How will the Procurement Law encourage participation of local contractors?
All contracts to be procured through National Competitive Bidding (NCB) and contracts below specified thresholds are reserved for local contractors. However, where a foreign bidder indicates interest in NCB, it shall not be included but its bid shall be subjected to the application of a margin of preference in favour of local bidders. Margin of preference may also apply to tenders under all International Competitive Bidding (ICB). In all situations, the limit and formulae for computation of margins of preference, to be set by the Public Procurement Board, shall be indicated in the Bidding Documents.
Who is responsible for registration of contractors?
The Ondo State Bureau of Public Procurement (ODBPP) is empowered by Law to maintain a database of contractors and service providers and to describe their classifications and categorizations. However, each Procuring Entity is expected to maintain a registered supplier list drawn from the Ondo State Bureau of Procurement (ODBPP) master list for their regular procurements and from which ‘Request for Quotations’ (RfQ) should be involved.
Explain what is Lateral Conversion
Movement from one cadre to another without being stepped down to a lower grade. However, this grace does not confer any other privilege or right that is not in accordance with the Schemes of Service to the affected staff. After the transition period, the normal rules and procedure for conversion shall apply to any application for conversion to Procurement Cadre.
How do you intend to fill the gaps for the Director of Procurement?
Through internal and external advertisement where necessary. This is expected to be carried out before the end of 2018.
On conversion to Procurement Cadre, what will be the effective date for promotion purposes?
Will the officer retain the former level and step after conversion?
Yes. Depending on the date of Conversion, it shall be either 1st of January or 1st of July of the promotion year. Re-designation will be without prejudice to date of present appointment within the transitional period.
What is the relationship between the Procurement Officers, Auditors, Budget Officers and Store Officers?
Each cadre has its own responsibility and job description and are to work together as a team. Some may have representatives in the Procurement Planning Committee of their MDAs.
Is there a special salary scale and allowance for Procurement Officers
No, but a performance management system to incentivize the Procurement Officers may be put in place at the discretion of the Procurement Board.
Which MDA is responsible for the promotion and discipline of the Procurement Officer?
Civil Service Commission but will delegate the initiation of the process to the ODBPP.
What are the requirements and qualification for conversion into the Procurement Officers’ Cadre?
Presently, any basic University degree or HND in any discipline will suffice until the end of the transitional period.
Are the Procurement Officers under the Civil Service Commission?
Yes, except those employed directly by Government Agencies or Parastatals and not through the Civil Service Commission
How does the Public Procurement Law affect the Local Governments Areas in the State?
The Law applies to Local Government.
Is the Procurement Department under the Finance or Administration Department?
The Accounting Officer is charged with line supervision of all Procurement processes through the MDA’s Procurement Department or Unit under the Ondo State Public Procurement Law. The Procurement Department/Unit is directly under the line supervision of the Accounting Officer and not the Finance or Administration Department
What is the structure of Procurement Department in MDAs?
The size and structure depends on the category of the MDA in terms of budget size and nature. Key spending MDAs like Ministries of Works and Infrastructure, Health, Education, Lands and Housing, Agriculture etc will have full-fledged Departments while smaller MDAs could operate a Procurement Unit. In any case, the Procurement Department/Unit reports directly to the Accounting Officer.
Which Department determines prices of works, goods and services to be procured in an establishment out of the following: • Procurement Department • Works and Services • Audit • Budget & Planning?
The Procurement Department is responsible for conducting market survey for all items to be procured under Goods category but may be supported by the User Department or a relevant MDA if the item is highly specialized or technical in nature. For procurement of Works, Ministry of Works and/or Lands and Housing are responsible for vetting the prices while the estimated fee for Consultancy Services is built up from the Terms of Reference (TOR) drafted by the User Department. Estimated prices should be set out in the Procurement Plan which is endorsed by the Procurement Planning Committee made up of broad representation within the MDA. Final approval with respect to the operational feasibility of the Procurement Plan shall be given by the Bureau.
Does the Law still have room for Direct Labour in the System?
The Law provides for Direct Labour (Force Account) to be used in appropriate circumstances, giving regards to the prior review threshold set by the Procurement Board with benchmark price and ‘No Objection’ from the Bureau.
How will the Law be implemented in the Hospital Environment where most supplies are on emergency basis e.g. Drugs for specific epidemics, Oxygen, Medical Materials or equipment?
Genuine medical emergencies will be covered by the emergency provisions mentioned above. Most medical supplies are required for regular medical services and should be procured through normal arrangements.
How does the Law take care of emergencies?
There is provision for Emergency Procurement where the State is either seriously threatened by or actually confronted with a disaster, catastrophe, war, insurrection or an Act of God or where the condition or quality of goods, equipment, building or publicly-owned capital goods may seriously deteriorate unless urgent action is taken. In these circumstances, a procuring entity may initiate direct contracting.
How do we ensure that there is value for money under the new Public Procurement regime?
The fair and transparent procedures in the Law are designed to encourage competition among suppliers who are qualified to perform the contract and who put in a responsive bid. Greater competition should lead to value for money.
Will MDAs have a Procurement limit or will all Procurements be done by the Bureau?
The MDAs will carry out all their own Procurements, subject to Certificates of ‘No Objection’ and Compliance being issued by ODBPP.
How do you intend to ensure that the Procurement process does not delay the implementation of Projects at MDA level?
The Bureau shall encourage procuring entities through proper planning of their requirements to begin the Procurement process in sufficient time for goods, works and services to be made available by the time required. The Law also provides that the period between the opening of bids and the award of contract shall not exceed 3 months. This is the major reason
What will be the role of Ministerial Tenders Board (MTB) in this new Public Procurement Regime?
On the strength of the Ministerial Tender Boards’ recommendations, the political head of the MDA will be the approving authority for contracts awarded by that Ministry, though contracts above a threshold will also require a Certificate of Compliance to be issued by ODBPP.
What are the specific roles of the Public Procurement Bureau in the award of contracts?
ODBPP oversees the Procurement system and issues a Certificate of No Objection and Compliance prior to the award of contracts above a threshold.
What are the roles of Civil Society in the Public Procurement Regime?
Civil Society has a role in monitoring performance to ensure that it is fair and transparent and carried out in accordance with the Law. It is intended that one member of the governing Board of the Bureau should be from a Civil Society Organization. CSOs and other interested members of the public may attend bid openings.
Who will be responsible for checks and balances of the Bureau?
The appointment of the governing Board will provide oversight of the actions of the Bureau staff to ensure that they carry out their responsibilities impartially and in accordance with the Law.
How is the whole system expected to function under the new Procurement regime?
It is expected that the new Procurement system will make for more efficient conduct of tendering managed by a professional Procurement Officer’s cadre, with fewer opportunities for corruption and malpractices, so that contracts are awarded to the supplier offering best value.
What are the roles of the Accounting Officers (i.e P.S/Secretary/DG/GM etc) under the new Procurement regime?
The Accounting Officer is charged with line supervision of the conduct of all Procurement processes. He/she has overall responsibility for the planning and organization of tenders, evaluation of tenders and execution of all Procurement, as well as certain specific responsibilities that are set out in Section 20 of the Law.
What are the roles of a Procurement Officer?
The Procurement Officer primarily assists the Accounting Officer to drive and facilitate the Procurement process in accordance with the provisions of the Law. In summary and, by virtue of his/her training, he/she ensures that each stage of the Procurement process from initiation to contract award is carried out according to the requirements of the Law.
What is the difference between the old system of Procurement and the new system?
In the old system, Procurement is centralized with contract award decisions taken by a Central Tenders Board. Operations are guided by Financial Regulations/Treasury Circulars on public expenditure as issued by the Ministry of Finance. Over time and as Procurement expanded the FR/TC became grossly inadequate, giving room to discretionary application and promoting corruption. In the new system, Procurement is decentralized but with a central regulation through a Procurement Law. Responsibility for compliance rests with the Accounting Officer of the MDA and enforcement through a specialized Regulatory Bureau. The new system is robust and effective and gives a step by step approach for each category of Procurement through the use of various standard documents and manuals.
What does the Public Procurement Law seek to achieve?
The Ondo State Public Procurement Law is based on the United Nations Commission for International Trade Law (UNCITRAL) model which is a properly regulated Procurement system benchmark on international best practice. The model draws from different legal cultures; balances the interest of foreign and domestic bidders; promotes transparency and allows great flexibility in the use of the provisions of the Law. The Law also established the ODBPP and its governing Board to formulate policies and guidelines for the application of the Law and ensure compliance by all public bodies.