Procurement Planning (1) PDF

PROCUREMENT PLANNING AND RECORDS Presented by Mansur Mamman MCIPS Bureau of Public Procurement  OUTLINE  Strategic Procurement Plan...

PROCUREMENT PLANNING AND RECORDS Presented by Mansur Mamman MCIPS Bureau of Public Procurement  OUTLINE  Strategic Procurement Plan  Types of Procurement Planning  When to start Procurement Planning  Membership of Procurement Planning Committee  How to prepare Procurement Plan  Benefits of Procurement Planning  Consequences of Lack of Procurement Planning  Procurement Planning Portal  Conclusion “Planning is bringing the future into the present so that you can do something about it now” – Alan Lakein (Born in 1938 – American Author on Personal Time Management)  NOCOPO (National Open Contracting Portal) was created in 2016 after Mr. President made a commitment at the London Anti- Corruption Summit. He ensured the summit that Nigeria will develop a system to enable transparency, competition, accountability and ensure that government gets value for money in procurement. This platform is used to collate procurement plans and records Citizen and civil society can be Introduction part of decision making in procurement as a result of this portal Introduction Introduction  Strategic Planning  Is the transformation of an organization’s mission, goals, and objectives into measurable activities to be used to plan, budget, and manage the procurement function within the organization.  The ultimate goal is to bring about positive change in organizational culture, systems, and operational processes.  Without a strategic planning process, there will be miscorrelation between the procurement department’s functions and the overarching needs of the organization. The BPP’s Procurement reforms intend to ensure VFM by improving flexibility, quality, and efficiency throughout the procurement cycle.  Time is an important element of VFM. When a project is delivered promptly or when a process is completed rapidly, TIME greater value is created for all stakeholders. For example, a road project completed early provides economic benefit, security, or other values to the community it serves.  Procurement planning is the process used by institutions and agencies to plan procurement activities for a specified period of time.  An iterative process that encompasses identification of future needs, review of MDA’s current/existing procurement processes and direction for procurement management.  It involves identifying what needs to be procured, how project needs can best be met, the scope of the goods, works or services required, what Procurement procurement strategies or methods to be deployed, setting Planning the time frames, and the responsibilities for the full  Types of Procurement  Individual Planning Planning  Procurement planning takes place at department or project level  Consolidated Planning  Procurement plans of different departments or units are combined into one single plan  Based on a decentralized structure, a consolidated plan can be developed at different levels e.g. Ministry, Agency or Parastatal  Analysis of the consolidated Procurement Plan provides an opportunity to identify economies of scale and better uses of resources, providing an overview of the scale of the procurement activities. When Should Procurement Planning Start?  Planning must start at the earliest possible time just before preparation of Budget commences, preferably during the last Quarter of each year.  Amount of time required depends on the value, risks, complexity and criticality of the proposed procurement.  Each year Departments and Agencies are required to prepare procurement plans which should translate to Budget for all activities to be executed within the year Sections 21(1) & 18 of PPA, 2007. Management Structure For Effective Procurement Planning  Consideration must be given to appointing a Procurement Planning Committee with responsibility for overseeing the procurement planning phase.  Consideration should also be given to establishing a procurement department with a skill mix.  Membership of the Procurement Planning Committee  Section 21 of PPA, 2007: For each Financial year each procuring entity shall establish a Procurement Planning Committee.  A Procurement unit cannot run in isolation but must work with the technical departments who are end users to develop the plan.  Section 21(2) of PPA, 2007: The Procurement Planning Committee shall consist of:  The Accounting Officer or his representative who shall chair the committee A Representative of :  The procurement unit of the procuring entity who shall be secretary  The unit directly in requirement of the procurement  The financial unit of the procuring entity  The planning, research and statistics unit of the procuring entity  Technical personnel of the procuring entity with expertise in subject matter for each particular procurement and How to Prepare Procurement Plan  PART V Section 18 of PPA, 2007 Subject to regulations as may from time to time be made, a procuring entity shall plan its procurement by:  preparing the needs assessment and evaluation  identify goods, works or services required  Carry out appropriate market and statistical survey  Aggregate requirements whenever possible both within and between procuring entities to obtain economies of scale  Integrate procurement expenditure into yearly budget  Prescribe method of procurement  Ensure that the procurement entity functions stipulated in the Act shall be carried out by the procurement planning committee.  of Procurement Benefits of Procurement Planning Planning  Proper classification of requirements into Goods, Works & Services  Better workload planning and scheduling  Identifies the key steps and decision points in the procurement process  Consolidation of requirements for economies of scale  Providing sufficient lead time for selected procurement methods  Providing sufficient time to obtain required approvals  Allows for early identification and resolution of potential problems Consequences of Lack of Procurement Planning Delays in project implementation Inappropriate procurement Use of inappropriate procurement methods and procedures Increased packaging costs Nine Essential Steps in Procurement 1) Efficient Procurement Plan Driven by Needs Assessment 2) Appropriation 3) Advertisements 4) Transparent Pre-qualification 5) Bid Submission 6) Bid Opening 7) Bid Evaluation – Technical and Financial 8) Tender Board/FEC Approval 9) Contract Execution Procurement Plan & Records Management Software  A new software (NOCOPO) to assists MDA’s in the efficient delivery of services and ensures procurement strategies are consistent with the Government's wider policy objectives.  With NOCOPO, MDAs can submit their Procurement Plans online and update their Procurement Records where necessary. Secretary to the Government of the Federation (SGF) Circulars Ref. No. PROC/BPP/045/I/89 dated 10th July, 2018, Ref. NO 59780/S.5/C.2/II.6 dated 19th September 2019 and Ref. No. PROC/BPP/045/II dated 6th March, 2020, Ref. No PROC/OSGF/BPP/709/50 dated 1st March, 2021 and Ref. No PROC/OSGF/BPP/709/61 dated 30th June, 2021.  This will go along way in eliminating the delay usually encountered in the procurement planning process  An efficient Procurement Planning will aid advance planning, scheduling, and group buying which will result in cost savings, more efficient operation, and therefore improved use of public funds. Good planning is 80% of the task completed Poor or no planning manifests in inefficiencies in the procurement function Failing to plan is planning to fail RECORDS KEEPING IN PUBLIC PROCUREMENT  OUTLINE  Procurement Records Keeping  Records Keeping: Procurement Proceedings  Records Keeping: Advertisement  Records Keeping: Bidding  Records Keeping: Evaluation  Records Keeping: Award  Conclusion Procurement Record Keeping It is a comprehensive or step by step documentation of procurement information either in hard or electronic copies in a confidential environment which can be easily retrieved when needed for procurement decision making. Section 16(12), specified that, Every procuring entity shall maintain both file and electronic records of all procurement proceedings made within each financial year and the procurement records shall be maintained for a period of ten years from the date of the award. The characteristics of trustworthy records Characteristics of are: trustworthy records  Reliability - the records are a full and accurate representation of the transactions, activities or facts to which they attest and can be depended upon in the course of subsequent transactions or activities;  Authenticity - the records can be proven to be what they claim to be, to have been created or sent by the persons claiming to have created or sent them, and to have been created or sent at the claimed time;  Integrity - the records are complete and unaltered; and  Usability - the records can be located, retrieved, presented and interpreted. To ensure records are trustworthy, a record keeping system must preserve the:  Content - the information within the records;  Context - the circumstances under which the records were created or received (who, when, how and why); and Dangers of failure to keep Reco put the Agency at risk, adversely affect litigation and enforcement efforts, and impair program operations. Benefits of record keeping It makes the operation of the Procurement Unit very simple, easy, and effective; It facilitates procurement processes in an organization; It helps both internal and external auditors in the smooth performance of their duties. As a source of document for procurement assessment. It assists in resolving dispute between the suppliers/ contractors/ consultants and the procuring entity Helps determine loyal, efficient and Record Keeping Requirements under the Public Procurement Act and Regulations Public Procurement Act, 2007 perspective of record keeping, the language of documentation and the mode of storage:- Section 6 (1h) of the Public Procurement Act requires BPP to call for such information, documents, records and reports in respect of any procurement proceeding where a breach, wrongdoing, default, mismanagement and or collusion has been alleged reported or proved against a procuring entity or service provider  Section 38(2): The portion of the record referred to in this Section shall on request, be made available to: (a) any person after a tender, proposal, offer or quotation has been accepted or after procurement proceedings have been terminated without resulting in a procurement contract; and (b) Suppliers, contractors or consultants that submitted tenders, proposals. Offers or quotations or applied for pre- qualification, after a tender, proposal, offer or quotation Procurement has been accepted or Proceedings procurement proceeding have been terminated without  Record for investigations and audit Section 38(5): The records and documents maintained by procuring entities on procurement shall be made available for inspection by the Bureau, an investigator appointed by the Bureau and the Auditor-General upon request and where donor funds have been used for the procurement, donor officials shall also have access upon request to procurement files for the purpose of audit and review.  Record Keeping Section (25)of Public Procurement Manual (Procurement Monitoring and Evaluation): Procuring entity shall maintain both file and electronic records of all procurement proceedings made within each financial year and copies of all procurement records shall be transmitted to the Bureau of Public Procurement not later than 3 months after the end of the financial year  Record Keeping Section (26) of Public Procurement Manual (Record Keeping): The availability and completeness of procurement records is critical. In addition to overall data on numbers, types, values and dates of contracts awarded and names of awardees, procuring organizations should maintain for all contracts, a record which includes, inter alia: public notices of tendering opportunities tendering documents and addenda tender opening information tender evaluation reports formal appeals by bidders and outcomes signed contract documents and addenda and amendments records of claims and dispute resolutions record of time taken to complete key steps in the process comprehensive disbursements data in relation to payments  Evidence of Advertisement/Invitation for pre- qualification/Approval for Exemption Evidence of Advertisement/Invitation for Pre-qualification/ Approval for Exemption/BPP “No Objection” to adopt Restricted Tender or Direct Procurement. – Indicate whether there was advertisement for the pre- qualification of the contractors and provide evidence. – Provide copies of acknowledged correspondences of invitation to bid. – Provide evidence of No objection certificate/for Sole Sourcing. – For advertisements incorporating combined Technical and Financial Bids, Contractor must be requested to submit Bids in different Envelopes to allow distinct evaluations.  Pre-qualification Document submitted by Contractors Pre-qualification Document submitted by Contractors Indicate whether pre-qualification was conducted, and if not, whether post-qualification was provided for in the bidding documents. Copies of pre-qualification documents.  Pre-qualification Provide details of members of Bid Evaluation Report Evaluation Committee, indicating qualifications, designation and experience. Provide the basis and criteria for evaluation of bids and indicate how the evaluation criteria were applied, and how successful bidder’s qualifications were verified. Provide copies of evaluation criteria and scores allocated by individual members of evaluation committee. State which BPP published Standard Bidding Documents was used for the Procurement. Where a modify format or completely different standard is used show Letters of Invitation to Bid Letters of Invitation to Bid (Contractor’s acknowledged copies only) Provide acknowledged copies of letters of invitation to bid to pre-qualified contractors. Provide evidence of delivery to the contractors. Project Designs & Drawings/Full Specifications for Goods Project Designs & Drawings/Full Specifications for Goods: Indicate whether project designs and drawings have been prepared and whether by consultants or in-house If so, provide copies. This is important especially for Building and engineering projects. Provide full specifications of Goods or machineries to be supplied.  BOQ/ BEME Bills of Quantities (BOQ) / Bill of Engineering Measurement and Evaluation (BEME). BOQ/BEME describing the quantity and quality of the works to be carried out and agreeing with the drawings. Copies of the priced BOQ/BEME of all bidders including any corrections carried out during evaluation showing evidence of counter- signing of Bills by competing firms. Bidder’s Financial Bids Financial Bids of Pre-qualified Contractors showing evidence of Counter-signing of Bills by competing firms. Bid Return Sheet Bid Return Sheet (duly signed by all Pre-qualified bidders In attendance & Representatives of the MDA/Observers/Professional Organization/NGO) – Provide copies of bids return sheets duly signed by representatives of Contractors, private professional groups NGOs, Civil society Groups. – The sheet should reflect original currencies of offer and indicated by any discounts offered, values of Bid Securities with names of issuing Banks, completing period. Copies of protest letters Copies of protest letters by bidders and responses/action taken, if any. Copies of clarifications/protest letters, responses to the letters and actions taken in regard to the clarifications/protests. Progress Reports for ongoing Projects requiring Augmentation Progress Reports for ongoing Projects requiring Augmentation/Latest interim Statement/Comparative Bill of original Revised Works. – Progress report, evidence of site visit, financial statements, copies of variation orders, copies of each payment, original designs, designs used for construction, progress photographs, original contract documents, approval for contract commencement. Evaluation Report Regulation 61: The analysis and recommendation for award shall be recorded in a brief evaluation report, signed by the responsible authority of the Procuring Entity and filed in the procurement records Bid Evaluation Report: Hard/Soft Copy Submit Hard and soft copies of Bid Evaluation Report. Pre-bid Meeting Regulation 73: For complex works or supply contracts, a pre-bid meeting may be arranged whereat potential Bidders meet with the representatives of the Procuring Entity to seek clarifications. Minutes of the meeting shall be duly recorded by the Procuring Entity and provided Consultant’s to all or In-house prospective estimate Bidders Keep Consultant’s or in house estimate based on pricing of the same document as the bidders, soft copy/hard copy in Microsoft Word or Excel formats.  Record of No Objection Other records for to method if required award Minutes of Tenders Board Approval Letter of Award Confidentiality of Procurement Records Effective and proper procurement record keeping documentation should ensure confidentiality as mandated by the Section 38 of Public procurement Act, 2007. All procurement entities are required to take appropriate measures to ensure the confidentiality of procurement records at their disposal. Procurement records should be  Maintenance of Procurement Records The procuring entity is responsible for maintaining the procurement and contract records of each requirement. The procuring entity develops the filing system and maintains a complete record on the entire procurement and contract administration processes for each requirement.  Archiving of Procurement Records Archiving of Procurement Records is made easy where there is a proper documentation of tendering process. Every procurement entity is responsible for securing appropriate archive facility for procurement records. All records should be archived in a manner that can be easily retrieved.  DESTRUCTION OF PROCUREMENT RECORDS Destroying, damaging, hiding, removing, or improperly changing of any official procurement document without authority is constitute un-ethical conduct. A procurement entity must secure authority to destroy procurement records from appropriate government agency.  Below are some of the documents which should be kept as procurement records: Procurement Need Assessment Procurement Requisition and Authorization Invitation/Advertisement (depending on the method) Tender Document and opening documentation Tender evaluation proceedings and reports Approval of evaluation report Records on negotiation proceedings (if any) Letter of notification of award and signed contract Contract management correspondence Supplier’s performance evaluation reports. Any Correspondence [email protected] [email protected] www.bpp.gov.ng