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District Participatory Planning and Budgeting Process

Procurement Overview Module C Training Material
(Step 4: Implement Work Plan and Budget)

Participant Book
November 2009

SUPPORT PROVIDED BY UNITED NATIONS SOMALIA

Procurement Overview Module C – Participant Book

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Table of Contents
List of Abbreviations .......................................................................................................4 INTRODUCTION TO THE TRAINING ..................................................................................5 INTRODUCTION TO THE TRAINING ..................................................................................5 Training Overview ..........................................................................................................7 GETTING STARTED...................................................................................................................10 GETTING STARTED...................................................................................................................10 UNIT 1: INTRODUCTION TO PROCUREMENT.................................................................11 UNIT 1: INTRODUCTION TO PROCUREMENT.................................................................11 OVERVIEW OF IMPLEMENTATION AND PROCUREMENT..........................................................................12 OVERVIEW OF IMPLEMENTATION AND PROCUREMENT..........................................................................12 1.1.3 Step 4 in the planning and budgeting guidelines..................................................14 WHAT IS PROCUREMENT?...........................................................................................................18 WHAT IS PROCUREMENT?...........................................................................................................18 1.2.1 What is procurement?..........................................................................................18 1.2.2 Why is procurement important to District Councils? ............................................19 1.2.3 When is a procurement process needed?............................................................19 1.2.4 What is the role of the District Council in procurement?.......................................20 1.2.5 Glossary...............................................................................................................21 PROCUREMENT PRINCIPLES AND ETHICAL CONDUCT........................................................................22 PROCUREMENT PRINCIPLES AND ETHICAL CONDUCT........................................................................22 1.3.1 What are public procurement principles?..............................................................22 1.3.2 Explaining the procurement principles..................................................................22 1.3.3 Ethics in public procurement.................................................................................25 1.3.4 The Code of Ethics...............................................................................................26 1.3.5 What is Corruption? .............................................................................................27 1.3.6 Preventing Corrupt Behaviour..............................................................................28 UNIT 2: PROCUREMENT AND CONTRACT MANAGEMENT...........................................30 UNIT 2: PROCUREMENT AND CONTRACT MANAGEMENT...........................................30 ROLES AND RESPONSIBILITIES.....................................................................................................31 ROLES AND RESPONSIBILITIES.....................................................................................................31 2.1.1 What are the main Roles and Responsibilities in district local government procurement? ...............................................................................................................31 2.1.2 The District Tender Committee.............................................................................34 PROCUREMENT METHODS..........................................................................................................36 PROCUREMENT METHODS..........................................................................................................36 2.2.1 What are the main procurement methods available to districts?...........................36 2.2.2 Overview of Procurement Methods.......................................................................37 2.2.3 Overview of the Open Competitive Bidding Process.............................................40 CONTRACTS AND CONTRACT MANAGEMENT...................................................................................44 CONTRACTS AND CONTRACT MANAGEMENT...................................................................................44

Procurement Overview Module C – Participant Book

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...............56 Procurement Overview Module C – Participant Book 3 ....................................................................................................50 Agreement...................5 Overview of the steps in Contracting and Contract Management..........45 2.............1 What is a contract? .............................46 2...........................................................................................................44 2...............50 ACTIVITY SHEETS..............3 How are contract documents prepared and signed?...3.................2 What are the obligations of the contracting parties?.............................4 What is involved in Contract Management? ......................................................................................................3..............3...........................................................................................................................................................44 2...........................3...............................................................49 GLOSSARY............................49 ACTIVITY SHEETS.....................47 GLOSSARY......3.................................2...............................

List of Abbreviations CDC ICB JPLG LPO MOI/MOILG NCB RFQ USD VC Community Development Committee International Competitive Bidding Joint Program for Local Governance Local Purchase Order Ministry of Interior National Competitive Bidding Request for Quotations United States Dollar Village Council Procurement Overview Module C – Participant Book 4 .

Introduction to the training This Participant Book is designed to assist you as a District Councillor to develop an understanding of local government procurement. the local government procurement guidelines and the Somaliland District Bidding Documents and Somaliland District Bid Opening and Evaluation Documents. so your comments and suggestions will be very helpful. You will see that the Participant Book is divided into Units and each Unit contains a number of Sessions. The Participant Book 2. The purpose of this training is to ensure that the districts implement equitable basic service delivery in a participatory. Book Symbol:  A book symbol tells you where you can identify relevant information in reference documents. Bidding Documents and Bid Opening and Evaluation Documents (pls confirm) Also mention that they should bring their copy of the District Planning and Budgeting Guidelines from earlier trainings? This is the Participant Book with all the details of the training. You will find the following symbols in this Participant Book: Activity Sheet Symbol:  Some of the activities require you to complete or refer to an Activity Sheet. you will receive 3 documents: 1. Hand Symbol:  The hand symbol indicates a point that is important to note. but who need to have a general idea of procurement as it relates to District Councils. When you see this symbol. (pls confirm whether they will receive these docs) Eye Symbol:  The eye symbol tells you that there is a table. Before the training starts. Procurement Overview Module C – Participant Book 5 . such as the planning and budgeting guidelines. you need to use the corresponding Activity Sheet at the end of your Participant Book. so that your District Council can successfully implement its district priority projects. diagram or example to look at. These training materials will be subject to ongoing review and improvement. Local Government Procurement Guidelines (pls confirm) 3. to ensure that the materials are as useful and relevant as possible. This training has been specifically developed for District Councillors and other non-technical personnel who are not involved in the detailed procurement process. accountable and transparent manner.

This means that the information in the box is important and you should make sure that you understand it before you continue. If you do not understand. so that you will notice and read it. please ask your trainer. Text Boxes: ! Sometimes you will see some writing in a box with a symbol like this. so they are explained in a glossary. which you will find at the end of your Participant Book. These words may be unfamiliar. Glossary: You will also see that some words in this Participant Book have been written in bold. Shaded Box: Other important information is put into a shaded box like this. Talking Symbol:  This symbol indicates there is an activity to participate in. Procurement Overview Module C – Participant Book 6 .Question Symbol:  This symbol indicates some questions for discussion or reflection.

from project design through to implementation.1 – Overview of Training Modules Module Induction Module Relevant step in planning and budgeting guidelines Content Roles and responsibilities of District Councils. as indicated in the italicised text below. Step 5: Monitoring and Evaluation • Procurement Overview Module C – Participant Book 7 .Training Overview This Procurement ‘Overview Training’ (Module C) is one in a series of modules that you will participate in. n/a – separate Induction • Module document produced by MOI to guide this training. Councillors and staff How to prepare a District Development Framework How to prepare a District Budget Financial Management procedures How to prepare the District Annual Work Plan and Budget Covers all aspects of project management. Other modules are shown as follows: Table I. How to conduct monitoring and evaluation of the District Development Plan Framework and its projects. Step 1: District Development Framework Step 2: Forecast district resources and assess budgets • • • • Planning Module Budgeting and Financial Management Module Investment Programming Module Implementation and Procurement Module A – Project Management Implementation and Procurement Module B – Local Government Procurement Implementation and Procurement Module C – Procurement Overview Monitoring and Evaluation Step 3: Prepare District Annual Work Plan and Budget Step 4: Implement Work Plan and budget • Step 4: Implement Work Plan and budget • Step 4: Implement Work Plan and budget • Gives an overview of the concept of procurement and some general understanding of what is involved in procurement for district projects. Covers local government procurement concepts and processes in detail.

Training Overview Unit Session Title Content • • • • Introductions.5 hours Session 2. Explain some principles of public procurement. Explore why procurement is important for district projects. welcome etc Aims and Objectives Expectations and Ground Rules Overview of Step 4 in the district planning and budgeting process and related tasks. Total training time = approximately 9 hours (2 days) Procurement Overview Module C – Participant Book 8 .3: Principles of procurement and ethical conduct 1. Explore the concept of ethical conduct and how it is relevant to procurement.2 – Procurement Overview Training. Outline the different activities in contract management. Introductory Session: Getting Started 30 minutes Unit 1: Introduction to Procurement Session 1. Introduce the different procurement methods available to districts.5 hours • • • • • • Session 2. Give overview of the steps involved in ‘open competitive bidding’. Definition of procurement.2: What is procurement? 1 hour • • • Session 1. Module C .1: Overview of Procurement and Implementation 1 hour Session 1.3: Contracts and Contract Management 1. Identify when it is appropriate to use the different procurement methods.5 hours • • • Evaluation of Training 30 minutes • Activities to gauge participants’ views on the completed training.5 hours Unit 2: Procurement and Contract Management Session 2. Become familiar with the relevant contract documents for districts.2: Procurement Methods 1. Understand the purpose and importance of contracts.1: Roles and Responsibilities 1. Outline the roles and responsibilities of key bodies and individuals in procurement. Introduce the role of the District Council in the procurement process.Table I.

depending on circumstances.3: Principles of procurement and ethical conduct (1.5 hours) Evaluation Session (30 mins) End of Day 2.2: What is procurement? (cont) (30 mins) Session 1.30am 10.30pm Break . Day 1 Time 8am-10am Session Introductory Session: Getting Started (30 mins) Session 1. End of training Procurement Overview Module C – Participant Book 9 .2 Procurement Methods (1 hour) Session 2.3: Contracts and Contract Management (1.30pm Break .Morning tea Energiser Session 2.3 – Indicative Timetable This timetable is a suggested guide to the timing of the 2 day training.2 Procurement Methods (30 mins) 10-10.30am 10.1: Roles and Responsibilities (1.Table I.1: Overview of Implementation and Procurement (1 hour) Session 1.2: What is procurement? (30 mins) 10-10.Morning tea Energiser Session 1.5 hours) Session 2.30am 10.30am 10. Note that the timetable may need to be adjusted during the training.35-12.35-12.5 hours) End of Day 1 Day 2 Time 8am-10am Session Session 2.

Introductory Session Getting Started • • • • • To create a comfortable and encouraging learning environment. Here are some of the things that your trainer might cover in this session: • • • • • • Welcome Introductions Aims and Objectives of the training Training Overview and Documents Expectations and Ground Rules ‘Car Park’ for questions Questions for Reflection: • • . Why did you come here today? What do you hope to take away from this training? Procurement Overview Module C – Participant Book 10 . To understand participants’ expectations of the training.  Session Objectives: In this session you will get to know your trainer and the other participants. To outline what the training aims to achieve and how this will happen. To provide an overview of the training. You will find out what the training involves and what you are expected to do. To set some agreed ground rules for the training.

3: Principles of procurement and ethical conduct Procurement Overview Module C – Participant Book 11 .1: Overview of Implementation and Procurement Session 1.2: What is procurement? Session 1.Unit 1: Introduction to Procurement  This unit contains the following sessions: • • • Session 1.

Step 3. To understand where procurement fits into the overall planning and budgeting process. using identified Relevant training module Planning Module Budgeting and Financial Management Module Investment Programming Module Implementation and Procurement Modules Module A – Project Procurement Overview Module C – Participant Book 12 .1. • Projects are implemented.1 Overview of implementation and procurement  Session Objectives: • • • • To revisit the District Planning and Budgeting guidelines. Step 4. including tasks and responsibilities. Resource forecasting and budget assessment • Compile the best possible information on all financial resources available for the coming year. Each step in the planning and budgeting process has a relevant training module.  Table 1. In this session we will revisit how procurement fits into this process and what this means for our role as District Councillors. 1.10. To identify procurement as one element of Task 4. ! The procurement process is one part of the overall district planning and budgeting process. Preparing a District Development Framework • A document outlining the 5 year vision and priorities within the district. Step 2. Implement Work Plan and Budget • Selected projects are planned and designed in detail. District annual work plan and budget • Decide which priorities in the District Development Framework should be funded in the coming year. as you can see in the table below.1 What are the District Planning and Budgeting Guidelines? The District Planning and Budgeting Guidelines are a set of steps and tasks that outline how District Councils should undertake all their planning and budgeting activities.Session 1. To give an overview of Step 4 in the district planning and budgeting process.1: Steps in the guidelines and relevant training modules Step in the guidelines Step 1.

7 1 Set up a monitoring framework for the District Development Framework Collect data to feed into the monitoring framework Do r egular monitor ing and follow-up on work plan and project implementation Prepare progress report on annual work plan and budget out-t urn Submit monit oring result s to MOI f or d iscussion and appr oval Regularly sh are updates on work plan pr ogress and budget outturn with VC/CDCs Present DDF.4 3 .1. • Overview diagram of the participatory planning and budgeting process SE 1 TP : C M U I Y O S L AIO S O M N C NUT T N T A SS T C N A A D SES E H I L N C N TO A RQ I AI N L E UR E ET MNS D TI T I R S C DVL P E T E EOMN FA E O K R MW R M N OI G OI R T N A D ES N N LSO S L AN D ER E - D T I T A T I AOY L N I G N B D EI G I R P RI P T R PA N A D U GT S C C N N SE 2 TP : A SS RSO RE V I A I I Y N SES ES U C A AL B T A D L B D E RQ I E E T U GT E U MN S R RSO RE ES U C F RC S A D OE AT N BDE U GT SE 5 TP : ET BI H O I O I G YT M SA LS M N R S SE T N U DRA E O I O I G N NET K M N R A D T N E AU T N I H O M N I S V L AI W C M U I E O T T SE 3 TP : P I R I E I TI T R R I S R I S D R PI I E OT S C OT A A S B D E A A AI I Y G INT U GT V I BL L T A SSMN SES E T I PE E T ML MN WR PA A D OK L N N BDE U GT D T I T OK I R WR S C SE 4 TP : DT I E PO C DSG W H EA D R JET EI N I L T CM UI I S O MN E T POE TML MNA I N N R J C I PE E T TO A D M N GMN AA E E T PA A D LN N A N ABD E N U L U GT • Table 1: Overview of steps and tasks Table 1: The district planningand budgeting cycle: Overview of steps.2 5 5 1 ? ? ? ? Step3: Preparedistrict annu Work Plan and B al udg et 3 .3 5 . E con/F in . work plan and budget monitioring results in consultative forum with VC/CDCs 5 -10 n. 1 Foc us sed effor t On.2 A closer look at the planning and budgeting guidelines  You will need to refer to your District Planning and Budgeting Guidelines to look at the following diagram and table. ? ? ? ? ? Step5: Monitoringa evaluation nd 5 .1 1 . and responsibilities S ub -com . managemen and monitoring of the project or intervention t Design and/or plan the project or intervention in detail Check environmental or social safeguards Prepare detailed cost estimate and financing plan for the project or intervention Prepare operation and maintenance plan Ensure align ment and con sistency with central level requiremen where needed ts Submit docu mentation for any projects funded by ext ernal partners for approval Implement projects or interventions 1 5 -10 1 5 -10 1 2 2 1 1 n.6 5 .project management.2 4 .1 5 .7 4 .a .8 1 . 5 3 n.com 's District Cou ncil Tech ni cal d epar tm en t Head ? ? ? Inpu t d ays Jan Feb Mar Apr May Ju n Jul Aug Sep Oct Nov Dec Step1: Developingthe Distric Development Fra wo t me rk 1 .  Please look at the following in Section 2: The District Participatory Planning and Budgeting process – an overview in your guidelines.1 3 . estim ated time input.2 2 .going/r outine ? ? ? ? ? ? ? ? ? P er distri ct ? ? P ri mary responsible S ec ondary responsibl e Facil itator s M ayor M OI Procurement Overview Module C – Participant Book 13 . Monitoring and Evaluation • Monitoring and review of projects to feed back lessons learned into the District Development Framework.4 Conduct national budget conference For ecast revenues and existing budget commitments Initial budget assessment by the District Council Communicate budget forecast to VC/CDCs 1.1 4 . annual cycle.9 4 .3 2 . Execut ive Secr etar y Ot her S u b. Management Module B – Local Government Procurement Module C – Procurement Overview 5.a .1 1 1 . Monitoring and Evaluation 1.5 5 .3 1 .1 0 1 .a .2 1 .5 3 .4 5 .1 2 Prepare Distr ict Profile (adjust) Determine national/line-ministry requirements to consider Take stock of any consultation/ planning proc esses already taken place Introduce District Council t o the district planning an budgeting process d Carr y out an awareness raising campaign Do participatory consultation process at village level of their long-term needs and priorities At end of visioning process.5 4 .6 1 .4 1 .3 4 .6 3 .a .1 0 Decide on modalities and participation in work plan implement ation Consult with VC/ CDCs wh will benefit f rom or be involved in the selected wor k plan interventions o Set up a work group to oversee design.1 2 .4 4 .7 Do f irst selection of priorities to be included in the District annual Work Plan Prepare first budget assessment of the annual Work Plan Prioritise Work Plan interventions within the budget ceiling Finalise annual Work Plan and Budget Present to and discuss with t he VCs/ CDC   representatives the final Work Plan and Budget Adopt Work Plan and Bud get Disseminate information on the Work Plan and Bud get to citizens 2 5 2 2 1 1 1 ? ? ? ? ? ? ? Step4: Implement Work plan an Bud t inclu d ge dingd ided p ec rojects 4 . select village-based Community Development Committees Prepare draft District Development Framework (in subsequent years review DDF) Carr y out participatory consult ations to get feedback on t he Distr ict Development Framework2 Revise District Development Framework Adopt the District Development Framework Disseminate and publicize the final District Development Framework 10 2 2 1 5 -10 21 1/ 2 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 5 5 -10 2 1 1 Step2: F cas dis ore t trict resources a ass nd ess budg ts e 2 . procurement and contract management procedures.9 1 .3 3 .2 5 .6 4 . n.7 1 .5 1 .8 4 .2 3 .

 Please refer to Step 4 in your copy of the District Planning and Budgeting Guidelines for more detail about each of the tasks outlined below. VC/CDC and beneficiary/user groups in project planning and monitoring.2: Step 4 tasks and responsibilities Task Task 4.1. Procurement activities are part of Step 4. • Identify roles of District Council. There are a number of tasks associated with Step 4. most of which involve the District Council. complexity.10.  See Box 4A: Determining a Community Project in your set of District Planning and Budgeting Guidelines. which includes the district priority projects for the year. Outline what is expected from VCs/CDCs and what they can expect from the District Council level. when. or delegated to others (private contractors or community based organisations). These decisions are made in January.3 Step 4 in the planning and budgeting guidelines  Step 4 in the Planning and Budgeting Guidelines relates to the implementation of the district’s annual work plan.  Table 1. Who and When? The District Council is responsible for making these decisions. • Decide whether the project will be implemented by the District Council.1 Decide on implementation of projects: which. The following are responsible for this task: • District Council • Executive Secretary • Heads of Technical Departments This task takes place in January.1.2 Consult with VCs/CDCs • • Announce and consult with beneficiary VCs/CDCs. technical requirements. who. where and how? Description The following needs to be determined: • Organise projects according to budget size. •  See Box 4B: Community Projects in your set of District Procurement Overview Module C – Participant Book 14 . We will go through this table so that you are familiar with all the tasks in Step 4. as we will see below in Task 4. Task 4. Explain the planning and development process and how VCs/CDCs will be involved. size.

• At least 2 CDC members representing the beneficiary villages. This task is covered in detail in Module A – Project Management. The project engineer must conduct the calculations for the works. This task is covered in detail in Module A – Project Management.5 Check environmental or social safeguards Check that the project will not have any bad impacts on the environment or people living in the area.  See Box 4C: Design and Management of Community Projects in your set of District Planning and Budgeting Guidelines. Procurement Overview Module C – Participant Book 15 . This task is covered in detail in Module A – Project Management. The Economic and Finance SubCommittee is responsible for this task. The following people should be on the Project Work Group: • Member of the Economic and Finance Sub-Committee. Task 4.7 Prepare Operations and Maintenance Prepare a plan which identifies: • What Operations and Maintenance activities are needed The Head of the relevant Technical Department is responsible for this task. • Relevant Technical Officers. This involves the relevant Technical Department Head and the Project Work Group. showing any community contributions. • Prepare a financing plan for the project. This task takes place in January. The Head of the relevant Technical Department is responsible for this task. This task takes place in March. Task 4.  See Box 4D: Technical Design and Specification in your set of District Planning and Budgeting Guidelines.4 Detailed project design Relevant Technical Department works with the Project Work Group to design the project in detail.3 Set up Project Work Group Each project requires a project work group to oversee the design. management and monitoring of the project. Task 4. The project design takes place in February. This task takes place in March. • Head of relevant Technical Department. • 2 representatives of community ‘user groups’ (must be non-CDC).Planning and Budgeting Guidelines.6 Prepared detailed cost estimate and financing plan This task involves the following: • Calculate cost of construction work and apply this to the Bill of Quantities (works projects). Task 4. Task 4.

Task 4.8 Ensure alignment and consistency with central level requirements Submit the project design to MOI for review and approval.10 Implement projects The Economics and Finance SubCommittee and MOI are responsible for this task.3: Implementation responsibilities Implementation task Project/intervention implementation preparation Procurement Contracting Contract management Undertake project/intervention activities Financial management and reporting Asset management Responsible Project work group District Board for the Award of Tenders District Council District Council Village members/contractors District Council District Council Participation Affected village members Affected VC Affected VC Village members/contractors ! As you can see. This task is covered in detail in Module A – Project Management.plan • • How much they will cost Who will pay the costs This task takes place in March. This includes the following: • Preparation • Procurement • Contracting • Contract Management • Direct participation in project activities • Financial management and reporting • Asset management A number of parties have responsibilities for the different elements of Task 4. The District Mayor is responsible for this task. This applies to projects which are funded by external partners. • Results in recurrent costs that have not been agreed to. Task 4. The MOI is responsible for reviewing and approving the project design. which will vary depending on the nature of the project. MOI may request changes to the project design if it: • Conflicts with sector planning. Task 4.10 is given below.  Table 1. • Does not conform to sector technical standards.10 is a very big task with a lot of different elements. with a Procurement Overview Module C – Participant Book 16 . This task takes place in March. Task 4. A table of who is responsible for the various elements of Task 4.Procurement.10 is carried out over an extended period.9 Submit documentation for approval Task 4.10. The rest of this training will focus on one of these elements . This task takes place in April.

2. including whether projects will be implemented by the District Council itself. 3. …………………………………………………………………………………………………………. …………………………………………………………………………………………………………. In which task does the District Council make decisions about how to implement its projects for the year. Procurement Overview Module C – Participant Book 17 . In pairs. Which task involves the activities of procurement.2 above. discuss and answer the following questions: 1. or outsourced to Community Based Organisations/private contractors? When does this take place? …………………………………………………………………………………………………………. contracting and contract management? When do these activities take place? ………………………………………………………………………………………………………….brief look at Contracting and Contract Management as well. …………………………………………………………………………………………………………. ………………………………………………………………………………………………………….  Quick Questions Study the information in Table 1. True or False? There are no District Council members on the Project Work Group.

continuous improvement and sound relationships with suppliers.2. There are certain procurement procedures that District Councils must follow in order to carry out any activities that require the expenditure of district funds. including whether to outsource or keep it in-house.1: The procurement cycle 6. To introduce the role of the District Council in procurement. • Hiring a technical expert to assist with the design of a project (services). 1. Evaluating the impact and learning from the procurement process. Contract Management to ensure that outcomes are delivered. Using lessons learnt to develop benchmarks for the future. To understand why procurement processes are important for District Councils. 1. Assessing needs in specific areas or among particular target communities. Designing and managing the tender process. Determining how best to deliver the service. as well as controls.2 What is procurement?  Session Objectives: • • • To define the term ‘procurement’. The procurement process spans a whole cycle of activities.Session 1. 4. Procurement Overview Module C – Participant Book 18 . Allocating resources – whether from own budget or donor funds. It is similar in meaning to purchasing. with specification and selection process. which are outlined in the diagram below. 2. This is to ensure that funds spent on behalf of the district’s population are directed in the most effective ways. but it can also include hiring the services of something or someone. Here are some examples: • Contracting a builder to construct a school classroom (works). works or services from suppliers.1 What is procurement? Procurement is the process of acquiring goods.  Diagram 1. 5. • Purchasing some furniture from a supplier (goods). 3.

 Table 1. Works and Services Category Works Refers to: Making. $$$$ Procurement is a tool that can promote local economic development through providing employment and business opportunities for people living within the district.2 District Councils are responsible for promoting economic growth in their locality. bridge.4: Goods.) • Construction of schools and health centres 19 Procurement Overview Module C – Participant Book . Such a procurement process can help District Councils in the following way:  Diagram 1.  This results in a greater local tax and economic base for the district.2 Why is procurement important to District Councils?  The procurement process involves the consideration of a number of quotes from different suppliers. etc. repairing or maintaining anything that is constructed or Examples: • Rehabilitation / construction of transport infrastructure (roads. works or services and these different categories are explained in the table below. which can be used for better service delivery. 1. We will look at the meaning of these terms in the following session.1. or a number of bids from different contractors.2. to determine which contractor or supplier will give the district the best value for its money. transparent and good value for money.3 When is a procurement process needed? A procurement process is generally needed when a district has a requirement for goods.2.  ! The procurement process is also important because it helps districts to organise contracts for development activities that are accountable.

how can we improve them? District Councils and Sub-Committees also have specific roles and responsibilities with regard to the procurement process and these will be outlined in Session 2.) • Project design and costing.g. hospital beds. repairs to mechanical equipment (physical services) 1. etc. shovels. training exercises (technical services) • Transportation. The following questions can help guide a District Council to make decisions on how to achieve the above aims.g. etc. desks.g. • The proper procurement rules are being applied. including: • technical services • physical services • Installation of drinking water supply systems • Rehabilitation / construction of irrigation systems Supplies (e. waste collection. wheelbarrows.) Miscellaneous tools (e.) School text books and educational materials (e. technical supervision of works and project implementation. Goods Any kind of physical thing that can be moved from one place to another. stationery. etc. goods and services are critical to the Council? Are we getting value for money and the outcomes we want from our contracts? How well are we complying with procurement rules from the centre? How do we keep fraud and corruption in check and ensure there is good practice throughout the Council? How well do we manage contracts? Are relationships with our suppliers/contractors good? If not. The District Council therefore has an important role in ensuring that: • All district money is spent in the best possible way.1. fridges.made by excavation or drilling in the ground and that is fixed in the ground and cannot be moved. • • • • • • • What are we spending as a Council and what are we spending it on? Are we clear on which works.) Medical equipment (e.2. Procurement Overview Module C – Participant Book 20 .4 What is the role of the District Council in procurement?  The District Council is ultimately responsible for all contracts relating to district projects. etc. chairs.g. • • • • Services Any kind of contract output that is not works or goods. freezers.

Questions for Discussion 1: Share your experience about the following: • What (if any) procurement processes currently take place in your district? • Are there any aspects of the procurement process in your district that could be improved? What are they? Procurement Overview Module C – Participant Book 21 .2.5 Glossary At the end of this Participant Book there is a glossary.  Please refer to your Glossary now and ask your trainer if there are any definitions that you are not sure of. which contains some terms that you will come across in procurement.1.

• Transparency: All steps in the procurement process should be recorded and available for public viewing. What does this mean? A District Council must be able to clearly demonstrate how it has reached a decision about who to award a contract to. It also means that a District Council must have clear procedures and standardised tender and contract documents. There are certain principles which must guide the public procurement process. that is. To explore the meaning of ‘corruption’ and how it can be prevented in local government procurement. funds which come from the tax payers of the district.3.3. but they are critical to a successful procurement and contract management process. Procurement Overview Module C – Participant Book 22 .1 What are public procurement principles?  Note that procurement for district projects is concerned with the use of public funds. To understand the meaning of ethical conduct and how it relates to practice. This is to ensure that districts get the best value for money in their use of public funds and that the whole community benefits from the process. not just 1 or 2 individuals. 1. 1. by ensuring that funds are spent in a transparent. The overall objective of the public procurement system is to provide value for money to the districts. such a procurement system is referred to as ‘public procurement’.2 Explaining the procurement principles  The principles are explained below.Session 1. efficient and fair manner. Therefore. These principles flow through every aspect of the procurement process. All interested parties must understand the actual procedures and processes by which contracts are awarded and managed. Note that some of them might seem obvious.3 Procurement Principles and Ethical Conduct  Session Objectives: • • • To understand some important principles of public procurement and their role in the proper use of public funds.

• Accountability: The District Council and all public officials who deal with procurement activities have responsibilities and obligations in the procurement process. but still ensuring a high quality result. the more likely that the District Council will get a better price and better quality of work for the project. (Specific examples of unethical conduct are provided later in the session). in order to select the best bid of quality and price. • Appeal rights: Potential contractors should be provided with a mechanism for review of grievances. What does this mean? There needs to be a clear process that bidders can access should they have any grievances with the procurement or the contracting process for a district project. These parties are accountable for all contracts awarded that involve district funds. it is essential that the quoted price for goods. Procurement Overview Module C – Participant Book 23 . No particular bidder should start from a position of advantage. works or services is as low as possible. What does this mean? Because the District Council is dealing with public money. regardless of where they are from. • Competition: The District Council should provide an opportunity for a number of contractors to bid. What does this mean? The District Council must ensure that all bidders receive the same information about a tender and that no one is given special consideration because of who they are. • Value for money: The District Council has a responsibility to make sure that it gets the best value possible for the funds it will be spending. What does this mean? The more contractors that are competing for a tender. What does this mean? The District Council is ultimately responsible for the decisions made about the award of contracts and must be able to take responsibility for the decisions made about district contracts. • Integrity: Public officials responsible for procurement activities should not involve themselves in corruption or collusion with suppliers or others. • Equal treatment/fairness: All bidders should be given an equal chance to compete for contracts. What does this mean? District Councillors must avoid unethical conduct in any of their dealings relating to procurement using district funds.

to make sure that a contractor is completing the work to a high standard and according to the specifications. If these roles are not clearly defined and separated. can you give an example of what can happen if these principles are not upheld in the procurement process? Procurement Overview Module C – Participant Book 24 . From your experience. The diagram below illustrates the separation of roles and how each role needs to be kept apart: Project Owner (District Council) Contractor (Private Sector) Project Engineer (Works) Questions for Discussion 2: Discuss the following questions in pairs and then feedback to the group: 1. the contractor might build something that is too big or too small. • Separation of Roles: All stakeholders are identified and their roles and responsibilities are agreed to and clearly defined. such as measurements and materials. there can be a conflict of interest. The separation of roles is a very important principle for District Councils to be aware of. • Quality of Works: The District Council should monitor all works to ensure that the specifications are adhered to in terms of quality and quantity. What does this mean? This means that the District Council has to provide details about its projects. specific and suitable specifications for the works. If not. This will ensure quality and avoid disputes between the district and the contractor on receipt. services or goods to be purchased. clear. What does this mean? There needs to be a system of monitoring and supervision of works. or not suitable in some other way. Why do you think it is important to have principles to guide the procurement process? 2.Other principles which guide the procurement process include the following: • Procurement According to Specifications: The District Council should specify accurate. contractors cannot conduct technical supervision of contracts and project owners cannot be contractors. What does this mean? Project Engineers cannot be contractors.

A Councillor must not take a proactive part to represent or in any other way advocate on behalf of any bidder or contractor. may not take part in the process that leads to the award of any contract in that area of service or be involved in the subsequent administration of that contract. A Councillor who is a representative of an organisation that tenders or quotes for Council work. If a Councillor is a representative of an organisation that tenders or quotes for Council work.3 Ethics in public procurement When we talk about ‘ethics’ we are referring to the moral principles and values which govern our beliefs. A conflict of interest is a situation where a public official’s decisions are influenced by their personal interest. without an open process. An example is the awarding of a district contract to a bidder who is a family member.3. In local government procurement. Given the above. actions and decisions. here are some examples of what Councillors should do in order to avoid a conflict of interest and maintain high ethical standards with regard to procurement. or are they ok as they are? • A Councillor must not arrange or participate in any meeting or other form of communication with bidders or potential bidders for Council contracts that has not been arranged by Council officers. • A Councillor who is or will be involved in the process that leads to the award of any Council contract must not discuss the matter if they are approached by or on behalf of anyone interested in obtaining that contract. Question: Is further explanation required. • • • • • • Procurement Overview Module C – Participant Book 25 . bidder or prospective bidder must remain confidential.1. A Councillor must not pressurise any officer to change his/her professional opinion on procurement issues or give direct instructions to officers. ethical standards are needed to ensure that decisions made are not tainted by conflict of interest. the organisation can only be awarded Council work through a process of open competition. and a Councillor must ensure that no confidential information is disclosed to unauthorised persons or organisations. A Councillor must not seek to influence the procurement decisions of officers or do anything that compromises or is likely to compromise the impartiality of officers. Confidential information relating to any tender.

Employees of a district and District Tender Committee members shall reveal any personal interest that may impinge on their dealings in the procurement process. Employees of a district and District Tender Committee members shall avoid any business arrangement that might prevent the effective operation of fair competition. the more honest you are in your answers. This activity asks you to read some statements related to ethics and indicate how much you agree or disagree with them.3. which includes the following: • An employee or member of the District Tender Committee should not use his/her authority or office for personal gain.  You will need to refer to Activity Sheet 1 at the end of this Participant Book in order to do this activity. • • • • • Procurement Overview Module C – Participant Book 26 . In this way.1 – Taking your ‘ethical temperature’ This activity gives you an opportunity to reflect on some of your own views on ethics and integrity and how they apply to your role as a District Councillor. It is often difficult to think about how our views and actions in our everyday lives might relate to concepts like ‘ethics’ and ‘integrity’. District Tender Committee members and suppliers/ contractors should be paramount and a pre-requisite. the more you will benefit from the exercise. 1. Your trainer will guide you in this activity with further instructions and explanation.4 The Code of Ethics All officials involved in public procurement are required to abide by the Code of Ethics. Honesty among district staff. Note that this activity is not a test and you do not have to share your answers with anyone. Information gained in regard of procurement work has to be treated as confidential and not used for personal gain. Business gifts should not be accepted from current or potential suppliers and contractors of the district. Activity 1.

It is essentially the use of public power for private gain. favours. Discussing or accepting future employment with a bidder or prospective bidder. which include for example: • Embezzlement – where a person steals money that has been placed in their trust or is under their control.• Employees of a district and District Tender Committee members should refrain from any business hospitality (e. dinners) that may be viewed by others as having an influence in decision-making. Favouring or discriminating against any bidder or prospective bidder in the drafting of technical specifications or standards or the evaluation of bids. including any offer of personal inducements or rewards. meals. Discussing a procurement with any bidder or prospective bidder outside the official rules and procedures for conducting procurements. especially by giving them jobs. removing. gifts. entertainment. Ignoring illegal or unethical activity by bidders or prospective bidders. Destroying. • • • • • • • • 1. travel. Ignoring evidence that the Code of Ethics has been violated by a member of the Tender committee. • Over-invoicing and claiming payments for no goods/services supplied.5 What is Corruption? Corruption can be explained as the opposite of ethical conduct.g. Corruption comes in various forms. public servant or other employee or representative of the district.3. Staff and District Tender Committee members and employees of the district • Some examples of unethical conduct include the following: • Revealing confidential or ‘inside information’ either directly or indirectly to any bidder or prospective bidder. • Nepotism – favouritism shown to relatives or friends. Procurement Overview Module C – Participant Book 27 . Requesting any other public servant or government official representing the district in a procurement process to violate the public procurement rules or procedures. hiding. discounts or anything of material value from bidders or prospective bidders. damaging. or improperly changing any official procurement document. Accepting or requesting money.

It frustrates competent and honest suppliers/contractors. Procurement Overview Module C – Participant Book 28 .• Taking bribes • Bid rigging • Split purchasing (Question: will everyone be familiar with these examples or do they require some further explanation?) The problem with corruption is that it benefits a small group of people. It leads to economic waste. but rather directed into the hands of a small group of people for their own personal gain. rather than doing their job properly. • Disqualify bidders who engage in any form of canvassing. • Any official suspected of non-adherence to the rules and regulations will be suspended and his or her benefits. and sanction staff and tender committee members by disciplinary action. • Require strict observance of procurement regulations. which is bad for overall economic development. • • • • 1. because people are more concerned with their own personal gain. It generates administrative inefficiency and ineffectiveness. inefficiency and reduction in productivity. which means that the general population finds it difficult to make a decent living. What are the penalties for any Councillors or staff found to be engaging in corrupt or unethical behaviour? Procurement staff and District Councillors are in a position of public trust regarding public funds. because development funds and aid money are not spent as intended.6 Preventing Corrupt Behaviour So what can we do to prevent corruption in the procurement process? • Perform internal audit to monitor the process. Therefore. regardless of position or function.3. blacklisting errant suppliers. • Penalise all those found guilty. which means that only a small select group of people are given good employment and business opportunities. • Institute checks in the various stages of the procurement cycle. It promotes nepotism. but most of the general population suffer the effects of corruption in the following ways: • It impairs economic development. which apply to all. withheld pending investigation. there are special rules governing their behaviour. including salary.

in addition to any remedies that may be sought in a court of law. will be subject to sanctions. This may include debarment of the company from Government contracts for a period of five years. will be summarily dismissed. Principles of Public Sector Procurement in your Local Government Procurement Guidelines. Any bidder. regardless of the value. Procurement Overview Module C – Participant Book 29 .• • • Officials found misappropriating government funds. contractor or consultant who attempts to influence a procurement process. supplier. Other offences involving non-adherence to the rules and regulations. or the administration of a contract by any unfair method.  Further information about procurement principles and ethics can be found in 2. including negligence and irresponsibility will result in sanctions.

1: Roles and Responsibilities in Procurement Session 2.2: Procurement Methods Session 2.3: Contracts and Contract Management Procurement Overview Module C – Participant Book 30 .Unit 2: Procurement and Contract Management  This unit contains the following sessions: • • • Session 2.

1 What are the main Roles and Responsibilities in district local government procurement?  Table 2. what are the consequences. while the ‘Notes’ document says the Mayor signs contracts on behalf of the district) Any specific roles and responsibilities? Economic and Finance Sub-Committee of the District Council The District Tender Committee Composed of: • Chairperson – a Head of Department or similar • • • • Ensuring that best practices in relation to procurement are strictly adhered to by the district.Session 2. thus it is ultimately accountable for all district contracts signed. and how can it be resolved? 2. Approve entries and removals from the Register of Suppliers and Consultants. Recommending the appointment of ad hoc Sub-Committees as 31 Procurement Overview Module C – Participant Book . • Is there ever any confusion about roles and responsibilities in relation to procurement and contract management processes in your district? If so.1. • To discuss where confusion over roles and responsibilities occurs and identify ways to improve understanding and clarity of roles and responsibilities. what is the cause of the confusion. Coordinate the development and approval of the Annual Procurement Plan.1 Roles and Responsibilities  Session Objectives: • To identify the roles and responsibilities of the different individuals and bodies in the district procurement and contract management process. (Confirm who signs contracts? Guidelines say it is the Executive Secretary. Questions for Discussion 3: Discuss this question in pairs and then feedback to the group.1: Roles and Responsibilities in district local government procurement Individual/Body District Councillors • • • • Procurement Responsibilities Receive quarterly reports on procurement Approve procurement plan annually Ensure that procurement rules are being applied District Council acts as project owner/employer.

 • • • • • • • • • Refer to 4.Individual/Body • Secretary – Procurement Officer (Head of Procurement Unit) 3 other Heads of Departments or similar. by the Executive Secretary. Establishing the District Tender Committee and appointing its members.3 Tender Committee in your set of Local Government procurement guidelines for more information. Communicating tender award decisions. Responsible for much of the day-to-day work relating to procurement. Certifying the availability of funds to support the procurement activities. classifications. • • All positions are appointed for 3 years. plans.2 Executive Secretary in your set of Local Government procurement guidelines for more information. receipt of goods and certification of works. Review and approve prior to any announcement of a procurement process:  the method of procurement  the bidding and contract documents  the specifications. Appointing the Tender Evaluation Committee. Recommending procurement procedures. Provide secretariat services and advice to the District Tender Committee. Review of all applications for variations. letters of invitation and shortlists Consideration and approval of recommendations for award of tenders issued under competitive tendering proceedings. Planning the procurement activities of the district. Overall responsibility for the execution of the procurement process in the district. Establishing a Procurement Unit and staffing it to an appropriate level. Signing contracts and LPOs for the procurement activities on behalf of the district. • • • • • • • • Refer to 4. Investigating complaints by suppliers. Implementing the decisions of the District Tender Committee. Executive Secretary  Procurement Unit Is part of the Department of Finance and includes qualified procurement staff. bid evaluation. addenda or amendments to on-going contracts. Respond to requests for clarifications from bidders. Managing all procurement activities of the district except adjudication and the award of contract. drawings and terms of reference as appropriate  advertisements. Preparing tender documents and advertisements of tender opportunities. Ensuring that the implementation of the awarded contract is in accordance with the terms and conditions of the award. Procurement Overview Module C – Participant Book 32 . bills of quantities. • • • ! No politicians (including District Councillors) should be members of the District Tender Committee. Procurement Responsibilities required for preparation of specifications. bid opening. Maintain detailed minutes of meetings and records of all decisions and recommendations. Preparing contract documents. contractors or consultants.

7 Tender Evaluation Committee in your set of Local Government procurement guidelines for more information.4 Procurement Unit in your set of Local Government procurement guidelines for more information. for approval by the tender committee. ranking them in order of quality and responsiveness. Technical assessment of all bids. Bid Opening Committees are formed as required by the District Tender Committee to conduct and supervise each opening session in accordance with the required procedures for bid openings. Report on the technical and commercial compliance of each bid in a technical evaluation. Register and maintain warranties and retentions. Monitor delivery schedules and the inspection and certification of delivery or performance. Carry out any other associated procurement tasks as assigned by the Tender Committee. including justified recommendations for rejection of bids and for the award of contract. Prepare an Evaluation Report. Procurement Overview Module C – Participant Book 33 . Process claims against retentions. Notify the supplier immediately of any failings in performance of his obligations. Maintaining and archiving records of the procurement process.  Tender Evaluation Committee Members must have specialist knowledge in the procurement undertaken and can be from outside the district. suppliers and consultants • Report any departure from the terms and conditions of an awarded contract to the procurement unit. Analyse the financial bids and report the results in a financial evaluation. • Proposes technical specifications. • • • • Refer to 4. Maintain a Register of pre-qualified suppliers.Individual/Body • • • • • • • • • Procurement Responsibilities Ensure that all contractual obligations of the District are performed promptly and efficiently. Coordinate the process for payment to suppliers.  Bid Opening Committee • Refer to 4. User Departments The User/Originating Department is the initiator of requests for procurement action and has responsibility to: • Ensure that the requirement for procurement is:  justified by the needs of the department  not for goods already available in the Stores  within the annual procurement plan  covered by available funding in the recurrent budget or development plan • Prepare procurement requisition • Provide input in the technical evaluation of tenders • Certify for payments to contractors.

Minutes shall be recorded by the Secretary of the Procurement Overview Module C – Participant Book 34 .5 User/Originating Departments in your set of Local Government procurement guidelines for more information. Professional development and training of staff and officials engaged in procurement. suppliers and the general public.Individual/Body • • • • • • Procurement Responsibilities Initiate departmental procurements as approved in the district budget. Overall coordination.  Ministry of Interior and Local Government (MOILG) • • • Refer to 4. physical or mental incapacity that renders a person incapable of performing the duties of that office and conviction of an offence.  District Internal Auditor • Refer to 4. Forward details of any required contract amendments to the procurement unit for action. Contract supervision. Conduct audits to ensure the district receives value for money.1 Ministry of Interior in your set of Local Government procurement guidelines for more information.1. Prepare any reports required for submission to procurement unit. Ensures goods are received. checked and certified as to quantity and quality before payment. Independent review of procurement complaints by aggrieved bidders. direction and development of procurement practices and procedures in Local Government. Maintains and archives records for contracts management. The District Tender Committee may invite government officers from within the district or other public institutions to attend its meetings for the purpose of assisting the committee on technical matters. incompetence. The Executive Secretary may determine the appointment of Chairperson and members at any time for abuse of office. 2. the District Tender Committee or the Executive Secretary. The District Tender Committee must maintain detailed minutes of meetings and records of all decisions and recommendations. It has the power to approve the recommendations for the award of district contracts and therefore needs to operate with high ethical standards and ensure that no members have any conflict of interest in all district procurements.2 The District Tender Committee The District Tender Committee has some important responsibilities with regard to a district’s procurement. corruption. such invitees shall have no vote. However.

works and services. In your group. invite. A copy of the detailed final Procurement Plan for the district must be provided to the MOI.Tender Committee and shall be confirmed by the committee in its following meeting and signed by the Chairperson and Secretary. solicit. a district shall not award any contract unless the award has been approved by the Tender Committee. read through the scenario and answer the question that follows. Likewise. Procurement Overview Module C – Participant Book 35 . All approvals for award of contract must be within the annual procurement plan for the financial year and the Committee must confirm that sufficient funding is available.  You will need to refer to Activity Sheet 2 at the end of this Participant Book in order to do this activity. or call for tenders or proposals in respect of a contract unless authorised by the Tender Committee. 3. Your trainer will assign you to a group of about 3 or 4 people. 2. The Tender Committee will be required to approve the detailed annual procurement plans for goods.  Activity 2. and to revise the procurement plan based on priorities. A district shall not advertise. You will need to refer to Table 2. 1.1: Roles and Responsibilities Scenarios This activity is designed to help you explore the different roles and responsibilities in procurement and what can happen when there is disagreement over them. The Tender Committee will report quarterly to the MOI on all procurement activities undertaken by the local government. as part of the annual budget submission process. Your trainer will assign you with a scenario from Activity Sheet 2.2 The District Tender Committee above. to help you answer the question.1.1 and the shaded box in 2.

These different methods are also summarised for you in the following table.2. Open Competitive Bidding (National and International) However. Procurement Overview Module C – Participant Book 36 . in some cases it is not efficient or appropriate to use the open competitive bidding method. Methods of Procurement in your Local Government procurement guidelines outlines each of the methods in detail.  Session Objectives: Questions for Discussion 4: Discuss the following questions in pairs and then respond to the wider group: • Can you name any of the procurement methods that are currently used in your district? Which method would you say is most commonly used? Why? 2.Session 2.2 Procurement Methods • • To understand the different procurement methods available for districts and when it is appropriate to use them. works or services. To become familiar with the tendering process for the ‘open competitive bidding’ method of procurement. in which case there are other procurement methods that can be used as follows: • • • Restricted Bidding Request for Quotations (RFQ). also referred to as shopping Single Source  Section 6.1 What are the main procurement methods available to districts?  • The local government procurement guidelines specify that an ‘open competitive bidding’ method should be considered first before any other procurement method for goods.

This is also the method used to procure consultancy services. • Where it is desired to attract tenders from a widest range of suppliers or contractors. National Competitive Bidding (NCB) See 6. • The goods. and should include all suppliers when there Can be used when: • The estimated contract values are within the limit for restricted tendering (specify limit?) • The requirement is of a specialised nature or has requirements of public safety or security. • The number of potential suppliers is limited. preregistered or known suppliers. are unlikely to attract adequate local competition. works or services is small and does not exceed the threshold for open international tendering Need to specify contract value? • Works or services are scattered geographically or spread over time • Works are labour intensive • Where foreign suppliers or contractors are not expected to be interested in the bid • The advantages of international competitive bidding are clearly outweighed by the administrative or financial burden involved. The tender is only advertised nationally. • An open competitive bid has failed to bring an Procurement Overview Module C – Participant Book 37 . A process of direct invitation to a shortlist of prequalified. which make an open competitive bid impossible. Restricted Bidding See 6. works or services by their nature or scope. 2. Can be used when the participation of foreign suppliers or contractors is intended. • Where the goods. • Due to the urgent nature of the requirement.2: Procurement Methods Procurement method 1. regardless of the estimated value of goods or works to be procured.2. however it is not expected they would be interested in such contracts. International bidders may participate. The tender must be advertised nationally and internationally. an open competitive bid is not practical (provided that the circumstances giving rise to the urgency could not have been caused by negligent conduct on the part of the district).2 in the procurement guidelines. • Where payment for the contract is to be made in whole or in part in foreign currency. Should be used in the following circumstances: • For high value or complex procurements. When is it used? Can be used when: • Payment may be made wholly in Somalia Shillings. An open competitive bidding process for all interested bidders. services and works are available locally at prices below international markets • The estimated cost of the goods. What is it? An open competitive bidding process for all interested bidders.2 Overview of Procurement Methods  Table 2. International Competitive Bidding (ICB) See 6.2.2 in the procurement guidelines. 3. The shortlist should be broad enough to assure competitive prices.3 in the procurement guidelines.

are 6 or fewer. The rest of the process is the same as for Open Competitive Bidding procedures. 4. Request for Quotations (‘Shopping’) See 6.4 in the procurement guidelines. This is based on comparing price quotations obtained from several suppliers, usually at least 3, to ensure competitive prices.

award of contract.

This method is appropriate when:

• The goods are readily available off-the-shelf or
are standard specification commodities of low value.

• The goods to be procured are so diversified that it
would be of no commercial interest for any single supplier to tender for them. Before this method can be used, the list of the suppliers to be contacted must be submitted to the District Tender Committee for approval and once approved, the request for quotations should to be sent to all approved suppliers simultaneously, in the interests of fairness and competition.

5. Single Source / Direct Contracting See 6.5 in the procurement guidelines.

This is a procurement method where goods are procured directly from a single supplier or manufacturer. The use of single source procurement method should be approved by District Tender Committee and the district should secure a specific waiver by the MOILG.

Can be used in the following circumstances:

• When only one supplier has the exclusive right to
the manufacture of the goods, carry out the works, or perform the services to be procured, and no suitable alternative is available.

• For additional deliveries of goods by the original
supplier, which are intended either as parts replacement for existing goods, services, or installations, or as the extension of existing goods, services, or installations where a change of supplier would compel the district to procure equipment or services not meeting requirements of inter-changeability with already existing equipment or services.

• Additional works, which were not included in the
initial contract have, through unforeseeable circumstances, become necessary since the separation of the additional works services from the initial contract would be difficult for technical or economic reasons.

• There is extreme urgency, provided the
circumstances which gave rise to the urgency were neither foreseeable by the district nor the result of negligent conduct on its part.

• The services require that a particular consultant
be selected due to his/her unique qualifications, or when it is indispensable to continue with the same consultant.

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 Activity 2.2: Procurement Methods
Study the information above about the different procurement methods in Table 2.2: Procurement Methods. In groups of 3, discuss and try to answer the questions that follow: 1. A project is approved for a primary school rehabilitation project in Sandy District. The estimated cost is 200,000,000Ssh. Which procurement method would you recommend? Why? ……………………..……………. …………………………………..…………….…………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 2. Seaside District wants to conduct a tendering process for a road construction project, estimated to cost around USD 50,000, with payment made in USD. It wants to attract a wide range of contractors and believes that the project is unlikely to attract sufficient local competition due to its large scope. Which procurement method is best suited to this project? Why? …………………….. …………….…………………………………..…………….…………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… 3. Friendly District conducted an open competitive tendering process for the supply of some school and office furniture. The process failed to bring an award of contract, so the Procurement Unit has decided that another procurement method is needed. Which procurement method can now be used? Why? ……………………..…………….…………………………………..…………….…………………… …………………………………………………………………………………………………………… 4. A flash flood in the west of Somaliland resulted in the collapse of a bridge, which is part of a highway linking outlying towns to the main market centre in the district. The District Council has an urgent need for procurement of works in order to repair the bridge as soon as possible. Which procurement method can be used in such a situation? Why? …………………….. …………….…………………………………..…………….…………………… ……………………………………………………………………………………………………………

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2.2.3 Overview of the Open Competitive Bidding Process Because the Open Competitive Bidding process (national and international) is the preferred procurement method for districts, it is important to familiarise ourselves with the process involved. The Open Competitive Bidding process can be divided into a number of stages: • Preparation Stage • Invitation to Tender and Advertising Stage • Response Management Stage • Contract Award Stage • Contract Management Stage These stages are outlined in Diagram 2.1 and Diagram 2.2 below, as well as Diagram 2.4 in the following session.

 Diagram 2.1: Steps in the tendering process for open competitive bidding –
Preparation Stage What steps? 4. Prepare Tender Documents and Tender Notice What information?
See 9.2 and 10.1 in the procurement guidelines See Form A.1 and B.1-B.6 in Somaliland District Bidding Documents. See 9.2 and 10.1 in the procurement guidelines

Who is involved?


3. Identify procurement method

- Procurement Officer drafts tender documents and tender notice. - Tender Committee reviews and approves, following any necessary revisions.

- Procurement Officer determines method to be used. - Tender Committee reviews and approves method. - User Department proposes technical specifications. - Procurement Unit/Technical Advisor may need to assist with specifications. - User department initiates procurement request. - Procurement Officer checks cost and funding source.

2. Specify the requirement

See 9.1.2 in the procurement guidelines

1. Identify requirement to be procured

See 9.1.1 in the procurement guidelines

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.Tender Committee approves or rejects the recommendation.Bid Opening Committee is responsible for the opening of each bid according to set procedures. Diagram 2. . .Procurement Unit is responsible for receiving bids and keeping them safe in a locked tender box until the designated opening time.Procurement Unit coordinates sale of tender documents to interested bidders and any necessary clarification of the documents. See 13.2 in the procurement guidelines and Form D.1 in Somaliland District Bid Opening and Evaluation Documents.6 in the procurement guidelines and Form E. .Tender Evaluation Committee conducts technical and financial evaluation of bids and completes an evaluation report. Advertisement of Tender Procurement Overview Module C – Participant Book 41 . Receipt and Custody of Tenders  2. See 11.2 in District Bid Opening and Evaluation Documents. Who is involved? 6. 3. 5. 1. Tender Opening . Issue Tender Documents See 13. Tender Evaluation 4.1 in District Bid Opening and Evaluation Documents.Secretary of the Tender Committee is responsible for the keys to the locked tender box.Procurement Officer arranges for advertisement of approved tender notice. . See 14.Tender Evaluation Committee submits a report to the District Tender Committee with a recommendation for the award of contract. .Procurement Unit coordinates the administration of the bid opening process. .1 in the procurement guidelines See 11.2 in the procurement guidelines. Recommendation to Tender Committee .2: Steps in the tendering process for open competitive bidding – Invitation to Tender/Advertising Stage and Response Management Stage What steps? What information? See 14.7 in the procurement guidelines and Form E.1 in the procurement guidelines.1-14.

This document is essentially the contract signed between the District Council and the winning bidder. It should include the following attachments: Form B2 – Form of Tender Form B3 – Appendix to Form of Tender Form B.5 – Proposed programme of works Form B. This document is completed by the bidder and submitted as part of the bid.2 apply to both National Competitive Bidding (NCB) and International Competitive Bidding (ICB). This gives the bidders some information on how to complete the tender forms and other important information about the tender process. apart from the need to advertise international bids in the international media and to allow a longer time before bid closing. The bidder must complete it with information about his/her company.2 – Form of Tender.1 – Invitation to Bid Form B. labour and equipment.3 – Appendix to Form of Tender What is it for? For advertising tenders through an open competitive process.  Table 2.1 – Instructions to Bidders Form B. or is this more detail than they need? Can take these out if they are not necessary. This document is submitted as part of the bid. Some information is filled in by the bidder and some information is filled in by the Tender Committee.3: Summary of Somaliland District Bidding Documents Form Form A.! Diagrams 2.2 – Form of Tender Form B. along with Form B. The form is designed to demonstrate how the bidder is qualified to undertake the required work. Question: should we include these tables below so that they have an overview of the composition of the Bidding Documents/Bid Opening and Evaluation Documents. along with Form B.2 and Form B. to reflect the slower communications involved. There are no procedural differences between ICB and NCB.1 and 2.1 – Form of Agreement Procurement Overview Module C – Participant Book 42 . This form is submitted by the bidder.6 – Letter of Acceptance Form C. This is completed by the bidder and states his/her bid price for the tender. This has additional information about the tender. It contains a works programme for all the different activities that are part of the project. This letter is filled in on behalf of the District Council (the employer) and signed by the Executive Secretary? It is addressed to the winning bidder to indicate that his/her bid has been accepted. staff.3.4 – Qualification Information Form B.

which is Financial Evaluation. for example.4: Summary of Somaliland District Bid Opening and Bid Evaluation Documents Form Form D.3 – Statement of Works This document outlines the general conditions of the contract. Example – This is a completed example of how to conduct a Financial Evaluation of a number of bids. Attendance Register for Tender Committee. 2.1 – Bid Evaluation Form E. Evaluation Report 2. Attendance Register for Bidder representatives present. This document contains the following information: • Summary description of works • Bill of Quantities • Drawings • Specifications  Table 2. Technical Qualification – This assesses each eligible bid against a number of criteria and gives each bid a score. Financial Evaluation – This assesses each bid according to financial criteria. Bid Evaluation . 3. MOI. 4. environment. This form is used during the bid evaluation process and includes: 1. JPLG representatives present. 3. This set of forms is related to the evaluation of bids and includes: 1. health and safety and reporting.2 – Bid Evaluation Summary Procurement Overview Module C – Participant Book 43 .2 – Conditions of Particular Application Form C. Received Bids – lists all bids received along with the bid amounts.Form C.Engineers 4. those relating to labour. Technical Evaluation Team Justification for Preferred Bidder 3. to determine whether a bid can go on to the next stage.1 – Bid Opening What is it for? This is used during the bid opening process and includes: 1. Eligibility – This assesses each bid and bidder against a number of criteria to determine whether the bid is eligible for technical evaluation. 2. Bid Evaluation – Tender Committee Form E. Tender Committee decision and justification 5.

1 What is a contract? A contract is a formal legal agreement.5: Contractual Obligations Contractor/Supplier/Service Provider • Deliver the goods. Therefore.3.Session 2.  Session Objectives: 2. usually written. at the time. • • To become familiar with the format of a typical district contract document. which means that it issues and signs the contract. Act in good faith and deal fairly. By law. the District Council has an important responsibility in terms of accountability. The procurement contract enters into force when the contract is signed by the supplier. and in the location that has been specified by the parties. the District Council is the contracting party. To raise awareness of the activities involved in contract management. Accept liability of the manufacturer of the goods in the case of injury to the persons or objects. 2.3. Pay the agreed price. Ensure the conformity of the goods to the specifications. Accept liability in the case of injury to persons or objects.2 What are the obligations of the contracting parties? Both sides have contractual obligations that need to be upheld. but generally they include the following:  Table 2. with regard to all district contracts. The specifics will vary depending on the actual contract. service or works in the way. Local Government (District Council) • Accept the goods or services provided they meet the contract terms. • • • • • • • • Procurement Overview Module C – Participant Book 44 .3 Contracts and Contract Management • To understand the importance of a contract as a legal document and the role of the District Council as the contracting party. Act in good faith and deal fairly. It also means that the District Council is ultimately responsible for the terms of the contract agreement. between different parties. contractor or service provider and by the Local Government. Deliver the documents that are related to the goods or service. Transfer of title of ownership for a product.

3 (includes Summary description of works.3. (if all goes wrong). Procurement Overview Module C – Participant Book 45 .3. Drawings. The contents of the contract document depend on the contents of the tender documents and the nature of the tender. C.1 (with Attachments: Form of Tender Form B. Appendix to Form of Tender Form B. in your set of ‘Somaliland District Bidding Documents’. for approval.2. to protect the local government/district so that the negative impact on the business is as low as possible? The designated authority of the District Council is the Executive Secretary.3 How are contract documents prepared and signed? The Procurement Unit is responsible for preparing a contract document for submission to the successful bidder for signature.1. can you explain what was the cause of the problem and how could it have been avoided? 2.2 • Statement of Works Form C. The Procurement Unit completes the draft contract document and submits it to the District Tender Committee together with all relevant attachments.Questions for Discussion 5: Discuss the following questions in pairs and then respond to the wider group: • What are some of the problems that you know about that can occur with contracts? If using a real example. The following diagram outlines the process of preparing and signing contract documents. Specifications)  A format for district contract documents can be found in Forms C. (need to confirm this) The contract for a works project consists of the following documents: • The Form of Contract Agreement (based on the winning Bid) Form C.2 and C. Bill of Quantities. who signs all contracts on behalf of the District.3) • Conditions of Particular Application Form C. The major issues related to preparing the contract are: • What outcome does the local government/district want as a result of the contract? • What does the local government/district want to avoid in the contract? • What options are available.

Dispute Resolution – Disputes can arise during project implementation for a number of reasons including disputes over payments or the conditions of the contract. the contractor must wait until the end of the ‘defects liability period’ (is this 90 days for a works project?). These are just a few examples. LG 3. The approved contract document is finalised and produced for signature (4 copies?)  2. The contractor must submit a payment claim and a progress report will be completed by the Technical Supervisor before a payment can be made. who is usually the District Engineer. Publish the results of the award of contract in newspapers and on notice boards.  5. because it is this part of the project implementation process that ensures the project is actually completed as intended. • • • • Procurement Overview Module C – Participant Book 46 . Record the contract on the contract register of the Procurement Unit.  4. which outlines when payments can be made.3: Contract Preparation and Signature  1. Progress Reports – These reports are an important mechanism for monitoring progress and are a requirement whenever the contractor submits a payment claim. based on completion of a certain percentage of the works. Then. to receive the final payment. disputes over delays in performance. there is usually a payment schedule. Store 1 copy on file in the District Office and 1 copy to the contractor. Payments – For a works contract.3. most of which should be resolved through discussion between the contractor and the responsible officer. This is the role of the Technical Supervisor. The winning bidder is formally invited to sign the contract. Contract Management includes the following activities: • Supervision – Any works must be subject to ongoing supervision to ensure good quality and adherence to the specifications. or poor quality work on the part of the contractor. Send 1 copy to MOILG and 1 copy to Auditor General. Check that the contract is correctly signed and each page initialled by both parties. In some cases the Executive Secretary will need to be consulted to reach a resolution of the dispute. 2. It is the job of the Technical Supervisor to prepare these reports. Diagram 2.  Unsuccessful bidders are notified. Contract completion and handover – On completion of the works an interim takeover certificate will be issued if the work is satisfactory.4 What is involved in Contract Management? Contract Management is very important.

Contract is signed by the Executive Secretary and winning bidder.2 and C. See 14. 5.5 in the procurement guidelines.5 Overview of the steps in Contracting and Contract Management The diagram below gives an overview of the steps involved in the contracting and contract management process.Technical Supervisor approves payment certificates. Procurement Overview Module C – Participant Book 47 . Defects Liability Period See 15.The Tender Committee approves the recommendation for award of contract and gives authority to proceed to the award of contract stage.6 in the procurement guidelines. . . 6. 2. Contract Completion What information? See 15. after 50% completion of works).6 in the procurement guidelines.Tender Committee approves final contract documents.14 in the procurement guidelines and Forms C. Contract Supervision See 15.Procurement Unit processes payment claims.4: Steps in the tendering process for open competitive bidding – Contract Award Stage and Contract Management Stage What steps? 7. Progress Reports See 15. .8 in the procurement guidelines. .Inspection and Acceptance Committee issues an interim takeover certificate.6 in the procurement guidelines. . Some payment is retained until the end of the defects period.3 in Somaliland District Bidding Documents. C.Technical Supervisor (District Engineer) conducts day to day supervision and liaison with the contractor.Procurement Unit finalises contract documents and prepares copies for signature.1. . . . Approval by the Tender Committee See 14.5 in the procurement guidelines. Who is involved? . 4. Contract Award and Signing  1.Technical Supervisor prepares reports to monitor implementation progress and when the contractor submits a payment claim (for example. . Payments See 15.2. 3.  Diagram 2.Inspection and Acceptance Committee issues a final takeover certificate and any final payment made.3.

 Note that these forms are also provided in your ‘Somaliland District Bidding Documents’ for future reference: • Form C1 – Form of Agreement • Form C2 – Conditions of Particular Application • Form C3 – Statement of Works In groups of 4.. Activity 2.……………………………………………………………………… 2. Your task will be to examine an example contract document and check to make sure that it has been filled in correctly.……………………………………………………………………… ! This is the final session in this training program.……………………………………………………………………… …………………………………. explain the error) …………………………………. explain the error) …………………………………. explain the error) …………………………………... This activity is designed to familiarise you with the content of a typical contract for a district project.  You will need to refer to the example contract provided in Activity Sheet 3 at the end of your Participant Book for this activity...……………………………………………………………………… 3..……………………………………………………………………… …………………………………..3: Sandy Desert District Council Contract A contract is an important legal document and therefore attention to detail is essential when preparing and signing contracts on behalf of the district. Procurement Overview Module C – Participant Book 48 . Has the contract number been completed correctly? Y/N (If no. study the example contract and payment schedule in Activity Sheet 3 and answer the following questions: 1. to gauge your reactions and opinions to the training you have just completed.……………………………………………………………………… …………………………………..……………………………………………………………………… ………………………………….……………………………………………………………………… ………………………………….. Has the correct person from the District signed the contract? Y/N (If no. Are the progress payments correctly calculated? Y/N (If no. Your trainer will now guide you through an evaluation session.……………………………………………………………………… ………………………………….

a school or health clinic. These are precise drawings which specify the dimensions of a particular construction. A legal document specifying an agreement between two parties for supply of goods or performance of work at a specified price. performed by individuals or firms having the required specialised expertise and experience. A situation in which a public official's decisions are influenced by the official's personal interests A situation in which someone making a decision in an official capacity stands to profit personally from the decision. The stage of a project where you actually put in place the activities that have been identified during the planning process. Bidder Conflict of Interest Services of an intellectual or advisory nature. products and equipment. business executive. which are used as the basis for developing a particular construction. whose personal interests might benefit from his or her official actions or influence. consultant services or technical services. including raw material. works or services resulting from procurement proceedings. Detailed description of construction. These are drawings and specifications. or the like. construction. prepared by an engineer. for example. consulting services or technical services. workmanship and materials of work to be undertaken. Any potential party or the party to a procurement contract with the District Council. Objects of every kind and description. The acquisition by any method of goods. works. Any participant or potential participants in the procurement process. An agreement between the District Council as procuring entity and a supplier or contractor for the acquisition of goods. Designs Drawings Goods Implementation Procurement Procurement Contract Specifications Supplier or contractor Procurement Overview Module C – Participant Book 49 . • • • Consulting Services Contract The circumstance of a public officeholder.Glossary Bidding Documents Refers to the bid solicitation documents or other documents for solicitation of offers or quotations for the delivery of goods.

Activity Sheets Activity Sheet 1: Taking your ‘ethical temperature’ Activity Sheet 2: Roles and Responsibilities Scenarios Activity Sheet 3: Sandy Desert District Council Contract Procurement Overview Module C – Participant Book 50 .

It is ok to be ethical when you live in a wealthy country. ethics are a luxury. so why Disagree shouldn’t I? Strongly Agree 5. It is very hard to make a decent Disagree living without accepting gifts and favours on the side. Strongly Disagree Strongly Agree 6. 2. Strongly Disagree Strongly Agree Strongly 3. Everyone engages in unethical Strongly conduct from time to time. The only way to get things done is to bend the rules from time to time. It’s how things work. Strongly Disagree Strongly Agree Procurement Overview Module C – Participant Book 51 . mark with an X where you feel your views are on the continuum. Giving and taking bribes is just part of the system.Activity Sheet 1: Taking your ethical ‘temperature’ For each statement. Strongly Agree 4. I will be unpopular with my colleagues if I try to take a stand against unethical behaviour. but when you are poor. Strongly Disagree Strongly Agree 1.

Who is correct – the Mayor or the Procurement Officer? Why? ………………………………………………………………………………………………………… Scenario 2 An open competitive bidding process was being initiated for a district construction project.. The Chairman of the District Tender Committee said that it is the role of the District Tender Committee to appoint the Bid Opening Committee and that it is essential that the bids are opened by this Committee and not the Tender Evaluation Committee Question: • . who must review and approve the draft tender documents and advertisement before any procurement can be announced.. Who is correct – the Executive Secretary or the District Tender Committee? Why? ………………………………………………………………………………………………………… Procurement Overview Module C – Participant Book 52 . Question: • . because he had a special interest in this project.. as it is the District Tender Committee. The Procurement Officer said that he could not do this.. not the Mayor. ………………………………………………………………………………………………………… . ………………………………………………………………………………………………………… .Activity Sheet 2 – Roles and Responsibilities Scenarios Scenario 1 Success District planned to advertise a tender nationally to build a water harvesting system. The Executive Secretary said that for this process he would not appoint a Bid Opening Committee and that the bids could be opened by the Tender Evaluation Committee instead. The Mayor approached the Procurement Unit and asked them to prepare the tender documents and the advertisements and to send them to him for approval.

.………………………………………………………………………………………………………… .. ………………………………………………………………………………………………………… . Procurement Overview Module C – Participant Book 53 .

The District Tender Committee said that it could only act on a recommendation from the Tender Evaluation Committee. Question: • .. The Tender Evaluation Committee could not decide who should be awarded the tender. ………………………………………………………………………………………………………… . Councillors were not allowed to be on the District Tender Committee and that he had the authority to appoint the committee members... In their report they said that because it was a low value contract. He said that according to the rules. Recently..Scenario 3 A district put out a tender for the supply of some school furniture. so therefore he would dismiss the Councillors from the Tender Committee. Scenario 4 Seaside District has had District Councillors serving on its District Tender Committee for a number of years. so it was important that the Tender Evaluation Committee complete an Evaluation Report and make a recommendation about the contract. a new Executive Secretary started working in the District. The Councillors said that the reason they were on the District Tender Committee was due to a lack of expert technical people and Department Heads in the district and that they should be allowed to stay on the committee until the end of their 3 year term. Question: • Who is correct – The Tender Evaluation Committee or the District Tender Committee? Why? ………………………………………………………………………………………………………… . the decision could be made by the District Tender Committee. ………………………………………………………………………………………………………… . Who is correct – Executive Secretary or the Councillors? Why? ………………………………………………………………………………………………………… Procurement Overview Module C – Participant Book 54 .

………………………………………………………………………………………………………… . Question: • . the Procurement Unit had too many other tasks to do. ………………………………………………………………………………………………………… .. Scenario 5 A Tender Evaluation Committee was appointed to evaluate the bids for 2 different tenders. Who is correct – The Tender Evaluation Committee or Procurement Unit? Why? ………………………………………………………………………………………………………… Procurement Overview Module C – Participant Book 55 . ………………………………………………………………………………………………………… .. The Procurement Unit said that they could not do this task.. such as preparing draft contracts for both of the tenders.………………………………………………………………………………………………………… ... Because there was a tight deadline. they asked the staff of the Procurement Unit to do the evaluation for 1 of the bids and write the Evaluation Report. as it was the responsibility of the Tender Evaluation Committee and in any case.

.Circle The Correct Sector 1.. These Drawings. Education 3..herein after referred to as “the Employer” on one part and ………… 19th ……. Specifications and Bill of Quantities have been signed by and on behalf of the Employer and the Contractor. Procurement Overview Module C – Participant Book 56 . Somaliland ………………………(address) (hereinafter referred to as “ the contractor”) on the other part. . The District Council desires the execution of certain works known as: Project Name…Construction of Primary School Staff Quarters in ‘Friendly Village’ … Location …….Success Region.. Success Region. . Akber Construction ……………… (name of company) of …… Yardstick Rd. …………. Unity Town. . ……………………………………………………………………………… (hereinafter called "the Works") and has prepared Drawings. Specifications and Bill of Quantities showing and describing the works to be done. Agriculture 7. 2010. . S/L / 12 / 01 / 24 / 11 / 006 This shows the year and the project number for that year. Description of Works……Build a 2 bedroom dwelling to accommodate teaching staff from the local primary school. Water and Sanitation 4.. Infrastructure (Roads. district and the village where the project will be. . Day of . Somaliland……. .. Sector . between the District Council of …… Sandy Desert District ………………….. Culverts). . Livestock 6. Sandy District . March.Activity Sheet 3 – Sandy Desert District Contract Form C1 Agreement Contract No: This shows the contract is in Somaliland.Friendly Village. Bridges. .…. .. Sandy District. 5. This is the code for the region. . Environment THIS AGREEMENT made this. Health 2.

. …fifty thousand US Dollars….. They shall be taken as complementary and mutually explanatory of each other..... fifty thousand US Dollars.  Contractor’s Bid  Addenda to Bidding Documents..... The Employer agrees to pay the Contractor the sum of US $....  The Letter of Acceptance... Procurement Overview Module C – Participant Book 57 .... IT IS AGREED as follows:1... 2. however in the case of conflict or inconsistency they shall take precedence in the order set out above.......(in words) (hereinafter called "the Contract Sum") or such other sum as shall become payable to the Contractor in consideration of work performed at the given rates and at the time and manner stated in the Conditions of Contract.. Part II.........000.. Part I.000……………… (in figures)....... The following documents shall form part of this Agreement: This Form of Agreement.....  General Conditions of Contract.OFFER: The Contractor has offered a bid for the services for the amount of US Dollars … $50.  Conditions of Contract:  Conditions of Particular Application.......... (in figures) . to execute the works shown upon the said Drawings and described in the Specifications and Bill of Quantities subject to the Conditions of Contract annexed hereto. NOW THEREFORE.  The Priced Bill of Quantities..  Qualification Information.......... All the above documents are hereinafter referred to as "the Contract"..…$50.......(in words) as per attached Form of Tender and Appendix to the Form of Tender........  Statement of Works  The Drawings.....

........ Akber Designation:... Signature of Contractor's Witness Trustworthy................ Designation:...................... Designation:... Success Region............ Mr Countmoney...... Mr Mohamed Name: ... Palm Rd... Signed on behalf of Employer Name:.............. Sandy Desert District........Busyman.... Sandy District .... Signed on behalf of Contractor Name:................. Contractor.... Signature of Employer's Witness Trustworthy... Address:........................... Success Region..... I Countmoney...... .................. Signed : For review: please confirm who can act as an Employer’s Witness and who can act as a Contractor’s Witness? .. Constructions ...... Yardstick Rd...... Unity Town...... Mr Busyman.... Address: ............. ...3... Yardstick Rd.... Somaliland .. in all respects. Address:............ Sandy Desert District ................ the Contractor hereby agrees to carry out the above-mentioned works in conformity.......... Success Region...... Somaliland ............ Unity Town........ Mohamed Reliable..... Designation:............. Executive Secretary..... Address: Reliable……... Akber Constructions....................Foreman............ Sandy District ...... ............. Somaliland... Success Region...........Procurement Officer.. In consideration of payment to be made by the Employer. Procurement Overview Module C – Participant Book 58 .. Unity Town...... Palm Rd... Unity Town...... Somaliland.. ........ Mr Ibrahim Name: .......... Sandy District ... Sandy District ............ with the provisions of the Contract....

Not sure what information needs to go in this table below – pls complete if possible JPLG OSR/Fiscal Transfer Others Procurement Overview Module C – Participant Book 59 .

......10........... which is equivalent to 40% of the total contract value due within 2 weeks of: • • Progress Report on 50% Completion of the Project Certificate of Payment Third payment of US $..... which is equivalent to 40% of the total contract value due within 2 weeks of.000...000…..............10.000..Payment Schedule: The payment schedule is as follows: First payment of US $....... • Signing of this Agreement Second payment of US $ ……20.000....20............. which is equivalent to 10% of the total contract value due within 2 weeks of: • • Practical Completion Report (100% Completion) of the Project Certificate of Payment Fourth (Final) payment of US $. which is equivalent to 10% of the total contract value due within 2 weeks of: • • Final Completion Report (at expiry of defects period) Certificate of Final Payment Procurement Overview Module C – Participant Book 60 ...