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Procuring As One in Tanzania: Creating UN Efficiency & Effectiveness - September 2010

Procuring As One in Tanzania: Creating UN Efficiency & Effectiveness - September 2010. Objectives of Procurement Reform.

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Procuring As One in Tanzania: Creating UN Efficiency & Effectiveness - September 2010

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  1. Procuring As One in Tanzania: Creating UN Efficiency & Effectiveness - September 2010

  2. Objectives of Procurement Reform Optimising procurement efficiencies and effectiveness through reducing process duplications; re organising agency procurement teams, and providing support to quality delivery of UN programmes,

  3. Reform Process July 2008: KPMG Procurement Report Recommendations: • Establish One UN Procurement Team, • Develop LTAs, • Establish One UN Contract Review Committee, • Develop Procurement Plans to support UN programmes, • Capacity building for implementing agencies.

  4. Reform Process • Procurement Team • Oct 2008: CMT approved Terms of Reference for Tanzania One Procurement Team (TOPT), • TOPT comprised of 4 agencies – UNDP, UNICEF,WFP and UNCHR, • TOPT meet 1 day a week to work on procurement, • 2010 TOPT membership increased to 8 agencies ( WHO, ILO, UNESCO and FAO).

  5. Reform Process • Business Process Mapping • KPMG estimates that 2007 time-cost of procuring stationery is USD183.70 per transaction. The number of stationery transactions identified from spend analysis was 1457. • The total price-cost of the 1457 transactions was $308,090 while the total time-cost of the 1457 transactions is $267,651. •  So the estimated total-cost of obtaining this stationary was in effect $575,741. The proportion of current time-cost to total-cost is 46.5%.

  6. Reform Process - Continue • Business Process Mapping: • If LTAs are used then KPMG estimates that each stationery transaction will take 297 minutes. 540 minutes – 243 minutes of estimated time savings if bidding steps excluded).The time decreases by 45%. • This time-cost savings is valued at USD108 per transaction. For all stationery transactions (1457) the time-cost savings is $155,196 (therefore the actual time-cost would be $112,455).

  7. Reform Process Business Process Mapping  • Assumption: Therefore, the UN wishes to increase the use of LTAs. Achieving this will result in less time (<45%) being used to procure goods which would result in a 19.5% savings in the time-cost of procurement.

  8. Results • Procurement Team: • 8 member TOPT, with clear TOR, and administrative support established and delivering results, • Each TOPT member lead on one results outcome and accountable, • 2 day strategic procurement course completed.

  9. Results • Long term Agreements: • 27 LTAs established and in use, • Quarterly supplier meetings to monitor progress, • In the process of calculating actual savings on key LTAs, • Support to UN Programmes: • Annual procurement planning Tool/framework, developed – to be used in 2011 planning, • TOR developed for reviewing and building Government Procurement systems.

  10. On-going actions • Formation of one CRB for CMT Tanzania, • Allocating procurement specialist to UN projects/programme at the planning stage.

  11. Lessons • Identify and implement incentives for TOPT members, • Ensure effective communication of LTAs and encourage wide usage, • Ensure there is administrative support for TOPT.

  12. END

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