PROCUREMENT IN

AFGHANISTAN PUBLIC
SECTOR
 Procurement

• Purchasing goods and services from the

Definition Private Sector Providers/vendors
• i.e. Outsourcing

• Cover a wide range of activities

• Supplies of office stationary and furniture,
Scope construction of new facilities, maintenance
services (i.e catering, cleaning and refuse
collection) and training and etc
 Why procurement is subject to public
scrutiny?

Governments in
developing
Government
countries have
procurement
often been
Public funds are attracts the
The huge size of labelled of not
involved in interest of business
government making the
financing public community
procurement necessary
procurement including
purchases or
multinational
procurements in
companies.
the most efficient
manner possible
 Procurement Principles

Public Value for

Fair dealing
Accountability money

Open & fair

Transparency
competition
 Categories of procurement

Works Supplies/Goods Services

• Contracts of • the supply of raw, • engagement of

construction and intermediate or manpower,
engineering finished goods and • expertise and
activities - products for any consultants in
infrastructure and activity of users • i.e feasibility
structures • construction studies, research,
• i.e buildings, materials, food designing,
airports, products, uniforms, surveying,
roads/highways, vehicles, management etc
dams, drainage equipment, spare • repairs,
Services parts, furniture etc. maintenance and
cleaning services
 Procurement
Plan

Advertisement
BoQ &
Notice for
Specifications
Procurement

Request for Preparation of

NOL Cost estimate
(if Applicable) and the Budget

Request for
Preparation of Procurement to
Bid Documents the Competent
Authority
6
 Distribution of
Bid Documents

Receipt of Response for

Pre-Bid
Acceptance Letter; along
Conference
with Performance
Guarantee

Issuance of Acceptance
Public Bid
Letter to the Winning Opening
Company/Supplier

Request for NOL Evaluation of Bid

(if Applicable) Documents
7
 NPC Approval (if
required)
Issuance of Signing of Contract by
Completion Letter Authority and
by the Relevant Submission to MoF
Dept Control Section for
Visa
Contract Delivery by Award of Contract
the and 2nd
Contractor/Supplier Advertisement

Issuance of Work Circulation of Contract

Commencement Letter to the relevant Depts
by relevant dept
8
 Release of
Performance
Guarantee
Release of
Retention
Money when
the Defect
Liability Period
is Over

9
 Procurement
Plan
Request for NOL –
EOI Evaluation Preparation of
Report & RFP TOR
(if Applicable)

Preparation of
Preparation of
Cost estimate
RFP
and the Budget

Evaluation of Specific
Expression of Interest Procurement
and Developing Notice (REOI)
Shortlist 10
 Issuance of RFP [includes:
LOI, ITC, TOR and the
Proposed Draft Contract]

Opening of Technical Pre-Proposal

Proposals Conference

Preparation of the
Receipt of Proposals Pre-Proposal
Conference Minutes

Circulation of Pre- Request for NOL – Pre-

Proposal Conference Proposal Conference
Minutes Minutes (if
Applicable) 11
 Evaluation of
Technical Proposals

Request for NOL –

Combined Evaluation of Technical Evaluation
Technical & Financial Report (if Applicable)

Public Opening of
Evaluation of
Financial Proposals
Financial Proposals

Preparation of
Circulation of Financial
Financial Public
Public Opening Minutes
Opening Minutes
12
 Negotiations with the
Firms

Issuance of Completion NoL for CER (If

Letter by the Relevant applicable)
Department

Completion of the
NPC Approval (If
Service by the Company
required

Award of Contract and Signing of Contract and

Publication of Award Submission to MoF
Notice Control Section for Visa
13
 Issues in procurement
weaknesses and
Weaknesses in Non-compliance to rules, irregularities involving
procurement regulations and policies work and services
procurement
• purchases that are not • equipment procured at • delay in signing
sourced based on best a much higher cost than • the contract; work done
value market value, improper or services rendered not
• equipments received payment made for in accordance with the
are not utilised or equipments not • original scope; low
underutilised, over supplied, quality on works or
purchases of • payment made but services rendered;
equipments, maintenance jobs are unsatisfactory
• equipment supplied not not carried out and • work maintenance;
in accordance to • insufficient budget for payments made for
original specifications, maintenance works/services not
poor quality, frequent carried out or
breakdowns, obsolete, • not rendered; slow work
non-systematic or progress; abandoned
improper storage projects,
• shortage of experienced
officer to handle it
 Underlying reasons

Lack of Lack of alignment

transparency in of responsibilities
Accountability
financial among key
Lack of proper and performance
information officials in
planning. requirements are
system and managing awards
not clearly spelt.
contracting and oversight of
operations. contracts.

Lack of guidance
Lack of ethics Lack of skills and
for managing the
among the training of
contracts especial
procurement procurement
cost
workforce. workforce.
management.
 Procurement Best Practices

Ensuring the procurement management

Enhancing the knowledge and skills in
process is conducted in accordance with
handling procurement
the stipulated regulations
• Proper planning to determine what to • conducting periodical trainings to the
procure, when, why and how. (market procurement personnel at the ministry,
study) department and agency, periodical
• Ensure that the budget is prepared and internal procurement inspection at least
put into the quotation and tender box. once in 6 months; and
• Ensure the procurement methods used is • Job rotation in various aspects of
in accordance to the determined value. procurement.
• Quotation notice is clear and complete.
• Opening quotation committee must be
appointed in writing
• Quotation valuation report must be
prepared
• Proper maintenance of all procurement
and contract files
 Procurement Best Practices

Internal auditors must play

Enhance the work system and Government agencies must
their role in assessing the
capability of personnel ensure that all information
procurement governance:
relating to procurement must
be updated
• so that it is • to ensure the
appropriate with procurement • All entity need to
the value of made in an have updated
procurement of efficient, and information
the prudent manner related to
ministry/agency and which comply Procurement
• Establishing with the
Procurement regulations.
Division/Unit • i.e. Procurement
Audit
 Effective Procurement System

 A procurement regulatory framework should address all

Government contracts regardless of the funding source
 Transparency is important to assure trust and confidence
in the procurement system
 Effective and fair procedural rules are important in open
competitive bidding.
 A Government official engaged in purchasing should be
independent from vendors, bidders, prospective bidders,
interested parties, politicians and political appointees.
Why do we need transparent
procurement system?
 transparent system promotes efficiency
 The threat of corruption is minimized
 Transparency encourages a more competitive environment
and as a consequence better quality for money from the
consumers’ point of view
The end