Presentation on the Procurement Department Volta River Authority 28/04/2017

Presentation Outline: Functions of the Procurement Department Mission Of The Procurement Department Vision Of The Procurement Department Basic Objectives Procurement Principles And Values Operations of the Procurement Department Present Departmental Set Up Functions of the Sections The Public Procurement Act, 2003 (Act 663) Procurement Processes Challenges 28/04/2017

Mission Statement To provide professional, transparent, auditable, efficient, legally acceptable and timely procurement services to Clients in a manner that optimises value for money whilst setting standards for other procurement entities in Ghana and Africa. 28/04/2017

Vision Statement To be an excellent provider of procurement services to VRA and other clients, with no better alternative for clients whilst setting standards for other procurement entities in Ghana and Africa. 28/04/2017

OBJECTIVES Prepare Procurement Policies, Procedures and Guidelines to ensure fairness, transparency, efficiency and economy in VRA’s procurement undertakings. Effective procurement planning and preparation of adequate specifications; tendering, evaluation of bids and contract award for the procurement of standard and non-standard materials ( power system items and spares and non power related items). Administer and manage Procurement related Contracts and ensure compliance with same by suppliers and vendors. 28/04/2017

Objectives Cont’d Coordinate procurement of works, services and goods for purposes of ensuring compliance with Public Procurement Act , 2003, Act 663 and obtaining the required approvals from the appropriate Tender and Review Boards. Effective general warehousing of goods in stores at various VRA locations including stores management, inventory control and disposal of surplus and obsolete materials to maximize recovery value. Timely clearing of goods and equipment shipped from overseas to VRA and shipping out of materials and equipment for repairs, refurbishment and/or replacement. 28/04/2017

General Procurement Principles Professional Principles Competition Accountability Transparency Legal framework Value for Money Efficiency & Effectiveness Fairness 28/04/2017

Professionalism Responsiveness Teamwork Dedication Integrity Value Statement Professionalism Responsiveness Teamwork Dedication Integrity 28/04/2017

B: Operations of the Procurement Department 28/04/2017

Organisational Chart-(New ) DIRECTORATE GEN. & SYSTEM ADMIN. MANAGER ACCRA/TEMA MANAGER AKOS/AKUSE MANAGER FUELS MANAGER CONTRACTS MANAGER PLANNING 28/04/2017

Functions Of Area Managers Coordinate procurement planning and provide support on Material Requirement Planning, coding and preparation of specifications for departments located in the areas. Procurement of emergency and non-standard materials as requested by departments in the Area. Co-ordinating with the Planning & Procurement Section to provide standard materials for departments in the Area. Inventory Control and management of the Stores and the Fuel Depots. Etc. 28/04/2017

Functions Of Manager Fuel Manage the Authority’s Fuel Stocks at the Tema Oil Refinery (TOR), Tema Diesel Station (TDS) and all other locations Monitor contracts in respect of the LCO and Time Charter Party agreements to ensure compliance by both parties to the agreements. Handle procurement of fuel and lubricants for the Authority’s Vehicle fleet. Etc. 28/04/2017

Functions Of Manager Contracts Responsible for the preparation and monitoring of the Authority Annual Procurement Plans Responsible for the preparation and periodic update of the Policies and Procedures Manual to govern procurement of Goods, Works and Services within the Authority. Liaises with implementing departments to ensure that procurement activities are carried out in compliance with VRA Policy and Ghanaian Law. Manages the procedures and relationship between VRA and the various Approving Authorities for procurement as set out by Act 663. 28/04/2017

Functions Of Manager Planning Collect data to establish usage pattern of standard materials and set realistic and economic re-order levels and initiate action for stock replenishment when required. Establish records management systems to facilitate easy retrieval of information on registered suppliers as well as feed updated vendor list into the Computron System. Co-ordinate the identification of Obsolete Materials within the Authority's stores and locations and seek necessary approvals for their disposal. Etc . 28/04/2017

General and System Admin. General Departmental Reporting Training and Related Issues Departmental fleet management Personnel and welfare matters Catering Services Housekeeping and office mgmt Computron system support Vendor file management 28/04/2017

The Public Procurement Act, 2003, Act 663 The Act aims at ensuring that public procurement is carried out in a fair, transparent and non – discriminatory manner using state resources in a judicious, economic and efficient way 28/04/2017

Public Procurement Act 2003, Act 663 Act 663 applies to the following: Procurement financed from public funds – wholly or partly Procurement of goods, works and services Disposal of public stores and equipment Procurement financed by funds or loans taken by the Government of Ghana, including foreign aid funds. 28/04/2017

Procurement Methods PROCUREMENT METHOD CONTRACT VALUE THRESHOLD (GH¢) PRICE QUOTATION GOODS WORKS TECHNICAL SERVICES UP TO 20,000 UP TO 50,000 NATIONAL COMPETITIVE TENDER 20,000– 1.5 MILLION 50,000 – 2.0 MILLION 20,000– 200,000 INTERNATIONAL COMPETITIVE TENDER ABOVE 1.5 MILLION ABOVE 2.0 MILLION ABOVE 200,000 RESTRICTED TENDERING/ SOLE SOURCING SUBJECT TO APPROVAL BY PUBLIC PROCUREMENT AUTHORITY 28/04/2017

THRESHOLDS FOR REVIEW/ APPROVAL AUTHORITY IN GH¢ GOODS WORKS TECH. SERVICES CONSULTING SERVICES HEAD OF ENTITY (HOE) UP TO 5,000 UP TO 10,000 ENTITY TENDER COMMITTEE (ETC) >5,000 to 100,000 >10,000 200,000 50,000 MINISTERIAL TENDER REVIEW BOARD (MTRB) >100,000 800,000 >200,000 1.5M >50,000 350,000 CENTRAL TENDER REVIEW BOARD ABOVE 1.5 M ABOVE 350,000 28/04/2017

Procurement Process C A PRICE QUOTATION PROCEDURE INTERNATIONAL RECEIVE REQUISITION ESTIMATED VALUE OF GOODS: LESS THAN 20,000 GO TO A. 20,000 -1.5 M GO TO B ABOVE 1.5M GO TO C C A PRICE QUOTATION PROCEDURE INTERNATIONAL COMPETITIVE TENDER (ICT) PROCEDURE B NATIONAL COMPETITIVE TENDER (NCT) PROCEDURE 28/04/2017

A: Price Quotation NO YES PREPARATION OF INVITATION FOR QUOTATION AND INVITE SELECTED VENDORS FROM DATABASE SEEK APPROVAL FOR EVALUATION C’TEES TO BE SET UP EVALUATION REPORT SUBMITTED BY C’TTEE VALUE LESS THAN 5,000 NO YES 28/04/2017

Price Quotation Cont’d VALUE LESS THAN 5,000 NO >5,000– 100,000 YES PREPARE PO & PR FOR APPROVAL BY HOD/DCE/CE FORWARD REPORT TO ETC FOR REVIEW NO DESPATCH PO ADDRESS QUERIES REPORT PASSED YES CARRY OUT DELIVERY INSPECTION NO INSPECTION OK REJECT GOODS PROCESS TIV/SIV FOR PICKTICKET RELEASE & SHIPMENT OF GOODS TO USER YES GRN PREPARED TO ACCOUNTS FOR PAYMENT END CONSIGN GOODS TO CWH 28/04/2017

National Competitive Tender Procedure PREPARE TENDER DOCUMENT TENDER DOCUMENT REVIEWED BY RELEVANT DEPARTMENT TENDER DOCUMENT REVIEWED BY ETC ADVERTISE IN NATIONAL DAILIES FOR 4 WKS EVALUATION C’TEES SET UP REPORT SUBMITTED TO ETC REPORT REVIEWED BY ETC ONLY/ ETC & MRTB 28/04/2017

National Competitive Tender Cont’d NO REPORT PASSED ADDRESS QUERIES YES PREPARE PO & PR FOR APPROVAL BY DCE/CE DESPATCH PO CARRY OUT DELIVERY INSPECTION NO NO INSPECTION OK REJECT GOODS PROCESS TIV/SIV FOR PICKTICKET RELEASE & SHIPMENT OF GOODS TO USER YES GRN PREPARED TO ACCOUNTS FOR PAYMENT END CONSIGN GOODS TO CWH 28/04/2017

Int’l Competitive Tender (ICT) Procedure PREPARE TENDER DOCUMENT TENDER DOCUMENT REVIEWED BY RELEVANT DEPARTMENT TENDER DOCUMENT REVIEWED BY ETC ADVERTISE IN INTERNATIONAL PRESS - 6 WEEKS EVALUATION CTEE SET UP , SITS & SUBMITS REPORT REPORT SUBMITTED TO ETC FOR ENDORSEMENT REPORT SUBMITTED TO MTRB/ CTRB FOR APPROVAL 28/04/2017

International Competitive Tender Cont’d NO REPORT PASSED ADDRESS QUERIES YES PREPARE PO & PR FOR APPROVAL BY DCE/CE DESPATCH PO CARRY OUT DELIVERY INSPECTION NO INSPECTION OK NO REJECT GOODS PROCESS TIV/SIV FOR PICKTICKET RELEASE & SHIPMENT OF GOODS TO USER YES GRN PREPARED TO ACCOUNTS FOR PAYMENT END CONSIGN GOODS TO CWH 28/04/2017

Challenges/Constraints Limitation of threshold imposed by ACT 663 affects the procurement of small items. Reluctance of staff to commit time to Evaluation Committee duties and deliver evaluation report in timely fashion to the standard required. Inadequate planning & specification of materials by client departments. Non coordinated data on procurements within VRA 28/04/2017

Thanks for your attention The End. Thanks for your attention 28/04/2017