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INDIVIDUAL ASSIGNMENT ONE.

Question One.

Differentiate between purchasing and procurement.

Question Two.

Explain briefly the activities involves.

-Purchasing

-Procurement

Question Three.

Define what is public procurement and identify the Act governing public procurement in
Tanzania.

Question Four.

With five differences briefly differentiate between public procurement and private procurement.
1. Differentiate between Purchasing and Procurement.

Procurement Is a wider term which involves process of findings, agreeing terms and acquiring
goods, services or works from external sources to ensure the buyer receives goods, services or
works at the best possible price, when aspect such as quality, quantity, time, and location are
compared. Therefore procurement deals with why a good or service is ordered and from where.
WHILE
Purchasing Is refers to the process of ordering and receiving goods and services. Purchasing is a
subset of the wider procurement process. Generally, Purchasing refers to the process involved in
ordering goods such as request, approval, and creation of a purchase order record (purchase
order) and the receipting of goods. Therefore purchasing deals with how a good or service is
ordered.

2. Explain briefly the activities involve in:-


- Purchasing
- Procurement

PROCUREMENT ACTIVITIES

I. Materials Specifications

Its responsibility of procurement officers with cooperation of accounting officer and other important
parties together they prepare annual procurement plan so as to avoid contradictions during procurement
activities implementation and to know exactly how much is needed to funding procurement activities and
this is mostly performed in public procurement although also private procurement may decide to prepare
annual procurement plan.

II. Supplier relationship


Its responsibility of procurement staff to make sure that they maintain supplier relationship by
creating friendly environment with supplier during performance of their activities and after
contract fulfillment this help and build good image of organization but also may improve
profitability of both side buyer and seller.
III. Contract Administration

Contract management is an activity of procurement staff ,contract management is an integral part of


procurement cycle this assists contract managers to properly managing contract by addressing transition
management, performance monitoring and by helping to ensure both parties fulfill their commercial and
contractual commitments.

IV. Physical Verifications/ Stocktaking

This also is an activity performed by procurement staff stocktaking refers to physical verification of
quantities and condition of items held in an inventory or warehouse. This may be done to provide an audit
of existing stock it’s also source of stock discrepancy information.

V. Recognition, Definition, Description, and transmission of the need

It’s an activity of procurement staff to recognize, define, describe and transmit the need the need for a
purchase typically originates in one of the firms operating departments or its inventory section.
Procurement notified of requirement by one of two methods purchase requisition or material requirement
planning (MRP) schedule. The purchase description which is transmitted to the supplier forms the heart of
procurement and is detailed on the requisition form.

PURCHASING ACTIVITIES

I. Receiving purchasing requisition from user department

Receiving purchasing requisition it’s an activity of purchasing staff to make sure that purchasing
requisition is received in a good condition and is processed according to procedures and there should be
good system of receiving those requisition from user department and being processed at a right time so as
to fulfill their need on time.

II. Obtaining quotation from supplier and evaluating them

It’s an activity of purchasing staff to communicate with listed suppliers to to send their quotation and
evaluating them to find the least or reasonable quoted price and select the supplier who meet the required
criteria a qualified supplier.
III. Placing the official Purchase order

After obtaining supplier with reasonable then purchasing staff prepare official purchase order which
contain list of items and their price and other terms and conditions agreed and send it to that supplier and
send the product listed.

IV. Receiving goods ordered

It is responsibility of purchasing staff to receive the product ordered and make sure that are in good
condition and are right in quantity, quality as indicated in purchase order.

V. Making payment to supplier

After receiving goods in a good condition then purchasing staff should start immediately payment process
as agreed in a contract should make sure they pay supplier at a right time to avoid misunderstanding this
help to maintain good relationship with supplier.

3. Define public procurement and identify the Act government public procurement in
Tanzania.

Public Procurement refers to the purchase by governments and state owned enterprises of good,
services and works. As public procurement accounts for a substantial portion of the taxpayer’s
money, governments are expected to carry it out efficiently and with high standards of conduct in
order to ensure high quality of service delivery and safeguard the public interest.

The following are the Act Government Public Procurement in Tanzania.

 THE PUBLIC PROCUREMENT ACT, 2011

An Act to make better provisions for the regulation of Public Procurement, to provide for repeal of the
Public Procurement Act, 2004 and re-enact the Public Procurement Act and consequential matters and to
provide for other related matters.

 THE PUBLIC PROCUREMENT (AMENDMENT) ACT, 2016

An Act to Amend the Public Procurement Act with a view to enabling efficiency in regulating
procurement processes, to ensure value for money in Public Procurement and to provide for other related
matters. Enacted by Parliament of the United Republic of Tanzania.
4. With five differences briefly differentiate between public procurement and private
procurement

Public Procurement refers to the purchase by governments and state owned enterprises of good,
services and works. As public procurement accounts for a substantial portion of the taxpayer’s
money, governments are expected to carry it out efficiently and with high standards of conduct in
order to ensure high quality of service delivery and safeguard the public interest.
WHILE
Private Procurement Is the process of obtaining goods and services to meet an organization’s
internal and external. OR Private procurement is defined as the process of acquiring goods and
services to satisfy the needs of a particular private entity usually a business for profit. Also knows
as Private Sector.

The following are the five differences between public procurement and private procurement.

1. Bureaucratic
In Public Procurement requires a bureaucratic procedure to be followed due to the nature of the
institutions. While In Private Procurement there is no procedure to be followed or there is no
bureaucratic.
2. Flexibility
In Private Procurement process is regarded more flexible and innovations friendly. While In
Public Procurement is very strict in terms of regulations and sometime it appears inflexible in
many ways.
3. Communication
In Private Procurement process is normally user friendly and generally has some features to
communicate between the two ends easily. While In Public Procurement is very rule based
process to communicate each other and often it is very difficult to contact each other.
4. Transparency

In Public Procurement organizations are run by a higher government entity means that everything that
they do must be easily visible to the public eyes. The information such as contract opportunity,
contract awards, pricing. While In Private Procurement transparency is not clear cut because private
entities do have complete visibility requirements placed upon them.
5. Public Procurement use government funds and state owned enterprises to purchase goods,
services and works (Taxpayer). While Private Procurement goods, services and works are
acquired to meet the needs of a particular private entity.
ST. AUGUSTINE UNIVERSITY OF TANZANIA

FACULTY OF BUSINESS ADMINISTRATION

DEPARTMENT OF PROCUREMENT AND LOGISTICS


MANAGEMENT

COURSE NAME : PUBLIC PROCUREMENT

COURSE CODE : SC 311

SUBMITTED BY : MTOBESYA KELVIN

REG. NO : BScP 58974

SUBMITTED TO : MUTTA

TASK : INDIVIDUAL ASSIGNMENT

SUBMISSION DATE : 12th NOVEMBER, 2018


REFFERENCE

Adu, P. (2010) Assessing the Effects of the Public Procurement Act (663) on Financial Management in
Ashanti Region, Ghana. PHD Thesis

Burton, R. (2005). Improving Intergrity in Public Procurement: the role of Transparency and
Accountability. OECD Publishing.

Dobler, D., Burt D. (1996). Purchasing and supply management. New York : McGraw-Hill

Mlinga, R. (2009) Monitoring of public procurement in Tanzania Through Procurement Audit. Tanzania
Procurement Journal Vol. No.12. 12-14