PSA-public procurement Week 5.pptx

(1)

PUBLIC PROCUREMENT:

PRINCIPLES AND LEGAL

(2)

Learning Objectives

• _{Upon completion of this session, students should be able to:}

• _{Compare and contrast procurement of and purchases}

• _{Compare and contrast public and private sector procurement}

• _{Discuss the importance of procurement in the public sector}

• _{Identify and explain the basic principles of public procurement}

• _{Explain some rules and methods of public procurement}

• _{Provide an overview of the developments in public procurement in}

(3)

Procurement Vrs Purchasing? What is Public Procurement?

• _{The terms purchasing and procurement interchangeably, but do have different}

meanings

• _{Procurement broadly Includes planning, inviting offers, awarding contracts and}

managing contracts

• _{It specifically involves:}

• the process of selecting vendors,

• establishing payment terms,

• _{strategic vetting,}

• _selection,

• _{the negotiation of contracts and}

• _actual

_PURCHASING

_{of goods.}

(4)

Public and Private Sector Procurement What is Public Procurement?

• _{Procurement processes are not the same within different organisations in the}

private sector.

• _{However, the processes are generally similar among public sector organisations in}

a particular country.

• _Why?

• _{Both public sector and private sector procurement professionals share similar}

demands, constraints and responsibilities:

• _{proving value for money,}

• _{being accountable for spending decisions and}

• _{adherence to procurement and financial policies.}

(5)

Some Differences

• _{Areas of differences include:}

• _{Sources of funding}

• _{the process, or the regulations and policy “rules” that govern procurement,}

• _{the skills and knowledge either needed or generally possessed by people in}

each sector.

• _{Communication with suppliers}

• _{Public procurement involves the use of public funds.}

• _{Procurement in the public sector is more bureaucratic; much slower and}

more constrained by rules and regulations than in the private sector

(6)

• _{In private, it is seen as integral to the organization, however in public}

its merely routine /operational / transactional…almost a means to an

end.

• _{Private sector are more flexible and open to innovations; they are}

profit and people driven.

• _{Public sector is highly regulated and sometime can be seen as}

inflexible.

• _{The public sector seems frightened to talk to suppliers, relying too}

(7)

Importance of Public Procurement

• _{Relatively, greater proportion of government expenditures are on}

procurement:

• _{Globally, 10 to 20% of GDP, and}

• _{EU, it accounts for more than EUR 2 trillion, or 19% of the EU GDP.}

• _{Ghana, 50 -70% of the national budget (after personal emoluments); 14% of GDP; 24%}

of total imports

• _{Public procurement has a direct impact on:}

• _{the successful delivery of government projects and public services}

• _{sound public financial management by achieving value for money in government}

expenditure

(8)

(9)

PROCUREMENT PRINCIPLES & ETHICS

Procurement principles and ethics will result in the following:

• _{Increased efficiency in the procurement functions}

• _{Procurement operations become more effective}

• _{Enhanced profile of procurement}

• _{Improved achievement of objectives}

• _{Professionalism of procurement}

(10)

Principles/Factors affecting

Principles and Factors for Achievement of

Procurement Objectives

• Professionalism

• Transparency

• Value for money

• _{Competitiveness}

• Accountability

• _Fairness

• Efficiency

(11)

• _{Professionalism:}

• _{It is the discipline whereby educated, experienced and responsible procurement officers}

make informed decisions regarding purchase operations.

• _{Transparency:}

• _M

eans that the same rules apply to all suppliers of goods, works and services and that

these rules are publicised as the basis of procurement decisions prior to their use.

• _{Value for Money:}

• It is the optimum combination of whole-life cost and quality to meet the customers’

requirements

• _{Competitiveness:}

• _Actively

encouraging greater supplier participation in the tendering process through

advertising, sourcing reviews, pre-qualification and transparent procedures.

(12)

• _{Accountability:}

• The process of holding an individual or an organisation fully responsible for all aspects

of the procurement process over which they exert authority

• _Fairness:

• Showing consideration and impartiality in all stages of the procurement process,

especially demonstrating equality in tender evaluations.

• _{Efficiency :}

• _M

_{eans a system which operates in a timely manner, with a minimum bureaucracy, while}

being responsive to the needs of the ultimate users of the goods or facilities procured

• _{Ethical Approach:}

• _Is

_{concerned with moral principles and values which govern our beliefs, actions and}

decisions. An exemplary approach to all procurement processes that cannot be

questioned or criticized

(13)

Planning

Sourcing

Contracting

Contract Management

Storing Distribution

Disposal Evaluation

The Procurement

Cycle

(for Goods)

(14)

Public Procurement In Ghana

• Government of Ghana launched the Public Financial Management Reform

Programme (PUFMARP) in 1996.

• PUFMARP identified weaknesses in the procurement system:

• _{No comprehensive public procurement policy}

• _{There was no central body with technical expertise to oversee/regulate sound}

procurement practice

• _{Absence of clearly defined roles, responsibilities and authority for procurement}

entities.

• _{There was no comprehensive legal regime to safeguard public procurement}

• _{No rules and regulations to guide, direct, train and monitor public procurement}

• _{No independent appeals process to address complaints from tenderers}

• _{No authority to dispose of public assets}

•

(15)

• _{In 1999, Government of Ghana established the Public}

Procurement Oversight Group to steer the development of a comprehensive public

procurement reform programme.

• _{Drafted a public procurement bill in September 2002.}

(16)

Legal and Regulatory Framework

• _{Public Procurement Act, 2003 (Act 663) and PP Act, 2016 (Act 914)}

• _{Public Procurement Regulations}

• _Guidelines

• _{Standard Tender Documents}

• _{Public Procurement Manual}

• _{Stakeholders of public Procurement System}

• _{Public Procurement Authority}

• _{Procurement Entities}

• Private Sector

(17)

Objectives and Scope of Act 663 of 2003.

Objectives:

• _{Harmonize public procurement processes in the public service}

• _{Secure judicious, economic and efficient use of state resources}

• _{Ensure public procurement is fair, transparent and non-discriminatory.}

• _{Act 663 applies to the following:}

• _{Procurement financed from public funds – wholly or partly}

• _{Procurement of goods, works, services and contract administration}

• _{Disposal of public stores and equipment}

• _{Procurement financed by funds or loans taken by the government of}

(18)

• _Exceptions:

• _{Where the Minister decides that alternative procedures are in the national interest}

• _{Where a loan or funding agreement specifies alternative procedures e.g. some aid}

agreements

• _{The Act does not apply to stores management or distribution}

• _{The following institutions come under the ambit of Act 663:}

• _{Central Management Agencies}

• _{Ministries, Departments and Agencies (MDAs)}

• _{Subvented Agencies}

• _{Governance Institutions}

• _{State-owned enterprises (when using public funds)}

• _{Public universities, schools, colleges and hospitals}

• _{The Bank of Ghana and financial institutions owned or majority-owned by Government}

• _{Institutions established by Government for the general welfare of the public}

(19)

• _{Functions of Act 663 :}

• _{Establishes the Public Procurement Board, Entity Tender Committees and}

Tender Review Boards

• _{Specifies outline rules for procurement methods, procedures, and appeals by}

tenderers and disposal of stores

• _{Defines offences and applicable penalties}

• _{Specifies thresholds in Schedules to the Act}

(20)

Public Procurement Regulations:

• _{Issued by the Minister for Finance in consultation with PPB}

• _{Contain detailed rules and procedures for all aspects of the procurement}

system

• _{the operations of PPB and procurement entities}

• _{the conduct of procurement activities.}

Guidelines:

• _{Issued by PPB under the Act}

• _{Provide supplementary guidance on specific topics e.g.}

• _disposal

• _{single source procurement}

• _{margins of preference}

(21)

• _{Standard Tender Documents:}

• _{Issued by PPB}

• _{Listed in a Schedule to the Act}

• _{Standard invitation and contract documents for procurement of all values}

• _{Separate documents for goods, works and services}

• _{Public Procurement Manual}

• _{Issued by PPB}

• _{Practical guidance and step-by-step procedures for undertaking}

procurement in accordance with the Act

(22)

Stakeholders of Public Procurement System

• _{Public Procurement Authority}

• _{Procurement Entities}

• _{Private Sector}

• _{Oversight Bodies}

(23)

Public Procurement Board

• _{An independent procurement regulatory body and not involved in individual}

tenders or contracts – except for approval of use of certain methods: single

source procurement and restricted tendering

• _{It is concerned with:}

• _Policy

• _Monitoring

• _{Regulation and Standards}

• _{Capacity-Building and Professional Development}

(24)

• _{Procurement Entities include:}

• _{State owned enterprises}

• _{Public Universities, Schools and colleges}

• _{The Bank of Ghana and other Financial institutions with majority or controlling}

interest of government

• _{Local authorities}

• _{The procurement entity has responsibilities and role for:}

• _{Head of Entity}

• _{Tender Committee}

• _{Tender Evaluation Panel}

• _{Procurement Unit}

(25)

• _{Oversight Bodies:}

• _{Includes various bodies – both public sector and civil society}

• _{Monitor and audit public procurement}

• _{Report cases of non compliance}

(26)

PROCUREMENT RULES,METHODS &

THRESHOLDS

• _{PROCUREMENT RULES:}

• _{PEs to prepare procurement plans for each fiscal year}

• _{PEs to aggregate requirement to achieve economies of scale, where appropriate}

• _{Tenderers should satisfy all qualification requirements under the Act}

• _{Pre-qualification proceedings to identify qualified tenderers}

• _{Need for all communications between PE and tenderers to be in writing}

• _{Good record keeping of procurement proceedings}

• _{Grounds for rejection of tenders should be specified in the tender documents}

• _{Acceptance of tender and entering into force of contract should be in line with the Act}

• _{PE should publish notice of contract award promptly}

• _{PE should reject all forms of inducements from service providers}

• _{Description of goods should be accurate and non-restrictive}

(27)

• _{PROCUREMENT METHODS :}

• _{Competitive Tendering:}

-

International Competitive Tendering (ICT)

-

National Competitive Tendering (NCT)

• _{Restricted Tendering}

• _{Two Stage Tendering}

• _{Single Source Tendering}

• _{Request for Quotation}

• _{Request for Proposals}

(28)

Choice of Procurement Method dependent on:

• _Thresholds

• _{Urgent or Emergency Requirements}

• _{Contract Extension}

• _{Proprietary Items}

• _{National Security}

(29)

• _{International Competitive Tendering (ICT)}

• _{High value and complex procurement for goods, works and technical services}

• _{Open to all eligible tenderers globally}

• _{Use of standard tender documents}

• _{Advertisement in international newspapers and journals of wide circulation}

• _{Tenders submitted in sealed envelopes}

• _{Tender security required}

• P

ayment in convertible currency

• _{National Competitive Tendering (NCT)}

• _{Open to all qualified tenderers in Ghana}

• _{Foreign tenderers are not restricted}

• _{Advertisement in newspapers of wide circulation in Ghana}

• _{National Currency (Ghana Cedis) used for payment}

• _{Threshold lower than in ICT and unlikely to attract foreign tenderers}

• _{Tenders submitted in sealed envelopes}

(30)

• _{Restricted Tendering :}

• _{Sometimes termed limited or selective method}

• _{Tenders are short-listed through a formal procedure}

• _{Maximum of six and a minimum of three short-listed suppliers or contractors required}

• _{Specific approval from PPB is necessary to use this method}

• _{Selected tender award to be published in the PPB Bulletin}

• _{Used for procurement of items of specialised nature, only available from a limited}

number of providers or for reasons of national safety or security

• _{Single Source Procurement}

• _{Direct contracting}

• _{For proprietary items}

• _{Urgent need}

• _{Additional requirements for purpose of standardization}

• _{National Security}

(31)

• _{Two-Stage Tendering}

• Purpose

• Used where it is not feasible to formulate detailed specifications from outset

• Tenderers invited at the initial stage to contribute to detailed specifications

• New detailed specification prepared and issued to selected suppliers at second stage

• Normal tendering process follows

• _{Appropriate where:}

• Detailed specification is difficult to prepare

• _{Character of goods subject to rapid technological advances}

• Research, experiment and development activities.

(32)

• _{Request for Quotation (RFQ):}

• _{Used where items are readily available (off-the-shelf)}

• _{Used where items are under the threshold in Schedule 3 Act 663.}

• _{One-priced quotation required from each supplier}

• _{Request for Proposals}

_(RFP):

• _{Used to invite proposals for consultancy services}

• _{Two-stage approach when value is above the threshold stated in Schedule 3 of Act 663}

• _{Stage 1 – Seeking Expressions of Interest}

• _{Stage 2 – Formal Request for Proposals}

• _{PROCUREMENT THRESHOLDS:}

• _{Thresholds for procurement of goods, works and consultant services are detailed in}

(33)

PUBLIC PROCUREMENT

(34)

Parts of Act 663 (Key parts amended by Act 914 in RED)



PART I

-

Establishment of the Authority



PART II

-

Procurement structures



PART III

-

Procurement rules



_{PART IV}

_{-Methods of procurement}



PART V

-

Tendering procedures



PART VI

-Methods & Procedures to engage Consultant services



_{PART VII}

_-

_Review



PART VIII

-

Disposal of stores, plant & equipment



PART IX

-

Miscellaneous provisions

(35)

Some Challenges of Act 663

• _{Categorization of Entities}

• _{Composition and functions}

of ETCs, TRBs and CTRB

• _{Concurrent approvals ETCs,}

TRBs and CTRB

• _Thresholds

• _{Decentralization of MMDAs}

• _{Cost of maintaining the}

Review Boards

• _{Inaccuracies and ambiguity}

in the principal enactment.

(36)

1. GENENRAL CONCEPT AND INTRODUCTIONS

2. PROCUREMENT STRUCTURES

3. PROCUREMENT RULES

4. TENDER PROCEDURES

5. REVIEW

6. DISPOSAL

7. MISCELLANOUS PROVISIONS

(37)

OBJECTIVE

TO HARMONISE THE PROCUREMENT PROCESS OF PUBLIC PROCUREMENT IN THE PUBLIC SERVICE TO SECURE A JUDICIOUS, ECONOMIC AND EFFICIENT USE OF STATE RESOURCES IN PROCUREMENT AND ENSURE THAT PUBLIC PROCUREMENT IS CARRIED OUT IN A FAIR, TRANSPARENT AND NON-DISCRIMINATORY MANNER,

ENVIRONMENTALLY AND SOCIALLY SUSTAINABLE.

1. Environmental and Sustainability Introduced -

Section 2, Act 914

(38)

2. Sustainable Procurement

(Section 2)



_{Amendments introduced to encourage the practice of}

sustainable procurement with the ultimate goal of poverty

alleviation and development.



Environmental, industrial & social criteria introduced in a

number of provisions to ensure good standards.



Can be used as avenues to promote various government

development policies.

(39)

3. Framework Contracting

(Section 34A & 98a)

A long-term agreement with suppliers, contractors

and providers of non-consulting services which sets

out terms and conditions under which specific

procurements

(call-offs)

can be made throughout

the term of the agreement.

Framework agreements are generally based on

prices that are

either pre-agreed, or determined at

the call-off stage

through competition or a process

allowing their revision without further competition;

(40)

2. Key Areas of Amendment

1. GENENRAL CONCEPT AND INTRODUCTION

2. PROCUREMENT STRUCTURES

3. PROCUREMENT RULES

4. TENDERING PROCEDURES

5. REVIEW

6. DISPOSAL

(41)

Amendments to Act 663

2. Key areas of

Amendment

_{I. Categorization of all Entities}

1. Clauses 15 & 17 – ETCs and TRCs re-categorized according to functions

and spending levels.

2. Categorization (A to F)



A - Special Constitutional Bodies



B - CMAs, Ministries, SOEs, RCC



C - Teaching Hospitals & Tertiary Educational Institutions



D - Regional Hospitals & Colleges



E - District Hospitals, Second Cycle schools

(42)

Amendments to Act 663

2. Key areas of

Amendment

_{II. Categorization of procurement structures}

MINISTRIES/DEPARTM

ENTS & AGENCIES

ENTITY HEAD

ENTITY TENDER COMMITTEE CENTRAL TENDER REVIEW

COMMITTEE

METROPOLITAN

/MUNICAL AND

DISTRICT ASSMBLIES

ENTITY HEAD

ENTITY TENDER COMMITTEE REGIONAL TENDER REVIEW

(43)

Amendments to Act 663

2. Key areas of Amendment

III. Re-composition of Members of ETCs and TRCs (Section 20)



Memberships re-composed, mainly comprising internal staff;



MPs representations removed ;



Non-availability of Chief State Attorneys nationwide, Attorney or Lawyers

appointed by Entities;



Heads of ETCs – CEOs (Account Holders);

(44)

Amendments to Act 663

2. Key areas of Amendment

V. ETC Members given power of delegation



ETC membership reconstituted to comprise the organization’s internal

staff to reduce cost and delays. (Schedule 1B and 1C);



ETC may co-opt a Technical person to assist in decision making. That

person will/shall not have voting right. (Section 20 (3);



The Chairperson and members of ETC may delegate their functions in

writing. (Section 20A (2).

(45)

Amendments to Act 663

2. Key areas of Amendment

IV. Increased Thresholds Across Board (Section 18, 20, 20A, 20B &

20C)

1. Categorization (A to F);

2. Thresholds increased in line with the changing market

environment and pricing;

3. Functions

& spending levels (high spend, medium &

low spend).

(46)

A

(Special Constitutional Bodies)

1. Legislature 2. Judiciary

3. Council of State 4. Bank of Ghana

CATEGORY

2. Key areas of Amendment

(47)

Legislature

Chief Administrator Head of Finance Majority Leader Minority Leader Chairperson PAC Chairperson Works

Chairperson (select committee 2 members of Professional Bodies

9

Head of Procurement Chairperson + 4 members

Item Chairperson Members Membership Secretary Quorum Judiciary Judiciary Secretary Head of Finance

2 Members – Judicial Council 3 Members – Superior Courts 2 Members – Professional Bodies

9

Head of Procurement Chairperson + 4 members

A

Entity Tender

Committee

2. Key areas of Amendment

(48)

Council of State

Chief Director Head of Finance

3 Heads of Departments 2 Members of Professional Bodies

7

Head of Procurement Chairperson + 3 Members

Item Chairperson Members Membership Secretary Quorum

Bank of Ghana

Governor

First Deputy Governor Head of Legal

Rep from MOF

Rep of the office of President Head of Finance

1 Dept. head

2 Members of Professional Bodies

9

Head of Procurement Chairperson + 4 Members

A

Entity Tender

Committee

2. Key areas of Amendment

(49)

CATEGORY A

Goods (GHC) Works (GHC) Services (GHC)

Head of Entity

Current New Current New Current New

5,000 Up to 100,000

10,000 Up to 500,000

5,000 Up to 100,000 Entity Tender Committee (ETC) 5,000 to 100,000 100,000 to 1,000,000 10,000 to 200,000 500,000 to 15,000,000 5,000 to 50,000 100,000 to 1,000,000 Central Tender Review

Committee 800,000Above

Above 1,000,000 Above 1,500,000 Above 15,000,000 Above 800,000 Above 1,000,000

2. Key areas of Amendment

IV. Increased Thresholds across board

(50)

B

1. Independent Constitutional

Bodies

2. Office of the President

3. Central Management

Agencies

4. Ministries

CATEGORY

5. State Owned Enterprises

6. Regional Coordinating

Councils

7. Statutory Fund

Management Bodies

2. Key areas of Amendment

I. Categorization of all Entities

(51)

CMA, Ministries, Independent Constitutional bodies, office of the president

Minister/Head of Institution Head of Finance

An Attorney from the AG’s Office

3 Heads including user Depts. Chief Director

2 members of Professional Bodies

9

Head of Procurement Chairperson + 4persons

Regional Coordinating Council

Regional Minister Head of Finance

Head of AG’s office in Region 3 Heads of Depts..

Regional Coordinating Director 2 members of Professional Bodies

9

B

Entity Tender

Committee

2. Key areas of Amendment

(52)

2. Key areas of Amendment

III. Re-composition of Members of ETCs and TRCs

State Owned Enterprises

Chief Executive Head of Finance Head of Legal

A Rep. from sector Ministry 3 Heads of Dept. including user Depts.

9

Head of Procurement Chairperson + 4 persons

Statutory Fund Management Bodies

Chief Executive Head of Finance Head of Legal

A Rep from MOF

A Rep from sector Ministry 2 Heads of Depts. (user Depts..)

9

B

Entity Tender

Committee

(53)

CATEGORY B

5,000 Up to 100,000 10,000 Up to 500,000

5,000 Up to 100,000 Entity Tender Committee (ETC) 5,000 to 100,000 100,000 to 1,000,000 10,000 to 200,000 500,000 to 15,000,000 5,000 to 50,000 100,000 to 1,000,000 Central Tender Review

Above 1,000,000

Above 1,500,000

Above

15,000,000 _800,000Above _1,000,000Above

2. Key areas of Amendment

IV. Increased Thresholds across board

(54)

C

1. Head Office of subvented agencies

and government departments

2. Teaching Hospitals

3. Tertiary Institutions including

autonomous schools, institutes,

colleges and campuses

CATEGORY

2. Key areas of Amendment

I. Categorization of all Entities

(55)

Head office of subvented Agencies and Gov’t Departments

Chief Executive/Head of Dept Head of Finance

Attorney from AG’s Office 3 Heads of Departments including user Depts.

A Rep. from sector Ministry

9

Head of Procurement Chairperson + 4 persons

Item Chairperso n Members Membershi p Secretary Quorum Teaching Hospitals Chief Executive Head of Finance

A Rep. from the private sector

9

C

Tertiary Institutions

Vice Chancellor/Principal/Rector of Equivalent

Registrar

Head of Finance

Lawyer appointed by Council 3 Heads of Departments including user Depts. 1Members of Professional Bodies

1 Member appointed by NCTE 9

2. Key areas of Amendment

(56)

CATEGORY C

5,000 Up to 100,000 10,000 Up to 150,000

5,000 Up to 100,000 Entity Tender Committee (ETC) 5,000 to 100,000 100,000 to 800,000 10,000 to 200,000 150,000 to 1,500,000 5,000 to 50,000 100,000 to 800,000 Central Tender Review

Above 800,000

Above 1,500,000

Above

1,500,000 _800,000Above _800,000Above

2. Key areas of Amendment

III. Increased Thresholds Across Board

(57)

D

1. Regional office of subvented

agencies and government

departments

2. Regional Hospitals

3. Colleges

CATEGORY

2. Key areas of Amendment

(58)

Regional office of subvented Agencies and Gov’t

Departments

Head of Regional Department or Government Agency

Head of Finance

A Rep from the Regional Co-ordinating Council

7

Head of Procurement Chairperson + 3 others

Item Chairperso n Members Membershi p Secretary Quorum Regional Hospitals Regional Medical

Superintendent / Director Head of Finance

Health Service Administrator Head of Pharmacy

Hospital Administrator

Clinical Head

Attorney from AG’s Office Rep. from Regional Health Direct.

Rep from RCC 9

D

Colleges

Principal/Headmaster/Headmist ress or equivalent

Head of Finance

Rep from appropriate

Education/Health Directorate Lawyer appointed by Governing body

3 Heads of Departments including user Depts.

7

2. Key areas of Amendment

(59)

CATEGORY D

5,000 Up to 45,000

10,000 Up to 75,000

5,000 Up to 45,000 Entity Tender Committee (ETC) 5,000 to 100,000 45,000 to 400,000 10,000 to 200,000 75,000 to 800,000 5,000 to 50,000 45,000 to 400,000 Central Tender Review

Committee _800,000Above 400,000Above

Above 1,500,000 Above 800,000 Above 800,000 Above 400,000

2. Key areas of Amendment

III. Increased Thresholds across board

(60)

E

1. District office of subvented

agencies and government

departments

2. District Hospitals

3. Second cycle schools or institutions

CATEGORY

2. Key areas of Amendment

(61)

District office of subvented Agencies and Gov’t

Departments

Head of District Department or Government Agency

Head of Finance

A Rep from the Regional office of the subvented agency of government department. 7

Item Chairperso n Members Membershi p Secretary Quorum Regional Hospitals

Medical Superintendent / Director

Head of Finance Head of Pharmacy Hospital Administrator Attorney from AG’s Office Rep. from Regional Health Direct.

Rep from RCC

7

Colleges

Principal/Headmaster/Headmist ress or equivalent

Busar / Head of Finance

Lawyer appointed by governing body

3 Heads of Departments including user Depts.

Rep from District Education Directorate

7

2. Key areas of Amendment

(62)

CATEGORY E

5,000 Up to 30,000

10,000 Up to 45,000

5,000 Up to 30,000 Entity Tender Committee (ETC) 5,000 to 100,000 30,000 to 200,000 10,000 to 200,000 45,000 to 400,000 5,000 to 50,000 30,000 to 200,000 Central Tender Review

2. Key areas of Amendment

III. Increased Thresholds across board

(63)

F

1. Metropolitan Assemblies

2. Municipal Assemblies and District

Assemblies

CATEGORY

2. Key areas of Amendment

I. Categorization of all Entities

(64)

Metropolitan Assemblies

Metropolitan Chief Executive Director of Finance

Legal office or Metro. Assembly Chairperson Works committee Chairperson Finance committee 2 Depts. Head (User Depts.) Budget officer

Metropolitan Coordinating Dir.

9

Municipal and District Assemblies

Municipal/District Chief Executive Director of Finance

Legal office or Metro. Assembly Chairperson Works committee Chairperson Finance committee 2 Depts. Head (User Depts.) Budget officer

District Coordinating Dir.

9

F

Entity Tender

Committee

2. Key areas of Amendment

(65)

CATEGORY F1 (Regional Coordinating Council)

5,000 Up to 100,000

10,000 Up to 150,000

5,000 Up to 100,000 Entity Tender Committee (ETC) 5,000 to 100,000 100,000 to 750,000 10,000 to 200,000 150,000 to 1,000,000 5,000 to 50,000 100,000 to 750,000 Regional Tender Review

Above 1,500,000 Above 1,000,000 Above 800,000 Above 750,000

2. Key areas of Amendment

III. Increased Thresholds across board

(66)

CATEGORY F2 (Metropolitan Assemblies)

5,000 Up to 75,000

10,000 Up to 125,000

5,000 Up to 75,000 Entity Tender Committee (ETC) 5,000 to 100,000 75,000 to 550,000 10,000 to 200,000 125,000 to 750,000 5,000 to 50,000 75,000 to 550,000 Regional Tender Review Committee Above 800,000 Above 550,000 Above 1,500,000 Above 750,000 Above 800,000 Above 550,000

2. Key areas of Amendment

IV. Increased Thresholds across board

(67)

CATEGORY F3 (Municipal & District Assemblies)

5,000 Up to 50,000

10,000 Up to 90,000

5,000 Up to 50,000 Entity Tender Committee (ETC) 5,000 to 100,000 50,000 to 400,000 10,000 to 200,000 90,000 to 550,000 5,000 to 50,000 50,000 to 400,000 Regional Tender Review

2. Key areas of Amendment

V. Increased Thresholds across board

(68)

2. Key areas of Amendment

Threshold for Procurement Methods (Clarified) (Fifth Schedule)



Procurement Methods Clarified



Thresholds increased



Consultancy Service – No Thresholds

(69)

Amendments to Act 663

2. Key areas of Amendment

Threshold for Procurement Methods(Clarified) Schedule 5

INTERNATION

AL

COMPETITIVE

TENDER

PROCUREMENT METHOD SCOPE CONTRACT VALUE THRESHOLD

GOODS WORKS

TECHNICAL SERVICES

Above GHS 10,000,000.00 Above GHS 15,000,000.00 Above GHS 5,000,000.00

NATIONAL

COMPETITIVE

TENDER

GOODS WORKS TECHNICAL SERVICES

> GHS 100,000.00 - GHS 10,000,000.00 > GHS 200,000.00 - GHS 15,000,000.00 > GHS 50,000.00 – GHS 5,000,000.00

PRICE

QUOTATION

GOODS WORKS

Up to GHS 100,000.00 Up to GHS 200,000.00 Up to GHS 50,000.00

(70)

Amendments to Act 663

2. Key areas of Amendment

Threshold for Procurement Methods(Clarified) Schedule 5

RESTRICTED TENDER

PROCUREMENT METHOD SCOPE CONTRACT VALUE THRESHOLD

GOODS WORKS

Any Value

Subject to approval by the Board

GOODS WORKS

CONSULTANCY SERVICE

SINGLE SOURCE PROCUREMENT

SINGLE SOURCE

Any Value

Subject to approval by the Board

Any Value

(71)

2. Key areas of Amendment

Threshold for Procurement Methods(Clarified) Schedule 5

Consultancy Service – NO THRESHOLD LIMITS

Quality Based Selection

Refer to Public

Procurement

Authority Manual for

Procedures.

Quality and Cost Based Selection

Consultant’s Qualification

Fixed Budget Selection Least Cost Selection Individual Consultant

(72)

Amendments to Act 663



Additional clause to explain conditions to request for single source procurement.

(iii) The reasonableness of the price

(iv) The unsuitability of alternatives to the goods or services in question.



Amended to include the use of procurement to encourage implementation of

socio-economic policies.

2. Key areas of Amendment

(73)

2. Key Areas of Amendment

1. GENENRAL CONCEPT AND INTRODUCTION

2. PROCUREMENT STRUCTURES

3. PROCUREMENT RULES

4. TENDER PROCEDURES

5. REVIEW

6. DISPOSAL

(74)

Amendments to Act 663

Section 21 of Act 663 Amended :

“A

procurement entity shall submit to its Entity Tender Committee not later

than one month to the end of the financial year the procurement plan for the

following year for approval and shall post the procurement plan on the

website of the Authority”.

3. Key areas of Amendment

Procurement Rules

1. Procurement Plan



Entities are required to post their Procurement Plan on PPA’s website by

30

th

_{November of every financial year.}

(75)

Amendments to Act 663

3. Key areas of Amendment

Procurement Rules

2. Qualification of Tenderers

Tenderers must possess

–

_{Professional, Technical and Environmental qualifications.}

–

_{Financial Resources}

–

_{Equipment and other physical facilities}

–

_{Managerial capability, reliability and experience}

–

_{Competent personnel}

Must have fulfilled all tax obligations

False declarations are not permitted

(76)

Amendments to Act 663

2. Key areas of Amendment

Procurement Rules - Section 22A

3. Suspension of a supplier or consultant

The Board

may suspend a supplier or consultant from engaging in

any public procurement or disposal process for a period

determined by the Board

(a)

on the recommendation of a procurement entity or after

investigations on its own initiative;

and

(b)

where it is determined after a special audit or by a court, that a

tenderer is engaged in corrupt or fraudulent practices.

(77)

Amendments to Act 663

2. Key areas of Amendment

Procurement Rules - Section 28 (4A)

4. Record of Procurement Proceedings



_{Entity not to disclose information of tenderers (Protection}

Against Unfair Protection Act, 2000 (Act 589)



_{Record Keeping under the Public Records and Archives}

(78)

2. Key Areas of Amendment

1. GENENRAL CONCEPT AND INTRODUCTION

2. PROCUREMENT STRUCTURES

3. PROCUREMENT RULES

4. TENDERING PROCEDURES

5. REVIEW

6. DISPOSAL

(79)

Amendments to Act 663



[1] Locally registered suppliers, contractors or consultants may participate

in NCT with out regard to nationality, except where the procurement entity

decides to limit participation in national competitive tendering proceeding

to domestic suppliers, contractors or consultants.



[7] A procurement entity shall stipulate a minimum period

of two weeks or a maximum period of six weeks for the submission of

tenders under the national competitive tender procedures.”.

2. Key areas of Amendment

4. Tendering Procedures

(80)

Amendments to Act 663



Amended to support “or any other preference authorized by the Board or

required by regulations or any other enactment”,

The regulation shall provide ample room for the implementation of strategic

local industrial policy initiatives e.g. local production & manufacturing.

The regulation should be broad enough to cover additional environmental or

social policies which will enhance employment opportunities.

2. Key areas of Amendment

4. Tendering Procedures

(81)

Amendments to Act 663



Suspension of procurement proceedings provisions under the

Act has been enhanced.



_{Currently, the onus is on the regulator to justify suspension of}

procurement proceedings.



Amendment reverses this and now places onus on Entities to

defend non-suspension.

2. Key areas of Amendment

4. Tendering Procedures

III. Rules on Suspension of Suppliers, Contractors and Consultants and

Procurement Proceedings. Section 82

(82)

2. Key Areas of Amendment

1. GENENRAL CONCEPT AND INTRODUCTION

2. PROCUREMENT STRUCTURES

3. PROCUREMENT RULES

4. TENDER PROCEDURES

5. REVIEW

6. DISPOSAL

(83)

2. Key areas of Amendment

Right to Compliant or Administrative Review (Section 78 – 80)

Any supplier, contractor or consultant that claims to

have suffered loss or injury due to a breach of a duty

imposed on the procurement entity by this Act, may

seek review.

(84)

Right to Compliant (Section 78 – 79)

Administrative Review (Section 80)

Right to Compliant or Administrative Review (Section 78 – 80)

Complaina nt

Entit

y PPA Court

Complian t

Entity

End Case Yes

PPA Court

No No

End Case Yes

(85)

2. Key Areas of Amendment

1. GENENRAL CONCEPT AND INTRODUCTION

2. PROCUREMENT STRUCTURES

3. PROCUREMENT RULES

4. TENDERING PROCEDURES

5. REVIEW

6. DISPOSAL

(86)

Amendments to Act 663



Rules on the Disposal of unserviceable stores and obsolete plant & equipment to

now include the disposal of both serviceable and unserviceable government

vehicles.



Section

83A. (1) The Minister shall, in consultation with the Board, make further

Regulations on the disposal of vehicles, unserviceable stores, and obsolete

equipment.



_{(2) The Board shall issue detailed instruction (Regulations) and policy guidelines}

related to the disposal of vehicles, unserviceable stores and obsolete equipment.

2. Key areas of Amendment

(87)

2. Key Areas of Amendment

1. GENENRAL CONCEPT AND INTRODUCTION

2. PROCUREMENT STRUCTURES

3. PROCUREMENT RULES

4. TENDER PROCEDURES

5. REVIEW

6. DISPOSAL

(88)

2. Key areas of Amendment

XII. Miscellaneous provisions – Cont’d

CONFIDENTIALITY CLAUSES INTRODUCED TO PROTECT SENSITIVE

INFORMATION

 A procurement entity shall not disclose information that will compromise national

security, impede law enforcement, prejudice commercial interest and fair competition.

PENALTY UNITS FOR PROCUREMENT OFFENCES INCREASED

 Increased from 1,000 to 2,500 penalty units

RULES ON CONFLICT OF INTEREST TO BE ADOPTED BY ALL ENTITIES

 The Board shall with the approval of the Minister compile and publish a Code of Conduct that shall address conflict of interest in procurement. (By Regulation)