ii

PROCUREMENT GUIDELINES FOR

YOUTH, WOMEN & PERSONS WITH

DISABILITY

PREPARED BY

EVANS BIRAORI OTEKI

(HEAD OF PROCUREMENT)

FEBRUARY, 2018

P.O Box 285, 50200, BUNGOMA

Tel: 055 – 30500, Fax: 055 – 30001

Cell: 0727477777/0733800500

E-mail: m@nzoiasugar.com

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Table of contents

Table of contents ......................................................................................................................................... iii

ACRONYMS ................................................................................................................................................... v

Introduction .................................................................................................................................................. 1

NSC vision, Mision and core values............................................................................................................... 2

Commitments and Responsibilities of the PRM ........................................................................................... 2

Purpose of these guidelines .......................................................................................................................... 3

Article 227 of the Constitution of Kenya, 2010............................................................................................. 3

Public Procurement and Asset Disposal Act, No. 33 of 2015 ....................................................................... 3

The public procurement and disposal (preference and reservations) regulations, 2011 and ..................... 4

regulations, 2013 .......................................................................................................................................... 4

Qualification of target groups ....................................................................................................................... 5

Required Documents .................................................................................................................................... 6

Facilitation for financing of local purchase or service orders ....................................................................... 7

General principles ......................................................................................................................................... 8

Monitoring of compliance............................................................................................................................. 9

Responsibilities of bidders .......................................................................................................................... 10

Challenges Nzoia Sugar Company faces with special groups ...................................................................... 11

Evaluation, pricing and award of bids ......................................................................................................... 11

Delivery, inspection and acceptance tests .................................................................................................. 12

Payment process and contract closure ....................................................................................................... 12

Outlawed practice ....................................................................................................................................... 13

Appendix I Application of AGPO................................................................................................................ 14

Appendix II. Tender-Securing Declaration Form [ Mandatory] .................................................................. 17

Appendix II. Form of Tender ....................................................................................................................... 18

Appendix IV. Price schedule ........................................................................................................................ 19

Appendix V. Confidential business questionnaire form ............................................................................. 20

Appendix VI. Performance Security Form ................................................................................................... 22

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Appendix VII. Case study 1. Determinants of youth access to procurement opportunities in public sector

in Kenya ....................................................................................................................................................... 23

Appendix VIII. Case study 2. Factors influencing women participation in government procurement: A

case of Nyeri central sub-county, Kenya. ................................................................................................ 26

References ................................................................................................................................................... 31

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ACRONYMS

PPRA Public Procurement regulatory Authority

PPARB Public Procurement Administrative Review Board

PPADA, 2015 Public procurement and Asset Disposal Act, 2015

PPDA, 2005- Public Procurement and Disposal Act, 2005

PPDR, 2006- Public Procurement and Disposal Regulation, 2006

PPOA- Public Procurement Oversight Authority

NSC- Nzoia Sugar Company

RFP- Request for Proposals

RFQ- Request for Quotations

TOR- Terms of Reference

IAC- Inspection and Acceptance Committee

PC- Procurement committee

CEO- Chief Executive Officer

MD- Managing Director

NTC- NSC Tender Committee

YWPWDs Youth Women and Persons with Disabilities

1

Introduction

Kenya’s Vision 2030 is the Government’s development blue print that aims to transform Kenya

into a newly industrializing middle income country providing a high quality of life to its citizens

by 2030 (GoK, 2015). Poverty and inequality are strongly related and therefore policies that

reduce inequality should be encouraged. IEA (2008) attributes these gender inequalities to

limited access and control over productive resources, access to financial services, insufficient

access to education, lack of skills, limited access to technology, cultural impediments and other

constraints limiting employment options and participation in decision making, among others.

The first and second Medium Term Plans for the years 2008-2012 and 2013-2017 respectively,

highlight gender mainstreaming and the empowerment of women as key priorities in order to

ensure equality between men and women in access to economic, social and political

opportunities (GoK, 2015). Given the fact that governments are the largest buyers in any

economy, government procurement offers a unique, financially sustainable avenue to empower

women and reduce poverty (ITC, 2014).

In an effort to eradicate poverty and improve the economic status of women, the Kenyan

Government has put in place various catalytic measures like the Women Enterprise Fund (WEF)

established in 2007, UWEZO (Ability) Fund established in 2014, the 30% affirmative action

policy for women, youth and persons with disabilities in public procurement; to empower and

increase women participation in the country’s development. These measures aim at providing a

holistic integrated approach to addressing the challenges women face in starting or expanding

their enterprises especially with regard to lack of capital, low financial literacy, accessibility to

markets, decent work spaces and linkages with big enterprises (GoK, 2015). The 30%

affirmative action policy provides that women, youth and persons with disability are given

preference for 30% of public procurement tenders. The aim is to enhance the ability of

enterprises owned by these target groups, to participate in government procurement by giving

them more opportunities to do business with Government without competition from established

organizations.

2

NSC vision, Mision and core values

Vision

a. Company Vision: To be globally competitive in Production and

Marketing of sugar and other products.

b. Department Vision: To give the most competitive and cost effective

procurement services to our customers at all times.

Mission

a. Company Mission: To efficiently, innovatively and sustainably

produce and market sugar and other products in a clean and safe

environment to the satisfaction of all stakeholders.

b. Department Mission;

To render timely and dedicated procurement services within the

existing legal framework and NSC Procurement policy.

Core values

Customer focus.

Integrity.

Teamwork and Mutual Respect.

Transparency and Accountability.

Commitment.

Innovation and Creativity.

Professionalism.

Commitments and Responsibilities of the PRM

i. To timely and cost-effectively procure goods, works and services from the right

sources, in the right quality and quantities

ii. To ensure 30% of the value of tenders whose value and specialization status are

accessed by youth, women and persons with disabilities.

3

Purpose of these guidelines

The purpose of this document is to guide Youth, Women and People with Disability who

intend to do business with Nzoia Sugar Company L t d understand the stages of the

company’s procurements processes and procedures. In addition, this guide is aimed at

sensitizing and building the capacity of the Youth, Women and People with Disability on

Public Procurement and Asset Disposal regulations.

Article 227 of the Constitution of Kenya, 2010

Procurement of public goods and services

1. When a State organ or any other public entity contracts for goods or services, it shall do so in

accordance with a system that is fair, equitable, transparent, competitive and cost-effective.

2. An Act of Parliament shall prescribe a framework within which policies relating to

procurement and asset disposal shall be implemented and may provide for all or any of the

following

a. categories of preference in the allocation of contracts;

b. the protection or advancement of persons, categories of persons or groups previously

disadvantaged by unfair competition or discrimination;

c. sanctions against contractors that have not performed according to professionally

regulated procedures, contractual agreements or legislation; and

d. sanctions against persons who have defaulted on their tax obligations, or have been

guilty of corrupt practices or serious violations of fair employment laws and practices.

Public Procurement and Asset Disposal Act, No. 33 of 2015

3.Pursuant to Article 227(2) of the Constitution of Kenya, 2010, A new law governing

procurement and assets disposal by public entities in Kenya known as the Public Procurement

and Asset Disposal Act, No. 33 of 2015 (the “Act”) which came into force on 7th January, 2016

repealing the Public Procurement and Disposal Act, 2005.

4. Section 53(6) of the Public Procurement and Asset Disposal Act, 2015 states that, „all state

organs and public entities during their procurement and disposal planning are required to

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reserve a minimum of 30% of the budgetary allocations to enterprises owned by women, youth,

persons with disabilities and other disadvantaged groups.

5. Section 155 and 157 of the Public Procurement and Asset Disposal Act 2015, candidates shall

participate in the procurement proceedings without discrimination except where participation is

limited in accordance with the Act and its Regulations. The Public Procurement and Disposal

(Preference and Reservations) Regulation 2011 was gazetted vide the legal notice number 58.

These regulations provided a framework for the implementation of preferential procurements in

Kenya‟s public procurement.

Procurement circular No.1/2014 and Treasury circular no.1/2015 also state that it is a

mandatory requirement to reserve the thirty percent (30%) threshold to these special

groups and adhere to its full implementation. In addition, two percent (2%) of the thirty

percent (30%) must be reserved for persons with Disability.

The public procurement and disposal (preference and reservations) regulations, 2011 and

regulations, 2013

6. Definitions

a) "disadvantaged group" means persons perceived to be denied, by mainstream society

access to resources and tools which are useful for their survival in a way that

disadvantages them, or individuals who have been subjected to prejudice or cultural bias

because of their identities as members of groups without regard to their individual

qualities, and includes enterprises owned by women, the youth and persons with

disabilities;

b) “disability” shall have the meaning assigned to it under the Persons with Disabilities Act,

2003;

c) "micro enterprises" means a business undertaking with an initial- staff establishment of

not more than ten employees, and annual turnover or investment not exceeding Kenya

Shillings five hundred thousand;

d) "preference" means the right or opportunity to select a person from an identified target

group which is considered more desirable than another;

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e) "reservations" means exclusive preference to procure goods, works and services set aside

to a defined target group within a specified threshold or region;

f) "small enterprises" means a business undertaking with an initial- (a) staff establishment

of not less than eleven and not more than fifty employees, and (b) annual turnover or

investment not exceeding five million Kenya Shillings;

g) "youth" means persons who have attained the age of eighteen years but have not attained

the age of thirty-five years.

7. These Regulations shall apply to procurements by public entities when soliciting tenders from

the following target groups-

(a) small enterprises;

(b) micro enterprises;

(c) disadvantaged groups;

(d) citizen contractors;

(e) local contractors; or

(f) citizen contractors in joint-venture or sub¬contracting arrangements with foreign

suppliers.

8. The purpose of these Regulations is to promote local, national and regional industry and

support socio-economic development by defining-

(a) the target group and eligibility requirements for benefitting from the preference and

reservations schemes;

(b) the percentage margin of the preference, where applicable;

(c) the goods, works and services set aside or reserved for specified target groups;

(d) the regions within which to apply the scheme, and

(e) the means of measuring its effectiveness in achieving the objectives.

Qualification of target groups

9. (1) A person shall be qualified to benefit from the preference and reservations schemes if the

person-

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(a) has the necessary qualifications, capability, experience, and, where appropriate,

resources, equipment and facilities to provide the goods or services intended to be

procured;

(b) has the legal capacity to enter into a contract for the procurement;

(c) is not insolvent, in receivership, bankrupt or in the process of being wound up and is

not the subject of legal proceedings relating to the foregoing;

(d) is among the persons with whom the procuring entity may enter into a contract, not

being precluded from doing so under section 33 of the Act;

(e) is not debarred from participating in procurement proceedings under Part IX of the

Act; and

(f) is registered by the Ministry of Finance under regulation 6.

(2) A person shall not be qualified to benefit from preference and reservation scheme -

(a) as a contracting firm, unless that person is qualified as a local contractor or a citizen

contractor; or

(b) as a, micro enterprise or an enterprise owner by a disadvantaged group unless the

person is registered by the Ministry of finance as such upon application.

(3) Small or micro enterprise or a disadvantaged group wishing to participate in public procurement

shall apply for registration with the National Treasury or the respective county treasury with which

they operate and are located in the form set out in the First Schedule to these Regulations.

Required Documents

For you to qualify, you will need the following documents:

Identity Card(s)/Passport(s).

Business Registration Certificate/ Certificate of Incorporation.

PIN/VAT Certificate.

Tax Compliance Certificate.

Partnership Deed for Partnership Business.

Memorandum/Articles of Association and CR12 mandatory for Registered Companies.

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For Construction Category – Letter/Certificate from the National Construction Authority

Energy Regulatory Commission or any other Authorised Public Technical Body.

Procedure

Facilitation for financing of local purchase or service orders

10. (a) A procuring entity shall facilitate financing of enterprises owned by youth, women or

persons with disabilities that have been awarded contracts, by authenticating their notifications

of tender awards and local purchase or service orders and subsequently entering into an

agreement with the relevant financing institution with conditions that shall include paying the

contracted enterprise through their account opened with the financier. Prompt payments for

performed contracts.

(b) For the purpose of ensuring sustained growth for enterprises owned by youth, women or

persons with disabilities, procuring entities shall make prompt payments for all performed

contracts through electronic media where possible and shall not delay beyond thirty days.

(c) Where delay is inevitable, a procuring entity shall make at least fifty percent part-payments

and shall give a written explanation for the delay to the enterprises referred to in paragraph (a).

(d) Where delay of payments for works performed are likely to happen, a procuring entity may

facilitate invoice discounting arrangements with a financial institution for the purpose of

advancing credit to the affected enterprises stated in paragraph (a).

10. A firm shall be qualified as-

(a) a local contractor, if it is registered in Kenya, or

(b) a citizen contractor, if its owners and shareholders are Kenyan citizens.

(c) Notwithstanding the foregoing, a foreign contractor may apply benefit from the

preference and reservation scheme where it enters into a joint venture or subcontracting

arrangements, as evidenced by written agreement, with a local contractor, where the local

contractor has a majority share.

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General principles

11. A candidate shall be entitled to tender for one preference and reservation scheme at a time in

a procurement proceeding.

a) Where a candidate is entitled to more than one preference scheme, the scheme with the

highest advantage to the tenderer shall be applied.

b) For the purpose of ensuring maximum participation of disadvantaged groups, small and

micro-enterprises in public procurement, procuring entities may unbundle goods, works

and services in practicable quantities pursuant to Section 31(7) of the Act.

c) For greater certainty, unbundled procurement proceedings shall be restricted to

disadvantaged groups, small and microenterprises.

12. (1) No tender securities shall be required from small and micro enterprises or enterprises

owned by disadvantaged groups participating in procurement proceedings.

(2) Notwithstanding paragraph (1), target groups shall be required to complete and sign

the Tender Securing Declaration Form set out in the Second Schedule.

(3) Any bidder from the target group who fails to adhere to the terms of the Tender

Securing Declaration Form shall be liable to debarment pursuant to section 115 of the

Act.

13. An enterprise registered by the Authority in a target group benefitting from the preference

and reservation schemes shall be entitled to such benefits for a period of five years, which may

be renewed once.

14. An advertisement relating to open tender under these Regulations shall state that such tender

is open to small and micro enterprises and to disadvantaged groups registered with the Ministry

of Finance.

15. Procurement of goods, works and services under these Regulations shall be conducted on

competitive procedure among the qualified target groups pursuant to regulation 6.

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16. Procuring entities shall make use of existing framework contracts with disadvantaged groups,

small and micro enterprises wherever appropriate to provide an efficient, cost effective and

flexible means to procure goods, works and services that are required repeatedly or continuously

over a set period of time.

Monitoring of compliance

17. Application of the preference and reservations schemes by procuring entities shall be

monitored by the Authority

Both the National Treasury and PPRA have right to procurement and disposal

information

Parties have right to direct judicial review against investigative or debarment orders by

PPRA.

18. The Authority shall maintain and update a register of all small and micro enterprises and

disadvantaged groups qualified to benefit from the scheme and post it in its website or dedicated

portal.

19. Procuring entities shall integrate preference and reservations schemes in their procurement

plans.

20. A procuring entity shall submit to the Authority the part in its procurement plan

demonstrating application of preference and reservations schemes in relation to the procurement

budget within sixty days after commencement of the financial year.

21. All procurement awards by procuring entities where a preference or reservation scheme was

applied shall be reported to the Authority on a quarterly basis.

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Responsibilities of bidders

It shall be the responsibility of the bidder to ensure the following are adhered to;

i. The bidding documents are secured in a sealed envelope and clearly marked

according to the instructions in the tender document. The envelope should be plain

without brand names or the bidders’ details. The envelope MUST have the

tender/quotation name and number for ease of identification.

ii. The bidder MUST ensure that the bids are submitted before the deadline for

closure of the bid submissions.

iii. The tender/quotation documents must be dropped physically at the Nzoia Sugar

company Ltd quotation/tender box.

iv. The bidder shall be required to adhere to the bidding instructions and

information to bidders. This includes complying with the specifications set, the

evaluation criteria and pricing instructions.

v. The company shall NOT accept/consider any price variations within the first

twelve (12) months of the contract hence the prices quoted must be correct and valid

for at least 12months. After that price variations shall be considered as follows;

Quantity variation 15% for goods / services

Quantity variation 20% works

Resultant cumulative variation should not be more than 25% of the original

contract price

vi. Where a sample was used as a specification, then actual delivery shall match the

sample.

vii. Where requested, samples MUST be approved before bulk delivery.

viii. Bidders MUST ensure the registration certificates for Youth, Women & People

with Disability are valid and if expired seek fresh approval from the National

Treasury. AGPO validity is as follows;

• Youth – 2yrs

• Women – 2yrs

• persons with disability – 5yrs

ix. To facilitate prompt invoice payments, bidders MUST ensure the unit price;

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currency and total cost are correct including taxes applicable. Any support

documents such as stamped delivery note shall be attached to the invoice. The

invoice shall also have the correct address details of the supplier and their

bank details.

Challenges Nzoia Sugar Company faces with special groups

i. Price:-High instances of cancellation of Purchase Orders for purchases awarded since

they are not able to honor their quoted prices. Bidders quote unrealistically low

prices in order to secure award but are then unable to honour their commitment. The

special groups are requested to factor in all related costs into their quotations

and undertake market surveys before submission. Bidders also quote unrealistically

low prices in order to secure award but are then unable to honour their commitment.

ii. Time:-Late delivery of goods, works and/or services since these special groups fail

to factor related logistics costs.

iii. Quality: - Inadequate knowledge on technical specifications i.e machine spares. NSC

shall endeavour to provide complete specifications; however, bidders are also

advised to understand products being requested before quoting and delivery to

avoid rejections. If not sure,it is also important for bidders to provide a sample for

approval before bulk delivery.

iv. Poor responses to request for quotations. NSC encourages bidders to respond to

requests for quotations and it shall ensure fairness and transparency in its

procurement processes and procedures.

Evaluation, pricing and award of bids

Evaluations shall be carried out by the company within the stipulated

period as set out in the Act.

Evaluation committee can also seek clarifications on bid documents

received.

Bidders shall be required to follow instruction on the specifications,

evaluation criteria and pricing schedule and clearly indicate the total

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price quotation including applicable taxes, quantities and unit prices.

The competitive tender shall be the one that meets specifications and all

other evaluation criteria and offers the best price.

Delivery, inspection and acceptance tests

The company has systems in place to ensure that on delivery of the

goods, works or services-

i. Inspections are carried out and where necessary, test the goods received;

ii. Inspect and review the goods, works or services in order to ensure compliance

with the terms and specifications of the contract; and

iii. Accept or reject, on behalf of the procuring entity, the delivered goods,

works or services.

The company shall-

i. Ensure that the correct quantity of the goods is received;

ii. Ensure that the goods, works or services meet the

technical standards defined in the contract;

iii. Ensure that the goods, works or services have been delivered or completed on

time, or that any delay has been noted;

iv. Ensure that all required manuals or documents have been received;

v. Issue interim or completion certificates or goods received notes, as appropriate and

in accordance with the contract.

Payment process and contract closure

Payments shall be linked to the terms and conditions set out in the tender

documents, contract document and any other agreement between the company

and bidder. Duration of invoice payments shall be as set out in the contract

and tender documents. During invoicing, the successful bidder shall be

required to attach all relevant support documents to facilitate payment. These

include;

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Electronic tax register-ETR (a MUST)

Copy of purchase order

Copy of stamped delivery note

Completion certificate if any

And any other support document

Outlawed practice

•Corrupt practice

•Fraudulent Practices

•Collusive Practices

•Conflict of interest

•Disclosure of confidential information

•Splitting of orders

•Procurement contracts with public servants

•Inappropriate influence of evaluations

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Appendix I Application for registration for 30% preference

FIRST SCHEDULE

APPLICATION FORM FOR SMALL, MICRO ENTERPRISES AND

DISADVATAGED GROUP TO SUPPLY GOODS, WORKS AND SERVICES TO PROCURING

ENTITIES

The registration of suppliers is aimed at building a profile for each supplier regarding

information on general particulars of the company. You are advised that it is a serious

offence to give false information on this form.

PART I: DETAILS OF THE APPLICANT

1. Name of Applicant ………………………………………………………………………………………………………………...

2. Physical Address …………………………………………………………………………………………………………………

3. Postal Address: …………………………………………………………………………………………………………………….

4. Postal Code: ………………………………………………………………………………………………………………

5. E-mail: ………………………………………………………………………………………………………..

6. Phone No …………………………………………………………………………..

7. Fax No …………………………………………………………………………………

8. Contact Person ………………………………………………………………………

9. Overview of the enterprise

Type of

ownership

(please tick

one)

[Sole Proprietor][Partnership]

[Limited Company]

[Others Specify]

Number of employees [0-5] [6-25] [26-49] 50-59] [100-250]

Initial Investments (KES)

Total Annual

Sales (Turnover

KES)

Experience in the sector in years

Ownership details

Part 9 (a) — Sole Proprietor

Name in Full Age

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Identity/Passport No.

Part 9 (b) — Partnership Details

Name Nationality ID/Passpor

t No.

% Shares

Part 9 (c) — Registered Company

State the nominal and issued capital of company

Nominal Kshs. ………………. Issued Kshs…………………………..

Directors' Details

Name Nationality ID/Passpor

t No.

% Shares

10. Bank Account Name: …………………………………………………….

11. Branch of the Bank: .........................................………………………….

12. Bank Account Number: …………………………………………………

13. VAT Registration Number: ..............................…………………………

14. Type of business:

AGRIBUSINESS TRADE HOSPITALITY &

ENTERTAINMENT

MANUFACTURING

SERVICES ICT

CONSTRUCTION OTHERS SPECIFY

15. Prepared by (name in capital letter)……………………………………………………….

Title.………………………Signature: ………………………….Date ………………………………….

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PART II: LIST OF ATTACHMENTS

The following attachments are essential for appraisal and you are required to ensure that they

are all attached, failure to which your application may be rejected:

1. Copy of certificate of incorporation/registration;

2. PIN Certificate;

3. VAT Registration Certificate;

4. Valid Tax Compliance/ Exemption Certificate;

5. Original Bank Statement/Bank reference of not more than three months from date

of applying;

6. Copy of certificate of registration with relevant regulatory bodies;

7. Business/Company profile;

8. Evidence of having paid the non-refundable fee for the Application Form;

9. Copies of Annual Return Forms, filed by Limited Companies, the Business Names

for business names (sole trader and partnerships), and a stamped receipt which

bears the Accounts Stamp from the Registrar of Companies/Societies; and

10. Certificate of Registration in a target group issued by the Ministry of Finance

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Appendix II. Tender-Securing Declaration Form [Mandatory]

SECOND SCHEDULE

Tender-Securing Declaration Form [ Mandatory]

[The Bidder shall complete in this Form in accordance with the instructions indicated]

Date: ………………[insert date (as day, month and year) of Bid Submission] Tender No. ……………………………………..[insert number of bidding process]

To: Nzoia Sugar Company Ltd

We, the undersigned, declare that:

1 We understand that, according to your conditions, bids must be supported by a Bid-Securing Declaration.

2 We accept that we will automatically be suspended from being eligible for bidding in any contract with the Purchaser for the period of time of [insert number of months or years] starting on [insert date], if we are in breach of our obligation(s) under the bid conditions, because we –

(a) have withdrawn our Bid during the period of bid validity specified by us in the Bidding Data Sheet; or

(b) having been notified of the acceptance of our Bid by the Purchaser during the period of bid validity, (i) fail or refuse to execute the Contract, if required, or (ii) fail or refuse to furnish the Performance Security, in

accordance with the ITT.

3 We understand that this Bid Securing Declaration shall expire if we are not the successful Bidder, upon the earlier of

(i) our receipt of a copy of your notification of the name of the successful Bidder; or

(ii) twenty-eight days after the expiration of our Tender.

4 We understand that if we are a Joint Venture, the Bid Securing Declaration must be in the name of the Joint Venture that submits the bi, and the Joint Venture has not been legally constituted at the time of bidding, the Bid Securing Declaration shall be in the names of all future partners as named in the letter of intent.

Signed: ………………………………[insert signature of person whose name and capacity are shown] in the capacity of ……………………………………[insert legal capacity of person signing the Bid Securing Declaration]

Name: ……………………………….[insert complete name of person

signing the Bid Securing Declaration]

Duly authorized to sign the bid for and on behalf of: …………………………………………………………………… [insert complete name of Bidder]

Dated on …………………. day of ………………. [insert date of signing]

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Appendix II. Form of Tender

FORM OF TENDER (Mandatory)

Date ……………………………………………………………………………………………

Tender No. …………………………………………………………………………………….

To: …………………………………………………….[name and address of procuring entity]

1. Having examined the tender documents including Addenda

Nos. ………………………………. [insert numbers].the receipt of which is hereby duly

acknowledged, we, the undersigned, offer to supply deliver, install and commission (

…………………………………………… (insert equipment description) in conformity with the

said tender documents for the sum of ………………………………………………………….

(total tender amount in words and figures) or such other sums as may be ascertained in

accordance with the Schedule of Prices attached herewith and made part of this Tender.

2. We undertake, if our Tender is accepted, to deliver install and commission the equipment in

accordance with the delivery schedule specified in the Schedule of Requirements.

3. If our Tender is accepted, we will obtain the guarantee of a bank in a sum of equivalent to

percent of the Contract Price for the due performance of the Contract , in the form prescribed by

………………. ……………….( Procuring entity).

4. We agree to abide by this Tender for a period of …… [number] days from the date fixed for

tender opening of the Instructions to tenderers, and it shall remain binding upon us and may be

accepted at any time before the expiration of that period.

5. This Tender, together with your written acceptance thereof and your notification of award,

shall constitute a Contract, between us, subject to signing of the Contract by the parties.

6. We understand that you are not bound to accept the lowest or any tender you may receive.

Dated this day of……………………………..[signature] …………………..[in the capacity of]

Duly authorized to sign tender for an on behalf of………………………………………………

Note: In accordance with Clause 82 of the Public Procurement and Asset Disposal Act 2015

“The tender sum as submitted and read out during the tender opening

shall be absolute and final and shall not be the subject of correction,

adjustment or amendment in any way by any person or entity.

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Appendix IV. Price schedule

PRICE SCHEDULE

Name of Tenderer _________Tender Number________. Page ____of ______.

1 2 3 4 5 6 7

Item Description Qty Duratio

n

Unit Price Total Price

EXW per item

(cols. 4x5)

Unit Price

of other

incidental

services

payable

Signature of tenderer ________________________________________________

Note: In case of discrepancy between unit price and total, the unit price shall prevail.

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Appendix V. Confidential business questionnaire form

CONFIDENTIAL BUSINESS QUESTIONNAIRE FORM [ Mandatory]

You are requested to give the particulars indicated in Part 1 and either Part 2 (a), 2 (b)

or 2 (c ) whichever applies to your type of business.

[You are advised that it is a serious offence to give false information on this form]

Part 1 – General

Business Name …………………………………………….……………………………………..

Location of business Premises…………………….……………………………………………

Plot No. …………………………… Street/Road ………….……………………………………

Postal Address ………………………………………………. Tel No. ………………….………

Nature of business …………………………………………………………………………………

Current Trade Licence No. …………………………………….. Expiring date …………….

Maximum value of business which you can handle at any one time Kshs ………….

Name of your bankers ……………………………………….. Branch ……………….………

Part 2 (a) – Sole Proprietor

Your Name in full …………………………………………… Age ……………………

Nationality …………….……………….. Country of origin ………………………..

* Citizenship details ……………….……………………………………………………

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Part 2 (b) Partnership

Given details of partners as follows:

Name Nationality Citizenship Details Shares

1. ………………………………………………………………………………………….…………

1 ……………………………………………………………………………………………….

2 ……………………………………………………………………………………………….

3 ………………………………………………………………………………………………

Part 2 (c ) – Registered Company

Private or Public …………………………………………………………………..

State the nominal and issued capital of company –

Nominal Kshs.

Issued Kshs.

Given details of all directors as follows

Name Nationality Citizenship Details Shares

1. …………………………………………………………………………………….………………

2.……………………………………………………………………………………………………..

3.……………………………………………………………………………………………………..

4. …………………………………………………………………………………………………….

5. …………………………………………………………………………………………………….

Date …………….. Seal/Signature of Candidate ……………………..…………………..

22

Appendix VI. Performance Security Form (To be on the Letterhead of the Bank)

To: Nzoia Sugar Company Limited,

P. O. Box 285,

BUNGOMA

WHEREAS ______________________________[name of Contractor] (hereinafter called “the

Contractor”) has undertaken, in pursuance of Contract No. __________________________dated

__________________ 20_____ to supply _____________________________________________ (hereinafter

called “the Contract”).

AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall

furnish you with a bank guarantee by a reputable bank for the sum specified therein as

security for compliance with the Contractor‟s performance obligations in accordance with

the Contract.

AND WHEREAS we have agreed to give the Contractor a guarantee:

THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on behalf of

the Contractor, up to a total of___________________________________________________________

________________________(words)_____________(figures], and we undertake to pay you, upon your

first written demand declaring the Contractor to be in default under the Contract and

without cavil or argument, any sum or sums within the limits of____________________

_____________________________________ as aforesaid, without your needing to prove or to show

grounds or reasons for your demand or the sum specified therein.

This guarantee is valid until the _____ day of __________20_____.

Signature and seal of the Guarantors

[Name of bank or financial institution] ………………………………………………………………………….

[Address] ……………………………………………………………………………………………………………………..

[Date]………………………………………………………………………………………………………………

[Stamp}……………………………………………………………………………………………………………

23

Appendix VII. Case study 1. Determinants of youth access to procurement opportunities

in public sector in Kenya

Karani, Moronge (2017) studied the determinants of youth access to procurement opportunities

in public sector in Kenya: A case of national treasury. The study had a sample population of 160

respondents. The sampling frame for this study included procurement personnel from the five

selected departments. The purpose of the study was to establish the determinants of youth access

to procurement opportunities in public sector in Kenya.

The specific objectives were:-

1. To establish how financial capability influence youth access to procurement opportunities

in public sector in Kenya.

2. To determine how procurement information accessibility influence youth access to

procurement opportunities in public sector in Kenya.

Independent Variables Dependent Variables

Figure 1.1Conceptual framework

Source; Karani, Moronge (2017)

Financial Capability

Access to credit facilities

Tender Payment Period

Youth Enterprise Fund

Access

Youth Access to Procurement

Opportunities in Public Sector Number of contracts awarded to youth

Value of contracts awarded to youth

Percentage of youth beneficiaries

Procurement Information

Accessibility

print media

Company notice boards&

Websites

Radio adverts

Social media

24

Financial Capability

The study findings indicated that majority of the respondents stated that to the great extent that

the conditions were too stringent to access government funds to support youth to access

government procurement opportunities. To access the funds from the government required

tight security thus affecting youth to access government procurement opportunities. There was

corruption in giving out funds thus hindering youth to access government procurement

opportunities. The process is too technical to access funds hindering youth to access

government procurement opportunities. They do access funds from the commercial banks,

cooperative societies, and micro finance to access overnment procurement opportunities. There

was unfavorable bank policy which prohibits access to funds to support youth to access

government procurement opportunities. The tough conditions for youth business hinder them

from accessing government procurement opportunities ( Karani, Moronge ,2017).

Procurement Information Accessibility

The study findings indicated to a great extent that the majority of respondents indicated they

accessed tender information from newspaper, radio and television advertisements. They

accessed tender information on government procurements from social media advertisements.

The respondents indicated that they accessed tender information from newspaper, radio and

television advertisements. The government did public widely to the available tender

information. The information was too technical thus affecting accessing tender

information. There was difficult communication language thus affecting accessing tender

information. Mostly the medium used was inaccessible to much thus affecting access to the

tender information (Karani, Moronge ,2017).

Conclusions of the Study

Based on the study findings, the study concluded that youth access to procurement

opportunities in public sector was affected by financial capability and procurement information

accessibility were the major factors that mostly affect youth access to procurement opportunities

25

in public sector in Kenya.

The study concluded that a financial capability was the first important factor that affected

youth access to procurement opportunities in public sector. The regression coefficients of the

study showed that financial capability had a significant influence on youth access to

procurement opportunities in public sector. This showed that financial capability had a

positive influence on youth access to procurement opportunities in public sector (Karani,

Moronge 2017)

The study concluded that procurement information accessibility was the second important

factor that affected youth access to procurement opportunities in public sector. The

regression coefficients of the study show that procurement information accessibility had a

significant influence on youth access to procurement opportunities in public sector. This

showed that procurement information accessibility had a positive influence on youth

access to procurement opportunities in public sector (Karani, Moronge 2017).

Recommendations of the Study

Following the conclusions drawn from a determination of how financial capability affected

youth access to procurement opportunities in the public sector, this study recommends that

the government should increase its funding opportunities to youth to boost their business

activities. Government agencies charged with the responsibility of funding youths,

commercial banks and other financial institutions should relax their lending conditions to

enable many youths who lack some of the requirements like securities, guarantors, years of

experience, operational bank accounts and many more access those funds (Karani, Moronge

2017).

26

Appendix VIII. Case study 2. Factors influencing women participation in government

procurement: A case of Nyeri central sub-county, Kenya.

Given the fact that governments are the largest buyers in any economy, government procurement

offers a unique, financially sustainable avenue to empower women and reduce poverty. Public

procurement as a tool to promote participation by women-owned businesses is therefore,

compelling from a developmental and economic perspective. Increasing opportunities for more

small and medium-sized enterprises (SMEs) to engage in the delivery of goods and services can

result in improved outcomes for alleviation of poverty and increasing gender equality, given that

women-owned businesses are disproportionately in this sub-sector of the economy. In this

regard, governments including Kenya have institutionalized different measures to increase access

to government procurement by different target groups, including women. However, despite the

numerous opportunities available in government procurement, few women effectively participate

in this sizeable market. The main objective of the study was to establish factors influencing

women participation in government procurement in Kenya. The specific objectives were to

assess how economic, socio-cultural, governmental and technical factors influence women

participation in government procurement. Data was collected from 395 women respondents from

Nyeri Central Sub-County using self administered questionnaires; and interview guides were

used for procurement officers, WEF officers, Uwezo fund officers and AGPO officers (Makena

and Gakuru ,2016)

Purpose of the Study

The main purpose of this study was to establish factors influencing women participation in

government procurement in Kenya.

Objectives of the study

The specific objectives of the study were:

(i) To determine how economic factors influence women participation in government

procurement in Kenya.

(ii) To establish to what extent socio-cultural factors influence women participation in

government procurement in Kenya.

27

(iii) To assess how governmental factors influence women participation in government

procurement in Kenya.

(iv) To determine in what ways technical factors influence women participation in government

procurement in Kenya.

Figure 2. Conceptual framwork

Source: (Makena and Gakuru ,2016)

ECONOMIC FACTORS

Access to financial capital

Tender sizes

Price Competition

SOCIO-CULTURAL

FACTORS

Income levels

Education levels

Sensitization and

Awareness

� Gender systems

GOVERNMENTAL FACTORS

Legislation

Capacity

building

programme

s

Corruption

TECHNICAL FACTORS

Tender process

Qualification

requirements

Red tape/bureaucracy

WOMEN

PARTICIPATION IN

GOVERNMENT

PROCUREMENT IN

KENYA

Tender application by

women-owned

businesses

Tender awards to

women-owned

businesses

Women-owned

businesses

registered with

AGPO

Business Experience

28

Findings

1. Economic factors including access to financial capital, price competition among

bidders and Government contracts value; affect the ability of women-owned

businesses to participate in public procurement. The biggest economic challenge

facing women is access to financial capital. This has continued to limit the capacity

of women to participate in Government procurement. Other economic challenges

facing women in Government procurement include large contract sizes, price

competition among bidders, and failure by procuring agencies to promptly pay

women-owned businesses for gods and services rendered (Makena and Gakuru ,2016)

2. Socio-cultural factors such as social systems and family roles affect women

participation in Government procurement to a great extent. The social setup of a

community determines whether women are able and willing to participate in

Government procurement. The social setup determines what type of business a

woman can engage in and how. Nonetheless, women in the study area are reasonably

educated and relatively aware of Government procurement. However, lack of

information about specific tender opportunities is still a challenge for most

women. Women in the study are aware of the general aspects of public procurement,

but lack specific information that can result in meaningful business for them in

Government procurement (Makena and Gakuru ,2016)

3. Governmental factors such as procurement legislations and other policies, capacity

building strategies as well as corruption affects women participation in public

procurement to a large extent. It is not just enough that laws and programs are put

in place; the same should be well implemented and monitored to ensure the

envisaged objectives are actually achieved. What is provided for in law and theory

must be seen to be happening in practice. Corruption is a major challenge facing

women in Government procurement. This has resulted in women not getting their

share of public procurement opportunities (Makena and Gakuru ,2016)

29

4. Technical factors such as qualification requirements, tender process and Government

bureaucracy individually and collectively affect women participation in public

procurement. The more complicated these systems are the more women they lock

out of public procurement. Overly complex and burdensome tender procedures,

unreasonable technical and financial qualification requirements, insufficient time to

assemble tenders, lack of feedback from procuring agencies are among the challenges

that women-owned businesses continue to face in their quest to participate in

Government procurement (Makena and Gakuru ,2016)

Conclusion

1. Government should extend loan facilities to women as individuals as opposed to

groups. This will facilitate women individual entrepreneurial abilities. Government

can also permit teaming arrangements, where two or more firms tender together for

a procurement contract. Individual firms may not meet the technical and financial

qualification requirements, but they could qualify as a team. Government can further

ensure prompt payment for goods and services delivered or pay interest on delayed

payments. This lessens the financial strain on the SMEs (Makena and Gakuru ,2016)

2. The Government should increase training, sensitization and capacity building

programs for women entrepreneurs to enable them develop entrepreneurial abilities

and attitudes. This will facilitate effective participation in Government contracts.

Government should also improve access to information on Government

procurement opportunities by women by giving information about tender

opportunities directly to women business organizations and other

associations that support women entrepreneurs which can share the information

with their members (Makena and Gakuru ,2016)

3. Government should ensure existing loopholes in procurement related legislations

are sealed appropriately so that the contemplated gains are achieved in reality. In

30

addition, Government should take measures to reduce corruption in public institutions

so that Government procurement process becomes more transparent (Makena and

Gakuru ,2016)

4. Government should simplify, clarify and standardize the tender process and

documentation, both administratively and through use of easily understood common

language. This has the potential to lower the transaction costs of contracting. Also,

procuring entities should carry out prequalification process on a rolling basis as well

as share prequalification information among them so that one does not have to

prequalify for each entity separately. Procuring entities should also strive to provide

constructive and clear feedback on lost bids. This would improve applicants’ future

chances of winning bids. Feedback provides unsuccessful bidders with invaluable

information about the evaluated strengths and weaknesses of their tenders and enables

them to better compete for future contracts. Feedback also helps ensure the

procurement process is fair and transparent (Makena and Gakuru ,2016)

5. Women-owned businesses should be more vigilant and proactive about their rights

and opportunities as well as policy interventions already in place targeting them.

Further, women- owned businesses should deliver high quality goods and services so

as to increase their chances of getting contracts in future (Makena and Gakuru ,2016)

31

References

Government of Kenya (GoK). (2015). Review of the Implementation of the Beijing Platform for

Action.Nairobi, Kenya: Ministry of Devolution and Planning.

Institute of Economic Affairs-Kenya. (2008). Profile of Women's Socio-Economic Status in

Kenya. Nairobi, Kenya: Institute of Economic Affairs.

International Trade Centre. (2014). Empowering Women through Public Procurement. Geneva,

Switzerland: International Trade Centre.

Karani, Moronge (2017) studied the determinants of youth access to rocurement

opportunities in public sector in Kenya: A case of national treasury. Strategic

journal of Business and change management, Vol. 4, Iss. 2 (62), pp 1089 -

1107, June 22, 2017, www.strategicjournals.com, ©strategic Journals

Makena and Gakuru (2016), Fctors influencing women participation in

government procurement: a case of nyeri central sub-county, kenya

Public Procure and Disposal Act, 2005

Public procurement and Asset Disposal Act, 2015.

Public procurement and disposal regurations, 2006.

The public procurement and disposal (preference and reservations) regulations, 2011

The public procurement and disposal (preference and reservations) regulations, 2013