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Methods of Procurement & Disposal

2.2 Procurement And Disposal Methods 1. . Nothing shall prevent a domestic bidder from participating in open international bidding.Open domestic bidding shall be open to all bidders following a public advertisement of a Bid Notice in at least one widely read national newspaper. Open international bidding may be used instead of open domestic bidding where competition will not be effective without foreign bidders or where foreign bids will increase value for money.

3. or the estimated value of the procurement or disposal does not exceed the threshold stated in the procurement guidelines issued under this Act. 3 Restricted domestic bidding where- may be used     the supplies. works or services are available only from a limited number of providers. or there is insufficient time for an open bidding procedure in an emergency situation. the invitation to bid shall be addressed to a limited number of potential bidders without advertising the opportunity in a Bid Notice. .

4. the invitation to bid shall be addressed to a limited number of potential bidders without advertising the opportunity in a Bid Notice. . works or services are available only from a limited number of providers and there is insufficient time for an open bidding procedure in an emergency situation. Restricted 4 international bidding    may be used where the supplies. or the estimated value of the procurement does not exceed the threshold stated in the procurement guidelines.

(c) a procuring and disposing entity shall obtain at least three bids. The process under quotations procurement or disposal shall be as follows(a) the solicitation document shall be addressed to a limited number of potential bidders without advertising the opportunity. or where the estimated value of the procurement or disposal does not exceed the threshold stated in the procurement guidelines. 5 Quotations or Proposal procurement or disposal may be used wherethere is insufficient time for an open or restricted bidding procedure such as in an emergency situation.5.      .

6. or (ii) the works. or (iii) an existing contract could be extended for additional works. services or supplies are available from only one provider. if the prices on the extended contract are reasonable. services or supplies of a similar nature and no advantage could be obtained by further competition. or . Direct procurement or disposal 6 may be use (a) where(i) there is insufficient time for any other procedure such as in an emergency situation.

if the prices on the additional contract are reasonable. services or supplies from the original supplier. services or supplies does not exceed 15% of the value of the original or existing contract and the original or existing contract has been awarded through a . or (v) it is essential or preferable to purchase additional works. 7   (iv) additional works. services or supplies from the original supplier to ensure continuity for downstream work. works or services and it is advantageous or necessary to purchase the additional works. provided the prices on the additional contract are reasonable. services or supplies are required to be compatible with existing supplies. use of experience acquired or continued professional liability. including continuity in technical approach. where the value of the new works.

Where a procuring and disposing entity engages in micro procurement(a) the original invoice or receipt evidencing the supplies procured and the price paid shall be obtained and signed by the official procuring the supplies. . Micro procurement or disposal 8    may be used where the goods or services are below the threshold stated in regulations.7. and (b) it shall be responsible for ensuring that value for money is obtained to the extent practical under the procurement procedure.

. Quotations or RFQ’s should be solicited from existing staff that have capacity to deliver the service or works.Force Account 9    Used to solicit bids from staff where it is deemed that value for money may not be achieved from other procurement methods Should be sue when the value of a procurement requirement is low.

10 Third Party Procurement Method   A third party is used in undertaking the procurement process on behalf the buying organization. A list of third party agents needs to be developed by the buying organization in order to achieve transparency. .

servicesorworkstogether. The aim to achieve economies of scale through increasing bargaining power .Consortium Buying Method 11   Consortium Buying method-where organizations may merge their procurement requirementswithotherindependentorganizatio ntoprocuregoods.

Aim is to achieve economies of scale .the method aims at discovering low cost sources that can be used to supply dispersed business units across the world.Global sourcing method 12   Increasingly used in the private sector domain .

Examinetheprocurementmethodsthatcanbeus edtomaximizetheimplementationofprocureme ntprinciples.13 1. 2. Discuss the circumstances that may justify the use of the Direct Procurement Method .

14 THANK YOU .

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