Open Contracting and Public Procurement (KENDC0002)

Commitment ID

KENDC0002

Commitment Title

Open Contracting and Public Procurement

Problem

Nandi County’s efforts to economically empower its citizens, through public procurement, especially under the Access to Government Procurement (AGPO) Policy 2013 targeting special interest groups, are limited by inadequate disclosure and capacity (knowledge and access to enablers such as financing of LPOS and LSOs as well as ability to fully execute awarded contracts) of contractors and suppliers, especially for enterprises owned by youth, women and persons with disability (YWPDs). Over the last five years, the county has reserved a minimum of 30%(equivalent to Ksh. 1 billion) of all procurement for the special interest groups annually for the last three years, however, the group is yet to absorb the reserved procurement budget. Consequently, inadequate accountability systems and weak supervisory structures for public projects has resulted in the misappropriation of public funds through inappropriate payments and stalling of projects or poor workmanship.

Status quo

Of the reserved Ksh. 3 billion over the last three years, only 32% is absorbed by enterprises owned by special interest groups through contracts awards. Tender notices and procurement records are published on the county website, Public Procurement Information Portal and occasionally on nation-wide newspapers on the assumption that these platforms are public spaces that are conveniently accessible to a majority of the public. However, advertised tenders, especially reserved tenders, receive low responses at an average of 3 bids and a winning-rate of 30%. The number of bids and winning-rate is relatively low considering that special interest groups constitute a cumulative 65% of the county’s population. In addition, occasionally, contracts awarded to this group are cancelled because of poor contract execution, or projects stalling due to limited capacity to deliver or to access financing for LPOs and LSOs. Overall, the participation and the ability of the special interest groups to absorb and utilize the economic opportunities under the reserved procurement budget is inadequate disclosure of procurement record and information relating to procurement opportunities compounded by limited capacity of special interest groups to submit quality bids to promote fair competition and inadequate access to financing of LPOs and LSOs.

Action

1. At least a 5% increase in the reserved procurement budget absorbed by the YWPD from its current absorption of 13% of the reserved procurement budget.
2. Existence of a Memorandum of Understanding (MOU) signed between the county government of Nandi and financial institutions outlining arrangements to guarantee credit financing of LPOs and LSOs issued to disadvantaged groups.
3. Increased bids tendered by YWPDs showing quantity and quality as a result of the commitment. We will analyze bids tendered over the last three years and after the record after commitment assess the baseline and impact of the commitment on bids and win rates.
4. Increased number of YWPDs conveniently accessing tender documents, bidding platforms, and credit financing for issued LPOs and LSOs. We will assess participating YWPDs these elements before, during implementation and immediately after the commitment.
5. At least 75% of suppliers/bidders report a 75% increase in knowledge of the procurement process and the requirements to successfully bid. We will administer surveys at the beginning of the commitment, mid-way implementation and end of the commitment to assess the baseline and impact of the project
6. Over 50% of participating suppliers/bidders report 75% satisfaction levels with the outcomes of each tender bid.
7. Over 50% of suppliers/bidders report a 75% increase in trust, attitude, and perception

How will the commitment contribute to solving the public problem described above?

We will increase and strengthen the participation of special interest groups in the procurement process by reforming the procurement procedure to simplify the bidding process and support fair competition among suppliers and contractors. We also commit to increase the transparency and accountability of the procurement system by disclosing all procurement records including contract information (Beneficial Ownership, Bills of Quantities and  project implementation updates) and tender evaluation outcomes. We will innovate the publication of procurement documents to increase access to procurement opportunities and enhance the capacity of contractors and suppliers through training and access to credit facilities.  To assess the effect of these reforms to open up the procurement system to marginalized groups, we will begin with a competitive training program for a select 50 representatives of enterprises owned by youth, women and persons with disabilities by end of the Action Plan period Over the long-term, we aim to inspire a change of mindset and attitude and build trust in the procurement system that will eventually stimulate positive public perception of the procurement system and increased participation

What long-term goal as identified in your Open Government Strategy does this commitment relate to?

Goal 2, 3 and 4 of the Open Government

Primary Policy Area

Open Contracting, Public Procurement

Primary Sector

Private Sector, Public Services (general)

What OGP value is this commitment relevant to?