Procurement

INTRODUCTION
The Procurement Department  carries out its functions in line with the Public  Procurement Act, 2007 (PPA, 2007)  and the Financial Regulations as revised up to 1st January, 2009 for the purpose of Eliminating contract inflation, project abandonment and non-execution and frivolous expenditure

• Getting value for money is the fundamental premise of public expenditure
• Fighting corruption
• Improving plan-budget linkage
• Ensuring proper technical and financial preparation of projects
• Introducing transparency and competition into tendering and bidding processes for contracts (advertisement in newspapers, publication in tenders journals and websites of Government Agencies)

The Public Procurement Act, 2007 provides the principles, supervisory and operational structures, as well as the scope, process, methods, complaint mechanism, code of conduct and offences relating to Procurement of goods, works and services and disposal of assets at the Federal level in Nigeria for all entities outside the foregoing description which derive at least 35% of the funds appropriated or proposed to be appropriated for any type of procurement described in the PPA, 2007  from the Federation share of Consolidated Revenue Fund.

VISION STATEMENT
Building and Sustaining an Efficient Procurement  System in line with the PPA, 2007.

MISSION STATEMENT
To professionalize the process of Procurement that ensures Transparency, Efficiency, Competition, Integrity and Value for Money to support National Growth and Development.

MANDATE
To Coordinate all procurement processes in the Federal Ministry  of Labour and Employment and its Agencies

FUNCTIONS
The Procurement Department shall:

Prepare the needs assessment and evaluation of the Ministry’s Procurement;

• Identify the goods, works or services required;
• Prepare Procurement Plan for the Ministry of Labour & Employment
• Advertise and solicit for bids in compliance with the Public Procurement Act, 2007.
• Receive and keep appropriate documentation for bids received, examine bids received, coordinate the  analysis and evaluation of bids received and:

1. Make submissions to the Permanent Secretary for Contracts within Permanent Secretary’s Threshold
2. Make submissions to the Ministry’s Tenders’ Board (MTB)  for Contracts   within MTB Threshold
3. Obtain Certificate of ‘No Objection’ to Contract Award from the Bureau of Public Procurement, and make submissions to the Federal Ministry of Labour and Employment (FML&E)’s Tenders’ Board and Federal Executive Council (FEC) for Contracts above MTB’s threshold.
   1. Debrief the bid losers on request.
   2. Resolve complaints and disputes, if any.
   3. Obtain and confirm the validity of any performance guarantee.
   4. Announce and publicize Contract Awards.
   5. Execute all Contract Agreements.
   6. Disposal of  un-serviceable/serviceable items/plants/vehicles
   7. Conduct Price Intelligence / Market Survey
   8. Secretariat to the Ministerial Tenders Board / Procurement Planning Committee / Board of Survey
   9. Holds regular meetings  with Heads of  Department/Unit in FML&E ‘s Parastatals
   10. Conduct Post Procurement Audit of all procurements of  the FML&E
   11. Monitor Due  Process Compliance in the FML&E.

STRUCTURE OF THE DEPARTMENT

STAKEHOLDERS AND CLIENTS OF THE DEPARTMENT

• Departments/Units in the Ministry of Labour & Employment
• Contractors/Suppliers
• FML&E Agencies – National Directorate of Employment (NDE), Nigeria Social Insurance Trust Fund (NSITF), National Productivity Centre (NPC), Michael Imoudu National Institute for Labour Studies (MINILS), Industrial Arbitration Panel (IAP)
• Bureau of Public Procurement (BPP)
• National Assembly
• Industrial Training Fund (ITF)
• National Pension Commission (PENCOM)
• Federal Inland Revenue Service (FIRS)
• Corporate Affairs Commission (CAC)
• Financial Reporting Council of Nigeria (FRCN)
•  Civil Society Organisations ( CSOs)

CLIENT EXPECTATIONS
Conduct of the Ministry’s staff in matters involving the procurement and disposal of public assets shall be governed by principles of accountability, transparency, fairness, equity and professionalism.

• Maintain the highest standard of ethical conduct in dealing with Contractors and suppliers :
• Ensure adequate time is given for planning
• Shall divest themselves of any interest or relationships which are actually inimical or detrimental to the best interest  of government and underlying principles of PPA, 2007
• All contractors, suppliers and their staff shall be dealt with in an equitable and business-like manner.
• Compliance with the PPA, 2007
• Compliance with Contractual Obligations
• Maintain Accurate Records
• Must not Abuse their Office
• Must Declare Conflict of Interest

CLIENT OBLIGATIONS
All bidders in addition to requirements contained in any solicitation document shall: (a)    possess the necessary; professional and technical qualifications to carry out particular procurements, financial capability, equipment and other relevant infrastructure and shall have adequate personnel to perform the obligations of the procurement contracts.

• Possess the legal capacity to enter into the procurement contract;
• not be in receivership, the subject of any form of insolvency or bankruptcy proceedings or the subject of any form of winding up petition or proceedings;
• have fulfilled all its obligations to pay taxes, pensions and social security contributions;
• not have any director who has been convicted in any country for any criminal offence relating to fraud or financial impropriety or criminal misrepresentation or falsification of facts relating to any matter;
• accompany every bid with an affidavit disclosing whether or not any officer of the relevant committees of the procurement entity or Bureau is a former or present director, shareholder or has any pecuniary interest in the bidder and confirm that all information presented in its bid is true and correct in all particulars.

REDRESS MECHANISM

COMPLAINT PROCEDURE UNDER THE PUBLIC PROCUREMENT ACT, 2007
THE NINE (9) STEPS
Where any Contractor/Consultant/MDA is not pleased with the outcome of any procurement proceedings either because of a perceived breach or omission of the provisions of the Public Procurement Act, 2007, he shall:

Step 1: Make a formal and written complaint to the Permanent Secretary of Labour within fifteen (15) working days from when he became aware of the breach or omission.

Step 2: The Permanent Secretary shall review the complaint and communicate his decision on the matter to the complainant within fifteen (15) working days. He shall give reasons for his decision and the corrective measures to be taken where necessary.

Step 3: If the Permanent Secretary fails to decide within the given period or the complainant is not satisfied with his decision, the Act allows the complainant to forward his complaint to the Bureau within ten (10) working days from the date that decision was communicated to him.

Step 4: Upon receiving the complaint, the Bureau shall:

• Notify the Ministry of the complaint and
• Suspend any further action by the Ministry until the matter is settled

Step 5: Unless the Bureau dismisses the complaint, it shall further

• Prohibit the Ministry from taking further action,
• Nullify part or all of the unlawful acts or decision of the Ministry,
• Declare or make known the rules and principles governing the subject matter of the complaint, and
• Reverse any improper decision by the Ministry or substitute its own decision for the improper one.

Step 6: The Bureau shall notify all interested bidders of the complaint before taking any decision on the matter and may consider representations from the bidders and the Ministry.

Step 7: The Bureau shall make its own decision within twenty one (21) working days after receiving the complaint and shall give the reasons for its decision and the remedies granted if any.

Step 8: If the Bureau fails to make its decision within the given time or if the complainant is not satisfied with the Bureau’s decision, the complainant may appeal to the Federal High Court within 30 days after receipt of the Bureau’s decision or the expiration of the time specified for the Bureau to make a decision.

Step 9: The decision of the Federal High Court shall be final on the matter and no further appeals shall lie.

All Contractors/Consultants/MDAs are advised to strictly follow the above steps in seeking redress in any procurement process.