Development and its Sustainability - ONAFOWOTE F. IDOWU AG. GM - - - PowerPoint PPT Presentation

The Place of Procurement in Infrastructural Development and its Sustainability - ONAFOWOTE F. IDOWU – AG. GM - PPA

LAGOS



Lagos City-State as one of the fastest growing cities in the world



Has a vision of becoming Africa’s Model Mega City and Global, Economic and Financial Hub that is Safe, Secure, Functional and Productive.



To achieve this laudable objective, there is need to direct investment towards economic development of Lagos.



Thus, LSDP serves as a veritable platform providing overall direction for the growth and development of the State.



It will provide a framework through which all sectors of the economy can direct their energies and contribute to the improvement of the quality of life of people in the State.

Vision and Mission Statements – The Big Picture

By 2025 Lagos will become

 Africa's Model Megacity

and Global, Economic and Financial Hub that is Safe, Secure, Functional and Productive Achieved by

 Poverty Eradication and

Sustainable Economic Growth through Infrastructural Renewal and Development

METROPOLITAN LAGOS

IBILE

VISION TO STRATEGY

DEVELOPMENTAL PILLARS STRATEGIC DIRECTION Pillar 1: Economic Development Aim: A dynamic, expanding economy, functional and visually attractive Harnessing public and private investment to create a strong, mixed economy that can provide jobs for all and create the base for expanding social services and environmental sustainability Pillar 2: Infrastructure Development Aim: An efficient and effective infrastructure capable of meeting future needs Providing efficient power, effective mass transit systems and

• ther key infrastructures essential to achieve a sound and

growing economy and achieve social progress Pillar 3: Social Development and Security Aim: An educated, skilled, healthy and secure people Ensuring a dynamic, progressive social and economic environment that will result in a well-educated, healthy people able to fulfill their potential and meet the skill needs

• f new industries.

Pillar 4:Sustainable Environment Aim: A green, clean and live-able city that can sustain its complex natural and man-made environment Creating sound systems, regulations and public participation to maintain a healthy and sustainable environment that can overcome the environmental deficit and meet future challenges posed by climate change.

INFRASTRUCTURE DEVELOPMENT PILLAR

STRATEGIC DIRECTION

 Lagos State aims at achieving an efficient and

effective infrastructure capable of meeting future needs, including increased productivity, competitiveness, environmental sustainability, reduced noise pollution, and income inequality as well as guarantee security and health.

STRATEGIC DIRECTION - CONTD

 By

2025 it will have delivered efficient power, effective mass transit systems and

• ther

key infrastructures essential to achieve a sound, growing economy and social progress.

 Today Lagos State suffers from inadequate and

unreliable infrastructure and this has led to the high cost of doing business in the State, for example, the intractable traffic congestion in the Lagos Metropolis and the associated loss of productivity and valuable man hours.

PRIORITY AREAS / CURRENT STATUS

 The key priority areas in the Infrastructure Sector are power,

transportation, and water.

 They are all, in their present form, deficient and cannot meet the

immediate and future needs of the economy.

FINANCING INFRASTRUCTURE

 The financial demands of the Infrastructure Sector are far

in excess of the State budget capacity.

 LASG will therefore seek innovative ways of engaging

• ther stakeholders in bridging the gap.

 Options

available to the State include developing strategic partnerships, increases in charges, improvements in revenue collection strategies, reduction in operating costs, rationalization of service levels and use of shared services and outsourcing among the service providers.

 One

• f

the key strategies is developing strategic partnerships through PPPs.

WHY PUBLIC PROCUREMENT

 As a state with a development master plan, Lagos State collaborated

with the World Bank in the year 2003 for a broad Public Sector Reform process to improve Efficiency, Accountability, Transparency and Probity in the conduct of Government Business and to align with International Best Practice.

 Consequently, the Lagos State Government enacted the Lagos State

Public Procurement Law in October 21, 2011 and the Law became effective in April 2012.

Background Contd

 As part of the strategic plans to achieve the State Developmental

Goals by Y2025, Lagos State Public Procurement Agency was established in February 2012 with a core mandate to certify all State procurements prior to, during and after the award of any contract

 Procurement Officers’ Cadre was created to carry out procurement

functions in all the MDAs.

PUBLIC PROCUREMENT

 VISION:

To be a model regulator assuring best practices in Public Procurement

 MISSION:

To ensure a transparent, Competitive, Inclusive, Sustainable and Value for Money Public Procurement System that Supports the State’s Development Goals and Engender Public Confidence

CORE VALUES

 Professionalism  Transparency  Competitiveness  Inclusiveness  Value for Money

Background Contd

 PPA effectively took over the functions of the defunct State

Tenders Board and State Consultancy Board in April 1st 2014

Procurement Stakeholders

Procurement Stakeholders End -Users

PE/ Procurement Office

Procurement Agency Contractors/ Suppliers/ Consultants (Registered)

NGOs/ CSOs/ Devt Partners, FG, Media

Other Stakeholders e.g. CDA, LG

Partnering 4 Development

All the Stakeholders are important in the implementation of Short, Medium and Long Term Infrastructure Development Strategies to guarantee sustainability – Synergy is therefore very key

Procurement Definition

 General Definition

Procurement refers to the sustainable acquisition and disposal of goods, works and services by public bodies/

• rganizations

through an efficient, professional, auditable and transparent approach.

 Specific Definition

Procurement in Lagos State Government entails streamlining processes, getting value for money in the acquisition of goods, works or services in line with the mandates of government for the benefits of the governed in the State.

Procurement Process

 The Procurement Process of acquiring Goods, Works and

Services in Lagos State follows the BEST PRACTICE as detailed below;

Procurement Cycle

Procurement Planning Tender Documentation Tender Notice Tender Harvest Approval of Contract Contract Implementation Tender Evaluation Contract Signatures

Planning

 Needs Assessment  Feasibility Studies  Market Research  Budgetary Allocation  Community Participation  Design specification/

Drawing etc.

Tender Documentation

 Preparation of Bidding

Documents

 Seeking for necessary

approvals

 Joint review of the

Bidding Documents

Tender Notice

Inviting the prospective bidders to participate in a bidding process

 Request for Quotation  Invitation for Bid  Request for Expression

• f Interest/ Proposals

Note: Relevant Media

Tender Harvest

 Receipt of offers  Designate an officer to handle the

receipt of bids/ quotes/ proposal

 Composition

• f

Bidding Opening Committee

 Preparation for Bids Submission  Preparation of Bid Opening  Composition

• f

Bid Evaluation Committee

Tender Evaluation

 Sensitization

• f

the Bids Evaluation Committee

 Declaration

• f

Conflict

• f

Interest

 Joint review of Pre-determined

Evaluation Criteria

 Individual Evaluation of Bids  Collation of Individual Evaluation

• f Bids

 Preparation of Evaluation Report

Approval for Contract Award

 Presentation

• f

Evaluation Report to Tenders’ Board for concurrence

 Seeking relevant approvals

e.g. PPA (if prior review)

 Types

• f

PPA Approval Instruments

• 1. Certificate of Compliance
• 2. PPA No-Objection
• 3. Letter of Confirmation

Contract Formation & Signature

 Registration of Letter of Award  Offer of Contract Award  Acceptance of Offer  Payment of statutory fees  MDA Procurement Office liaise with

the Legal Office

• n

Contractual Documents

 Liaise

with Ministry

• f

Justice

• n

contract agreement

Contract Implementation & Management

 Nomination

• f

Project Manager

 Work

plan (Contract Implementation Plan)

 Monitoring of Project  Project Evaluation  Contract Close Out

Complaints, Petitions & Disputes in Procurement Process

• It is not out of place to have complaints and/ or petitions

from any of the key players in the procurement process especially from aggrieved bidders who may not be satisfied with certain decision or action during any of the bidding process.

• It

is also not unlikely to have disputes between the Procuring Entity and the Contractor/ Supplier/ Service Provider during or after contract implementation. The complaint mechanism has been provided for the the Procurement Law

Why Contracts Fail

 Insufficient qualification of contractors  Poor practices in qualifying contractors  Lack of monitoring and remedial actions by

Employer/Engineer/Procurement Officer

 Collection of Delay (Liquidated) Damages is

deficient/non existent

Good Practice

 Provisions of contract agreement should

enforced

Liquidated damages Interest on delayed payment Warranty/defect liability requirements  Performance security

Ensure validity throughout contract period

Advance payment guarantee.

Pre Contract Meeting

 The pre contract meeting is held by the Employer

• fficials that will be involved in the contract prior

to the contract kick off

 This meeting is to ensure that there is a clear

understanding of their specific responsibilities and restrictions in administering the contract

 Issues to be discussed at the meeting include:  authority of officials who will administer the

Contract,

 quality control and testing,  the specific contract deliverable requirements,  special contract provisions,  procedures for monitoring and measuring performance,  contractor invoicing, approval and payment

procedures.

Kick off

 Kick off meeting should be held before the

commencement of the contract

 The objective of the meeting is to help the employer

and the contractor achieve a clear and mutual understanding of the contract requirements

 The meeting also helps the contractor understand the

roles and responsibilities of the employers officials who will administer the contract

 The following issues should be discussed at the

meeting;

 Organisational structures  Contact names and numbers  Reporting method  Progress meetings

Progress Meetings

 Progress meetings at regular intervals

should be held to monitor the progress of the contract implementation

 Contract implementation progress should

be discussed and compared with the contract implementation schedule

 Implementation problems are also

discussed with a view of solving them

 the objective is to ensure that the contract

will be completed with requisite quality, on time and within budget

Contract Monitoring and Supervision

 Monitoring and supervision are very essential for

successful implementation of any contract

 This is to ensure that all the terms of the contract

are being implemented as stated in the agreement

 For works and installation contracts, all designs,

drawings must be reviewed and approved by the Employer

 Proper monitoring will ensure that potential

sources of disputes are identified and rectified.

 Monitoring tools  Project Management and Procurement Process

Review by PPA

Change Orders/Variations

 In spite of best efforts to prepare

complete and error free plans and specifications and to implement contracts in accordance with plans, designs and specifications, quantities are

• nly best estimates

 Because field conditions change, errors

are made during preparation

 As a result of these, revisions to plans and

specifications may be required during contract implementation

 “Change Orders” will be required to

make these revisions

Change Orders (contd)

 A “Change Order” can be initiated by both the Employer and

the Contractor

 “Change Orders” after being signed by the Contractor and the

Employer become a legally binding document just as the

• riginal contract

Settlement of Disputes

Disputes between the Employer and the Contractor should be resolved as follows

 Mutual consultation  Adjudication:

 if the dispute cannot be resolved by mutual

consultation, the dispute can be referred in writing by either party to the Adjudicator with a copy to the other party

 The adjudicator will give its decision in

writing to both parties

 The decision of the Adjudicator is not final

Settlement of Disputes (contd)

 Arbitration:

 If either party is dissatisfied with the Adjudicator’s

decision or if the Adjudicator fails to give a decision, either party may give notice to the other party of its intention to commence arbitration.

 The dispute shall finally be settled by Arbitration  The decision of the Arbitration is final and binding

Contract Closeout

 Contract closeout begins when the contract has

been physically completed, i.e. all services have been performed and products delivered.

 Closeout is completed when all administrative

actions have been completed, all disputes settled, and final payment have been made

 There is the need to pay more attention to

contract closeout. It is as important as contract award and contract monitoring

 A checklist of all services, products, etc to be

delivered in the contract should be kept in the contract file.

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