Office of the Director of Public Procurement

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Office of the Director of Public Procurement

• Procurement Capacity Assessment and Strategy
  Formulation A Case Study of Malawi
• I.Z Chilima, Deputy Director
• Marie Louise Refsgaard, Consultant

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Introduction

• In 2007, the Government of Malawi undertook a
  capacity assessment of the countrys public
  procurement system.
• The main objectives of the assessment were
• To ensure progress since earlier diagnostic
  exercises, in particular the Country Procurement
  Assessment report (CPAR) of 2004.
• To serve as a first step of a process towards
  implementing a procurement development strategy.
• To serve as a baseline against which to measure
  future progress.

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Introduction

• The process was led by the Office of the Director
  of Public Procurement (ODPP) supported by UNDP
  Malawi through a team of Rambøll Management
  consultants and UNDP advisors.
• Following the assessment, a set of capacity
  developing strategies for procurement were
  formulated.
• This case study describes the approach adopted in
  Malawi in order to translate assessment results
  into capacity development strategies.

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What is Unique About Malawis Assessment Process?

• The assessment in Malawi was first and foremost
  carried out with a view to developing a
  comprehensive Capacity Development Strategy to
  guide public procurement reform
• The actual formulation of Capacity Development
  Strategies formed an integrated part of the
  assessment process
• To support the process, two tools were applied in
  conjunction
• The OECD-DAC Methodology for Assessment of
  National Procurement Systems (Version 4)
• The UNDP approach to Procurement Capacity
  Assessment

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The two tools

• The OECD/DAC Tool

• The UNDP Tool

• A detailed methodology for assessment of national
  procurement systems
• Focus is on diagnostics (what)

• Approach to the entire process from capacity
  assessment to capacity development
• Focus not only on what (diagnostics) but also
  on why (explanation)

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Why is the why important an example
Example ODPP does not make procurement
information available to the public to the extent
required by the Public Procurement Act

• Why?

• Intervention

• ODPP is not aware of their responsibility to
  publish procurement information?
• The responsibility has not been allocated to any
  ODPP officer?
• The relevant ODPP officer does not have adequate
  incentives to prioritise the task?
• ODPP lack the technical skills/tools to upload
  procurement information to their website?
• Other explanations?

• Sensitise ODPP staff on the roles and
  responsibilities provided for in the Public
  Procurement Act
• Develop clear job descriptions for all ODPP
  officers
• Establish the responsibility for publishing
  procurement information as a Key Performance
  Indicator in the relevant ODPP officers
  performance appraisal
• Upgrade technical skills/tools to remove
  technical barriers to uploading procurement
  information to the website
• Other interventions?

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Malawis procurement capacity assessment and
strategy formulation process at a glance
Root causes
Actual capacity
Capacity gap
CDstrategy
Desired capacity
Assessment phase
Strategy formulation phase
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Key features of the assessment phase

• The assessment was carried out mainly by means of
  qualitative data collection and analysis, so as
  to allow for proper identification of root causes
• ODPP assigned two of its own staff members to
  participate in all stages of the assessment
• To utilise the invaluable knowledge of Malawis
  procurement system imbedded in ODPP
• To enhance their capacity to conduct similar
  assessments in the future
• A wide range of stakeholders to the procurement
  system was involved at different stages in the
  assessment process through sensitisation
  meetings, interviews and validation workshop.

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Formulation of capacity development strategies

• The strategy formulation phase was composed of
  three main activities
• Identifying capacity development strategies
• Defining progress indicators
• Transforming strategies into a coherent Plan

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Formulation of strategiesStep 1 Identifying
capacity development strategies

• For each capacity gap detected (whether related
  to baseline, compliance and performance), one or
  several capacity development strategies were
  identified
• The root causes identified for each gap served as
  the key building blocks for the selection of
  relevant capacity development strategies
• Both short-term strategies (quick wins) and
  medium-term strategies were considered
• Strategies go beyond the traditional concept of
  capacity development different clusters of
  strategies were considered

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Examples of Capacity Development Strategies in
Malawi

• Institutional Reform and Incentives
• Draft standard bidding documents for routine
  services
• Develop procedures for safe keeping of
  procurement records
• Establish mechanism for integrating procurement
  in the budgeting process

• Education, Training and Learning
• Conduct sensitization activities for procuring
  entities, user departments, private sector
• Develop procurement guidelines to procuring
  entities and private sector
• Establish formalized helpdesk function

• Leadership Capacities
• Sensitize politicians and top officials on
  the importance of sound procurement practices
• Sensitize management level of NGOs
• and media on the importance of procurement
  to public service delivery

• Accountability and Voice Mechanisms
• Conduct information campaign to enhance
  public awareness of procurement
• Accelerate dialogue between procurement
  authorities and private sector
• Initiate systematic procurement monitoring in
  low performance areas

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Formulation of strategiesStep 2 Defining
progress indicators

• To allow for measuring progress, progress
  indicators were established for each capacity
  development strategy
• Each capacity development strategy has attached a
  set of indicators
• Output indicator Measures whether the output of
  the capacity development strategy is achieved
• Outcome indicator Measures whether the
  strategies implemented in fact lead to their
  intended result
• Baseline Provides a snapshot of the capacity
  today
• Target Presents a target for the desired
  capacity
• All strategies including progress indicators were
  reviewed in collaboration with a core group of
  stakeholders and targets jointly established

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Measuring progressan example
Root Cause
CD Strategy
Capacity Gap

• (i) Lack of a career path that can attract
  ambitious civil servants to the profession
• (ii) Existing long-term procurement training
  options do not meet demands
• (iii) The procurement profession suffers from
  inherited low-status reputation

• Most procuring entities are unable to
  attract qualified procurement officers

(i) Jointly with HR authorities, develop plan for
making the profession more attractive (ii)
Strengthen collaboration between ODPP and
long-term training providers (iii) Conduct
public awareness campaign with a view to changing
procurement attitudes
Outcome Indicator
Baseline/Target
Output Indicator (i)
Baseline lt10 of established procurement
positions are filledTarget At least 80 of
established procurement positions are filled by
2010
i) Formalized dialogue between relevant
stakeholders established (ii) Plan for the
development of an attractive procurement
profession (including career ladder)
developed (iii) Strategy implemented
of established procurement positions that are
filled
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Formulation of strategiesStep 3 Transforming
strategies into a coherent Plan

• Some capacity gaps lead to similar capacity
  development strategies
• Capacity development strategies were therefore
  transformed into a consolidated Capacity
  Development Plan providing a coherent overview of
  all strategies - avoiding repetition/overlaps,
  combining activities where possible, etc.
• In total, the Plan outlines 15 short-term
  strategies and 21 medium-term strategies
• Each strategy is described in details and
  assigned priority, timeframe, responsible
  organisation and stakeholders as well as
  progress indicators, baselines and targets

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Implementing capacity development strategies -
Progress so far

• UNDP has committed to support implementation of
  those strategies that have been identified as
  high priority.
• So far, ODPP has implemented the following
  strategies
• Development of Standard bidding documents for
  routine services (non-consultancy services).
• Set up procedures for complete procurement
  information on website
• Initiate activities to enhance ODPP monitoring
  function (on a continuous basis)
• Establish dialogue to enhance procurement
  planning procedures
• Conduct outreach activities targeting procurement
  officers

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Lessons Learned

• Expand the assessment focus from what to why
  to understand capacity issues one must go
  beyond diagnostics
• Ensure active participation by the procurement
  authority it brings vital knowledge and
  ownership to the process
• Involve a broad range of stakeholders throughout
  it facilitates trust, and builds commitment to
  the reform agenda
• Internalise the process in existing broader
  national development fora strategies are only
  likely to succeed if understood and prioritised
  at all levels

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Lessons Learned

• Take a systematic approach to formulating
  capacity development strategies maintaining a
  clear link between capacity gaps, root causes and
  resulting strategies facilitates a common
  understanding of capacity issues
• Coordinate the strategies that go beyond the
  control of the procurement authority joint
  formulation enhances sustainability
• Maintain a strong focus on funding it is a main
  driver in procurement reform processes
• Acknowledge that capacity development is a
  process of change by identifying drivers of
  change, addressing resistance, committing major
  stakeholders, and establishing clear political
  leadership

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Thank you