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Procurement & Concession Hub

All we need to know about procurement and concession

Facts about Procurement

Importance of Procurement

Effective public procurement is needed if the government wants to management its resources well. This is important for better use of public resources for development outcomes.   Procurement processes affect a substantial amount of our national budget. Approximately 70% of our national budget is involved in this process. This represents enormous spending of state resources and the desired outcomes should be of interest to all. How are funds allocated in the national budget used for procurement of goods, works, and services? Are we getting value for money when we procure goods, services and works? In this respect the role of the Public Procurement and Concession Commission (PPCC), is important in securing the credibility of the procurement process.

What is Procurement

It is the acquisition by contract of goods, services or works. The procurement process begins with planning and ends with the completion of the post-contract phase

What is Concession

A grant of land, goods, services, works, or property especially given by a government in return for services or for a particular use.

Methods of Procurement
  • Sole Source
  • National Open Competitive Bidding (NCB)
  • International Open Competitive Bidding (ICB)
  • Restricted Bidding
  • Request for Quotations: Alternative for Small Scale Purchases
The Inter-Ministerial Concessions Committee

The Inter-Ministerial Concessions Committee shall give approval if appropriate for the commencement of negotiations with the next highest bidder in that order of ranked bidders until negotiations are concluded and all
applicable conditions are fulfilled.

The Procurement Committee

The Procurement Committee shall:
(a) Review procurement plans in order to ensure that they
support the objectives and operations of the entity and
comply with the national budget process;
(b) Review the schedules and specifications for procurement
and also ensure that the procurement procedures to be
followed are in strict conformity with the provisions of
the Act, its operating regulations and guidelines;
(c) Oversee all the procurement functions of the Procuring
Entity.
(d) Ensure compliance with this Act and its operating
guidelines by the Procuring Entity.
(e) Review the activities of each step of the procurement
cycle leading to the selection of the lowest responsive
evaluated bid by the Procuring Entity;
(f) Give approval to the Bid Evaluation Panel or otherwise
to enable the Procuring Entity or Procurement Unit to
continue with the procurement process;
(g) Provide the Commission with reports as required,
including quarterly reports;
(h) Confirm the range of acceptable cost of items to be
procured in line with the available funds and approved
budget;
(i) Facilitate contract administration and ensure compliance
with all reporting requirements under this Act;
(j) Ensure that stores and assets are disposed of in
compliance with the provisions of this Act.
(k) A Procurement Committee may engage the services of
such consultants and advisers, or co-opt persons with

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specialized expertise as may be required for the proper
and efficient discharge of its functions.

The Procurement Unit

The Procurement Unit shall be staffed with persons trained and
knowledgeable in procurement and charged with carrying out, on an ongoing
basis, functions related to procurement.
(3) The head of the Procuring Entity shall determine the
composition of the Procurement Unit but every Procurement Unit shall
consist of not less than two (2) officials charged with the responsibility of
budgeting, expenditure, and the administration of public procurement for the
entity.
(4) The Head of the Procuring Entity shall ensure that the
Procurement Unit is provided with adequate resources.
(5) The functions of a Procurement Unit shall include:-
(a) Planning of procurement
(b) Preparation of invitations to bid and of bidding
documents
(c) Publication and distribution of invitations to bid
(d) Receiving and safeguarding of bids
(e) Conducting bid opening procedures in accordance with
Sub-Section 5 of Section 61 of this Act
(f) Performance of secretarial services for the respective
procurement committees

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(g) Administering the implementation and monitoring of
contracts
(h) Assessment of the quality of the procured goods, works
and services
(i) Sourcing and profiling of all suppliers, contractors and
consultants, and the maintenance of a database for that
purpose
(j) Such other functions as may be conferred by any other
enactment
(6) Appointment of staff to the Procurement Unit may be made
subject to certification and qualification requirements that shall be instituted
by the Commission with advice from the Civil Service Agency.
(7) The Procurement Unit shall operate under the supervision of
the Procurement Committee.

The Bid Evaluation Panel

Each Procurement Committee shall constitute a Bid Evaluation
Panel with the required expertise as and when required
(2) The Bid Evaluation Panel shall be responsible for the evaluation
of bids in accordance with the predetermined and published evaluation
criteria as outlined to bidders in the bid documents in accordance with this
Act and shall prepare and submit an evaluation report for the consideration
of the Procurement Committee.
(3) The Commission may make rules to regulate the composition
and activities of the Bid Evaluation Panel. 

Goods are tangible items in any form including raw
materials, products, equipment and objects in solid, liquid or gaseous form, as well as services incidental to the supply of the goods where the value of those incidental services are insignificant in relation to the value of the goods.

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Procurement of services is the process of getting an intellectual, technical or advisory nature, including consultancy services.
These incidental services are insignificant in relation to the value of the goods.

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Works are associated with the construction, reconstruction, demolition, repair or renovation of a building or structure or surface and includes site preparation, excavation, assembling, installation of plant, fixing of equipment and laying out of materials, decoration and finishing, and any incidental activity under a works contract. Those incidental services are insignificant in relation to the value of the goods.

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  1. Sole Source
  2. National Open Competitive Bidding (NCB)
  3. International Open Competitive Bidding (ICB)
  4. Restricted Bidding
  5. Request for Quotations: Alternative for Small Scale Purchases

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  • Procurement thresholds determine what action is required based on the estimated cost of the item being procured.

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Procurement is the process of purchasing goods or services, usually in reference to business spending.

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Important Contacts

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