best procurement practices and redressing the major constraint of procurement for effective research...
TRANSCRIPT
BEST PROCUREMENT PRACTICES
AND
REDRESSING THE MAJOR
CONSTRAINT OF PROCUREMENT
FOR EFFECTIVE RESEARCH WORKIMRAN CONTEHPROCUREMENT OFFICER, SLARI
OUTLINE
• Introduction
• Basic principles of procurement
• Strategic vision
• Mission statement
• Procurement and supply in SLARI’s strategic plan
• Public procurement Act 2004
• Procurement process
• Procurement methods
• Delay and quality issues
• Conclusion
INTRODUCTION
Government cannot provide services to the people without engaging in procurement. This
makes public procurement big business.
Public procurement contract represent a major share of any country’s GDP and public
expenditure budget.
Most of the major corruption are associated with procurement
BASIC PRINCIPLES OF PROCUREMENT
The overriding objectives of a country’s procurement system is to deliver efficiency
and value for money in the use of public funds while adhering to national laws and
policies
Maximizing economy, efficiency, and effectiveness
Promoting integrity and fairness
Increasing transparency and accountability
Conflict of interest
Ethical principle
Business gift etc.
STRATEGIC VISION
“Improved and sustainable broad-based agricultural growth”.
MISSION STATEMENT
“To enhance sustainable productivity, commercialization and competitiveness of the
agricultural sector through generation and promotion of innovative agricultural technologies
and empowerment of stakeholders”.
Procurement and Supply in SLARI’s Strategic plan (page 68)
The operation of the procurement and supply division are guided by clear
procedures for procuring goods and services and disposal of unserviceable,
obsolete or surplus stores and equipment by public entities in order to maximize
efficiency, promote, competition, integrity, fairness, accountability, and
transparency.
In compliance with this, SLARI shall establish this division which is expected to
contribute significantly to the attainment of the overall institutional mission
through timely procurement and supply of goods and services at the right quantity,
quality, time, price in accordance with existing government procurement and
disposal procedures.
Public Procurement Act 2004
Being an Act to establish the NPPA, to regulate and harmonize public procurement
processes in the public service, to decentralize public procurement to procuring entities,
to promote economic development, including capacity building in the field of public
procurement by ensuring value for money in public expenditures and the participation in
public procurement by qualified suppliers, contractors, consultants and other qualified
providers of goods, works, and services and to provide for other related matters.
what is Public Procurement?
‘Means the acquisition by any contractual means of goods, works, and services using
public funds’. (PP Act, pg 6)
KEY TERMS IN THIS DEFINITION
GOODS
Means object of every kind and description including commodities, raw materials, products, and
equipment, and objects in solid, liquid or gaseous form, and electricity as well as services incidental
to the supply of the goods, if the value of those incidental services does not exceed that of the
goods themselves.
PUBLIC FUNDS
Means any monetary resources of the state budget, or aid and credit under agreement with foreign
donors, or extra budgetary resources of procuring entities, used in public procurement. (page 9)
WORKS
All works associated with the construction, reconstruction, demolition, repair or renovation of a
building, structure or works, such as site preparation, excavation, erection, building, installation of
equipment or materials, decoration and finishing, as well as services incidental to construction such
as drilling, mapping, satellite photography, seismic investigation and similar services provided
pursuant to the contract, if the value of those services does not exceed that of the construction
itself. (page 10)
PROCUREMENT METHODS
Open competitive bidding
National
International
Restricted bidding
Request for Proposals
Request for quotations
Sole source
Payment
Award of
Contract
Receive and
evaluate quotatio
ns
Sourcing/Market
research
Determine the
procurement method
Needs identificati
on and assessmen
t
Develop technical
Specification
Delivery
Disposal
What do you want?Does it add value to SLARI?
What is a Specification?Reasons for developing SpecificationsHow to develop specification
Based on the thresholdBased on the urgencyAvailability of the itemCompetitive requirements
Prequalification of SuppliersProcurement methodsProblems with the use of proforma invoice
Commercial responsivenessTechnical compliancePrice evaluation
MEAT
Required date and place of deliveryRequired quantity
GRNRequired Specification
InvoiceDelivery note
Stock record cardAgreement/ LPO
Transfer Sale by public bid to the highest bidder
Sale by auctionDestruction
DELAY ISSUES
PROCUREMENT PLANNING
It is commonly known that “failure to plan is planning to fail”
Though procurement planning is a legal requirement, lack of it is still a major cause of
inefficiency
It will lead to:
Artificial emergency procurement
Failure to absorb allocated fund
Application of inappropriate method
Circumvention of legal and regulatory procedures
TIMELY SUBMISSION OF REQUIREMENTS
Requirements must be submitted long before the required date of delivery to allow the use of
the appropriate method of procurement
Must reasonably be able to determine when an item needs to be repaired or replaced eg tyres
QUALITY ISSUES
SPECIFICATION
Goods must be clearly specified
Goods must serve its purpose
TESTING
Should be tested
TERMS AND CONDITIONS OF AGREEMENT
Warranty/ Guarantee
ISO standards
CONCLUSION
An effective public procurement practice plays a strategic role in governments for
avoiding mismanagement and waste of public funds.
I Thank You ALL