PUBLIC PROCUREMENT IN COUNTIES: RESPONSIBILITIES & CONTROLS Presented by: THOMAS OTIENO; MANAGER CAPACITY Public Procurement Oversight Authority

Regulatory Framework 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 Bodies in Public Procurement Public Procurement Oversight Authority (PPOA) – Sec. 8 Public Procurement Oversight Advisory Board (PPOAB) – Sec. 21 Public Procurement Administrative Review Board (PPARB) – Sec. 25

Role of PPOA Ensure compliance. 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.

Cont…. Role of PPOA 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.

Principles of Public Procurement Right Quality Right Time Right Quantity Right Source Right Price

Procurement by County Government or County Government Entity 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.

County Government Regulations 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 Public Entities 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.

Procurement Methods Open tendering (preferred method) Restricted tender Direct procurement Request for quotations Request for proposals Low value procurement Specially permitted procedures Use of alternative methods-Sec. 29 Approval of tender committee required Justification in writing required.

Segregation of Responsibilities 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.

Establishment of Committee’s 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.

Role of the Transition Principal Officer 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.

Responsibilities of County Accounting Officers 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.

Preference and Reservations 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.

Controls 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.

Cont… Controls 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.

Offences 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

Penalties 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

Self Monitoring 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.

Conclusion 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.

Thank You