NNPCL SCM_Emergency Procurement.pdf

NNPC Limited SCM Processes and Procedures 9.0 Emergency Procurement This refers to the process where procurement by NNPC Limited is made necessary by a sudden, unexpected occurrence that poses a clear and imminent danger to public safety or requires immediate action to preserve, prevent or mitigate...

NNPC Limited SCM Processes and Procedures 9.0 Emergency Procurement This refers to the process where procurement by NNPC Limited is made necessary by a sudden, unexpected occurrence that poses a clear and imminent danger to public safety or requires immediate action to preserve, prevent or mitigate the loss or impairment of life, health, property, or essential services. Objectives The objectives of this process are to: • • • • Ensure a timely response to urgent need for goods and services in emergency situations while ensuring compliance with the general procurement principles. Get best value for money considering all relevant factors, including costs and benefits to NNPC Limited. Guarantee fairness, integrity, and transparency. Ensure the interest of NNPC Limited is maintained. 9.1 Emergency Procurement Policies S/N Description 1. Basis for Emergency Procurement Emergency purchasing should only occur when there is a legitimate work or operation stoppage, health, safety, damage to property or environmental emergency requiring immediate supplier support. However, such procurement shall be made with such competition as is practical under the circumstances. This does not relieve the Contract Owner and Contract Holder from negotiating a fair and reasonable price and subsequently documenting the emergency procurement action. Emergency situations shall include but not be limited to the following: a. b. c. d. e. Oil spill Fire Breakdown of equipment Loss of production or revenue Emergency shutdown of plant, equipment etc. Emergency purchases under NNPC provision must meet the following conditions: a. The Country, State or Business is seriously threatened by or confined with a disaster, catastrophe, war, insurrection, or Act of God. 86 NNPC Limited SCM Processes and Procedures 9.1 Emergency Procurement Policies S/N Description b. The condition or quality of goods, equipment, building or publicly owned goods; may seriously deteriorate unless action is urgently and necessarily taken to maintain them in their actual value or usefulness. c. Public project may be seriously delayed for want of an item of a minor value. 2. Delegation of Procurement Authority As detailed in the delegation of authority (DOA) and delegation of financial authority (DFA) manuals, NNPC Limited shall authorize N level staff at the company or subsidiary (where applicable) to approve emergency sourcing requests according to their respective level 1 approval limits and thresholds. 9.2 Emergency Procurement Procedures Responsible Party Description Job Aid User Department (N2/3) In the occurrence of an emergency Email 2. (N-1) Initiate proposal and forward to N for approval depending on the circumstance/subject matter of such emergency. Email & Emergency Request Template 3. (N) Approve proposal request if satisfied and forward to SCM (N-2/3) Email 4. SCM (N-2/3) Engage in direct contracting of goods, works and services and initiate PO process. Email & S/N 1. Escalate to N-1 on development and identify those goods and services necessary to meet the emergency. ERP Note All procurement made under emergencies shall be handled with expedition but along principles of accountability, due consideration 87 NNPC Limited SCM Processes and Procedures 9.2 S/N Emergency Procurement Procedures Responsible Party Description Job Aid being given to the gravity of each emergency. 5. User Department (N-2/3) Prepare detailed report immediately after the cessation of the situation warranting any emergency procurement and forward to the relevant Tenders Committee for consideration and ratification using the standard tenders' memo template. Memo 6. Tenders Committee Consider and approve Memo. Email 7. Relevant Tenders Committee Secretary Prepare and transmit meeting extracts to User Department(N-2/3). Email Meeting Extracts & End. 9.3 Input Procurement& Documents Emergency Output Document Description Type Frequency Source Recipient 1. Approved emergency request Output As required (N) SCM (N-2/3) 2. Emergency procurement Request Memo Input As required User Departme nt (N-2/3) Tenders Committee 3. Tenders Committee Output Approval As required Tenders Committee Secretary User Department (N-2/3) S/N 88 NNPC Limited SCM Processes and Procedures 9.4 Emergency Procurement Key Performance Indicators S/N Performance Measure Basis of Measurement Timeframe Target 1. Timeliness of emergency proposal process. Days elapsed since emergency is declared. As required 1 day 2. Timeliness of Ratification by Tenders Committee. Days elapsed procurement completed. since is As required 5 days 3. Compliance with eligibility criteria on emergency procurement. Meets NNPC provision for emergency procurement. As required 100% 89 NNPC Limited SCM Processes and Procedures 90