GRMF PROCUREMENT East Africa Donors’ Coordination Meeting
The Role of Procurement
A process for acquisition of goods, services and works for projects
Pillar for Project and Programs Implementation
Procurement as a Key Pillar for governance
Compliance with provisions of the Financing Agreement and Grant Agreements with developers
Ensures Transparency in the implementation of grants
Grant Agreements provisions on Procurement.
(Third Level Procurement)
The Role Procurement Monitoring: This is the procurement managed and implemented by the Developers and this is where the AUC needs to monitor the implementation in accordance with the AUC Financial and Procurement Guidelines or/International Best Practice.
Developer Procurement Guidelines: The AU Procurement Rules have been summarized into the Developer Procurement Guidelines
Dictates that we apply practices in Public sector procurement to safeguard tax payers’ money
AU has fiduciary responsibility to ensure that donor funds are used for purpose for which they are intended
Grant Recipient and suppliers must adhere to the highest ethical standards, both during the bidding process and throughout the execution of a contract.
Grant Agreements provisions on Procurement.
(Third Level Procurement)
Eligible Goods: Goods and services blacklisted or have its origin in countries that
have been blacklisted or sanctioned by the United Nations Security Council, the EU or
the AU.
Eligibility; Bidders/Applicants under sanctions from UN, EU or AU are barred from
participating GRMF Grant Applications and Procurements;
Compliance & Adherence to the Guidelines; Developers shall adhere to procurement
processes defined by the Developers Procurement Guidelines which draw
International best practice based on the AUC Procurement Guidelines.
Grant Agreements provisions on Procurement.
(Third Level Procurement)
Financial Records; The AUC shall oblige Developers to keep their records on
Financial and procurement activities for at least 7 years.
Transparency; This will allow AUC and their Auditors full access to any records
and documents especially on procurement.
Procurement Compliance; Non-declaration of procurement undertaking during
Application may lead to disqualification.
Non-Compliance to procurement guidelines shall lead to termination of grant
agreements
Grant Agreements provisions on Procurement.
(Third Level Procurement)
NO-Objection Thresholds: Currently developers are required to obtain a No-Objective/Approval for amount exceeding USD 500,000 for any Goods/Services being procured.
Any changes will be communicated on the GRMF Website and the next Application Workshop.
Financing of Taxes; The GRMF will not finance import duties (Customs & Excise Duties), Value Added Tax (VAT) or any form of Taxes.
Public procurement is process driven and is
anchored on the following principles
► TRANSPARENCY
► ACCOUNTABILITY
► VALUE FOR MONEY
► FAIRNESS
► EFFICIENCY AND ECONOMY
► EFFECTIVE COMPETITION
Procurement Selection Methods
Others Methods Helpful
to GRMF Applicants
Framework Contracts
Call-of Contracts
Force Account/Direct
Labour
Use of procurement
Agents
Sourcing
Approach Market & Select S/C/C
MA Options G/W/S
• Open
• Limited
• International
• Regional
• Pre Qualification
• Single Stage
• Multi Stage
• BAFO
• Negotiations
• Direct Selection
• Rated Criteria
MA Options CS
• Open
• Limited
• Direct
• International
• Regional
• Shortlist
Selection Methods
• RFP
• RFB
• RFQ
• DS
• PPP
• UN Agencies
• CDD
• Force Accounts
Selection Methods
• QCBS
• QBS
• CQS
• FBS
• LCS
• DS
• IC
• UN Agencies
• NGOs
• Procurement A.
Selection Methods
•Transparent
•Wider market
•Competition, New Ideas
•New Players in the market
•Quality & Cost
Most preferred
For purchases estimated to be USD50,000 or more
Advertise in media of a
wider circulation
Avoid order splitting
Minimum 4 weeks
Can be longer depending on the complexity of the assignment
Open Tendering
Selection Methods
For transactions estimated to be
between 10,000 ≥50,000
Known vendors from database
Minimum 3 and maximum 8
For transactions estimated to be
between 500 ≥10,000
Simplified documents
For standard off-the-shelf products
Selective Tendering Request for Quotation
Single Source / Direct
Contracting
Lessons learnt
Non compliance with rules especially in early contracting
Evaluation processes not transparent
Criteria not objective. In most cases subjective.
Bidders not being given equal access to information or same
information
Low thresholds
Recommendation
To have detailed training workshop with developers
Either in house or through a consultant
Include procurement capacity as part of the evaluation
criteria (Among the Key Experts)
THE END
?