Effectiveness in Tendering Process
CHAPTER ONE: INTRODUCTION
* Background Of The Study
Tendering is a procurement Procedure whereby potential suppliers are invited to make a firm and unequivocal offer on the price and terms on which they will supply specified goods and/or services, which on acceptance shall be the basis of a subsequent contract. (Lysons and Farrington, 2006). Tendering is based on the principles of competition, fairness and accessibility, transparency, openness and probity.
Generally, Public entities the world over are subjected to open tendering by law so as to prevent fraud, waste corruption or local protectionism. (Global trade negotiations, 18th December 2006). The law guiding Kenyan public entities choice of procurement procedures is the Public Procurement and Disposal Act, 2005. It requires public entities to use open tendering as the choice of procurement procedure and only use an alternative procurement procedure only in times of urgent need. This act of parliament came into operation on the 1st of January 2007 after years of misuse of public funds by procuring entities. It aims to maximize economy and efficiency; to promote the integrity and fairness of procurement procedures; to increase transparency and accountability; and to increase public confidence in procurement procedures. (The Public Procurement and Disposal Act, 2005. Sec 2).
During the evaluation of tenders in public entities, the successful tender is said to be the tender with the lowest evaluated price although the procuring entity is not bound to accept the lowest priced or any tender.
1.1 Problem statement
Public entities are required by law to use open tendering as the choice of procurement procedure. During the evaluation of tenders, the Public Procurement and Disposal Act, 2005 (Sec 66: 4) States that; ‘……the Successful tender shall be the tender with the lowest evaluated price.’ Although this clause was included with the public interest in mind – So as to ensure transparency and accountability
* Background Of The Study
Tendering is a procurement Procedure whereby potential suppliers are invited to make a firm and unequivocal offer on the price and terms on which they will supply specified goods and/or services, which on acceptance shall be the basis of a subsequent contract. (Lysons and Farrington, 2006). Tendering is based on the principles of competition, fairness and accessibility, transparency, openness and probity.
Generally, Public entities the world over are subjected to open tendering by law so as to prevent fraud, waste corruption or local protectionism. (Global trade negotiations, 18th December 2006). The law guiding Kenyan public entities choice of procurement procedures is the Public Procurement and Disposal Act, 2005. It requires public entities to use open tendering as the choice of procurement procedure and only use an alternative procurement procedure only in times of urgent need. This act of parliament came into operation on the 1st of January 2007 after years of misuse of public funds by procuring entities. It aims to maximize economy and efficiency; to promote the integrity and fairness of procurement procedures; to increase transparency and accountability; and to increase public confidence in procurement procedures. (The Public Procurement and Disposal Act, 2005. Sec 2).
During the evaluation of tenders in public entities, the successful tender is said to be the tender with the lowest evaluated price although the procuring entity is not bound to accept the lowest priced or any tender.
1.1 Problem statement
Public entities are required by law to use open tendering as the choice of procurement procedure. During the evaluation of tenders, the Public Procurement and Disposal Act, 2005 (Sec 66: 4) States that; ‘……the Successful tender shall be the tender with the lowest evaluated price.’ Although this clause was included with the public interest in mind – So as to ensure transparency and accountability
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