Procurement can be defined as the process of research, development and production or purchase of systems or equipment, which leads to an item being accepted into operational use, and the continuance of provision of spares and post design services throughout the life of the equipment.
Procurement in Defence is done in accordance with the Public Procurement Regulations 2001 and as contained in legal notices No 51 and No 161. The Ministry of Defence is a procurement entity as per the Public Procurement Regulations. The Ministry closely adheres to the set tender procedures and has established a Defence Tender Committee (DTC), which adjudicates on all procurement valued at over Kshs 500,000 as per the law.
The Government Procurement Regulations, specify exactly how the government is to acquire particular items or services, how they are to be evaluated in terms of quality and price, and ensures the procurement is economical and efficient. They are also aimed at the promotion of fairness, transparency among the selected tenderers and non-discrimination. They propose that procurement be done in a corporate manner.
Procurement at DHQ aims at ensuring that we:
- Procure the right Equipment and Systems at the right time, in the right quantity, at the right place, and at the right price by advocating competitive bidding.
- Expand domestic industry by giving priority to locally produced goods where possible, thereby creating employment in the country.
- Promote local technological base whenever possible by insisting on Technological transfer.
- Procure equipment that enhances defence capability. This means detailed definition and evaluation of equipment prior to the acquisition and provision of continuous and effective support throughout the life of the equipment
- DHQ seeks to achieve best value for money. This does not mean that we simply acquire the cheapest available item or accepts the lowest bid in a competition. Best value for money denotes the solution that meets the requirement at the lowest whole-life-cost. This is done through a cost-benefit-analysis. ...Read more
Procurement of Major Defence Equipment
The procurement of major military equipment although basically following the set Government procedures and regulations, is a special process for three main reasons. Firstly, majority of these equipment are of security nature and the transactions need to be handled in confidence. Secondly, military equipment are very expensive and hence their evaluation must be done diligently to ensure the country gets value for the money. Thirdly, military equipment are very specialised and generally complex and hence need a systems approach to evaluate their effectiveness.
This complexity has led the DHQ to establish special agencies to vet major equipment procurement. These agencies include; the specialised arms of the user service, the Systems Branch at DHQ and the Equipment and Infrastructure Approval Committee (EIAC). The Systems Branch acts as a bridge for the translation of the operational demands of the Defence Forces into procurement programmes. This is done in a logical sequence to maximise operational effectiveness of the selected systems and minimise the life cycle cost. The EIAC chaired by the CDF and composed of the Principal Secretary, Service Commanders and Senior Defence HQ staff, is the final authority for approval of major defence equipment and infrastructure Development. The committee has also the ultimate responsibility for approving budgets for defence equipment programmes. Read more