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Vol. 2, Issue 2 Public Procurement Authority: Electronic Bulletin May—Jun 2011
E-Procurement Bulletin
P u b l i c P r o c u r e m e n t A u t h o r i t y
Inside this
Editorial : Build-
ing Blocks for
anagement as a function is
Effective Pro- defined by the Business Dic-
curement Man- tionary.com as “the organiza-
agement -Page 1 tion and coordination of activities of any
enterprise in accordance with set objec-
Online tives”. It is the act of getting people and
Activities : resources together to accomplish desired
Page 2 goals and objectives in an efficient and
effective manner.
Value For Money
Contract Assess-
As far as the provisions of the Public
ment—Page 4 Procurement Act, 2003 (Act 663) are
concerned, public procurement function
Benefits of E- as performed within Entities is to be
Procurement to regarded as a core management function
the Regulator - that helps in the realization of organiza- tract packages and their estimated cost, the
Page 7 tional goals. Like all managerial func- proposed procurement method to be used,
tions, it entails various components or and the processing steps and lead times for
building blocks namely: “Planning, Or- the completion of the procurement process.
ganizing, Leading and Controlling”- It is believed that the only way that procure-
Wikipedia. ment can be conducted professionally is to
ensure that procurement activities are un-
To exterminate any semblance of arbi-
dertaken according to approved plans and
trariness in the practice of procurement,
not in an ad hoc manner.
the process of Planning certainly must
be given critical attention. Indeed, Sec- The second component of procurement man-
tion 21 of the Act 663 enjoins all pro- agement is its ability to Organize human,
curement entities to prepare annual pro- financial and other resources to carry out
curement plans to support their ap- the approved plans in a systematic manner.
proved programs. These plans are sup- Part 2, 3, 4 and 5 of the Public Procurement
posed to give explicit indications of con- Act prescribes the required procurement
(Continued on page 4)
Page 1
Public Procurement Authority: Electronic Bulletin May—Jun 2011 Vol. 2, Issue 3
Online Activities
List of entities that have submitted their 2011 Procurement Plans online As At March, 2011
1. Accra Polytechnic 46. Ghana National Fire Service
2. Achimota Hospital 47. Ghana Police Service
3. Adenta Municipal Assembly 48. Ghana Prisons Service
4. Ashaiman Municipal Assembly 49. Ghana Revenue Authority
5. Atua Government Hospital 50. Ghana Shippers Council
6. Bank of Ghana 51. Ghana Standards Board
7. Berekum Tr. College 52. Ghana Trade Fair Company Limited
8. Bolgatanga Polytechnic 53. Ghana-India Kofi Annan Center of Excellence
9. Bulk Oil Storage and Transportation 54. Grains And Legumes Development Board
10. Bureau of National Investigations (BNI) 55. Ho Polytechnic
11. Cape Coast Metropolitan Assembly 56. Institute Of Professional Studies
12. Centre for Scientific Research Into Plant Medicine 57. Internal Audit Agency
13. Commission on Human Rights and Adminstrative Justice 58. Juaben District Hospital
14. Controller And Accountant General Dept 59. Judicial Service
15. Council for Law Reporting 60. Kade Government Hospital
16. Council for Scientific and Industrial Research 61. Koforidua General Hospital
17. Dangme West District Assembly 62. Koforidua Polytechnic
18. Dental School 63. Komfo Anokye Teaching Hospital
19. Department of Children 64. Korle bu Teaching Hospital
20. Department Of Urban Roads 65. La Polyclinic
21. Driver and Vehicle Licensing Authority 66. Ledzokuku-Krowor Municipal Assembly
22. Dunkwa District Hospital 67. Maamobi Polyclinic
23. Effa Nkwanta Regional Hospital 68. Medical School
24. Effiduase District Hospital 69. Minerals Commission
26. Electoral Commission 71. MINISTRY OF EDUCATION
27. Enchi Tr. College 72. MINISTRY OF ENERGY
28. Energy Commission 73. Ministry of Environment Science and Technology
29. Environmental Protection Agency 74. MINISTRY OF FOOD And AGRICULTURE
30. Export Development and Investment Fund 75. MINISTRY OF FOREIGN AFFAIRS AND REGIONAL INTEGERA-
31. Forestry Commission TION
34. Ghana Academy of Arts And Sciences 78. MINISTRY OF LANDS, FORESTRY And MINES
36. Ghana Atomic Energy Commission MENT
37. Ghana Audit Service 80. MINISTRY OF THE INTERIOR
38. Ghana Broadcasting Corporation 81. MINISTRY OF TOURISM And DIASPOREAN RELATION
39. Ghana Civil Aviation Authority 82. Ministry of Transport
40. Ghana College of Physicians and Surgeons 83. Ministry of Women and Children Affairs
41. Ghana Grid Company Ltd. 84. Mount Mary College
42. Ghana Immigration Service 85. Mpohor Wassa East
43. Ghana Institute of languages 86. Narcotics Control Board
44. Ghana Institute of Management And Public Administration 87. National Board for Professional And Technical Examinations
45. Ghana Library Board 88. National Board for Small Scale Industries
Page 2
Vol. 2, Issue 2 Public Procurement Authority: Electronic Bulletin May—Jun 2011
89. National Cardiothoracic Centre
90. National Commission on Culture 116. Social Security and National Insurance Trust (SSNIT)
91. National Development Planning Commission 117. South Dayi District Assembly
92. National Health Insurance Authority 118. St. Joseph’s Tr. College
93. National Identification Authority 119. St. Mary’s Secondary School
94. National Insurance Commission 120. St. Monica Training College
95. National Lottery Authority 121. Students Loan Trust Fund
96. National Petroleum Authority 122. Suhum Government Hospital
97. National Road Safety Commission 123. Sunyani General Hospital
98. National Service Secretariat 124. Sunyani Polytechnic
99. National Vocational Training Institute 125. Sunyani West
100. Noguchi Memorial Institute 126. Takoradi Polytechnic
101. Non Formal Education Division 127. Tamale Polytechnic
102. Nyinahin District Hospital 128. Tema Metropolitan Assembly
103. OFFICE OF THE PRESIDENT - MAIN 129. Tetteh Quarshie Memorial Hospital
104. Office of the Regional Health Directorate – Eastern 130. Twifo Praso Health Assistants Tr. Sch.
Region 131. University Ghana School of Pharmacy
105. Parliament 132. University Of Cape Coast (UCC)
106. Peki Training College 133. University Of Ghana (UG)
107. Pharmacy Council 134. University of Ghana Business School(UGBS)
108. Public Procurement Authority 135. University Of Science And Technology (KNUST)
109. Public Utilities Regulatory Commission 136. Volta River Authority
110. Registrar Generals Department 137. Wa Polytechnic
111. School of Allied Health Sciences 138. Water Resources Commission
112. Serious Fraud Office 139. Wesley Girls High Sch.
113. Shama Ahanta 140. West African Examination Council
114. Shama-Ahanta East Metropolitan Assembly 141. Western- Regional Co-ordinating Council
115. SIC Life Company Limited 142. Wiawso Tr. College
The Authority urges all other entities who have not submitted their plans as yet to emulate the example of
the above listed entities and comply accordingly.
Tendering and contract Information for periods indicated
Tendering Opportunities for May - Jun 2011
Contracts Awarded for Jan-Jun 2011
Restricted Tender Awards Jan-Jun 2011
Expression of Interest Requests May -Jun 2011
The links above will take you directly to the PPA Website Reports for the months of period
Page 3
Public Procurement Authority: Electronic Bulletin May—Jun 2011 Vol. 2, Issue 3
(Continued from page 1) product/service specifications and other procurement
requirements are met. Below are examples of pro-
human structures, rules and methods that are to curement rules prescribed by the Public Procurement
be employed during the process of procurement. Act, which require strictly adherence:
Moreover, schedules 1 & 2 of the Act 663 also
1. Procurement Entities must adhere to the same
specifies the exact membership compositions for
day closing and opening of tender rule;
Entity Tender Committees (ETCs) and Tender
Review Boards (TRBs) for all categories of insti- 2. A Procurement Entity must disqualify any ten-
tutions. The ultimate purpose of these stipulated derer that submits false information for purposes
structures and tendering procedures is to ensure of qualification;
that decisions on what and how to procure are 3. The price of tender documents should only cover
done in a corporate manner and obtain best value the cost of printing;
for money.
4. Procurement Entities shall respond to any re-
Another key element required for effective pro- quest by a supplier or contractor if that request is
curement management is the ability of procure- made within 10days prior to deadline for submis-
ment professionals to provide Leadership to their sion;
institutions as far as issues pertaining to public
procurement is concerned. This form of leader- 5. Tender documents must indicate the deadline for
ship is supposed to be knowledge-based. Thus, tender submission date, time and venue for open-
the onus is on individual procurement officers ing;
and practitioners to develop their capacities and 6. Tenderers willing to participate in Tender Open-
broaden their understanding of the provisions of ings should be allowed to do so;
the Public Procurement Act, as well as acquire
7. Entities could invite external persons to serve on
the requisite communication and managerial
tender evaluation panels;
skills that will enable them to provide the much
needed procurement advice and direction to man- 8. Tender Documents are evaluated on the basis of
agement whenever is needed. Furthermore, it is the terms and conditions stated in the tender
anticipated that as procurement professionals document.
display such high leadership skills at their insti- 9. No criteria other than those prescribed in the
tutions they will be able to receive the necessary Tender document can be introduced at any stage
cooperation and win the confidence of manage- of the Evaluation Process.
ment in all their activities.
To this end, it is imperative for public procurement
Finally, given the varied risks associated with the entities adhere to the management principles in the
practice of procurement, the fourth and perhaps Procurement Act for effective and successful procure-
the most essential element for effective procure- ment processes in line with the entities overall corpo-
ment management is the need for strict adher- rate objectives.
ence to Control mechanisms during the conduct of
procurement activities. The rationale for these Rhoda Appiah
controls is to ensure that procurement managers Principal Public Affairs
are able to determine and guarantee the accom-
plishment of organizational objectives as far as
Page 4
Vol. 2, Issue 2 Public Procurement Authority: Electronic Bulletin May—Jun 2011
Introduction/Funding contract price savings of 14% were identified to-
gether with other non-financial VFM enhance-
he Ghana Value for Money (VFM) Contract ments and contract risk minimisation, GOG un-
Assessment Services Project is implemented dertook two important activities:
under the auspices of the Ministry of Finance
Set out a policy statement requiring all single-
and Economic Planning (MOFEP) with Crown
Agents (CA) as consultants. The principal objective of sourced, buyer- or supplier-credit funded con-
the project is to achieve improved efficiency, trans- tracts to be subject to pre-contract VFM audit;
parency, accountability and value for money in gov- Sought and secured donor (DFID) funding to con-
ernment financial resource utilisation. tinue the services for a further two-year period
that is the Phase 2 of the project.
Britain‟s Department for International Development
(DFID) funded the Project to the tune of £500,000 for At the end of Phase 2, DFID again provided funds
a two-year period commencing January 2000. The for a continuation of the project for a further 1-
DFID-funded phase, subsequently termed the Phase year period up to the end of March 2003. Ministry
2, followed a two-year pilot phase (Phase 1), which of Finance and Economic Planning has funded
was initiated and funded by MOFEP during which the project from April 2003 to date.
Crown Agents were contracted to review certain high
value, single-sourced contracts prior to contract
effectiveness to ensure that they would deliver “value Output of Audits
for money” to the Government of Ghana (GOG). Specific Value for Money (VFM) reports are is-
As a result of the success of Phase 1, during which sued at the end of each audit assignment to the
Page 5
Public Procurement Authority: Electronic Bulletin May—Jun 2011 Vol. 2, Issue 3
Ministry of Finance and Economic Planning that rangements for post-contract maintenance sup-
addresses and recommends improvements on all port, etc.
aspects of the contract where risks exist thereby
Lump-sum price packages that do not lend
ensuring equity to both Buyer [in this case, Gov-
themselves for easy verification on the reason-
ernment of Ghana (GOG)] and Supplier or Con-
ableness or otherwise of the offered contract
tractor. The recommendations are effected
through re-negotiations involving the parties
(MOFEP/MDA/Contractor or Supplier). Savings Adverse payment terms, including often-high
realised during negotiations are ploughed back advance payments that are unfavourable to the
into the contract to achieve increased scope of Purchaser and often not tied to specific deliver-
works/supplies for the Government of Ghana. ables from the Supplier
Imprecise definition of scope of supply and/or
Achievements services leading to lack of clarity in substance of
Through the (pre-contract-effectiveness) VFM contracts.
audit work, the following were achieved during
Poor functional specifications where mere mate-
implementation of the project to date:
rial descriptions are provided instead of perform-
Over 160 pre-contract effectiveness audit as- ance- based specifications.
signments undertaken with aggregate value
Non-use of standard or model forms of contract
in excess of US$2 billion.
Payments not always related to progress of
A substantial number of contracts were iden-
works completion (civil works contracts)
tified as high risk and stopped, saving the
Government the corresponding potential debt. Supplier credit financing featured as the main
driver of single source contracting in Ghana,
Substantial price premium identified of up to
leading to supplier-drafted contracts, which in
20% of the value of some individual contracts.
many cases tend to favour suppliers/contractors
Recommendations made to strengthen pro- more than the Employer or Buyer.
curing entities‟ contractual position, reduce
Absence of Advance payment guarantee has
exposure to risk, and improve final procure-
been identified as another problematic factors
ment outcomes in their favour.
escalating the risk of the Employer
Learning outcomes, guidelines and best prac-
Freedom of contractor to outsource some or all
tice recommendations produced for wider dis-
aspects of works to sub-contractor without ap-
semination at VFM workshops organised in
proval of Employer also emerged a risk prone
2003 and 2010.
area for VFM attainment
Where Model Forms of Contract (MFCs) are
Key Findings used, the case remains that substantial amend-
ments are being introduced under the Special
Adverse Conditions or Conditions of Particular Applica-
Weak contract terms and poor implementa- tion, which expose the Employer or Buyer to sig-
tion or delivery arrangements that adversely nificant financial and contractual risks.
impact on VFM. Suppliers‟ reluctance to provide additional infor-
Poor acceptance/taking-over procedures that mation at a request;
adversely impact on VFM. Lack of background information – including Em-
Inadequate warranty provisions, or weak ar- ployer‟s Requirements, needs analysis, sourcing
Page 6
Vol. 2, Issue 2 Public Procurement Authority: Electronic Bulletin May—Jun 2011
strategy, procurement method or tendering proc- Even where a contract is VFM-optimised at
ess, evaluation criteria and contract award deci- the contract formation stage, the realisation
sion criteria, decision making process, financing of VFM gains during contract implementation
arrangements (including conditionalties), and may be affected by capacity constraints in
overall project objectives implementation management, supervision or
cost control.
Positive Positive
Some potential suppliers have made enquiries from Need for early interventions (“upstreaming”)
the VFM office on the audit process with the view of in order to build in best VFM outcomes right
making acceptable submissions. This is from the start.
„upsrteaming‟ the process, as has always been recom-
Need for use of standard model forms of con-
mended. It is expected that such efforts should result
tract (MFC), wherever appropriate, in order
in improvements in the quality of contract docu-
to provide a proper basis for attainment of
ments to be submitted in future
Increased awareness and acceptance of VFM pro-
Scope of supply and product specifications to
ject following the workshop in November 2001
be dictated by well defined needs assessment
of the Employer
Key Learning Outcomes Workshops are seen as an effective means of
disseminating VFM key lessons, outcomes,
and benefits to target audiences and stake-
Adverse holder group. The implementation of an over-
The conditionalities of some finance packages all dissemination strategy, incorporating fur-
present major challenges to the attainment of ther workshops, would be beneficial to long-
value for money for procuring entities. For in- term sustainability.
stance, one works contract reviewed included a
It is expected that the inquiries made by pro-
quite unrelated component - for a separate con-
spective Suppliers regarding VFM procedures
sultancy study in a separate location in a differ-
(“Upstreaming”) would translate to improved
ent region, for 20 % of the contract price. A key
documents to be presented to the line minis-
factor appears to be to meet the (80%) content for
try as a basis for a contract agreement.
donor country-sourced inputs.
The absence of complete information for the VFM Bernard Moro
Consultant necessarily lengthens the time re- Project Manager
quired for assessment, constrains the undertak-
Crown Agents Ghana Limited
ing of more thorough assessments, and can
weaken the attainment of VFM
Page 7
Public Procurement Authority: Electronic Bulletin May—Jun 2011 Vol. 2, Issue 3
Benefits of e-Procurement to the
n previous articles on benefits of E-
Procurement, we have attempted to enumer-
Monitoring and Compliance
ate the general benefits of E-procurement, and With an e-procurement system in place, it will be man-
then focused on the benefits to the Public and Pri- datory for all government entities to use the platform for
vate sectors. Focus of this article is on the benefits its procurement activities. This will require that all ten-
of E-Procurement to the regulator. der notices, participation of tenderers as well as tender
evaluation (price, technical specification, financial
By the Public Procurement Act, 2003 (Act 663), the status, etc) to be conducted online. This will enable the
Public Procurement Authority is the regulator of all authority monitor compliance of entities with stipulated
government procurement activities in Ghana as tendering process. This will include tender opening and
established by the Act. As an oversight body its closing periods, evaluation criteria, notification of con-
functions and monitoring activities are widespread. tract award, and in some cases contract performance.
Among the functions of the Authority as stipulated
in the Act include;
Reduction in Complaints
Monitor and supervise public procurement The authority receives a number of complaints covering
and ensure compliance with statutory re- such issues as loss of tenders, late opening of tenders,
quirements destroying of tenders, congestion at tender openings,
Have right to obtain information concerning suspicion with award of contract and many more. An e-
public procurement from contracting au- procurement system will eliminate such complaints.
thorities Tenders submitted online cannot be tempered with,
Establish and maintain an information sys- tender closing will be done automatically by the system,
tem relating to public procurement there will be no need for tender opening and tender
Maintain a data base of suppliers, contrac- evaluation and award will be done online based on set
tors and consultants and a record of prices criteria, thereby eliminating issues relating to suspicion
to assist in the work of procurement entities of contract awards. Simply put no tender fracas.
The PPA through its website www.ppaghana.org, is
able to gather and disseminate as much informa- Data Exchange
tion as possible on procurement activities, such as There will be an increased data exchange between
Tender advertisements, contract awards and Aver- public entities and tenderers be it contractors, suppliers
age Price list. It has also developed an online Pro- and consultants. These data will provide the Authority
curement Planning Software to enable public enti- with wide range of information to enable it generate
ties plan their yearly procurement activities and, a statistics on public procurement activities in the coun-
Public Procurement Model of Excellence tool for try. Such information will help in policy formulation, gov-
assessing entities performance. These are all ef- ernment budgetary allocations, etc. Wide range of re-
forts and systems put in place by the authority to ports can be generated for decision making such as;
meet its stipulated functions.
Total Procurement Summary
It is expected that a fully implemented E- Summary of works completed
Procurement system will offer additional benefits to Feedback Report
the PPA including; Tender Search Details
Page 8
Vol. 2, Issue 2 Public Procurement Authority: Electronic Bulletin May—Jun 2011
Tender Data Statistics procurement system will enhance transparency and
Tenders Geographical Wise improve efficiency of the procurement process, two car-
Department Wise Tenders dinal points on which the procurement act was formu-
Validated database of contractors experience lated.
and many more. With regard of the above, the PPA through the Ministry
Indeed a fully implemented e-procurement system will of Finance and Economic Planning and its development
serve as a good platform to the PPA in achieving its partners, should ensure a comprehensive implementa-
mandated functions. Foremost it will give a single plat- tion of an e-procurement systems, as benefits to both
form from which the PPA can reach all public procure- PPA and government are enormous.
ment entities. It will also improve communication be-
tween the PPA and the entities. Due to the reduced Thomas K. Bondzi
human interaction with online systems, an e- Senior IT Specialist
P u b l i c
P r o c u r e m e n t
Editorial Team A u t h o r i t y
Emelia Nortey—Director MIS PMB 30
Rhoda E. Appiah—Principal Public Affairs Officer ACCRA
Yvonne Vanderpuye—Principal Operations Officer, CD/HR Phone: 0302 - 765641-2
Fax : 0302—765643
Thomas K. Bondzi—Senior IT Specialist
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