1. 1 PROCUREMENT AUTHORITY AND RESPONSEBILITIES Dr. Fred Mugambi Mwirigi JKUAT

2. 2 Course Content Introduction Responsibility and authority in PE’s Authority and Responsibility of the CEO Authority and Responsibility of the User department Authority and Responsibility of the Tender Committee Authority and Responsibility of the Procurement Committee Authority and Responsibility of the Procurement Unit Authority and Responsibility of the Evaluation Committee Authority and Responsibility of the Inspection/Acceptance Committee

3. 3 Introduction The procurement function entails - identifying sources of supply - purchasing - receiving - storing - distribution

4. 4 Introduction Contd. Both public and private organizations procure goods and services This form of buying is referred to as organizational buying Organizational buying is very complex since buying decisions are made at various levels

5. 5 Introduction Contd. For Public Entities, procurement authority and responsibility emanates from the following documents; 1.PPDA, 2005/ Regulations, 2006 2.Standard bidding documents 3.Procurement manuals 4.Administrative guidelines 5.Best practice manuals No’s 2-3 must be consistent with the ACT

6. 6 Introduction Contd. For private organizations, procurement authority and responsibility is enshrined and documented within:  Company policies  Procurement manuals  Best practice manuals

7. 7 Sharing Authority and Responsibility Procurement authority and responsibility are shared at various levels by various offices within an organization Each party has a unique role in the supply chain Sharing as well as delegation of some authorities may happen in some cases while in others it is not possible There are various levels of approvals in procurement

8. 8 Contd. The main procurement decision makers in organizations include; 1. CEOs – influencers 2. Tender/ buying committees 3. Procurement Committees 4. Technical committees – gate keepers 5. Users – deciders 6. Receiving / Inspection committees

9. 9 Specific Responsibilities and Authorities Public Entities have assigned authority and responsibility of buying decisions to various offices and committees in the organization. They include; CEO User department Tender Committee

10. 10 Contd. Procurement committee Procurement Unit Inspection and Acceptance Committee Evaluation Committees

11. 11 Authority and Responsibility of the CEO Primary responsibility to ensure compliance to the - The Act /Regulations / organization policies - Procurement manuals - Best practice manuals Ensures that procurement plans/ budgets are made and adhered to Approves certain levels of orders Initiates procurement of capital projects Sign procurement contracts

12. 12 Authority and Responsibility of the User Department Responsibilities - managing the budget - drawing specification - initiating requests - evaluation of tenders - prepare procurement plans Authority - to incur expenditure - to approve requests - to inspect receive/ reject goods

13. 13 Authority and Responsibility of the Tender Committee Authority of Tender committee Approve the selection of successful tenderers Award procurement contracts over KES 500,000 Approve selection of procurement method Approve the list of tenderers in cases of restricted tendering Approve the list of prequalified suppliers Approve negotiations Approve the amendment of contracts previously awarded by the tender committee

14. 14 Authority and Responsibility of the Tender Committee Contd. Responsibility of tender committee Ensure that funds are available Ensure that prices are within market prices Review quarterly reports on quotations Ensure transparency in the tender process

15. 15 Responsibility and Authority of the Procurement Unit Responsibilities Maintain and update list of prequalified suppliers Advertise procurement and disposal opportunities. Co-ordinate the receiving and opening of tenders Maintain and safeguard procurement and disposal documents and records. Submit lists of pre-qualified tenderers to the tender committee for approval Propose the membership of evaluation committee

16. 16 Responsibility and Authority of the Procurement Unit Responsibilities Contd. Co-ordinate the evaluation of tenders, Recommend a negotiating team for appointment Prepare and publish notices of award and notice of tender acceptance. Prepare contract documents in line with the award decision. Prepare and issue rejection and debriefing letters. Prepare contract variations and modifications to documents

17. 17 Responsibility and Authority of the Procurement Unit Responsibilities Contd. Provide information as required, for any petition investigation Implement the decision of the procurement, tender and disposal committees Act as a secretariat to the Tender, Procurement and Disposal committees. Liaise with the Authority on matters relating to procurement and disposal: Prepare and submit to the Authority reports required under the Act Monitor contract management by User departments to ensure implementation is on course

18. 18 Responsibility and Authority of the Procurement Unit Responsibilities Contd. Report any significant departures from the terms of contract Prepare consolidated procurement and disposal plans Advise the procuring entity on aggregation of the procurement to promote economies of scale Monitor and evaluate of the supply chain

19. 19 Responsibility and Authority of Procurement Unit Responsibilities Contd. Carry out market surveys. Conduct periodic and annual stock taking. Certify the invoices and payment vouchers Approve extension of the tender validity period Verify that the available stock levels warrant initiating a procurement process.

20. 20 Responsibility and Authority of Evaluation Committee Technical evaluation of tenders/ proposals Carry out due diligence on each tender Carry out financial evaluation Prepare a report to the tender committee

21. 21 Responsibility and Authority of Inspection/Acceptance Committee Inspect and test goods received Assess conformity to original specs Accept or reject goods Ensure the quantity is correct Ensure goods are received in time Ensure all brochures / manuals have been received Issue interim or completion certificates or goods received notes

22. 22 Thank you