Procurement

Advantages and Disadvantages of Centralized and Decentralized Procurement procedures

• Conduct annual procurement planning that includes both office and program equipment, supplies and services.
• Link procurement planning to budget and work planning processes.
• Follow established written procurement procedures. (FAR/AIDAR)
• Provide for open competition to the extent possible.
• Obtain quotations, review quotations against established criteria, use evaluation committees and justify vendor  selection.
  • Ensure adequate segregation of duties – prepare/review/authorize

Bid Selection Methods - Open Bidding, Direct & Restricted Bidding Selection

1. Preparation Meeting
A tender evaluation committee must be established by the Chief Executive prior to the tender preparation meeting. The committee should consist of an odd number of participants, ideally a minimum of three and a suggested composition of the committee could be as follows;
1. Logistics Manager or equivalent
2. Technical Representative (specifically related to the items being procured)
3. Finance Department Representative

Clarification on specific information contained within quotations can often be necessary before a Purchase Committee can make its ultimate recommendation on which quotation offers the best value for money while remaining appropriate from a technical perspective. When such a necessity arises, it is important that the process of attaining clarification is fully transparent. Clarification can typically address issues such as;

All information pertaining to quotations must be treated as highly confidential and must not under any circumstances be disclosed to other bidders. Prior to evaluating quotations, the evaluation criteria should be agreed ie, price, minimum delivery timeframe, acceptable payment terms etc.

A Single Quotation procedure can be defined as a process whereby one written quotation is collected which is deemed competitive for the material or service being procured. Quotations must always be received in writing either on suppliers headed paper or on organizational Request for Quotation (RFQ) form. An RFQ form should be used in circumstances when suppliers cannot or are unwilling to provide written quotations.