Public entities continue to use the least competitive methods when procuring goods for government, the Public Procurement Unit observes in its 2020/21 Annual Report tabled in the National Assembly this week.
PPU says that they are using these methods without justification ‘’for deviating from the competitive method of open national bidding.’’
From 263 quarterly implementation reports received from public entities during 2020/21, a total of 16,348 procurements were conducted to the value of N$4,690,187,285. Among these, Small Value Procurement (SVP) method dominated at 36 percent followed by the Request for Sealed Quotation (RFQ) method (at 25 percent) and Direct Procurement method (DP) at 23 percent.
‘’Open advertised method being the default method accounted for only 235 procurements, that is one percent of all procurement conducted.’’
Deviating from the required tender rules, the PPU says has a direct impact to the achievement of outcomes expected of competitive procurement processes of procurement.
Direct Procurement Method accounted for 47 percent of the value of all procurement conducted during 2020/21. This is despite it being the third most utilized method of procurement, Request for Sealed Quotation is the second highest method in terms of value, accounting for 19 percent of the reported procurement value, followed by open advertised method of procurement at 6 percent of the procurement value despite it being the second least utilized method of procurement. Emergency Procurement, Restricted Bidding, Request for Proposal and Small Procurement Value combined, accounted for the remaining 28 percent of the total value at N$473,009,992.