SOP Procurement

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Document Title:
STANDARD OPERATING PROCEDURE FOR PURCHASING
CHUKA UNIVERSITY
Standard Operating Procedure
For
Purchasing
(CU/SOP/PROD/25)
Document Review Sheet

The signatures below certify that this Standard Operating Procedure has been reviewed and
accepted, and demonstrate that the signatories are aware of all the requirements contained herein
and are committed to ensuring their provision.
Name & Signature
Position
Date
Prepared by
Ms. R. Nzovila
Senior Procurement Assistant
25.6.2012
Reviewed by
Prof. D. K. Isutsa
Deputy Vice-Chancellor (AA)/MR
01.3.2013
Approved by
Prof. E. N. Njoka
Vice-Chancellor
25.3.2013
Controlled Copy: Circulation Authorized by Management Representative
Page 1 of 22
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CONTENTS
COVER PAGE...........................................................................................................................
1
DOCUMENT REVIEW SHEET............... 1
CONTENTS...............................................................................................................................
2
1.0
AMENDMENT RECORD SHEET..............................................................................
3
2.0
GENERAL......................................................................................................................
4
2.1
Purpose.................
4
2.2
Scope....................
4
2.3
References...... 4
2.4
Definitions....................................
4
2.5
Abbreviations.......................................................................................................
4
2.6
Responsibility....................................................................................................... 5
3.0
ADMINISTRATIVE STRUCTURE............................................................................
5
4.0
PROCESSES................................................................................................................
7
4.1
Overview...........................................................................................................
7
4.2
Process for Acquisition of Goods, Services and Works
7
(a) Activities for open tendering. 7
(b) Activities for request for quotation.. 8
(c) Activities for request for proposal.......... 9
(d) Activities for direct procurement... 9
(e) Activities for low-value procurements.. 9
4.3.
Process for Receiving of Goods, Services and Works.... 9
(a) Activities for inspection and acceptance/rejection. 9
(b) Activities for storage.... 9
(c) Activities for issuing goods to users....
9
(d) Activities for raising GRNs...
9
4.4.
Process for Disposal of Stores and Equipment..... 9
4.5.
Process for Preparation of the Annual Procurement Plan.. 11
4.6.
Process for Preparation of Supplementary Annual Procurement Plan. 12
5.0
RECORDS........................................................................................................................ 12
6.0
KEY PERFORMANCE INDICATORS/OBJECTIVES.............................................. 12
APPENDIX I: THRESHOLD MATRIXES...........................................................................
14
APPENDIXII: PROCESS MAPS 16
APPENDIX III: CRITERIA FOR PRE-QUALIFICATION AND RE-EVALUATION OF
SUPPLIERS...............................
20
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1.0 AMENDMENT RECORD SHEET

This Standard Operating Procedure is reviewed regularly to ensure relevance to the systems and
process that it defines. A record of contextual additions or omissions is given below.
DATE
1.3. 13
ISSUE
NO.
02
REVISION
NO.
00
PAGE
NO.
ALL
1.3. 13
02
00
ALL
1.3. 13
02
00
ALL
SUBJECT OF REVIEW
/MODIFICATION
Changed Quality Management
Representative
to
Management Representative
Changed Deputy Principal to
Deputy Vice-Chancellor
Changed
procedures
to
processes
REVISED
BY HOD
R. Nzovila
APPROVED
BY MR
Prof. Isutsa
R. Nzovila
Prof. Isutsa
R. Nzovila
Prof. Isutsa
Page 3 of 22
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2.0 GENERAL
2.1 Purpose
The purpose of this procedure is to ensure that all the Procurement activities are managed
effectively to ensure compliance with this International Standard, the Chuka Universitys and the
governments statutory policies, procedures and regulations.
2.2 Scope
This procedure applies to and defines all activities carried out by the Procurement Department.
2.3 References
Codes of Conduct for Public Universities, 2003
CU Charter, 2013
CU quality Manual
CU Service Charter
CU Statutes 2013
Egerton University Act, 1987
ISO 9001: 2008 Standard Clauses 7.2, 7.4, 7.5, 8.0
PPOA Procurement Manual, 2006
Procurement and Disposal Act, 2005
Procurement and Disposal Regulation, 2006
Public Officers Ethics Act, 2003
2.4 List of abbreviations
COD
=
Chairman of Department
D/N
=
Delivery Note
DVC (AFP) =
Deputy Vice-Chancellor (Administration, Finance & Planning).
EOI
=
Expression of Interest
GRN
=
Goods Receipt Note
ICT
=
Information, Communication and Technology
LPO
=
Local Purchase Order
LSO
=
Local Service Order
PPDA
Public Procurement and Disposal Act, 2005
PPDR
=
Public Procurement and Disposal Regulation, 2006
PPDGM
=
Public Procurement and Disposal General Manual
PPOA
=
Public Procurement Oversight Authority
PC
=
Procurement Committee
2.5 Definition of Terms
Accounting Officer: Head/CEO of an institution, such as the Vice-Chancellor of a
Asset:
Refers to movable and immovable property tangible and intangible
including immovable.
Authority:
Refers to the Public Procurement Oversight Authority
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Bidder:
Disposal:
A candidate who submits a tender to a procuring entity.

Divestiture of the public assets, including intellectual and proprietary
rights and goodwill and other rights of a procuring entity by means
including sale, rental, lease franchise, auction or any combination
Disposal of Stores and Equipment: This relates to disposal of stores and equipment of a public
entity that are unserviceable, obsolete or surplus.
Goods:
Includes raw materials, things in liquids or gas form electricity and
services that are incidental to the supply of goods
Services:
Any objects of procurement or disposal other goods and works and
includes professional, non-professional and commercial types of services
as well as goods and services which incidentals are to but not exceeding
the value of those service.
Works:
Means construction, repair or demolition of building, roads or structures
and includes: Installation of equipment and materials; Site preparation
and; Other incidental services
Procurement:
The acquisition by purchase, rental, lease, hire purchase, license, tenancy,
franchise, or by any other contractual means of any type of works, assets,
services or goods including livestock or any combination
Procurement Cycle: The cycle that starts with the initiation of the process of an individual
procurement requirement and when the goods, works, services have been
delivered and accepted
Procuring en Monetary resources appropriated to procuring entity through Government funds,
including aid grants and credits, put at the Disposal of procuring entity by
foreign donors, and revenues of Procuring entities
Procurement Liaison Officers: Staff appointed by HODs to coordinate procurement issues
related to their departments.
Procurement Plan:
The document prepared annually by each procuring entity, to plan all
procurement requirements necessary to perform the activity plan of the
procuring entity
Regulation:
Means regulations made under Public Procurement and Disposal Act
The Act:
Refers to Public Procurement and Disposal Act, 2005
The Regulations:
Refers to Public Procurement and Disposal Regulations, 2006
Urgent need:
The need for goods, works or services in circumstances where there is an
imminent or actual threat to public health, welfare, safety, or of damage to
property, such that engaging in tendering proceedings or other
procurement methods would not be practicable.
User Department:
A University Department that forwards its needs to Procurement
Department for purchase, and disposal
2.6 Responsibility
The Chief Procurement Officer has the primary responsibility of ensuring that these processes
are implemented and remain adequate for their intended purpose. The Chief Procurement Officer
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also has the primary responsibility for providing the information from which documentation of
the processes and activities can be compiled and for initiating action to keep them up to date.
However, all departmental staff members are responsible for implementing and ensuring that
these procedures are followed.
3.0 ADMINISTRATIVE STRUCTURE
The current administrative structure for the Procurement Department is as follows:
Vice-Chancellor
Chief Procurement and

Senior Procurement Officer (Vacant)
Procurement Officer
Senior Procurement Assistants
Procurement Assistants
Procurement Clerks/Store Clerks
Secretary
Messengers/cleaners
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4.0 PROCESSES
4.1 Overview
The Procurement Department is responsible for the activities related to acquisition of goods and
services in the University. The core activities of the department include:
(i)
Acquisition of goods, services and works through tenders or quotations
(ii)
Receiving of goods
(iii) Storage of goods
(iv)
Issuing of goods
(v)
Disposal of goods
(vi)
Prequalification of suppliers
4.2 Process for Acquisition of Goods, Services and Works
The Procurement Officer processes acquisition of goods using either:
(a) Activities for open tendering process
(b) Activities for restricted tendering
(c) Activities for request for quotation
(d) Activities for request for proposal
(e) Activities for direct procurement, or
(f) Activities for low-value procurement
(a)
Activities for Open Tendering

(i)
The user identifies the need.
(ii)
The user prepares detailed specification to show item description, quantity and unit of
purchase, other factors such as guarantee and after sale service, lead time and samples
provision if helpful.
(iii) The user seeks authority for purchase from the Vice-Chancellor or the DVC (A, F&P)
(iv)
Approval for purchase is received by Procurement Department.
(v)
The Procurement Officer makes tender documents based on particular specifications.
(a) This includes an invitation to tender which sets out the following: The name and
address of the procuring entity;
(b) A tender number is assigned to procurement proceeding by the procurement entity;
(c) A brief description of the goods works or services being procured including time limit
for delivery or completion;
(d) An explanation of acquisition of tender documents, including the amount of ant fee;
(e) An explanation of where and when tender shall be submitted and where and when the
tenders will be opened; and
(f) A statement that those submitting tenders or their representatives may attend the
tender opening of bids.
(vi)
The Procurement Officer advertises tenders in two nationally circulated local dailies.
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(vii)
Interested bidders purchase the tender documents, return and the Tenders are opened
after 21 days from the date of advertisement.
(viii) Tenders are opened immediately after the 21-days closing time by Tender Opening
Committee in the presence of the bidders representatives
(a) The Tender Opening Committee is appointed by the CEO.
(ix)
The Tender Opening Committee prepares the Tender opening minutes, which are
duly signed by all the Tender Opening Members.
(x)
The Tender Opening Committee forwards the Tender documents to the Tender
Evaluation Committee appointed by the CEO for evaluation following the criteria set
out in the tender specification document.
(xi)
The Evaluation Committee evaluates the Tender documents within 30 days from the
date of opening as per the criteria shown in Appendix III and prepares a report.
(a) All the Evaluation Committee members sign the tender evaluation report and
submit to the Procurement Officer.
(xii) Procurement Officer calls the Tender Committee to meet for approval of Tender
award.
(xiii) The Tender Committee meets with the DVC (AFP) and approves or rejects to
approve the Tender with reasons and minutes of the meeting are prepared.
(xiv) The CEO issues award or regret letters to the respective bidders in 7 days.
(xv) If the entire tender is rejected (no bidder wins) the Tender document are submitted
back to Procurement Officer for further action.
(b) Activities for request for quotation
(i)
The user identifies the need for goods, works or services.
(ii)
(iii) The user seeks authority to purchase from the Vice-Chancellor or the DVC (A, F&P).
(iv)
(v)
The Procurement Officer prepares quotations containing specifications provided by
the user and an explanation of where and when quotations must be submitted.
(vi)
The Procurement Officer sends the quotations to at least three prequalified bidders.
(vii) After the indicated closing date, quotations are opened in the presence of the user,
Internal Auditor and Procurement Officer.
(viii) The Team prepares quotation opening minutes.
(ix)
The Secretary to Procurement Committee calls a meeting to process the quotations
and prepares minutes, which are submitted to the Procurement Department.
(x)
The Procurement Officer prepares LPO/LSO to the winning bidder.
(xi)
The LPO/LSO is submitted to the DVC (A, F& P) for signing.
(xii) The LPO/LSO is checked by the Internal Auditor.
(xiii) One copy is submitted to the supplier.
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(c) Activities for request for proposal

A procuring entity may use request for proposal if:
The procurement is of services or a combination of goods and services; and
The services are of advisory or otherwise of predominately intellectual nature.
(i)
User identifies need.
(ii)
User prepares terms of references.
(iii) User seeks authority to procure from Vice-Chancellor or the DVC (A, F&P)
(iv)
Approval to procure is received by Procurement Department
(v)
A procuring Officer prepares a notice inviting Expression of Interest (EOI).
(vi)
Expression of Interest (EOI) is advertised in two nationally circulated local dailies.
(vii) Interested Bidders submit bid documents within 21 days from date of advertisement.
(viii) Expression of Interest (EOI) documents are opened immediately after the closing
time by Tender Opening Committee appointed by the CEO or Procurement Officer.
(ix)
Opening minutes are prepared and duly signed by all the tender Opening Members.
(x)
Evaluation Committee examines each of the expressions of interest to determine their
competencies. Qualified bidders are invited to submit their Technical proposals and
financial Proposals.
(xi)
Prequalified Bidders submit their Technical and Financial proposals.
(xii) Proposals are opened immediately after the closing time by Tender Opening
Committee appointed by the CEO.
(xiii) Opening minutes are prepared and duly signed by all the Tender Opening Members.
(xiv) Proposals are evaluated by the tender evaluation Committee.
(xv) Evaluation report is duly signed by all the members in the Evaluation Committee and
submitted to the Procurement Department.
(xvi) Procurement Officer convenes a Tender Committee for approval of award.
(xvii) Tender Committee meets and approves or rejects the award with reasons.
(xviii) The Procurement Officer prepares award and regret letters signed by the CEO.
(xix) After the appeals period (14days from the date of award) the winning bidder is invited
for contract signing with the Vice-Chancellor.
(d)
Activities for direct procurement

(iii) The user seeks authority to purchase from the Vice-Chancellor or the DVC (A, F&P).
(iv)
(v)
An LPO is raised and duly signed by the Procurement Officer and either the Deputy
Vice-Chancellor (A, F&P) or the Vice-Chancellor.
(vi)
Procurement Officer sends LPO to the supplier.
(vii) The supplier delivers goods.
(i)
(ii)
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(e)
Activities for low-value procurement

(iii) The user seeks Approval for purchase from the Vice-Chancellor or DVC (A, F&P).
(iv)
Approval for purchase is received by Procurement Department
(v)
The Procurement Officer purchases.
(vi)
Goods are delivered at the University.
(i)
(ii)
4.3. Processes for Receiving of Goods, Services and Works

(a) Activities for inspection and acceptance/rejection
(i)
Supplier delivers goods to the stores
(ii)
Inspection Committee is convened by the stores clerk
(iii) Inspection Committee inspects goods
(iv)
If the goods meet specifications, they are accepted; otherwise they are rejected and
returned to the supplier.
(b) Activities for storage
(i)
After acceptance, the Procurement Officer arranges delivery of items to respective
stores accompanied with the delivery documents.
(ii)
The Store Clerk arranges direct order with tags on them, prepares Stores Issue Note
and Document replacement sheet and waits for the user to collect items.
(iii) For pool items, the Stores Clerk posts the goods in their respective Bin Cards, and
the Bin Card Number is indicated in each document.
(iv)
For direct items (departmental purchase) the respective Issue Note Number is
indicated on each item and every document, i.e., LPOs copy, Delivery Note, Invoice
or cash sale.
(v)
The Store Clerk then waits for the user to come and collect the items.
(c) Activities for issuing goods to users
(i)
When the user arrives for collection, the Store Clerk offloads the respective items
from the respective store.
(ii)
The user inspects, counts and checks for quality before signing the Stores Issue Note.
(a) Stores Issue Notes are prepared according to the Category of the item codes, e.g.,
Stationery Issue Note, Cleaning Material Issue Note, Hardware & Electrical, Food
Stuff, Staff Uniform, Fixed Assets or Teaching Materials, etc.
(iii) The Store Clerk prepares the Store Issue Notes in triplicate, where the original goes
with the goods to the User for record; the pink copy goes to Asset Finance, if for
fixed Asset; and the Green is the master book copy for Store reference.
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(d) Activities for raising GRNs

(i)
Goods are delivered and the Officer In-Charge raises the GRN which is in triplicate.
(ii)
The Officer In-Charge of Central Stores certifies and endorses the Stores LPOs copy,
Delivery Note, and Invoice/Credit Note.
(iii) The Officer In-Charge detaches the GRNs, LPOs, Stores copy from the documents
and files them.
4.4. Process for Disposal of Stores and Equipment
(i)
The VC appoints the Disposal Committee to make recommendation on the best
method of disposing of unserviceable, obsolete or surplus stores or equipment.
(ii)
The employee in-charge of unserviceable, obsolete or surplus stores or equipment
brings the matter to the attention of the Disposal Committee.
(iii) The Disposal Committee recommends to the Vice-Chancellor a method of disposing
of the stores and equipment which may include any of the following:
(a) Transfer to another public entity with or without financial adjustment;
(b) Sale by public tender;
(c) Sale by public auction; or
(d) Destruction, dumping or burying;
(e) Trade-in/Exchange.
(iv)
The Vice-Chancellor gives the Committee a written notice on acceptance or rejection
of the recommendations of the Committee.
(v)
If the Vice-Chancellor acceptable, the stores and equipment are disposed in
accordance with the recommendations.
(vi)
If not acceptable, the Vice-Chancellor writes back to the Committee, giving reasons
for rejecting, and refers back the matter to the Committee for further consideration.
The University may dispose unserviceable, obsolete or surplus stores and equipment
to an employee or a member of a board or committee of the public institution where:
(a) The time and cost required would be disproportionate to the unserviceable,
obsolete or surplus stores and equipment to be disposed.
(b) The employee who is in possession of the stores or equipment to be disposed and
may be given the first priority to purchase the same.
(c) All HODs are required to surrender all unserviceable, obsolete or surplus stores
and equipment in their custody to Central Stores for disposal.
4.5. Process for Preparation of the Annual Procurement Plan
(i) The DVC (A, F & P) requests the user departments in writing to submit their annual
Procurement Plan to Procurement Department.
(ii) User Departments prepare and submit to procurement Department a list of the goods,
works or services required within a financial year.
(iii) The Procurement Officer consolidates all the user requirements into Annual Procurement
Plan.
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(iv)
(v)
(vi)
The Procurement Officer submits the consolidated Annual Procurement Plan to Tender
Committee for review and recommendations to the CEO/Vice-Chancellor for approval.
In the case where the Tender Committee does not recommend the consolidated Annual
Procurement Plan for approval, the Committee gives the reasons for rejecting in writing.
Once the CEO/Vice-Chancellor has approved the consolidated Annual Procurement Plan,
the Procurement Officer organizes for purchase.
4.6. Process for Preparation of Supplementary Annual Procurement Plan

(i) User Departments prepare and submit to Procurement Department a list of the goods,
works or services that were required within the Financial Year but were omitted in the
Annual Procurement Plan.
(ii) User Departments in their submission give reasons in writing to justify the need for
supplementary Procurement Plan.
(iii) The Procurement Officer consolidates the requirements into a supplementary Annual
Procurement Plan.
(iv) The Procurement Officer submits the supplementary Annual Procurement Plan to Tender
Committee, indicating the reason for the unforeseen requirements as provided by the user
Department.
(v)
The Tender Committee review and make recommendation to the CEO/Vice-Chancellor
for approval.
(vi) In the case where the Tender Committee does not recommend the approval of the
supplementary Annual Procurement Plan, the Committee gives the reasons for rejecting
in writing.
(vii) Once the CEO/Vice-Chancellor has approved the supplementary Annual Procurement
Plan, it is annexed to the Annual procurement Plan.
(viii) The Procurement Officer organizes for purchase.
4
RECORDS
Tender Opening Minutes
Tender Evaluations Reports
Tender Committee Minutes of Award
Procurement Committee Minutes of Quotation Approval
Goods Received Notes
Issue Notes
Delivery Notes
Goods Return Notes
Copy of LPOs
Goods Inspection Reports
PERFORMANCE INDICATORS/OBJECTIVES
(a) Indicators
(i)
Number of items purchased per year.
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(ii)
(iii)
Number of Projects awarded per year.

Number of Projects completed per
(b) Objectives
(i)
To prepare quotations to pre-qualified suppliers and open them within seven (7) days.
(ii)
To ensure that tenders are evaluated within 30 days from the date of Tender Opening.
(iii) To process and approve local purchase order within three (3) days after receiving a
committed requisition from the user Department.
(iv)
To inform users to collect their goods one day after Inspection and Acceptance
Committee have inspected the goods and inspection report prepared.
(v)
To process Goods Received Note within 2 days after Inspection & Acceptance of the
purchased goods.
(vi)
To carry out disposal of obsolete, obsolescence, idle and surplus goods once a year.
(vii) To forward suppliers payment document to Finance three days after receive of
inspection and acceptance report.
(viii) To ensure that an LPO is processed within thirty (30) days after receipt of approved
request from the DVC (AFP).
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APPENDIX I: THRESHOLD MATRICES

a) Open Tendering
(i)
(ii)
Procurement
Method
Goods
Works
Services
International
Open tender
The maximum level shall

be determined by funds
allocated in the budget for
the particular procurement.
Maximum level shall

be determined by
funds allocated in the
budget for particular
procurement.
There is no minimum
level of expenditure
under this method.
Maximum level shall
be determined by
budget for the
particular
procurement.
Minimum level of
expenditure requiring
advertisement is
KES. 4, 000, 000.

allocated in the budget
for the particular
procurement
There is no minimum
under this method.
Maximum level shall be
determined by funds
for the particular
procurement.
National Open
tender
There is no minimum level

of expenditure under this
method
Maximum level shall be
determined by funds
Minimum level of
expenditure that requires
advertisement is KES.
4,000,000.
Minimum level of
expenditure that requires
advertisement is KES
4,000,000.
Person
responsible
initiation
H.O.D/C.O.D
Person signing
the contract
H.O.D/C.O.D
ViceChancellor
H.O.D/C.O.D
ViceChancellor
H.O.D/C.O.D
ViceChancellor
Inspection and
acceptance
committee
Person
responsible for
initiation
H.O.D/C.O.D
Person
Signing the
contract
ViceChancellor
Verification of
goods, services
or works
Inspection and
acceptance
committee
ViceChancellor
Verification of
goods, services
or works
Inspection and
acceptance
committee
Inspection and
acceptance
committee
Inspection and
acceptance
committee
b) Restricted Tendering
(i)
Procurement
Method
Goods
Works
Services
Restricted
tender under
section 73 (2)
(a) of the Act

Maximum level shall

be determined by
budget for the
particular
procurement.
The minimum level
of expenditure is
KES. 5,000,000.below this threshold,
use open tender.
The maximum level
of expenditure shall
be KES. 4,000,000.
Above this threshold,
use open tender.
The minimum level
of expenditure is
KES. 2,000,000.
Below this threshold,
use request for
quotations.

for the particular
procurement.
The minimum level of
expenditure is KES.
5,000,000.-below this
threshold, use open
tender.
The maximum level of
expenditure shall be KES.
4,000,000.
Above this threshold, use
open tender.
expenditure is KES.
1,000,000. Below this
threshold, use request for
quotations.
H.O.D/C.O.D
ViceChancellor
Inspection and
acceptance
committee
H.O.D/C.O.D
ViceChancellor
Inspection and
acceptance
committee
H.O.D/C.O.D
ViceChancellor
Inspection and
acceptance
committee
The maximum level

of expenditure is
KES. 4,000,000.
Above this threshold,
use open tender.
Minimum level of
expenditure is KES
2,000,000. Below
this threshold request
for quotations.

expenditure is KES.
4,000,000.
open tender.
expenditure is KES
1,000,000.
Below this threshold, use
request for quotations.
H.O.D/C.O.D
ViceChancellor
Inspection and
acceptance
committee

expenditure is KES.
5,000,000. -above this
threshold, use open tender.
(ii)
(iii)
Restricted
tender under
section 73 (2)
(b) of the Act
Restricted
tender under
section 73 (2)
(c) of the Act

4,000,000.
open tender.
expenditure is KES.
1,000,000.
expenditure is KES.
4,000,000.
open tender.
1,000,000.
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c)
(i)
Request for Proposal
Procurement
Method
Goods
Works
Services
Request for
proposal s
(section
76(1)of the
Act)
This method is not

applicable for goods.
This method is not

applicable for works.
Maximum level of
expenditure shall be
determined by the funds
for the particular
procurement.
There is no minimum
under this method.
Person
responsible for
initiation
H.O.D/C.O.D
Person
Signing the
contract
ViceChancellor
Verification of
goods, services
or works
Inspection and
acceptance
committee
H.O.D/C.O.D
ViceChancellor
Inspection and
acceptance
committee
Person
responsible for
initiation
H.O.D/C.O.D
Person
Signing the
contract
ViceChancellor
Verification of
goods, services
or works
Inspection and
acceptance
committee
Person
responsible for
initiation
H.O.D/C.O.D
Person
Signing the
contract
ViceChancellor
Verification of
goods, services
or works
Inspection and
acceptance
committee
Person
responsible for
initiation
H.O.D/C.O.D
Person
Signing the
contract
ViceChancellor
Verification of
goods, services
or works
Inspection and
acceptance
committee
H.O.D/C.O.D
ViceChancellor
Inspection and
acceptance
committee
d) Request for Quotation
(i)
Procurement
Method
Goods
Works
Services
Request for
Quotation
(section 88 of
the Act)

expenditure under this
method shall be KES.
1,000,000
The maximum level

of expenditure under
this method shall be
KES. 2,000,000

expenditure shall under
this method shall be KES.
1,000,000
e)
(i)
Goods
Works
Services
Direct
Procurement
(section 74
(2)of the Act)
No minimum or maximum
method provided the
conditions under this
section are met.
No minimum or
maximum expenditure
under this method
provided the
conditions under this
section are met.
No minimum or
maximum expenditure
under this method
provided the conditions
under this section are
met.
f)
(i)
Direct Procurement
Procurement
Method
Low Value Procurement
Procurement
Method
Goods
Works
Services
low value
procurement
( Section 90 of
the Act)

method is KES. 10,000
per procurement per item.
There is no minimum for
the use of this method
Maximum level of
method is KES. 10,000
per procurement item.
There is no minimum
level of expenditure for
the use of this method

method is KES. 10,000.
There is no minimum
level of expenditure for
use of this method
Page 15 of 22
Document Ref.:
Issue Date:
CU/SOP/PROD/25
Issue No.:
02
25th March, 2013

Revision No.:
00
Document Title:
APPENDIX II: PROCESS MAPS

i. Process Flow Procurement of Goods through Quotation
RESPONSIBILITY
ACTION
USER
start
Request for goods/Services
PROCUREMENT OFFICER
Forwarded for approval
Approved?
USER
Procurement Officer Sources quotations
Quotations are forwarded to user department to raise
requisition
PROCUREMENT OFFICER
Funds Committed
LPO is raised
VICECHANCELLOR/DVC(AF&P)
Approved DVC or ViceChancellor

LPO is audited
Dispatched to the supplier
INTERNAL AUDITOR
Delivery of goods
SUPPLIER
Inspection of goods
NO
INSPECTION COMMITTEE
Goods Accepted
YE
S
END
Page 16 of 22
Document Ref.:
Issue Date:
CU/SOP/PROD/25
Issue No.:
02
25th March, 2013

Revision No.:
00
Document Title:
ii. Process Flow Procurement of Goods through Open Tender
RESPONSIBILITY
ACTION
Starts
Request for goods/Services
USER
Forwarded for approval
Approved
VICE-CHANCELLOR
/DVC(AF& P)
Procurement Officer Advertises tender
Tender submitted, closed and opened

Tenders Evaluated
PROCUREMENT OFFICER
Tender Awarded
Contract is signed
EVALUATION COMMITTEE
Delivery of goods or Execution of services
Inspection of goods or services
TENDER COMMITTEE
VICECHANCELLOR/SUPPLIER
SUPPLIER
No
Accepted
Yes
END
INSPECTION COMMITTEE
Page 17 of 22
Document Ref.:
Issue Date:
CU/SOP/PROD/25
Issue No.:
02
25th March, 2013

Revision No.:
00
Document Title:
iii. Process Flow Disposal of Stores/Equipment
RESPONSIBILITY
ACTION
USER
Starts
Identification of sores and equipment

for disposal
CENTRAL STORES/ DISPOSAL

COMMITTEE
VICE-CHANCELLOR
User Dept. Informs Central

Stores and Disposal Committee
Disposal Committee makes

recommendation for disposal
No
Approved
Yes
PROCUREMENT
DEPARTMENT/DISPOSAL
COMMITTEE
Stores/Equipment disposed
End
Page 18 of 22
Document Ref.:
Issue Date:
CU/SOP/PROD/25
Issue No.:
02
25th March, 2013

Revision No.:
00
Document Title:
iv. Process Flow for Preparation of Procurement Plan

ACTION
RESPONSIBILITY
Starts
USER
User department prepares a list of items
required within a financial year
Forwarded to Procurement
Department
PROCUREMENT OFFICER
List of items/equipment or services from all

departments are reconciled.
Procurement Officer forwards to
Tender Committee for approval
No
Approved
TENDER COMMITTEE
Yes
Goods Purchased
PROCUREMENT OFFICER
End
Page 19 of 22
Document Ref.:
Issue Date:
CU/SOP/PROD/25
Issue No.:
02
25th March, 2013

Revision No.:
00
Document Title:
APPENDIX III:
CRITERIA FOR PRE-QUALIFICATION & RE-EVALUATION OF SUPPLIERS
Criteria for Pre-Qualification
The intent of prequalification evaluation is to determine the bidders that were substantially qualified
to the tender qualification requirements as per the tender notice.
Qualification for tendering is set in the Invitation to Tender notice and the bidders are expected to
meet the following mandatory bidding requirements.
(i)
Must submit a copy of PIN Certificate
(ii)
Must have a Certificate of Incorporation
(iii) Must submit a copy of VAT Certificate
(iv)
Must submit a copy of a valid Tax Compliance Certificate
The following Table shows the criteria for the tender prequalification including the number of points
(variable for tender to tender as need arises) under each of the criteria:
CRITERIA
A. Supplier
availability
(20)
B. Supplier
relevance &
Experience
(16)
DESCRIPTION
Name
Physical address
Town/City
Street
Floor
Door No.
Other landmarks
Drawing/map etc
Telephone address
Fax No.
Email address
Website address
Postal address
Nature of business
(Manufacturer/Processor/Maker) = 3
(Registration as dealer/agent/core business) = 2
Usual business transacted for the last 5 years/Any worth KSh.
500,000 or more at least 5 assignments
Relevant Government/State Corporation tenders awarded
Authentic recommendation by any two clients served in the
last one year rating:
Good = 3
Fair = 2
Poor = 1
POINTS
2
2
2
2
2
1
1
1
1
2
2
1
1
3
5
5
3
Page 20 of 22
Document Ref.:
Issue Date:
CU/SOP/PROD/25
Issue No.:
02
25th March, 2013

Revision No.:
00
Document Title:
C. Supplier
capability
(13)
Financial capability
Audited reports for the last 1 year = 3
Audited reports for the last 2 years = 5
Terms of payment
Cash = 0
30 days = 3
60 days = 4
90 days = 5
D. Legality of
Renewed Certificates, Registration and licenses
supplier
Letters of introduction
business (25) Copy of PIN Card
VAT Registration/Exemption
Certificate of Tax Compliance
TOTAL
5
5
5
5
5
74
Criteria for Re-Evaluation

(i)
Past performance of the supplier
(ii)
Price consistency
(iii) Quality of product/services
(iv)
Communication/feedback provided
Business Name
Physical address
Tender Name Category
SN
PARAMETERS
VERY GOOD GOOD
1
Delivery time
Quality
of
products
supplied
Delivery of complete
orders
Price stability
Communication
After sales services
Credit facility
Delivery
to
the
University
Rejection of goods
KEY
Very good = 10
Good = 6
Fair = 2
Poor = 2
FAIR
POOR
Page 21 of 22
Document Ref.:
Issue Date:
CU/SOP/PROD/25
Issue No.:
02
25th March, 2013

Revision No.:
00
Document Title:
(i)
(ii)
(iii)
Name
1
2
3
4
Suppliers who score 60 and above satisfy the expectations of the University.
Suppliers who score below 60 do not satisfy the expectations of the University and
therefore need to be informed on areas of improvement.
Name and signature of evaluators
Signature
Date
Page 22 of 22

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25th March, 2013

Standard Operating Procedure

Document Review Sheet

Senior Procurement Assistant

Deputy Vice-Chancellor (AA)/MR

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

1.0 AMENDMENT RECORD SHEET

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

25th March, 2013

A candidate who submits a tender to a procuring entity.

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

Chief Procurement and

Senior Procurement Assistants

Procurement Clerks/Store Clerks

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

Activities for Open Tendering

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

(c) Activities for request for proposal

Activities for direct procurement

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

Activities for low-value procurement

4.3. Processes for Receiving of Goods, Services and Works

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

(d) Activities for raising GRNs

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

4.6. Process for Preparation of Supplementary Annual Procurement Plan

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

Number of Projects awarded per year.

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

APPENDIX I: THRESHOLD MATRICES

The maximum level shall

Maximum level shall

The maximum level shall

There is no minimum level

The maximum level shall

Maximum level shall

The maximum level shall

The maximum level

The maximum level of

The minimum level of

The maximum level of

Controlled Copy: Circulation Authorized by Management Representative

25th March, 2013

Request for Proposal

This method is not

This method is not

d) Request for Quotation

The maximum level of