THE PROCUREMENT/BIDDING PROCESS/CYCLE

THE PROCUREMENT/BIDDING PROCESS/CYCLEBY:BEINEBYABO ADRIANUMI CONSULTANTTEL:0772-404715EMAIL:beineadrian@yahoo.co.ukADRIAN.B1

2Introduction/Meaning of bidding The procurement process is also referred to as the procurement cycle. Others call it the procurement life cycle.Bidding is an offer (often competitive) of setting a price one is willing to pay for something. A price offer is called a bid.

ADRIAN.B23The Procurement Process The Procurement Process is a formal way by which products (goods, services, or works) are acquired by an organization from external suppliers.The procurement process begins with planning and ends with review of the performance of contract which results into Contract Close out or Contract termination.In the public sector, all the steps to be carried out are laid out in the PPDA Regulations of 2003 A PDE shall apply to the PPDA, if there is a need to deviate from laid out procedures. ADRIAN.B3Procurement management processesPlan Purchases and Acquisitions (Procurement Planning)Plan Contracting (Solicitation planning)Request Seller Responses (Solicitation)Select Sellers (Evaluation and award)Contract ManagementContract Administration Contract Closure/Termination

ADRIAN.B4ROLES AND RESPONSIBILITIES IN THE PROCUREMENT CYCLE SUMMARIZEDProcurement Requisition. Filled with clear Specs/TOR/SOWReview of: Specifications/TOR/SOW Procurement method Evaluation CriteriaPotential supply marketPreparation of Bidding Documents e.g: Instruction to Bidders Price Schedule Terms and ConditionsAdvertisement and Invitations for BidsReceipt and opening of bidsSign ContractCommunicate AwardAdministrative reviewContractManagement Delivery PaymentUser DepartmentProcurement & Disposal UnitAccounting OfficerReview of Evaluation report (approval or rejection)Contracts CommitteeBoards / CouncilsEvaluation Committee (ADHOC)Confirmation of Availability of fundsContractMonitoring4

Procurement Plan and Budget Award of ContractProcurement method ApprovalApproval of Bidding Documents1Evaluation of bids

ContractPerformanceEvaluation

Produced by Public Procurement and Disposal of Public Assets Authority (PPDA), 1 Pilkington Road, Workers House 14th Floor, P.O Box 3925, Kampala, Email; info@ppda.go.ug Tel. 041- 311100, website: www.ppda.go.ugNote: In case this cycle is not adhered to, please inform the Accounting Officer or PPDA.

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Boards / Councils5ADRIAN.B

Plan Purchases and Acquisitions/Procurement Planning

The Plan Purchases and Acquisitions process identifies which needs can best be met by purchasing or acquiring products, services, or results outside the organization, and which needs can be accomplished by the implementation team during project execution. This process involves consideration of whether, how, what, how much, and when to acquire.Plan Purchases and Acquisitions process is a part of "Planning Phase".ADRIAN.B6Plan Purchases and Acquisitions/Procurement PlanningProcurement Planning is a process of determining the procurement needs of an entity and the timing of their acquisition and their funding such that the entities operations are met as required in an efficient way. It answers the following questions:Why do you want to procure ?What do you want to procure ?When do you want to procure it?Where do you want to procure ?How do you want to procure ?Who does the procurement?

ADRIAN.B7Plan Purchases and Acquisitions/Procurement PlanningAre the resources available and from where?When are you to use the procurement? (Time to procure)When will resources be available?How can you be more efficient in the procurement process?

ADRIAN.B8

Plan Contracting/Solicitation Planning

The Solicitation Planning process prepares the documents needed to support the Request Seller Responses process and Select Sellers process.Plan Contracting process is a part of "Planning Phase".Statements/Standard bid documents are prepared i.e.

ADRIAN.B9SBDSBidding ProceduresStatement of requirementsContract ConditionsInstruction to BiddersBid Data SheetEvaluation and Qualification CriteriaBidding FormsStandard contractsNon-disclosure agreements

ADRIAN.B10Request Seller Responses (Solicitation/Advertising)Advertise in News papers, Journals, Magazine, ElectronicallyRFPs/RFQs ADRIAN.B11

Select Bidders (Evaluation and award)

(i)Preliminary evaluationIt is conducted to determine:Eligibility, Bidders qualifications Administrative complianceResponsiveness.Evaluation is done on pass/fail basisOnly those that meet all the preliminary requirements are considered for the next stage.

ADRIAN.B12Some issues to considerSigned bidIndication of lot numberProper addressing of the bidNumber of copies submittedPhysical address

ADRIAN.B13

Select Bidders (Evaluation and award)

(ii)Technical Evaluation : Fixed AssetsFinancial abilityGeneral experienceSpecific experience Cost (Bid price)Commitment to qualityEthical considerations (Bankruptcy, blacklists, convictions)Environmental factors (Green issues,fumes,waste disposal)

ADRIAN.B14

Select Bidders (Evaluation and award)

Other considerations:Technology/machineryLegal statusHR CapacityLocation/proximityLabour relationsHealth and safety policiesCross cutting issues

ADRIAN.B15

Select Bidders (Evaluation of Consultancies/Services ADB method)

Specific experience (Relevant) 15-25%General experience of consultants 5-15%Proposed Methodology 25-35%Key Staff proposed 35-55%Knowledge Transfer 0-10%Participation by nationals 0-10Total 100%

ADRIAN.B16Generic technical considerationsIncome taxValue added taxTrading licenseCertificate of registrationArticles and memorandum of associationManufacturer's authorizationCompany profilePowers of attorneyInsurance coverADRIAN.B17Technical considerations continuedQuality assurancePhysical addressEquipmentExperienceAudited accountsKey proposed staff/personnelInsurance cover

ADRIAN.B18

Select Bidders (Evaluation and award)

Financial EvaluationCheck arithmetical errorsChange currencyCheck bid bondCheck CIF issuesCheck bid price/offerADRIAN.B19Evaluation methodologiesQuality and Cost Based Selection (QCBS) Quality Based Selection (QBS)Fixed Budget SelectionLeast Cost SelectionTechnical Compliance Selection

20ADRIAN.BAwarding of tenders/ContractsDone by the Contracts committeeBases decision on the recommendations of Evaluation committee.Contracts Committee recommends to the Accounting Officer.ADRIAN.B21

Contract Management & Contract Administration & Close out

Contract Administration (Setting up systems, dealing with bonds and guarantees, document management, work on the contract variations, deal with concessions, progress reporting and payments to contractors.Contract close out (accepting deliverables, completion and settlement of the contract, resolving outstanding issues, verification for work done and closure or termination.

ADRIAN.B22Contract close outContract close out (accepting deliverables, completion and settlement of the contract, resolving outstanding issues, verification for work done and closure or termination.

ADRIAN.B23ENDTHANK YOUADRIAN.B24