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

2. 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.

3. 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

4. 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

5. 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:-

6. 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

7. 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.

8. 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, the manual provides a comprehensive procurement and stores management policy and procedures.

9. 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

10. 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

11. 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

12. 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

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

14. 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

15. 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

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

17. 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

18. 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

19. 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