Risk Mapping

Any assessment of the soundness of the procurement system will have to study the policies and processes of risk management adopted by the public entity.

This is the first step in risk assessment.
1. Procurement function
An analysis is done on the legal basis for existence of operations of procurement agency by considering issues such as:

  • Are the operations set forth clearly in a well-organized and documented manner in accordance with the applicable laws?
  • Are the means of financing procurement clearly stated and in accordance with the law and budgetary requirement?
  • Are the internal control system in place to ensure compliance with legal and regulated requirements?
  • Are the procurement activities conducted in a transparent manner and well documented?

2. Preparation of procurement documents
Examine specific procedural steps used to prepare a procurement contract then review specific requirements of a particular purchase both from legal and financial standpoint ensuring transparency, fairness and accountability. Questions to ask are:

  • Are tender documents comprehensive, transparent and free from restrictions that may unduly discriminate suppliers?
  • Has the procurement entity put procedures in place to monitor the input of experts employed to assist the procurement function?

3. Choice of method of procurement
Questions to ask are:

  • Is the chosen procedure correct for the type of goods to be acquired?
  • Were alternative methods given due consideration?
  • Were the methods chosen to ensure fair competition and transparency?

4. Publicising the document
The manner of soliciting of bids, proposals and advertising should take into account the nature of goods/services being procured and the likelihood the advertised content will reach intended audience of potential suppliers. Questions to ask are:

  • Did procurement entity procure in compliance with the law?
  • Was the means of publication adequate for the bulk suppliers to reach it?

5. Stage of award
Considerations here are:

  • Composition of the committee determining the award
  • Ensure stakeholders interest were taken into consideration during awarding
  • If bids were properly evaluated and recorded.

6. Post award events
The procuring entity should follow up on the procurement during and after delivery of goods and services to ensure it meets expected requirements.

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