1. Understanding Procurement 1

2. Procurement Policy Need to set up guidelines & policy Need to set up procurement committee; this should include a cross-section of staff Need to disseminate the policy to all concerned All procurement should be need based and in line with the available budgets 2

3. Procurement of Goods & Related Services while Implementing TIs The following activities need consideration for procurement: Rent of office building: It is a service procurement. Rent agreement to be signed Office furniture/audio visuals/computers/office stationery and consumables/STI drugs/ N/S/ Lubricants/Condoms – It is goods procurement. Direct Contracting or Shopping Procedure as outlined in NACO’s Procurement Manual 3

4. Applicable Procurement Procedure Contracting Low value, proprietary and specialist goods and services can be procured through single quotation when the available options of the service are limited or specialized Direct Purchases (both Assets & Consumables) Securing three quotations from three suppliers for office equipment, consumables, lubricants, STI drugs, office furniture, audio video equipment, condoms, etc. 4

5. Steps for Direct Purchases Preparing specifications of goods to be procured Issuing quotation enquiry to prospective suppliers Securing at least three quotations from suppliers Making comparative statement of the goods offered and evaluating substantial responsiveness/compliance of the goods to the required specifications and quantity 5 Contd…

6. Steps for Direct Purchases Issuing Purchase Order based on the above evaluation signed by the NGO head, PM and Accountant Receive goods and record in challan Entering the goods received in the asset/stock register maintained by the project While procuring drugs the same should be manufactured by WHO-GMP certified manufacturers 6

7. Procurement Control All purchases must be authorized and approved before the goods and services are ordered Verification must be done that all goods received and services rendered are according to specifications and in quantities requisitioned for All purchases must be accurately reflected in the books of account and suppliers are paid only in accordance with the agreed terms 7 Contd…

8. Procurement Control Goods ordered are actually received into store and record of receipt on challan verified Relevant accounting records are updated according to receipt of goods A stock register should be maintained for individual drugs at the main office and at clinic sites 8

9. Stock Keeping System for purchase of drugs and stock- keeping to be developed; a procurement plan would need to be in place Quantity, type of drugs depends on past history, patient load, preference of doctors, etc. All drugs purchased need to be checked for quality, quantity and expiry against purchase order Stocks should be held securely and access restricted 9

10. Inventory Management An Assets register to be maintained with details of all assets purchased (i.e. date/make/quantity/cost etc.) Register to be updated regularly and signed by GB members Identification numbering needs to be done of all assets Physical verification must be done at least once a year Old assets would need to be written off with specific permission of the GB No disposal of assets must be done without permission 10

11. Stock Maintenance One person to be made responsible for stocks and stock books Regular checking of stocks is essential with signature of stock keeper Material to be issued based on requisitions duly authorized Stock registers to be maintained at office & clinic at different stages of distribution First in, first out (FIFO) policy must be followed Special care must be taken to avoid expiry Expired consumables to be written off with permission of management 11

12. 12 THANK YOU!