LGA PROCUREMENT CAPACITY BUILDING STRATEGY FORMULATION WORKSHOP - PowerPoint PPT Presentation

PMO-RALG ENHANCEMENT OF PROCUREMENT CAPACITY OF LOCAL GOVERNMENT AUTHORITIES PROJECT (EPC – LGAP) LGA PROCUREMENT CAPACITY BUILDING STRATEGY FORMULATION WORKSHOP STRENGTHENING PROCUREMENT PERFORMANCE OF LOWER LOCAL GOVERNMENTS Dodoma, 11-13 June 2013 1

OUTLINE OF THE PRESENTATION Problem statement  Issues related to low procurement performance in  Lower Local Governments (LLG) Development objective (desired outcome)  Strategic objectives  Key interventions  2

PROBLEM STATEMENT  Need to address inadequate procurement management and practices in Lower Local Governments NB: In this presentation focus is on Lower Local Governments, but factors and issues at Higher Local Government level that impact on LLGs are also covered 3

INSTITUTIONAL & REGULATORY ISSUES  Low compliance to PPA and poor use of basic procurement principles at LLG level  No clear division of roles & responsibilities between various actors involved in LLG procurement  Many different systems used by LLGs in procurement process (selection, approvals, evaluation, awards, accountability, etc)  Absence of standard procurement implementation tools (contracts, tender documents)  Multiple procurement procedures and processes depending on sector, type of project, and financier  LGA Financial Memorandum: not fully harmonized with PPA; LLGs adequately covered? 4

GOVERNANCE ISSUES  Good governance practices at village level: approval selection of project committees by Village Assembly; awards contracts approved by VC; project hand- over/final report  BUT : cases of low transparency, conflicts, inadequate accountability related to procurement in LLGs  AND : Need of well-defined roles & responsibilities in decision-making/governance in LLG procurement i.e. Oversight; Accountability ; Delegation levels; Quality assurance in line with recommended procurement practices  Civil Society Organisations in regions/districts: low public procurement knowledge, often lack of interest (as observed in Base Line Study) 5

PROCUREMENT MANAGEMENT  Scope: around 15,000 villages and mitaa  Inadequate human resource with required skills to implement LLG procurement compliant to PPA  Many VEOs with low qualifications (> 60% Std 7)  BUT : Recruitment new VEOs by PO-PSM (qualifications: Form IV + basic certificate in LG administration)  Members of Village Councils elected every 5 years with mixed education background  Low awareness observed in LLGs on thresholds, procurement methods and procurement principles (publicity, competition, evaluation, awards, implementation, etc) 6

PROCUREMENT MANAGEMENT (2)  Procurement in primary schools, water committees, project committees: is this adequately delegated and formalised?  Procurement of sector Grants and service units not well captured in procurement reports  Procurement competences of actors not well described: VEO, Village Council, project committees  VEO is multi-tasked: able to do all work efficiently?  Most projects use standard drawings, specifications, BoQ/material requirements  BUT: Project committees / Community Management Committees adequately prepared? Low understanding of drawing, specifications and M&E tools 7

PROCUREMENT MANAGEMENT (3)  HLG level: work in progress with increased level of qualifications of (new) LGA procurement staff; many procurement graduates on the market; on-going professionalization (required registration with PSPTB, Continuous Professional Development, etc)  LGAs cover many sectors (agriculture, education, health, works, water, etc) and have several different procurement chains which require specific skills (unit vis-à-vis committee)  Increased use of SBDs (HLG level), but inadequate ability to fill data sheets and special conditions of contracts 8

PROCUREMENT MANAGEMENT (4)  Weak LGA procurement areas:  Preparation of Annual Procurement Plan  Contract Management  Procurement record keeping  Publication of awards  Low use of PMIS  Aggregation of common goods and supplies: reluctance and low understanding to use of call-off orders for Common Use Items & Services (CUIS) by using Framework Contracts 9

MARKET  Local fundis: low understanding of drawings, specifications, material requirements  Often long distances to markets and suppliers  Low understanding of providers of procurement requirements  Inadequate capacity / ability to analyse the market 10

PROCUREMENT COMPETENCES & SKILLS IN LGA’S  Procurement training has low priority in LGAs  Training needs derived from OPRAS and Departments, but procurement not often captured  No structured training for VEOs, Village Councils and Service Units in procurement  Inadequate funding of LGA Capacity Building Plans  Most PMUs have no sub-vote (yet) and therefore a challenge to get funding for procurement training  Staff put higher value to individual training needs and less on capacity objectives of LGA as organisation 11

PROCUREMENT COMPETENCES & SKILLS IN LGA’S (2)  RAS/LGAMSS is taking up new role in follow-up, monitoring and advising LGAs (but inadequate capacity in procurement)  HLGTI provides pre/in-service certificate and diploma courses in LG Administration, Finance & Accounting for VEOs & WEOs, which include procurement as subject (but issue of 60% VEOS having STD VII)  PPRA provides on request procurement tailor-made training (which are funded by the Procuring Entity)  Other Training Entities provide procurement training to LGAs (Standard Courses; other courses) 12

STRATEGIC OBJECTIVES & INTERVENTIONS Objective : Strengthened procurement capacity in LLGs Performance Indicator : Increased Compliance and Value for Money in LLG procurement Strategic Interventions:  Procurement Guidelines for LLGs developed & disseminated  Competences and skills of LLG procurement actors enhanced  Professionalization of the LGA procurement function strengthened  Procurement management tools and systems introduced and applied in LLGs  LGA procurement training strategy developed and operational 13

PROCUREMENT GUIDELINES FOR LLG’S Objective : To develop and introduce standardized, harmonized LLG procurement guidelines  Set the regulatory & institutional framework for procurement in LLGs (roles &responsibilities in procurement process i.e. preparation, invitation, receiving, evaluation, approvals, award, contract management)  Support achieving increased compliance to PPA and value for money  Set framework for addressing legal issues and conflicts by defining roles & responsibilities in oversight, accountability, delegation and Quality Assurance 14

PROCUREMENT GUIDELINES FOR LLG’S (2)  Requires the development of a customized LLG procurement operational manual (guide)  Collaboration required between PPRA and PMO-RALG  Importance of simple language (Kiswahili) commensurate with the target group 15

COMPETENCES & SKILLS Objective : To increase competence and skills of actors with main responsibilities in LLG procurement  Describe procurement competences and skills of VEOs, members VCs, Service Unit Committees and Project Committees  Update Scheme of Service of VEOs and ‘job descriptions’ of members of committees  Need to reflect well the differences in training needs of Village, Mtaa and District Councils  New LLG staff: ensure procurement skills are adequately covered in the basic LG Administration certificate courses  Existing VEOs: see training strategy 16

PROFESSIONALIZATION OF LGA PROCUREMENT FUNCTION Objective : to have capacitated professional procurement cadre in LGAs  Clarify PMU structure: define PMU establishment (type of LGA; volume of procurement); adequate remuneration levels (to retain staff); use of PMU sub- vote (502E); responsibilities PMU for procurement at LLG and service unit level, etc  Define competences of procurement professionals and technicians (new areas: e-procurement, ICT, end-user satisfaction, research, legal; update Scheme of Service  Clarify the position of procurement/supplies technicians in other LGA departments (stores officers, hospitals, etc)  Update LG Financial Memorandum in areas needed 17

PROCUREMENT SYSTEMS & TOOLS - LLG Objective : to have adequate procurement systems and tools in place and used in LLGs  Develop and introduce a simplified, standard LLG procurement operational manual as per guideline  Develop tools and systems for procurement (bid documents incl. contracts, evaluation guidelines, receiving/issuing of materials, etc), contract management, record keeping, quality assurance and reporting (also linked to HLG MIS: APP, EPICOR, PlanRep)  Consider the same for Service Units procurement  Facilitate availability of adequate equipment and working tools in LLGs 18