PROCUREMENT IN THE RHA’S TO COME SOON…
The House of Representatives will soon begin debate on The Regional Health Authorities (Amendment) Bill, 2011.
The following is a brief explanation of some aspects of the Bill
What is procurement?
Procurement can be defined as the process of purchasing goods, works or services at the most economical total cost, while adhering to any specific requirements. Public Procurement is the process of acquiring goods, works or services using public money to accomplish a specified public purpose.
The Procurement process is optimized for benefit of the authority, supplier, or individuals and is usually secured by signing a contract.
Procedure involved in procurement
Procurement procedures can differ depending on the type of product or service being procured.
Usually there are some distinct phases in the whole procedure:
- Project/Service/Supply preparation/maturity period, sometimes including a Prior Information Notice
- Call for bids or Request for proposals
- Request for information, prior to bid
- Bid delivery
- Evaluation of the bid (awarding procedure)
- Contract award
Advantages of Procurement
Visibility of spend
Disadvantages of Procurement
- The Procurement Process at state owned agencies or companies is usually vulnerable to waste, fraud and corruption due to its complexity, the size of the financial flows it generates and the close interaction between the public and the private sectors.
What are the key features of this proposed legislation?
Important issues for consideration:
- The Bill gives authority to the Board of the RHA’s to invite, consider, accept or reject offers, and enter into contracts for the supply of goods or services.
- The Board of the RHA’s will be capable of collectively procuring goods or services.
- Have any steps been taken to ensure that the Regional Health Authorities are adequately staffed by persons properly trained in procurement practices?
- Will there be sufficient oversight and monitoring implemented to prevent corrupt practices?