EUROPEAID/127054/C/SER/multi Lot 11 - GPPA · framework; (2) improve the procurement management capacity; and (3) improve the GPPA Information systems for procurement in line with

Projet financé par l’ Union Européenne

EUROPEAID/127054/C/SER/multi Lot 11

Project objectives

• Global objective - Is to support the implementation of Public Financial Management (PFM) reforms in the area of procurement in The Gambia.

• Specific objectives - Are to: (1) support the implementation of the reform of the regulatory framework; (2) improve the procurement management capacity; and (3) improve the GPPA Information systems for procurement in line with the Integrated Financial Management Information Systems (IFMIS).

Support to the Procurement Reform in Gambia

13 November 2014 2

Objectives of the workshop

• Public procurement and public finance management

• Public Procurement legislative framework – The Essential Elements of the PPA (2014) and the Procurement Regulations (2003)

• Procurement Cycle including risks, bottle necks and success factors/ benchmarks

• Roles/responsibilities in the procurement processes

• Key procurement information needs


13 November 2014 3

Key Timings


13 November 2014 4

Timings Activity

9.00am to 9.15am Workshop Administration

9.15am to 9.30am Workshop Introduction and Opening Address

9.30am to 10.00am Public procurement and public finance management

10.00am to 10.30am Morning Tea

10.30am to 11.30pm Public Procurement legislative framework

11.30pm to 12.30pm Procurement Cycle

12.30pm to 13.00pm Roles/responsibilities in the procurement processes

13.00pm to 14.00pm Lunch

14.00pm to 15.30pm Key procurement information needs

15.30pm to 16.00pm Afternoon Tea

16.00pm to 16.30pm Key procurement information needs (Cont)

16.30pm to 17.00pm Workshop Summary

Workshop Introduction and Opening Address

• Workshop provides an opportunity for the MoFEA Treasury IFMIS Team to become familar with The Gambia public procurement system – To facilitate the potential development and implementation of a

Procurement Module of IFMIS that aligns with The Gambia public procurement system

– To facilitate the development of a working relationship between the IFMIS Team and GPPA

– To build the capacity of stakeholders of The Gambia public procurement system

• The Workshop will be delivered by GPPA specialist procurement officers supported by EU funded Short Term Technical Assistance Consultants


13 November 2014 5

Workshop Introduction and Opening Address

• Workshop Rules

– Facilities

– Breaks

– Timings

– Cell Phones

– Participation

– Questions


13 November 2014 6

Public procurement and public finance management

• Public Finance Management and Procurement – Wide agreement that effective institutions and systems of public

financial management (PFM) have a critical role to play in supporting implementation of policies of national development and poverty reduction.

– Significant public spending takes place through the public procurement system and a well-functioning procurement system ensures that money is used effectively for achieving efficiency in acquiring inputs for, and value for money in, delivery of programs and services by the government.

– While the procurement system operates within its own framework, it benefits from the overall control environment that exists in the PFM system, including public access to information, internal controls operated by implementing agencies, and external audit.


13 November 2014 7


• PFM and Procurement (Cont) – The procurement system also contributes too many aspects of the

PFM system, providing information that enables realistic budget formulation, providing access to information to stakeholders that contributes to public awareness and transparency, and supporting efficiency and accountability in delivery of government programs.

– Public procurement is at the interface of the public and private sectors, which requires close cooperation between the two parties to achieve value for money. It also requires the sound stewardship of public funds to reduce the risk of corrupt practices. Public procurement is also increasingly considered a core element of accountability to the public on the way public funds are managed.

– PFM and public procurement are intertwined and cannot be seen as being separate functions.


13 November 2014 8


• The Gambia public procurement system consists of 5 elements all of which must be in place and working if such a system is to operate effectively and efficiently – – Procurement documents including legislation, regulations, standard

bidding documents, etc

– Procurement structure including regulatory authority, contracting committee(s) (tender boards), procuring units, etc

– Procurement cadre including procurement professionals and para professionals, capacity building and training

– Procurement oversight including audit

– Procurement data and information including the value and quantum of procurement, procurement records, contractor registration, contractor performance, etc


13 November 2014 9


• Key Procurement documents – Public Finance Bill (2014)

– PPA (2014)

– Procurement Regulations (2003)

– GPPA Standard Bidding Documents

– GPPA Forms

– International Development Partner Rules and Procedures


13 November 2014 10


• Procurement structure – GPPA, including GPPI and Training Organisations; and the PMO for the

Procurement Cadre

– 198 Procuring organisations including their Accounting Officers, Contract Committees, Specialist Procurement Units, Finance and Accounts

– MoFEA including Budget, Treasury, Internal Audit, IFMIS

– Contractors/Suppliers including their Representative Organisations i.e. The Gambia Chamber of Commerce and Industry

– Oversight and monitoring organisations

– International Development Partners

– Other Stakeholders, including Media, Civil Society

– ‘National’ Tender Board (PPA (2014), Part VIII, Section 52 refers)


13 November 2014 11


• Procurement cadre – Professionals and Sub-Professionals working in the Procurement

function of the Government of The Gambia

– GPPA officials

– Procuring Organisations officials, including Government Ministries, State Owned Enterprises and Other Organisations

– GPPI and the training of all members of the Procurement Cadre including ‘High’ level officials; procurement officers; officers involved in procurement; oversight, audit and monitoring officials, suppliers/contractors, media, donors, etc


13 November 2014 12


• Procurement oversight – National Assembly including its PAC/PEC

– Auditor General and the NAO

– GPPA, through its conduct of Compliance Reviews

– MoFEA Internal Audit Department

– Media

– Civil Society including various Industry Representative Organisations

– International Development Partners


13 November 2014 13


• Procurement data and information – Procurement information system

– IFMIS


13 November 2014 14

Questions


13 November 2014 15

What do you need to know?

• Components of The Gambia public procurement system

• Key procurement documents

• Procurement structure and the organisations involved in procurement

• Start building an understanding of what data/information might need to be included in a ‘procurement information system or a ‘Procurement Module in IFMS’


13 November 2014 16

Morning Tea


13 November 2014 17

Public Procurement legislative framework


13 November 2014 18


• Public Procurement Act (2014)

• Procurement Regulations (2003)

• GPPA Standard Bidding Documents

• GPPA Forms


13 November 2014 19


• The Public Procurement Act (PPA) adopted by the National Assembly in 2001 and Accented to by the President in 2002, came into force in 2003.

• Revised PPA (2014) assented to in October 2014.


13 November 2014 20


• Objectives of the PPA (2014) –

– Transparent, efficient & economic procurement

– Accountability in public procurement

– A fair opportunity to all prospective suppliers of goods, works & services

– The prevention of fraud, corruption & other forms of malpractices in public procurement

– Improvement of social & economic capacity of SMEs


13 November 2014 21


• Scope of application of the PPA (2014) –

– Section 20 (1) of the Act – the Act applies to all public procurements except for: • Procurements related to national defense or national security

• Where a provision in the Act conflicts with the procurement rules of a donor or funding agency

• Presidential Directive.


13 November 2014 22


• Public Funds – Any monetary resources appropriated to procuring

organizations through budgetary process – Aid, Grants and Credit made available to procuring

organizations by local and foreign donors – Revenues of procuring organizations, including the

consolidated Revenue Fund, the Development Fund and general funds of Local Government Authorities.


13 November 2014 23


• International Donor Rules Vs PPA (2014)

– Section 20 (4) of the Act provides that where a provision of this Act Conflicts with the procurement rules of a donor or funding agency, the application of which is mandatory pursuant to an obligation entered into by the government, the requirements of donor rules shall prevail, but in all other respect, the procurement shall be govern by this Act.


13 November 2014 24


• Functions of GPPA

– Responsible for the regulation and monitoring of public procurement in the Gambia

– Monitor performance of procuring organizations to ascertain efficiency and compliance with applicable legislation, regulations and instructions

– Provide annually to the Minister of Finance a quantitative and qualitative assessment of procurement activities in the Gambia

– Representative(s) of the Authority are entitled to attend any meetings of Contracts Committee as non-voting observer(s)


13 November 2014 25


• Functions of GPPA (Cont)

– No procuring organization shall engage in any procurement of D1million and above without obtaining its approval at every stage of proceedings i.e: Tendering, Request for proposals, Awards, Direct procurement

– GPPA can annul in part or in whole any unauthorized act or decision of a procuring organization

– Reverse or substitute such a decision

– Provide administrative review of bid protests


13 November 2014 26


• Functions of GPPA (Cont)

– Refer to the Auditor General any violations and submit a report to the Minister

– GPPA shall not interfere in the award of any specific procurement contract, except where a complaint is not dismissed

– GPPA reports directly to, and operates under the General Supervision of Cabinet


13 November 2014 27


• Methods of Procurement and Thresholds

– Single-source - • Goods & Services D10,000

• Works D30,000

– Request For Quotations - D500,000

– Restricted / Open Tenders - above D500,000

– Request For Proposals -

– International Tendering:- 10million & above


13 November 2014 28


• Establishment of Contracts Committees and Composition

– A contracts committee shall be established by all procuring organizations supported by a specialized procurement unit

– A contracts committee shall consist of at least three members, and shall include the chairperson (CEO or his representative), a budget professional as well as a technical person familiar with the substance of the procurement, ad hoc members to complement the CC’s expertise and a Secretary


13 November 2014 29


• Functions of Contracts Committees

– Verification of procurement method and availability of funds

– Approval of invitation to bid and bidding documents-criteria not set forth in the later cannot be used in the evaluation

– Conducting the opening of bids and their evaluation

– A quorum requires attendance by 3 members and majority decision stands

– Establishment of a specialized Procurement Unit in all Procuring Organizations (Section 50 of the Act)


13 November 2014 30


• Functions of Contracts Committees (Cont)

– The Secretary to the Contracts Committees shall take minutes of meetings of the contracts committee and maintain a file on all matters considered by the Contracts Committee

– A contracts Committee may delegate, to a specialized procurement unit, authority to make contract award decisions - Caveat: they are accountable for all the procurements conducted by the SPU


13 November 2014 31


• Specialised Procurement Unit

– The Minister concerned or the head of the procurement organisation shall establish specialised procurement units

– The head of SPU shall have the Authority to conduct procurement activities in accordance with the Act and the Regulations

– The SPU shall be responsible for the preparation of the bidding document

– Staff: well trained personnel in public procurement and whose professional qualifications meet the requirement that may be established in accordance with guidelines to be issued by GPPA


13 November 2014 32


• Procurement Planning

– Each Procuring organizations must prepare an annual procurement plan by 15th of January each year

– Rationale for planning is to achieve maximum value for money

– The plan which shall be provided to the GPPA, should describe the extent, timing and purposes of the projected requirements

– Identification of appropriate procurement method for procurement packages e.g. RFQ, Framework contract


13 November 2014 33


• De-Aggregation and Splitting of Procurement

– A procuring organization shall not divide its procurement artificially to avoid the monetary thresholds set in the Act and Regulations

– Note: when apportioning or splitting an acquisition is technically or financially feasible, the acquisition may be divided into lots


13 November 2014 34


• Bid Security

– Bid security shall be required for procurement valued D1Million and above

– The amount shall be set in the bidding document at between 2% to 3% of the estimated value of the procurement

– A bid security shall remain valid for a period of 4 weeks beyond the expiry date of validity period of bids

– A receipt of bid security shall be recorded in the GPPA Form 015


13 November 2014 35


• Deadline for Submission of Tenders

– The deadline for submission of tenders shall be no less than 30 days – • from the date of publication of invitation to tender for

procurement valued between D500,000 and D1million

• from the dispatch of the invitation to tender, in the case of restricted tender.

– Bids shall be valid for a period of 90 days


13 November 2014 36


• Tender Opening

– Tenders shall be opened in a session open to the public, including the bidders and their representatives

– The time of tender opening shall coincide with deadline for submission

– The name and address of each bidder and the amount bided shall be announce

– Tender prices may be communicated on request to bidders that have submitted but not represented at the bid opening


13 November 2014 37


• Qualification of Buyers

– In order to qualify for the award of a procurement contract, a bidder shall demonstrate to the satisfaction of the procuring organisation that – • The supplier possesses the necessary professional and technical

qualifications and competence, financial resources, equipment and other physical facilities, and managerial capability, experience in the procurement object reputation and personnel to perform the contract

• It has the legal capacity to perform the contract

• It is not insolvent , in receivership, bankrupt or being wound up, its business activities have not been suspended, and it is not the subject of legal proceedings for any of the foregoing


13 November 2014 38


• Qualification of Buyers (Cont) • It has fulfil its obligations to pay taxes and social security

contributions if it applies

• It or any of its Directors or officers, have not been convicted of any criminal offence relating to professional conduct or the making of false statements or misrepresentations as to its qualifications to enter into a procurement contract within a period of three years preceding the commencement of procurement proceedings, and that it is not subject to debarment


13 November 2014 39


• Application of Evaluation Criteria

– A procuring organisation shall evaluate and compare the bids in accordance with the procedures and criteria set forth in the bidding document

– No criterion shall be used that has not been set forth in the bidding document

– A record of the evaluation of each bid and the comparison between them shall be maintained by a procuring organisation by using GPPA Form 017 Record of Evaluation of each Tender, and GPPA Form 018 Summary Report of Evaluation and Comparison of Tenders


13 November 2014 40


• Application of Evaluation Criteria (Cont)

– The successful bidder shall be the bid with the most responsive bid price & technical specification, subject to any margin of preference applied pursuant to Sub-Regulation 5(d)

– In determining the most responsive evaluated bid, a procuring organisation may consider the following – • the bid price

• live cycle cost

• the effect of a bid on the environment

• margin of preference


13 November 2014 41


• Rejection of Bids

– The procuring organisation shall not accept a bid –

• If the bidder that submitted the bid is not qualified

• if the bidder have already submitted another bid for the procurement in question

• if the bidder does not accept a correction of an arithmetical errors

• if bid security is not provided, if required


13 November 2014 42


• Cancellation of Procurement

– A procuring organisation may cancel a procurement proceedings after bid opening only in the following cases

• The object of procurement is no longer required

• It has become necessary to modify the specifications

• Defects or gaps in the specifications have been revealed

• Failure to include all items of cost to a procuring organisation

• There is evidence of collusion among bidders in setting up prices

• Where the bid prices exceed substantially the estimated value


13 November 2014 43


• Debarment of Suppliers

– GPPA shall exclude a supplier or bidder from participating in public procurement for a minimum period of one year and a maximum of five years, after-

• giving ten working days notice to the supplier or bidder involved, of the cause of the proposed action;

• giving the potential supplier or bidder five working days to respond to the proposed action; and

• consultation with CRB and affected procuring organisation to consider all the facts of the case.


13 November 2014 44


• Accountability

– Right to Review: a bidder can seek review for just cause –

Article 53 (1) of the Act

– Public Accountability: requires that all procurements are

conducted in a manner they are able to withstand scrutiny in the

event of a query or investigation

– Misfeasance: it amounts to a misconduct if a public officer acts

above his/her authority, or fails to act within his/her authority and

the action or inaction results in injury to a party


13 November 2014 45

Questions


13 November 2014 46


• The Gambia public procurement system is well founded on key documents including - PPA (2014), Procurement Regulations (2003), GPPA Standard Bidding Documents and GPPA Forms


13 November 2014 47

Procurement Cycle


13 November 2014 48

Procurement Cycle

Pre-tendering

• Needs assessment

• Planning and budgeting

• Definition of requirements

• Choice of procedures

• Invitation to tender

• Evaluation • Award

• Contract management

• Order fulfilment and payment

Post-Award Tendering


13 November 2014 49

Procurement Cycle

• Pre-tendering

• Needs assessment – inventory & asset management

• Planning and budgeting – supply market assessment, costing, procurement plan, budget development, budget launch

• Definition of requirements – specifications, evaluation criteria

• Choice of procedures – what procurement procedure will be used i.e. Open tender (The Gambia’s preferred method), RFQ, Restricted tender including Single Source, RFP for consulting services

• There is a decision at the end of each step

• Each decision can/should be recorded


13 November 2014 50

Procurement Cycle

• Tendering

• Invitation to tender – development of procurement document, supplier registration, advertisement, pre-qualification, pre-bid meeting/site visit, tender submission, tender closing, tender opening

• Evaluation – evaluation, team, evaluation and recommendation for award

• Award – adjudication, notification of award, signing of contract




13 November 2014 51

Procurement Cycle

• Post-Award

• Contract management – contract execution, contract administration, contract and contractor performance

• Order fulfilment and payment – delivery, inspection, inventory & asset recording, issue & use, invoice checking & authorisation for payment, payment, reporting, disposal




13 November 2014 52

Questions


13 November 2014 53


• The three phases of procurement and each stage

• The linkage of procurement with inventory & asset management at the start and end of the procurement cycle

• The linkage of procurement with the budget cycle at the start of the procurement cycle and with accounts at the end




13 November 2014 54

Roles/responsibilities in the procurement processes


13 November 2014 55


• A Contracts Committee shall be established in every of Contracts procuring organisation in The Gambia supported by specialised procurement units to be established in the organisation

• A procuring organisation is responsible, and accounting officers and other officials concerned are accountable, for public procurement in accordance with the Act and any Regulations issued by GPPA, and other applicable laws, regulations, and Financial Instructions applicable in The Gambia


13 November 2014 56


• The head of the accounting unit, or the head of the procuring organisation, where there is no designated accounting officer or, his or her representative shall chair the Contracts Committee

• The accounting officer, or the head of a procuring organisation where there is no designated accounting officer, shall appoint a staff member of the organisation to act as secretary to the Contracts Committee

• The Secretary of State, concerned or the head of a specialised procurement organisation shall establish a specialized procurement unit and assign, to the heads of those units, authority to conduct procurement activities in accordance with the Act and the Regulations


13 November 2014 57


• A Permanent Secretary or Head of procuring organisation shall be:-

– Personally responsible for any lapses in the general supervision & control of stores

– financially liable for any financially lose incurred through his or her failure to meet those responsibilities


13 November 2014 58


• A public officer involved in requisitioning, planning, public officials preparing and conducting procurement proceedings and bidders administering the implementation of procurement contracts, shall –

– discharge his or her duties impartially

– always act in the public interest, and in accordance with the objectives and procedures

– at all times avoid conflicts of interest and the appearance of impropriety

– not commit or abet corrupt or fraudulent practices, including the solicitation or acceptance of improper inducements

– keep confidential the information that comes into his or her possession relating to procurement proceedings


13 November 2014 59


• A procurement officer and member of a Contracts Committee shall on assuming his or her duties subscribe the oath of office with specific reference to the obligation to –

– adhere to rules of conduct set out in the Act, the Regulations, instructions and other applicable procedures

– faithfully execute the duties and tasks properly assigned to him or her


13 November 2014 60

Questions


13 November 2014 61


• All procuring organisations must have a contracts committee and a procuring unit

• Accounting officers have specific responsibilities

• Procurement officers have specific responsibilities

• Procuring organisations need access to procurement data/information


13 November 2014 62

Questions


13 November 2014 63

Workshop Summary


13 November 2014 64

Lunch


13 Nobember 2014 65


13 November 2014 66

Thank you for your attention