Pacfic Logistics PROCUREMENT & CONTRACTS

Transcription

1 Pacfic Logistics PROCUREMENT & CONTRACTS

2 Agenda Procurement Procedures & Processes Procurement Documentation & Filing Types of Logistics contracts Basic components of a contract Local laws vs. Agency rules

3 Why? Procurement Procedures To protect the interests and the integrity of the organization The increased complexity in donor requirements makes it necessary to have clear procedures The world isn t perfect We can not work only on trust To be sure that the request is valid and funds available Objectives: The best value for money in a fair competition to meet operational requirements in a transparent manner

4 Procurement Process Aim? In order to have the goods at the right place, at the right time, in the right quantity at the right quality, at the right price, procurement process must be based on: FAIR COMPETITION

5 Procurement Procedure Group Work Offers Contract Committee & opening panel Request for Quotation Goods can be purchased and delivered Contract committee makes recommendation for approval by Director/Manager/Head of organisation Comparative Bid Analysis Requisition Form Goods Receipt Note 31/07/12 5

6 Procurement Procedure Requisition Form 31/07/12 Request for Quotation Offers Contract Committee & opening panel Comparative Bid Analysis Contract committee makes recommendation for approval by Director/Manager/Head of organisation Goods can be purchased and delivered Goods Receipt Note

7 Some Procurement Documentation Contracts Purchase Orders Transport Title:- Bill of Lading (B/L), Air/truck/rail waybill Commercial invoice Proforma invoice Packing list Certificate of origin Gift certificate for duty free import

8 Procurement File - Requisition With adequate authorisation and properly coded Supporting documentation or any amendments - Quotation Request: Copy of RFQ Minutes of opening ceremony (if applicable) Supplier s quotations (unsuccessful/regret) letters - C.B.A Quotation of successful supplier Minutes of Contract Committee (if applicable) - Purchase Order/ Contracts - Shipping documents - Goods Receipt Note - Copies of suppliers invoice(s) - Correspondence

9 Pacfic Logistics Why Delays in Procurement? - Reviewing the receiving documentation - Convening Contract Committee meeting - Approval of Contract Committee minutes by Head of Organisation - Final go ahead to the field

10 Contracts & Purchase Orders Definition An agreement between two parties for the provision of goods and services Contracts are essential in all areas of logistics. Why? What is the difference between Contracts and Purchase Orders?

11 Factors Influencing need for a Contract Value of the goods or services (the higher the value the greater the need for a contract) Length of agreement (1 day labour or 6 month employment, car hire etc) Level of risk involved Local Laws (these may dictate the need for a contract

12 Types of Contracts House/Office Warehouse & storage rental contracts Vehicle hire contract Transportation contract Fuel supply contract Construction/rehabilitation contract Staff employment contract Supplier contract Plane charter contract Water supply contract

13 Basic Components of a Contract Parties involved Details of the goods or services agreed Responsibilities Special terms and conditions Timeframe Terms of payment Appendix

14 Local Laws vs. Agency Rules Be aware of Local laws in relation to any agreement reached In some emergency situations the Agency may not be able to enforce the terms and conditions of the contract due to lack of or quality of local laws and legal system For large contracts (construction contracts etc) it is worth considering where possible using a local lawyer to draw up and witness the contract Where possible most agencies or organisations only accept international terms and conditions.

15 Legal Context Purchasing Request Contract/ PO s Status Agreements

16 Group Work Write a bullet pointed list of the main components of a contract for the following: Employment of a driver Fuel supply contract Warehouse Fumigation services Rental contract of a warehouse Transport of food to distribution points.

17 Questions? 31/07/12