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Effects of Puchasing Control on Organisational Performance

In: Business and Management

Submitted By nelius
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Shall include (a) a disposal plan shall include the likely method of disposal for each requirement and details of measures to be taken to prevent recourse to the use of another disposal method unless that approved by the tender committee
(b) Planning for a disposal activity shall take into account the allocation of biddable lots to ensure that requirements are not split up without justifiable reason (c) The disposal stores and equipments shall be aggregated for all departments of a procuring entity; (d) The aggregation of disposal requirements shall take into account- (i) the market relationships between the items if any; (ii) items which are of a similar nature and are likely to attract the same potential bidders; (iii) the optimum size and type of contract to attract the greatest and most responsive competition or the best prices; (iv) items which shall be subject to the same method of procurement and bidding conditions; (v) items which shall be subject to the same conditions of contract; (vi) the appropriate size of contract to facilitate the application of any preference and reservation scheme. (e) a procuring entity shall not, with the intention of avoiding a particular method of disposal or the benefits of scale, split up disposal requirements which can be disposed of as a unit. (f) Splitting of disposal requirements, which are broadly similar or related, shall only be permitted when the split offers clear economic or technical advantages. (2) Where assets have been identified for disposal, the procuring entity shall undertake the valuation of the assets or property either using its own staff or an independent valuation expert in order to determine the estimated reserve price which shall be confidential and shall not be disclosed to the bidders..Disposal committee
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(1) A public entity shall establish a disposal committee for the purposes of recommending the best method of disposing of unserviceable, obsolete or surplus stores, or equipment (2) The disposal committee will comprise at least three responsible members, who shall be appointed by the accounting officer from various departments of the public entity. (3) Representatives from the relevant technical department should be included in the disposal committee 28
Authority’s directions
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(1) The Authority may issue written directions to public entities with respect to the disposal of unserviceable, obsolete or surplus assets. (2) When items have been disposed of through any of the methods allowed, a standard disposal certificate (s) shall be prepared accordingly Methods of disposal
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A procuring entity may use any of the following methods of disposal for disposal of its stores and equipment: Transfer with financial Adjustment (1) A procuring entity may transfer assets to another procuring entity with financial adjustment Where the receiving procuring entity shall make further use of the procuring entities stores, assets or equipment and an arrangement for transfer shall be agreed mutually between the two procuring entities. Transfer without Financial adjustment (2) A Procuring entity may transfer assets to another procuring entity without financial adjustment where (a) The stores or equipment have residual value, they may be transferred to another procuring entity and entered into its register and at the same time a write off should be done and recorded in the books of the issuing procuring entity. (b) it is uneconomical to charge the asset and therefore, transfer should be done at no cost (c) item(s) shall be transferred to the approved entity using the appropriate documents. (d) the tender committee shall approve the transfer assets to another procuring entity .Sale by public Tender (3) The procedure for disposing by public tender shall be similar but with appropriate modifications to those of procurement of goods, works and services through open tender, restricted tender or request for quotations but the award shall be made to the highest rated bidder which shall be equal to or above the reserve price Sale by public Auction (4) The procuring entity may use an auctioneer from the pre- qualified list or through appropriate competitive method. And shall be approved by the tender committee .Destruction Dumping, burying Burning (5) A procuring entity after considering the environmental effects may destroy, dump, bury or burn assets only when all other disposal options have been eliminated and no conversion into another form or recycling possibilities can be identified. Trade-in conditions (6) A procuring entity may use trade-in as a method of disposal subject to the approval of the tender committee under the following circumstances ; a ) Trade-in may be used where the trade-in of surplus assets offset the purchase price of new items provides a 29
Convenient economic and efficient way of upgrading equipment. b) Not withstanding sub-regulation (i) trade-in shall not be used where it reduces the value for money in a procurement process. c) Trade-in shall not be used where factors other than price have to be taken it o account in the disposal process. Direct negotiations (7) A procuring entity may apply direct negotiations method as a disposal procedure i.e. sale by negotiation by dealing with a single buyer. Conversion or Classification in to another form or recycling condition (8) A procuring entity may use conversion or recycling as a disposal procedure where; (a) assets have no identifiable residual usefulness to the procuring entity and may still have some value that may be obtained through conversion into another for more recycling. (b) on grounds of national security or public interest legal or human rights issues or environment considerations or (c) There is potential for obtaining monetary return from conversion or recycling. Fixed price; a ) A procuring entity may use fixed price sale as a disposal procedure where for some items, best net outcome may be obtained by displaying goods for sale with a market price. In choosing this method, procuring entity may consider: (a) the cost of valuing the assets; (b) wages and other administration costs; (c) the direct and indirect costs of warehousing; (d) the extent to which the procuring entity may be expected to warrant the condition of fixed price sale. (e) the cost of advertising; and(f) the tender committee shall approve the use of this procedure Disposal to employee .etc.
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(1) Pursuant to section 131 of the Act, a disposal to employee, board member and committee of the public entity may be made where- (a) the items are of low value ; (b) there is no likely benefit or financial advantage to a procuring entity, in using any other disposal method (c) where the personal use of disposal of asset would directly benefit the performance of a public officer in the execution of his or her duties within a procuring entity; or (d) the employee is possession of the asset to be disposed is given the first priority to purchase the same (e) Items are in remote locations, where any other method of disposal would be impracticable (f) An employee, board member or committee shall 30
Not be permitted to purchase more than one similar it emunder a single disposal process. (g) An employee, board member or committee involved in initiating the disposal process, valuation or managing the disposal process shall not participate in that particular disposal as a bidder. (2) The disposal process by sale to public officials may be contracted to an independent agent who shall be selected competitively. Procedure for Disposal of employees
(1) Pursuant to Section 131 of the Act, the disposal procedure to employee, board member and committee of the public entity shall be as follows: (a) A bid shall be solicited by the publication of a non-public invitation notice, indicating that a public officer interested in bidding may obtain the tender documents from a procurement unit.(b) A non-public invitation notice shall be displayed on a notice board, and copies circulated through the heads of departments and where possible posted on the entity’s website (c) The advertising period for sale to public officers shall be a least ten days. (d) Disposal documents shall be drafted in accordance with these Regulations and may be sold at the fee prescribed in paragraph 2 of the First Schedule(e) A procuring entity shall request for written sealed bids from public officers. (f) Evaluation for sale to public officers shall be based on price only. (g) A post-bid negotiation shall not be permitted. (h) The award shall be by the tender committee in response to are commendation from the procurement unit. (i)Every disposal to an employee shall be reported promptly to the Authority.
PART XI MISCELLANEOUS
Consultative meetings
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. Pursuant to Section 134 (4) of the Act, the procedure for meetings shall be as follows: (a) the agenda shall be derived from memoranda submitted by the interested persons/ organizations from the private and public sectors on matters related to procurement, that the Director General and Permanent Secretary/Treasury may consider necessary.

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