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INCREASING COMPLIANCIN LGA PROCUREMENT

WORKSHOP REPORT

LGA Procurement Capacity Building

Strategy Formulation Workshop

Dodoma, 11

PMO-RALG

ENHANCEMENT OF PROCUREMENT CAPACITY OF LOCAL GOVERNMENT AUTHORITIES PROJECT (EPC

INCREASING COMPLIANCE AND VALUE FOR MONEIN LGA PROCUREMENT

WORKSHOP REPORT



doma, 11-13 June 2013

T OF PROCUREMENT CAPACITY OF LOCAL GOVERNMENT AUTHORITIES PROJECT (EPC

E AND VALUE FOR MONEY

WORKSHOP REPORT



T OF PROCUREMENT CAPACITY OF LOCAL GOVERNMENT AUTHORITIES PROJECT (EPC-LGAP)

Workshop Report / LGA Procurement Capacity Building Strategy Formulation 1

CONTENTS

CONTENTS ............................................................................................................................. 1

ACRONYMS ............................................................................................................................ 2

EXECUTIVE SUMMARY ......................................................................................................... 4

1 INTRODUCTION ........................................................................................................ 6

2 WORKSHOP OBJECTIVES ....................................................................................... 7

3 WORKSHOP METHODOLOGY AND TOOLS ........................................................... 8

4 WORKSHOP PROCEEDINGS................................................................................. 11

4.1 Workshop Introduction (Session A) .......................................................................... 11

4.2 Workshop Opening ................................................................................................... 13

4.3 Workshop Outputs .................................................................................................... 13

4.3.1 Challenges, Root Causes and Capacity Gaps (Sessions B, C, D and E) .......... 14

4.3.2 Proposed Actions (Session F, G and H) ............................................................. 15

4.3.3 Thematic Analysis of Strategic LGA Procurement Areas (Sessions I, J and K) . 20

4.3.4 Quality Assurance of LG Procurement – Audits ................................................. 21

4.3.5 Quality Assurance of LG Procurement – Procurement MIS ............................... 23

4.3.6 Lower Local Government Procurement Capacity and Training Strategy ............ 25

4.3.7 Logical Framework (sessions L, M and N) ......................................................... 28

4.4 Emerging Issues ....................................................................................................... 32

4.4.1 Legislative and Regulatory Framework .............................................................. 32

4.4.2 Institutional Framework and Management Capacity .......................................... 32

4.4.3 Procurement Operations and Market Practices ................................................. 32

4.4.4 Integrity and Transparency of the Procurement System .................................... 33

4.5 Project Launch.......................................................................................................... 33

5 EVALUATION ........................................................................................................... 35

6 CONCLUSIONS AND WAY FORWARD ................................................................... 36

ANNEXES ............................................................................................................................. 37

Annex 1: Workshop Programme ........................................................................................ 38

Annex 2: List of Participants ............................................................................................... 41

Annex 3: Workshop Tools .................................................................................................. 44

Annex 4: Outputs of Group Work ....................................................................................... 50

Annex 5: Workshop Presentations and Workshop Materials.............................................. 58

Annex 6: Photo Gallery ...................................................................................................... 67

2 Workshop Report / LGA Procurement Capacity Building Strategy Formulation

ACRONYMS

AAS Assistant Administrative Secretary

ALAT Association of Local Authorities of Tanzania

APP Annual Procurement Plan

BLI Base Line Indicator

BLS Base Line Study

BTC Belgian Technical Cooperation

CAG Controller and Auditor General

CB Capacity Building

CPI Compliance and Performance Indicator

CSO Civil Society Organisation

CTB Council Tender Board

DAC Development Assistance Committee

D by D Decentralisation by Devolution

DC District Council

DCDO District Community Development Officer

DE District Engineer

DED District Executive Director

DEO District Education Officer

DIA District Internal Auditor

DLG District Local Government

DHRO District Human Resource Officer

DPLO District Planning Officer

DT District Treasurer

EPC-LGAP Enhancement of Procurement Capacity of Local Government Authorities Project

EPICOR Accountancy software used for Integrated Financial Management System

FC Financial Controller

GoT Government of Tanzania

GPSA Government Procurement and Supplies Agency

HLG Higher Local Government

HLGTI Hombolo Local Government Training Institute

HoD Head of Department

HRM/D Human Resource Management and Development

IA Internal Auditor

IAG Internal Auditor General

ICT Information & Communication Technology

ICT Information and Communication Technology

IFMIS Integrated Financial Management Information System

JICA Japan

JLPC Joint Local Partners Committee

KPI Key Performance Indicator

LAAC Local Authorities Audit Committee

LF Logical Framework

LGA Local Government Authority

LGAMSS Local Government Authority Management Support Section

LGFM Local Government Financial Memorandum

LG-PCBS Local Government Procurement Capacity Building Strategy


LLG Lower Local Government

MDA Ministries, Departments and Agencies

M&E Monitoring and Evaluation

MKUKUTA Swahili Acronym for “Tanzania Strategy for Growth and Reduction of Poverty”

(Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania)

MoF Ministry of Finance

NAO National Audit Office

NGO Non-Governmental Organization

OECD Organisation for Economic Cooperation and Development

OO Overall Objective

OPRAS Open Performance Review and Appraisal System

PC Project Coordinator

PCCB Prevention and Combating of Corruption Bureau

PE Personnel Emolument

PE Procuring Entity

PFA Public Finance Act

PIU Project Implementation Unit

PlanRep Planning and Reporting System (LGA)

PFMRP Public Financial Management Reform Programme

PMIS Procurement Management Information System

PMO-RALG Prime Minister’s Office Regional Administration and Local Government

PMU Procurement Management Unit

PPA Public Procurement Act

PPPD Public Procurement Policy Division

PPRA Public Procurement Regulatory Authority

PSO Private Sector Organisation

PSPTB Procurement Supplies Professionals and Technicians Board

QA Quality Assurance

QTP Qualified Training Provider

RAS Regional Administrative Secretary

RS Regional Secretariat

SO Specific Objective

SU Service Unit

TA Technical Assistance

TACECA Tanzania Civil Engineering Contractors Association

TE Training Entity

TEC Technical Evaluation Committee

TFF Technical and Financial File

TNA Training Needs Assessment

ToR Terms of Reference

ToC Training of Coaches

ToT Training of Trainers

VA Village Assembly

VC Village Council

VEO Village Executive Officer

VfM Value for Money

WEO Ward Executive Officer


EXECUTIVE SUMMARY

As part of developing the institutional procurement capacityin Tanzania, the Prime Minister’s

Office Regional Administration and Local Government (PMO-RALG) and the Public Procurement

Regulatory Authority (PPRA) organised a participatory workshop to formulate the building blocks of

the LGA Procurement Capacity Building Strategy (LG-PCBS) with assistance of the Enhancement

of Procurement Capacity of Local Government Authorities Project (EPC-LGAP).

The EPC-LGAP has been formulated by the Government of the United Republic of Tanzania with

assistance of the Kingdom of Belgium in response to four inter-related capacity needs in the

procurement system of Local Government Authorities (LGA), namely:

i) To strengthen capacity and coordination of central-level institutions responsible for capacity

building, monitoring, quality assurance, supervision and compliance enforcement in LGA

procurement;

ii) To strengthen LGAs capacity (systems, tools, staff, skills, structures, leadership) for

compliant, transparent, efficient and effective procurement management;

iii) To improve on accountability and voice of the end-users in LGA procurement; and

iv) To inform policy makers on the outcome of LGA procurement practices to strengthen policy

dialogue, institutional reform and decision-making.

The participatory planning workshop drew 75 senior officials and representatives from:

� PMO-RALG, PPRA, HLGTI, CAG (NAO), IAG, PPPD and PSPTB;

� Eight selected districts and four regions; and

� Representatives of CSOs, media and training institutes.

During the workshop the project was officially launched by the Minister Responsible for Local

Government and the Ambassador of the Kingdom of Belgium in the presence of Chairman of the

Board of PPRA, Chairman and members of the Joint Local Partner Committee, Regional

Commissioner of Dodoma region and invited guests. The Permanent Secretary PMO-RALG opened

the workshop and closing was done by the CEO of PPRA.

Workshop participants were conversant with real challenges facing the LGA procurement

processes and outcomes, and were willing and able to propose relevant and creative interventions

to be incorporated in the procurement CB strategy (and Project Logical Framework). In order to

have full participants’ involvement and contribution the workshop sessions were parceled into

construction-objective oriented slots with group working sessions and plenary methods for group

report-back presentations and paper presentations. The groups were composed based on specific

roles and responsibilities in the LGA procurement cycle and capacity building.

The methodology used was gap analysis in relation to procurement challenges and root causes of

low LGA procurement capacity, followed by formulation of proposed actions and desired outcomes.

The analysis was placed in the perspective of international best practices in public procurement, in

particular the four OECD pillars for assessment of procurement systems.


Technical papers were presented on the second day to avoid pre-emptying the participants’

analysis of the LGA procurement situation (i.e. challenges, root causes, capacity gaps and

proposed solutions). The papers included 1) Procurement monitoring and LGA capacity gaps; 2)

Procurement Quality Assurance through audits; 3) Procurement Quality Assurance through

interfaced Management Information Systems; 4) Procurement capacity of Lower Local

Governments and Training Strategy; 5) the EPC-LGAP Logical Framework

The workshop formulated a set of desired outcomes and strategic actions in the fields of 1)

Institutional, equipment and technology incentives; 2) Institutionalization of LGA procurement

Scheme of Service; Policies and regulations; 3) Supportive oversight and accountability

mechanisms; 4) Human resources and skills; 5) Education, training and coaching; and 6)

Leadership and governance.

The workshop made several recommendationsof the procurement system and its application in

LGAs related to: 1) Legislative and regulatory framework; 2) Institutional framework and

management capacity; 3) Procurement operations and market practices; and 4) Integrity and

transparency of the procurement system.

Issues to be addressed include the need to finalise PPA 2011 and its regulations; Review and

harmonization of the Local Government Finance Act and Public Procurement Act; Introduction of

procurement guideline for Lower Local Governments; introduction of LGA procurement operational

manuals; Recognition of role and place of the PMU in the LGAs; and further Professionalization of

the procurement function. Capacity building strategy is needed, which is recommended to include

introduction of procurement training manuals; training, mentoring and coaching in prioritized weak

LGA procurement areas based on procurement skills development plans; Establishment of district

trainings teams covering both higher and lower Local Governments; Explicit attention for

procurement skills at lower levels and the capacity of contractors and suppliers; as well as Effective

and coordinated internal and external quality assurance, oversight and follow-up. The issue of

understanding of Public Procurement Act (PPA), language and addressing leadership, ethics and

integrity were explicitly mentioned in this respect. Other proposals to improving the procurement

system included the need for more information, publicity and transparency in tender opportunities

and awards at all levels; Introduction of simplified version of procurement guides; Interfacing

procurement MIS with LGA Management Information Systems;Increased use of ICT to enhancing

credibility, coverage and productivity of the systems; Procurement records and reports at all

(delegated) levels from all sectors operating in the LGAs; and the National Procurement Information

System.

The outputs of the workshop process validated the intervention logic of the EPC-LGAP and

together with analysis and proposals made during this workshop, the building blocks are in place to

finalise the formulation of the proposed LGA Procurement Capacity Building Strategy.

All participants shared the mission of this strategy to be “Procurement Capacity at Local

Government Level is sustainably enhanced” to be measured by “IncreasedCompliance and Value

for Money in LGA procurement in Tanzania”.


1 INTRODUCTION

This report presents the process, findings and outputs of the workshopto formulate the LGA

Procurement Capacity Building Strategy (LG-PCBS), which took place in Dodoma from 11-13 June

2013.The 2½ day workshop was co-hosted by Prime Minister’s Office Regional Administration and

Local Government (PMO-RALG) and the Public Procurement Regulatory Authority (PPRA) with

assistance of the Enhancement of Procurement Capacity of Local Government Authorities Project

(EPC-LGAP). The workshop was opened by the Permanent Secretary of PMO-RALG and closed by

the Chief Executive Officer of PPRA.

On the 3rd day of the workshop the Project was officially launched by the Honourable Minister

responsible for Local Government, Mrs Hawa Ghasia and the Ambassador of the Kingdom of

Belgium, Mr. Koenraad Adam in the presence of representatives of PMO-RALG, PPRA, Joint Local

Partner Committee members, representatives of ministries and agencies, Regional Commissioner

Dodoma, Belgian Technical Cooperation, Development partners and workshop participants.

The workshop brought together a cross-section of key stakeholders with representatives from Local

Government Authorities, Regional Secretariats, oversight bodies (PPRA; Controller and Auditor

General, CAG; Internal Auditor General, IAG), Ministries and Agencies (PMO-RALG; MoF – Public

Procurement Policy Division, PPPD; Government Procurement and Supplies Agency; GPSA;

Procurement Supplies and Technicians Board, PSPTB), training entities and civil society. The aim of

the workshop was to review and analyse procurement challenges, capacity gaps and root causes of

procurement weaknesses in Local Government Authorities (LGA) and to agree on solutions and

desired outcomes to strengthen their procurement performance. The workshop methodology was

designed to maximise contributions and sharing of participants’ knowledge and experience in

relation to procurement system and practices in Tanzania.

Participants agreed that the mission of the strategy should be to sustainably strengthen LGA

procurement capacity as measured by a Key Performance Indicator of increased compliance and

performance of LGA procurement by 2017. Participants identified several strategies to achieving this

mission, which largely coincidedwith interventions formulated for the EPC-LGAP, which were

complemented by additional strategic interventions as identified during the workshop.

This report is structured as follows. Chapter two introduces the workshop objectives, which is

followed by an overview of the workshop process, methodology and tools in chapter three. The core

of the report is chapter four, which contains the proceedings of all sessions including the outputs of

group work and conclusion of plenary sessions describing LGA procurement challenges, root

causes of identified capacity gaps, desired outcomes and proposed solutions.Three strategic areas

were in-depth analysed: 1) Quality Assurance of LGA procurement through internal and external

audits; 2) Quality Assurance of LGA procurement by increased customization and interfacing of

(Procurement) Management Information Systems (MIS) and 3) Procurement capacity in Lower

Local Governments (LLG) and Training Strategy. Chapter four concludes with a presentation of

emerging issues of the Tanzanian procurement system. Chapter five summarises the evaluation of

the workshop followed by conclusions and way forward in chapter six.

Chapter seven contains annexes including the workshop programme, list of participants, tools,

outputs of group work, workshop presentations and materials, and the photo gallery.


2 WORKSHOP OBJECTIVES

The workshop objectives were summarised as bringing together a cross-section of stakeholders in

LGA procurement to:

� Analyse the desired and actual LGA procurement capacity;

� Determine LGA procurement capacity gaps;

� Analyse root causes of prioritised low capacity;

� Define and agree on strategic actions;

� Make improvements and validate the Project Logical Framework; and

� Provide building blocks i.e. strategic interventions for the proposed Local Government

Procurement Capacity Building Strategy.

The end-product was to have a stakeholder-owned and validated Project Logical Framework ready

for implementation targeting intermediary and final beneficiaries (Local Government Authorities) and

building blocks for the proposed LGA Procurement Capacity Building Strategy.


3 WORKSHOP METHODOLOGY AND TOOLS

The workshop was executed by using a participatory planning approach. There were five technical

papers prepared in advance for presentation and discussion at the workshop, which were presented

on the second day to avoid pre-emptying the participants’ analysis of the procurement situation (i.e.

challenges, root causes, capacity gaps and proposed solutions). All workshop participants were

presumed to be conversant with real challenges facing the LGA procurement processes and

outcomes, and therefore assumed to be willing and able to propose relevant and creative

interventions to be incorporated in the procurement CB strategy (and Project Logical Framework).

The methodological approach of the workshop was prepared by the facilitator (Prof Gaspar Munishi)

in close collaboration with the Project Implement Unit. In order to have full participants’ involvement

and contributionthe workshop sessions were parceled into construction-objective oriented slots or

cells (see Annex 7.1: workshop programme). The group working sessions were given identification

names with plenary method for group report-back presentations and prepared technical paper

presentations. The plenary sessions had session chairpersons and rapporteurs. The groups were

composed based on specific roles and responsibilities in the LGA procurement cycle and capacity

building.

There were methodological materials prepared for the group sessions, which included workshop

games, brainstorming and issue-focused brainstorming models (Fishbone Model, Gap Analysis and

Mind Tool). Groups were provided with group report writing and presentation formats (see Annex

7.3: workshop tools).

Workshop Methods and Tools

The workshop used tools or methods to develop diversity, creativity and activeness in a planning

workshop process. The following is a brief summary of the tools and theirexpected functions for the

workshop performance.

Letter to Myself

The purpose of this method was to put the participants in context and enable a contributory mood

during the workshop. This method was also used to review the LGA procurement situation as it was

being perceived by the participants at the time they were attending the workshop, and by identifying

experiential challenges at their work places.

Fishbone Tool

This tool was used when the system’s major problem had been identified, for example “an under-

performing LGA procurement system” which is configured as the head of the concept fish. Various

root causes were identified along the way as the ribs attached to the fish’s backbone that leads to

the undesired state of LGA’s poor procurement performance.

Brainstorming and Buzz Technique

Brainstorming and buzzing methods were used to point out the major challenges in the LGA

procurement system, in particular by creating rhythm and anxiety in the minds of the participants as

they set out to participate in the workshop process.


Fishbone Technique for Cause and Effect

The Fishbone analytical technique was again applied to identify the root causes and challenges

resulting into the present (poor) state of the LGA procurement performance. The proceedings show

that some root causes such as poor state of ethics, procurement skills, financing, political

interference, poor organizational structure and over centralization, etc. were identified using this

tool. Each root cause was written on a manila card, discussed and rated during the group sessions

and presented during the plenary presentation. The tool generated many root causes, but a few

which were found to be common and prioritized were taken for further deliberation.

Gap Analysis/Mind Tool

During the group brainstorming at least five gaps were identified and each one was written on a

manila card. Once the major problems and their root causes had been identified, the participants

went into groups to discuss what was desired as “a well performing” LGA procurement system by

using “Gap analysis technique” using a Mind tool framework. For each identified gap the groups

were required to suggest activities or interventions to address the gaps. The prioritized gaps and

interventions were reported at the plenary session.

Group Guide Questions and Reporting Formats

Questions had been prepared in advance to guide the group discussions during their discussions

and brain storming sessions. Also group reporting formats were provided to harmonize and to

create consistency.

Models and Workshop Structuring

At the intersection of plenary and group discussions short explanatory power point presentations

were designed to structure and enable better focus of the participants’ group discussions and

workshop deliverables. One such presentation was a general presentation on the basic concepts of

procurement capacity development, gap analysis techniques, dimensions and a definition of

capacity assessment and the objectives of the workshop. Another one was a power point

presentation on methodology, group reporting formats, and the OECD-DAC pillars to assess

proficiency of procurement systems.

Thematic Papers

Once the problems, challenges, root causes of challenges and gaps had been identified in the

group sessions of the first day and thereafter discussed, amajor part of the second day was devoted

to presentation of thematic papers, followed by groupdiscussions.For the purpose of discussing and

reviewing the thematic presentations, the participants went into three functional groups according to

the papers presented. The paper presentations were on:

� Quality Assurance: Audits

� Quality Assurance: (Procurement) Management Information Systems (MIS)

� Lower Local Government Procurement Capacity and Training Strategy

Merging Group Work Outputs and Thematic Presentations

The groups came up with issues raised in the paper presentations following the group reporting

format accompanied by written cards. The closure of the day was completed by synthesizing what

was desired as a well performing LGA procurement system against the background of the previous


day’s group, plenary discussions and the OECD-DAC Procurement Pillars. Issues, gaps, strategies

and proposed interventions appeared to be overlapping, self-validating and fact-reinforcing. It was

noted that there were similarities between what the groups had discussed and the issues raised in

the papers. This convergence did create more interest and ownership of the workshop proceedings

and resolutions on the recommended interventions. It also translates to validating the research

based thematic papers in the sensethat they addressed pertinent issues as perceived and

experienced by LGA procurement practitioners.

Project Logical Framework and Building Blocks for LGA Procurement CB Strategy

The third day was dedicated to synthesizing the group reports and the thematic paper

presentations. The EPC-LGAP Project Logical Framework was exposed to participants only to

realize that the interventions recommended by their groups found surrogates in the presented

Project Logical Framework. Therefore what had been deliberated upon during the previous

workshop sessions found relevance and tallied well into realizing the objectives of the workshop.

The interventions which had been recommended by the workshop participants were used to create

envisaged LGA Procurement strategies and possible interventions. The methodology used here

was first a plenary review of what the groups had seen as challenges and gaps (root causes),

agreeing on possible strategic interventions, which were to be factored into the construction of a

Capacity Building Strategy to improve and enhance the LGA procurement capacity.

Workshop Wrap-Up

Workshop participants were required to brainstorm and to write down at least five activities that

could form interventions to enhance procurement capacity. They were required to take into account

that what they were to recommend as possible interventions were to be informed by what they

discussed and resolved during the workshop. These were then synthesized and discussed along

with the Project Logical Frame.

Evaluation

The last exercise concerned the participants’ evaluation of the workshop and suggested actions or

activities for the way forward.


4 WORKSHOP PROCEEDINGS

4.1 Workshop Introduction (Session A)

The introduction session was facilitated by Dr. Laurent Shirima (Project Coordinator), who

welcomed the participants on behalf of the organising committee. Participants were asked to

introduce themselves by mentioning their names and institutions represented. The workshop

brought together 74 representatives from various organisations, regions and districts:

ORGANISATION PARTICIPANTS MEN WOMEN

Districts 30 20 5

Regions 9 6 3

Oversight Bodies 19 13 6

Other 16 10 6

Total 74 49 20

Following the self-introductions, the facilitator, Prof Gaspar Munishi, asked participants to write “a

letter to me, the workshop participant” to jot down:

a) Three to five challenges facing the LGA procurement in their respective districts;

b) Three to five things they expected to learn from the workshop;

c) Three to five activities or actions or interventions that can be created to address the

challenges; and

d) What they envisioned the LGA procurement function to look like in three to five years given

the interventions identified.

The letters were written and collected for synthesis. A summary of the aggregate views of the

workshop participants is presented in Table 1.

Table 1: Challenges and gaps as extracted from the “Letter to me (me = the participant)”

S/N ISSUE FREQUENCY

1 Poor compliance with laws and regulations 14

2 Incomprehensible laws and regulations 13

3 Lack of / or inadequate skills 12

4 Poor Value for Money 12

5 Poor ethical practice 10

6 Poor governance attributes of accountability, transparency and ethical

behaviour 8

7 Lack of procurement skills and knowledge 8

8 Lack of legal knowledge and regulations 8

9 Poor supervision of awardees / Poor tender analysis 8

10 Lack of knowledge of market opportunity and behaviour 5

11 Poor record keeping 5

S/N ISSUE FREQUENCY

12 Poor tools and equipment 3

13 Too long and cumbersome tendering process 3

14 Inadequate number of procurement personnel 2

15 Delayed payment to service providers 2

Participants indicated in their lettersseveral other challenges that impact on procurement

performance in the LGAs, which are summarized as follows:

� Too much centralization of the procurement operations in which Higher Local Government

Authorities dominate the Lower Local Governments

� Poor linkage between the procurement planning and budget processes at the LGAs

� Rampant cheating and collusive procurement in the LGAs

� Poor procurement personnel scheme of service and poor incentive structure

� Insufficient procurement budget

� Too much political interference in the procurement processes

� A need to review and improve procurement law and regulation

� Poor understanding of the procurement law and regulations

Following the “letter-to-me” exercise, the workshop rules were discussed and participants agreed to

the following:

� Mobile phones in silent mode

� No internet connectivity during workshop sessions

� Time-keeping

After the official opening of the workshop (see next section), Mr. Frits Raijmakers (Project Co-

Coordinator) introduced the Capacity Building concepts, overview of workshop methodology and

objectives of the workshop (see chapter two).

After introducing the concepts of capacity of both organisations and individuals, capacity

assessment and capacity building strategywere defined as:

“Analysis of current capacities against desired future capacities to understand the LGAs

procurement capacity assets and needs leading to the formulation of a capacity building

strategy”

Desired Capacity

Actual Capacity

Capacity Gap

Root Causes

CB Strategy

Assumptions / Environment


The facilitator further introduced the workshop programme and presented an overview of the

workshop tools.

This was followed by an introduction to the four Pillarsof the OECD Methodology of Assessment of

National Procurement Systems (MANPS) by the Manager Research and Documentation (Eng. Mary

Swai). The pillars constitute the basis of procurement monitoring and evaluation in Tanzania by the

PPRA through Base Line Indicators (BLI), which were established in 2006, and Compliance and

Performance Indicators (CPI), which are collected on an annual basis, with the objective to provide:

� A tool to formulate programme to improve national procurement system

� A Learning and capacity development opportunity for government

� Results on the level of performance of Procuring Entities

� Results on the level of performance of country procurement system in accordance with

internationally acceptable best practices

The Baseline Indicators and CPIs largely inform decision-making and response of government to

public procurement in four strategic dimensions (pillars) of the public procurement system:

Pillar I: Legislative and Regulatory Framework

Pillar II: Institutional Framework and Management Capacity

Pillar III: Procurement Operations and Market Practices

Pillar IV: Integrity and Transparency of the Public Procurement System

An overview of the OECD procurement indicators and sub-indicators is presented in Annex 7.5.

4.2 Workshop Opening

The workshop was officially opened by Mr Jumanne Sagini, Permanent Secretary PMO-RALG, in

the presence of the Director, Local Government Division (PMO-RALG), Chief Executive Officer of

PPRA, Regional Commissioner Dodoma and Regional Administrative Secretary Dodoma region.

The Guest of Honour emphasized the following in his engaging speech:

� Importance to have a strategic plan to address weaknesses in LGA procurement

� All LGAs to comply to PPA 2004, and as amended in 2011 and its regulations, guidelines

and standards

� Importance to making good use of LGA resources to achieve Value for Money in public

procurement to deliver required services

� To address unethical practices and corruption of LGA procurement

� Use the workshop as an opportunity for capacity building in LGAs and to support achieving

the project objectives

4.3 Workshop Outputs

The following sections present the main outputs from the group sessions, plenary presentations and

discussions.For sessions B-H (see the workshop programme), the participants were divided in four

groups based on type of organisation and their roles andresponsibilities in LGA procurementeither

as Procuring Entities, External Oversight Bodies, Training Providers or Suppliers


Group 1: Representatives of Local Government Authorities (Mkuranga, Kasulu,

Kongwa and Lushoto)

Group 2: Representatives of Local Government Authorities (Kibaha, Kigoma, Muheza,

Kondoa)

Group 3: Representatives of Regions and Oversight Bodies (RAS of Tanga, Kigoma,

Dodoma and Coast, PPRA, CAG and IAG)

Group 4: Representatives of Other Institutions (Training Entities, Private Sector, ALAT)

The groups were introduced by the Facilitator to the principles and tools of root cause and gap

analysis (see Annex 7.3: Exhibit A) with the aim to systematically analyse LGA procurement by

identifying:

Based on their respective roles and responsibilities, the groups came with different challenges, root

causes, gaps and solutions, and in this way they complemented each other in the analysis of the

LGA procurement system.The detailed outputs of the group work are presented in Annex 7.4.

4.3.1 Challenges, Root Causes and Capacity Gaps(Sessions B, C, D and E)

The groups identified the following main challengesin the LGA procurement system:

� Record Keeping

� Accountability

� Incentive package for procurement staff

� Contract Management

� Establishment and facilities of Procurement Management Unit

� Understanding of procurement law by stakeholders

� Ethics and transparency in procurement system

� Preparation of procurement plan

� Language as a barrier

� Coverage of procurement legislation for LLGs

� Implementation of public procurement system

� Procurement Procedures

� Endemic cheating, theft and corruption in the procurement system in LGAs

Root causes related to the above challenges in the LGA procurement system were identified as:

� Low knowledge and skills

� LLGs not involved in the preparation of the legislation

� Decentralisation-by-Devolution which is yet to be fully realized

� Inadequate human and financial resources

� Weaknesses in follow-up and monitoring

� Poor compliance to procurement legislation and regulations

� Delays in decision making

Challenges Root Causes Gaps


� Low use of Information and communication technology (ICT)

� Unethical conduct among procurement practitioners

� Weaknesses of the procurement system

� Attitude of selfishness and greed

� Low income of staff

� Poor living conditions

� Lack of values

� Lack of ethics and integrity values

� Inadequate use of record keepers (registry officers)

� Non-adherence to procurement staff Scheme of Service

� Poor preparation of tender documents

� Budget allocation process

Related to the identified challenges and root causes the following capacity gaps were identified:

� Limited knowledge and skills

� Procurement law not translated in Swahili

� Weaknesses in the preparation of the public procurement law / LLGs not covered

� Understaffing in PMUs

� Sensitization of allocation of budget code for PMU

� Inadequate Budget and fund allocation to PMU

� Delayed procurement process

� Bureaucracy and inefficient system, sometimes deliberately

� Unsatisfactory good governance

� Lack of ethics

� Insufficient skills and knowledge in record keeping

� Sensitization employers and policy members

� Inadequate competence of suppliers, contractors and service providers

� Non-compliance with establishment of the PMUs

� Procurement act not understood by stakeholders

� Lack of ethics and transparency in the public procurement system

� Preparation of procurement plan without involvement of stakeholders

4.3.2 Proposed Actions (Session F, G and H)

Following the identification of challenges, root causes and capacity gaps, participants continued the

analysis and identified proposed actions by using mind tools (Exhibit B) and question guide B2,

which were introduced by the Facilitator. The session aimed to link:

The initial action analysis of the groups was complemented by a plenary presentation on the

findings of annual procurement monitoring (procurement audits) by PPRA, based on the system of

CPIs as used up to FY 2011/12.

Desired Situation Gaps Possible Actions

Table 2: Compliance and Performance Indicators

CPI INDICATOR

1. Appropriate establishment and composition of tender boards

2. Appropriate establishment and composition of PMUs

3. Independence of functions

4. Appropriate preparation and implementation of procurement plan

5. Complying to compulsory approvals

6. Appropriate advertisement of bid opportunities

7. Complying with publication of awards

8. Adequate time for preparation of bids

9. The use of appropriate methods of procurements

10. The use of standard tender documents

11. Proper keeping of procurement records

12. Availability of quality assurance and control systems

13. Appropriate contract implementation

The presentation gave an overview (see Annex

procurement, with the below table indicating

2: Compliance and Performance Indicators

COMPLIANCE DATA

Appropriate establishment and composition of Existence of a tender board in accordance with the requirements of the Act and Regulations

Appropriate establishment and composition of Existence of a PMU in accordance with the requirements of the Act and Regulations

Percentage of tenders in which there was no interference between individual functions

Appropriate preparation and implementation of Prepared and properly implemented annual procurement plan

Complying to compulsory approvals Percentage of tenders/contracts which received all compulsory approvals in various processes

Appropriate advertisement of bid opportunities Percentage of open bidding proceduadvertised

Complying with publication of awards Percentage of contract awards disclosed to the public

Adequate time for preparation of bids Percentage of tenders complying with the stipulated time in the Act and regulations

se of appropriate methods of Percentage of tenders using authorized methods of procurement in accordance with their limits of application

The use of standard tender documents Percentage of tenders using standard/ approved tender documents

Proper keeping of procurement records Percentage of tenders with complete records

Availability of quality assurance and control Percentage of tenders with adequate quality assurance and control systems

tation Percentage of contracts which have been implemented as per the terms of contract

overview (see Annex 7.5) of compliance and performance of LGA

, with the below table indicating the results for FY 2012/13:

Existence of a tender board in accordance with the requirements of the Act and Regulations

ce with the requirements of the Act and Regulations

Percentage of tenders in which there was no interference between individual functions

y implemented annual

Percentage of tenders/contracts which received all compulsory approvals in various processes

Percentage of open bidding procedures publicly

Percentage of contract awards disclosed to the

Percentage of tenders complying with the stipulated

Percentage of tenders using authorized methods of procurement in accordance with their

Percentage of tenders using standard/ approved

Percentage of tenders with complete records

Percentage of tenders with adequate quality

Percentage of contracts which have been implemented as per the terms of contract

of compliance and performance of LGA


The following LGA procurement areas with persistent capacity gaps were recommended to be

addressed with high priority in the CB strategy:

Table 3: Low Capacity Areas as per Compliance and Performance Indicators

CPI INDICATOR CHALLENGES / GAPS

2 Establishment and composition of PMU in LGAs

� PMU established as a committee rather than a fully-fledged and staffed unit

� Limited knowledge on application of PPA and Regulations

� Staff of PMU lack the necessary qualifications � Inadequate office space and working tools

4 Appropriate preparation and implementation of procurement plan

� Not using appropriate APP template � Incorrect tender numbering and referencing � APP hardly followed during implementation � TB meetings not properly planned � Requirements not properly aggregated � Tender processing times not properly allocated

7 Complying with publication of awards

� Failure to disclose to the public (newspapers, notice boards) the awarded contracts

� Sometimes unsuccessful bidders are not notified � Failure to notify PPRA

11 Proper keeping of procurement records

� Lack of a comprehensive list of records for all tenders managed by PMU

� Tender records had not been systematically filed, but scattered in many different files, audit trail made difficult

� Failure to maintain a register of all awarded contracts

12 Availability of quality assurance and control systems

� Inspection and acceptance committees not appointed

� No quality assurance plan for works, consultancy and non-consultancy services

� Lack of supervision of consultancy services

13 Appropriate contract implementation

� Interim and contractual certificates not issued properly

� Variation orders issued without following proper procedures

� Extension of time granted without justifiable reasons � Most of the payments to service providers not made

on time � Payments for work not undertaken or substandard

work

The presentation also included an overview of Value for Money scores for construction projects, and

identfied weaknesses and capacity gaps. The audits give a score for Value for Money in the

procurement cycle starting with planning, followed by procurement, contract administration and the

end product i.e. quality of works. The VfM audits are integrated in the annual procurement audits of

PPRA.


Table 4: Low Capacity Areas as per Procurement Value for Money Audits

PHASE VFM SCORES

MAIN WEAKNESSES AND GAPS ROADS BUILDINGS

Planning 74 70 � Poor packaging of works contract � Inadequate, incomplete and ambiguous designs � Unrealistic pre-tender estimates � inaccurate computation of quantities in the bills of quantities � Inadequate or lack of assessment of site locations � Unnecessary variations to the works increasing projects costs � Unrealistic contract period

Procurement 74 70 � Inappropriate procurement planning

� Delays in implementing PE’s plans

� Ad-hoc procurements

� Use of inappropriate procurement methods

� Excessive use of direct contracting/single source procurement

� Improperly prepared tender and contract documents

Contract

Administration

61 54 � Performance securities not submitted � No leverage in cases where contractors failed to perform � Site possessions were not given: extension of time for most of

the contracts � Delayed payments of contractors and consultants caused by

erratic cash flows � Weak monitoring of contracts: lack of project progress reports,

site management meetings project completion reports � Non-enforcement of liquidated damages � Issuing variation orders without following appropriate

procedures � Issuing extension of time without justifiable reasons and without

following appropriate procedures � Incomplete and inadequately prepared payment certificates � Poor records keeping � Variations orders not sanctioned by the appropriate Tender

Boards � Advance payments without guarantee although it was stipulated

in the contracts � Non-enforcement of performance securities and insurance

covers although they were stipulated in the contracts � Site management meetings were not held � Delays in contracts execution resulting in huge cost overrun � Final inspection reports prior to issuing practical completion

reports were not done to prepare a snag list of the works to be rectified during Defect Liability Period;

� Inadequate supervision of the consultant contracts

Quality of

Works

73 72 � Lack of/or inadequate quality control system in checking and approving the designs, drawings, specifications, bills of quantities, payment certificates, pre-tender estimates , etc; and

� Weak / Inadequate supervision � Lack of quality control tools and equipment leading to failure to

test materials and completed works � Vandalism of the road furniture i.e. road signs; � Lack of honesty/integrity among the supervising engineers and

technicians � Poor quality works observed, but most of them had already

been certified and paid

Total VfM 71 66


The last part of the presentation gave an overview of a new set of Procurement and Compliance

indicators, which are introduced in the FY 2012/13, and put more weight on weak performance

areas in public procurement, notably contract administration and quality assurance.

Following this presentation, the four groups prepared a final analysis and presented desired

outcomes and possible actions by using the fishbone diagram analysis and presentation tool (see

Annex 7.3: Exhibit C).

Table 5: Synthesis of Group Outputs

DIMENSION DESIRED OUTCOME POSSIBLE ACTIONS

Institutional, Equipment and Technology Incentives

- Institutionalization of LGA procurement Scheme of Service

- Allocation of vote and budget to PMU

- Adequate use of ICT in LGA procurement

� PMO-RALG to employ enough, adequate, qualified, competent and capable procurement staff

� Training of procurement staff (CPE) and retention of trained staff

� Allot sub-vote for PMU budget and provide adequate financial resources

� Provide PMUs with working tools, computers, offices etc.

� Involve PMU in budgeting budget � M&E implementation of PMU budget � Provide working facilities specifically in procurement

unit � Establish PMU registry by 2014 � Equip PMU registry with adequate facilities � Conduct performance audit quarterly in PMU � Issue circulars on PMU incentive scheme � M&E of implementation of incentive scheme circular for

PMU staff in LGAs annually � The system should follow new technology (e-

procurement)

Policies and Regulations

- Transparent and user friendly procurement policy and regulations, which can be understood by stakeholders at all levels and in Kiswahili language

- Law related to procurement for lower local governments

- Compliance with procurement law and regulations

� Translate the procurement act and regulations into Kiswahili

� Amend the legislation (Identify and remove unnecessary procedures)

� Disseminate the translated laws and regulations and distribute copies

� Training should be done free to all stakeholders � Enforcement of the (translated) law and regulations � Disciplinary actions to violators of PPA and understood

by all stakeholders � Procurement act related to LGAs and involve

stakeholders in the process (participatory) � Make all LGAs procurement regulations available � Amend Procurement Legislation and Regulations to

cover LLGs � Dissemination of amended Legislation and Regulations � Enforce amended legislations and Regulations

Supportive Oversight and Accountability Mechanisms

- Compliance and enforcement of procurement law and regulations

� Adhere to regulations related to ethics � Better Incentive schemes � Disciplinary actions to violators of the law and

regulation � Training on ethics to all stakeholders � Capacitate and enforcement of procurement laws and

regulations � Take strict disciplinary actions against those culpable of

deliberate delays


DIMENSION DESIRED OUTCOME POSSIBLE ACTIONS

Human Resources/Skills mix/levels

- Enhance capability of preparation of tender documents

� Train suppliers, contractors and service providers annually

� Issue certificates of appreciation to suppliers, contractors and service providers for good performance annually

� Enforce contract rules & regulations to suppliers, contractors and service providers timely

� Distribute PPA to contractors, suppliers and service providers regularly

Education, Training, Coaching

- Well trained (procurement) personnel in LGAs

� Train at least two staff from PMU and registry officers in procurement record keeping annually

� Train key players in procurement: o Accounting Officers o CTB members o PMU staff o TEC Personnel o HoDs o Other stakeholders

Leadership and Governance

- Capacity building on ethics in LGAs

� Involve all stakeholders in the preparation of the procurement plan

� Training on preparation of procurement plan � Define and address corruption, fraud, conflict of interest

and unethical behaviour � Procurement process shortened � Good procurement M& E framework in place and

functioning � Sensitize, introduce and use of whistle blowers � Punish the guilty mercilessly including the possibility of

loss of office � Capacity building of District Integrity Committees � Sensitize suppliers, CSOs to be socially accountable

and to refrain from unethical acts, collusion, etc � Reward good performers handsomely � Training on good governance � Sensitization on code of conduct

4.3.3 Thematic Analysis of Strategic LGA Procurement Areas (Sessions I, J and K)

Presentations were made in three strategic LGA procurement capacity areas, which were identified

and prioritised following the project Base Line Study and desk review of procurement M&E:

� Quality Assurance of LGA Procurement: Audits

� Quality Assurance of LGA Procurement: (Procurement) Management Information Systems

� Lower Local Government Procurement Capacity and LGA Procurement Training Strategy

The papers were prepared and presented by panels composed of staff from the following

institutions:

� PPRA

� PMO-RALG

� NAO (CAG)

� Hombolo LGTI

� BTC


Following the plenary presentation, the participants were divided in three functional groups and

tasked to review the presentation by using Question Guide J (see Annex 7.3). The following

sections present the summary of the PPt presentations and outcome of group work.

4.3.4 Quality Assurance of LG Procurement – Audits

The paper was presented by Mr. Titus Saideya, Assistant Auditor General of the National Audit

Office (NAO). The aim of the presentation was to:

� Have an overview of the Procurement Audit capacity area

� Have a common understanding of the root causes of low capacity in this area

� Discuss the regulations and standards applicable in the capacity area

� Propose competence and skills set required to address the capacity gap

The presentation showed that there are different systems in use for external and internal quality

control of LGA procurement. Weaknesses and gaps in the various audit regimes need to be

addressed through adequate sequencing and adherence to time frames of the audits at the risk of

not achieving value for money in public procurement.

PPRA Procurement Audits:

� System: Procurement, Contract and Performance audits based on CPIs and VfM indicators

� Weights of individual indicators and scoring of PEs

� PEs not understanding the attributes of each indicator: not adequately disseminated, trained

wrong people, language, resistance

� Availability of records/PE cooperation: lack of harmonization of procedures&legal

requirements, lack of integrity, fear of the unknown

� Report formats issued, but yet quality of reports questionable: negligence, dishonesty

� Funding for audits vs. required scope and frequency

� Quality of consultancy used: necessitates counterpartstaff, inadequate skills and

competences in the market

� Procurement implementation reports not submitted as required: cumbersome, online

reporting tool?, change of staff already trained

CAG Audits:

� System: Financial audit including procurement audit; Compliance audit; Internal control; VFM

audit (not annual but based on standards – objective and impact); Special audit based on

TOR. Standards used: ISSAI;ISA IPSAS; IFRS & IAS

� Auditors not understanding the PP law, regulations, procedure: background knowledge and

skills, inadequate dissemination

� Not covering LLG (scope): NAO has limited number of auditors, currently 800, other

resources are limited

� Ambiguity in legal framework and practice: CAG vs PMO-RALG

� Appointing external auditor for LLG: Local Government Financial Memorandum (LGFM) not

reviewed and harmonized with other recent laws; increased demand

PMO-RALG Assessments:

� System: Assessment has procurement as one of its area of coverage; annually countrywide.

CDG and CBG, LG contribution to the Grant


� All PMO-RALG divisions are involved: assessing the country in two months using its own

staff: 2-3 days per LGA not adequate; shortage of staff and other resources

� Expertise of staff involved in the areas of assessment inadequate: not adequately

knowledgeable and skilled in procurement issues

� Limited to HLG as no information can be obtained at LLG level: capacity to prepare, avail

information

� Lack of clarity in legal frameworks with respect to LLG: multiplicity of legal frameworks

RAS Monitoring:

� System: Assistant Administrative Secretary (AAS) responsible for Local Government and IA

responsible for LG assess the LGAs; Council Internal Auditor – the only QA for LLG; VEO

relationship with LLG Council Chair and Councillor (Chair of Ward Development Committee);

VEO and WEO employed by HLG

� Low capacity to handle tasks: knowledge and skills

� Different perceptions on issues of LGA autonomy, extra-jurisdiction with respect to roles,

responsibilities and accountability: Legal framework, attitude and mind-set

HLG Systems:

� System: Based on LG related laws and PMO-RALG guidelines; Council Committees,

Internal Audit procedures

� Multiple procedures: multiple sources, channels of funding, multiple accounts

� Lack of Human Resource at LLGA: poor working conditions, hardships, low pay

� Perceived lack of autonomy: capacity, skills, competences, lack of understanding

� Capacity of internal audit of HLGA on procurement issues relating to LLGA: knowledge,

skills, independence

� Capacity of LLGA to use tools developed for procurement at their level: level of education,

user friendliness of the tools

The desired outcomesin this area - while recognising the importance to identify ‘Enablers’ and

‘Barriers’ and taking into account the various dimensions of accountability –were proposed as

follows:

1) To improve procurement performance and compliance:

o Review quality assurance processes and procedures &methodology for LGA

procurement (PPRA & PMO-RALG)

o Develop new Quality Assurance tools (PPRA,NAO & PMO-RALG)

o Disseminate Quality Assurance tools (HLGTI &LGA)

o Sensitize LG procurement Stakeholders on the importance of Quality Assurance (PPRA

& PMO-RALG)

o Explore the potential of single audit concept (PPRA,NAO & PPRA)

2) To improve transparency and accountability:

o Engaged Civil society and media in advocacy and monitoring of LG procurement (PPRA)

o Develop tools for record keeping and reporting at LLG (PPRA,PMO-RALG)

o Disseminate the tools for record keeping and reporting at LLG

3) Improve effectiveness of procurement quality assurance:

o Develop tools for quality assurance practitioners (PPRA,NAO,HLGTI &PMO-RALG)


o Trained quality assurance practitioners on quality assurance tool (HLGTI)

o Monitoring and evaluation of quality assurance practitioners (PMO-RALG)

o Stakeholders’ opinion/ survey on quality assurance tools (PPRA & PMO-RALG)

o Develop appropriate structures for procurement governance at LLG level (PPRA &

PMO-RALG)

4) Harmonized legal and institutional frameworks:

o Review legal framework to identify areas, gaps and overlap (PPRA,NAO &PMO-RALG)

o Review institutional setup in LG procurement (PPRA & PMO-RALG)

o Conduct stakeholders workshop (PMO-RALG)

The participants were in agreement with the analysis, desired outcomes and proposed actions with

additional proposals to be spearheaded by PPRA with contributions by PMO-RALG, NAO, IA, RS,

PCCB and HLGTI including:

� Address the situation with many oversight bodies on LGA procurement quality assurance

with different performance indicators

� Important to have common standards in procurement audits

� Need for an oversight body for supervising the performance indicators

� There should be an oversight body to monitor the performance indicators, regulations to

ensure audit quality

4.3.5 Quality Assurance of LG Procurement – Procurement MIS

The paper was presented by Mr. Bernard Ntelya, Manager Systems Support & Administration at

PPRA. The presentation 1) analysed the identified gaps in the tools for monitoring and quality

assurance of LGA procurement in particular PlanRep, Epicor and PMIS and 2) made proposals on

way forward on how best to interface these tools in order to strengthen LGA procurement

monitoring.

� PlanRep: The local government Planning and Reporting Database (e.g. PlanRep2 and

PlanRep3) is a database designed to assist local authorities in planning, budgeting,

projecting revenue from all sources, and tracking funds received, physical implementation

and expenditure

� EPICOR: is a computerized Financial Management Information System (FMIS) that has

been implemented in the country since 1999/2000 in various versions and stages. The

current version Epicor 9.05 is operating in all councils under centralized web-based

infrastructure, where the main server is installed at PMORALG and all councils will access

the system centrally

� PPRA-MIS: a web based application, menu driven developed for the computerization of

Checking and Monitoring of procurement in the public sector (procuring entities) by PPRA.

PMIS is used in collecting, storing and sharing of procurement information between the

Authority and all stakeholders of public procurement. The system rolling out exercise started

and is progressing to all Government Procuring Entities

Several issues were identified in the (Procurement) MIS of Local Governments including:


� No systematic linkages between the systems: PlanRep, Epicor, PMIS

� Knowledge gap: inadequate IT skills; some users such as HoD, PMU, Accountants, IA do not

have required training in Epicor, PlanRep, PMIS

� DIAs rely on printed reports from Finance.

� Infrastructure: inadequate equipment, Internet Link to some LGAs

� Ownership of source codes and licencing barriers

� Legislation integration (PFA and PPA)

� Connectivity (bandwidth and speed)

The root causes for low capacity in the Procurement MIS were identified as follows:

� Different developers of systems

� Different purpose of the systems

� Different set up and customization

� Different governing laws (PFA 2001, PPA 2004) which are not integrated

� PMIS is based on procurement process while Epicor is Financial based.

� Procurement processes are not included in Financial Management System.

� Inadequate equipment in some of the LGA

� No clear link between LGA and LLGA in sharing of procurement information

The paper proposed the desired outcome as:

� Harmonized MIS and reports.

� Improved skills on use of systems

� Improved working tools to users of system (computers and internet link)

Strategic interventions in this field involving PMO-RALG, PPRA, MoF, E-government agency and

software developers were identified, including:

� Main actors meeting to discuss harmonization and integration of systems

� Stakeholder meeting to discuss improvement of flow of information from LLGA

� Proper procurement planning that shows clearly procurements for LGAand LLGA

� Remove duplication of effort in the usage of systems (Epicor, PlanRep and PMIS) by

interfacing

� Implement procurement system integration (Epicor, Plan Rep, PMIS)

� Training of DIA and PMU on usage of systems

� Equipping users with adequate working tools (computers and internet link

� Enforcement mechanisms for compliance

The group dealing with this area largely agreed with the analysis and added the following proposals:

� Root causes: include inadequate ICT skills and knowledge, user-friendly systems, different

governing laws (PFA 2001, PPA 2004), which are not integrated, and insufficient information

and record keeping

� Desired outcome: include improved productivity of information systems (MIS)

� Key interventions: implement Procurement Systems Integration (PlanRep, Epicor, PMIS)


4.3.6 Lower Local Government Procurement Capacity and Training Strategy

The paper was presented by Mr. Johnson John, Principal Legal Officer in PMO-RALG and focused

on challenges, root causes and proposed actions to address capacity gaps leading to inadequate

procurement management practices in Lower Local Governments.

Institutional and Regulatory Issues:

� Low compliance to PPA and poor use of basic procurement principles at LLG level

� No clear division of roles & responsibilities between various actors in LLG procurement

� Many different systems used by LLGs in procurement process (selection, approvals,

evaluation, awards, accountability, etc)

� Absence of standard procurement implementation tools (contracts, tender documents)

� Multiple procurement procedures and processes depending on sector, type of project, and

financier

� LGA Financial Memorandum: not fully harmonized with PPA; LLGs adequately covered

Governance Issues:

� Cases of low transparency, conflicts, inadequate accountability related to procurement in

LLGs

� Roles and responsibilities in governance in LLG procurement not well-defined i.e. oversight;

accountability, delegation levels, quality assurance in line with recommended practices

� Civil Society Organisations in regions and districts: low public procurement knowledge, often

lack of interest

Procurement Management Issues:

� Scope is wide, there are around 15,000 LLGA (villages; mitaa)

� Inadequate human resource with required skills to implement LLG procurement compliant to

PPA

� Many VEOs have low academic qualifications (> 60% Std 7)

� Recruitment new VEOs by PO-PSM with qualifications: Form IV + basic certificate in LG

administration

� Members of Village Councils elected every 5 years with mixed education background

� Low awareness in LLGs on thresholds, procurement methods and procurement principles

(publicity, competition, evaluation, awards, implementation, etc)

� Procurement to service units and committees: adequately delegated and formalised?

� Procurement of sector Grants and service units not well captured in procurement reports

� Procurement competences of actors not well described: VEO, Village Council, committees

� VEO is multi-tasked: able to do all work efficiently?

� Not all project committees, Community Management Committees adequately prepared and

often low understanding of drawing, specifications and M&E tools

� HLG level: work in progress with increased level of qualifications of (new) LGA procurement

staff; many procurement graduates on the market; on-going professionalization (required

registration with PSPTB, Continuous Professional Development, etc)

� LGAs cover many sectors (agriculture, education, health, works, water, etc) and have

several different procurement chains which require specific skills (unit vis-à-vis committee)

� Weak LGA procurement areas include Preparation of Annual Procurement Plan, Contract

Management, Procurement record keeping, Publication of awards, Low use of PMIS, and


aggregation of common goods and supplies (reluctance and low understanding to use of

call-off orders for Common Use Items & Services by using Framework Contracts

Market issues:

� Local fundis: low understanding of drawings, specifications, material requirements

� Often long distances to markets and suppliers

� Low understanding of providers of procurement requirements

� Inadequate capacity / ability to analyse the market

Education, training and skills:

� Enhancing procurement competences and skills has a low priority in the LGAs

� Training needs are mainly derived from OPRAS and Departments, but procurement is not

often captured, which is partly related to the current situation in which PMUs have no sub-

vote (yet) and therefore a challenge to get procurement training on the agenda, let alone

funding

� No structured approach to training for VEOs, Village Councils and Service Units in

procurement

� Inadequate funding of LGA Capacity Building Plans

� Staff put higher value to individual training needs and less on capacity development

objectives of LGAs as organisation

� RAS/LGAMSS is taking up new role in follow-up, monitoring and advising LGAs, but have

inadequate capacity in procurement

� HLGTI provides pre/in-service certificate and diploma courses in LG Administration, Finance

& Accounting for VEOs & WEOs, which include procurement as subject, but 60% of VEOS

having STD VII are not eligible for this training

� PPRA provides on request procurement tailor-made training, which are funded by the

Procuring Entity i.e. LGAs, but coverage is still low and mainly used as response to

procurement audit results

The paper proposes the following strategic intervention framework:

Table 6: Strategic Intervention Framework LLG Capacity Building

Strategic Objective Strategic Interventions

Strengthened

procurement capacity

in LLGs

� Procurement Guidelines for LLGs developed & disseminated � Competences and skills of LLG procurement actors enhanced � Professionalization of the LGA procurement function strengthened � Procurement management tools and systems introduced and applied in LLGs � LGA procurement training strategy developed and operational

Standardized and

harmonized LLG

procurement

guidelines developed

and introduced

� Set the regulatory & institutional framework for procurement in LLGs (roles &responsibilities in procurement process i.e. preparation, invitation, receiving, evaluation, approvals, award, contract management)

� Support achieving increased compliance to PPA and value for money � Set framework for addressing legal issues and conflicts by defining roles &

responsibilities in oversight, accountability, delegation and Quality Assurance � Development of a customized LLG procurement operational manual � Importance of simple language (and use of Swahili) commensurate with the

target group � Continued collaboration required between PPRA and PMO-RALG in all

procurement matters



Competence and

skills of actors with

main responsibilities

in LLG procurement

increased

� Describe procurement competences and skills of VEOs, members VCs, Service Unit Committees and Project Committees

� Update Scheme of Service of VEOs and ‘job descriptions’ of members of committees

� Reflect well the differences in training needs of Village, Mtaa and District Councils

� Ensure procurement skills are adequately covered in the basic LG Administration certificate courses (in-service; new LLG staff)

� Existing VEOs: see training strategy

Capacitated and

professional

procurement cadre in

LGAs

� Clarify PMU structure: define PMU establishment (type of LGA; volume of procurement); adequate remuneration levels (to retain staff); use of PMU sub-vote (502E); responsibilities PMU for procurement at LLG and service unit level

� Define competences of procurement professionals and technicians (new areas: e-procurement, ICT, end-user satisfaction, research, legal; update Scheme of Service

� Clarify the position of procurement/supplies technicians in other LGA departments (stores officers, hospitals, etc)

� Update LG Financial Memorandum in areas needed

Adequate

procurement systems

and tools in place

and used in LLGs

� Develop and introduce a simplified, standard LLG procurement operational manual as per guideline

� Develop tools and systems for procurement (bid documents incl. contracts, evaluation guidelines, receiving/issuing of materials, etc), contract management, record keeping, quality assurance and reporting (also linked to HLG MIS: APP, EPICOR, PlanRep)

� Consider the same for Service Units procurement � Facilitate availability of adequate equipment and working tools in LLGs

Adequate

procurement systems

and tools in place

and used in LGAs

� Development and introduction of LGA procurement manual (guide) � Development and introduction of manual for own-source revenue collection

services � Improve knowledge and skills in preparation, updating and implementing of

Annual Procurement Plan � Improve systems, classification, tools for procurement & contracts management

and records keeping � Follow-up support to use of PMIS in LGAs including connectivity of PMU to LGA

MIS & ICT � Improve quality, completeness and credibility of LGA procurement reports

LGA Procurement

Training Strategy

� Systematically and effectively identify and address LGA procurement training needs and monitor and evaluate impact on performance

� LGAs take their responsibility to ensure adequate procurement skills officials (LLG; HLG) and Council members as identified and/or recommended in M&E and audit reports

� Formulation of LGA specific procurement skills development plans based on Training Needs Assessments

� Establish and capacitate District Training Teams for ToT/ToC at all levels � District Training Teams to train ward ToT (WEO, CDO) for training/coaching of

VEOs & Village Councils members to 1) change mind-sets & attitudes, and 2) increasing knowledge and practical procurement skills

� Initial training to focus on weak procurement capacity areas as identified in procurement audits, DIA and CAG reports (Record keeping, Contract administration, Quality assurance, Preparation and implementation of procurement plans, Governance and reducing procurement risks, Leadership skills

� Tailor-made short courses for VEOs with Std VII in procurement and other related areas (accounts, management, records keeping) based on demand and needs

� Capacitate RAS/LGAMSS to coach, advice, follow-up LGAs in procurement (assuming there will be a procurement expert in LGAMSS)



� Capacitate PPRA Zonal Offices to provide training and advice to procurement staff from regions and LGAs

� Review, updating and dissemination procurement manuals � Review and/or development of quality LGA procurement training m Introduce

adequate M&E of procurement training to monitor use of acquired skills and evaluate impact

� Ensure that Training Providers (QTPs; Individual Trainers) are fully conversant with training methodology & materials

� Make procurement guides (operational manuals) and training manuals available through ICT and e-learning

� Design an adequate coaching and mentoring concept that can work within LGAs, between LGAs, and between RAS/LGAMSS vis-à-vis LGAs

� Introduce action research to PMUs in identified weak procurement areas as a learning model for organisational development

The group dealing with this area largely agreed with the analysis and made the following additional

proposals:

� Capacity Gap: include inadequate procurement information at LLG level

� Root causes: include Insufficient funds and low prioritization for procurement infrastructure

� Desired outcome: improved procurement management and practices in LLGs

� Key interventions: include employment of qualified staff and effective dissemination of

information

� Driver: Accounting Officer with contributors PMO-RALG, PPRA, Trainers, RS, CSOs, Donors

and ALAT

� Other comments:

o Reflect the current institutional setting of the RAS Office which has three Assistant

Administrative Secretaries (Local Government; Planning; and Education), whereby the

AAS Local Government is assisted by the Auditor (LG) and Finance Management Officer

(LG)

o Incentives following procurement audits: include rewarding the good performers (LGAs)

and mediocre performers could be ‘shamed’

o Enhance contractor monitoring and recognise good performing contractors annually

4.3.7 Logical Framework (sessions L, M and N)

The Logical Framework of the project (see Annex 7.5) was presented by Mr. Frits Raijmakers,

Project Co-Coordinator. The presentation included overall objective (vision), specific objective

(mission), results, key interventions and monitoring indicators.In the plenary discussions on the

Logical Framework the following issues were raised:

� Vision: indicate better the strategies of the project to have corruption-free procurement;

reference was made to the four OECD pillars and it was suggested to include integrity

indicators better in the monitoring framework

� Indicators: ICT use, publicity and advertising of LGA tenders and awards to be included

� Assumptions and risks: not included in the presentation, but available and part of the Log

Frame; they tally with the outcome of the workshop and will provided in CB strategy


� Key activities:

o IAG is preparing a procurement audit manual for use by DIAs and undertakes training of

DIAs i.e. assumption for the project, but part of CB strategy

o Publicity and advertising requirements to be duly covered in the operational procurement

manuals and tools

o PPRA undertakes various other initiatives for information dissemination funder by other

sources i.e. assumption for the project, but part of CB strategy

o Need to explain better the importance and reasons for gender sensitive action research

o Capacitation of PMUs: clearly define what this means, who has responsibility, funding

sources and relate to critical procurement areas (i.e. pre-award, award, post award)

o Harmonization of audits: this does not remove the mandate and specific roles of PPRA,

CAG and DIA (IAG), but reliability and resource efficiency of audits need to be taken into

account, as well as purpose, timing and sequence

o DIA report on procurement: does PPRA need a copy (currently not foreseen)of regular

and/or specific IA assignments?

o Action research is a promising approach, but this will need more clarification on

methodology, duration and process

o The issue of language (Swahili) to be indicated better

o This year’s budget of RAS is already passed, so resources for procurement oversight,

audits and coaching to be part of budget FY 2014/15

o Review the place of ‘Improved Outreach Capacity of PPRA’ in Result 2 or in Result 4

o The RAS is included, but under AAS/LGAMSS

o Has PMU of RAS a role in the project? PPRA has preference for a procurement expert in

the LGAMSS and collaboration between the PPRA Zonal Offices and LGAMSS

o Important to include the role of the Legal Officer (and capacity)

In the synthesizing exercise to review the final outcome of group work in relation to the intervention

logic it was observed that many challenges, root causes, capacity gaps and proposed actions are

covered by the project intervention. However, some interventions need to be integrated in the final

LGA Procurement CB strategy. The strategic interventions and performance indicators of the project

Logical Framework are summarised in Table 7.


Table 7: Strategic Interventions and Performance Indicators as per EPC-LGAP Logical Framework

STRATEGY DESCRIPTION MEASURED BY:

Overall Objective (Vision)

Ensuring systems and structures of governance uphold the rule of law and are democratic, effective, accountable, predictable, transparent, inclusive and corruption free at all levels

Specific Objective (Mission)

Procurement capacity at local government level sustainably enhanced

Increased Compliance and Value for Money in LGA Procurement

LGA procurement performance strengthened

� Review, update and introduction of LLG procurement guideline

� Competences and skills-levels of LGA procurement professionals and practitioners developed and applied in training curricula

� Development of LGA procurement skills-development plans � Capacitation of PMUs in critical procurement areas � Development and refinement of LGA procurement manuals

and guides � Dissemination updated procurement guides and manuals to

LGAs - RAS/LGAMS � Establishment of procurement Training Teams (ToT/ToC) for

training and coaching at HLG and LLG levels � Support to LGA procurement training in identified areas � Development of higher skills level professional procurement

courses

� Competences and skills-levels of LGA procurement professionals and practitioners developed and applied in training curricula

� LGA Procurement capacity defined, PMU established and capacitated

� HLGA and LLGA procurement guides & Manuals prepared, updated, disseminated and used in trainings

� Procurement skills development plans defined � Procurement Training Teams established, ToT/ToC trained and

functional in selected LGAs � Procurement record keeping at HLG and LLG levels improved

in selected LGAs � Procurement planning, implementation and reporting improved

in selected LGAs � QTP list for procurement training updated and QTPs

conversant with training materials

Systems for monitoring and quality assurance LGA procurement strengthened

� Harmonizing systems and indicators for monitoring LGA procurement compliance & performance

� Strengthening capacity of Regional Secretariat to provide oversight, monitoring, coaching and follow-up support to LGAs on procurement

� Support for customization and interfacing of Procurement MIS � Support for training of District Internal Auditors in procurement

audits and quality assurance

� Concurrence DIA reports on LGA procurement and contract management/implementation with CAG and PPRA audits increased

� Use of customized and interfaced Procurement MIS in selected LGAs increased

� Procurement monitoring of PPRA, CAG and PMO-RALG increasingly based on similar agreed indicators

� Concurrence PMO-RALG procurement monitoring reports with PPRA procurement audits increased

� Adequate follow-up, coaching and advice by RAS/LGAMS to procurement monitoring provide in selected LGAs

� Adequate action to weak areas by selected LGAs as agreed in procurement audit follow-up


STRATEGY DESCRIPTION MEASURED BY:

Community members better informed and able to monitor Local Government procurement performance

� Providing guidance and materials to CSOs to increasing skills in tracking, analysing and reporting on LGA procurement

� Providing guidance and materials to media (radio, TV, local newspapers) to increasing skills in tracking, analysing and reporting on LGA procurement

� PPRA engages with Local Authorities Accounts Committee to increase skills in LGA procurement issues, compliance and follow-up

� Community awareness on LGA procurement issues in selected LGAs increased

� Ability of CSOs to monitor LGA procurement in selected districts and regions increased

� Media coverage of LGA procurement issues in selected regions and LGAs increased

� Skills of LAAC and PPRA on LGA procurement issues, compliance and follow-up increased

Capacity to provide long-term support to improved LGA procurement performance strengthened

� Formulation and monitoring of LGA Procurement Capacity Building Strategy

� Strengthening PPRA outreach capacity to LGAs (zonal offices)

� Increasing appropriateness and coverage of LGA procurement audits by PPRA, DIA and CAG

� Provision of Technical Assistance � Strengthening quality assurance and coordination of LGA

procurement training � Engaging all stakeholders in dialogue on how to improve LGA

procurement performance

� Outreach capacity of PPRA and RAS/LGAMS to LGAs increased in procurement matters

� Coverage and appropriateness of LGA procurement audits increased in selected LGAs

� Capacity of DIA and CAG to assure quality of procurement audits increased

� Policy dialogue on LGA procurement strengthened � All stakeholders increasingly engaged in dialogue on how to

improve LGA procurement performance � Quality assurance and coordination of LGA procurement

training improved

Action research on LGA procurement practices, incentives and organizational structures conducted

� Conducting action research (gender sensitive) on LGA procurement practices, incentives and organizational structures

� Inform program design for follow-up, dialogue, recommendations on policy reform

� Assessing methodology, results and impact � Establish and maintain LGA procurement capacity database

� Action research findings and recommendations reflected in project design and reviews

� Policy recommendations based on (gender sensitive) action research prepared, targeted and communicated

� LGA procurement capacity data base established and maintained


4.4 Emerging Issues

During the workshop several emerging issues were raised in relation to the public procurement

system in Tanzania and its application in the Local Governments. Several of the issues are

integrated in the project Logical Framework whereas others will need to be included in proposed

LGA procurement capacity building strategy.

4.4.1 Legislative and Regulatory Framework

a) There is need to finalise the regulations of PPA 2011 and required updates of

procurement guides, tender documents, templates and dissemination to stakeholders;

b) There is need to review and harmonize the LG Financial Memorandum with the PPA

2004 and as amended in2011;

c) There is need to develop, approve and disseminate the procurement guideline for

Lower Local Governments;

d) Procurement operational manuals for LGAs and LLGs need to be developed, approved

and disseminated; and

e) Need to prepare an operational manual for procurement of LGArevenue collection

services.

4.4.2 Institutional Framework and Management Capacity

a) To strengthen capacity, systems and tools to prepare and implement the LGA Annual

Procurement Plan (APP) with involvement of all LGA departments and levels;

b) The APP needs to be interfaced with IFMIS and the national Procurement Management

Information System (PMIS)for credible procurement reporting and increased productivity

of the systems;

c) Need for systematic completion reports for certification of budget execution,

reconciliation of deliveries, controls and democratic oversight (Councils; Assemblies);

d) MoF to ensure timely and reliable fund releases to LGAs, which are published through

press and websites;

e) LGAs to provide timely and accurate procurement information to the PPRA (tender/RfP

invitations, awards) for dissemination and information purposes and maintaining

adequate procurement statistics;

f) Importance to finalise the LGA Procurement CB strategy to build procurement capacity

in the public and private sector; and

g) Need to strengthen internal quality assurance of LGA procurement in particular Internal

Audits, contract administration and supervision and harmonizing to the extent possible

external and internal audit systems.

4.4.3 Procurement Operations and Market Practices

a) Further professionalization of the LGA procurement function by duly recognising the

PMUs in the LGA organisation (vote, budget, training), describing procurement

competences and skills, updating Scheme of Service of PMUs and job descriptions of

LGA staff with procurement tasks, and adequate procurement staffing commensurate

with volume spent and complexity of LGA as organisation (sectors, levels);


b) Need of systematic reach-out to private sector operators and communities by targeted

information dissemination and training (contracts, use of tender documents, standards),

contractor monitoring, recognition of good performers, etcetera; and

c) LLGs are not recognised as Procuring Entities and there is need for adequate

provisions for delegation of authority to Lower Local Governments and Wards covering

management, oversight, evaluations, approvals and administrative/financial

accountability aspects.

4.4.4 Integrity and Transparency of the Procurement System

a) Need of simplified versions of procurement guides for wider distribution to Councils and

stakeholders;

b) Need of LGAs to provide required procurement information to PPRA for dissemination

to wider public through ICT and other media;

c) Need for more information at LLG and community level on LGA procurement;

d) Continued efforts to make the procurement audit and follow-up system more effectiveby

better coordination of external oversight bodies at all levels (CAG, IAG, RAS, PPRA);

e) Integrate integrity and requirements of ethical behaviour in LGA procurement in all

dissemination and training programmes;

f) Strengthening the scope and effectiveness of internal audits in LGAs; and

g) Enforcement of action to follow-up of procurement audits including clear regime of

sanctions and recovery of losses.

4.5 Project Launch

During the workshop the project was officially launched by the Honourable Minister Responsible for

Local Government, Ms Hawa Ghasia and the Ambassador of the Kingdom of Belgium, Mr.

Koenraad Adam.

The Ambassador in his speech emphasized:

� The partnership between Belgium with the Public Procurement Regulatory Authority with

the Prime Minister’s Office Regional administration and Local Government and with

Hombolo Local Government Training Institute to upgrade the capacity in a selected number

of LGAs to adhere to the strictest possible procurement proceduresin order to making a

difference on the ground and to address systemic issues like procurement capacity at local

level

� The importance to do better at local level with the ultimate objective to improve the service

deliveryto the population at large, especially in the countryside, which has not yet met the

standards of governmentas demonstrated by statistics that show that the high growth

figures have not yet impacted sufficiently in bringing down poverty

� Deficient performance, which can be tracked down to an inadequate implementation or

monitoring of procurement procedures; this is the consequence of lack of appropriate skills

and capabilities to tackle more complex procurement procedures, and, procurement is often

a source of widespread corruption

� Procurement as a particular vulnerable area for corruption and congratulatedGovernment

for clear language as reported by the press that more should indeed be done to uphold and

strengthen the internal control and auditing of Local Administrations, especially in


procurement, in a collective effort to make sure every single Tanzanian shilling spent by

local authorities is accounted for

� The importance that civil servants and local politicians should in the first place demonstrate

full accountability to their own constituencies, never mind foreign donor, with procurement

compliance, value for money, improving transparency, involvement of the citizens and

accountability to taxpayers being key guiding principles in this endeavour

� Belgium’s commitment to make the project a success for the simple reason that its ultimate

purpose, achieving better and more efficient service delivery at local level through

increased accountability, is too important to fail

� He thanked the project team and the implementing agencies and encouraged them to

coordinate effectively and to adopt an approach that allows measurable results, on which

can be built later on

The Honourable Minister in her speech:

� Referred to the increasing budget of LGAs which is spent at all levels in the procurement

process and the need to having adequate procurement systems in place with reference to

Local Government Finance Act and Public Procurement Act

� Thanked to Kingdom of Belgium for the support to the EPC-LGAP, which is implemented

through PPRA in collaboration with PMO-RALG and Hombolo LGTI and the importance to

build capacity to implement, monitor and supervise LGA procurement to increase

compliance and Value for Money

� Reminded the participants about the challenges and gaps in LGA procurement that have

been established through procurement monitoring, organisation assessment and Base Line

Study that will be addressed through the project and the strategy to build procurement

capacity in LGAs

� Expressed her expectation that through the project and strategy in particular improvement

will be realised in the preparation and implementation of Annual Procurement Plans, correct

application and use of tender guidelines and templates, transparency in awards, efficient and

correct tender evaluations, effective contract implementation and independent internal audit

in terms of reports and advice

� That she would in future not have to attend many meetings again to speak about the need to

increase compliance and performance in procurement in the Local Governments

� Through this workshop the project to enhance procurement capacity in the Local

Government Authorities was officially opened and launched


5 EVALUATION

At the end of the workshop the participants were required to write down three to five important key

messages or lessons learned from the workshop. Each key lessons or message was required to be

rated on a scale of poorly delivered (1-4), just adequately (4-5), very good (6-7) and excellently

delivered (8-10). The responses were aggregated and averages were taken on the major lessons

learned. The key messages or lessons learned (in an order of participants’ rating) include:

1. Value for Money Audit Results in LGAs.

2. How to undertake procurement with adherence to indicators.

3. How to systematically collect qualitative data from workshop participants.

4. Local Government Authorities’ challenges.

5. The value of linking a procurement planning into the budgeting process.

6. Realizing the size of the government budget that goes into the procurement function.

7. Use of gap analysis technique in procurement planning process.

8. How low the procurement performance level is in the LGAs.

9. How to undertake procurement with adherence to indicators.

10. The state of the present procurement performance in the LGAs.

11. How to do procurement with “value-for-money” in mind.

12. A better understanding of the OECD procurement pillars.

13. Procurement Information Management Systems (PMIS, EPICOR and PLANREP).

The participants identified the following weaknesses:

Technical:

1. The three (procurement) information systems were rather confusing and they need to be

harmonized.

2. Regulations governing the PMIS, EPICOR and PLANREP are unknown and they need to be

clarified.

Organisational:

1. The time allocated for the subject matter intended to be covered was inadequate (as

evidenced by some group work been done outside planned timetable, and even during the

night.

2. The Local Government Authorities did not get adequate time and opportunity to give their

individual views in the project construction process.

3. The public address system was not functioning well as there wasecho sounding.

4. Improvement in the pre-workshop arrangements is required on matters of invitation and

logistical information.

5. There were interruptions in the workshop process which made it difficult to follow the

provided timetable.

6. Use of two languages (instead of one) was sometimes confusing.

7. Poor financing of the participants subsistence allowance.


6 CONCLUSIONS AND WAY FORWARD

At the end of the workshop the participants were required to do a buzz discussion on the way

forward following the workshop. The identified activities are listed in an order of priority according to

the workshop participants’ resolutions.

1. Create specific capacity building interventions to improve the LGA procurement capacity.

2. Retooling and improving the working environment of the procurement staff.

3. More training in procurement skills is required.

4. Participative procurement planning workshops need to be done more often.

5. Translate the relevant procurement law and regulations into Swahili.

6. Improve procurement record keeping.

7. Train in and improve procurement contract management skills.

8. Close the existing gap between the HLGAs and the LLGAs and embark on procurement

decentralization to lower level of Local Government.

9. Workshops of this nature should also include service providers.

10. Build capacity in Management Information Systems.

11. There should be a procurement monitoring and assurance authority.

12. LGA Procurement Management Units should be promoted to departments under the LGAs.

13. The project should be involving people more than those attending the workshop.

It wasconcluded that the workshop has largely fulfilled its objectives. Due to time constraints not all

groups managed to completely finalise their analysis and presentations by using all tools and

formats. However, the generated outputs are of sufficient quality and can be put together and

proceed as follows:

� Finalise the workshop report by the end of June (PIU)

� Distribution of the report and workshop materials to participants and stakeholders (July by

PIU)

� Proceed with preparation of the draft LGA Procurement CB Strategy (by PIU) including:

o Updating Log Frame with workshop contributions

o Indicating time frame of the interventions: Short Term, Medium Term

o Finalise drivers and supportive actor

o Update the M&E Framework

o Prepare costing & funding

� Validation of the draft Strategywith stakeholder (PMO-RALG and PPRA); and

� Approval of the final Strategy


ANNEXES

Annex 1: Workshop Programme

WORKSHOP PROGRAMME

LG Procurement Capacity Building Strategy Formulation WorkshopSt Gaspar

DAY 1:

Time Topic

8.00 - 8.30

8.30 - 9.00 Session A: Introduction

to workshop

9.00 - 10.00 Opening Session

10.00 - 10.30

10.30 - 11.00 Session A: Introduction

to the Workshop

11.00 - 12.30 Session B: Analysis of

LGA procurement

performance

12.30 - 13.30 Session C: Presentation

LGA procurement

performance

13.30 - 14.15

14.15 - 15.15 Session D: Identifying

actionable strategies

15.15 - 16.00 Session E: Identifying

actionable strategies

16.00 - 16.20

16.20 - 17.15 Session F: Procurement,

Monitoring and

Evaluation

PMO-RALG

ENHANCEMENT OF PROCUREMENT CAPACITY OF LOCAL GOVERNMENT AUTHORITIES PROJECT (EPC

Workshop Programme

WORKSHOP PROGRAMME

LG Procurement Capacity Building Strategy Formulation WorkshopSt Gaspar – Dodoma, 11-13 June 2013

Details Methodology Responsible

Registration Secretariat

Session A: Introduction � Introductions

� Participant’s

expectation

� Workshop rules

Plenary Facilitator

� Welcome remarks

� Official Opening

� Group picture

Plenary

PPRA

PMO

PS PMO

HEALTH BREAK

Session A: Introduction � Workshop Objectives

� Key concepts &

methodology

Plenary Facilitator

Project Co

Manager

� Brief presentation on

procurement system

� Group work

OECD Pillar

Gap analysis

PIU

Facilitator

Session C: Presentation � Gap analysis Plenary

presentations

Session Chair

Groups /

Facilitator

LUNCH

� Designing actionable

strategies

Group work

Key Questions

Panels /

Facilitator

� Action analysis Plenary

presentations

Session Chair

Groups /

Facilitator

HEALTH BREAK

Session F: Procurement, � Paper 1 on LGA

Procurement

Performance

PPt

presentation

PIU

ENHANCEMENT OF PROCUREMENT CAPACITY OF MENT AUTHORITIES PROJECT (EPC-

LG Procurement Capacity Building Strategy Formulation Workshop

Responsible

Secretariat

Facilitator

PPRA

PMO-RALG

PS PMO-RALG

Facilitator

Project Co

Manager

Facilitator

Session Chair

Groups /

Facilitator

Panels /

Facilitator

Session Chair

Groups /

Facilitator

PIU

ENHANCEMENT OF PROCUREMENT CAPACITY OF -LGAP)


DAY 2:

Time Topic Details Methodology Responsible

8.00 - 8.30 Recap Day 1 Plenary Facilitator

8.30 - 9.30 Session G: Review of

Group Analysis in view

of procurement M&E

� Combined gap and

action analysis

Group work

Key Questions

Groups

9.30 - 10.30 Session H: Review of

Group Analysis in view

of procurement M&E

� Action analysis Plenary

presentations

Session Chair

Groups /

Facilitator

10.30 - 11.00 HEALTH BREAK

11.00 - 12.00 Session I: Thematic

analysis in selected

strategic areas

� Paper 2: Procurement

Quality Assurance -

Audits

� Paper 3: Procurement

Quality Assurance –

MIS

� Paper 4: LLG

procurement capacity

& training strategy

PPt

presentations

Session Chair

Panels

12.00 - 13.30 Session J: Thematic


strategic areas

� Thematic analysis Group work

Key Questions

Groups / Panels

13.30 - 14.30 Lunch

14.30 - 15.30 Session K: Thematic


strategic areas

� Thematic analysis Plenary

presentations

Synthesizing

Session Chair

Groups

Facilitator

15.30 - 16.30 Session L: Agreeing on

desired outcomes

� Synthesizing exercise Plenary Facilitator

16.30 - 17.00 HEALTH BREAK

17.00 �� SOCIAL INTERACTIONS

DAY 3:


8.00 – 8.15 Recap Day 2 Plenary Facilitator

8.15 – 9.00 Session M: Outline CB

Strategy

Paper 5: Logical

Framework & Draft CB

strategy

PPt Presentation

PIU

9.00 – 10.30 Project Launch � Official Launch of the

Project

� Group picture

Plenary Session Chair

- Hon Minister

Responsible for

LG

- Ambassador

Kingdom of

Belgium

10.30 – 11.00 HEALTH BREAK

10.30 – 12.00 Session N: Outline CB

Strategy

� Key Questions

� Preparation of Group

Reports

Selected Groups Groups /

Facilitator



12.00 – 13.30 Outline CB Strategy � Presentation of

Group Reports

� Synthesizing

All Groups Session Chair

Groups /

Facilitator

13.30 – 14.15 LUNCH

14.15 – 15.00 Wrap-up

� Final conclusions

� Way forward

� Evaluation

Plenary Session Chair

PIU / Facilitator

15.00 – 15.30 Closing � Official closing

� Words of thanks

�

CEO PPRA

15.30 –> HEALTH BREAK / DEPARTURE


Annex 2: List of Participants

No. Name Organization Title Email Phone

AGENCIES

1. Clement Mworia TACECA Executive Director [email protected] 0713620232

2. Dr.Gustav Kunkuta Mzumbe University Lecturer of LG [email protected] 0655224339

3. Constatine Mashoko Ministry of Finance Asst. Internal Auditor General [email protected] 0754443438

4. Eliakundi Semanya Hombolo LGTI Bursar [email protected] 0754847493

5. Titus Saideya National Audit Office Ast. Auditor General [email protected] 0754311374

6. Clemence Tesha PSPTB Executive Director [email protected] 2862138

7. Dr. R.Mlinga PPRA Chief Executive Officer [email protected] 0754999943

8. Bernald Ntelya PPRA Manager Systems Support &Administration [email protected] 0754296083

9. Kenneth Sijaona PPRA Manager System Development Maintenance [email protected] 0754502757

10. James Kitainda PPRA Procurement Officer [email protected] 0763243352

11. Cranmer Chiduo BTC For: Resident Representative [email protected] 0754384712

12. Mwambeja J.S. GPSA Chief Executive Officer [email protected] 0784317193

13. Charles Mwiza GPSA Regional Manager Dodoma [email protected] 0767605345

14. Prof. Valence Ndesendo St. John’s University Ag. Dean [email protected] 0754262263

15. Erika Fukushi JICA/LGTI Chief Advisor [email protected] 0786286707

16. Tomoka Komura JICA/LGTI Project Coordinator [email protected] 0782401287

17. Magdalena Katunzi Hombolo LGTI Tutorial Assistant [email protected] 0782845116

18. Rose Likangaga Hombolo LGTI Assistant Lecturer [email protected] 0784505491

19. Muhsin Danga Hombolo LGTI Assistant Lecturer [email protected] 0713689555

20. E.Mchome PMO-RALG Ag.Director Local Government [email protected] 0754293075

21. Tunganege Alex PMO-RALG Supplies Officer [email protected] 0767440375

21. Mtani Yangwe PMO-RALG PCSA [email protected] 0753180678

22. Johnson John PMO-RALG Principal Legal Officer [email protected] 0713610789

23. Zahara Msangi PMO-RALG CDO [email protected] 0755443326

24. Mustafa Yusuf PMO-RALG Senior Accountant [email protected] 0713477073

25. Stella Stewart PMO-RALG Ag.Director LG Finance [email protected] 0713343692

26. Michael Kahuluda PMO-RALG Accountant [email protected] 0713533550

27. Fred Kibano PMO-RALG IO [email protected] 0754675636



28. Felista Ngua PMO-RALG Human Resource Officer [email protected] 0755258772

29. Theresia Linuma ALAT Procurement Officer [email protected] 0754478547

30 Dr. F. A. Mwakibinga MoF/PPPD Commissioner Procurement [email protected], 0222129450

RAS

31. Madenge RS RAS Dodoma RAS Dodoma [email protected] 0784424686

32. B.P.Kisaka RAS Dodoma Ag Regional Internal Auditor [email protected] 0713065850

33. Emmanuel Kimboja RAS Dodoma Asst. Administrative Secretary [email protected] 0758424220

34. MaggieA.Chande RAS Tanga Asst. Administrative Secretary LGM [email protected] 0757498801

35. David M.Saire RAS Tanga Auditor-LGM [email protected] 0753195622

36. Taris Njojoli RAS Kigoma Principal Local Government Officer [email protected] 0756967862

37. Togoleni Yohana RAS Kigoma Internal Auditor LG [email protected] 0754657718

38. Rashid Baghdellah RAS Coast LG Auditor [email protected] 0655378411

39. Ritha Kamala RAS Coast For Assistant Administrative Secretary LG [email protected] 0762312181

Districts

40. John Titu Lushoto Ag District Executive Director [email protected] 0787765242

41. Justin T.Njuu Lushoto District Human Resource Officer [email protected] 0784895894

42. Ntedio Shelukindo Lushoto District District Engineer [email protected] 0786728232

43. Juma Shekilango Lushoto District District Internal Auditor [email protected] 0784900644

44. Dorothy Rwiza Kasulu District District Executive Director [email protected] 0754837180

45. Erasto Andrew Kasulu District District Internal Auditor [email protected] 0763312933

46. Aristarco Nteye Kasulu District Ag Head Procurement Management Unit [email protected] 0753195622

47. Eng.Shilungu Shija Kasulu District District Engineer [email protected] 0755860072

48. Ignas Sanga Kibaha District Ag.District Executive Director [email protected] 0717343340

49. Doris Hugo Kibaha District District Internal Auditor [email protected] 0713210241

50. Esther Rweyemamu Kibaha District Head Procurement Management Unit [email protected] 0762501260

51. Obindi Wembe Mkurunga District For District Executive Director [email protected] 0784299780

52. Hosea Kibakaya Mkurunga District District Internal Auditor [email protected] 0784726196

53. Amina Maundu Mkurunga District Head Procurement Management Unit ---------- 0763928304

54. Aisha Mhando Muheza District For District Executive Director [email protected] 0652815126

55. Eng.Athuman Ahungu Muheza District District Engineer [email protected] 0715311372

56. Peter Shao Muheza District Ag.Head Procurement Management Unit [email protected] 0787620232



57. Abdallah Ngodu Kondoa District District Executive Director [email protected] 0784514245

58. Isidory Kilonga Kondoa District District Internal Auditor [email protected] 0784919899

59. Emmanuel Sulo Kondoa District Head Procurement Management Unit [email protected] 0757190432

60. Naftael Ahungu Kondoa District Ag.District Engineer ------ 0786284264

61. Miriam Mmbaga Kigoma District District Executive Director [email protected] 0754289283

62. Juma Mwanga Kigoma District District Engineer [email protected] 0689405780

63. Filbert Muhamba Kigoma District District Internal Auditor [email protected] 0752656787

64. Bernard Ezekiel Kigoma District Planning Officer [email protected] 0753469102

65. F.M.Ngotonie Kongwa District Ag District Executive Director [email protected] 0754822237

66. Kilatu FB Kongwa District District Internal Auditor [email protected] 0757601121

67. Fabian Massawe Kongwa District District Treasurer [email protected] 0713474951

68. Ganja S.K Kongwa District District Planning Officer [email protected] 0754384712

69. Isaac M.Gwalugano Kongwa District District Human resource Officer [email protected] 0784851659

70. Fridolin Matembo Kongwa District District Planning Officer [email protected] 0713135667

PIU

71. Dr. L. M. Shirima PPRA Project Manager [email protected] 0754466014

72. Frits Raijmakers BTC Project Co Manager [email protected] 0685890453

73. Eng. Mary Swai PPRA Action Research Expert [email protected] 0784312450

74. Robert Kitalala PPRA Head Procurement Management Unit [email protected] 0755393251

75. Emmanuel Mmbaga BTC Financial Controller [email protected] 0754245559

Support Staff

76. Emilius Tatala BTC Project Accountant [email protected] 0753045197

77. Mhija Ng’wanakilala BTC Administrative Assistant [email protected] 0719393504

78. Shukuru Stansilaus PPRA Secretary [email protected] 0753581601


Annex 3: Workshop Tools

- Exhibit A: Gap Analysis by Cause-and-Effect Method

- Exhibit B: Mind Tools for Gap Analysis (Brain storming) and Possible Actions

- Exhibit C: Fishbone Diagram Analysis Tool: Combined Gap and Action Analysis

- Question Guides for Sessions


Characteristic or Effects

Characteristic or Effects

Characteristics or Effect

STEP A: Write a characteristic to be improved

Cause Cause

Cause Cause

STEP B: Add main factor branches to the cause

Minor Causes

Causes Causes

Cause Cause Cause

Minor Causes

STEP C: Add the detailed cause factors as twigs

Exhibit A: Gap Analysis by Cause-and-Effect Method


Exhibit B: Mind Tools for Gap Analysis (Brain Storming) and Possible Actions

Desired state/situation

GAPS Possible Actions

Gap 1 Gap 2 Gap 3 Gap 4 Gap 5


Exhibit C:Fishbone Diagram Analysis Tool: Combined Gap and Action Analysis

1. Review your group work in view of the procurement M&E presentation and place 1-2 additional proposed possible actions in the below dimensions (A, B, C, D, E, F):

A. Institutional, Equipment and Technology Incentives

B. Policies and Regulations

C. Supportive Oversight and Accountability Mechanisms

DESIRED

STATE

D. Human Resources/ Skills mix/levels

E. Education, Training, Coaching

F Leadership and Governance


Question Guide B2 Question 1: Select the five most important challenges (weak points) in LGA procurement, analyse root causes that according to you cause the challenges and the related capacity gaps Method: Group work (1.0 – 1.5 hours)

- Identify challenges in LGA procurement and select the five most important one’s - Discuss and agree on the root causes - Identify relevant capacity gaps

Output Format: Group …………….: Main Challenges, Root Causes and Capacity Gaps Challenge Root Causes

Capacity Gaps

1. “

“

2. “

3. “

4. “

5. “


QUESTION GUIDE J Method: Presentation (1.0 hours) o Procurement Quality Assurance: Audits

o Procurement Quality Assurance: Procurement MIS

o LLG procurement capacity & training Strategy

Group work: Task: Review and analyse the assigned thematic presentation and summarise in the following format Output Format: Group XXXX: Thematic Analysis of xxxxxxxxxxx Problem Statement

Capacity Gap

Root Causes of Low Capacity

Desired Outcome

Key Interventions

Driver

Contributor(s)


Annex 4: Outputs of Group Work

Group One – LGAs Gap and Action Analysis

Dimension Desired Outcome Gaps Root Causes Proposed Actions A. Institutional,

Equipment and Technology Incentives

Non-compliance with establishment of the PMUs

1. PMO-RALG should employ enough and competent procurement experts

2. Provide the PMUs with working tools- computers, offices etc. PMUs should be provided with budget and sub-vote

3. Formalization of scheme of service of procurement officers to make it a separate department)

4. PMU should be provided with working tools.

5. Training on IT B. Policies and

Regulations 1. Transparent, user

friendly and which can be understood by stakeholders at all levels and in Kiswahili language Kiswahili

2. Lack of law related to procurement for local governments as the case of the finance act No. 9 of 1982

Procurement act is not understood by stakeholders

Good policy involves the LGAs Regulations should be understood to all stakeholders

1. Translate the procurement act into Kiswahili

2. Procurement act should be participatory 3. Dissemination of the PPA and distribution

of copies of the law 4. Training should be done free to all

stakeholders 5. Disciplinary actions to violators of PPA

and they should be understood to all stakeholders

6. There should be a procurement act related to LGAs and involve stakeholders in the process

7. Regulations related to LGAs procurement should also be made available


Lack of ethics and transparency in the public procurement system

1. Regulations related ethics should be adhered to

2. Better Incentive schemes 3. Disciplinary actions to violators of the law

and regulation


Dimension Desired Outcome Gaps Root Causes Proposed Actions 4. Training on ethics to all stakeholders 5. An oversight body on procurement should

be established for LGAs as the case of Internal Auditors

6. PMU should report direct to DEDs D. Human Resources/ Skills mix/levels

1. There should be enough staff in PMU as per the law


1. Capacity Building on procurement management

F. Leadership and Governance

Preparation of procurement plan which does not involve the stakeholders

1. Involve all stakeholders in the preparation of the procurement plan

2. Training on preparation of procurement plan

3. Training on good governance


Group Two – LGAs Gap and Action Analysis

S/n Challenge Root Causes Capacity Gap Actions and Time Frame Desired Outcomes

1. Record Keeping Inadequate use of record keepers (registry officers

Insufficient skills and knowledge in record keeping

- Train at least two staff from PMU and registry officers in procurement record keeping annually

- Provide working facilities specifically in procurement unit

- Establish PMU registry by 2014 - Equip PMU registry with adequate facilities

Well trained personnel

2. Accountability Lack of Integrity Lack of Ethics - Define and address corruption, fraud, conflict of interest and unethical behaviour by 2014

- Train key players in procurement: o Accounting Officer o CTB members o PMU staff o TEC Personnel o HoDs o Legal Officer o Other stakeholders

Capacity building on ethics in LGAs

3. Incentive package for procurement staff

Non-adherence to procurement staff Scheme of Service

Sensitization employers and policy members

- Conduct performance audit quarterly in PMU - Issue circulars on PMU incentive scheme by 201 - M&E of implementation of incentive scheme

circular for PMU staff in LGAs annually

Institutionalization of procurement Scheme of Service

4 Contract Management

Poor preparation of tender documents

Inadequate competence of suppliers, contractors and service providers

- Train suppliers, contractors and service providers annually

- Issue certificates of appreciation to suppliers, contractors and service providers for good performance annually

- Enforce contract rules & regulations to suppliers, contractors and service providers timely

- Distribute PPA to contractors, suppliers and service providers regularly

Enhance capability of preparation of tender documents

5 Inadequate facilities for Procurement Unit

Budget allocation

Sensitization of allocation budget code for Procurement Unit

- Allot sub-vote for PMU budget - Provide working facilities specifically in

procurement unit - Involve PMU in budgeting budget - M&E implementation of PMU budget

Allocate budget to PMU


Group Three: Oversight Bodies Gap and Action Analysis

Dimension Desired Outcome Challenges Gaps Root Causes Proposed Actions

A. Institutional, Equipment and Technology Incentives

Improved procurement management and practices in LLG

Inadequate procurement management and practices in LLG

Insufficient knowledge and skills in procurement (2)

Low level of education in LLG level

• Training of procurement actors at LLG levels

• Employment of qualified staff

B. Policies and Regulations

Inadequate information in procurement

• Effective dissemination of information

• Involvement of CSOs in promoting community awareness


Lack of /inadequate infrastructure in LLG, e.g. computer, procurement guidelines

Insufficient funds

• PMUS to be provided with office accommodation, furniture, transport, computer with internet connectivity

D. Human Resources/ Skills mix/levels

Low prioritization for procurement infrastructure

• Lower level PEs should be given priority


• PMUs to be established as a fully-fledged unit

• PMU to be staffed as per the requirement of the law

• Scheme of service should be reviewed

• IT policy to be in place

• LGAs should inform PPRA on the appointment of tender board members

• Complaint register to be in place

• Awarded contracts to be published F. Leadership and

Governance


Group Four Others Institution Gap and Action Analysis

S/n Desired Outcome

Challenges Root Causes Gaps Proposed Action Time Frame

1. Compliance with law and Regulations

Language as a barrier

Limited knowledge and skills

Limited knowledge and skills

• Translate the laws and Regulations into Swahili

• Disseminate the translated laws and regulation

• Enforcement of the translated laws and Regulations

• Translated the laws and Regulations into Swahili by 2015

• Dissemination of the translated laws and regulation by 2016

• Enforcement of the translated laws and Regulations by 2017

2. Procurement Legislation do not cover LLGs

• LLG were not involved in the preparation of the legislation

• D by D

• Weaknesses in the preparation of the public procurement law

• Amend Procurement Legislation and Regulations to cover LLGs

• 2.1.1 Amended Legislations and regulations available by 2015

• Dissemination of amended Legislation and Regulations by 2016

• Enforce amended legislations and Regulations by 2017

3. Implementation of public procurement system

• Inadequate human and financial resources

• Weaknesses in follow ups/ monitoring

• Understaffing in PMU

• Inadequate Budget and fund allocation to PMU

• Employ adequate qualified and capable staff

• PMU to be given sub-vote

• Regular follow ups/monitoring

• Training (CPE) and retention of trained staff

• Provide adequate financial resources i.e. retooling

• Adequate, qualified and capable staff available

• Staff trained and retained

• Adequate financial resources provided

4. Procurement Procedure

• Compliance to the legislation

• Limited knowledge and skills

• Delays in decision making

• Lack of technology (ICT)

Delayed procurement process(-Bureaucracy -inefficient system -deliberately)

• Amend the legislation (Identify and remove unnecessary procedures)

• The system should follow new technology (e-procurement)

• Procurement process shortened

• M& E framework in place and functioning

• Disciplinary action taken against culpable staff


S/n Desired Outcome

Challenges Root Causes Gaps Proposed Action Time Frame

• Unethical conduct among procurement practitioners

• Capacitate& enforcement of laws and regulations

• Take strict disciplinary actions against those culpable of deliberate delays

5. Endemic cheating, theft and corruption in the procurement system in LGAs

• Weaknesses of the system

• Low income

• Difficult living conditions

• Private interests

• Lack of ethics

• Unsatisfactory good governance

• Limited knowledge and skills

• Lack of ethics

• Introduce & use of whistle blowers

• 2 Improve M& E of the procurement process.

• Punish the guilty mercilessly including the possibility of loss of office

• Capacity building of District integrity committees

• sensitize suppliers, CSOs to be socially accountable-they refrain from unethical acts/collusion etc

• Reward good performers handsomely

• Training on good governance

• Sensitization on code of conduct

• Sensitization on code of conduct

• Whistle blowers system in place

• M&E framework available and well-functioning

• Disciplinary action taken against culpable staff

• District integrity Committee capacitated

• Suppliers, CSOs and other stakeholders are socially accountable

• Good performers handsomely rewarded.


Comments on papers – Group for Quality Assurance Audits

1. Oversight bodies on quality assurance are so many with different performance indicators

2. Lack of common standards

3. Lack of oversight body for supervising the performance indicators

4. Improved procurement quality assurance

5. There should be an oversight body to monitor the performance indicators/regulations to audit quality

6. Driver: Public Procurement Regulation Authority

7. Contributors: PMO-RALG, NAO, IA, RS, PCCB and HLGTI

Comments on papers – Group for Procurement MIS

Capacity Gap: − Inadequate ICT skills and knowledge

− No links between the systems (PlanRep, EPICOR and PMIS

− Not user friendly Root Causes of low capacity: − Different developers of systems

− Different purpose of systems

− Different governing laws (PFA 2001, PPA 2004) which are not integrated

− Insufficient information and record keeping Desired Outcome: − Harmonized MIS and reports

− Improved productivity in information systems (MIS) Key Interventions: − Implement Procurement Systems Integration (PlanRep, Epicor, PMIS)

− Training and equipping users with adequate working tools

− Improved working tools to use systems (computers, internet)

− Main actors meeting to discuss harmonization and integration of systems Drivers and main actors: − PMO-RALG, PPRA, MoF, RS

− UCC, Soft Tech Contributors − CSOs, NGOs

− Development Partners

− Other Stakeholders


Comments on papers – Group for LLG Procurement Capacity and Training Strategy

Problem Statement: − Inadequate procurement management and practices in LLGs Capacity Gap: − Insufficient knowledge and skills in procurement

− Inadequate information in procurement

− Inadequate infrastructure at LLG level (computers, procurement guideline)

Root Causes of low capacity: − Low level of education in LLG level

− Insufficient funds

− Low prioritization for procurement infrastructure

Desired Outcome: − Improved procurement management and practices in LLGs

Key Interventions: − Training of procurement actors at LLG level

− Employment of qualified staff

− Effective dissemination of information

− Give priority to lower level procuring entities

Drivers: − LGA Accounting Officers Contributors: − PMO-RALG, PPRA, HLGTI, Trainers, RS, CSOs, Donors, ALAT


Annex 5: Workshop Presentations and Workshop Materials

- Workshop Objective, Concepts and Process

- Presentation 1: Results and Findings of Procurement Audits

- Presentation 2: Quality Assurance: Audits

- Presentation 3: Quality Assurance: Procurement MIS

- Presentation 4: LLG Procurement Capacity and Training Strategy

- Presentation 5: Project Logical Framework

- Hand out: Project Logical Framework and M&E Framework

- OECD/DAC Methodology for Assessment of National Procurement Systems

- OECD Indicators and Sub-Indicators


Procurement capacity at local government level sustainably enhanced

Ensuring systems and structures of governance uphold the rule of law and are democratic, effective, accountable, predictable, transparent, and inclusive and corruption free at all levels

LGA procurement performance strengthened

Systems for monitoring and quality assurance LGA

procurement strengthened

Community members better informed and able to monitor Local Government

procurement performance

Strengthened capacity to provide long-term support to improved LGA procurement

performance

Action research on LGA procurement practices, incentives and organizational structures conducted

1. Review, update and introduction of LLG procurement guidelines

2. Development of LGA procurement skills-development plans

3. Capacitation of PMUs in critical procurement areas

4. Development and refinement of LGA procurement guides

5. Development and refinement of LGA procurement manuals

6. Dissemination updated procurement guides and manuals to LGAs - RAS/LGAMS

7. Establishment of procurement Training Teams (ToT/ToC) for training and coaching at HLG and LLG levels

8. Support to LGA procurement training in identified areas

9. Development of higher skills level professional procurement courses

1. Harmonizing systems and indicators for monitoring LGA procurement compliance &performance

2. Strengthening capacity of Regional Secretariat to provide oversight, monitoring, coaching and follow-up support to LGAs on procurement

3. Support for customization and interfacing of Procurement MIS

4. Support for training of District Internal Auditors in procurement audits and quality assurance

1. Providing guidance and materials to CSOs to increasing skills in tracking, analysing and reporting on LGA procurement

2. Providing guidance and materials to media (radio, TV, local newspapers) to increasing skills in tracking, analysing and reporting on LGA procurement

3. PPRA engages with Local Authorities Accounts Committee to increase skills in LGA procurement issues, compliance and follow-up

1. Formulation and monitoring of LGA Procurement Capacity Building Strategy

2. Strengthening PPRA outreach capacity to LGAs (zonal offices)

3. Increasing appropriateness and coverage of LGA procurement audits by PPRA, DIA and CAG

4. Provision of Technical Assistance

5. Strengthening quality assurance and coordination of LGA procurement training

6. Engaging all stakeholders in dialogue on how to improve LGA procurement performance

1. Conducting action research (gender sensitive) on LGA procurement practices, incentives and organizational structures

2. Inform program design for follow-up, dialogue, recommendations on policy reform

3. Assessing methodology, results and impact

4. Establish and maintain LGA procurement capacity database

LOGICAL FRAMEWORK – ENHANCEMENT OF PROCUREMENT CAPACITY OF LOCAL GOVERNMENT AUTHORITIES PROJECT

OO =

Vision

SO =

Mission

Results =

Outputs =

Strategies

Key Activities

= Interven-tions


EPC-LGAP MONITORING & EVALUATION FRAMEWORK 2013-2017

DRIVER

Result

Others PERFORMANCE INDICATOR DATA SOURCE METHODS FREQUENCY DRIVER

M&E

TARGETS

Baseline 2017

SPECIFIC OBJECTIVE: Procurement capacity at local government level sustainably enhanced

KPI 1 Overall LGA CPI score increased PPRA Report Document review Annual PPRA 57%

Fair

> 80%

Good

KPI 2 Overall LGA CPI score in selected LGAs increased PPRA Report Document review Annual PPRA 49%

Poor

> 80%

Good

KPI 3 LGA VfM score Roads contracts improved PPRA Report Document review Annual PPRA 71%

Fair

>80%

Good

KPI 4 LGA VfM score Building contracts Improved PPRA Report Document review Annual PPRA 68%

Fair

> 80%

Good

RESULT 1: LGA procurement performance strengthened

PPPD

PPRA

HLGTI

PSPTB

I-1.1 Competences and skills-levels of LGA procurement professionals and

practitioners developed and applied in training curricula

PSPTB Reports

Curricula Document review Annual PPPD/PIU Absent

Defined and

used

PMO-

RALG PPRA I-1.2 LGA Procurement capacity defined, PMUs established and capacitated

PMO-RALG

Reports Document review Annual PMO-RALG/PIU Absent

Defined

Capacitated

> 80%

21 districts

PPRA

HLGTI PMO-RALG

I-1.3 HLGA and LLGA procurement guides & manuals updated,

disseminated and used in trainings

Guides

T/Manuals

T/Reports

Document review Annual HLGTI/PIU Poor manuals Adequate

Manuals

PMO-

RALG

PPRA

HLGTI

I-1.4 Procurement skills development plans defined, Procurement

Training Teams established, ToT/ToC trained and functional in selected

LGAs

Plans

T/Reports Document review Annual PMO-RALG/PIU Absent

Functional in

21 districts

PMO-

RALG PPRA

I-1.5 Procurement record keeping at HLG and LLG levels improved in

selected LGAs PPRA Reports Document review Annual PPRA/PIU 30%

> 80%

21 districts

PMO-

RALG PPRA

I-1.6 Procurement planning, implementation and reporting improved in

selected LGAs PPRA Reports Document review Annual PPRA/PIU 35%

> 80%

21 districts

RESULT 2: Systems for monitoring and quality assurance LGA procurement strengthened

PPRA PMO-RALG,

CAG, IAG

I-2.1 Concurrence DIA reports on LGA procurement and contract

implementation with CAG and PPRA audits increased

CAG, DIA, IAG,

PPRA Reports Document review Annual IAG/PIU

Largely

different

Largely

concurrent

21 districts

PPRA PMO-RALG

MoF

I-2.2 Use of customized and interfaced Procurement MIS in selected LGAs

increased PMIS Reports Document review Annual PPRA/PIU 0%

> 80%

21 districts

PPRA PMO-RALG,

CAG

I-2.3 Procurement monitoring of PPRA, CAG and PMO-RALG increasingly

based on similar agreed indicators

CAG, PPRA &

PMO-RALG M&E Document review Annual

PPRA, PMO-

RALG/PIU Differ Largely concur


DRIVER

Result


M&E

TARGETS

Baseline 2017

Reports

PMO-

RALG PPRA

I-2.3 Concurrence PMO-RALG procurement monitoring reports with PPRA

procurement audits increased

PPRA & PMO-

RALG M&E

Reports Document review Annual

PPRA, PMO-

RALG/PIU Differ Largely concur

RAS/RS PMO-RALG

PPRA

I-2.4 Adequate follow-up, coaching and advice by RAS/LGAMS to

procurement monitoring in selected LGAs

IAG and

RAS/LGAMSS

Reports Document review Annual PPRA/PIU

No adequate

Action

100% follow-

up

4 regions

21 districts

LGAs

RAS/LGAMS

PPRA

PMO-RALG

I-2.5 Adequate action as agreed in procurement audit follow-up to weak

areas by selected LGAs

CAG, PPRA and

PMO-RALG/RS

Reports

Document review Annual LGMAS/PIU No adequate

Action

100% follow-

up

21 districts

- RESULT 3: Community members better informed and able to monitor LGA procurement performance

PPRA CSOs I-3.1 Community awareness on LGA procurement issues in selected LGAs

increased Council Reports Document review Annual CSO/PIU Low

Majority

aware

PPRA CSOs

LGAs

I-3.2 Ability of CSOs to monitor LGA procurement in selected districts and

regions increased

Council Reports

CSO Reports Document review Annual CSO/PIU None tbd

PPRA Media I-3.3 Media coverage of LGA procurement issues in selected regions and

LGAs increased Media reports,

articles, etc Document review Annual Media/PPRA Low Regular

PPRA LAAC I-3.4 Skills of LAAC and PPRA on LGA procurement issues, compliance and

follow-up increased LAAC reports Document review Annual PPRA/PIU Absent In place

RESULT 4: Capacity to provide long-term support to improved LGA procurement performance strengthened

PPRA RAS/LGAMS I-4.1 Outreach capacity of PPRA to LGAs and RAS/LGAMS increased PPRA Reports Document review Annual PPRA/PIU Moderate Good

PPRA IAG I-4.2 Coverage and appropriateness of LGA procurement audits increased

PPRA and IAG,

DIA Reports Document review Annual PPRA/PIU 1/3 p.a. 2/3 p.a.

PPRA IAG, DIAs I-4.3 Capacity of DIA and CAG to assure quality of procurement audits

increased

DIA, IAG and

CAG reports Document review Annual IAG, CAG/PIU Moderate Good

PPRA PMO-RALG I-4.4 Policy dialogue on LGA procurement strengthened Sector reports Document review Annual PPPD/PIU Low Adequate

PPRA PMO-RALG I-4.5 All stakeholders increasingly engaged in dialogue on how to improve

LGA procurement performance Sector reports Document review Annual PPPD/PIU Fair Good

HLGTI PPRA, PMO-

RALG

I-4.6 Quality assurance and coordination of LGA procurement training

improved HLGTI Reports Document review Annual HLGTI/PIU Low Adequate

PPRA

PMO-RALG I-4.7 LGA procurement capacity building strategy formulated & monitored CB strategy Document review Annual

PMO-RALG,

PPRA/PIU - In place

RESULT 5: Action research on LGA procurement practices, incentives and organizational structures conducted

PPRA JLPC I-5.1 Action research findings and recommendations reflected in project

design and reviews

AR Reports,

JLPC minutes Document review Annual PPRA/PIU - In place

JLPC PPRA I-5.2 Policy recommendations based on (gender sensitive) action research AR Reports, Document review Annual PPRA/PIU - In place


DRIVER

Result


M&E

TARGETS

Baseline 2017

PMO-RALG

PPPD

prepared, targeted and communicated JLPC minutes

PPRA PMO-RALG

HLGTI I-5.3 LGA procurement capacity data base established and maintained

LGA database &

reports Document review Semi-Annual PPRA/PIU - In place


OECD METHODOLOGY FOR ASSESSING PROCUREMENT SYSTEMS (MAPS) - 2010

PILLAR INDICATOR SUB INDICATORS

PILLAR I: LEGISLATIVE AND

REGULATORY FRAMEWORK

Indicator 1. Public procurement legislative

and regulatory framework achieves the

agreed standards and complies with

applicable obligations.

Sub-indicator 1(a) – Scope of application and coverage of the legislative

and regulatory framework.

Sub-indicator 1(b) – Procurement Methods

Sub-indicator 1(c) – Advertising rules and time limits

Sub-indicator 1(d) – Rules on participation

Sub-indicator 1(e) – Tender documentation and technical specifications

Sub-indicator 1(f) – Tender evaluation and award criteria

Sub-indicator 1(g) – Submission, receipt and opening of tenders

Sub-indicator 1(h) – Complaints

Indicator 2. Existence of Implementing

Regulations and Documentation

Sub-indicator 2(a) – Implementing regulation that provide defined

processes and procedures not included in higher-level legislation

Sub-indicator 2(b) – Model tender documents for goods, works, and

services

Sub-indicator 2(c) – Procedures for pre-qualification

Sub-indicator 2(d) – Procedures suitable for contracting for services or

other requirements in which technical capacity is a key criterion.

Sub-indicator 2(e) – User’s guide or manual for contracting entities

Sub-indicator 2(f) – General Conditions of Contracts (GCC) for public

sector contracts covering goods, works and services consistent with

national requirements and, when applicable, international requirements

PILLAR II: INSTITUTIONAL

FRAMEWORK AND

MANAGEMENT CAPACITY

Indicator 3. The public procurement system

is mainstreamed and well integrated into

the public sector governance system

Sub-indicator 3(a) – Procurement planning and associated expenditures

are part of the budget formulation process and contribute to multiyear

planning

Sub-indicator 3(b) – Budget law and financial procedures support timely

procurement, contract execution, and payment.

Sub-indicator 3(c) – No initiation of procurement actions without existing

budget appropriations.

Sub-indicator 3(d) – Systematic completion reports are prepared for

certification of budget execution and for reconciliation of delivery with

budget programming.


Indicator 4. The country has a functional

normative/regulatory body

Sub-indicator 4(a) – The status and basis for the normative/regulatory

body is covered in the legislative and regulatory framework

Sub-indicator 4(b) – The body has a defined set of responsibilities that

include but are not limited to the following:

Sub-indicator 4(c) – The body’s organization, funding, staffing, and level

of independence and authority (formal power) to exercise its duties

should be sufficient and consistent with the responsibilities

Sub-indicator 4(d) – The responsibilities should also provide for

separation and clarity so as to avoid conflict of interest and direct

involvement in the execution of procurement transactions

Indicator 5. Existence of institutional

development capacity

Sub indicator 5(a) – The country has a system for collecting and

disseminating procurement information, including tender invitations,

requests for proposals, and contract award information

Sub-indicator 5(b) – The country has systems and procedures for

collecting and monitoring national procurement statistics

Sub-indicator 5(c) – A sustainable strategy and training capacity exists to

provide training, advice and assistance to develop the capacity of

government and private sector participants to understand the rules and

regulations and how they should be implemented

Sub-indicator 5(d) – Quality control standards are disseminated and used

to evaluate staff performance and address capacity development issues

PILLAR III: PROCUREMENT

OPERATIONS AND MARKET

PRACTICES

Indicator 6. The country’s procurement

operations and practices are efficient.

Sub-indicator 6(a) – The level of procurement competence among

government officials within the entity is consistent with their

procurement responsibilities

Sub-indicator 6(b) – The procurement training and information programs

for government officials and for private sector participants are consistent

with demand.

Sub-indicator 6(c) – There are established norms for the safekeeping of

records and documents related to transactions and contract

management

Sub-indicator 6(d) – There are provisions for delegating authority to

others who have the capacity to exercise responsibilities.

Indicator 7. Functionality of the public

procurement market

Sub-indicator 7(a) – There are effective mechanisms for partnerships

between the public and private sector.


Sub-indicator 7(b) – Private sector institutions are well organized and

able to facilitate access to the market.

Sub-indicator 7(c) – There are no major systemic constraints (e.g.

inadequate access to credit, contracting practices, etc.) inhibiting the

private sector’s capacity to access the procurement market

Indicator 8. Existence of contract

administration and dispute resolution

provisions

Sub-indicator 8(a) – Procedures are clearly defined for undertaking

contract administration responsibilities that include inspection and

acceptance procedures, quality control procedures, and methods to

review and issue contract amendments in a timely manner

Sub-indicator 8(b) – Contracts include dispute resolution procedures that

provide for an efficient and fair process to resolve disputes arising during

the performance of the contract.

Sub-indicator 8(c) – Procedures exist to enforce the outcome of the

dispute resolution process.

PILLAR IV: INTEGRITY AND

TRANSPARENCY OF THE PUBLIC

PROCUREMENT SYSTEM

Indicator 9. The country has effective

control and audit systems

Sub-indicator 9(a) – A legal framework, organization, policy, and

procedures for internal and external control and audit of public

procurement operations are in place to provide a functioning control

framework.

Sub-indicator 9(b) – Enforcement and follow-up on findings and

recommendations of the control framework provide an environment that

fosters compliance

Sub-indicator 9(c) – The internal control system provides timely

information on compliance to enable management action.

Sub-indicator 9(d) – The internal control systems are sufficiently defined

to allow performance audits to be conducted.

Sub-indicator 9(e) – Auditors are sufficiently informed about

procurement requirements and control systems to conduct quality audits

that contribute to compliance.

Indicator 10. Efficiency of appeals

mechanism

Sub-indicator 10(a) – Decisions are deliberated on the basis of available

information, and the final decision can be reviewed and ruled upon by a

body (or authority) with enforcement capacity under the law.

Sub-indicator 10(b) – The complaint review system has the capacity to

handle complaints efficiently and a means to enforce the remedy

imposed


Sub-indicator 10(c) – The system operates in a fair manner, with

outcomes of decisions balanced and justified on the basis of available

information.

Sub-indicator 10(d) – Decisions are published and made available to all

interested parties and to the public

Sub-indicator 10(e) – The system ensures that the complaint review body

has full authority and independence for resolution of complaints.

Indicator 11. Degree of access to

information

Sub-indicator 11(a) – Information is published and distributed through

available media with support from information technology when feasible

Indicator 12. The country has ethics and

anticorruption measures in place.

Sub-indicator 12(a) – The legal and regulatory framework for

procurement, including tender and contract documents, includes

provisions addressing corruption, fraud, conflict of interest, and unethical

behaviour and sets out (either directly or by reference to other laws) the

actions that can be taken with regard to such behaviour

Sub-indicator 12(b) – The legal system defines responsibilities,

accountabilities, and penalties for individuals and firms found to have

engaged in fraudulent or corrupt practices

Sub-indicator 12(c) – Evidence of enforcement of rulings and penalties

exists

Sub-indicator 12(d) – Special measures exist to prevent and detect fraud

and corruption in public procurement

Sub-indicator 12(e) – Stakeholders (private sector, civil society, and

ultimate beneficiaries of procurement/end-users) support the creation of

a procurement market known for its integrity and ethical behaviours

Sub-criteria 12(f) – The country should have in place a secure mechanism

for reporting fraudulent, corrupt, or unethical behaviour.

Sub-criteria 12(g) – Existence of Codes of Conduct/Codes of Ethics for

participants that are involved in aspects of the public financial

management systems that also provide for disclosure for those in

decision making positions


Annex 6: Photo Gallery

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