TOPIC: GENERAL PROCUREMENT RULES AND PROCEDURES

Objectives of public procurement:

 Ensure public organisations get value for money

 Promote competition and ensures that competitors are treated fairly by use of competitive
procurement methods
 Promotes integrity and fairness of procurement procedures
 Restore public confidence in procurement process
 Build public trust to stakeholders
 Facilitate promotion of local industry and economic development
 To ensure that goods and service are obtained at the right price, right quality, right quantity,
from right source and delivered at the right place.

Principles of Public Procurement

Public procurement principles are the foundation of public procurement and should be addressed
in the public procurement rules. They govern the management of public procurement, and also
set the framework for a code of conduct for public procurement practitioners and all other
officials directly or indirectly associated with the public procurement process.

As a practitioner you must have a clear understanding of public procurement principles, and
know how to apply them to guide your day-to-day decision-making process. By integrating these
principles into your work ethics, the outcome of your decisions will always be in line with the
goal of public procurement. They include:

1. Consistency: - Suppliers should, all things being equal, be able to expect the same general
procurement policy across the public sector.

2. Accountability: - Effective mechanisms must be in place in order to enable Departmental

Accounting Officers and their equivalents in other public bodies to discharge their personal
responsibility on issues of procurement risk and expenditure;

3. Effectiveness: - Public bodies should meet the commercial, regulatory and socio-economic
goals of government in a balanced manner appropriate to the procurement requirement;

4. Efficiency: - Procurement processes should be carried out as cost effectively as possible;

5. Fair-dealing: - Suppliers should be treated fairly and without unfair discrimination,

including protection of commercial confidentiality where required. Public bodies should not
impose unnecessary burdens or constraints on suppliers or potential suppliers.

6. Integrity: - There should be no corruption or collusion with suppliers or others;

7. Informed decision-making: - Public bodies need to base decisions on accurate information

and to monitor requirements to ensure that they are being met;

8. Legality: - Public bodies must conform to European Union and other legal requirements;
9. Responsiveness: - Public bodies should endeavour to meet the aspirations, expectations and
needs of the community served by the procurement.

10. Transparency: - Public bodies should ensure that there is openness and clarity on
procurement policy and its delivery.

RISKS ASSOCIATED WITH PUBLIC PROCUREMENT

Public procurement carries several risks that can impact the efficiency, transparency, and
effectiveness of purchasing activities within government and public sector organizations. These
risks include:

1. Corruption and Fraud: Public procurement is vulnerable to corrupt practices such as

bribery, favoritism, and fraud, where officials may manipulate tender processes or award
contracts based on personal gain rather than merit.
2. Non-Compliance with Regulations: Public procurement must follow strict legal
frameworks and regulations. Failure to adhere to these laws can lead to legal challenges,
penalties, and contract cancellations.
3. Supplier Collusion: Vendors may collude to fix prices, manipulate bids, or form cartels
to inflate the costs of goods and services, undermining competitive procurement
processes.
4. Cost Overruns: Public procurement projects, especially large infrastructure projects, can
exceed their budgets due to poor planning, unforeseen expenses, or inefficient project
management.
5. Delays in Delivery: Suppliers may fail to deliver goods or services on time, leading to
project delays, service disruptions, and potential financial penalties.
6. Quality Risks: Procuring substandard or low-quality goods and services can occur when
cost-cutting takes priority over quality, leading to unsatisfactory project outcomes and the
need for replacements or repairs.
7. Inefficiency and Waste: Poorly designed procurement processes can result in
overstocking, under-utilization of resources, or the purchase of unnecessary goods or
services, leading to wastage of public funds.
8. Political Interference: Political pressure or influence can distort the procurement
process, leading to biased decision-making, contract awards to unqualified vendors, or
project mismanagement.
9. Lack of Transparency: Inadequate disclosure of procurement decisions and insufficient
public access to procurement data can lead to suspicion, reduce public trust, and enable
malpractice.
10. Supply Chain Disruptions: Dependence on a limited number of suppliers or global
disruptions (e.g., pandemics, trade restrictions) can cause procurement challenges,
affecting the timely delivery of goods and services.
11. Litigation Risks: Disappointed bidders may challenge procurement decisions in court,
delaying projects and increasing legal costs for the procuring entity.
12. Conflicts of Interest: Personal relationships or affiliations between procurement officials
and suppliers can lead to biased decisions that favor certain vendors over others,
undermining fairness and transparency.
Types of Purchasing Systems

Purchasing systems
1. Hand to mouth purchasing
A purchasing manager may decide to procure only that quantity which may keep the production
unit or commercial establishment disregarding the fact that there may be slow deliveries, strikes
in supplies establishments, transport bottlenecks, etc.
He may not care for a reserve supply which protects the organization from such eventualities and
keep the organization going in adverse circumstances. If the purchasing manager goes by this
dictum, he is said to have resorted to hand to mouth purchasing. It’s the most dangerous
purchasing system.
2. Forward purchasing
It refers to purchasing for the future. The purchasing manager commits the organization into the
future. i.e commits to buy at a future date a contracted quantity at a contracted price, whatever
maybe the ruling price then. It’s not speculative purchasing
3. Speculative purchasing
This type of purchasing is resorted to with an aim of profiting from price changes in future. By
studying the demand and supply trends, one can decide to speculate and purchase a good that he
thinks will be of limited supply in future.
4. Hedging
Is the process of entering simultaneously into two contracts of an opposite nature-one in the cash
market, the other in the future markets- whose primary purpose is to protect operating profit
margins.

Process of Procurement of Goods, Works and Services

 The Procurement Process

a) Need Identification
A needs identification process defines the reasons why you plan to buy goods, works or services.
Before preparing a procurement plan, it's important to define the reasons why you need to buy
goods, works or services and plan for associated risks.
b) Procurement Planning
Procurement planning increases the transparency and predictability of the procurement process.
It helps organizations collect similar requirements under one contract, as well as divide complex
requirements into multiple contract packages to maximize cost savings.
c) Initiation of the procurement process:
The initiation of the procurement process should be through a purchase requisition form. The
purchase requisition should clearly state the requirements with articulate specifications/terms of
reference/bills of quantities or drawings where applicable.
d) Preparation of bid documents
The procurement function prepares bid documents with the input of the user department. The bid
documents are prepared in such a way that it communicates what is required by the procuring
entity. It states the evaluation and award criteria that encourage fair completion and achievement
of value for money.
e) Invitation to tender
The accounting officer should ensure the preparation of the invitation to tender is done that sets
out all the required information.
Content to be included in an invitation to tender are:
 The name and address of the procuring entity;
 The tender number assigned by the procuring entity;
 A brief description of the goods, works, or services being procured including the time limit for
delivery or completion;
 An explanation of how to obtain the tender documents, including the amount of any fee, if any;
 An explanation of where and when tenders shall be submitted and where and when the tenders
shall be opened;
 A statement that those submitting tenders or their representatives may attend the opening of
tenders;
 Applicable preferences and reservations
 A declaration that the tender is only open to those who meet the requirements for eligibility;
 Requirement of serialization of pages by the bidder for each bid submitted
All tender documents sent out to eligible bidders must be recorded.
Modifications to tender documents
 Tender documents may be amended by a procuring entity at any time before the deadline for
submitting tenders by issuing an addendum without altering the substance of the original tender.
 This amendment can be on the procuring entity's own initiative or in response to an inquiry by a
candidate or tenderer.
 A procuring entity will promptly provide a copy of the addendum to each person to whom the
procuring entity provided copies of the tender documents.
 The addendum is deemed to be part of the tender documents.
f) Submission and receipt of tenders
The manner in which tenders will be submitted and received is as follows:
 In writing, signed and sealed whether the document is in manual or electronic form.
 The tender document and the envelope should bear the tender number assigned by the procuring
entity
 It should be submitted before the deadline
 It should be dropped in an accessible tender box or electronic tender box
 It should be placed unopened in the tender box whether delivered by self or otherwise
 It should be received in a manner set out in the tender documents and the procuring entity must
acknowledge receipt of the same
g) Opening of tenders
The opening of tenders will be carried out by a committee appointed by the accounting officer
whose functions will be among others:
 To open all tenders received.
 Read out loudly the names of persons who submitted the tender and recorded them in the tender
opening register
 Assign an identification number to each tender
 Record the name, the number of pages received, and where applicable, the total price and
tender security.
 Sign each tender on one or more pages as determined by the tender opening committee
 Prepare tender opening minutes and acknowledge the minutes as a true copy by each member
signing against
N/B. A tender is said to be responsive if it conforms to all the eligibility and other mandatory
 requirements in the tender documents.
h) Evaluation of tenders
The evaluation of the tenders will be conducted by the tender evaluation committee appointed in
writing by the accounting officer on the recommendation of the HPF and whose functions will
be:
 To evaluate all the responsive bidders following the set criteria taking into consideration price,
quality, time and service for the purpose of evaluation
 To prepare an evaluation report containing a summary of the evaluation and comparison of
tenders
 Submit the evaluation report to the person responsible for procurement for his or her review
and recommendation.
 Sign the evaluation report by each member of the evaluation committee.
N/B.
i. A procuring entity may seek in writing, a clarification of a tender from the tenderer to assist in
the evaluation and comparison of tenders and clarification will not change the terms of the
tender.
ii. The tender sum as submitted and read out during the tender opening will be absolute and final
and will not be the subject of correction, adjustment, or amendment in any way.
iii. Local contractors who are Kenyan citizens and own at least fifty-one percent shares will be
entitled to twenty percent of their total score in the evaluation, provided the entities or
contractors have attained the minimum technical score.
i) Post-qualification
 An evaluation committee may, after tender evaluation, but prior to the award of the tender,
conduct due diligence and present the report in writing to confirm and verify the qualifications of
the tenderer who submitted the lowest evaluated responsive tender to be awarded the contract.
 Due diligence may include obtaining confidential references from persons with whom the
tenderer has had a prior engagement.
 To acknowledge that the report is a true reflection of the proceedings held, each member who
was part of the due diligence by the evaluation committee will initial each page of the report, and
append his or her signature as well as their full name and designation.
j) Professional opinion
 The head of the procurement function will review the report of the evaluation committee and
provide a signed professional opinion to the accounting officer on the procurement or asset
disposal proceedings.
 The professional opinion provides guidance on the procurement proceeding in the event of
dissenting opinions between tender evaluation and award recommendations.
 The accounting officer will take into account the views of the head of procurement in the signed
professional opinion in making a decision to award a tender.
k) Recommendation for contract awards
All tenders will be evaluated by the evaluation committee of the procuring entity for the purpose
of making recommendations to the accounting officer through the head of procurement to inform
the decision of the award of the contract to the successful tenderers.
l) Notification of intention to enter into a contract
It is the responsibility of the accounting officer to notify in writing the person whose tender has
been successful and accepted and the successful bidder will accept the award by signing in
 writing. The accounting officer should also notify the unsuccessful bidder disclosing the reasons
for their unsuccess.
m) Extension of the tender validity period
The accounting officer may extend the validity of the tender before it expires by writing a notice
of an extension of not more than one month and the extension should only be done once
n) Contract preparation
The accounting officer is responsible for the preparation of contracts in line with the award
decision. All contracts of a value exceeding Kenya shillings 5 billion are cleared by the
Attorney- General before they are signed. Each Cabinet Secretary regularly informs the Cabinet
and national treasury of all government contracts exceeding Kenya shillings 5 billion.
The existence of a contract is confirmed through the signature of a contract document
incorporating all agreements between the parties. The contract is signed by the accounting officer
or an officer authorized in writing by the accounting officer of the procuring entity and the
successful tenderer.
o) Contract performance and management
An accounting officer or his or her appointed representative is responsible for ensuring that the
goods, works and services are of the right quality and quantity. The head of the procurement
function is responsible for assisting the accounting officer to confirm the right quality and
quantity of goods, works and services have been delivered to the procuring entity and shall issue
a certificate of acceptance to the accounting officer except where technical specifications are
from another technical department or professionals engaged to work on behalf of the accounting
officer is responsible for confirming the right quality and quantity of goods, works or services
have been delivered and issue a certificate to the recipient accounting officer.

Sources of supplier information for goods, works and Services

1) Professional contacts: Professional contact of the purchasing staff can facilitate an evaluation
of specific suppliers capability
2) Trade journals: Trade journals are published regularly by different industries in various
countries and provide vital information on suppliers
3) Directories: Directories are good sources of information and are often printed by an
organized industry in a particular country
4) Trading companies: Japan frequently uses this marketing channel which provides advantages
of convenience, efficiency and assurance of supply to international buyers.
5) Import brokers: They offer a buying and forwarding service in exporting country and often
become very knowledgeable about the products
6) Catalogue: This is a booklet containing details of items for sale by the supplier. They contain
valuable technical information and format of presentation is simple.
7) Trade directories: These contain new product requirements, special/occasional requirements
and emergency items.
8) Yellow pages: Entail a classified telephone directory, often printed on yellow paper that lists
subscribers by the business or service provided.
9) Sales persons: They can provide useful service information regarding suppliers
10) Exhibition: This is a public display of products/services and it offers a great opportunity to
talk with a number of potential suppliers in the same place at the same time.
11) Business advisers: Local business-support organisations, such as chambers of commerce or
Enterprise Agencies often point out prospective suppliers to deal with.
12) Information provided by prospective suppliers
13) Internet
14) Advertisements

Factors to consider in evaluation of supplies bids

1. Finance:

The supplier should be financially stable to meet the holistic buyer’s requirements. The checks
recommended are:
 The assessed turnover of the enterprise over three years
 The profitability and the relationship between gross and net profits of the enterprise over
three years
 The value of capital assets, return on capital assets and return on capital employed
 The scale of borrowings and the ratio of debts to assets
 The possibility of takeover or merger affecting ability to supply.
 Whether or not the firm is tied to a small number of major customers, so that if one or more
withdrew their businesses it might cause the firm financial difficulties.
 Whether or not the organization has sufficient capacity to fulfill the order.

2. Production Capacity:
This entail the limiting capability of a productive unit to produce within a stated time period,
normally expressed in terms of output units per unit of time.

In appraising supplier capacity, attention should be given to the following consideration:

 The maximum productive capacity in a normal working period.
 The extent to which capacity is currently over or under committed – for example, a full
order book may raise doubts about the supplier’s capacity to take on further work or else
you have to wonder if a substantial amount of capacity is underutilized.
 How existing capacity might be expanded to meet future increased demand
 The percentage of available capacity utilized by existing major customers
 What percentage of capacity would be utilized if the potential supplier were awarded the
business of the purchaser – this can also be assessed in terms of annual turnover, but in
any case, care should be taken to avoid making the supplier overly dependent on one or
two customers.
 What systems are used for capacity planning?

3. Human Resources:

This involves checking information regarding the title, qualification and experience of
managerial staff, training schemes, and encouragement of teamwork and empowerment of
employees. Information should be obtained regarding the:
 Number of people employed in manufacturing and administration
  Use of human resources – whether economical, with everyone busy, or extravagant, with
excess people doing little or nothing.
 Names, titles, qualifications and experience of managerial staff
 Encouragement of team work and empowerment
 Worker representation and recognized trade unions
 Days lost due to industrial disputes in each of the past five years
 Turnover of managerial and operative staff
 Workers’ attitudes to the organization and concern for meeting customers’ requirements.

4. Quality:

The buyer should check critically to establish whether the supplier embraces some of the
fundamental quality attributes e.g. Total quality management (TQM); International organisation
for standardization (ISO) etc. Appraisal may require satisfactory answers to such questions as the
following.
 Has the supplier met the quality approval criteria of other organizations, such as the Ford
quality Awards, the Ministry of Defence, British Gas or others?
 To what extent does the supplier know about and implement the concept of total quality
management?
 What procedures are in place for the inspection and testing of purchased materials?
 What relevant test and inspection process does the supplier use?
 What statistical controls are applied regarding quality?
 Does quality control cover an evaluation of quality?
 Can the supplier guarantee that the purchaser can safety eliminate the need for all
incoming inspection/ (this is especially important for JIT deliveries.

5. Performance:

The buyer should also check the track record of the supplier to establish the performance trend.
Particularly when appraising suppliers of non-standard products such as construction projects or
the installation of computer system, questions should be asked regarding the following;
 What similar projects has the supplier already undertaken?
 What current projects are in hand?
 What are / were the distinctive features of such projects?
 What innovations might be introduced?
 What customers can the supplier cite as referees?

6. Environmental And Ethical Factors:

The buyer has a duty to check fully how the supplier approaches environmental and ethical
issues. To this extent therefore, policies, and procedures in line with environmental/ethical
considerations should be critically checked. In Kenya, National Environmental Management
Authority (NEMA) provides guidelines on environmental policies and, where applicable,
suppliers should be expected to have an environmental policy and procedures for the
implementation of such a policy. A large number directives and regulations have also been
issued relating to air, water, chemicals, packaging and waste
 Apart from those with reference the NEMA suitable questions to ask include the following:-
 Has responsibility for environmental management been allocated to a particular person?
 Are materials obtained, so far as possible, from sustainable sources – such as timber?
 What is the lifecycle cost of the suppliers’ product?
 What facilities has the supplier for waste minimization, disposal and recycling?
 What energy savings, if any do the supplier’s products provide?
 What arrangements are in place for the control of dangerous substance and nuisance?

7. Information Technology:

The buyer should check whether the prospective suppliers embrace the information technology.
Some of issues in line with IT entail, checking whether the supplier has a website; finding out
whether the suppliers procedures are automated etc. Research indicates that, at the time of
writing, more than a third of buyers currently use the Internet to conduct transactions and such
usage is likely to increase dramatically. Additionally, the Web also supports a variety of
activities, such as identifying new sources of supply, finding product information, including
products, prices and delivery as well as tracking orders and receiving technical advice and after –
sales service. It is useful to ask mainly open-ended questions under this heading as the replies
will indicate the extent to which the supplier is exploiting the possibilities of e-business.
PARTIES INVOLVED IN EXPERTS JUDGEMENT IN PROCUREMENT IN KENYA
In procurement, expert judgment involves consulting individuals or groups with specialized
knowledge to assist in decision-making, especially for complex or high-value acquisitions. They
include:
1. Internal Procurement Experts
 Procurement Officers: These are individuals within the organization who have professional
expertise in procurement processes. They advise on purchasing decisions, vendor selection, and
contract negotiations.
 Project Managers: They provide insights on project requirements and ensure that procurement
aligns with project timelines and objectives.
 Technical Experts: Engineers, IT specialists, or other technical staff may be consulted to
evaluate the specifications and suitability of goods or services being procured.
2. External Consultants
 Independent Procurement Consultants: These are professionals or firms hired to provide
expert advice on procurement strategies, vendor evaluations, and best practices.
 Legal Experts: Lawyers or legal consultants help ensure compliance with Kenya’s Public
Procurement and Asset Disposal Act and advise on contract law, risk mitigation, and dispute
resolution.
 Financial Experts: They provide advice on the financial implications of procurement decisions,
including budget alignment, cost-benefit analysis, and long-term financial commitments.
3. Regulatory Bodies and Oversight Authorities
 Public Procurement Regulatory Authority (PPRA): This body provides guidance and
oversight to ensure that procurement processes are compliant with public procurement laws in
Kenya. PPRA may offer expert opinions during complex or disputed procurement processes.
 Ethics and Anti-Corruption Commission (EACC): In cases where procurement involves
issues of ethics, conflict of interest, or corruption, the EACC may be involved to provide expert
judgment and investigation.
4. Industry Experts and Suppliers
 Suppliers and Vendors: Industry experts or suppliers may offer advice, especially when
evaluating technical specifications or potential innovations in products or services. However,
care must be taken to avoid conflicts of interest.
 Professional Associations: Bodies such as the Kenya Institute of Supplies Management
(KISM) or Kenya Association of Manufacturers (KAM) can offer expert insights on industry
trends, pricing benchmarks, and supplier reliability.
5. Auditors and Monitoring Agencies
 Internal Auditors: They review procurement decisions to ensure financial accountability and
adherence to internal controls.
 External Auditors: These auditors, such as those from the Office of the Auditor-General, may
provide expert reviews of procurement activities, ensuring compliance with legal and financial
standards.
6. End-Users or Beneficiaries
Departmental Heads or End-Users: Those who will ultimately use the goods or services
procured may offer practical insights on the suitability and functionality of the items in
question
IMPORTANCE OF EXPERTS JUDGEMENT IN PROCUREMENT
Expert judgment plays a crucial role in procurement, especially in ensuring informed decision-
making, managing risks, and optimizing outcomes. Reasons why expert judgment is important in
procurement include;
1. Informed Decision-Making: Expert judgment provides insights from individuals with
specialized knowledge and experience in procurement, helping organizations make well-
informed choices. This includes selecting suppliers, negotiating contracts, and determining the
best procurement strategies.
2. Risk Management: Procurement professionals often rely on expert judgment to identify, assess,
and mitigate potential risks associated with suppliers, contracts, and market conditions. Experts
can anticipate risks that may not be evident to less experienced personnel and offer strategies to
minimize them.
3. Compliance with Standards: Procurement processes are bound by legal and regulatory
requirements. Experts help ensure that all procurement activities comply with applicable laws,
standards, and ethical guidelines, reducing the likelihood of legal issues or penalties.
4. Cost Optimization: Experts can assess the total cost of ownership, ensuring that procurement
decisions are not only based on price but also on value, quality, and long-term benefits. Their
experience can lead to cost-effective solutions while maintaining quality.
5. Supplier Evaluation: Supplier selection is a critical part of procurement. Expert judgment is
valuable in evaluating the capabilities, reputation, and financial stability of suppliers, ensuring
that the chosen vendors meet the organization's needs and standards.
6. Tailored Procurement Strategies: Procurement experts provide guidance on developing
procurement strategies that are aligned with the specific needs and goals of an organization.
They can recommend the most effective sourcing methods, such as competitive bidding or direct
negotiations, based on the situation.
 7. Handling Complex Procurement Scenarios: In situations involving large-scale projects or
international procurement, expert judgment is invaluable for navigating complexities such as
currency fluctuations, geopolitical risks, and supplier diversity.
METHODS OF PROCUREMENT
Open tendering / competitive bidding method.
This the most preferred method of procurement that all public institutions and state-funded
agencies are encouraged to apply in the procurement process to ensure a transparent use of
public funds, effective competition and fairness to the suppliers who may wish to participate in
the tendering process.
In the open tender method, participation is open to all suppliers/bidders who may wish to
participate by making offers inform of tenders or bids when a procuring entity make an
advertisement inviting tender for the supplies of goods, works or services.
The following are primary principles of open tendering method
1) Bids open to all eligible prospective suppliers/bidders
2) Be advertised on the appropriate media platform to reach the target market whether locally
or internationally.
3) Be based on some objective qualification criteria which must be communicated to all
bidders
4) Have clear, fair and objective evaluation criteria applicable to all bidders
5) An award criteria based on the most economically advantageous bid (lowest cost tender)
6) Based on a clear specification communicated to bidders through tender documents
Forms of open tendering
Open tendering method may take different forms depending on the scope of the intended
competition, the interest of the procuring entity or in compliance with preferences and
reservation scheme.
The followings are the forms of open tender method
1. International open tender. This is where the scope of competition is open to international
suppliers, contractors or service providers. International open tender is normally used when the
tender value is normally huge and the requirement is meant to meet international standards or
where there is limited local expertise in the works, goods or service needed. For instance, the
construction of international airport or a regional rail road meant to meet international standards
may necessitate the use of international open tender method.
The following conditions apply in case of international tendering;
i. The invitation to tender document must be in English
ii. The invitation to tender should be advertised in one or more English language newspaper or
other publications with sufficient worldwide circulation
iii. The preparation period for international tenders must be at least 21 days
iv. The technical specifications must be compatible with the requirements under the Kenyan law or
be based on international standards applicable in international trade
v. Where tender security is applicable, the bidder should provide security in a form that is widely
used in the international trade or one that is specifically allowed in the tender documents.
vi. Any general or specific conditions to which the contract will be subject must be of a kind
vii. used in international tendering
2. National open tender. This is used when the scope of competition is restricted within the
country i.e. the requirement can be provided the companies domiciled within the country.
3. County specific open tender. This is when the open tender competition is restricted within a
specific county i.e. only the market operators registered within a certain county are allowed to
participate in the bidding process. The intention is to protect the suppliers
within a certain county from national competition and to economically empower and build
capacity of county suppliers.
4. Special groups’ specific open tender. This is where open tender competition is restricted to
within a specific group e.g. women, youth or the people with disabilities (PWDs). This is a
common approach of using procurement as a tool for economic empowerment to uplift the less
fortunate in the society. In some jurisdiction e.g. in Kenya, the legal regime governing
public procurement reserves thirty percent (30%) of the annual procurement budget for such
purposes.
Importance of Open Tendering in Procurement
1) Ensures Fair Competition: Provides equal opportunity for all qualified suppliers, promoting a
competitive environment.
2) Achieves Best Value: Encourages suppliers to offer their best prices and solutions, ensuring
cost-effective procurement.
3) Promotes Transparency: Ensures a clear and open process, enhancing trust among
stakeholders.
4) Risk Mitigation: Reduces the risk of favoritism and corruption by adhering to a structured and
transparent process.
5) Quality Assurance: Helps in selecting suppliers based on merit, ensuring high standards and
quality outcomes.
6) It promotes Accountability- This makes it easier for taxpayers to understand how their money
is being used and helps to safeguard public funds from being wasted or abused.
7) It Helps To Safeguard Public Funds: Open tendering helps to safeguard public funds from
being wasted or abused by ensuring that the best possible deal is obtained for the government.
This also ensures that taxpayer money isn’t spent on low-quality or unnecessary
products/services.
Circumstance/Criteria for the use/ conditions favoring the use of open tender method
1) The tender value (value of the purchase) should be large enough to justify the cost of this
method in line with the threshold matrix.
2) Competitive market conditions-i.e. there must be an adequate number of suppliers in the market
3) The should sufficient time to allow the application of tendering process to be completed i.e., no
agency of the need
4) The specifications should be clear enough to give the bidders/tenderers a clear idea of what is
expected of them and the cost involved
5) The suppliers should be technically qualified and willing to do business
6) The requirements should be standard- not unique to allay as many suppliers to participate
7) Adequate time to allow suppliers prepare their bids
8) The value / cost of requirements should be high enough to justify the expenses involved
9) Standard or uniform evaluation criteria to facilitate fairness in the tendering processs

Benefits of Open Tendering

• Helps to enhance competition by allowing more suppliers to participate
• Helps to enhance fairness in awarding of contracts
• Promotes transparency and accountability in public procurement
• Ensures wide exposure in the supply market- access to wide variety of goods and services
• Enhances the ability to obtain better quality and avoid complacency
• Enhances the opportunity for better terms of trade such as prices delivery etc.
Limitations of Open Tendering
1) Costly- a lot of expenses are incurred in the tendering process in terms of administrative costs
such as advertisement and the cost of preparing tender documents
2) Time consuming- lengthy procedures involved hence not suitable for emergencies/too
slow/bureaucratic
3) Focus on lowest price may lead to supply of substandard goods/service
4) It is not suitable for small value purchases
5) External interference- The system may be subject to manipulation during the evaluation of the
tender
6) Suppliers may not be credited for their past performance thereby demotivating the suppliers
7) Competition weakens the relationship between the firm and suppliers
8) Requirement for tender bond/security may discourage small suppliers from participation
9) May require highly qualified staff or technical staff to come up with technical specification
10) Excessive procedures may discourage some competent suppliers participating in the process
11) The possibility of building long term relationship with the suppliers is limited
ALTERNATIVE PROCUREMENT METHODS
Two-stage tendering
Two-stage tendering is a procurement method primarily used for complex projects where the
buying entity (the procuring entity) lacks adequate information or clarity on its exact needs. It
splits the tendering process into two stages to allow for a more collaborative and flexible
approach to finding the best solution. Here’s a breakdown of the process and its significance:
Circumstances/Reasons for Two-Stage Tendering:
1) Complexity of the Procurement: It is often used when the works, goods (especially capital
goods), or services required by the procuring entity are highly complex. This complexity makes
it difficult to prepare a clear, detailed specification at the outset.
2) Inadequate Knowledge by the Procuring Entity: The method is also suitable when the
procuring entity lacks sufficient knowledge to accurately specify its requirements. By allowing
suppliers to present solutions, the entity can gain a better understanding of what it truly needs.
3) Urgent Project Timelines: If the project has tight deadlines and needs to begin quickly, two-
stage tendering allows for work to start based on preliminary designs while the final contract is
negotiated and finalized.
4) Need for Specialist Input: When a project involves specialized or technical input that requires
expert advice during the design phase, two-stage tendering allows the contractor to contribute
their expertise early in the process.
5) Cost Certainty with Flexibility: If there is a need for early price certainty but flexibility in
design, the two-stage process helps determine initial costs based on a general idea of the project,
with final costs agreed upon after more detailed specifications are established .
The Two Stages of the Process:
1. First Stage: Submission of Proposals Without Pricing
 Invitation for Proposals: In this stage, the procuring entity advertises the tender, asking for
proposals from potential suppliers. However, no prices are included at this stage.
Proposal Evaluation: The goal here is to evaluate the technical and conceptual proposals from
the suppliers, allowing the procuring entity to assess which proposals are most likely to meet its
needs.
Clarification of Requirements: Through this process, the procuring entity can refine its
understanding of what it needs, allowing it to update or modify the original specifications.
2. Second Stage: Submission of Final Bids with Prices
Invitation for Final Bids: Only the suppliers whose proposals were successful in the first stage
are invited to submit final bids, this time including the price. At this point, the procuring entity
may update or modify the tender documents to reflect the more detailed understanding it has
gained.
Option to Withdraw: Suppliers who are not willing to submit final bids can withdraw without
any penalty or forfeiture of their tender security, giving flexibility to bidders.
Final Evaluation and Award: The final bids are evaluated, comparing both technical
specifications and price. The contract is awarded to the bidder who offers the best value
according to the criteria set by the procuring entity.
ADVANTAGES:
 Early Contractor Involvement: The method allows for early involvement of the preferred
contractor in the planning and design stages, promoting collaboration and potential value
engineering.
 Flexibility: It provides flexibility in project design and allows for adjustments based on the input
of the preferred contractor.
 Risk Mitigation: The prequalification stage helps identify and mitigate potential risks by
selecting a contractor with the necessary qualifications and experience.
 Competitive Pricing: The second stage ensures competitive pricing as only prequalified
contractors are invited to submit detailed tenders.
 Improved Specification Clarity: Since the procuring entity may lack detailed knowledge at the
beginning, two-stage tendering helps clarify the technical requirements as suppliers provide their
input. This reduces the likelihood of procurement mistakes or incomplete specifications.
 Encourages Innovation: Since suppliers are asked to propose solutions in the first stage, they
have the opportunity to offer innovative approaches that the procuring entity may not have
considered initially.
Restricted tendering
This is a procurement method used by the buying entities when participation in the tendering
process is limited to a few suppliers or a predetermined prequalified list of suppliers, i.e., the
tendering process is restricted and therefore not open to all the bidders who may wish to
participate. In public procurement practice, the procuring entity may only apply restricted
tendering method provided the following CONDITIONS (CIRCUNSTANCES) are satisfied-
1) If the time and cost required to examine and evaluate a large number of tenders/bids would
be disproportionate to the value of goods, works or services to be procured
2) If there is evidence to the effect that there are only a few known suppliers in the market
(oligopolistic market) of goods or services to be procured
3) If the competition for a contract is restricted to predetermined suppliers because of
complex and specialized nature of the goods, works or services
4) In special cases, the restriction may be imposed because of the sensitive nature of the materials
to be procured.
5) Complex and Specialized Requirements: For projects or procurements involving highly
specialized or complex goods, works, or services, where only a few suppliers have the necessary
expertise, restricted tendering ensures that only qualified suppliers are invited to bid.
6) Sensitive or Confidential Procurement: In cases where the nature of the materials or services to
be procured is sensitive or confidential (e.g., defense or security-related goods), restricted
tendering may be imposed to limit access to trusted suppliers.
7) Prequalification of Suppliers: When a procuring entity has a prequalified list of suppliers who
meet certain standards or requirements, restricted tendering is used to invite only those suppliers
to participate, ensuring quality and compliance with established criteria.
The procuring entity maintains a list of suppliers for the different categories of goods works and
services it may need from time to time. Alternatively, the procuring entity may maintain and
keep updating a list of pre-qualified suppliers for various categories of goods works and services
from where to draw the participants in the restricted tendering process.
Advantages of Restricted Tendering
1. Reduced Procurement Lead Time: Restricted tendering minimizes the time needed for
procurement because there is no need to advertise the tender publicly or prepare extensive
solicitation documents, leading to faster decision-making.
2. Efficient Evaluation Process: Since only a limited number of prequalified bidders are invited,
the evaluation process is faster and less resource-intensive compared to open tendering, which
can involve numerous bids.
3. Higher Probability of Response: The procuring entity typically knows the potential suppliers
well, ensuring a higher likelihood of receiving bids and responses from qualified contractors.
4. Cost-Effective for Low-Value or Specialized Projects: In cases where examining a large
number of bids would be disproportionate to the value or complexity of the project, restricted
tendering can save costs.
5. Assured Quality from Prequalified Suppliers: As suppliers or contractors are prequalified
based on their ability to meet specific technical and quality standards, the procuring entity is
more likely to receive high-quality goods or services.
Disadvantages of Restricted Tendering
1. Limited Competition: By restricting the number of bidders, the procurement process can limit
competition, potentially leading to higher costs or reduced innovation compared to open
tendering.
2. Potential for Favoritism: Since the procuring entity selects who is invited to bid, the process
can be prone to favoritism, reducing fairness and transparency.
3. Possibility of Abuse: The system may be abused by breaking larger procurements into smaller
contracts to fall within the scope of restricted tendering, bypassing open competition rules.
4. Reduced Market Exploration: Restricted tendering may exclude potential new suppliers who
could offer better solutions or prices, limiting market diversity and innovation.
5. Risk of Collusion: A limited number of bidders increases the risk of collusion between
participants, potentially undermining the competitive pricing process and driving up costs for the
procuring entity
 Direct procurement
This is a procurement method where a buyer or a procuring entity identify a single supplier for
the goods, services or works it requires and awards the contract the supplier. The supplier may be
chosen purposefully for strategic consideration (single sourcing), or the supplier may be the sole
supply available in the market (sole sourcing)
Public entities may only use direct procurement method if any of the following circumstances:
1) In a monopolistic market, i.e., if the goods, works or services are available only from a particular
supplier/contractor or in a situation where the dealer has exclusive rights in respect of the goods,
works or services and no reasonable alternative or substitute exist.
2) Urgency- there is an urgent need for the goods, works or services, making it impractical to use
other methods. The urgency may be due to war, natural disaster, and disorder.
3) Compatibility and standardization-this where an entity having procured goods, equipment,
service or technology from a supplier may be forced to use direct procurement method from the
same supplier for additional supplies for compatibility and standardization with already existing
goods, equipment or technology. For instance, getting a spare part from the same dealer.
4) Procurement from a Public Entity: Direct procurement may be used when the goods, works, or
services are provided by another public entity, as long as the prices are fair and comparable to
prevailing market rates.
5) Proprietary Technology or Specialized Skills: When the goods or services involve proprietary
technology, intellectual property, or highly specialized skills that are only available from a single
supplier, direct procurement is suitable to maintain quality and performance.
In addition to the conditions set above, a public entity buyer in using direct procurement method
should ensure that the necessary approvals have been granted and make the resulting contract in
writing and signed by both parties.
Advantages of Direct Procurement
1. Time-Saving: Direct procurement eliminates the need for lengthy tendering or competitive
processes, allowing goods or services to be obtained quickly, especially in urgent situations.
2. Guaranteed Compatibility: When dealing with existing systems or equipment, direct
procurement ensures that additional purchases (e.g., spare parts) are fully compatible and
standardized with what is already in use.
3. Simplicity and Efficiency: The procurement process is simplified, requiring less administrative
effort and paperwork, leading to reduced costs associated with managing a complex bidding
process.
4. Exclusive or Specialized Supply: Direct procurement is ideal when dealing with highly
specialized or exclusive suppliers, ensuring that the procuring entity gets the exact goods or
services needed without worrying about quality variations.
5. Continuity in Service: Direct procurement can ensure continuity in the supply of critical
services, especially where switching suppliers would cause delays or technical issues.
Disadvantages of Direct Procurement
1. Lack of Competition: Since direct procurement bypasses competitive bidding, there is no price
competition, which may result in higher costs for the procuring entity.
2. Risk of Favoritism or Corruption: Without a competitive process, there is a higher risk of
favoritism or corruption, as contracts can be awarded to preferred suppliers without transparency.
3. No Opportunity for Market Innovation: Direct procurement restricts the ability to explore
innovative solutions or alternative suppliers that could offer better or more cost-effective options.
4. Over-Reliance on a Single Supplier: This procurement method can create dependence on one
supplier, which may limit flexibility and negotiation power, especially if the supplier experiences
issues such as production delays.
5. Price Inflation Risk: Without competitive pricing, the supplier may inflate prices, leading to
procurement costs that are not in line with market rates, which can increase the overall project
budget.
Request for proposal
A request for proposal is a procurement procedure used for the solicitation of professional
services, e.g., consultancy services which are intellectual and advisory in nature. It also applies
in cases where the requirements are a combination of goods and services. Request for proposal is
an appropriate procurement method in the circumstances the buying entity, lacks adequate
knowledge about the need fulfillment, lacks adequate expertise in developing an explicit
specification and therefore decides to invite proposals from consultancy firms.
Circumstances for Using a Request for Proposal (RFP)
1. Complex or Specialized Services: When procuring complex or highly specialized professional
services, such as consultancy, engineering, or IT services, where the scope or specifications are
not entirely clear, and the procuring entity requires tailored solutions from experts.
2. Combination of Goods and Services: When the procurement involves both goods and services,
such as purchasing equipment that requires installation, training, or ongoing maintenance, RFP is
used to solicit proposals that cover all aspects of the need.
3. Lack of In-House Expertise: When the buying entity lacks sufficient technical knowledge or
experience to develop detailed specifications or evaluate solutions, an RFP allows potential
bidders to propose various approaches, helping the buyer assess different solutions.
4. Innovative Solutions Required: When the procuring entity is seeking innovative or creative
solutions to meet their needs, and suppliers or consultants are encouraged to propose different
methods, technologies, or strategies.
5. Evaluation Beyond Price: When procurement decisions must be based on criteria beyond just
price (e.g., quality, methodology, experience, or technical capacity), RFP allows for a more
comprehensive evaluation process, considering technical proposals and value for money.
Advantages of Using a Request for Proposal (RFP)
1. Encourages Innovation: RFPs allow suppliers to propose creative or innovative solutions that
the procuring entity may not have considered, leading to better outcomes than predefined
specifications might achieve.
2. Flexibility in Solutions: The open-ended nature of RFPs enables bidders to tailor their proposals
to the buyer’s needs, offering multiple solutions and approaches, which can help the procuring
entity choose the best-fit option.
3. Comprehensive Evaluation: RFPs facilitate a detailed evaluation process that considers not
only cost but also technical quality, methodology, experience, and project timelines, leading to
more balanced and effective decision-making.
4. Better Risk Management: By engaging experts through RFP, the procuring entity can benefit
from their knowledge and risk mitigation strategies, reducing the likelihood of project failures
due to poor planning or execution.
5. Suitable for Complex Projects: RFPs are ideal for complex projects where specifications
cannot be easily defined upfront. The process allows for dialogue and clarification between the
procuring entity and bidders, leading to more effective solutions.
 Request for quotations (RFQs)
In this procurement method, the procuring entity sends out a price bidding document known as
a request for quotation (RFQ) to a specific number of registered /pre-qualified suppliers
seeking an itemized list of prices. This document contains the description of the goods, works
or services and the quantities of goods, works or the service levels required. Request for
quotation methods has the effect of generating different quotes and supplier with the best price
offer wins the bid.
This procurement method is popular with private institutions for its cost-effectiveness as such
requests are sent electronically to suppliers. In public procurement regulation, a public entity
buyer may request for quotation method only on the following CONDITIONS:
1) If the procurement is for goods, works or non-consultancy services that are readily available in
the market.
2) When there is an established market for goods works or services to be procured.
3) When the estimated value of the goods, works or non-consultancy services being procured is less
than or equal to the prescribed maximum value for using requests for quotations as prescribed in
Regulations;
4) Standardized Goods or Services: RFQ is suitable for procurement where the goods or services
are standardized, meaning the requirements are well-defined, and there is little variation between
suppliers (e.g., office supplies or common machinery).
5) Short Procurement Timeframes: When there is a need for quick procurement of goods or
services, RFQ allows the procuring entity to obtain quotes and award contracts promptly.
6) Non-Complex Purchases: For non-consultancy services or simple works that do not require
detailed specifications or technical evaluations, RFQ is a straightforward method to secure
competitive prices.
Contents of a Request for Quotations
 The name and address of the procuring entity;
 The specific requirements prepared relating to the goods, works or services being procured;
 An explanation of where and when quotations shall be submitted;
 Anything else required under this Act or the Regulations to be set out in the request for
quotations
To ensure competition and fairness, a public entity using request for quotation method is
expected to observe the following;
 Send the quotation request to a list registered suppliers for the identified category of requirement,
i.e., the procuring entity must have prequalified such suppliers under that category
 The request should be sent to as many suppliers as necessary to ensure effective competition and
where possible least three suppliers
 At least three quotations should be received before the commencement of evaluation.
Advantages of Request for Quotations (RFQs)
1. Speed and Efficiency
o RFQs facilitate quick procurement since they allow procuring entities to obtain price quotes and make
decisions rapidly, which is particularly beneficial for urgent purchases.
2. Cost-Effective
o By inviting multiple suppliers to submit their prices, RFQs can help the buyer identify the most cost-
effective option, resulting in potential savings.
3. Simplicity
o The RFQ process is straightforward and easy to understand, making it suitable for procurement of
standardized goods or services without complex requirements.
4. Increased Competition
o By soliciting quotes from several pre-qualified suppliers, RFQs foster competition, which can lead to
better pricing and service terms for the buyer.
5. Flexibility in Supplier Selection
o RFQs allow buyers to assess various suppliers based on price and other factors, giving them flexibility in
choosing the most suitable supplier for their needs.
Disadvantages of Request for Quotations (RFQs)
1. Limited Scope for Negotiation
o The RFQ process typically focuses on price and does not allow for extensive negotiation on terms and
conditions, which may limit the buyer's ability to customize the agreement.
2. Potential for Lower Quality
o In the quest for the lowest price, there may be a risk of compromising on quality, as suppliers might cut
costs in ways that affect the overall value of the goods or services provided.
3. Less Comprehensive Evaluation
o RFQs often prioritize price over other important factors such as supplier reputation, experience, and
quality, potentially leading to less informed decision-making.
4. Overreliance on Pre-Qualified Suppliers
o Limiting the RFQ to a specific list of pre-qualified suppliers may exclude potentially better options or
innovative suppliers who are not on the list.
5. Market Conditions Dependence
o The effectiveness of the RFQ process relies on an established market with sufficient competition. In
situations where few suppliers exist, this method may not yield optimal results.
Force account
Force account is a procurement procedure where a public entity implements infrastructural (or
repair and maintenance) works by making use of its internal resources (workforce, materials, and
equipment) instead of contracting the work to a private contractor. Force account may also
involve situations where one government agency engages another public entity at agreed fees
to implement a project or to complete works abandoned by a private contractor during the
implementation phase. This method is named force account because, in accounting, it is an extra
expense resulting from revised works that may not have been budgeted for.
Circumstances under which force account method may be permitted;
1) When a private service provider/ contractor has delayed completing the work or has abandoned
the work midway and all efforts to compel him to complete the work has proved futile
2) Where private contractors are unwilling to bid for works in the remote or insecure locations
where the works are to be done
3) Where urgent work needs to be carried out with less disruption of the day to day operations of
the entity
4) In addition to the circumstances identified above, the force account method must be approved by
the accounting of the government agency intending to apply this procedure and observe the
following;
5) Justify the need to use force account and include the estimated cost in the annual procurement
plan
6) Purchase materials to be used as inputs in the force account activity
7) Must justify that it is uneconomical to outsource the works to a private contractor
8) Prepare a bill of quantities and technical where necessary
9) Ensure that the approval for the use of the method has been granted
Design competition
The Design competition is a procurement method mostly used for the purposes of determining
the best architectural drawings, physical planning, engineering and graphical designs or any
other design scheme. Design competition procedure is most suited for architectural and
engineering works of complex and unique nature. In the design competition method, all bidders
undertake to transfer all copyrights, intellectual property rights and patents relating to the designs
to the procuring entity or the state if the entity happens to be a state agency. Therefore, all the
submitted designs become the property of the procuring entity.
A procuring entity in applying this method invites proposals through a public advertisement as
explained in the request for proposal method. The invitation for design proposal should set
out the following:
1) A statement that the copyrights and other intellectual properties of the designs submitted vest in
the procuring entity or the state.
2) The name and address of the procuring entity
3) The number assigned to the proceedings of the design completion
4) The description of the technical and the functional specification
5) When and where the tender will be submitted
6) When the tender opening will be done.
BENEFITS OF DESIGN CONTESTS

 Achieving higher quality design- Design contests are an established choice that offers the
opportunity of affordable, sustainable and good quality design to meet well considered briefs
whether in the public or private sector.
 Delivering choice- Design contests are adaptable and scalable and are ideal for all types and
sizes of project.
 Delivering building life cycle and social value- Compared with the lifecycle costs of a
building, the benefits of a well-briefed design contest can deliver real value for money
over a project’s entire lifecycle. For public procurers, contests may readily contribute towards
fulfilling many Public Services (Social Value) requirements.
 Talent can access the market- By providing a client with wider access to architects and
other design professionals, contests can make a broad range of design talents visible, and this
contributes to building a stronger, more innovative and competitive construction economy.
Design contests can also provide new and emergent designers.
 Increase community and stakeholder engagement-Design Contests provide one of the
best ways of engaging with the public and wider stakeholders. They can encourage democratic
participation in the built environment by engaging and stimulating public imagination and
dialogue.
Framework contracting
Frame contracts are contracting arrangements where one or suppliers are engaged to supply
goods, services or works for a period of one to three years at agreed prices among other
contractual terms. Framework contracting approach is ideal in cases where it is difficult to
estimate the exact quantities and the delivery schedule of the needed requirements. In such
arrangements, users draw what they need from the supplier whenever a need arises.
 Framework agreements are suitable for goods and services that required regularly or
consumables, e.g., foodstuff, maintenance and repair materials and any other items of routine
nature.
Types of framework agreements

1. known quantity but delivery schedule (definite quantity- indefinite delivery schedule)
This is where a supplier or a set of suppliers are contracted to supply a known quantity of
goods to be delivered as and when required during the framework duration.
2. Indefinite quantity -definite delivery schedule.
Under this type, the supplier/suppliers are under a contract to supply a known quantity of goods
to be delivered from time to time as the need arises.
3. Indefinite delivery framework agreement.
This is when the need for supplies has been established but the exact delivery dates and exact
quantities of future deliveries are unknown. This type of arrangement permits the procuring
entity to keep minimal stock levels.
Circumstances for Using Framework Contracting
1. Uncertain or Variable Demand: When the procuring entity cannot accurately predict the exact
quantities or delivery schedule for goods, services, or works, framework contracts provide
flexibility to draw as needed over a specified period.
2. Recurring Procurement Needs: For goods or services that are required regularly, such as office
supplies, maintenance services, or consumables (e.g., foodstuffs, fuel), framework contracts
ensure continuous supply without the need for repeated tendering.
3. Time-Sensitive Procurement: In cases where there is a need for quick access to supplies or
services, framework agreements allow users to make quick orders without going through lengthy
procurement processes each time.
4. Long-Term Projects: For projects that span several years, where goods or services are required
periodically, a framework contract allows the procuring entity to secure favorable terms over the
project duration without renegotiating each time.
5. Multiple Users or Departments: When different departments within an organization need
similar goods or services, framework contracts enable centralized procurement, reducing
duplication of procurement efforts and ensuring consistency in pricing and quality
Low-Value Procurement
Low-value procurement is used where the items are not procured on a regular or frequent basis
or are not covered under a framework contract.
In the public sector, only the Head of Procurement may procure low-value items unless
delegated in writing by the Accounting officer to the user department. The thresholds are
adhered to when conducting procurement using this method.
Money is drawn from petty cash for the purchase of low-value procurement. The goods are
procured from well-known market suppliers at the prevailing market rate. The tax receipt is
provided and signed by the person undertaking the procurement. The head of procurement
authorizes all low-value procurements.
Electronic reverse auction
This is a procurement method where listed /registered suppliers in a specific category are
invited to compete in an electronic bidding process. The buying entity its requirements on its
website and provides a detailed specification of the need. To ensure that the process is fair to
all participating bidders, the exact bid opening time and closing time must be stated, secure
 software with procurement functionalities and capabilities to electronically evaluate and rank the
submitted bids based on the pre-set evaluation criteria.
The entity intending to use this method must have the following:
1) A website/website portal
2) A functioning procurement portal
3) A secure electronic procurement software
4) Qualified staff to operate the electronic procurement portal
5) Steps involved in the electronic reverse auction procurement procedure
6) the entity advertises its requirements on its website or a dedicated government website
7) The buying entity invites all the pre-qualified in the specific category to compete in the
electronic bidding.
8) The exact time when the bidding starts and ends.
9) Once the bidding process is opened, the bid prices of the participating bidders are visible to
all but not their identities
10) The bidders are not allowed to adjust their prices upwards when the process is on
11) The winning bid is the one with the lowest price at the time the submission closes.
12) The report of the process is automatically generated by the procurement software in the
procurement portal.
13) The report is forward to the head of the supply chain for professional opinion
14) The winning bidder is notified of the award decision in writing
15) Should the winning bidder reject the award, next lowest bidder price gets the offer.
Advantages of Electronic Reverse Auctions in Procurement
1. Cost Savings: Electronic reverse auctions drive down prices by fostering real-time competition
among suppliers, often leading to significant cost reductions for the buying entity.
2. Increased Transparency: The bidding process is open and transparent, as all participants can
see where their bids stand relative to others, reducing the chances of favoritism or collusion.
3. Time Efficiency: Reverse auctions are faster than traditional procurement methods since they
are conducted electronically, allowing for quicker bid submission, evaluation, and award
decisions.
4. Wider Supplier Participation: Suppliers from different geographic locations can participate,
increasing competition and potentially leading to better offers, as the process is conducted online
without location-based limitations.
5. Real-Time Market Information: Buyers gain valuable market insights as they observe live
bidding behavior, understanding the market rate and supplier capabilities in real-time.
Community Participation procurement
Community Participation procurement refers to a procurement method where local
communities are actively involved in the procurement process, especially in projects that directly
benefit them. This method is often used in projects that aim to improve local infrastructure,
social services, or community development.
When using this method of Procurement, the buying organization will:
• Involve the community in the delivery of services.
• Consider economic benefit, value for money, project sustainability, and creation of employment.
The method involves two approaches:
 i. Direct procurement participation: and
ii. Organized community participation.
Conditions for use of Community Participation Method
Where a procuring entity intends to use this method, it will ensure that;
• the project is aligned to the procuring entity’s mandate and strategic plan;
• the project has positive socio-economic outcomes with the community as its main beneficiary;
• the project requires community involvement in part or in whole for its success and its
continued implementation;
• the project is included in the annual procurement plan for that procuring entity;
• the project proposal prepared is in line with its strategic plan and shall include:
a) setting out the key result areas and the specific roles of the target community; and
b) the objectives, estimated budget, and the target community beneficiaries
Specially permitted procurement procedures
These are privileged procurement methods permissible by the procurement regulatory authority
in unique circumstances and where project financing arrangements involve both public and
private institutions. Under such circumstances, public entities may find it difficult to apply
the
regular procurement methods. For instance, the public sector may wish to mobilise resources
from the private sector and form a partnership for purposes of financing infrastructural projects.
Such partnerships may result in complex project procurement arrangement that includes;
Design-build own operate, Build operate transfer and other forms of concessions.
PUBLIC PRIVATE PROCUREMENT METHODS
MEANING OF PPPS IN PUBLIC PROCUREMENT
Public-Private Partnerships (PPPs) in public procurement refer to collaborative arrangements
between government entities and private sector companies for the delivery of public
infrastructure or services. In a PPP, the private sector is involved in financing, designing,
building, operating, and sometimes maintaining a public facility or providing a public service,
while the government oversees and ensures that public interests are protected.
TYPES OF PUBLIC PRIVATE PROCUREMENT METHODS
The main types of Public-Private Partnership (PPP) procurement methods used in public
procurement in Kenya:
1. Build-Operate-Transfer (BOT)
In this model, the private sector is responsible for building an infrastructure project, operating it
for a specified period, and eventually transferring ownership back to the government.
Example: A private firm constructs a toll road, operates it for 20 years while collecting toll fees,
and then hands over the road to the government.
2. Build-Own-Operate (BOO)
The private sector builds, owns, and operates the project indefinitely. Ownership remains with
the private entity, and they take responsibility for the operation and maintenance.
Example: A private company builds and operates a power plant and retains ownership
throughout the plant's life.
3. Design-Build-Finance-Operate (DBFO)
The private entity designs, builds, finances, and operates the project. This method combines
design and construction with financing and operation by the private sector, often with a long-
term concession.
 Example: A private company designs and builds a hospital, finances the project, and operates it
under a long-term contract with the government.
4. Lease-Develop-Operate (LDO)
The government leases an existing public asset to a private entity for development and operation.
The private sector invests in upgrading or developing the facility and operates it for a specified
period.
Example: A private company leases a government-owned port, upgrades its facilities, and
operates it for 30 years before the lease expires.
5. Build-Lease-Transfer (BLT)
The private sector builds the infrastructure, leases it to the government or another entity for a set
period, and then transfers ownership at the end of the lease period.
Example: A private company constructs a school, leases it to the government for 10 years, and
transfers ownership back to the government at the end of the lease.
6. Concession
The private sector is granted the right to operate and maintain public infrastructure or services
for a specified period, during which they are allowed to collect user fees or receive government
payments.
Example: A company is given a concession to operate a public utility like a power grid or public
transportation system for 25 years.
7. Service Contract
The private sector is contracted to provide specific services (e.g., facility management,
maintenance) without taking ownership or responsibility for financing the infrastructure.
Example: A private company is contracted to provide cleaning and maintenance services for
public schools.
Advantages of Public-Private Partnerships (PPPs)
1. Risk Sharing: PPPs allow the government to share project risks (such as construction, financial,
and operational risks) with the private sector.
2. Access to Private Sector Expertise and Innovation: By leveraging private sector expertise,
technology, and management skills, PPPs can result in more efficient and innovative project
delivery, especially in complex infrastructure projects.
3. Improved Service Delivery: PPPs often lead to better quality services and infrastructure due to
the performance-based nature of the contracts, incentivizing the private partner to deliver on time
and within agreed-upon standards.
4. Budgetary Relief: PPPs can help ease the strain on government budgets by using private sector
capital for the initial investments, allowing the government to spread payments over time rather
than funding projects upfront.
5. Accelerated Project Implementation: PPPs can fast-track infrastructure development and
service delivery since private firms often have more flexible and efficient procurement and
management processes compared to government procedures.
Disadvantages of Public-Private Partnerships (PPPs)
1. Complex Contracts: PPP contracts are often complicated, requiring extensive legal and
financial expertise to negotiate. This can lead to higher upfront transaction costs for both the
public and private partners.
2. Long-Term Financial Commitments: PPPs often require the government to make long-term
financial commitments, which can result in future budget constraints, particularly if the project
does not generate anticipated revenues.
3. Risk of Overpricing: The private sector may price in higher returns due to perceived risks,
leading to higher overall costs for the government compared to traditional public procurement
methods.
4. Accountability and Transparency Concerns: PPPs can sometimes lack transparency in
decision-making and contract execution, raising concerns about public oversight, especially in
cases where there is insufficient clarity on the division of roles and responsibilities.
5. Potential for Reduced Public Control: Since the private partner typically manages operations,
the public entity may have less direct control over the project’s execution, quality, and service
delivery, which can be problematic in cases of poor performance or mismanagement.
Circumstances Where PPPs Are Used
1. Large-Scale Infrastructure Projects: PPPs are commonly used for large infrastructure projects
such as highways, railways, airports, and energy plants, where the capital costs are substantial,
and the private sector's expertise is essential for efficient delivery.
2. Budget Constraints: When the government faces budgetary limitations or fiscal constraints,
PPPs allow the private sector to finance the initial investment, enabling the government to
deliver infrastructure projects without immediate outlay.
3. Complex or Technologically Advanced Projects: PPPs are often preferred for complex
projects that require specialized knowledge and technological expertise that the public sector
may lack.
4. Improving Efficiency in Service Delivery: PPPs are used when there is a need for enhanced
operational efficiency and improved service delivery, especially in sectors like healthcare,
education, and public utilities.
Public Sector Capacity Limitations: In cases where the public sector lacks the capacity to
manage large or specialized projects due to limited resources, skills, or experience, PPPs allow
the private sector to take on the responsibility for project execution and management
Stages in Open tender process
1. Procurement plan
2. Prepare specifications
3. Prepare tender documents
4. Advertise and sell tender documents
5. Preparations and submission by tenderers
6. Opening tenders
7. Tender evaluation
8. Contract award
9. Contract preparation
10. Signing of contract
Preparing a procurement plan
Preparing specifications follows preparation and approval of a Procurement Plan or Materials
Requirements Plan (MRP)
A procurement Plan shows the items that will be required by a particular User and therefore the
items that will be procured by the Procurement Entity. The Plan shows what will be procured
and when and to meet which needs
Preparation of specifications
A Specification is simply a definite description of what is needed or wanted for use by the User.
The User must approve specifications
Specifications take the forms of:-
 Brand name (Builds bias in the procurement process)
 Trade Description
 Description of purpose or use by an expert
 Blue print, Engineering drawing or Dimension sheet
 Chemical analysis
 Statement of physical characteristics
 Standard statement drawn by the purchaser or User
Advertise and Sell Tender documents
The advertisement must be placed in a newspaper (not a periodical) of general nationwide
circulation at least twice during the21 days the advertisement will run and the newspaper should
have been under continuous publication for at least two (2)years
Preparation, submission and opening of tender documents
Tenders shall be received and opened in the manner stated in the tender documents. Improperly
filled documents will be rejected
Evaluation of Tender
Preliminary evaluation should lead to the decision of who to evaluate technically
Application form for Adjudication of tender/quotation shall be filled
Technical evaluation will be conducted by the technical evaluation committee on resources,
equipment, legality and other related matters. The members must be technically qualified to
undertake evaluation
Financial evaluation will be conducted by secretariat but only on the bidders who have been
technically qualified
Contract award
The secretary to the tender committee should prepare all the required documentation
The secretary should prepare a price comparison schedule for analysis
The analysis of bids/price schedule should be tabled before the tender committee for adjudication
and award
Awards should be made to the lowest evaluated bidder for standard off-the-shelf items, and to
the best evaluated bidder for specialized items
Decisions should be collective and by consensus.
Signing of contract
After the contract award by the tender committee the Chairman of the Tender Committee shall
ensure that the contract is prepared which shall then be signed by the two parties to the contract.
Performance of contract
After the contract is signed the supplier/ contractor shall be responsible for performing the
contract in accordance with the terms and conditions of the contract and the relevant committee
shall be responsible for the management of the contract.
The contract must be well managed otherwise weak administration or management of
procurement contracts is an invitation to corrupt practices
STANDARD TENDER DOCUMENTS USED IN SOURCING PROCESS FOR GOODS,
WORKS AND SERVICES
1. Invitation to bid or invitation to Tendering
This is a document used for open procurement method and is a preferred method for acquiring
products, some services and construction for public use in which award is made to a responsive
and responsible Bidder or Proponent with the lowest bid, based solely on the response to criteria
set forth in the IFB/ITT and does not include discussions or negotiations with Bidders.
2. Request for proposals
The Request for Proposal is a document used in procurement of goods and services which are
pre-dominantly intellectual (complex goods and services) in nature that allows the Bidder or
Proponent to consider factors or criteria other than price such as Supplier qualifications,
experience, project approach, innovation and creativity or value- added services.
3. Request for quotations
A procuring entity may use a request for quotations for procurement if:
 The procurement is for goods that are readily available and for which there is an
established market and the estimated value of the goods being procured is less than or
equal to the prescribed maximum value for using requests for quotations
Generally in this instance, the Procurement Officer is required to obtain a minimum of two or
three quotes from Suppliers known to be capable of providing the good or service desired and to
ensure at least a minimal element of competition in the process.
4. Request for expression of interest/ Request for information
A Request for Information or Expression of Interest is generally used during the information
gathering and analysis stage of a procurement to collect relevant product information and
availability data or to determine the level of competition with respect to the object of the
procurement request. This sourcing method is used when an entity requires new or additional
information concerning:
 What type of product or service Suppliers offer; or
 The availability of a specific type of product or service in the marketplace.
5. Request for Qualification (RFQ)
An RFQ is similar to a Request for Proposal in that an organization issues a solicitation notice to
known Proponents by invitation and to others that may be interested through an electronic bid
notification service (BC Bid). Rather than making an award, Bidders and Proponents are
prequalified based on the criteria in the solicitation notice and then are placed on a listing for
future opportunities as they arise during a specified period. Internal users or customers of the
organization can then select any of the pre- qualified Suppliers or Service Providers to submit
formal proposals and award a contract without having to go through a further formal competitive
sourcing exercise (publicly advertised).
6. Standard Tender Document for Procurement of Goods
Used for sourcing goods such as equipment, machinery, vehicles, and general supplies.
 Contents:
o Instructions to tenderers
o Bid forms
o Price schedules
o Technical specifications
o Delivery schedules
o Bid evaluation criteria
7. . Standard Tender Document for Procurement of Works
Used for construction projects like roads, buildings, and civil works.
 Contents:
o Instructions to tenderers
o Bid forms
o Bill of Quantities (BOQ)
o Construction plans and drawings
o Delivery schedules
o Bid evaluation criteria
8. Standard Tender Document for Procurement of Non-Consultancy Services
Used for sourcing non-professional services such as cleaning, security, and transportation.
 Contents:
o Service specifications
o Instructions to tenderers
o Bid submission forms
o Price schedules
o Delivery schedules
o Bid evaluation criteria
9. . Framework Contract for Goods, Works, and Services
Used for long-term agreements where the procurement entity expects to purchase goods, works,
or services on an ongoing basis (e.g., office supplies or maintenance services).
 Contents:
o Framework agreement terms
o Instructions to bidders
o Pricing mechanisms
o Specifications or requirements
10. Standard Prequalification Document for Goods, Works, and Services
Used to prequalify suppliers, contractors, and consultants before they can participate in tendering
processes.
 Contents:
o Instructions to applicants
o Eligibility requirements
o Application forms
o Evaluation criteria
11. Standard Tender Document for Disposal of Assets
Used when public entities want to dispose of unserviceable, obsolete, or surplus assets.
 Contents:
o Asset description
o Instructions to bidders
o Bid submission forms
o Price schedules
o Bid evaluation criteria
12. Standard Tender Document for Procurement of ICT Products and Services
Used specifically for sourcing ICT-related goods and services such as software, hardware, and
network solutions.
 Contents:
o Technical specifications
o Instructions to bidders
o Price schedules
o Bid evaluation criteria (technical and financial)
13. Standard Tender Document for Public-Private Partnership (PPP) Projects
Used for PPP projects where public and private entities collaborate, especially on infrastructure
or large-scale projects.
 Contents:
o Terms of Reference (TOR)
o Instructions to bidders
o Bid submission forms
o Financial model templates
o Evaluation criteria
14. Addenda to Standard Tender Documents
Used to modify or clarify issued tender documents when necessary.
 Contents:
o Clarifications or amendments to tender specifications
o Revised submission deadlines (if any)
Importance of Using Standard Tender Documents (STDs) in Kenya:
1. Uniformity: Ensures that all public entities follow a standardized procedure, which makes the
procurement process more efficient.
2. Compliance with Law: STDs ensure adherence to the Public Procurement and Asset Disposal
Act (2015) and other regulations set by the PPRA.
3. Transparency: The use of these documents ensures all suppliers are treated fairly, as the criteria
for evaluation and submission are the same for everyone.
4. Mitigation of Risk: By following prescribed guidelines, public entities can minimize the risk of
fraud, corruption, and mismanagement.
5. Accountability: Since the process is clearly documented, public officials can be held
accountable for their procurement decisions.
6. Efficiency: Standardized processes reduce the time and effort required for both the procurement
entity and the bidders, speeding up the sourcing process
ASSIGNMENT;
Read and make some key points from below rules
GENERAL PROCUREMENT RULES IN PPADA 2015 KENYA
a) Procurement and Asset Disposal Planning
A procurement plan is a budget implementation instrument used to record all the forecasted
requirements (goods, services, and works) of all the departments of an organization. It is an
integral part of the budgeting process as the financial estimates are derived from cost estimates
of individual items in the procurement plan
Procurement planning: This is the process of identifying and documenting the requirements that
are to be purchased by the organization, the acquisition method to use and the source market of
the requirements
Procurement Planning guidelines
 All procurement by state organs and public entities must be in compliance with the legal and
regulatory framework when effecting procurement.
 The accounting officer is obliged to prepare an annual procurement plan that is realistic and in
conformance to a format set out in the regulations prior to the commencement of each financial
year as part of the annual budget preparation process.
 The estimates in the procurement plan must be within the approved budget
 Any public officer who knowingly recommends to the accounting officer excessive procurement
of items beyond a reasonable consumption of the procuring entity commits an offence.
 The asset disposals will be planned by the accounting officer concerned through an annual asset
disposal plan.
 During planning a minimum of thirty percent of the budgetary allocations should be reserved for
enterprises owned by women, youth, persons with disabilities and other disadvantaged groups.
 Accounting officer will not commence any procurement proceeding until satisfied that sufficient
funds to meet the obligations of the resulting contract are reflected in its approved budget
estimates.
b) Procurement Pricing and Requirement of Not to Split Contracts
1. Procuring entity should not structure procurement as two or more procurements for the purpose
of avoiding the use of a procurement procedure prescribed.
2. Standard goods, services and works with known market prices will be procured at the prevailing
market price.
3. The regulator will issue on a quarterly basis a market price index as a reference guide to assist
accounting officers in making informed price decisions.
4. Public officers involved in transactions in which standard goods, services and works are
procured at unreasonably inflated prices will be required to pay the procuring entity for the loss
resulting from their actions.
c) Registration and Pre-qualification
Registration of suppliers is s the process of identifying and obtaining a list of prospective
providers of a specified category of goods, works or services by a procuring entity for a specified
period of time but not exceeding more than two years, and maintaining them for the purpose of
inviting them on a rotational basis for subsequent tendering proceedings such as request for
quotations or restricted tendering, that may arise during the period of listing. On the other side
pre- qualification is the procedure to identify and shortlist tenderers that are qualified, prior to
invitation for tenders.
Eligibility to bid/Qualifications to be awarded contract
A person is eligible to bid for a contract in procurement or an asset being disposed, only if the
person satisfies the following criteria —
a) Must have the legal capacity to enter into a contract for procurement or asset disposal;
b) Must not be insolvent, in receivership, bankrupt, or in the process of being wound up;
c) the person, if a member of a regulated profession, has satisfied all the professional
requirements;
d) the person and his or her sub-contractor should not be debarred from participating in
procurement proceedings.
e) Must have fulfilled tax obligations
f) Should not have been convicted of corrupt or fraudulent practices;
g) Should not be guilty of any serious violation of fair employment laws and practices.
h) Should declare any conflict of interest
i) Should not submit false, inaccurate, or incomplete information about his or her qualifications.
Use of list of another state organ or public entity
A State organ or public entity may seek, in writing, to use another State organ's, public entity's,
or regulated professional body's registration list of all registered persons in the category,
provided that the list is valid and developed through a competitive process.
Registration of suppliers
 It is the responsibility of the head of the procurement function of a procuring entity to maintain
 and update lists of registered suppliers, contractors and consultants in the categories of goods,
works or services according to its procurement needs.
 The registration list should be updated periodically in accordance with laws and regulations.

d) Standard Procurement and Asset Disposal Documents

An accounting officer of a procuring entity is responsible for the preparation of tender
documents in consultation with the user and other relevant departments. A procuring entity must
use standard procurement and asset disposal documents issued by the PPRA in all procurement
and asset disposal proceedings. The tender documents used by a procuring entity should contain
sufficient information to allow fairness, equitability, transparency, cost-effectiveness and
competition among those who may wish to submit their applications.
A fee may be charged for obtaining tender documents as prescribed by regulations and stated in
the tender documents.
The tender documents should set out/contain the following:
a) The specific requirements prepared relating to the goods, works or services being procured
and the time limit for delivery or completion;
b) If work is being procured, relevant drawings and bills of quantities should be disclosed and the
project’s total estimated cost evaluated only on the basis of the criteria disclosed, but a person
shall not be disqualified on the basis that a bidder quoted above or below a certain percentage of
engineer's estimates;
c) The general and specific conditions to which the contract will be subject, including any
requirement that performance security is provided before the contract is entered into.
d) The tender number assigned to the procurement proceedings by the procuring entity;
e) Instructions for the preparation and submission of tenders including—
e) Limitation on Contracts with State and Public Officers
To avoid conflict of interest, a state organ or public entity will not enter into a contract or award
a contract to—
a) a public officer or state officer or a member of a committee or board of that state organ or public
entity; or
b) an officer of that public entity or state organ.
c) the state officer's or public officer's spouse or child;
d) a business associate or agent; or
e) a corporation, private company, partnership or other body in which the officer has a
substantial or controlling interest.
Any state officer or public officer who has an interest in a matter under consideration in a
public procurement or asset disposal should disclose in writing, the nature of that interest and
will not participate in any procurement or asset disposal relating to that interest.
Specific technical requirements in the tender document
The specific requirements will include all the procuring entity's technical requirements with
respect to the goods, works, or services being procured. These requirements include:
a) Conformance to design, specification, functionality and performance
b) Be based on national or international standards whichever is superior
c) Factor in the life of the item
d) Factor in the socio-economic impact of the item
e) Be environment-friendly
f) Factor in the cost disposing of the item
g) Factor in the cost of servicing and maintaining the item.

f) Performance Bond and Tender Security

A performance bond refers to a monetary or financial guarantee to be furnished by the
successful tenderer for the due performance of the contract placed on it. Performance Security is
also known as Security Deposit. Performance security can also be defined as the irrevocable and
unconditional bank guarantee provided by the consultant as a guarantee for the performance of
its obligations in respect of the contract.
Tender security means a guarantee required from tenderers by the procuring entity and provided
to the procuring entity to secure the fulfillment of any obligation in the tender process and
includes such arrangements as bank or insurance guarantees, surety bonds, standby letters of
credit, cheques for which a bank is primarily liable, cash deposits, promissory notes and bills of
exchange tender securing declaration, or other guarantees from institutions
 An accounting officer of a procuring entity may require tender security to be provided with
tenders.
 The tender security should be provided as stated and as an absolute value and the amount should
not be more than two percent of the tender as valued by the procuring entity.
 Tender security can be forfeited if the person submitting the tender withdraws the tender after the
deadline for submitting tenders but before the expiry of the period during which tenders shall
remain valid or refuses to enter into a written contract, or fails to furnish the required
performance security.
 Tender securities shall not be required in procurements reserved for small and micro- enterprises
or enterprises owned by women, youth, persons with disabilities and other disadvantaged groups
participating in a procurement proceeding instead the target group will be required to fill and
sign the Tender Securing Declaration Form.
g) Termination or Cancellation of Procurement and Asset Disposal Proceedings
Reasons/Conditions for termination or cancelation of procurement proceedings:
An accounting officer of a procuring entity, may, at any time, prior to notification of tender
award, terminate or cancel procurement or asset disposal proceedings without entering into a
contract where any of the following applies-
a) the subject procurement has been overtaken by operation of law; or substantial technological
change;
b) inadequate budgetary provision;
c) no tender was received;
d) there is evidence that the prices of the bids are above market prices;
e) material governance issues have been detected;
f) all evaluated tenders are non-responsive;
g) force majeure;
h) civil commotion, hostilities, or an act of war; or
i) upon receiving subsequent evidence of engagement in fraudulent or corrupt practices by the
tenderer.
 h) Form of Communications, Electronic Procurement and Asset Disposal
All communications and inquiries between parties on procurement and asset disposal
proceedings should be in writing.
A procuring entity may use Information and Communication Technologies (ICT) in procurement
and asset disposal proceedings in the following activities:
1. Publication of notices;
2. Submission and opening of tenders;
3. Tender evaluation;
4. Requesting information on the tender or disposal process;
5. Dissemination of laws, regulations and directives;
6. Digital signatures
i) Inappropriate influence on evaluations
After the deadline for the submission of tenders, proposals or quotations —
 A person who submitted a tender should not make any unsolicited communications to the
procuring entity or any person involved in the procurement proceedings that might reasonably be
construed as an attempt to influence the evaluation and comparison of tenders; and
 A person shall not attempt, in any way, to influence that evaluation and comparison
A person who contravenes this provisions commits an offence and shall lead to the tenderer
being disqualified and the public officer facing disciplinary action in addition to any other action
under PPAD Act, 2015.
j) Corrupt ,Conflicts of Interest, Coercive, Obstructive, Collusive, or Fraudulent Practice
 A person to whom PPAD Act, 2015 applies shall not be involved in any corrupt, coercive,
obstructive, collusive or fraudulent practice; or conflicts of interest in any procurement or asset
disposal proceeding.They are as follow;
1. Corrupt practice: This refers to offering, giving, receiving, or soliciting anything of value to
influence the actions of a public official or decision-maker in procurement or asset disposal. A
person charged with a corruption offence will be disqualified from entering into a contract for a
procurement or asset disposal proceeding or if a contract has already been entered into with the
person, the contract shall be voidable.
2. Coercive practice: Using force, threats, or intimidation to influence someone in the procurement
process or to prevent fair competition.
3. Obstructive practice: Deliberately delaying or preventing an investigation, or providing
misleading information, to hide misconduct in procurement.
4. Collusive practice: When multiple parties conspire to deceive or manipulate the procurement
process, typically to fix prices or limit competition. Procurement entity officers or vendors
should not attempt to collude to make any proposed price higher than the prevailing market
price.
5. Fraudulent practice: The use of deception, false information, or dishonest means to gain an
unfair advantage in procurement.
6. Conflicts of Interest; A conflict of interest occurs when an individual's personal or financial
interests are in conflict with their duty to act impartially in a procurement or asset disposal
process.
This can involve:
i. Direct or indirect pecuniary interest (financial interest) in the outcome of the procurement.
ii. Having a personal connection (e.g., family member) that could influence decisions.
iii. If an employee or agent of the procuring entity has a conflict of interest, they must refrain from
participating in the procurement process and disclose the conflict.
o A person has a conflict of interest with respect to a procurement if the person or a “relative” of
the person seeks, or has a direct or indirect pecuniary interest in another person or vendor who
seeks, a contract for the procurement; or owns or has a right in any property or has a direct or
indirect pecuniary interest that results in the private interest of the person conflicting with his
duties with respect to the procurement
o Such a person should not take part in the procurement proceedings and in decision- making
relating to the procurement or contract.
k) Confidentiality
During or after procurement proceedings no procuring entity and no employee or agent of the
procuring entity or member of a board, commission or committee of the procuring entity should
disclose the following—
i. Information relating to a procurement whose disclosure would impede law enforcement or
whose disclosure would not be in the public interest
ii. Information relating to a procurement whose disclosure would prejudice legitimate commercial
interests, intellectual property rights or inhibit fair competition
iii. Information relating to the evaluation, comparison or clarification of tenders, proposals or
quotations
iv. The contents of tenders, proposals or quotations.
 An employee or committee member of the procuring entity will be required to sign a
confidentiality declaration form.
The disclosure of information can only happen if:
i. The disclosure is to an authorized employee or agent of the procuring entity or a member of a
board or committee of the procuring entity involved in the procurement proceedings;
ii. The disclosure is for the purpose of law enforcement
iii. The disclosure is for the purpose of a review under
iv. The disclosure is pursuant to a court order
v. The disclosure is made to the authority or review board under this act.
l) Procurement Records
a) Transparency and accountability are promoted through the appropriate recording of procurement
procedures. The Procuring Entity should maintain an individual file for each procurement
requirement, which should be marked with the relevant procurement reference number.
b) All records for each procurement should be kept for at least six years after the resulting contract
has been completed or, if no contract resulted, after the procurement proceedings were
terminated.
 The records for a procurement should include—
i. A brief description of the goods, works or services being procured;
ii. If a procedure other than open tendering was used, the reasons for doing so;
iii. If, as part of the procurement procedure, anything was advertised in a newspaper or other
publication, a copy of that advertisement as it appeared in that newspaper or publication;
iv. For each tender, proposal or quotation that was submitted
v. The name and address of the person making the submission
 vi. The price, or basis of determining the price, and a summary of the other principal terms and
conditions of the tender, proposal or quotation
vii. A summary of the proceedings of the opening of tenders, evaluation and comparison of the
tenders, proposals or quotations, including the evaluation criteria used as prescribed;
viii. An explanation of the reasons for termination of procurement proceedings that resulted to no
contract.
ix. A copy of every document required under this Act that the procuring entity should prepare.
 The accounting officer may charge anyone a fee to avail the records but the fee should not
exceed the costs of making the records.
 There should be no disclosure whatsoever of the information contained in procurement
records to anybody.
 An accounting officer should maintain a proper filing system with clear links between
procurement and expenditure files that facilitates an audit trail.
 The file should contain all information, documents, and communications related to that
procurement proceeding
m) Procurement Approvals
a) All approvals relating to any procedures in procurement should be in writing, dated properly,
documented and filed.
b) No procurement approval should be made to operate retrospectively to any date earlier than the
date on which it is made except on procurements in response to an urgent need.
c) In approving procurements relating to an urgent need, the accounting officer should be furnished
with adequate evidence to verify the emergency.
d) No procurement approval should be made by a person exercising delegated authority as an
accounting officer or head of the procurement function unless such delegation has been approved
in writing by the accounting officer or the head of the procurement unit.
e) An accounting officer of a procuring entity should maintain specimen signatures of all persons
authorized to make approvals within the procurement process and these signatures shall be
availed to all staff and members where applicable.
f) Responsibility for each approval made in the procurement procedure will rest with the individual
signatories and accounting officer, whether he or she delegated the authority or not.
DEBARMENT OF BIDDERS AND CONTRACTORS
The regulator may debar a bidder or contractor from participating in procurement proceedings on
the ground that the bidder or contractor:
1. Has committed an offence under the Public Procurement and Asset Disposal Act, 2015 or is in
contravention of any of the clauses of the Public Procurement and Asset Disposal Regulations
2020.
2. Has committed an offence relating to procurement under any Act
3. Has breached a contract for a procurement by a public entity
4. Has, in procurement proceedings, given false information about his qualifications or
capabilities
5. Has refused to enter into a written contract.
n) Has breached the code of ethics.