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PROCUREMENT AUTHORITY AND

RESPONSEBILITIES

Dr. Fred Mugambi Mwirigi

JKUAT

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Course Content• Introduction• Responsibility and authority in PE’s• Authority and Responsibility of the CEO• Authority and Responsibility of the User department• Authority and Responsibility of the Tender Committee• Authority and Responsibility of the Procurement Committee• Authority and Responsibility of the Procurement Unit• Authority and Responsibility of the Evaluation Committee• Authority and Responsibility of the Inspection/Acceptance

Committee

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Introduction

The procurement function entails - identifying sources of supply - purchasing - receiving - storing - distribution

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Introduction Contd.

• Both public and private organizations procure goods and services

• This form of buying is referred to as organizational buying

• Organizational buying is very complex since buying decisions are made at various levels

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Introduction Contd.

• For Public Entities, procurement authority and responsibility emanates from the following documents;

1. PPDA, 2005/ Regulations, 20062. Standard bidding documents3. Procurement manuals4. Administrative guidelines5. Best practice manuals• No’s 2-3 must be consistent with the ACT

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Introduction Contd.

For private organizations, procurement authority and responsibility is enshrined and documented within:

Company policies Procurement manuals Best practice manuals

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Sharing Authority and Responsibility

• Procurement authority and responsibility are shared at various levels by various offices within an organization

• Each party has a unique role in the supply chain• Sharing as well as delegation of some authorities

may happen in some cases while in others it is not possible

• There are various levels of approvals in procurement

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Contd.• The main procurement decision makers in

organizations include;1. CEOs – influencers2. Tender/ buying committees3. Procurement Committees4. Technical committees – gate keepers5. Users – deciders6. Receiving / Inspection committees

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Specific Responsibilities and Authorities

Public Entities have assigned authority and responsibility of

buying decisions to various offices and committees in the

organization. They include;

• CEO

• User department

• Tender Committee •

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Contd.

• Procurement committee

• Procurement Unit

• Inspection and Acceptance Committee

• Evaluation Committees

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Authority and Responsibility of the CEO

• Primary responsibility to ensure compliance to the - The Act /Regulations / organization policies - Procurement manuals - Best practice manuals

• Ensures that procurement plans/ budgets are made and adhered to

• Approves certain levels of orders• Initiates procurement of capital projects• Sign procurement contracts

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Authority and Responsibility of the User Department

• Responsibilities - managing the budget - drawing specification - initiating requests - evaluation of tenders - prepare procurement plans• Authority - to incur expenditure - to approve requests - to inspect receive/ reject goods

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Authority and Responsibility of the Tender Committee

Authority of Tender committee• Approve the selection of successful tenderers• Award procurement contracts over KES 500,000• Approve selection of procurement method • Approve the list of tenderers in cases of restricted

tendering • Approve the list of prequalified suppliers • Approve negotiations • Approve the amendment of contracts previously

awarded by the tender committee

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Authority and Responsibility of the Tender Committee Contd.

Responsibility of tender committee• Ensure that funds are available • Ensure that prices are within market prices• Review quarterly reports on quotations• Ensure transparency in the tender process

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Responsibility and Authority of the Procurement Unit

Responsibilities• Maintain and update list of prequalified suppliers• Advertise procurement and disposal opportunities.• Co-ordinate the receiving and opening of tenders• Maintain and safeguard procurement and disposal

documents and records.• Submit lists of pre-qualified tenderers to the tender

committee for approval

• Propose the membership of evaluation committee

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Responsibility and Authority of the Procurement Unit

Responsibilities Contd. • Co-ordinate the evaluation of tenders,• Recommend a negotiating team for appointment• Prepare and publish notices of award and notice of

tender acceptance.• Prepare contract documents in line with the award

decision.• Prepare and issue rejection and debriefing letters.• Prepare contract variations and modifications to

documents

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Responsibility and Authority of the Procurement Unit

Responsibilities Contd. • Provide information as required, for any petition investigation • Implement the decision of the procurement, tender and disposal

committees• Act as a secretariat to the Tender, Procurement and Disposal

committees.• Liaise with the Authority on matters relating to procurement and

disposal:• Prepare and submit to the Authority reports required under the Act• Monitor contract management by User departments to ensure

implementation is on course

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Responsibility and Authority of the Procurement Unit

Responsibilities Contd. • Report any significant departures from the terms of

contract• Prepare consolidated procurement and disposal plans• Advise the procuring entity on aggregation of the

procurement to promote economies of scale• Monitor and evaluate of the supply chain

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Responsibility and Authority of Procurement Unit

Responsibilities Contd. • Carry out market surveys.• Conduct periodic and annual stock taking.• Certify the invoices and payment vouchers • Approve extension of the tender validity period• Verify that the available stock levels warrant

initiating a procurement process.

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Responsibility and Authority of Evaluation Committee

• Technical evaluation of tenders/ proposals• Carry out due diligence on each tender• Carry out financial evaluation• Prepare a report to the tender committee

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Responsibility and Authority of Inspection/Acceptance Committee

• Inspect and test goods received• Assess conformity to original specs• Accept or reject goods• Ensure the quantity is correct• Ensure goods are received in time• Ensure all brochures / manuals have been received• Issue interim or completion certificates or goods received

notes

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Thank you