procurement plan
DESCRIPTION
East and Southern Africa, Procurement PlanTRANSCRIPT
Procurement PlanProcurement Plan
Dec 2010
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Procurement PlanningProcurement Planning
Accurate & realistic planning & prioritisation of needs is:an essential pre-requisite to effective procurement a key tool for monitoring project implementation
Best practice procurement takes time & the process has various steps
Preparedness & preparation are crucial for successful procurement
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Procurement Procurement PlanningPlanning At the time of negotiation of each project, the
borrower/recipient, in consultation with IFAD, must establish an 18-month procurement plan, which must include, as a minimum, for each activity:
• brief description of each procurement activity to be undertaken during period
• estimated value
• method of procurement to be adopted
• method of review IFAD will undertake
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Procurement PlanningProcurement Planning
Where national procurement plan templates exist & are agreed by IFAD as suitable, such templates should be used
If no such templates exist, IFAD will adopt those from other international financing institutions with which the borrower/ recipient is familiar & which are in use for other projects
Borrowers/recipients are required to keep plans updated frequently to reflect changes to project or timescales
IFAD’s review of & no objection to procurement plans is compulsory under all financing agreements directly supervised by IFAD
Procurement at Start-UpProcurement at Start-Up
Ideal Structure
Coherence with project objectives & annual work plan
Financial estimates in line with AWPB & overall funds allocation
Procurement methods in line with regulatory framework
Realistic timing & scheduling of procurement activities
Desired Features of a Procurement Plan
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Review of Procurement Plan Review of Procurement Plan (1)(1)
The initial plan covers 18 months (thereafter: 12 months) & shows for each procurement action:
financing category & component, financing rate
procurement method
estimated cost & quantities
IFAD review requirement
anticipated timeline for the entire process
Procurement actions are grouped according to categories (goods/ works/ services) for each component
Within each category, procurement actions are grouped into coded lots or packages for increased competition, efficiency & better prices
Model Procurement Plan & Templates
Ideal Structure
Annex 1 - Model of Procurement plan
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Review of Procurement Plan Review of Procurement Plan (2)(2)
Procurement actions are relevant to project objectives
Nature and quantity of goods/works/services are consistent with appraisal
report (detailed cost tables)
Nature and quantity of goods/works/services are consistent with activities
in the annual work plan
Coherence with project objectives and annual work plan
Estimated costs for each procurement action are reasonable
Cost estimates are properly reflected in the annual budget
Cost estimates are within overall project funds allocation (by expense
category)
Financial estimates in line with annual budget and overall funds allocation
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Review of Procurement Plan Review of Procurement Plan (3)(3)
Compliance with Financing agreement +/ or LTB
Compliance with the IFAD procurement guidelines & national regulations
Procurement methods in line with regulatory framework
Anticipated timeline for each procurement action (from preparation of
bidding documents to signature of contract) is realistic
Anticipated delivery dates of goods/ works/ services are consistent with
physical targets as per the AWPB
Realistic timing and scheduling of procurement activities
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Checklist procurement plan
Review of the Procurement Review of the Procurement PlanPlanCoherence
General coherence: is the nature & quantity of goods/ works/ services generally consistent with the nature of project activities/components as per design report?
Coherence with AWPB: do the nature & quantity of goods/ works/ services appear consistent with the activities in the AWPB? Are the costs of procurement adequate & reflected in the budget?
Procurement Packaging
Is the procurement systematically & logically grouped according to procurement categories (goods/ works/ services)?
Within each category, have similar or related items been combined in a single package where possible & sensible?
Has packaging been done in a way that facilitates the use of the most competitive and efficient procurement method & that ensures best value for money? Note specifically “split packaging” (e.g. several small, similar packages designed to circumvent threshold for competitive procurement methods); packaging that limits competition by de facto locking a series of contracts to the winner of 1st contract (e.g. separate package for delivery of machinery followed by future packages for spare parts & maintenance)?
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Review of the Procurement Review of the Procurement PlanPlan
Procurement Method
Is the selection of procurement methods in compliance with provisions of Schedule 4 of Financing agreement +/or LTB ?
Procurement Schedule
Do the time estimates indicated (for the individual procurement method) seem realistic?
Is the procurement schedule consistent with implementation schedules in the AWPB (does the delivery of goods, works & services correspond to physical targets in the work plan)?
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After the Procurement Plan - After the Procurement Plan - ContractContract Contract contents – all pertinent deliverables, timing, deadlines,
results-oriented reporting & expected outcomes, with
measurable indicators
Contract management – monitoring & supervision is crucial
Contract execution – procurement is complete only when the
contracted product of satisfactory quality is delivered at the
appointed time
Thank youThank you