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1 ISSUE NO: 1 PAGE: 1 of 14 ISSUE HISTORY ISSUE DESCRIPTION OF CHANGE PROCESS PILOT EFFECTIVE DATE 1 None, no change has been done. Head Supply & Chain Management 14 TH June 2010 REFERENCED DOCUMENTS COPY HOLDERS REF QPM QPM - 7 PM WI TITLE Quality policy manual Product Realization Procedure Manual Work Instructions 1. Director 2. Head supply Chain 3. Senior Procurement Officer 4. Procurement Officer 5. QMR 6. KFS/PROC/WI/01 Determination of purchasing requirements / budget KFS/PROC/WI/02 Evaluation of Quotations KFS/PROC/WI/03 KFS/PROC/WI/04 KFS/PROC/WI/05 KFS/PROC/WI/06 KFS/PROC/WI/07 Expediting foreign purchases Supplier pre-qualification Evaluation of suppliers Inspection of Incoming Product Stores management Kenya Forest Act Procurement Manual Public Procurement Act Code of regulations

2 ISSUE NO: 1 PAGE: 2 of 14 RECORDS / ANNEXES REC NO REC TITLE Local Purchase Orders Local supply Orders Approval limits for IPR Goods Received notes (S13) Delivery Notes Inspection Report Invoice Register Concession Form Purchase Request Note Quotation Register Stores Issuance Register Tender/Procurement Committee Minutes

3 ISSUE NO: 1 PAGE: 3 of 14 TABLE OF CONTENTS ISSUE HISTORY... 1 REFERENCED DOCUMENTS... 1 RECORDS / ANNEXES SCOPE PURPOSE RESPONSIBILITY AND AUTHORITY OBJECTIVES TERMS AND DEFINITIONS DETAILS OF PROCEDURE Internal Purchase Requests Procurement Plan Verification of Purchased Products/Services Stores Management Inventory Management CONCESSION FORM PROCESS FLOW CHART (Procurement Plan)... 12

4 1. SCOPE ISSUE NO: 1 PAGE: 4 of 14 This procedure covers from receiving of an IPR to raising a GRN and informing the user department; from preparing a list of requirements, appointment of suppliers, monitoring supplier performance to updating records; from receiving of ordered products/services to the raising of GRN; from receipt of products to the carrying out of planned stock takes; from stock identification to replenishment. 2. PURPOSE This is to ensure adequate control in the supply chain processes within Kenya Forest Service. 3. RESPONSIBILITY AND AUTHORITY 3.1 Director Provides overall leadership in procurement process in KFS Acts as the accounting officer for all procurement processes. 3.2 Chief Accounts Officer Approves IPRs as per authorized limits Authorizes payments. 3.3 Head Supply Chain Management Overall responsible for the Purchasing and Supplies process Secretary to the tender committee Advice Director on procurement issues. 3.4 Senior Procurement Officer Deputize the head of supply chain management division Approves LPO/LSOs Verifies and approves IPRs as per authorized limits Prepare, publish and distribute procurement and disposal opportunities including invitation to tender, pre-qualification documents and invitations for expression of interests Co-ordinate the receiving and opening of tender documents Propose the membership of evaluation committee to the accounting officer for approval Implement the decisions of the procurement and tender committees, including coordinating all the activities of these committees Prepare and publish notices of award and of tender acceptance.

5 ISSUE NO: 1 PAGE: 5 of Co-ordinate internal monitoring and evaluation of the supply chain in the procurement department Provide directions as required for any petition or investigation to debar a tenderer, contractor or any investigation under review procedures In charge of the day to day activities in procurement department Co-ordinates the pre-qualification and approval of suppliers process Overall responsible for verification of purchased products/services Identifies, rates and short-lists potential suppliers Monitors supplier performance Prepares supplier pre-qualification forms Updates records. 3.5 Procurement Officer Maintain and safeguard procurement and disposal documents in accordance to procurement regulations Co-ordinate the evaluation of tenders and quotations Act as a secretary to the procurement and disposal committees Certify the invoices and payment vouchers to various suppliers Endorsing the issuance of stocks, works and services received notes Participating in the evaluation of tenders, proposals and quotations Prepare consolidated procurement plans Raises IPRs Raises LPOLSO s Sources for Suppliers Obtains and evaluates quotations Expedites the placed orders Overall in charge in ensuring proper inventory management Co-ordinates planned stock takes. 3.6 Stores Officer Verifies delivery notes Raises GRNs Raises IPRs for stock items Incharge of stock control/custodian Incharge of payment process documents of supply chain Defines/codes stocks Replenishes stocks Monitors stock movement Receives new stock Updates stock records Receive and verify incoming products/services.

6 ISSUE NO: 1 PAGE: 6 of Reject non-conforming products/advise the supplier. 3.7 Stores Assistant Officer Posting of stock data in to the inventories Balancing stock cards Deputize the stores officer. 3.8 Tender Committee Ensure that all procurement and disposal procedures are followed Fully incharge of tenders above Kshs 500, Sets the tender evaluation requirements Opens tenders Approves selection of successful tender or disposal Ensure availability of funds for the procurement Review the selection of procurement method Approves list of tenderers in cases of restricted tendering Approve amendment of previously awarded contracts Review the quarterly reports on quotations awarded by the procurement committee Institute evaluation team as necessary Evaluates pre-qualified suppliers and recommends appointment of qualified suppliers Evaluates tenders and contracts as necessary 3.9 Procurement Committee Fully incharge of tenders Kshs 500,000 and below Opens quotations Approve or reject a submission made by procurement unit Institute evaluation team as necessary Evaluates pre-qualified suppliers and recommends appointment of qualified suppliers Evaluates tenders and contracts as necessary Inspection and Acceptance Committee Inspects received goods, and where necessary test them Confirm compliance of goods, work, or service with contract specifications Accept or reject goods, works or service on behalf of the procuring entity Ensure goods, works or services meet the technical standards.

7 ISSUE NO: 1 PAGE: 7 of Ensure that necessary documentation has been received Issue interim or completion certificate or goods received note as necessary Disposal Committee Confirm validity of disposal request Approve or disapprove disposal request Dispose as appropriate Prepare and issue disposal certificate Departmental/Divisional Heads Verify budget/need for purchase Provide specifications for goods/services required Participate in Tender Committee as assigned Authorize IPRs in their respective division/department All staff Responsible for raising IPRs as assigned Raise IPR for non-stock items as necessary Receive and verify the ordered products/services as assigned Reject non-conforming products. 4 OBJECTIVES NB: Refer to the performance contract. CSF KPI TARGET(S) DUE 5 TERMS AND DEFINITIONS TERM KFS LPO LSO DEFINITION(S) Kenya Forest Service Local purchase Order Local Supply Order

8 ISSUE NO: 1 PAGE: 8 of 14 TERM DN GRN SLC FPO SIN ENCOM TC SCM DEFINITION(S) Delivery note Goods Received Note Stores Ledger Card Foreign Purchase Order Stores Issue Note Enforcement And Compliance Tender Committee Supply Chain Management 6 DETAILS OF PROCEDURE 6.1 Internal Purchase Requests Determine purchase requirements/budget as per Work Instructions Prepare specifications for the required purchase/service Raise IPR as per product/service specifications Receive approved IPR from user/stores Check list of approved suppliers and select suppliers Request and evaluate quotations as necessary Fill IPR with price and suppliers details and seek approval as per authorized limits Raise LPO and forward for approval Update records and dispatch copies Expedite/follow-up of placed orders as per work instructions Receive/Verify and sign delivery notes and raise GRN and inform user.

9 6.2 Procurement Plan ISSUE NO: 1 PAGE: 9 of Head of Procurement requests all user departments to provide requirements for goods and services for next financial year during the third quarter of the preceding year The needs are consolidated into a plan and forwarded to the tender committee for approval Once approved, the tender documents are prepared and advertised as per the public procurement and disposal act indicating closing and opening dates Tender opening committee opens the docs and register all the bids in presence of the bidders (optional) Preliminary evaluation of the bids is done by Tender Opening Committee and Tender Committee Secretariat to for check for compliance with the stated requirements. If they do not comply they are disqualified The qualified bids are forwarded to Tender evaluation committee ( technical and financial separately or both) to evaluate the bids and prepare a report Report presented to tender committee for adjudication and awarding of tenders Secretary to tender committee communicates with all the bidders on the outcome Contract signed between accounting officer and the successful bidders Goods/services are then ordered as required.

10 ISSUE NO: 1 PAGE: 10 of 14 NOTE 1: Procurement Committee opens quotations on weekly basis on every Wednesday and minutes recorded, and forwards quotations above Ksh 500,000 to the tender committee on the same day. NOTE 2: Minutes from procurement committee well printed and approved, are distributed to members on the following date. NOTE 3: Raising and examination of Purchase orders are done within 2 (two) days after opening of quotations, each on a single day. NOTE 3: Tender committee sits within 5 (five) days after receipt of quotations. NOTE 4: AIE holder approves purchase orders at most after 1 (one) day of receipt. 6.3 Verification of Purchased Products/Services Receive ordered products/services as per work instructions Inspection is done on the delivery date and goods are taken to the store Inspection is done in presence of at least two of its members against the specifications One of the present inspection team members must be the user/ appointee by the user department Receive products/service and sign D/N Raise GRN Issue certificate of acceptance of goods and services as necessary Facilitate return of non-conforming products Concession form can be used where necessary, with the approval of the user and procurement department. 6.4 Stores Management Receive inspect and verify ordered products into the stores as per

11 ISSUE NO: PAGE: 11 of 14 work Instructions Receive and Sign delivery note. the stores as per Work d place in designated areas in the stores as per Work Code products and place in designated areas in Instructions Raise GRN and pass for authorization Update stock records Receive Stores Requisition and raise Stores Issue Note Issue products to the user and update records as per Work Instructions. In case product is not ex-stock raise IPR as necessary In case product is not ex Carry out planned stock takes as per Work Instructions. NOTE 1: Procurement department stores its procurement documents ling Lateral Cabinets. in Filing Lateral 6.5 Inventory Management Identification of stocks as per Work Instructions Determine buffer stocks and set minimum and maximum stock levels Monitor stock movement Set economic re-order levels Replenish stocks. CONCESSION FORM S Issue / Rev 1/0 Concession Request Form

12 ISSUE NO: 1 PAGE: 12 of 14 To: Date: We are requesting for a concession to accept the following products with the characteristics listed below: Product Characteristics Required Actual Deviation If acceptable, please sign and stamp for user s approval and send this form back to us immediately to facilitate acceptance of the products. Thank you. Yours faithfully, Head - User Department User s Approval: Date: PROCESS FLOW CHART (Procurement Plan) ACTIVITY RESPONSIBILITY

13 ISSUE NO: 1 PAGE: 13 of 14 START Requests all user departments to provide requirements for goods and services Head of Procurement Needs are consolidated into a plan and forwarded for approval NO Approved? Returned for correction Tender Committee YES Tender documents are prepared and advertised Procurement Opens the docs and register all the bids Tender Opening Committee NO Preliminary evaluation of bids Complies? Bidder disqualified Tender Opening Committee/Tender Committee Secretariat YES 1

14 ISSUE NO: 1 PAGE: 14 of 14 1 Evaluates the bids and prepare a report Report presented to tender committee for adjudication and awarding of tenders Tender Evaluating Committee Communicates with all the bidders on the outcome Secretary, Tender Committee Contract is signed Goods/services ordered as required Accounting Officer/ Successful bidders Procurement END PREPARED BY: HEAD, SUPPLY CHAIN APPROVED BY: DIRECTOR

DOCUMENT TITLE: RECEIVING & ISSUANCE OF GOODS. ISSUE NO: 1 PAGE: 1 of 10

DOCUMENT TITLE: RECEIVING & ISSUANCE OF GOODS. ISSUE NO: 1 PAGE: 1 of 10 REF NO: KFS-SCM-004 ISSUE NO: 1 PAGE: 1 of 10 ISSUE HISTORY ISSUE DESCRIPTION OF CHANGE PROCESS PILOT EFFECTIVE DATE 1 None, no change has been done. Head Supply & Chain Management 14 Th June 2010 REFERENCED