Operation and Maintenance Management Manual Training Module - D Community Based Financial Management DEMEWOZ CONSULTANCY
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Step 1: Importance of Procurement 1. Facilitator can ask participants what they understand by the term procurement.
2. Discuss scope of procurement process: covers goods and services.
3. What is the purpose of procurement?
4. Discuss what can happen if procurement is not done properly?
Step 2: Establishing procurement responsibilities Every organization often has to set rules to guide the procurement processes
for
goods and services.
Discuss the following points:
1. Who should set the rules and procedures for procurement?
Management committee with AGM approval.
2. Where should procurement rules be documented?
Procurement rules may be found in the WASHCO constitution or bylaws
or in a separate document that has been approved by the AGM
3. Who should implement the procurement activities?
Procurement sub-committee;
Management committee.
4. Does WASHCO have a procurement sub-committee?
Does constitution allow for a procurement sub-committee?
Define membership of procurement sub-committee?
Define terms of reference for procurement sub-committee
Review terms of reference for management committee with respect to
procurement activities.
Weak procurement can result in: 1. Suspicion of corruption or favoritism which undermines credibility
of WASHCO management committee;
2. Sub-standard partial goods or services because terms of
reference for quantities or specifications were not properly
prepared;
3. Generates conflicts within WASHCO or between WASHCO and
others because proper procedures were not followed;
4. Over-inflated prices due to lack of proper competition;
5. Delays in getting something done or goods purchased
