KYAMBOGO UNIVERSITY

SCHOOL OF MANAGEMENT AND ENTREPRENEURSHIP

BACHELOR OF PROCUREMENTAND LOGISTICS
MANAGEMENT
COURSE UNIT: E-PROCUREMENT
LECTURER NAME: MR. SSENKUNGU CLIVE
TASK: GROUP COURSEWORK

COURSER CODE: MPL3202

NAME REG NO SIGN
OKEDOL UMAR 19/U/PLE/6401/PE
KAYONDO PAUL 19/U/PLE/6253/PE
MPAGI DERRICK 19/U/PLE/

LUBEGA RAYMOND 18/U/PLD/12603/PD

1) Choose a public organization of your choice, and come up with a

survey on the transition of that organization from manual
procurement process to electronic procurement.
 KAMPALA CAPITAL CITY AUTHORITY (KCCA)

Brief Executive Summary

Kampala Capital City Authority (KCCA) is the legal entity, established by
the Ugandan Parliament that is responsible for the operations of the capital
city of Kampala in Uganda. It replaced the Kampala city council. (KCC).

Vision.
To be a vibrant, attractive and sustainable city.

Mission.
To deliver quality services to the city.

Manual procurement
Manually, the common practice for procurement requires an agency to place
an advertisement in a newspaper, place a notice on a bulletin board, or send
an invitation to a select list of suppliers.
The suppliers contact the agency to receive a bid package, attend a bid
conference, and then submit their response directly to the agency. The
government procurement is conducted in accordance with a set of
regulations defined by laws and financial administrative controls.
The procuring agency is responsible for supporting the procurement process,
which includes the creation of bid packages for multiple interested bidders,
and for notifying bidders of any update or amendment to the bid package
including any responses to queries.

Electronic procurement
In electronic procurement, with an e-GP system, the procuring agency places
its advertisement information, bid documents, and any updates on the system
once and suppliers interact with the system to retrieve bid opportunities,
submit queries, and submit a response. There is no longer a need for any
direct communication or interaction between the agency and the supplier
during the procurement process unless there is a public bid conference and a
public bid opening, which may also be conducted online through the system.
 A survey study on the transition of Kampala Capital City Authority
from manual procurement process to electronic procurement.
 The transition to electronic government procurement system started with
engagement of stakeholder entities which included Training of Trainers
(TOT).This process involved training individuals who were supposed to
train others.
 Then this was followed by training of users. These were the departments,
Procurement Disposal Unit (PDU), managers and many other important
users.
 Sensitization of selected entities (11 in number). These were made aware
about the need to change from manual procurement process to electronic
Government Procurement.
 Sensitization of suppliers.
 Registration of suppliers on the electronic Government Procurement Portal.
 Login. The login involves two steps
 Username and password.
 Two factor verification.
Each user has a username and a password
Reasons for the transition from manual procurement process to electronic
Government procurement by Kampala capital city authority (KCCA) as a
public entity.
 The need to increase the absorption of quarterly government funds.
Through the use of EGP, KCCA has able to allocate the yearly quarterly
funds to the different projects thus maximizing the utilization of funds
through running projects in phases.
 The need to increase bidder participation. The use of EGP in KCCA has
attracted a wider base of bidders than manual procurement which was
limiting access to bidding for people far away from Kampala as EGP calls
all eligible registered bidders worldwide un like the manual procurement
that involved the use newspapers that are valid within 24hours thus
attracting those suppliers that get access to bid.
 The need to reduce procurement turnaround time. The use of manual
procurement wasted a lot of time on travels and processing bids, this called
 for the use of EGP that enables timely response to bids i.e., Bid submissions
and the exchange of information between the eligible suppliers and KCCA.
 The need to bring down corruption. For long, the procurement process has
been perceived to be among most corrupt units in the government
organizations, the implementation of EGP was thought to be of great
importance in bringing about transparency and accountability as every
process can be made known to every party interested in the procurement
process.
 The need to reduce paper work. The manual procurement demands more
space for storage of documents and this called the use of EGP in government
organization to the storage space and easy accessibility when required that is
in a timely manner.
 The need to increase accessibility. The limited access to information to
both buyers and sellers has called for the use of EGP that makes information
available to both parties through the use of E-catalogues to market their
offering and this assisted in making specifications by KCCA.
 The need to reduce errors. E-procurement is more streamlined thus can
make trussing of errors easier.
 To increase transparency in the payment and transaction system. The
manual procurement system was highly characterized with the illegal
withholding of supplier’s funds which discourages suppliers’ participation in
the government bidding processes and its through EGP that the procurement
process has been streamlined thus eliminating such bad ethics as all
activities are done electronically.
Although the transition to electronic Government Procurement system has
been of great importance to the KCCA procurement operations, several
challenges have been encountered during the transition process from manual
procurement process to electronic Government procurement and these
include;
 According to letter issued by the minister of finance instructing all
suppliers to register with government of Uganda E-Procurement portal the
effective the financial 2021 without critical training has limited the number
of suppliers in the system thus rendering the system ineffective.
  Reliability of internet and power supply delay. The use of EGP has been
hindered by unreliable internet and power especially in rural areas which has
invited the participation of eligible suppliers in the rural areas of Uganda.
 Compatibility incases of any updates required in the system. Providers
may be unexperienced that is lacking technical knowledge to use the EGP
system.
 Delay in issue resolution. There is no provision in the system how to solve
conflicts between the buyer and supplier e.g., deviation in specification.
 Slow adoption by users. Most suppliers are still ignorant about the use of
EGP since it is a new innovation in the government institution. For example,
most suppliers have on electronic signatures and this has complicated the
process especially to the accounting department in initiating payments.
 Presence of the knowledge gap between suppliers. Some suppliers have
little knowledge on the use of EGP and this has created inefficiency in the
electronic bidding process.
 Network disruption brings about system down times which interrupts the
procurement process an inefficient utilization of labour where by the whole
process comes to a standstill.
 Fear of loss of jobs by users. EGP creates insecurity on the user
information as their information is easily accessible and thus can easily be
evaluated threatening their job security.
 Incomplete integration. EGP emphasizes integration between the supplier
and the buyer leaving out other relevant parties such as the banking system
to initiate bid security especially when the buyer is not a client to the
supplier’s bank.
 Payment challenges. Some organizations have one or few standard payment
means which may hinder payment of different suppliers hence
underutilization of the system
 Absence of E-willingness and E-readiness of the supplier has inhibited the
participation of the bidders due to absence of tools, equipment and personnel
to run the EGP which greatly originate from insufficient funds.
Below are the solutions that KCCA may use or adopt to solve the above
challenges.
 Carrying out continuous training on the usage of the EGP system and
organizing for workshops to help both procurement departments and
suppliers adopt to the use of EGP with ease.
 Hiring experts to help in handling the complex technicality EGP such as in
system break downs and updating the system.
 Campaigning for rural electric extension to provide power to the rural
eligible suppliers since it’s through this power that computers operate.
 Encouraging government coordination with the telecommunication
companies to help extend reliable network to rural areas through
construction of telecommunication facilitates such as telephone masts to
enable effective communication among the different parties.
 Sensitization of suppliers to embrace the use of the EGP system by
addressing the benefits that a raise from the adoption to the use of EGP
system
 Providing financial and capital assets by the government such as
computers to motive the use of EGP as this brings about e-readiness.
 Although several challenges have been uncounted from the use of Electronic
Government procurement, better results have been achieved as stated above
and various suppliers have embarrassed it and hence leading to achievement
of the intended purpose.
REFERENCE
Kampala Capital City authority (KCCA),
Uganda (headquarters). Kampala, city hall, plot 1-3,
Apollo Kaggwa road, P.O Box 7010,
Procurement officer KCCA: Kyeyune Stephen
Tel: 0772473936