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PUBLIC
PROCUREMENT
PROCESS
Objectives of Good Procurement
 Acquisition in the most cost effective
manner - Right price (lowest
evaluated price), In the right
quantities, at the right quality, from
the right source, at the right time,
Delivered at the right place
 The benefits of good procurement
include: Security of supply, Lower
total cost, Reduced risk, Improved
quality, More added value, Greater
efficiency, New innovations..
Objectives of the PPDA, 2005
 economy; efficiency; competition; fairness;
integrity; transparency;
accountability;
public confidence in public procurement and
disposal; and promotion of local industry and
economic development.
Importance of Public Procurement
 Majority of Kenya Vision 2030 flagship
projects to be delivered through public
procurement.
 Need for elimination of waste through
strategic leadership in public procurement &
THE PUBLIC PROCUREMENT PROCESS
1. Identify the Need
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Responsibility for identification of
requirements at Departmental level,
Organizational level
 Consider type of goods, works and
services; and when and where needed
2. Undertake Procurement Planning
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Departments supply their procurement plans
which are consolidated
Procurement commenced on satisfaction that
sufficient funds exist
THE
PUBLIC
PROCUREMENT
PROCESS
3.Specification of Requirement
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It consists of definitive descriptions on the
object to be procured.
Specifications must be clear, accurate and
Complete other wise will result to wrong
procurement of goods/services/works
Provision of information that the supplier
requires in order to reliably meet the user’s
expectation.
Need for market survey to assist with
preparation of specifications e.g bills of
quantities
Specification to be drawn by the user of the
product or service and the SCM function
Consultants may be used in preparation of
specifications and bidding document
THE
PUBLIC
PROCUREMENT
PROCESS
Methods of specifications
 Sample – part of the item to be procured is submitted to the buyer
to be used to compare the delivered amount against it to confirm
quality adherence and conformance. It is used in textile industry
and so on
 Grading – this method is commonly used in cereals and cash crops
to indicate the various quality levels e.g. grade I, II among others
 Technical illustration – this method is used to describe quality of
technical and complex artistic goods such as construction and
building works which should be accompanied by technical
drawings to confirm quality requirement
 brand name – this is used to describe quality of goods that are
difficult to specify by other means.
 However, the words; “or equivalent” should be added when
specifying using brand names. (section 34(4))
THE PUBLIC PROCUREMENT PROCESS
4. Preparation of Tender Documents
 Containing Specifications - Bills of quantities,
drawings, evaluation criteria, Price schedule,
tender forms, sample contract, Preferences and
Reservations e.t.c.
5. Choice of Procurement Method
a. Open tendering (Open National Tender or
International Open Tender)-preferred method
b. Others : Restricted Tender, Direct
procurement, Request for quotations,
Request for proposals, Low value
procurement, Specially permitted procedures
THE
PUBLIC
PROCUREMENT
PROCESS
6. Publicizing the procurement opportunity Advertising in newspapers, notice boards,
websites
7. Availing bidding documents to bidders
8. Submission of bid Documents
- provision of tender box
- no late tenders
9. Opening of Bids
- Appointment of tender opening committee,
bidders may participate, and minutes
prepared
THE PUBLIC PROCUREMENT PROCESS
10. Bid Evaluation:
This step involves:
a.Preliminary evaluation- and rejection of
tenders that do not satisfy the basic
requirements (Reg.47)
b.Technical Evaluation- comparing each
tender to the technical requirements
c.Financial Evaluation- comparing tenders to
determine the evaluated price of each Tender
to consider Preferences and Reservations
d.Post qualification- where indicated in the
tender documents a Procuring Entity may,
prior to award of the tender confirm the
qualifications of the lowest evaluated tenderer
THE PUBLIC PROCUREMENT
PROCESS
10. Award of Tender by Tender Committee
 Tender committee Quorum to be FIVE
including the Chairman
 Decision through consensus
 Minutes of Tender Committee to be prepared
12. Notification of Award and Appeal
Window Period
i. Notification to winner and losers
simultaneously
ii. Bidders has a right to seek
administrative review on PE’s
decisions
iii. Bidders right to seek judicial Review
THE PUBLIC PROCUREMENT
PROCESS
13.Contract Management
 Execution of contract
 Inspection and quality assurance-by
Inspection & Acceptance committee
 Handling, claims and disputes
 Administering payment provision.
Overdue payments to be paid with
interest
 Variations to Contracts allowed on
price and quantity as per Regulations
 Contract Termination - To be approved
by the tender committee.
THE PUBLIC PROCUREMENT
PROCESS
14. Disposal of surplus, obsolete
or/and unserviceable stores by
use of the following methods
 Transfer to another entity
 sale by public tender
 sale by public auction
 destruction, dumping or burying
 trade-in
 Restriction on disposal to employees to
be set out in the regulations.
CONCLUSION
 PPDA,2005 outlaws inappropriate influence in
the procurement process
 PPOA is mandated with carrying out
procurement assessments, audits and reviews
and issue directions
 PPDA,2005 makes it mandatory for Procuring
Entities to report to PPOA on prescribed
activities
 The Director General of PPOA with the approval
of PPOAB may debar a person from participating
in procurement proceedings
 Compliance with PPDA,2005 and PPDR,2006
results in economy, efficiency, fairness,
competition, transparency, public confidence
and promotion of local industry.