Procurement Procedures

Proper and successful Besi Pa’e procurement rests upon certain core principles of behaviourTThe Five Pillars of Procurement.

They are best described as pillars because if any one of them is broken the procurement system falls apart.

The Five Pillars are:

  1.  VALUE FOR MONEY;
  2. OPEN AND EFFECTIVE COMPETITION;
  3. ETHICS AND FAIR DEALING;
  4. ACCOUNTABILITY AND REPORTING;
  5. EQUITY.

 

These Five Pillars and prescribe a minimum set of standards that are to be observed.


1) VALUE FOR MONEY


This is an essential test against which an NGO must justify a procurement outcome. Price alone is often not a reliable indicator and NGOs will not necessarily obtain the best value for money by accepting the lowest price offer that meets mandatory requirements. Best value for money means the best available outcome when all relevant costs and benefits over the procurement cycle are considered. The procurement function itself must also provide value for money and must be carried out in a cost-effective way.

Procurement organisations, whether centrally or locally located, should:

  1. Avoid any unnecessary costs and delays for themselves or suppliers;
  2. Monitor the supply arrangements and reconsider them if they cease to provide the expected benefits; and
  3. Ensure continuous improvement in the efficiency of internal processes and systems.


2) OPEN AND EFFECTIVE COMPETITION


This requires:

  1. A framework of procurement laws, policies, practices and procedures that is transparent, i.e. they must be readily accessible to all parties;
  2. Openness in the procurement process;
  3. Encouragement of effective competition through procurement methods suited to market circumstances; and


NGOs need to apply effort and research to get the best possible outcome from the market by ensuring that:

  1. Potential suppliers have reasonable access to procurement opportunities and that available opportunities are notified in all possible means of communication;
  2. Where market circumstances limit competition NGOs recognise that fact and use procurement methods that take account of it;
  3. Adequate and timely information is provided to suppliers to enable them to bid;
  4. Bias and favouritism are eliminated;
  5. The costs of bidding for opportunities do not deter competent suppliers;and
  6. Costs incurred in promoting competition are at least commensurate with the benefits received.


3) ETHICS AND FAIR DEALING 


In procurement, if all parties comply with ethical standards they can:

  1. Deal with each other on a basis of mutual trust and respect; and
  2. Conduct their business in a fair and reasonable manner and with integrity.


All NGO staff associated with procurement, particularly those dealing direct with suppliers or potential suppliers, are required:

  1. To recognise and deal with conflicts of interest or the potential therefore;
  2. To deal with suppliers even-handedly;
  3. To ensure they do not compromise the standing of the NGO through acceptance of gifts or hospitality;
  4. To be scrupulous in their use of public property; and
  5. To provide all assistance in the elimination of fraud and corruption (see also


4) ACCOUNTABILITY AND REPORTING


This involves ensuring that individuals and organisations are answerable for their plans, actions and outcomes. Openness and transparency in administration, by external scrutiny through public reporting, is an essential element of accountability.


Within the procurement framework:

  1. Project Managers are accountable to their Representatives for the overall management of procurement activities;
  2. Heads of Administration are accountable to Project Managers for various high-level management and co-ordination activities;
  3. Individual procurement officers are accountable to Heads of Administration, and to their clients, for the services they provide; and
  4. All people exercising procurement functions must have regard to these procedures and are accountable to management.


5) EQUITY


The word 'equity' in the context of the Procurement Procedures means the application and observance of policies which are designed to advance persons or categories of persons disadvantaged by unfair discrimination. This fifth pillar is vital to public sector procurement in any country. It ensures that NGOs are committed to economic growth by implementing measures to support industry generally, and especially to advance the development of Small, Medium and Micro Enterprises as well as sometimes Disadvantaged Individuals.


Procurement Procedures have all to be based on, and aiming at:

  1. Advance the development of Small, Medium and Micro Enterprises as well as sometimes Disadvantaged Individuals;
  2. Promote women and physically handicapped people participation;
  3. Create new jobs;
  4. Promote local enterprises in specific provinces, in a particular region, in rural areas; and
  5. Support the local product.


No public procurement system should be operated if it is not founded on this pillar.





Download 09b ANNEX NO 9b - PROCUREMENT PROCEDURES

 

 

Download 09e ANNEX NO 9e - ATTACHMENTS TO PROCUREMENT PROCEDURES


Download 09d ANNEX NO 9d - GENERAL CONDITIONS SERVICE CONTRACT EDF