PUBLIC PROCUREMENT IN COUNTIES: RESPONSIBILITIES

& CONTROLS

Presented by: THOMAS OTIENO; MANAGER CAPACITYPublic Procurement Oversight Authority

The New Constitution of Kenya, 2010, Cap 12, Article 227.

Public Procurement and Disposal Act, 2005 (PPDA, 2005).

Public Procurement and Disposal Regulations, 2006 (PPDR, 2006).

Public Private Partnerships Act, 2012 (PPP Act, 2012).

Public Procurement and Disposal (Preference & Reservations) Regulations, 2011.

Public Procurement and Disposal (County Governments) Regulations, 2013.

Regulatory Framework

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Public Procurement Oversight Authority (PPOA) – Sec. 8

Public Procurement Oversight Advisory Board (PPOAB) – Sec. 21

Public Procurement Administrative Review Board (PPARB) – Sec. 25

Regulatory Bodies in Public Procurement

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1. Ensure compliance.

2. Monitor and report on public procurement and disposal systems, recommend improvements.

3. Assist the PE’S in the implementation and operation of the public procurement and disposal system by;a) Preparing manuals and STD’S b) Providing advice and assistance to PE’S.c) Developing, promoting and supporting the

training of persons involved in procurement.

Role of PPOA

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4. Ensure that PE’S engage procurement professionals in their procurement.

5. Initiate public procurement policy and propose amendment to the act.

6. Issuing of written instruction to PE’S with respect to procurement and disposal proceedings and dissemination of information on the same.

Cont…. Role of PPOA

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Right Quality

Right Time

Right Quantity

Right Source

Right Price

Principles of Public Procurement

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Section 121 of the Public Finance Management Act, 2012 provides that County Government or a County Government Entity shall procure goods and services and disposal of assets in accordance with Article 227 of the Constitution and the Public Procurement and Disposal Act.

Procurement by County Government or County Government Entity

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Procurement and Disposal activities in Counties to be governed by the Public Procurement and Disposal (County Governments) Regulations, 2013.

Regulations gazetted vide Legal Notice No. 60 of 5th April 2013.

The Regulations seek to operationalize application of PPDA, 2005; promote local industry and promote socio-economic development in the Counties.

County Government Regulations

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Public entities within a county include:(a) county government, or entity of the county

government;

(b) county assembly;

(c) city;

(d) urban area; or

(e) county service delivery co-ordinating unit.

County Public Entities

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1. Open tendering (preferred method)2. Restricted tender3. Direct procurement4. Request for quotations5. Request for proposals6. Low value procurement 7. Specially permitted procedures

Use of alternative methods-Sec. 29 Approval of tender committee required Justification in writing required.

Procurement Methods

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A procuring entity at the county is responsible for all its procurement and asset disposal decisions.

Decisions to be made in a systematic, corporate and structured manner.

Procurement to be handled by different officers in respect of procurement initiation, processing and receipt of goods, works or services as set forth in PPDR, 2006.

Segregation of Responsibilities

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A procuring entity at the county shall establish the following standing committees:(a) tender committees;(b) disposal committee; and(c) such other bodies as prescribed under the Act.

A county procuring entity shall establish the following ad hoc committees:(a) tender opening committee;(b) tender evaluation committee;(c) negotiation committee; and(d) inspection and acceptance committee.

Establishment of Committee’s

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The Transition Principal Officer is designated as the

Transition Accounting Officer under Sec. 10 of the

County Governments Public Finance Management

Transition Act, 2013

Sec.27(1)(2) of the PPDA provides that the Accounting

Officer of a PE shall be primarily responsible for

ensuring the PE fulfils its obligations under PPDA,

regulations and any directions of the Authority.

Role of the Transition Principal Officer

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A County Accounting Officer is responsible for: Ensuring a procuring entity complies with

the procurement law; Ensuring the Procurement unit is staffed with

procurement professionals; Establishing a county tender committee. Appointing Committees e.g Evaluation

Committee, Disposal Committee, Inspection and Acceptance Committee.

Responsibilities of County Accounting Officers

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County governments are required to apply preference and reservations to small and micro enterprises and other disadvantaged groups that are located and operate within the counties.

Disadvantaged groups includes enterprises owned by women, the youth and persons with disabilities.

Preference and Reservations

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Procuring entities required to plan their procurement and disposal activities.

Planning key to delivery of satisfactory services.

Carry out periodic stock taking of stores/equipment.

Procuring goods, works and services at inflated prices prohibited by the law.

Controls

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Use of threshold matrix (The Second Schedule of PPDR).

PPOA to publish contract awards.

Report to PPOA use of direct procurement, termination of procurement proceedings, disposal to employees, application of preference and reservation scheme, contracts above Kshs 5 million.

Cont… Controls

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Obstruction Lying or misleading Delay in opening or evaluation of Tenders Exerting influence or pressure on any

member of the various committees; employee or agent of P.E. – to take a particular action which favors a certain bidder

Opening of bids prior to appointed time Any corrupt activity Collusion

Offences

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To a public officer: Fine not exceeding Kshs. 4 million or imprisonment for a term not exceeding 10 years or both

Disqualification from public office

Corporate body: Fine not exceeding Kshs. 10 million and being debarred for a period of 5 years

Penalties

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County procuring entities encouraged to use the Internal Procurement Performance Monitoring Tool (IPPMT).

IPPMT developed to inculcate a self monitoring culture and to improve procurement performance.

IPPMT and other procurement related resources available freely at www.ppoa.go.ke.

Self Monitoring

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County procuring entities encouraged to consolidate advertisements for purposes of savings.

Benefits of value for money from bulk purchases and economies of scale.

PPDA is undergoing review. PPOA is setting up 7 regional offices in line

with the devolution agenda. E-procurement module under IFMIS.

Conclusion

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Thank YouThank You