GRMF PROCUREMENT East Africa Donors’ Coordination Meeting

The Role of Procurement

A process for acquisition of goods, services and works for projects

Pillar for Project and Programs Implementation

Procurement as a Key Pillar for governance

Compliance with provisions of the Financing Agreement and Grant Agreements with developers

Ensures Transparency in the implementation of grants

Grant Agreements provisions on Procurement.

(Third Level Procurement)

The Role Procurement Monitoring: This is the procurement managed and implemented by the Developers and this is where the AUC needs to monitor the implementation in accordance with the AUC Financial and Procurement Guidelines or/International Best Practice.

Developer Procurement Guidelines: The AU Procurement Rules have been summarized into the Developer Procurement Guidelines

Dictates that we apply practices in Public sector procurement to safeguard tax payers’ money

AU has fiduciary responsibility to ensure that donor funds are used for purpose for which they are intended

Grant Recipient and suppliers must adhere to the highest ethical standards, both during the bidding process and throughout the execution of a contract.

Grant Agreements provisions on Procurement.

(Third Level Procurement)

Eligible Goods: Goods and services blacklisted or have its origin in countries that

have been blacklisted or sanctioned by the United Nations Security Council, the EU or

the AU.

Eligibility; Bidders/Applicants under sanctions from UN, EU or AU are barred from

participating GRMF Grant Applications and Procurements;

Compliance & Adherence to the Guidelines; Developers shall adhere to procurement

processes defined by the Developers Procurement Guidelines which draw

International best practice based on the AUC Procurement Guidelines.

Grant Agreements provisions on Procurement.

(Third Level Procurement)

Financial Records; The AUC shall oblige Developers to keep their records on

Financial and procurement activities for at least 7 years.

Transparency; This will allow AUC and their Auditors full access to any records

and documents especially on procurement.

Procurement Compliance; Non-declaration of procurement undertaking during

Application may lead to disqualification.

Non-Compliance to procurement guidelines shall lead to termination of grant

agreements

Grant Agreements provisions on Procurement.

(Third Level Procurement)

NO-Objection Thresholds: Currently developers are required to obtain a No-Objective/Approval for amount exceeding USD 500,000 for any Goods/Services being procured.

Any changes will be communicated on the GRMF Website and the next Application Workshop.

Financing of Taxes; The GRMF will not finance import duties (Customs & Excise Duties), Value Added Tax (VAT) or any form of Taxes.

Public procurement is process driven and is

anchored on the following principles

► TRANSPARENCY

► ACCOUNTABILITY

► VALUE FOR MONEY

► FAIRNESS

► EFFICIENCY AND ECONOMY

► EFFECTIVE COMPETITION

Procurement Selection Methods

Others Methods Helpful

to GRMF Applicants

Framework Contracts

Call-of Contracts

Force Account/Direct

Labour

Use of procurement

Agents

Sourcing

Approach Market & Select S/C/C

MA Options G/W/S

• Open

• Limited

• International

• Regional

• Pre Qualification

• Single Stage

• Multi Stage

• BAFO

• Negotiations

• Direct Selection

• Rated Criteria

MA Options CS

• Open

• Limited

• Direct

• International

• Regional

• Shortlist

Selection Methods

• RFP

• RFB

• RFQ

• DS

• PPP

• UN Agencies

• CDD

• Force Accounts

Selection Methods

• QCBS

• QBS

• CQS

• FBS

• LCS

• DS

• IC

• UN Agencies

• NGOs

• Procurement A.

Selection Methods

•Transparent

•Wider market

•Competition, New Ideas

•New Players in the market

•Quality & Cost

Most preferred

For purchases estimated to be USD50,000 or more

Advertise in media of a

wider circulation

Avoid order splitting

Minimum 4 weeks

Can be longer depending on the complexity of the assignment

Open Tendering

Selection Methods

For transactions estimated to be

between 10,000 ≥50,000

Known vendors from database

Minimum 3 and maximum 8

For transactions estimated to be

between 500 ≥10,000

Simplified documents

For standard off-the-shelf products

Selective Tendering Request for Quotation

Single Source / Direct

Contracting

Lessons learnt

Non compliance with rules especially in early contracting

Evaluation processes not transparent

Criteria not objective. In most cases subjective.

Bidders not being given equal access to information or same

information

Low thresholds

Recommendation

To have detailed training workshop with developers

Either in house or through a consultant

Include procurement capacity as part of the evaluation

criteria (Among the Key Experts)

THE END

?