Tendering process

BY
HOSEA N
Tendering and its Importance

•What is Tendering?
•A formal process to procure goods and services.
•Ensures transparency, competitiveness, and value for money.

•Importance in Healthcare
•Ensures availability of high-quality medical equipment.
•Supports effective healthcare delivery.
Legal Framework

 Legal Framework
 Public Procurement and Asset Disposal Act, 2015
 Regulatory Authority
 Public Procurement Regulatory Authority (PPRA).
Objectives of Tendering

.Cost-Effectiveness
 Obtain best prices for high-quality products.
 Quality Assurance
 Ensure compliance with medical standards.
 Supplier Accountability
 Foster relationships with reliable suppliers.
 Types of Tendering

 Types of Tendering
 Open Tendering
 Anyone can submit bids.
 Promotes competition.
 Selective Tendering
 Inviting pre-selected suppliers.
 Ensures quality and reliability.
 Negotiated Tendering
 Direct negotiation with suppliers.
 Used for specialized equipment.
Tendering process

 Tendering Process Steps

 Needs Assessment
 Identify specific medical equipment needs.
 Preparation of Tender Documents
 Specifications, terms, and conditions.
 Advertisement of Tender
 Publish to invite bids from suppliers.
 Bid Submission
 Suppliers submit their proposals.
 Evaluation of Bids
 Assess bids based on criteria (price, quality).
 Awarding the Contract
 Select the most suitable bid.
 Contract Management
 Oversee the delivery and performance .
Steps in Tender Opening Process

 Preparation for Opening

 Receiving Bids
 Opening Ceremony
 Recording Bids
 Evaluation Criteria Announcement
Steps in Tender Opening Process

 Tender Opening Ceremony

 Location
 Participants
 Process
Steps in Tender Opening Process

 Recording and Documentation

 Bid Details to Record
 Tender Opening Minutes
Evaluation of Bids

 Evaluation of Bids
 Initial Evaluation
 Detailed Evaluation
Key components of Tender
Documents
 Key Components of Tender Documents
 Specifications
 Detailed description of the equipment.
 Terms and Conditions
 Payment terms, delivery timelines.
 Evaluation Criteria
 Pricing, warranty, after-sales service.
 Compliance Requirements
 Regulatory standards and certifications.
Key documents to look for during
tender opening in Kenya
 10. Affidavit of Disclosure
 1. Tender Submission Document

 Declaration of any conflict of interest.
The main bid document containing the proposal details.
 2. Bid Security  11. Joint Venture Agreements (if applicable)
 A bank guarantee or bond ensuring the bidder's  Documents outlining partnerships for joint bids.
commitment.  12. Insurance Certificates
 3. Technical Specifications
 Proof of relevant insurance coverage.
 Documents detailing compliance with the required
specifications.  13. Compliance with Labor Laws
 4. Financial Proposal  Evidence of adherence to labor regulations and
 Breakdown of costs and pricing structure. employee welfare.
 5. Company Profile  14. Any Addenda
 Overview of the bidding company, including registration  Official documents addressing changes or
details.

clarifications issued during the tendering process.
6. Tax Compliance Certificate
 15. Environmental Compliance Documents
 Proof of tax compliance from the Kenya Revenue Authority
(KRA).  Relevant permits or declarations regarding
 7. Business Permits environmental impact.
 Valid operating licenses and permits.  Tips:
 8. Past Performance Records  Ensure all documents are valid and current.
 References or testimonials from previous clients.  Check for signatures and official stamps where
 9. Certificates of Incorporation
required.
 Proof of company registration with the Registrar of
Companies.
Evaluation Criteria for Bids

 Price Competitiveness
 Cost compared to budget and market rates.
 Quality Assurance
 Certifications (ISO, CE marking).
 Supplier Reputation
 Previous performance and customer reviews.
 After-Sales Support
 Maintenance, training, and service options.
 Steps in Tender Evaluation
Process
Steps in the Tender Evaluation Process 4. Evaluation Criteria
A. Preliminary Evaluation
A. Technical Criteria
 Compliance Check:
o Verify bid submission requirements.  Quality and specifications of the goods/services.
o Confirm submission of all necessary documents (e.g., bid security, tax  Relevant experience and expertise.
compliance).  Compliance with tender requirements.

B. Technical Evaluation B. Financial Criteria

 Assessment Criteria:
o Evaluate based on technical specifications.  Pricing competitiveness.
o Check qualifications and experience of the bidder.  Total cost of ownership.
o Score using predefined criteria.  Payment terms and conditions.

C. Financial Evaluation

 Cost Analysis:
o Analyze the financial proposal.
o Ensure the bid is within budget and offers value for money.
o Compare against other bids to identify the most competitive offer.
Scoring, committee ,reporting ,
award and post awarding 7. Report Preparation

activities
5. Scoring System
 Evaluation Report:
 Weighted Scoring: o Compile findings, scores, and recommendations.
o Assign scores based on technical and financial evaluations. o Include justifications for decisions made.
o Use a predefined formula to calculate overall scores.

8. Awarding the Contract

6. Evaluation Committee
 Approval Process:
 Composition: o Submit evaluation report to the relevant authority for approval.
o Comprised of qualified personnel from relevant departments.  Notification:
 Responsibilities: o Inform the winning bidder and unsuccessful bidders.
o Conduct fair and unbiased evaluations.
o Document findings and recommendations.

9. Post-Award Activities
 Contract Signing:
o Formalize the agreement with the winning bidder.
 Debriefing:
o Provide feedback to unsuccessful bidders upon request.
Challenges, best practices and
conclusion
10. Challenges in the Evaluation Process 11. Best Practices
 Lack of adequate training among evaluators.  Training: Regular capacity building for evaluation committees.
 Potential conflicts of interest.  Transparency: Maintain openness throughout the evaluation process.
 Use of Technology: Implement e-procurement systems to streamline evaluations.
 Insufficient time for thorough evaluations.

12. Conclusion
 A robust evaluation process is crucial for ensuring effective procurement in Kenya,
fostering trust and accountability in public spending.
Challenges in Tendering

 Market Fluctuations
 Price volatility affecting bids.
 Supplier Reliability
 Risk of non-compliance or delivery issues.
 Complex Regulations
 Navigating healthcare procurement laws.
 Time Constraints
 Pressure to deliver equipment promptly.
Best Practices in Tendering

 Clear Specifications
 Ensure all requirements are well-defined.
 Transparent Process
 Maintain openness to foster trust.
 Regular Market Research
 Stay updated on market trends and suppliers.
 Engage Stakeholders
 Involve clinical staff in the selection process.
conclusion

 Conclusion
 Importance of Effective Tendering
 Vital for ensuring high-quality healthcare delivery.
 Encourages responsible spending of public resources.
 Call to Action
 Emphasize the need for continuous improvement in the tendering
process.
Thank You for Listening!

 Thank you for your attention!

If you have any questions or would like to discuss further, feel
free to ask.