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UZOCHUKWU AMAKOM
DEPARTMENT OF ECONOMICS NNAMDI AZIKIWE UNIVERSITY, AWKA NIGERIA
Introduction
The purpose of this is two fold. The role of the Procurement Planning Committee in an MDA's procurement process. This includes a discussion on conduct, ethics and good business practices during and after the procurement process. The second is to describe the preliminary considerations and activities that ensure the success of any procurement effort.
What is Procurement?
Procurement is the acquisition of goods, civil works or services at the best possible total cost of ownership, in the right quantity and quality at the right time, in the right place for the direct benefit or use of Government, Corporation or individuals, generally via a contract.
What is a project?
A planned undertaking of related activities to reach
undertaken by people to meet established goals within defined constraints of time, resources, and quality.
create a unique product or service. Temporary means that the project has an end date.
http://en.wikipedia.org/wiki/Project
Characteristics of projects
Focused activity delivering predetermined output Closely bounded and scoped deliverables that can be
relatively well defined Realises benefits following end of the project, after implementation of the projects outputs
Characteristics of projects 2
(e.g.24 months). Tangible Deliverables a building, an IT system, a new process Emphasis on production of the deliverable rather than realisation of the benefits
PROJECT CHARACTERISTICS
Unique
UNIQUENESS
DURATION
NUMEROUS CONSTRIANTS
Quality Delays
Costs
as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns -- the ones we don't know we don't know. Donald Rumsfeld
Procurement Planning
Planning is listing in details all the requirements to complete the project, given the triple constraints of time, cost and quality The initial step in procurement planning is the determination of what is needed, how much, where and when.
Procurement Planning 2
Specifications (what you are procuring) Tender process (how you are procuring) Selection (who you are procuring from)
to the contract) Award (providing best value for money often not the cheapest bidder)
ADVANTAGES OF PLANNING
No one plans to fail, just fail to plan
Smarter delivery
CLEARLY DEFINE THE PROJECT SCOPE, AND ENSURE ALL STAKE HOLDERS ACCEPT THE DEFINITION
Establish the project objective & choose a basic strategy for achieving the objective Determine what goods, works and services are to be procured Break the project down into sub units or steps Determine the performance standards for each sub unit - Determine agency capacity to implement procurement- institutional, staffing, competence, training (Make or Buy) Decide how much time is required to complete each sub unit.
units and aggregate this information into a timetable for the total project. Choose the type of contract for each package Choose procurement method OCB, TST, RB, RfQ, DP, etc Determine lead time for each contract package Schedule the procurement process Develop a critical path/bar chart
major project deliverables into smaller, more manageable components (tasks) WBS : The basis of answering the following questions:
How long will each task take? Who will do each task? What materials, supplies and equipment are required? How much will each task cost.
WBS
It provides a graphic representation of the scope of
the job, and this makes it easy to have a full grasp of all the work elements that will have to be completed, to successfully complete the project. Because all the tasks and subtasks are graphically displayed, it becomes easy to identify material, capital equipment, etc, associated with each activity. Thus the WBS helps us to make a Make or Buy choice.
house, as contrasted against those that will be sent to other companies for performance. The WBS is the tool that aids in this decision making process. As soon as the items and works to be bought are determined, the sellers of such items must be identified, and the time required to procure the items must be accommodated in the project master schedule.
Level 2
Level 3
Example
Procurement Planning for a Computerization project
The main objective: Process Computerization Objectives to be achieved in order to achieve the main objective: Manual Operation, Prepare process Manuals, Reporting.
Take each of the above sub-objectives, and determine the tasks that will be carried out to achieve it. Example: Manual Operation: Accounting, Auditing, Stores Stock Keeping, Salary Administration. Each of the sub objectives may be further broken down into sub-sub tasks (packages), until an adequate level of detail is reached.
PROJECT PLANNING
4. Activity Sequencing 2. Activity Definition 1. Scope and Definition 3. Resource Planning 7. Cost Estimating
Procurement Plan
A Procurement Plan is a project management strategy that provides a framework for major procurement.
Submit bids
Evaluate bids Check post qualifi Notify award Receive p.g Sign contract
Inland transport
shipment
assembly
Installation commissioning Testing acceptance warranty
Execution mobilise
Prepare bid docs Issue BD Hold pre bid meeting Submit bids Evaluate bids Check post qualification Notify award Sign contract
Prepare TOR
Prepare cost estimate Prepare short list Prepare RFP Receipt of proposals Evaluate technical proposals
Evaluate price proposals
Mobilize staff
Perform contract Submit interim reports Submit final report
must be given to appointing a Committee with responsibility for overseeing the procurement planning phase.
Consideration
Procurement Planning
Procurement planning is a process where MDAs review current/existing procurement processes, identify future needs and direction for procurement management.
The Delta State Government Public Procurement Law establishes a comprehensive procurement framework, which assists MDAs in the efficient delivery of services and ensures procurement strategies are consistent with the Government's wider policy objectives.
The attainment of transparency, cost effectiveness, competitiveness and professionalism; Ensuring probity, accountability, fair and value-for-money standards and practices for the procurement and disposal of public assets and services.
activities are either directly or indirectly spending public funds and subject to public scrutiny and as such are reminded to: a. Act responsibly. b. Conduct procurement process honestly. c. Avoid wasteful and impractical procurement practices.
d. Avoid real or perceived conflicts when conducting procurement process on the MDA's behalf. e. Advise stakeholders of acceptable business practices, conflicts of interest and respected standards of ethical and moral behaviour during any procurement activities involving their participation.
f.
Seek to maintain and continuously improve their professional knowledge, skills and abilities.
that only the needed is procured] Market Survey Planning reduces costs Planning reduces wastages
that the right procurement method or mix of methods is chosen to implement procurement. Procurement planning ensures that budgetary allocations are made for projects
to execute public project and provide services. Selection of the best qualified in technical and professional terms to provide services and works.
Conclusion
The Public Procurement Law provides the legal and
institutional framework for the enthronement of Transparency, Accountability, Value for Money and Efficiency in the procurement of works, goods and services within the State Ministries and ExtraMinisterial Depts. With this, the Objectives of the State Government shall be delivered for DIRECT BENEFITS OF DELTANS AND NIGERIANS!
Thank You!