Introduction
Procurement can be defined as the process of acquisition goods, works and services to satisfy the identified needs of an important function within an entity. Procurement can be defined as the process through which entities purchase their requirements to fulfill school requirements. The traditional definition of procurement is acquisition by any means of supplies, services, or works. This definition was more associated with purchasing than procurement. We can say that procurement, different purchasing, is a process not an event. It has to be conducted in a systematic manner; and involves a number of stakeholders.
What are the objectives of procurement?
The traditional five (5Rs) rights of procurement, Bailey and Farmer (1985) namely:
- Acquiring the Right product
- From the Right supplier
- In the Right quality
- At the Right time
- At the Right price
METHODS OF PUBLIC PROCUREMENT
- Open domestic bidding.
- Open international bidding.
- Restricted domestic bidding
- Restricted international bidding
- Quotations or Proposal procurement
- Direct procurement
- Micro procurement
- Force Account
- Community purchase
Open Domestic Bidding: open to all bidders following a public advertisement of a Bid Notice in at least one widely read national newspaper.
Open International Bidding: where competition will not be effective without foreign bidders or where foreign bids will increase value for money. Nothing prevents a domestic bidder from participating in open international bidding.
Restricted Domestic Bidding may be used where:
- the supplies, works or services are available only from a limited number of providers and;
- there is insufficient time for an open bidding procedure, for example in an emergency situation; or
- the estimated value of the procurement does not exceed the threshold stated in the public procurement guidelines.
- Under this procurement method, the invitation to bid is addressed to a limited number of potential bidders without advertising he opportunity in a Bid Notice;
Request for Quotations (RFQ) or Proposal (RFP) may be used where:
- there is insufficient time for an open or restricted bidding procedure, for example in an emergency situation; or
- where the estimated value of the procurement does not exceed the threshold stated in the public procurement guidelines.
- The solicitation document are addressed to a limited number of potential bidders without advertising the opportunity; and a procuring and disposing entity has to obtain at least three bids.
Direct procurement may be use where:
- there is insufficient time for any other procedure for example in an emergency situation; or
- the works, services or supplies are available from only one provider;
- an existing contract can be extended for additional works, services or supplies of a similar nature and no advantage could be obtained by further competition (as long as the prices on the extended contract are reasonable);
- additional works, services or supplies required have to be compatible with existing supplies, works or services and it is advantageous or necessary to purchase the additional works, services or supplies from the original supplier, provided the prices on the additional contract are reasonable; or
- it is essential or preferable to purchase additional works, services or supplies from the original supplier to ensure continuity for downstream work, including continuity in technical approach, use of experience
acquired or continued professional liability, if the prices on the additional contract are reasonable; - where the value of the new works, services or supplies does not exceed 15% of the value of the
original or existing contract and where the original or existing contract has been awarded through a
competitive process;
Micro procurement may be used where the goods or services are below the threshold stated in regulations. Where a procuring and disposing entity engages in micro procurement:
(a) The original invoice or receipt for the supplies procured and the price paid has been obtained and signed by the official procuring the supplies; and
(b) It shall be responsible for ensuring that value for money is obtained to the extent practical under the procurement procedure.
Force Account
under this method of public procurement, use of the public entity’s own personnel and equipment is permitted when it is the only practical method for undertaking some kinds of works. Force account can be justified where:
- the quantities of work involved cannot be defined in advance;
- the works are small and for which qualified construction firms are unlikely to bid at reasonable prices; the risks of unavoidable work interruption are better borne by the organisation than by a Contractor; and;
- there are emergencies needing prompt attention.
Community purchase
At the community level, in local government, members of the community can form a committee for the purposes of purchasing materials or seeds or animals that are usually distributed to the benefiting community members. Such programmes in agriculture, some developing countries, have the community members agreeing and buying some purchases as a community purchase.
