NATIONAL AIDS COMMISSION
MALAWI
PROCUREMENT MANUAL
NOVEMBER 2007
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Chapter 1
1
APPLICATION OF PROCEDURES
1.1 Introduction
The National AIDS Commission (NAC) is coordinating the implementation of the
National HIV/AIDS Strategic Framework (NSF). The NAC Procurement Manual outlines
the procurement policies and procedures to be used by NAC and its Grantees for
procuring inputs (Goods, Works and Consultancy Services) required in activities for the
National Response to the HIV/AIDS epidemic.
NAC channels a significant proportion of funding for HIV/AIDS programmes through a
Grants Facility to Implementing Agencies or Grant Recipient Organisations (GROs) such
as Government Ministries, Local Government & other Public Sector Bodies, Umbrella
Organisations, NGOs, Research Groups, PLWA Associations etc. Grants to these GROs
are processed and managed by the NAC Grants Management Unit staffed by a Head of
Grants and Grants Officers.
NAC has established a Procurement Unit which will purchase the goods works and
consultancy services required to implement its operations. The NAC Procurement Unit
will also procure inputs which are budgeted to cost above USD30,000 equivalent for
GRO projects and a number of common goods required by most GROs.
GROs are responsible for the procurement of items or packages of items (other than
common goods) budgeted to cost below USD30,000 equivalent for their projects. GROs
are required to follow the procedures set out in the NAC Grant Facility Procurement
Guidelines which are included in this manual as Annex A. NAC will monitor how the
GROs carry out the procedures rather than doing the procurement itself. Therefore the
issue of procurement capacity is crucial at the time of approving grants to GROs.
This manual can be amended in consultation with NAC cooperating partners as and when
there is need to improve the procurement procedures in order to facilitate the
accomplishment of NAC’s objectives and programmes.
1.2 Scope of Application
The procedures outlined in this manual apply to all contracts for Goods, Works and
Services financed in whole or in part by NAC and its Grantees through funds it receives
from the Government of Malawi, donors and any funds it may generate through fund
raising or income generating activities.
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1.3 Mis-Procurement
Misprocurement occurs when the procurement of goods, works and services is not done
in accordance with the procurement procedures and regulations prescribed in this manual.
NAC is entitled to cancel any contracts mis-procured and claim a refund for any NAC
funds already paid towards such contracts. The donors also reserve the right to cancel a
portion of the grant funds allocated for the goods, works and services that have been misprocured.
1.4
Fraud and Corruption
NAC’s procurement policy requires that NAC staff, Grant Recipients as well as Bidders,
Suppliers, and Contractors under NAC-financed contracts, observe the highest standard
of ethics during the procurement and execution of such contracts.
(a) In pursuance of this policy the terms corrupt practice, fraudulent practice, collusive
practices and coercive practices are defined below:
(i) "corrupt practice" means the offering, giving, receiving, or soliciting, directly or
indirectly, of any thing of value to influence the action of a public official in the
procurement process or in contract execution; and
(ii) "fraudulent practice" means a misrepresentation or omission of facts in order to
influence a procurement process or the execution of a contract; to the detriment of the
NAC.
(iii) "collusive practices" "among two or more parties means a scheme or arrangement
between two or more among bidders, with or without the knowledge of the NAC, (prior
to or after bid submission) designed to establish bid prices at artificial, non-competitive
levels and or any other scheme to deprive NAC of the benefits of free and open
competition;
(iv) "coercive practices" means harming or threatening to harm, directly or indirectly,
persons; or their property or their reputation to influence their participation in a
procurement process, or affect the execution of a contract.
(b) NAC will reject a proposal for award if it determines that the bidder recommended for
award has, directly or through an agent, engaged in corrupt, fraudulent, collusive or
coercive practices for the contract in question;
(c) NAC will cancel the portion of the grant allocated to a contract for goods or works if
it at any time determines that corrupt, fraudulent, collusive or coercive practices were
engaged by a beneficiary of the grant during the procurement or the execution of that
contract, without the Grant Recipient having taken timely and appropriate action
satisfactory to NAC to remedy the situation;
(d) NAC will sanction a firm, including declaring a firm ineligible, either indefinitely or
for a stated period of time, to be awarded a NAC-financed contract if it at any time
determines that the firm has, directly or through an agent, engaged in corrupt, fraudulent,
collusive or coercive practices.
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Chapter 2
2
ORGANIZATION OF THE PROCUREMENT FUNCTIONS
2.1 Introduction
The organisational arrangements for procurement for the NAC programme takes into
consideration the beneficiaries of its HIV/AIDS programmes, the different players and
their capacities, the urgency and importance of its activities and the sources of funding of
its programmes. The structures for procurement in this manual aim to ensure smooth
implementation of the programmes and responsibilities are clearly defined.
2.2 Procurement Responsibilities
The NAC procurement organisational structure is shown on the next page. The
procurement responsibilities for the various positions and levels are detailed below.
It is important to note that NAC has no primary responsibility to procure contracts valued
below USD30,000 on behalf of its Grant Recipients – except for common items as noted
below. All GROs must have adequate capacity to do their own procurement of these
minor value contracts using Direct Purchase and Local Shopping procedures and it is
NAC’s responsibility to ensure that each GRO’s procurement capabilities are established
as part of the grant approval process. However NAC through its Grant Management Unit
(GMU) will always be available to help GROs with interpretation of the NAC’s
procurement policies and procedures as outlined by this manual and its Annex A. The
NAC GMU will provide procurement training at the start of the GROs’ project and may
organize training clinics for GROs from time to time.
NAC will be responsible for the procurement and distribution of certain common items
required by most GRO projects including Motor Vehicles, IT equipment, Bicycles, Office
Equipment and Office Furniture.
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NAC PROCUREMENT ORGANISATIONAL STRUCTURE
NAC Board of Commissioners
Executive Director
Internal Procurement
Committee (Heads of
Departments)
Director of Finance and
Administration
Head of Procurement
Procurement Officers
Procurement Assistants
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2.3 NAC Board of Commissioners
The NAC Board of Commissioners are responsible for approval of NAC's long term
Strategic Plan and the Annual Work Plan, Budget and Procurement Plan. Furthermore
they are responsible for approving the procurement policies and guidelines of NAC.
Through the NAC Executive Committee, the NAC Board of Commissioners has a
responsibility to receive, consider and resolve any appeals brought against NAC Internal
Procurement Committee’s procurement decisions.
2.4 NAC Secretariat, Executive Director
The Executive Director is responsible to the NAC Board for all planning and
management of procurement within NAC. He/she ensures that adequate budgetary and
administrative support is available for all NAC's procurement. He/she ensures that
procurement policies and guidelines are being adhered to by all those involved with
NAC's procurement of goods, works and consultancy services namely NAC staff, GROs,
other agencies to whom some procurement responsibilities have been delegated,
suppliers, contractors and consultants. He/she has responsibility to monitor all
procurement persons' compliance to the procurement manual and ensure appropriate
sanctions are applied when procedures are flouted.
2.5 NAC Secretariat, Director of Finance and Administration (DoFA)
The Director of Finance and Administration (DoFA) is responsible to the NAC Executive
Director for the procurement of all goods, works and consultancy services purchased
using NAC funds.
The DoFA has responsibility for implementing NAC's procurement policies and ensuring
that all procurement is done in accordance with procedures and guidelines in this manual.
The DoFA is the Chairperson of the NAC Internal Procurement Committee and ensures
that all business deliberated upon by the Committee is recorded and that all records
(notices, agendas, minutes etc) are properly maintained.
The DoFA oversees the implementation of procurement decisions made by the NAC
Internal Procurement Committee.
The DoFA approves procurement contracts to be signed by NAC and is responsible for
the satisfactory management of all contracts for supplies, services and works financed by
NAC resources.
He/she submits monthly reports on all procurement matters and activities for circulation
within NAC for management.
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The DoFA directs NAC procurement activities, assesses the procurement workload and
performance and recommends any improvements in procurement policies and procedures
to NAC Internal Procurement Committee.
2.6 NAC Head of Procurement (HoP)
The Head of Procurement (HoP) is responsible to the Director of Finance and
Administration for the procurement of all goods, works and consultancy services required
by NAC and its grantees for their operations.
The HoP is the Secretary of the NAC Internal Procurement Committee and when the
Chairperson is away he/she will ensure that all business deliberated upon by the
Committee is recorded correctly. He/she shall be responsible for ensuring that all records
(notices, agendas, minutes etc) are properly maintained at all times.
The HoP is responsible for the preparation and periodic updating of the annual NAC
Procurement Plan. He/she assists the Director of Finance and Administration in
compiling the NAC Annual Work Plan and Budget on which the Procurement Plan is
based.
The HoP supervises procurement staff and is responsible for the day-to-day
administration of the Procurement Unit and its activities ensuring compliance with the
procedures and procurement thresholds set out in the NAC Procurement Manual and the
preservation of an audit trail.
The HoP reviews Bid Evaluation Reports and recommendations for Contract Award
prepared by NAC Procurement Officers in respect of NAC contracts and submits these to
the Internal Procurement Committee for approval.
The HoP is responsible for estimating the types and quantities of common goods required
yearly by the GRO sector of the NAC programme. He/she plans and manages the
centralized procurement of these goods using the correct procurement method and
ensures the distribution of goods to GRO projects with minimum lead times.
The HoP provides guidance to the NAC User Departments and Grantees in procurement
procedures and assists them with the appointment and operation of Tender Evaluation
Panels and Purchase Committees. He/she makes recommendations concerning
procurement staff and capacity.
The HoP will review and approve Procurement Files submitted to him/her by GROs via
the Grants Officers and Procurement Officers authorising the award of contracts by
GROs and the disbursement of funds to cover the cost of these contracts.
The HoP maintains procurement database and procurement register and prepares a
monthly report on procurement matters and activities undertaken by NAC and its
Grantees for submission to the Director of Finance and Administration.
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He/She recommends any improvements of NAC procurement policies and procedures to
the Director of Finance and Administration.
2.7 NAC Procurement Officers (POs)
The Procurement Officers (POs) are responsible to the Head of Procurement for the
procurement of all goods, works and consultancy services required by NAC and its
Grantees for their operations.
The POs work with the NAC User Departments to prepare procurement packages,
Technical Specifications and Terms of Reference for the procurement of goods and
services and select the correct procurement methods to be used.
The POs are responsible for preparing and publishing General & Specific Procurement
Notices for NAC tenders and for the preparation and distribution of Bidding Documents.
They arrange and attend Bid Opening and Evaluation meetings for all procurement
packages to advise on proceedings and ensure that minutes of the meetings are taken.
The POs ensure the correct and timely preparation of Bid Evaluation Reports for
submission to the Head of Procurement and the Internal Procurement Committee. They
draft Contracts for the approval of the Head of Procurement and signature by NAC
Management. They manage the routine logistics of NAC supply and service contracts.
The POs are responsible for conducting the procurement of inputs required by GROs
budgeted at over USD30,000 and common items required by the GRO sector.
The POs are responsible for supervising all procurement of inputs undertaken by the
GROs below MK30,000. They provide technical assistance to the GROs in the
implementation of the required Local Shopping procedures through the GMU Grants
Officers.
The POs review Procurement Files submitted to them by GROs via the Grants Officers.
They check that the correct Local Shopping procedures have been conducted and pass
satisfactory files to the Head of Procurement for approval and authorisation for the GROs
to sign contracts and for the disbursement of funds to cover the cost of contracts.
2.8 NAC Procurement Assistants
The Procurement Assistants will work with the NAC Procurement Officers and will assist
with the preparation of procurement packages, Procurement Plans, Bidding Documents,
Bid Evaluation Reports and Contracts Documents and the management of contracts.
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2.9 NAC Procurement Committee (IPC)
A NAC Procurement Committee known as the Internal Procurement Committee (IPC)
has been established comprising the Director of Finance and Administration, NAC
Procurement Officers and Heads of Departments.
The Director of Finance and Administration is the Chairperson of the Committee and the
Head of Procurement is the Secretary.
The quorum of the NAC IPC is six members and all decisions are made by a simple
majority of the members present at the meeting.
The IPC receives, considers and decides on NAC's procurement needs, procurement
plans and bidding documents (Invitations to Bid, Expressions of Interest, RFP documents
and good/works Bidding Documents). The committee ensures that the documents
reviewed and approved are consistent with the provisions of this manual.
The IPC receives and processes Bid Evaluations, Short-listing Evaluations and
Consultant Proposal Evaluations for all contracts above the threshold given in Chapter 6.
The Internal Procurement Committee provides guidance and rulings on issues arising
from procurement by GROs and referred to it by the Head of Procurement and the Grants
Management Unit – such as possible misprocurement and requests for waiver from the
procurement rules in emergencies.
2.10
NAC Grants Management Unit (GMU)
The GMU is staffed by the Head of Unit and Grants Officers.
The GMU’s responsibilities include assessing the procurement capacity of applicants for
grants from the NAC Grants Facility. As part of their appraisal of grant applicants NAC
Grants Officers must ensure that Grants applicants have staff with sufficient skills and
commitment to satisfactorily perform the procedures set out in the NAC Grants Facility
Procurement Guidelines (Annex A).
Following award of the grant the GMU Grants Officers must provide training to the
GROs in the NAC Local Shopping procedures and assist with the preparation of their
project Procurement Plans. The Grants Officers monitor GROs performance in carrying
out the planned procurement and ensure that it is completed as quickly and efficiently as
possible – preferably within three months of signature of the Grant Agreement.
The Grants Officers must ensure that GROs complete a Procurement File documenting
the procedures for each procurement conducted and must check this file before
submitting it to the NAC Procurement Officers and Head of Procurement for approval to
disburse funds.
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Chapter 3
3
GENERAL POLICIES AND GUIDANCE
3.1
Introduction
NAC procurement policies in this manual are based on International Competitive Bidding
practices adopted by most donors and governments. NAC procurement policies are to
procure goods, works and services with efficiency, economy and transparency and
without regard to political or other non-economic influences.
The objective of the policies is for NAC to get the best value for money and to ensure
that inputs for its own operations and for the implementation of its grantees’ projects are
procured as rapidly as possible.
All ICB procurement shall be undertaken in accordance with procedures in this manual
which are based on the World Bank ICB procurement guidelines.
3.2
Responsibility for Procurement
NAC is responsible for planning and execution of procurement activities in accordance
with this procurement manual using funds, which it generates, and funds from donors and
GOM. NAC's Board is responsible for the development of procurement policies and
approving NAC's Budget, work plans and procurement plans. NAC's staff to whom
procurement responsibility is delegated shall be responsible and accountable for actions
taken in accordance with the provision of this manual.
Procurement of health goods including medicines and drugs is considered specialised and
will be undertaken by Central Medical Stores or by a specialised health goods
procurement agent in accordance with the NAC grants approved for the purpose. In
order to ensure that the medicines/drugs procurement is competitive and non-restrictive,
the registration of drugs shall not be a condition to bid but only as a condition for award
of contract.
NAC is responsible for the procurement and distribution of inputs for GROs’ projects
budgeted above USD30,000 and for the procurement of common items required by most
GRO projects including:
•
•
•
Motor Vehicles (including motorcycles);
IT Equipment; and,
Bicycles.
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3.3
Schedule of Approval Authorities and Limits
The Executive Director has overall responsibility for approving expenditure on individual
contracts up to the limit prescribed by the NAC Board. The levels of approval
responsibility have been provided in Chapter 6.
Responsibility for the approval of procurement decisions made by GRO Purchase
Committees rests with the signatory to the Grant Agreement.
Above certain thresholds as defined in Chapter 6, prior review by the donors would be
required. The donors have agreed that prior review of procurement will be done by the
World Bank on their behalf in accordance with the thresholds in Chapter 6.
3.4
Procurement Monitoring and Evaluation
NAC will establish a system to continuously monitor all NAC procurement activities.
The monitoring shall include updated Procurement Plans, procurement contracts
registers, procurement delays and gains variance analysis, ex-post procurement review
reports and monthly procurement report. The sample copies of the procurement contracts
register, procurement plans and procurement delays/gains variance analysis are
prescribed in Annex B.
3.5
(a)
(b)
(c)
(d)
(e)
Procurement Planning
Planning for procurement should start with the considerations relating to economic
and efficient implementation of the NAC's HIV/AIDS programs. Planning for
procurement eliminates the number of emergency procurements and results in
lower purchase costs and improved service delivery.
All procurement should be initiated sufficiently early so that delivery schedules are
acceptable and no premium is paid for urgent deliveries. Planning for
procurement results in obtaining materials on hand when needed.
The annual procurement plan should show details of contract packages, the
estimated cost for each contract, unit responsible for procurement, the
procurement method, procurement steps, processing times and completion time.
The procurement plan should be based on an approved NAC budget. The planned
service output should be broken down into consumables needed to support the
delivery of the planned services and activities.
GROs should prepare draft Procurement Plans based on their project Work Plans
and Budgets with the help of the NAC Grants Officers and submit these with their
proposals. The project Procurement Plan will be finalised and approved by NAC
prior to the first disbursement of funds for the project. At this time the GRO will
submit a requisition to NAC in respect of the common items indicated in Clause
3.2 above.
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3.6
NAC Internal Procurement Committee
NAC Internal Procurement Committee shall be established in accordance with provisions
of this manual. The Internal Procurement Committee may co-opt member(s) as and when
the committee requires technical expertise on a particular procurement. The functions of
the committee are as follows:
•
•
•
•
•
•
Review and approve procurement plans in order to ensure that they support the
objectives and operations of NAC.
Review the schedules of procurement and specifications and also ensure that the
procurement procedures to be followed conform to the provisions of this manual
Ensure that the necessary prior review and threshold requirements are adhered to.
Facilitate contract administration and ensure compliance with all reporting
requirements
Ensure that stores and equipment are disposed of in compliance with this manual.
Make decisions on awards of contracts within its threshold based on
recommendations of award made by the evaluation panels.
Following the award of its grant a GROs must establish a Purchase Committee to plan
and carry out the procurement of inputs for the project in accordance with the NAC Grant
Facility Procurement Guidelines (Annex A)
3.7
Evaluations
For the evaluation of NAC tenders a Bid Evaluation Committee must be set up with a
minimum of three members by the NAC user department. The preparation of evaluation
reports of bids or consultant proposals is the responsibility of the Procurement Officer
(NAC). When the procurement evaluation reports have been prepared they are then
presented to the NAC Internal Procurement Committee for a decision on contract award.
The GRO Purchasing Committee will evaluate price quotations received in response to
the Local Shopping Requests for Quotations using the Price Quotation Comparison Form
in Annex A
3.8
Contract Modifications
NAC Internal Procurement Committee will need to approve any price increases of 10%
and above resulting from proposed extension of the stipulated time for the performance
of a contract, any modification or waiver of the conditions of a contract, including issuing
of any variation order. A request from the user department or GRO with details of such
modifications will be presented by the Director of Finance and Administration before the
Internal Procurement Committee with full explanation and reasons for such
modifications. Any proposed modification of a contract, which will make the revised
contract price exceed the procurement method threshold, should be cleared by the
appropriate procurement authority for the threshold concerned.
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3.9
Emergency Procurement
Emergency procurement shall be limited to responses to emergency situations such as
national disasters. Emergency procurement shall be undertaken by the Procurement
Officer or he/she shall oversee such procurement. The Procurement Officer shall procure
using the following procedures, as applicable:
Shopping method of procurement may be used.
Where similar goods have been procured before using a competitive method, the goods
may be ordered from the same supplier at the same rates and provided the quantities to be
ordered are small (not to exceed 15% of value of original contract).
Where a contractor has previously been awarded a works contract through a competitive
process, he/she may be awarded a contract under emergency procurement, as long as the
billing rates from the previous contract are maintained and the values do not exceed 15%
of the original contract.
Procurement through placing direct orders (single sourcing) may be used, although this
method is not encouraged. The use of Direct Contracting would require prior approval of
the NAC Internal Procurement Committee.
Any GROs finding it necessary to undertake emergency procurement must apply to NAC
Head of Procurement (through the GMU) for authorization to use a less competitive
procurement method. If necessary the Head of Procurement will refer the matter to the
NAC Internal Procurement Committee for a ruling.
3.10
Donations
Any Donations received by NAC will be considered by the Board, based on
recommendations of the Executive Director. The Board shall make a decision after
considering the donor’s conditions for such donations.
3.11
Standardisation
NAC procurement policies and procedures encourage open competitive bidding where
all eligible suppliers who have goods that meet the specifications are free to participate.
Standardisation will only be applicable by exception. NAC Internal Procurement
Committee will decide the exceptional cases based on the justification made by the User
Department or the GRO for standardisation to have influence in procurement of specific
goods.
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3.12
Suppliers/Contractors Database
NAC shall maintain a database of competent Suppliers/Contractors with details of their
capabilities and capacity. The database should be a result of information acquired by the
following means:
Advertisement notices including specific procurement notices in print or electronic
media(newspapers, publications, magazines, technical journals and internet)
Information from Trade Directories and reference manuals provided by specific
industries
Notices sent to known trading organizations, Chambers of Commerce, Embassies/Trade
attaches and other similar organizations.
Attendance and collecting manufacturers brochures at local Trade fairs and Exhibitions.
Contacts with procurement specialists and other technical specialists.
Once contact and capability/qualification details of a supplier/contractor are available and
are reviewed by the procurement section they are included in the supplier/contractor
database. The procurement section shall ensure that the suppliers/contractors database
shall be regularly maintained and updated to ensure its accuracy and reliability.
3.13
Materials Specifications and Specifications’ Database
The specification of an item should be the most suited to the purpose for which the item
is to be used. The specifications should include design, size, quality and performance and
should avoid use of brand names in material specifications except where unavoidable, in
which case the phrase “or equivalent” should be used.
Performance specifications give a clear idea of the function, application, and performance
required of the supplied goods or services. From such specifications, Suppliers can often
provide new improved or cheaper solutions.
NAC shall keep a database of specifications of most commonly procured items and such
specifications shall be precise, clear and complete and not restrictive. In the case of
specification of standards for equipment, materials, and workmanship, recognized
international standards shall be used where possible.
Specifications should be drawn up by the user departments in consultation with the
Procurement Section. Where appropriate, assistance must be sought from technical
experts to ensure the preparation of the right specifications. The procurement section
shall ensure that the specifications database shall be regularly maintained and updated to
ensure its accuracy and reliability.
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3.14
Supplier/Contractor/Consultant Performance Appraisal
On completion of a contract, the performance of the Supplier/contractor/consultant shall
be assessed in terms of the conformity with contract provisions and requirements. The
appraisal will also assess in detail Supplier/contractor compliance with given
specifications, delivery or completion time and quality. The assessment shall be carried
out by the Procurement Section in consultation with the user department. A
supplier/contractor/consultant who performs poorly may have his/her name deleted from
the supplier/contractor/consultant database.
3.15
Capacity Building for Procurement
NAC will build adequate procurement capacity within itself and also within its
implementing agencies, umbrella organization and grantees to ensure the procurement
procedures are appropriately applied at all levels of implementation of all NAC supported
programmes. Building procurement capacity at NAC means having adequate and
competent procurement staff, procurement procedures training for procurement staff and
other staff in Internal Procurement Committees. Procurement procedures training should
also be part of project launches and other workshops targeting implementing
organizations to ensure that recipients of NAC funds are well versed with procurement
procedures before they receive the funds.
NAC will ensure that the Grants Officers are sufficiently trained in the basic procurement
skills to enable them to guide the GROs in carrying out Local Shopping procedures with
minimum assistance from NAC Procurement Officers. With the help of the Grants
Officers, GROs should be able to conduct Local Shopping and submit a satisfactory
Procurement File to NAC for approval by the Head of Procurement and disbursement of
funds to cover contract cost.
3.16
Complaints, Appeals, and Sanctions
In the event that a bidder(s) see that NAC or GRO staff are not following prescribed
procurement procedures, they shall be entitled to submit their complaints or appeals to
NAC Board detailing how procedures have been flouted. The procedures for making such
appeals are detailed in Chapter 9.
3.17
Duty and Vat Exemption for NAC funded purchases by Grant Recipients
Items purchased for NAC funded projects will be exempt from Customs Duty and VAT
provided that these items are either:
•
•
•
Imported directly; or
Purchased from bonded stores; or
Purchased direct from a local manufacturer.
This is in accordance with Section 34 (a) and (b) of the Vienna Convention (1961) on
treatment of Diplomatic Immunities and Privileges to which Malawi is party.
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Therefore, if a NAC Grant Recipient has placed a contract for the supply of goods which
will be imported by the supplier (or supplied from stock in its bonded store) then no duty
or surtax will be payable. The supplier will prepare the necessary customs clearance and
duty exemption forms and NAC will sign and stamp these, certifying that the goods have
been purchased using NAC funds. The Customs Authorities will then process duty and
tax free clearance of the goods.
However, if the items are supplied by the contractor ex-open stock (i.e. from stock on
which duty and VAT have already been paid) then the Grant Recipient may not ask the
contractor to deduct the duty and VAT from his invoice and will not be able to claim
refund of the duty and VAT included in the cost price from MRA. Examples of this are
the purchase off-the-shelf of a single computer, six bicycles or small quantities of
stationery.
In these cases the GRO should record the amount of VAT paid in its accounts and submit
a claim to NAC who will reimburse the amount to the GRO in due course.
The provision concerning local manufacture will apply for example to Furniture, Cooking
Oils, Blankets etc.
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Chapter 4
4
PROCUREMENT METHODS AND PROCEDURES FOR GOODS AND
WORKS
4.1
Introduction
(a)
This section describes the different procurement methods to be used for
procurement of goods and works at NAC. The principles of these methods
comply with the World Bank’s “Guidelines for Procurement under IBRD Loans
and IDA Credits” , which are based on internationally acceptable standards for
public procurement.
(b)
Prequalification is a process where the employer selects firms or combination of
firms which are suitably experienced in the type of work or construction
technology involved, that are financially and managerially sound, and that can
provide all the equipment required in a timely manner. Prequalification of
bidders shall be undertaken for any procurement involving large or complex
works, or in any other circumstances in which the high costs of preparing detailed
bids could discourage competition, such as custom-designed equipment, industrial
plant, specialized services, and contracts to be let under turnkey, design and build,
or management contracting.
(c)
Prequalification can also be conducted for the supply of specialised goods such as
essential drugs, vaccines, sera etc. as determined by the Ministry of Health. This
ensures that invitations to bid are extended only to those who have adequate
capabilities and resources. Prequalification shall be based entirely upon the
capability and resources of prospective bidders to perform the particular contract
satisfactorily, taking into account their
i
experience and past performance on similar contracts,
ii
capabilities with respect to personnel, equipment, and construction or
manufacturing facilities, and
iii
financial position.
(d)
Bidders from World Bank member countries are eligible to participate in all NAC
procurement. Furthermore bidders eligible for bidding in projects funded by the
NAC's implementing partners (donors) would also be eligible to participate in
NAC procurement.
Suppliers and Contractors are free to bid independently or as joint venture but
mandatory joint ventures would not be allowed.
(e)
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4.2
Procedure for Procurement for GRO Projects
Following approval of its Procurement Plan the GRO should proceed with the
procurement of items and packages of items shown on the Procurement Plan as
follows.
1. Common Goods
For the items shown below the GRO will submit a requisition to NAC and the
item will be supplied to the GRO by the supplier currently contracted by NAC.
NAC is responsible for the procurement of the following common items which
are required for most GRO projects:
•
•
•
Motor Vehicles (including motorcycles);
IT Equipment; and,
Bicycles.
NAC will prepare specifications for the above items which will satisfy the
requirements of GRO projects based on experience gained since the start of the
NAC programme and by comparing the specifications used by GROs to date.
NAC will estimate the quantities of an item necessary to meet GROs’ project
requirements for a specified period (6 or 12 months) based on purchases of the
item during recent years and will invite bidders to provide unit price quotations
based on these specifications and quantities.
The evaluation of bids will be done at NAC offices and a contract will be awarded
to the successful bidder for the supply of the items concerned to all NAC funded
GRO projects for the specified contract period.
The successful bidder will undertake to deliver the goods ex-stock or within a
short lead time and will be obliged to provide a Performance Bond guaranteeing
this delivery schedule.
The appropriate bidding procedure will be followed based on the estimated value
of the goods to be purchased during the period of the contract and standard ICB &
NCB documents will be used – see 4.3 below.
The supply contract will be signed between NAC and the successful bidder and
the goods will remain the property of NAC and be registered in NAC’s name. The
goods will be allocated to the GRO for the duration of its project and will be
repossessed by NAC at the end of the Grant Agreement.
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NAC Procurement Manual
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2. GRO Project Inputs budgeted > USD30,000
NAC will also procure other items or packages of items required for a GRO’s
project which are budgeted to cost more than USD30,000.
In this case NAC Grants Officers will work with the GRO to produce technical
specifications for the goods and will pass these to the NAC Head of Procurement
who will arrange for procurement to be conducted by the NAC Procurement Unit
using the appropriate National or International Bidding procedure.
The supply contract will be signed between NAC and the successful bidder and
the goods will remain the property of NAC and be registered in NAC’s name. The
goods will be allocated to the GRO for the duration of its project and will be
repossessed by NAC at the end of the Grant Agreement.
3. GRO Project Inputs budgeted < USD30,000
GROs will be responsible for the procurement of items or packages of inputs for
their project budgeted at less than USD30,000 using the Local Shopping and
Direct Purchase methods described in the NAC Grant Facility Procurement
Guidelines (Annex A).
NAC Grants Officers will work closely with GROs to produce satisfactory
specifications and to ensure that the Local Shopping procedure is correctly
conducted.
GROs may only solicit quotations from suppliers appearing on a list of
prequalified firms which will be provided by NAC.
GROs must produce a Procurement File detailing each Local Shopping and Direct
Purchase procedure undertaken and submit this via the Grants Officer to the Head
of Procurement for his approval and the disbursement of funds to cover the cost of
the contract.
4.3
Procurement Methods for Goods and Civil Works
General
(a)
The under-listed procurement methods shall be followed.
i
International Competitive Bidding
ii
National Competitive Bidding;
iii Limited International Bidding;
iv Local or international shopping (for goods);
v
Price quotations or Selective tendering (for Works);
vi Direct Contracting.
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