PRESENTATION ON TENDERING AND PROCUREMENT PROCEDURES
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1 PRESENTATION ON TENDERING AND PROCUREMENT PROCEDURES 1
2 Introduction Objective of the training Overview of procurement methods Procurement processes and tendering procedures Procurement contracts
3 To build capacity of contractors so as to maximize economy and efficiency; To promote competition amongst the contractors; To facilitate the promotion of local contractors for economic development To increase public confidence in procurement process
4 Definition of Procurement - Acquisition by purchase, rentals or hire purchase, tenancy or any other contractual means of any type of works, assets, services or goods. Importance of Procurement - Procurement of goods, works and services in any institution contributes greatly to the success of the institution, depending on how well it is conducted. -Majority of Kenya Vision 2030 flagship projects to be delivered through public procurement.
5 1. Open Tender 2. Two-Stage Tendering 3. Design Competition 4. Restricted Tendering 5. Direct Procurement 6. Request for Quotations (RFQ) 7. Low Value Procurement 8. Force Account 9. Electronic Reserve Auction 10. Framework Agreement 11. Request for Proposals consultancy services (QCBS), 12. Competitive negotiations
6 o Section I: Invitation to tender (tender notice) o Section II: Instructions to tenderers All amendments to the Instructions to Tenderers are introduced in the Appendix to Instructions to Tenderers. Kindly, note that the contents of Appendix to Instructions to Tenderers prevails over those of Instructions to Tenderers. o Section III General conditions of contract
7 o All amendments to the General Conditions of Contract are introduced in the Special Conditions of Contract. Kindly, note that the contents of Special Conditions of Contract prevails over those of General Conditions of Contract. o Section IV Special conditions of contract o Section V Technical Specifications/Scope of Works /Terms of Reference o Section VI Drawings o Section VII- Bills of Quantities (BOQs) o Section VIII Standard Forms
8 The invitation to tender is the tender notice placed in the Newspapers and the organization s website. The contents of the tender notice and the conditions should be read and understood properly before submission of bids. Instructions to tenderer s conditions are supposed to guide the tenderer to fill the tender document properly. You are requested to read and understand the same. Tenderers should note the date and venue of pretender site visits/ pre- bid conference Tenderers should note the date and time of closing/opening of the tenders.
9 The tender validity period may be 60 days, 90 days or 120 days from the closing date of the tender e.t.c as may be indicated in the Appendix to Instructions to tenderers. The tender security validity period is 30 days beyond the tender validity period. For example if the tender validity period is 120 days then the tender security validity period is 150 days i.e (120+30) days. The evaluation criteria i.e preliminary, technical and financial are indicated in the tender document. The standard forms are supposed to be duly filled
10 Ensure you provide the correct telephone number/mobile, address, postal address and code when purchasing/submitting tender documents for ease of communication e.g when issuing addenda, letters and any communication from the procuring entity. The Bills of Quantities (BOQ s) /rates at the schedule of requirements should be duly filled and the Grand Total Summary transferred to the Form of Tender. Arrange your Appendices/Annextures to the tender document in a sequential manner using separators for ease of reference.
11 Certified copy of Registration certificate /Certificate of incorporation; Form of tender dully filled, signed and stamped Confidential business questionnaire dully filled, signed and stamped Evidence of physical registered office(attach either lease agreement, title deed, electricity bill, water bill, rental payment receipts) Certified copy of Valid Single business permit from county governments Submission of original & copy of tender document properly bound and paginated in the correct sequence and all pages MUST be initialled. Registration with NCA in the specified category ( provide certified copy of registration and renewal certificate where applicable)
12 valid tax compliance certificate; Certificate of pre-tender site visit/pre-bid conference Bid declaration form dully filled, signed and stamped Duly filled signed and stamped Appendix to form of tender; Litigation history (provide current sworn affidavit) All the forms/documents are duly filled signed and stamped where required; Any alterations are duly counter signed; Tender is unconditional No counter offer;
13 Similar previous experience Professional qualification of Key Personnel Experience of key personnel Firms experience Equipment holding Financial capability liquidity ratio CA/CL Work methodology Other technical requirements that may be specific to the tender in question.
14 Please note that it is NOT necessarily the bidder whose tender sum/bid sum was the lowest pricewise during tender opening that is awarded the tender. The award criteria shall be indicated in the document The tender could be a two envelope or one envelope; - If its one envelope the tender shall be awarded ` to the lowest responsive bidder - If its two envelope where you submit technical bid separate with the financial bid, then a formula for award shall be indicated-either 80/20 or 70/30 depending on what is indicated in the tender.
15 1. No correction of errors Section 82 of PPADA,2015 The tender sum as submitted and read out during the tender opening shall be absolute and final and shall not be the subject of correction, adjustment or amendment in any way by any person or entity. 2. Extension of tender validity period ( Sect 88) Before the expiry of the period during which tenders shall remain valid. An accounting officer shall give in writing notice of extension to each person who submitted a tender Tender security shall be forfeited if a tender is withdrawn after a bidder has accepted the extension of bidding period. 3. Refusal to sign contract Sec. 136 If the person submitting the successful tender refuses to enter into a written contract he or she shall forfeit his or her tender security and the procurement process shall proceed with the next lowest evaluated tenderer
16 Amendments or variations to contracts Sec 139 (4). Any variation of a contract shall only be considered after twelve months from the date of signing the contract. 4. Interest on overdue amounts and liquidated damages Sec. 140 (a) The procuring entity shall pay interest on the overdue amounts Sec. 140 (b) The contractor shall be liable to liquidated damages for delayed performance. 5. Performance Security Sec. 142 (1) Successful tenderer shall submit a performance security equivalent to not more than 10% of the contract amount before signing of signing the contract
17 10% performance security shall not apply to tenders below the prescribed threshold and those reserved for youth women and persons with disability and for these categories, the performance security may be waived or fixed at not more than 1% of the contract price. 6. Advance payment Sec.147 (1) under exceptional circumstances advance payment may be granted and shall not exceed 20% of the price of the tender and shall be paid upon submission by the successful tenderer to the procuring entity of an advance payment security equivalent to the advance itself from a reputable bank.
18 No contract is formed unless written contract is signed by parties Based on tender document To be prepared in line with award decision Signed after 14 days of notification Signed by AO or authorised officer by AO in writing No price variation upwards within 12 moths from date of contract signing Variation based on consumer price index (KNBS) or monthly inflation rate by CBK Quantity variation of goods & services not to exceed 15% of original contract quantity Quantity variation of works not to exceed 25% of original contract quantity
19 Variation to be executed within contract period Cumulative value of variation not more than 25% of contract price PE to pay interest on overdue amounts Contractor liable to liquidated damages for delayed performance Performance security (may be waived in P&R or fixed at no more than 1%)
20 Advance payment allowed if specified in tender document Not payable before contract is signed Not to exceed 20% of tender price & must be secured Advance payment used for unrelated activities is debt Tenderers may sub-contract if not prohibited by tender document
21 Sec. 167 (1) A tenderer may seek administrative review within 14 days of notification of award or date of occurrence of the alleged breach at any stage of the procurement process A request for review shall be accompanied by a refundable deposit and such deposit shall not be less than 10% of the cost of the contract Sec Review board may dismiss with cost a request if it of the opinion that the request frivolous or was made solely for the purpose of delaying the procurement proceedings or performance of a contract and the applicant shall forfeit the deposit paid
22 Sec. 175 (1) A person a grieved by a decision made by the Review Board may seek judicial review by the High Court within 14 days from the date of the review Board s decision, failure to which the decision of the Review Board shall be final and binding to both parties.
23 Thank you Asante Sana
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