PPOA National Bank Building,

Harambee AvenueP.O. Box 58535-00200,

Nairobi KenyaTel: +254-20-3598791/4Fax: +254-20-2119420

www.ppoa.go.ke

Inside this

Message from PPRB Chairman...Pg2

DG on PPOA objectives... Pg3

Pictorial...Pg4-5

Roll of KISM in Procurement Management...Pg6

US MCC Training Programme...Pg7

Demistifying E-Procurement...Pg8

PPOA launches Citizens’ Service Delivery Charter

The PPOA launched its citizen’s service delivery charter on 19th December, 2008. This is a significant step towards full operationalisation of the Authority and stands out as a mark of confidence and determination for the nascent Authority to embed citizen-focused service delivery.

Why Citizen’s Service Delivery Charter The charter describes the expectations in terms of service experience by the Kenyan citizens. It is styled as ‘citizen’s service delivery charter’ to characterize the focus on results for ‘wananchi’ in line with the public service reforms which are aimed at enhancing accountability within public institutions to the citizens. It also infers empowerment to those directly interacting with the Authority.

Key Citizens’ Service Delivery Focus Areas The charter highlights nine key services rendered directly to the citizens. These are: enforcement of the Public Procurement and Disposal Act (PPDA), 2005 and the Public Procurement

By Mr. James K. Kihara

The Chairman of the Administrative Review Board Mr. Paul Mwaniki launches the public tender website.

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Quarterly PPOA Bulletin. Issue 02/09

and Disposal Regulation (PPDR), 2006; building capacity of the public procurement practitioners and stakeholders; formulation of guidelines, rules and regulations on public procurement and disposal; advisory services on enquiries about the PPDA and PPDR; issuance of policy guidelines and standard procurement documents; holding consultative stakeholders forum; carrying out procurement investigations; reviewing of public procurement complaints and appeals; dissemination of review board decisions and; debarment of persons from

Message from the Public Procurement Administrative Review Board Chairman

The Public Procurement Administrative Review Board was established under the Exchequer and Audit (Public Procurement) Regulations 2001 and continued in the Public Procurement and Disposal Act, 2005. It was established to promote and uphold fairness in the Public

Procurement System through judicious and impartial adjudication of matters arising from disputed procurement proceedings in order to increase transparency, accountability and public confidence.

The Board adjudicates on reviews emanating from Procurement Proceedings; Orders of the Director–General and Debarment from those participating in Procurement Proceedings. So far

the Board has heard only reviews against the decisions of the Procuring Entities in procurement proceedings.

The Board consists of six professionals appointed from the private sector and three members appointed by the Minister for Finance. Currently the membership consist of members nominated by the Law Society of Kenya, Kenya Association of Manufactures, Central Organization of Trade union (Cotu) institution of engineers of Kenya, Institute of Certified Public Secretaries

of Kenya and the Architectural Association of Kenya. In order to get audience at the Board, one has to be a candidate, which is defined in section

3 of the Act to be “a person who has submitted a tender to a Procuring Entity”. The complainant must file the matter within fourteen days of notification. It is mandatory for complainants to

state the breaches of the Act or the Regulations when filing the review.The Board hears and determines reviews in the stipulated thirty days from lodging

the review. This ensures that the procurement process is not delayed as in the normal court procedures. There is always fairness in the Board’s adjudication and all parties are given equal opportunity to be heard. The Board has upheld the decisions of the Procuring Entities that have followed the law and nullified tenders and contracts that were done in violation of the Act and the Regulations. As a Board, we are conscious

that a fair and transparent tender process must have a mechanism for aggrieved bidders to lodge a complaint. We shall at all times ensure that there is fairness,

transparency and objectivity in the appeal mechanism.

By Mwaniki Gachoka

A note from the Interim Director General By Maurice Juma

The Kenya Procurement Journal is an integrated effort between PPOA and USAID Kenya, through the Millennium Challenge Account-Threshold Program (MCA-TP). The Journal seeks to give readers a glimpse into the goings-on of Public Procurement system in Kenya. The reforms being undertaken in conformity with the new public procurement dispensation are of particular importance. These reforms are widely expected to radically transform the manner in which procurement is conducted with the overall goal of achieving value for money.

At PPOA, we recognize that it will take a myriad of concerted efforts to streamline procurement. Whereas the legal provisions are well laid out, we need to back them up your our own will as stakeholders in the reform process. We urge officials charged with the procurement function to exercise integrity in their day to day activities.

On the flip side, we have developed guidelines for potential bidders interested in doing business with the Government. We hope that bidders will solicit their business with integrity and deliver on time once awarded procurement contracts.

We will continue playing our oversight role by employing more innovative approaches through which the public sector would operate the procurement function by continually researching and employing international best practices. We hope this will go a long way in ensuring savings especially during this dispensation of global economic meltdown.

Going forward, to ensure sustainability of the Journal, readers are encouraged to make suggestions on future topics, give comments on published articles or submit to PPOA articles that they would wish published in this Journal through the contacts provided on the cover page.

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participating in public procurement. The legislative links of the foregoing underline the importance of the key areas of focus.

Rights and ResponsibilitiesThe charter provides a guide to the expectations governing the relationship between citizens and the Authority. For instance all complaints lodged with the review board are determined within 30days of the application.

Avenues of communicationThe charter provides communication channels that are available to the citizens including the physical location of the Authority’s offices.

Clients Service StandardsThe standards to be expected in the above service delivery are indicated on the charter.

Citizens Feedback and

ComplaintsA mechanism has been put in place to gather citizens’ compliant with respect to the Authority’s mandate. This will help to convert, to the extent possible, the arising complaints into satisfactory delivery of services.

Implementation of the

Service Charter StandardsTo ensure that the Authority walks the talk, appropriate strategies to align the service delivery are underway. These include re-engineering of work processes and capacity development to facilitate implementation and integration of the service charter standards into the Authority’s business practices.

Monitoring and Review In order to ensure sustainability of the service charter, the Authority is putting into place appropriate mechanisms for monitoring its performance against the set standards. Further, since the service charter is a living document that must revolve with changes, it will be reviewed when necessary.

PPOA Setting the pace in the RRI Model

By Henock KirunguSince inception of the Public Procurement Oversight Authority (PPOA) in January, 2007 the Rapid Results Initiative (RRI) model of performance to achieve results within 100 days was passionately embraced by the organization. This Results Based Management (RBM) System was introduced to the public sector by the then Public Sector Reforms and Development Secretariat (PSRDS) of the Cabinet Office. PPOA has so far conducted three waves of RRI. According to Mr. Sylvester Obongo, an RRI Coach of the Public Sector Reforms and Performance Contracting (PSRPC) in the Office of the Prime Minister, “PPOA is the first public institution to consistently celebrate its RRI achievements on the hundredth day.” The Coach made the remark during PPOA’s end-term celebrations of its 3rd RRI Wave at the KICC on 19th December 2008, which had earlier on commenced on 11th September, 2008 at the Kenya School of Monetary Studies.

The 3rd wave had five RRI goals to be achieved within 100 days as follows;

To improve compliance levels of the public procurement 1. law in 21 local authorities by 20 per centTo improve PPOA’s employee satisfaction by 20 per cent2. To reduce cost of accessing ministries’ tender adverts by 3. 30 per centTo determine administrative review cases within bid 4. validity period (120 days) instead the statutory maximum period of 144 days.To reduce average time taken by five public entities in 5. procuring common user items from baseline to 50 per cent

The major deliverables achieved during this wave were the issuance of PPOA’s Citizens’ Service Delivery Charter, development of Public Procurement Framework Contracting Guidelines and launch of Kenya’s first tenders’ portal, www.tenders.go.ke. The occasion was graced by the Internal Auditor-General, Mr. P.K. Ndung’u on behalf of the Permanent Secretary, Treasury.

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81. The Internal Auditor General Mr P.K. Ndungu makes the opening remarks during the RRI celebrations.

2. PPOA employees go through an e-Government procurement course sponsored by the World Bank at Kenya Institute of Management e-learning center.

3. Jane Njoroge the PPOA Ag.Technical Services Director updates the Interim Director General Mr. Maurice Juma during the RRI end term review workshop.

4. Board Members Mr. Sam Ogutha, Hon. Moses Muihia, Mr. Joshua Wambua and Amb. Amira share a joke during a short break. They were attending an RRI end term review workshop.

5. The Interim D-G Mr. Maurice Juma shares a moment with the Chairman of PPRAB Mr. Mwaniki Gachoka.

6. A development partner Achim Blume from GTZ follows proceedings during the RRI end term review workshop.

7. PPOA delegates prepare to attend the RRI endterm review workshop at the KICC.

8. Lisa Whitley (USAID-K) and Henock Kirungu, Policy and Research Manager, PPOA make reference to an RRI workshop document.

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81. The Internal Auditor General Mr P.K. Ndungu makes the opening remarks during the RRI celebrations.

2. PPOA employees go through an e-Government procurement course sponsored by the World Bank at Kenya Institute of Management e-learning center.

3. Jane Njoroge the PPOA Ag.Technical Services Director updates the Interim Director General Mr. Maurice Juma during the RRI end term review workshop.

4. Board Members Mr. Sam Ogutha, Hon. Moses Muihia, Mr. Joshua Wambua and Amb. Amira share a joke during a short break. They were attending an RRI end term review workshop.

5. The Interim D-G Mr. Maurice Juma shares a moment with the Chairman of PPRAB Mr. Mwaniki Gachoka.

6. A development partner Achim Blume from GTZ follows proceedings during the RRI end term review workshop.

7. PPOA delegates prepare to attend the RRI endterm review workshop at the KICC.

8. Lisa Whitley (USAID-K) and Henock Kirungu, Policy and Research Manager, PPOA make reference to an RRI workshop document.

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KISM under the supplies practitioners management act 2007.

In October 2007, the Kenya Institute of Supplies Management (KISM) was re-established as a membership organisation under the Supplies Practitioners Management Act, 2007. Previously, KISM existed as a membership organisation under the Societies Act since 1976. Statutory organs created by the Act include The Kenya Institute of Supplies Examinations Board, the Registration Committee and the Disciplinary Committee. Functions of the Institute and its associated Statutory Committees and Board consist of setting standards, training, registration, licensing, and discipline, provision of membership services and development of the profession in Kenya.

The institute is emerging as a key contributor in defining and setting standards of practice, and training for the profession, in Kenya and the region. Since 2008 KISM participated in the following:

progression of Kenya’s public sector procurement reforms in •collaboration with the Public Procurement Oversight Authority and reforms under COMESA’s Enhanced Procurement Reform Capacity Projectcontributing to Kenya Institute of Education supply chain curriculum •development workshopsAdvising private and public sector organisations on their •responsibilities, rights and obligations under existing procurement legislations.

The Act further recognises KISM as the body of procurement/supply chain professionals in Kenya, hence placing upon it the responsibility of spearheading development of the profession in all sectors. In realising this mandate, KISM with support from GTZ conducted sensitization workshops in September 2007, in Kisumu, Eldoret, Embu, Mombasa and Nairobi.

Under the Act, practitioners in the public and private sectors are required to register as members of KISM. The Act imposes stiff penalties upon persons working without registration as well as on CEO’s employing persons who are not registered. Registration stands out as one of the most important instruments through which KISM will ensure that world class standards for the practice of supply chain management in Kenya are developed, promulgated and sustained.

Firms are required to employ persons who obtain KISM Membership after successfully completing a recognised professional course of study. Implementation of this requirement is ongoing and will ensure only qualified people are employed thus reducing procurement related losses previously occasioned by the employment of persons not qualified to handle procurement/supply chain management functions. To date KISM has registered more than 2500 procurement/supply chain management practitioners. The data base generated through the registration process also provides an important point of reference for employers seeking to employ qualified persons and provides a basis for verifying credentials of practitioners. Chris Ohanda is the KISM Chairman.

By Chris Oanda,

By Jerome Ochieng

Public tender website lauched

The tender advertisement website was developed to achieve the goals set by the ICT RRI team. One of the quick win for implementation of e – procurement was to develop an e advertisement website. To fast track this, ICT RRI team decided to take the challenge and develop the e-advertisement website within the RRI period. The tender advertisement website was launched under the domain name www.tenders.go.ke.

ObjectivesThe main aim of developing the website is to improve access to government tenders; it serves as an alternative for the suppliers to view the tender adverts online apart from newspapers only because currently, the procurement act recognizes the newspapers as the only means of tender advertisements.

The suppliers will also have the advantage of being able to view the tender document before purchasing it thus saving them a great deal of time and money. By a touch of a button the supplier will be able to access all government tenders at comfort of their seat.

All the adverts in the site will remain accessible for the entire tender advert period and an extra 30days before it is archived. Hence, the site will also serve as only online archive for all government tenders.

The website is developed in such a manner that it can be accessed even with low bandwidth and maintains all necessary functionalities of a modern website. This was aimed at making the site user friendly for those suppliers/citizens with less technology knowhow. The tender adverts are arranged into various categories, dividing various government procurement items into groups. The suppliers will be concentrating with categories of items in which they supply government. This is also coupled with enhance search capabilities.

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US Millennium Challenge Corporation Training Programme

By Jeff Woodhams and Jennifer Boit, ARD

Procurement officers are taken through a sensitization training on the Act and Regulations of Public Producment.

PPOA have organized a training programme delivered by ARD Inc who are the contractors appointed under the US MCC Threshold Program to Kenya to assist PPOA.

The bulk of the activity has delivered sensitization training to 85 Procuring Entities in 23 workshops, covering 826 staff (217 of whom were female). The objective was to make user department staff in procuring entities aware of the main requirements of the new procurement act and regulations and of their responsibilities under the legislation and to give procurement officers more detailed knowledge of the new legislation and of some of the difficult issues arising under public procurement legislation generally. This was the first time that user department staff has been trained in the legislation.

The training proved very popular with those attending with over 93% rating the sessions as “good” or “excellent”. In commenting on the programme many trainees requested more time be allowed in future, with frequent updates.

The ARD team have also provided several training sessions to PPOA staff and members of the Advisory Board and Administrative Review Board and have covered in greater depth subjects as varied as Framework Contracts, Procurement Reviews, Using Procurement to Help SMEs and the Management of Procurement Records.

ARD have been commissioned to provide additional training between February and May 2009, which will cover more advanced procurement for senior procurement officers, the General Manual and 8 sector specific manuals, training for bidders and training for Accounting Officers. Details of this training will be advertised on the PPOA website and some will appear in newspapers as well.

Global Procurement Updates

Promoting the use of the EU Ecolabel within green

public procurement

A workshop held in Brussels on the 14th October 2008 brought together public procurers, suppliers and other relevant stakeholders to discuss appropriate approaches for promoting the use of the EU Ecolabel within green public procurement.

The event took place as part of a project undertaken by ICLEI for the European Commission to promote the use of the EU Ecolabel criteria by public authorities and their suppliers across the EU. The Regional Environment Center for Central and Eastern Europe (REC) together with Bio Intelligence Service are project partners.

One of the strongest recommendations to come out of the event was the need for much closer communication and dialogue between procurers and the market – informing the market early of future public procurement requirements, and discovering what alternative approaches the market may be able to deliver.

For more information see ec.europa.eu/environment/ecolabel/index_en.htm

SMART SPP goes online

In February 2009 SMART SPP will launch

its website. Public purchasers and suppliers

of innovative and sustainable solutions in

the field of lighting systems, electric vehicle

fleets and heating and cooling systems

for buildings will find this new web-portal

a valuable source of information on pre-

procurement and innovation.

The SMART SPP project will promote the

introduction onto the market of innovative

highly energy efficient products and services

that are in the last stages of development.

This will be done through encouraging early

market engagement between public authority

procurers and suppliers in four European

countries (Denmark, Portugal, Spain and the

United Kingdom) using the pre-procurement

phase.

The new SMART SPP website will be

announced on the Procura+ website - www.

procuraplus.org and the Procura+ exchange

mailing list once it is launched.

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Demystifying e-Procurement

The World Bank and partners organized a Global Dialogue Workshop on Electronic procurement popularly as e-procurement. The event took place on December 10, 2008 at various locations in the world with coordination from Washington.

The seminar participants included senior level government officials from a wide range of countries around the world, such as Italy, Russia, Chile, India, Bangladesh, Armenia, Kenya, Tanzania, Moldova, Philippines, et al. The focus was on electronic procurement in the public sector and government officials from various countries gave their experience in the implementation of electronic procurement. Since the focus was on government the seminar referred to the system as E-GP (Electronic Government Procurement).

Since the focus was to demystify E-GP the seminar focused on a discussion that gave the general understanding of what E-GP was all about and various country efforts in implementation. It was realized that Electronic Government Procurement (e-GP) plays a significant role in the context of public sector reform and modernization. Some of the benefits include increased transparency, efficiency, performance, and monitoring of public procurement. The strength of e-GP in the Governance agenda arises from its capacity to improve the accessibility of information and to ensure fiduciary compliance by automating practices prone to corruption.

The objective of the workshop was to engage in an

By Jerome Ochieng

international dialogue on opportunities and challenges of e-GP implementation and the role of the World Bank in the process. The workshop focused on factors aimed at catalyzing e-GP implementations in participating countries, demystify the process, and identify “quick wins” and exposing key myths and misconceptions. Using case studies, the speakers discussed best practice examples and key lessons from e-GP initiatives, as well as general recommendations for designing and implementing successful e-GP projects.

Some of the pertinent issues addressed included some of the most successful examples of e-GP and whether there are solid evidence of positive impact. What governments should do to ensure success of e-GP, together with the kind of procurement system reforms necessary including changes in the legal framework

There were some discussions on a need for a global reference model or agreed common standards/specifications or generic open source solution for e-GP. The discussion also included entry strategies, staging implementation, benefits and costs, issues with integration into public FMS, managing the risks of PPPs, business models for PPPs, issues with the use of digital signatures, institutional frameworks, timing and cost considerations under World Bank procurement.

At the end of the session all participant admitted that they left the venue more knowledgeable on e procurement than they came in.

Upcoming Events:

A series of bidders training to be held between February and March in Nairobi, Eldoret, Garissa, Embu, Mombasa and Kisumu.

The East African Procurement forum to be held in August.