HIGHLIGHTED ISSUES

1. A PRESENTATION TO LOCAL GOVERNMENT BUDGET CONSULTATIVE WORKSHOPS FOR FY 2014/15 Strengthening the Procurement Function at the Local Government Level: Issues and Way ForwardBY PPDAOctober 2013

2. HIGHLIGHTED ISSUES • Issues Raised in the Workshops of 2012/13 • Force Account Method of Procurement. • Procurement Audit & Investigation Findings • New Procurement Plan Format • The Amended PPDA Law • Procurement Performance Measurement System (PPMS) • Tender Portal on PPDA Website

3. ISSUES RAISED IN PREVIOUS WORKSHOPS OF 2012/13

4. ISSUES RAISED IN PREVIOUS WORKSHOPS OF 2012/13 Cont’d

5. ISSUES RAISED IN PREVIOUS WORKSHOPS OF 2012/13 Cont’d

6. Force Account Method of Procurement. • PPPDA issued circular No. 3 of 2012, to all LG Accounting Officers to provide additional guidance on the use of Force Account mechanism. • This is to ease the use of road equipments that government has distributed to LGs to maintain roads in the districts (See Appendix A in the detailed paper).

7. Findings from Procurement Audit & Investigations • Procurement Fraud (Technical, Syndicate & intended crisis) • Conducting procurements outside the plan • Poor record keeping • Use of wrong methods of procurement • Forgery of documentation by the bidders • Not adhering to evaluation criteria in the Solicitation Document

8. Findings from Procurement Audit & Investigations Cont’d • Not extending bid validity which has led to the Authority directing the Entities to re-tender • Use of inappropriate evaluation methodologies • Awarding bids by the CC at Engineer's estimates leading to financial loss or shoddy work. • Poor contract management leading to shoddy work, incomplete works, and abandonment of sites or payment with no evidence of deliverables.

9. New Procurement Plan Format The new format provides details on: • the planed vs actual quantities, • basic data, • pre-qualification, • invitation for bids and evaluation; • contract finalization. This will enable PDEs track the progress of each procurement and ascertain where the delays are. (See Appendix B in the detailed paper)

10. The Amended PPDA Law A circular will soon be issued to brief LGs on the salient highlights of the amendments that equally apply to the LGs PDEs. Some key issues from amendments include: • Disposal of land under the District Land Board is not governed by the procedure for disposal under PPDA Act, 2003

11. The Amended PPDA Law Cont’d • A PDE will not enter into contract with: - A member of the CC, EC, employee of a PDE or member of the Board of Survey; and • A person appointed to politically or administratively control a PDE. • Suspension of Providers by the Authority on its own initiative

12. Procurement Performance Measurement System (PPMS) • PPDA rolled out PPMS to 105 Local and Central government PDEs by end of FY 2011/12 (29 of which are LGs see detailed paper). • PPMS will be used to assess the performance of LGs PDEs by the Authority • Also help in assessing the best performing LGs for award and recognition by PPDA at the end of each FY.

13. Tender Portal on PPDA Website • The tender portal on the PPDA website enables PDEs to post information relating to; tender opportunities, Best Evaluated Bidders, awarded contracts etc • LGs are highly encouraged to post their procurement and disposal opportunities on the tender portal since it’s a free of charge advertising media and for transparency purposes.

14. Thank You