Queries and requests for clarifications are prompted by vagueness, conflicting and incompleteness of requirements. It has been agreed that the use of checklists could be effective to minimise instances where requirements are inadequate or not clear.
PURCHASING & SUPPLY: NYASHA CHIZU
Checklists assure the procuring entity to include all necessary requirements and documents appropriate for different types of procurements such as goods, services, works, consultancy services and information technology. Development partners encourage the use of standard bidding documents that reduce the risk of omission of critical data in tender processes. Other countries are privileged to have procurement advisory services such as the Australian Crown Law Select to advise them on related matters.
Effective planning cannot be downplayed if situations that prompt queries and clarifications are to be minimised. This planning should incorporate effective assessment of overall project risk and apportioning it appropriately. In order to minimise the risk related to vagueness, conflicting and incompleteness of specifications, use of internationally recognised standards is very critical. This reduce the risk of biased specifications that favours particular suppliers. It also provides for the adoption of better technologies in industries where products have shorter lifecycles.
Terms and conditions of a contract that are included in the tender documents are meant to form the backbone of the envisaged contract. Stringent terms and conditions increase the risk on the part of the suppliers. Suppliers, therefore, factor in such risks in their pricing inevitably increasing the cost to the buying organisation. To minimise such risk of higher costs from suppliers through the inclusion of stringent terms and conditions, procuring entities are encouraged to use standard commercially acceptable terms. The public sector is privileged to have the first schedule of the procurement regulation as a standard for terms and conditions of contracts.
Training in public procurement planning is, therefore, very important in the process to reduce the risks associated with queries and clarifications. Procurement skills are the backbone of effective procurement management and employers should ensure that they have adequate skills in their organisation. Emphasis must be on the availability of appropriate skills in the view of the risk of employing highly qualified staff without the required skills.
Prevarication, vagueness and insufficient information in tendering processes may be system-based. Some systems allow design of specifications by an individual. There is high risk of manipulation of specification, for personal gain. This becomes fertile ground for corruption reducing the ability of an organisation to achieve an effective procurement process. Progressive procurement systems designed robust arrangements in specifications designing to eliminate issues that emanate from abuse of by corrupt officials.
Such systems provide for a team of experts to design technical specifications. The specifications could either be performance or functional specifications. The procurement official is then responsible for reviewing such specifications.
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This demands procurement staff that understand the business of the organisation. There is normally a second layer of review after procurement reviews that include a panel of experts within the organisation. Such reviews are done before the market is approached to limit the adequacies in designing and to minimise risks associated with skewed specifications.
Review of specifications should assess the requirements. It should review the adequacy of general information to the bidders that provide them with relevant insight on the organisation, the project and the rules of the procurement process. It then review supplier evaluation criteria to ensure that the requirements are specific, measurable, attainable, reliable and time-bound. Lastly, technical specifications must be neutral allowing for innovation and acquisition of latest technology in IT sector.
Nyasha Chizu is a fellow of the Chartered Institute of Procurement and Supply writing in his personal capacity.
Feedback: [email protected] Skype: Nyasha.chizu
