PROCUREMENT PLANNING 1.

a) Definition of procurement According to the PPDA Act 2003, Procurement means acquisition by purchase, rental, lease, hire purchase, licence, tenancy, franchise or any other contractual means of any type of works, services or supplies or any combination. Procurement process means the successive stages in the procurement cycle including planning, choice of procedure, measures to solicit offers from bidders, examination and evaluation of those offers, award of contract and contract management. Public funds means monetary resources appropriated to procuring and disposing entities through budgetary processes, including the consolidated fund, grants and credits put at the disposal of the procuring and disposing entities by foreign donors and revenues generated by the procuring and disposing entities. 6. PROCUREMENT PLANNING Procurement planning is the responsibility of the user department. However the user department should work closely with both the Finance Department and the Procurement and Disposal Unit in doing so. A user department should prepare three types of plans: 1. A multi-annual, rolling work plan for procurement 2. A procurement plan 3. A combined work plan A multi-annual, rolling work plan for procurement based on the approved budget should be submitted to the procurement and disposal unit. The

purpose is to facilitate orderly execution of the annual procurement activities. A multi-annual, rolling work plan normally covers three to five years. The user department has to send the plan at the beginning of the financial year to allow the procurement and disposal unit to consolidate with other plans and to communicate with the finance department. A procurement plan covers one year and should be integrated into a multiannual sector expenditure programme. The purpose of this plan is to enhance financial predictability, accounting and control over procurement budgets. This plan also should be sent to the procurement and disposal unit early in the financial year. A combined work plan is to be used by the procurement and disposal unit to plan, organise, forecast and schedule for the entire procuring and disposing entitys procurement activities for the financial year/these plans should include: a) A detailed break down of activities of works, services or supplies to be produced. b) A schedule of procurement requirements in order of priority. c) A statement of required resources supported by a schedule of the projected funding.