FRESH Global (FG) created and designed a local procurement system (LPS) to make procurements simpler, to ensure vendors are paid timely, to highlight the good and poor performers, to increase procurement participation, and, more importantly, to give NGOs more time to do what they do best – implement programs.

To increase private sector local procurement participation, we developed the following objectives: 

• Understand why local procurements participation is limited
• Increase procurement awareness
• Provide practical training on USAID procurements
• Develop a transparent and efficient system for implementation partners – both local and international
• Develop a framework and structure for sustainability  
• Outline clear and lucid benefits for local partners

Understand why local procurements participation is limited

• Increase procurement awareness
• Provide practical training on USAID procurements
• Develop a transparent and efficient system for local implementing partners – both local and international
• Develop a framework and structure for sustainability
• Outline clear and lucid benefits for local partners

Why is local procurements participation limited?
It is widely believed that procurement advertisement in the newspapers is a formality because the selected vendor has already been chosen. We conducted a survey in the Kampala area, and we found out that the majority of people believed many procurements are rigged. With such a perception, many local vendors do not respond to advertisements asking for proposals or quotations. One vendor stated, “I replied several times and never won a USAID funded award. In fact, I never received a response to my proposal. Now, I don’t waste my time or money responding to ads.” Another vendor asserted, “If you are unwilling to give a kickback, you don’t stand a chance to win.”

Another perception is USAID procurement regulations are too complex for many local vendors, so they bid on less arduous procurements. While this point may be true, we discovered local vendors would still like to do more business with USAID funded projects.

How can the LPS increase procurement awareness?
During our survey, many vendors suggested more awareness and transparency would reverse the above perception of USAID funded procurements. For instance, we found vendors willing to attend bidder’s conferences and to receive bid solicitation and procurement information via email. Additionally, they felt that knowing more about the USAID and its Implementing Partners objectives would be helpful. FG agrees with the findings that increased procurement awareness will increase local vendor participation.

How can the LPS provide practical training on USAID procurements?
Our survey discovered that local vendors and NGOs need substantial training on USAID procurement procedures, from writing proposals to completing certification letters. Our training should be forward-looking and not conducted days before a bid submission. Moreover, training should be practical and detail-oriented, but it should not be information crammed into one day session.

How can the LPS develop a framework and structure for sustainability?
New technologies offer opportunities for information sharing, public participation, and collaboration. FG intends to harness these technologies to make more information public in ways that enable people to both understand what their governments do and to influence decisions. We commit to developing accessible and secure online spaces as platforms for delivering services, engaging the public, and sharing information and ideas. We recognize that equitable and affordable access to technology is a challenge, and we commit to seeking increased online and mobile connectivity while also identifying and promoting the use of alternative mechanisms for civic engagement.

We are committed to engaging civil society and the business community in order to identify effective practices and innovative approaches for leveraging new technologies to empower people and promote transparency in government. We also recognize that increasing access to technology entails supporting the ability of governments and citizens to use it. We commit to supporting and developing the use of technological innovations by government employees and citizens alike. We also understand that technology is a complement – not a substitute – for clear, useable, and useful information.

How can the LPS develop a transparent and efficient system for local procurements?
During our survey, many vendors complained about different procurement procedures for different USAID funded partners. From our research, USAID funded projects should follow the USAID ADS 311 and 22 CFR 228.40 guidelines; however, from our experience working with USAID implementing partners, these complaints could be true. We have read several OIG audit reports citing procurement weaknesses with USAID Implementing Partners systems, e.g. the Academy of Education Development suspension.

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

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

Video Presentation of eProcurement System

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