- 10 Marks
Question
The Procurement Unit of a government department has drawn up a procurement plan for the current financial year and has submitted it to the entity tender committee. A review of the plan revealed that single sourcing method of procurement is recommended for most of the procurement packages. This raises serious concern from the Entity Tender Committee members, however, the head of procurement entity and the chairman of the entity committee hold a different view. He states that every procurement entity has the liberty to use any method of procurement it deems fit and so the decision to use single sourcing in most of the procurements of the department cannot be challenged by the Entity Tender Committee.
According to the head of procurement entity, the entity tender committee has a limited role in public procurement and therefore the committee should work within its restricted powers and responsibilities. The role of the committee is to approve the selection of suppliers or contractors.
Required:
i) To what extent do you agree with the assertion of the head of procurement that “every procurement entity has the liberty to use any method of procurement it deems fit” in light of the public procurement law. (6 marks)
ii) Explain TWO conditions under which single sourcing may not be an appropriate method of procurement. (4 marks)
Answer
i) Disagreement with the Assertion:
- Procurement Law Mandates Specific Methods: The Public Procurement Law specifies five methods of procurement: competitive tendering, two-stage tendering, restricted tendering, single sourcing, and request for quotations. Competitive tendering is recommended unless otherwise justified.
- Conditions for Non-Competitive Methods: Other methods, including single sourcing, can only be used under specific conditions, such as urgency, where competitive tendering is impractical. Therefore, entities do not have complete liberty in choosing procurement methods, and such decisions must comply with the law.
ii) Conditions under which single sourcing may not be appropriate:
- Availability of Multiple Suppliers: If there are several suppliers capable of providing the goods or services, single sourcing may not be appropriate as competitive tendering would ensure better pricing and quality.
- Lack of Urgency: When there is sufficient time to carry out the procurement, using single sourcing could undermine the fairness and transparency of the procurement process.
- Where the procurement would not compromise national security.
- Topic: Public Procurement
- Series: MAY 2017
- Uploader: Kwame Aikins