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When procuring goods and services, the Municipal Council follows the procurement procedures stipulated in The Public Procurement And Disposal Act, 2005 in order to achieve the following objectives:-
• To maximize economy and efficiency
• To promote competition and ensure that competitors are treated fairly
• To promote the integrity and fairness of those procedures
• To increase transparency and accountability in those procedures
• To increase public confidence in those procedures
• To facilitate the promotion of local industry and economic development
For the purpose of ensuring that its decisions are made in a systematic and structured way, the Municipal Council has established three (3) Committees to provide for the making of decisions relating to procurement.
The Committees are:-
TENDER COMMITTEE
It includes all the Departmental Heads, with the Town Clerk as the Chairman and the Procurement Officer, as Secretary.
EVALUATION COMMITTEE
The Committee’s function is to carry out the technical and financial evaluation of the tenders or proposals received and submit the report to the Tender Committee.
PROCUREMENT COMMITTEE
The Committee is responsible for opening tenders of a value of less than Kshs. 500,000. Members of the Committee include the Procurement Officer, the User Department and the Internal Auditor.
Under the General Procurement Rules of the Act and Regulations, the Municipal Council can use Open Tendering, Restricted Tendering or Direct Procurement.
OPEN TENDERING
Requirements for open tendering includes:-
• The tender must be advertised in at least two (2) national newspapers
• An invitation to tender is made to bidders with the name, address and contact details of the Council
• A brief description of the goods, works, or services being procured, including the time limit for delivery or completion
• An explanation of how to obtain the tender documents, including the amount of any fee
• An explanation of where and when tenders must be submitted and where and when the tenders will be opened
• A statement that those submitting tenders or their representatives may attend the opening of tenders
• The minimum period between the advertisement date of the Tender Invitation and deadline for submission of tenders, should not be less than fourteen (14) days.
• Each bidder must provide a tender security – cash, bank or insurance guarantee, letter of credit – valid for a period of at least thirty (30) days, after the expiry of the Tender deadline
Tenders are evaluated within a period of thirty (30) days after the opening
• After a tender is awarded, the bidder who wins the contract should issue the Council with an Acceptance Letter to show issue that he/she has accepted the works and the conditions therein
ALTERNATIVE PROCUREMENT PROCEDURES
The Municipal Council may only use an alternative procurement procedure, if it obtains the written approval of its Tender Committee and records in writing the reasons for using the alternative procurement procedure.
Requirements for the procurement procedures that are alternatives to Open Tendering include:-
RESTRICTED TENDERING
The Municipal Council may use restricted tendering if :-
• The complex or specialised nature of the goods, works or services is limited to pre-qualified contractors
• The time and cost required to examine and evaluate a large number of tenders would be disproportionate to the value of the goods, works or services to be procured
• There is only a few known suppliers of the goods, works or services, as maybe prescribed in the regulations
DIRECT PROCUREMENT
The Municipal Council may use direct procurement as long as the purpose is not to avoid competition and if :-
• There is only one person or entity who can supply the goods, works or services being procured
• There is no reasonable alternative or substitute for the goods, works or services
• There is an urgent need for the goods, works, or services being procured
REQUEST FOR PROPOSALS
The Municipal Council may use a request for proposals for procurement if :-
• The procurement is of services or a combination of goods and services
• The services to be procured are advisory or otherwise of a predominantly intellectual nature
REQUEST FOR QUOTATIONS
The Municipal Council may use a request for quotations for a procurement if :-
• The procurement is for goods that are readily available and for which there is an established market
• The estimated value of the goods being procured is less than or equal to the prescribed maximum value for using requests for quotations
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