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METHODS OF PROCUREMENT

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METHODS OF PROCUREMENT

Post  freddy.mbeyella on Thu Jun 24, 2010 1:24 pm

RSM, the limit of application for Minor Value is shown in the Second Schedule and not First Schedule. It is last item in the list.

The way I understand Minor Value Procurement is different from direct shopping on quotations basis specified in the First Schedule. The said schedule provides window for PEs to procure unplanned requirements which may crop out during the financial year taking into account approval limit per contract per year. The procurement process is simplified to enable PEs acquire requirement efficiently and economically.

The process entails obtaining quotations directly from three different suppliers, analyzing quotations to determine compliance with specified requirements and comparing prices to establish the best evaluated bid. The approval may be made by Head of Dept or Accounting Officer depending limit of authority. In any case the procurement must be endorsed by Secretary and two members of respective tender board. In fact direct shopping on quotations/contracting basis covers issues you have given as example. But as you are saying in some cases it would be logical to apply the procedure for Minor Value procurement especially where prices for requirements in question are reasonable and there is no advantage for seeking three quotations.

On the other hand Minor Value Procurement is one of tendering method which need to be included in the Annual Procurement Plan. Fore example, you have a requirement for generator estimated at Tshs.9.5 Million; this amount can not be authorized by Accounting Officer whose limit of authority as shown in First Schedule is Tshs. 7.5 Million per contract so to procure such item you may use MVP. The determinant factor for using MVP is value of procurement and absence of advantage in comparing quotations. The procedure for procurement and approval is the same as other methods of tendering.


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Re: METHODS OF PROCUREMENT

Post  RSM on Mon Jun 07, 2010 12:53 pm

RJM

I concur with your clarification for Minor Value Procurement. Actually it is a method which many times is used by a Procuring Entity without realising it.

Take a simple example, you have a meeting, and you send someone to the nearest shop or restaurant to buy bites for the meeting at the price which they sell those items to all their customers i.e. the price that appears in their menu. This is one case of minor value procurement.

However, I have a question - shouldn't all minor value procurement be approved only by the departmental head for the purpose of ensuring efficiency?

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Re: METHODS OF PROCUREMENT

Post  RJM on Wed Feb 24, 2010 9:58 pm

Minor value. Regulation 71 states that PE may procure goods, services or works directly from supplier/service provider/contractor. What is direct procurement? Does it mean PE can procure requirement worth the amount stated in schedule without comparing quotations?
Freddy, I think the spirit of R71/97/2005 is for PE to procure direct from the supplier/service provider/contractor without comparing the quotations as outlined in the First Schedule [not Second Schedule] as longer as the procurement at hand satisfy the conditions given under the referred regulation OTHERWISE if the PEs have to compare the quotations as per the schedule then this is taking us back National and International Competitive Quotations under R68/97/2005 whereby PEs are required to obtained at least three quotations from the suppliers. Is it the time to harmonize the referred regulation and schedule?

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Re: METHODS OF PROCUREMENT

Post  Michael Chilongani on Wed Feb 24, 2010 12:19 am

Mr Mbeyella has raised a number of issues. For the moment, i would like to give my opinion on bullet number I. regarding Direct contracting for works as stipulated under R.7o of GN 97.

In concurance to Mr. Mbeyella's objection, it is true there is an error under R70(e) that errorneusly refers the threshlod being prescribed in the third schedule instead of 2nd shedule. This is an error that needs correction by the Authority.

To my opinion, Single Source as so prescribed in R69 is the same as Direct Contracting referred under R70. The only difference is that while single source procurement has been inferred to be for GOODS AND SERVICES, Direct Contracting has been construed to be for WORKS otherwise the two regulations (R69 & R70) and their respective subregulations are basically the same.

In view of the above, the WORKS column in the second schedule represents the threshold for direct contracting so referred under subregulation 70(e) subject to amendments to make the word THIRD read SECOND.

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METHODS OF PROCUREMENT

Post  freddy.mbeyella on Tue Feb 23, 2010 9:50 pm

Part VI of the Public Procurement (goods, works, non consultants’ services and disposal of public assets by tender) G.N. No. 97 provides different methods of procurement. I have no problem with some methods such as International competitive tendering, National tendering, restricted tendering; International and national shopping and Single as their application has been properly covered. Other methods from my point view are not clear. For discussions I have pointed out some of issues which require your contributions:

(i) Direct contracting for works. Regulation 70(e) states estimated value of works which not exceed limit prescribed in 3rd Schedule. The referred schedule is not correct. Even in the correct schedule-2nd the amount for direct contracting is not indicated. What is your opinion?
(ii) Minor value. Regulation 71 states that PE may procure goods, services or works directly from supplier/service provider/contractor. What is direct procurement? Does it mean PE can procure requirement worth the amount stated in schedule without comparing quotations?
(iii) Turnkey Regulation 72. Is this method of procurement or contracting? The last paragraph of referred Regulations states “Supply and installation of equipment ----- will be provided by single contractor under contract, procured competitive method of procurement”
(iv) Force account and Procurement under private partnership and other private sector participation arrangement. There are not methods of procurement. I stand to be corrected. The reasons for using force account are clear. What I dont understand is the procedure and documentation. When it comes to payment will personnel engaged under force account be paid separate package on top of their salary? Please, Enlighten me
(v) Procurement of commodities. It is logical to make multiple purchases from short listed suppliers. But is this method or procedure of procurement?

If tender documents may permit tenders to be sent by fax or telex under procurement of commodities why same should not apply for urgent purchases?

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