Public Procurement and Disposal of Assets cheat sheet

Introduction to public sector procurement

• Procurement is the process of acquiring goods, works and services, from need identification through to contract completion; store keeping is the receipt, safe custody, recording and issuing of those goods until they are used or disposed of.
• Article 227 of the Constitution requires a procurement system that is fair, equitable, transparent, competitive and cost-effective, and the Public Procurement and Asset Disposal Act, 2015 gives it effect.
• Five general principles guide every procurement: transparency, accountability, fair competition and equal treatment of bidders, value for money (not simply lowest price), and efficiency and effectiveness.
• The procurement cycle runs from identifying the need, through planning and budgeting, choosing the method, and solicitation, evaluation and award, to contract management and the receipt, storage and eventual disposal of the goods.
• Accountable documents (local purchase and service orders, goods received notes, inspection and acceptance certificates, payment vouchers) are the paper trail an audit checks against.