The Procurement Process

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PUBLIC
PROCUREMENT
PROCESS

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
place
The benefits of good procurement
include: Security of supply, Lower total
cost, Reduced risk, Improved quality,
More added value, Greater efficiency,
New innovations..

Objectives of the PPDA, 2005


economy; efficiency; competition; fairness;
integrity; transparency; accountability; public
confidence in public procurement and
disposal; and promotion of local industry and
economic development.
Importance of Public Procurement
Majority of Kenya Vision 2030 flagship projects
to be delivered through public procurement.
Need for elimination of waste through strategic
leadership in public procurement & disposal

THE PUBLIC PROCUREMENT PROCESS

1. Identify the Need

Responsibility for identification of


requirements at Departmental level,

Organizational level
Consider type of goods, works and
services; and when and where needed

2. Undertake Procurement Planning

Departments supply their procurement plans


which are consolidated
Procurement commenced on satisfaction that
sufficient funds exist

THE PUBLIC PROCUREMENT PROCESS

3.Specification of Requirement

It 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/works
Provision of information that the supplier
requires in order to reliably meet the users
expectation.
Need for market survey to assist with preparation
of specifications e.g bills of quantities
Specification to be drawn by the user of the
product or service and the SCM function
Consultants may be used in preparation of
specifications and bidding document

THE PUBLIC PROCUREMENT PROCESS

Methods of specifications
Sample 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 on
Grading this method is commonly used in cereals and cash crops
to indicate the various quality levels e.g. grade I, II among others
Technical 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 requirement
brand 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))

THE PUBLIC PROCUREMENT PROCESS

4. Preparation of Tender Documents


Containing Specifications - Bills of quantities,
drawings, evaluation criteria, Price schedule,
tender forms, sample contract, Preferences and
Reservations e.t.c.
5. Choice of Procurement Method
a. Open tendering (Open National Tender or
International Open Tender)-preferred method
b. Others : Restricted Tender, Direct procurement,
Request for quotations, Request for proposals,
Low value procurement, Specially permitted
procedures

THE

PUBLIC

PROCUREMENT

PROCESS

6. Publicizing the procurement opportunity Advertising in newspapers, notice boards,


websites
7. Availing bidding documents to bidders
8. Submission of bid Documents
- provision of tender box
- no late tenders
9. Opening of Bids
- Appointment of tender opening committee,
bidders may participate, and minutes
prepared

THE PUBLIC PROCUREMENT PROCESS

10. Bid Evaluation:


This step involves:
a.Preliminary evaluationand rejection of
tenders that do not satisfy the basic
requirements (Reg.47)
b.Technical Evaluation- comparing each tender
to the technical requirements
c.Financial Evaluation- comparing tenders to
determine the evaluated price of each Tender to
consider Preferences and Reservations
d.Post 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

THE PUBLIC PROCUREMENT PROCESS

10. Award of Tender by Tender Committee


Tender committee Quorum to be FIVE
including the Chairman
Decision through consensus
Minutes of Tender Committee to be prepared

12. Notification of Award and Appeal


Window Period
i. Notification to winner and losers
simultaneously
ii. Bidders has a right to seek
administrative review on PEs decisions
iii.Bidders right to seek judicial Review

THE PUBLIC PROCUREMENT


PROCESS

13.Contract Management
Execution of contract
Inspection and quality assurance-by
Inspection & Acceptance committee
Handling, claims and disputes
Administering payment provision.
Overdue payments to be paid with interest
Variations to Contracts allowed on price
and quantity as per Regulations
Contract Termination - To be approved by
the tender committee.

THE PUBLIC PROCUREMENT


PROCESS

14. Disposal of surplus, obsolete


or/and unserviceable stores by
use of the following methods

Transfer to another entity


sale by public tender
sale by public auction
destruction, dumping or burying
trade-in
Restriction on disposal to employees to
be set out in the regulations.

CONCLUSION

PPDA,2005 outlaws inappropriate influence in the


procurement process
PPOA is mandated with carrying out procurement
assessments, audits and reviews and issue
directions
PPDA,2005 makes it mandatory for Procuring
Entities to report to PPOA on prescribed activities
The Director General of PPOA with the approval of
PPOAB may debar a person from participating in
procurement proceedings
Compliance with PPDA,2005 and PPDR,2006
results
in
economy,
efficiency,
fairness,
competition, transparency, public confidence and
promotion of local industry.

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