ENHANCEMENT OF PROCUREMENT CAPACITY OF LOCAL GOVERNMENT AUTHORITIES PROJECT (EPC – LGAP)

LGA PROCUREMENT CAPACITY BUILDING

STRATEGY FORMULATION WORKSHOP

Dodoma, 11-13 June 2013

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PMO-RALG

STRENGTHENING PROCUREMENT PERFORMANCE OF LOWER LOCAL GOVERNMENTS

OUTLINE OF THE PRESENTATION

Problem statement Issues related to low procurement performance in

Lower Local Governments (LLG) Development objective (desired outcome) Strategic objectives Key interventions

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PROBLEM STATEMENT

Need to address inadequate procurement management and practices in Lower Local Governments

NB: In this presentation focus is on Lower Local Governments, but factors and issues at Higher Local Government level that impact on LLGs are also covered

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INSTITUTIONAL & REGULATORY ISSUES

Low compliance to PPA and poor use of basic procurement principles at LLG level

No clear division of roles & responsibilities between various actors involved in LLG procurement

Many different systems used by LLGs in procurement process (selection, approvals, evaluation, awards, accountability, etc)

Absence of standard procurement implementation tools (contracts, tender documents)

Multiple procurement procedures and processes depending on sector, type of project, and financier

LGA Financial Memorandum: not fully harmonized with PPA; LLGs adequately covered?

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GOVERNANCE ISSUES

Good governance practices at village level: approval selection of project committees by Village Assembly; awards contracts approved by VC; project hand-over/final report

BUT: cases of low transparency, conflicts, inadequate accountability related to procurement in LLGs

AND: Need of well-defined roles & responsibilities in decision-making/governance in LLG procurement i.e. Oversight; Accountability ; Delegation levels; Quality assurance in line with recommended procurement practices

Civil Society Organisations in regions/districts: low public procurement knowledge, often lack of interest (as observed in Base Line Study)

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PROCUREMENT MANAGEMENT

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Scope: around 15,000 villages and mitaa

Inadequate human resource with required skills to implement LLG procurement compliant to PPA

Many VEOs with low qualifications (> 60% Std 7)

BUT: Recruitment new VEOs by PO-PSM (qualifications: Form IV + basic certificate in LG administration)

Members of Village Councils elected every 5 years with mixed education background

Low awareness observed in LLGs on thresholds, procurement methods and procurement principles (publicity, competition, evaluation, awards, implementation, etc)

PROCUREMENT MANAGEMENT (2)

Procurement in primary schools, water committees, project committees: is this adequately delegated and formalised?

Procurement of sector Grants and service units not well captured in procurement reports

Procurement competences of actors not well described: VEO, Village Council, project committees

VEO is multi-tasked: able to do all work efficiently? Most projects use standard drawings, specifications,

BoQ/material requirements BUT: Project committees / Community Management

Committees adequately prepared? Low understanding of drawing, specifications and M&E tools

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PROCUREMENT MANAGEMENT (3)

HLG level: work in progress with increased level of qualifications of (new) LGA procurement staff; many procurement graduates on the market; on-going professionalization (required registration with PSPTB, Continuous Professional Development, etc)

LGAs cover many sectors (agriculture, education, health, works, water, etc) and have several different procurement chains which require specific skills (unit vis-à-vis committee)

Increased use of SBDs (HLG level), but inadequate ability to fill data sheets and special conditions of contracts

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PROCUREMENT MANAGEMENT (4)

Weak LGA procurement areas:

Preparation of Annual Procurement Plan

Contract Management

Procurement record keeping

Publication of awards

Low use of PMIS

Aggregation of common goods and supplies: reluctance and low understanding to use of call-off orders for Common Use Items & Services (CUIS) by using Framework Contracts

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MARKET

Local fundis: low understanding of drawings, specifications, material requirements

Often long distances to markets and suppliers

Low understanding of providers of procurement requirements

Inadequate capacity / ability to analyse the market

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PROCUREMENT COMPETENCES & SKILLS IN

LGA’S

Procurement training has low priority in LGAs

Training needs derived from OPRAS and Departments, but procurement not often captured

No structured training for VEOs, Village Councils and Service Units in procurement

Inadequate funding of LGA Capacity Building Plans

Most PMUs have no sub-vote (yet) and therefore a challenge to get funding for procurement training

Staff put higher value to individual training needs and less on capacity objectives of LGA as organisation

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PROCUREMENT COMPETENCES & SKILLS IN LGA’S (2)

RAS/LGAMSS is taking up new role in follow-up, monitoring and advising LGAs (but inadequate capacity in procurement)

HLGTI provides pre/in-service certificate and diploma courses in LG Administration, Finance & Accounting for VEOs & WEOs, which include procurement as subject (but issue of 60% VEOS having STD VII)

PPRA provides on request procurement tailor-made training (which are funded by the Procuring Entity)

Other Training Entities provide procurement training to LGAs (Standard Courses; other courses)

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STRATEGIC OBJECTIVES & INTERVENTIONS

Objective: Strengthened procurement capacity in LLGs Performance Indicator: Increased Compliance and Value for Money in LLG procurement Strategic Interventions: Procurement Guidelines for LLGs developed &

disseminated Competences and skills of LLG procurement actors

enhanced Professionalization of the LGA procurement function

strengthened Procurement management tools and systems

introduced and applied in LLGs LGA procurement training strategy developed and

operational

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PROCUREMENT GUIDELINES FOR LLG’S

Objective: To develop and introduce standardized, harmonized LLG procurement guidelines

Set the regulatory & institutional framework for procurement in LLGs (roles &responsibilities in procurement process i.e. preparation, invitation, receiving, evaluation, approvals, award, contract management)

Support achieving increased compliance to PPA and value for money

Set framework for addressing legal issues and conflicts by defining roles & responsibilities in oversight, accountability, delegation and Quality Assurance

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PROCUREMENT GUIDELINES FOR LLG’S (2)

Requires the development of a customized LLG procurement operational manual (guide)

Collaboration required between PPRA and PMO-RALG

Importance of simple language (Kiswahili) commensurate with the target group

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COMPETENCES & SKILLS

Objective: To increase competence and skills of actors with main responsibilities in LLG procurement Describe procurement competences and skills of VEOs,

members VCs, Service Unit Committees and Project Committees

Update Scheme of Service of VEOs and ‘job descriptions’ of members of committees

Need to reflect well the differences in training needs of Village, Mtaa and District Councils

New LLG staff: ensure procurement skills are adequately covered in the basic LG Administration certificate courses

Existing VEOs: see training strategy

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PROFESSIONALIZATION OF LGA PROCUREMENT FUNCTION

Objective: to have capacitated professional procurement cadre in LGAs Clarify PMU structure: define PMU establishment (type

of LGA; volume of procurement); adequate remuneration levels (to retain staff); use of PMU sub-vote (502E); responsibilities PMU for procurement at LLG and service unit level, etc

Define competences of procurement professionals and technicians (new areas: e-procurement, ICT, end-user satisfaction, research, legal; update Scheme of Service

Clarify the position of procurement/supplies technicians in other LGA departments (stores officers, hospitals, etc)

Update LG Financial Memorandum in areas needed 17

PROCUREMENT SYSTEMS & TOOLS - LLG

Objective: to have adequate procurement systems and tools in place and used in LLGs Develop and introduce a simplified, standard LLG

procurement operational manual as per guideline Develop tools and systems for procurement (bid

documents incl. contracts, evaluation guidelines, receiving/issuing of materials, etc), contract management, record keeping, quality assurance and reporting (also linked to HLG MIS: APP, EPICOR, PlanRep)

Consider the same for Service Units procurement Facilitate availability of adequate equipment and

working tools in LLGs

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PROCUREMENT SYSTEMS & TOOLS - HLG Objective: To facilitate availability of adequate equipment and working tools at PMU levels Development and introduction of LGA procurement

manual (guide) Development and introduction of manual for own-

source revenue collection services Improve knowledge and skills in preparation, updating

and implementing of Annual Procurement Plan Improve systems, classification, tools for procurement &

contracts management and records keeping Follow-up support to use of PMIS in LGAs including

connectivity of PMU to LGA MIS & ICT Improve quality, completeness and credibility of LGA

procurement reports

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TRAINING STRATEGY

Objective: to systematically and effectively identify and address LGA procurement training needs and monitor and evaluate impact on performance LGAs to take their responsibility to ensure adequate

procurement skills officials (LLG; HLG) and Council members as identified and/or recommended in M&E and audit reports

Need to formulation of LGA specific procurement skills development plans based on Training Needs Assessments

Establish and capacitate District Training Teams for ToT/ToC at all levels

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TRAINING STRATEGY (2)

District Training Teams to train ward ToT (WEO, CDO) for training/coaching of VEOs & Village Councils members

Training to 1) change mind-sets & attitudes, and 2) increasing knowledge and practical procurement skills

Initial training to focus on weak procurement capacity areas as identified in procurement audits, DIA and CAG reports including: Record keeping Contract administration Quality assurance Preparation and implementation of procurement

plans Governance and reducing procurement risks Leadership skills 21

TRAINING STRATEGY (3)

Tailor-made short courses for VEOs with Std VII in procurement and other related areas (accounts, management, records keeping) based on demand and needs

Capacitate RAS/LGAMSS to coach, advice, follow-up LGAs in procurement (assuming there will be a procurement expert in LGAMSS)

Capacitate PPRA Zonal Offices to provide training and advice to procurement staff from regions and LGAs

Review, updating and dissemination procurement manuals

Review and/or development of quality LGA procurement training manuals

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TRAINING STRATEGY (4) Introduce adequate M&E of procurement training to

monitor use of acquired skills and evaluate impact Ensure that Training Providers (QTPs; Individual Trainers) are

fully conversant with training methodology & materials Make procurement guides (operational manuals) and

training manuals available through ICT and e-learning Design an adequate coaching and mentoring concept that

can work within LGAs, between LGAs, and between RAS/LGAMSS vis-à-vis LGAs

Introduce action research to PMUs in identified weak procurement areas as a learning model for organisational development

ASANTENI KWA KUNISIKILIZA 23