government code of good practice procurement - unpcdc

GOVERNMENT OF LESOTHOGOVERNMENT CODEOF GOOD PRACTICEPROCUREMENT

November 2006Introduction to the CodeWhat is the Code?The Government Code of Good Practice Procurement sets out the core values andbehaviour for all members of the government’s supply chain: both governmentorganisations and their suppliers.¹ It is a code of conduct for all members of the supplychain which encourages all participants to work together openly and co-operatively.It also represents a commitment that government is serious about wanting to be bettercustomers and that the business sector is serious about wanting to be bettersuppliers. The Code has been developed jointly by the Ministry of Finance andDevelopment Planning and the Chambers of Commerce in Lesotho.The Code is not intended to have legal effect although it is consistent with the PublicProcurement Regulations 2006 and procurement policy guidelines as set out in theLesotho Procurement Manual.Why have a Code?Suppliers play an important role in delivering government’s core business throughoutthe Kingdom. They contribute to the government’s aim of providing high quality,efficient, responsive and services for the public. Therefore, the way in whichgovernment and suppliers throughout the chain work together and the relationshipswhich are developed are critical. By establishing a Code of Good Practice for thewhole supply chain, it is hoped that members of the chain can jointly achieve:the creation of true and effective partnering relationshipsmore successful deliveryreduced procurement timescalesa reduction in the costs of competing for government businessbetter value for money.

¹ Throughout the document, the term ‘Supplier’ is taken to mean both the immediate supplier to thecustomer and any sub-contracts or contracted third partiesIt is a code of conduct for all members of the supplychain which encourages all participants to worktogether openly and co-operativelyWho does the Code apply to?The Code is intended for all those in government supply chains, including governmentprocurement staff, contract and project managers whether in central Ministries, theDistricts or state-owned enterprises, and to supplier and sub-contractor managers andstaff. As a statement of good practice it should be shared openly between the existingand potential members of the supply chain. The Procurement Policy and AdviceDivision (PPAD) of the Ministry of Finance and Development Planning andrepresentative bodies such as the Chambers of Commerce will promote the adoptionof the Code as widely as possible.What if one party does not follow the Code?It is hoped that all members of the supply chain will see the mutual benefits offollowing the practices set out in this Code, and will attempt to resolve any complianceissues locally. Where this is not possible, and where one party in a relationshipbelieves the other to be in breach of the Code, they are advised to bring this to theattention of PPAD or the relevant representative body as appropriate.Who can you contact about the Code?If you have an enquiry about the Code or its implementation on specificcontracts/projects, you should contact the Head of Procurement in the governmentorganisation you are dealing with, the relevant representative body or PPAD.

When working within government, all customers, suppliers and their suppliersthroughout the supply chain shall commit themselves to these core values:fairnesshonesty and opennessefficiency and effectivenessprofessionalism1. FairnessThe members of the supply chain will act fairly during thecompetitive process and throughout the business relationship. Theywill do this by:Jointly1.1 Managing and participating incompetitions in a fair manner.1.2 Providing accurate and timelyinformation, in appropriatedetail.1.3 Respecting the confidentiality ofthird parties and members ofthe supply chain, particularlywhere some information maybe covered by intellectualproperty rights or represent asupplier’s specific commercialadvantage.1.4 Understanding the need forgovernment organisations tocomply with the regulations andpolicy guidelines, and theirobjective of developing Basothobusiness so that they areencouraged to tender forappropriate work either directlyor in conjunction with others.Customers1.5 Being objective, even-handedand transparent when makingdecisions and making sure thateach competition is run withoutfavouring any one supplier.1.6 Applying Lesotho domesticpolicy and meeting internationalobligations.1.7 Ensuring genuine competitionby selecting the appropriatenumber of tenders, taking into

account the legal requirement,Suppliersand seeking to reduce1.8 Striving to ensure thatunnecessary costs (to thecustomers continue to obtaincustomer and potentialbusiness benefit in allsuppliers) by restrictingrelationships with suppliers.competitions to a reasonablesize.2. Honesty and opennessThe members of the supply chain will be honest and open whenconducting business with each other. They will do this by:the appropriate allocation andJointlymanagement of risk.2.1 Working together to manage2.5 Raising any issues of concernexpectations.at an early stage so as to2.2 Advising each other of anysignificant reservations aboutenableresolution.constructive jointrequirements and assumptions2.6 Being open about any interestin a constructive fashion at anythey may have which may havetime during the contract/project,a bearing on the relationship.and being genuinely receptiveof that advice.2.3 Working together to ensure thatpricing structures are aimed atrealising and demonstratingvalue for money for thecustomer and a reasonablereturn for the supplier.2.4 Sharing views of risk andcontingency plans forprocurement and contractperformance, and working toachieve a realistic position on2.7 Dealing with each other in goodfaith about their capabilities,skills, products and resources,and their respective strengthsand limitations throughout therelationship.Customers2.8 Sharing plans with potentialsuppliers at as early a stage aspossible, consulting with andlistening to the observations of

those suppliers. Reflectingthose observations in theplanned approach whereappropriate and explainingwhere this is not possible.2.9 Indicating clearly when invitingsuppliers to tender how theiroffers will be evaluated andstating the relative priorities ofthe selection and award criteria.2.10 Making sure that formalcompetitions are launched onlywhen there is a clear intent toaward a contract. Doing sowithin published timescales,where appropriate advisingpotential suppliers of thedegree to which this may besubject to subsequent politicaldecisions or changinginvestment priorities.Suppliers2.13 Being open about their aims,objectives, strategies andbusiness alliances as theyrelate to government business.2.14 Making clear any assumptions,dependencies and/or risks onthe customer which underpinthe supplier’s ability to deliverthe required goods, works orservices.2.15 Fully respecting the need forpublic sector procurementactivity to be conducted, and tobe seen to be conducted, withintegrity, probity and fairness.2.11 Providing successful andunsuccessful candidates andtenderers with feedback whichis as helpful as possible anddesigned to promote futureimprovement.2.12 Making clear at the outset howthe successful supplier’sperformance will be judged andproviding regular feedbackthroughout the life of thecontract/project.

3. Efficiency and effectivenessThe members of the supply chain will contribute to improving theefficiency and effectiveness of government procurement. They willdo this by:3.3 Taking into account, as far as isJointlyreasonable, the wider business3.1 Striving for the highestgoals of the other party.standards of performance and3.4 If the need to consider orbest practice, within the contextpropose changes to theof best value for money.contract arises, doing so3.2 Seeking to mitigate disruption,constructively and indelays and additional costs,consultation with the otherhowever they may be caused.party, seeking to maintain valueIn particular, keepingfor money and to minimise theprocedures as simple asadverse impact onpossible and taking otherperformance, cost andactions as appropriate totimescale.eliminate all unnecessary costs3.5 Working to secure appropriateto both parties.business relationships

generally, including developinglonger-termcollaborative and strategic partnershipswhere such arrangements are bestsuited to deliver value for money.3.6 Meeting commitments in atimely manner and making sure,wherever possible, that publishedprocurement and implementationtimetables are kept to.3.7 Working together to managecontracts in a way which does notduplicate resources and effort andwhich properly reflects the division ofresponsibilities and risks and ensuresthat all partners share commonobjectives and purpose.Customers3.8 Implementing best practice aspromulgated by government.3.9 Making sure that requirementsand outputs or benefits are specified ina way which enables suppliers topropose the best value for moneysolution, adopting innovativeapproaches where appropriate.3.10 Making sure that proposedtimetables are realistic.3.11 Where appropriate, utilisingelectronic commerce techniques toimprove the efficiency of the interfacewith suppliers and the integration ofrelated processes.3.12 Keeping to the government’starget of 48 hours to notify suppliers ifinvoices are incorrect and 30 days forthe payment of bills.Suppliers3.13 Pursuing continuedimprovement and seeking actively toidentify, and share with the customer,experiences, innovations and marketadvances.3.14 Being proactive in thesuggestion and the use of measures toimprove the efficiency of thecontractual relationship.3.15 From the earliest possiblestages, working with any potential subcontractorsor other business partnersto promote an integrated supply chainapproach and to make most effectiveuse of skills and resources.3.16 Submitting correctly completedinvoices supported by all thecertification and other documentsrequired under the contract.

4. ProfessionalismThe members of the supply chain will work to a high standard ofprofessionalism. They will do this by:Jointly4.1 Acting at all times withcourtesy, consideration and integrity.Encouraging professional and ethicalbehaviour by staff in all their dealingsthroughout the supply chain, and bycomplying with the government’s Codeof Conduct for Procurement Staff and

the codes of practice of relevantprofessional bodies.4.2 Actively respecting people, forexample through health and safety andtraining commitments.4.3 Adequately resourcing theplanning, preparation and deliverystages of projects, fulfillingcommitments on staffing levels, skillsand competencies.4.4 Avoiding unrealistic andunnecessary changes in dates ortimescales, particularly in the eventthat requirements change. Ensuringthat key decisions are communicatedpromptly to all parties in the event thatthe programme is revised.4.5 Making sure that roles andresponsibilities are clear andunderstood.4.6 Making sure that there isadequate continuity of staff throughthewhole lifecycle of projects – before,during and after the procurementphase.4.7 Filling posts on projects withstaff who have the necessaryexperience, knowledge and expertise.4.8 Ensuring that there isappropriate management backing forprojects from the outset and untilcompletion.4.9 Working actively together tosolve problems at the earliest possiblestage and seeking to resolvecontractual disputes using alternativedisputes mechanisms whereverappropriate.4.10 Responding promptly andcourteously to communications andmaking sure that appropriate contactdetails are always given.4.11 Behaving ethically in allbusiness dealings.Customers4.12 Continuing to award work onthe basis of value for money (whole lifecost and quality) criteria and not simplythe lowest purchase price.4.13 Making sure that, whereappropriate, specifications and valuefor money award criteria includerelevant sustainability andenvironmental factors in accordancewith government legislation and/orguidance in force at the time.Suppliers4.14 Fostering high levels ofprofessional competence and beingproactive in training supplier staff toenable them to understand and

effectively deliver against agreedcustomer targets.4.15 Only proposing solutions whichthey know they can deliver, andcontinuing to behave in such a way asto maintain customers’ confidencethroughout the life of the contract.4.16 Working collaboratively with thecustomer and other parties asappropriate to ensure that the focus ismaintained ultimately on the publicinterest at all times.