sop procurement

Document Ref.: Issue Date:

CU/SOP/PROD/25 25th

March, 2013

Issue No.: Revision No.:

02 00

Document Title:

STANDARD OPERATING PROCEDURE FOR PURCHASING

Controlled Copy: Circulation Authorized by Management Representative Page 1 of 22

CHUKA UNIVERSITY

Standard Operating Procedure

For

Purchasing

(CU/SOP/PROD/25)

Document Review Sheet

The signatures below certify that this Standard Operating Procedure has been reviewed and

accepted, and demonstrate that the signatories are aware of all the requirements contained herein

and are committed to ensuring their provision.

Name & Signature

Position Date

Prepared by Ms. R. Nzovila

Senior Procurement Assistant 25.6.2012

Reviewed by Prof. D. K. Isutsa

Deputy Vice-Chancellor (AA)/MR 01.3.2013

Approved by Prof. E. N. Njoka

Vice-Chancellor 25.3.2013


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



CONTENTS

COVER PAGE........................................................................................................................... 1

DOCUMENT REVIEW SHEET............... 1 CONTENTS............................................................................................................................... 2

1.0 AMENDMENT RECORD SHEET.............................................................................. 3

2.0 GENERAL...................................................................................................................... 4 2.1 Purpose................. 4 2.2 Scope.................... 4 2.3 References...... 4 2.4 Definitions.................................... 4 2.5 Abbreviations....................................................................................................... 4 2.6 Responsibility....................................................................................................... 5

3.0 ADMINISTRATIVE STRUCTURE............................................................................ 5

4.0 PROCESSES................................................................................................................ 7 4.1 Overview........................................................................................................... 7 4.2 Process for Acquisition of Goods, Services and Works 7

(a) Activities for open tendering. 7 (b) Activities for request for quotation.. 8 (c) Activities for request for proposal.......... 9 (d) Activities for direct procurement... 9 (e) Activities for low-value procurements.. 9

4.3. Process for Receiving of Goods, Services and Works.... 9 (a) Activities for inspection and acceptance/rejection. 9 (b) Activities for storage.... 9

(c) Activities for issuing goods to users.... 9

(d) Activities for raising GRNs... 9

4.4. Process for Disposal of Stores and Equipment..... 9 4.5. Process for Preparation of the Annual Procurement Plan.. 11 4.6. Process for Preparation of Supplementary Annual Procurement Plan. 12

5.0 RECORDS........................................................................................................................ 12

6.0 KEY PERFORMANCE INDICATORS/OBJECTIVES.............................................. 12

APPENDIX I: THRESHOLD MATRIXES........................................................................... 14

APPENDIXII: PROCESS MAPS 16 APPENDIX III: CRITERIA FOR PRE-QUALIFICATION AND RE-EVALUATION OF

SUPPLIERS............................... 20


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



1.0 AMENDMENT RECORD SHEET

This Standard Operating Procedure is reviewed regularly to ensure relevance to the systems and

process that it defines. A record of contextual additions or omissions is given below.

DATE ISSUE

NO.

REVISION

NO.

PAGE

NO.

SUBJECT OF REVIEW

/MODIFICATION

REVISED

BY HOD

APPROVED

BY MR

1.3. 13 02 00 ALL Changed Quality Management

Representative to

Management Representative

R. Nzovila Prof. Isutsa

1.3. 13 02 00 ALL Changed Deputy Principal to

Deputy Vice-Chancellor


1.3. 13 02 00 ALL Changed procedures to

processes



CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



2.0 GENERAL

2.1 Purpose

The purpose of this procedure is to ensure that all the Procurement activities are managed

effectively to ensure compliance with this International Standard, the Chuka Universitys and the governments statutory policies, procedures and regulations.

2.2 Scope

This procedure applies to and defines all activities carried out by the Procurement Department.

2.3 References

Codes of Conduct for Public Universities, 2003

CU Charter, 2013

CU quality Manual

CU Service Charter

CU Statutes 2013

Egerton University Act, 1987

ISO 9001: 2008 Standard Clauses 7.2, 7.4, 7.5, 8.0

PPOA Procurement Manual, 2006

Procurement and Disposal Act, 2005

Procurement and Disposal Regulation, 2006

Public Officers Ethics Act, 2003

2.4 List of abbreviations

COD = Chairman of Department

D/N = Delivery Note

DVC (AFP) = Deputy Vice-Chancellor (Administration, Finance & Planning).

EOI = Expression of Interest

GRN = Goods Receipt Note

ICT = Information, Communication and Technology

LPO = Local Purchase Order

LSO = Local Service Order

PPDA Public Procurement and Disposal Act, 2005

PPDR = Public Procurement and Disposal Regulation, 2006

PPDGM = Public Procurement and Disposal General Manual

PPOA = Public Procurement Oversight Authority

PC = Procurement Committee

2.5 Definition of Terms

Accounting Officer: Head/CEO of an institution, such as the Vice-Chancellor of a

Asset: Refers to movable and immovable property tangible and intangible

including immovable.

Authority: Refers to the Public Procurement Oversight Authority


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



Bidder: A candidate who submits a tender to a procuring entity.

Disposal: Divestiture of the public assets, including intellectual and proprietary

rights and goodwill and other rights of a procuring entity by means

including sale, rental, lease franchise, auction or any combination

Disposal of Stores and Equipment: This relates to disposal of stores and equipment of a public

entity that are unserviceable, obsolete or surplus.

Goods: Includes raw materials, things in liquids or gas form electricity and

services that are incidental to the supply of goods

Services: Any objects of procurement or disposal other goods and works and

includes professional, non-professional and commercial types of services

as well as goods and services which incidentals are to but not exceeding

the value of those service.

Works: Means construction, repair or demolition of building, roads or structures

and includes: Installation of equipment and materials; Site preparation

and; Other incidental services

Procurement: The acquisition by purchase, rental, lease, hire purchase, license, tenancy,

franchise, or by any other contractual means of any type of works, assets,

services or goods including livestock or any combination

Procurement Cycle: The cycle that starts with the initiation of the process of an individual

procurement requirement and when the goods, works, services have been

delivered and accepted

Procuring en Monetary resources appropriated to procuring entity through Government funds,

including aid grants and credits, put at the Disposal of procuring entity by

foreign donors, and revenues of Procuring entities

Procurement Liaison Officers: Staff appointed by HODs to coordinate procurement issues

related to their departments.

Procurement Plan: The document prepared annually by each procuring entity, to plan all

procurement requirements necessary to perform the activity plan of the

procuring entity

Regulation: Means regulations made under Public Procurement and Disposal Act

The Act: Refers to Public Procurement and Disposal Act, 2005

The Regulations: Refers to Public Procurement and Disposal Regulations, 2006

Urgent need: The need for goods, works or services in circumstances where there is an

imminent or actual threat to public health, welfare, safety, or of damage to

property, such that engaging in tendering proceedings or other

procurement methods would not be practicable.

User Department: A University Department that forwards its needs to Procurement

Department for purchase, and disposal

2.6 Responsibility

The Chief Procurement Officer has the primary responsibility of ensuring that these processes

are implemented and remain adequate for their intended purpose. The Chief Procurement Officer


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



also has the primary responsibility for providing the information from which documentation of

the processes and activities can be compiled and for initiating action to keep them up to date.

However, all departmental staff members are responsible for implementing and ensuring that

these procedures are followed.

3.0 ADMINISTRATIVE STRUCTURE The current administrative structure for the Procurement Department is as follows:

Messengers/cleaners

Procurement Assistants

Procurement Clerks/Store Clerks

Secretary

Procurement Officer

Vice-Chancellor

Chief Procurement and

Senior Procurement Officer (Vacant)

Senior Procurement Assistants


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



4.0 PROCESSES

4.1 Overview

The Procurement Department is responsible for the activities related to acquisition of goods and

services in the University. The core activities of the department include:

(i) Acquisition of goods, services and works through tenders or quotations (ii) Receiving of goods (iii) Storage of goods (iv) Issuing of goods (v) Disposal of goods (vi) Prequalification of suppliers

4.2 Process for Acquisition of Goods, Services and Works

The Procurement Officer processes acquisition of goods using either:

(a) Activities for open tendering process (b) Activities for restricted tendering (c) Activities for request for quotation (d) Activities for request for proposal (e) Activities for direct procurement, or (f) Activities for low-value procurement

(a) Activities for Open Tendering

(i) The user identifies the need. (ii) The user prepares detailed specification to show item description, quantity and unit of

purchase, other factors such as guarantee and after sale service, lead time and samples

provision if helpful.

(iii) The user seeks authority for purchase from the Vice-Chancellor or the DVC (A, F&P) (iv) Approval for purchase is received by Procurement Department. (v) The Procurement Officer makes tender documents based on particular specifications.

(a) This includes an invitation to tender which sets out the following: The name and

address of the procuring entity;

(b) A tender number is assigned to procurement proceeding by the procurement entity;

(c) A brief description of the goods works or services being procured including time limit

for delivery or completion;

(d) An explanation of acquisition of tender documents, including the amount of ant fee;

(e) An explanation of where and when tender shall be submitted and where and when the tenders will be opened; and

(f) A statement that those submitting tenders or their representatives may attend the tender opening of bids.

(vi) The Procurement Officer advertises tenders in two nationally circulated local dailies.


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



(vii) Interested bidders purchase the tender documents, return and the Tenders are opened after 21 days from the date of advertisement.

(viii) Tenders are opened immediately after the 21-days closing time by Tender Opening Committee in the presence of the bidders representatives (a) The Tender Opening Committee is appointed by the CEO.

(ix) The Tender Opening Committee prepares the Tender opening minutes, which are duly signed by all the Tender Opening Members.

(x) The Tender Opening Committee forwards the Tender documents to the Tender Evaluation Committee appointed by the CEO for evaluation following the criteria set

out in the tender specification document.

(xi) The Evaluation Committee evaluates the Tender documents within 30 days from the date of opening as per the criteria shown in Appendix III and prepares a report.

(a) All the Evaluation Committee members sign the tender evaluation report and

submit to the Procurement Officer.

(xii) Procurement Officer calls the Tender Committee to meet for approval of Tender award.

(xiii) The Tender Committee meets with the DVC (AFP) and approves or rejects to approve the Tender with reasons and minutes of the meeting are prepared.

(xiv) The CEO issues award or regret letters to the respective bidders in 7 days. (xv) If the entire tender is rejected (no bidder wins) the Tender document are submitted

back to Procurement Officer for further action.

(b) Activities for request for quotation

(i) The user identifies the need for goods, works or services. (ii) The user prepares detailed specification to show item description, quantity and unit of



(iii) The user seeks authority to purchase from the Vice-Chancellor or the DVC (A, F&P). (iv) Approval for purchase is received by Procurement Department. (v) The Procurement Officer prepares quotations containing specifications provided by

the user and an explanation of where and when quotations must be submitted.

(vi) The Procurement Officer sends the quotations to at least three prequalified bidders. (vii) After the indicated closing date, quotations are opened in the presence of the user,

Internal Auditor and Procurement Officer.

(viii) The Team prepares quotation opening minutes. (ix) The Secretary to Procurement Committee calls a meeting to process the quotations

and prepares minutes, which are submitted to the Procurement Department.

(x) The Procurement Officer prepares LPO/LSO to the winning bidder. (xi) The LPO/LSO is submitted to the DVC (A, F& P) for signing. (xii) The LPO/LSO is checked by the Internal Auditor. (xiii) One copy is submitted to the supplier.


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



(c) Activities for request for proposal

A procuring entity may use request for proposal if:

The procurement is of services or a combination of goods and services; and

The services are of advisory or otherwise of predominately intellectual nature. (i) User identifies need. (ii) User prepares terms of references. (iii) User seeks authority to procure from Vice-Chancellor or the DVC (A, F&P) (iv) Approval to procure is received by Procurement Department (v) A procuring Officer prepares a notice inviting Expression of Interest (EOI). (vi) Expression of Interest (EOI) is advertised in two nationally circulated local dailies. (vii) Interested Bidders submit bid documents within 21 days from date of advertisement. (viii) Expression of Interest (EOI) documents are opened immediately after the closing

time by Tender Opening Committee appointed by the CEO or Procurement Officer.

(ix) Opening minutes are prepared and duly signed by all the tender Opening Members. (x) Evaluation Committee examines each of the expressions of interest to determine their

competencies. Qualified bidders are invited to submit their Technical proposals and

financial Proposals.

(xi) Prequalified Bidders submit their Technical and Financial proposals. (xii) Proposals are opened immediately after the closing time by Tender Opening

Committee appointed by the CEO.

(xiii) Opening minutes are prepared and duly signed by all the Tender Opening Members. (xiv) Proposals are evaluated by the tender evaluation Committee. (xv) Evaluation report is duly signed by all the members in the Evaluation Committee and

submitted to the Procurement Department.

(xvi) Procurement Officer convenes a Tender Committee for approval of award. (xvii) Tender Committee meets and approves or rejects the award with reasons. (xviii) The Procurement Officer prepares award and regret letters signed by the CEO. (xix) After the appeals period (14days from the date of award) the winning bidder is invited

for contract signing with the Vice-Chancellor.

(d) Activities for direct procurement (i) The user identifies the need for goods, works or services. (ii) The user prepares detailed specification to show item description, quantity and unit of



(iii) The user seeks authority to purchase from the Vice-Chancellor or the DVC (A, F&P). (iv) Approval for purchase is received by Procurement Department. (v) An LPO is raised and duly signed by the Procurement Officer and either the Deputy

Vice-Chancellor (A, F&P) or the Vice-Chancellor.

(vi) Procurement Officer sends LPO to the supplier. (vii) The supplier delivers goods.


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



(e) Activities for low-value procurement (i) The user identifies the need for goods, works or services. (ii) The user prepares detailed specification to show item description, quantity and unit of



(iii) The user seeks Approval for purchase from the Vice-Chancellor or DVC (A, F&P). (iv) Approval for purchase is received by Procurement Department (v) The Procurement Officer purchases. (vi) Goods are delivered at the University.

4.3. Processes for Receiving of Goods, Services and Works

(a) Activities for inspection and acceptance/rejection

(i) Supplier delivers goods to the stores (ii) Inspection Committee is convened by the stores clerk (iii) Inspection Committee inspects goods (iv) If the goods meet specifications, they are accepted; otherwise they are rejected and

returned to the supplier.

(b) Activities for storage

(i) After acceptance, the Procurement Officer arranges delivery of items to respective stores accompanied with the delivery documents.

(ii) The Store Clerk arranges direct order with tags on them, prepares Stores Issue Note and Document replacement sheet and waits for the user to collect items.

(iii) For pool items, the Stores Clerk posts the goods in their respective Bin Cards, and the Bin Card Number is indicated in each document.

(iv) For direct items (departmental purchase) the respective Issue Note Number is indicated on each item and every document, i.e., LPOs copy, Delivery Note, Invoice

or cash sale.

(v) The Store Clerk then waits for the user to come and collect the items.

(c) Activities for issuing goods to users

(i) When the user arrives for collection, the Store Clerk offloads the respective items from the respective store.

(ii) The user inspects, counts and checks for quality before signing the Stores Issue Note. (a) Stores Issue Notes are prepared according to the Category of the item codes, e.g.,

Stationery Issue Note, Cleaning Material Issue Note, Hardware & Electrical, Food

Stuff, Staff Uniform, Fixed Assets or Teaching Materials, etc.

(iii) The Store Clerk prepares the Store Issue Notes in triplicate, where the original goes with the goods to the User for record; the pink copy goes to Asset Finance, if for

fixed Asset; and the Green is the master book copy for Store reference.


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



(d) Activities for raising GRNs

(i) Goods are delivered and the Officer In-Charge raises the GRN which is in triplicate. (ii) The Officer In-Charge of Central Stores certifies and endorses the Stores LPOs copy,

Delivery Note, and Invoice/Credit Note.

(iii) The Officer In-Charge detaches the GRNs, LPOs, Stores copy from the documents and files them.

4.4. Process for Disposal of Stores and Equipment

(i) The VC appoints the Disposal Committee to make recommendation on the best method of disposing of unserviceable, obsolete or surplus stores or equipment.

(ii) The employee in-charge of unserviceable, obsolete or surplus stores or equipment brings the matter to the attention of the Disposal Committee.

(iii) The Disposal Committee recommends to the Vice-Chancellor a method of disposing of the stores and equipment which may include any of the following:

(a) Transfer to another public entity with or without financial adjustment; (b) Sale by public tender; (c) Sale by public auction; or (d) Destruction, dumping or burying; (e) Trade-in/Exchange.

(iv) The Vice-Chancellor gives the Committee a written notice on acceptance or rejection of the recommendations of the Committee.

(v) If the Vice-Chancellor acceptable, the stores and equipment are disposed in accordance with the recommendations.

(vi) If not acceptable, the Vice-Chancellor writes back to the Committee, giving reasons for rejecting, and refers back the matter to the Committee for further consideration.

The University may dispose unserviceable, obsolete or surplus stores and equipment

to an employee or a member of a board or committee of the public institution where:

(a) The time and cost required would be disproportionate to the unserviceable,

obsolete or surplus stores and equipment to be disposed.

(b) The employee who is in possession of the stores or equipment to be disposed and

may be given the first priority to purchase the same.

(c) All HODs are required to surrender all unserviceable, obsolete or surplus stores

and equipment in their custody to Central Stores for disposal.

4.5. Process for Preparation of the Annual Procurement Plan

(i) The DVC (A, F & P) requests the user departments in writing to submit their annual Procurement Plan to Procurement Department.

(ii) User Departments prepare and submit to procurement Department a list of the goods, works or services required within a financial year.

(iii) The Procurement Officer consolidates all the user requirements into Annual Procurement Plan.


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



(iv) The Procurement Officer submits the consolidated Annual Procurement Plan to Tender Committee for review and recommendations to the CEO/Vice-Chancellor for approval.

(v) In the case where the Tender Committee does not recommend the consolidated Annual Procurement Plan for approval, the Committee gives the reasons for rejecting in writing.

(vi) Once the CEO/Vice-Chancellor has approved the consolidated Annual Procurement Plan, the Procurement Officer organizes for purchase.

4.6. Process for Preparation of Supplementary Annual Procurement Plan

(i) User Departments prepare and submit to Procurement Department a list of the goods, works or services that were required within the Financial Year but were omitted in the

Annual Procurement Plan.

(ii) User Departments in their submission give reasons in writing to justify the need for supplementary Procurement Plan.

(iii) The Procurement Officer consolidates the requirements into a supplementary Annual Procurement Plan.

(iv) The Procurement Officer submits the supplementary Annual Procurement Plan to Tender Committee, indicating the reason for the unforeseen requirements as provided by the user

Department.

(v) The Tender Committee review and make recommendation to the CEO/Vice-Chancellor for approval.

(vi) In the case where the Tender Committee does not recommend the approval of the supplementary Annual Procurement Plan, the Committee gives the reasons for rejecting

in writing.

(vii) Once the CEO/Vice-Chancellor has approved the supplementary Annual Procurement Plan, it is annexed to the Annual procurement Plan.

(viii) The Procurement Officer organizes for purchase.

4 RECORDS

Tender Opening Minutes

Tender Evaluations Reports

Tender Committee Minutes of Award

Procurement Committee Minutes of Quotation Approval

Goods Received Notes

Issue Notes

Delivery Notes

Goods Return Notes

Copy of LPOs

Goods Inspection Reports

5 PERFORMANCE INDICATORS/OBJECTIVES (a) Indicators

(i) Number of items purchased per year.


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



(ii) Number of Projects awarded per year. (iii) Number of Projects completed per

(b) Objectives (i) To prepare quotations to pre-qualified suppliers and open them within seven (7) days. (ii) To ensure that tenders are evaluated within 30 days from the date of Tender Opening. (iii) To process and approve local purchase order within three (3) days after receiving a

committed requisition from the user Department.

(iv) To inform users to collect their goods one day after Inspection and Acceptance Committee have inspected the goods and inspection report prepared.

(v) To process Goods Received Note within 2 days after Inspection & Acceptance of the purchased goods.

(vi) To carry out disposal of obsolete, obsolescence, idle and surplus goods once a year. (vii) To forward suppliers payment document to Finance three days after receive of

inspection and acceptance report.

(viii) To ensure that an LPO is processed within thirty (30) days after receipt of approved request from the DVC (AFP).


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



APPENDIX I: THRESHOLD MATRICES a) Open Tendering

Procurement

Method

Goods Works Services Person

responsible

initiation

Person signing

the contract

Verification of

goods, services

or works

(i) International

Open tender

The maximum level shall

be determined by funds

allocated in the budget for the particular procurement.

Maximum level shall

be determined by

funds allocated in the budget for particular

procurement.


be determined by funds

allocated in the budget for the particular

procurement

H.O.D/C.O.D Vice-

Chancellor Inspection and

acceptance

committee

There is no minimum level

of expenditure under this method

There is no minimum

level of expenditure under this method.

There is no minimum


H.O.D/C.O.D Vice-Chancellor

Inspection and

acceptance committee

(ii) National Open

tender

Maximum level shall be

determined by funds allocated in the budget for

the particular procurement.

Maximum level shall

be determined by funds allocated in the

budget for the

particular procurement.

Maximum level shall be

determined by funds allocated in the budget

for the particular

procurement.


Inspection and


Minimum level of

expenditure that requires advertisement is KES.

4,000,000.

Minimum level of

expenditure requiring advertisement is

KES. 4, 000, 000.

Minimum level of

expenditure that requires advertisement is KES

4,000,000.


Inspection and


b) Restricted Tendering Procurement

Method


responsible for

initiation

Person

Signing the

contract

Verification of

goods, services

or works

(i) Restricted

tender under section 73 (2)

(a) of the Act


be determined by funds allocated in the budget for

the particular procurement.

Maximum level shall

be determined by funds allocated in the

budget for the

particular procurement.


be determined by funds allocated in the budget

for the particular

procurement.


Inspection and


The minimum level of

expenditure is KES. 5,000,000. -above this

threshold, use open tender.

The minimum level

of expenditure is KES. 5,000,000.-

below this threshold,

use open tender.


expenditure is KES. 5,000,000.-below this

threshold, use open

tender.


Inspection and


(ii) Restricted tender under

section 73 (2) (b) of the Act

The maximum level of expenditure shall be KES.

4,000,000. Above this threshold, use

open tender.

The maximum level of expenditure shall

be KES. 4,000,000. Above this threshold,

use open tender.

The maximum level of expenditure shall be KES.

4,000,000. Above this threshold, use

open tender.


Inspection and acceptance

committee


expenditure is KES. 1,000,000.

Below this threshold, use

request for quotations.

The minimum level

of expenditure is KES. 2,000,000.

Below this threshold,

use request for

quotations.


expenditure is KES. 1,000,000. Below this

threshold, use request for

quotations.


Inspection and


(iii) Restricted

tender under section 73 (2)

(c) of the Act

The maximum level of


Above this threshold, use

open tender.

The maximum level

of expenditure is KES. 4,000,000.

Above this threshold,

use open tender.



Above this threshold, use

open tender.


Inspection and


The minimum level of expenditure shall be KES.

1,000,000.

Below this threshold, use request for quotations.

Minimum level of expenditure is KES

2,000,000. Below

this threshold request for quotations.

The minimum level of expenditure is KES

1,000,000.

Below this threshold, use request for quotations.


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



c) Request for Proposal Procurement

Method


responsible for

initiation

Person

Signing the

contract

Verification of

goods, services

or works

(i) Request for proposal s

(section

76(1)of the Act)

This method is not applicable for goods.

This method is not applicable for works.

Maximum level of expenditure shall be

determined by the funds

allocated in the budget for the particular

procurement.



committee

There is no minimum



Inspection and


d) Request for Quotation Procurement

Method


responsible for

initiation

Person

Signing the

contract

Verification of

goods, services

or works

(i) Request for

Quotation (section 88 of

the Act)


expenditure under this method shall be KES.

1,000,000

The maximum level

of expenditure under this method shall be

KES. 2,000,000


expenditure shall under this method shall be KES.

1,000,000


Inspection and


e) Direct Procurement Procurement

Method


responsible for

initiation

Person

Signing the

contract

Verification of

goods, services

or works

(i) Direct

Procurement

(section 74

(2)of the Act)

No minimum or maximum

expenditure under this method provided the

conditions under this

section are met.

No minimum or

maximum expenditure under this method

provided the

conditions under this section are met.

No minimum or

maximum expenditure under this method

provided the conditions

under this section are met.


Inspection and


f) Low Value Procurement Procurement

Method


responsible for

initiation

Person

Signing the

contract

Verification of

goods, services

or works

(i) low value

procurement ( Section 90 of

the Act)


expenditure under this method is KES. 10,000

per procurement per item.

Maximum level of

expenditure under this method is KES. 10,000

per procurement item.


expenditure under this method is KES. 10,000.


Inspection and


There is no minimum for the use of this method

There is no minimum level of expenditure for

the use of this method

There is no minimum level of expenditure for

use of this method



committee


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



APPENDIX II: PROCESS MAPS i. Process Flow Procurement of Goods through Quotation RESPONSIBILITY ACTION

USER

PROCUREMENT OFFICER

USER

PROCUREMENT OFFICER

VICE-

CHANCELLOR/DVC(AF&P)

INTERNAL AUDITOR

SUPPLIER

INSPECTION COMMITTEE

Approved?

start

Request for goods/Services

Forwarded for approval

Procurement Officer Sources quotations

Quotations are forwarded to user department to raise

requisition

Funds Committed

LPO is raised

Approved DVC or Vice-

Chancellor

LPO is audited

Dispatched to the supplier

Delivery of goods

Inspection of goods

Goods Accepted

END

YE

S

NO


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



ii. Process Flow Procurement of Goods through Open Tender

RESPONSIBILITY ACTION

USER

VICE-CHANCELLOR

/DVC(AF& P)

PROCUREMENT OFFICER

EVALUATION COMMITTEE

TENDER COMMITTEE

VICE-

CHANCELLOR/SUPPLIER

SUPPLIER

INSPECTION COMMITTEE

Approved

Starts

Request for goods/Services

Forwarded for approval

Procurement Officer Advertises tender

Tender submitted, closed and opened

Tenders Evaluated

Tender Awarded

Contract is signed

Delivery of goods or Execution of services

Inspection of goods or services

Accepted

END

Yes

No


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



iii. Process Flow Disposal of Stores/Equipment


USER

CENTRAL STORES/ DISPOSAL

COMMITTEE

VICE-CHANCELLOR

PROCUREMENT

DEPARTMENT/DISPOSAL

COMMITTEE

Approved

Starts

Identification of sores and equipment

for disposal

User Dept. Informs Central

Stores and Disposal Committee

Stores/Equipment disposed

End

Disposal Committee makes

recommendation for disposal

Yes

No


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



iv. Process Flow for Preparation of Procurement Plan


USER

PROCUREMENT OFFICER

TENDER COMMITTEE

PROCUREMENT OFFICER

Starts

User department prepares a list of items

required within a financial year

Forwarded to Procurement

Department

Goods Purchased

End

Yes

No

Procurement Officer forwards to

Tender Committee for approval

List of items/equipment or services from all

departments are reconciled.

Approved


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



APPENDIX III:

CRITERIA FOR PRE-QUALIFICATION & RE-EVALUATION OF SUPPLIERS

Criteria for Pre-Qualification

The intent of prequalification evaluation is to determine the bidders that were substantially qualified

to the tender qualification requirements as per the tender notice.

Qualification for tendering is set in the Invitation to Tender notice and the bidders are expected to meet the following mandatory bidding requirements.

(i) Must submit a copy of PIN Certificate (ii) Must have a Certificate of Incorporation (iii) Must submit a copy of VAT Certificate (iv) Must submit a copy of a valid Tax Compliance Certificate

The following Table shows the criteria for the tender prequalification including the number of points

(variable for tender to tender as need arises) under each of the criteria:

CRITERIA DESCRIPTION POINTS

A. Supplier availability

(20)

Name

Physical address

Town/City

Street

Floor

Door No.

Other landmarks

Drawing/map etc

Telephone address

Fax No.

Email address

Website address

Postal address

2

2

2

2

2

1

1

1

1

2

2

1

1

B. Supplier relevance &

Experience

(16)

Nature of business

(Manufacturer/Processor/Maker) = 3

(Registration as dealer/agent/core business) = 2

Usual business transacted for the last 5 years/Any worth KSh.

500,000 or more at least 5 assignments

Relevant Government/State Corporation tenders awarded

Authentic recommendation by any two clients served in the

last one year rating:

Good = 3

Fair = 2

Poor = 1

3

5

5

3


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



C. Supplier capability

(13)

Financial capability

Audited reports for the last 1 year = 3

Audited reports for the last 2 years = 5

Terms of payment

Cash = 0

30 days = 3

60 days = 4

90 days = 5

8

5

D. Legality of supplier

business (25)

Renewed Certificates, Registration and licenses

Letters of introduction

Copy of PIN Card

VAT Registration/Exemption

Certificate of Tax Compliance

5

5

5

5

5

TOTAL 74

Criteria for Re-Evaluation

(i) Past performance of the supplier (ii) Price consistency (iii) Quality of product/services (iv) Communication/feedback provided

Business Name

Physical address

Tender Name Category

SN PARAMETERS VERY GOOD GOOD FAIR POOR

1 Delivery time

Quality of products

supplied

Delivery of complete

orders

Price stability

Communication

After sales services

Credit facility

Delivery to the

University

Rejection of goods

KEY

Very good = 10

Good = 6

Fair = 2

Poor = 2


CU/SOP/PROD/25 25th

March, 2013


02 00

Document Title:



(i) Suppliers who score 60 and above satisfy the expectations of the University. (ii) Suppliers who score below 60 do not satisfy the expectations of the University and

therefore need to be informed on areas of improvement.

(iii) Name and signature of evaluators

Name Signature Date

1

2

3

4

sop procurement

Documents

c activities

b activities

d activities

e activities

document title

issue date

direct procurement

management representative