1) Discuss objectives of PPDA 2015 ( public procurement and disposal Act) 5mks
Maximize economy and efficiency
To promote competition and ensure that competitors are fairly treated
To promote integrity and fairness of procurement Procedures
To enhance transparency and accountability
To restore public confidence in procurement process
To facilitate the promotion of local industries and economic development.
2) Discuss in detail bodies that regulate public procurement(5mks)
Policy and Legislative framework
The Public procurement system in Kenya has undergone significant developments. The system
had no formal regulations in the 1960s. Treasury Circulars for procurement purposes were
implemented between the 1970s and 1990s. In 2005, the first Public Procurement and Disposal
Act (PPDA) was enacted followed by the Public Procurement and Disposal Regulations (PPDR)
in 2006. Following the entrenchment of procurement in the Constitution of Kenya 2010, these
laws were repealed by the enactment of the Public Procurement and Assets Disposal Act (PPAD)
of 2015 and the attendant Public Procurement and Disposal Regulations (PPDR). These
legislations provide a strong legal framework on which the fight against corruption in public
procurement is anchored.
The PPAD Act establishes the procurement methods to be applied, advertising rules and time
limits, the content of tender documents and technical specifications, tender evaluation and award
criteria, procedures for submission, receipt and opening of tenders, and the complaints system
structure. The PPAD and Regulations cover goods, works and services for all procurement
undertaken using public funds. The legal framework is complemented with a series of Standard
Tender Documents (STDs) covering procurement of goods, works and services.
Besides the PPAD Act, a number of statutes also have provisions that regulate public
procurement processes in Kenya. These include the Anti-Corruption and Economic Crimes Act
(ACECA), The Bribery Act, The Public Audit Act, The Public Finance Management Act and the
Law of Contract Act.
Relevant Institutions
The PPAD Act established a number of institutions to regulate public procurement in Kenya.
These include the Public Procurement Oversight Authority (PPOA), Public Procurement
Oversight Advisory Board (PPOAB) and Public Procurement Administrative Review Board
(PPARB). PPOA is established as the supreme public procurement oversight body in the
country. The Act spells out the responsibilities of the Authority which include to ensure that
procurement procedures are complied with; to monitor the public procurement system and
recommend improvements; to assist in the implementation and operation of the procurement
system; and to initiate public procurement policy and amendments to the PPDA.
The Advisory Board advises the Authority generally on the exercise of its powers and the
performance of its function; approves the estimates of the revenue and expenditures of the
Authority and recommends the appointment or termination of the Director-General. The
Review Board was established to promote and uphold fairness in the Public Procurement
system through judicious and impartial adjudication of matters arising from disputed
procurement proceedings and as a major alternative to the court system. The Review Board
also offers general legal advice to the Procurement Stakeholders in relation to conflicts and
proceedings during filing and/or hearings of the Review. The board is autonomous and
comprises of six members nominated from various professional associations as prescribed in
Regulations 68 (1) (a) and three other members appointed by the Cabinet Secretary
responsible for finance.
The Office of the Auditor General is established as an independent office under Article 229 of
the Constitution of Kenya. It has a primary oversight role of ensuring accountability between the
three arms of government (the Executive, Legislature and Judiciary) as well as County
Governments, Constitutional Commissions and Independent Offices. The Constitution mandates
the office to audit and report its findings to the National Assembly, Senate or relevant County
Assemblies. Article 229 (6) further tasks the office to ensure that public resources are applied
lawfully and effectively.
The Ethics and Anti-Corruption Commission is also established as one of the key oversight
institutions in the Kenya. Its functions are prescribed under Article 252 and Chapter six of the
Constitution of Kenya. The Commission is required to develop and promote standards and best
practices in integrity and anti-corruption, as well as to investigate any acts of corruption and
recommend the prosecution of any related acts. On average, the Commission receives between
4,000 and 5,000 complaints per year out of which 6 per cent involves public procurement
irregularities which the Commission investigates and recommends prosecution as necessary.
Tender publishing portals and e-procurement form the last framework in place to facilitate
integrity in Kenya’s procurement system. In August 2014, the e-procurement platform was
officially launched in the country. The platform is expected to enhance transparency and
accountability in the procurement process thereby minimizing corruption in the sector. The full
benefits of this platform are yet to be realized with initial assessments indicating attempts at
manipulation of the platform.
3) Discuss responsibility of user department in accordance with PPDA 2015 (5mks)
Initiating procurement and disposal requirements and forwarding them to the
procurement unit;
Participating in the evaluation of tenders, proposals and quotations;
Reporting any departure from the terms and conditions of the contract to the procurement
unit;
Forwarding details of any required variations to contracts to the procurement unit for
consideration and action;
Maintaining and archiving records of contract management;
Preparing any reports required for submission to the procurement unit, the procurement
committee, the tender committee, head of procuring entity or the accounting officer;
Undertaking conformity assessments of supplied goods, works and services with the
specifications of the contract documents;
Endorsing the issuance of goods, works and services received notes;
Preparing technical specifications and submitting the same to the procurement unit;
Assisting in the preparation of procurement and disposal plans;
Making clarifications on tenders, requests for quotations and any other matter as may be
required; and
Carrying out any other functions and duties as may be provided under the act or these
regulations, or as may be stipulated by the authority.
4) Discuss functions of a procuring unit in any public organization according to PPDA 2015
(6mks)
(a) to ensure that the procurement procedures established under this Act are complied with;
(b) to monitor the public procurement system and report on the overall functioning of it in
accordance with section 20
(3) (b) and present to the Minister such other reports and recommendations for improvements as
the Director-General considers advisable;
(c) to assist in the implementation and operation of the public procurement system and in doing
so-
to prepare and distribute manuals and standard docu-ments to be used in connection with
procurement by public entities;
to provide advice and assistance to procuring entities;
to develop, promote and support the training and profes-sional development of persons
involved in procurement; and
to issue written directions to public entities with respect to procurement including the
conduct of procurement proceedings and the dissemination of information on
procurements; and
to ensure that procuring entities engage procurement professionals in their procurement
units.
(d) to initiate public procurement policy and propose amendments to this Act or to the
regulations; and
(e) to perform such other functions and duties as are provided for under this Act.
(1) The Authority shall have a Director-General who shall be the chief executive officer of the
Authority and who shall be responsible for its direction and management.
5) Discuss in details functions of following committee:
1) Tender committee
(a) review, verify and ascertain that all procurement and disposal has been
undertaken in accordance with the Act, these Regulations and the terms set out
in the tender documents;
(b) approve the selection of the successful tender or proposal;
(c) award procurement contracts in accordance with thresholds prescribed in First Schedule;
(d) ensure that funds are available for the procurement under consideration;
(e) ensure that the procuring entity does not pay in excess of prevailing market prices;
(f) review and approve aggregation of procurements where proposed;
2) Evaluation committee
(a) approve a submission; or
(b) reject a submission with reasons; or
(c) approve a submission, subject to minor clarifications by the procurement unit or
evaluation committee.
(2) The tender committee shall not—
(a) modify any submission with respect to the recommendations for a contract award
or in any other respect;
(b) reject any submission without justifiable and objective reasons;
Where the tender committee rejects the recommendation of the evaluation
committee, the decision shall be reported to the head of the procuring entity or to the
accounting officer.
Any submission rejected by the tender committee may be resubmitted and the tender
committee shall provide an explanation and a justification for its decision thereof.
(1) The accounting officer or the head of the procuring entity shall appoint an
alternate member for each member of the tender committee and only the alternate shall
attend any meeting of the tender committee whenever the member is unable to attend.
The quorum of the tender committee shall be five members including the chairman.
3) Inspection & acceptance committee.
inspect and where necessary, test the goods received;
inspect and review the goods, works or services in order to ensure compliance with the
terms and specifications of the contract;
accept or reject, on behalf of the procuring entity, the delivered goods, works or services.
The inspection and acceptance committee shall—
ensure that the correct quantity of has been received;
ensure that the goods, works or services meet the technical standards defined in the
contract;
ensure that the goods, works or services have been delivered or completed on time, or
that any delay has been noted;
ensure that all required manuals or documentation have been received; and
issue interim or completion certificates or goods received notes, as appropriate and in
accordance with the contract.
REFERENCES
PPDA 2015
