� Presentation by

Fred Ntambi (MCIPS, CMILT

) Associate Consultant;
Procurement, Logistics and
Marketing department-UMI
0772552815
fredntambi2014@gmail.com
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1 Induction /Introduction to the Public, Private and Social sectors ,
Introduction to Procurement, Objectives and Principles, Procurement Process stakeholder
Roles and responsibilities
2 Public Sector Procurement and implications for procurement practice , Private Sector Procurement and
implications for procurement practice , Social Sector Procurement and implications for procurement practice

3 Specifications: Principles and key issues, Budgeting, Work planning and Procurement Planning ,
Case study; Procurement Planning in practice: Challenges and Key success factors

4 Procurement Methods and Factors for Choice, Bidding and managing tenders Bid Closing and Opening, Case
study: Reflections on the practice of procurement principles
5 Bid evaluation , Managing the Notification Period Award : Negotiation, Due Diligence and Administrative
Review, case study; Administrative review
6 Contract Management, Case study Contract Management

7 Asset Disposal Management: Principles, Process methods and Contract Management , Case study: Asset
Disposal Management: Principles, Process methods and Contract Management
8 Procurement Audits & Investigations, Emerging Themes in Procurement: Sustainable Procurement, OHS, End
of Module Evaluation and Test

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 What is Procurement and specifically Public,
Private and Social sectors procurement?

 Procurement can be defined as the; acquisition by

 Purchase,
 Rental,
 Lease,
 Hire purchase,
 Licence,
 Tenancy,
 Franchise, or
 any other contractual means for any type of works,
services or supplies or any combination of the above

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 to meet the needs of individuals or organizations in the public,
private and third sectors

Other perspectives of defining procurement

 Procurement as a profession

 Procurement as a function….

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 As a Profession
 A recognized body of
knowledge
 Has an Ethical code of
conduct
 Members contribute to
development of knowledge
 There is Continuous
professional development
(CPD)by members
 Contribution to community..
 Procurement as a
function
 Sourcing. It starts by
qualifying suppliers before
initiating negotiations
 Negotiation
 Contracting
 Monitoring of suppliers'
performance
 Compliance with business
protocols
 Leveraging technology to
help in procurement
functions…
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 Procurement processes as per the PPDA Act 2003 include:
 Planning purchases and acquisitions
 Requesting seller responses /solicitation
 Selecting /assessing sellers / award of work
 Planning contracting
 Administering contracts
 Closing contracts

 Managing Procurement activities, demands a clear understanding of

each sector’s procurement dynamics; education, healthcare,
manufacturing industries; construction, humanitarian, social
development ….Need to be versatile

 You therefore need to manage the; processes, people, technology /

systems, supply chain partners among others.
 How easy is it?

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 Organizations within economic sector are classified
according to how they are funded, what their objectives
are and their policy regarding profits;

 Public sector

 Private sector

 Social /Third sector

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 Organizations can also be classified according to the industry in
which they belong;
 Primary sector: Involves extraction of raw materials e.g agriculture,
fishing, Oil extraction, coal mining, etc

 Secondary Sector: Transforms raw materials into a finished product,

e.g construction of roads, houses, manufacturing vehicles, electronics etc

 Tertiary Sector: Provides services and supports to the other two sectors
e.g rail, education, healthcare, financial services, hospitality etc

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 An organization belonging to one of the three economic sectors can also
belong to a specific industrial sector

 Public sector organizations predominantly belong to the tertiary sector

because they provide services such as schools, health care, social housing
etc

 While Private sector organizations can be in primary, secondary and

tertiary e.g agriculture, processing of cocoa, coffee, leisure & hospitality
etc

 Social sector organizations predominantly belong to tertiary sector

because they provide a service in support of a cause e.g CIPS, World
Vision, Save the children,Baylor Uganda, TASO etc

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 Public sector organizations are those financed by public funds
raised from taxes

 “Public funds" means monetary resources appropriated to procuring and

disposing entities (PDEs) through budgetary processes, including the
Consolidated Fund, grants and credits put at the disposal of the procuring
and disposing entities by foreign donors; and revenues generated by the
procuring and disposing entities

 Some examples of PDEs include; Central Government departments, local

governments, councils, Mulago hospital; the government hospitals,
institutions funded by government using money from the consolidated
account public universitiies, schools,, the police, army, Authorites etc

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 Note that the Government of Uganda spends trillions of shillings
annually in a bid to execute its mandate of service delivery to its
citizens

 Public sector procurement accounts for up to 60% of government

expenditure and the bigger percentage expended on security, health,
education, energy and infrastructure

 This significantly high expenditure has a great impact on the

economy and has raised interest of tax payers, policy makers,
development partners and many other stakeholders

 Effective public sector procurement is therefore essential for the

economic development of the country at large

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 So when a public sector body buys any goods, works or services: that is public
procurement.

 Public sectors organizations are mandated to buy goods, works or services to

support governments’ service delivery

 In Uganda, Public procurement is guided by the PPDA Act and regulations and it
mainly focuses on values or ‘threshold’

 It’s often these regulations which confuse people, but remember they only exist to
make sure that the procurement process is fair for all those involved

 A public sector procurement process is sometimes known as ‘tendering’/

bidding”

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 The public procurement process is therefore the sequence of activities
starting with the identification of needs through awards to contract
management and final payment

 So Public procurement therefore refers to the purchases by

governments and state-owned enterprises of goods, services and
works

 Note that Public procurement is a lucrative market as certainly

governments are the biggest buyers, and the process is a fairly
complex one

 There’s a lot to take in if you are to engage in public sector

procurement. And before you can fully understand how to win
business with the public sector you’ll need to understand its basics

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 Public Sector procurement is team buying

 When the public sector decides to buy any goods, works or services, it
publishes an opportunity notice (or tender notice) and Private
companies like yours then bid for the contract

 So you need to understand; PPDA Act, the regulations, circulars,

prequalification, bidding process, how assessment of BEB is done, the
procurement methods, procurement rules, contracting, letter of intent…

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 Public sector procurement in Uganda has evolved from a
largely clerical and administrative function to more strategic
and policy function

 The landscape involves high volume and complex

acquisitions, new technology, dynamism in the market and
new financing mechanism of infrastructural projects

 Now complex and highly innovative projects are being

their due attention as well as the related procurement risks

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 I may now know what you might be thinking…

 I bet , you’re thinking that;

 “It’s too complicated”

 “My business is too small to win a government contract”

 “I don’t know where to begin”

 “Contracts always go to the same suppliers”

 Public sector procurement can be extremely lucrative if you

know how the process works and vice versa

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 Procurement Process
 At first glance, the procurement process can appear to be a simple
procedure .i.e. locate goods, purchase goods, transport and receive goods,
pay for goods…
 Simply described, the procurement process begins with identifying a need,
finding a reliable supplier for it, paying for the supplier’s goods or
services, and finally accounting for it.

 But like all critical business functions, procurement involves multiple

stages – each of which – can be optimized within them.

 In the past years, the procurement process has been going through digital
transformation, which positively impacted costs, real-time data analysis,
and business operations to dramatically impact your company’s
efficiency, output, and bottom line

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 During the procurement process, procurement managers need to liaise with
suppliers, negotiate terms and contracts, inspect received orders as
necessary and keep records of all stages of the procurement process for
auditing purposes.
 Procurement’s end goal is to reduce overall costs by finding the best
possible prices and ensuring that companies get what they need on time.
 Although unique to each company, the procurement process usually has
three essential components: process, people, and paperwork.

 Process
 Every company has its own well-designed procurement cycle that helps
them stay organized throughout the procurement process. This is
essentially a guideline for every person involved in the process to know
their tasks and deadlines and the paperwork needed.

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 People
 These are the decision-makers responsible for placing orders or
authorizing the steps in the procurement process.
 Generally, a CPO can lead a team of procurement specialists and
make final decisions. However, more stakeholders may be involved in
specifying the requirements and authorizing payments depending on
the size, quantity, or value of the goods and services required.

 Paperwork or electronic records

 Companies rely on the records of each stage of the procurement
process for future reference and auditing purposes.

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 Private sector procurement is the process of acquiring
goods and services to satisfy the needs of a
particular private entity usually a business, for profit
i.e (B2B, B2C).

 Private sector procurement is funded by owners or

shareholders of the organization,

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What is Social Sector procurement?
 Focuses on procurements done in the Third sector that focuses
on humanitarian and societal development issues; viz;
preparedness, recovery and response among others

 The ‘third sector’ is an umbrella term that covers a range of

different organisations with different structures and purposes,
belonging neither to the public sector (i.e., the state) nor to the
private sector (profit-making private enterprise)

 Third sector organisations seek to bring about policy change by

lobbying politicians, and by influencing government officials and
civil servants responsible for (improving livelihood of
communities, their health,fair taxation….

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 Their focus may be local, national, or global(RedCross)

 Third sector groups try to achieve their aims through a

wide range of activities

 Some, such as fundraising, providing services, or providing

other forms of direct support and advice to the groups they
help, are about immediate action

 However, third sector organisations usually also want to back

up direct assistance with long-term change, involving
changes to relevant local, national, or international policies.

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 So procuring goods and services is necessary to help
facilitate operations of all organizations (primary, secondary
and tertiary) and institutions, but the way it’s done in the
public sector can differ significantly from the private and
third /social sector. Much of this may come down to their
contrasting natures.

 Say in the public sector, procurement is primarily affiliated

with government organisations, be it on a local or national
level

 In contrast, private sector procurement evidently

happens for organisations that are profitable and
privately owned

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