Procurement, Tendering, Manual For Schools and Colleges

PUBLIC PROCUREMENT MANUAL FOR SCHOOLS AND COLLEGES

TABLE OF CONTENTS……………………………………………………………………………………………….

PAGE FOREWARD ……………………………………………………………………………………………………………………… 4

BACKGROUND …………………………………………………………………………………………………………………. 5

LIST OF ABBREVIATIONS AND ACRONYMS………………………………………………………………….. 6

1.0       INTRODUCTION …………………………………………………………………………………………………….. 8

2.0       THE SCOPE OF THE SCHOOLS AND COLLEGES MANUAL …………………………………. 9

3.0       PROCUREMENT STRATEGIES FOR SCHOOLS AND COLLEGES……………………….. 11

4.0       OBJECTIVES OF THE MANUAL…………………………………………………………………………… 12

5.0       INSTITUTIONAL ARRANGEMENTS FOR OVERSIGHT ………………………………………. 14

6.0       PROCUREMENT PLANNING FOR SCHOOLS & COLLEGES……………………………….. 16

7.0       SPECIFICATION OF EDUCATIONAL SUPPLIES………………………………………………….. 21

8.0       CHOICE OF PROCUREMENT METHODS AND STEPS…………………………………………. 24

9.0       URGENT PROCUREMENT……………………………………………………………………………………. 26

10.0     SUPPLIER SELECTION ………………………………………………………………………………………… 28

11.0     BIDS EVALUATION PROCEDURE ……………………………………………………………………….. 29

12.0     CONTRACT AWARD…………………………………………………………………………………………….. 32

13.0     CONTRACT ADMINISTRATION…………………………………………………………………………… 33

14.0     SPECIFIC ISSUES ON SCHOOLS & COLLEGES PROCUREMENT ………………………. 37

15.0     ENVIRONMENTAL FACTORS IN PROCUREMENT……………………………………………… 40

16.0     MANAGEMENT OF INVENTORY…………………………………………………………………………. 41

17.0     PROCUREMENT PERFORMANCE EVALUATION AND MEASUREMENT…………… 49

18.0     DISPOSALS OF STORES AND EQUIPMENT …………………………………………………………. 51

19.0     REVISION OF THIS MANUAL ………………………………………………………………………………. 53

20.0     APPENDICES ………………………………………………………………………………………………………… 54

APPENDIX A:    STOCK REPLENISHMENT REQUISITION FORM…………………………………. 55

APPENDIX B:    PROCUREMENT PLAN TEMPLATE………………………………………………………. 55

APPENDIX C:    SAMPLE BIDS EVALUATION TEMPLATE FOR TEXT BOOKS …………….. 56

APPENDIX D:    SAMPLE SUPPLIER APPRAISAL/ AUDIT QUESTIONNAIRE………………… 57

APPENDIX E:    TENDERS/ QUOTATIONS OPENING FORM ………………………………………….. 59

APPENDIX F:    PRICE COMPARISON SCHEDULE (MAJOR PROCUREMENTS) …………… 59

APPENDIX G:    PRICE COMPARISON SCHEDULE (SIMPLE PROCUREMENTS) ………….. 60

APPENDIX H:    REQUEST FOR QUOTATION ………………………………………………………………… 60

APPENDIX I:     LOCAL PURCHASE ORDER ………………………………………………………………….. 61

APPENDIX J:    GOODS RECEIPT VOUCHER…………………………………………………………………. 62

APPENDIX K:    LOCAL SERVICE ORDER ……………………………………………………………………… 63

APPENDIX L:    STORES LEDGER…………………………………………………………………………………… 64

APPENDIX M:    THRESHOLDS GOVERNING PROCUREMENT METHODS ………………….. 64

PUBLIC PROCUREMENT MANUAL FOR SCHOOLS AND COLLEGES

FOREWARD

The public procurement reforms in Kenya have culminated in promulgation of the Public Procurement and Disposal  Act  2005  and  the  Public  Procurement  and  Disposal  Regulations  2006  that  provide  a  legal framework  for  regulating  public  procurement,  with  oversight   functions  carried  out  by  the  Public Procurement Oversight Authority (PPOA).  A Public Procurement and Disposal General Manual provides detailed  guidance  on  general  issues  in  procurement  that  are  not  adequately  covered  by  the  Act  and Regulations.  Sector specific manuals are being prepared to address specific issues that arise in particular areas of procurement.

This Manual has been prepared to address the specific procurement requirements of schools and colleges. The  procurement  processes  set  out  in  this  Manual  have  reference  to  the  salient  provisions  of  the  Act, Regulations and the Procurement General Manual which should be read together with this Manual.  Some of  the  important  general  steps  leading  to  effective  procurements  for  schools  and  colleges  have  been incorporated  in  this  Manual.    Managers  of  schools  and  colleges  are  therefore  required  to  familiarise themselves with the guidelines provided in this Manual and adhere to them.

This  Manual  has  been  prepared  by  e-sokoni  consulting  on  behalf  of  PPOA  as  part  of  the  Millennium Challenge  Corporation  Project  for  Strengthening  the  Public  Procurement  System  in  Kenya,  which  is administered  by USAID.  Oversight  of the  project  was undertaken  by  ARD  Inc.   The  Manual  has  been approved by PPOA as a guide for the procurement systems and procedures of education-related items and services.

BACKGROUND

The  mission  of  the  Ministry  of  Education  (MOE)  is  to  provide,  promote  and  co-ordinate  life-long education,  training  and  research  for  sustainable  development.   Since  2003  the  government  has  initiated many  reforms  in  the  education  sector  including  the  introduction  of  Free  Primary Education  (FPE).   In 2008, the MOE increased its support to public secondary schools by providing some level of funding to

support  schools’  operational  and  development  expenditure.    Some  of  these  resources  are  used  for procurement of books, other educational learning materials and facilities for the learning institutions.

Over time, various publications and guidelines have been produced by the Ministry of Education to ensure that the procedures in the procurement of goods, services and works for schools are transparent and that they guide the school management committees at all stages of procurement.   These publications include: The   Primary   School   Instructional   Materials   Management   Handbook   (July   2004);   The   School Improvement  Grants  Management  Handbook  (August  2005);  The  Handbook  of Financial  Management Instructions  for  Primary  Schools  (2005);  The  Handbook  of  Financial  Management  (2006);  and  The Secondary Schools and Colleges Procurement Manual (2007).  The latter provides procurement guidelines on KESSP related expenditure.  The manuals made reference to other Ministry of Education publications that set out in a more comprehensive manner the processes to be observed in the procurement of particular items such as instructional materials and school infrastructure.

 

As public procuring entities, education institutions are required by the PPD Act 2005 to establish tender committees to be responsible for procurement at various levels. The composition of such committees has also been determined in law.  Although some schools have set up tender committees, a number of schools have yet to do so and the responsibility of this committee has been exercised by the School Management Committees.  Additionally, other committees are formed to procure specific items in learning institutions. Membership  of the  School Tender  Committees and  other  school committees  is  largely similar  with the difference  being  that  teachers  play  a  greater  role  in  the  School  Tender  Committee  and  other  school committees while parents play a greater role in the School Management Committee.

 

LIST OF ABBREVIATIONS AND ACRONYMS

 

BoG                            Board of Governors

CIDA                          Canadian International Development Agency

CIF                              Cost Insurance Freight paid to named destination

DEB                            District Education Board

DEO                            District Education Officer

DFID                           Department for International Development

DN                              Delivery Note

EOQ                            Economic Order Quantity ERS                             Economic Recovery Strategy FMRs                          Financial Monitoring Reports FPE                             Free Primary Education

FPESP                          Free Primary Education Support Programme

GoK                            Government of Kenya

GRV                            Goods Received Voucher

HoD                            Head of Department

HoP                             Head of Procurement

HQ                              Headquarters

IDA                             International Development Agency

JFA                             Joint Financing Agreement

KESI                           Kenya Education Staff Institute

KESSP                        Kenya Education Sector Support Programme

KIE                             Kenya Institute of Education

KISE                           Kenya Institute of Special Education

KNEC                         Kenya National Examinations Council

LPO                            Local Purchase Order

LSO                            Local Service Order

MOE                           Ministry of Education

MOHEST                    Ministry of Higher Education, Science and Technology

MoU                            Memorandum of Understanding

NFS                             Non-Formal Schools

OVC                            Orphans and Vulnerable Children

PC                               Procurement Committee

PE                               Procuring Entity

PEB                             Provincial Education Board

PPDA                          Public Procurement and Disposal Act

PPDR                          Public Procurement and Disposal Regulations

PPOA                          Public Procurement Oversight Authority

PU                               Procurement Unit

PV                               Payment Voucher

SAGA                         Semi Autonomous Governmental Agencies SIDA                           Swedish International Development Agency SKU                            Stock Keeping Unit

SMC                            School Management Committee

SWAP                         Sector Wide Approach

 

TC                               Tender Committee

TOR                            Terms of Reference

TSC                             Teachers Service Commission

USAID                        United States Aid International Agency

VMI                             Vendor Managed Inventory

 

 

1.0       INTRODUCTION

 

 

 

1.1    This Manual serves as a guide to implementation of the Public Procurement and Disposal Act and the  Regulations  with  special  reference  to  public  schools  and  colleges.  It  is  meant  to  promote effective  and  efficient  performance  of  the  procurement  function  in  public  sector  schools  and colleges.

 

1.2    The  Manual  sets  out  functional  relationships  and  internal  controls  that  promote  transparency  and accountability in the procurement process.

 

 

2.0      THE SCOPE OF THE SCHOOLS AND COLLEGES MANUAL

 

2.1    The procedures in the Manual shall be used in acquisition, receipt, storage, distribution and disposal of educational and non educational products and services in public schools and colleges in Kenya.

 

2.2    These  procedures  shall  remain  effective  until  announced  otherwise  by  the  Public  Procurement

Oversight Authority.

 

2.3    This Manual covers:

2.3.1    The generic and specific steps in procurement for schools and colleges;

2.3.2    Institutional  arrangements  for  provision  of  oversight  functions  within  the  schools  and colleges;

2.3.3    Procurement planning and its linkage to budgeting process and implementation;

2.3.4    Administration  of  the  complete  procurement  cycle  up  to  and  including  the  receipt  and

acceptance of items procured;

2.3.5    Warehousing and inventory management;

2.3.6    The disposal of unserviceable, obsolete or surplus stores, other assets and equipment;

2.3.7    A guideline for framework contracts; and

2.3.8    Supplier performance measurement.

 

2.4    This Procurement Manual covers specific issues in public procurement in schools and colleges. The procedures address the procurements financed by the Government of Kenya.

 

2.5    Procedures for schools’ and colleges’ procurements that are jointly funded by the donor(s) and the GoK  are  defined  in  the  specific  program’s  documents  based  on  the  relevant  donor  agreements, Section 6 (1) of the PPDA states that where any provision of this Act conflicts with any obligations of the Republic of Kenya arising from a treaty or other agreement to which Kenya is a party, this Act shall prevail except  in instances of negotiated grants and loans.   According to Section 6 (3) of the PPDA, where Kenya contributes from her resources to any procurement activity within Kenya, such procurement is subject to applicable provisions of the PPDA.

 

2.6    A separate Manual was issued in 2007 for procurements under KESSP which shall continue to apply subject to the provisions of Section 6 of the PPD Act.   The KESSP Programme anticipates a wide range of procurement  activities,  including the procurement  of high value goods, large/small works and the selection of international and national consultants.   The KESSP Programme is funded by a group of international donors who are referred to as Development Partners in this document.

 

2.7    The Development Partners have agreed in the Joint Financial Agreement (JFA) that the International Development  Association (IDA),  on behalf of the  Development  Partners supporting  KESSP,  shall carry out  procurement  tasks required  on behalf of the  others.  IDA,  on behalf of the  Development Partners, will also handle all procurement related queries and/or complaints that may be lodged by any  of  the  Development  Partners  or  by  prospective  bidders  with  respect  to  any  procurement decisions or contract awards made by PEs where funds originate from Development Partners under the programme.

 

2.8    Schools and colleges should observe the procurement procedures stipulated in the PPD Act and PPD Regulations  for  procurements  subject  to  duly  authorised  public  procurement  procedures  in  use  in Kenya as specified in the Joint Financing Agreement (JFA).

 

 

3.0       PROCUREMENT STRATEGIES FOR SCHOOLS AND COLLEGES

 

3.1    The  public  procuring  entities  within  the  educational  sector  should  acquire  goods  and  services  on optimum  terms  by  taking  into  account  the  acquisition  price,  payment  terms,  product  or  service quality, availability, and supplier support.

 

3.2    Qualified suppliers shall be offered equal opportunity to bid for supply of educational products and services.

 

3.3    The  highest  ethical  and  professional  standards  in  procurement  should  always  be  observed  in establishing a mutually beneficial relationship with suppliers and customers (internal and external).

 

3.4    All procurement of educational requirements shall be done through open competitive bidding, unless an  alternative  procurement  method  is  justified  pursuant  to  the  relevant  provisions  in  the  Public Procurement and Disposal Act 2005, Public Procurement and Disposal Regulations 2006, the PPOA Procurement and Disposal General Manual or this Schools and Colleges Procurement Manual.

 

3.5    There should be continuous improvement of procurement processes by procuring entities to ensure simplicity, efficiency and cost effectiveness.

 

3.6    Procurement should be planned to enable prudent management of budgets and value optimization.

 

3.7    Procuring entities should endeavour to realize benefits of economies of scale by consolidating orders and purchasing routine educational requirements through framework contracts where feasible.

 

3.8    Procuring entities should keep abreast of best practices for procurement of educational goods, works and services through benchmarking with similar entities to facilitate continuous improvement of the procedures.

 

4.0       OBJECTIVES OF THE MANUAL

 

4.1    Introductions

 

This Manual is designed to enable schools and colleges to meet their obligations under the PPDA

2005 and the PPD Regulations 2006.

 

4.2    Specific objectives of this Manual

 

4.2.1    To guide procuring entities to comply with Act, Regulations and guidelines.

4.2.2    To  enhance  economy  and  efficiency  by  allowing  competition  among  suppliers  through

open  tendering  or  alternative  procurement  methods  in  accordance  with  the  Act  and  the

Regulations.

4.2.3    To  increase  transparency  by  following  formal  written procedures throughout  the  process and using explicit criteria to award contracts. To the extent possible, information on tender processes should be made available to the public.

4.2.4    To  increase  integrity  and  public  confidence  by  adopting  procedures  that  ensures  fair

treatment of suppliers.

4.2.5    To   ensure   full   accountability   through   proper   management   and   monitoring   of   the

procurement process.

4.2.6    To  ensure  the  lowest  possible  total cost  without  compromising  quality  by carrying  out

procurement  in  a  manner  designed  to  realize  the  lowest  possible  total.   Efforts  should  be made to avoid hidden costs that may accrue from poor product quality, poor supplier performance  or  short  shelf-life  and  inventory holding  costs at  various  levels of the  supply chain.

4.2.7    To ensure timely deliveries

Logistic  systems  should  be  developed  and  implemented  to  ensure  timely  delivery  of

appropriate quantities to the right destinations in schools and colleges.

4.2.8    To separate the procurement functions and authorizations

Procurement   functions   and   responsibilities,   such   as   selection,   quantification,   product specification, pre-selection of suppliers and evaluation of tenders should  be divided among

different   offices,   committees  and   individuals  each  with  the  appropriate  expertise  and resources in line with PPD Act Section 26(3) (c).

4.2.9    To prepare specifications

The   PE’s   educational   requirements   should   be   given   consideration   when   developing

procurement specifications. Specifications should be developed by a multi-functional ad hoc team in order to incorporate all the necessary professional inputs. The specifications should be as generic as possible.

4.2.10  To evaluate and measure the suppliers’ performance

Systematic evaluation and  measurement  of suppliers’ performance should  be undertaken to ensure compliance with the terms and conditions of contract, as set out  in Section 18.0 on

Procurement Performance Evaluation and Measurement of this Manual;

4.2.11  To automate the procurement process

Procurement  processes are to  be computerized to the  maximum extent  possible  in order to integrate the operations between Procurement Units and other departments. This will speed

up routine transactions and information flow.

 

4.2.12  To maintain optimal inventory levels

Inventory  levels  should  be  maintained  in  accordance  with  the  inventory  management procedures set out in this Manual. The levels will ensure the best possible services to users at

the lowest cost.  Replenishment   should   be   undertaken  after   considering   the   actual  and anticipated  use  based  on  inventory  management  procedures  in  place.    Replenishment  of

stocks  should  be  carried  out  in  accordance  with  the  procedures  in  section  17.0  of  this

Manual.

4.2.13 To observe ethical practices in the procurement process

All procurement should be carried out ethically in line with the provisions of this Manual.

 

 

5.0       INSTITUTIONAL ARRANGEMENTS FOR OVERSIGHT

 

5.1    Introduction

 

It  is   necessary  to  have   legal  institutional  arrangements   for   good  governance,   oversight   and regulatory  functions.    Oversight  and  regulatory  functions  are  the  prerogatives  of  the  PPOA  on matters of public sector procurement.   In schools and colleges compliance with legal provisions of the Act and the Regulations must be enforced through the institutional framework in the procuring entities established under Part III (Internal Organization of Public Procurement Entities Relating to Procurement) of the PPDA 2005.

 

 

5.2    The Regulatory and Oversight Role of PPOA

 

PPOA shall ensure that the public procurement procedures and rules established under the PPD Act and the PPD Regulations are complied with.   PPOA shall perform all the regulatory and oversight function set out in the PPD Act and the PPD Regulations.

 

5.3    The Ministry of Education Headquarters

The  Accounting  Officer  as Head  of the  Ministry of Education  is responsible  for  ensuring  that  the

Public Procurement and Disposal Act, Regulations and any circulars issued by Public Procurement

Oversight   Authority   are   complied   with   at   the   Ministry   level.   The   Ministry   of   Education Headquarters is a Procuring Entity that shall plan and undertake procurement functions as set out in the Act and Regulations.

.

5.4    Colleges

The  Director/  Principal  as  Head  of  Procuring  Entity  is   responsible  for  ensuring  that  the  Public

Procurement  and  Disposal  Act,  Regulations  and  any  circulars  issued  by  Public  Procurement Oversight  Authority are  complied  with  in  respect  of its procurements.  The  college  as a  Procuring Entity  shall  plan  and  undertake  procurement  functions  as  set  out  in  the  First  Schedule  of  the Regulations –Threshold Matrix and the Second Schedule – College Tender Committee.

 

5.5    Schools

The Head Teacher / Principal as Head of Procuring Entity is responsible for ensuring that the Public

Procurement  and  Disposal  Act,  Regulations  and  any  circulars  issued  by  Public  Procurement

Oversight  Authority  are  complied  with  in  respect  of  each  of  its  procurements.  The  school  as  a Procuring Entity shall plan and undertake procurement functions as set out in the First Schedule of the Regulations – Threshold Matrix and the Second Schedule – Schools Tender Committee.

 

5.6    Procurement Organization of Schools and Colleges

 

5.6.1    Head of Department /Sections

The Heads of the procurement departments in colleges or the heads of the sections in schools

are  responsible  for  ensuring  that  the  procurement  functions  are  performed  as  set  out  in

Regulation 9 of the Public Procurement and Regulations.

 

5.6.2    Procurement Unit

 

  1. a) The procurement  process  at  this  level will  be  coordinated  by the  officer  designated  to handle  procurement  in  the    The  Head  of  the  Procurement  Unit  shall  be responsible  to  the  head  of  the  institution.  S/he  should  provide  guidance  to  HoDs  on preparation of their procurement plans, delivery scheduling and give technical advice on issues of procurement.
  2. b) The Unit is responsible for performance of functions set out in Regulation 7 of the PPDR

2006.

 

5.6.3    Tender Committees

 

The Tender Committees for Schools and Colleges shall be  formed  in  line with the Second Schedule  (Composition of Tender Committees)  item No  6  for Colleges Tender Committee and item No. 7 for Schools Tender Committee. The Committees shall perform their functions in accordance with the provisions of Regulations 10, 11, and 12 of the PPDR 2006.  Schools and colleges which have insufficient staff to constitute  Tender Committees as required in the Second  Schedule  should  consider  forming  joint  committees  with  neighbouring  schools  or colleges or  make use of a  procuring  agent  in accordance with Section 28  of the PPD  Act. Alternatively, they should consult PPOA for direction.

 

5.6.4    Procurement Committees

 

The  Procurement  Committees  for  Schools  and  Colleges  shall  be  formed  in  line  with Regulation 13. They shall perform their functions in accordance with Regulations 14 and 15 of the PPDR 2006.

 

5.7    Classification of Procuring Entities (Schools and Colleges)

 

Class A Procuring

Entities

Class B Procuring

Entities

Class C Procuring Entities

 

Ministry of Education Head

Headquarters

Colleges                            Primary, Secondary Schools

Polytechnics

 

 

6.0        PROCUREMENT PLANNING FOR SCHOOLS & COLLEGES

 

6.1    Procurement Plan

 

6.1.1    The  procurement  plan  is  an  instrument  for  implementation  of  the  budget  and  should  be prepared  by  the  user  departments  in  order  to  avoid  or  minimize  urgent  procurements  that delay or frustrate efforts put in place to realize set objectives.

6.1.2   The procurement plan must be integrated into the budget processes. It should be based on the indicative  or  approved  budget,  as  appropriate,  and  as  provided  in  Regulation  20(2)  of the PPDR 2006.

6.1.3    The budget as well as the procurement plan shall be based on realistic cost estimates derived

from the market research database compiled and updated regularly by the Procurement Unit as provided in Regulation 8 (3) (z) of the PPDR 2006.

6.1.4    The   departmental/sectional   procurement   plans   shall   be   consolidated   by   the   Head   of

Procurement Unit to come up with an institution’s corporate procurement plan.

6.1.5    The Procurement Unit should verify the departmental /sectional procurement plans to ensure that   they   are   representative   of   the   operational   requirements   of   the   institution   and subsequently forward the same to the Head of Procuring Entity for approval.

6.1.6    The plan must not be implemented before approval by the Head of the Procuring Entity, who

may modify the plan according to available resources.

6.1.7    The contents of a procurement plan should adopt the format provided at Appendix (B) of this

Manual.

 

6.2    Procurement Planning Procedures

 

6.2.1    Each  individual  PU   shall  prepare   a  procurement   plan  based  on  known  or   proposed procurement requirements derived from program departmental work plans.

 

6.2.2     The  work  plan  from  which  the  contents  of  the  procurement  plan  are  to  be  derived  shall include:

  1. a) A detailed breakdown of goods, works and services to be procured;
  2. b) A schedule of procurement requirements in order of priority; and
  3. c) A statement of financial and other resources required supported by a schedule.

 

 

6.2.3    In planning their procurement activities, the PU should take the following into account:

  1. a) Information in the PU Work Plans referred in sub-section 6.2.2 above;
  2. b) Consolidation of requirements to achieve volume discounts and thus lower unit costs;
  3. c) Allocation of biddable lots ensuring that requirements are not split up without a justified reason;
  4. d) Joint procurement with other PUs where possible to combine similar requirements;
  5. e) Pre-qualification to cover  groups of contracts where  similar  goods,  works,  services are required during the financial year;
  6. f) Supporting descriptions, specifications and estimated costs;

 

  1. g) The institution’s  budgets,  with  any  requirement  in  excess  being  reviewed  and  scaled down as appropriate;
  2. h) The appropriate  method  for  procurement  depending  on  the  thresholds  set  out  in  this

Manual; and

  1. i) A procurement schedule showing the various tasks required in the procurement and the

expected delivery time.

 

6.2.4    Where  appropriate,  multi-year  procurement  plans  may  be  prepared  and  integrated  into  the

Medium Term Expenditure (budgetary) Framework (MTEF).

 

6.2.5    The plan should be supported by inventory information, operational requirements, project or specific program requirements.

 

6.2.6    The profile for past procurements validated by the latest market research information should be  provided  by  the  Head  of  the  Procurement  Unit.  This  information  should  be  used  to enhance preparation of a realistic procurement plan.

 

6.2.7    The procurement profile should include, but not be limited to the following information:

  1. a) Goods and services purchased and how much was spent on them;
  2. b) How goods and services were purchased;
  3. c) Sources of supply and their geographical location; and d) Criticality of the goods and services to the organisation.

 

6.2.8    Market research databases referred to under sub-section 6.1.3 above should provide but not be limited to the following information:

  1. a) Suppliers’ market shares;
  2. b) Availability of alternative or substitute products;
  3. c) Degree and type of competition between suppliers;
  4. d) Technological trends;
  5. e) Price indices;
  6. f) Environmental factors that affect the supply market.

 

6.2.9    The procurement  method to be used should be selected in accordance with the information contained in the market research data bank and the Threshold Matrix of the PPDR 2006.

 

6.3    Total Cost of Acquisition

 

6.3.1    The  total  cost  of  acquisition  should  be  factored  into  the  procurement  plan  to  avoid inconveniences and delays in clearing of imported products that may arise from inadequate resource preparation to paying off unplanned for port and inland transportation charges.

 

6.3.2    In   case    of   educational   capital   equipment,    the    costs   should    include    installation, commissioning,  testing,  maintenance,  training  and  operational  cost  such  as  energy  and consumables (if necessary).

 

6.3.3    The  Procurement  Unit  should  provide  market  information  on  prices,  technology,  logistics rates to be used in preparation of the budget and a procurement plan.

 

6.3.4    Forecasting should be undertaken by the Procurement Unit in order to improve or adjust the past process.

 

 

 

Example:  (Pursuant to sub-section 6.3.1 above) Procurement of educational products and consumables Cost factors:

Price of books bought from a Nairobi bookshop                      Ksh 10,000,000.00

Transport and handling from Nairobi to the School                 Ksh      500,000.00

Total procurement cost                                                           Ksh 10,500,000.00

 

6.4    Total Cost Factor for Programmes in a Procurement Plan

 

6.4.1    Education  sector  programmes  cover  procurement  of  consultancy  services,  construction (works),  supply  of  materials  and  other  non-consultancy  services  and  logistical  services. These  purchases  should   be  classified  under   various  components  to   enhance  effective procurement planning.

 

6.4.2    Once the categorization is done, the timeframe for accomplishment of each category is to be carefully  determined.  It  may  be  necessary  to  apply  the  project  network  techniques  for effective management of all the associated activities within the time lines set.

 

6.5   Total Cost factor for Capital Equipment in a Procurement Plan

 

6.5.1    For  high  value  capital  equipment,  the  current  prices  should  be  obtained  through  market research to avoid substantial variances in the budget and the procurement plan.

 

6.5.2    Capital  items  typically  have  a  life  of  many  years  and  hence  have  a  number  of  costs associated with them beyond the purchase price, for example the operational cost of motor vehicles.  The total cost of ownership should be calculated by applying life cycle costing.

 

6.5.3    The components of Life Cycle Cost for Capital Equipment

Life cycle cost = Cost of Acquisition + Cost of ownership over the equipment’s useful life Equipment to be bought should have the  lowest Life Cycle Cost, as opposed to resorting to the lowest purchase price which may result in high cost of ownership.   Life Cycle Cost must be correctly computed and ascertained before a purchase is taken into consideration.

 

The  Cost  of  Acquisition  includes  design,  specifying,  purchasing,  receiving,  storage,  and payment.

 

The Costs of Ownership include installation, commissioning, operation, maintenance, servicing, upgrading, disposal (un-serviceability, trade-in, obsolescence).

 

 

6.6    Planning for Equipment Maintenance and Repairs

 

6.6.1    In order to take account of costs of ownership, provision should be made in the procurement plan and the budget for maintenance and repairs.

 

6.6.2    Initially the procurement contract may include maintenance with clearly set out service level agreements for a period of time after the expiry of the warranty period.

 

6.6.3    All educational capital equipment should be subject to a preventive maintenance programme as well as repairs to ensure prolonged operational efficiency of the equipment.

 

6.6.4    In case an existing procurement  contract  does not  cater for maintenance and servicing, the procuring  entity  should  appraise  and  register  service  providers  after  establishing  that  they have proven technical expertise to maintain the equipment.

 

6.6.5    The service providers should preferably be authorized agents for the relevant equipment.

 

6.6.6    Proof of agency  may  be  demonstrated  by  local agents producing  manufacturer’s  letters of authorization.

 

6.6.7    The procuring entity should plan for disposal and subsequent replacement of such equipment once they become old and expensive to run or have become technologically obsolete.

 

6.6.8    The Heads of Departments should submit  their plans to the Head of the  Procurement  Unit who should study and consolidate them and compile a master plan for approval by the Head of Procuring Entity.

 

6.6.9    The plan should be submitted at least 30 days before the end of each financial year.

 

6.6.10  The procurement plan should be prepared in the format provided under Appendix B of this

Manual.

 

6.7    Implementation of Procurement Plan

 

6.7.1    Unplanned  requirements  that  arise  out  of  unforeseen  operational  needs  or  changes  to  the user’s annual procurement plans should be communicated to the heads of procurement units in each Program Unit immediately whenever such changes occur.

 

6.7.2    Regular reports on implementation of the plan should be prepared by the Procurement Unit.

The  report  is  to  include  compliance  or  variances  if  any  from  the  plan  and  the  identified courses of such variances for remedial action.

 

6.7.3    The  report   referred  to   under   section  6.7.2  should   be   submitted  to  the  Head  of  the Procurement  Unit  or  Head  of  Procuring  Entity,  as  applicable  and  copied  to  the  Heads  of Departments, including Heads of Finance or School Bursar.

 

6.7.4    As  far  as  practicable,  any  existing  suitable  substitutes  or  alternative  products  should  be considered before initiating procurement of products not in the plan.

 

6.7.5    Where  possible, requirements should  be  bundled  into  homogenous lots in the  procurement plan and transferred to the bidding documents as follows:

  1. a) The number of lots or packages;
  2. b) The nature and size of each lot;

 

  1. c) The minimum and maximum number of lots a Tenderer may bid; and d) The proportion of each lot that a Tenderer shall tender for.

 

 

6.7.6    The  procurement  plan  will  form  the  basis  for  monitoring  procurements.  The  procurement process should be reviewed quarterly.

 

6.7.7    The PU will ensure that no non urgent requirements are acted upon unless supported by an approved  procurement  plan  drawn  in  accordance  with  the  format  given  in  this  Manual  as shown in Appendix B.

 

 

7.0    SPECIFICATION OF EDUCATIONAL SUPPLIES

 

Specifying educational products can be  very challenging where the products are not  standard. The general  guidelines  below  provide  an  outline  for  consideration  on  preparation  of  specifications. However, the guidelines are by no means prescriptive or exhaustive.

 

7.1    A Committee of Specialists

 

  1. a) It is  advisable  to  engage  the  services  of  an  ad  hoc  committee  of  specialists  including  a representative  of  the  Procurement  Unit  to  specify  schools  and  colleges    For example, in specifying of laboratory chemicals, the ad hoc committee to develop specifications could be composed of the laboratory technician, the science teacher and a representative of the Procurement Unit.
  2. b) Where the  expertise  referred  to  in  sub-section  71  (a)  above  does  not  exist  in  the  school  or

college, an expert may be co-opted from another PE or Government agency.   For example, if a school plans to  construct  a  building  or  buy a  bus,  the  school or  college  should  seek  technical assistance   from  the   nearest   Ministry  of  Public   Works  Mechanical  Engineer   or   Quantity Surveyor/Architect  respectively or  from a  private  consultants acquired  in  accordance  with  the Request for Proposal procurement method as set out Part VI (c) of the PPD Act.

 

7.2    Generic Specifications

 

7.2.1    Specifications  are  to  describe  functions  and  performance  in  order  to  avoid  elements  that restrict competition such as brand, trade names, origin, patent, design or type and producer or service  provider  except  where  there  is  no  other  sufficiently  precise  or  intelligible  way  to describe the requirements,  in which case the phrase  “or equivalent” should  be  included,  in accordance  with  the  criteria  set  out  in  Section  34  (4)  of  the  PPDA  2005.    When  a  high number  of  bidders  respond,  there  are  good  prospects  of  obtaining  a  competitive  bid  to supply.

 

7.2.2    The procurement of textbooks and other instructional materials should follow the guidelines laid  down  in  the  Approved  List  of  Primary  and  Secondary  School  Textbooks  and  Other Instructional Materials, issued by the Ministry of Education.

 

7.3    Scope of Specifications

 

The specifications should be initiated by users and be prepared in a clear and unambiguous manner. They should cover product descriptions and supporting services such as delivery requirements and the  service  responsiveness  required  of  a  supplier  where  necessary.   The  specifications  should  be perused by the Procurement Unit to ensure that they are clear, complete and based on functional and performance requirements.

 

7.4    Specifications of Perishable Items

 

The specifications should state the minimum shelf life that suppliers have to comply with in case of perishable items such as food for the school canteens.

 

7.5    Specifications for Hazardous Products

 

The  specifications  for  hazardous  products  should  include  instructions  on  usage  and  handling  of hazardous products in general and  laboratory chemicals  in  particular.   The  instructions should  be inscribed on the product packaging or on fliers, insert leaflets or brochures which should accompany such hazardous products when being delivered. The information should provide for proper usage and handling in a manner to avoid injury.  The instructions should cover precautions against mishandling of hazardous materials,  brief information promoting  safe  handling,  warning  against  usage  of such product  for purposes for which they are  not  intended,  first  aid advice  in the  event  of accidents or injury arising from mishandling and any other important information.

 

 

 

7.6   Demonstration and Samples

 

  1. a) When it is difficult to specify consumables such as laboratory chemicals and reagents adequately and clearly, potential suppliers may be asked to demonstrate performance of a product. Otherwise the  samples  should  be  accompanied  by  a  certificate  of  conformance  to  specifications  from  an authorized laboratory e.g. the Kenya Bureau of Standards.
  2. b) Where appropriate, items like chemicals and detergents may be subjected to testing by bidders to

demonstrate effectiveness or appropriate method of use at the procuring entity’s premises.

  1. c) Once a sample has been approved, it should be kept securely by the procuring entity for future

comparison to delivery lots for conformance of sample.

 

7.7    Educational Equipments’ Technical Specifications

 

Educational equipment specifications generally include but not limited to the following:

  1. a) Physical characteristics (dimensions, strength, etc);
  2. b) Design details;
  3. c) Capacity;
  4. d) Tolerances;
  5. e) Materials used;
  6. f) Processes/ methods involved in production; and g) Maintenance requirements.

 

7.8   Specification of Composition

 

Specification  composition  should  be  generally  stated  in  terms  of  physical  as  well  as  chemical characteristics. These could include things such as paper grammage, type and style of binding (e.g. soft or hard cover books; stapled or spiral bound or sewn or glued), weight, volume, level of purity, density,  ingredients,  additives  etc.  This  type  of  specification  is  often  used  for  raw  materials, commodities, foods, liquids and pharmaceuticals for clinics.

 

7.9    Service Specifications

 

The specifications of services which are routine in nature such as maintenance, transport, cleaning security,  and  catering  among  other  services,  should  be  in  terms  of  output  which  should  be measurable and time-bound.

 

Examples of service specifications

 

Type of Service      Specification examples

Transport                Deliver  the  specified  goods  –  without  damage  or  loss  to  the  specified destination within a period not exceeding 15 days

Cleaning                  Provide  high quality cleaning  services once  a  day to  all the  classrooms, dormitories, staff rooms and dining hall using approved detergents.

 

7.10  Specifying Testing and Inspections

 

In addition to specifying performance of an equipment or product for the schools and colleges, it is prudent to specify testing and inspection requirements in order to derive confidence in the delivered items, as follows:

  1. c) In-process testing  and  inspection  at  the  manufacturing  stage  including  assessment  of  quality assurance documentation in place at the end of production or pre-shipment inspection (PSI);
  2. d) Use of technical expertise in any specific area e.g. engineers, mechanics etc;
  3. e) Acceptance testing at the time of receipt, installation and /or commissioning; and
  4. f) The party to  meet  the  cost  of testing  and  inspection  is  to  be  explicitly  determined  in  the  bid document and the contract.

 

7.11 National and International Standards

 

The relevant national or international standards should be used to enhance testing, inspection and suppliers responsiveness.

 

 

8.0       CHOICE OF PROCUREMENT METHODS AND STEPS

 

8.1    Open Tender Method

 

The preferred procurement method is open tendering as provided in Section 29 of the PPDA 2005. The details of how open tenders should be conducted are contained in Part V of the Act.  However, where  open  tendering  is  not  the  appropriate  method,  the  Act  provides  for  use  of  alternative procurement methods subject to fulfilling the conditions provided under Part VI of the Act.

 

8.2    Alternative Procurement Methods

 

Where open tendering is not feasible and justified under Part VI of the PP&D Act 2005 and included in the procurement plan, a procuring entity may use the following alternative procurement methods as provided in the PPD Act and the Regulations:

 

  1. a) Restricted tendering; b) Direct procurement; c)         Request for Proposal;
  2. d) Request for quotation;
  3. e) Low level procurement; and
  4. f) Specially permitted procurement.

 

Further guidance on the use of open and alternative procurement methods can be found in the Public

Procurement and Disposal General Manual.

 

8.3    Review of Selection of Procurement Method other than Open Tender

 

The  tender  committee  shall  review  the  selection  of  any  procurement  method  other  than  open tendering, pursuant to Regulation 10 (2) (h) of the PPD Regulations.

 

 

8.4    Framework Contracts

 

Framework contracts are arrangements whereby one or more companies are contracted to provide services for a period of one or more years at  an agreed price among other contract terms. Users draw  from  the  contract  as  and  when  the  procurements  are  needed.    Framework  contracts  are particularly suitable for goods and services that are required on a regular basis such as foodstuffs, books, uniforms building materials for regular maintenance and any other items of routine nature. The PPOA will be issuing Guidelines on the procurement of framework contracts.

 

8.5    Procurement Steps

 

The following are the generic steps for procurement of goods, services and works.

 

Table 3:  Steps in the Procurement Process

 

No.       Step Description                                                                                             Responsibility

1          Prepare procurement plan for each department                                               Head of Department

 

2         Consolidate and present the procurement plan containing details of the goods, works or services required to the Head of Procuring Entity for approval

Head of PU

 

3          Review and if satisfied, approve procurement plan                                         Head Teacher/Principal

 

4         Invite quotations from at least 3 suppliers appearing in the register of pre-qualified/known suppliers or invite bids through Open or Restricted Tenders in line with PPD  Act and Regulations

5         Evaluate bids and recommend for selection of the best in terms of price and quality

Head of Procurement Unit

 

 

 

Evaluation committee

 

6          Make award to the lowest evaluated bidder                                                     Tender/ Procurement

Committee

 

7         Communicate award to successful bidders and debrief unsuccessful bidders simultaneously

 

8         Prepare the contract for supply of goods, works or services, and arrange for the signing between the selected supplier and the school

9         The written contract shall be signed after an elapse of  fourteen days from the date of award  notification

Head of Procurement Unit

 

 

Head of Procurement Unit

 

Head of Procuring Entity and

Supplier

 

9          Contract  Administration                                                                                  Representatives of Procuring

Entity and the Supplier

 

10       Supply of Goods and  services or completion of works as per terms and conditions of contract

11        Inspection and Verification of revived goods or rendered services or

Completed works

Supplier / Contractors

 

Inspection and Acceptance

Committee

 

12        Payment of Suppliers and contractors                                                              Procurement Unit and Accounts

Department.

13        Record Keeping                                                                                               Procurement Unit and all

Departments

 

 

9.0    URGENT PROCUREMENT

 

 

 

9.1    Introduction

 

Urgent  procurement  may be resorted to  under exceptional circumstances within the context  of the definition of “Urgent Needs” in Part I, Section 3 (1) of the PPD Act.

 

9.2    Procedures to Minimize Urgent Procurements

 

9.2.1    Business  Continuity  Plan  as  a  Criteria  for  Registration  and/or  Pre-qualification  of

Potential Suppliers

 

  1. a) Among the criteria for appraising potential suppliers for pre-qualification should be the suppliers’ preparedness to respond to emergencies.  The ability will be evidenced by the existence of a business continuity plan which should enable the suppliers to respond to queries or inquiries promptly.
  2. b) Other criteria may be an established relationship with own suppliers, readiness to allow

exchange  of  proprietary  information  with  the  procuring  entity,  inventory  policy  that would  enable  emergency  inventory  back-up  and  the  firm’s  own  emergency  response procedures.

  1. c) The prerequisites in this sub-section would be assurance that  a  supplier  would respond

appropriately  to  an  emergency  procurement  when  approached  by  the  procuring  entity. These  criteria  should  therefore  be  considered  as  positive  attributes  in  supplier  pre- qualification or selection for existing or potential business.

 

9.2.2    Procurement of Goods and Services covered by Framework Contracts

 

 

Framework contracts should be formulated to cater for procurement of requirements such as stationery  and  office  support  consumables  to  run  for  durations  of  one  or  more  years. Framework contracts should be in accordance with guidance issued by the PPOA and should include:

 

  1. a) A realistic estimate of the expected quantities to be purchased based on monitoring of past purchases and research of users’ requirements; and
  2. b) A minimal contractual quantity.

 

 

Once   the   framework  contract   is   in  place,   prompt   acquisition  of  supplies   in  case  of emergencies  and  disasters  can  be  done  by  directly  issuing  LPO/LSO  against  existing contracts without resorting to fresh invitations to bid.

 

9.2.3    Urgent Procurement of Goods and Services not Covered by Framework Contracts

 

  1. a) In case an emergency procurement is required involving goods and services not covered by the framework contracts, quotations may be invited through fax or e-mail from at least three known or registered firms in line with the RFQ Procurement method as set out in the PPD Act.

 

  1. b) In  case  the  value  of  the  procurement  is  in  excess  of  the  Low  Level  Procurement threshold,  the  relevant  user  department  may,  in  consultation  with  the  in-charge  of procurement  unit  for  the  school  or  college  and  the  Head  of  Procuring  Entity,  initiate transfer of an emergency requirement  from the  nearest     An  item transferred from another institution should be replaced as soon as possible.

 

  1. c) The bids so received are to be evaluated by at least two responsible officers appointed by the relevant Head of Department. The committee will select the lowest evaluated price from among the responsive bids.

 

  1. d) A comprehensive report shall be prepared by the relevant head of department where the disaster or  emergency  occurred  and  forwarded  to  the  head  of  procuring  entity  for information.

 

 

10.0     SUPPLIER SELECTION

 

10.1  Suppliers’ Approved List

 

The  Procurement  Unit  shall  select  suppliers  through  appraisal  of  potential  suppliers  in  order  to compile and maintain a suppliers’ database/list or for award of contracts for supply of specific goods and/or services. The appraisal process is to identify supplier capabilities in order to register or pre- qualify them in line with Regulation 8 (3) or Regulation 23 of the PPD Regulations.

 

When difficulty is  encountered  in  locating  suitable  sources of supply  for  required  services,  goods and works, a list of registered or pre-qualified suppliers and contractors from other procuring entities dealing  in similar supplies may be obtained.   All suppliers who  have  not  been debarred by PPOA from  participating  in  procurement  proceedings  are  eligible  to  compete.    The  following  are  the supplier selection procedures:

 

 

10.1.1  Registration of Suppliers

 

Registration  of  suppliers  should  be  preceded  by  appraisal  of  potential  suppliers  through analysis of responses to questionnaires for registration in accordance with PPDR Regulation

8  (3) (a).   Invitations under  certain alternative  procurement  procedures,  where  appropriate, may be confined to suppliers on the registered list.

 

 

10.1.2  Pre-qualification of Suppliers

 

The  pre-qualification of suppliers shall  be  undertaken  as provided  in  Regulation 23  of the PPDR  2006  to  enhance  short  listing  of  suppliers  for  specific  procurements.  The  standard document for pre-qualification shall be used and may be modified as appropriate.

 

 

10.1.3  Exclusion of members of Parents and Teachers Association (PTA) in list of Suppliers

 

The  parents  who  are  PTA  members  and  are  involved  in  making  procurement  related decisions  should  neither  be  registered,  pre-qualified  nor  subsequently  contracted  to  supply goods, services or works to the procuring entity in which they are PTA members. Doing so would be tantamount to conflict of interest contrary to section 33 (a) of the PPD Act.

 

 

 

10.2  Sourcing of Offers by Procurement Methods other than Open Tendering

 

Solicitation  for  offers  through  alternative  procurement  methods  pursuant  to  Part  VI  of the  Public Procurement  and  Disposal Act  2005  may be carried  out  from the database  of pre-qualified and/or registered suppliers.

 

 

 

11.0     BIDS EVALUATION PROCEDURE

 

11.1  The Evaluation Criteria

 

11.1.1  The following factors should be taken into account during bid evaluation:

  1. a) Suppliers’ economic standing;
  2. b) Suppliers’ legal  standing  –  whether  authorised  to  operate  as  a  supplier/vendor  of  the proposed goods or services as per statutory requirements;
  3. c) Suppliers’ relevant experience;
  4. d) Suppliers’ technical capacity to perform the proposed contract;
  5. e) Suppliers’ responsiveness to the tender technical requirements;
  6. f) Suppliers’ price for delivering the goods or performing the services;
  7. g) Total cost for delivering the services;
  8. h) Reliability, integrity and reputation;
  9. i) Quality, production capacity and flexibility;
  10. j) Credit terms given by the supplier; and
  11. k) Delivery period and ability to meet required deadlines.

 

11.1.2  An objective  method of measuring  and ascertaining the above criteria  has to  be devised to enable comparison and differentiation between participating bidders.

 

 

11.2  Consistent application of evaluation criteria

 

No evaluation criteria other than that stated in the bid document shall be used in the evaluation of the tender for responsiveness.

 

11.3  Recommendation of the Lowest Evaluated Bidder

 

  1. a) All other  factors  being  equal,  the  bid  offering  the  lowest  total  cost  of  supply  (inclusive  of relevant  taxes,  freight  and  custom  duty,  etc)  should  be  accepted,  subject  to  the  product conforming to all mandatory technical specifications.
  2. b) If the award is not made to the lowest bidder, a full and complete statement of the reasons for not

awarding the lowest evaluated bidder shall be prepared.

  1. c) A sample evaluation template is attached in Appendix C of this Manual.

 

11.4  The Tender Evaluation Committee

 

The  evaluation  committee  should  be  composed  of  a  chairman  and  at  least  two  other  members appointed by the Principal or Head Teacher upon recommendation by the Procurement Unit.

 

11.4.1  For procurement of items with technical specifications, schools and colleges shall establish an  evaluation  committee  for  the  purposes  of  carrying  out  the  technical  and  financial evaluation of the tenders or proposals.

 

11.4.2  No person shall be appointed to an evaluation committee if such person is a member of the tender committee of the school or college.

 

11.4.3  A technical committee shall be responsible for:

 

  1. a) The technical evaluation of the  tenders or  proposals received  in  strict  adherence  to the compliance and evaluation criteria set out in the tender document; and
  2. b) Performing the evaluation with all due diligence and within a period of thirty days after

the opening of the tenders.

 

 

 

11.4.4  Preliminary Evaluation (Examination)

 

Upon opening of tenders pursuant to Section 60 of PPD Act, the evaluation committee shall first conduct a preliminary evaluation to determine whether:

  1. a) The tender has been submitted in the required format;
  2. b) Any tender security submitted is in the required from, amount and validity period;
  3. c) The tender has been signed by the person lawfully authorised to do so;
  4. d) The required number of copies of the tender have been submitted;
  5. e) The tender is valid for the required period
  6. f) All the required documents and information have been submitted; and g) Any required samples have been submitted.

 

11.4.5  Technical Evaluation

 

Upon  completion  of  preliminary  evaluation  of  tenders  under  Regulation  47  of  PPDR,  the evaluation  committee  shall  then  conduct  a  technical  evaluation  by  comparing  each  tender with the technical requirements of the description of goods, works or services in the tender document.   Responsive bids are those for which the products meet the mandatory technical requirements  as  set  out  in  the  tender  documents.   However,  minor  deviations  that  do  not materially differ from the requirements set out in the tender documents, errors or oversights that can be corrected without affecting the substance of the tender do not render the tender irresponsive.

 

11.4.6  Financial Evaluation

 

Upon  completion  of  technical  evaluation  of  tenders  under  Regulation  49  of  PPDR,  the evaluation committee shall then conduct a financial evaluation and comparison. This will be to determine the lowest evaluated price from among the technically qualified bidders.

 

11.4.7  Evaluation Report

 

An evaluation committee shall prepare a report on the analysis of the tenders received, and final ratings assigned to each tender and submit the report to the tender committee.   The evaluation committee report shall include:

 

  1. a) Minutes of the opening of the tenders or proposals;

 

  1. b) Results of the preliminary evaluation,  with reasons why any tenders or proposals were rejected;
  2. c) Scores awarded by each evaluator for each tender or proposal;
  3. d) Summary of the relative strengths and weaknesses of each tender or proposal;
  4. e) Total score for each tender or proposal; and
  5. f) A recommendation to award the tender to the  lowest  evaluated bidder or to the person who submitted the proposal with the highest total score in case of an RFP.

 

NoteThe evaluation and comparison shall be done using the procedures and criteria set out in the tender documents and no other criteria shall be used.

 

 

12.0  CONTRACT AWARD

 

 

 

12.1     Following  completion  of  tender  evaluation,  an  evaluation  report  shall  be  prepared  in accordance with Regulation 51 (1) of the PPD Regulations, for consideration by the tender committee, which determines who has submitted the successful tender.

 

12.2     The procuring entity should then notify the person submitting the successful tender that his tender has been accepted.   At the same time, all other persons who have submitted tenders shall be notified that their tenders were not successful.

 

12.3     The  procuring  entity  shall  before  expiry  of  the  period  during  which  tenders  must  remain valid enter into a written contract based on the tender documents with the person submitting the  successful  tender.    The  contract  will  specify  the  contractual  obligations  between  the bidder  and  the  PE  including  the  expected  deliverables  from  the  full  performance  of  the contract.

 

12.4     This written contract  must  not  be entered into  until at  least  14 days have elapsed  from the giving of notification to both the successful and the unsuccessful tenderers.

 

12.5     An unsuccessful tenderer may seek an administrative review of the procurement proceedings in accordance with Part VII of the PPD Act.  In this event, the secretary to the Review Board shall notify the procuring entity of the pending review and the suspension of the procurement proceedings.

 

 

 

13.0  CONTRACT ADMINISTRATION

 

13.1  Purpose of Contract Administration

 

Managing a contract after its award is important to ensure that a procuring entity gets the  value it expects from the money it spends. It also enhances supplier relationship management that guarantees beneficial contractual undertakings and dispute avoidance.

 

13.2  Appointment of Contract Manager

13.2.1  A contract manager should be appointed to carry out the functions identified in Chapter 9 of

the Public Procurement and Disposal General Manual. For significantly large and/or complex services,  such  as  framework  contracts  that  run  for  more  than  one  year,  formal  contract management teams might be appointed, under the chair of the contract manager.

13.2.2  Spot  (one  off)  purchases  and  simple/small  framework  contracts  may  not  require  elaborate

contract management, though monitoring performance of these contracts is important.

13.2.3  The  procedures  for  contract  management  as  contained  in  the  General  Manual  should  be

followed carefully by schools and colleges.

 

13.3  Ordering and Receipt Procedures in Schools and Colleges Procurement

 

13.3.1  Ordering of Goods, Works and Services

 

Local Purchase/Service orders (LPO/LSO) will be used to order goods from the successful bidders. They will be signed by (AIE holders) the Head of the Institution or Finance Officer (or  the  equivalent  of  the  Finance  Officer  e.g.  Bursar)  and  recorded  in  the  vote  book  as commitments before they are issued to suppliers. Samples of the LPO/LSO are provided in Appendix I and K.

 

13.3.2  Receipt of Goods, Works and Services

 

Goods received will be verified against the Delivery Note (DN) and LPO/LSO  in terms of quality, technical specifications and quantity.  For items of a technical nature, an expert will certify the  specifications that  include  quality and  acceptable  conditions.   A Goods Receipt Voucher (Appendix J) will be completed to acknowledge receipt.

 

For services, verification will be made with the user department to confirm that services have been provided as per contract.  Where practical, the user department will confirm in writing, and where  necessary, provide agreed written deliverables as per contract  (issue completion certificates).

 

13.3.3  Inspection and Acceptance Committee

 

 

 

The Inspection and Acceptance  Committee shall carry out  its functions in accordance with Regulation 17  of the  PPDR 2006. The  essence  of this Committee’s role  is to  confirm that what is being delivered by the supplier conforms to the specifications of what was ordered by

 

the  organisation.  It  verifies  that  the  supplies,  services  or  works  are  proper  and  in  suitable conditions to be accepted for use, storage and distribution.

 

Schools  and  colleges  inspection  and  acceptance  committees  should  be  composed  of  a chairman and at  least two other members appointed by the Head Teacher/ Principal on the recommendation of the Procurement Unit.

 

The Inspection and Acceptance Committee shall be convened immediately after delivery of the goods, works or services.  The Committee shall:

 

  1. a) Inspect and where necessary test the goods received;
  2. b) Inspect and review the goods, works or services in order to ensure compliance with the

terms and specifications of the contract;

  1. c) Accept or reject, on behalf of the procuring entity, the delivered goods, works or services;
  2. d) Ensure that the correct quantity has been received;
  3. e) Ensure that  the  goods,  works  or  services  meet  the  technical  standards  defined  in  the

contract;

  1. f) Ensure that the goods, works or services have been delivered or completed on time, or

that any delay has been noted;

  1. g) Ensure that all required manuals or documentation have been delivered and received; and
  2. h) Issue interim  or  completion  certificates  or  goods  received  notes  as  appropriate  and  in accordance with the contract.

 

13.3.4  Processing Payment for Received Goods and Services

 

No payment should be made before the Inspection and Verification Certificate is issued.  The certificate should also be attached to the payment vouchers.

 

13.3.5  Records Maintenance and Accounting

 

Stock control registers will be maintained for items received.   The stores ledger is provided in Appendix M.

 

13.3.6  Payment

 

Goods,  works  and  services  received  should  be  paid  for  promptly  in  accordance  with  the procurement plan after all the processes have been completed.

 

13.3.7  Planning for Prompt Settlement of Supplier’s Bills

 

  1. a) The schools   and   colleges   should   prepare   budgets   supporting   their   respective procurement plans. The budget should then be forwarded to the Ministry of Education for approval and inclusion into the master budget for the Ministry.
  2. b) After Budget approval the school or college’s procurement plan should be adjusted to

be  in  line  with  the  budgetary provisions  and  then  be  approved  by the  Head  of the procuring entity.

  1. c) Procurement will subsequently be carried out in accordance with the PPD Act, PPD Regulations, the Public Procurement and Disposal General Manual and this Manual

 

  1. d) The goods  and  services  supplied  and  works  performed  should  be  paid  for   in accordance  with  the  terms,   conditions  and  within  the  duration  set   out   in  the procurement    The  terms  of payment  should  be  matched  with  the  terms  of exchequer issues normally released by the Ministry and estimated schedules for other financial remittances such as fees and parents’ contributions.
  2. e) In case of any delays in any of the above remittances, the payment terms should be negotiated with  the  suppliers  and/or  contractors  and  the  sources  of  such  funds including the Ministry of Education notified accordingly.
  3. f) The Ministry  of  Education  should  be  given  details  of  re-scheduled  payments  and

follow-up made regularly for release of cash to pay the suppliers and/or contractors’

bills.

  1. g) In the process of follow-up of release  of funds,  it  is important  to  keep  in mind the supplier’s  right  under  the  PPD  Act  to  claim  for  interest  accruing  from  payment delayed  for  durations  longer  than  that  stipulated  in  the    Delayed  payment should be avoided since this may jeopardize relations with the supplier and affect his business adversely and interest payments will eventually increase the financial burden to the school or college.

 

13.3.8  Summary of Steps for Ordering and Receiving Goods by Schools and Colleges The following steps will be observed when ordering and receipting of goods and services: Table 6:  Process Steps in Ordering and Receiving goods and Services

No.    Step Description                                                                            Responsibility

1        Raise an LPO/LSO in 4 copies                                                        Procurement Unit

2        Review LPO/LSO and if satisfied, approve it.                                Principal/Head Teacher

 

3       Issue original and duplicate LPO/LSO to supplier, third copy to accounts file and retain book copy.  Ensure supplier signs duplicate to accept order, and returns it to school

4       Receive goods, verify against DN and LPO in terms of quantity, technical specifications and quality.  For items of a technical nature, get an expert to certify specifications, quality and condition.

For service, verify with user that service has been provided per contract. Sign DN/report and complete a GRV

5       Confirm correctness of goods/service receipt against LPO/LSO.  Raise PV and reference supplier invoice. Attach the invoice, LPO/LSO, Receipt Voucher and other relevant supporting document.

6       Review PV and supporting documents and if satisfied, approve payment

7        Observe payment processing procedures in the School

Financial Management Procedures Manual.

Procurement unit

 

 

 

In-charge stores/ Inspection and Acceptance Committee

 

 

 

 

Inspection and

Acceptance Committee

 

 

 

Principal/ Head Teacher

 

Person in-charge of finance

 

 

 

 

13.3.9  Supplies and Fixed Assets Control

 

  1. a) Schools and Colleges should maintain stores registers for recording receipt and issuance of supplies. One register should be for consumables and another for items of a permanent nature whose movements need to be tracked.
  2. b) Fixed assets  should  be  tagged  on  receipt  and  entered  in  the  fixed  assets’  register  for control purpose.  The register for fixed assets will show asset name, unique tag number, location and condition.
  3. c) Regular physical  verification  of  both  fixed  assets  and  stores  will  be  conducted  (stock

taking).  Investigations  of  missing  items,  if  any,  will  be  conducted  immediately  and necessary action taken against those responsible for the loss.

 

13.3.10   Quarterly Management Reports

 

The  Procurement  Unit  should  maintain  records  for  monitoring  procurement  and  updating management on the procurement status.  The monitoring report should show planned versus actual  procurement  performance.  The  report  should  be  analyzed  into  goods,  works  and service.

 

13.4  Procurement Records Management

 

 

PUs  shall  maintain  full  and  comprehensive  records  of  procurement  proceedings  and  contracts management  in  line  with  the  guidelines  in  the  Procurement  Records  Management  Procedures Manual. This Manual may be accessed on the PPOA website (www.ppoa.go.ke) and the guidelines therein should be studied carefully and adhered to.

 

 

14.0  SPECIFIC ISSUES ON SCHOOLS & COLLEGES PROCUREMENT

 

14.1  Procurement of Works

 

Selection  of  some  parents  to  provide  Quantity  Surveyors  or  Architectural  serves  is  prevalent  in schools and colleges.   Such practices, though well meaning,  are tantamount  to  conflict  of interest contrary to Section 43 of the PPD Act and should not be encouraged.

 

14.2 Use of Funds from CDF

 

In case CDF provides funds for use by a school or a college, the procurement procedures should be as set out in the Act, Regulations and this Manual.

 

14.3 Capacity Deficiency

 

Appointment  of  the  same  committee  members  to  serve  in  several  committees  on  procurement process  management  contrary  to  Section  26  (3)  (c)  should  be  avoided  wherever  possible.    The section  states  that   “All   procurements   shall   be   handled   by   different   officers   in   respect   of procurement  initiation,  processing  and  receipt  of  goods,  works and  services”.   The  schools  and colleges experiencing challenges in  formations of procurement  process support  committees in  line with provisions of the Act and the Regulations should consult PPOA.

 

14.4  Procurement of Specialised Products with Limited Local Sources of Supply

 

14.4.1     Items   with   limited   local   sources   of   supply   may   be   obtained   through   International Quotations or International Open or Restricted Tenders depending on the preferred delivery time period and relevant threshold stipulated in the Threshold Matrix in the First Schedule of the PPDR.

 

14.4.2     An  international  tender  has  no  lower  limit  and  the  upper  limit  is  as  provided  for  in  the budget.  However  for  quotations,  though  there  is  no  lower  limit,  the  upper  limits  vary according to the class of a procuring entity according to the Threshold Matrix.

 

14.4.3     However,  to  minimize  the  cost  of  frequent  urgent  and  fragmented  international  orders which may be in small quantities and/or of low value, items should be consolidated in order to realize economies of scale.

 

14.5  Procurement of Books in the ‘Orange Book’

 

The Orange Book compiled by the Ministry of Education provides titles of approved books which should be procured competitively since such books are sold by several distributors. Even though the publisher’s prices may be the same, the selection of the suppliers should be based on capability and responsiveness  to  the  terms  and  conditions  of the  offers  invited  by  the  procurement  entity which forms  the  basis  for  evaluation  in  line  with  Regulation  66  of  the  PPD  Act  and  the  preliminary evaluation  requirements  set  out  in  Regulation  47  (1)  in  the  PPD  Regulation  as  well  as  all  other

 

criteria in the bid document. The evaluation criteria should include the bid price comparison in order to select the lowest evaluated bidder(s).

 

14.6  Centralized Procurements at the Ministry Headquarters

 

Centralization of procurement of some common supplies by the Ministry Headquarters is within the policy of the Ministry to realize economies of scale and save costs that arise from fragmented and decentralised procurements by individual schools and colleges. Such policies should be adhered to until otherwise reviewed by the Accounting Officer and the Ministry of Education.

 

14.7  Quality Control Considerations

 

14.7.1     Quality issues should  start  from a requirement  that  a supplier should demonstrate that  s/he has  established  quality  assurance  systems  in  their  business.   At  a  minimum,  the  business should  be  approved  by  the  relevant  Kenya  quality  assurance  body  e.g.  Kenya  Bureau  of Standards as appropriate.  Pre-qualification as well as award of contract to any supplier must be  premised  on  an  assurance  for  conformance  with  specified  product  quality  prior  to delivery.

 

14.7.2     Process  quality  control  through  collaboration  with  key  suppliers  as  a  defect  avoidance strategy may be a suitable option.  Here the procuring entities ensure that documented quality control steps are followed in the course of product manufacturing.

 

14.7.3     Alternatively, the supply contract should stipulate that pre-shipment inspection be carried out by an approved pre-shipment inspection company and a certificate to that effect issued.  The certificate should accompany the goods.

 

14.7.4     Past performance evaluation criteria with regard to quality systems and compliance should be one of the evaluation criteria to be included in the bidding document.

 

14.7.5     On  receipt,  inspection  by  sample  testing  by  an  independent  body  or  another  alternative quality control procedure may be adopted.

 

14.7.6     The  suppliers  should  be  made  aware  in  the  bid  documents  of  the  preferred  option  for confirming  and  demonstrating   adherence  to   quality  standards  and   how  the  risks  and responsibilities will be shared between the procuring entity and the suppliers.

 

14.7.7     Suppliers should also be made aware through the bid documents of any contractual remedies the procuring entity may resort to in case of delivery with hidden defects or non compliance to  specifications  that  may  be  discovered  at  any stage  of use  or  distribution  of educational products.

 

14.8  Procurement of Donor/Consortium Funded Products or Services

 

14.8.1  Donor/consortium funded products or services should be procured in accordance with section (6)  and  (7)  of  the  PPD  Act  2005  unless  the  procurement  provisions  in  such  agreement stipulates an alternative procedure to be used.

 

14.8.2  The quantities negotiated with the donors should be form part of the normal projections made for normal stock replenishment according to the Inventory Plans, Procurement Plan and the Budgets to avoid overstocking and eventual deterioration of goods in stock.

 

14.9  Procurement of Specialized Educational Equipment

 

14.9.1  Specifications  should  be  drawn  by  an  appropriate  specialist  who  should  take  into  account technology and life cycle costing which cover the total cost of acquisition, maintenance and repair.

 

14.9.2 Warranty covering duration not less than three years should be included in the specifications.

The  detailed  guidelines  on  equipment  specifications  area  provided  in  Section  8  of  this

Manual.

 

14.10   Low Value Procurement

 

The prevalence in splitting procurement contrary to Section 30 of the PPDA through application of Low Value Procurement is not allowed.   The Low Value Procurement procedure should be carried out strictly within the provisions of Regulation 63 of the PPD Regulations and the Threshold Matrix.

 

 

15.0     ENVIRONMENTAL FACTORS IN PROCUREMENT

 

15.1  Products with chemical composition should be specified by taking into account the product life-cycle approach which covers the  economic  and  environmental performance  of a  product  through-out  its life cycle, namely production, distribution, use and final disposal.  Care must be taken to ensure that guidelines issued by National Environmental Management Authority (NEMA) are followed.

 

15.2  The following examples present a check  list of essential attributes for chemical products including laboratory reagents:

 

Table 7:  Checklist of Essential Attributes for Chemical products

 

Chemical products likely to be bought for school or college laboratories

Substitution            Possibility to satisfy the need without the use of a chemical or with a chemical that has a lower environmental impact.

 

Composition & concentration Product labelling Handling and use instructions

Extent  of  compatibility  with  the  required  application  in  terms  of  composition, concentration, and expiry date.

Conformity with requirements of international standards and regional regulations.

 

Whether  the  supplier  provides sufficient  information on  handling and  use  including the optimum dosage for effective utilization.

 

Hazard factor         The comparative  measure of the toxicity,  flammability, corrosiveness and  explosive nature of the chemical (the hazard factor) compared to others.

Safety                     Availability of Materials Safety Data Sheet (MSDA) that covers potential hazards that may arise during handling and use of the chemical.  It should state the necessary steps to be taken to avoid the occurrence of hazard or accidents.

 

Bio degradability

The   degree   and   rapidity   of   degradability   by   micro-organisms   in   the   natural environment.  The  faster  the  chemical  degrades  the  lower  is  its  exposure  potential. Persistent  chemicals (e.g., those that contain heavy metal such as cyanide,  mercury, chrome) are to be avoided as much as possible.

 

Packaging               Extent to which packaging optimally satisfies the requirements for transportation and the materials handling and bio-degradability after packaging is disposed off.

 

 

 

15.3  Usage and Handling of Hazardous Products

 

The usage and handling instructions that accompany hazardous products should be clearly written by the suppliers and should be adhered to by users to avoid injury.

 

 

16.0     MANAGEMENT OF INVENTORY

 

 

 

16.1  Stores Coding and Classification

 

16.1.1  Coding

 

Stores codes are suitable for identifying items to minimize ambiguity and misinterpretations that arise when items are only referred to by descriptive titles.   The codes will also be used for location of stores where fixed and random location systems are applicable.

 

 

16.1.2  Coding Procedures

 

 

 

  1. a) The alpha-numeric structured coding will be used until otherwise directed.   A series of defined classes and sub-groups are determined and incorporated in the Stores Catalogues containing stock items code number.

 

  1. b) A stores catalogue contains the items that have hitherto been approved for stock holding and will  be  used  by  user  departments  for  description  of  requirements  on  the  Counter Requisition and Issue Voucher.

 

  1. c) Users should requisition for items in the catalogue unless such items are not suitable for the intended     This  is  to  maintain  an  optimum  level  of  inventory  variety and prevent proliferation of stock keeping units (SKU).

 

  1. d) For efficient  stores  location,  the  code  numbers  will  be  used  to  enable  prompt  order picking when processing stores requisitions.

 

  1. e) Numeric coding  structure  will  be  used  to  enhance  efficient  inventory  automation  as shown in the following example.

 

 

 

16.1.3  Example: Item that can be broken down as below

 

A                    Product Group                                           Ruler

 

A.01               Product Sub-Group                                      30 cm A.01.01          Individual Product                                       Plastic A.01.01.01     1st  Variant of Individual Product                 Clear material

A.01.01.02     2nd  Variant of Individual Product                Coloured material

 

16.2     Stock Replenishment

 

16.2.1  Replenishment

 

  1. a) Stock replenishment is part of inventory and distribution.

 

  1. b) Inventory replenishment operations are fundamental to achieving the desired service level and to  meet  the  immediate  day-to-day requirements taking  into  account the  changes to value and level of inventory which might have substantial impact on the overall operation of procuring entity.

 

  1. c) The foregoing  notwithstanding,  replenishment  of  inventory  should  take  cognizance  of need to avoid tying working capital in high inventory since holding excess inventory can lead to obsolescence of such stocks.

 

16.2.2  Inventory replenishment methods

 

The  following  are  some of the commonly used replenishment  methods which would  apply for different  categories of requirements determined  in  line  with inventory categorization  in the stores catalogue:

  1. a) Re-order Level System (fixed order quantity, variable order intervals);
  2. b) Periodic Review System (fixed order interval, variable order quantity);
  3. c) Demand Driven  Lean  Supply  Systems  (orders  placed  in  the  precise  quantity  and  time

required for a specific projects or assignments); and

  1. d) Economic Order Quantity (order what is economical to produce or deliver).

 

NB:  See alternative strategies under 16.2.9 and 16.2.10 below.

 

16.2.3  Re-order Level System-(Fixed Quantity, Variable Interval)

 

 

  1. a) The decision to re-order will be triggered when the level of physical stock plus inventory already on order falls to an established re-order level.
  2. b) The re-order level is calculated by adding the best estimate of demand to cover the lead

time duration to safety stock quantity.

  1. c) Re-order Level System calculation is to be done by applying the following formula where

manual operating systems are in use by applying the following formula: ROL = (Rd X L) + S

 

where:               Rd =     Rate of demand/usage (per day/per week) L=       lead time (in days/week)

S =      safety level of stock

 

Example:

For instance the  ROL, where the rate of demand is 100 units per week, the lead time is 3 weeks and safety stock is 170 units will be:

(Demand/usage rate x 3 weeks) (lead time) + 170 (safety  stock)

 

ROL = 100 x 3 + 170 = 400 units

 

16.2.4  Periodic Review Systems

 

  1. a) Ordering is  for  fixed  quantity at  a  fixed  period  cycle,  g.  weekly or  monthly.   On the average  the  amount  ordered  will  be  equal  to  the  demand  over  the  review  period.  The longer  the  review  period  the  larger  the  order  size.  The  system will  apply  in  categories with small volumes of requirements.
  2. b) The re-order quantity will be based on the following formula:-

 

Order Size    =         (Demand over the review internal x lead time) – (Actual stock) – (pipeline stock) + (safety stock)

 

16.2.4  Dependent Demands

 

Dependent Demands fall under the non-stock items categories where the demand is based on a specific activity or project or non recurrent activity.

 

16.2.6  How Much To Order

 

  1. a) Order quantities will be determined with economy in view, that is by taking into account:
  2. Cost of placing an order;
  3. Price discount costs, i.e. where supplier may impose extra costs on small order;

iii.       Stock out costs;

  1. Costs of tying working capital in inventory;
  2. Storage costs; and vi. Obsolescence costs.
  3. b) Computation of the most economic order quantity

 

16.2.7  Economic Order Quantity

 

  1. a) To balance  the  above  stock  holding  and  the  acquisition  costs  mentioned  under  sub- section 16.2.6 above an economic order quantity (EOQ) should be computed by applying the following formula:

 

 

 

 

EOQ  =

2C0 D

 

Pi

 

 

 

 

Where:

 

EOQ = The Economic Order Quantity

C0    =   The cost per order (including administrative and communication costs) D   =    The demand (Quantity required) over the period in units – meters, litres,

millilitres etc

P    =   The purchase cost per unit (including price, transported)

I     =   The inventory carrying cost (including the financial and physical costs of inventory, expressed as a percentage of the average value of inventory

 

NB:  For the inventory carrying cost, it advised that the procuring entities should use

20% of the average value of inventory

 

 

  1. b) The EOQ assumptions

 

The EOQ formula is based on the following assumption:

  1. demand for requirements is stable;
  2. existence of a fixed and identifiable ordering cost; and

iii.      identifiable stock out cost.

 

These   assumptions   vary   considerably.   However   the   computation   would   provide approximate quantities to work with.

 

Secondly it is inevitable that procuring entities ensure that costs which form the basis for the EOQ computation are done and regularly updated.

 

  1. c) Automated computation of EOQ

For  the  sake  of  accuracy  and  speed  of  computation  of  the  EOQ,  it’s  advisable  that

procuring entities computerize their inventory management in line with the guidelines in

section 16.2.11 of this Manual.

 

16.2.8 Determining the Desired Level of Safety Stock

 

 

  1. a) Variability of  both  lead  time  and  rate  of  demand  cause  either  lower  or  higher  than average level of stock when the next order arrives.  Safety stock level determination may however be inevitable to limit the risk of stock outs.
  2. b) Safety level (that is the average amount that remains in stock at the time fresh deliveries

arrive) is to be determined by applying the following formula:

 

Average Safety Level = Maximum Demand – {Average Usage over the Review Interval

+ Lead Time}

 

16.2.9  Managing Lead Time

 

 

  1. a) Orders that arrive too  early or too  late result  in either excessive  inventory or stock-out.

However, whereas short lead-times reduce the length of forecast, long lead-times result in increase  of  safety  stock,  which  ironically  may  result  in  overstocking,  with  all  the attendant problems.

  1. b) To ensure  that  required  customer  service  levels  are  met,  it  is  inevitable  that  internal

systems are in place to manage lead time.

 

16.2.10   Vendor Managed Inventory (VMI)

 

  1. a) Procuring entities should minimise overstocking of educational products in order to avoid expiry and loss of funds by adopting VMI concepts for managing stocks.
  2. b) In VMI, the vendor has visibility of stocks of his products within the inventory system of

the procuring entity and has the authority and responsibility to manage the inventory level and replenish them at his own accord to avoid stock-outs.

 

  1. c) This proactive  involvement  of  the  vendor  requires  drawing  of  a  contract  that  clearly spells out duties and responsibilities for each party to avoid confusion and blame games. Needless to say, both the vendor and supplier need high degree of competence for them to successfully benefit from VMI relationships.

 

16.2.11   Automation of Inventory Management

 

  1. a) For most  big  organisations  with  large  inventories  of  educational  supplies,  it  is  not efficient   to   manage  and  operate  them  with  manual     Computerisation  and automation  of  inventory  management   systems   has  proven  beneficial  in   improving efficiencies of managing large inventories.
  2. b) Computerisation gives  a  number  of  demonstrated  benefits  including  ability  to  produce

stock position instantaneously, automatic  notification of stock levels  for all the product lines in the inventory, flagging of products that are about to expire, preparing automated goods receipt  notes and goods dispatch notes and schedules, showing product  locations within the warehouse, computing reorder quantities and preparing re-order schedules etc.

  1. c) Given the above benefits, computerisation and automation of inventory management is a desirable capability  that  operators  of  large  inventory systems  should  aspire  to  However there are a number of challenges to acquiring, implementing and maintaining a fully   functioning   automated   inventory   management   system.   These   include   high investment  costs  for  the  project,  the  need  for  training  or  recruiting  skilled  systems operators, need  for data and systems discipline,  long project  implementation time  lines, need for change of working attitudes and styles etc.  These challenges have often deterred some  organisations   from  fully  embracing  computerisation  and  automation  of  their inventories.
  2. d) There are    many    successfully    implemented    and    operated    automated    inventory management   systems   in   Kenya   today,   both  in  the  private  and  public   sectors  for educational supplies.  A good starting point for anyone interested in this matter is to make a learning visit to a few of such organisations and familiarise with their success.
  3. e) In Kenya  today,  there  are  a  number  of ICT  vendors  who  supply  inventory automation systems  that  are  suitable  for  both  small  and  large  inventory operators.   These  vendors should  also  be  visited  for  demonstration  and  education  on  how  automated  inventory systems work.
  4. f) Based on the learning acquired, the procuring entity should decide at what stage it could embark on the inventory automation process.

 

16.3 Receipts of Goods

 

16.3.1 Preparation of planned delivery schedule

 

On receipt of a copy of the purchase order and an acknowledgement of receipt of the same by the supplier, the Stores in-Charge will prepare a planned delivery schedule.  The schedule is inevitable  as  it  enables  the  stores  personnel  to  arrange  for  storage,  handling  and  to  give feedback to the users of the delivery status.

 

16.3.2  Preparation of Goods Received Note

 

  1. a) After delivery  has  been  checked  to  ensure  that  the  correct  item and  quantity  has  been delivered as per the terms of a contact, a Goods Received Note (GRN) will be raised.

 

  1. b) The GRN  will  show  the  item  code  number,  the  items  received,  the  order  reference number,  the  quantity,  unit  of  issues,  the  supplier’s  name,  the  value  and  user  or  stock location.

 

 

16.3.3  Inspection

 

  1. a) Inspection of  goods  received  shall  be  carried  out  by  the  Inspection  and  Acceptance Committee and a certificate to that effect attached to the GRN.   This can be a standing committee  with  varying  membership  that  includes  teachers  assigned  to  stores  receipt duties.
  2. b) Whenever a member of Inspection Committee is engaged elsewhere such as being in the class or    attending    an    important    staff    meeting,    the    designated    Duty    Officer (Teacher/Lecturer)   should   be   included   in  the   Committee  to   act  on  behalf  of  the unavailable  This will prevent  unnecessary delays in the receipt  and  inspection exercise.
  3. c) Where feasible  and  to  minimize  inconveniences  to  suppliers  and  the  members  of  the Committee,  the  suppliers  should  be  instructed  to  make  deliveries  at  specified  days  or times  of the  day  with  minimal  interruptions to  the  schools’  or  colleges’  personnel  and programs.
  4. d) In case  of  goods  delivered  by  a  transport  company,  in  which  case  any  delays  of  the delivering vehicles may result in waiting charges being levied on the procuring entity, the inspection  may  be  carried  out    In this  case  the  GRN  must  be  endorsed  “Certified Received   [Quantity   and   Quality   Awaiting   Inspection]”   and   the   supplier   notified accordingly.
  5. e) Following issuance of the GRN and completion of inspection, the delivered goods will be

moved to a storage location which will either be Fixed or Random as the case may be. The stores record will be posted accordingly, stock value calculated and entry made in the stock value column of the ledger.

  1. f) A copy  of  the  GRN  will  be  sent  to  the  buying  office  for  updating  the  Outstanding

Purchase Order Record.

 

16.3.4  Certification of Invoices for Payment

 

 

The suppliers’ invoice certified by the Procurement Officer (Stores) and accompanied with a copy of GRN, purchase order, inspection certificate will be sent to the Accounts Section for payment after the goods have been received.  The Head of Procurement should retain a copy for the procurement file.

 

16.3.4  Handling and Storage of Supplies

 

 

The  procuring  entity  shall  develop  and  apply  procedures  for  handling  and  storage  of  all educational supplies and equipment in line with best practice. The overall objective of such procedures and their application is to ensure handling and storage of educational supplies and equipment are kept safe and secure free from any damage or deterioration.

 

16.4  Requisitioning and Issuance of Stores

 

16.4.1   Requisitioning Procedures

All  requests  to  purchase  and/or  for  issuance  of  goods  from stock  shall  be  covered  by  the

Requisition and Issue Voucher (RIV) Form which is the official document designed for this

purpose and is pre-numbered for monitoring purposes.

 

  1. a) All requests for acquisition or issuance of educational requirements shall be made by the user departments and approved in accordance with the approving authority concerned as prescribed by each institution for effecting internal controls.

 

  1. b) The approving officers are expected to exercise their best judgment and observe prudence in reviewing  the  requisition  taking  into  consideration  implications  or  consequences  of their decisions. The justification or rationale for the need must be clearly established.

 

  1. c) In case  of  non-stock  requirements  meant  for  procurement,  the  RIV  shall  contain  all relevant  data  necessary  for  making  a  rational  procurement  decision  such  as  quality, quantity, evidenced availability of funds and be approved accordingly.  It will include:

 

  1. Budgetary provision reference by the Accounts or Finance Department. An absence of the budget reference number will mean that the item is not budgeted for and would therefore  require  senior  management  level  approval.  Incomplete  RIVs  shall  not  be processed and will be returned to the requisitioner.
  2. Specifications that are generic  in  nature and do  not  refer to  any brand  name  unless

this  has  been  earlier  agreed  upon  by  the  parties  concerned  for  the  purpose  of standardization or continuity of an on-going activity.   Equivalent products should be allowed.

iii.   RIV  that  states the  date the  request  is required.   However,  the  requisitioner  should

give   Procurement   Unit   ample   time   to   process   the   procurement   unless   in   an emergency.

 

16.4.2  Issuing Procedures

 

  1. a) Verification of Requisition by Procurement Officer (Stores)

 

Based on the identified needs specified in the requisition, the Stores in-Charge will verify the requisition to ensure that it is duly authorized by relevant head of department/ section and that the requisition is properly completed.

 

  1. b) Issuance of products in line with First In First Out (FIFO) principle

 

All issuance procedures must, as far as practicable, observe the First-in-First Out (FIFO) principle.   Products with shorter shelf life  must also  be issued  first ahead of those with longer shelf life even if this violates the FIFO principle to reduce chances of expiries of products while still in the store.

 

  1. c) Collection of issued items from the Stores

 

Once the order picking is completed the requisitioner will be notified to collect the items from  the  issuing  officer.  It  is  of  paramount  importance  that  the  collecting  official provides proof of collection authorization from the head of department/section.

 

  1. d) Adjusting Stock Records

 

After issuance the transactions will be entered into the inventory records and the balances

 

reduced accurately and promptly.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

48

 

 

 

 

17.0     PROCUREMENT PERFORMANCE EVALUATION AND MEASUREMENT

 

 

 

17.1  The purpose of performance evaluation and measurement of procurement

 

Performance evaluation and measurement of procurement as a function is a good practice undertaken to ensure that procurement services are continuously improved.

 

 

17.2  Key Evaluation Indicators

 

Performance evaluation and measurement should focus on understanding the extent to which internal customers  are  satisfied;  understanding  different  factors  that  may  be  causing  problems;  focusing attention on priority areas when seeking  solutions to  problems and  identifying  new  approaches to improving performance.

 

 

17.3  Performance measures and targets setting

 

  1. a) The realistic and measurable targets for key performance indicators are to be developed by the

Head of the Procurement Unit.

 

  1. b) The targets will be reviewed from time to time whenever circumstances warrant such reviews.

 

  1. c) The areas to be covered when measuring the procurement units performance should be based on internal customer satisfaction in terms of:

 

  1. timeliness;

 

  1. availability of supplies in terms of supply range, quality, continuity of supply;

 

iii.   reduction of lead time in the procurement process; iv.   quality in terms of appropriateness to requirements; v.   cost reduction and  cost avoidance; and

  1. customer service in terms of provision of information and technical support to customers and problem solving.

 

 

17.4  Evaluating and Measuring Suppliers’ Performance

 

  1. a) The supplier’s performance may have a positive or negative impact on the Procurement Unit’s overall  performance   and   the   same   must   therefore   be   incorporated   into   the   performance management programme.

 

  1. b) Performance gaps, if identified, will be communicated to the supplier(s) as feedback in order to improve performance by addressing and eliminating weaknesses. The eventual result should aim at having capable and reliable suppliers.

 

  1. c) Suppliers who have not improved on their performance should be removed from the register of suppliers. Where a  supplier seriously breaches a  procurement  contract, the PE should  make a recommendation to PPOA that the Director General of PPOA should exercise his powers under

 

section 114 of the PPDA 2005 to debar such a supplier from future participation in procurement proceedings.

 

  1. d) The PPOA  will  maintain  and  make  available  to  the  public  entities  a  list  of  entities/persons debarred from participating in procurement proceedings.   PEs should not allow such persons or companies to put forward offers.

 

 

18.0  DISPOSALS OF STORES AND EQUIPMENT

 

 

 

18.1  Compliance with PPD Act and PPD Regulations

 

Disposal of Stores and Equipment that have been rendered unserviceable, obsolete and surplus shall be carried out as set in the provisions of Part X of the PPDA 2005 and the Regulations 92 and 93 of the PPDR 2006.

 

 

18.2  Obsolete, Unserviceable and Surplus Stores, Plant and Equipment

 

In schools and colleges, stores, plant  and equipment  can be disposed through sale  by open tender, auction,  and  transfer  to  other  public  institution  or  trade-in  as  recommended  by  the  Disposal Committee and approved by the Principal or Head Teacher.

 

 

18.3  Determination of Reserve Price

 

 

Evaluation should be carried out to determine a realistic reserve price to ensure that the PEs secure value for money.

 

Reserves prices should not be fixed so high to impede prompt disposal of such stores or equipment. However  the  stores  and  equipment  should  fetch  the  desired  proceeds  that  enable  economic utilization of storage spaces that such items occupied due to deferred disposal caused by unattainable high reserve prices

 

Technical   assistance   should   be   sought   where   necessary   to   determine   the   obsolescence, unserviceability  or  surplus  status  of the  stores  and/or  equipment  to  justify  disposal  and  fixing  of realistic reserve prices.

 

18.4  Disposal Plan

 

18.4.1  It  is  of  importance  that  a  Disposal  Plan  be  prepared  by  the  PE  as  required  in  the  PPDR regulation 7 (3) (w) and to be in tandem with the annual stocktaking program, procurement plan and the budget for disposals that would entail direct replacement.

 

18.4.2  The   Disposal   Plan   should   consolidate   departmental   disposal   projections   to   reduce administrative  costs.  The  accumulation  should  however  not  encourage  undue  delay  in disposal of items and should be within the Disposal Committees frequency of meetings of at least once every quarter as stated in Regulation 92 (3) the PPDR.

 

18.5   Schools and Colleges Disposal Committees

 

18.5.1  Schools and colleges shall establish a disposal committee comprising of at least 4 members as follows:

 

  1. a) An officer in charge of Finance;
  2. b) The Head of Procurement Unit who shall be secretary;

 

  1. c) The head of the Accounting Department; and d) Two heads of two end user departments.

 

18.5.2  The committee shall select a chairman from among its members.

 

18.5.3  The  disposal  committee  will  first   meet   within   fourteen  days  of  its  appointment   and subsequently at least once in every quarter.

 

18.6  Disposal Certificate

 

After implementation of the approved disposal method, a disposal certificate should be prepared and signed by members of disposal committee.

 

 

19.0     REVISION OF THIS MANUAL

 

 

 

19.1  This Manual will be amended from time to time  by PPOA to embrace emerging procurement best practices and major policy changes.

 

19.2  Any  user  of  this  Manual  who  has  suggestions  on  areas  of  this  Manual  which  may  need  to  be reviewed should notify the Head of Procuring Entity.

 

19.3  The Head of Procuring Entity should on a regular basis analyze emerging issues in the course of the implementation of this Manual and notify PPOA of any areas which may be considered for review.

 

19.4  Any proposed recommendations for revision to this Manual will then be compiled and approved by the PPOA following necessary consultations.

 

 

20.0     APPENDICES

 

 

 

Appendix A:        Stock Replenishment Requisition Form

 

Appendix B:        Procurement Plan Template

 

Appendix C:        Sample Bid Evaluation Templates for Text Books Appendix D:        Sample Supplier Appraisal /Audit Questionnaire Appendix E:        Tender /Quotation Opening Form

Appendix F:         Price Comparison Schedule (Major Procurements Appendix G:        Price Comparison Schedule (Simple Procurements) Appendix H:        Request for Quotation

Appendix I:         Local Purchase Order Appendix J:         Goods Receipt Voucher Appendix K:        Local Service Order Appendix L:        Stores Ledger

Appendix M:       Threshold Governing Procurement Methods

 

Note:     All  the  Standard  procurement  documents are  contained  in  the  Third  Schedule  of  the  PPD Regulations and can be obtained from PPOA for customization.

 

 

APPENDIX A:    STOCK REPLENISHMENT REQUISITION FORM

 

No……………….

To: Chief Procurement Officer                              Storehouse …………………

 

Item

No

Item Code No

Item

Description

Unit of Issue

Re- Order Qty

Est. Unit Price

Estimated

Amount

Monthly Usage Rate

Stock

Balance

Procurement

Action

 

 

 

 

 

 

 

 

Prepared by……………..Designation…………….   Signed……………….…Date…….…… Checked by……………  Designation ……………..Signed…………………. Date………….

Approved by ……………Designation …………… Signed………………… Date……..….

 

 

 

 

 

APPENDIX B:    PROCUREMENT PLAN TEMPLATE

 

 

 

 

PART I:               PRELIMINARY DOCUMENTATION

 

Ref

No

Item        Priority       No of

Units

Unit Price/ Cost

Total

Cost

Procurement

Method

Single/ Multi- Year

Aggregation       Budget

Availability

Source

of  Funds

 

 

1.1 Planned

 

1.1  Actual

 

2.1  Planned

 

2.1  Actual

 

 

PART II:               THE PROCUREMENT PROCESS TIMEFRAME

 

Ref

No

 

 

 

1.1Planned

1.1 Actual

2.1Planned

2.1 Actual

Date Procurement Process

must Start

Pre- Qualification

Bid documents preparation

Invitation of Bid

Bid

Opening

Tender/ Proc Committee/ Award Notification

Contract

Signed

Delivery/ Completion

 

 

APPENDIX C:    SAMPLE BIDS EVALUATION TEMPLATE FOR TEXT BOOKS

 

 

 

TEXT BOOKS

 

ITEM NO.

 

PRODUCT DESCRIPTION

 

 

  1. Product Evaluation

 

 

 

Evaluation Criteria

1    Authors Name

2    Title of the book

3    Country of Origin

Sample Provided matches tender

4     description

4    Book Serial No. clearly shown

6    Quality of the print /binding

% Score

Weighted Score

 

 

 

 

  1. RECOMMENDATION

 

 

  1. EVALUATION TEAM

Name                                                  Designation    Signature    Date

 

 

 

1

 

2

 

3

 

4

 

 

APPENDIX D:    SAMPLE SUPPLIER APPRAISAL/ AUDIT QUESTIONNAIRE

 

 

 

NB: This form needs to be reviewed and simplified from time to time to address characteristics of various purchases and size of the suppliers providing services to the secondary school or college.

 

 

A      COMPANY CONTACT DATA

1      Company Name

2      Nature of business

3      Address

4      Office telephone No.

4      Office fax No

6      Plant/Factory

RATING

 

 

B    GENERAL INFORMATION AND STRATEGIC CONSIDERATIONS

1      Date established

2      Types of activities

3      Owners etc

 

C      STRATEGIC CONSIDERATION

1      Strategic Vision

2      Service charter

3      Business Plan or programme

4      Short-term objectives

4      Medium-term objectives

6      Long-term objectives

7      Has corporate strategy communicated to staff etc.

 

D      FINANCIAL ANALYSIS

D1. General financial information

  1. What is the company’s financial year?
  2. What has been the companies turnover during the last 4 financial years
  3. Are the company’s financial statements given and attached to this audit?
  4. What are the company’s financial objectives?

D2   Financial Ratio

D2.1 Profitability

  1. What is gross profit as a percentage of turnover Gross profit × 100

 

Turnover

  1. What is the Net profit as a percentage of turnover Net profit × 100

 

Turnover

  1. What is turnover as a percentage of capital employed? Turnover × 100

 

 

D 2.2: Solvency

Capital employed

 

  1. What is the current ratio? Current Assets

 

Current liabilities

  1. What is acid ratio? Current asset – stock

 

Current Liability

  1. What it the gearing ratio? Long tern loans × 100

 

Capital employed

 

  1. What is stock turnover? Cost of sales

Average stocks

  1. What is the debtors’ collection period? Debtors ×334

 

 

6      Cost control

Does the company undertake regular review of the cost and cost factors?

  1. What cost factors are reviewed? Etc

Turnover

 

 

E      PRODUCT DEVELOPMENT/R & D

1      E1 General information on product development R & D

Is there a department or team in charge of suggesting new products ideas or improvement of existing product? Give details etc.

2      E2: Design Control

 

Is there an established procedure for verifying design to ensure that the relevant technical specifications are met?

How are designs requirements identified, documented and reviewed for adequacy?

 

F      PROCUREMENTAND GOODS INWARD

1      Procurement& Supply Management

 

  1. What are the company’s total expenditure in Procurement of goods and services in the last financial year

2      Does the company have a Procurement policy

3      Is there Procurement Manual outlining relevant procedures?

 

G     PRODUCTION

  1. Is there a documented production procedures
  2. What are the types of production machinery
  3. What manufacturing system and procedures are in place for production processes
  4. Give an account of in process inspection and quality control
  5. What procedure is available for handling, storing and preservation of finished products?
  6. Is there packing and shipping procedures? Explain.

 

H     SALES AND CUSTOMER SUPPORT

General sales information

1      Provide the following information

2      Sales turnover

3      Competitions

4      Main market segments

4      Sales infrastructure and arrangements

6      After sales services and customer support

 

I       QUALITY MANAGEMENT SYSTEM

 

  1. Give an account of the following

2      Continuous improvement quality system in place

3      Quality certification and accreditation

4      Documentation control

4      Does the company have laboratory facilities for testing products?

6      How are these facilities allocated to different product? Etc.

7      Is there an environmental policy? Give details

 

J      GOVERNANCE ISSUES

1      What is social policy practice in force?

  1. Is there an ethics policy and practices guideline in place?

 

 

APPENDIX E:    TENDERS/ QUOTATIONS OPENING FORM

 

 

TENDER /REQUEST FOR PROPOSALS (RFP)//EXPRESSIONS OF INTEREST/ QUOTATION NO…………………………………………………………. (Delete as appropriate)

FOR SUPPLY OF……………………………………………………………

 

Bidders identification                                                   Prices as read out                    Modification or Comments

 

Names                                   Address           Country/ Town

Currency(ies)     Amount

 

 

 

 

 

 

 

 

 

Names of Opening Committee members

 

Name………………Designation………….Signature…………………… Name………………Designation………….Signature…………………… Name………………Designation………….Signature ………………….

 

Date………………  Time …………………

 

 

 

 

APPENDIX F:     PRICE COMPARISON SCHEDULE (MAJOR PROCUREMENTS)

 

 

TENDER/RFP/QUOTATION NO……………………FOR SUPPLY OF………………………………………….

 

ITEM NO……..DESCRIPTION………………………QUANTITY……………………………………….

 

Bidders

No

Unit Price as read out

Corrections

Corrected

Bid Prices

Unconditional

Discount

Corrected/ Discounted Bid

Unit Price

Amount

{Qty x Coln.(h)}

 

 

 

 

 

(a)             (b)

Computation Error (Amount)

 

(c)

Provisional

Sum

 

 

(d)

(e) (e)=(b)+/-

(c)-(d)

%

 

 

 

(f)

Amount(s)

 

 

 

(g)

 

(h)

 

(h)=(e)-(g)

 

 

 

 

 

 

 

Scheduled by……………………Signature………………..Date……………… Checked  by…………………….Signature…………………Date…………….

 

APPENDIX G:    PRICE COMPARISON SCHEDULE (SIMPLE PROCUREMENTS)

 

TENDER/RFP/QUOTATION NO……………………FOR SUPPLY OF…………………………………………

 

Item

No

Item

Description

Qty     Bidder No1              Bidder

No2

Bidder No3         Bidder

No4

Bidder

No4

 

Net

Price

Amt         Net

Price

Amt         Net

Price

Amt     Net

Price

Amt         Net          Am

Price

 

 

 

 

Scheduled by……………………Signature………………..Date………………

 

Checked by…………………….Signature………………….Date…………….

 

 

 

APPENDIX H:    REQUEST FOR QUOTATION

 

 

 

To:   Supplier’s name and address                           From:  Supplier’s name and address of Institution

 

Quotation No        …………                                     Date               ……………………..

 

The School named above requests that you submit a quotation for the provision of the under-listed goods, works or services. The quotations must be submitted in the form and manner specified below:

 

The quotations must be supplied to the school within (indicate number of days 7-14) Incomplete quotations or those received after the deadline will automatically be rejected

This request for quotation is not an order. An official order will be issued to the selected supplier immediately the selection process is completed

 

To be completed by the supplier

 

Item

No.

Item description

Unit of issue

Quantity required

Unit price

Days to deliver

Discount      Brand

Name

Country of origin

Remarks

 

 

 

 

 

 

Supplier’s signature                                                           Date:                         

 

For Official Use

Opened by…………………………        Designation                                  

Date /Time                  

 

Checked by………………………..        Designation                                          Date/Time                                                                                                          

 

 

ORIGINAL:       TO SUPPLIER DUPLICATE

TRIPLICATE

 

APPENDIX I:      LOCAL PURCHASE ORDER

 

 

 

NAME OF EDUCATION INSTITUTION:                                                

 

 

 

 

To………………………………..           LPO No. …………………………

 

……………………………………         Date………………………………………..

 

 

 

Please deliver the following goods to………………………………………………. on or before

…………………………………………………. and submit invoices without delay to………………………………………..

 

Item No.    Description of Goods      Unit              Quantity         Price in Kshs

 

 

 

 

 

 

 

 

 

TOTAL

 

Prepared by: …………………………….                 Vote Head ……………………….. Signature: …………………………….. …                 Date           ………………………. Designation: …………………………….

Approved by:

 

Head of Institution: ……………………..                         Date           ……………………… Signature              ………………………

 

I confirm that funds are available and that the commitment has been noted in the Commitments Register/Vote

Book

 

APPENDIX J:     GOODS RECEIPT VOUCHER

 

 

 

NAME OF INSTITUTION     ……………………………………………………………………..

 

 

GOODS RECEIPT VOUCHER

 

DEPT: ……………………………….

 

Received the items listed below from (Source): ………………………………………………….

 

LPO/LSO NO.  ………………………………  DATE ……………………………

 

Item No          Item Description                 Unit No    Quantity             Value         Remarks/ Purpose

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Order No: …………………Date …………Invoice No.: ……….    Date: …….………

 

 

 

I certify that the quantities received have been taken on charge. Vote Head/Account No: ……………………

Receiving Officer: …………………………… Designation: …………………………….. Signature               …………………………      Date      ……………………….

 

APPENDIX K:    LOCAL SERVICE ORDER

 

 

 

ORIGINAL:    TO SUPPLIER DUPLICATE

TRIPLICATE

 

NAME OF EDUCATION INSTITUTION        ………………………………………………………………..

 

LOCAL SERVICE ORDER (LSO)

 

Suppliers are warned that this Order is INVALID unless availability of funds is confirmed here below by the Accountant in charge/Head of institution.

To …………………………..                                                 Tender/Quotation Ref: ……………………..

 

………………………………                                                 Contract Ref…………………………………

 

………………………………                                                 Date   ………..……………………………… Requisition Ref. No. ………………………. Date : …………………………………………

Please carry out the services listed below at (Full address):

………………………………………………………………………………………………..

 

on terms and conditions stated on the back of this Order, on or before……………………….. And send the invoices immediately to…………………………………………………………

P.O Box: …………………………………Town/City………………………………………..

 

Item No                                         Description of Service                                Shs       Cts

 

 

 

 

Totals

 

Prepared by:…………………………….                         Vote Head ……………………….. Signature:…………………………….. …                        Date           ……………………….

Designation:…………………………….

Approved by:

Head of Institution:……………………..                          Date           ………………………

 

Signature              ………………………                         Date           ………………………

I confirm that funds are available and that the commitment has been noted in the Commitments

Register/Vote Book.

 

 

 

APPENDIX L:    STORES LEDGER

 

 

 

NAME OF EDUCATION INSTITUTION:                                                      

 

 

STORES LEDGER

 

Item Code:                                                              Item description:               

 

Date of

Receipt

Receiving

/  Delivery

Note No.

Quantity

Received

Unit

Cost

Total

Cost

Date   of

Issue

To whom issued

Quantity

Issued

Balance        Comments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX M:   THRESHOLDS GOVERNING PROCUREMENT METHODS

 

(AS PER SECTIONS THRESHOLD MATRIX IN THE PPD REGULATIONS)

 

The  Threshold  Matrix  in  First  Schedule  of the  PPDR  2006  which  sets  out  the  minimum  and maximum levels of expenditure for use of particular procurement and segmentation of duties for different officers and committees in the procurement cycle under Section 26 (3) (c) of the PPD Act 2004 shall be used as stipulated by different classes of procuring entices stated in Section 5.7 of this Manual.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

This document was produced with assistance from the American people

 

 

 

 

 

 

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