LGA PROCUREMENT CAPACITY BUILDING STRATEGY FORMULATION WORKSHOP - - PowerPoint PPT Presentation

ENHANCEMENT OF PROCUREMENT CAPACITY OF LOCAL GOVERNMENT AUTHORITIES PROJECT (EPC – LGAP)

LGA PROCUREMENT CAPACITY BUILDING STRATEGY FORMULATION WORKSHOP

Dodoma, 11-13 June 2013

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PMO-RALG

STRENGTHENING PROCUREMENT PERFORMANCE OF LOWER LOCAL GOVERNMENTS

OUTLINE OF THE PRESENTATION



Problem statement



Issues related to low procurement performance in Lower Local Governments (LLG)



Development objective (desired outcome)

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Strategic objectives



Key interventions

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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

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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?

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GOVERNANCE ISSUES

 Good governance practices at village level: approval

selection of project committees by Village Assembly; awards contracts approved by VC; project hand-

• ver/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)

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PROCUREMENT MANAGEMENT

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 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)

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

• f drawing, specifications and M&E tools

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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

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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

• rders for Common Use Items & Services (CUIS) by

using Framework Contracts

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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

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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

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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)

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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

• perational

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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

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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

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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’

• f 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

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PROFESSIONALIZATION OF LGA PROCUREMENT FUNCTION

Objective: to have capacitated professional procurement cadre in LGAs

 Clarify PMU structure: define PMU establishment (type

• f 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

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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

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PROCUREMENT SYSTEMS & TOOLS - HLG

Objective: To facilitate availability of adequate equipment and working tools at PMU levels

 Development and introduction of LGA procurement

manual (guide)

 Development and introduction of manual for own-

source revenue collection services

 Improve knowledge and skills in preparation, updating

and implementing of Annual Procurement Plan

 Improve systems, classification, tools for procurement &

contracts management and records keeping

 Follow-up support to use of PMIS in LGAs including

connectivity of PMU to LGA MIS & ICT

 Improve quality, completeness and credibility of LGA

procurement reports

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TRAINING STRATEGY

Objective: to systematically and effectively identify and address LGA procurement training needs and monitor and evaluate impact on performance

 LGAs to take their responsibility to ensure adequate

procurement skills officials (LLG; HLG) and Council members as identified and/or recommended in M&E and audit reports

 Need to formulation of LGA specific procurement skills

development plans based on Training Needs Assessments

 Establish and capacitate District Training Teams for

ToT/ToC at all levels

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TRAINING STRATEGY (2)

 District Training Teams to train ward ToT (WEO, CDO) for

training/coaching of VEOs & Village Councils members

 Training to 1) change mind-sets & attitudes, and 2)

increasing knowledge and practical procurement skills

 Initial training to focus on weak procurement capacity

areas as identified in procurement audits, DIA and CAG reports including:

• Record keeping
• Contract administration
• Quality assurance
• Preparation and implementation of procurement

plans

• Governance and reducing procurement risks
• Leadership skills

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TRAINING STRATEGY (3)

 Tailor-made short courses for VEOs with Std VII in

procurement and other related areas (accounts, management, records keeping) based on demand and needs

 Capacitate RAS/LGAMSS to coach, advice, follow-up

LGAs in procurement (assuming there will be a procurement expert in LGAMSS)

 Capacitate PPRA Zonal Offices to provide training and

advice to procurement staff from regions and LGAs

 Review, updating and dissemination procurement

manuals

 Review and/or development of quality LGA

procurement training manuals

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TRAINING STRATEGY (4)

 Introduce adequate M&E of procurement training to

monitor use of acquired skills and evaluate impact

 Ensure that Training Providers (QTPs; Individual Trainers) are

fully conversant with training methodology & materials

 Make procurement guides (operational manuals) and

training manuals available through ICT and e-learning

 Design an adequate coaching and mentoring concept that

can work within LGAs, between LGAs, and between RAS/LGAMSS vis-à-vis LGAs

 Introduce action research to PMUs in identified weak

procurement areas as a learning model for organisational development

ASANTENI KWA KUNISIKILIZA

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