Bodies Involved in the Regulation of Public Procurement notes

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Bodies Involved in the Regulation of Public Procurement

• Bodies involved in regulation of public procurement
• Functions of the bodies involved in public procurement

There are three main bodies involved in the regulation of public procurement:

• The National Treasury
• Public Procurement Regulatory Authority
• Public Procurement Administrative Review Board

The National Treasury

It is the body responsible for managing Kenya’s National and County Levels of Government finances. It is responsible for legal and responsible management of the economy and public financial operations. The National Treasury provides oversights for all financial institutions.

In relation to public procurement, it is responsible for public procurement and asset disposal policy formulation.

Functions of the National Treasury

• Formulate, evaluate, promote and research on national and county public procurement and asset disposal policy and standards;
• Develop policy guidelines for the efficient procurement management and disposal system for national executive;
• Design and prescribe an efficient procurement management system for the national and county governments to ensure transparent procurement and asset disposal of the Constitution: Provided that the National Treasury shall prescribe through Regulations a system under this paragraph which operates, respects and promotes the distinctiveness of the national and county levels of government;
• Provide technical assistance on procurement and assist in the implementation and operation of the public procurement and asset disposal system;
• Manage and administer the scheme of service of the procurement and supply chain management services cadre for the national government;
• Carry out general research, develop and promote electronic procurement strategies and policies in both the national and county governments including state corporations and other government agencies;
• Carry out review of procurement and supply chain management system to assist procuring entities;
• Develop and review policy on procurement of common user items in the public sector both at national and county government levels;
• Develop policy on the administration of preference and reservations scheme and registration of target groups under preference and reservations scheme as prescribed;
• Facilitate affirmative action for disadvantaged groups in accordance with the Constitution and advance their participation in the procurement process
• Develop and review policies and guidelines on the management of assets;
• Issue guidelines to public entities with respect to procurement matters;

The National Treasury may prescribe an institutional framework to provide for the procurement, administration and management of common user items for the national government.

Public Procurement Regulatory Authority

It replaced the Public Procurement Oversight Authority.  It is a body corporate whose duty is as follows:

Functions of PPRA

• Monitor, assess and review the public procurement and asset disposal system to ensure that they respect the national values and other provisions of the Constitution, including Article 227 and make recommendations for improvements;
• Monitor the public procurement system and report on the overall functioning of it and present to the Cabinet Secretary and the county executive member for finance in each county, such other reports and recommendations for improvements;
• Enforce any standards developed under the PPAD Act, 2015
• Monitor classified procurement information, including that of specific items of security organs and make recommendations to the Cabinet Secretary;
• Monitor the implementation of the preference and reservation schemes by procuring entities;
• Prepare, issue and publicize standard public procurement and asset disposal documents and formats to be used by public entities and other stakeholders;
• Provide advice and technical support upon request;
• To investigate and act on complaints received on procurement and asset disposal proceedings from procuring entities, tenderers, contractors or the general public that are not subject of administrative review;
• Research on the public procurement and asset disposal system and any developments arising from the same;
• Advise the Cabinet Secretary on the setting of standards including international public procurement and asset disposal standards;
• Develop and manage the State portal on procurement and asset disposal and ensure that it is available and easily accessible;
• Monitor and evaluate the preference and reservations provided for under PPAD Act, 2015 and provide quarterly public reports;
• Create a central repository or database that includes—
  • Complaints made on procuring entities;
  • A record of those prohibited from participating in tenders or those debarred;
  • Market prices of goods, services and works;
  • Benchmarked prices;
  • State organs and public entities that are non-compliant with procurement laws;
  • Statistics related to public procurement and asset disposal;
  • Price comparisons for goods, services and works; and
  • Any information related to procurement that may be necessary for the public;
• Inform, as applicable, the Cabinet Secretary, Parliament, the relevant County Executive member for finance, the relevant County Assembly or Auditor-General on issues of noncompliance with procurement laws once the relevant State organ or public entity ignores the written directives of The PPRA, including material breaches of the measures established under PPAD Act, 2015;
• Generally report to Parliament and the relevant county assembly;
• Develop a code of ethics to guide procuring entities and winning bidders when undertaking public procurement and disposal with State organs and public entities;
• In undertaking its functions, cooperate with state and non-state actors with a view to obtaining recommendations on how public procurement and disposal can be improved;
• Ensure the procurement entities implement the preference and reservations and provide data to The PPRA disaggregated to indicate the number of disadvantaged groups that have benefitted;

The Public Procurement Regulatory Authority is managed by a board known as Public Procurement Regulatory Authority. The PPRA is headed by the Director-General who is appointed by the Cabinet Secretary on the advice of the Board. The Director-General is the Chief Executive Officer of The PPRA and the Secretary to the Board.

Who constitutes the PPRB?

• A chairperson nominated by the Cabinet Secretary and appointed by the President
• Four members who shall be appointed by the Cabinet Secretary after nomination, through a fair process, by —
  • The Law Society of Kenya;
  • The Institute of Certified Public Accountants of Kenya;
  • The Kenya Institute of Supplies Management;
  • The Association of Professional Societies in East Africa, provided that the appointed nominee is not a member of a professional body under subparagraphs (i) to (iii);
• Two persons nominated by the respective organizations representing—
  • The youth; and
  • Persons with disabilities.
• The Cabinet Secretary or his or her representative;
• The Attorney-General or his or her representative

Functions of the PPRB

• Ensure the proper and effective performance of the functions of The PPRA;
• Approve and ratify the policies of The PPRA;
• Oversee the management, control and administration of the assets of The PPRA in a manner and for purposes that promote the object and purpose of The PPRA;
• Receive any gifts, grants, donations or endowments made to The PPRA;
• Determine the provisions to be made for capital and recurrent expenditure, and for the reserves of The PPRA;
• Open bank accounts for the funds of The PPRA in accordance with the Public Finance Management Act, 2012;
• Subject to the approval of the Cabinet Secretary, invest any of The PPRA funds not immediately required for the purposes of PPAD Act, 2015, as it may determine; and
• Co-operate with other organizations undertaking functions similar to its own, whether within or outside Kenya as it may consider appropriate and in furtherance of the functions of The PPRA;

Public Procurement Administrative Review Board

Functions of PPARB

• Reviewing, hearing and determining tendering and asset disposal disputes; and
• To perform any other function conferred to the Review Board

The Board is comprised of 15 members who are appointed by the Cabinet Secretary. The composition is as follows:

• A chairperson whose qualifications and experience shall be as that of a Judge of the High Court;
• Fourteen other members whose qualifications and experience are prescribed in the regulations

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