Dr Fred MugambiJKUAT

INTRODUCTION

Procurement Unit is a Department under the Director General’s Directorate. The Department is charged with the responsibility of procurement of goods and services in the Bureau.

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FUNCTIONSThe major functions of the Department are:-

Implementation of Public Procurement and Disposals Act and Regulations at the Bureau

Advise the Director General and other Directors on Procurement activities

Preparation of KNBS annual procurement planImplementation of the annual procurement planShortlisting/registration of suppliersReporting of procurement activities to the Board

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FUNCTIONS (CONTD.)Secretariat to procurement committees

a) Tender committee KSh.500,000 and

above

b) Procurement committee below

KSh.500,000

c) Disposal committee

d) Tender/Quotation Evaluation committee

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RISKS IN PROCUREMENTRisks in procurement can lead to massive loss of

resources and non availability of goods and services if not prevented. However, all the risks in procurement are available if the provisions of the Public Procurement Act and Regulations are adhered to.Over pricing of materials and services – ensure

procurement through competitive bidding and also carrying out of market survey.

Risk of delivery of sub-standard materials to avoid this risk. The following should be observed:-

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RISKS IN PROCUREMENT (Contd..)a) Clear specification of materials and terms of

referenceb) Evaluation of tenders/quotations prior to awardc) Inspection of goods/services prior to receipt

Risk of over purchase/overstocking – always ties the funds in materials that cannot be used. To avoid this:-

a) Plan all procurementsb) Carry out stock takesc) Purchase … for use materialsd) Ensure implementation of procurement plans

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RISKS IN PROCUREMENT (Contd..)Risk of non completion of assignment

a) Ensure supervision of the contractor by the user

b) Clear terms and conditions of contract

Payment for goods/services not delivered or services not rendered.

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ROLE OF PROCUREMENT MANUALThe Bureau has put in place a procurement

and stores management manual inorder to

enable it carry out its mandate as set out in

Statistical Act, 2006. the manual provides a

comprehensive procurement and stores

management policy and procedures.

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ROLE OF PROCUREMENT MANUAL (CONTD)1. PURPOSETo provide easily understood guidelines and

operational instructions on matters relating to:-a) Procurement of goods, works and servicesb) Procurement of consultancy contractsc) Management of stores

2. OBJECTIVESThe objective of the manual is to provide

guidelines that promotes economy, efficiency and transparency in procurement and stores management

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ROLE OF PROCUREMENT MANUAL (CONTD)3. SCOPE

a) Must be adopted by all directorates both in headquarters and field operations

a) Emphasize application of the Public Procurement and Disposal Act and Regulations

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ROLE OF PROCUREMENT MANUAL (CONTD)4. GENERAL POLICY Competitive bidding is the preferred

mode of procurement Maintenance of supplier data base

approved by the Tender Committee Contracts shall be in writing Splitting of transactions – not allowed in

order to avoid competition Inspection of goods and certification of

services

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ROLE OF PROCUREMENT MANUAL (CONTD)5. CODE OF CONDUCTApplies to all persons involved in

procurement in any stage and in management of stores:-

Ethics – must be consistent with highest professional and moral standards

Conflict of interest – must be observedConfidentiality of informationFraudulent, collusion and corrupt

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ROLE OF PROCUREMENT MANUAL (CONTD)6. PROCUREMENT PLANSMust be prepared annually by Procurement

Unit

Directorates including field operations must submit annual work plans

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ROLE OF PROCUREMENT MANUAL (CONTD)7. PROCUREMENT COMMITTEESAppointment by Director General of the

membersTender committee - KSh.500,000 and aboveProcurement committee - below KSh.500,000Disposal CommitteeReceiving and acceptanceEvaluationTender/Quotation openingMarket Survey

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ROLE OF PROCUREMENT MANUAL (CONTD)8. PURCHASINGThe manual gives guidelines on all methods

available and emphasizes on availability of requisition prior to purchase.

a) Stock/common user itemsb) Open tenderc) Request for proposalsd) Request for quotationse) Direct procurement

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ROLE OF PROCUREMENT MANUAL (CONTD)9. RECEIVING OF GOODS

Must be in accordance with specification

Inspection and receiving committee

Maintenance of records

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ROLE OF PROCUREMENT MANUAL (CONTD)10. INVENTORY MANAGEMENTInventory management has since been moved

from Procurement Department to the Directorate of Finance and Administration. However, the manual provides the guidelines and procedure.Storage of purchased goodsIssue of materials from storesLoaning of storesStores securityProgramme for stock take

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ROLE OF PROCUREMENT MANUAL (CONTD)11. DISPOSALSThe manual provides for guidelines on

disposal of stores necessitated by fair wear and tear, obsolete or surplus

Submission of such items by he user/fieldDisposal committeeTender committee

Sale by:

a) Open tenderb) Public auctionc) Transfer to other public institutionsd) Sale to members of staff

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ROLE OF PROCUREMENT MANUAL (CONTD)APPENDICES

a) Confidential business questionnaireb) Price comparison summaryc) Local purchase/service orderd) Annual procurement plane) Stores ledger and control cardf) Request for quotationg) Inspection and acceptance certificateh) Board of Survey form

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