African Forum for Agricultural

Advisory Services

Introduction of Sub-grant & Subsidiary Sub-grants

Presented by: Grace Paddy Wanzala, Procurement Officer AFAAS

Bashale Hotel Addis Ababa

14 October 2014

African Forum for Agricultural

Advisory Services

Tour de Presentation

The presentation is structured as follows:

1) Key activities of AFAAS that are guiding thepreparation of the guidelines

2) Progress on sub-grants and Guidelines

3) Challenges with Sub-grants;

4) Institutional framework for channeling sub-grantfunds;

5) Summary of outline of the sub-grant guidelines

Key Activities of AFAAS

Among others, AFAAS activities include

• Consolidating existing CF and supporting the emergence ofnew ones;

• Strengthening country-level capacity to contribute toCAADP roundtables and post-Compact implementation.

• Supporting AEAS innovation activities.

• Developing and implementing a monitoring and evaluationsystem.

• Supporting five CF or other relevant country-levelinstitutions to become centres of AAS expertise andleadership on specific strategic topics.

Progress on Sub-grants and Guidelines

• AFAAS disbursed IFAD sub-grants worth USD300,000 to the CFs

• Country Fora: Malawi is the best and Uganda isfairly progressing well in terms of compliance tosubmission of accountabilities and utilisation. Therest of the countries ….

• AFAAS: From lessons learnt & WB grants; Sub-grant Guidelines and Sub- grant agreements arebeing developed and in the final stages pendingApprovals (Board & WB).

AFAAS Challenges with Sub-grants

• Delayed submission of CFs budgets andwork plans;

• Slow utilisation level/burn up rate for thedisbursed sub-grant funds;

• Limited communication and lack of teamwork between the CFs and Secretariat;

• None compliance by the CFs;

• Delayed financial reporting to AFAASsecretariat to consolidate the final reports.

Institutional Framework For Channelling Funds

Outline of the Guidelines

The Guidelines describe the:

• Institutional framework for channelling the funds and Eligibility Criteria

• Management of the sub-grants

• Technical management and reporting guidelines (i.e. Procedure)

• Governance and administration of sub-grants (i.e. Innovation and Direct Disbursed grants; Audit reviews etc.)

• Sub-grant closure and reporting responsibilities

• Monitoring and Evaluation responsibilities

Way Forward

• Finalise the Sub-grant and subsidiary grantsguidelines to enable the CFs receive grants;

• Training and mentoring the CFs uponapproval of the guidelines;

• Financial Monitoring and ProgrammeMonitoring to ensure compliance to thegrant agreements;

• Provide professional service support toimprove the utilisation rate of the funds

African Forum for Agricultural

Advisory Services

Grace Paddy Wanzala, Procurement Officer AFAAS

Bashale Hotel Addis Ababa

14 October 2014

www.afaas-africa.org

Introduction to AFAAS Procurement Guidelines

African Forum for Agricultural

Advisory Services

IS EVERYONE ON BOARD? FASTEN YOUR SEAT BELTS.

Tour de Presentation•Key principles of public procurement

•Institutional framework of AFAAS

•Roles and responsibilities of thedifferent stakeholders.

•Key steps in the Procurement Process

•Progress and Challenges

Key Principles of Public Procurement

• Transparency of the procurement process

• Accountability in the use of funds

• Fairness and Non-discrimination

• Equitable, fair and Open Competition

• Confidentiality

• Economy & Efficiency -Value for Money

• Ethics and Integrity

Institutional Framework & Roles and Responsibilities

AFAAS Board

Accounting Officer

Procurement Awards Committee

Procurement Unit

User Department/CF

Evaluation Committee

• Oversee & Approve Strategic

• Authorise & Represent

• Approve & Recommend

• Prepare & Review

• Initiate & Evaluate

• Assess & Recommend

Role of the Executive Board

• Approve all Governance Manuals and Guidelines

• Approval of the Strategic Plan to give AFAAS a strategic direction;

• Approve the Annual Work plan and Budgets of AFAAS;

• Review of Quarterly and Annual Reports to monitor achievements of AFAAS

Roles and Responsibilities Executive Director

The Executive Director is responsible for:• Approval of AFAAS procurement plans (i.e. MDTF approval

is by the Bank) • Communicating award decisions• Certifying or Authorization of the availability of funds• Signing of contracts and Purchase orders• Investigating complaints by providers/consultants• Ensuring that procurement reports are submitted in time;• Reviewing work plans from UDs/CF/Units and ensuring that

they are consistent & integrated in the procurement plan;• Advertising bid opportunities• Appointment of EC members on adhoc basis

Procurement Awards Committee

(a) Approve SD and ensure the following ‐• the completeness and suitability of the SOR;• the appropriateness and applicability of the proposed evaluation

methodology and criteria contained in the SD;• the appropriateness of the type of contract to the procurement

requirement;• the appropriateness of the SCC proposed; • Ensuring bidding period is reasonable;(b) Approve:• the membership of EC;• technical, financial or combined evaluation reports;(c) Approve contract documents in line with the award decision; (d) Approve contract amendments.

Evaluation Committees

Responsibility of the Evaluation Committee

• The Committee is responsible forevaluating the contract based on thepre‐determined criteria andrecommending award of contracts.

• Preparation of evaluation reportscontaining its recommendation of award tothe PAC for approval and award.

Procurement Unit

Procurement Unit is responsible for :• Procurement planning (Procurement Plan)• Receiving PR, checking that the proposed procurement

is within the approved procurement plan, and that budgeted funds are available prior to commencement of procurement proceedings;

• Ensuring that funds are properly committed prior to issue of any contract or Purchase Order;

• Co‐ordinating the preparation of specifications, TOR;• Drafting Request for Quotation documents (RFQ). • Prepare PAC submissions for review and approval

before issue

Procurement Unit Cont’d

• Arranging the publication of advertisements andnotices of contract award;

• Co‐ordinating the process of opening of quotations

• Participating in evaluation activities and assisting inpreparation of formal Evaluation Reports;

• Preparing submissions for approval of award

• Maintaining and updating the database ofsuppliers, contractors and consultants;

• Participating in negotiations with consultants;

Procurement Unit Cont’d

• Preparing notification of awards and contracts;• Arranging publication of notices of contract

awards;• Preparing contract documents and Purchase

Orders, in line with the award decision;• Preparing and issuing tender rejection and

tenderer debriefing letters;• Preparing contract variations and

modifications;• Assisting with the inspection and acceptance

of goods, works and services;• Maintaining procurement records.

User DepartmentsThe Heads of User Departments/CF are responsiblefor:• Initiation of all procurement activities;• Day to day implementation of activities;• Preparation of the work plan, budget and

procurement plan in collaboration with theproject team.

• Preparation of TORs and specifications;• Evaluations of technical proposals from

consultants for tasks to be performed;• Certification of services/goods before payments

can be made;

User Departments Cont’d

• Briefing the ED and senior management aboutprogress of implementation of AFAAS activities;

• Managing contract implementation includingensuring that contractors/ suppliers deliver as pertheir contracts and payments are made on time;

• Attending procurement meetings as required;

• Keeping track of the outputs and contribution tothe KPI;

• Holding regular coordination meeting with relevantstaffs;

PROCUREMENT PROCESS

Just

checking

that you

are not

sleeping

Steps in the Procurement Process

Step Description of Activity in Procurement Process

Step 1. Submit CF requirements to be integrated into AFAAS AnnualWork plan.

Step 2. Preparation of consolidated procurement plan for AFAAS,seek World Bank approvals.

Step 3. Develop list of providers and consultants to compete for theenlisted opportunities in step 2.

Step 4. Preparation of TORs and specifications.

Step 5. Review of TORs and Specifications for completeness toenhance fairness and non discrimination.

Step 6. Preparation of Procurement Requisition.

Steps in the Procurement Process

Step Description of Activity in Procurement Process

Step 7. Approval of funding on AFAAS requisition form.

Step 8. Preparation of tender documents (RFP/RFQ)

Step 9. Approval of tender documents for consultancy andsupplies

Step 10. Soliciting quotes at least 3 consultants/providersthrough RFP/RFQ/Shopping.

Step 11. Evaluation of Quotes/RFP/RFQa) Technical aspects by staff with technical skillsb) Financial aspects by PU

Step 12. Preparing Award Recommendation report and oradjudication report

Steps in the Procurement Process

Step Description of Activity in Procurement Process

Step 13. Preparation and finalizing Contracts/Orders

Step 14. Approving awards of Contracts/Purchase orders

Step 15. Signing of Contracts/Purchase Orders

Step 16. Contract management/Receipt of deliveries

Step 17. Submission and Approval of Deliverables and orReports for consultants by AFAAS/CF.

Step 18. Submission and Receipt of Invoices byConsultant/Provider.

Steps in the Procurement Process

Step Description of Activity in Procurement Process

Step 19. Verification of documentation for Completenessagainst the established contract and orders andpreparation of Payment Request (PR).

Step 20. Process Payment; Prepare Payment Voucher &receive acknowledgement Receipt.

Step 21. Finalization of procurement files and ensuringaudit trail is complete and close the file.

Step 22. Conduct Procurement Reviews to sub-granteesprocurement processes and procedures to obtainreasonable assurance that it were conducted inaccordance with the agreed procedures.

Step 23. Prepare procurement reports to donors andmanagement

Consultants shall be selected using any of the following methods:

• Shopping (Goods)• Quality and cost based selection method;• Quality based selection method;• Fixed budget selection method;• Least cost selection method• Consultants qualifications selection method.• Single Source Selection methodA Call for proposals/RFP/RFQ must indicate the

selection method to be used by the procurer.

Methods of Selection (Evaluation) Goods/Consultants

28

Progress of AFAAS

• Procurement Management Manual was developed andis being operationalised, but with a number of aspectsdifficult to implement;

• Procurement Officer was recruited by AFAAS;• Established a procurement system for AFAAS with

templates for use (to be uploaded on the procurementblog) and will trickle down to the CFs;

• Reviewed the procurement plan in October 2013 andwas approved by the World Bank (Up loaded on theAFAAS website);

• Developed guidelines for sub-grants pending approval;• Contracted the External Auditors for AFAAS to undertake

the assignment for a period of 3 years (Pending ContractSigning).

Challenges of AFAAS

• Establishment of relevant committees for AFAAS isdifficult due to staffing level at the secretariat i.e. PACrequires 5 persons; EC requires 3 persons etc.

• Delayed preparation of Terms of reference (TOR) andSpecifications (i.e. requirements such as Art work, etc.)

• Non adherence to the principles of Public Procurementand obtaining providers competitively (i.e. obtaining atleast 3 quotes/proforma etc.)

• Inadequate Contract supervision for consultants by theCFs (i.e. No progress reports; delayed submission ofdeliverables; Delayed submission of invoices andaccountabilities);

Challenges of AFAAS

• Absence of AFAAS thresholds (i.e. authorisation oforders and seeking PAC approvals), this will requireestablishing guidelines for approval by ED.

• Lack of knowledge on stakeholder roles andresponsibilities

• Influence of technical staff in the performance ofprocurement activities

• Lack of funds to adequately implement activities• Conflict of interest while performing ones duties• “Payment terms allowed, is not suitable” for small

procurements.

Challenges and BarriersWorking in groups, spend 25 minutes identifying and 5 minutes presenting. Two examples of thechallenges and barriers you have encountered (or you might encounter) while conductingprocurements under the CFs. Challenges are factors that can be overcome, through a change ofapproach. Barriers are factors that seem impossible to overcome.

Challenges in procurement and Utilisation of sub-grants under the Country Forum– I experienced these challenges / believe these are challenges:

Procurement: ………………………………..

Utilisation of Sub-grants: ……………………………………………

Barriers to the Country Forum – I came up against these barriers / believe these barriers exist:

Procurement: ………………………………..

Utilisation of Sub-grants: ……………………………………………

Way Forward for AFAAS

• Review some aspects of the Procurementmanagement manual to match the staffing levels;

• Improve supervision for consultants to ensuretimely completion of assignments and delivery ofdeliverables;

• Understand the roles and responsibilities of thestakeholders in the institutional framework;

• Establish procurement thresholds for authorizationand creating table of authority for approvals.

• Teamwork and cross functional teaming (QualityCircles;

The last word

“It is not the strongest of the species

that survive nor the most intelligent,

but the one most responsive to

change”.

Charles Darwin

Thank You for Your AttentionLet’s move on