URBAN PRODUCTIVE SAFETY NET AND JOBS PROJECT(UPSNJP)

PROCUREMENT PLANNING

TRAINING TO CITY LEVEL IMPLEMENTERS

SEPTEMBER 2021
Adama
 Presentation Outline

 Overview
 Need Assessment
 Procurement Planning Steps
 Packaging
 Lead Time and Scheduling
 Challenges

Slide 2 Procurement Planning Basics

 Overview

• Procurement planning is part of the procurement

process of acquiring of:

• Works, Services and Goods that are required to

meet organizational needs in an efficient, cost
effective and timely manner in accordance with
established or agreed procedures.

• Procurement Plan is the “guiding light” of a project

“If you fail to plan, then you plan to fail”

Slide 3 Procurement Planning Basics
 cont’d

• Common questions on procurement planning

• WHAT? (Like category, items, large, small, values and
packages)

• HOW MUCH IT COSTS? (recent cost estimate)

• HOW? (Selection method (RFB/RFP/RFQ/DC, etc) Market

approach (Open / Limited / Direct / National /International,
etc),

• WHEN? (Each step, each package)

• WHO? (To do, to review)

Slide 4 Procurement Planning Basics

 cont’d
• It is a legal requirement as stipulated in(FA)
• For UPSNJP-procurement plan for IPF project is prepared
• The PP is a “living document”. That means that it is designed
to be updated regularly, at least annually during project
implementation. Changes to the PP are subject to the Bank’s
approval.
• Procurement plan should be prepared and approved by the
authorized institutions or body in each implementing agency
before the plan is finalized and uploaded in STEP
• The Procurement activities carried out without an approved
procurement plan in STEP are considered as ineligible
expenditures and are not financed through program fund.

Slide 5 Procurement Planning Basics

 cont’d

• The Procurement Plan, including its updates, shall

include:
a. A brief description of the activities/contracts
b. The selection methods to be applied
c. Cost estimates
d. Time schedules
e. The Bank’s review requirements
f. The applicable Procurement Documents; and
g. any other relevant procurement information.

Slide 6 Procurement Planning Basics

 cont’d

Procurement Plan - Template

Country Ethiopia
Responsible Agency Minstry of Urban Development and Construction
Implementing Agency Federal Urban Job Creation and Food Security Agency
Project name and ID Urban Productive Safety Net and Jobs Project
Fiscal Year 2013
Planned
Estimat Completion
Market ed Contract Planned Date
Description of Procurement Procurement Approac Amoun Review Type(Only Start/initia (Estimation
Ref.No. Contract Category Method h t(USD) Type for CS) tion Date date)
To be generated by STEP
at the time of planing
To be generated by STEP
at the time of planing
To be generated by STEP
at the time of planing

Slide 7 Procurement Planning Basics

 cont’d
• Annual procurement plan shall coincide with annual
budgets and targets to be achieved and is part of AWPB.
• All procurement plans for Regional office, Cities and Sub
Cities shall be submitted to the Federal PCU for review,
and endorsement and submission to the World Bank for its
review and no objection
• All procurement plans and their respective updates shall be
reviewed and cleared by the World Bank through STEP
prior to commencement of the procurement process.
• The duration and time required to properly carry out each
stage of procurement activity should be estimated carefully
to develop a realistic procurement plan

Slide 8 Procurement Planning Basics

Steps in Procurement Planning
• List the various goods/works/services to be obtained for
the project-each of them constitutes “item” to be
procured

• Identify the key dates when each procurement package

shall be ready for use/available on site

• Package the items on the list in logical contract groups

• Decide the contents/size of each procurement “package”

which will constitute a specific procurement operation
Slide 9 Procurement Planning Basics
 cont’d
• Critical issues that need attention in the preparation of
PP are:
• Cost estimation to be realistic based on current
market practice
• Precise description of the item
• Exact quantity required
• Optimum procurement arrangement(selection
method and market approach---goods, consulting
services, non consulting services, works)

Slide 10 Procurement Planning Basics

 cont’d

• All items similar by nature or origin of supply should

be grouped together in to a “lot” of goods, or “slice” of
works

• Bidders are invited to submit a bid and quote price for

entire lots and slices. This grouping of items in lots or
slices will reduce the number of procurement
operations.

• Bidders could also be invited to indicate unit prices for

each item in a lot or slice
Slide 11 Procurement Planning Basics
Challenges

• Procurement of unplanned activity—check if this exist

• Delay in procurement plan preparation
• Gap in synergy with other department/section
• Deviating from the planned procurement dates and not
following as a monitoring tool
• The signed contract amount higher than the estimated
amount
• Cancelling of procurement activity
• Estimated amount is very low or high
• Missing justification letter for direct contracting

Slide 12 Procurement Planning Basics

 Thank you!

Slide 13