- 5 Marks
Question
The Farms and Gardens Authority (FGA), a public entity, wants to buy 100 computers and 20 printers for its administrative offices. The Chief Executive Officer (CEO) is considering using the single-source procurement method to procure the computers and printers while pushing back on the recommendations of the Entity Tender Committee.
Required:
i) State TWO circumstances under which single-source procurement would be appropriate for the goods the FGA wants to procure.
ii) Advise the CEO on TWO functions the Entity Tender Committee is expected to perform in the FGA’s procurements.
Answer
i) Circumstances under which single-source procurement is appropriate:
According to the Public Procurement Act, 2003 (Act 663) and its amendments (Act 914), single-source procurement is generally limited to specific circumstances to ensure competition, transparency, and value for money. Single-source procurement would be appropriate for the FGA’s procurement of the computers and printers under the following conditions:
-
Exclusive Rights: The goods or services are only available from one supplier or contractor, and no reasonable alternatives or substitutes exist. If the computers have unique features or proprietary technology essential for the FGA’s operations and only one supplier provides them, single-source procurement would be justified.
-
Urgency: The need for goods or services is exceptionally urgent due to unforeseen events, making the time required for open tendering impractical. If the computers are required immediately due to a sudden system failure or an urgent project, single-source procurement would be appropriate.
ii) Functions of the Entity Tender Committee:
The Entity Tender Committee (ETC) is responsible for planning, processing, reviewing, and approving procurement decisions to ensure compliance with the public procurement law. The specific functions of the ETC include:
-
Review and Approval of Procurement Plans: The ETC must review and approve the FGA’s annual procurement plan and quarterly updates to ensure they align with the organisation’s objectives and operations.
-
Confirmation of Cost Items and Budget Alignment: The ETC is responsible for confirming that the range of cost items in the procurement plan is acceptable and matches the available funds within the FGA’s approved budget.
- Topic: Public sector financial management reforms
- Series: Nov 2024
- Uploader: Salamat Hamid