kenya forest procurement service … procurement...service document title: ... 3.10.3 accept or...

KENYA FOREST SERVICE

DOCUMENT TITLE: PROCUREMENT

REF NO: KFS-SCM-003

ISSUE HISTORY

ISSUE NO: 1

PAGE: 1 of 14

ISSUE

DESCRIPTION OF CHANGE

PROCESS PILOT

EFFECTIVE DATE

1

None, no change has been done. Head Supply & Chain Management 14TH

June 2010

REFERENCED DOCUMENTS

COPY HOLDERS

REF

QPM

QPM - 7

PM

WI

TITLE

Quality policy manual

Product Realization

Procedure Manual

Work Instructions

1. Director

2. Head supply Chain

3. Senior Procurement

Officer

4. Procurement Officer

5. QMR

6.

KFS/PROC/WI/01 Determination of purchasing requirements /

budget

KFS/PROC/WI/02 Evaluation of Quotations

KFS/PROC/WI/03 Expediting foreign purchases

KFS/PROC/WI/04 Supplier pre-qualification

KFS/PROC/WI/05 Evaluation of suppliers

KFS/PROC/WI/06 Inspection of Incoming Product

KFS/PROC/WI/07 Stores management

Kenya Forest Act

Procurement Manual

Public Procurement Act

Code of regulations

PREPARED BY: HEAD, SUPPLY CHAIN

APPROVED BY: DIRECTOR

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REF NO: KFS-SCM-003

RECORDS / ANNEXES

REC NO

ISSUE NO: 1

REC TITLE

Local Purchase Orders

Local supply Orders

Approval limits for IPR

Goods Received notes (S13)

Delivery Notes

Inspection Report

Invoice Register

Concession Form

Purchase Request Note

Quotation Register

Stores Issuance Register

Tender/Procurement Committee Minutes

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REF NO: KFS-SCM-003

ISSUE NO: 1

TABLE OF CONTENTS

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ISSUE HISTORY .......................................................................................................................... 1

REFERENCED DOCUMENTS .................................................................................................. 1

RECORDS / ANNEXES .............................................................................................................. 2

1.

2.

3.

SCOPE................................................................................................................................ 4

PURPOSE .......................................................................................................................... 4

RESPONSIBILITY AND AUTHORITY ........................................................................... 4

4 OBJECTIVES ........................................................................................................................ 7

5 TERMS AND DEFINITIONS ............................................................................................... 7

6 DETAILS OF PROCEDURE ............................................................................................... 8

6.1 Internal Purchase Requests ............................................................................................ 8

6.2 Procurement Plan.............................................................................................................. 9

6.3 Verification of Purchased Products/Services .............................................................. 10

6.4 Stores Management ....................................................................................................... 10

6.5 Inventory Management ................................................................................................... 11

CONCESSION FORM ............................................................................................................... 11

PROCESS FLOW CHART (Procurement Plan) .................................................................... 12



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REF NO: KFS-SCM-003

1. SCOPE

ISSUE NO: 1

PAGE: 4 of 14

This procedure covers from receiving of an IPR to raising a GRN and

informing the user department; from preparing a list of requirements, appointment of suppliers, monitoring supplier performance to updating

records; from receiving of ordered products/services to the raising of GRN; from receipt of products to the carrying out of planned stock takes; from stock identification to replenishment.

2. PURPOSE

This is to ensure adequate control in the supply chain processes within Kenya Forest Service.

3. RESPONSIBILITY AND AUTHORITY

3.1 Director

3.1.1 Provides overall leadership in procurement process in KFS.

3.1.2 Acts as the accounting officer for all procurement processes.

3.2 Chief Accounts Officer

3.2.1 Approves IPRs as per authorized limits

3.2.2 Authorizes payments.

3.3 Head Supply Chain Management

3.3.1 Overall responsible for the Purchasing and Supplies process.

3.3.2 Secretary to the tender committee. 3.3.3 Advice Director on procurement issues.

3.4 Senior Procurement Officer

3.4.1 Deputize the head of supply chain management division.

3.4.2 Approves LPO/LSOs’. 3.4.3 Verifies and approves IPRs as per authorized limits. 3.4.4 Prepare, publish and distribute procurement and disposal opportunities

including invitation to tender, pre-qualification documents and

invitations for expression of interests.

3.4.5 Co-ordinate the receiving and opening of tender documents.

3.4.6 Propose the membership of evaluation committee to the accounting

officer for approval.

3.4.7 Implement the decisions of the procurement and tender committees,

including coordinating all the activities of these committees.

3.4.8 Prepare and publish notices of award and of tender acceptance.



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3.4.9 Co-ordinate internal monitoring and evaluation of the supply chain in

the procurement department.

3.4.10 Provide directions as required for any petition or investigation to debar

a tenderer, contractor or any investigation under review procedures.

3.4.11 In charge of the day to day activities in procurement department.

3.4.12 Co-ordinates the pre-qualification and approval of suppliers process.

3.4.13 Overall responsible for verification of purchased products/services. 3.4.14 Identifies, rates and short-lists potential suppliers. 3.4.15 Monitors supplier performance. 3.4.16 Prepares supplier pre-qualification forms. 3.4.17 Updates records.

3.5 Procurement Officer

3.5.1 Maintain and safeguard procurement and disposal documents in

accordance to procurement regulations.

3.5.2 Co-ordinate the evaluation of tenders and quotations.

3.5.3 Act as a secretary to the procurement and disposal committees.

3.5.4 Certify the invoices and payment vouchers to various suppliers.

3.5.5 Endorsing the issuance of stocks, works and services received notes.

3.5.6 Participating in the evaluation of tenders, proposals and quotations.

3.5.7 Prepare consolidated procurement plans.

3.5.8 Raises IPRs.

3.5.9 Raises LPOLSO’s.

3.5.10 Sources for Suppliers.

3.5.11 Obtains and evaluates quotations.

3.5.12 Expedites the placed orders.

3.5.13 Overall in charge in ensuring proper inventory management.

3.5.14 Co-ordinates planned stock takes.

3.6 Stores Officer

3.6.1 Verifies delivery notes.

3.6.2 Raises GRNs.

3.6.3 Raises IPRs for stock items. 3.6.4 Incharge of stock control/custodian. 3.6.5 Incharge of payment process documents of supply chain. 3.6.6 Defines/codes stocks. 3.6.7 Replenishes stocks. 3.6.8 Monitors stock movement. 3.6.9 Receives new stock. 3.6.10 Updates stock records. 3.6.11 Receive and verify incoming products/services.



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PAGE: 6 of 14

3.6.12 Reject non-conforming products/advise the supplier.

3.7 Stores Assistant Officer

3.7.1 Posting of stock data in to the inventories.

3.7.2 Balancing stock cards.

3.7.3 Deputize the stores officer.

3.8 Tender Committee

3.8.1 Ensure that all procurement and disposal procedures are followed.

3.8.2 Fully incharge of tenders above Kshs 500,000.

3.8.3 Sets the tender evaluation requirements.

3.8.4 Opens tenders.

3.8.5 Approves selection of successful tender or disposal.

3.8.6 Ensure availability of funds for the procurement.

3.8.7 Review the selection of procurement method.

3.8.8 Approves list of tenderers in cases of restricted tendering.

3.8.9 Approve amendment of previously awarded contracts.

3.8.10 Review the quarterly reports on quotations awarded by the

procurement committee.

3.8.11 Institute evaluation team as necessary

3.8.12 Evaluates pre-qualified suppliers and recommends appointment of

qualified suppliers 3.8.13 Evaluates tenders and contracts as necessary

3.9 Procurement Committee

3.9.1 Fully incharge of tenders Kshs 500,000 and below.

3.9.2 Opens quotations.

3.9.3 Approve or reject a submission made by procurement unit.

3.9.4 Institute evaluation team as necessary.

3.9.5 Evaluates pre-qualified suppliers and recommends appointment of qualified suppliers 3.9.6 Evaluates tenders and contracts as necessary.

3.10

Inspection and Acceptance Committee

3.10.1 Inspects received goods, and where necessary test them.

3.10.2 Confirm compliance of goods, work, or service with contract

specifications.

3.10.3 Accept or reject goods, works or service on behalf of the procuring

entity.

3.10.4 Ensure goods, works or services meet the technical standards.



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3.10.5 Ensure that necessary documentation has been received.

3.10.6 Issue interim or completion certificate or goods received note as

necessary.

3.11

Disposal Committee

CSF

3.11.1 Confirm validity of disposal request.

3.11.2 Approve or disapprove disposal request.

3.11.3 Dispose as appropriate.

3.11.4 Prepare and issue disposal certificate.

3.10 Departmental/Divisional Heads

3.10.1 Verify budget/need for purchase.

3.10.2 Provide specifications for goods/services required.

3.10.3 Participate in Tender Committee as assigned.

3.10.4 Authorize IPRs in their respective division/department.

3.11 All staff

3.11.1 Responsible for raising IPRs as assigned

3.11.2 Raise IPR for non-stock items as necessary.

3.11.3 Receive and verify the ordered products/services as assigned. 3.11.4 Reject non-conforming products.

4 OBJECTIVES

NB: Refer to the performance contract.

KPI TARGET(S)

5 TERMS AND DEFINITIONS

DUE

TERM

KFS

LPO

LSO

DEFINITION(S)

Kenya Forest Service

Local purchase Order

Local Supply Order



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REF NO: KFS-SCM-003

TERM

DN

GRN

SLC

FPO

SIN

ENCOM

TC

SCM

ISSUE NO: 1

DEFINITION(S)

Delivery note

Goods Received Note

Stores Ledger Card

Foreign Purchase Order

Stores Issue Note

Enforcement And Compliance

Tender Committee

Supply Chain Management

PAGE: 8 of 14

6 DETAILS OF PROCEDURE

6.1 Internal Purchase Requests

6.1.1 Determine purchase requirements/budget as per Work Instructions.

6.1.2 Prepare specifications for the required purchase/service.

6.1.3 Raise IPR as per product/service specifications.

6.1.4 Receive approved IPR from user/stores.

6.1.5 Check list of approved suppliers and select suppliers.

6.1.6 Request and evaluate quotations as necessary.

6.1.7 Fill IPR with price and suppliers details and seek approval as per

authorized limits.

6.1.8 Raise LPO and forward for approval.

6.1.9 Update records and dispatch copies.

6.1.10 Expedite/follow-up of placed orders as per work instructions.

6.1.11 Receive/Verify and sign delivery notes and raise GRN and inform user.



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6.2 Procurement Plan

ISSUE NO: 1

PAGE: 9 of 14

6.2.1 Head of Procurement requests all user departments to provide requirements for

goods and services for next financial year during the third quarter of the

preceding year.

6.2.2 The needs are consolidated into a plan and forwarded to the tender committee

for approval

6.2.3 Once approved, the tender documents are prepared and advertised as per the

public procurement and disposal act indicating closing and opening dates

6.2.4 Tender opening committee opens the docs and register all the bids in presence

of the bidders (optional)

6.2.5 Preliminary evaluation of the bids is done by Tender Opening Committee and

Tender Committee Secretariat to for check for compliance with the stated

requirements. If they do not comply they are disqualified.

6.2.6 The qualified bids are forwarded to Tender evaluation committee ( technical and

financial separately or both) to evaluate the bids and prepare a report

6.2.7 Report presented to tender committee for adjudication and awarding of tenders

6.2.8 Secretary to tender committee communicates with all the bidders on the outcome

6.2.9 Contract signed between accounting officer and the successful bidders

6.2.10 Goods/services are then ordered as required.



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PAGE: 10 of 14

NOTE 1: Procurement Committee opens quotations on weekly basis on

every Wednesday and minutes recorded, and forwards

quotations above Ksh 500,000 to the tender committee on

the same day.

NOTE 2: Minutes from procurement committee well printed and

approved, are distributed to members on the following date.

NOTE 3: Raising and examination of Purchase orders are done within

2 (two) days after opening of quotations, each on a single day.

NOTE 3: Tender committee sits within 5 (five) days after receipt of

quotations.

NOTE 4: AIE holder approves purchase orders at most after 1 (one) day

of receipt.

6.3 Verification of Purchased Products/Services

6.3.1 Receive ordered products/services as per work instructions.

6.3.2 Inspection is done on the delivery date and goods are taken to the

store.

6.3.3 Inspection is done in presence of at least two of its members against

the specifications.

6.3.4 One of the present inspection team members must be the user/

appointee by the user department.

6.3.5 Receive products/service and sign D/N.

6.3.6 Raise GRN.

6.3.7 Issue certificate of acceptance of goods and services as necessary.

6.3.8 Facilitate return of non-conforming products.

6.3.9 Concession form can be used where necessary, with the approval of the

user and procurement department.

6.4 Stores Management

6.4.1 Receive inspect and verify ordered products into the stores as per



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ISSUE NO:

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6.4.2 Receive and Sign delivery note.

the stores as per Work d place in designated areas in the stores as per Work

6.4.3 Code products and place in designated areas in Instructions.

6.4.4 Raise GRN and pass for authorization.

6.4.5 Update stock records.

6.4.6 Receive Stores Requisition and raise Stores Issue Note.

6.4.7 Issue products to the user and update records as per Work

Instructions.

In case product is not ex-stock raise IPR as necessary. 6.4.8 In case product is not ex 6.4.9 Carry out planned stock takes as per Work Instructions.

NOTE 1: Procurement department stores its procurement documents

ling Lateral Cabinets. in Filing Lateral

6.5 Inventory Management

6.5.1 Identification of stocks as per Work Instructions.

6.5.2 Determine buffer stocks and set minimum and maximum stock levels.

6.5.3 Monitor stock movement.

6.5.4 Set economic re-order levels.

6.5.5 Replenish stocks.

CONCESSION FORM

KENYA FOREST SERVICES

Concession Request Form

Issue / Rev 1/0



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ISSUE NO: 1

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To: _________________________________________________

___________

_________________________________________________

_________________________________________________

Date:

We are requesting for a concession to accept the following products with the characteristics listed below:

Product

Characteristics

Required

Actual

Deviation

1. _________________ _________________

2. _________________

_________________

3. _________________

_________________

4. _________________

_________________

5. _________________

_________________

_________________

_________________

_________________

_________________

_________________

If acceptable, please sign and stamp for “user’s approval” and send this form back to us immediately to facilitate acceptance of the products.

Thank you.

Yours faithfully,

_________________ __________ Head - User Department

User’s Approval: ______________

Date:

PROCESS FLOW CHART (Procurement Plan)

ACTIVITY

RESPONSIBILITY



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ISSUE NO: 1

PAGE: 13 of 14

Requests all user departments to provide requirements for goods and services

Needs are consolidated into a plan and

forwarded for approval

NO

Approved?

YES

Tender documents are prepared and

advertised

Opens the docs and register all the bids

Preliminary evaluation of bids

Returned for correction

Head of Procurement

Tender Committee

Procurement

Tender Opening Committee

Tender Opening

Committee/Tender

NO

Committee Secretariat

YES

Complies ?

1

Bidder disqualified



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Evaluates the bids and prepare a report

Report presented to tender committee

for adjudication and awarding of tenders

Communicates with all the bidders on

the outcome

Contract is signed

Goods/services ordered as required

END


Tender Evaluating

Committee

Secretary, Tender

Committee

Accounting Officer/

Successful bidders

Procurement


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kenya forest procurement service … procurement...service document title: ... 3.10.3 accept or...

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