What is Procurement?
Procurement is defined as the acquisition of goods and/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.
• The Public Procurement Act, 2007 in the following Sections cited below gives the basis or the need for Advertisement in implementing Public Procurement:
• Section 24 (1): Except as provided by this Act, all procurement of goods and works by all procuring entities shall be conducted by Open Competitive Bidding.
• Section 24 (2): Any reference to open competitive bidding in this Act means the process by which a procuring entity based on previously defined criteria, effects public procurement by offering to every interested bidder equal simultaneous information and opportunity to offer the goods and works needed.
• Section 44: Where a procuring entity wishes to procure services for its needs which are precise and ascertainable:-
(a) It shall solicit for Expressions of Interest or Applications to Pre-Qualify to provide the services by publishing a notice to that effect in at least 2 national newspapers and the procurement journal.
Regulatory Functions to achieve the following Four (4) CORE Objectives:
Competition Providing level playing ground for all strata of bidders
Value for Money
Economy & Efficiency
Nine Essential Steps in Procurement:
i. Efficient Procurement Plan Driven by Needs Assessment ii. Appropriation iii. Advertisement
iv. Transparent prequalification v. Bid Submission vi. Bid opening vii. Bid Evaluation – Technical & Financial viii. Tender Board/FEC Approval ix. Contract Execution
Procurement Planning – What it entails!
Preparing the needs assessment & evaluation
Identifying the goods, works or services required,
Carry out appropriate market and statistical survey and on that basis prepare cost implications of proposed procurement
Aggregating its requirement to obtain economy of scale & reduce procurement cost.
PROCUREMENT ENTAILS THREE VITAL COMMITTEE: Procurement Planning Committee, Technical & Financial Committee & Tender Board Committee.
CHALLENGES AFFECTING PROCUREMENT PROCEDURE NATIONWIDE AND WAY FORWARD
Time Frame to accomplish the procurement processing is cumbersome i.e. Earlier start time to accomplish Nine Essentials steps of Procurement processes to finish start time needs to be addressed (Under amendment).
Delay in Releasing fund from Federation Account affecting the Execution/Implementation of projects across the Nation which resulted to abandonment of the projects.
15% Mobilization fee for the commencement of projects (i.e. Works and Consulting Services/Non-Consulting Services) is relatively small needs to be amended.
Inflation Rate Economy also affecting procurement processes.
Lack of Implementation of National Council of Procurement Committee members affects the procurement policy.
Exchange Rate of Dollars to Naira affects the projects Implementation which resulted into abandonment of several projects.
Award of Contract to the lowest Responsive Evaluated Bidders without getting Release of fund from Federal can lead to Mitigation between the Preferred Bidder and the Clients (Organization) in case government refused to release capital allocation.
WAYFORD TO OVERCOME THE CHALLENGES
1. e-Procurement processes introduced by BPP to minimize time frame of procurement procedure and interactive policy is in place between BPP, MDAs and GIFMIS.
2. Fund should be released on time by FG to execute projects to avoid abandonment of the tasks.
3. 15% Mobilization fee is insufficient and amendment of the fee is on-going.
4. Implementation of National Council of Procurement Committee members should kick-off in order to amend all green – areas and improve the policy of procurement procedure.
5. Procurement processes should be compelling on time but award of contract to preferred bidders is subject to release of fund by the Federal Government.
“FAILURE TO PLAN IS PLANNING TO FAIL”
ENGR. OLADIPUPO ISIAKA MABOGAJE, B.Sc, M.Sc,MNSE,FIFM
Certified Procurement Officer,