Ask The Expert - Risk Management Process - Assets

This session focuses on procurement risk management with an emphasis on the importance of procurement to an organisations strategic agenda, and the value the procurement profession can deliver to strategic commercial decisions. This session will provide you with best practice advice, theory.

Ask the Expert - Risk Management Process Q&A

Q 1- Best practices in Bid evaluation in public procurement process would bring Panellists together in a secured hotel location or similar to complete the evaluation process, in order to maintain confidentiality and security to bid information. However, in the wake of covid-19 restrictions on gathering together, procurement committees are adapting to individually working remotely online when handling sensitive bids information, which can be tempting and risky.

What measures can be deployed during bids evaluation process to ensure Bidder’s information is secured, apart from only relying on the integrity of the individual panel members, if any?

A – This is a good question. First, we must appreciate that we have all been entangled in an unprecedented global situation that has disrupted our “Business As Usual” approach to procurement processes. There are no set rules on how to proceed with procurements in the current climate but sensible adjustments can be made to the processes to accommodate new ways of working and rules on social distancing. For the evaluation teams meetings can still be conducted via video or teleconference facilities. It is important that the parties involved follow the same procedures that they would have previously and robust audit trails are maintained of decisions made. In platforms like Zoom and MS Teams, documents are easily shared and the evaluators can still share what they are doing for close monitoring, with their videos turned on.

Second, there has been a silver lining on the pandemic cloud.Tech companies are burning mid-night oil to deploy new technologies in the market to cash in on the prevailing situation. It should be noted that even before the pandemic there have been bid evaluation softwares that are:

• Easy to deploy and use;
• Able to control the evaluation process;
• Able to visualise the results of the evaluation;
• Capable of speeding up the award of contract process;
• Able to deliver improved value for money;
• Able to defend decisions reached by automatically building up an audit trail throughout the evaluation process and provide hard evidence to justify the choice-including “Smart Links” to tender documents and other evidence

Lastly, procurement professionals are expected to uphold high standards of ethics and integrity that would not require this kind of monitoring and investment where avoidable. The tender evaluation committees which may comprise non-procurement professionals must adhere to the laid down evaluation rules and regulations and sign commitment documents to them. These could include NDAs.

Q2 – How can procurement's strategic agenda be brought into boardrooms, while there is still the perception that procurement has not delivered even at the tactical level in African systems. How can the case be made for procurement's strategic role?

A – First, not all organizations would be at the level where procurement plays a strategic role but it is important that procurement still plays a vital role in ensuring proper spend and budget implementation. For example, sole proprietors may see procurement as just a transactional process, a means to the end. It is up to the organization to carry out a spend analysis of how much of their budget goes to procurement. Second, the perception that procurement is not a strategic function is in the minds of those in the organization who out of ignorance or failure by the CPOs are not able to see the value of procurement. Most CPOs or Procurement Officers have failed to demonstrate the value of procurement in their organizations. This is not just in Africa but it is a global problem. They wait to be invited to the boardrooms instead of working their ways there.CPOs are supposed to sell procurement value proposition to the C-Suite. They must talk the language of the C-Suite, think like CFOs and deliver as CPOs.They must understand the strategic direction and priorities of the organization. For example, if the C-Suite talks about achieving Return on their investment (ROI) the CPO must be ready to demonstrate their contribution to this end. They must invite themselves to the boardrooms as “diners” rather than “waiters” to make their case.

Q3 - How do you manage the process where the government exerts a lot of influence on the agency handling the procurement?

A – This is an issue to do with governance. The influence can be positive in terms of ensuring that policies and appropriate laws are in place. However, if the government officials flout their own rules, regulations, policies and laws it becomes negative. In this case, it may not be easy to manage other than ensuring that as a procurement professional you “die” for your integrity. It is expected that every government will have checks and balances created by different layers of governance. In Kenya, for instance, the Constitution has specific chapters on ethics and integrity, national values and financial management. While government employees still flout them the justice system tries it best to use the existing laws to address the malpractices.

Q4 - At what stage would be a good time to initiate a risk assessment for a Procurement project?

A – Risk assessment for a procurement project must start at the project initiation. Risks in procurement exist at all the stages of the procurement. It is the appraisal of the probability and significance of identified potential risk events. In other words, asking “how likely is it and how bad could it be?” (CIPS).

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