Procurement Assessment
Posted by Chau Nguyen in Sep, 2014
What is a Procurement assessment?
Procurement assessment is the act of when assessors review and evaluate the procurement system to recognize the strengths and weaknesses. The assessor will then develop a plan based on the review to improve the procurement procedures.
What is a Procurement assessment like?
Assessment is like a vital process that provides information about what an assessor knows and does, and then makes recommendations for the future decision.
What is the purpose of Procurement assessment?
The purpose of a procurement assessment is to determine both the strong and weak points of a procurement system in order to improve it. Information collected from the assessment is used to produce a tailored training curriculum.
What are the different types of Procurement assessments?
The three major procurement system assessment methodologies are:
1. OECD’s Methodology for Assessment of National Procurement Systems.
2. World Bank’s Assessment of Agency’s Capacity to Procure Health Sector Goods.
3. Global Fund’s Procurement and Supply Management (PSM) Assessment Tool.
What’s involved in conducting a Procurement Assessment?
Identifying the information that will be collected
If the assessment is being conducted by an out-of-country organization, research should be conducted to answer questions ahead of the assessment. This could include a review of the country’s procurement act, national medicine policies, “buy local” policies that may exist, and other regulations and guidelines. A good place to start would be previously conducted procurement assessments.
Identifying the stakeholders to be interviewed
When identifying the stakeholders, it is essential to decide for ones with a high level of knowledge and opinions on the effectiveness of the system. Stakeholders must be identified prior to the interview stage. Stakeholders may include: donors, government representatives of implementing and supporting agencies, and private-sector suppliers that compete for government procurement opportunities.
Identifying the assessment team
When selecting personnel for the assessment, ones that have had procurement experience and knowledge are ideal. If a third party is conducting the assessment, having a government corresponding person would be an advantage for assisting in logistics support and facilitating information. The government is important in supporting the assessment.
Reviewing the Assessment methodology and developing performance indicators
It is important that the methodology of the assessment gets reviewed and discussed amongst the assessors so that a consistent effective approach is achieved for the future.
Where does procurement assessment fit into starting a business?
The points in the process of starting a business where procurement assessment is conducted are:
Legal Framework.
Organization and Functions.
Record keeping.
Staffing.
Previous Assessments and Capacity-Building.
General Risk Assessment.
How does procurement assessment impact on different areas of a business?
Where Procurement assessment impacts on the operations on a business include making changes to the current systems and procedures after an assessment is conducted for the improvement of the business. This would include every sector mentioned above that has been assessed.
What terms are used in Procurement Assessment?
- Performance indicators
- Assessment methodology
- Interview
- Assessor
- Stakeholders
Where can I find more information about a procurement assessment?
http://www.path.org/publications/files/RH_proc_cap_toolkit_v2_assess.pdf
http://www.oecd.org/development/effectiveness/45181522.pdf
Who would benefit most from this knowledge?
The learner level that this article primarily targets is persons with no or little experience and knowledge in procurement assessment. This knowledge would be mainly considered necessary for persons of a senior level management for they are the ones that must maintain the business. Local government law is the jurisdiction that has influence over this area. Procurement assessment has no cultural influence and no climate impact. All organisations from all industries would find the included information from this article relevant. Organisations may include: Startups, Small to Medium Enterprises, Corporations, Non-profit organistations, and Government departments/Government owned entities.
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