Procurement Planning Presentation

The World Bank Model

By Zablon MRingeera

THE PROJECT CYCLE

PROCUREMENT PLANNING
Module Objectives
Introduce basic concepts of procurement planning Explain the process of procurement planning including:
strategy Scheduling Discuss the need for regular updating of procurement plans

Purpose of the Plan:

Input for the Preparation of the Project Implementation Plan at Project Preparation. Planning the number of contracts for Goods, Works and Consultants Services foreseen at appraisal and their estimated costs. Planning the duration of each procurement step for each contract.

Preparation of Project Implementation Plan at Appraisal

At appraisal, the overall project implementation is planned according to the projects or programs annual objectives. The cost items are divided into Goods, Works and Consulting Services and other non-procurement items. The Procurement Plan is a necessary input for the project implementation plan.

Preparation of Project Procurement Plan during Preparation and Appraisal

The tentative project implementation plan indicates when
Goods should be delivered on site; Works should be completed; Consultants Studies should be available;

The procurement plan starts with the strategy for packaging components in order to realize optimum economy, efficiency and transparency. Initial Procurement Plan covers the first 18 months of the project

STRATEGY (1)
DECIDE STRATEGY
SEPARATE CONTRACTS FOR EACH COMPONENT

OR
SINGLE RESPONSIBILITY FOR GROUPS OF CONTRACTS

OR
TURNKEY FOR ENTIRE PROJECT

CONSIDERATIONS
TECHNICAL INTERFACE SOURCES OF SUPPLY COORDINATION CAPABILITY TIME

STRATEGY (2)
PACKAGE
SIMILAR ITEMS TRANSPORTATION GOODS vs WORKS vs SERVICES

CHOICE OF METHOD
ICB LIB NCB SHOPPING SINGLE SOURCE

SCHEDULING
SCHEDULING
ASSESS: LEAD TIME
ADMINISTRATIVE REQUIREMENT AND PROCESS CONTRACT PERFORMANCE REVIEW PROCESS

DETERMINE CRITICAL PATH

DEVELOP SCHEDULE FOR EACH CONTRACT

ASSESS STAFF RESOURCES MONITOR PERIODICALLY

PROCEDURE (1)
From the approximate desired completion date, the procurement specialist estimates the number of weeks that it will take to complete the procurement process up to contract implementation.

PROCEDURE (2)
Some durations of procurement steps are mandatory, others are based on acceptable norms. The reality may sometimes differ, but the objective is to ensure discipline in achieving the target dates to meet the projects disbursement goals. This is also very important for the AFR disbursement performance. Delays should always be justified and accountability for the delays should be established.

PROCEDURE (3)
Starting from the approximate desired completion date estimated by the project officer, the PS works his/her way back to the date when the procurement process should start (backward planning). Using the starting dates thus obtained, the PS prepares the procurement plan for each contract.

Procurement Plan >---< Project Implementation Plan

During Project Preparation stage, the procurement plan thus established, is still a tentative plan. It provides a basis for determining when procurement of contracts should start and when they would be completed. It is a necessary input for the project implementation plan. When the procurement planning exercise is done, the project officer can complete his project implementation plan with much greater accuracy.

The Procurement Plan is Needed for Negotiations

This tentative procurement plan should be submitted to the Bank for approval before Negotiations The Plan is finalized and approved during negotiations.

Updating the Procurement Plan

Once the project starts, the procurement plan needs to be updated. This means a revision of the plan duration for each contract in accordance with the actual starting date of the project. The updated plan should be submitted with each procurement document to be cleared for contracts subject to PRIOR REVIEW to permit the clearance by the PS.

Plan versus Actual

Once the procurement process for the contract starts, the actual dates for each procurement step are inserted in the row designated to Actual. The project officer (TTL/PS) keeps a record of the reasons for any delays, for supervision purposes. The same is done for the actual implementation of contracts.

END