eProcurement Benefits

FRESH Global (FG) has developed a web based local procurement system (LPS) that manages the entire procurement cycle to the final payment, and will assist Missions to achieve their USAID Procurement Reform policy objectives. Our LPS offers a triangular benefit to Implementing Partner (local NGOs), local vendors, and USAID.

Benefits to USAID

  • Statistics on local procurement activities, by implementing partners, by categories, by locations, etc.
  • LPS will help USAID to meet objective two under the USAID Forward strategy of the procurement reform: strengthen local civil society and private sector capacity to improve aid effectiveness and sustainability.
  • The LPS can be one stem to improve aid effectiveness and USAID procurement reforms. We are confident that with the implementation of the LPS in the marketplace, USAID will reduce administrative corruption as outlined in the USAID ANTICORRUPTION STRATEGY, ADS 200. Additionally, the LPS will help USAID missions achieve USAID Forward objectives.  The LPS will be a sustainable two or three years of USAID support.
  • LPS will help USAID to meet objective three under the USAID Forward strategy of the procurement reform: increase competition and broaden USAID's partner face Part of the mission's procurement reform strategy.                                                                                

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LPS offers reliable procurement system that will withstand an audit. Here are some other benefits to USAID procurement reform:

  • Reduce the burden that procurement process place on USAID and USAID partners
  • Increase the number of partners and percentage of total dollars through direct grants with local nonprofit organizations; and
  • Increase the number of partners and percentage of total dollars through direct contracts with local private businesses.
  • Increase competition and broaden USAID’S partner base.

Benefits to local implementing partners

LPS offers a transparent and efficient procurement process to all implementing partners (IPs) requesting local procurements. Since the LPS system is a web based program, it presents the following benefits to the IPs:

  • A seasoned professional team
  • Pre-qualified list of local vendors
  • Reviews and indexes on vendors performance  
  • Elimination of paperwork and reduced requisition approval time
  • Electronic storage of procurement records
  • Improve quality of services and commodities
  • Lower prices
  • Reduce mismanagement of funds

Benefits to local vendors (private sector)

LPS offers a hassle-free and efficient procurement process without kick-backs.  Here are some of the benefits to the local vendors:

  • Procurement training for local vendors
  • Timely payments (if payments are late, then FRESH will apply the prompt pay act on all overdue payments)
  • Feedback to losing bidders and addition training or coaching
  • Increase exposure to USAID procurements
  • Increase sales and profits

For more information on the benefits of the eProcurment system, please contact us.