1. What is the Public Procurement Oversight Authority?
The Public Procurement Oversight Authority (PPOA) is a public body established under the Public Procurement and Disposal Act, 2005. It is mandated with the responsibility of:-
- Ensuring that procurement procedures established under the Act are complied with;
- Monitoring the procurement system and reporting on its overall functioning;
- Assisting in the implementation and operation of the public procurement system by preparing and distributing manuals and standard tender documents, providing advice and assistance to procuring entities, develop, promote and support training and professional development of staff involved in procurement
- Initiating public procurement policy.
2. When was the PPOA established?
The Authority was established on 1st January, 2007 when the Public Procurement and Disposal Act, 2005 came into operation. It is established under section 8.
3. What is the classification of the various Procuring Entities as stated in the first Schedule, threshold matrix?
Public procuring entities are categorized into three classes as follows:-
CLASS A:
- State Corporations
- Ministries
CLASS B:
- City Councils ( Nairobi, Mombasa, Kisumu)
- Co-operative Societies
- Universities
- Colleges
- Judiciary
- Commissions
- Parliament
- Districts
- Provincial Hospitals
- Semi-Autonomous Government Agencies
CLASS C:
- Other Local Authorities (Municipal, County, Town Councils)
- Schools
- District, Sub-District Hospitals, Health Centres/ Dispensaries
- Constituency Development Fund
- Voluntary Organizations/ Institutions
4. What tender committee should adjudicate tenders that were advertised prior to 31st December, 2006?
The transitional provisions in the third schedule Section 3 (1) and (2) provide that proceedings commenced before the Act came into operation shall be continued in accordance with the law applicable before the Act. This therefore means that the tender committee as constituted under the Exchequer and Audit (Public Procurement) Regulations 2001 together with the 2002 amendment thereof shall adjudicate and award all contracts that commenced before 1st January, 2007. The new Tender committee should adjudicate tenders that commenced from 1st January, 2007.
5. The threshold matrix provides for quotations to be used to a maximum level of Kshs. 1 million while the minimum to be used on open tender is Kshs. 6 million. What is to be done in the apparent gap i.e. procurements above 1 million and below 6 million?
Regulation 37 clearly states that for purposes of section 54 (2) the threshold for national advertising shall be set out in the first schedule. The threshold in the matrix therefore gives the minimum value at which the Procuring Entities should advertise in a newspaper of nationwide circulation. Any value below the threshold, which is above the threshold for quotations, should be through any other form of advertisement e.g. Notice boards, website this should however be circulated beyond the scope of the quotations.
6. Who should initiate the procurement process?
The Procurement initiation should be according to what is provided for in the threshold matrix.
7. The threshold matrix on restricted tenders under section 73 (2) (a) states that the minimum level of expenditure is Kshs. 20 million and below this threshold open tendering should be used. Why is this?
Section 73 (2) (a) refers to the procuring of complex or specialized goods, works or services. If the procurement is less than the 20 million, then the entity should try the open market as the goods, works or services may not be so complex.
8. The old regulations required procuring entities to advertise in three newspapers of wide circulation while the current only states that the advertisement should be advertised twice. What is the position?
Procuring Entities are to advertise the tender notice in any newspaper of wide circulation. The requirement of the advertisement to be in three newspapers was discontinued. The advertisement notice should however be advertised twice.
9. The opening of tenders is stated to be done immediately, how immediate is immediate?
Tender opening should be done as soon as possible after the deadline for submitting the tenders.
10. Should Procuring Entities seek the authority’s approval in the use of restricted or direct procurement method?
In a departure from the past practice where approvals for the use of procurement methods other than open tender were granted by the Public Procurement Directorate, no such approvals are required under the Public Procurement and Disposal Act, 2005 and the Regulations, 2006. The Public Procurement Oversight Authority (PPOA) will only issue approvals for the use of specially permitted procurement procedure under section 92 of the Act.
11. What are the other forms of tender security?
Other forms of tender security may be accepted. They include;
i. cash;
ii. a bank guarantee;
iii. insurance company guarantee as may be approved by the Authority
iv. A letter of credit.
12. Does this Act apply to CDF activities?
This Act Applies to the CDF activities and supersedes any circulars on procurement issued before 1st January, 2007