National Procurement Commission Procurement Committee Operations Manual
National ProcurementCommissionProcurement CommitteeOperations Manualwww.procurement.gov.pg Government of PNGPage 1 of 35
About this GuidelineThe National Procurement Commission Procurement Committee Operations Manual has been producedwith the support of the European Union under the Technical Cooperation Facility funded by the 11thEDF.Authority and EnforcementThe Manual has been issued under Section 45 of the National Procurement Act 2018 (NPA) to supportany instruction, guideline or manual (herein instructions).DisclaimerThis Manual supports procurement committees that have been delegated powers by the NationalProcurement Commission Board to operate as a procurement committee on their behalf.All officers of public and statutory bodies must ensure that procurement activities undertaken complywith the NPA, PFMA and associated instructions. This information can be found on the Government ofPNG procurement website www.procurement.gov.pg.This current guide is a draft only. Feedback on this guide can be emailed to npcboard@npc.gov.pg byFriday, 8 November 2019 for inclusion in version 1.0.Issuing AuthorityThis Manual has been issued for consultation by the National Procurement Commission Board.Page 2 of 35
ContentsAbout this Guideline . 2Authority and Enforcement . 2Disclaimer . 2Issuing Authority . 2Introduction . 6Purpose of the Manual . 6Definitions . 6Role of a procurement committee . 11How a procurement committee is established . 11Power to Delegate . 12Technical and Functional capability . 12Identify the need to establish a procurement committee. 13Composition and award thresholds . 13Provincial Committees of the NPC . 13District Committees of the NPC. 14Special Committees of the NPC . 14Application to establish a procurement committee . 14Nomination of an Independent Person . 15Nomination of non ex-officio members . 15Assessment by the NPC Board and certification . 15Capacity Assessment . 15Annual assessment of procurement committees . 16Committee Induction Pack . 16Roles and Responsibilities . 17Overview of the Procurement Process . 18Secretariat and meetings of the procurement committee . 19Before the Meeting . 19Meeting Schedule . 19Prepare reports for a meeting . 19Prepare an agenda. 19Determine who will attend. 19Running of Meeting . 19Page 3 of 35
Opening the meeting . 19Apologies 20Declarations . 20Compulsory reading time . 20Minutes of the Previous Meeting . 20Business arising from minutes of the previous meeting . 20Meeting Procedure . 20Voting. . 20Correspondence . 21Management of complaints . 21Awarding contracts and TFEC Recommendation Reports . 21Reviewing progress of procurement . 21Any other Business . 22Close of Meeting . 22After the Board Meeting . 22Committee responsibilities to award contracts . 22Responsibilities . 22Key Timings . 23Minimum areas of consideration of contract award . 23Action following Board Award . 24Overview of Board Evaluation process . 25Confirmation of Value for Money . 26Disagreement between committee and TFEC . 26Negotiations . 26International Agreements and Organisations . 27Assigning third party contract management services . 27Form of Contract – role of State Solicitor . 27Limited Procurements and Certificate of Inexpediency . 28Applying Fees . 28Ensuring Transparency . 28Code of Ethics . 29Ensuring Independence . 29“Conflict of Interest” Defined . 29Responsibility of Procurement Committee Members . 29Contract Execution . 29Key Timings . 30Page 4 of 35
Contract Variations . 30Termination. 31National Content . 32Emergency Procurement . 32International Agreements . 32Complaints Management – Administrative Review . 32Information provided . 33Timelines . 33Allegations of corruption . 33Records Management . 33Procurement committee annual evaluation and performance monitoring . 34Document Details. 35Change History . 35Page 5 of 35
IntroductionAs a procurement committee, members have taken on a responsibility for monitoring andverifying that the procurement on behalf of the State was in accordance with approvedprocurement procedures. It has the power to execute contracts in the name of the NationalProcurement Commission Board once cleared by the State Solicitor.The procurement committee is a sub-committee of the National Procurement Commission Board.It is not an independent board or authority acting in its own interests. In ALL circumstances, thecommittee must operate within the rules and requirements of the National ProcurementCommission Board.Purpose of the ManualThis manual has been developed to detail procedures that assist the procurement committeesundertake their role as contracting authorities of procurement on behalf of the Government ofPapua New Guinea (GoPNG).DefinitionsAcquisition PlansPlans prepared for works, goods and services above K1million to achieve Value for Money.AgencyPublic and statutory bodies that are required to complywith the National Procurement Act are defined in the PFMAas:“public body” means a. an agency which is part of the State Servicesestablished under Part VII of the Constitution; andb. a Provincial Government or Local-level Governmentestablished under the Organic Law on ProvincialGovernments and Local-level Government;“statutory body” means –a. a body, authority or instrumentality (corporate orunincorporated) established under an Act of theParliamentorhowsoeverotherwiseforgovernmental or official purposes; orb. a body, authority or instrumentality (corporate orunincorporated) established by a ProvincialGovernment or Local-level Government; orc. a subsidiary statutory body that is not a public bodyPage 6 of 35
Authority to Pre-commit (APC)Authority issued by APC Committee for expenditure aboveK500,000. (Procurement cannot proceed unless an APC hasbeen approved)APC Committee CertificationAuthority issued by APC Committee for procurement aboveK500,000 scheduled on the Consolidated Procurement Plan.(Procurement cannot proceed unless an APC has beenapproved)AwardApproval by either the NEC or Board of a procurementcommittee to issue a contract to the preferred tenderer.Certificate of Inexpediency (CoI)As defined in the National Procurement Act Section 69. ACoI is an expedient and quick procurement process fordeclared emergencies of the NEC.CompetitionCompetition that is effective will see a number ofindependent companies tendering to provide goods andservices to the GoPNG, through the public tenderingprocess.ComplaintA complaint is when a party in the procurement processexpresses written dissatisfaction with an aspect of theprocurement process as applied by a procurementcommittee.Conflict of InterestA conflict of interest arises where the private interest of apublic officer or committee or NPC Board Member, involvedin procurement conflicts or has the potential to conflict withthe duties of the person involved in GoPNG Procurement.Conforming TenderTender which meets the qualification requirements.Consolidated Procurement PlanIs the consolidated procurement plan of all approvedprocurement plans submitted by agencies to the APCCommittee. No procurement can commence with acertification by the APC Committee that it can commencefrom the consolidated procurement plan.Consulting ServicesProfessional services of an intellectual and advisory natureprovided by consultants using their skills to study, design,and organize specific projects, advise clients, conducttraining and transfer knowledge.Page 7 of 35
CorruptionDefined as offering, giving, receiving or soliciting (asking)either directly or indirectly, for any thing of value toinfluence the action of a public official involved in GoPNGprocurement.DelegationLimits established by the Minister of Finance for allAgencies, the NPC Board and procurement committees.ExecutionLegal agreement between a Contractor and GoPNGExecuting Authority (either the Governor General orChairperson of the NPC Board or procurement committee)FraudMisrepresentation or omission of facts in order to influencea procurement process or execution of a contract.Lowest Total CostLowest cost for works goods and services, calculated inaccordance with the Bidding Documents, and must includeinitial capital cost or cost of services and possibly otheroverheads such as whole of life costs (if provided for theBidding Documents).Major ContractA “major” contract is defined as one that exceeds theprescribed amount as defined in Section 26 of the NationalProcurement Act – currently K500,000National Preference AllowanceA margin of preference under Section 47 that is provided toNational companies and citizens during the bid evaluationprocessNational TendererSection 2 of the National Procurement Act defines a citizenand a National company. Either is considered a NationalTenderer or Bidder under the Act.NegotiationsNegotiation is defined as discussions between Contractorand the procurement committee, NPC Board or APCCommittee to meet defined project needs and budgetrequirements. Refer to the specific section in the Manual onwhen this is permitted.PoliciesDirectives issued by the NPC Board to control and regulateprocurement consistent with the National Procurement Actand procurement instructions.Procurement committeeA delegated sub-committee under the NationalPage 8 of 35
Procurement Commission Board and is represented byProvincial Committee’s of the NPC Board, DistrictCommittee’s of the NPC Board or Special Committee of theNPC Board.Procurement plansPost National Budget Procurement Plans as defined inSection 25 of the National Procurement ActProcurementProcurement is defined by the National Procurement Act asthe acquisition or disposal by purchase, rental, lease, hire,purchase, licence, tenancy, franchise, or any othercontractual means of any type of goods works or services orany combination of them.Procurement ThresholdsThresholds as outlined in Section 26 of the NationalProcurement ActQualification RequirementsMinimum qualifying requirements, stated in the BiddingDocuments including corporate experience, staffexperience, equipment and financial resources.Services (non-professionalservices)Services such as cleaning, security, photocopying and travel.Standard Bidding DocumentsStandard templates of bidding documents (includingstandard conditions of contracts) approved by NPC.Tender ValidityValidity period of each tender as specified in the BiddingDocuments.TerminationIf there has been a significant breach of contract or one orboth parties cannot fulfil their obligation, it may benecessary to terminate a contract before it reaches itsnatural conclusion.TransparencyTransparency in procurement is the clear and publicdocumentation of procurement processes, tenderrequirements, selection criteria, and decisions which are beable to withstand independent review and scrutiny.Value for MoneyDefined as obtaining works, goods and services for theGoPNG that best meet the government’s need at the lowesttotal cost.Page 9 of 35
VariationsVariations are deemed to be any change of price, scope andtime within the original contract.Whole of Government (WoG)Contracts (Frameworkcontracts)Contracts that can be accessed and utilised by any agencyunder the terms and conditions of the contractPage 10 of 35
Role of a procurement committeeA procurement committee operates for the NPC Board. It is the independent review ofprocurement recommendations, assurer of funds availability and has the power to award andexecute contracts (cleared by State Solicitor) on behalf of the State. The procurement committee:1. Confirms that the proposed procurement is in accordance with National ProcurementCommission approved procurement procedures and instructions and the NationalProcurement Act;2. Confirms the ranking and recommended supplier is capable to meet the requirements ofthe contract and eligible to supply to the Government of PNG as a registered andaccredited supplier with the NPC;3. Ensures that the procurement process upheld the Code of Ethics and the additionalprinciples of the National Procurement Act for a non-discriminatory, transparent, fair,competitive, confidential and assures the State is afforded best value for money;4. Examines the risks to the State when awarding the contract such as financial liability andlegal implications;5. Confirms that the Technical and Financial Evaluation Committee evaluation process wasconducted in accordance with National Procurement Commission procedures, and otherapplicable instructions;6. Confirms that appropriate funds are available to cover a contract including an Authority toPre-Commit;7. Ensures that all actions are in the best interests of National Procurement Commission andthe Government of PNG.8. Prior to execution, ensures that the contract has been cleared by the State Solicitor. Thecommittee does not review or provide advice on contracts but shall ensure that it has beencleared.9. Publishes procurement awards including variations to TFEC recommendations and thereasons of the decision.10. Ensures that all procurement has been published on the Government of PNG’sprocurement website and has been managed in its entirety by the National ProcurementCommission.How a procurement committee is establishedOnly the NPC Board has the authority to delegate its Board procurement function under theNational Procurement Act. Where a need to establish a procurement committee has beenPage 11 of 35
identified, the agency would formally request the National Procurement Commission to delegateits powers to establish the committee.The National Procurement Commission Board needs to be satisfied that there is a genuine need todelegate its powers and that there is sufficient procurement capability and independence tooperate those powers.Step One: Province orDistrict identifies a needfor a committeeStep Two: theProvince or Districtapplies to the Boardto establish acommitteeStep Three:Certification andasessment by NPCStep Four: If Boardapproved,Committee isgazettedStep Five:ProcurementCommittee alignswith NPC processesPower to DelegatePursuant to Section 77(3) of the National Procurement Act, the NPC Board may delegate, on suchterms and conditions as it thinks fit, its procurement function at a provincial, local and districtlevel:a) at a provincial level, a Provincial Committee of the Commission; orb) at a district level, a District Committee of the Commission; orc) at a local-level, a Local-Level Committee of the CommissionThe Board is under no obligation to establish a procurement committee and will firstly consider ifthere is an established need and capacity to operate a committeeUnder Procurement Instruction 05/2019 the NPC Board has not delegated the ability to delegate itspowers to a Local-level Committee of the CommissionTechnical and Functional capabilityThe NPC is not able to delegate its functions unless the Provincial Government or the relevantDistrict Development Authority has been certified under the NPA that it i.ii.has the capacity to engage in the procurement processes; andit is sufficient to protect the use of public funds and ensure that good public financialmanagement practices are followed and applied by Provincial Government or DistrictDevelopment Authority.Page 12 of 35
Identify the need to establish a procurement committeeA Provincial Government or District Development Authority would firstly consider if aprocurement committee is necessary. Areas to consider are:1.2.3.What is the level of procurement that is being undertaken within the scope of thecommittee? If there is minimal (less than five) procurements K500,000 per annum,is a committee required? The delegated committee is only able to executecontracts above the K500,000 threshold. Those below this threshold are executedby the agency undertaking the procurement.Is the proposed members of the procurement able to identify that procurementactivities are conducted in line with approved procurement practices of theNational Procurement Commission? Assess the collective functional and technicalcapacity of those members proposed for the committee.Can the procurement committee operate independently to ensure that the result isfully compliant with process, sufficient funding exists and the risks have beenassessed and mitigated.Composition and award thresholdsThe National Procurement Act and Procurement Instruction 05/2019 outlines the composition andupper thresholds for delegated procurement committees.Provincial Committees of the NPCAll Provincial Committees of the NPC have the jurisdiction to undertake procurements of –(a) not exceeding K 5,000,000 for the Province in which they are located, or(b) not exceeding K 5,000,000 for and on behalf of District Development Authorities withineach Province.The Chairman of a Provincial Committee of the NPC shall execute all contracts awarded by theProvincial Committee of the NPC –(a) in the case of a procurement awarded by the Provincial Committee of the NPC on behalf ofa Province, in the name of the Province; and(b) in the case of a procurement awarded by the Provincial Committee of the NPC on behalf ofa District Development Authority, in the name of the District Development Authority.The membership of a Provincial Committee of the NPC is specified in Section 77(5) of the NPA. TheFinance Minister has the power to appoint an independent person who has an unimpeachable andimpeccable reputation and relevant experience or demonstrated understanding of commercial,procurement or contracting practices to be a member of a Provincial Committee of the NPC.Page 13 of 35
District Committees of the NPCAll District Committees of the NPC have the jurisdiction to undertake procurements of notexceeding K 2,500,000 for the District Development Authority of the District in which they arelocated.The Chairman of a District Committee of the NPC shall execute all contracts awarded by theDistrict Committee of the NPC in the name of the District Development Authority.The membership of a District Committee of the NPC is specified in Section 77(6) of the NPA. Theperson appointed to represent the interests of justice, law and order in the District; and theperson appointed to represent the interests of the community in the District; and the personappointed to represent the interests of women in the District shall be selected by the FinanceMinister.Special Committees of the NPCThe establishment of special procurement committees to support a specific agency or sector isonly provided in exceptional circumstances. All Special Committees of the NPC have thejurisdiction to undertake procurements of not exceeding K 1,000,000 for the specified scope oftendering in the entity for which they are located.The Chairman of a Special Committee of the NPC shall execute all contracts awarded by theSpecial Committee of the NPC within scope of the committee’s procurement function.The membership of a Special Committee will be determined by the NPC and will include a memberof the NPC procurement operations and chaired by the Head of the agency/Chief ExecutiveOfficer.Application to establish a procurement committeeA formal request from the Chairman of the proposed procurement committee must be made tothe National Procurement Commission Board. This request will have a number of elements andmust contain information on:1. The anticipated annual volume of procurement activity that will be undertaken by thecommittee;2. The nature of the procurements including the category and procurement risks;3. Any prior public procurement experience by the proposed members of the procurementcommittee;4. Confirmation that the procurement committee is able to fund the travel and associatedcosts of the NPC to deliver an induction and any training to the procurement committee onits commencement;5. Confirmation that the procurement committee has the funding and resources to alsosupport a secretariat function who will liaise with the NPC on matters such as procurementPage 14 of 35
registration, reporting, compliance checks, records management, notifications and othermatters;6. Recommendations for the independent person of the procurement committee7. Nominations for non ex-officio committee membersNomination of an Independent PersonThe procurement committee is to ensure there is an independent member appointed by theFinance Minister. This person must have an unimpeachable and impeccable reputation andrelevant experience or demonstrated understanding of commercial, procurement or contractingpractices.The procurement committee Chairman will consult with committee members is to identify threepersons suitable as an independent person. As part of the written request, the committee is toprovide reasons for the nominations and a copy of their curriculum vitae and references.The NPC Board will consider this nomination when establishing the procurement committee andwill make a recommendation to the Finance Minister. The Finance Minister is not bound by anyrecommendation so made.Nomination of non ex-officio membersAs with the independent person, non ex-officio members representing specific interests will needto be nominated. As part of the written request, the committee is to provide reasons for thenominations and a copy of their curriculum vitae and references. If there are other possiblecandidates for the position, the committee will also provide these details and their preferredcandidate. A committee can only have the number of persons appointed as specified in the Act.Assessment by the NPC Board and certificationThe NPC will firstly consider and assess the request and identify if a need has been established.Once established, the NPC is then required under Section 77(4) to confirm that the committee:(a) Has the capacity to engage in the procurement processes; and(b) It is sufficient to protect the use of public funds and ensure that good public financialmanagement practices are followed and applied by Provincial or District DevelopmentAuthority.Capacity AssessmentThe public financial management practices of the Provincial or District Development Authority willbe reviewed to assess capacity. This will be un
Procurement Procurement is defined by the National Procurement Act as the acquisition or disposal by purchase, rental, lease, hire, purchase, licence, tenancy, franchise, or any other contractual means of any type of goods works or services or any combination of them. Procurement Thresholds Thresholds as outlined in Section 26 of the National
Strategic Procurement for Innovation Vassilis Tsanidis Dr.Jur f. National Expert on Innovation Procurement in the EU A. STRATEGIC PROCUREMENT –2 Innovation Procurement Green/Circular Procurement Social Procurement . 10-11-2020 2 EU Public Procurement Directives (2014/24 , 2014/25)
Procurement Procedures Procurement 2.4 Procurement authority 38 2.5 Modification of individual procurement authority 38 2.5.1 Delegation of procurement authority 38 2.5.2 Delegation of procurement authority to UNFPA officers at headquarters 38 2.5.3 Delegation of procurement authority to field office managers 41
112. Establishment of Commission for Conciliation, Mediation and Arbitration 113. Independence of Commission 114. Area of jurisdiction and offices of Commission 115. Functions of Commission 116. Governing body of Commission 117. Commissioners of Commission 118. Director of Commission 119. Acting director of Commission 120. Staff of Commission 121.
112. Establishment of Commission for Conciliation, Mediation and Arbitration 113. Independence of Commission 114. Area of jurisdiction and offices of Commission 115. Functions of Commission 116. Governing body of Commission 117. Commissioners of Commission 118. Director of Commission 119. Acting director of Commission 120. Staff of Commission 121.
Procurement For GoJ purposes, Public Sector Procurement is the acquisition of goods, services and works, by any method, using public funds, and executed by the Procuring Entity or on its behalf. Procurement Contract A contract between the Procuring Entity and a Broker/Insure resulting from procurement proceedings. Procurement Officer A person with the authority to conduct procurement .
Established 2013 Yes Yes SP/ATI: Section 508 Standards Guide (posted to the ATI Procurement website) SP: EIT Procurement Plan . 1.2 Yes Request the Chancellor’s Office provide a list of PeopleSoft procurement codes that fit the EIT categories. . CSU ATI Procurement Community of Practice Monthly ATI Ad Hoc Procurement Sub Committee Bi-Weekly
in the MCC Procurement Guidance Note: MCA Non-PPG Covered (NPC) Purchases that are covered by guidance provided by the Procurement Operations Manual (POM) and Procurement . 1 The MCC Program Procurement Guidelines are based upon the World Bank’s Guidelines: Procurement Under IBRD Loans and IDA Credits and it has been adapted to reflect MCC .
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