Procurement Manual-General Procurement Manual DOWNLOAD

190 Pages·2009·1.2 MB·English

by  Jeffrey Woodhams

PUBLIC PROCUREMENT AND DISPOSAL

GENERAL MANUAL

FIRST EDITION

MARCH 2009

Table of Contents
TABLE OF CONTENTS
Foreword---------------------------------------------------------------------------------------------------------------iv
Acronyms--------------------------------------------------------------------------------------------------------------vi
Glossary of Terms-----------------------------------------------------------------------------------------------------vii

SECTION A: PROCUREMENT POLICY, LAW AND PRINCIPLES
CHAPTER 1 PROCUREMENT POLICY PURPOSE OF THE MANUAL
1.1 Public Procurement Policy in Kenya
1.2 Purpose of the Public Procurement and Disposal General Manual (PPDGM)
1.3 Authority of the PPDGM
1.4 Scope and Focus of the PPDGM
1.5 The Procurement Cycle
1.6 Linkages to the Large Public Finance Management
1.7 Layout and Organization of the Public Procurement and Disposal General Manual
1.8 Circulars and Administrative Guidelines

CHAPTER 2 PUBLIC PROCUREMENT LAW AND GENERAL PROCUREMENT
PRINCIPLES
2.1 General Principles
2.2 Consistency And Full Compliance With The Public Procurement And Disposal Law
2.3 Promotion Of Economy, Efficiency And Value For Money Practices
2.4 Goods Practices and Linkages with the Larger Public Finance Management
2.5 Applicable Ethics in Procurement
2.6 Promotion of Transparency
2.7 Responsibility Authority and Accountability
2.8 Addressing Alleged Procurement Irregularities
2.9 Debarment of Bidders and Contractors
2.10 Ensuring a Basis for Setting Up Effective Audit Standards
2.11 Authority for procurement Decisions
2.12 Preferences and Reservations
2.13 Promoting the Environment Protection Through The Public Procurement

SECTION B: INSTITUTIONAL FRAMEWORK
CHAPTER 3 OVERSIGHT REGULATION AND POLICY
3.1 Parliament
3.2 Minister For Finance
3.3 Public Procurement Oversight Authority (PPOA)

CHAPTER 4 RESPONSIBILITIES FOR PROCUREMENT AND DISPOSAL BY PUBLIC
PROCURING ENTITIES
4.1 Organization of Procuring Entities
4.2 Responsibilities of the Accounting Officer/ Head of Procuring Entity
4.3 Responsibilities of the Procurement Unit
4.4 The Procurement Committee
4.5 The Tender Committee
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Public Procurement and Disposal General Manual

4.6 The Tender Evaluation Committee
4.7 The Inspection and Acceptance Committee
4.8 Responsibilities of the end department
4.9 Tender Opening Committee
SECTION C: PROCUREMENT PROCEDURES
CHAPTER 5 ELIGIBILITY AND QUALIFICATION OF TENDERERS/ BIDDERS
5.1 Eligibility
5.2 Qualifications
5.3 Qualifications Procedures
5.4 Pre-qualification procedures
5.5 Post-qualification procedures
5.6 Pre-qualified standing lists
5.7 Pre-qualification announcement
5.8 Pre-qualification document
5.9 Evaluation of applications
5.10 Debarment from participating in Public Procurement Proceedings

CHAPTER 6 PROCUREMENT PLANNING

6.1 The complete Procurement Cycle
6.2 The annual procurement plan
6.3 Aggregation and lotting
6.4 Grouping, packaging and profiling
6.5 Individual procurement plans
6.6 Selection of appropriate type of contract

CHAPTER 7 PROCUREMENT OF GOODS, WORKS AND SERVICES

7.1 Preparation of procurement specifications
7.2 Open Tendering Method
7.3 Restricted Tendering Method
7.4 Direct Procurement Method
7.5 Request for Quotations Method
7.6 Request for Proposals Method
7.7 Procedures for Low Value Procurements
7.8 Specially Permitted Procurement Method
7.9 Filling and Archiving

CHAPTER 8 PROCUREMENT OF CONSULTANCY SERVICES (REQUEST FOR PROPOSALS METHOD)

8.1 When request for proposal may be used
8.2 Procurement methods under request for Proposals
8.3 Expression of Interest (EOI)
8.4 Terms of reference (TOR)
8.5 Receiving and opening of proposals
8.6 Evaluation of proposals and contract award

CHAPTER 9 MANAGEMENT/ ADMINISTRATION OF PROCUREMENT CONTRACTS

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9.1 Purpose of Contract Management and Contract Administration
9.2 Procurement File
9.3 Contract File
9.4 Contract Administration responsibilities
9.5 Procurement Contract Management Plan
9.6 Maintenance of risks register
9.7 Measurement and control of performance
9.8 Contract review reports
9.9 Payments to Contractors
9.10 Contract review

CHAPTER 10 RECEIVING, INSPECTION AND ACCEPTANCE OF GOODS, WORKS AND SERVICES

10.1 Introduction
10.2 Inspection and acceptance committee (IAC)
10.3 Inspection and acceptance of goods, works and services

SECTION D: STORAGE, INVENTORY, CONTROL AND DISPOSAL
CHAPTER 11 INVENTORY CONTROL, STORE MANAGEMENT AND DISTRIBUTION

11.1 Responsibility of the head of procurement unit with respect to stores
11.2 Store Management and Stock Control
11.3 Public Property Inventory Management
11.4 Management and care of motor vehicles and equipment
11.5 Procedure for property Inventory Verification
11.6 Temporary removal and missing property
11.7 Assets and Inventory Management
11.8 Storage Facilities

CHAPTER 12 DISPOSAL OF STORES, EQUIPMENT AND OTHER ASSETS

12.1 Introduction
12.2 Items for disposal
12.3 Authority to dispose
12.4 Disposal plan
12.5 Sale by open tender
12.6 Sale by public auction
12.7 Transfer to another public entity
12.8 Destruction, Dumping or Burying
12.9 Trade – in
12.10 Disposal to Public Servants
2.11 Summary and additional instructions

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Foreward
FOREWORD

1. The legal framework of Kenya’s public procurement system was strength-
ened with the enactment of the Public Procurement and Disposal Act 2005
which came to operation on 1st January 2007 with the publication of the Public
Procurement and Disposal Regulations 2006.

The Act and the Regulations were enacted for the purpose of establishing
procedures for public procurement and disposal by public entities to achieve
the following objectives:
(a) Maximise economy and efficiency
(b) Promote competition and ensure that competitors are treated
fairly
(c) Promote integrity and fairness of those procedures
(d) Increase transparency and accountability in those procedures
(e) Increase public confidence in those procedures and
(f) Facilitate the promotion of local industry and economic
development

2. In a developing country like Kenya, the public procurement sector is often the
largest domestic market. The public procurement system is the bridge between
public procurements and the private sector providers. The government has the
obligation of providing goods, works and services to meet a variety of citizen
needs. These needs or requirements are obtained from either internal govern-
ment organisations or external sources to the government which is the private
sector through the procurement process. The necessity for public procurement
law and also clearly defined procurement system arises from the fact that,
unlike the private sector, public procurement is a business within a national and
political system, whose pillars of strength are integrity, fairness, accountability,
competition, transparency, national interest, promotion of local industry and
economic development, in addition to economy.

3. The public procurement system affects many aspects of society including: -
(a) The procuring entities, which have needs for material support to fulfil
their mandated missions.
(b) The business community of actual or potential suppliers, contractors
and consultants who satisfy the procuring entities identified needs.
( c) The professional associations, academic entities and public interest
groups, which have important concerns and views on how public inst-
itutions are managed and perform and
(d) The general public which is more likely to feel satisfied when they
know that expenditures by the procuring entities made through public
procurement system realise value for money.
(e) Development partners

4. This Public Procurement and Disposal General Manual (PPDGM) has been
issued by the Public Procurement Oversight Authority (PPOA) for the purpose
of: -
(a) Providing guidance to public officials who are responsi-
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Public Procurement and Disposal General Manual
ble for the public procurement processes, Auditors, Public Finance
Managers, Accountants and Administrators in their everyday work
relating to public procurement.
(b) It is also expected to be useful to all other parties participating in public
procurement in one way or other and in particular the suppliers contrac-
tors and consultants.
(c) Playing a pivotal role in development of sector specific manuals that
are unique to entities that are performing specialized services with a
view of enhancing the quality service delivery to their internal and ex-
ternal customers.

The Manual shall assist participants in public procurement in the appli-
cation of the Public Procurement and Disposal Act 2005 and the Public
Procurement and Disposal Regulations 2006. It will also play a big role
in the standardization of the public procurement practices across all
procuring entities in Kenya.

5. In the preparation of this general manual, efforts have been made not to pro-
duce a sophisticated or highly technical document, but to provide balanced
information and instructions which can be readily understood and followed by
all users. The PPDGM has been issued under the authority of the Public Pro-
curement and Disposal Act 2005 section 9 ( c) (i). The instructions in the man-
ual are therefore to be complied with by all participants in the public procure-
ment process.

6. The PPOA shall ensure accessibility of the PPDGM to all institutions and indi-
viduals at a reasonable fee. The PPDGM shall be amended from time to time
as necessary to accommodate any changes affecting the public procurement
system. This being a general manual and due to the very diverse and wide
range of works, goods, services and consultancy services procured by public
entities, and also the various sizes and organisational structures of public enti-
ties, it is appreciated that the manual may be found inadequate by some procur-
ing entities. Procuring entities are therefore encouraged to produce their own
internal procurement and disposal manuals suiting their situations and circum-
stances. In doing this, they shall ensure that such internal manuals are consistent
with the Public Procurement and Disposal Act 2005, the Public Procurement
and Disposal Regulations 2006 and this PPDGM. The PPOA shall also be at
hand to assist the procuring entities which may require assistance in the produc-
tion of such internal manuals.

M.J.O. Juma
Ag. Interim Director General
Public Procurement Oversight Authority

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Acronyms
ACRONYMS
AO Accounting Officer
C&D Consultancy and Design
CD Compact Disk
CQS Consultants Qualifications Selection
FBS Fixed Budget Selection
FIFO First in First Out
GDP Gross Domestic Product
HUD Head of User Department
HoPE Head of Procuring Entity
IAC Inspection and Acceptance Committee
IAPSO Inter-Agency Procurement Services Office - UNDP
ICT Information Communication Technology
IPR Initial Purchase Requisition
KNBS Kenya National Bureau of Statistics
LC Letter of Credit
LCS Least Cost Selection
LPO Local Purchase Order
LSO Local Service Order
MIR Monthly Issue Rate
MOF Ministry of Finance
MTEF Midterm Expenditure Framework
NGO Non-Governmental Organization
PAC Public Accounts Committee
PC Procurement Committee
PE Procuring Entity
PEs Procuring Entities
PFM Public Financial Management
PPDGM Public Procurement and Disposal General Manual
PPOA Public Procurement Oversight Authority
PPOAB Public Procurement Oversight Advisory Board
PS Permanent Secretary
QBS Quality Based Selection
QCBS Quality and Cost Based Selection
RFP Request For Proposal
RFQ Request for Quotations
SMART Specific, Measurable, Achievable, Realistic, Time bound
SMEs Small and Medium Enterprises
SO Stores Officer
SSS Single Source Selection
TC Tender Committee
TOR Terms of Reference
U.N. United Nations
UNICEF United Nations Children's Education Fund
UNOPS United Nations Office for Purchasing & Supply
WFP World Food Program
WHO World Health Organization

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Acronyms

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