28 Questions
What does the term 'goods' encompass in the context of procurement?
Materials, furniture, fixtures, raw material, spares, machinery, equipment, office supplies and IT equipment
What falls under the category of 'works' in procurement?
Engineering and related works including construction, renovations, extensions, and repairs
What are the objectives of the Determine Procurement Method process?
Ensure fair, unbiased, consistent procurement delivering value and compliance with regulations
Who proposes the mode of procurement based on estimated value and type of procurement need?
Business Department with validation from Supply Chain Management
What happens if both unit heads do not align on the mode of procurement proposed?
It shall be escalated to the relevant reporting line for a decision
5
5.0 Determine Procurement Method
What is one objective of Determine Procurement Method?
Ensure compliance with Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010
In which scenario can repeat procurement be applied?
When the goods or services have been competitively tendered and satisfactorily executed/received within two years
Under what circumstances may NNPC Limited engage in emergency procurement?
When the country is seriously threatened by a disaster, war, or act of God
For which type of procurement approach would a reverse auction be beneficial?
Non-critical standardized items with many suppliers/vendors
When should NNPC Limited introduce the use of Purchasing Cards (P-Cards)?
For non-critical and low-value procurement needs
5.1
$100m for competitive tendering and $8m for single source tendering
Under what conditions can NNPC Limited engage in repeat procurement?
When the goods have been competitively tendered and satisfactorily executed/received within two years from the original tender date.
In which scenario should NNPC Limited use reverse auctions?
Non-critical standardized items with multiple suppliers/vendors.
Under what circumstances should NNPC Limited introduce Purchasing Cards (P-Cards)?
For non-critical and low-value procurement needs.
In what scenario can NNPC Limited engage in emergency procurement?
When the country is seriously threatened by a disaster, war, insurrection, or act of God.
Under what conditions can NNPC Limited engage in repeat procurement?
When the goods have been competitively tendered and satisfactorily executed/received within two years from the original tender date.
What is the procurement category for price-based competition?
Reverse Auction
When is Competitive procurement preferred?
For value-driven purchases
What is the process for inviting only high-quality bids from pre-qualified vendors?
Restricted Tendering
What are P-cards used for?
Unplanned and urgent small-item expenditures
When does NNPC Limited use open competitive bidding?
For procurement of goods and works, prioritizing local industries and companies
Which mode of procurement applies to urgent or specialized procurement?
Competitive procurement
In which situation can Non-discriminatory supplier selection be used?
Emergency situations
When is Selective Bidding (Request for Quotations) used?
For small contracts
What takes place at the first stage of Two-Stage Bidding?
Evaluation of technical proposals
When is Sole/Single-Source Procurement (Direct Contracting) allowed?
Due to urgency or specialized nature of goods/services
What must be documented and communicated when justifying sole sourcing?
Justification for sole sourcing
Study Notes
- Suppliers are selected through various methods for contracts with limited qualified suppliers or exceptional reasons.
- Non-discriminatory supplier selection can be used for small numbers of vehicles or machine tools, emergency situations, pharmaceuticals, highly specialized construction equipment, and as an exception rather than the norm.
- In using Restricted Tender, NNPC Limited prepares a list of potential suppliers, ensuring a broad enough selection for competitive pricing.
- Selective Bidding (Request for Quotations) is used for small contracts, requiring written/electronic quotations from at least three reputable domestic or international suppliers.
- Technical proposals are evaluated and discussed with bidders at the first stage of Two-Stage Bidding.
- After the evaluation of technical proposals, bidders are invited to submit price proposals and revised technical proposals in compliance with the acceptable technical standard.
- Contract is awarded to the bidder with the lowest evaluated price in the second stage of Two-Stage Bidding.
- Sole/Single-Source Procurement (Direct Contracting) allows purchasing goods from a single source due to urgency or specialized nature of goods/services.
- Justification for sole sourcing must be documented and communicated to the appropriate authority.
- Reasons for sole sourcing include availability of goods/services only from a particular supplier or contractor, urgency, standardization, or extension of existing contracts.
Test your knowledge about the non-discriminatory methods of selecting suppliers and contractors for limited procurement situations. Explore the criteria and reasons for using specific supplier selection processes.
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