PRESENTATION ON THE PUBLIC
PROCUREMENT TO SPENDING
OFFICERS AT KNUST.
BY EDWARD NKETIA-ASANTE
DIRECTOR OF PROCUREMENT - KNUST
MEANING OF PUBLIC PROCUREMENT


Public Procurement is made up of defined Rules,
Methods, Processes and Procedures by which
Government Institutions are mandated by law to use
to acquire goods, services and works using public
funds.
The Law governing procurement in Ghana is called
the Public Procurement Law, 2003, ACT 663.
OBJECTIVES OF ACT 663



To harmonize the processes of Public Procurement in
the public service.
To secure a judicious, economic and efficient use of
state resources. i.e. Procuring;
 The Right Quantity;
 At the Right Price;
 From Right Supplier; and to be
 Delivered to the Right Place and at the Right Time.
To ensure that Public Procurement is Fair,
Transparent and Non-Discriminatory.
Strategic Importance of Public
Procurment




Ensures timely delivery of goods and services and
completion of projects. – By Planning.
Ensures sound financial management by achieving
value for money in the organizations’ expenditure
– By Competitive Participation.
Reduces corruption - By Ensuring Transparency
and Fairness in the Procurement Processes.
Encourages private sector growth and investment –
By Opening Tender Publicly.
THE SCOPE OF APPLICATION OF ACT 663
The Act applies to:
 the procurement of Goods, Works and Services
financed in whole or in part from public funds.
 Disposal of public stores and equipment.
 Procurement financed by funds or loans taken by
Government of Ghana, including foreign aids and
grants.
EXCEPTIONS



Where the Minister of Finance decides that it is in
the national interest to use a different procedure.
Where a loan or funding agreement specifies
alternative procedures.
The Act does not apply to stores management or
distribution.
WHO DOES THE ACT APPLY TO?






Central Management Agencies (CMAs);
Ministries, Departments and Agencies (MDAs);
Subvented Agencies;
Governance Institutions;
State Owned Enterprises;
Public Universities, Schools, Colleges and Hospitals;
WHO DOES THE ACT APPLY TO?


Bank of Ghana and Financial Institutions owned by
Government;
Institutions established by Government for the
general welfare of the public; e.g. PURC, NIC etc.
PROCUREMENT STRUCTURES


End-User Department:- Existing Department which
initiates requirement and provides Technical Inputs
or Specification.
Procurement Unit: Permanent
Unit staffed by Procurement Professionals;
 Manages and Facilitates all Procurement Activities;
 The Head of the Unit – Procurement Officer or Director,
acts as Secretary to the Committees. (ETC, TEP etc)
PROCUREMENT STRUCTURES Contd.



Procurement Entity:- Institutions responsible for procurement
subject to Act 663 and any conditions and laid down
procurement regulations.
Head of Entity (e.g. Vice Chancellor) is responsible and
accountable for all procurement actions and inactions taken.
The Vice Chancellor in a way of strengthening the
Collegiate System in the University has delegated part of
his authority to the following structures;




Provosts;
Deans and Directors;
Heads of Department; and
Managers.
PROCUREMENT STRUCTURES cont.


Procurement decisions shall be taken in a corporate
manner.
It is the responsibility of the Head of Entity to
ensure that provisions of the Public Procurement Act,
2003 (Act 633) are complied with in the Entity.
PROCUREMENT STRUCTURES cont.

THE HEAD OF ENTITY:
The Head of the Entity is more or less the Principal
Account Holder (PAH) as stated under Section 74 in
the Financial Administration Act, 2003 (Act 654).
PROCUREMENT STRUCTURES cont.
KEY FUNCTIONS OF PAH




Ensures that the provisions of the Act are complied
with.
Is held accountable should a contract be awarded
in a manner that is inconsistent with the Act.
Makes decisions in a corporate manner.
Implementation of all procurement activities.
PROCUREMENT STRUCTURES cont.




Tender Evaluation Panel (TEP)
The Procuring Entity shall establish a TEP with the
required expertise to evaluate tenders and assist
the Review Committees in their work.
TEP shall work with the predetermined and
published evaluation criteria.
TEP is made up of Ad-Hoc specialists who evaluate,
review and make appropriate recommendations for
contract awards, using specified and previously
announced criteria for evaluation.
PROCUREMENT STRUCTURES cont.

TEP Evaluates the Quotations / Offers received
from Suppliers, Contractors and Consultants;
 Compare
the Published Requirements with the Offers;
 No new requirements shall be introduced at this stage;
 Recommendation for Contract Award;

The specialists need not be in-house or in the
institution.
PROCUREMENT STRUCTURES cont.

Entity Tender Committee:Each PE shall establish ETC.
 ETC ensures that procurement activities carried out conforms
with the procedure prescribed in the Act.
 Exercise sound judgment in making procurement decisions.
 Refer to appropriate TRB for approval.
 ETC Approves Procurement Plans and Invitation Documents.
 Awards Contracts within its Authority.


PROCUREMENT STRUCTURES cont.
 Ensures
referral to the appropriate Tender Review
Board.
 ETC is a Standing Committee of Senior Officials.
 ETC Reviews yearly & quarterly procurement plan.
 ETC Ensures correlation between policies and
procurement plans of the entity
 ETC Applies proper procedures
 ETC Seeks one stop only concurrent approval

PROCUREMENT STRUCTURES cont.
SECTION 20: Tender Review Boards (TRBs)



Tender Review Boards are established at 4 levels and
their levels of operations are governed by thresholds.
TRBs review and approve evaluation reports.
They consist of the following:
Central Tender Review Board (CTRB)
 Ministerial Tender Review Board (MTRB)
 District Tender Review Board (DTRB)
 Entity Tender Committee (ETC)
 Head of Entity (HOE)

PROCUREMENT STRUCTURES cont.
Non Decentralized EntitiesThresholds for Review and Approval
Authority. (GH¢)
Authority
Goods
Works
Technical
Services
Consulting
Services
HOE
Up to 5,000
Up to 10,000
Up to 5,000
Up to 5,000
ETC
>5,000100,000
>10,000200,000
>5,000100,000
>5,00050,000
MRTRB
>100,000800,000
>200,0001.5m
>100,000800,000
>50,000350,000
CTRB
>800,,000
>1.5m
>800,000
>350,000
PROCUREMENT STRUCTURES cont.

Functions of TRBs:
 Review
the activities at each step of the Procurement
Cycle leading to the selection of the lowest evaluated
bid or best offer by PE in order to ensure compliance
with the provisions of the Act and its operating
instructions and guidelines;
 Give concurrent approval;
 Furnish the PPA with reports in prescribed format; and
PROCUREMENT STRUCTURES cont.
 TRBs
may engage the services of consultants and
advisers, or co-opt persons with specialized
expertise.

Public Procurement Authority:
 Makes
proposals on the formulation of policies on
procurement.
 Ensures policy implementation and human resource
development for Public Procurement.
 Develops draft rules, instructions and other regulatory
documentation on Public Procurement and formats for
Public Procurement documentation.
PROCUREMENT STRUCTURES cont.
 Monitors
and Audits PP and ensures compliance with
statutory requirements;
 Prosecutes breaches of the Act;
 Have the right to obtain information concerning PP from
contracting authorities;
 Establishes and Implementing an information System
relating to PP.
 Publishes monthly PP Bulletin which contains Procurement
Notices, Notices of Invitation to Tender and Contract
Awards Information.
PROCUREMENT STRUCTURES cont.
Assesses the operations of the PP processes and submit
proposals for improvement of the processes.
 Presents Annual Report to the Minister on PP processes.
 Facilitates the training of public officials involved in PP at
various levels.
 Advises Government on issues relating PP.
 Maintains a register of all Procurement Entities and
Members and Secretaries to tender committees of PP
Entities.
 Maintains a database of suppliers, contractors and
consultants and a record of prices to assist in the work of PE.

PROCUREMENT STRUCTURES cont.
 Investigates
and debars from procurement practice
under the Act, suppliers, contractors and consultants who
neglect their obligations under PP contract, have
provided false information about their qualifications or
offered inducement of a kind referred in Section 32 of
the Act.
 Maintains list of firms that have been debarred from
participating in PP and send the list to all PEs.
PROCUREMENT STRUCTURES cont.

Minister of Finance:
 Issues
Regulations;
 Receives Public Procurement Authority’s Annual Report
for on-ward submission to Parliament.
 Feedback;
 Recommend
for amendments of any section of the ACTS;
 Procurement expenditure in the year;
 Proposals on the formulation of policies on procurement;
 etc
PUBLIC PROCUREMENT PROCESSES

Public Procurement entails the following Processes:
 Identifying
Sources Funding;
 Needs Assessment and Planning;
 Annual Estimates and Budgeting;
 Tendering;
 Identify
Sources and Inviting Offers;
 Evaluating Offers;
 Seeking
for Concurrent Approvals;
 Awarding and Managing Contracts.
PUBLIC PROCUREMENT PROCESSES

Sources of Procurement:
 International
Sources; (Internet)
 National Sources;
 Within the Locality;
 From Existing Records and Databases;
 From Sister Institutions; and
 Advertise for Registration of Firms.
PUBLIC PROCUREMENT PROCESSES


Inviting Offers:- Use appropriate Methods and
Documentation.
Documentation:

Tender Documents (RFTs): for High Value Procurement, High
Risk Procurement and High Competitive Tender.


Letters of Invitation (LOIs): for Low Value Procurement, Low
Risk and Low Competitive Tender.


Used for Goods and Works Procurement.
Used for Goods and Works Procurement.
Request For Proposals (RFPs):

Used for Selection of Consultants only.
PUBLIC PROCUREMENT PROCESSES
Procurement Methods available for Goods, Technical
Services and Works:
 National Competitive Tendering (section 44)
 International Competitive Tendering (section 45)
 Restricted Tendering (sections 38-39)
 Single Source Procurement (sections 40-41)
 Prequalification/ Two-Stage Tendering (Sections 36-37)
 Price Quotation/Request for Quotation (RFQ) (sections
42-43)
PUBLIC PROCUREMENT PROCESSES
Procurement Methods available for Consulting
Services:
 Advertisement for Expression of Interest;
 Least Cost Selection (LCS);
 Quality Cost Based Selection (QCBS) – Default;
 Quality Based Selection (QBS);
 Fixed Budget Selection (FBS);
 Selection based on Consultants’ Qualification; and
 Selection based on Individual Consultant’s Qualification;
PUBLIC PROCUREMENT PROCESSES

Choice of Procurement Method shall be based on:
 threshold
or
 circumstances driven.


Thresholds shall be issued periodically in a Schedule
of the Act
Circumstances are defined in the Act and
Regulations
PUBLIC PROCUREMENT PROCESSES

Circumstances:
 Specialized
Product and no substitute;
 Urgency;
 Emergency
Situations;
 Limited Number of suppliers;
 Compatibility;
 Standardization;
 Research, experiment, study or development purposes;
and
 For National or Institutional Security
PUBLIC PROCUREMENT PROCESSES
 Products
available in the foreign countries only;
 Products available in the domestic country; and
 Cost of tender proceedings is disproportionate to the
cost of the product to be procured;
 Intellectual Property or Patent Right;
PUBLIC PROCUREMENT PROCESSES


Prequalification:- We identify the qualified firms
before we invite them to bid.
Usually necessary for large or complex works or in
other circumstances in which the high cost of
preparing detailed bids could discourage
competition, such as custom-designed equipment,
industrial plant, specialized services, contracts under
turnkey etc.
PUBLIC PROCUREMENT PROCESSES


International Competitive Tender:Where products to be procured can only be
obtained in foreign countries;
PUBLIC PROCUREMENT PROCESSES


National Competitive Tender:Where the objects to be procured can be obtained
in the local country:
PUBLIC PROCUREMENT PROCESSES



Price Quotation:Where the objects to be procured could be
obtained within the locality;
When Lead Time is of essences to the production
line.
PUBLIC PROCUREMENT PROCESSES


Single Source:- The Procurement Entity may engage
in Single Source procurement subject to approval
from the Public Procurement Authority (PPA).
Justifications:- Where
 Goods, works and services are obtained from a
particular supplier, contractor or consultant.
Supplier, Contractor or Consultant has exclusive
right of the Goods, Works or Services- Patent
Rights, Intellectual Property; No reasonable
alternative or substitute exist;
PUBLIC PROCUREMENT PROCESSES
 There
is an urgent need for Goods, Works or Services:
 Due
to unforeseeable circumstances and not dilatory conduct
on the part of the entity.
 Owing to catastrophic event;
 Additional
purchases due to standardization;
 Additional purchases due to compatibility with the
existing equipment;
PUBLIC PROCUREMENT PROCESSES
 Engaging
a contractor or supplier in a Research,
Experiment, Study or Development except where the
contract includes the production of goods in commercial
quantity; and
 The Procurement concerns National Security or Entity
Security.
PUBLIC PROCUREMENT PROCESSES


Restricted Tendering:The Entity may for reasons of economy and
efficiency and subject to approval from PPA
engage in procurement by means of Restricted
Tendering;
 If
goods, works and services are available only from a
limited number of suppliers or contractors; or
PUBLIC PROCUREMENT PROCESSES

If time and cost required to examine and evaluate a
large number of tenders is disproportionate to the value
of the goods, works and services to be procured.
PUBLIC PROCUREMENT PROCESSES







Procurement Methods for Consulting Services and
Thresholds:
Advertisement for EOI - Above GH¢ 70,000
Least Cost Selection Above GH¢ 70,000
Selection based on consultant qualifications:Up to GH¢ 35,000
Quality Based Selection (QBS) – No threshold
Fixed Budget Selection (FBS) – No threshold
Quality and Cost Based Selection (CQBS)- No
Threshold
PUBLIC PROCUREMENT PROCESSES


Thresholds For Procurement Methods (Goods, Works and
Technical Services)
Prequalification:
 Goods
 Works
 Tech. Services 
Above GH¢3,500,000.00 (¢35b)
Above GH¢7,000,000.00 (¢70b)
Not more than 10% of cost of
Works
International Competitive Tender:
 Goods
 Works
 Tech. Services -
Above GH¢1,500,000.00 (¢15b)
Above GH¢2,000,000.00 (¢20b)
Above GH¢200,000.00 (¢2b)
PUBLIC PROCUREMENT PROCESSES

National Competitive Tender:
 Goods
- Above GH¢20,000 - GH¢1,500,000
 Works
- Above GH¢50,000 - GH¢2,000,000
 Tech. Services - Above GH¢20,000 - GH¢200,000

Price Quotation:
 Goods
- Up to GH¢20,000.00 (¢200m)
 Works
- Up to GH¢50,000.00 (¢500m)
 Tech. Services - Up to GH¢20,000.00(¢200m)
PUBLIC PROCUREMENT PROCESSES


Restricted Tendering - Subject to approval by PPA
Single Source Procurement - Subject to approval by
PPA
Delegation of Authority – By Vice Chancellors


The threshold for Provosts, Deans and Heads of
Departments (up to GH¢500.00) was introduced by
Prof. K. A. Andam’s during his tenure as Vice
Chancellor;
The object was to reduce his workload, empower his
subordinates and also to facilitate the Procurement
of Minor and Low Value Items to enhance the
efficiency and effectiveness of academic work.
Delegation of Authority – By Vice Chancellors


The immediate past Finance Officer, Mr. K. Adu and
the Director of Procurement went to Public
Procurement Authority (PPA) to have discussions with
the then Chief Executive Officer of PPA on this
innovative idea from the VC.
PPA embraced the idea but cautioned the University
to observe the provisions of the ACT in carrying
procurements within this threshold (GHC1.0GHC500.00).
Delegation of Authority – By Vice Chancellors



The Vice Chancellor, Prof. W. O. Ellis also in a way
to further strengthen the decentralization policy in
the University reviewed the threshold.
The object was to facilitate the procurement of
minor and low value items, especially the teaching
and learning materials to enhance teaching and
learning.
The new levels are as follows:
Delegation of Authority – By Vice Chancellors
Heads of Department
- GH¢500.00
2.
Deans/Directors
- GH¢1,000.00
3.
Provosts/Heads of Administrative/
Professional Offices
- GH¢1,500.00
4.
Director, University Hospital/
Dean, Institute of Distance Learning- GH¢1,000.00
Note:-The due process should be observed when
administering the above thresholds.
1.
TENDERING PROCESS for the New Levels of Thresholds




The Price Quotation (PQ) or Invitation For Quotation
(IFQ) Method shall be used.
Use appropriate Invitation documents to source for
quotations.
Quotations are sourced using Letters of Invitation
(LOI) from a minimum of three registered firms. (see
Form A1)
The quotations are to be submitted in sealed
envelopes.
TENDERING PROCESS for the New Levels of
Thresholds
In the LOIs the Procurement Entity shall specify the ff:
a)
Fix the place for, and a specific date and time as
the deadline for the submission of quotations;
b)
Allow tenderers at least Two (2) weeks to
submit sealed quotations.
c)
Sealed Quotations shall be opened Public.
d)
Suppliers or their representatives shall be allowed
to observed the opening proceedings.
TENDERING PROCESS for the New Levels of
Thresholds







The Letter of Invitation (LOI) shall capture the
following:
The Contract Package No./Name;
Brief Description of the items and their respective
quantities;
Price Schedule Chart indicating the Minimum Technical
Specifications required for each item, (See Form A2);
Warranty Period;
Delivery Period;
Time and Date of Tender Submission/Opening; and
Place of Tender Submission/Opening.
TTENDERING PROCESS for the New Levels of
Thresholds

It is expected that experts in the relevant areas
would be invited to assist in defining the technical
requirements and evaluation of bids.
TENDERING PROCESS for the New
Levels of Thresholds
Opening of Tenders :Tenders shall be opened
1)
At the time specified in the tender documents
(LOIs) as the deadline for the submission of
tenders or at the deadline specified in any
extension of the deadline.
2)
The time for opening of the tenders shall be the
same as the deadline for receipt of tenders or
promptly after that deadline.
TENDERING PROCESS for the New
Levels of Thresholds

A supplier or contractor who has submitted a tender
or a representative of the supplier or contractor,
shall be permitted by the procurement entity to be
present at the opening of tenders.
TENDERING PROCESS for the New
Levels of Thresholds

The name and address of each supplier or
contractor whose tender is opened and the tender
price shall be announced to those present at the
opening of tenders and communicated on request to
a supplier or contractor who has submitted a tender
but is not present at the opening of the tenders.
TENDERING PROCESS for the New
Levels of Thresholds.
Evaluation of Tenders:
The procurement entity shall evaluate and compare
the tenders that have been submitted in order to
ascertain the successful tender in accordance with the
procedures and criteria set out in the invitation
Documents (LOIs).

TENDERING PROCESS for the New Levels of
Thresholds



The Unit shall constitute an Ad-hoc Tender
Opening/Evaluation Committee as appropriate to
open and evaluate bids under their threshold.
Evaluation of tenders shall be carried out
immediately after the tender opening.
No criterion shall be used that has not been set out
in the invitation documents.
TENDERING PROCESS for the New
Levels of Thresholds
The successful tender shall be:
a)
The tender with the lowest evaluated tender; and
b)
The lowest evaluated tender ascertained on the
basis of criteria specified in the invitation
documents.
TENDERING PROCESS for the New Levels of
Thresholds


Standard forms prepared by Procurement Office
should be used to carry out the tender
opening/evaluation (See Form B).
The Tender Evaluation Panel shall make
recommendation for contract award for an
appropriate authority (HOD/ Dean/ Director/
Provost/ VC) to review and approve depending on
the level of expenditure.
TENDERING PROCESS for the New
Levels of Thresholds

Review and Approval: Submit
the Evaluation Report to an appropriate
authority for review and concurrent approval ;

Contract Award & Management: Notification;
 Signing;
 Execution;
 Inspection
 Payment.
& Acceptance; and
AUDITING OF PROCUREMENT ACTIVITIES


A Auditing Team including Internal Audit Staff shall
be sent to the various units to carry out procurement
audit and file reports to the Director of Procurement
for onward submission to the Vice Chancellor. Just to
ensure that the activities at the various units comply
with the Public Procurement Act, 2003 (Act 663).
A Procurement Entity shall maintain records of
procurement proceedings for future audit.
AUDITING OF PROCUREMENT ACTIVITIES



A check list shall be used for the auditing exercise
(See Form C).
Departments that contravene the provisions of the
Act would be sanctioned and have their thresholds
withdrawn.
Any evidence of Bulk Breaking detected would call
for sanctioning and subsequent withdrawal of the
threshold privilege.
CONTRACT AWARDS
After approval of recommendation, a Local
Purchase Order Form (See Form D) should be
prepared by the Procurement Officer assigned to
the College or Unit and this is to be signed by the
Head of Department/ Dean/ Director/ Provost,
depending on the contract amount, and the College
Accountant and copies shall be sent to the Director
of Procurement.
Procurement Rule-On Inducement

Sect. 32:-Inducement from Suppliers, Contractors
and Consultants
A
PE shall reject a tender, quotation and proposal if the
supplier or the contractor that submitted bid, gives or
agreed to give directly or indirectly to any current or
former officer employee of the PE:
A
gratuity in any form;
 Offer of employment; and
 Any other thing of service or value as inducement.
Procurement Rule-On Description of
Goods, Works and Services.


Sect. 33:- Description of Goods, Works , Services
Using:Specification, Bills of Quantities, Terms of Reference, Plans,
Drawings and Designs that provide the technical or quality
characteristics of Goods, Works and Services to be
procured.
 There shall be no reference to a particular trade mark,
brand name, patent, specific origin or producer in the
tendering process.
 The Suppliers in their Submission shall indicate the trade
mark, brand name, patent, specific origin or producer of
their offers.

RIGHT TO REVIEW
Right to review :Any supplier, contractor or consultant that claims to
have suffered loss or injury due to a breach of a
duty imposed on the procurement entity by this Act,
may seek for review.
International Obligations

Notwithstanding the extent of the application of this
Act to procurement, procurement with international
obligations arising from any grant or concessionary
loan to the government shall be in accordance with
the terms of the grant or loan.-Section 96
Offences Relating to Public
Procurement

Any person who contravenes any provision of the
Act commits an offence and where no penalty has
been provided for the offence, the person is liable
on summary conviction to a fine not exceeding 1000
penalty units or a term of imprisonment not
exceeding five (5) years or to both.
IN CONCLUSION
Please endeavour to comply with all the rules of the
Public Procurement Act, 2003 (Act 663).
THE END
THANK YOU