Procurement Regulations and Procedures
Starting a new assignment wherein 1st objective is to review & update: a) Procurement Regulations, b) Procurement Procedures of the organisation (2 separate docs - "Regulation" document is at higher level & "Procedures" go more into details of the Regulations).
Basically aiming to reduce the bureaucracy/frustration by improving the procurement process but also ensure some checks & controls given the org is mostly funded by donors (e.g. governments) with regular audits in place. In addition, how to do we best communicate & “sell” the benefits of proposed changes?
How would you approach this if you were me (given tight deadlines)?
Spend as much time explaining the need for professional procurement as you do in streamlining any processes and procedures. Use the opportunity to elevate the importance of the function as you work to make it seamless to deal with. Whilst removing bureaucracy is important, removing protection and incresing risk in the process is negligent.
I would start by understanding if it was a requirement of the funding from governments to follow any certain procurement rules. For example in Europe you have OJEU, and if an EU grant, the onus is on them as a government department to make sure OJEU regulations are followed (read audited). This will inform the procedure and upper thresholds for your regulations. For lower thresholds you will want to do some spend analysis to make an informed recommendation of where to place them. You can do this using line level data and by supplier to create a frequency distribution table, this will show you the frequency of orders (or values that sit with suppliers aka contract values) within the bandings you set. This will inform an appropriate threshold for lower expenditure thresholds. All this largely rests with what are the aims, the size of the spend and the amount of staffing you have.
My questions to you:
What is the spend size you are responsible for?
How many in the team?
What are the leading objectives for the department, e.g. cost savings only or is it more than that?