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