Telecom Procurement

Procurement

What is Procurement?

Procurement is the acquisition of goods and services at the best possible total cost, in the right quantity and quality, in time and from the right source for the direct benefit and use of the organization

Procurement Policy:

• It is an objective of telecom industry to fully plan all

project activities and procure all necessary materials,

supplies and services in a timely manner.

• To ensure cost-effective management of sponsor

funds through responsible procurement guidelines.

Procurement Mechanism:

Requisition

Request for quotation

Bid Analysis

Purchase order

Goods receiving note

Payment of bill/invoice

1. Beginning the procurement process at the start of the project:

• Sealed bids received • Must be opened by procurement

committee members together (at least two)

• Bid-analysis sheet prepared• Procurement committee’s review

and approval

Six Best Practices of Telecom Industry

Purchase order

• Must be issued for $ 500 (equivalent and above)

• Clear specifications and details• Delivery address • Delivery time (end date)• Payment terms• Other terms and conditions e.g.; advance

payment/performance bond

Procurement Mechanism: (continued)

Goods Receiving Notes (GRN)

• Prepared by administration

• Receipt by inventory for assets

• Receipt or inspected by requestor

(for quality check as per specifications)


Bill Payments: • Bill from supplier/vendor supported by

copies of the following:

– Request form (IPR)– Bid analysis cover sheet (where

applicable)– Purchase order pink copy (where

applicable)– GRN pink copy– Payment Request Form


Requisitioning Dept.Complete Requisition – Full Item specification/quantities required with end dateEstimated Prices, Budget Codes to ChargeSignatures of relevant signatories for approval of Requisition by the requesting sector/department

Procurement Dept.Looks for at least 3 quotations

Prepare a canvass sheet (bid-analysis) to compare prices and get this approved by

the appropriate signatory.Prepare Purchase order

with relevant details and specification as per bid-analysis and requisition form. Issue

Purchase order approved by relevant signatories as per approval limits

Administration Department.

Receive Goods, and issue GRN

Original GRN (pink) is passed to procurement

to include with the other documentation

for payment

Invoice/bill of supplier compared with the

PO/GRN and sent to finance with copies of

PO, GRN, Bid-analysis sheet attached

together for payment

Mapping Procurement Procedures

After PurchaseCheck documentation

and CalculationsApprove Payment

Make payment and file document

Finance / Grants Dept.Before purchase

check calculationscheck budgetsignature by

Grants/Finance

Exceptions to Three Quotations or Tender Process

Where three quotations are required, but procurement department after checking available option decides that it is not practicable or not appropriate to obtain three quotations, a request for waiver of the three quotations requirement may be prepared and submitted to the DDAF and CD for approval. If this request is approved, a single written quotation may be accepted.

A request for waiver of the requirement for three quotations will normally only be approved when:

• The goods or services are of a special nature and it is not possible to obtain quotes from more than one supplier;

• There is only one available approved supply source

Exceptions to Three Quotations or Tender Process

Long Term ContractsRoutine items/services may be purchased on long term contract basis to take advantage of low prices and to reduce time and unnecessary paperwork. Following items may be purchased from one or more selected suppliers under a one year fixed price contract:– Office supplies– Computer supplies– General consumables– Gasoline etc.– Service contracts (e.g.; janitorial services,

travel agents, guest houses, security services and insurances, etc)

Note: USAID rules and regulations require that vehicle rental contracts must not exceed 180 days during the life of program/project.

Procurement Committee:

• Minimum three members

• Rotated every six months.

• Purchases equal to or above

$ 1,000

Procurement Committee would

1. Cross check quotations

2. Review bid analysis

3. Outsourcing of technical advice

4. Working notes/minutes with reference to

bid-analysis

5. Select lowest-cost vendor/supplier

with regard to

• Delivery time

• Quality of material

• Other terms & conditions

Procurement Committee : (continued)

Compliance checks for new vendors/service

providers before the issuance of PO is must

(equivalent or above $ 25,000)

Done through Home Office

• A written notice will be issued to all staff while

preparation of comparative statement and

before issuance of purchase order.

• Conflict of interest (declaration, if any) must

be documented.

Compliance Policy & Conflict of interest

Total value in USD

RQ invitation

Quotes(to be received

in sealed envelopes if

amount is more than USD 500)

P O Person responsible

Less than USD 500

Phone/fax/email/ collection by supplier

N/A X Procurement department/assigned procurement person

501-1,000 Phone/fax/email/ collection by supplier

Min 3 √ Procurement department/assigned procurement person

1,001-2,500 Phone/fax/email/ collection by supplier

Min 3 √ Procurement department /assigned procurement person + Procurement committee

2,501-5,000 Phone/fax/email/ collection by supplier

Min 3 √ Procurement department/assigned procurement person + Procurement committee

5,001-25,000

Phone/fax/email/ collection by supplier

Min 3 √ Procurement department/assigned procurement person + Procurement committee

25,001-250,000

Advertise in national newspaper

Min 3 √ Procurement department/assigned procurement person + Procurement committee + compliance check

USD 250,001 or

more

Prequalification of suppliers through advertisement in national newspaper

Min 3 √ Procurement department/assigned procurement person +procurement committee+ compliance check

Procurement Approval Matrix

IPRRaised by requesting department and

approved by relevant authorities

Approved IPR received in procurement department and entered in Tracking Sheet and Register

If estimated amount of requested items are below USD 500, after receiving telephonic quotations

from suppliers Items are ordered.

If estimated amount of requested items are above USD 500, and

below USD 25000 request for quotations (RFQ) is

issued to potential suppliers and after receiving quotations

Bid analysis is prepared and purchase order (PO) is issued to

the supplier selected/recommended by

procurement committee

If estimated amount of requested items are above USD 25,000

IFB/Tender notice is published in newspapers, bidding documents

are issued to the interested suppliers and after receiving bids a Bid analysis is prepared and

purchase order (PO) is issued to the supplier

selected/recommended by procurement committee

Requested items are received at the required location by the Inventory staff, GRN is issued

Bill along with a copy of complete trail is forwarded to finance for bill payment.

Planning & Budgeting

End of Part 1

Save the Children International

Procurement Policy

Policy Statement

Save the Children International will obtain goods, construction works and services that provide good value (balancing quality with cost) for our programs and those we serve, through procurement processes which are fair, transparent, and in compliance with donor rules and applicable laws.

If legislation or donor rules are stricter than the rules or guidance in this policy, then the stricter rules must be followed in addition to these rules.

SCI Procurement Procedures• All procurement must be transparent, with equal treatment

of suppliers, without discrimination or favouritism.

• If legislation or donor rules are stricter than the rules or guidance in this policy, then the stricter rules must be followed in addition to these rules.

• Procurement must only be carried out if there is a budget for the proposed procurement and it is approved by the relevant budget holder in writing (which may be email), as set out in the Delegation of Financial Authorities.

• No procurement commitment should be made for a longer period than appropriate having regard to the life cycle of the grant, risk of project cancellation, and other external factors.

• Threshold values: The table sets out the procedures that need to be applied relative to the financial value or thresholds when carrying out a single purchase, procurement contract or framework agreement. – The values apply to the estimated value of goods or services

to be procured over the life of a single procurement contract or framework and are not an annual value.

– The threshold values must be used, although stricter limits may be put in place locally if appropriate.

– Purchases must not be split to avoid the appropriate procurement procedure.

SCI Procurement Procedures (continued)

Procedure Goods & Services

Open International Tender$500,000 +

($1,000,000 + for construction)

Open Tender$100,001-500,000

($100,001 – 1,000,000 for construction)

3 written formal quotes $5,001-100,000 3 quotes (written, catalogue)

$1,001-5,000

1 quote

(Verbal, written, catalogue)

$0-1,000


• Local procurement is preferred, if it is better value for money and quality can be assured, to promote the local economy and have positive impact on the environment.

• Reasonable time must be allowed to carry out the required procedure and to give suppliers reasonable time to prepare and submit their quotations or bids. Open tenders must allow a minimum of 21 days for supplier bid submissions.

• Staff involved in the procurement process must declare in writing to the budget holder (or if they are the budget holder, to their line manager) any personal connection to suppliers before supplier selection to avoid any conflict of interest and excuse themselves from the procurement process.


• A decision on specifications, quality standard and the key criteria for selecting suppliers should be taken before the procurement, and requirements should be outlined in the request for quotations or tender documents to enable genuine competition.

• The quality standards and specifications of the goods or services must conform to relevant international safety standards, see guidance notes.


• Procurement must be awarded to the supplier offering the best value for money after considering areas such as:– Price;– Quality; – All associated costs (including transport, storage, customs, local

taxes, additional costs due to long lead-times or delays);– Timeframe and availability;– Reliability and after sales service;– Financial and technical capacity;– Use of local resources where possible and appropriate; and– Donor requirements, with particular attention to rules of

nationality and origin.


• For single purchases, contracts or framework agreements where the estimated value requires a formal quotation procedure or tender, a procurement committee must be formed to evaluate the bids. This committee should be made up of a minimum of 3 staff to ensure accountability. The committee will select the supplier which they believe provides the best value for money based on the evaluation criteria as listed above and advise the budget holder.

• Any proposal put forward by a supplier that is known to have engaged in corrupt, fraudulent, collusive or coercive practices must be rejected.

• Appropriate due diligence checks must be carried in line with level of potential risk (see guidance below).


Bribery

• Bribery of any sort is unacceptable. Suppliers must be discouraged from giving gifts of goods or services to individuals working for or with Save the Children, their family or friends, and high value gifts should not be accepted.

Exceptions

• In the specific situations listed on the next slide the thresholds need not be followed, to the extent that it is impractical in those circumstances. In these cases prior written approval must be obtained. The County Director can approve exceptions under the value of $50,000, but must report these exceptions to the Regional Director; over this, the program must obtain prior written approval of the person who has authority above the Country Director within the delegation of financial authorities. In all cases of exceptions donor approval must also be obtained, if applicable. The reason for the exception must be fully documented and retained with the written approval.

Exceptions(continued)

• When following the process would prevent SCI meeting urgent humanitarian needs (e.g. lifesaving in the initial days of an emergency response).

Note: for declared emergencies higher thresholds have been fixed

• Where following the process would cause a delay that would compromise security of Save the Children staff and assets;

• If the time given for the procurement is too short due to factors outside SCI control (e.g. late donor funding, delays due to security) and will result in an inability to operate. Failing to plan is not an acceptable reason for an exception;

• Where there is a local restriction on imports which prevents international procurement;

• Where there are a limited number of suppliers in the market or a sole source supplier situation;

• Where a donor wishes to impose an obligation on Save the Children which is in conflict with (as opposed to stricter than) this policy;

• When the goods or services are needed to complete a project and it would not be appropriate to get a different supplier to finish it as to do so would mean the project could not be completed.

Exceptions(continued)

Exceptions must not be requested to:

• Avoid competition;

• Reduce administration;

• Give further work to a supplier because they have won a tender before.

Payment:

• A clear authorisation and audit trail must accompany the payment for any goods or services procured and a record should be kept of the procurement at the relevant office, in line with document retention, storage and disposal policy.

Breaches

• Breaches of this procurement policy must be reported and investigated. Serious and consistent breaches may be considered malpractice and, if these are discovered or suspected, must be dealt with in accordance with fraud and dishonesty and code of conduct policies using the appropriate disciplinary procedures.

THANK YOU

Telecom Procurement

Documents

Transcript of Telecom Procurement