Procurement Presentation

1. OVERVIEW OF PROCUREMENT
PROCEDURES
BY TANKOI MESHACK
HEAD OF PROCUREMENT
NANDI COUNTY

2. TENDERING PROCEDURES
• PUBLIC PROCUREMENT AND DISPOSAL ACT 2005 AND IT’S
REGULATION 2006
• The legal framework of Kenya’s Public Procurement systems was
strengthened with the enactment of the public procurement and
Disposal Act 2005 which came to operation on 1st
January 2007
with the publication of the public procurement and disposal
regulations 2006.
• The public procurement system is the bridge between public
procurements and the private sector providers. The government
has the obligation of providing goods, works and services to meet
a variety of citizen needs. These needs or requirements are
obtained from either internal government organizations or external
sources to the government which is the private sector through the
procurement process.

3. PUBLIC PROCUREMENT AND DISPOSAL ACT 2005 AND IT’S
REGULATION 2006
• The public procurement system affects many aspects of society
including:-
(a) The procuring entitles, which have needs for material support to
fulfill their mandated mission
(b) The Business Community of actual or potential suppliers,
contractors and consultants who satisfy the procuring entities
identified needs.
(c) The professional associations, academic entities and public
interest groups, which have important concerns and views on how
public institutions are managed and perform and
(d) Development partners.

4. PROCUREMENT POLICY
• It is a government policy that funds budgeted and approved by
county Assembly for the purpose of procurement are
• spent on the intended purposes. This applies both to-
development and recurrent expenditures. It is also a
• Government policy to allow open competition for procurement
without discrimination in a transparent, fair and
• accountable manner to ensure achievement of value for money in
all procurements.
• Government policy, among other things, seeks to achieve
economic growth and poverty reduction and also show
• tangible improvements in the delivery of services to the people of
Nandi County.

5. THE PROCUREMENT CYCLE
•
Procuring entities are responsible for carrying out all the procedures
pertaining to the complete procurement cycle. . It is important to be
familiar with the complete procurement cycle and to ensure that
there are effective management procures in place to properly
manage each step.
The complete procurement cycle shall include:
1. Preparation of procurement plans.
2. Preparation of procurement specifications and initiation of the
procurement process.
3. Preparation of pre-qualification/Tender/Bid documents.
4. Advertisement
5. Receiving and opening of Bids
6. Evaluation of Bids

6. THE PROCUREMENT CYCLE
• 7. Adjudication and contract Award
8. Notification of contract award
9. Negotiations (where applicable)
10. preparation and signing of procurement contract
11. Contract Administration
12. Receipt inspection and Acceptance of goods, works, services
and consulting services.
13. Storage and inventory Management.
All steps of the procurement cycle must be properly documented
with each step being approved by the designated authority.

7. PROCUREMENT PLAN
•
A document prepared by each procuring entity annually to plan all
procurement requirements necessary to perform the activity plan of
the procuring entity. Procurement plan can include procurement for
multi-annual delivery, multi-annual contracts and next fiscal delivery.
Procurement planning directly links the procurement function to the
budget preparation. Unless procurement has been planned
adequately, with realistic times taken into account for the
preparation of procurement requirements and allotment of budget,
the budget execution will be hampered.

8. B. PREPARATION OF PROCUREMENT SPECIFICATIONS
The specifications should be as neutral as possible and not to appear
to favour particular bidders. In case of consultancies
the terms of reference (ToR) must be adequate to enable the
participating consultants to understand the requirement of the
assignment. Specifications are so crucial to the success of
procurement and the following points should be noted.
1. Specifications must be prepared by qualified staff.
2. The responsibility for preparation of the specifications is shared by
the user and technical departments and coordinated by the
procurement unit.
3. Specification must be updated and based on a adequate market
trends.
4. A procurement Agent or consultant may be engaged to prepare
complex specifications.

9. . PREPARATION OF PROCUREMENT SPECIFICATIONS
Specifications form a very critical part of the bidding documents.
6. The evaluation criteria which must be disclosed in the bidding
documents shall be partly based on the specification.
7. Specifications must include packing if necessary.
8. Preparation of the bidding documents should not be commenced
before the specifications are ready .
9. Specifications should take into account total cost of ownership.

10. C. PREPARATION OF PREQUALIFICATION
Procurement serves as one window through which the public sector
interact with the private sector. How such interaction, is
Managed is very important in fostering a sense of fairness and
widening the base of participation by the private sector in public
procurement.
Clearly, public procurement should only be carried out with bidders who
are legal entities and who have not been debarred
from carrying out public procurement.
The details on the eligibility and qualification of bidders are worked out
to ensure that all bidders are entitled to bid and that the
competition is fair
amongst comparable entities and that these entities are legally
established and can enter into enforceable contract with public
institutions.

11. . PREPARATION OF PREQUALIFICATION
• The eligibility criteria should be clearly stated in the bidding
document for each procurement to ensure that these criteria are
met, signed statements or documentary evidence may be requested
to certify the eligibility.
Documentary evidence for eligibility may include:-
1. Certified copies of the bidder’s certificate of business registration,
certificate of incorporation, business license or
similar document.
2. Certified copies of the bidders tax registration, tax compliance
certificate or similar document.
3. A list of all of the directors of the bidding company
4. The principal shareholders of the bidding company, or list or
partners or the proprietor as may be appropriate.
5. A signed statement that the bidder does not have a conflict of
interest in relation to the procurement.

12. . PREPARATION OF PREQUALIFICATION
• 6. A signed statement that bidder, or any of its directors or officers,
have not been convicted of any criminal offence
relating to professional conduct or the making of false statement
or misrepresentations as to procurement contract
within a period of three years proceeding the commencement
procurement proceedings:
7. A signed statement that the bidder is not debarred from
participating in public procurement.
Procuring entities must ensure that the eligibility criteria is clear in
the bidding documents as it will form part of the evaluation criteria.

13. D. ADVERTISEMENT
•
The procuring entity shall take such steps as are reasonable to
bring the invitation to tender to the attention of those who may wish
to submit tenders.
If the estimated value of goods works or services being procured is
equal to, or more than the prescribed threshold for national
advertising the procuring entity shall advertise, at least twice in a
newspaper of general nationwide circulation which has been
regularly published for at least two years before the date of issue of
the advertisement.
The minimum time for the preparation of National tenders for the
purpose of section 55(1) of the Act shall be a period of fourteen
days.

14. E. OPENING OF BIDS
•
1. The accounting officer shall appoint a tender opening committee
specifically for the procurement in accordance with
the following requirements and such other requirements as may
be prescribed:-
a. The committee shall have at least three members
b. At least one of the members shall not be directly involved in the
processing or evaluation of the tenders.
• 2. Immediately after the deadline for submitting tenders, the tender
opening committee shall open all tenders
received before that deadline.
3. Those submitting tenders or their representatives may attend the
opening of tenders.
4. The tender opening committee shall assign an identification
number to each tender.

15. E. OPENING OF BIDS
•
5. As each tender is opened, the following shall be read out loud
and recorded in a document to be called the
tender opening register.
(a) The name of the person submitting the tender.
(b) The total price of the tender including any modification or
discounts received before the deadline for
submitting tenders except as may be prescribed; and
© If applicable, what has been given as tender security.
6. The procuring entity shall, on request provide a copy of the tender
opening register to a person submitting a tender.

16. E. OPENING OF BIDS
• 7. Each member of the tender opening committee shall:-
(a) Sign each tender on one or more page as determined by the
tender opening committee.
(b) Initial, in each tender, against the quotation of the prize and
any modifications or discounts.
8. The tender opening committee shall prepare tender opening
minutes which shall set out:-
(a) A record of the procedure followed in opening the tenders; and
(b) the particulars of those persons submitting tenders, or their
representative who attended the opening of the tenders.
9. Each member of the tender opening committee shall sign the
tender opening minutes.

17. . EVALUATION OF BIDS
•
1. The procuring entity shall evaluate and compile the responsive
tenders other than tenders rejected.
2. The evaluation and comparison shall be done using the
procedures and criteria set out in the tender documents and no
other criteria shall be used.
3. The criteria must, to the extent possible be objective and
quantifiable.
4. Each creterion must be expressed be that it is applied in
accordance with the procedures, taking into consideration price,
quality and service for the purpose of evaluation.
• 5. The successful tender shall be the tender with the lowest
evaluated prize.
6. The procuring entity shall prepare an evaluation report containing
a summary of the evaluation and comparison of tenders.
7. The evaluation shall be carried out within a period of fifteen days.

18. . EVALUATION OF BIDS
• Any member of staff can be appointed to be a member of an
evaluation committee provided the person is capable of performing
the work of the evaluation committee.
An evaluation committee shall consist of a chairman and at least
three other members all appointed by the accounting officer or the
head of the procuring entity upon recommendation by the
procurement unit.

19. G: ADJUDICATION AND CONTRACT AWARD
•
Tender committees have the responsibility of ensuring the selection
of bidders are based on fair competition and in compliance with the
legal and regulatory framework for the supply of goods works and
above the Tender committer threshold

20. ESTABLISMENT OF TENDER COMMITTEES
•
In each procuring , a Tender committee should be established. The
composition of Tender committee for different procuring entities are
as follows:
1. county Government tender committee
2. County Government entities tender Committee
3. County Assembly Tender Committee
4. City Tender Committee
5. Urban Area Tender Committee
6. County Service Delivery Co-coordinating Tender Committee.

21. H. NOTIFICATION OF CONTRACT AWARD
•
1. Before the expiring of the period during which tenders must
remain valid, the procuring entity shall notify the person submitting
the successful tender that his tender has been accepted.
2. At the same time as the person submitting the successful tender
is notified, the procuring entity shall notify all other persons
submitting tenders that their tenders were not successful.

22. NEGOTIATION (DIRECT PROCUREMENT/ PREPARATION AND
SIGNING OF PROCUREMENT CONTRACT
)
A procuring entity may use direct procurement if the following are
satisfied:-
(a) There is only one person who can supply the goods, work or
services being procured.
(b) There is no reasonable alternative or substitute for the good, works
or services being procured
Preparation
The file that contain all supporting documentation pertaining to specific
contract and its execution by both parties such as
all correspondence, interim payment, survey reports inspection reports is
called a contract file.
A procurement contract is a written agreement between a procurement
entity and a supplier, contractor or consultant
which is enforceable by law.

23. CONTRACT ADMINISTRATOR
The official nominated to manage and supervise the contract execution
by the contractor on behalf of the procuring entity.
The contract administrator is the only official responsible for the
contract management and is responsible for maintaining the
contract file.

24. RECEIPT INSPECTION AND ACCEPTANCE OF GOODS WORKS
AND SERVICES.
1. A procuring entity shall establish an inspection and acceptance committee.
2. The inspection and acceptance committee shall be composed of a
chairman and at least two other members appointed by the accounting
officer or the head of the procuring entity on the recommendation of the
procurement unit.
3. The inspection and acceptance committee shall immediately after delivery
of the goods, works or service:-
(a) Inspect and where necessary test the goods received
(b) Inspect and review the goods, works or services in order to ensure
compliance with the terms and specifications of the contract.
© accept or reject on behalf of the procuring entity, the received goods,
works or services.
4. The inspection and acceptance committee shall:-
(a) Ensure that the correct quantity has been received.
(b) ensure that the goods, works or services meet the technical standards
defined in the contract

25. RECEIPT INSPECTION AND ACCEPTANCE OF GOODS WORKS
AND SERVICES.
• c) ensure that the goods, works or services have been delivered or
completed on time, or that
any delay has been noted.
(d) ensure that all manuals or documentation have been
received.
(e) issue interim or completion certificate or goods received
notes, as appropriate and in
accordance with the contract.

26. STORAGE AND INVENTORY
•
The Head of procurement unit should amongst other things ensure
that:-
(a) An officer is appointed to be in charge of stores
(b) all stores purchased are actually received and taken on charge,
and should arrange for occasional visits of inspection to the stores,
at least twice in each calender year, by himself or by a
representative in order to ensure that storekeepers carry out their
duties as required.
(C) That overstocking of any particular item is avoided.
(d) That adequate fire-fighting appliances as approved by the
relevant fire authority are installed in the store premises, are
maintained in good working order and are readily available for
emergencies and that watchmen and staff are instructed in their
use.

27. PAYMENT DOCUMENTS
•
1. Quotation form- s10
2.LPO/ LSO
3. Delivery Note and s13 form
4. Invoice
5. Receiving and Acceptance certificate

28. THE PUBLIC PROCUREMENT AND DISPOSAL (PREFERENCE
AND RESERVATIONS) (AMENDMEND) REGULATIONS, 2013.
• 1.Small or micro enterprise or a disadvantaged group wishing to
participate in the public procurement shall apply for registration with
the National treasury or the respective county treasury with which
they operate and are located.
2.All lists of registered enterprises from the national and county
levels shall be submitted to the authority for consideration and
publication.
3. A Procuring entity shall allocate at least 30% of its procurement
spend for the purposes of procuring goods, works and services from
micro and small enterprises owned by youth, women and persons
with disability.

29. THE PUBLIC PROCUREMENT AND DISPOSAL (PREFERENCE
AND RESERVATIONS) (AMENDMEND) REGULATIONS, 2013
• 4.For the purpose of benefiting from preference and reservations
scheme, an enterprise owned by youth, woman or persons with
disabilities shall be a legal entity that:-
(a) Is registered with the relevant government body.
(b) has at least seventy percent membership of youth, women or
persons with disabilities and the leadership shall be one hundred
percent youth; Women and persons with disability, respectively.
END