THE PROCUREMENT/BIDDING

PROCESS/CYCLE
BY:BEINEBYABO ADRIAN
UMI CONSULTANT
TEL:0772-404715
EMAIL:beineadrian@yahoo.co.uk
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Introduction/Meaning of bidding
The procurement process is also referred to as
the procurement cycle. Others call it the
procurement life cycle.
Bidding is an offer (often competitive) of
setting a price one is willing to pay for
something. A price offer is called a bid.

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The Procurement Process
The Procurement Process is a formal way by which
products (goods, services, or works) are acquired
by an organization from external suppliers.
The procurement process begins with planning
and ends with review of the performance of
contract which results into Contract Close out or
Contract termination.
In the public sector, all the steps to be carried out
are laid out in the PPDA Regulations of 2003
A PDE shall apply to the PPDA, if there is a need
to deviate from laid out procedures.
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Procurement management processes
Plan Purchases and Acquisitions (Procurement
Planning)
Plan Contracting (Solicitation planning)
Request Seller Responses (Solicitation)
Select Sellers (Evaluation and award)
Contract Management
Contract Administration
Contract Closure/Termination

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ROLES AND RESPONSIBILITIES IN THE PROCUREMENT CYCLE SUMMARIZED
Procurement Requisition.
Filled with clear
Specs/TOR/SOW
Review of:
Specifications/TOR/SOW
Procurement method
Evaluation Criteria
Potential supply market
Preparation of Bidding Documents e.g:
Instruction to Bidders
Price Schedule
Terms and Conditions
Advertisement and
Invitations for Bids
Receipt and
opening of bids
Sign Contract
Communicate Award
Administrative review
Contract
Management
Delivery
Payment
User Department
Procurement &
Disposal Unit
Accounting Officer
Review of Evaluation
report (approval or
rejection)
Contracts
Committee
Boards / Councils
Evaluation
Committee
(ADHOC)
Confirmation of
Availability of
funds
Contract
Monitoring
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Procurement
Plan and
Budget
Award of Contract
Procurement method
Approval
Approval of Bidding Documents
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Evaluation of
bids

Contract
Performance
Evaluation
Produced by Public Procurement and Disposal of Public Assets Authority (PPDA), 1 Pilkington Road, Workers House 14
th

Floor, P.O Box 3925, Kampala, Email; info@ppda.go.ug Tel. 041- 311100, website: www.ppda.go.ug


Note:
In case this cycle is not adhered
to, please inform the Accounting
Officer or PPDA.

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Boards / Councils
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Plan Purchases and
Acquisitions/Procurement Planning

The Plan Purchases and Acquisitions process
identifies which needs can best be met by
purchasing or acquiring products, services, or
results outside the organization, and which needs
can be accomplished by the implementation
team during project execution. This process
involves consideration of whether, how, what,
how much, and when to acquire.
Plan Purchases and Acquisitions process is a part
of "Planning Phase".
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Plan Purchases and
Acquisitions/Procurement Planning
Procurement Planning is a process of determining
the procurement needs of an entity and the timing
of their acquisition and their funding such that the
entities operations are met as required in an
efficient way. It answers the following questions:
Why do you want to procure ?
What do you want to procure ?
When do you want to procure it?
Where do you want to procure ?
How do you want to procure ?
Who does the procurement?
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Plan Purchases and
Acquisitions/Procurement Planning
Are the resources available and from where?
When are you to use the procurement? (Time
to procure)
When will resources be available?
How can you be more efficient in the
procurement process?

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Plan Contracting/Solicitation Planning

The Solicitation Planning process prepares the
documents needed to support the Request
Seller Responses process and Select Sellers
process.
Plan Contracting process is a part of "Planning
Phase".
Statements/Standard bid documents are
prepared i.e.


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SBDS
Bidding Procedures
Statement of requirements
Contract Conditions
Instruction to Bidders
Bid Data Sheet
Evaluation and Qualification Criteria
Bidding Forms
Standard contracts
Non-disclosure agreements

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Request Seller Responses
(Solicitation/Advertising)
Advertise in News papers, Journals, Magazine,
Electronically
RFPs/RFQs
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Select Bidders (Evaluation and award)

(i) Preliminary evaluation
It is conducted to determine:
Eligibility,
Bidders qualifications
Administrative compliance
Responsiveness.
Evaluation is done on pass/fail basis
Only those that meet all the preliminary
requirements are considered for the next stage.


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Some issues to consider
Signed bid
Indication of lot number
Proper addressing of the bid
Number of copies submitted
Physical address

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Select Bidders (Evaluation and award)

(ii) Technical Evaluation :
Fixed Assets
Financial ability
General experience
Specific experience
Cost (Bid price)
Commitment to quality
Ethical considerations (Bankruptcy, blacklists,
convictions)
Environmental factors (Green issues,fumes,waste
disposal)


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Select Bidders (Evaluation and award)

Other considerations:
Technology/machinery
Legal status
HR Capacity
Location/proximity
Labour relations
Health and safety policies
Cross cutting issues

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Select Bidders (Evaluation of
Consultancies/Services ADB method)

Specific experience (Relevant) 15-25%
General experience of consultants 5-15%
Proposed Methodology 25-35%
Key Staff proposed 35-55%
Knowledge Transfer 0-10%
Participation by nationals 0-10
Total 100%


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Generic technical considerations
Income tax
Value added tax
Trading license
Certificate of registration
Articles and memorandum of association
Manufacturer's authorization
Company profile
Powers of attorney
Insurance cover
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Technical considerations
continued
Quality assurance
Physical address
Equipment
Experience
Audited accounts
Key proposed staff/personnel
Insurance cover


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Select Bidders (Evaluation and award)

(iii)Financial Evaluation
Check arithmetical errors
Change currency
Check bid bond
Check CIF issues
Check bid price/offer
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Evaluation methodologies
Quality and Cost Based Selection (QCBS)
Quality Based Selection (QBS)
Fixed Budget Selection
Least Cost Selection
Technical Compliance Selection








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Awarding of tenders/Contracts
Done by the Contracts committee
Bases decision on the recommendations of
Evaluation committee.
Contracts Committee recommends to the
Accounting Officer.
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Contract Management & Contract
Administration & Close out

Contract Administration (Setting up systems,
dealing with bonds and guarantees, document
management, work on the contract variations,
deal with concessions, progress reporting and
payments to contractors.
Contract close out (accepting deliverables,
completion and settlement of the contract,
resolving outstanding issues, verification for
work done and closure or termination.

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Contract close out
Contract close out (accepting deliverables,
completion and settlement of the contract,
resolving outstanding issues, verification for
work done and closure or termination.

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END
THANK YOU
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