1. Presented by: Joshua Wamithi Maina
TITLE: APPLICATION OF THE CHECKLIST TO ENHANCE PROFESSIONAL PREPARATION OF TENDER DOCUMENTS.
Presented by: Joshua Wamithi Maina
2018 G2G INNOVATION SEMINAR, PRIDEINN PARADISE
18TH JUNE - 22ND JUNE 2018

2. JOH-KGN JvW-X1
JOSHUA WAMITHI MAINA
Chief Supply Chain Officer, Supply Chain, Eastern Hydro
Qualifications: - MBA(Strategic Management);
- B.A.(Economics);
- M.C.I.P.S; M.K.I.S.M.
- C.P.A.(k)
- Certified ISO Auditor.
Responsibilities:
Procurement planning; tender documents preparation; floatation, evaluations; reporting; Professional Opinions & advice; Inventory Management; Compliance and Team Leader.
Key milestones/achievements include:
Pioneering and championing use of a checklist for preparation of tender documents.
Team player in capacity building through training & coaching of Staff on PPADA(2015),Regulations(2006/13 ) and General Manual(2009).
A member of PPRA national steering committee reviewing STDs to align them with the new PPADA,2015 & subsequent Regulations.
Team player in preparation of KenGen’s Supply Chain Policy and Manual.

3. Presentation Outline Introduction Statement of the problem
JOH-KGN JvW-X1
Presentation Outline
Introduction
Statement of the problem
Objectives of the checklist
Methodology
Results and discussions
Conclusion
Recommendations

4. Introduction
Are we always conscious that some specific little details we put in tender documents determines if the tender will be successful or not? There is a fateful correlation between documents’ quality & achievement of performance targets and subsequently; corporate reputation, jobs retention, public health, welfare, safety & development. Use of the correct Standard Tender Documents (STDs) issued by Public Procurement Regulatory Authority (PPRA) is compulsory. Specific information must be included, which must form the basis of ALL procurement contracts.

5. Introduction Cont’d Failure to adhere to these provisions:
Is breaking the law,
Results to terminations of procurement procedures,
Makes a PE vulnerable to appeals to PPARB and Courts,
Attracts contract implementation difficulties,
Causes a PE to fail on its corporate objectives,
Determines corporate future,reputation,job retention and
Subsequently, public welfare, safety and development.

6. Statement of the Problem
Owing to adverse issues enumerated above and conscious of their effects to the company, professional preparation of STDs was identified as a skills and competence gap. A comprehensive checklist introduced in 2016 as a practical tool to fill this gap, through on-the-job-training, coaching and mentoring of staff.

7. Objectives of introducing the checklist:
To adhere to the instructions of the procurement Law, Regulations and Manuals.
To practically train and coach Staff to professionally prepare tender documents for floatation.
To ensure that KenGen procurement procedures is devoid of delays, complains and appeals by bidders, terminations and contract administration problems.

8. Methodology
Check-list
Ana-
lysis
Data
Popu-lation
Design

9. Results and Discussions
Consequences of failure to apply or negligence in application of professionally prepared STDs in KenGen:
A classical case was the appeal case No. 44 of 2017 at PPARB by Rose gate promotions against IEBC on 9th July 2017, on procurement of election ballot papers for the
2017 general election. Board severely
reprimanded EIBC’s procurement Head
for issuing a flawed tender document by:
mixing 2 procurement methods; putting 2 conflicting award criteria and using 2 envelope biding for open tendering. The award was nullified, causing political turmoil in the country.

10. Results and Discussions Cont’d
This legal precedence was reiterated by a high court ruling in the JHG marine VS. PPARD case of 2015, High court : the Board ought to have nullified the award due to a flawed tender document and to order the PE to re-tender. “Any defective tender document stands a risk of causing the entire procurement process including the award and contract being challenged and nullified”.

11. Results and Discussions Cont’d
In case : Crane AB against CBK(tender for new generation bank notes), Dela Rue International’s award was nullified by PPARB for irregularly applying the 15% margin of preference. In civil case 24/2017, Court Of Appeal : “our economic development will be hampered if grand projects are delayed due to controversies that can be avoided if the process set on the law is faithfully followed.”

12. Results and Discussions Cont’d
After the President ordered vetting of all Procurement and Accounts Heads, KISM released a press statement and noted “Standard documents being used are outdated, thus creating loopholes that result in incorrect setting of evaluation criteria and subsequent bad decisions in the evaluation of tenders, leading to mis-procurement of contracts. The documents must be updated and practitioners supported in their understanding and application”

13. Results and Discussions Cont’d
Cognisant of this reality, KenGen in 2015 customized the PPRA’s STDs . Despite this noble initiative, there has been failure or negligence in use of these documents. Failure to apply or slackness in application of professionally prepared STDs in KenGen brought problems between as indicated in the table below:

14. Results and Discussions Cont’dNO
INCIDENCE
NO. OF OCCU-RENCES 1.
Rejection of tender documents submitted by User departments . 21 2.
Protests, queries and request for clarifications by Bidders to KenGen. 36 3.
Complains and protests by bidders to PPRA and to MD/CEO. 12 4.
Uploading of corrective addendums & clarifications and extending tender response periods. 78 5.
Terminations of tendering procedures. 18 6.
Successful appeals by bidders to PPARB . 3 7.
Contract amendments, variations and extension of original implementation period. 15 8.
Extension of expiring contracts or using direct procurement(s) with the current contractor(s) because of delays in tendering.
Source: Stima file server; KenGen’ s website and External correspondences file. 17

15. Introduction of the checklist in KenGen:
Its a compact repository of nearly all the essential requirements of the STDs from the procurement Law, Regulations, manuals, circulars and other directives. It details:  
The threshold of using the STDs vis-a-vis Request for Quotations (RFQs); what should be in the appendix to instructions to tenderers including the all-important (preliminary, technical & financial) evaluation criteria and post-qualification due diligence and negotiations where prescribed.

16. Checklist Cont’d
Contents of special conditions of the contract : contract/delivery period, defect liability period, performance guarantee, credit terms, payment terms and taxation clauses.
How to safeguard the 30% procurement opportunities of the special groups as required by PPADA.
Business questionnaire, which serves as an affidavit on: corruption; debarment; bankruptcy/receivership/ Insolvency; crime; conflict of interest; fraud; collusion, obstruction and coercion as required by PPADA.

17. Positive outcomes of applying the checklist
The combined average occurrence of all the above incidences between 2017 – 2018 has reduced by 49% as shown in the table below: NO
INCIDENCE
NO. OF OCCURE-
NCES BETWE-EN 2015 – 2016
NO. OF OCCURE-NCES FROM 2017 TO DATE 1.
Rejection of tender documents submitted by User departments. 21 14 2.
Protests, queries and request for clarifications by Bidders. 36 12 3.
Complains,protests by bidders to PPRA & MD/CEO. 4 4.
Uploading of corrective addendums & clarifications & extending tender response periods. 78 27

18. NO. OF OCCURE-NCES FROM 2017 TO DATE
Outcomes Cont’d NO
INCIDENCE
NO. OF OCCURE-
NCES BETWEEN
NO. OF OCCURE-NCES FROM 2017 TO DATE 5.
Terminations of tendering procedures. 18 13 6.
Successful appeals by bidders to PPARB. 3 1 7.
Corrective amendments & variations & extension of original implementation period. 15 8.
Extension of expiring contracts or to use direct procurement(s) on current contractor(s) owing to delays in tendering. 17 8

19. Outcomes Cont’d
The average absorption rate of the annual procurement plan for the last 3 years, including the portion for youth, women and PWDs has improved by 56% as shown on the table below: NO
FINANCIAL YEAR
PROCUREMENT BUDGET TARGET(KES)
PROCUREMENT BUDGET ABSORBED(KES)
IN % 1
56,277,499,459
24,217,682,614
43% 2
45,061,753,604
24,492,997,883
54% 3
47,790,483,652
29,469,201,050
61%
ALLOCATION TO YOUTH,WOMEN & PWDs.
653,473,096
304,740,066
51%
957,643,000
401,650,001
42%
1,341,003,133
1,151,100,000
85%
AVERAGE IMPROVEMENT ON ABSORPTION
56%

20. Conclusion
Application of the checklist has helped in implementation of KenGen’s procurement plan, which contains departments performance targets, enabling KenGen to fulfil its mandate, strategic objectives set in line with Government’s performance contracting policy in public service, for achievement of economic development contained in the country’s Vision 2030 economic blueprint.

21. Recommendations
Intensify the application of the checklist in all areas.
Further training on checklist upon review of STDs.
Collaborative caution in determining parameters to be in preliminary and technical evaluation criteria, to avoid termination(s) and appeals.

22. The Checklist

23. Checklist Cont’d

24. Thank you