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DIRECT SHOPPING ON BASIS OF QUOTATIONS

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DIRECT SHOPPING ON BASIS OF QUOTATIONS

Post  freddy.mbeyella on Thu Dec 10, 2009 7:04 pm

I tend to agree with GadielCM's, point of view. National/International Shopping procurement method as prescribed in Rg 68/GN 97 is one the non competitive methods used in procurement of standard low value materials. The procedure is similar to competitive bidding. The main difference is limit of authority for approval and processing time. Direct shopping as shown in First Schedule, was provided to assist PEs in procuring unplanned requirements. That is why limit of authority for approval was vested to Accounting Officer and Head of Department to whom procurement has been delegated. Considering the limit of approval ie. Tshs.10million and 3Tshs. Million for Accounting Officer and Head of Dept respectively following same procedure as National/International Shopping will not be efficient and economical.

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Re: DIRECT SHOPPING ON BASIS OF QUOTATIONS

Post  GadielCM on Mon Dec 07, 2009 6:30 pm

Let me contribute and comment on the issue of Direct Shopping as in first Schedule of GN97. What I know from this schedule is that it is another procurement method given to the Accounting Officer and Head of Departments in a PE to procure so that to shorten the procurement process time with aspect to their limits given.

The procedure is as follows;- Once the requirement raised by the user and get the approval from AO, CEO, then the PMU solicit quotations from supply market with minimum of three quotations, and if found the cost of quotation is within the head of department, let us make 2.5m per particular order, then the head of department can approval to proceed with issuing an LPO after AO's, CEO's approval and if any neccessary before AO's approval, such procurement should be endorsed by Secretary of the appropriate tender board and any other two members to tender board. this approval by tender board, normally we use circular resolution as it is in RG 41(6), by circulation of those members the relevant paper to endorse, then an LPO can be raised.

While in Rg 68/GN 97, it states about the National/International Shopping; this is the procurement method as prescribed in Rg 63/GN 97. It is the method used to obtain the minimum of three quotations from the supply market and compare the lowet submited quote. The issue here to consider is the price, validity of the quote and delivery period and that the specifications of the user and then you award. In other hand it is the method known as Competitive Quotation which used up to 80million for goods as in SECOND SCHEDULE OF GN 97. By virtue of this regulation, we have to consider the limits of procurement as in this schedule, Tendering time to give the suppliers, if it is National Shopping-7days, and if it is International shopping-14 days, this can be done apparently to preparation of Request for Quotation/Invitation for quoation with pages up to 30 as issued by PPRA and it comprises the details as in Rg. 68(7)/GN 97.

In other hand, the Rg. 70 and 71/GN 97 is the procurement method from the single contractor /supplier/service provider with its conditions. If it is enough you can call it Single source in low value items, or routine items/leverage items or bottleneck items and not critical items as it is known in Supply model portfolio in aspect of supply chain management.

Conclusion: after clarification of the three methods of procurement, let me say this, the Only different between Rg 68 and that of first schedule is that in the first schedule, You dont need/ consider much the tender time, e.g 7 days, or 14 days as in Rg 68/ National shopping/ International shopping. You as a buyer, you obtain directly quotes from different sources of supplier and then you make the comparison of their quotes as I mentioned above and the you award ther order within a short time of period.

I submit, with the hope to get more inputs from other contributor.


Last edited by GadielCM on Tue Dec 08, 2009 1:30 pm; edited 1 time in total (Reason for editing : correction of spelling)

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Re: DIRECT SHOPPING ON BASIS OF QUOTATIONS

Post  RSM on Mon Dec 07, 2009 12:29 pm

Freddy.Mbeyella

I think the confusion is brought by the word direct- otherwise International and National Shopping in accordance with Regulation 68 of GN 97 is basically the use of quotations obtained from several suppliers to compare prices. The word direct shopping is used in the First Schedule of GN. 97. and some people have suggested that the method of procurement which appears in this schedule should be Shopping or Minor Value Procurement. Shopping in this case meaning getting quotations from several suppliers, and minor value according to REgulation 71 meaning direct purchase from a supplier for low value items.

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DIRECT SHOPPING ON BASIS OF QUOTATIONS

Post  freddy.mbeyella on Thu Dec 03, 2009 10:28 pm

Would you please, clarify on the meaning of direct shopping by quotation. What is the procedure to follow? What type of documentation is required? How and who performs evaluation?

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