Journals of Regulatory Frame Work in Malawi: Book 1

By Kingstone Ngwira

This journal has examined a contemporary picture of the major aspects of employment practices (laws, government policies, employee rights), organizing my approach around the major themes of employment practices, the regulatory framework, and government policies, and employee rights of the employee practices landscape have been reviewed, while scope has existed to explore new influences on the employment practices in Malawi.

• Language: English
• Publisher: AuthorHouse
• Release date: Jan 8, 2016
• ISBN: 9781504969673

Kingstone Ngwira

Prof. Kingstone P. Ngwira and author of international bestselling books: Doing business Gods Way; Quality Insurance for Higher Education Institutions in Malawi and the Road to Entrepreneurship is an Apostle by calling is an insightful teacher, motivational speaker, the President and Senior Pastor of Pentecostal Life Church International (PLCI) with a network of churches in Malawi and other parts of Africa. He has a God given mandate, To raise a generation that will serve God with excellence and empower them to do exploits to their word. As an educationalist, his mission currently pioneers the establishment of educational institutions of higher learning such as Exploits University (EU) and Pentecostal Life University (PLU) in Malawi where he serves as the chancellor. Additionally, Prof. Kingstone P. Ngwira is founder/Chairman for Pentecostal Live Radio and Tv Stations where he hosts programs, Radio and TV Pulpit, Business Coach and Christian Talk Point. He is blessed with two children; Pastor Prince and Gift and married to Pastor Shannira who is the Chief Executive Officer for Dominion Foundation Limited (DFL).

Book preview

JOURNALS OF

REGULATORY FRAME

WORK IN MALAWI

Book 1

Kingstone Ngwira

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©

2016 Kingstone Ngwira. All rights reserved.

No part of this book may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.

Published by AuthorHouse 01/05/2016

ISBN: 978-1-5049-6968-0 (sc)

ISBN: 978-1-5049-6966-6 (hc)

ISBN: 978-1-5049-6967-3 (e)

Library of Congress Control Number: 2015921381

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Because of the dynamic nature of the Internet, any web addresses or links contained in this book may have changed since publication and may no longer be valid. The views expressed in this work are solely those of the author and do not necessarily reflect the views of the publisher, and the publisher hereby disclaims any responsibility for them.

Contents

Abstract

Introduction

Pre - Qualification Criteria

Types Of Sbds

Journal Of The Rule Of Public Procurement In Malawi

Journal Of Taxation Law In Malawi

Journal Of Role Of Anti-Corruption Bureau (Acb) In Malawi

The Journal Of Employment Practices In Malawi

Journal Of Evaluation Of Bids For Public Procurement Entities In Malawi

The Journal Of Skills You Need To Start Or Grow A Successful Business

Preparation In Getting The Basics Right For Starting A Great Successful Business

Conclusion

JOURNAL OF PREPARING STANDARD BID DOCUMENTS (SBDS) FOR GOODS WORKS AND ROUTINE SERVICES FOR

PUBLIC PROCUREMENT ENTITIES IN MALAWI

Abstract

This article is designed to assist public procurement personnel to understand procedures for Preparing Standard Bid Documents (SBDs) for goods, works and routine services in public procurement entities. It must be read in conjunction with the relevant procurement hand books for the particular procurement methodology The purpose of the preparation of bids is to equip the Public Procurement Personnel with knowledge and skills in preparation of the Bidding Documents for the procurement of goods, works and services. According to Desk Instructions for Public Procurement According to Desk Instructions for Public Procurement (2004) the Director of Public Procurement issues standard bidding documents and forms to provide working documents for the implementation of public procurement of activities such as preparation of bids. The standard documents are intended to provide standard drafts for documents and records, which are compliant with the rules and procedures contained in the Procurement Act 2003 and include the basic contractual provisions of public procurement and the use of public funds. It is envisaged that this document will simplify the preparation of bids process and minimize the time required to evaluate the bids.

Introduction

This article presents the principles and concepts that govern the preparation of bids. The principles and concepts discussed in this document are designed to be simple to use and understand by breaking the preparation of bids process down into a series of procedures. However, the overall responsibility for the preparation of bids lies with the Internal Procurement Committee (IPC). The prepa- ration of bids is normally done by the PU under the chairmanship of an IPC member. The IPC normally delegates the preparation of bids to an ad hoc committee to avoid a situation where it ap- proves its own recommendations. According to Desk Instructions for Public Procurement (2004) the Director of Public Procurement issues standard bidding documents and forms to provide working documents for the implementation of public procurement of activities such as preparation of bids. Additionally, the standard documents are intended to provide standard drafts for documents and records, which are compliant with the rules and procedures contained in the Procurement Act 2003 and include the basic contractual provisions of public procurement and the use of public funds. It is envisaged that this document will simplify the preparation of bids process and minimize the time required to evaluate the bids.

Pre - Qualification Criteria

According to Desk Instructions For Public Procurement (2004) the criteria, a supplier must meet in order to be allowed to participate in a tender include: pre - professional qualifications, must have previous experience, professional capacity, financial capacity. The pre - qualification is done before the actual tender is being launched.

Nature of Standard Bidding Documents

Scope of a Standard Bidding Documents (SBDs)

SBDs are draft tender solicitation documents or any other documents for solicitation of proposals, offers or quotations. These are issued by the Director of Public Procurement from time to time.

Purpose of the Standard Bidding Documents

The purpose of the SBDs is to provide one standard draft containing basic contractual provisions and safeguards which are required by the government of the Republic of Malawi in the execution of public procurement. To this end a key feature of the SBDs is that they can be used with mini- mum changes and do not contain explanations footnotes or examples.

Selecting the appropriate Standard Bidding Document

Types of Procurement

Goods

The Public Procurement Act (2003) defines goods as objects of every kind and description, including raw materials, products and equipment, and objects in solid, liquid or gaseous form, and electricity, as well as services incidental to the supply of the goods if the value of those incidental services does not exceed the value of the goods themselves. The default method for procurement of goods is open tender. However, a PE may use other methods if the prevailing circumstances do not allow use of the open tender method, upon justifying the use of such other methods and obtaining the prior approval of Office of the Director of Public Procurement (ODPP). The other methods include: Restricted tender; Two Stage Tender; Request for Quotations; and single sourcing.

There are four documents that a Procurement Entity (PE) can use in the procurement of goods, namely; International Competitive Bidding when the estimated value is above K100.m threshold; National Competitive Bidding when the estimated value is between K3.0m and K100.m; Plant, Vehicle and equipment; Request for Quotations when the estimated value is below K3.0m. However, it should be noted that these thresholds are issued by the ODPP from time to time. Like other bid- ding documents, the SBD has nine (9) sections, namely; Instructions to Bidders; Bid Data Sheet; Evaluation and Qualification Criteria; Bidding Forms; Eligible Countries; Schedule of Requirements; General Conditions of Contract; Special Conditions of Contract and Contract.

The Statement of requirements must be prepared by Requisitioning Unit or technical specialist familiar with the subject of procurement. Specifications must be: clear; as simple as possible; precise and complete; without ambiguity; contradictions (consistent); described as the minimum required characteristics, functionalities and/or output; generic; quantifiable and measurable; use pictures or drawings, wherever possible and avoid use of adjectives.

In procurement of goods there are common problems with specifications. For example writing specifications around a particular (usually known) item, looking for a custom-built item when acceptable standard items are available, specifying something that doesn’t exist in the marketplace, or which is difficult to source and over-specifying which involves unnecessarily tight tolerances, or extra functions which aren’t necessary.

The evaluation of goods tenders starts preliminary screening. This stage is followed by detailed evaluation of substantially responsive bids. Sample criteria for conducting detailed evaluation include: compliance with technical specifications which compares the offered specs against those stated in the BD, delivery period, compliance with payment terms and completion schedule for related services. Lastly, the User Department and the PU are responsible for managing the contract. Each of the two stakeholders has a specific role to play in administering the contract. Amongst the issues in contract administration are: inspection; acceptance; payments; contract amendment; dispute handling; contract termination and records management.

□ Works

The PPA defines works as all work associated with the construction, rehabilitation, demolition, maintenance or renovation of a building or structure, including site preparation, excavation, erection, building, installation of equipment or materials, decoration finishing, as well as services incidental to construction such as drilling, mapping, satellite photography, seismic investigation and similar services provided pursuant to a procurement contract, if the value of those services does not exceed the value of the construction itself.

The default method for procurement of works is open tender. However, a PE may use other methods if the prevailing circumstances do not allow use of the open tender method, upon justifying the use of such other methods and obtaining the prior approval of ODPP. The other methods include:

Restricted tender; Two Stage Tender; Request for Quotations; and Single Sourcing.

There are four documents that a PE can use in the procurement of works, namely; International Competitive Bidding when the estimated value is above K1.0 billion threshold; National Competitive Bidding when the estimated value is between K20.0m and K1.0bn; Minor Works when the estimated value is between K5.0m and K20.0m; and Request for Quotations when the estimated value is below K5.0m. These thresholds are issued by the ODPP from time to time.

Like other bidding documents, the SBD has nine (9) sections, namely; Instructions to Bidders; Bid Data Sheet; Evaluation and Qualification Criteria; Bidding Forms; Eligible Countries; Schedule of Requirements; General Conditions of Contract; Special Conditions of Contract and Contract. There tree types of works contracts. These are Lump Sum (all-inclusive Price; Unit Rate (paid against measured work) and Cost plus (paid against constituent inputs which comprises Fixed fee, Percentage fee and Variable (incentive) fee.

Desk Instructions for Public Procurement (2004) points out that the lump sum uses small, well- defined works/ building of short duration. Additionally, Lump-sum has the following advantages: fixed sum for budgeting; easy to administer, little/No measurement; less documentation. However, the lump sum method has inflexible to changes as well as high risk. The Schedule of requirements for procurement of works must be prepared by an engineer or technician familiar with the subject of procurement. It must comprise: the scope of works; technical specifications; drawings; and bills of quantities (or Activity Schedule).

□ Services

Consultancy Services are activities of an intellectual and advisory nature that do not lead to a measurable physical output. They include design, supervision, training, auditing, software development and studies. Entities normally procure consultancy services when they experience capacity constraints. Consultancy Services are procured through the Request for Proposals method. {Section 30 (7) of the PPA}.

The RFP document is only served to short-listed consultants. For purposes of establishing a short list, a PE may either float an Expression of Interest (EoI) or do so directly (with prior approval of IPC and ODPP. The first stage in procurement of Consultancy Services is seeking Expressions of Interest (EoI) from consultants (firms) through a newspaper advertisement.

The purpose of an EoI is to come up with a shortlist of consultants (firms) that look capable of performing the assignment. Consultants must be given at least fourteen (14) days to express their i006Eterest. PEs must assess the EoIs on pass or fail basis and must come up with a shortlist of between three