BEST PROCUREMENT PRACTICES
AND
REDRESSING THE MAJOR CONSTRAINT OF
PROCUREMENT FOR EFFECTIVE RESEARCH
WORK
IMRAN CONTEH
PROCUREMENT OFFICER, SLARI
OUTLINE
• Introduction
• Basic principles of procurement
• Strategic vision
• Mission statement
•
Procurement and supply in SLARI’s strategic plan
• Public procurement Act 2004
• Procurement process
• Procurement methods
• Delay and quality issues
• Conclusion
INTRODUCTION
 Government cannot provide services to the people without engaging in procurement. This makes public
procurement big business.
 Public procurement contract represent a major share of any country’s GDP and public expenditure budget.
 Most of the major corruption are associated with procurement
BASIC PRINCIPLES OF PROCUREMENT
 The overriding objectives of a country’s procurement system is to deliver efficiency and value for money
in the use of public funds while adhering to national laws and policies
 Maximizing economy, efficiency, and effectiveness
 Promoting integrity and fairness
 Increasing transparency and accountability
 Conflict of interest
 Ethical principle
 Business gift etc.
STRATEGIC VISION
“Improved and sustainable broad-based agricultural growth”.
MISSION STATEMENT
“To enhance sustainable productivity, commercialization and competitiveness of the agricultural sector through
generation and promotion of innovative agricultural technologies and empowerment of stakeholders”.
Procurement and Supply in SLARI’s Strategic plan (page 68)
The operation of the procurement and supply division are guided by clear procedures for procuring
goods and services and disposal of unserviceable, obsolete or surplus stores and equipment by
public entities in order to maximize efficiency, promote, competition, integrity, fairness,
accountability, and transparency.
In compliance with this, SLARI shall establish this division which is expected to contribute
significantly to the attainment of the overall institutional mission through timely procurement and
supply of goods and services at the right quantity, quality, time, price in accordance with existing
government procurement and disposal procedures.
Public Procurement Act 2004
Being an Act to establish the NPPA, to regulate and harmonize public procurement processes in the public
service, to decentralize public procurement to procuring entities, to promote economic development,
including capacity building in the field of public procurement by ensuring value for money in public
expenditures and the participation in public procurement by qualified suppliers, contractors, consultants
and other qualified providers of goods, works, and services and to provide for other related matters.
what is Public Procurement?
‘Means the acquisition by any contractual means of goods, works, and services using public funds’. (PP
Act, pg 6)
KEY TERMS IN THIS DEFINITION
GOODS
Means object of every kind and description including commodities, raw materials, products, and equipment, and
objects in solid, liquid or gaseous form, and electricity as well as services incidental to the supply of the goods, if the
value of those incidental services does not exceed that of the goods themselves.
PUBLIC FUNDS
Means any monetary resources of the state budget, or aid and credit under agreement with foreign donors, or extra
budgetary resources of procuring entities, used in public procurement. (page 9)
WORKS
All works associated with the construction, reconstruction, demolition, repair or renovation of a building, structure or
works, such as site preparation, excavation, erection, building, installation of equipment or materials, decoration and
finishing, as well as services incidental to construction such as drilling, mapping, satellite photography, seismic
investigation and similar services provided pursuant to the contract, if the value of those services does not exceed that
of the construction itself. (page 10)
PROCUREMENT METHODS
 Open competitive bidding
 National
 International
 Restricted bidding
 Request for Proposals
 Request for quotations
 Sole source
Transfer
Sale by public bid to the highest bidder
Sale by auction
Destruction
Disposal
Needs
identification
and
assessment
Develop
technical
Specification
What do you want?
Does it add value to SLARI?
Invoice
Delivery note
Stock record card
Agreement/ LPO
What is a Specification?
Reasons for developing Specifications
How to develop specification
Determine
the
procurement
method
Payment
Sourcing/
Market
research
Based on the threshold
Based on the urgency
Availability of the item
Competitive requirements
Prequalification of Suppliers
Procurement methods
Problems with the use of
proforma invoice
Delivery
Required date and place of delivery
Required quantity
GRN
Required Specification
Receive
and
evaluate
quotations
Award
of
Contract
MEAT
Commercial responsiveness
Technical compliance
Price evaluation
DELAY ISSUES
PROCUREMENT PLANNING
It is commonly known that “failure to plan is planning to fail”
Though procurement planning is a legal requirement, lack of it is still a major cause of inefficiency
It will lead to:
Artificial emergency procurement
Failure to absorb allocated fund
Application of inappropriate method
Circumvention of legal and regulatory procedures
TIMELY SUBMISSION OF REQUIREMENTS
Requirements must be submitted long before the required date of delivery to allow the use of the appropriate
method of procurement
Must reasonably be able to determine when an item needs to be repaired or replaced eg tyres
QUALITY ISSUES
SPECIFICATION
Goods must be clearly specified
Goods must serve its purpose
TESTING
Should be tested
TERMS AND CONDITIONS OF AGREEMENT
Warranty/ Guarantee
ISO standards
CONCLUSION
An effective public procurement practice plays a strategic role in governments for avoiding
mismanagement and waste of public funds.
I Thank You ALL