CPFM Module I

Public Procurement and Disposal of Assets flashcards

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Complete Flashcard Reference

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How does procurement differ from store keeping?

Procurement: acquiring the goods, works and services a public entity needs, from need identification through to contract completion. Store keeping: the receipt, safe custody, recording and issuing of goods once acquired, until they are used or disposed of.

What does Article 227 of the Constitution require of public procurement?

A system that is fair, equitable, transparent, competitive and cost-effective. It is the constitutional foundation that the Public Procurement and Asset Disposal Act, 2015 and its 2020 Regulations implement.

What are the main functions of the Public Procurement Regulatory Authority (PPRA)?

Monitoring the public procurement system for compliance with the law. Building the capacity of procuring entities and practitioners. Maintaining and publishing procurement-related information, including debarment lists. Advising government on procurement policy.

Which procurement method is the default, and when may another method be used?

Open tendering, the most competitive method, open to all eligible bidders (section 91(1) makes it the preferred method). An alternative is used only where the Act specifically permits it, for a reason the scenario gives: value threshold, urgency or sole source.

What does the AGPO preference under section 155 require, and how much must an entity with KES 20,000,000 of qualifying annual procurement reserve?

At least thirty per cent of the value of the entity's annual qualifying procurement is set aside for enterprises owned by youth, women and persons with disabilities. 20,000,000 x 30% = KES 6,000,000 minimum.

What does a disposal committee do, and why does it exist?

It manages the disposal of unserviceable, obsolete or surplus public assets through defined procedures: valuation, an approved disposal method and documentation. It gives disposal the same accountability discipline as acquisition, so assets are not lost to mismanagement or abuse.

What is a public-private partnership (PPP)?

A long-term contract between a public entity and a private party in which the private party performs a public function or provides infrastructure or services, bears significant risk and management responsibility, and is paid in line with performance or usage.

What is procurement splitting, and how do you spot it in a scenario?

Breaking one requirement into smaller purchases so that each stays under a lower-value method's threshold and avoids the higher-value method's requirements. Look for several smaller, related purchases that together should have triggered the higher-value method, such as four KES 1,000,000 orders for one KES 4,000,000 need.

What are the four stages of contract management, in order?

1. Contract initiation and handover from the procurement team. 2. Performance monitoring throughout the contract period. 3. Managing changes, variations and disputes as they arise. 4. Contract closure and final evaluation.

A KES 10,000,000 contract sets liquidated damages at 0.5% of contract value per week of delay. Delivery is two weeks late. What is deducted?

10,000,000 x 0.5% x 2 = KES 100,000, deducted from the amount otherwise payable. Liquidated damages are a genuine pre-estimate of loss agreed in the contract, so the rate and cap are whatever that contract states, not a fixed statutory percentage.

What are the five general procurement principles?