at the right quality, from the right source, at the right time, Delivered at the right placeThe benefits of good procurement include: Security of supply, Lower total cost, Reduced risk, Improved quality, More added value, Greater efficiency, New innovations..
3 Objectives of the PPDA, 2005economy; efficiency; competition; fairness; integrity; transparency; accountability; public confidence in public procurement and disposal; and promotion of local industry and economic development.Importance of Public ProcurementMajority of Kenya Vision 2030 flagship projects to be delivered through public procurement.Need for elimination of waste through strategic leadership in public procurement & disposal
4 THE PUBLIC PROCUREMENT PROCESS Identify the NeedResponsibility for identification of requirements at Departmental level, Organizational levelConsider type of goods, works and services; and when and where neededUndertake Procurement PlanningDepartments supply their procurement plans which are consolidatedProcurement commenced on satisfaction that sufficient funds exist
5 THE PUBLIC PROCUREMENT PROCESS 3. Specification of RequirementIt consists of definitive descriptions on the object to be procured.Specifications must be clear, accurate and Complete other wise will result to wrong procurement of goods/services/worksProvision of information that the supplier requires in order to reliably meet the user’s expectation.Need for market survey to assist with preparation of specifications e.g bills of quantitiesSpecification to be drawn by the user of the product or service and the SCM functionConsultants may be used in preparation of specifications and bidding document
6 THE PUBLIC PROCUREMENT PROCESS Methods of specificationsSample – part of the item to be procured is submitted to the buyer to be used to compare the delivered amount against it to confirm quality adherence and conformance. It is used in textile industry and so onGrading – this method is commonly used in cereals and cash crops to indicate the various quality levels e.g. grade I, II among othersTechnical illustration – this method is used to describe quality of technical and complex artistic goods such as construction and building works which should be accompanied by technical drawings to confirm quality requirementbrand name – this is used to describe quality of goods that are difficult to specify by other means.However, the words; “or equivalent” should be added when specifying using brand names. (section 34(4))
7 THE PUBLIC PROCUREMENT PROCESS 4. Preparation of Tender DocumentsContaining Specifications - Bills of quantities, drawings, evaluation criteria, Price schedule, tender forms, sample contract, Preferences and Reservations e.t.c.5. Choice of Procurement MethodOpen tendering (Open National Tender or International Open Tender)-preferred methodOthers : Restricted Tender, Direct procurement, Request for quotations, Request for proposals, Low value procurement, Specially permitted procedures
8 THE PUBLIC PROCUREMENT PROCESS 6. Publicizing the procurement opportunity - Advertising in newspapers, notice boards, websites7. Availing bidding documents to bidders8. Submission of bid Documents- provision of tender box- no late tenders9. Opening of Bids- Appointment of tender opening committee, bidders may participate, and minutes prepared
9 THE PUBLIC PROCUREMENT PROCESS 10. Bid Evaluation:This step involves:Preliminary evaluation- and rejection of tenders that do not satisfy the basic requirements (Reg.47)Technical Evaluation- comparing each tender to the technical requirementsFinancial Evaluation- comparing tenders to determine the evaluated price of each Tender to consider Preferences and ReservationsPost qualification- where indicated in the tender documents a Procuring Entity may, prior to award of the tender confirm the qualifications of the lowest evaluated tenderer
10 THE PUBLIC PROCUREMENT PROCESS 10. Award of Tender by Tender CommitteeTender committee Quorum to be FIVE including the ChairmanDecision through consensusMinutes of Tender Committee to be prepared12. Notification of Award and Appeal Window PeriodNotification to winner and losers simultaneouslyBidders has a right to seek administrative review on PE’s decisionsBidders right to seek judicial Review
11 THE PUBLIC PROCUREMENT PROCESS 13.Contract ManagementExecution of contractInspection and quality assurance-by Inspection & Acceptance committeeHandling, claims and disputesAdministering payment provision. Overdue payments to be paid with interestVariations to Contracts allowed on price and quantity as per RegulationsContract Termination - To be approved by the tender committee.
12 THE PUBLIC PROCUREMENT PROCESS 14. Disposal of surplus, obsolete or/and unserviceable stores by use of the following methodsTransfer to another entitysale by public tendersale by public auctiondestruction, dumping or buryingtrade-inRestriction on disposal to employees to be set out in the regulations.
13 CONCLUSIONPPDA,2005 outlaws inappropriate influence in the procurement processPPOA is mandated with carrying out procurement assessments, audits and reviews and issue directionsPPDA,2005 makes it mandatory for Procuring Entities to report to PPOA on prescribed activitiesThe Director General of PPOA with the approval of PPOAB may debar a person from participating in procurement proceedingsCompliance with PPDA,2005 and PPDR,2006 results in economy, efficiency, fairness, competition, transparency, public confidence and promotion of local industry.