KENYA NATIONAL BUREAU OF STATISTICS KNBS STAFF SENSITIZATION WORKSHOP - NYERI PROCUREMENT RISKS AND OVERVIEW OF THE ROLE OF PROCUREMENT MANUAL

INTRODUCTION Procurement Unit is a Department under the Director General’s Directorate. The Department is charged with the responsibility of procurement of goods and services in the Bureau.

FUNCTIONS The major functions of the Department are:- Implementation of Public Procurement and Disposals Act and Regulations at the Bureau Advise the Director General and other Directors on Procurement activities Preparation of KNBS annual procurement plan Implementation of the annual procurement plan Shortlisting/registration of suppliers Reporting of procurement activities to the Board

FUNCTIONS (CONTD.) Secretariat to procurement committees Tender committee KSh.500,000 and above Procurement committee below KSh.500,000 Disposal committee Tender/Quotation Evaluation committee

RISKS IN PROCUREMENT Risks in procurement can lead to massive loss of resources and non availability of goods and services if not prevented. However, all the risks in procurement are available if the provisions of the Public Procurement Act and Regulations are adhered to. Over pricing of materials and services – ensure procurement through competitive bidding and also carrying out of market survey. Risk of delivery of sub-standard materials to avoid this risk. The following should be observed:-

RISKS IN PROCUREMENT (Contd..) Clear specification of materials and terms of reference Evaluation of tenders/quotations prior to award Inspection of goods/services prior to receipt Risk of over purchase/overstocking – always ties the funds in materials that cannot be used. To avoid this:- Plan all procurements Carry out stock takes Purchase … for use materials Ensure implementation of procurement plans

RISKS IN PROCUREMENT (Contd..) Risk of non completion of assignment Ensure supervision of the contractor by the user Clear terms and conditions of contract Payment for goods/services not delivered or services not rendered.

ROLE OF PROCUREMENT MANUAL The Bureau has put in place a procurement and stores management manual inorder to enable it carry out its mandate as set out in Statistical Act, 2006. the manual provides a comprehensive procurement and stores management policy and procedures.

ROLE OF PROCUREMENT MANUAL (CONTD) 1. PURPOSE To provide easily understood guidelines and operational instructions on matters relating to:- Procurement of goods, works and services Procurement of consultancy contracts Management of stores OBJECTIVES The objective of the manual is to provide guidelines that promotes economy, efficiency and transparency in procurement and stores management

ROLE OF PROCUREMENT MANUAL (CONTD) 3. SCOPE Must be adopted by all directorates both in headquarters and field operations Emphasize application of the Public Procurement and Disposal Act and Regulations

ROLE OF PROCUREMENT MANUAL (CONTD) GENERAL POLICY Competitive bidding is the preferred mode of procurement Maintenance of supplier data base approved by the Tender Committee Contracts shall be in writing Splitting of transactions – not allowed in order to avoid competition Inspection of goods and certification of services

ROLE OF PROCUREMENT MANUAL (CONTD) 5. CODE OF CONDUCT Applies to all persons involved in procurement in any stage and in management of stores:- Ethics – must be consistent with highest professional and moral standards Conflict of interest – must be observed Confidentiality of information Fraudulent, collusion and corrupt

ROLE OF PROCUREMENT MANUAL (CONTD) 6. PROCUREMENT PLANS Must be prepared annually by Procurement Unit Directorates including field operations must submit annual work plans

ROLE OF PROCUREMENT MANUAL (CONTD) 7. PROCUREMENT COMMITTEES Appointment by Director General of the members Tender committee - KSh.500,000 and above Procurement committee - below KSh.500,000 Disposal Committee Receiving and acceptance Evaluation Tender/Quotation opening Market Survey

ROLE OF PROCUREMENT MANUAL (CONTD) 8. PURCHASING The manual gives guidelines on all methods available and emphasizes on availability of requisition prior to purchase. Stock/common user items Open tender Request for proposals Request for quotations Direct procurement

ROLE OF PROCUREMENT MANUAL (CONTD) 9. RECEIVING OF GOODS Must be in accordance with specification Inspection and receiving committee Maintenance of records

ROLE OF PROCUREMENT MANUAL (CONTD) 10. INVENTORY MANAGEMENT Inventory management has since been moved from Procurement Department to the Directorate of Finance and Administration. However, the manual provides the guidelines and procedure. Storage of purchased goods Issue of materials from stores Loaning of stores Stores security Programme for stock take

ROLE OF PROCUREMENT MANUAL (CONTD) 11. DISPOSALS The manual provides for guidelines on disposal of stores necessitated by fair wear and tear, obsolete or surplus Submission of such items by he user/field Disposal committee Tender committee Sale by: Open tender Public auction Transfer to other public institutions Sale to members of staff

ROLE OF PROCUREMENT MANUAL (CONTD) APPENDICES Confidential business questionnaire Price comparison summary Local purchase/service order Annual procurement plan Stores ledger and control card Request for quotation Inspection and acceptance certificate Board of Survey form